The Lemon Fool

pje16 wrote:dipped my toe into the water

88V8 wrote:I held these for a short while, but after this https://www.lemonfool.co.uk/viewtopic.php?p=460110#p460110 I sold them again.

Over the last 12 months they've slid bumpily downwards. They hold a portfolio of debt, and like other fixed interest vehicles I expect the SP to keep sliding until interest rates top out.

V8

Interim Dividend for the Period Ended 30 June 2022

The Directors of the Company have declared that an interim dividend of 1.5625p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 30 June 2022:

Ex Div 28 Jul 22, paid 26 Aug 22.

Investment Adviser Shares

The Company further announces that in accordance with the terms of the Investment Advisory Agreement between the Company and Sequoia Investment Management Company Limited (the "Investment Adviser"), the Board has considered the issue of shares to the Investment Adviser for the relevant portion of the fees payable to the Investment Adviser for the three month period ended 30 June 2022. As the closing price for the Company's ordinary shares on 18 July 2022 (being the last trading day prior to the Board considering the issue of shares to the Investment Adviser) was at a discount to the last published NAV per share, the relevant portion of the fees payable to the Investment Adviser for the three month period ended 30 June 2022 which would otherwise have been issued as shares, will instead be paid by the Company to the Investment Adviser in cash in the amount of £293,823.74. The Investment Adviser has committed to issue an irrevocable instruction upon receipt of the funds to utilise such cash to acquire ordinary shares in the capital of the Company in the market without delay and such shares will be subject to a three-year rolling lock-up in accordance with the terms of the Investment Advisory Agreement. A further announcement will be released in the coming days once the shares have been acquired by the Investment Adviser.

The Company announces that, in accordance with the terms of the Investment Advisory Agreement between the Company and Sequoia Investment Management Company Limited (the "Investment Adviser"), the Investment Adviser has acquired 341,601 ordinary shares in the capital of the Company ("Ordinary Shares") at a price of 86.0 pence per Ordinary Share, in relation to fees payable for the three-month period ended 30 June 2022. The Ordinary Shares have been purchased pursuant to the Investment Advisory Agreement ("IAA"), details of which were disclosed in the prospectus published by the Company on 10 February 2020.

Following the purchase, the Investment Adviser has an interest in 3,731,266 Ordinary Shares, representing 0.21% of the Company's issued Ordinary Shares.

NAV update

The NAV for SEQI, the specialist investor in economic infrastructure debt, decreased to 93.64 pence per share from the prior month's NAV of 96.74, representing a decrease of 3.10 pence per share.

Portfolio update

As at 30 September, the Company had cash of £38.2m and had drawn 193.0m on its £325m revolving credit facility. The Company also had undrawn commitments on existing investments collectively valued at £89.8m. The Company's invested portfolio consisted of 64 private debt investments and 8 infrastructure bonds across 8 sectors and 28 sub-sectors. It had an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 11.2% and a cash yield of 7.3%. The weighted average portfolio life is approximately 4.5 years. Private debt investments represented 96% of the total portfolio and 57% of the portfolio comprised floating rate assets.

The Company's invested portfolio remains geographically diverse with 55% located across the US, 21% in the UK, 23% in Europe, and 1% in Australia/New Zealand. The Company's pipeline of economic infrastructure debt investments remains strong and is diversified by sector, sub-sector, and jurisdiction. At month end, approximately 101% of the Company's NAV consisted of either Sterling assets or was hedged into Sterling. The Company has adequate resources to cover margin calls on its hedging book.

The fall in the NAV this month is primarily due to increases in risk-free rates and credit spreads. The rise in risk-free rate adjustments has also increased the yield-to-maturity of floating rate investments and reduced the clean price of fixed rate assets (which also increases the yield-to-maturity). Investors are reminded that these declines are unrealised mark-to-market adjustments that should reverse over time as the investments approach their repayment date (the "pull-to-par").

The Investment Adviser expects the Company's dividend cover to materially improve for the 2023 financial year as the portfolio's floating rate investments (representing 57% of the portfolio) continue to benefit from increasing short term interest rates.

1.5625 pence per share

Paid on 25 Nov 22, ex dividend date being 27 Oct 22.

KEY HIGHLIGHTS

· Robust underlying portfolio performance, outperforming credit markets

· Most of NAV decline due to increasing interest rates and credit spreads, which contributed to 7.77p per Ordinary Share of NAV decline

· Total return on NAV of -3.8% reflects higher discount rates applied to portfolio assets which are expected to accrete back to par as loans approach their repayment dates

· Well positioned to benefit in higher interest rate environment

· Short weighted average life of c.3.9 years creating reinvestment opportunities

· 57% floating rate investments, capturing short-term rate rises and reducing interest rate sensitivity

· Diversified portfolio invested in highly stable and defensive asset class

· Highly defensive sub sectors that provide essential services with high barriers to entry

· No single investment accounts for more than 3.9% of NAV

· Weighted average equity cushion of 34%

· Increased dividend target with substantially strengthened cash cover

· Dividends per Ordinary Share of 3.125p (30 September 2021: 3.125p)

· Strengthened dividend cover from 1.06x to 1.40x

· Target annual dividend per share increased to 6.875p p.a. with immediate effect

· ESG is core to our investment strategy

· Regular TCFD disclosures are published

· ESG score fell slightly due to the impact of valuation changes

· Ongoing disposal of lower-scoring assets in favour of opportunities that better align with ESG policy

· Attractive pipeline of investment opportunities, focused on credit quality

· Senior and mezzanine debt opportunities

· Defensive sectors, or borrowers with a high degree of contractual or predictable income

· Operational projects

he NAV per share for SEQI, the specialist investor in economic infrastructure debt, increased to 93.71 pence per share from the prior month's NAV per share of 93.25 pence per share, representing an increase of 0.46 pence per share.

he Directors of the Company have declared that an interim dividend of 1.71875p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 31 December 2022:

The Company announces that, in accordance with the terms of the Investment Advisory Agreement between the Company and Sequoia Investment Management Company Limited (the "Investment Adviser"), the Investment Adviser has acquired 334,733 ordinary shares in the capital of the Company ("Ordinary Shares") at a price of 87.65 pence per Ordinary Share, in relation to fees payable for the three-month period ended 31 December 2022. The Ordinary Shares have been purchased pursuant to the Investment Advisory Agreement ("IAA"), details of which were disclosed in the prospectus published by the Company on 10 February 2020.

Following the purchase, the Investment Adviser has an interest in 4,436,464 Ordinary Shares, representing 0.25% of the Company's issued Ordinary Shares.

The NAV per share for SEQI, the specialist investor in economic infrastructure debt, decreased to 93.10 pence per share from the prior month's NAV per share of 93.55 pence per share, representing a decrease of 0.45 pence per share. A full attribution of the changes in the NAV per share is as follows:

he Directors of the Company have declared that an interim dividend of 1.71875p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 31 March 2023: