Annual Financial Report

RNS Number : 4913L

Fair Oaks Income Limited

19 April 2018

 

Fair Oaks Income Limited

19 April 2018

FAIR OAKS INCOME LIMITED (the "Company")

(Incorporated in Guernsey under The Companies (Guernsey) Law, 2008, as amended, with registered number 58123 and registered as a Registered Closed-ended Collective Investment Scheme with the Guernsey Financial Services Commission)

ANNUAL FINANCIAL REPORT

The Board of Fair Oaks Income Limited is pleased to release the Annual Report for the period ended 31 December 2017.

Financial Highlights

·       Fair Oaks Income Limited's (the "Company") Net Asset Value ("NAV") per 2017 Shares was up 14.4% and the NAV per 2014 Shares was up 15.4% for the year ended 31 December 2017 on a total return basis (with dividends reinvested), outperforming the Credit Suisse US Leveraged Loan Index (+4.3%) and the Credit Suisse US High Yield Index (+7.0%).

·       As at 31 December 2017, the Company's total market capitalisation was US$489 million.

·       The Company's 2014 and 2017 share prices closed at a mid-price of US$1.1100 and US$1.0513 respectively on 29 December 2017 and traded at an average premium to NAV of 9.8% and 5.0% respectively.

·       The Company declared dividends of 13.45 US cents per 2017 share for 2017, equivalent to a 12.8% dividend yield on the closing mid-share price on 29 December 2017. Cumulative dividends per 2017 Share are 41.0 US cents since inception.

Portfolio Highlights

·       The 2017 Shares have exposure to 38 CLOs managed by 21 managers, including CLO equity investments with exposure to over 1,180 corporate issuers and an annualised default rate from purchase of only 0.14%.

·       As a control equity investor, the Master Fund has pro-actively refinanced CLO liabilities and reduced the weighted average cost of financing from Libor + 2.17% to Libor + 1.81% during 2017.

·       The Master Fund benefited in 2017 from the prepayment at par of a number of CLO mezzanine investments opportunistically purchased in 2016. The Master Fund received US$54.6 million prepayments from its mezzanine positions, generating a gross IRR of 30% on these investments.

Click on, or paste the following link into your web browser to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/4913L_-2018-4-19.pdf

LEI: 2138008KETEC1WM5YP90

Enquiries:

Fair Oaks Income Limited

Email: [e-mail]

Web: www.fairoaksincome.com

Fair Oaks Capital Limited

Investor Relations

DDI: [phone]

Email: [e-mail]

Praxis Fund Services Limited

Ben Le Prevost

DDI: [phone]

Email: [e-mail]

Numis Securities Limited

Nathan Brown, Corporate Broking

DDI: [phone]

Email: [e-mail] 

Fair Oaks Income Limited

Fair Oaks Income Limited is a registered closed-ended investment company incorporated in Guernsey. The Company was admitted to trading on the Specialist Fund Market of the London Stock Exchange (now the Specialist Fund Segment of the Main Market of the London Stock Exchange) on 12 June 2014.

The investment policy of the Company is to invest (either directly and/or indirectly through the Master Fund and/or Master Fund II) in US and European CLOs or other vehicles and structures which provide exposure to portfolios consisting primarily of US and European floating-rate senior secured loans and which may include non-recourse financing. The Company will implement its investment policy by remaining invested in the Master Fund and making new investments in Master Fund II.

Notes

1) The General Partner's estimate of the potential total return for this investment in calculated across certain scenarios and subject to certain assumptions. This and any other references herein to potential future returns or distributions are targets and not forecasts and there can be no guarantee or assurance that they will be achieved.

This document is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

 

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