16 Mar 2020 07:00
RM Secured Direct Lending Plc and RM ZDP PLC |
("RMDL" or the "Company") |
LEI: 213800RBRIYICC2QC958 |
Net Asset Value |
RMDL announces that its unaudited net asset value per ordinary share as at 29 February 2020, on a cum income basis, was 98.74 pence (31 January 2020: 98.31 pence). |
RM ZDP PLC announces that the unaudited accrued capital entitlement per ZDP share as at 29 February 2020 was 106.75 pence (31 January 2020: 106.47 pence).
NAV The NAV total return for the month was 0.43%. This takes the one-year NAV total return to 7.7% and the cumulative NAV total return since IPO to 18.9%. The Ordinary Share NAV as at 29th February 2020 was 98.74 pence per share, which is 0.43 pence higher than at 31st January 2020, comprising interest income net of expenses of 0.67 pence per share and a decrease in portfolio valuations of 0.24 pence per share which includes all credit and currency movements. The Board and the Manager believe that the discount to NAV at which the shares are currently trading is not down to any fundamental reasons relating to the portfolio. The Board is monitoring the situation. Update on COVID-19 & portfolio resilience During the month and post month end, both equity and credit markets experienced significant weakness which negatively impacted the Fund's share price but had limited impact on the Portfolio's externally evaluated NAV as at 29th February. As the dynamic COVID-19 situation evolves, the Manager is closely monitoring its portfolio. It is the view of the Manager that RMDL's portfolio of secured debt investments offers downside protection to capital, reduced volatility and above average yields given its diversification across real estate, hard assets, social infrastructure and "non-cyclical" mid-market-corporates. The majority of the portfolio (66%) is evaluated by the Valuation Agent using information supplied by the Manager. The remaining 34% of the portfolio is marked via third party pricing source Markit, using the bid price of each security at month end. The Manager therefore believes that this portfolio valuation methodology at fair value is the most appropriate for investors and ensures that the portfolio NAV is reflective of the actual underlying security values. As at 13th March, secondary spreads have softened, and although the Manager expects this will affect portfolio valuations, it has seen no material portfolio valuation moves. Such pricing softness is expected to be temporary as markets digest the evolving situation, with the portfolio performing as expected. These Mark to Market movements are not directly credit related but are reflective of overall negative sentiment. The dividend cover remains robust providing a read across to underlying credit quality of the portfolio. Portfolio Activity As at the 29th February, the Company's portfolio consisted of 34 debt investments with a weighted average yield of 8.57%, diversified across 13 sectors, with the percentage split between fixed and floating rate of 54% to 46%. The Manager is focused on reducing interest rate risk by keeping the tenors on fixed rate investments generally short dated. The portfolio structure is 58% in bilateral private loans; 37% in club or syndicated private loans; and 5% in more liquid corporate debt. Consequently, private debt investments represent 95% of the portfolio. The transaction highlights for the month are as follows: § Thee further drawdowns to Loans with a previously documented borrower relating to Energy Efficiency Receivables and a repayment of a property bridging Loan.
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The Company also announces that the Monthly Report for the period to 29 February 2020 is now available to be viewed on the Company website: |
https://rmdl.co.uk/investor-centre/monthly-factsheets/ |
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For further information, please contact: |
RM Capital Markets Limited - Investment Manager |
James Robson |
Pietro Nicholls |
Tel: 0131 603 7060 |
International Fund Management - AIFM |
Chris Hickling |
Shaun Robert |
Tel: 01481 737600 |
Tulchan Group - Financial PR |
James Macey White |
Elizabeth Snow |
Tel: 0207 353 4200 |
PraxisIFM Fund Services (UK) Limited - Administrator and Company Secretary |
Anthony Lee |
Ciara McKillop |
Tel: 020 7653 9690 |
Nplus1 Singer Advisory LLP - Financial Adviser and Broker |
James Maxwell |
Lauren Kettle |
Tel: 020 7496 3000 |
About RM Secured Direct Lending |
RM Secured Direct Lending Plc ("RMDL" 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://rmdl.co.uk/investor-centre/monthly-factsheets/ |