TIDMRMII TIDMTTM

RNS Number : 9034M

RM Infrastructure Income PLC

17 January 2023

 
                               RM Infrastructure Income Plc 
 
                                ("RMII" or the "Company") 
 
                                LEI: 213800RBRIYICC2QC958 
 
                                     Net Asset Value 
 
  NAV & Share price performance 
   The Company's NAV % Total Return for the month of December was 
   0.66%, which brings the NAV % Total Return for the quarter to 
   1.50%. 
   The NAV % Total Return over the last twelve months was 4.98% 
   and inception to date 37.22%. 
   The Ordinary Share NAV as at 31(st) December 2022 was 92.50 pence 
   per share. This monthly NAV return of -1.009 pence per share 
   arose primarily from the ex-dividend effect of the 1.625 pence 
   per share ordinary dividend for the period Q3 2022, declared 
   in November 2022 and paid in December 2022. Otherwise, there 
   was positive interest income, net of expenses, of 0.568 pence 
   per share and an increase in portfolio valuations of 0.048 pence 
   per share. 
     Summary for December 2022 (pence 
                 per share) 
    Net interest income         +0.568p 
    Change in portfolio 
     valuations                 +0.048p 
    Payment of Dividend 
     (Q3 2022)                  -1.625p 
                                 -1.009 
    Net NAV Movement                  p 
   -------------------------  --------- 
 
 
   During the month of December 2022 and post period-end, the Company 
   purchased c.250k shares as part of its buyback program. The Board 
   and the Investment Manager remain focused on reducing the discount 
   to Net Asset Value. 
 
   Market Update 
   Peak inflation fear and the instability created by Liz Truss 
   had started to pass as the quarter began, as evidenced by government 
   bond yields starting to fall again. Overall, it was a strong 
   quarter for both risk assets and government bonds as equities 
   rallied and the 2 -year UK government bond yield fell from a 
   high of circa 4.4% to finish the period at circa 3.5%. There 
   was a similar shift in yields for the long end of the government 
   bond market, which had been particularly affected by LDI unwinds, 
   with cash prices for the UKT 0.5% 61 touching 28 cents on the 
   GBP in early October and finishing the quarter at 35 cents on 
   the GBP. 
   Credit spreads saw a material reduction in the risk premium with 
   the Markit ITRX European Crossover Index peaking at 650 in early 
   October and then steadily reducing over the period to finish 
   at 475. Post period end this trend has continued with spreads 
   touching nearly 400 today. It is likely that these are the tightest 
   levels we will see in this index for the remainder of the year 
   and thus the widening applied to the Level 3 assets, of 70bps 
   in June and September 2022, have not been reversed by the Investment 
   Manager nor the Valuation Agent until we see economic indicators 
   giving indications that can justify this spread compression within 
   these more liquid indices. In the view of RM Funds, this is pragmatic 
   and what investors would expect; to reduce volatility within 
   the fund as we expect further spread widening from these more 
   liquid indices during 2023. 
   RMII has significantly outperformed benchmark loan and bond indices 
   in FY2022 as outlined in the below table; 
                                       Total Return 
                                  1yr       3yr      5yr 
   --------------------------  -------- 
    RM Infrastructure Income 
     NAV                         4.98%    16.54%    33.00% 
    RM Infrastructure Income 
     Share Price                -3.75%     7.16%    19.11% 
    S&P European Leveraged 
     Loan Index                 -7.05%    -7.06%    -8.13% 
    Ishares Core Corp Bond 
     UCITS ETF GBP              -15.40%   -14.52%   -7.50% 
                               --------  --------  ------- 
 
 
   Portfolio Update 
   The Investment Manager remains confident with regards to the 
   low interest rate sensitivity of the portfolio. This is largely 
   driven by the short duration nature of the portfolio, which is 
   currently 1.50 years, which in turn means that loans can be repaid 
   relatively quickly and reinvested at higher yields. This has 
   been evidenced during the quarter as a number of loans written 
   over previous years were repaid and the capital redeployed into 
   higher yielding loans. In conjunction with this, the portfolio 
   manager has been seeking to increase security with a move up 
   the capital structure by recycling this capital into senior secured 
   loans and reducing mezzanine or junior lending exposure. The 
   portfolio yield has thus increased over the quarter by 28bps 
   from 8.87% to 9.15%. 
   Increased investments 
    *    Social Infrastructure - Aged Care, Ref 88 : 
         c.GBP5,000 
 
 
    *    Environmental Infrastructure - Energy Efficiency, Ref 
         96 : GBP70,000 
 
 
    *    Non-Core - Hotel & Leisure, Ref 69: GBP7,500 
 
 
   New Investments 
    *    Social Infrastructure - Care Home, Ref 97a&b : 
         GBP6,200,000 committed (c.GBP1.1m drawn in period) 
 
 
   Repayments: 
    *    Environmental Infrastructure - Energy Efficiency, Ref 
         96 : GBP70,000 
 
 
    *    Environmental Infrastructure - Energy Efficiency, Ref 
         62 : GBP1,000,000 
 
 
    *    Environmental Infrastructure - Renewable Heat 
         Incentive, Ref 9&52 : GBP150,000 
 
 
    *    Social Infrastructure - Childcare, Ref 95a&b : 
         GBP120,000 
 
 
    *    Social Infrastructure - Health and Well-being, Ref 
         94: c.GBP7,700 
 
 
    *    Social Infrastructure - Childcare & Education, Ref 
         91: GBP1,550,000 
 
 
    *    Non-Core - Asset Backed Lending, Ref 64: GBP2,750,000 
 
 
    *    Non-Core - Asset Backed Lending, Ref 60: GBP2,000,000 
 
 
    *    Non-Core - Hotel & Leisure, Ref 67: GBP950,000 
 
 
 
   A quarterly update webinar from the Investment Manager is scheduled 
   for Tuesday 19(th) January 2-3pm and registration can be made 
   here: https://us06web.zoom.us/webinar/register/WN_oBbZJhtFRiWqkGlu_7t6DQ 
   . 
 
 The Company also announces that the Monthly Report for the period 
  to 30 September 2022 is now available to be viewed on the Company 
  website: 
 https://rm-funds.co.uk/rm-infrastructure-income/rm-funds-investor-monthly-fact-sheets-2/ 
 
 
 
                                            END 
 
 
 
   For further information, please contact: 
 RM Capital Markets Limited - Investment Manager 
 James Robson 
 Thomas Le Grix De La Salle 
 Tel: 0131 603 7060 
 
 FundRock Management Company (Guernsey) Limited - AIFM 
 Chris Hickling 
 Shaun Robert 
 Tel: 01481 737600 
 
 Tulchan Group - Financial PR 
 Elizabeth Snow 
 Oliver Norgate 
 Tel: 0207 353 4200 
 
 Apex Listed Companies Services (UK) Limited - Administrator 
  and Company Secretary 
 Brian Smith 
 Ciara McKillop 
 Tel: 020 3327 9720 
 
 Singer Capital Markers Advisory LLP - Financial Adviser and 
  Broker 
 James Maxwell 
 Asha Chotai 
 Tel: 020 7496 3000 
 
 Peel Hunt LLP - Financial Adviser and Broker 
 Luke Simpson 
 Liz Yong 
 Tel: 020 7418 8900 
 
 About RM Infrastructure Income 
 
 RM Infrastructure Income Plc ("RMII" or the "Company") is a closed-ended 
  investment trust established to invest in a portfolio of secured 
  debt instruments. 
 
 The Company aims to generate attractive and regular dividends 
  through loans sourced or originated by the Investment Manager 
  with a degree of inflation protection through index-linked returns 
  where appropriate. Loans in which the Company invests are predominantly 
  secured against assets such as real estate or plant and machinery 
  and/or income streams such as account receivables. 
 
 For more information, please see 
 https://rm-funds.co.uk/rm-infrastructure-income/ 
 

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END

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January 17, 2023 02:00 ET (07:00 GMT)

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