RDL Realisation (RDL) investors have been warned the coronavirus pandemic may have a negative impact on the remaining portfolio.
The investment trust, which is in the process of being closed, revealed in its annual report that it hoped to realise and return a “substantial part” of the portfolio during the first half of this year.
The report said the total portfolio value as of 31 March was $29.5m (£23.5m) and cash held was $12.6m but it said the returns from the remaining assets may be impacted by the coronavirus pandemic.
“Whilst the full impact of the global pandemic is yet to be felt by businesses worldwide, it is likely to have a negative impact on the company’s remaining portfolio,” the update said.
“As a result, the risk that company’s assets may not be realised at their fair market value, or at any value, has increased.”
It said the highest risk was to loans on small business platforms that the fund is invested in and there was also a material exposure to property.
“The company is holding ongoing discussions with platform managers regarding portfolio impacts and ensuring that the results of these discussions are reflected in future portfolio valuations as appropriate,” it said.
The annual report showed RDL’s net asset value (NAV) return for 2019 was 2.69 per cent.
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