Results analysis from Kepler Trust Intelligence

RNS Number : 1965W

NB Global Monthly Income Fund Ltd

21 April 2021

 

NB Global Monthly Income Fund (NBMI)

21/04/2021

Results analysis from Kepler Trust Intelligence

NB Global Monthly Income Fund (NBMI) reported results for the year ending 31 December on Tuesday 20 April 2021. During the year the strategy and name of the investment trust changed, allowing the manager to invest across traditional and alternative credit, including in privately arranged debt.

NBMI's results reflect almost three quarters under the old strategy. From the change of strategy to the end of the year, NAV total returns were 4.91%, considerably better than the -1.83% reported for the sterling share class for the 31/12/2020 - 08/09/2021 period. The dividends paid under the new strategy also rose in the later period.

Kepler View

NBMI's latest results show promising returns from the new strategy. This has been aided by the market environment, with positive results from vaccine trials kicking off a rally in credit markets in the final quarter of 2020 and the first quarter of 2021. However, the flexibility of the new mandate meant that the managers have been able to invest in bonds with higher credit risk to take advantage of the rally, and has also allowed the portfolio to make good returns from investing in special situations where an improving economic environment can help a company.

As well as the flexibility of the mandate, the monthly dividend and fee cut are other potentially advantageous changes to the mandate which could increase the attractiveness of the shares.

We note that while the trust's shares have traded on a persistent discount to NAV, there is more potential protection on that account under the new mandate…

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