DJ Sequoia Economic Infra Inc Fd Ld Net Asset Value and Investment Update
Approximately 52% of the Ordinary Share portfolio comprises floating rate assets, with only two LIBOR floors above current LIBOR levels (of which one is Sterling and the other is Euros). As such, the portfolio's yield is likely to rise over time as LIBOR increases.
The investments are across the UK, Western Europe, Australia, Canada and the US and include a wide range of asset types including road, rail, utility, power, shipping, renewables and aircraft and ship leasing.
Over the month of October, the Company had its position in IO Data Centres called, and subsequently invested the proceeds in the refinancing of the original transaction. The Company chose to slightly increase the amount invested by $2.5mm, resulting in an aggregate amount of $37.5mm. The first drawdown of the Abteen Ventures term loan was made 20th October. In addition, the Company had its position in Biffa Term Loan A refinanced.
As Sterling remained volatile against the dollar and the euro over the month of October, the Investment Adviser's goal was to reduce NAV volatility arising from FX movements by continuing to maintain its hedging strategy. As of the 31st October 2016, approximately 80% of NAV was either Sterling assets or hedged into Sterling.
In the months following Brexit, Sterling's continued weakness against the dollar and the euro has had a positive effect on NAV with the gain in the Sterling value of the non-Sterling assets outweighing the loss on the hedges.
The Company has more than adequate resources to cover the cash costs associated with its hedging book. Each of its FX hedge providers has credit lines to the Company which means that the margin calls on the hedge portfolio have been modest.
The small increase in the Ordinary Share NAV (ex-dividend) to 102.00p from 101.29p per share arose primarily through: — Interest income net of expenses of 0.46p;
The investments are across the UK, Western Europe, Australia, Canada and the US and include a wide range of asset types including road, rail, utility, power, shipping, renewables and aircraft and ship leasing.
Over the month of October, the Company had its position in IO Data Centres called, and subsequently invested the proceeds in the refinancing of the original transaction. The Company chose to slightly increase the amount invested by $2.5mm, resulting in an aggregate amount of $37.5mm. The first drawdown of the Abteen Ventures term loan was made 20th October. In addition, the Company had its position in Biffa Term Loan A refinanced.
As Sterling remained volatile against the dollar and the euro over the month of October, the Investment Adviser's goal was to reduce NAV volatility arising from FX movements by continuing to maintain its hedging strategy. As of the 31st October 2016, approximately 80% of NAV was either Sterling assets or hedged into Sterling.
In the months following Brexit, Sterling's continued weakness against the dollar and the euro has had a positive effect on NAV with the gain in the Sterling value of the non-Sterling assets outweighing the loss on the hedges.
The Company has more than adequate resources to cover the cash costs associated with its hedging book. Each of its FX hedge providers has credit lines to the Company which means that the margin calls on the hedge portfolio have been modest.
The small increase in the Ordinary Share NAV (ex-dividend) to 102.00p from 101.29p per share arose primarily through: — Interest income net of expenses of 0.46p;
— An increase of 0.76p in asset valuations;
— An increase of 0.99p in FX movements