ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

FAIR Fair Oaks Income Limited

0.555
0.00 (0.00%)
Last Updated: 08:00:09
Delayed by 15 minutes
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 Shares Traded Last Trade
  0.00 0.00% 0.555 18,070 08:00:09
Bid Price Offer Price High Price Low Price Open Price
0.55 0.56 0.555 0.55 0.55
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Trust,ex Ed,religious,charty 32.13M 30.99M 0.0741 7.42 232.17M
Last Trade Time Trade Type Trade Size Trade Price Currency
11:04:15 O 2,070 0.55608 USD

Fair Oaks Income (FAIR) Latest News

Fair Oaks Income (FAIR) Discussions and Chat

Fair Oaks Income Forums and Chat

Date Time Title Posts
12/2/202518:07Fair Oaks Income Fund393
13/11/201123:36Undervalued Natural Resources Stocks171
02/11/201110:37Undervalued AIM stocks discussion thread11
22/11/201009:52Exploration stocks still to break out3

Add a New Thread

Fair Oaks Income (FAIR) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
11:04:150.562,0700.00O
08:00:090.5516,0000.00UT
2025-03-04 13:41:250.556200.00O
2025-03-04 13:41:250.5640.00O
2025-03-04 13:41:250.564990.00O

Fair Oaks Income (FAIR) Top Chat Posts

Top Posts
Posted at 05/3/2025 08:20 by Fair Oaks Income Daily Update
Fair Oaks Income Limited is listed in the Trust,ex Ed,religious,charty sector of the London Stock Exchange with ticker FAIR. The last closing price for Fair Oaks Income was US$0.56.
Fair Oaks Income currently has 418,315,871 shares in issue. The market capitalisation of Fair Oaks Income is £230,073,729.
Fair Oaks Income has a price to earnings ratio (PE ratio) of 7.42.
This morning FAIR shares opened at US$0.55
Posted at 20/1/2025 10:32 by natspur
Hello,Two questions that are probably silly but trying to understand the product:-for a UK-based investor: the shares trade on LSE in USD, does a US dividend tax get deducted when the dividend is received? (My guess is no as this remains a UK share so should only be liable to tax in the UK but just checking)-Getting a bit confused with these fund shares. Do you get charged the management fee mentioned in their report if you own the share or is this fee only for the investors who have invested money in the fund? (Again my guess is no)
Posted at 03/1/2025 15:47 by bert_e
It's fixed guys - FAIR came back to me and they have worked it out with HL - apparently it was down to a third party vendor issue. Have just purchased without problem.
Posted at 01/1/2025 20:20 by bert_e
Ah yes that is exactly the same reason they are saying for FAIR - very interesting.
Posted at 01/1/2025 11:09 by bert_e
Yeah it's nothing to do with them being complex instruments - I already have a holding and regularly buy things deemed under that category. It's because they don't have this:

"assessment of value in their European MiFID Template, which is a key MIFID requirement"

I've written to Fair Oaks Capital to try and get them to provide one but they are just ignoring me. HL have also apparently reached out to them. Was going to invest my API proceeds into them so a bit annoying.
Posted at 01/1/2025 10:52 by grahamg8
Bert I last bought FAIR through HL in July, so it is definitely possible. The shares are rated high risk which is why you need to contact them on the phone. I am also fairly sure you will have had to complete the experienced/sophisticated investor declaration. Have you?
Posted at 13/11/2024 12:37 by bluemango
Downside?

Arguably more risk to capital than with your average share. And unlikely to have capital growth. But the latter point is more than compensated by the earnings.
Posted at 10/8/2024 10:51 by grahamg8
full English, please don't shoot the messenger. I only pointed out that there are similar companies to FAIR. That is definitely not a recommendation. FAIR is my preferred pick by a long way, although I do have a few VTAS.
Posted at 17/4/2024 08:23 by davebowler
Liberum Structured CreditFair Oaks Income Good time to be allocating to CLO equityAnalyst: Shonil ChandeMkt Cap £183m | Share price $0.56 | Prem/(disc) -0.9% | Div yield 14.3%EventFair Oaks Income's NAV per share increased by 0.7% (+3.8% NAV TR YTD) in the monthly period to 31 March 2024, to $0.565. We summarise some of the main monthly market indicators below:US loan default rate: Decreased from 1.41% to 1.14% m-o-m.European loan default rate: Decreased from 1.86% to 1.65% m-o-m.Distress ratio (loans trading below 80c, a potential indicator of the direction of future defaults): Declined in the US from 5.08% to 4.95% and in Europe from 2.80% to 2.78%.Liberum viewAnother good update underlining why FAIR's CLO equity-focused strategy is an attractive place to allocate to given the lowering default rates in the broader leveraged loan markets, high distributions, relatively benign macro and the fact that CLO equity valuations have the potential to follow the normalisation path seen in CLO mezzanine debt.?This is a performing CLO equity portfolio that is attractively valued, with potential for higher valuations. We note the manager's comment (factsheet) that "the weighted average price for US CLO equity in the Master Fund's portfolio has decreased from 39.6c to 36.2c in the last 12 months while the weighted average loan bid price has risen from 93.7c to 96.6c in the same period and ii) cash-flow multiples: c. 3.5x based on March's valuations and annualised quarterly cash-flows."The chart below is a sensitivity based on the CLO portfolio, as at 31 December 2023. It shows the significant slack embedded into the valuation of the US CLO equity portfolio. We also note that the high yields in CLO equity are driven by the excess distributions to the equity holder once all liabilities are paid to debt tranches. The underlying loans that fund the CLO equity and CLO liabilities are senior secured bank loans that side above high yield debt and preferred stock and underlying loan spreads are typically in the 2.5%-4% range. We are BUYers with a target price of $0.66.
Posted at 22/1/2024 10:30 by euameus
Liberum on Fair Oaks Income
Investment case remains compelling despite discount closing
Analyst: Shonil Chande
Mkt Cap £177m | Share price $0.56 | Prem/(disc) -1.6% | Div yield 14.4%
Event
Fair Oaks Income’s NAV per share of $0.564, as at 31 December 2023, represented a 0.14% monthly increase and a 12.9% NAV total return in the calendar year.
Default levels firmly lower than forecast a year ago
The European loan default rate increased from 1.42% to 1.62%, and the US loan default rate increased from 1.48% to 1.53% in December. These levels are significantly below market forecasts at the end of 2022. The forward-looking distress ratio decreased from 4.79% to 4.32% in Europe and from 7.30% to 6.36% in the US.
Liberum view
FAIR has performed very well over the past year, with the underlying performance of the CLO equity and debt portfolios very well supported by corporate measures, particularly the share repurchase programme. In the context of the near outright closure of FAIR’s discount, it may be tempting to view FAIR as relatively less attractive. We make a few key points to counter this. Firstly, At NAV (ie no discount), FAIR’s dividend yield is c.4 percentage points higher than the second highest-yielding alternative fund (market caps above £150m).
Secondly, with respect to increases in default rates and the impact this can have on CLO equity valuation, as opposed to distributions given that a far more punitive environment (overacollaterlisation tests continue to build in firm support) is required to divert distributions away from the equity tranches, it is the difference between expectations and actual rates that matters more than the directional trend. Therefore, default rates below prior expectations and the declining forward-looking distress ratio are positive indicators with respect to CLO equity valuations going forward. More than 80% of the European and US loan indices are now trading above 95.
The two charts below show 1) the downward trend in the core USD CLO equity valuations in particular, mitigating risk, and 2) the potential positive impact on NAV from upward moves in valuation. If the market has modelled overly pessimistic assumptions for USD CLO equity, the prices of some of the US CLO equity tranches could rally significantly. We also note the manager’s comment in the factsheet: “Assuming the US default scenarios forecast by S&P Global Ratings, we estimate that the gross IRR for the Master Fund would be 33%, 26% and 15% in an optimistic, base and pessimistic scenario, respectively.”


Alignment and repurchases
FAIR has overseen a highly effective share repurchase programme since October 2022, with tangible impact across several metrics. A focus on CLO equity, which has historically delivered a double-digit cash yield, and CLO debt, meant that even after reducing its annual dividend, in 2022, from 9.5c to 8c to fund the repurchases, the dividend yield at NAV remained above 13%. Other initiatives include the fixed-life realisation share class and re-investing 25% of management fees whenever the shares trade at a discount. We are BUYers with a target price of $0.66.
Posted at 16/8/2023 09:11 by cwa1
davebowler16 Aug '23 - 09:57 - 647 of 647
0 1 0
Liberum commentary on FAIR -
Strong distribution momentum from second highest yielding AIC fund at NAV
Analyst: Shonil Chande

Mkt Cap £170m | Share price $0.53 | Prem/(disc) -11.4% | Div yield 15.0%

Event

Fair Oaks Income’s NAV per share increased by 2.5%, to $0.598, in July 2023. This represented a 2.5% increase in the month (+11.8% YTD). Quarterly distributions received by the Master Fund in July totalled $21.1m, reflecting a 21.6% annualised yield on NAV and a 24.4% yield on yesterday’s closing price. Distributions have been increasing over recent months, with the portfolio benefitting from an increasing arbitrage spread of the underlying loan pool over the cost of CLO financing.

Based on July 2023 distributions, we calculate that the CLO equity portfolio was valued at a 4.0x multiple to cash flows, with the USD CLO equity portfolio valued at 2.9x and the EUR CLO equity valued at 4.9x.


Default rates in the US increased by 0.4ppts to 1.75% and by 0.53ppts to 1.51% in Europe. The European increase was due to Casino defaulting on a €1.4bn of senior debt.

The forward-looking distressed rate declined from 8.47% to 7.55% in the US and increased from 4.13% to 4.17% in Europe. This measures the proportion of loans trading below 80c, and a decline is a forward-looking indicator that suggests improving sentiment towards leveraged loans. FAIR’s July factsheet notes the potential impact on European and US leveraged loan indices from issues at Altice Group.

Significant overcollateralisation headroom

The overcollateralisation tests continue to leave significant headroom before a breach would kick in and divert cash flows away from CLO Equity tranches. As an approximation and assuming a 70% recovery rate in the event of default, we estimate that a c.13% cumulative default rate would be required before the 4.0% overcollateralisation threshold was breached. This is an indicative calculation based on the most recent weighted-average overcollateralisation cushion of 4% divided by the 30% loss from each default.

FAIR’s ‘GFC scenario’ models a gross return of 6% based on NAV and 11% based on the share price, as at 31 July 2023.

FAIR’s CLO equity assets have consistently demonstrated stronger credit performance than the broader CLO market, which in turn has significantly outperformed other corporate debt categories on returns and default rates. There is additional de-risking via a shareholder-friendly structure.

Liberum view

Distribution momentum is strong and leveraged loan indices have performed well over the past several weeks. Given that the US CLO equity portfolio’s mark-to-market valuation stands at a median 34%, de-risking is built into the valuation and there is potential for valuations to improve.


FAIR’s shares have been amongst the best performers over the past year with the 27% share price TR ranking third amongst alternative funds (ex-3i). We believe the shares continue to present attractive value given the underlying strong distributions, and the potential for higher US CLO equity valuations.


FAIR’s share repurchase programme, in place since last October, has driven a significant reduction in its bid-ask spread in absolute terms and relative to peers. We believe it is attractively positioned compared to most peers and that the relative discount is not justified, in most cases.
Fair Oaks Income share price data is direct from the London Stock Exchange

Fair Oaks Income Frequently Asked Questions (FAQ)

What is the current Fair Oaks Income share price?
The current share price of Fair Oaks Income is US$ 0.555
How many Fair Oaks Income shares are in issue?
Fair Oaks Income has 418,315,871 shares in issue
What is the market cap of Fair Oaks Income?
The market capitalisation of Fair Oaks Income is USD 232.17M
What is the 1 year trading range for Fair Oaks Income share price?
Fair Oaks Income has traded in the range of US$ 0.51 to US$ 0.6075 during the past year
What is the PE ratio of Fair Oaks Income?
The price to earnings ratio of Fair Oaks Income is 7.42
What is the cash to sales ratio of Fair Oaks Income?
The cash to sales ratio of Fair Oaks Income is 7.16
What is the reporting currency for Fair Oaks Income?
Fair Oaks Income reports financial results in USD
What is the latest annual turnover for Fair Oaks Income?
The latest annual turnover of Fair Oaks Income is USD 32.13M
What is the latest annual profit for Fair Oaks Income?
The latest annual profit of Fair Oaks Income is USD 30.99M
What is the registered address of Fair Oaks Income?
The registered address for Fair Oaks Income is PO BOX 296, SARNIA HOUSE, LE TRUCHOT, GUERNSEY, GY1 4NA
What is the Fair Oaks Income website address?
The website address for Fair Oaks Income is www.fairoaksincome.com
Which industry sector does Fair Oaks Income operate in?
Fair Oaks Income operates in the TRUST,EX ED,RELIGIOUS,CHARTY sector