Prodesse Investment Limited (PRD.LN), announced Tuesday for its results for the quarter ended June 30, it had an NAV per share of $7.69 compared with $6.99.

MAIN FACTS:

-Core net income per average share of $0.27

-Dividend per share of $0.27 (2008: $0.23) from net interest income - equates to an annualised dividend yield of 15.26%3

-Net income per average share of $0.44

-Portfolio remains 100% implied "AAA" mortgage-backed securities.

-Net Cash: $215,000 (2008: $89,000)

-Although Constant Prepayment Rate rose modestly during the quarter, prepayment speeds generally are coming in slower than expectations.

-Moreover, the Mortgage Bankers Association Refinancing Index fell 77% during the second quarter, portending a decline in CPR in future quarters.

-The yield curve in the United States became more positively sloped during the quarter.

-While there will be variability in this going forward, it is likely that the steep yield curve persists.

-The company believes that its portfolio strategy of owning a barbell of fixed-rate, adjustable-rate and floating rate assets will enable Prodesse to continue to provide competitive returns to our shareholders.

-Even with the current situation in the mortgage sector the company does not anticipate having difficulty converting its assets to cash or extending financing term, due to the fact that its investment securities have an actual or implied "AAA" rating and principal payment is guaranteed by Freddie Mac (FRE), Fannie Mae (FNM), or Ginnie Mae.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com