SECD INCO Secured Income Fund Plc
Factsheet│31 May 2021
Key Benefits
- Diversified exposure to SME borrowers across key markets in the UK, Europe and USA.
- Lending against business critical assets providing downside protection.
Investment Objective
The Secured Income Fund Plc is managed with the intention of realising all remaining assets in the Portfolio in a prudent manner consistent with the principles of good investment management and with a view to returning cash to Shareholders in an orderly manner.
The Company will pursue its investment objective by effecting an orderly realisation of its assets in a manner that seeks to achieve a balance between maximising the value received from those assets and making timely returns of capital to Shareholders. This process might include sales of individual assets, mainly structured as loans, or running off the Portfolio in accordance with the existing terms of the assets, or a combination of both.
Fund Information
Key facts
Market Capitalisation | £28.2m | |
Share Price | 53.50p | |
NAV | £21.5m | |
NAV per share | 40.84p | |
Premium / (Discount) | 31.0% | |
Gearing | None | |
Management | 0.75% | |
Fees2 | ||
Ongoing charges | 2.0% | |
Ticker | SSIF:LN | |
ISIN | GB00BYMK5S87 |
Share Price Performance
Since inception
120 | |||||
100 | |||||
80 | |||||
60 | |||||
40 | |||||
20 | |||||
0 | |||||
9/2015 | 9/2016 | 9/2017 | 9/2018 | 9/2019 | 9/2020 |
Share Price | NAV |
Performance¹
Total return, cum income, %
To 31/05/2021 | SI | 3y | 1y | 6m |
Share price | 2.62 | 2.77 | 11.40 | 18.54 |
NAV | -1.85 | -8.67 | -26.45 | -27.02 |
1 Annualised for periods longer than one year.
12M discrete | 31/05/2017- | 31/05/2018 - | 31/05/2019 - | 31/05/2020 - |
31/05/2018 | 31/05/2019 | 31/05/2020 | 31/05/2021 | |
Share price | 0.04 | 8.31 | -10.05 | 11.40 |
NAV | 5.29 | 6.20 | -2.47 | -26.45 |
2 As per the resolution detailed in the Circular issued on 20th August 2020, the management fee reduced to 0.75% for 12 months from 18th September 2020.
Fund Portfolio3 | Portfolio exposure (%) | Maturity breakdown (%) | ||||||
Top 10 Holdings (%) | Direct Loans | 72.9 | 0-6 months | 49.2 | 1 | |||
Direct Loan | 26.11% | (KKV originated) | ||||||
6-18 months | 6.2 | 2 | ||||||
Direct Loan | 19.94% | |||||||
Co-investment | 8.66% | Cash | 18.2 | 18-36 months | 27.8 | 3 | ||
Direct Loan | 8.18% | Co-invested and | >36 months | 16.8 | 4 | |||
Direct Loan | 3.15% | 9.0 | ||||||
Direct Loan | 3.13% | solely owned debt | ||||||
Weighted average maturity | 1.5 years | |||||||
Direct Loan | 3.03% | Peer-to-peer / | 0.0 | |||||
Direct Loan | 2.82% | |||||||
Crowdfunded | ||||||||
Direct Loan | 2.64% | Currency breakdown | ||||||
Direct Loan | 1.52% | Geographical breakdown (%) | ||||||
Total | 80.63% | |||||||
Total number of holdings | 14 | UK | 69.5 | GBP | £14,636,000 | 67.9% | ||
USD | $3,759,000 | 12.3% | ||||||
Average loan size | £1.26m | Europe | 21.4 | |||||
EUR | €4,289,000 | 19.9% | ||||||
Weighted average yield | 7.55% | |||||||
US | 9.1 | |||||||
No currency hedging used4
- Portfolio exposures are calculated as the present balance outstanding plus investment receivables less any impairment/ expected credit loss provision.
- Please note currency hedging was removed during September 2020
Dawn Kendall
CIO & Lead Fund Manager Dawn has 34 years' experience in financial services, including 25 years' experience managing fixed income portfolios at distinguished financial institutions, including in her role as Partner and Portfolio Manager at TwentyFour Asset Management, as CIO for IAM, a fund of hedge funds, and Portfolio Manager for The Codelouf Trust, a family office. Additionally, Dawn has held senior investment and management positions at Newton, Axa (Architas) and Investec Wealth. Dawn has a degree in European and English Law and an MBA.
May Investment Highlights
During May, the Company made a distribution of £3,686,224 to Shareholders via an issue and redemption of B Shares. The capital proceeds were equivalent to 7 pence per Ordinary Share.
The Manager has carried out a detailed review of the Film Production Financing portfolio and has presented a number of findings to the Board. There have been delays in recouping the contracted cash flows in the form of tax credits, receipts and presold income. For the Future Sales element, previously anticipated large upfront payments are now considered highly unlikely to be received. Finally, given the impact of the pandemic on the film industry, there has been a need to shift to longer tail earn outs on the loans. As a result of these findings, we have revised down our advised valuations of these loans.
There has been a sale of business assets within the US Healthcare Services company, which has rendered the business economically unviable. We are in the process of reviewing the available options in order to ensure the best possible outcome for shareholders.
There is one performing loan remaining with our final peer to peer lending platform, which is due to mature in August 2021.
Please note, we no longer hedge our foreign exchange exposures and provide details of the USD and EUR allocations in the data provided in the factsheet to allow shareholders to consider their own hedging, if they so required.
Disclaimer:
Secured Income Fund plc (the "Company") is an investment company, incorporated in England with registered number 09682883, whose shares have been admitted to trading on the Specialist Fund Segment of the Main Market of London Stock Exchange plc. The Company is an alternative investment fund for the purposes of the Alternative Investment Fund Managers Directive. The Company has appointed Kvika Securities Limited ("KSL") as its alternative investment fund manager, and KKV Investment Management Limited ("KKV") has been appointed as the Company's portfolio manager. This Factsheet is provided for information purposes only and should not be relied on by any person in making an investment decision. The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back less than the original amount invested. Past performance is not a reliable indicator of future performance and investors may not get back the original amount invested. There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. Whilst it is the intention to achieve the investment objectives of the Company, there can be no assurance that the objectives will be met. Any forecast, projection or target is indicative only and not guaranteed in any way. All reasonable endeavours have been used to ensure the accuracy of information contained in this Factsheet, but there is no guarantee as to the completeness or accuracy of such content. This material should not be considered as advice or an investment recommendation. No warranty of accuracy is given. For an overview of the terms of investment, risks and costs and charges, please refer to the Annual Report and Key Information Document from which the risk indicator is taken. If you are in any doubt as to the suitability of the Company for your investment needs, please seek investment advice. This Factsheet is a financial promotion and is not intended to be investment advice. It is issued and approved solely for the purpose of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended) by KSL which is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Conduct Authority's register under registered number 538806. KSL is a private limited company incorporated in England (registered no. 06801718) with its registered office at 25 Upper Brook Street, London, England, W1K 7QD. KKV is a private limited company incorporated in England (registered no. 12475228) with its registered office at 25 Upper Brook Street, London, England, W1K 7QD. Copyright © (2021) Kvika Securities Ltd. All rights reserved.
KKV Investment Managmeent
25 Upper Brook Street
Mayfair
London W1K 7QD
United Kingdom
For more information, please contact:
investor.communications@kkvim.com
Company Broker | FinnCap Ltd | One Bartholomew Close, London, EC1A 7BL William Marle | WMarle@finncap.com | +44 (0) 20 7220 0557
Mark Whitfeld | MWhitfeld@finncap.com | +44 (0) 20 3772 4697
Secured Income Fund plc
Closed-ended Investment Company | Listing: London Stock Exchange Main Market
Specialist Segment | Domicile: UK
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Secured Income Fund plc published this content on 21 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 15:57:08 UTC.