Carador Income Fund discusses wind-down timeline – Carador Income Fund (CIFU) has reported a 10.52% decline in its NAV total return over the year to December 31, 2018, on the back of the wider sell-off in global markets in Q418.
We note that the decline in the NAV compared with growth of 9.53% in 2017, including dividends paid. The Credit Suisse leveraged loan index and the Credit Suisse high yield Index 2018 returned 1.14% and -2.37% in 2018. Following the Q4 sell-off, the loan market subsequently recovered in early 2019, with the US Dollar share class showing a 8.76% year to date NAV return by 28 February 2019.
Winding down
CIFU is in a managed wind-down state, following on from the EGM held last December. The company’s chairman, Werner Schwanberg, had this to say in the annual report: “As the company is now in managed wind-down, the expectation for realising assets and paying out cash to holders of US dollar shares is materially the same as was the process for the repurchase pool shares. Based on advice received from the Investment manager, the directors currently expect that in normal circumstances it should be possible to realise the assets comprising a repurchase pool within approximately six to twelve months. However, this may take significantly longer in the case of certain assets or in less favourable market conditions.”
About CIFU
Carador Income Fund’s investment objective is to produce attractive and stable returns with low volatility compared to equity markets, by investing in a diversified portfolio of equity and mezzanine tranches of CLOs and senior tranches of cashflow CLO transactions backed by senior secured leveraged loans. Carador, through its investments, has exposure to a diversified portfolio of primarily senior secured loans, financed on a term, non-recourse, non-mark to market basis.
CIFU: Carador Income Fund discusses wind-down timeline