(Alliance News) - Chenavari Toro Income Fund Ltd on Friday said its net asset value rose in the first half of its financial year, lead by its "direct origination strategy".
As at March 30, the firm's net asset value per share was 98.95 euro cents, rising from 97.82 cents on October 1.
Chenavari Toro describing its direct origination strategy, saying "it invests primarily, on a buy-to-hold basis, in originators of securitisation vehicles". These investments, which constituted around 59% of its portfolio, made a 2.6% contribution to performance.
In the first half, the firm declared dividends of 4 cents per share, flat year-on-year. It declared a further 2 cents per share dividend, also equalling financial 2018.
Shares in Chenavari Toro were down 1.6% at EUR0.76 per share on Friday afternoon.
Chenavari Toro's mid-market share price on March 31 was 79.25 cents, up from 78.00 cents on September 30, maintaining a 20% discount to NAV. To address this, the company will undertake a "bi-annual liquidity process" over the next 5 years under which it will repurchase 10% of its share capital at a minimum annually.
Non-executive Chair Frederic Hervouet said: "Going forward the portfolio manager believes that the combination of weak economic growth and the continuation of dovish monetary policy should be supportive for a European credit, with benign defaults anticipated. This should be particularly promising for the direct origination strategy."
Chenavari Toro (TORO)