ArrowMark Financial (BANX) investor relations material

Executive summary

• Net assets as of March 31, 2024, were $151.2 million, with total assets of $205.1 million and liabilities of $53.97 million.

• Q1 2024 net income reached $0.70 per share, exceeding the quarterly distribution of $0.45 per share.

• The portfolio is diversified across term loans, structured debt, regulatory capital relief securities, preferred securities, and money market funds.

• The fund's investments are primarily in banking-related credit and structured products, with significant exposure to regulatory capital relief securities.

• The fund has consistently over-earned its distribution rate for the past four years, supporting its objective of providing consistent income.

Financial highlights

• Net assets: $151,171,201; total assets: $205,141,802; total liabilities: $53,970,601 as of March 31, 2024.

• Net income for Q1 2024 was $0.70 per share.

• Monthly total returns for the last three months: 3.14%, 0.16%, and 3.74%.

• Net realized losses on investments (excluding derivatives) for the last three months: -$155,827, -$1,462,340, and -$964,174.

• Gross unrealized appreciation: $1,433,238; gross unrealized depreciation: $10,679,629; net unrealized depreciation: $9,246,391.

Segment performance

• Term loans represent 6.6% of the portfolio, structured debt securities 7.3%, regulatory capital relief securities 116.2%, and trust preferred/preferred securities 1.2%.

• Money market funds account for 1.3% of the portfolio.

• Largest single investment: Community Funding 2018, LLC preferred shares, valued at $11.08 million.