Menhaden’s net asset value per share total return for 2016 was +1.8% (2015: -14.1%) and the share price total return was -13.8% (2015: -23.0%). As at 31 December 2016, the discount of the share price to the NAV per share stood at 22.2% (2015: 8.2%).
While they do not have a formal benchmark, during the year the MSCI World Total Return Index (in sterling) increased by 28.2% (2015: +0.8%). By way of additional comparison, the WilderHill New Energy Global Innovation Index (in sterling) rose by 11.5% and the AIC Environmental Sector* rose by 21%.
The Board has not recommended a final dividend for the year. The Board is cognisant of the undertaking in the Company’s prospectus to target a dividend yield of 2% per annum of the average NAV, with a target implementation date of 31 December 2017. Given the performance of the portfolio since the launch of the Company, the attainment of this by the target implementation date now looks uncertain. The Board will continue to keep the dividend target under close review and will advise shareholders accordingly.
The Board has considered the effectiveness of share buybacks but has decided that it is not appropriate to reduce the size of the company at this early stage of its development. Instead, and in addition to monitoring the Menhaden Team’s performance, the Board and the AIFM will focus on the effectiveness of marketing and distribution.
Post year end the Menhaden team has sold half the fund’s interest in Alpina Partners Fund LP (“Alpina”) at a 47% liquidity discount to the net asset value of that fund. This sale again reflects the decision to move away from third party managers.
MHN : Poor performance dogs Menhaden