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