UK Mortgages Ltd Net Asset Value(s)

 
TIDMUKML 
 
UK MORTGAGES LIMITED 
 (a closed-ended investment company incorporated in Guernsey with registration 
                                 number 60440) 
 
                           LEI 549300388LT7VTHCIT59 
 
Final Net Asset Value 
 
         FUND NAME                  NAV                ISIN             NAV DATE 
 
UK Mortgages Limited              £0.7794          GG00BXDZMK63      31 August 2021 
 
UKML RNS: Commentary accompanying UK Mortgages Limited August 2021 NAV 
 
The UKML NAV per share was calculated for August 2021 month end at 77.94 pence 
per share, an increase of 0.61 pence per share. 
 
NAV performance in August was primarily driven by the income generated from the 
Company's underlying investments which, as highlighted in previous 
communications, continues to grow from one month to the next and comfortably 
exceeds the 0.375 pence per share necessary to cover the monthly equivalent of 
the dividend. 
 
Incorporated in this month's figure, and similar to the previous month, the 
further upwards shift in the yield curve has the dual effect of increasing the 
pull-to-par of the Oat Hill No. 2 transaction (purchased at a discount) whilst 
compressing the premium erosion from the Company's other portfolios which were 
all purchased above par. This represented about 0.06 pence per share of the 
monthly NAV gain, alongside a number of smaller items. 
 
As mentioned in the most recent factsheet, the Company's hedging structure 
effectively nullifies any fixed-rate exposure in our underlying mortgage pools, 
essentially generating floating rate returns for the Company, which thereby 
benefits in two ways from rises in interest rates. Absolute income will be 
higher when the underlying interest rate benchmarks (e.g. Sonia) rise, and as 
the term yield curve rises or steepens this accelerates the dual pull-to-par 
effect highlighted above. 
 
The Company's investments continue to perform in line with expectations, and 
further details will be available in the Company's next factsheet. 
 
 
Enquiries: 
 
Northern Trust International Fund Administration Services (Guernsey) Limited 
Andrew Bonham               44 (0)1481 745302 
Date: 18 October 2021 
 
 
 
END

(END) Dow Jones Newswires

October 18, 2021 08:10 ET (12:10 GMT)

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