Portfolio Update

RNS Number : 7473Q

Fair Oaks Income Fund Limited

22 June 2015

 



 Fair Oaks Income Fund Limited

22 June 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)

Portfolio Update

Fair Oaks Income Fund Limited (the "Company") is pleased to announce that Fair Oaks Income Fund LP (the "Master Fund") has entered into binding contracts to acquire, in the primary market, $26.4 million notional of equity notes, representing 75% of the total equity of Neuberger Berman CLO XIX, a new CLO backed by a portfolio of US broadly syndicated, secured loans.

The manager of this CLO's portfolio is Neuberger Berman Fixed Income LLC, a subsidiary of Neuberger Berman LLC, which is an independent, employee-owned, asset management firm with $250 billion assets under management in equity, fixed income, and alternatives. Neuberger Berman LLC manages $38 billion of non-investment grade assets, including $9 billion of loans.

This CLO's current target portfolio has a principal value of $400 million across an expected 160 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.6%.

The potential total return for this investment as estimated by the general partner of the Master Fund (the "General Partner") is between 14% and 16% per annum (see Note 1).

After this investment, the Company will be 90% invested. In light of the current cash balance and the Shareholder authorities granted at the recent AGM and the continuing deployment into attractive investments, the Company is considering its options to issue Ordinary or C shares. It is expected that any new shares would be issued on terms comparable to recent issues by the Company.

Enquiries:

Fair Oaks Income Fund Limited

Email: [e-mail]

Web: www.fairoaksincomefund.com

Fair Oaks Capital Limited

Miguel Ramos Fuentenebro

Roger Coyle

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 the Master Fund.

The investment objective of the Company is to generate attractive, risk-adjusted returns, principally through income distributions.  The Company announced on 16 January 2015 that (1) on the basis of income projections as at that date, the Board planned to declare eleven monthly dividends of a minimum of 0.7 US cents per share (see Note 1) 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; and (2) the Company will continue to target an annual net total return of 12-14% (see Note 1) 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.

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.

2) 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. 

 

END

 

 

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