UK Mortgages Ltd - Net Asset Value(s)

UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration number 60440 )

Final Net Asset Value

FUND NAME	NAV	ISIN	NAV DATE
UK Mortgages Limited	£0.8982	GG00BXDZMK63	28th February 2017

UKML RNS: Commentary accompanying UK Mortgages Limited February NAV

The UKML NAV per share was calculated for February month-end at 89.82 pence per share.    

The change in the NAV is primarily driven by the upfront costs associated with the acquisition of the CHL portfolio close to the end of the month. As a result of this acquisition, the fund’s investable capital has now been fully deployed, with the estimated IRR of the portfolio being 8.28% at purchase. Work has already begun on the documentation, structuring and necessary third party engagements and interactions (rating agencies, legal advisors etc.) to enable the term out securitisation of the portfolio, as and when those items are completed and subject to market conditions.  Currently RMBS markets are performing strongly and therefore the cost of such funding is already cheaper than when the purchase was completed, which should further improve the leverage on the portfolio.

Meanwhile, the fund’s other investments continue to behave in line with or better than our expectations, as the Malt Hill No.1 (Coventry Building Society) portfolio continues to perform exceptionally well, whilst TML’s origination pipeline continues to grow.

Further details on the portfolio and pipeline will be available in the upcoming factsheet.

Enquiries:

Northern Trust International Fund Administration Services (Guernsey) Limited

Andrew Bonham 44 (0)1481 745302

Date: 13 April 2017

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