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           £0.8179          GG00BXDZMK63     31 December 2020 
 
UKML RNS: Commentary accompanying UK Mortgages Limited December 2020 NAV 
 
The UKML NAV per share was calculated for December 2020 month end at 81.79 
pence per share, an increase of 0.36 pence per share. 
 
Alongside the regular monthly income generated by the Company's investments, 
the key drivers for the movement in the NAV for this period have been the 
updated IFRS 9 Expected Credit Loss (ECL) provisioning assessment and the hedge 
effectiveness calculations both of which occur semi-annually. With regard to 
ECL provisioning, there has been a significant reduction in the number of loans 
taking a payment holiday, with current levels having fallen to a fraction of 
the amount at the previous calculation in June 2020, which essentially 
coincided with the peak take-up. The effect of this has been to partially 
reduce the required provisioning, despite continuing to model an enhanced level 
of stress on loans where the borrowers have resumed payments following the end 
of a payment holiday. In addition, the results of hedge effectiveness 
calculations have continued to show a high level of effectiveness, with a net 
small improvement. 
 
Elsewhere, the positive impact of the above factors was partially offset by 
several one-off fees relating to the recent shareholder vote. 
 
Meanwhile, the Company's investments continue to perform in line with 
expectations. 
 
More details will be available in the Company's next factsheet to be published 
shortly. 
 
Enquiries: 
 
Northern Trust International Fund Administration Services (Guernsey) Limited 
 
Andrew Bonham               44 (0)1481 745302 
 
Date: 16 February 2021 
 
 
 
END 
 
 

(END) Dow Jones Newswires

February 16, 2021 10:02 ET (15:02 GMT)