UK Mortgages Ltd - Net Asset Value(s)
PR Newswire
London, October 18
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 | £0.7794 | GG00BXDZMK63 | 31 August 2021 |
UKML RNS: Commentary accompanying UK Mortgages Limited August 2021 NAV
The UKML NAV per share was calculated for August 2021 month end at 77.94 pence per share, an increase of 0.61 pence per share.
NAV performance in August was primarily driven by the income generated from the Company's underlying investments which, as highlighted in previous communications, continues to grow from one month to the next and comfortably exceeds the 0.375 pence per share necessary to cover the monthly equivalent of the dividend.
Incorporated in this month's figure, and similar to the previous month, the further upwards shift in the yield curve has the dual effect of increasing the pull-to-par of the Oat Hill No. 2 transaction (purchased at a discount) whilst compressing the premium erosion from the Company's other portfolios which were all purchased above par. This represented about 0.06 pence per share of the monthly NAV gain, alongside a number of smaller items.
As mentioned in the most recent factsheet, the Company's hedging structure effectively nullifies any fixed-rate exposure in our underlying mortgage pools, essentially generating floating rate returns for the Company, which thereby benefits in two ways from rises in interest rates. Absolute income will be higher when the underlying interest rate benchmarks (e.g. Sonia) rise, and as the term yield curve rises or steepens this accelerates the dual pull-to-par effect highlighted above.
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: 18 October 2021
