RCS - Tetragon Financial - Edison issues review on Tetragon Financial Group

Tetragon FinancialAnnouncement

19/04/2023 07:15

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RNS Number : 6435W  Tetragon Financial Group Limited  19 April 2023

London, UK, 19 April 2023

 

Edison issues review on Tetragon Financial Group (TFG)

Tetragon Financial Group (Tetragon) published its annual results on 3 March,
posting a 1.0% net asset value (NAV) per share total return (TR) in US dollar
terms in FY22. In last year's adverse environment, Tetragon outperformed
public equity markets (the MSCI AC World index was down 18%), despite results
being below its annual target (ROE of 10-15%). It is continuing distributions
to shareholders through NAV-accretive share buybacks (US$72m in 2022) as well
as cash dividends (US$24m in 2022), with a current dividend yield of 4.3%.

 

TFG Asset Management was Tetragon's largest value driver in 2022 (adding 4.4pp
to Tetragon's NAV development) for the sixth consecutive year and remains its
largest holding, representing 48% of NAV at end-February 2023. In 2022
Tetragon's investments in CLOs and private equity (PE) also performed well
(1.7pp and 1.6pp contribution to NAV, respectively), which was mostly offset
by its exposure to publicly traded biotech and tech stocks. Tetragon continues
the expansion of TFG Asset Management, investing in both the asset managers
and the funds managed by them and, as at end-December 2022, effectively 85% of
Tetragon's portfolio was either invested in or managed by TFG Asset
Management. In 2022, Tetragon invested US$383m (or 13% of opening NAV),
tapping into its revolving credit facility (US$115m drawn at end-December 2022
of US$400m available). At end-February 2023, net gearing was 7%, while
historically Tetragon has retained a significant part of its portfolio in
cash.

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