RM Infrastructure Income PLC Net Asset Value(s) (4808W)

TIDMRMII TIDMTTM

RNS Number : 4808W

RM Infrastructure Income PLC

18 April 2023

 
                               RM Infrastructure Income Plc 
 
                                ("RMII" or the "Company") 
 
                                LEI: 213800RBRIYICC2QC958 
 
                                     Net Asset Value 
 
       NAV Performance 
        The Company's NAV % Total Return for the month of March was 0.26%, 
        which brings the NAV % Total Return for the quarter to 1.33%. 
        The NAV % Total Return over the last twelve months was 4.43% 
        and inception to date 39.05%. 
        The Ordinary Share NAV as at 31(st) March 2023 was 92.10 pence 
        per share. This monthly NAV return of -1.385 pence per share 
        arose primarily from the ex-dividend effect of the 1.625 pence 
        per share ordinary dividend for the period Q4 2022, declared 
        and paid in March 2023. Otherwise, there was positive interest 
        income, net of expenses, of 0.52 pence per share and a decrease 
        in portfolio valuations of 0.28 pence per share. 
          Summary for March 2023 (pence 
                    per share) 
         Net interest income      +0.520p 
         Change in portfolio 
          valuations              -0.280p 
         Payment of Dividend 
          (Q4 2022)               -1.625p 
         Net NAV Movement         -1.385p 
        -----------------------  -------- 
 
 
        Market Update 
        A volatile quarter for markets as a banking crisis caused a pullback 
        to an otherwise strong start to the year. Global equity markets 
        generally finished the quarter higher, and in the rates market, 
        UK government bond yields remained broadly unchanged in the 5-year 
        part of the curve although short dated UK interest rate expectations 
        continued to rise as 1 year UK government bond yields rose 30bp 
        to circa 3.9%. 
        Credit spreads saw a material reduction in the risk premium with 
        the Markit ITRX European Crossover Index opening at 475bps in 
        January and closing at 425bp at the end of the quarter. Spreads 
        briefly touched 400bps before widening during March when there 
        were some regional bank failures within the US and further questions 
        were being asked on the stability of the banking system. 
        RMII has significantly outperformed benchmark loan and bond indices 
        in 1Q2023 as outlined in the below table: 
                                           Total Return 
                                       1yr      3yr      5yr 
        --------------------------  -------- 
         RM Infrastructure Income 
          NAV                         4.43%    30.73%   32.63% 
         RM Infrastructure Income 
          Share Price                -8.10%    35.39%   11.89% 
         S&P European Leveraged 
          Loan Index                 -4.18%    12.63%   -6.02% 
         Ishares Core Corp Bond 
          UCITS ETF GBP              -10.95%   -7.81%   -4.18% 
                                    --------  -------  ------- 
 
        Portfolio Update 
        The Investment Manager remains confident with regards to the 
        low interest rate sensitivity of the portfolio. This is largely 
        driven by the short average duration nature of the portfolio, 
        which is currently 2.13 years. This in turn means that loans 
        can be repaid relatively quickly and reinvested at higher yields. 
        This has been evidenced during the last twelve months as a number 
        of loans written over previous years were repaid and the capital 
        redeployed into higher yielding loans. In conjunction with this, 
        the Portfolio Manager has been seeking to increase security with 
        a move up the capital structure by recycling this capital into 
        senior secured loans and reducing mezzanine or junior lending 
        exposure. The portfolio yield has thus increased over the quarter 
        by 50bps from 9.15% to 9.65%. 
        Increased investments 
         *    Environmental Infrastructure - Energy Efficiency, Ref 
              96: GBP135k 
 
 
         *    Social Infrastructure - Care Home, Ref 97a&b: 
              c.GBP120k 
 
 
         *    Social Infrastructure - Health and Well-being, Ref 
              76: GBP100k 
 
 
         *    Social Infrastructure - Aged Care, Ref 88 : c.GBP38k 
 
 
 
        Repayments: 
         *    Environmental Infrastructure - Energy Efficiency, Ref 
              62 : GBP20k 
 
 
         *    Environmental Infrastructure - Energy Efficiency, Ref 
              63 : c.GBP47k 
 
 
         *    Non-Core - Asset Finance, Ref 61: c.GBP4,500k 
 
 
         *    Environmental Infrastructure - Renewable Heat 
              Incentive, Ref 9&52 : c.GBP61k 
 
 
         *    Social Infrastructure - Child Care, Ref 95a&b: GBP40k 
 
 
         *    Social Infrastructure - Health and Well-being, Ref 
              94a: GBP35k 
 
 
 
        Shareholder Consultation Update 
        In Q2 2021, the Company consulted widely with Shareholders regarding 
        a potential liquidity opportunity, to consider their liquidity 
        needs and structure a set of proposals that were suitable and 
        cost effective, with the result being that Shareholders were 
        overwhelmingly supportive of the Company's performance, particularly 
        during the pandemic and its recovery, as well as the updated 
        investment focus and strategy. Based on this feedback and the 
        lack of demand for a near-term liquidity opportunity, the Board 
        determined that the next liquidity opportunity consultation would 
        be put to Shareholders in 2024, as per the Company's prospectus, 
        or, should the Company's shares trade at a discount over the 
        six-month period from 1 October 2022 to 31 March 2023, the Board 
        would bring the liquidity opportunity consultation forward by 
        12 months to prior to the 2023 AGM. 
 
        The Company has generated a NAV total return of 9.24% during 
        2021 and 4.98% during 2022, outperforming many other fixed income 
        comparables. However, the Company's shares, in common with many 
        investment trusts, have traded at a discount over the last six 
        months, and accordingly the Board confirms it is bringing forward 
        the liquidity opportunity consultation and will consult with 
        shareholders shortly. 
 
        RMII has paid consistent dividends since IPO and as announced 
        in March 2023, based on the current run rate, the Company is 
        on track to generate a net interest income of more than 7 pence 
        per share for FY2023, in excess of the annual dividend target 
        of 6.5 pence(1) . Since the last consultation and in line with 
        the Company's refreshed investment focus on social & environmental 
        infrastructure, the Company has increased exposures to its core 
        target sectors of [accommodation, healthcare, childcare & education, 
        clean energy & renewables, waste management and energy efficiency 
        & carbon reduction] with 58% of the portfolios committed capital 
        invested within social & environmental infrastructure. 
 
        Peel Hunt and Singer Capital Markets, joint financial advisers 
        and brokers to the Company, will contact Shareholders in due 
        course. Any Shareholders not contacted by Peel Hunt or Singer 
        Capital Markets wishing to participate in the shareholder consultation 
        are invited to contact Peel Hunt or Singer Capital Markets. 
 
        Any retail Shareholder who wishes to participate in the consultation 
        should contact their own broker / independent financial adviser 
        for advice or the Company Secretary via email ([e-mail]). 
        Neither the Company nor its advisers can provide any advice to 
        Shareholders on this matter. If you are in any doubt about the 
        contents of this announcement you are recommended to seek your 
        own financial advice from an independent financial adviser who 
        is authorised under the Financial Services and Markets Act 2000 
        (as amended) if you are in the United Kingdom, or from another 
        appropriately authorised independent financial adviser if you 
        are in a territory outside the United Kingdom. 
 
        A further announcement will be made following the Board's review 
        of the shareholder consultation. 
 
 The Company also announces that the Monthly Report for the period 
  to 31 March 2023 is now available to be viewed on the Company 
  website: 
 https://rm-funds.co.uk/rm-infrastructure-income/rm-funds-investor-monthly-fact-sheets-2/ 
 
 
 
 
 
   For further information, please contact: 
 RM Capital Markets Limited - Investment Manager 
 James Robson 
 Thomas Le Grix De La Salle 
 Tel: [phone] 
 
 FundRock Management Company (Guernsey) Limited - AIFM 
 Chris Hickling 
 Dave Taylor 
 Tel: [phone] 
 
 
 Apex Listed Companies Services (UK) Limited - Administrator 
  and Company Secretary 
 Brian Smith 
 Ciara McKillop 
 Tel: [phone] 
 
 Singer Capital Markers Advisory LLP - Financial Adviser and 
  Broker 
 James Maxwell 
 Asha Chotai 
 Tel: [phone] 
 
 Peel Hunt LLP - Financial Adviser and Broker 
 Luke Simpson 
 Liz Yong 
 Tel: [phone] 
 
 
 
 
 
 
 
 
   About RM Infrastructure Income 
 
 RM Infrastructure Income Plc ("RMII" or the "Company") is a closed-ended 
  investment trust established to invest in a portfolio of secured 
  debt instruments. 
 
 The Company aims to generate attractive and regular dividends 
  through loans sourced or originated by the Investment Manager 
  with a degree of inflation protection through index-linked returns 
  where appropriate. Loans in which the Company invests are predominantly 
  secured against assets such as real estate or plant and machinery 
  and/or income streams such as account receivables. 
 

 For more information, please see 
 https://rm-funds.co.uk/rm-infrastructure-income/ 
 

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April 18, 2023 02:00 ET (06:00 GMT)