Investment trust RM Secured Direct Lending is to continue focusing on sourcing social infrastructure assets after finalising its last hotel loan.
The direct lending-focused investment trust revealed in its monthly report for January that it is finalising due diligence and documentation for a loan secured against a hotel, which will conclude the pipeline for this sector and said it will now concentrate on healthcare and childcare opportunities secured on business assets and real estate.
The report revealed a net asset (NAV) total return for the month of 0.51 per cent.
This takes the one year NAV total return to eight per cent and the cumulative NAV total return since its initial public offering in 2016 to 18.4 per cent.
The ordinary share NAV as at 31 January was 98.31 pence per share, 0.52 pence higher than at 31 December 2019.
This comprises of interest income net of expenses of 0.60 pence per share and a decrease in portfolio valuations of 0.08 pence per share which includes all credit and currency movements.
The closed-ended investment trust established to invest in a portfolio of secured debt instruments, had a portfolio consisted of 34 debt investments at the end of last month.
These had a weighted average yield of 8.58%, spread across 13 sectors, with a percentage split between fixed and floating rate of 55 per cent to 45 per cent.
The portfolio consists of 59 per cent in bilateral private loans; 36 per cent in club or syndicated private loans and five per cent in more liquid corporate debt.
Consequently, private debt investments represent 95 per cent of the portfolio.
In January RM Secured Direct Lending saw six further drawdowns to loans previously documented with two borrowers.
The loans related to social infrastructure and energy efficiency.
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