SLF Realisation Share Discussion Threads

[wilwak] 21/5/2021 21:04

I agree entirely with Chucko.

The source of the 6p was very vague on the c shares. I’d hoped it was interest received but it could well be from loan 40. Who knows?

I have a large holding of Ords that I bought for 13p so have already received most of that back now in dividends. However based on current valuations the C shares presently look the better buy.

The uplift in the shipping vessel valuations implies to me that they have a deal on those very close.

[spectoacc] 21/5/2021 14:03

Always have been :)

Never trusted the AD. Nor did Dawn, in fairness.

Since they've contracted the wind-up period, be interesting to see where they realise any Suniva value too.

[chucko1] 21/5/2021 13:40

Who knows? To pay the 6pps as they did without really explaining where it came from is par for the course. Either way, even if you assume the worst and there was no income and the 6p came from this refinancing alone, discount is 40%. And the risk profile is now far superior to that of the Ords. But there will have been some income as each asset yields around 10% and most are still performing. Costs are not that high.

If AD continues to get coshed, you really want to be in the Cs rather than the Ords.

[ctrader3] 21/5/2021 13:35

or if u bought the Cshares at 34.4 and could sell at NAV 55p

£100 = 290 shares buy @ 34.4p
290 shares sell @ 55p = £159.50

ordinaries
£100 = 536 shares @ 18.65p
536 sell @ 28.9p = £155.00

[spectoacc] 21/5/2021 13:20

@chucko1 - I couldn't tell if Loan 40 (for qtr ending 31st March) was the 6p capital return in April or not? Or was that from income, something the X's get a lot more of than the L's?

[ctrader3] 21/5/2021 13:16

as at 31 March 2021, the unaudited estimated NAV was £85.1m or 61.2 pence per C Share.

Subsequent to 31 March 2021 a further 6 pence per C Share was returned to C Shareholders as announced on 9 April 2021.

on a buying price of 34.4p a discount of around 60%.

[chucko1] 21/5/2021 13:09

BUT the Cs are effectively at a far larger discount now. Take into account Loan 40 (their largest) which was repaid (I assume given that it was refinanced and I do not suppose KKV did that!). Therefore, the discount implied within this loan has just turned into cash. I see a discount of around 50% when that is taken into account.

I see 28p cash adjusted share price versus 56p NAV cash adjusted.

Perma seller in the Cs and, it seems, a needy seller who simply want to pack up and go home to his mummy. I'm more than happy to take his chocolate off him as he is on his way.

I see the refinancing of Loan 40 as pretty important (regardless of the £1mn gain from previous NAV), but communication from KKV is terrible as ever. Has cost me in the past, but happy for them to mess up as they liquidate. All they have to do is get reasonable prices for the assets and even an idiot could make money out of this.

[ctrader3] 21/5/2021 12:08

so on the current buy price the share is trading
at a discount of 35%.

[ctrader3] 21/5/2021 12:02

ctrader3 - 23 Apr 2021 - 10:27:37 - 453 of 475 KKVL with Charts and News - KKVL
with the proviso that the NAV is made up of the following elements.

Cash
NCV adjustments
Interest received
FX adjustments
Management charges, costs
Plus or minus on the actual sale figure
of assets sold against the NCV

the last published NAV was 39.2p
assets sold at NCV 10p so current
NAV 29.2p

------------------------

so current NAV of the ordinaries subject to changes since 31 Mar
28.9p

[ctrader3] 21/5/2021 11:59

KKV Secured Loan Fund Limited ("the Company")

Quarterly Net Asset Values ("NAVs")

The Company announces the following NAVs:

Ordinary Shares:

As at 31 March 2021, the unaudited estimated NAV was £122.3m or 34.4 pence per Ordinary Share. This compares to £140.7m or 39.5 pence per Ordinary Share from the December 2020 unaudited estimated NAV.

For the Ordinary Share Class £17.8m or 5 pence per share was returned to Shareholders on 17 March 2021.

The total return per Ordinary Share during the period from 31 December 2020 to 31 March 2021 was therefore minus 0.40 per cent.

During the quarter to March 2021 the most notable credit changes were:

Borrower 1 (the NE England AD plant) is now valued at £10.9m a reduction of £3.4m in NAV from December's £14.3m. The model was updated to reflect recent business activity of the borrower. This reduction reflected a loss of 1.0 pence per share.

Borrower 8 (the shipping vessel exposure) saw a material uplift in valuation to £11.7m resulting in the NAV increasing by a total of £2.7m from £8.9m reflecting an increase of 0.8 pence per share.

Borrower 21 (the US medical facility debt) was upgraded to Stage 2 after resuming payments. NAV increased to £2.3m from £1.0m reflecting an increase of £1.3m or 0.4 pence per share.

Borrowers 14 & 15 (Electricity Generation) NCV £15.2m repaid as announced on 22 March 2021. The repayment settled the loan in full and benefitted from a small prepayment fee.



Subsequent to 31 March 2021 a further 5.5 pence per Ordinary Share was returned to Ordinary Shareholders as announced on 9 April 2021.



C Shares:

As at 31 March 2021, the unaudited estimated NAV was £85.1m or 61.2 pence per C Share. This compares to £97.9m or 70.5 pence from the December 2020 unaudited estimated NAV.

For the C Share Class £16.7m or 12 pence per share was returned to Shareholders on 17 March 2021.

The total return per C Share during the period from 31 December 2020 to 31 March 2021 was therefore 3.9 per cent.



During the quarter to March 2021 the most notable credit movements were:

Borrowers 47, 48 and 51 (the shipping vessels) saw a material uplift in valuation to £13.3m an increase of £3.1m from £10.2m reflecting an increase of 2.2 pence per C Share.

Borrower 54 (the battery facility exposure) was downgraded to Stage 2 due to increased uncertainty in performance. NAV reduced by £0.8m to £1.9m reflecting a loss of 0.6 pence per C Share.

Borrower 40 (the remote operating vehicles) refinanced their facility repaying £8.3m vs a £7.3m December NAV. This reflects an uplift of £1m, an increase of 0.7 pence per C Share.



Subsequent to 31 March 2021 a further 6 pence per C Share was returned to C Shareholders as announced on 9 April 2021.



For further information please contact:


KKV Secured Loan Fund Limited

Brett Miller

[chucko1] 13/5/2021 08:56

Agree with the above. It is slated as a debt fund but had 40% odd in ADs which turns out to be nearer to equity. (the Ls, obviously).

But therein lies the opportunity when it gets way "over-panicked". But, I must say, an unnecessary diversion of focus when you are having to second-guess everything that gets published.

[spectoacc] 13/5/2021 05:54

I dissent, KKVX was an utter shambles, and all at her door.

Isn't to blame for KKVL, but the reporting by her on both has been borderline dodgy. Radio silence at times, write-downs/write-ups, things getting "discovered".

[gopher] 12/5/2021 17:08

Echo your comments Makinbuks. Not an easy job for her given the circumstances but she has a history here which I am sure is invaluable.

[makinbuks] 12/5/2021 09:20

As I have said before, I have a lot of time for Dawn Kendall so hope she's OK and returns promptly

[ctrader3] 11/5/2021 14:31

April was a good month for commodity funds, while the spiralling coronavirus situation in India weighed on funds focused on the country, according to the monthly winners and losers list from QuotedData on Tuesday.

The median share price total return for India-focused investment trusts last month was negative 3.7%.

In addition, QuotedData highlighted Japanese trusts, including Schroder Japan Growth and Aberdeen Japan, were among the worst performers.

"While this was not as severe as the number of cases in India, investors are cautious amid the continuing concerns about the spike in daily infections," QuotedData added.

The commodities & natural resources sector was the top performer, with a median share price total return of 9.7% in April. The share price return from UK smaller companies came in second place, at 9.6%, with the segment remaining popular as the country's vaccine rollout continues at pace.

The following were the best and worst performing London-listed investment companies in April, excluding trusts with market capitalisations below GBP15 million:

Five best performing funds in NAV terms with % change:

Golden Prospect Precious Metals Ltd 11.7%

JPMorgan Smaller Cos Investment Trust PLC 11.3%

Gresham House Strategic PLC 11.2%

Blackrock Throgmorton Trust PLC 10.9%

CIP Merchant Capital Ltd 10.7%

Five worst performing funds in NAV terms with % change:

Aberdeen New India Investment Trust PLC (4.4%)

JPMorgan Indian Investment Trust PLC (4.2%)

Aberdeen New Thai Investment Trust PLC (3.5%)

Schroder Japan Growth Fund PLC (3.3%)

Aberdeen Japan Investment Trust PLC (3.1%)

Five best performing funds in price terms with % change:

JZ Capital Partners Ltd 57.4%

Electra Private Equity PLC 32.7%

Globalworth Real Estate Investments Ltd 25.2%

Golden Prospect Precious Metals Ltd 23.2%

KKV Secured Loan Fund Ltd 20.2%

Five worst performing funds in price terms with % change:

Schroder UK Public Private Trust PLC (15.0%)

LMS Capital PLC (12.7%)

Jade Road Investments Ltd (8.9%)

Crystal Amber Fund Ltd (8.7%)

Symphony International Holdings Ltd (8.5%)



Source: QuotedData. Full details at hxxp://www.quoteddata.com

[spectoacc] 11/5/2021 14:01

Tosses in a bit of uncertainty, but seems largely irrelevant:

"The Board of KKV Secured Loan Fund Limited (the "Company") has been informed by its portfolio manager, KKV Investment Management Ltd (the "Portfolio Manager"), that Dawn Kendall, Chief Investment Officer, is taking a temporary leave of absence. It is expected that Dawn will be in a position to return to work in approximately two months.



The Portfolio Manager has made good progress with the realisation of the Company's portfolios since its appointment, enabling the Company to return £37.4m to Ordinary Shareholder and £25.0m to C Shareholder during 2021. In Dawn's absence, other members of the Portfolio Manager's executive team will continue to progress realisation opportunities under the oversight of Ken Hillen, Executive Chairman and Brett Miller, director of the Company with a number of further potential realisations and/or refinancing being worked on. The Board looks forward to Dawn's return to the Portfolio Manager in the near future."

[ctrader3] 06/5/2021 09:51

IF they pay out 13p, it would come off the share price
which would equate to 6.5p to buy

the NAV would fall by the same amount to around 16p.
it's stated figures don't lie but they can mislead.

[ctrader3] 06/5/2021 08:26

AD Plants

We have separated our comment on AD Plants into two categories: those subject to KPMG valuation review and other smaller facilities.



The six plants revalued by KPMG are Borrowers 1, 2, 3, 5, 13 and 18.


----------
AD plant 13 was sold close to NCV.
if the other AD plants listed above are sold at NCV it will equal a payment
of 13p.

[spectoacc] 05/5/2021 14:40

"Credit where it's due", lol. To the very nub of the issue.

(Had mine in all a/cs now).

[chucko1] 05/5/2021 14:09

They've sped up the process. Credit where it's due.

[redhill9] 05/5/2021 14:01

Just received now in HL.

[chucko1] 05/5/2021 10:04

I complained to HL last time but they never responded! But the dosh turned up around 2 days later than the other brokers, including Barclays which is shocking just in itself!

[2wild] 05/5/2021 09:57

Eqi and Lloyds Bank paid me first thing this morning.

[redhill9] 05/5/2021 08:30

Nothing yet for me on Hargreaves Lansdown but recently they're not as prompt with these things as they once were.