UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with
registration number 60440)
Final Net Asset Value
LEI 549300388LT7VTHCIT59
| FUND NAME |
NAV |
ISIN |
NAV DATE |
| UK
Mortgages Limited |
£0.8041 |
GG00BXDZMK63 |
31
December 2021 |
UKML RNS: Commentary accompanying UK
Mortgages Limited December 2021
NAV
The UKML NAV per share was calculated for December 2021 month end at 80.41 pence per share, an increase of
1.47 pence per share.
The December NAV included the semi-annual recalculation of the
Expected Credit Loss provision, under IFRS 9 accounting standards,
which resulted in a significant reduction to the provision,
uplifting the NAV by 0.49 pence per
share. This was primarily due to a £4m improvement in arrears in
the CHL portfolio, along with a decrease in the size of the TML
portfolios due to mortgage repayments and thus a corresponding fall
in provisions and some minor adjustments to our economic forecasts
and stress weightings to reflect the improvement in the economic
outlook and increased hopes of an impending end to the Covid-19
pandemic.
Further to this, the semi-annual recalibration of the hedge
effectiveness also resulted in an increase of 0.35 pence per share to the NAV, as the swaps
held against the portfolios of mortgage loans were deemed to be
more effective than previously, partially due to the mortgage
repayments in the TML portfolio, with a number of hedges having
thereby expired, and secondly due to some refinements made to the
hedging profiles of the portfolios during the second half of
2021.
Further to these semi-annual adjustments, the ongoing positive
running income being generated by the Company’s underlying
investments continued to increase, in the most part due to ongoing
growth in the second Keystone portfolio (Cornhill No.7) and
contributed the net 0.63 pence per
share remainder (an increase of 0.04
pence per share from the previous month) of the positive NAV
performance for the month.
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: 17 February
2022