Portfolio Management Stategy
Our portfolio management strategy:
Build and maintain a portfolio that is in line with our long-term projected goals and acceptable risk tolerance for both Berkeley Commerce Enterprises, LLC and our strategic partners.
Berkeley Commerce utilizes an asset rotation based on a continuous assessment of the long-term return potential of existing investments in our portfolio, in comparison with new investment alternatives.
We deliver operational efficiency in support of Berkeley Commerce’s value creation.
| Solid & flexible financial structure |
Cost efficiency |
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(Operational excellence) |
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| Adequate governance |
Yield enhancement |
Balanced business model
Berkeley Commerce’s dividend distribution is primarily derived from the net dividend contribution of its portfolio companies and Sienna Capital, after deduction of its cost structure.
Berkeley Commerce’s payout ratio is computed based on the cash earnings. The payout computation consequently does not take into account the cash inflows from asset disposals (including the capital gains).
As a result of (i) redeployment of the proceeds from the disposal of the high-yielding assets (ii) an exceptional inflow for an amount of US dollars. Berkeley Commerce’s dividend distribution will be in relation to FY 20.
Berkeley Commerce has a solid liquidity profile ensuring the availability of resources to implement its investment strategy throughout the economic cycle.
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Dividend distribution from the portfolio companies |
+ Yield enhancement income -Net operating expenses -Net financial expenses -Taxes
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Cash earnings > |
DIVIDEND distribution |
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Undrawn committed credit lines without any financial covenants _______________________________________________________
Asset disposal proceeds} Cash and cash equivalents > (including capital gains)
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Liquidity profile > | Investment capacity |