Secured Income Fund : Factsheet 30 Nov 2020

Secured Income Fund Plc

Factsheet│30 November 2020

Investment Objective

The Secured Income Fund Plc is designed to provide shareholders with attractive risk-adjusted returns predominantly through investment in a range of SME loan assets and

secured lending opportunities, diversified by way of asset class, geography and structure.

Key Benefits

1. Diversified exposure to SME borrowers across key markets in the UK, Europe and USA.

2. Targeted annual dividend of 7p per share paid quarterly and as loans mature or are refinanced.

3. Lending against business critical assets providing downside protection.

Fund Information

Share Price Performance

Portfolio Exposure

Key facts

Since inception

100%Current and projected, by type

Forecast

150

Market Capitalisation

£35.0m

80%

Share Price

66.50p

100

60%

NAV

£43.8m

50

40%

20%

NAV per share

83.10p

0%

Premium / (Discount)

-20.0%

0

9/2015

9/2016

9/2017

9/2018

9/2019

9/2020

3/2017

3/2018

3/2019

3/2020

3/2021

Share Price

NAV

Cash

Gearing

None

Direct loans (KKV originated)

Platforms

Management

0.75%

Performance¹

Fees2

Total return, cum income, %

Ongoing charges	2.0%	To 30/11/2020			SI	3y		1y		6m
Ticker	SSIF:LN	Share price		-0.46	-3.18		-14.23		-6.03
NAV		4.04	2.45		-1.49		0.78
ISIN	GB00BYMK5S87	1 Annualised for periods longer than one year.
		12M discrete	30/11/2016-		30/11/2017 -		30/11/2018 -	30/11/2019 -
		30/11/2017		30/11/2018		30/11/2019	30/11/2020
		Share price	9.08		3.65			2.09	-14.23
		NAV	4.16	5.45			3.50	-1.49

2 As per the resolution detailed in the Circular issued on 20th August 2020, the management fee reduced to 0.75% for 12 months from 18th September 2020.

Fund Portfolio3			Portfolio exposure (%)	Maturity breakdown (%)
Top 10 Holdings (%)			Direct Loans	75.5	0-6 months	15.8	1
Direct Loan	22.82%		(KKV originated)
		6-18 months	27.2	2
Co-investment	11.71%		Co-invested and	16.4
Direct Loan	10.44%		18-36 months	37.7	3
	solely owned debt
Direct Loan	10.27%		Cash (incl.		>36 months	19.3	4
Direct Loan	6.41%		7.6
Direct Loan	5.99%		committed cash)
		Weighted average maturity	2.0 years
Direct Loan	5.05%		Peer-to-peer /	0.5
Direct Loan	4.83%
	Crowdfunded
Direct Loan	4.62%				Currency breakdown
Co-investment	3.64%		Geographical breakdown (%)
Total	85.78%
Total number of holdings	20		UK	73.8	GBP	£32,470,000	73.7%
			USD	$9,363,000	15.9%
Average loan size	£2.03m	US	11.3
EUR	€5,108,000	10.4%
Weighted average yield	9.42%
Europe	11.3
			Offshore Britain	3.6	No currency hedging used4

3 Portfolio exposures are calculated as the present balance outstanding plus investment receivables less any impairment/ expected credit loss provision. 4 Please note currency hedging was removed during September 2020

Dawn Kendall

CIO & Lead Fund Manager

Dawn has 34 years' experience in financial services, including 25 years' experience managing fixed income portfolios at distinguished financial institutions, including in her role as Partner and Portfolio Manager at TwentyFour Asset Management, as CIO for IAM, a fund of hedge funds, and Portfolio Manager for The Codelouf Trust, a family office. Additionally, Dawn has held senior investment and management positions at Newton, Axa (Architas) and Investec Wealth. Dawn has a degree in European and English Law and an MBA.

November Investment Highlights

Despite continued macro uncertainty, updates from recipients of our direct loans have been positive with our wholesale loans reporting better trading activity and all borrowers have been meeting their debt obligations according to their documentation.

We continued to receive some sales and tax credit revenue from our film financing transactions.

In relation to IFRS 9 provisioning, KKV have implemented a revised and robust systematic grading system to reflect the need to assess risk consistently, this policy revision now takes into account market conditions and probability of default per credit. This uses a ten-stage categorisation methodology.

Our credit model is designed to put each asset into a risk category based on the probability of default. Credits are then individually assigned an expected loss, given default. Inputs include specific data describing the characteristics and

attributes of each loan. Certain of those loan characteristics will be used to generate the Probability of Default (PD) and the Loss Given Default (LGD). This provides a firm basis for comparisons across borrowers and collateral types.

This revised IFRS 9 modelling has resulted in a one-time adjustment of -0.54%

Please note, we no longer hedge our foreign exchange exposures and provide details of the USD and EUR allocations in the data provided in the factsheet to allow shareholders to consider their own hedging, if they so required.

Disclaimer:

Secured Income Fund plc (the "Company") is an investment company, incorporated in England with registered number 09682883, whose shares have been admitted to trading on the Specialist Fund Segment of the Main Market of London Stock Exchange plc. The Company is an alternative investment fund for the purposes of the Alternative Investment Fund Managers Directive. The Company has appointed Kvika Securities Limited ("KSL") as its alternative investment fund manager, and KKV Investment Management Limited ("KKV") has been appointed as the Company's portfolio manager. This Factsheet is provided for information purposes only and should not be relied on by any person in making an investment decision. The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back less than the original amount invested. Past performance is not a reliable indicator of future performance and investors may not get back the original amount invested. There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. Whilst it is the intention to achieve the investment objectives of the Company, there can be no assurance that the objectives will be met. Any forecast, projection or target is indicative only and not guaranteed in any way. All reasonable endeavours have been used to ensure the accuracy of information contained in this Factsheet, but there is no guarantee as to the completeness or accuracy of such content. This material should not be considered as advice or an investment recommendation. No warranty of accuracy is given. For an overview of the terms of investment, risks and costs and charges, please refer to the Annual Report and Key Information Document from which the risk indicator is taken. If you are in any doubt as to the suitability of the Company for your investment needs, please seek investment advice. This Factsheet is a financial promotion and is not intended to be investment advice. It is issued and approved solely for the purpose of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended) by KSL which is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Conduct Authority's register under registered number 538806. KSL is a private limited company incorporated in England (registered no. 06801718) with its registered office at 25 Upper Brook Street, London, England, W1K 7QD. KKV is a private limited company incorporated in England (registered no. 12475228) with its registered office at 25 Upper Brook Street, London, England, W1K 7QD. Copyright © (2020) Kvika Securities Ltd. All rights reserved.

KKV Investment Managmeent

25 Upper Brook Street

Mayfair

London W1K 7QD

United Kingdom

For more information, please contact:

[e-mail]

Company Broker | FinnCap Ltd | One Bartholomew Close, London, EC1A 7BL William Marle | [e-mail] | [phone]

Mark Whitfeld | [e-mail] | [phone]

Secured Income Fund plc

Closed-ended Investment Company | Listing: London Stock Exchange Main Market

Specialist Segment | Domicile: UK