(Alliance News) - Alcentra European Floating Rate Income Fund Ltd on Friday said its net asset value per share declined very slightly in the first half of its financial year.
The investor posted a NAV per share of 103.25p as at September 30, down 0.3% from 103.61p on March 31.
"Against a volatile financial markets backdrop over the past few years, the company's performance has been strong and with lower volatility than High Yield and equity market," said investment manager Alcentra Ltd.
During the period, Alcentra European maintained its dividend policy, paying dividends of 2.25p per share. Post half-year end, the firm declared and paid a 1.17p per share dividend.
Chair Ian Fitzgerald said: "The investment manager believes that the stable performance over the recent months demonstrates that the loan market continues to provide attractive risk adjusted returns. Other asset classes have seen heightened levels of financial market volatility over the past few quarters, whilst European loan returns have been much more consistent, with the default remaining at the historic low of 0.0%. A strong pipeline of [mergers & acquisitions] activity in quarters 2 and 3 of 2019 provided plenty of loan issuance, which alongside robust demand for the asset class resulted in new issue margins slightly increasing.
"Your board continues to be satisfied with the portfolio's performance to date, the diversity of the portfolio and the strategy that is being applied by the investment manager. The investment manager will continue to update you on the company's progress by way of the monthly performance updates."
Shares in Alcentra European closed down 0.5% at 98.51 pence in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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