Dividend Declaration and Policy Update

RNS Number : 3015C

Fair Oaks Income Fund Limited

16 January 2015

 

Fair Oaks Income Fund Limited

16 January 2015

FAIR OAKS INCOME FUND 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)

DIVIDEND DECLARATION AND POLICY UPDATE

Dividend for Year Ended 31 December 2014

The Directors of Fair Oaks Income Fund Limited have declared that an interim dividend will be payable as follows in respect of the period from IPO on 12 June 2014 to the Company's year ended 31 December 2014:

Ex-Dividend Date:                                                29 January 2015

Record Date:                                                         30 January 2015

Payment Date:                                                      12 February 2015

Dividend per Share:                                            4.25 US cents per share

This dividend represents an annualised yield of 7.7% of the IPO price, ahead of the target published in the Company's prospectus for the ramp-up period of at least 5%.

Dividend Policy Update

The Directors are pleased to announce that the Company will change the frequency of its dividends from quarterly to monthly starting immediately. It is intended that the first monthly interim dividend will be declared in respect of the month ended 31 January 2015 and payable mid to late February 2015.

On the basis of current income projections, the Board plans to declare eleven monthly dividends of a minimum of 0.7 US cents per share* and a larger twelfth interim dividend such that, in the opinion of the Directors, substantially all net income generated by the Company in 2015 is distributed to shareholders.

The Company will continue to target an annual net total return of 12-14%* over the planned life of the Master Fund and it is expected that dividends will constitute the principal element of the return to the Company's shareholders.

Professor Claudio Albanese, Chairman of the Board, commented:

"The Board is very pleased to announce a dividend for 2014 significantly in excess of expectations at the time of the Company's IPO. The Master Fund has been able to ramp up its investments effectively taking advantage of market opportunities and Fair Oaks Capital's strong sourcing abilities. We are also pleased to announce that, based on feedback from current and prospective shareholders, the Company will pay dividends on a monthly basis in 2015."

Miguel Ramos Fuentenebro, co-founder of Fair Oaks Capital, commented:

"We are very pleased with the performance of the Master Fund in 2014. Despite the short period since launch, the quality of the new investments and the management of the original seed portfolio have supported NAV growth and a strong dividend. The importance of aligning the interests of the GP, the Advisor and LPs was exemplified by the attractive terms negotiated with managers in the portfolio and the GP's early liquidation of the investment in T2 Income CLO."

Enquiries:

Fair Oaks Income Fund Limited

Email: [e-mail]

Web: www.fairoaksincomefund.com

Fair Oaks Capital Limited

Miguel Ramos Fuentenebro

DDI: [phone]

Email: [e-mail]

Praxis Fund Services Limited

Ben Le Prevost

DDI: [phone]

Email: [e-mail]

Camarco

Edward Gascoigne-Pees

Hazel Stevenson

DDI: [phone]

Email:  [e-mail] / [e-mail]

Numis Securities Limited

Nathan Brown, Corporate Broking

DDI: [phone]

Email: [e-mail] 

Fair Oaks Income Fund Limited

Fair Oaks Income Fund Limited is an authorised closed-ended investment company incorporated in Guernsey. The Company was admitted to trading on the Specialist Fund Market of the London Stock Exchange on 12 June 2014. The Company's ordinary shares have the TIDM: FAIR and ISIN: GG00BMBN1D14.

The investment policy of the Company is to seek exposure to 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 investing in Fair Oaks Income Fund LP (the "Master Fund").

The investment objective of the Company is to generate attractive, risk-adjusted returns, principally through income distributions. On the basis of market conditions as at the date of its prospectus, and based on the $1 per share issue price, the Company is targeting a net total return of between 12 and 14 per cent. per annum over the planned life of the Master Fund.

Notes

*This is a target only and not a profit forecast. There can be no assurance that this target will be met or that the Company will make any distributions at all. This target return should not be taken as an indication of the Company's expected or actual current or future results. The Company's actual return will depend upon a number of factors. Shareholders and potential investors should decide for themselves whether or not the return is reasonable and achievable.

 

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