2021 Monthly Dividend and Portfolio Update

RNS Number : 6160L

NB Global Monthly Income Fund Ltd

14 January 2021

 

14 January 2021

NB Global Monthly Income Fund Limited ("NBMI")

2021 Target Distribution and Portfolio Update

The board of NB Global Monthly Income Fund ("NBMI") is pleased to announce that NBMI's portfolio has now fully transitioned to reflect the new strategy and investment policy adopted in September 2020.

Highlights

· 2021 target monthly distribution set at 0.39 pence per share:

o  Representing a yield of 5.0% on NAV¹, and

o  5.6% yield on the current share price of 84.0 pence¹

· Portfolio now fully transitioned, ahead of schedule, delivering 6.24% portfolio yield (YTM)²

· Current allocation of 75% to traditional credit and 25% to alternative credit

Note: (1) as at market close on 12 January 2021; (2) Yield-to-maturity

Recent investments

NBMI recently invested in the private debt of BCA, the UK's largest car auction business, which owns consumer businesses webuyanycar.com and cinch.co.uk. NBMI's bullish longer-term thesis rests in part on the significant barriers to entry due to the sector's logistics requirements and BCA's large database of real-time and historic market data. The fund took a position in BCA's Libor+8.25% notes at a price of 95p in mid-November.

In late November, NBMI also invested in a new issue from Cineworld, the world's second largest cinema chain which operates over 9,500 screens in 10 countries. Following Covid-19 lockdown restrictions and film release delays, Cineworld increased liquidity by issuing a loan with priority security interest over US cinema assets that the manager believes were among Cineworld's most profitable assets before the pandemic. The loan offered attractive economics, including 7.0% cash interest plus PIK interest and equity warrants. The new instrument is in the traditional credit part of NBMI's portfolio and currently trades at over $115, compared to the new issue price of $100.

Portfolio statistics (as of 31 December 2020)

Current yield: 6.08%

Asset allocation:

	Global High Yield:	25.7%
	Global Floating Rate Loans:	49.5%
Total Traditional Credit:		75.4%
	Private Debt:	11.6%
	CLO Mezzanine Debt:	7.0%
	Special Situations:*	6.0%
Total Alternative Credit:		24.6%

* Tradeable but less liquid debt securities, such as stressed credit and CLO debt tranches

2021 Dividend Payment Dates

The Board is pleased to announce a Target Distribution³ for the financial year 2021 at a rate of 5% of Net Asset Value per annum (net of fees and expenses) which equates to a dividend per share of 0.39 pence paid monthly. This distribution represents a 9.6% increase on the total dividend for the most recent 12 months prior to the change in the investment policy which came into effect on 8 September 2020.

2021 dividends will be paid on or around the 10th business day of the following month in arrears. The full schedule of record, ex-dividend, and payment dates for 2021 is available at www.nbgmif.com under 'Fund Analysis'.

The Board would like to take the opportunity to remind our shareholders that the Company became an "offshore fund" for the purposes of the UK's offshore fund tax rules. The Company applied to HMRC to treat the Company as a "reporting fund" for these purposes, details of which can be found in the EGM circular available at www.nbgmif.com. Shareholders who are in any doubt as to their tax position should consult an independent professional adviser.

December 2020 Factsheet

NBMI will shortly publish its factsheet for the period ended 31 December 2020, which will be the fund's first factsheet under its new investment policy. This will also be available at www.nbgmif.com .

Note: (3) This is only a target distribution and may not be achieved. Actual distributions will be monitored against the Target Distribution. The Target Distribution will be reviewed at least annually (at the end of each financial year) and any amendment to the target will be announced via RNS as required.

- ENDS -

For further information, please contact:

Neuberger Berman Europe Limited (Manager) Elizabeth Papadopoulos	[phone]
Numis Securities Limited (Broker) Hugh Jonathan Matt Goss	[phone]
Praxis Fund Services Limited (Company Secretary) Matt Falla Gemma Woods	[phone]
KL Communications (PR) Charles Gorman Luke Dampier	[phone]

About NBMI

NBMI's investment objective is to provide its shareholders with consistent levels of monthly income, while maintaining or increasing the Company's net asset value per share over time. To pursue its investment objective, the Company invests in traditional credit (high yield bonds, floating rate loans and investment grade corporate bonds) and alternative credit, including tradeable but less liquid debt securities (such as distressed credit and CLO debt tranches), mezzanine debt, and "club" loan transactions (being syndicated lending opportunities presented through the Company's or Investment Manager's relationship with loan arrangers and/or borrowers) and private corporate loans issued directly to borrowers.

NBMI is a registered closed-ended investment company incorporated in Guernsey. It is managed by Neuberger Berman Europe Limited, which has delegated certain of its responsibilities and functions to the AIFM, Neuberger Berman Investment Advisers LLC, both of which are indirect wholly owned subsidiaries of Neuberger Berman Group LLC.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies-including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds-on behalf of institutions, advisors and individual investors globally. With offices in 24 countries, Neuberger Berman's diverse team has over 2,300 professionals.

For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $374 billion in client assets as of September 30, 2020. For more information, please visit our website at www.nb.com.

LEI: 549300P4FSBHZFALLG04

 

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