Strategic report / Increase in value 2024
Increase in
value 2024
At the period end, OCI's NAV was £1,226 million an increase of £19 million against the prior year, driven by a net unrealised gain on investments of £121 million, £116 million of which relates to unrealised gains from the Funds and £5 million from Direct Investments. A resilient performance from the underlying portfolio contributed 45 pence of net valuation gains in OCI's Total NAV Return of 2%.
Movement in NAV £m
£19m
OCI's NAV grew £19m to £1,226 million at the year-end, driven by net unrealised gains on investments of £121 million; comprising £116 million of net gains from the Oakley Funds and £5 million from Direct Investments driven by North Sails, offset by £42 million of net expenses in the Oakley Funds and £41 million of net unrealised losses related to FX.
Excluding the impact of foreign exchange, OCI's Total NAV Return per share was approximately 40 pence with the FX impact predominantly driven by the depreciation of the euro against sterling in the current year, and almost entirely unrealised.
See more on the impact of foreign exchange rate below.
OCI's FX exposure results from the following three elements:
1. Underlying investment portfolio
Certain portfolio companies have transactions and balances denominated in a currency other than their main reporting currency. There is an unrealized gain or loss when these are translated to the reporting currency in the normal course of business.
Additionally, certain of those portfolio companies have a reporting currency that is not Euros (the currency in which the Funds report). The NAV of those entities is determined in base currency and is then translated into Euros for inclusion in the overall Fund’s NAV.
The impact of both is captured within the £121m of Investments: unrealised gains above.
2. Reporting currency of Investments
OCI holds Direct investments in North Sails and Time Out, and indirect Investments in the Oakley Funds.
OCI has a reporting currency of GBP given that it is listed in the UK, however given Oakley’s strategy is pan – European focused, the majority of the Oakley Funds are denominated in Euros, with Touring I being the exception which is denominated in USD. An FX gain/loss arises from translating from the reporting currency of the funds to that of OCI at the period end.
Additionally, an FX gain/loss arises from translating our direct investments. in North Sails, which is denominated in USD, to GBP at the period-end.
The impact of this in 2024 was a net loss of c.£41 million broadly comprising c.£43m of FX losses on the Fund investments offset by c.£3m of FX gain from North Sails. This is captured within Investments: FX loss above.
3. OCI’s own operating balances
In the ordinary course of business, OCI has certain transactions and balances not denominated in its reporting currency, which are translated to GBP at the period end. In 2024, this was minimal.
Movement in the value of investments (£m)
Unrealised gains on investments
£121m
See ‘Attribution analysis’ definition within the Glossary for an explanation of methodology.
Related content
See OCI NAV overview
See this section to learn about OCI's NAV and how we have delivered consistent returns for shareholders during a period of investment.