Swiss fund of funds announces dividend policy

Fund of hedge funds Altin has announced it will start paying dividends and distributing a further portion of its performance to shareholders, giving yield-starved investors badly-needed income.

The Swiss- and London-listed portfolio has previously not paid a dividend.

But its board has announced it would start distributing 4% of net asset value as income, plus a further 20% of annual performance, from share premium reserves, once the NAV has risen by 4%.

Altin’s income stream will equate to a return of almost 6%, given its share price is now at $45.50.

By mid-November Altin’s NAV was about where it had been a year earlier, and mildly down on where it was in January, according to statistics from RBS.

Altin’s announcement about dividends comes at a particularly difficult time for Europe’s income-focused investors, facing sovereign debt either too risky, or too low-yielding, for many to buy. The dilemma was characterised by the partial ‘buyers’ strike’ even for German debt yesterday.

It seems some institutional investors have given up on European fixed income.

Ben Olmstead, vice president product innovation at analysts eVestment Alliance, said searches for the class, from core and intermediate-duration to long-duration mandates, were recently in the bottom decile of all domestic asset class searches ranked by interest.

 

 

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