LMI - Reporting Season Commences & FPAY Wound Up

The IIR LMI Monthly Report provides key LMI market news for the month of July as well as IIR research updates and key data points as at 30 June 2022.

Key news items include:

• RF1 Adds New Strategy: The Investment Committee of Regal Investment Fund (ASX: RF1) has approved the addition of the Water Strategy to the Fund. The exposure to the Water strategy will be via the Kilter Water Fund, which is managed by Kilter Pty Limited, a subsidiary of Regal Funds Management. The initial allocation to the strategy is expected to be implemented from 1 August 2022 and is expected to represent less than 5% of the Fund’s NAV initially. The strategy can represent a maximum of 25% of the Fund.
• DJW Seeks to Raise Capital Through SPP: On 19 July 2022, Djerriwarrh Investments Limited (ASX: DJW) announced a Share Purchase Plan (SPP) to raise capital for investment purposes. Eligible shareholders will be able to invest up to $30,000 in new DJW shares. Shares will be issued at the lower of $2.78 or a 2.5% discount to the VWAP of DJW shares over the 5 trading days up to and including the close of the offer. Shares issued under the offer will be eligible for the interim dividend which will be paid in February 2023. Applications are scheduled to close on 18 August 2022 and new shares issued on 25 August 2022.
• Magellan FuturePay (FPAY) Closes: During July, Magellan announced it had resolved to terminate FPAY and return capital to investors with the closure taking effect on 20 July 2022.
• LRT Seeking to Raise Capital Through an Entitlement Issue: On 26 July 2022, Lowell Resources Fund (ASX: LRT) announced a non-renounceable entitlement issue for eligible unitholders on a 1-for-3 basis. Participating unitholders will also receive one free unlisted option for each new unit offered. New units will be issued at $1.35 per unit under the Offer and seeks to raise up to $13.2m before costs. Options will have an exercise price of $1.65 and have a maturity date of 4 March 2024. There will be a Top-Up Facility for eligible unitholders to apply for additional units in the event of a shortfall. The capital raised will be applied to the existing investment strategy.
• KKC Releases FY23 Distribution Guidance: On 28 June 2022, KKR Credit Income Fund (ASX: KKC) released its FY23 distribution guidance. KKC has a target distribution of 13.125 cents for FY23, an increase from 12 cents for FY22. Based on the NAV at the date of the announcement, the target distribution represented a yield of 5.82%.
• NBI Releases FY23 Target Distribution: On 6 July 2022, NB Global Corporate Income Trust Company (ASX: NBI) released its FY23 target distribution. The Trust is targeting a distribution of 5.25%p.a., net of fees and expenses based on the NAV as at 1 July 2022. While the target distribution represents an increase on the FY22 target distribution of 4.75%p.a., the target distribution represents a decline in the monthly payment amount based on the NAV as at 1 July 2022.
• AFI, AMH, MIR & BKI Release FY22 Results: Reporting season has commenced with four LICs reporting FY22 results in July.