VPC fund sees further dividend growth, hits target

By Daniel Lanyon on Friday 25 May 2018

Editor's PickAlternative Lending

The portfolio has paid out its highest quarterly distribution since 2015.

VPC fund sees further dividend growth, hits target
Image source: https://goo.gl/1wv2cL

The £328m VPC Specialty Lending fund has declared an interim dividend of 2p pence per share, its stated target number, for the three-months to 31 March 2018, an increase from its Q3 and Q4 2017 dividends of 1.8p pence per share.

VPC has been undergoing a transition – now largely complete – to mostly balance sheet lending exposure. When it launched in 2015 the fund concentrated on more on P2P lending but it found itself a year later sitting on a more than 30 per cent discount to net asset value [NAV] this was followed by a period of 18 months or so when its dividends were below its 2p target. Today its discount has moved in to 12 per cent.

The first three months of 2018, VPC recently said in an update to shareholders, was a record quarter for the fund.

VPC has now declared an interim dividend of 1.8p per share for the three-month period to 31 December 2017, which is an increase from the 2017 Q1 and Q2 dividends of 1.50 and 1.70 pence per share, respectively and consistent with the Q3 dividend of 1.8p per share.

The latest dividend will be paid on 28 June 2018 to shareholders on the register as at 1 June 2018. The ex-dividend date is 31 May 2018.

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