Initial Monthly Dividend & Portfolio Update

RNS Number : 7042B

NB Global Monthly Income Fund Ltd

12 October 2020

 

12 October 2020

NB Global Monthly Income Fund Limited("NBMI")

Initial Monthly Dividend, Portfolio Transition Progress and Payment of Tender Proceeds

Highlights

· Initial Monthly dividend expected to be around 4 pence per share on an annualized basis, equating to around 5% net annualized yield

· Portfolio circa 80% transitioned to date, ahead of schedule

· Cash Exit Offer proceeds paid to tendering shareholders on Friday 2 October 2020.

The board of NB Global Monthly Income Fund ("NBMI") is pleased to update shareholders on progress made since the EGM on 8 September 2020. 

Around 80% of the portfolio has now transitioned to reflect the new strategy, as the Investment Manager implements the new investment policy.  Once completed, the transitioned portfolio will comprise a wider range of credit assets, including traditional and alternative credit such as private corporate loans issued directly to borrowers.  The portfolio yield at present, on a yield-to-maturity basis, is 6.7% and on a current yield basis is 5.7%. Around 79% of the portfolio has been allocated to traditional credits and the remaining 21% to alternative credits.

As previously indicated, NBMI will begin paying monthly dividends in November, once the Third Quarter 2020 dividend has been paid, expected on 30 October 2020.  In January 2021, the Board will announce the Target Distribution and timetable for the coming calendar year.

Based on the portfolio yield-to-maturity of 6.7%, the Board expects the initial net dividend yield to be set at around 5% for the months of October, November and December 2020 and for the monthly dividend to be increased from January 2021. NBMI will report portfolio developments on a monthly basis via its updated factsheets and website.  Shareholders may register for email alerts, by contacting us at [e-mail] .

Ahead of the next factsheet publication, further details of the current performance statistics and asset allocation can be found here http://www.rns-pdf.londonstockexchange.com/rns/7042B_1-2020-10-9.pdf  and are also available on the NBMI website, www.nbgmif.com .

Rupert Dorey, Chairman of NBMI, said:

"The investment manager has worked effectively to transition the portfolio to reflect the new investment policy.  Progress is ahead of schedule, allowing us to commit to the monthly dividends which shareholders voted for a few weeks ago at an increased amount to the current dividend on an annualised basis. 

"Cash exit offer proceeds have been paid to tendering shareholders, and the final, less liquid, investments are being made, as the transition is completed.  The initial net dividend yield of 5% per annum is in line with our expectations.  We expect this to increase as the remaining allocations to higher-yielding, private debt are made in the coming weeks."

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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]

LEI: 549300P4FSBHZFALLG04

About NBMI

NBMI's investment policy is provide 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 2,300 professionals.

For six 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). The firm was awarded an A+ in every category in the latest 2020 Principles for Responsible Investment (PRI) report for our approach to ESG integration across asset classes. The firm manages $357 billion in client assets as of June 30, 2020. For more information, please visit our website at www.nb.com.

 

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