\nStarlight Investments Capital LP (\u201cStarlight Capital<\/b>\u201d), on behalf of Starlight Hybrid Global Real Assets Trust (the \u201cTrust<\/b>\u201d), announced today the Trust\u2019s financial results for the three and twelve months ended December 31, 2020.\n<\/p>\n
Q4 2020 & 2020 HIGHLIGHTS<\/b><\/p>\n
Portfolio Investments<\/b><\/p>\n
\nAs at December 31, 2020, the Trust had an investment of $25,209,036(December 31, 2019 – $32,617,601)in the Public Portfolio LP and $16,624,602in three investments in the Private Portfolio (December 31, 2019 – $10,464,403 in two investments). The Public Portfolio LP had 57 investments (December 31, 2019 \u2013 41 investments) with a market value of $23,907,534(December 31, 2019 – $29,842,900) in publicly traded global real estate and infrastructure securities.\n<\/p>\n
\nThe Public Portfolio LP\u2019s investment portfolio remains liquid and the Trust does not anticipate any issues in being able to meet the liquidity needs of the Public Portfolio LP or the Trust.\n<\/p>\n
Distributions<\/b><\/p>\n
\nOn January 14, 2020, Starlight Capital announced the 2020 monthly distributions to unitholders of record for the Trust of $0.0433 per unit for a total gross distribution of $0.52 per unit per annum (2019 – $0.50 per unit per annum) representing a 4% increase from 2019.\n<\/p>\n
\nAs at December 31, 2020, the Trust declared twelve distributions of $0.0433 per series A and C unit and six distributions of $0.0433 per series B and F unit for a total distribution of $0.5196 per unit and $0.2598 per unit for each series of units, respectively. In addition, the distributions declared included a component funded by the Trust\u2019s distribution reinvestment plan.\n<\/p>\n
Annual Redemption<\/b><\/p>\n
\nOn June 29, 2020, 43,020 series A units, 10,483 series C units and 4,117 series F units were redeemed in accordance with the amended and restated declaration of trust (\u201cDOT\u201d) at net asset value (\u201cNAV\u201d). Series A, series C and series F unitholders received redemption proceeds of $410,501, $104,791 and $40,772, respectively for total proceeds of $556,064 at a NAV per unit of $9.5498, $10.0075 and $9.9014, respectively.\n<\/p>\n
Q4 Redesignation of Units<\/b><\/p>\n
\nSeries A units were redesignated as series C units and series C units were redesignated as series A units, at the option of the holder, in accordance with the DOT at NAV.\n<\/p>\n
\nOn September 30, 2020, 330,823 series A units were redesignated as series C units with a NAV of $3,219,930. Series A unitholders received 315,828 series C units with a NAV per unit of $10.20 in exchange for 330,823 series A units with a NAV per unit of $9.73. In addition, 6,399 series C units were redesignated as series A units with a NAV of $65,231. Series C unitholders received 6,702 series A units with a NAV per unit of $9.73 in exchange for 6,399 series A units with a NAV per unit of $10.20.\n<\/p>\n
\nOn December 31, 2020, 69,529 series A units were redesignated as series C units with a NAV of $694,195. Series A unitholders received 66,540 series C units with a NAV per unit of $10.43 in exchange for 69,529 series A units with a NAV per unit of $9.98.\n<\/p>\n
\nOn January 14, 2021 the Trust announced that given the current number of outstanding series A units and series C units, redesignation requests of series A units into series C units are not currently being accepted by the Trust.\n<\/p>\n
\nThe series A units are listed on the Exchange under the ticker SCHG.UN. Series C units are unlisted.\n<\/p>\n
Update on the Impact of COVID-19<\/b><\/p>\n
\nOn March 11, 2020, the World Health Organization declared the outbreak of COVID-19 was a global pandemic. Governments around the world enacted a series of public health measures to combat the spread of the virus. These measures significantly curtailed economic output and business activity globally. Since the latter part of February 2020, financial markets have experienced significant volatility in response to the COVID-19 pandemic resulting in increased risks related to the portfolio issuers and fluctuations in NAV and NAV for each series of unit of the Trust. The COVID-19 pandemic has also resulted in increased infrastructure risk and real estate risk for the Trust. Further, public health crisis, including the ongoing health crisis related to the COVID-19 pandemic, or relating to any other virus, flu, epidemic, pandemic or any other similar disease or illness could increase the Trust\u2019s risks related to the portfolio issuers, fluctuations in NAV and NAV or each series of unit of the Trust, infrastructure risk and real estate risk.\n<\/p>\n
\nIn Q1 2020, the progressive shutdown of large global economies resulted in significant broad market selloffs of global equity markets causing declines in the public portfolio investment valuations and the Trust\u2019s NAV. Equity markets have experienced elevated volatility in the face of rising unemployment and sharply declining economic output. The public portfolio has also experienced elevated volatility as equity investors have sought liquidity and safety in the face of uncertainty. In addition to impacting the Trust’s NAV, this may create difficulty in raising capital in equity markets, which could in turn adversely impact the Trust’s strategy. Liquidity of the public portfolio has remained high and has not been materially impacted by COVID-19. As a result of COVID-19, trading volumes in the public portfolio have increased as the investment manager looks to take advantage of investment opportunities brought about by the elevated level of market volatility.\n<\/p>\n
\nWhile the events surrounding the COVID-19 pandemic have resulted in unprecedented market volatility, the investment manager believes that the Trust\u2019s portfolio is well positioned to navigate through this challenging time. The Trust has not experienced any material distribution or dividend cuts from investments in the public portfolio or the private portfolio. As the public portfolio remains liquid, and although not expected, any distribution cuts made by portfolio investments resulting from COVID-19 or otherwise are not expected to have an impact on the Trust\u2019s ability to pay its monthly distributions given the liquid nature of the public portfolio and the Trust\u2019s ability to adjust its portfolio accordingly. The private portfolio has not experienced a significant impact from COVID-19 and no material changes to valuations have been required as a result of COVID-19. The public portfolio is currently positioned in sectors and geographies believed to be the most resilient during and after the COVID-19 outbreak and to realize significant upside potential upon an economic recovery. The investment manager continues to review the investment portfolio on a daily basis and remains committed to owning high-quality businesses with long term growth potential.\n<\/p>\n
\nStarlight Capital has implemented appropriate cautionary measures to ensure it is conducting business in a safe and effective manner (including, without limitation, limiting visits to their corporate office to essential personnel and ensuring proper protocols around sanitation and social distancing), and continues to diligently work with its service providers to remain operational through the pandemic. There can be no assurance that any actions taken will prevent the impact of COVID-19 on the Trust or Starlight Capital\u2019s employees or service providers.\n<\/p>\n
\nIn response to the global pandemic, governments and central banks have reacted with significant monetary and fiscal stimulus programs designed to stabilize economic conditions. Governments have also declared emergencies requiring various restrictions such as stay at home orders, mandatory closures of certain types of businesses and reduced limits on social gatherings impacting businesses and economies. At this time the duration and magnitude of the COVID-19 outbreak is still unknown, as is the efficacy of the government and central bank interventions. While the initial distribution of vaccines has begun globally with the U.S. administering over 115 million doses and with over 12% of the U.S. population now vaccinated many governments continue to have emergency orders in place. It is impossible to forecast the duration and full scope of the economic impact of COVID-19 and other consequential changes it will have on the Trust\u2019s business, both in the short term and in the long term and will depend on future developments that are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of and the actions required to contain the COVID-19 pandemic or remedy its impact, among others. The investment portfolio could experience further volatility and market value declines, which could materially adversely impact the performance of the Trust, its NAV and its ability to raise capital. While the situation continues to evolve, the Trust is confident the tactical measures implemented to date will allow it to provide long-term value creation to unitholders.\n<\/p>\n
FINANCIAL AND OPERATIONAL HIGHLIGHTS<\/b><\/p>\n