NAV & Share Price Performance

The Company's NAV % Total Return for the month of March was -1.02%, which brings the NAV % Total Return for the quarter to 0.50%.

The NAV % Total Return over the last twelve months was 3.97% and inception to date (ITD) 44.58%.

The Ordinary Share NAV as at 31^st March 2024 was 89.18 pence per share. This monthly NAV return of -2.558 pence per share arose primarily from (1) the ex-dividend effect of the 1.625 pence per Ordinary Share dividend for the period Q4 2023, declared and paid in March 2024; (2) the negative valuation adjustments for investment loans ref 66 & 67 in relation to the Company's hospitality & leisure exposure; and (3) investment loan ref 39 for which the Company's valuation agent uses a generic benchmark index that witnessed a significant yield widening during the reporting period. Otherwise, there was positive interest income, net of expenses, of 0.578 pence per share.

Finally the auditors have stated that due to accounting standards and as the Company is in Managed Wind-down, RMII is required to accrue for the total forecasted liquidation expenses at year end 2023. The published unaudited NAV as at 31 December 2023 did not reflect these forecasted liquidation costs. Thus, the Company is currently expecting a negative NAV adjustment of circa 1-2 pence per Ordinary Share versus the published but unaudited NAV of December 2023 of 90.35 pence per Ordinary Share. The exact NAV adjustment will be confirmed in the audited 2023 RMII Annual Accounts which are expected to be released shortly.  This adjustment will also be applied to NAVs published since the year end including this one (once the 2023 RMII Annual Accounts have been published).

Portfolio Activity

As at 31^st March 2024, the Company's invested portfolio had an aggregate nominal outstanding of circa £100 million across 30 investments. The average yield was 11.11%, with a weighted average loan life remaining of circa 1.31 years. Overall, the portfolio is 95% invested in private market assets and 5% in public bonds.

During the reporting quarter, investment loan ref 71 was fully repaid at par, or circa £1.7m.

At period end, the Company had no outstanding debt. Current cash balance stands at circa £8m of which circa £6m will be retained by the Company largely to fund undrawn committed facilities.

The Company has also been evaluating the most appropriate and effective method to return capital to shareholders and concluded that a tender offer is the most suitable structure.  Each tender offer will be subject to shareholder approval at a general meeting (including for the initial tender offer, resolutions required to create distributable reserves from share premium account).  Further details will be provided in due course however based on anticipated repayments it is currently expected that the first tender offer will take place in H2 2024.