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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.

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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

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