The management of the asset portfolio during Q1 2023 took place amidst a complex and uncertain investment climate, having to deal with successive interest rates increases and high volatility in the capital markets, requiring a prudent and adaptive approach to ensure an adequate performance.
In this context, in the management of Lion Capital assets, the aim was to calibrate the portfolio on financial assets/instruments that benefit from an inflationary context and to continue restructuring the portfolio, by reducing minority exposures that do not fit into the Fund’s investment strategy.
Lion Capital’s net asset value, calculated in accordance with ASF regulations, was of RON 3,304.37m as of March 31, 2023, slightly up by 2.03% vs. the value at 2022-year end and 1.03% higher vs. the value as of March 31, 2022.
In Q1 2023, Lion Capital did not register dividend income, as the payment dates for the issuers in the portfolio is after March 31, 2023. Regarding interest income, there was a noteworthy increase compared to the corresponding period of the prior year (RON 2.96m vs. RON 0.83m).
Gain/Loss on investments is favourable as of March 31, 2023, with Lion Capital mainly recording a gain on financial assets at fair value through profit and loss account (FVTPL), amounting to RON 33.7m at the end of Q1 2023, vs. a loss of RON 63.6m for the corresponding reporting period of the prior year.
The expenses as of March 31, 2023, are comparable to those made in the corresponding period of 2022, with slight increases in both commission and operational expenses.
Net profit as of March 31, 2023, amounting to RON 32.1m is mainly the result of MTM of financial instruments (shares and fund units) reflected at fair value through the profit and loss account.
Total comprehensive income as of March 31, 2023, is positive, amounting to RON 68.5m, and is the effect of the recognition in other comprehensive income of the fair value increase of the value of the portfolio of financial assets classified in the FVTOCI category (assets at fair value through other comprehensive income).
The full version of Q1 2023 report is available on Lion Capital’s website, in Investor Relations › Financials section.