Sqn Asset Finance Income Share Discussion Threads

[simon gordon] 24/12/2015 14:31

What Investment - 24/12/15:

Sarasin: Where to Invest in 2016

Asset Leasing

Another area we believe offers the ability to diversify a balanced portfolio is asset leasing funds. These funds invest in assets which are leased to businesses, with the aim of providing non-correlated returns, since they are secured by hard assets with a regular cash flow.

We access this asset class via a fund called SQN Asset Finance Income. The fund focuses solely on business-essential assets leased to creditworthy businesses. In doing so, the managers are able to target a dividend of over 7% – clearly very attractive in the current market. The most appealing dynamic, however, is its near zero correlation with both equities and bonds since launch, providing true diversification for a balanced portfolio.

[wirralowl] 09/11/2015 09:28

cheers, Jaws. My allocation with idealing not showing...

[jaws6] 09/11/2015 09:16

SQNC started today 101 103

[biggcl] 17/10/2015 23:33

They quote a return of 9.5% achieved on their leased assets. Is this after a depreciation charge?

Tia

[wirralowl] 28/9/2015 12:16

I've applied for my full entitlement via idealing, but no spare cash in the account to go for any extra, as also been hit with an open offer for another holding of mine (Assura Group) in the same week.

[dendria] 25/9/2015 16:36

IWeb has the Open Offer up now. I can apply for just my entitlement, or my entitlement plus additional shares (but they warn this may be scaled back).

[wirralowl] 18/9/2015 20:25

biggcl,

The 'C' shares also won't be entitled to the dividend of the ords.

They should though start to receive dividends once the company invest the proceeds and the assets start generating an income, increasing each month up to the target distribution (which I presume is 7.25p pa again?). I was impressed how quickly and efficiently they achieved this the first time round, so am hoping this will just be a rinse and repeat process.

[dendria] 18/9/2015 16:54

Ex-entitlement date for open offer is 8.00 a.m. on 21 September (Monday).

[dendria] 17/9/2015 18:54

I’m sure someone has a thorough explanation but basically C shares (Conversion Shares) are a way to raise new funds without impacting on the existing ordinary shares. The C shares are issued and kept separate from the ordinary shares until most of the C share funding is invested then they convert/merge to ordinary shares. All the costs of the share issue are borne by the C shares not the ordinary shares.

[biggcl] 17/9/2015 13:27

How are c-shares different from the ordinaries?

Tia

[dendria] 17/9/2015 12:34

I'll be applying for my full allocation too. Good to get participation with an open offer. Given the scale of the proposed placing (doubling fund size) I think they had to offer something to existing shareholders.

[wirralowl] 17/9/2015 09:08

Great news, I'll definitely be applying for my full allocation.

Can't help feeling they've timed this well too, just after reaching their stated annualised target dividend of 7.25p pa, think the appetite should be good for this issue.

[dendria] 17/9/2015 07:47

SQN is undertaking a placing including open offer for up to 180 million new C Shares at 100p each.

Open offer is 1 C Share for every 2 Ordinary Shares.

Target date for admission of the C Shares is 9 November 2015.

[wirralowl] 21/8/2015 10:04

Great to see that with today's dividend of 0.6042, SQN have reached their annualised target of 7.25p per share. Very impressed how they've got to this point so quickly.

More importantly perhaps, is the following statement:

The dividend is being paid at the full projected dividend rate which the Company believes will be sustainable. Along with the full dividend, the Company expects incremental NAV growth to continue.



With the yield on portfolio investments now above 9.5% on an average remaining term of 68 months, you would hope it should be achievable.

[wirralowl] 20/7/2015 11:43

Another great month of progress from SQN. Estimated NAV as of 30 June, now 99.93p and monthly dividend increased again to 0.5625p (or 6.75p annualised).

Good to see that the yield from their investments is still up over 9.5% too, with an average term length of 5 and a half years.

[wirralowl] 22/6/2015 09:49

Excellent progress again in May, with NAV and dividend up once again.

This month's dividend is up over 8% @ 0.52p, so we're now at 6.24p pa. pro-rata. Very nice!

[dendria] 05/6/2015 12:13

Now that I'm in I'd rather them go for a C-Share.

[wirralowl] 05/6/2015 09:04

Placing 'significantly over-subscribed' at 103.5. Also, as a result, news of a likely 'C' share issue towards the end of the year - perhaps another chance for us to top up...

[dendria] 04/6/2015 18:08

Thanks Owl. Not bad timing as it's picked up a bit. My buy went through as a sell.

[wirralowl] 04/6/2015 15:04

Welcome aboard, dendria !

[dendria] 04/6/2015 14:08

Took out a small holding today at 105.29

[wirralowl] 04/6/2015 13:53

Buys going through as sells again today with a very tight spread. Managed to get a top up at 105.28 before lunch.

[wirralowl] 22/5/2015 09:28

Hi dendria, Nice to have some company! The premium of SQN concerned me too, and stopped me from going all-in initially, but its a fairly unique company; there aren't any comparables on LSE that I'm aware of, anyway...? A drift back to under 106 while the placing's being worked and I'd probably top-up.

[dendria] 21/5/2015 12:18

Keep it up Owl - I'm listening. Not in yet as premium has been quite high but now might be the chance to get in.

[wirralowl] 21/5/2015 09:35

I know what they say about talking to yourself....lol, but I like to use this thread as a quick ref to dividend progression.

Dividend payment for next month up to 0.48p, pro-rata that's 5.76p, so edging slowly towards their initial target of 7.25p pa.

Also news of a placing to raise up to £30m for more investment opportunities at not less than 103.5p, or a 5% premium to NAV. Shame its not an open offer so retail investors could get involved, but if we get a share price drift down towards the placing price, I will happily take the opportunity to top up.