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	£0.9016	GG00BXDZMK63	31st March 2017

UKML RNS: Commentary accompanying UK Mortgages Limited March 2017 NAV

The UKML NAV per share was calculated for March month-end at 90.16 pence per share.                                                                                             

The positive change in the NAV was driven by a number of factors:

With the fund’s investable capital now fully deployed following the acquisition of the CHL portfolio in February, the cash-drag effect of holding those un-invested funds has now been significantly reduced, and the acquired assets are levered via the initial warehouse financing and generating income for the fund. 

In addition, as was reported in the acquisition announcement, the loans in the CHL portfolio were originated a number of years ago and as such some of those mortgages will prepay from time to time (for example as borrowers sell their properties or refinance their loans). As the portfolio was purchased at a discount, these prepayments therefore generate a profit for the fund.  A small amount of prepayments were experienced this month, contributing to the NAV performance.

Furthermore, the amortised cost valuation of the portfolio benefited from the discounted purchase price and added to the performance.

Further details on the portfolio and pipeline will be available in the fund’s factsheet to be published shortly.

Enquiries:

Northern Trust International Fund Administration Services (Guernsey) Limited
Andrew Bonham 44 (0)1481 745302

Date: 12 May 2017

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