Alcentra delivers dividend and creates 15m additional ordinary shares

Guernsey-authorised closed-ended collective investment structure Alcentra European Floating Rate Income Fund has published an update for its portfolio.

Guernsey-authorised closed-ended collective investment structure Alcentra European Floating Rate Income Fund has published an update for its portfolio.

The scheme reported that it had delivered a dividend of 1.52p, which it said was above the annualised target dividend increase of 5.5%.

On February 4th, it stated that the C shares that the company issued in December had been converted to ordinary shares, consequently creating 15.4m additional ordinary shares.

The company further revealed that the top five performers were all loan positions that were up between 2.0% and 4.0% over the month, benefiting from a robust underlying market.

In what it described as a reversal of last year's typical trend, the worst five performers were all high yield bond positions that were down between 2.0% and 3.0% over the month.

The high yield exposure is capped at 15% in the fund and all of the bottom five positions were less than €1.0m in size.

Alcentra invests predominantly in senior secured loans and senior secured bonds by European corporates and targets returns if 7.0%-to-10% per annum.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020