NB Global Floating Rate Income Fund NAV up, plans shares buy back

NB Global Floating Rate Income Fund said in its half year update it decided to buy back shares after they traded at a modest discount.

As at 30 June 2015 shares in the Gurnsey fund were trading at a discount of 1.65% for the US Dollar Ordinary Shares and 1.27% for the sterling ordinary shares.

“Notwithstanding the modest nature of the discount, the board considered that it was undesirable for the Company's shares to trade at much wider than a 3% discount to NAV, in normal market conditions, given the low total return environment we all currently face,” NB said in a statement.

In the past six months the company’s NAV per share rose by 0.91% and 1.07% for the US dollar ordinary share and sterling ordinary share respectively.

Total return per share was up to 2.81% from 1.23% for US dollar shares and up to 2.97% from 1.16% for sterling shares.

NB, which has 314 holdings in its portfolio, has 94.67% of its investments in US Dollar denominated assets as of 30 June 2015.

“While we continue to see a level of nervousness in the credit markets generally given concerns around the recent volatility in China and uncertainty with regards to future interest rate levels, we maintain our full year asset class return forecast of 4%‒6%,” NB said in an update.

Shares in NB were up slightly by 0.1% to 96.75p at 0828 BST.