Net Asset Value(s)

RNS Number : 7274S

RM Infrastructure Income PLC

18 July 2022

 

RM Infrastructure Income Plc

("RMII" or the "Company")

LEI: 213800RBRIYICC2QC958

Net Asset Value

NAV The Company's NAV % Total Return for the month of June was -0.02%, which brings the NAV % Total Return for the quarter to +0.80%. The NAV % Total Return over the last twelve months was +5.26%, since January 2020 pre-COVID-19 pandemic the NAV % Total Return has been +13.39% and inception to date has been 34.22%. The Ordinary Share NAV as at 30th June 2022 was 93.68 pence per share. This monthly NAV return of -1.644 pence per share arose primarily from the ex-dividend effect of the 1.625 pence per share ordinary dividend for the period Q1 2022, declared in May 2022 and paid in June 2022. Otherwise, there was positive interest income, net of expenses, of 0.616 pence per share and a decrease in portfolio valuations of 0.635 pence per share. Summary for June 2022 (pence per share) Net interest income +0.616p Change in portfolio valuations -0.635p Payment of Dividend (Q1 2022) -1.625p Net NAV Movement -1.644p The closing mid-market share price at the quarter-end was 90.75 pence which is 4.25 pence per share lower than the opening mid-market share price at the start of the year and represents a total shareholder return of 8.16% over the twelve months to 30th June 2022.  Market Update The quarter saw continued weakness in credit spreads and an increase in government bond yields. The Markit ITRX European Crossover Index rose from 338 to close the quarter at 579 and since the beginning of the year this index has doubled from 240 and is now trading at the widest level since the brief "peak-fear" moment in March 2020 and then not since the European sovereign crisis of 2012. Benchmark 10-year UK government bond yields rose 62bps over the period from 1.6% to 2.2%. Overall, with higher government rates and wider credit spreads the all-in yields are starting to look very attractive across a variety of names. Furthermore, the general yield compression we saw during the QE years has reversed and now we are seeing healthy dispersion with risks starting to be priced more favourably amongst issuers. RMII has significantly outperformed benchmark loan and bond indices over the first half of 2022 with a share price total return of -1.06% versus -7.62% for the S&P European Leverage Loan Index Total Return and -13.40% for the Markit iBoxx EUR High Yield Index. Total Return YTD ITD RM Infrastructure Income NAV +2.68% +34.22% RM Infrastructure Income Share Price -1.06% +28.23% S&P European Leveraged Loan Index -7.62% +8.73% Makit iBoxx EUR Liquid High Yield TRI -13.40% +0.21% Portfolio Activity   As described above, publicly observable credit spreads have been very weak and during the month of June the Level 2 assets were marked to the bid side of the market, using Markit pricing, and after discussions with the Company's independent valuation agent the Level 3 assets had a generic widening of 20bp applied. This generic widening of 20bp reflects the shorter duration of the portfolio combined with the covenanted higher yielding and bespoke nature of the loans held. The overall portfolio yield has thus increased from 8.60% to 8.73% over the month.  With persistently high inflation levels and likely further interest rate hikes by global central banks, the Investment Manager remains confident with regards to the low interest rate sensitivity of the portfolio. This is largely due to the short duration nature of the portfolio which is currently 1.91 years.  This means that loans can be repaid relatively quickly and reinvested at higher yields. The second quarter of 2022 was active in terms of new investments and scheduled drawdowns totalling circa £13.5m under existing committed facilities. The new investments increase the portfolio's weighting towards its refreshed target sectors. Repayments and divestments received throughout the quarter totalled circa £1.3m. The transactions for the quarter are shown below. Increased investments · Social Infrastructure - Aged Care, Ref 88 : £1,287,805 drawdown under a senior secured committed construction facility. · Social Infrastructure - Health & Well-being, Ref 76 : £150,000 drawdown under a senior secured committed facility. · Environmental Infrastructure - Renewable Heat Incentive, Ref 52 : £400,000 drawdown secured against Renewable Heat Incentive (RHI) cash flows. New Investments · Social Infrastructure - Health & Wellbeing, Ref 94.a : £350,000 senior secured Recovery Loan Scheme (RLS) term loan facility. · Social Infrastructure - Aged Care, Ref 97 : £6,000,000 senior secured committed term loan construction facility, partly funded via the RLS regime. · Social Infrastructure - Childcare, Ref 95 : £3,000,000 Senior secured committed term loan facility, partly funded via the RLS regime. · Social Infrastructure - Accommodation, Ref 93 :  £2,000,000 Junior secured RLS term loan facility. · Environmental Infrastructure - Energy Efficiency, Ref 96 : £300,000 drawdown under a senior secured committed facility to a company manufacturing and distributing energy efficiency products in the UK.

The Company also announces that the Monthly Report for the period to 30 June 2022 is now available to be viewed on the Company website:

https://rm-funds.co.uk/rm-infrastructure-income/rm-funds-investor-monthly-fact-sheets-2/

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For further information, please contact:

RM Capital Markets Limited - Investment Manager

James Robson

Pietro Nicholls Thomas Le Grix De La Salle

Tel: [phone]

International Fund Management - AIFM

Chris Hickling

Shaun Robert

Tel: [phone]

Tulchan Group - Financial PR

Elizabeth Snow

Oliver Norgate

Tel: [phone]

Sanne Fund Services (UK) Limited - Administrator and Company Secretary

Brian Smith

Ciara McKillop

Tel: [phone]

Singer Capital Markers Advisory LLP - Financial Adviser and Broker

James Maxwell

Asha Chotai

Tel: [phone]

Peel Hunt LLP - Financial Adviser and Broker

Luke Simpson

Liz Yong

Tel: [phone]

About RM Infrastructure Income

RM Infrastructure Income Plc ("RMII" or the "Company") is a closed-ended investment trust established to invest in a portfolio of secured debt instruments.

The Company aims to generate attractive and regular dividends through loans sourced or originated by the Investment Manager with a degree of inflation protection through index-linked returns where appropriate. Loans in which the Company invests are predominantly secured against assets such as real estate or plant and machinery and/or income streams such as account receivables.

For more information, please see

https://rm-funds.co.uk/rm-infrastructure-income/

 

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