17 Feb 2014 07:00
CHENAVARI CAPITAL SOLUTIONS LIMITED
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM IPO (7 OCTOBER 2013) TO 17 FEBRUARY 2014
Issued pursuant to the requirements of Chapter 4 of the Disclosure and Transparency Rules.
Objective
The investment objective of the Company is to provide Shareholders with an attractive return, while limiting downside risk, through investment in transactions the objective of which is to allow banks to reduce the risk-weighted asset calculations on portfolios of assets, or otherwise optimise the capital required to be held against such exposures, in order to manage its required capital ("Bank Capital Solutions Transactions") primarily with UK and European banks.
Review of Period
The Company was launched on 7 October 2013 with gross proceeds of £130.3 million. During the period from IPO:
· The Net Asset Value of the Company increased by 0.73 pence per share (0.74%) to 98.73 pence per share (as at 31 December 2013).
· The share price of the Company as at 31 December 2013 was 101.25 pence per share, representing a 1.25% increase from the issue price at IPO. The share price was 102.63 pence per share as at close of business on 14 February 2014, representing a 2.63% increase from the issue price at IPO.
Highlights
During the period, the Company made one primary investment (issued by a Portuguese bank) and several secondary transactions. The Investment Advisor continues to work on several primary transactions with varied underlying risk (mid-cap corporate loans, large multinational corporate loans and CVA) with potential investment size for the Company in excess of £150m. The Investment Adviser expects at least one of these transactions to close in Q1/ Q2 2014. The secondary transactions held in the portfolio provide positive profit and loss impact in the form of an attractive short term pull to par and high carry trades.
Financial Position
At 31 December 2013, the Company had net assets of £128.7 million and was approximately 65% invested in Bank Capital Solutions Transactions. There has been no significant change since that date. The Company has no borrowings and no significant creditors, other than amounts payable in the ordinary course of business.
Company Financial Statements
The Company's Unaudited Financial Statements for the period ending 31 March 2014 will be released in May 2014.
Non-mainstream pooled investments
The Board of the Company have noted the rules of the UK Financial Conduct Authority ("FCA") on the promotion of non-mainstream pooled investments, effective from 1 January 2014. The Board confirmed that it conducts the Company's affairs, and intends to continue to conduct its affairs, so that the Company's shares will be "excluded securities" under the FCA's new rules. This is on the basis that the Company, which is resident outside the EEA, would qualify for approval as an investment trust by the Commissioners for HM Revenue and Customs under Sections 1158 and 1159 of the Corporation Tax Act 2010 if resident in the United Kingdom. Therefore, the Company's shares do not amount to non-mainstream pooled investments. Accordingly, the promotion of the Company's shares will not be subject to the FCA's restriction on the promotion of non-mainstream pooled investments.
Details of the Company | ||
Investment Manager | Chenavari Investment Managers (Guernsey) Limited | |
Investment Adviser | Chenavari Credit Partners LLP (authorised and regulated by the Financial Conduct Authority) | |
Enquiries: | Chenavari Credit Partners LLP, Investor Relations +44 (0) 207 7259 3600 | |
Website: | www.chenavaricapitalsolutions.com Copies of major announcements and documentation relating to the Company (including the latest fact sheets) may be found on the website | |
Launch Date: | 7 October 2013 | |
Listed: | London Stock Exchange - Specialist Fund Market and the Channel Islands Securities and Exchange Authority | |
Corporate Broker: | Dexion Capital plc | |
ISIN: | GG00BCHWW517 | |
Ticker: | CCSL | |
As at 14 February 2014 | As at 7 October 2013 | |
Ordinary Shares in issue: | 130,300,000 | 130,300,000 |
Share price, pence per share: | 102.63 | 100.00 (issue price at IPO) |
Net asset value, pence per share: | 98.73 (as at 31 December 2013) | 98.00 |
Share price premium to NAV | +3.95% | +2.0% |
By order of the Board
Morgan Sharpe Administration Limited
Company Secretary
17 February 2014
DISCLAIMER
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.
This document is only directed at persons in the United Kingdom who are investment professionals as defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, high net worth companies, unincorporated associations and other persons as defined in Article 49 of that Order or others to whom this document can lawfully be distributed or given, inside the United Kingdom, without approval of an authorised person. Any other person should not rely on it or act on it and any investment or investment activity to which it relates will not be engaged in with them.
This document is not for release, publication, or distribution, directly or indirectly, in whole or in part, to US Persons (as defined in Regulation S under the Securities Act of 1933, as amended) or into or within the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, Japan, or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.
Past performance is no guide to the future. The value of investments and the income from them may go down as well as up and investors may not get back the full amount they originally invested. The Company's target return and dividend policy should not be taken as an indication of the Company's expected future performance or results. The target return and dividend policy are targets only and there is no guarantee that they can or will be achieved and they should not be seen as an indication of the Company's actual or expected return. Statements contained herein, including statements about market conditions and the economic environment, are based on current expectations, estimates, projections, opinions and/or beliefs of the Company and its investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Such statements are necessarily speculative in nature, as they are based on certain assumptions. It can be expected that some or all of the assumptions underlying such statements will not reflect actual conditions. Accordingly, there can be no assurance that any projections, forecast or estimates will be realised. The information presented has been obtained from sources believed to be reliable but no representation or warranty is given or may be implied that it is accurate or complete.
The information presented in this interim management statement is solely for information purposes and is not intended to be, and should not be construed as, an offer or recommendation to buy and sell investments. If you are in any doubt as to the appropriate course of action, we would recommend that you consult your own independent financial adviser, stockbroker, solicitor, accountant or other professional adviser.