Business
NAV Update for the quarter en
NAV Update for the quarter en.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n RNS Number : 1620M Greenwich Loan Income Fund Ltd 19 May 2010 \n \n\nGreenwich Loan Income Fund Limited\nNAV Update for the quarter ended 31 March 2010\n \n \n19 May 2010\n \nThe Company announces that as at 31 March 2010, its preliminary unaudited net asset value (NAV) per share was 75.9p. The increase in NAV, compared to the NAV of 70.2p per share as at 31 December 2009, was due primarily to mark-ups of the CLO portfolio investments, offset to some extent by mark-ups on CLO notes. The weighted average market bid for the Company's portfolio at the quarter end was 90.7% of par and for the liabilities 80.3%. This compares to year-end figures of 77.3% of par and 77.1% respectively. The NAV also benefited from a strengthening of the US dollar versus the Pound Sterling and the increased level of prepayments and amortizations.\n \nAs previously described to shareholders, under International Financial Reporting Standards (IFRS), the consolidated results of operations for the Company include the impact of carrying its investments and its liabilities at fair value. Shareholders should be aware that the Company's realisation of the full NAV is unlikely. The NAV, as calculated in accordance with IFRS, reflects the theoretical fair value of the liabilities of the CLO but, because the market is rather illiquid, it may be difficult for the Company to acquire any or a significant portion of those liabilities. \n \nAs discussed in the Chairman's message at year-end, the Board has determined that it will release two further calculations with the NAV release in order to provide a greater level of background information. \n \nThe first calculation is based upon the value of the assets at market value (including cash in the CLO), but the liabilities at their par value. This calculation results in a per share value for 31 March 2010 of 38.9p, compared to 29.7p per share at the year end. (The calculation disclosed in the annual report did not reflect the value of cash at the CLO, only investment portfolio values.) The reason for this substantial jump in value is principally due to the fact that the market value of the portfolio investments of the CLO, at $278.2 million, exceeds the CLO liabilities of $248.9 million, and therefore any rise in value of the CLO assets is reflected in this c...