Apax Global lifts dividend as markets recover in Q2
Apax Global Alpha
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Investment firm Apax Global Alpha reported a fall in first half net asset value (NAV), but increased its dividend as markets showed signs of recovery in the second quarter from the impact of the coronavirus pandemic.
The company on Tuesday reported a decline in NAV per share to €2.16 at June 30 from €2.24 at the end of 2019. The company declared an interim dividend of 4.87p per share, up 3.8%.
NAV total return for the six month period half year was -0.5%, recovering from a first quarter negative return of 12% on market weakness.
"Following negative returns during the first quarter of 2020 due to the immediate Covid-19 related disruptions, the investment portfolio recovered well during the second half of the reporting period," said chairman Tim Breedon on Tuesday.
Apax said the impact and recovery is differed widely between sectors, with technology proving more resilient and expected to grow over the coming years driven by underlying trends. High Street retail had been severely impacted and is recovering more slowly.
“The economic outlook remains highly uncertain. While countries have begun to rebound as they have reopened from lockdowns, levels of GDP remain well below pre-Covid levels in most economies,” the company said on Tuesday.
“The speed of recovery will depend on the evolution of the pandemic, medical interventions, policy responses, and general consumer and business confidence. The recovery is unlikely to be linear and, for most economies, economic activity may not return to pre-Covid levels until 2022.”
“With no effective vaccine yet developed, there remains the risk of a renewed upturn in cases and the need for stringent lockdown measures to be reintroduced at some point in the future.”