(Alliance News) - CVC Credit Partners European Opportunities Ltd on Wednesday reported a year-on-year drop in annual net asset value for both sterling and euro class of shares.
As at December-end, the investment company's net asset value per sterling share dipped to GBP1.0534 from GBP1.0762 a year ago. Meanwhile, NAV per euro share also dropped to EUR1.0013 from EUR1.0404.
The euro and sterling shares NAV total return for 2019 was 1.56% and 3.07%, respectively. By comparison, the Credit Suisse Western European Leveraged Loan Index, hedged to EUR, was up 5.03% for 2019, and the Credit Suisse Western European High Yield Index, hedged to EUR was up 11.05%
"The major impact on portfolio returns during 2019 has been the increasing focus of portfolio investors on the higher rated tranches of leveraged capital structures, and away from lower rated, particularly in the US market. This overriding influence has existed in response to ongoing concerns in credit markets about the geopolitical and macroeconomic outlook, notwithstanding historically low default rates and supportive monetary policy stances by central banks," said Chair Richard Boleat.
On outlook, the investment trust expects the themes of weaker global growth and political tension to remain. It said it will continue to monitor global macro events throughout 2020 which can impact risk assets coming out of a very positive 2019.
CVC Credit Partners' sterling shares closed 0.4% lower at 96.00 pence, while its euro shares closed up 2.1% at EUR0.96 in London on Wednesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.