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 |
£0.8179 |
GG00BXDZMK63 |
31
December 2020 |
UKML RNS: Commentary accompanying UK
Mortgages Limited December 2020
NAV
The UKML NAV per share was calculated for December 2020 month end at 81.79 pence per share, an increase of
0.36 pence per share.
Alongside the regular monthly income generated by the Company’s
investments, the key drivers for the movement in the NAV for this
period have been the updated IFRS 9 Expected Credit Loss (ECL)
provisioning assessment and the hedge effectiveness calculations
both of which occur semi-annually. With regard to ECL provisioning,
there has been a significant reduction in the number of loans
taking a payment holiday, with current levels having fallen to a
fraction of the amount at the previous calculation in June 2020, which essentially coincided with the
peak take-up. The effect of this has been to partially reduce the
required provisioning, despite continuing to model an enhanced
level of stress on loans where the borrowers have resumed payments
following the end of a payment holiday. In addition, the results of
hedge effectiveness calculations have continued to show a high
level of effectiveness, with a net small improvement.
Elsewhere, the positive impact of the above factors was
partially offset by several one-off fees relating to the recent
shareholder vote.
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: 16 February
2021