RM Infrastructure Income PLC Net Asset Value(s) (1194G)
17 Julio 2023 - 1:00AM
UK Regulatory
TIDMRMII TIDMTTM
RNS Number : 1194G
RM Infrastructure Income PLC
17 July 2023
RM Infrastructure Income Plc
("RMII" or the "Company")
LEI: 213800RBRIYICC2QC958
Net Asset Value
NAV Performance
The Company's NAV % Total Return for the month of June was 0.75%,
which brings the NAV % Total Return for the quarter to 1.31%.
The NAV % Total Return over the last twelve months was 4.95%
and inception to date 40.87%.
The Ordinary Share NAV as at 30(th) June 2023 was 91.68 pence
per share. This monthly NAV return of -0.927 pence per share
arose primarily from the ex-dividend effect of the 1.625 pence
per share ordinary dividend for the period Q1 2023, declared
and paid in June 2023. Otherwise, there was positive interest
income, net of expenses, of 0.687 pence per share and an increase
in portfolio valuations of 0.01 pence per share. Summary for June 2023 (pence
per share)
Net interest income +0.687p
Change in portfolio
valuations +0.011p
Payment of Dividend
(Q1 2023) -1.625p
Net NAV Movement -0.927p
---------------------- --------
Market Update
Overall, a challenging period for fixed income products which
continue to be dominated by the persistent UK inflation backdrop.
This has been highlighted by the continued increase in UK government
yields, especially at the front end of the UK yield curve which
has led to further UK gilt yield curve inversion. Indeed, the
2-year government bond yield has risen 350bps since June 2022
of which circa 180bps has occurred during 2023.
Credit spreads, as measured by the Markit ITRX European Crossover
Index, saw a limited reduction in the risk premium opening at
425bps in April and closing at 400bps at the end of the quarter.
Given the shape of the UK yield curve, which has seen its inversion
widening during the quarter, RM is of the view that we have probably
seen the tightest point for credit spreads in the near to medium-term
as credit conditions are set to deteriorate with financing becoming
more expensive.
In light of the above and although it is disappointing to report
a lower than target NAV % Total Return for the quarter, we believe
RMII has maintained its medium to long-term outperformance versus
other observable benchmark loan and bond indices in Q2 2023 as
outlined in the below table: Total Return (%)
1yr 3yr 5yr
-------------------------- -------
RM Infrastructure Income
NAV 4.95 23.67 32.60
RM Infrastructure Income
Share Price -19.41 9.79 -3.82
S&P European Leveraged
Loan Index 5.37 1.27 -4.15
Ishares Core Corp Bond
UCITS ETF GBP -6.06 -19.36 -7.27
------- ------- ------
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 average duration nature of the portfolio,
which is currently 1.91 years. This in turn means that loans
can be repaid relatively quickly and reinvested within the higher
yielding environment. This can be evidenced by the weighted average
yield of the portfolio, which has increased to 10.02% at the
end of the reporting period, a widening in yield of 37bps versus
Q1-2023 or 129bps versus same period last year. In conjunction
with this, the Investment 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.
We outline below the key investment activities for Q2 2023:
New investments
* Hotel & Leisure, Ref 99: c.GBP2,880k
Material Repayments:
* Asset Finance, Ref 60: c.GBP1,500k
* Hotel & Leisure, Ref 69: c.GBP950k
Post period end, in line with the stated objective of exiting
the Company's exposure to its non-core asset-backed lending -
Ref 60, the Company received a further repayment of GBP1.5m,
bringing the outstanding balance down to c.GBP5m.
Shareholder consultation update
On 23 May 2023, the Company announced that as part of its review
of the Company's strategy, it would undertake a shareholder consultation.
Since that announcement, the Board, the Investment Manager, and
the Company's joint brokers have consulted widely with RMII's
major shareholders.
In general, consulted shareholders were overwhelmingly supportive
of the Company's management and performance, as well as its investment
focus and strategy. Shareholders did however highlight the Company's
small scale which has created challenges in generating improved
liquidity in the Company's shares and restricted the Company's
ability to grow. To that end, it was determined that reducing
the size of the Company through a partial exit opportunity would
only exacerbate these challenges.
The Board remains conscious of the size of the Company, the discount
to which the shares trade and the need to maximise shareholder
value and the Board expects to put forward proposals regarding
the future of the Company as soon as possible.
The Company also announces that the Monthly Report for the period
to 31 June 2023 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
Dave Taylor
Tel: 01481 737600
Apex Listed Companies Services (UK) Ltd - 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/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NAVXZLFFXDLEBBL
(END) Dow Jones Newswires
July 17, 2023 02:00 ET (06:00 GMT)
Rm Infrastructure Income (LSE:RMII)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Rm Infrastructure Income (LSE:RMII)
Gráfica de Acción Histórica
De May 2023 a May 2024
