NAV

The NAV % Total Return for August 2023 was -0.44%, which takes the NAV % Total Return to +1.69% over the past six months, and +3.95% over the past 12 months.

The NAV as at 31^st August 2023 was 91.80 pence per Ordinary Share, which was 0.40 pence lower than at 31^st July 2023. This overall loss comprised positive interest income of 0.59 pence per Ordinary Share, net of expenses, and a decrease in portfolio valuations of 0.99 pence per Ordinary Share.

Portfolio Activity

As at 31^st August 2023, the Company's invested portfolio had an aggregate valuation of £122 million across 38 investments. The average yield was 10.23%, with a weighted average loan life remaining of circa 1.79 years¹⁰. Overall, the portfolio is 96% invested in private market assets and 4% in public bonds. The Investment Manager's focus on creating a portfolio of high yielding and short duration loans that do not hold significant exposure to interest rate movements, ensures the portfolio remains well positioned against any further interest rate increases by global central banks.

The loss for the period was predominantly driven by investment loan ref #74, a junior secured loan secured against 5 fully operational student accommodation assets in the UK, as the value was brought down to reflect the appointed receiver's latest recovery update.

Update on Strategic Review

On 6^th September 2023, RMII's Board announced that following extensive consultation with its advisers and shareholders regarding its strategic review of the Company, and despite having received various approaches from third parties, the Board has decided to put forward proposals for a managed wind-down of the Company.

The Board intends to publish a shareholder circular by the end of October 2023 to convene a general meeting at which it will seek approval from shareholders to the managed wind-down and any related matters required to facilitate and orderly realisation.

Shareholders should also note that prior to publication of the circular, RM will explore the possibility of offering an opportunity for shareholders who wish to maintain their exposure to the strategy to roll-over their interests in RMII into an alternative fund structure to be managed by RM.