RM Secured Direct Lending PLC (LON:RMDL) said its net asset value (NAV) per share at the end of June was 97.85p.
The investment trust, which specialises in secured debt investments, said the end-June NAV was down slightly from 99.14p at the end of May but was 0.34 points higher than the end of May (after the dividend payment made during the month is included).
Over the second quarter, RMDL achieved a NAV total return of 0.34%, which takes the NAV total return for the first half of 2018 to 2.95%.
Given the pipeline transactions being processed the investment manager is currently confident that the full-year target dividend of 6.5p is achievable.
The company said the money raised from the issue in March of zero dividend preference shares has been fully deployed along with 87% of the proceeds from the issue of the C shares in early April.
The capital invested has increased to £106.8mln across 30 investments with the proportion of investments in senior secured debt increasing from 69% to 74%. Floating rate investments are up from 53% to 54%, which is in line with RMDL’s target of reducing fixed rate exposures where possible.
The company said global equity markets had become “more challenging” during the first half of the year while trade war fears and “the rise of populism” within Europe weakened credit markets.
Throw in a bit of US dollar strength and the effect on the company during the second quarter was weaker investor sentiment resulting in some slight “mark to market” losses in the liquid (i.e. the easily traded) part of the trust’s existing portfolio.
“The remaining six months of 2018 will likely see the continued negative effect on global growth from trade wars, coupled with the impact of ongoing Brexit discussions. Sovereign risk within the Eurozone is also likely to remain an ongoing factor,” RMDL predicted.
“However, further market weakness also provides opportunities as pricing is expected to become more favourable throughout the second half of the year, as the cost of funding across the market has increased and is likely to remain elevated,” it added.
Shares in RMDL were unchanged at 101.5p.
The company also announced a conversion ratio for the recently issued C shares, with each C share converting into 0.99822092 ordinary shares.