Dividend Policy Update

RNS Number : 7007J

NB Global Monthly Income Fund Ltd

28 April 2022

 

28 April 2022

NB Global Monthly Income Fund Limited ("NBMI")

Dividend Policy Update

The board of NB Global Monthly Income Fund ("NBMI") is pleased to announce an increase to the Target Distribution[1] for the remainder of 2022 to a rate of 5.8% of Net Asset Value per annum[2] (net of fees and expenses) which equates to a target monthly distribution for the remainder of 2022 of £0.00443 per share paid monthly, equating to £0.05316 per share, per annum.

The increased Target Distribution is equivalent to a 6.125% yield on yesterday's closing share price of 86.8 pence[3]and represents a 6.75% increase on the Target Distribution proposed on 4 January 2022.  The new Target Distribution will, for the remainder of the year, represent a level which is 14% higher than the total dividends paid in 2021. 

Rationale for Dividend Increase:

· In the first three months of the year, the current yield has increased by 40bps to 6.67% as of 31 March 2022.  In part, the increase in portfolio yield can be attributed to the sharp rise in interbank funding rates upon which the majority of the assets in the portfolio are linked.  Examples of these rates and how they have increased are illustrated below:

	31 December 2021	25 April 2022
1 month USD Libor	0.1%	0.7%
3 month USD Libor	0.2%	1.22%

· In the coming months, the Investment Manager anticipates the current yield of the portfolio will increase further as the Libor and SOFR fixings reset progressively to these higher levels. 

· The improvement in current yield and associated dividend increase announced today is not a function of actions by the portfolio managers or a change in the overall risk profile of the fund, but rather primarily as described above associated with the shift higher in yields, particularly for USD denominated assets which represent over 80% of the portfolio. 

· As of 31 March 2022, the portfolio Yield to Maturity was 7.66%.

Performance Update (as of 31 March 2022) - figures are returns based on NAV

	NB Global Monthly Income Fund (Net of Fees) %
Year to Date 2022	-1.48
Calendar year 2021	7.76
Since Inception (30 Sep 2020) (annualised)	6.74

· In the opinion of the Investment Manager, the NAV performance of NBMI for the three months ending 31 March 2022 (net of fees) of -1.48% represents a robust result in the context of the commencement of the Russia-Ukraine conflict and sharply higher inflation expectations contributing to generalized macroeconomic volatility.   

· NBMI's exposure to floating rate assets (70% as of 31 December 2021) in combination with credit selection and sector rotations effected during the second half of 2021 all contributed to the outperformance of NBMI in comparison to a range of other asset classes including to many fixed income categories.  For example, as outlined in the 31 March 2022 Factsheet, the ICE BofA Global High Yield Constrained Index finished the quarter with a return of -5.5%. 

2022 Dividend Payment Dates

As previously confirmed, 2022 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 2022 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 dated 17 August 2020 available at  www.nbgmif.com . Shareholders who are in any doubt as to their tax position should consult an independent professional adviser.

For further information, please contact:

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

About NBMI

The Company 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.

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 25 countries, Neuberger Berman's diverse team has over 2,400 professionals.

For seven consecutive years, Neuberger Berman 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 $437 billion in client assets as of December 31, 2021. For more information, please visit our website at  www.nb.com .

LEI: 549300P4FSBHZFALLG04

 

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[1] 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.

[2] As of 22 April 2022

[3] As of 27 April 2022

 

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