Guernsey-authorised closed-ended collective investment structure Alcentra European Floating Rate Income Fund has published an update for its portfolio.

The scheme reported that it had delivered a dividend of 1.52p, which it said was above the annualised target dividend increase of 5.5%.

On February 4th, it stated that the C shares that the company issued in December had been converted to ordinary shares, consequently creating 15.4m additional ordinary shares.

The company further revealed that the top five performers were all loan positions that were up between 2.0% and 4.0% over the month, benefiting from a robust underlying market.

In what it described as a reversal of last year's typical trend, the worst five performers were all high yield bond positions that were down between 2.0% and 3.0% over the month.

The high yield exposure is capped at 15% in the fund and all of the bottom five positions were less than €1.0m in size.

Alcentra invests predominantly in senior secured loans and senior secured bonds by European corporates and targets returns if 7.0%-to-10% per annum.

MF

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Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs (AEFS) share price