(Alliance News) - Chenavari Toro Income Fund Ltd on Wednesday said its net asset value dropped considerably in its recently ended financial year, as the pandemic inflicted a blow the company did not quite recover from.
The company invests and trades in public and private asset backed securities as well as direct origination.
As at September 30, the Guernsey-based investment firm posted a net asset value per share of 69.17 euro cents, down 32% from 100.81 cents the same date the year before.
Chenavari Toro's share price at the end of September was 50.50 cents, reflecting a 27% discount to net asset value.
Shares in Chenavari Toro were untraded on Wednesday, last quoted at EUR0.56 in London.
The net asset value drop was attributed to a poor first quarter due to the pandemic , despite a recovery driven by the monetary and fiscal responses made by various governments.
Chenavari Toro declared an ordinary dividend of 7.33 euro cents per share, and a special distribution of 13.97 cents, bringing to the total payout to 21.30 cents, up 8.2% from 19.70 cents the prior year.
"As the number of new Covid-19 cases had picked up sharply across the continent and the UK, lockdown measures and mobility restrictions had been tightened, preventing further economic normalisation, which was already negatively impacted by Brexit. Indeed, measures required to navigate new waves were expected to weigh on the global rebound, even though supporting fiscal and monetary policies were being extended," said Non-Executive Chair Frederic Hervouet.
"Although we remain positive on the long-term on the European CLO market which offers resilience and attractive yields, we were cautious over the coming months as valuations had improved significantly and financial markets were likely to remain volatile, oscillating between fears over the rates of Covid-19 infection and a brighter outlook heralded by the prospect for effective vaccines," Hervouet added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Chenavari Toro (TORO)