Edison issues update on EJF Investments (EJFI)

London, UK, 8 October 2019

Edison issues update on EJF Investments (EJFI)

EJF Investments (EJFI) delivered a 9.5% total return in H119. Despite the recent US rate cut receiving much attention, conditions remain supportive for US community and regional banks and insurance, whose subordinated securities support the US securitisation risk-retention investments that, along with related securities, account for 72% of EJFI's portfolio. Management remains optimistic on this asset class. In April EJFI redeemed a collateralised debt obligation (CDO) netting £8.9m in total, having earlier purchased one in March (forecast IRR 10-11%) and completed a further $11m investment in September.

EJFI has traded close to NAV and has fluctuated between -3% and +2% since 2017. However, the NAV recently increased and EJFI is now trading at a discount of c 10% to the end-July NAV (adjusting for the 2.675p dividend paid in August) on no particular news.

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