NRP Premium Maritime Fund returned 10.6% in the first quarter.
The quarterly performance was driven by the sustained robust cash flow generated by product tanker investments, complemented by further positive impacts from value appreciation in the bulker segment, according to the quarterly report.
The Oslo-based fund that makes direct investments in vessels has an annualised return of 27% since its inception in February 2017.
Currently, the portfolio comprises nine vessels, including three ships that are committed for sale with deliveries scheduled in the second quarter.
The fund’s net asset value is $41.1m and it has paid out total dividends of $105m so far.
The fund did not make any distributions during the first quarter, but the fund managers expect to distribute $0.45 per share once proceeds from sold investments are received.
The fund said it has begun divesting its dry bulk exposure this year, “leveraging the prevailing strong market sentiment”.
“Sale candidates are continuously assessed, with the fund taking an opportunistic approach when the price is right,” the report said.
The fund envisages uncertainties related to the short-term demand of seaborne trade, due to the economic environment characterised by geopolitical conflicts, energy shortage, inflation and downturns in China.
According to the report, the supply side, on the other hand, being substantially more predictable, paints an encouraging picture with orderbooks for bulk carriers and tankers at historically low levels.
“History has shown us, most recently following the Russia-Ukraine conflict, that disruptions in existing trade patterns tie up fleet capacity and reduce the effective supply of tonnage,” the report said.
The fund is managed by NRP Maritime Asset Management partners Nicolai Heidenreich and Wilhelm Magelssen.
“Even with short-term uncertainties on the demand side, the forecasted low effective supply growth provides convincing indications that an up cycle is ahead of us for several segments,” the report concluded.
