What's New In Investments, Funds? - CVC

Editorial Staff

27 April 2021

CVC
has increased its dividend target and cut the management fee.

The closed-end entity is boosting its dividend to five pence per sterling share/five cents per euro share for the next 12 months. The revised policy reflects a yield of about 5 per cent based on the current prices of both the company’s sterling and euro shares.

The management fee has been cut to an annual rate of 0.9 per cent of net asset value.

The changed distribution policy reflects the company’s “strong performance and growth opportunity present across European corporate credit,” CVC said.

CCPEOL is focused on protecting capital and tries to generate high cash income via a stable and attractive dividend, as well as offering the potential for capital appreciation. The investment company is listed on the London Stock Exchange.

“We continue to see significant opportunity across the spectrum of European corporate credit and our flexible investment strategy allows us to rotate the portfolio to capture the most attractive risk-adjusted returns. During Q1, this has enabled us to deploy over €70 million ($84.6 million) in opportunistic credit investments, which should continue to generate both income and capital upside in the near and medium term,” Pieter Staelens, portfolio manager at CVC Credit Partners Investment Management Limited, Investment Vehicle Manager, said.