LONDON (Alliance News) - SQN Asset Finance Income Fund Ltd on Tuesday reported its net asset value was broadly flat in a "consistent" first half.
At December 31, SQN Asset Finance's net asset value per share stood at 97.31 pence compared to 97.72p at June 30, a slight decrease of 0.4%. Per C shares, SQN Asset Finance's NAV per share saw a 0.5% rise in the same period to 98.14p from 97.62p.
The fund's net assets fell 0.5% in the six months to December 31 to GBP346.7 million from GBP348.5 million. Per C share, net assets increased 0.6% to GBP136.4 million from GBP135.6 million.
During the period, the fund paid an interim dividend of 3.02p. For C shares, SQN paid 2.56p. SQN Asset Finance is targeting an annual dividend of 7.25 pence per share.
"I am once again pleased to report at the half year that the group continues to produce consistent, non-correlated positive performance and regular income on the underlying portfolio of business-essential assets and is positioned well for this to continue," said Chair Peter Niven.
The investment manager, SQN Capital Management, added: "During the six months, the share prices for both the ordinary and 2016 C shares have stabilised as the 2016 C share began paying a fully covered dividend, progress continued on the Suniva recovery and a number of previously identified investments requiring attention came to positive resolutions. The loans and leases in the portfolio continue to perform consistently with the investment strategy."
Looking ahead, SQN believes its portfolio is "solid with an attractive risk profile". The fund's strategy will be to improve its dividend cover and increase its NAV, which SQN said, will be achieved through "greater utilisation of equity capital once a working capital facility which is presently in negotiation is put in place".
Shares in SQN Asset Finance were up 1.0% Tuesday at 92.50 pence each.