FTSE-250 listed closed-ended investment company Apax Global Alpha is to pay an interim dividend of 4.87p per share, representing an increase of 3.8% from the comparable period last year.
While the Net Asset Value (NAV) for the company declined in the half-year by 0.5%, it rebounded strongly in the second half of the year as the value of some of its technology-focused funds reached valuations higher than those experienced during the end of last year.
As we look into an uncertain economic future, we draw confidence from the robustness our portfolio has so far shown during the crisis and believe that the sector -focused approach provides long-term value generation opportunities and an attractive yield to our shareholders.Chairman, Apax Global Alpha
As its funds are overweight in tech, digital and telco (44%) – it has weathered the pandemic storm well.
With one eye on the favourable dynamics for the future – it is expecting its private equity portfolio in particular will emerge a winner. Drivers such as automation, digitisation and demand for software as a service are expected to drive up the value of the companies that it has invested in.
Its dividend policy of distributing 5% of the NAV to shareholders each year remains unchanged – reassuring for income investors.
Apax Global Alpha’s share price edged up by nearly 5% in early trading based on the update.