LONDON, UK: Following a review of the company’s strategy and future prospects, the Board of NB Global Monthly Income Fund Limited has proposed for approval by shareholders to place the company into a managed wind-down and return of capital to shareholders. Capital distributions will always be made at the Board’s discretion.

As previously announced in September 2020 when the semi-annual cash exit facility was introduced, the Board stated that it intended to propose a wind-down of the Company should its net asset value (“NAV”) drop beneath £150m in the future.

As at 17 November 2022, the Company’s NAV was £178.6m and the Board anticipated that the likely participation in the December Cash Exit offer would result in the Company’s NAV falling below the £150m threshold.

That probable outcome, combined with the company’s persistent share price discount to NAV per share and recent feedback from shareholders, has led the Board to believe that it is in the best interests of the NB Global Monthly Income Fund and its shareholders as a whole that the company be placed into a managed wind-down.

Under the proposals, NB Global Monthly Income Fund Limited Board anticipates that the company’s assets would be realised in an orderly manner and that the Company would make capital distributions to Shareholders during the wind-down period as and when sufficient cash is realised to make it economically expedient to make a distribution.

After shareholders approved the revised investment policy in September 2020, the Company’s portfolio consists of both liquid and less liquid assets that will take varied time periods to sell down in an orderly manner in order to maintain Shareholder value. Based on current and anticipated market conditions, it is expected that the process of realising the most illiquid assets in the Company’s portfolio could require a period of up to 24 months.

There is, however, no guarantee that assets will be realised within a particular time frame.

Capital distributions will always be made at the Board’s discretion. Further analysis on the liquidity of the portfolio and the expected timings of capital distributions to Shareholders will be provided in due course.

It is intended that the listing of the Company’s shares would be maintained during the wind-down period until the extent of the realisation process is such that it is appropriate to put forward proposals to Shareholders to place the Company into formal liquidation.

NB Global Monthly Income Fund Limited intends to publish a circular by the end of this year setting out the full details of the Proposals and convening an extraordinary general meeting in late January 2023 at which shareholder approval for the Proposals will be sought.