Net Asset Value(s)

RNS Number : 9034M

RM Infrastructure Income PLC

17 January 2023

 

RM Infrastructure Income Plc

("RMII" or the "Company")

LEI: 213800RBRIYICC2QC958

Net Asset Value

NAV & Share price performance The Company's NAV % Total Return for the month of December was 0.66%, which brings the NAV % Total Return for the quarter to 1.50%. The NAV % Total Return over the last twelve months was 4.98% and inception to date 37.22%. The Ordinary Share NAV as at 31st December 2022 was 92.50 pence per share. This monthly NAV return of -1.009 pence per share arose primarily from the ex-dividend effect of the 1.625 pence per share ordinary dividend for the period Q3 2022, declared in November 2022 and paid in December 2022. Otherwise, there was positive interest income, net of expenses, of 0.568 pence per share and an increase in portfolio valuations of 0.048 pence per share. Summary for December 2022 (pence per share) Net interest income +0.568p Change in portfolio valuations +0.048p Payment of Dividend (Q3 2022) -1.625p Net NAV Movement -1.009 p During the month of December 2022 and post period-end, the Company purchased c.250k shares as part of its buyback program. The Board and the Investment Manager remain focused on reducing the discount to Net Asset Value. Market Update Peak inflation fear and the instability created by Liz Truss had started to pass as the quarter began, as evidenced by government bond yields starting to fall again. Overall, it was a strong quarter for both risk assets and government bonds as equities rallied and the 2 -year UK government bond yield fell from a high of circa 4.4% to finish the period at circa 3.5%. There was a similar shift in yields for the long end of the government bond market, which had been particularly affected by LDI unwinds, with cash prices for the UKT 0.5% 61 touching 28 cents on the £ in early October and finishing the quarter at 35 cents on the £. Credit spreads saw a material reduction in the risk premium with the Markit ITRX European Crossover Index peaking at 650 in early October and then steadily reducing over the period to finish at 475. Post period end this trend has continued with spreads touching nearly 400 today. It is likely that these are the tightest levels we will see in this index for the remainder of the year and thus the widening applied to the Level 3 assets, of 70bps in June and September 2022, have not been reversed by the Investment Manager nor the Valuation Agent until we see economic indicators giving indications that can justify this spread compression within these more liquid indices. In the view of RM Funds, this is pragmatic and what investors would expect; to reduce volatility within the fund as we expect further spread widening from these more liquid indices during 2023. RMII has significantly outperformed benchmark loan and bond indices in FY2022 as outlined in the below table; Total Return 1yr 3yr 5yr RM Infrastructure Income NAV 4.98% 16.54% 33.00% RM Infrastructure Income Share Price -3.75% 7.16% 19.11% S&P European Leveraged Loan Index -7.05% -7.06% -8.13% Ishares Core Corp Bond UCITS ETF GBP -15.40% -14.52% -7.50% Portfolio Update The Investment Manager remains confident with regards to the low interest rate sensitivity of the portfolio. This is largely driven by the short duration nature of the portfolio, which is currently 1.50 years, which in turn means that loans can be repaid relatively quickly and reinvested at higher yields. This has been evidenced during the quarter as a number of loans written over previous years were repaid and the capital redeployed into higher yielding loans. In conjunction with this, the portfolio manager has been seeking to increase security with a move up the capital structure by recycling this capital into senior secured loans and reducing mezzanine or junior lending exposure. The portfolio yield has thus increased over the quarter by 28bps from 8.87% to 9.15%. Increased investments · Social Infrastructure - Aged Care, Ref 88 : c.£5,000 · Environmental Infrastructure - Energy Efficiency, Ref 96 : £70,000 · Non-Core - Hotel & Leisure, Ref 69: £7,500 New Investments · Social Infrastructure - Care Home, Ref 97a&b : £6,200,000 committed (c.£1.1m drawn in period) Repayments: · Environmental Infrastructure - Energy Efficiency, Ref 96 : £70,000 · Environmental Infrastructure - Energy Efficiency, Ref 62 : £1,000,000 · Environmental Infrastructure - Renewable Heat Incentive, Ref 9&52 : £150,000 · Social Infrastructure - Childcare, Ref 95a&b : £120,000 · Social Infrastructure - Health and Well-being, Ref 94: c.£7,700 · Social Infrastructure - Childcare & Education, Ref 91: £1,550,000 · Non-Core - Asset Backed Lending, Ref 64: £2,750,000 · Non-Core - Asset Backed Lending, Ref 60: £2,000,000 · Non-Core - Hotel & Leisure, Ref 67: £950,000 A quarterly update webinar from the Investment Manager is scheduled for Tuesday 19th January 2-3pm and registration can be made here: https://us06web.zoom.us/webinar/register/WN_oBbZJhtFRiWqkGlu_7t6DQ .

The Company also announces that the Monthly Report for the period to 30 September 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

Thomas Le Grix De La Salle

Tel: [phone]

FundRock Management Company (Guernsey) Limited - AIFM

Chris Hickling

Shaun Robert

Tel: [phone]

Tulchan Group - Financial PR

Elizabeth Snow

Oliver Norgate

Tel: [phone]

Apex Listed Companies 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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