UK Mortgages Ltd - Net Asset Value(s)
PR Newswire
London, December 17
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration number 60440)
LEI 549300388LT7VTHCIT59
Final Net Asset Value
| FUND NAME | NAV | ISIN | NAV DATE |
| UK Mortgages Limited | £0.7835 | GG00BXDZMK63 | 31 October 2021 |
UKML RNS: Commentary accompanying UK Mortgages Limited October 2021 NAV
The UKML NAV per share was calculated for October 2021 month end at 78.35 pence per share, a decrease of 0.45 pence per share.
The main driver of NAV performance was the quarterly dividend payment for the first interim period of the Company's financial year of 1.125 pence per share which was declared in October.
Excluding the dividend payment, the primary driver of the monthly NAV came as a result of the positive running income being generated by the Company's underlying investments, which contributed approximately 0.68 pence per share - continuing the established pattern of income significantly outweighing both the 0.375 pence per share required to cover the monthly equivalent of this period's dividend payment as well as the 0.42 pence per share that will be required to cover the monthly equivalent of the recently announced increased dividend going forward.
A number of smaller items, including a minor adjustment to the prepayment assumptions in the Barley Hill portfolio reflecting more recent borrower behaviour, an update to the amortised cost valuations for the Keystone portfolios to more accurately model early repayment charges, and a small loan write-off in the Oat Hill portfolio, were also included in the calculation, although the combined impact of these items was insignificant and had no material impact on the NAV.
As has been the case in recent months, the October NAV, once again, also saw some benefit from further rises in swap rates which increased the pull-to-par effect of the assets purchased at a discount whilst suppressing the effect on those bought at a premium, adding between 0.06 and 0.10 pence per share in each month. This benefit is expected to recede somewhat in subsequent months as November saw interest rate curves flatten, however the subsequent net monthly income would still be comfortably in excess of the monthly equivalent of the dividend requirement.
The Company's investments continue to perform in line with expectations, and further details will be available in the Company's next factsheet.
Enquiries:
Northern Trust International Fund Administration Services (Guernsey) Limited
Andrew Bonham 44 (0)1481 745302
Date: 17 December 2021
