30 April 2015
TFG had a strong Q1 2015 with an annualised Return on Equity (“RoE”) of 16.8%, ahead of the company’s over the cycle target of 10-15% per annum.
Performance was positive for the quarter for both the balance sheet (asset returns) and TFG Asset Management or “TFG AM” (operating income) with net economic income before tax for the former of $73.7 million and EBITDA equivalent for the latter of $18.8 million.
The investment portfolio returns had a strong contribution for the quarter from investments held directly on the balance sheet. This was particularly pleasing given the performance in Q4 2014 in this part of the business. In addition, the Company had some notable profits and return of cash from GreenOak Real Estate’s real estate investments in the quarter.
On the operating, TFG AM, side of the business, the EBITDA equivalent for TFG AM grew to $18.8 million in Q1 (against $6.3 million in Q1 last year), helped by the addition of Equitix Holdings Limited (“Equitix”) (the acquisition completed on 2 February 2015), plus positive performance from the other businesses that make up TFG AM.
There were good positive asset inflows across TFG AM during Q1 2015, with total Assets Under Management (“AUM”) stand-ing at approximately $13.8 billion at 31 March 2015.
This is up from $11.1 billion at year end excluding Equitix.
The first quarter dividend was declared at 15.75 cents per share, giving 12 months’ rolling dividend growth of 7.8%.
TFG is considering seeking admission for TFG’s shares to trade on the Specialist Fund Market of the London Stock Exchange.
TFG believes that the principal benefit of having this additional trading platform should be improved liquidity through access to a broader investor base and expanded analyst coverage. TFG would maintain its listing on Euronext in Amsterdam, a regulated market of Euronext Amsterdam N.V. (“Euronext Amsterdam”). As is the case for Euronext Amsterdam, the Specialist Fund Market is a regulated market for the purposes of the markets in Financial Instruments Directive. There can be no assurance that TFG will decide to go ahead and seek admission or that it will be approved. Further details will be provided in due course.