News
- Home
- Investment Company News
- Manager plans to reinvest 20% of fee in VPC Speciality Lending’s shares
VPC Specialty Lending Investments PLC has announced its unaudited half-yearly financial results for the period ended 30 June 2016. During the period under review, it delivered a total NAV return of 1.51% and paid quarterly dividends amounting to 3.5p per share.
The vast majority of investments have exhibited credit losses in line with expectations. However, returns in the period were negatively affected by isolated spots of credit underperformance in the marketplace loan portfolio and the effect of cash drag related to currency hedges. They have taken steps to mitigate the credit underperformance by exiting and winding down certain positions and redeploying capital to other, better performing opportunities.
During the period, the fund operated with an average cash balance of 18.8% of NAV, which created a slight performance drag. During the period, they made investments in proprietary balance sheet facilities, which offer significant credit enhancements, and featured attractive interest rates ranging from 12% to 16%. These new investments are highlighted below:
The investment manager plans to redeploy the majority of principal amortisation from the whole loan portfolio into balance sheet investments. Over time, they expect our balance sheet loans to make up a significant portion of the portfolio. In order to further demonstrate our commitment to the Company and our confidence in achieving targeted returns, the investment managers have agreed with the Board to modify our management agreement such that we will apply 20% of our monthly management fee to the purchase of shares in the company at the prevailing market price on an ongoing basis, provided the shares are trading at a discount to NAV.
VSL : Manager plans to reinvest 20% of fee in VPC Speciality Lending’s shares
Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.
Due to data protection policies, USA residents can not access our data.
Your content has been curated