Business
Pre - close Trading Update
Pre - close Trading Update.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n \nRNS Number : 0069J Greenwich Loan Income Fund Ltd 24 June 2011 \n \n\n \nGreenwich Loan Income Fund Limited\nPre-close Trading Update \n24 June 2011\n\nGiven the significant changes within the Company during the first half of 2011, Greenwich Loan Income Fund Limited (\"GLIF\" or the \"Company\") is today providing investors with the following pre-close trading update. \nCLO Review\n\nAs announced in April, Berkshire Capital is conducting a strategic review of GLIF's holding in T2 CLO I Ltd (\"the CLO\"). It is expected that the review will conclude during Q3 2011, resulting in a decision to dispose of all, part or none of the Company's investment in the CLO. \n \nDepending on the price at which any reduction in the CLO position is executed, it could reduce the management fees from the end of the first quarter of 2012 to close to the minimum level of £155k per quarter specified in the management fee variation agreement, compared to the £911k per quarter to be paid for the remainder of this financial year. It could also provide an opportunity to diversify the asset base of the Company, and alongside the review of the CLO, GLIF's investment manager, T2 Advisers, is reviewing potential reinvestment strategies. However, any diversification will only be considered if it is expected that the risk/return profile of the portfolio as a whole and the current dividend policy are not adversely affected.\n \nWhatever the outcome of the CLO review, the variation to the management fees agreed recently should result in an increase in net income for GLIF during 2012. The Board believes that a sustainable and progressive dividend is more valuable to long term shareholders than achieving the highest possible dividend in any one period. In addition, being an offshore investment company, GLIF is not bound by the strictures of s1158-1159 of the Corporation Taxes Act 2010 (previously s842) in setting the proportion of revenue to be paid out in any one financial year. The Board will therefore seek to use that flexibility to provide greater confidence in the level of the Company's dividend and to build the potential for a growing level of dividend in the future. \n \nAsset Management Investment Company acquisition\n\nThe acquisition of Asset Management Investment Company plc (AMIC) was completed in January for £12.3m....