Fair Oaks Income Share Discussion Threads

[grahamg8] 23/2/2023 07:28

Thanks for the research Cerrito. At any one time most of FAIR debt is not being traded, so the NAV is only a little better than an educated guess. Sentiment is very important as the question being asked each month is ‘if we had to sell right now what could we offload at?’ FAIR rarely in practice trade loans, but rather sit on them till maturity when barring defaults they will repay at par. In the meantime the ‘valuationR17; can fluctuate quite bit. When I last did a detailed review many loans were valued around 80% so there is potential for quite a bit of hidden value. DYOR, it’s not at all easy.

[cwa1] 23/2/2023 07:26

DIVIDEND DECLARATION

Dividend for Quarter Ended 31 December 2022

The Directors of Fair Oaks Income Limited have declared that an interim dividend will be payable as follows in respect of the quarter ended 31 December 2022 in respect of the Realisation and 2021 Shares:

Ex-Dividend Date: 2 March 2023
Record Date: 3 March 2023
Payment Date: 31 March 2023
Dividend per Realisation Share: 2.00 US cents per share
Dividend per 2021 Share: 2.00 US cents per share

[scrwal] 21/2/2023 12:56

The announcement may be out this Thursday assuming the divi is to be paid by 31 March at the latest.

[cerrito] 20/2/2023 22:30

Been kicking the tyres here.
You are right Ramellous that we are owed a dividend announcement.
I was comparing the figures at Jan 31 23 with those of June 30 22. Then the NAV was 0.588c and now it is 0.6c. Judged by ratings the portfolios were virtually identical. The percentage of subordinated notes was identical. The only difference in the portfolio was that the %age of US$ assets had decreased from 65% to 61% and an equal rise in Euro assets.
The difference was that the mid share price was 0.555c and at end of January was 0.495c.
As Fair says in this month’s commentary, investor positioning in the CLO market is at one of its most conservative points since 2009..

[ramellous] 20/2/2023 18:22

No dividend announcement for this month yet?

[scrwal] 17/2/2023 12:38

As Cerrito posted the jump may well be linked to the US economics, the underlying risks of the investments and a lower default rate which would affect the valuations in a positive way.

[cerrito] 17/2/2023 07:51

Yes even better than VTA.
In the short term for a £ investor like me the short term looks good with a much better than expected US economy keeping defaults lower and the dollar stronger than expected..but of course the long term is a different country.

[cwa1] 17/2/2023 07:44

That certainly is quite an eye catching NAV jump in the period. Hmmmmm.

[grahamg8] 17/2/2023 07:35

Big nav jump with no explanation. Sp should follow otherwise discount will begin to look silly. Fear seems to have been overdone as I suspected.

[cerrito] 02/2/2023 18:12

Shares in this illiquid share have helkd up pretty well to Fidelity reducing by 5pc to 4.97pc, although at the margin buy backs have helped.

[euameus] 30/1/2023 11:07

REINVESTMENT OF MANAGEMENT FEES



The Company's 2021 prospectus stated that in the event that the Realisation Shares and 2021 Shares trade at discount to any quarter end NAV, calculated on the date that the relevant NAV is published, 25% of that quarter's investment management fees (in respect of the Realisation and 2021 Shares) would be reinvested to purchase Shares in the secondary market.

Accordingly, the Company has been notified that, following the announcement dated 19 January 2023 regarding the NAV as at 30 December 2022, Fair Oaks Income Fund (GP) Limited has purchased 23,920 Realisation Shares and 211,952 2021 Shares in the secondary market.

[bluemango] 19/1/2023 19:51

Bought in today. New investor here.

You wouldn't believe the compliance and cautionary hurdles demanded by the broker, and that's for an ostensibly execution-only service! Yes, I get that it's slightly off-grid, not mainstream and higher risk. But that's the trade-off for the high yield.

Only here for income.

[cwa1] 19/1/2023 07:49

Content with that

[grahamg8] 19/1/2023 07:15

Steady as she goes. Based on a share price of 49c we have an 18% yield and 14% discount. Happy to hold.

[euameus] 06/1/2023 17:46

I would rather see new investors rather than buy-backs, will wait for Monday's RNS to see

[cwa1] 06/1/2023 17:30

A few decent sized trades today. Too much to hope any of them might be buybacks?

[scrwal] 21/12/2022 13:18

I'm surprised they haven't done more big buys considering the size of some sells reported the last couple of weeks although their buys have been shown as sells.

[cwa1] 21/12/2022 07:28

A "monster" buyback announced this morning:-

The Company announces that pursuant to the general authority granted by shareholders of the Company on 14 June 2022 to make market purchases of its own Ordinary shares, it repurchased 128,995 2021 Shares at a price of USD 0.485 per Share, to be held in treasury, on 20 December 2022. This represents approximately 0.032% per cent of the Company's current issued Shares.

:-))

[rambutan2] 20/12/2022 21:37

The Nov nav sheet:

[cwa1] 20/12/2022 10:42

Liberum view

Fair Oak's portfolio continues to perform resiliently, despite more challenging market conditions. Annualised default rates and the proportion of CCC-rated assets is considerably lower than market averages, leaving it well placed to weather market volatility. The headroom on the overcollateralisation test provides comfort on the ability to maintain high cash distributions. Stress testing suggests that the portfolio can continue to perform well, even if default rates exceed the most recent forecasts of 3%+. The company has an attractive discount control policy in place and has consistently bought back shares over recent months. We view the current 13% discount to NAV as overly punitive, given the downside protection and highly attractive 16% dividend yield

[rambutan2] 16/11/2022 21:55

Oct nav sheet, plus quarterly analysis figs.

[scrwal] 11/11/2022 12:29

The closing price was the result of the big UT. Todays action without any UTs so far has reversed the drop.
Surprised that there wasn't any repurchases yesterday as they could have been made at 48c. Also there have been some big "sells" (which could be purchases) so the shares may be here for bigger chunks to be repurchased.

[grahamg8] 11/11/2022 07:14

Thanks for reminding us that we are now XD. Share price dropped 1c, 1.5c, 2c depending on the source you go to, in accordance with the 2c dividend.

ADVFN included if you change the timeline on the chart to 1 month the drop is clear to see. But of course in reality we probably had a ‘real’ gain along with most of the US markets. Lower inflation prospects make high income shares more valuable.

[scrwal] 10/11/2022 13:05

I have been watching the purchases and they are all shown as sales because they are always done at the ask price rather than a bid price.

The price today doesn't appear to reflect the fact its gone xd.