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 |
£0.8102 |
GG00BXDZMK63 |
31st August 2020 |
UKML RNS: Commentary accompanying UK
Mortgages Limited August 2020 NAV
The UKML NAV per share was calculated for August 2020 month end at 81.02 pence per share, an increase of
0.61 pence per share.
As part of the year-end reporting and audit process, the
Company’s IFRS 9 Expected Credit Loss (ECL) provisioning
methodology was significantly revised, moving from a series of
portfolio level assumptions to a far more granular loan-by-loan
level analysis and stress testing process, along with newly
developed additional stresses to incorporate the introduction of
mortgage payment holidays in the UK following the Covid-19
outbreak. This resulted in an increased provision of approximately
£1m which was incorporated into the NAV for June 2020. Subsequently it was identified that
the change in methodology, also captured an element of loss
assumption that had previously been included in the amortised cost
valuation, essentially creating duplication and this is now being
corrected. As a result of this and model adjustments identified in
our audit a further ECL provision of approximately £0.5m has been
made, but this has been more than offset by a £1.8m increase
from the removal of the duplication.
Additionally, the increase in NAV was driven by the income
earned from the Company’s underlying investments.
Following the refinancing of the Oat Hill No.1 transaction at
the end of August, the Company completed the repurchase of c.
41m shares during September using
capital released from the refinancing as planned. As these shares
were purchased at a discount, this will result in uplift in NAV,
estimated at approximately 2.24 pence
per share which will be reflected in next month’s NAV for
September.
Meanwhile, the Company’s investments continue to perform in line
with expectations.
More details will be available in the Company’s next factsheet
to be published shortly.
Enquiries:
Northern Trust International Fund Administration Services
(Guernsey) Limited
Andrew Bonham
44 (0)1481 745302
Date: 13 November
2020