Reinvestment of Management Fees

RNS Number : 5441D

Fair Oaks Income Fund Limited

30 January 2015

 

Fair Oaks Income Fund Limited

30 January 2015

FAIR OAKS INCOME FUND LIMITED

(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)

REINVESTMENT OF MANAGEMENT FEES

Fair Oaks Income Fund Limited (the "Company") announces that the General Partner of the Master Fund (the "GP") has applied to reinvest into the Company's ordinary shares (the "Shares") an amount equivalent to 25% of the advisory and management fees paid to Fair Oaks during 2014.

In accordance with the agreement disclosed in the Company's prospectus, the reinvestment will be effected by the issue of new Shares at the prevailing NAV per Share.  169,446 new Shares will be issued on 2 February 2015 at $0.9779, being the NAV per Share as at 31 December 2014 minus the 2014 dividend to which the new Shares will not be entitled.

Fair Oaks also agreed at IPO to reinvest 25% of its future advisory and management fees into Shares.  Such Shares will either be issued at the then prevailing NAV, or instead purchased in the secondary market should the Shares be trading at a discount to NAV of 5% or more.

Application will be made for the new Shares to be admitted to trading on the Specialist Fund Market of the London Stock Exchange.  It is expected that dealings in the new Shares will commence at 8 a.m. on 4 February 2015.

As a result of this issue, the Company's issued share capital will consist of 121,898,362 Shares.

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 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.

In this announcement (1) "Fair Oaks" refers to Fair Oaks Capital Limited (the Company's investment adviser) and Fair Oaks Income Fund (GP) Limited (the General Partner of the Master Fund); and (2) "Master Fund" refers to FOIF LP (the Guernsey limited partnership in which the Company invests).

 

END

 

 

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