Move to liquidation accounting under US GAAP

NB Global Monthly Income Fund Ltd

06 November 2023

 

06 November 2023

NB GLOBAL MONTHLY INCOME FUND LIMITED

(the "Company")

(LSE: NBMI, LEI: 549300P4FSBHZFALLG04)

Move to liquidation accounting under US GAAP

The Company's Investment Policy was changed in January 2023 to pursue a Managed Wind-down strategy. Under US Generally Accepted Accounting Principles ("US GAAP") (the basis on which the Company accounts), a move to a Managed Wind-down strategy results in the need for the Company to prepare its annual audited financial statements under a liquidation basis of accounting. Therefore, this basis of accounting will be used for the financial statements of the year ending 31 December 2023.

US GAAP liquidation accounting requires the Company to accrue, in the financial year that a liquidation strategy is announced, all future ongoing operating fees and expenses that the Company might bear prior to actual liquidation. This accrual includes but is not limited to the Company's best estimate of all forward looking:

·      Investment management and services fees

·      Administration and professional fees

·      Directors' fees

·      Liquidation fees

As such and for the avoidance of doubt, this accrual includes all the estimated fees and expenses for the following financial year (2024) by the end of which the Company expects to be liquidated.

The Company's assessment of this accrual is approximately $900,000 (US dollars), 1.3% of the 2 November NAV. This accrual has been reflected in the 3 November NAV, announced today. The Board and Management will continue to reassess the accrual and adjust it as necessary as the Company progresses toward final liquidation, using best efforts to minimise costs.

For further information, please contact:

Neuberger Berman Europe Limited (Manager) Elizabeth Papadopoulos	[phone]
Deutsche Numis (Broker) Hugh Jonathan Matt Goss	[phone]
Sanne Fund Services (Guernsey) Limited (Company Secretary) Matt Falla Gemma Berry	[phone]

 

END