UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with registration number 60440 )
LEI 549300388LT7VTHCIT59

Final Net Asset Value

UKML RNS: Commentary accompanying UK Mortgages Limited April 2019 NAV

The UKML NAV per share was calculated for April 2019 month end at 81.00 pence per share.

The 1.08 pence decrease in the NAV was primarily driven by the dividend payment of 1.5 pence per share, while the other significant drivers of NAV performance this month were positive. The flattening of the yield curve, seen over the past months, reversed slightly in April which led to an increased pull to par effect from the Oat Hill 1 portfolio and fair value swap movements were in favour of the Fund, as anticipated in last month’s NAV release. However, it is notable that the curve has subsequently flattened again so these drivers will be less positive in the following month.

Notably, April saw the securitisation of the Cornhill 2 portfolio into Barley Hill 1, while Cornhill 2 continues to acquire loans to sell into Barley Hill 1 to fill the pre-funding feature included in the transaction. As such, £730k has been set aside for closing costs and any surplus will be gradually released into the NAV over the coming months as Cornhill 2 is wound down.

The Fund’s investments continue to perform exceptionally well, in line with expectations and more details will be available in the Fund’s next factsheet.

Enquiries:

Northern Trust International Fund Administration Services (Guernsey) Limited

Andrew Bonham 44 (0)1481 745302

Date: 20 June 2019