A quarter of the RM Infrastructure Income fund’s (RMII) assets under management are invested in the coronavirus business interruption loan scheme (CBILS).
The direct lending fund, which rebranded from RM Secured Lending in July, said involvement in the emergency lending scheme has boosted its assets.
RM Funds, which manages the fund, was accredited to provide CBILS loans in August 2020 and continued to do so until applications closed in March 2021.
Its half-year report, released this morning (10 August) also revealed that the number of senior secured loans and CBILS finance has increased from 46.8 per cent to 51 per cent of the portfolio.
“We have made excellent progress with our new investment focus, which our new company name now reflects, with further social and environmental infrastructure investments expected during the year,” Norman Crighton, the fund’s chair, said.
“The proportion of loans that benefit from the UK government guarantee due to CBILS increased to 25 per cent of gross assets during the period, offering investors a material credit enhancement of the portfolio.”
The update also revealed that the fund is “keeping an open dialogue” about involvement in future emergency lending schemes.
The fund, which specialises in secured social and environmental infrastructure lending, reported a net asset value (NAV) total return of five per cent for the six months to the end of June.
It is currently trading at a discount of 5.71 per cent to NAV.