TIDMTFG

Tetragon Financial Group Limited

09 April 2019

London, UK, 9 April 2019

Edison issues review on Tetragon Financial Group (TFG/TFGS)

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.

Tetragon's share price discount to NAV widened in 2018, due to its share price declining while its NAV progressed steadily higher. The discount has narrowed from 48.8% in January 2019, but is still some distance from its December 2017 narrow point of 32.8%, suggesting significant scope for it to continue narrowing. Tetragon's 5.6% dividend yield is well above the 2.5% average yield in its peer group.

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April 09, 2019 11:01 ET (15:01 GMT)

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