CCSL.L Share News (CCSL)

LONDON (Alliance News) - Chenavari Capital Solutions Ltd, which does deals with banks looking to cut capital-intensive risky assets to meet tougher regulations since the financial crisis of 2007-09, on Wednesday cut its targeted returns.

"As a result of a widespread reduction in the returns available from the credit asset class since it was launched, the company now expects to target a NAV total net return to investors of 8-10% per annum and to minimise cash drag to less than 10% of net asset value," Chenavari Capital Solutions said in a statement.

Chenavari Capital Solutions had previously targeted a net total return on invested capital of 12% per annum or more over the life of the company, with returns to be shareholders to be made predominantly as dividend income.

The company said it will pay the 1.20 pence dividend it declared in April at some point in May.

"The company has realised a lower than expected dividend yield due to the high levels of cash and its dividend policy considering capital gains and losses. The company has now reached a higher level of invested capital (over 90%), and has reviewed its dividend policy to separate revenue and capital, such that future dividend payments will be based on realised and accrued revenue items only, and so expects to pay quarterly dividends of at least 2 pence per share for the next two quarters," Chenavari Capital Solutions said.

Chenavari said it will provide further information in its interim report, which is set to be published later this week.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright 2015 Alliance News Limited. All Rights Reserved.