Company profile - Aberdeen Asian income fund feature image - 28062019- JPGmoney & pens

Tetragon Financial Group

LN: TFG

$1749.7m market cap

$12.52 last close

TFG’s investment objective is to generate distributable income and capital appreciation, aiming to provide stable returns to investors across various credit, equity, interest rate, inflation and real estate cycles. TFG’s investment portfolio comprises a broad range of assets, including a diversified alternative asset management business, TFG Asset Management, and covers bank loans, real estate, equities, credit, convertible bonds and infrastructure.

Investment summary

In 2018, Tetragon Financial Group (TFG) proved its ability to generate positive returns from a portfolio of alternative assets against a backdrop of negative returns across more traditional asset classes (including equities, bonds and commodities). Tetragon’s 12.1% return on equity (ROE) in 2018 is well within its long-term target range of 10–15%, and its 10.3% NAV total return compares with the negative 8.9% and 14.8% returns of the MSCI AC World and FTSE All-Share indices, in comparable US dollar terms. While its NAV progressed steadily higher, Tetragon’s share price declined broadly in line with global equity markets in 2018 and its discount reached 48.8% in early January 2019. However, this was turned to an advantage via the recently completed US$50m tender offer, which was 2.3% accretive to NAV per share, and the discount has subsequently narrowed. Maintaining a progressive dividend policy, Tetragon has a sector-leading 5.6% yield.

Share price graph
Price performance
%
1m
3m
12m
Actual (0.6) (2.3) 0.6
Relative* (3.5) (3.3) 1.9
52-week high/low US$13.4/US$11.5
*% relative to local index
Key management
David O’Leary Independent Directors
David Wishnow Principal of Investment Manager
Deron Haley Independent Directors
Michael Rosenberg Principal of Investment Manager
Paddy Dear Co-Founder and Director
Reade Griffith Co-Founder, Director & Head of Inv. Committee
Stephen Prince Head of TFG Asset Management
Steven Hart Independent Directors

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