Vpc Specialty Lending In... Share Discussion Threads

[cwa1] 19/11/2020 07:21

DIVIDEND DECLARATION

The Board of Directors of the Company has declared an interim dividend of 2.00 pence per share for the three-month period to 30 September 2020. The dividend will be paid on 17 December 2020 to shareholders on the register as at 27 November 2020. The ex-dividend date is 26 November 2020.



The Company has elected to designate all of the interim dividend for the three-month period to 30 September 2020 as an interest distribution to its shareholders, thereby "streaming" income from interest-bearing investments into dividends that will be taxed in the hands of shareholders as interest income. No income tax will therefore be deducted at source from this, or from future interest distributions.

[redhill9] 17/11/2020 17:22

That's the point - that rise was before the Pfizer announcement that has caused the markets to perk-up, a rise in the general market where VPC seems to have been left behind.

Just checked my spreadsheet and my holding in VPC is almost precisely the same percentage as the current yield.......

[chucko1] 17/11/2020 13:24

It did its big rise the week before the Pfizer vaccine announcement. I cannot buy any more as I have slightly more than 10% in this!

[redhill9] 17/11/2020 12:46

Interesting to observe that the VPC share price hasn't responded much to the general market positivity over the past week or so.

If the VPC asset situation is as comfortable as suggested by the most recent newsletter, the risk/reward here must be even more attractive if economic recovery, as indicated by the market reaction, follows recent news of Covid vaccines.

I'm planning on waiting for the imminent Q3 Letter for more confirmation of their expectation on prospects but currently am feeling persuaded to add more to my already heavy position.

[redhill9] 12/11/2020 11:21

Yes, there isn't any indication of the criteria for how "Best Performing Debt Fund" is actually determined, or the period it covers.

On a more relevant note, the Q3 Quarterly Letter should be available within a week or so which should give an interesting update on current situation and outlook.

[chucko1] 12/11/2020 09:45

Awards are sometimes (often, even) the kiss of death; generally when awards are based on the vanity of revenue rather than the sanity of disciplined returns - something (the latter, let me be clear) VPC do appear to focus on.

[redhill9] 12/11/2020 09:22

It's good to be appreciated......:

Citywire's Annual Investment Trust Awards Names VSL "Best Performing Debt Fund"

LONDON - 12 November 2020 - VPC Specialty Lending Investments PLC ("VSL"), a UK listed investment trust focused on asset-backed lending, today announced it has been named "Best Performing Debt Fund" in Citywire's Fourth Annual Investment Trust Awards.

"We are honoured to accept this award that demonstrates our dedication to delivering strong returns for our shareholders," said Brendan Carroll, senior partner and co-founder at Victory Park Capital. "VSL offers shareholders access to a diversified portfolio of opportunistic credit investments, a focus that will continue to generate new investment opportunities."

VSL focuses on providing capital to vital segments of the economy that are underserved by the traditional banking industry, including small business lending, working capital products, consumer finance and real estate, among others.

"This award is a testament to our commitment to maintaining investment discipline and diligent risk management, generating sustainable returns for our shareholders," added Gordon Watson, partner at Victory Park Capital.

The annual Investment Trust Awards were created to highlight investment trusts and investment companies that have added the most value for investors over three years. For more information on the awards, please visit: hxxps://citywire.co.uk/investment-trust-insider/news/citywire-investment-trust-awards-2020-the-winners/a1422024

[chucko1] 11/11/2020 12:41

It's up 10% recently. The only thing I am considering is adding.

[redhill9] 10/11/2020 11:41

True. Being covered by income, as it has been for most months of the past couple of years, is comforting but, as long as the discount remains, the uncovered dividend being met by capital forming the NAV is not really a problem.

It would only become a concern if the NAV was unreliable, which is unlikely with such a quick turnover of the majority of assets.

[chucko1] 10/11/2020 07:35

They can do whatever they like - including reinvesting selectively. Or buying back more shares. Either way, the uncovered dividend portion effectively represents a return of capital.

That said, I don’t recall the dividend being uncovered by cash other than the last month or two?

[2wild] 10/11/2020 02:52

Near 6 month high and still yielding 11.9%. Although no longer covered by cash earnings, they can probably maintain by utilising their cash pile over the next 4 years.

[chucko1] 09/11/2020 13:37

Did they know?? Ha!

[johnroger] 09/11/2020 13:00

Vote of confidence as directors buy and good timing ahead of the vaccine news

[rambutan2] 02/11/2020 21:12

I imagine VSL partook:

[spectoacc] 31/10/2020 08:15

Thanks @chucko1. Was reading how strange the corporate bond market is atm - effectively indirectly bailed out by govnt. Asset lending surely similar (unless you're KKVL/X), & not reinvesting at false yields the sign of good management IMO.

[chucko1] 30/10/2020 10:22

NAV of 92.14% is now back to 2018 levels. Of course, 16p earned in dividends in the meantime.

Today's NAV was interesting in that the net income component is now as low as 0.50p wheres another chunky capital return from certain of its equity positions. The income return has been steadily trending lower, although it had previously had some variation, being between about 0.80p and 1.00p each month.

For now, I can only assume they are letting positions run off and have held off from re-investing. That may concern some, who are looking for dependable income - but I see a different angle. The NAV discount is currently 30% and has averaged 15% since inception (including the current 30% so the average before the crisis was like nearer 12% or so) - this indicates a high level of risk in its assets or the valuations thereof. But if they are shedding them at pace owing to the very short average life of the portfolio, it is, by most measures, a far less risky portfolio nowadays. If they keep going like this, they will have a mountain of cash producing no income, but an instantaneous gain of 40% upon sending all this cash back to shareholders.

The other angle is that they are reinvesting in part in uncorrelated sectors (legal) but the income is in ramp-up mode. We will have to wait for more information on this.

[redhill9] 30/10/2020 10:20

September monthly letter now available.

hxxps://vpcspecialtylending.com/wp-content/uploads/2020/10/VSL-Monthly-Report-September-2020.pdf

Good to see NAV up 2.29% to 92.14p but the income element of that is only 0.50% which is lowest month for some time, although VPC say it is consistent with previous months and all income due for the month was received. They were holding 9% of NAV in cash which inevitably has impacted income return.

[redhill9] 23/10/2020 14:24

Metage Funds Limited, registered in the Cayman Islands, has just announced going over 3%

[redhill9] 23/10/2020 11:44

...and another announcement giving some background to the Board changes, and the result of shareholder discussion.

[redhill9] 23/10/2020 09:42

Board personnel to be "refreshed and strengthened"

RNS 23 October 2020

VPC Specialty Lending Investments PLC (the "Company")

Refreshing and strengthening the independence of the Board

The Board has now undertaken a review of the skills mix, size, and diversity required of the Directors for the next phase of the Company's development and growth.

The Board will be recruiting two new Independent Directors, one of whom will have financial acumen and be well seasoned in the investment trust market, and for whom the search is already in progress. Given that the Chairman is currently the sole qualified accountant on the Board, the Board also wishes to recruit a qualified accountant, ideally with investment trust experience, to be the Chair for the Audit and Valuations Committee ("AVC Chair"). This search will commence once the previous one concludes. Clive Peggram, the existing AVC Chair, will continue to be a Director. The Board is using an independent search consultancy to source candidates and expects to be able to announce the first appointment within 4 weeks and the AVC Chair early in the new year.

As previously announced on 23 June 2020, Richard Levy will retire from the Board once the search for his replacement has been concluded.

Mr. Kevin Ingram, the Chairman, will oversee the refreshing of the Board's composition and succession process. He intends to retire from the Board at or before the AGM in June 2021.

Mr. Kevin Ingram has served on the Board since the IPO in 2015 and made a considerable contribution both as AVC Chair and subsequently as Chairman. Recently he has seen the Board and VSL through a period of significant challenges, including market turmoil and the continuation vote.

The Board is fortunate that Mr. Kevin Ingram is staying in post until a successor has been appointed and there is an appropriate handover period. The Board is very grateful for all that he has done and continues to do for the Company.

The search for a new Chairman will start in early 2021 and the Board will keep shareholders informed of its progress.

[waterloo01] 19/10/2020 08:48

Still can't buy via Barclays. Absolute shower.

[chucko1] 15/10/2020 15:26

In theory, the NAV should start to drift higher as loans repay. Especially with the short average life. This may in part explain the quick release of some credit-loss provisions last month (and rather more quickly than I had thought would be the case).