Latest news with #NAV
Local Norway
4 days ago
- Business
- Local Norway
KEY POINTS: How Norwegian parties' election pledges could affect foreigners
CONSERVATIVE PARTY Economy and Taxation If it wins, The Conservative Party is pledging a broad tax-cutting agenda: Income tax reductions for all Abolish wealth tax on "working capital", and a higher threshold for wealth tax over all. Repeal of stricter 2024 exit tax rules. Under the proposed changes, foreigners will only be taxed on Norwegian-earned capital gains once realised - not upon leaving the country. Work permits and Labour Migration The Conservative Party is positive towards skilled labour migration and is promising: A fast-track permit scheme for highly skilled workers, modelled on Denmark' recognition of foreign qualifications and the potential for a joint Nordic recognition scheme. Allowing skilled workers to get permits even without formal qualifications. Citizenship, residency and family reunification The party takes a tougher line on foreigners who want to stay in Norway, pledging: An increase the minimum level of spoken Norwegian required for citizenship from B1 to B2. Applicants will be ineligible for citizenship if they have debts to the public sector, have missed tax payments, or have been required to repay public benefits. Dual citizens could lose Norwegian citizenship if found guilty of serious crimes. Permanent residence will require four years of financial self-sufficiency, no public debt, and verified ID. Tighter rules for family reunion, with a requirement that relatives who come to Norway need learn Norwegian and that their relatives in Norway show they are able to support them Advertisement Labour Party Economy and taxation While the other two big parties want to cut tax, the Labour Party is pledging to keep tax levels the same while expanding the state involvement in the economy. It is pledging: Keep the combined taxes and fees paid by people and companies in Norway at the same level as today. Tighten regulations on the marketing consumer loans and credit cards, unreasonably high interest rates on consumer loans and 262 limiting earnings from debt collection Work permits and Labour Migration The Labour Party wants to help foreigners in Norway find work by: Faster skills assessment for newly arrived immigrants, including those without documentation, to be carried out by the Norwegian Labour and Welfare Administration (NAV) Expanded language training, including better access for migrant workers and their families. Improved NAV procedures to help immigrants find work faster. Make Norway "a more attractive country for international researchers and students". Citizenship, residency and family reunion Labour has only modest plans for this area, pledging: A review of citizenship regulations, including the rules for and practice of revoking citizenship. Shorter waitinng times for family reunification application Work to reduce the processing time and waiting time for applications for family reunification Stronger self-sufficiency requirements for sponsoring family members. Introduction of an "integration contract" obligating both parties to complete language and cultural training, with penalties for non-compliance. Advertisement PROGRESS PARTY Economy and taxation The Progress Party is fighting this election on a promise of aggressive tax cuts: Reduced tax rates for all income groups. Abolish Norway's wealth tax (currently 1.1 percent on any assets above a threshold of 1.7 million kroner) Cut VAT on food from 15 percent to 7.5 percent Abolish property tax ( eiendomsskatt ). This is currently levied by municipalities and can be up to 0.4 percent of the taxable value of the property. Cap electricity prices at 50 øre per kWh . Slash road taxes, fuel taxes, and abolish road tolls. Citizenship and Permanent Residency While the Progress Party is not campaigning on an anti-immigration platform, its policies remain the most radical on citizenship, permanent residency and immigration. The Progress Party is proposing the most far-reaching changes to citizenship and residency requirements, pledging to: Extend the required residency period to gain citizenship to 10 years (currently 7). It will be five years for spouses of Norwegians. Raise the bar for permanent residence to 8 years (currently 5). Impose tougher language and self-sufficiency tests. Require new citizens to swear allegiance at a mandatory ceremony. Strip dual citizens of citizenship if convicted of terrorism, gang crime or other serious offences. Immigration and integration Asylum centers to be established in Africa and Asia, with asylum seekers sent out while their cases are processed. A package "of significantly greater value", to incentivise immigrants to return to their countries of origin Conditional unemployment benefits tied to completion of language, civics, and job-training courses Language test for four-year-olds to target early intervention in immigrant-heavy areas. Moratorium on refugee resettlement in areas where non-Western immigrants exceed 15 percent of the population. Refugees only allowed to settle in municipalities with proven quality services and job markets. Mandatory deportation of any foreigner sentenced to more than 3 months' prison. Ban on religious garments in public authority roles, hijabs in primary schools, and face coverings in public spaces and schools. End free legal aid for immigration cases.
Yahoo
31-05-2025
- Business
- Yahoo
TriplePoint Venture Growth BDC Corp. (TPVG): A Bear Case Theory
We came across a bearish thesis on TriplePoint Venture Growth BDC Corp. (TPVG) on Substack by Edwin Dorsey. In this article, we will summarize the bears' thesis on TPVG. TriplePoint Venture Growth BDC Corp. (TPVG)'s share was trading at $6.71 as of 23rd May 2025. TPVG's trailing and forward P/E were 7.22 and 5.61 respectively according to Yahoo Finance. A financial portfolio manager looking at data on a monitor while managing assets. TriplePoint Venture Growth BDC (NYSE: TPVG) has shown a consistent decline in net asset value (NAV), raising concerns about the sustainability of its business model. Since Q4 2021, NAV has dropped from $14.01 to $8.61 by Q4 2024, reflecting a significant erosion in asset quality. This ongoing trend suggests structural issues within its lending practices, particularly its continued exposure to financially unstable, venture-stage companies. While the firm has attempted to rotate out of distressed loans, the newer additions to the portfolio appear to carry similar levels of risk, offering little improvement in overall credit quality. The company remains heavily reliant on startups that are either operationally challenged or lack the financial strength to meet their obligations, making recovery rates uncertain and potentially leading to further write-downs. Despite expectations of stabilization, there has been no meaningful progress in reversing the decline in NAV or improving portfolio health. Dividend sustainability is also in question, given the weakening income profile and increasing pressure on earnings. Without clear signs of a strategic shift or a credible path to portfolio improvement, TriplePoint's long-term outlook remains concerning. The persistent deterioration in NAV, limited visibility into credit recovery, and continued exposure to weak borrowers all suggest a structurally fragile business. As a result, the stock may continue to underperform, and the risk/reward profile has become increasingly unfavorable for long-term investors. For a deeper look into another stock in the Asset Management industry, be sure to check out our article on BlackRock, Inc. (BLK), wherein we summarized a bullish thesis by Kroker Equity Research on Substack. TriplePoint Venture Growth BDC Corp. (TPVG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held TPVG at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of TPVG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TPVG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES Q1 2025 RESULTS
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ WINNIPEG, MB, May 22, 2025 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: reported financial results for the three months ended March 31, 2025. This press release should be read in conjunction with the REIT's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("Q1 2025 MD&A") for the three months ended March 31, 2025, which are available on the REIT's website at and at "We are pleased with the ongoing positive operating results we achieved throughout the quarter. Same Property Revenue from Investment Properties increased by 3.73% and average rental rates per suite increased by 4.79%, both over Q1 2024. Throughout 2025 we will see the impact of the Manitoba government removing a property tax rebate that had been in place since 2021. Although this will impact how certain comparisons to 2024 results are represented, we are proud of the positive operations we achieved in the quarter on the items within our control." commented Mr. William Martens, Chief Executive Officer of the REIT. Q1 2025 Quarterly Highlights Same Property Revenue from Investment Properties increased by 3.73% in the three months ended March 31, 2025 compared to same period 2024 Reported Net Asset Value per Unit ("NAV") of $2.39 at March 31, 2025 compared to $2.37 at December 31, 2024 Average occupancy rate of 98.14% reported for the three months ended March 31, 2025 compared to 99.01% in the same period 2024 Weighted average mortgage term to maturity of over 5 years Operations SummaryThree months ended March 31 Portfolio Operation Information 2025 2024 Number of properties 4 4 Number of suites 516 516 Average occupancy ate 98.14 % 99.01 % Average rental rate to date $1,727 $1,648 Three months ended March 31 Reconciliation of Same Property NOI1 to IFRS 2025 2024 Revenue from investment properties $ 2,635,142 $ 2,540,498 Expenses: Property operating expenses 694,292 653,557 Realty taxes 317,432 230,375 Total property operating expenses 1,011,724 883,932 Same Property NOI1 $ 1,623,418 $ 1,656,566 1 Same Property Portfolio consists of 4 multi-residential properties owned by the REIT for comparable periods in Q1 2025 and Q1 2024 – See "Notice with respect to Non-IFRS Measures" of Debt-to-Gross Book Value ratioAt March 31, 2025At December 31, 2024 Total interest-bearing debt $ 101,347,592 $ 101,678,601 Total assets on balance sheet150,132,730150,093,432 Debt-to-Gross Book Value ratio67.51 %67.74 %Reconciliation of Debt Service Coverage ratioThree months endedMarch 31, 2025Year endedDecember 31, 2024 Net Operating Income for the period ended $ 1,623,418 $ 6,875,434 Mortgage payments for the period ended 1,244,1304,959,081 Debt Service Coverage ratio1.301.39 Weighted average term to maturity on fixed rate debt60.57 months63.56 months Weighted average interest rate on fixed debt3.09 %3.09 % Financial Summary The REIT generated FFO and AFFO per Unit of $0.0254 and $0.0234, respectively, during the three months ended March 31, 2025. FFO and AFFO are defined in "Non-IFRS Measures" in the March 31, 2025 MD&A and below under "Notice with respect to Non-IFRS Measures". Reconciliation of Net Income and Comprehensive Income to FFO and AFFO Three months ended March 31 2025 2024 Revenue from investment properties $ 2,635,142 $ 2,540,498 Property operating expenses (694,292) (653,557) Realty taxes (317,432) (230,375) Net Operating Income 1,623,418 1,656,566 NOI Margin 61.61 % 65.21 % General and administrative (224,660) (189,091) Interest income 33,920 31,175 Finance costs (978,909) (1,009,371) Fair value (loss) gain on: Investment properties (38,785) 128,630 Unit-based compensation (18,454) 115 Exchangeable Units (1,148,795) - Net (loss) income and comprehensive (loss) income $ (752,265) $ 618,024 Three months ended March 31 Reconciliation of FFO 2025 2024 Net (loss) income and comprehensive (loss) income (752,265) 618,024 Distributions on Exchangeable Units 40,730 41,467 Fair value loss (gain) on properties 38,785 (128,630) Fair value loss (gain) on unit-based compensation 18,454 (115) Fair value loss on Exchangeable Units 1,148,795 - FFO 494,499 530,746 Weighted average number of Units 19,498,838 19,498,838 FFO/unit $ 0.0254 $ 0.0272Reconciliation of AFFO FFO $ 494,499 $ 530,746 Capital expenditures (38,785) (14,348) Leasing costs - (2,022) AFFO 455,714 514,376 Weighted average number of Units 19,498,838 19,498,838 AFFO/unit $ 0.0234 $ 0.0264 AFFO payout ratio 16.69 % 14.50 % NAV and NAV per Unit Reconciliation At March 31, 2025 At December 31, 2024 Unitholders' Equity $39,113,552 $39,901,132 Exchangeable Units 7,937,133 6,788,338 NAV 47,050,685 46,689,470 Trust Units 9,055,242 9,055,242 Exchangeable Units 10,443,596 10,443,596 Deferred Units 170,206 169,608 Total Units oustanding 19,669,044 19,668,446 NAV per unit $2.39 $2.37 The overall increase in NAV from $2.37 at December 31, 2024 to $2.39 at March 31, 2025, was primarily due to net operating income less finance costs and general and administrative expenses exceeding distributions. Outlook Management is focused on growing the portfolio and Unitholder value through increasing rental rates where the market allows, future acquisition opportunities that will increase the overall size and performance of the REIT, as well as maintaining a manageable debt structure. The current debt structure of the REIT is all at fixed rates with an average remaining mortgage term of over five years. The majority of the REIT's debt is CMHC insured. Management believes the organic growth in NAV due to paydown of debt over the mortgage terms is a positive outcome of the higher leveraged position as well as lowering the REIT's debt to GBV ratio and thereby increasing the NAV per Unit over time. Management anticipates that demand for rental housing will remain due to the affordability gap in rental vs. home ownership and the potential tariffs with the United States. As interest rates remain at elevated levels and costs of construction remain relatively high, the increased costs of home ownership maintains the affordability gap. Any increase in the portfolio's operating costs due to inflation may be offset by increases in rental rates, where the market allows, as 56 percent of the portfolio at March 31, 2025 is not under rent control or restrictive financing agreements. About Marwest Apartment Real Estate Investment Trust The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide holders of Units with the opportunity to invest in the Canadian multi-family rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada. Forward-looking Statements The information in this news release includes certain information and statements about management's views of future events, expectations, plans and prospects that constitute forward‐looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward‐looking statements. A number of factors could cause actual results to differ materially from these forward‐looking statements, including the risks described in the REIT's latest annual information form and management's discussion and analysis. The payment of cash distributions, and the amount of such cash distributions, will be dependent upon a number of factors, including but not limited to the financial performance, financial condition and financial requirements of the REIT. Although management of the REIT believes that the expectations reflected in forward‐looking statements are reasonable, it can give no assurances that the expectations of any forward‐looking statements will prove to be correct. Except as required by law, the REIT disclaims any intention and assumes no obligation to update or revise any forward‐looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward‐looking statements or otherwise. Notice with respect to Non-IFRS Measures Disclosure The REIT's financial statements are prepared in accordance with IFRS. In addition to IFRS measures, this news release and the REIT's Q1 2025 MD&A disclose certain non-IFRS financial measures that are commonly used by Canadian real estate investment trusts as an indicator of performance. Non-IFRS measures and ratios include the following: Net Operating Income ("NOI") The Trust calculates net operating income as revenue less property operating expenses such as utilities, repairs and maintenance and realty taxes. Charges for interest or other expenses not specific to the day‑to‑day operations of the Trust's properties are not included. The Trust regards NOI as an important measure of the income generated by income-producing properties and is used by management in evaluating the performance of the Trust's properties. NOI is also a key input in determining the value of the Trust's properties. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Q1 2025 MD&A Funds from Operations ("FFO") The Trust calculates FFO substantially in accordance with the guidelines set out in the white paper titled "White Paper on Funds from Operations & Adjusted Funds from Operations for IFRS" by the Real Property Association of Canada ("REALpac") as revised in January 2022. FFO is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of the investment properties, effects of puttable instruments classified as financial liabilities and changes in fair value of financial instruments and derivatives. FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The Trust regards FFO as a key measure of operating performance. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Q1 2025 MD&A Adjusted Funds from Operations ("AFFO") The Trust calculates AFFO substantially in accordance with the guidelines set out in the white paper titled "White Paper on Funds from Operations & Adjusted Funds from Operations for IFRS" by REALpac as revised in January 2022. AFFO is defined as FFO adjusted for items such as maintenance capital expenditures and straight‑line rental revenue differences. AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The Trust regards AFFO as a key measure of operating performance. The Trust also uses AFFO in assessing its capacity to make distributions. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Q1 2025 MD&A The following other non‑IFRS measures are defined as follows: "FFO per unit" is calculated as FFO divided by the weighted average number of Trust Units and Exchangeable Units of the Partnership outstanding over the period. "AFFO per unit" is calculated as AFFO divided by the weighted average number of Trust Units and Exchangeable Units of the Partnership outstanding over the period. "AFFO Payout Ratio" is the proportion of the total distributions on Trust Units and Exchangeable Units of the Partnership to AFFO per Unit. "Net Asset Value" is calculated as the sum of unitholders' equity and Exchangeable Units "Net Asset Value per Unit" or "NAV per Unit" is calculated as the sum of unitholders' equity and Exchangeable Units divided by the sum of Trust Units, Exchangeable Units and Deferred Units outstanding at the end of the period. "Debt‑to‑Gross Book Value ratio" is calculated by dividing total interest‑bearing debt consisting of mortgages by total assets and is used as the REIT's primary measure of its leverage. "Debt Service Coverage ratio" is the ratio of NOI to total debt service consisting of interest expenses recorded as finance costs and principal payments on mortgages. "Stabilized net operating income" is the estimated 12-month net operating income that a property could generate at full occupancy, less a vacancy rate and stable operating expenses. "Average occupancy rate" is defined as the ratio of occupied suites to the total suites in the portfolio for the period. "Same Property NOI" is defined as Net Operating Income from properties owned by the REIT throughout comparative periods, which removes the impact of situations that result in the comparative period to be less meaningful, such as acquisitions, or properties going through a lease-up period. Management believes that these measures are helpful to investors because, while not necessarily calculated comparably among issuers, they are widely recognized measures of the REIT's performance and tend to provide a relevant basis for comparison among real estate entities. These non-IFRS financial measures are not defined under IFRS and are not intended to represent financial performance, financial position or cash flows for the period and should not be viewed as an alternative to net income, cash flow from operations or other measures of financial performance calculated in accordance with IFRS. The above measures are not standardized under the financial reporting framework used to prepare the financial statements of the REIT. Readers should be further cautioned that the above measures as calculated by the REIT may not be comparable to similar measures presented by other issuers. For further information, refer to the sections entitled "Non-IFRS measures" and "Financial Operations and Results" in the REIT's Q1 2025 MD&A, which is incorporated by reference herein, for further information (available on SEDAR+ at or the REIT's website Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release. The Units are not registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the REIT in the United States or in any other jurisdiction. SOURCE Marwest Apartment Real Estate Investment Trust View original content to download multimedia: Sign in to access your portfolio
Associated Press
12-05-2025
- Business
- Associated Press
Agronomics Limited Announces Net Asset Value Calculation as at 31 March 2025
DOUGLAS, ISLE OF MAN / ACCESS Newswire / May 12, 2025 / Agronomics Limited (AIM:ANIC), a leading listed company in the field of clean food, announces that its unaudited Net Asset Value per share('NAV') calculation as at closing on 31 March 2025 was 14.81 pence per share, a 0.80% decrease from 14.93 pence per share at 31 December 2024. Net Assets stand at £149 million, including investments of £146 million and uninvested cash and short-term deposits of £4 million. The share price of 7.15 pence at 31 March 2025 represents a discount of 52% to the NAV per share on the same date. The average discount to NAV per share over the last 12-month period was 64%. Under IFRS, the Company's unquoted investments are generally carried at cost or the most recent priced funding round. The Board notes the c £1.2 million decline in the Company's NAV during the quarter which relates primarily to the following: During the period, no fees were payable or accrued in accordance with the Shellbay Investments Limited Agreement. Shellbay's fees are solely payable when there is an annual increase in the NAV; further details are included in the 2024 annual report. Investment Portfolio review During the 3-month period to 31 March 2025, the following portfolio companies completed fund raising activities: In addition, the following key milestone was achieved by a portfolio company during the 3-month period: Jim Mellon, Executive Chair of Agronomics, commented: In the first quarter of the year, the Agronomics portfolio has made fantastic commercial and operational progress. Liberation Labs, off the back of the recent US$ 50.5 million fundraise in January 2025, announced an important manufacturing partnership with Dutch ingredients company Vivici to produce its Vivitein™ ingredient at scale for the US nutritional market. Meanwhile, Blue Nalu has expanded its strategic partnership with Nomad Foods, Europe's leading frozen food company, to support the commercialisation of its cell-cultivated seafood products in the UK and across Europe. More and more of the portfolio continues to make progress toward achieving regulatory approval for the sale of products. The latest being All G Foods, which has received regulatory approval in China, and Onego, BlueNalu and Meatable which are expecting to receive regulatory approval by the end of the year. The progress we have achieved during a challenging period for much of the clean food industry and a volatile global economic landscape pays testament to the quality of our portfolio and our ability to identify future category leaders. It also demonstrates how food companies are prioritising investment in scalable and sustainable clean food solutions. We expect this level of progress to continue into the second half of the year, with several further funding rounds set to close and regulatory approvals on the horizon. The quoted investments within the portfolio are valued under IFRS at bid price. This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain. About Agronomics Agronomics is a leading London-listed company focusing on investment opportunities within the field of clean food. The Company has established a portfolio of over 20 companies in this rapidly advancing sector. It seeks to invest in companies owning technologies with defensible intellectual property that offer new ways of producing food and materials with a focus on products historically derived from animals. These technologies are driving a major disruption in agriculture, offering solutions to improve sustainability, as well as addressing human health, animal welfare and environmental damage. This disruption will decouple supply chains from the environment and animals and improve food security for the world's expanding population. A full list of Agronomics' portfolio companies is available at For further information please contact: Nominated Adviser Statement Beaumont Cornish Limited ('Beaumont Cornish'), is the Company's Nominated Adviser and is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in the announcement or any matter referred to in it. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit SOURCE: Agronomics Limited press release
Forbes
08-05-2025
- Business
- Forbes
This 11% Dividend Is Ideal For Retirement Income Investors
Serious senior accountant attentively looking at laptop screen, examines the budget, documents of ... More the company, on the living room, holding laptop on lap, working online, prepares an annual report Vanilla investors fixate on price. We contrarians, focusing on retirement income, know better. It's all about the NAV. Net asset value, baby. Price is what people pay at a given moment. But people panic. Many like to buy high—and sell low! NAV, on the other hand, is what something is worth at that same moment. Price and NAV can become disconnected, especially during emotional market moments. When this happens, it is often a buying opportunity for careful contrarians like us. Let's take a pop quiz. Think about the funds you hold in your portfolio. What was your top performing NAV for the month of April? I'll share mine, with respect to our Contrarian Income Report portfolio. FS Credit Opportunities (FSCO) wins the top award for CIR with an unwavering NAV during April, the most volatile month since March 2020! Dark it was. April 2025 began with a 12% drawdown in the S&P 500. 'America's ticker'—the SPDR S&P 500 ETF Trust (SPY)—took a licking! SPY's NAV fell by an equal amount as its price—nearly 12% in 8 days—because investors dumped shares in the 503 stocks it owns. SPY's NAV is 'marked to market' constantly as its underlying shares trade. This is the drawback of an NAV that is attached to other publicly traded positions. If the contents of the basket plummet in a panic, so does the fund's NAV wrapper: SPY Total Return FSCO does not have this problem because its investments are in the calculated, relatively calm private markets rather than the manic, often-panicking public. The team extends private market loans, where FS can dictate favorable terms that secure its NAV. Think of FSCO as a BDC (business development company) in a CEF wrapper. But it's better than most BDCs. FSCO uses lower leverage and has a lower cost structure than the sector-at-large. Case in point, VanEck BDC Income ETF (BIZD) saw its NAV drop nearly 14% in the first eight days of April! But while SPY and BIZD were in NAV freefalls, FSCO's portfolio held up incredibly well. It didn't budge! FSCO Total Return With such an impressive pedigree, you might guess that FSCO trades at a premium to its NAV because every income investor on the planet would want in. The fund pays an 11% payout in monthly installments, and its NAV never moves. What's not to like? Amazingly, though, FSCO has traded at a discount since we first covered it here at Contrarian Outlook. In fact, when we added it to our Contrarian Income Report portfolio in October, it offered a 10% discount. Which meant this fine fund was a first-class find—available for just 90 cents on the dollar! Why? The fund has been around for 10+ years but only traded publicly as a closed-end fund for the last two. CEF investors loathe newness. We want proof the income will last. So. I called Josh Blum, Head of Investor Relations for FS Global Credit, to discuss. How is this incredible performance even possible during the most volatile month in recent memory? 'The NAV resilience reflects the focus on senior secured and structured credit strategies, which tend to exhibit lower correlation to the broader equity market movements,' Josh explained to me. Portfolio manager Andrew Beckman and his team are skilled at 'layering' credit, or structuring loans with different levels of protection, so that FSCO is positioned to get paid back first even if credit conditions worsen. Josh went on to explain that Beckman also deploys hedges from time to time to smooth out volatility. 'Strong underwriting fundamentals and limited mark-to-market exposure further supported the NAV stability,' Josh continued. His key point here is that FSCO is extending high-quality loans that are not subject to the daily whims of the public markets. These are private credit vehicles held by sophisticated investors who don't care if the S&P 500 is down on a given day—they want their yield! As do we income investors. Since we added FSCO to our Contrarian Income Report portfolio in October, this fund has been a rock with no NAV movement. This has not limited our gains, though! We have enjoyed total returns of 13.1% thanks to monthly dividends and price gains from FSCO's shrinking discount window. These returns annualize to a terrific 23.4%. All looks great in the rearview mirror! But I wanted to know how conditions 'on the ground' are looking to FS Credit today. Josh elaborated: 'We remain cautious credit pickers looking for value-based opportunities. Private credit remains a very large focus, but if public markets become dislocated due to tariff-driven volatility, we will migrate to that opportunity set from time to time.' For us income investors, FSCO is a fantastic opportunity. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
