Share Name Share Symbol Market Type Share ISIN Share Description
Fair Oaks Income Limited LSE:FAIR London Ordinary Share GG00BNNLWT35 2021 SHS NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 0.675 0.66 0.69 0.68 0.675 0.68 245,668 08:00:12
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 -27.0 -5.8 - 316

Fair Oaks Income Share Discussion Threads

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Despite FAIR being at a premium to NAV Liberum are positive.VTA is on a big discount to NAV so seems much cheaper. Liberum view; Fair Oaks Income Fund Strong portfolio fundamentals Event Fair Oaks's NAV total return in 2015 was -1.2% mainly due to mark-to-market weakness in the second half of the year which offset portfolio income. The market volatility has continued post year-end with a NAV decline of -9.7% in the two months to February 2016. Despite the weakness in the loan market and the subsequent mark-to-market difficulties in the CLO market, Fair Oaks remains on track to achieve the targeted 12-14% p.a.total return for the fund. The portfolio default rate remains extremely low at 0.03% which is due to one default (out of a total of 976 issuers in the portfolio). Oil and gas exposure remains low at 1.9% compared to an average of 3.4% for post-crisis CLOs. The average bid price for loans in the portfolio was 95.33 which is well above the 91.43 average for the Credit Suisse Leveraged Loan Index at the end of December. Fair Oaks invested $206m in 18 new investments in the year. This included the addition of mezzanine positions following the recent market correction. The average expected gross return for 2015 investments is 14.2-16.0%. The Master Fund's investment period is due to end shortly (June 2016) and the fund will begin returning capital after that point. Liberum view The markdown in CLO positions and consequent NAV decline undoubtedly creates short-term issues for investors but this also represents an opportunity as CLO equity generally outperforms when the loan market sells off as managers are able to purchase loans at a discount to par and help build the NAV (of the CLO). To a certain extent, focusing on the CLO equity NAV movement which is impacted by falling loan prices on a levered basis overlooks the benefits of the CLO's term leverage structure. Assuming CLO investments are held to maturity (and they generally are in a permanent capital structure), the ultimate returns will be determined mainly by the credit performance of the portfolio and Fair Oaks is performing ahead of expectations in this regard. We believe the fund's structure with the prospect of near-term capital returns is acting as a natural discount control and is one of the main reasons for the fund's premium rating relative to the sector (7% premium to NAV vs. average 9% discount for peers). Furthermore, Fair Oaks' performance fee structure ensures alignment of interests as shareholders must receive their initial investment back plus a preferred return (7% IRR) before any performance fee is paid.
Just caught up with the February figures and they were a shocker- NAV down 6.64% although they did say that was better than the JP Morgan single B CLO Index which was down 10.2% in the month. No reason given for this performance though it did mean that we had extra information this month . Too bad we do not get/I cannot find figures of quarterly cash distributions as I was keen to see if they got in the $14.7m they said in December they would get in January. Incidentally I note that as at end Feb their largest exposure was to First Data-1% -which was the largest exposure for VTA at their last Annual report date and Valeant was the 4th largest. They give us figures for O&G exposure-great but would be good to have it for O & G suppliers as well. Default rate continues at 0.03%. Note today’s mid price share price was 83c compared to Feb 29 of 78.4c and let’s hope the market’s optimism is justified.
Just caught up with January figures; I see that NAV including dividends paid was down 3.4% in Jan but as they paid a 2.2c dividend a creditable performance taking everything into account. Sad they have had their first default –total exposure was $1.9m(nominal??market??) out of a portfolio which has a marcap of $267m. Energy Exposure was 1.9% but no mention of exposure to Energy suppliers-at least none in the top 10 exposures.
Copied from VTA, was posted by Davebowler Liberum on FAIR; Event FAIR's NAV fell by 3.3% in December 2015 to $0.866 as the company's CLO equity positions were marked down in the month because of lower loan prices within their portfolios. The Master Fund may benefit from the loan price volatility over time as loan prepayments can be recycled into new opportunities at discounted levels (average price of S&P Leveraged Loan Index is 90.5). The underlying portfolio continues to perform well with zero loan defaults to date and the company's CLO equity positions are expected to make quarterly cash distributions of $14.7m in January 2016 (compared to a projection of $11.3m at the time of investment). Dividends for 2015 were equivalent to 11.5% of the December NAV. Liberum view Of the listed CLO fund peer group, Carador and FAIR are likely to have been most affected by recent mark-to-market movements given their high weightings to USD CLO 2.0 equity tranches. The key risks to the realised return of equity tranche investors are loan defaults, Libor rate increases (removing the benefit of the Libor floor) and a decrease in the spread on the loan portfolio. Loan defaults in the market have risen slightly but are still well below historical averages and the 3 month US Libor rate has moved up to c.60bps following the Fed rate rise. The impact of these will be partially offset by the rise in loan spreads which will present opportunities for CLOs that are still in their reinvestment period. FAIR is currently trading on a 7.4% premium to NAV compared to a 10% average discount for the peer group (assuming an average 2% NAV drop in December for peers).
Mr Market clearly does not like today's announcement and is perhaps spooked that the Dec 31 share price was at an almost 10% premium to the Dec 31 NAV. Certainly the market commentary is very bullish and makes the point that the default experience of the fund is key. I will not be buying more as I cannot see the $ strengthening all that much more against the £(I appreciate I have been wrong in this as thought 1.51 would be the bottom ) but for US$ based investors this seems well worth a look.
I see that over the three months to Nov 30 15, the CS Leveraged loan index was down 1.68% and for the year 0.54% while the CS High Yield index was down 2.13% for 3 months and 3.72% for the year. As stated the high yield index has performed worse as it has more O & G exposure. Let's hope the £ continues weak till the FX rate for the next dividend is set
I thought the Manager was upbeat in the November update but we have to brace ourselves for a mark to market down in NAV in December given conditions in the loan market; obviously with the cable at 1.49, in £ terms we have protection but would not count on £ weakening further against the $. You are right webclick99 that the final dividend is welcome I am comfortable with what I have hxxp://www.fairoaksincomefund.com/~/media/Files/F/Fair-Oaks-IF/Fair%20Oaks%20Income%20Fund%20-%20November%202015.pdf
Gosh, this is a quite thread. Given the dividend announcement yesterday that makes the yield 9-10%, so I've added some more. I wasn't expecting such a large final year end div.
I have noted to myself that this is a quiet thread and one reason perhaps is from what I learnt from reading he August prospectus namely that there are 9 holders in excess of 3% who have in aggregate 71% odd of the stock ie in concentrated hands
Cerrito, I think I'm going to buy more because I think GBP could weaken further if the FED raises in Dec.
Have been looking at whether I should buy more; I note their comments that the NAV in September was hit by conditions in the secondary market affecting via the mark to market the NAV. Will wait to see the 31.10 NAV figure but the real question is as a £ based investor do I want to buy US$ assets at $1.5050 per £1. Probably not.
New C shares issue RNS
After a couple of emails, finally received my dividend payment from idealing this morning, a mere 12 days after it was due!
Anyone still waiting on their June dividend here? Due on 25th according to the RNS, yet still waiting for mine from iDealing. Not really like them, but I've given them a nudge.
Liberum; Volta Finance (BUY, TP €7.65) Investment policy changes approved Event At yesterday's EGM, the resolution to amend the company's investment policy was passed by shareholders. Changes to the investment policy were required in order to comply with the eligibility criteria for listing on the official list of the UKLA. The approved changes remove the board's discretion on investment limits in different asset classes and individual assets. Liberum view The listing of VTA's shares is now expected to take place before the end of the month. We believe this will act as a catalyst for an improvement in the share rating given the discount VTA trades at in comparison to London listed peers. VTA's 11.1% discount to NAV is 14 percentage points wider than the peer group average (3% premium).
Alternative idea -Volta ; Investec; Following the Company's statement in its December 2014 monthly report that it expected to be admitted to trading on the LSE by mid-February 2015, the Company has suffered a delay due to an unforeseen technicality relating to the eligibility criteria for listing on the Official List of the UK Listing Authority The Board remains committed to seeking admission to trading on the LSE and, subject to obtaining shareholderapproval for the changes to the investment policy, the Company anticipates becoming admitted to trading on the LSE during May 2015. Investec Insight ¢ As we have previously highlighted, VTA looks especially attractive at current levels of discount, especially when comparables like the London listed Carador (CIFU) and Blackstone GSO Loan Financing (BGLF) are trading at small premiums to NAV and are invested in roughly the same areas. ¢ Returns have been excellent over the full cycle and AXA, the Paris based manager, has managed to deliver annualised returns of 10.7% over the most volatile period in the history of the asset class. ¢ The fund has been hampered by the poor liquidity on the Euronext and we believe the planned London listing should help with both the profile of the fund and liquidity of its shares going forward.
Only just seen the RNS from the 16/1, but certainly explains the recent share price rise. A near 4% payment for the period, plus the following: "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" Lovely to be receiving monthly dividends too of at least 0.7 cents, plus the tease of a final larger 12th dividend depending on earnings. NAV up 0.44% on the month too...
T2 Income Fund CLO I Ltd Redemption Notice hxxp://www.ise.ie/app/announcementDetails.aspx?ID=12190446
I intended buying in but got distracted elsewhere. I already have a number of CLO holdings so just watching for now.
Did you buy in or just watching dendria ?
fairdeal2008 is currently on "NEW" thread you could ask him on there
Fairdeal2008 - do something about your BEM thread pleaseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!
delt, Fairdeal can't ban him now as the nutter has upgraded his membership to blue status. He can only be filtered by individuals.
Chat Pages: 15  14  13  12  11  10  9  8  7  6  5  4  Older
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