RM SECURED Direct Lending (RMDL) cheered investors with an above-target dividend in the first half of the year, on the back of an 18 per cent rise in the value of its loan portfolio.
The direct lending-focused investment trust paid out 3.645p per share in the first half, while its loan portfolio grew to £122m.
RMDL made nine new investments and had 48 drawdowns on existing investments over the period.
Norman Crighton, chairman of RMDL, said that the results were supported by the breadth and diversity of the company’s portfolio.
“RMDL is well placed to take advantage of the strong pipeline of opportunities and continued investor appetite for yield,” Crighton said.
“In the year ahead, we are confident in RMDL’s ability to continue providing its investors with long-term, attractive dividends as does the investment strategy that is proficiently executed by our investment managers.”
The London-listed fund, which predominantly invests in asset-backed loans, saw its portfolio grow to 35 investments, up from 30 at the same time in 2018. The loans are across 13 sectors, down from 15 in the first half of the year.
RMDL also noted that it completed a capital raise of 13.5 million new ordinary shares at a price of £1 each in March.