TIDMNBMI
RNS Number : 7007J
NB Global Monthly Income Fund Ltd
28 April 2022
28 April 2022
NB Global Monthly Income Fund Limited ("NBMI")
Dividend Policy Update
The board of NB Global Monthly Income Fund ("NBMI") is pleased
to announce an increase to the Target Distribution[1] for the
remainder of 2022 to a rate of 5.8% of Net Asset Value per annum[2]
(net of fees and expenses) which equates to a target monthly
distribution for the remainder of 2022 of GBP0.00443 per share paid
monthly, equating to GBP0.05316 per share, per annum.
The increased Target Distribution is equivalent to a 6.125%
yield on yesterday's closing share price of 86.8 pence[3]and
represents a 6.75% increase on the Target Distribution proposed on
4 January 2022. The new Target Distribution will, for the remainder
of the year, represent a level which is 14% higher than the total
dividends paid in 2021.
Rationale for Dividend Increase:
-- In the first three months of the year, the current yield has
increased by 40bps to 6.67% as of 31 March 2022. In part, the
increase in portfolio yield can be attributed to the sharp rise in
interbank funding rates upon which the majority of the assets in
the portfolio are linked. Examples of these rates and how they have
increased are illustrated below:
31 December 2021 25 April 2022
-------------------
1 month USD Libor 0.1% 0.7%
----------------- --------------
3 month USD Libor 0.2% 1.22%
----------------- --------------
-- In the coming months, the Investment Manager anticipates the
current yield of the portfolio will increase further as the Libor
and SOFR fixings reset progressively to these higher levels.
-- The improvement in current yield and associated dividend
increase announced today is not a function of actions by the
portfolio managers or a change in the overall risk profile of the
fund, but rather primarily as described above associated with the
shift higher in yields, particularly for USD denominated assets
which represent over 80% of the portfolio.
-- As of 31 March 2022, the portfolio Yield to Maturity was 7.66%.
Performance Update (as of 31 March 2022) - figures are returns
based on NAV
NB Global Monthly
Income Fund (Net
of Fees) %
-------------------------
Year to Date 2022 -1.48
------------------
Calendar year 2021 7.76
------------------
Since Inception (30
Sep 2020) (annualised) 6.74
------------------
-- In the opinion of the Investment Manager, the NAV performance
of NBMI for the three months ending 31 March 2022 (net of fees) of
-1.48% represents a robust result in the context of the
commencement of the Russia-Ukraine conflict and sharply higher
inflation expectations contributing to generalized macroeconomic
volatility.
-- NBMI's exposure to floating rate assets (70% as of 31
December 2021) in combination with credit selection and sector
rotations effected during the second half of 2021 all contributed
to the outperformance of NBMI in comparison to a range of other
asset classes including to many fixed income categories. For
example, as outlined in the 31 March 2022 Factsheet, the ICE BofA
Global High Yield Constrained Index finished the quarter with a
return of -5.5%.
2022 Dividend Payment Dates
As previously confirmed, 2022 dividends will be paid on or
around the 10th business day of the following month in arrears. The
full schedule of record, ex-dividend, and payment dates for 2022 is
available at www.nbgmif.com under 'Fund Analysis'.
The Board would like to take the opportunity to remind our
shareholders that the Company became an "offshore fund" for the
purposes of the UK's offshore fund tax rules. The Company applied
to HMRC to treat the Company as a "reporting fund" for these
purposes, details of which can be found in the EGM circular dated
17 August 2020 available at www.nbgmif.com . Shareholders who are
in any doubt as to their tax position should consult an independent
professional adviser.
For further information, please contact:
Neuberger Berman Europe Limited (Manager)
Elizabeth Papadopoulos +44 (0) 20 3214 9078
Numis Securities Limited (Broker)
Hugh Jonathan
Matt Goss +44 (0) 20 7260 1000
Sanne Fund Services (Guernsey) Limited
(Company Secretary)
Matt Falla
Gemma Woods +44 (0) 1481 737 600
KL Communications (PR)
Charles Gorman
Will Sanderson +44 (0) 20 7995 6673
About NBMI
The Company 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.
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 25 countries, Neuberger Berman's diverse team has
over 2,400 professionals.
For seven consecutive years, Neuberger Berman 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). In 2020, the PRI named Neuberger Berman a Leader, a
designation awarded to fewer than 1% of investment firms for
excellence in Environmental, Social and Governance (ESG) practices.
The PRI also awarded Neuberger Berman an A+ in every eligible
category for our approach to ESG integration across asset classes.
The firm manages $437 billion in client assets as of December 31,
2021. For more information, please visit our website at www.nb.com
.
LEI: 549300P4FSBHZFALLG04
[1] This is only a target distribution and may not be achieved.
Actual distributions will be monitored against the Target
Distribution. The Target Distribution will be reviewed at least
annually (at the end of each financial year) and any amendment to
the target will be announced via RNS as required.
[2] As of 22 April 2022
[3] As of 27 April 2022
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