TIDMNBMI
RNS Number : 2115T
NB Global Monthly Income Fund Ltd
21 July 2022
21 July 2022
NB Global Monthly Income Fund Limited ("NBMI")
Dividend Policy Update and Dividend Declaration
The board of NB Global Monthly Income Fund ("NBMI") is pleased
to announce a further increase to the Target Distribution [1] for
the remainder of 2022 to a rate of 6.75% 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 GBP0.00467 per
share paid monthly, equating to GBP0.05602 per share, per annum
The increased Target Distribution is equivalent to a 7.36% yield
on the 19 July 2022 closing share price of 76.1 pence [3] and
represents a 5.4% increase on the Target Distribution proposed on
28 April 2022. The new Target Distribution will, for the remainder
of the year, represent a level which is 19.7% higher than the total
dividends paid in 2021.
Rationale for Dividend Increase:
-- Since the start of this year, the current yield of the
portfolio has increased from 6.3% to 7.9% as of 30 June 2022. The
increase in portfolio yield can be attributed in part 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 15 July 2022
-------------------
1 month USD Libor 0.1% 2.12%
----------------- -------------
3 month USD Libor 0.2% 2.74%
----------------- -------------
-- 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 rationale for the increase bears close resemblance to the
items we described in our last dividend policy update announcement
of 28(th) April. The improvement in current yield and associated
dividend increase announced today is less 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 30 June 2022, the portfolio Yield to Maturity was 10.6%
Performance Update (as of 30 June 2022) - figures are returns
based on NAV
NB Global Monthly
Income Fund (Net
of Fees) %
-------------------------
Year to Date 2022 -9.31
------------------
Calendar year 2021 -7.70
------------------
Since Inception (30
Sep 2020) (annualised) 0.87
------------------
-- In the opinion of the Investment Manager, the NAV performance
of NBMI for the six months ending 30 June 2022 (net of fees) of
-9.31% was a relatively favourable outcome considering the
magnitude of drawdowns seen in most risk assets over the
year-to-date period. Below investment grade credit ended the
six-month period as at 30 June 2022 with negative returns driven by
Russia's invasion of Ukraine, markets calibrating how far the
central banks need to go on rates to fight persistent inflation,
slowing real economic activity and mixed earnings reports so far in
2022. That said, default rates remain well below average and just
above all-time lows given that balance sheets are generally in good
shape. While credit spreads widened given the risk aversion,
floating rate loans saw lesser drawdowns than longer dated fixed
income given the very low duration of the asset class and low
default rates.
-- NBMI's exposure to floating rate assets (66% as of 30 June 2022) in combination with credit selection-focused on issuers with more robust business models and those that could pass on price increases-as well as sector and credit quality rotations, all favourably impacted the relative investment results in the first half of 2022.
Dividend Declaration
In line with the updated dividend target, the Board announces an
interim dividend of GBP0.00467 per Sterling ordinary share for the
period 1 July 2022 to 31 July 2022.
The dividend will be payable on 12 August 2022 to ordinary
shareholders on the register as at close of business on 29 July
2022.
The dividend timetable is set out below:
Ex-dividend date 28 July 2022
Dividend record date 29 July 2022
---------------
Ordinary Shareholders dividend payment date 12 August 2022
---------------
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.
As notified in previous announcements, dividends declared by the
Company are no longer being paid by cheque and will only be paid to
shareholders electronically. Dividend confirmations are available
on the Link Share Portal, at www.signalshares.com .
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 18 July 2022
[3] As of 19 July 2022
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