Fair Oaks Income Ltd on Friday reported a fall in net asset value in 2023.

The Guernsey-based investor which specialises in collateralised loan obligations said that in 2023 total net asset value of 2021. Shares fell 6.5% to $215.4 million from $230.4 million the year prior.

Meanwhile total NAV of realisation shares fell 11% to $28.5 million from $32.0 million.

On a per share basis, NAV of 2021 shares declined 1.5% to $0.5638 from $0.5721, whereas realisation shares fell 0.6% to $0.5715 from $0.5749.

In London on Friday morning 2021 shares in the company were up 1.7% to $0.57, whilst realisation shares were down 4.2% to $0.55.

For both classes of shares a dividend of 8.00 US cents was declared, down 16% from 9.50c.

Looking ahead, the company said a cut to interest rates could support demand for CLOs.

‘We continue to believe that the high-quality portfolio... represents one of the most attractive risk-adjusted opportunities available to investors in the current market environment,’ said Fair Oaks.

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