Global Monthly Income Fund NB: 2021 Annual Report (web brochure)

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2021 ANNyouATHE REPORT

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Contents
PAGE
COMPANY PRESENTATION
Features	2
business model	4
Purpose and values	4
Main activities and structure	4
STRATEGIC REVIEW
Financial Highlights	14
Chairman’s statement	15
Investment manager’s report	17
Wallet Information	20
Top 10 issuers	20
Breakdown of the top 10 S&P sectors	20
Key statistics	20
Strategic report	21
GOVERNANCE
Directors	27
Directors’ report	28
Corporate Governance Report	35
Report of the Audit and Risk Committee	42
Management Engagement Committee Report	46
Report of the Compensation and Appointments Committee	48
Report on directors’ compensation	50
Directors’ liability statement	53
The independent auditor’s report	54
FINANCIAL STATE
Statement of assets and liabilities	60
Condensed table of investments	61
Status of operations	68
Statement of changes in net assets	69
Cash flow statement	70
Notes to the audited financial statements	71
ANNEX
FUNDS 3.2 Disclosure of information to investors (unaudited)	88
Alternative Performance Measures (APM)	91
FURTHER INFORMATION
Contact details	93
Information to shareholders	94
ANNUAL REPORT 2021 1

COMPANY OVERVIEW | Features

Features

NB Global Monthly Income Fund Limited (the “Company”)

The Company is a closed-ended investment company incorporated and registered in Guernsey on 10th March 2011 under company number 53155. The Company is governed by the provisions of the Companies Act (Guernsey) 2008 as amended (the “Act ”), and the Registered Collective Investment Schemes Rules and Guidelines 2021 issued by the Guernsey Financial Services Commission. It is a public limited company limited by shares and has been declared by the Guernsey Financial Services Commission as a registered closed-end collective investment scheme. On April 20, 2011, the Company was admitted to the official list of the UK Listing Authority with a premium listing on the main market of the London Stock Exchange (“LSE”).

Alternative Investment Fund Manager (“AIFM”) and Manager

Investment management services are provided to the Company by Neuberger Berman Investment Advisers LLC (the “AIFM”) and Neuberger Berman Europe Limited (the “Manager”), collectively the “Investment Manager”. The AIFM is responsible for the risk management and discretionary management of the Company’s portfolio and the Manager provides certain administrative services to the Company.

Investment objective

The investment objective of the Company is to provide shareholders of the Company with consistent levels of monthly income, while maintaining or increasing the net asset value (“NAV”) per share over time. Details of the Company’s investment objective and policy are available on the Company’s website,www.nbgmif.com.

Investment policy and strategy

To pursue its investment objective, the Company will invest in credit assets with the following target portfolio allocations: (i) 50-70% in traditional credit, i.e. high yield bonds, floating rate loans and high quality corporate bonds; and (ii) 30-50% in alternative credits, i.e. “special situations” (generally consisting of negotiable but less liquid debt securities, such as tranches of stressed credit and CLO debt), the mezzanine debt, “club” loan transactions (being syndicated loan opportunities presented through the Company’s or the Investment Manager’s relationship with loan arrangers and/or borrowers) and private corporate loans issued directly to borrowers. Investments in alternative credit will not represent more than 50% of the net asset value at the time of investment.

The Company’s investments will be issued in US dollars, pounds sterling and euros by corporations, partnerships and other commercial issuers based primarily in North America, the UK and Europe. At the time of investment, these loans, bonds and other debt securities will often be of lower quality.

The Company generally expects to hold the majority of its assets directly, but where the Investment Manager deems it appropriate, the Company may gain investment exposure to loans, bonds and other debt securities through investments in other collective investment vehicles. The Company will at no time invest more than 15% of its total assets in other listed closed-end investment funds.

Capital structure

As of December 31, 2021, the share capital of the Company consisted of 323,268,152 ordinary shares in pounds sterling (“NBMI”) without par value (of which 76,083,114 were treasury shares).

Features | COMPANY PRESENTATION

Non-Traditional Joint Investments

The Company currently conducts its affairs in such a way that shares issued by the Company may be recommended by independent financial advisers to ordinary retail investors in accordance with the rules of the Financial Conduct Authority (“FCA”) in relation to investment products. non-traditional investment and intends to continue doing so for the foreseeable future.

The shares of the Company are excluded from the FCA restrictions, which apply to non-traditional pooled investment products.

LIBOR

Official industry working groups and committees, including the Financial Stability Board (“FCB”), have established clear timelines to help market participants plan a smooth transition from LIBOR to new risk-free benchmarks . The FCB announced the dates after which the representative LIBOR rates were no longer available. All LIBOR parameters ceased to be provided by an administrator or were no longer representative:

• • immediately after December 31, 2021, for all British Pound, Euro, Swiss Franc and Japanese Yen parameters, and US Dollar 1-week and 2-month parameters; and

• • immediately after June 30, 2023, for the remaining parameters in US dollars

Risk-free alternative benchmark rates, such as SONIA in the UK and SOFR in the US, are robust, stable and anchored in active and liquid underlying markets. SONIA is now widely used in all major sterling markets, supporting a wide range of borrowers across different industries.

Dividends

Dividends are paid monthly. The Company’s dividend policy is detailed on page 28.

The rolling 12-month dividend yield (based on dividends declared for the period and share price as of December 31, 2021) was 5.27%.

2021 ANNUAL REPORT 3

COMPANY OVERVIEW | business model

Purpose and values

The objective of the Company is to operate as an investment company and to provide returns to shareholders by achieving its investment objective as described on page 2.

The Company’s values ​​are discussed and approved by the Board. The Board seeks to lead the company with a culture of openness, high integrity and accountability. It is aware of embodying these values ​​through its behavior both internally and in its relations with its stakeholders. It seeks to act in a spirit of mutual respect, trust and fairness. The board is robust in its challenge of the investment manager and other service providers, but always tries to be constructive and collegial. The board expects its members to be independent-minded and willing to ask tough questions. Moreover, it expects and encourages its major service providers to display similar values.

Main activities and structure

The organizational chart below shows the ownership, organizational and investment structure of the Company.

NBMID

SHAREHOLDERS

* Further information on the Company’s investment management arrangements can be found on page 25.

Global Diversification

The Investment Manager seeks to manage risk through thorough credit research using proprietary analytical processes. It seeks to build an actively managed and diversified portfolio by region, sector, credit quality and issuer. Sector weightings are adjusted based on economic and market analysis. As a general rule, no industry will represent more than 15% of the net asset value at the time of investment. At the time of investment, no more than 5% of the Net Asset Value will be concentrated in a single issuer.

Defensive qualities

The Company’s investment portfolio is intended to focus on industries considered defensive. Defensive industries are those that the Investment Manager believes are least affected by changes in economic conditions and are likely to demonstrate the strongest preservation of capital. The Company’s investments are generally summarized as traditional credit and alternative credit investments.

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