1. General Information

Real Estate Credit Investments Limited (“RECI” or the

“Company”) was incorporated in Guernsey, Channel

Islands on 6 September 2005 with registered number

43634. The Company commenced its operations on

8 December 2005.

The Company invests in real estate debt secured by

commercial or residential properties in the United Kingdom

and Western Europe, focusing primarily on those countries

where it sees the changing dynamics in the real estate debt

market offering a sustainable deal flow for the foreseeable

future. The Company has adopted a long-term strategic

approach to investing and focuses on identifying value in

real estate debt. In making these investments, the Company

uses the expertise and knowledge of its Alternative Investment

Fund Manager (“AIFM”), Cheyne Capital Management (UK)

LLP (“Cheyne” or the “Investment Manager”).

The Company’s shares are currently listed on the premium

segment of the Official List of the UK Listing Authority and

trade on the Main Market of the London Stock Exchange. The

shares offer investors a levered exposure to a portfolio of real

estate credit investments and aim to pay a quarterly dividend.

The Company’s investment management activities are

managed by the Investment Manager, who is also the

AIFM. The Company has entered into an Investment

Management Agreement (the “Investment Management

Agreement”) under which the Investment Manager

manages its day-to-day investment operations, subject to

the supervision of the Company’s Board of Directors. The

Company is an Alternative Investment Fund (“AIF”) within

the meaning of the Alternative Investment Fund Managers

Directive (“AIFMD”) and accordingly the Investment

Manager has been appointed as the AIFM of the Company,

which has no employees of its own. For its services, the

Investment Manager receives a monthly Management Fee,

expense reimbursements and accrues a Performance Fee

(see Note 18). The Company has no ownership interest in

the Investment Manager.

Citco Fund Services (Guernsey) Limited is the

Administrator and provides all administration services to

the Company in this capacity. The Bank of New York Mellon

(International) Limited is the Depositary and undertakes the

custody of assets. Aztec Financial Services (Guernsey)

Limited is the Company Secretary.

2. Material Accounting Policies

Statement of Compliance

The financial statements of the Company have been prepared

in accordance with International Financial Reporting Standards

(“IFRS”), which comprise standards and interpretations

approved by the International Accounting Standards Board

(“IASB”), International Accounting Standards (“IAS”) and

Standing Interpretations Committee interpretations approved

by the International Accounting Standards Committee

(“IASC”) that remain in effect, together with applicable legal

and regulatory requirements of Guernsey Law and the Listing

Rules of the UK Listing Authority. The same accounting

policies, presentation and methods of computation have

been followed in these financial statements as were applied

in the preparation of the Company’s audited financial

statements for the year ended 31 March 2023.

New Standards, Amendments and Interpretations Issued

and Effective for the Financial Year Beginning 1 April 2023

Amendments to IFRS 17 – Insurance contracts

In June 2020, the IASB issued amendments to IFRS 17

Insurance Contracts to provide three additional transition

reliefs relating to: (1) contracts acquired before transition,

(2) the risk mitigation option at transition, and (3) investment

contracts with discretionary participation features. Issued in

May 2017, IFRS 17 sets out the requirements for an entity

reporting information about insurance contracts it issues and

reinsurance contracts it holds. IFRS 17 replaces an interim

Standard – IFRS 4 Insurance Contracts – from annual reporting

periods beginning on or after 1 January 2023. Entities have

been required to apply IFRS 9 Financial Instruments since

annual reporting periods beginning on or after 1 January 2018.

However, IFRS 4 has allowed the temporary deferral of the

application of IFRS 9. Entities that have elected to defer

IFRS 9 application have instead continued to apply IAS 39

Financial Instruments: Recognition and Measurement. The

IASB extended the fixed expiry date for the temporary deferral

to annual reporting periods beginning on or after 1 January

2023. The amendments have no material impact on the

financial statements of the Company.

Amendments to IAS 8 – Definition of Accounting Estimates

In February 2021, the IASB issued amendments to IAS 8

Accounting Policies, Changes in Accounting Estimates and

Errors, in which it introduced a new definition of ‘accounting

estimates’. The amendments are intended to provide

preparers of financial statements with greater clarity as to

the definition of accounting estimates, particularly in terms

of the difference between accounting estimates and

accounting policies. The amendments should provide helpful

guidance for entities in determining whether changes are

to be treated as changes in estimates, changes in policies,

or errors. The amendments to IAS 8 are effective for annual

periods beginning on or after 1 January 2023. The amendments

have no material impact on the financial statements of

the Company.

Amendments to IAS 1 and IFRS Practice Statement 2 –

Disclosure of Accounting Policies

In February 2021, the IASB issued amendments to IAS 1

Presentation of Financial Statements and IFRS Practice

Statement 2 Making Materiality Judgements, in which it

provided guidance and examples to help entities apply

materiality judgements to accounting policy disclosures.

The amendments aim to help entities provide accounting

policy disclosures that are more useful by (i) replacing the

requirement for entities to disclose their ‘significant’

accounting policies with a requirement to disclose their

‘material’ accounting policies and (ii) adding guidance on

how entities apply the concept of materiality in making

decisions about accounting policy disclosures. Determining

whether accounting policies are material or not requires use

of judgement. Therefore, entities are encouraged to revisit

their accounting policy information disclosures to ensure

consistency with the amended standard. Entities should

carefully consider whether ‘standardised information, or

information that only duplicates or summarises the

requirements of the IFRSs’ is material information and, if not,

whether it should be removed from the accounting policy

disclosures to enhance the usefulness of the financial

statements. The amendments to IAS 1 and IFRS Practice

Statement 2 are effective for annual periods beginning on

or after 1 January 2023. The amendments have no material

impact on the financial statements of the Company as the

accounting policies disclosed are considered material.

Amendments to IAS 12 – Deferred Tax Related to Assets

and Liabilities Arising from a Single Transaction

In May 2021, the IASB issued amendments to IAS 12 Income

Taxes, which narrowed the scope of the initial recognition

exception under IAS 12, so that it no longer applied to

transactions that give rise to equal taxable and deductible

temporary differences. The amendments clarify that where

payments that settle a liability are deductible for tax purposes,

it is a matter of judgement (having considered the applicable

tax law) whether such deductions are attributable for tax

purposes to the liability recognised in the financial statements

(and interest expense) or to the related asset component

(and interest expense). This judgement is important in

determining whether any temporary differences exist on

initial recognition of the asset and liability. The amendments

to IAS 12 are effective for annual periods beginning on or

after 1 January 2023. The amendments have no material

impact on the financial statements of the Company.

Amendments to IAS 12 – International Tax Reform –

Pillar Two Model Rules

In May 2023, the IASB issued amendments to IAS 12, in

response to the Organisation for Economic Co-operation

and Development’s Base Erosion and Profit Shifting Pillar

Two rules and include:

A mandatory temporary exception to the recognition and

disclosure of deferred taxes arising from the jurisdictional

implementation of the Pillar Two model rules; and

Disclosure requirements for affected entities to help users

of the financial statements better understand an entity’s

exposure to Pillar Two income taxes arising from that

legislation, particularly before its effective date.

The mandatory temporary exception, the use of which is

required to be disclosed, applies immediately. The remaining

disclosure requirements apply for annual reporting periods

beginning on or after 1 January 2023, but not for any interim

periods ending on or before 31 December 2023. The

amendments have no material impact on the financial

statements of the Company.

New Standards, Amendments and Interpretations Issued but not Effective for the Financial Year Beginning 1 April 2023 and

not Early Adopted

Title	Effective for periods beginning on or after
Amendments to IAS 1 – Classification of Liabilities as Current or Non-current	1 January 2024
Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements	1 January 2024
Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback	1 January 2024
Amendments to IAS 1 – Non-current Liabilities with Covenants	1 January 2024
Amendments to IAS 21 – Lack of Exchangeability	1 January 2025

Amendments to IAS 1 – Classification of Liabilities as Current

or Non-current affect only the presentation of liabilities in the

Statement of Financial Position and not the amount or timing

of recognition of any asset, liability income or expenses, or the

information that the Company discloses about those items.

Amendments to IAS 7 and IFRS 7 have no material impact

on the financial statements as the Company does not have

supplier finance arrangements.

Amendments to IFRS 16 have no material impact on the

financial statements as the Company does not have sale

and leaseback transactions.

Amendments to IAS 1 – Non-current Liabilities with Covenants

improve the information an entity provides when its right to

defer settlement of a liability for at least twelve months is

subject to compliance with covenants. The amendments

also respond to stakeholders’ concerns about the

classification of such a liability as current or non-current.

Earlier application is permitted. The Company did not early

adopt these amendments and expects that the amendments

will have no material impact on the financial statements.

Amendments to IAS 21 provide guidance to specify when a

currency is exchangeable and how to determine the exchange

rate when it is not. Earlier application is permitted. The

Company did not early adopt these amendments and

expects that the amendments will have no material impact

on the financial statements.

Basis of Preparation

The financial statements of the Company are prepared

under IFRS on the historical cost or amortised cost basis

except for financial assets and liabilities classified at fair

value through profit or loss which have been measured at

fair value.

The functional and presentation currency of the Company

is British Pounds (“GBP” or “£”) which the Board considers

best represents the economic environment in which the

Company operates.

Going Concern

The Directors believe it is appropriate to adopt the going

concern basis in preparing the financial statements as, after

due consideration, they consider that the Company has

adequate resources to continue in operational existence for

a period of at least twelve months from the date of signing

the audited financial statements.

The Investment Manager performed an evaluation of each of

its positions in light of all geopolitical and macroeconomic

factors on operating models and valuations, and performed

a granular analysis of the future liquidity profile of the

Company. A detailed cash flow profile of each investment

was completed, incorporating the probability of likely

delays to repayments, other stress tests (and additional

cash needs).

Taking account of the updated forecasting, the Directors

consider that the cash resources available as at 31 March

2024 of £18.3 million (31 March 2023: £14.1 million), together

with the cash collateral at broker of £4.5 million (31 March

2023: £2.4 million), the liquidity of the market bond portfolio

and the financing available through activities such as

repurchase agreements as described in Note 13, are sufficient

to cover normal operational costs and current liabilities,

including the proposed dividend, and the expected funding

of loan commitments as they fall due for a period of at least

twelve months from the date of signing the audited financial

statements. The Directors note that a key assumption

adopted in the going concern analysis is that leverage

through repurchase agreements is not withdrawn. Net

debt (leverage minus cash) as at 31 March 2024 was 1.5%

(31 March 2023: 19.1%).

As disclosed in Note 19, as at 31 March 2024, the Company

had committed £489.0 million into the loan and bond

portfolio of which £352.1 million had been funded (31 March

2023: £572.0 million commitment of which £367.8 million

had been funded). The Investment Manager models these

expected commitments and only funds if the borrowers

meet specific business plan milestones.

Notwithstanding the Directors’ belief that this assumption

remains justifiable, the Directors have also determined

a number of mitigations to address a scenario where all

outstanding repurchase agreements are required to be

settled as they fall due. Whilst there would be a number of

competing strategic factors to consider before implementation

of such options, the Directors believe that these are credible

and can generate sufficient liquidity to enable the Company

to meet its obligations as they fall due. Such strategies

include cessation or delay of any future dividends, obtaining

longer-term and non-recourse financing, and further sales

of assets within the bond portfolio.

In carrying out the Company’s strategy, the Investment

Manager undertakes the following measures:

• An initial and continuing detailed evaluation of each

of its positions in light of the various impacts of

changing economic circumstances on operating models

and valuations;

• Positive engagement with all borrowers and

counterparties; and

• Continued granular analysis of the future liquidity profile

of the Company.

In consideration of this additional stressed scenario and

mitigations identified, the Directors consider that the

Company has adequate resources to continue in operational

existence for a period of at least twelve months from the

date of signing the financial statements.

Financial Assets at Fair Value Through Profit or Loss

The Company classifies its investments based on both the

Company’s business model for managing those financial

assets and the contractual cash flow characteristics of the

financial assets. The portfolio of financial assets is managed

and performance is evaluated on a fair value basis. The

Company is primarily focused on fair value information and

uses that information to assess the assets’ performance

and to make decisions. The Company has not taken the

option to irrevocably designate any equity securities at fair

value through other comprehensive income. The contractual

cash flows of the Company’s debt securities are not solely

principal and interest. The collection of contractual cash

flows is only incidental to achieving the Company’s business

model’s objective. Consequently, all investments are measured

at fair value through profit or loss. The gain or loss on

reassessment of fair value is recognised immediately in the

Statement of Comprehensive Income.

The interest receivable from loans and bonds are reported

as part of financial assets at fair value through profit or loss.

The related interest income and finance costs were included

under interest income and finance costs accounts in the

Statement of Comprehensive Income.

Financial Liabilities at Fair Value Through Profit or Loss

Financing agreements entered into for the purpose of

efficient portfolio management are measured at fair value

through profit or loss. The gain or loss on reassessment of

fair value is required to be split into the amount of change

in fair value attributable to changes in credit risk of the

liability, presented in other comprehensive income, and the

remaining amount presented in profit or loss. The Company’s

gain or loss on reassessment of fair value is recognised

immediately in the Statement of Comprehensive Income.

Financial Assets at Amortised Cost

A financial asset is measured at amortised cost if it is held

within a business model whose objective is to hold financial

assets in order to collect contractual cash flows and its

contractual terms give rise on specified dates to cash flows

that are solely payments of principal and interest on the

principal amount outstanding. This includes cash and cash

equivalents, cash collateral at broker and other assets.

Financial Liabilities at Amortised Cost

Financial liabilities at amortised cost include all other

liabilities not measured at fair value through profit or loss.

This includes cash collateral due to broker and other liabilities.

Initial Measurement

Financial assets and liabilities at fair value through profit or

loss are measured initially at fair value, with transaction

costs for such financial assets and liabilities being recognised

directly in the Statement of Comprehensive Income.

Financial assets and liabilities at amortised cost are measured

initially at their fair value plus any directly attributable

incremental costs of acquisition or issue.

Purchases and sales of financial assets and liabilities at fair

value through profit or loss are accounted for at trade date.

Realised gain/(loss) on disposals of financial assets and liabilities

is calculated using the first-in, first-out (“FIFO”) method.

Subsequent Measurement

After initial measurement, the Company measures financial

assets which are classified as at fair value through profit or

loss, at fair value.

Financial liabilities held for trading are measured at fair

value through profit or loss, and all other financial liabilities

are measured at amortised cost, unless the fair value option

is applied. The Company classifies its financing agreements

as at fair value through profit or loss.

After initial measurement, the Company measures financial

assets and liabilities which are classified as at amortised

cost, at amortised cost using effective interest method less

expected credit losses.

Recognition

All regular way purchases and sales of financial assets or

liabilities are recognised on the trade date, which is the

date on which the Company commits to purchase or sell

the financial assets or liabilities. Regular way purchases or

sales are purchases or sales of financial assets or liabilities

that require delivery of assets within the period generally

established by regulation or convention in the market place.

Derecognition

The Company derecognises a financial asset when the

contractual rights to the cash flows from the financial asset

expire or it transfers the financial asset and the transfer

qualifies for derecognition in accordance with IFRS 9.

The Company derecognises a financial liability when the

obligation specified in the contract is discharged, cancelled

or has expired.

Cash and Cash Equivalents

Cash and cash equivalents includes amounts held in

interest bearing accounts and overdraft facilities with

original maturities of less than three months and are used

for cash management purposes.

Derivative Financial Instruments

Derivative financial instruments used by the Company to

manage its exposure to foreign exchange arising from

operational, financing and investment activities are

accounted for as financial assets or liabilities at fair value

through profit or loss.

Subsequent to initial recognition, derivative financial

instruments are stated at fair value. The gain or loss on

revaluation of fair value is recognised immediately in the

Statement of Comprehensive Income.

The fair value of an open forward foreign exchange contract

is calculated as the difference between the contracted rate

and the current forward rate that would close out the contract

on the reporting date. The change in value is recorded in

net gains on financial assets and liabilities through profit or

loss in the Statement of Comprehensive Income. Realised

gains and losses are recognised in the Statement of

Comprehensive Income on the maturity of a contract, or

when the contract is closed out.

Fair Value

All financial assets carried at fair value are initially recognised

at fair value which is equivalent to cost and subsequently

re-measured at fair value. If independent prices are unavailable,

the fair value of the financial asset is estimated by reference

to market information which includes, but is not limited to,

broker marks, prices of comparable assets and using pricing

models incorporating discounted cash flow techniques and

valuation techniques such as modelling.

These pricing models apply assumptions regarding asset

specific factors and economic conditions generally, including

delinquency rates, severity rates, prepayment rates, default

rates, maturity profiles, interest rates and other factors that

may be relevant to each financial asset.

The objective of a fair value measurement is to determine

the price at which an orderly transaction would take place

between market participants on the measurement date,

rather than the price arrived at in a forced liquidation or

distressed sale. Where the Company has considered all

available information and there is evidence that the

transaction was forced, it will not use such a transaction

price as being determinative of fair value.

Note 3 provides specific information regarding the

determination of fair value for the Company’s bonds and loans.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount

is reported within assets and liabilities when there is a legally

enforceable right to set off the recognised amounts and

there is an intention to settle on a net basis, or realise the

asset and settle the liability simultaneously.

Expenses Attributable to Any Issue of Shares

The expenses of the Company attributable to any issue of

new shares are those which are necessary to implement such

an issue including registration, listing and admission fees,

corporate finance fees, printing, advertising and distribution

costs, legal fees and other applicable expenses. They are

recognised as incurred and are included as a reduction to

Share capital in the Statement of Changes in Equity.

Foreign Currency Transactions

Transactions in foreign currencies are translated at the foreign

exchange rate ruling at the date of the transaction. Monetary

assets and liabilities denominated in foreign currencies at

the Statement of Financial Position date are translated to

GBP at the foreign exchange rate ruling at that date.

Foreign exchange differences arising on translation are

recognised in net foreign currency gains/(losses) in the

Statement of Comprehensive Income. Foreign currency

denominated non-monetary assets and liabilities that are

measured in terms of historical cost in a foreign currency are

translated using the exchange rate at the date of transaction.

Non-monetary assets and liabilities denominated in foreign

currencies that are stated at fair value are translated to GBP

at foreign exchange rates ruling at the reporting date.

Differences arising on translation of these non-monetary

assets and liabilities between valuation points are recognised

in the Statement of Comprehensive Income.

Interest Income

Interest income from financial assets at fair value through

profit or loss are recognised within interest income in the

Statement of Comprehensive Income using the effective

interest method.

Expenses

All expenses are included in the Statement of Comprehensive

Income on an accrual basis.

Taxation

The Company is a tax-exempt Guernsey limited company

and accordingly, no provision for tax is made.

Other Receivables

Other receivables do not carry any interest and are short-

term in nature and are accordingly stated at their nominal

value as reduced by appropriate allowances for estimated

irrecoverable amounts.

Equity Instruments

An equity instrument is any contract that evidences a residual

interest in the assets of the Company after deducting all of

its liabilities. Equity instruments issued by the Company are

recognised at the proceeds received, net of direct issue costs.

Treasury shares

Shares that are reacquired (treasury shares) are recognised

at cost and deducted from equity. No gain or loss is recognised

in profit or loss on the purchase, sale, issue or cancellation of

the Company’s shares. Any difference between the carrying

amount and the consideration, if reissued, is recognised in the

share premium. Treasury shares are not entitled to dividends,

and thus, they are also not included in the calculation of

earnings per share.

Other Liabilities

Other liabilities are not interest bearing and are stated at

their accrued value.

Segment Information

The Company has three reportable segments, being the

Market Bond Portfolio, Bilateral Loan and Bond Portfolio and

Equity Securities. The real estate debt investment strategy

of the Company focuses on secured commercial and

residential debt in the United Kingdom and Western Europe.

Each segment engages in separate business activities and

the results of each segment are regularly reviewed by the

Board of Directors which fulfils the role of Chief Operating

Decision Maker for performance assessment purposes.

Financing Agreements

The Company enters into repurchase agreements for the

purpose of efficient portfolio management. There are no

material revenues arising from the use of repurchase

agreements and transaction costs are embedded in the

price of the investments and are not separately identifiable.

Securities purchased under agreements to resell are valued

at fair value and adjusted for any movements in foreign

exchange rates. Interest rates vary for each repurchase

agreement and are set at the initiation of each agreement.

It is the lender’s policy to take custody of securities purchased

under repurchase agreements and to value the securities

on a daily basis to protect the lender in the event the

securities are not repurchased by the Company. The Company

will generally post additional collateral if the market value of

the underlying securities decline and are less than the face

value of the repurchase agreements plus any accrued interest.

In the event of default on the obligation to repurchase, the

lender has the right to liquidate the collateral and apply the

proceeds in satisfaction of the obligation. In the event of

default or bankruptcy by the counterparty to the agreement,

realisation and/or retention of the collateral or proceeds

may be subject to legal proceedings.

Financial Guarantees

Financial guarantees require the Company to make specified

payments to reimburse the holder of the guarantee for a loss

it incurs because a specified debtor fails to make payment

when due in accordance with the original or modified terms

of a debt instrument. Financial guarantees are initially

recognised at their fair value, which is normally evidenced

by the amount of fees received. This amount is amortised

on a straight line basis over the life of the guarantee. At the

end of each reporting period, the guarantees are measured

at the higher of (i) the amount of the loss allowance for the

guaranteed exposure determined based on the expected

loss model and (ii) the remaining unamortised balance of

the amount at initial recognition.

3. Critical Accounting Judgements and Key Sources

of Estimation Uncertainty

In the process of applying the Company’s accounting policies

(described in Note 2), the Company has determined that the

following judgements and estimates have the most significant

effect on the amounts recognised in the financial statements:

Critical Accounting Judgements

Classification of Bilateral Loan and Bonds as Financial

Assets at Fair Value Through Profit or Loss

As described on page 74, classification and measurement

of financial assets under IFRS 9 are driven by the entity’s

business model for managing financial assets and the

contractual cash flow characteristics of those financial assets.

In making the judgement regarding Stornoway Finance S.à r.l.,

ENIV S.à r.l. and Real Estate Loan Funding (“RELF”), the

Directors have considered the power the Company has to

influence the investment decisions of the Special Purpose

Vehicle housing the underlying loans and where the Company

holds the majority interest it has been determined that the

contractual cash flow characteristics for a basic lending

arrangement would be met. However, IFRS 9 also requires

an assessment of the business model within which assets

are held. In the case of the Company’s loan investments the

Directors have determined that they monitor and evaluate

business performance, manage risk and compensate

the Investment Manager based on fair value measures.

The business model is therefore not solely for holding and

collecting contractual cash flows to maturity and requires

all loan investments to be measured at fair value through

profit or loss.

The Company’s bond investments are classified and

measured at fair value through profit or loss in accordance

with the above fact pattern.

Were it to be determined that the business model for

managing financial assets and the contractual cash flow

characteristics of those financial assets were not as

described above, these assets would be classified and

measured at amortised cost with provisions made for

expected credits losses and changes to expected credit

losses at each reporting date.

As further described on page 74, the contractual cash flow

characteristics for loan investments are not solely payments

of principal and interest. For the loans held via Stornoway

Finance S.à r.l., ENIV S.à r.l. and RELF, the Company receives

the return for each underlying loan net of expenses and so

it is not considered to be a basic lending arrangement under

the standard. As such, these loan investments are required

to be measured at fair value through profit or loss. The loans

held via ENIV S.à r.l. are listed and considered bonds.

Despite the foregoing, the Company may irrevocably

designate a debt investment that meets the amortised cost

criteria as measured at fair value through profit or loss. if doing

so eliminates or significantly reduces a measurement or

recognition inconsistency (so called ‘accounting mismatch’)

that would arise from measuring assets or liabilities or

recognising the gains and losses on them on different bases.

Key Sources of Estimation Uncertainty

Valuation of Bilateral Loans and Bonds at Fair Value Through

Profit or Loss

The Company has made loans and bonds into structures to

gain exposure to real estate secured debt in, but not limited

to, the United Kingdom and Western Europe. These loans are

not traded in an active market and there are no independent

quotes available for these loans. The fair values of financial

instruments that are not traded in an active market are

determined using valuation techniques such as discounted

cash flows models. The rate used to discount future cash

flows represents key source of estimation uncertainty that

has material impact on the valuation of the investment

portfolio. In the absence of market observable inputs, this

uncertainty translates into a wide range of appropriate

discount rates. The Investment Manager believes that the

loan or bond’s own effective yield represents the most

appropriate point estimate within that range.

The Investment Manager has considered relevant geopolitical

and macroeconomic factors including the rise of market

interest rate and continues to believe that this key judgement

remains appropriate due to the bespoke nature of the

investment portfolio and the dislocation between the yield

of these assets and the market interest rate. The fair value of

these loans is linked directly to the value of the real estate

loans in the underlying structure the Company invests in,

which are determined based on modelled expected cash

flows (drawdown principal and interest repayments, and

maturity dates) with effective yields ranging from 6.2% to

13.2% (31 March 2023: 6.2% to 13.2%).

Adjustments in the fair value of the real estate loans are

considered in light of changes in the credit quality of the

borrower and underlying property collateral. On origination of

the loan, the Investment Manager performs due diligence on

the borrower and related security/property. This includes

obtaining a valuation of the underlying property (to assess

loan-to-value of the investment). In most instances, the terms

of the loan require periodic re-valuation of the underlying

property to check against loan-to-value covenants.

The valuation policy for contingent fees and potential profit

participations provided for in contractual arrangements is

to mark them at fair value, which in most instances have

been obtained for a zero or de-minimis cost, and they are

held at this value until there is sufficient evidence that the

position should be revalued.

The Company has been closely monitoring this and indeed

all other material macro sources of uncertainty related

developments, such as increased interest rates, heightened

inflation, supply chain disruption, the continuing impact of

conflicts around the world; and the effects of climate change

and cyber security, to ensure that these updated assumptions

and any potential impact have been reflected in the valuation

of financial assets at fair value through profit or loss as at

31 March 2024. Future valuation might change significantly

in the future.

Further details relating to the Company’s valuation of

bilateral loans and bonds and sensitivity analysis is

disclosed in Notes 15(a) and 15(d).

4. Net Gains on Financial Assets and Liabilities at Fair Value Through Profit or Loss

	31 Mar 2024 GBP	31 Mar 2023 GBP
Net gains/(losses)
Net gains/(losses) on market bond portfolio	1,807,597	(8,155,580)
Net (losses)/gains on bilateral loan and bond portfolio	(2,512,410)	10,101,376
Net (losses)/gains on equity securities	(5,275,758)	2,520,545
Net gains/(losses) on foreign exchange instruments	6,615,359	(3,659,633)
Net gains on financial assets and liabilities at fair value through profit or loss	634,788	806,708

5. Operating Expenses

	Note	31 Mar 2024 GBP	31 Mar 2023 GBP
Investment management, administration and depositary fees
Investment management fees	18	4,204,910	4,296,688
Administration fees	18	278,720	276,595
Depositary fees	18	64,126	65,137
		4,547,756	4,638,420
Other operating expenses
Directors’ fees		231,550	215,000
Legal fees		220,875	456,542
Audit fees		155,375	140,775
Research fees		137,467	35,000
Corporate secretary fees		105,048	96,214
Registration fees		60,000	60,000
Fees to auditor for non-audit services		42,500	39,500
Directors and Officers’ insurance fees		19,991	24,547
Regulatory body expenses		18,888	23,732
Other expenses		449,877	413,932
		1,441,571	1,505,242
Total operating expenses		5,989,327	6,143,662

The ongoing costs of the Company are shown in the Key Information Document (“KID”) published on the Company’s website. The

total figure of 2.94% (31 March 2023: 2.23%) is made up of the Investment Manager’s fee of 1.25% (31 March 2023: 1.25%), other

ongoing costs of 0.54% (31 March 2023: 0.42%), and finance costs (which are disclosed separately in the financial statements)

of 1.15% (31 March 2023: 0.56%). The finance costs may vary and are only incurred to increase the overall returns to investors.

6. Interest Income and Finance Costs

The following table details interest income and finance costs from financial assets and liabilities for the year:

	31 Mar 2024 GBP	31 Mar 2023 GBP
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments – market bond portfolio	1,482,514	4,960,473
Real Estate Credit Investments – bilateral loan and bond portfolio	28,412,548	26,747,271
	29,895,062	31,707,744
Interest income on financial assets at amortised cost
Cash and cash equivalents and other receivables	446,117	214,799
Total interest income	30,341,179	31,922,543
Finance costs
Cost of financing agreements	(3,514,078)	(3,972,353)
Total finance costs	(3,514,078)	(3,972,353)

7. Dividends

	31 Mar 2024 GBP	31 Mar 2023 GBP
Share dividends
Fourth dividend for the year ended 31 March 2023/31 March 2022	6,879,974	6,879,974
First dividend for the year ended 31 March 2024/31 March 2023	6,879,974	6,879,974
Second dividend for the year ended 31 March 2024/31 March 2023	6,879,974	6,879,974
Third dividend for the year ended 31 March 2024/31 March 2023	6,776,476	6,879,974
Dividends paid to Shareholders	27,416,398	27,519,896

The total dividends paid during the financial year ended 31 March 2024 amounted to 12.0 pence per share (31 March 2023:

12.0 pence per share).

Under Guernsey Law, companies can pay dividends provided they satisfy the solvency test prescribed under the Companies

(Guernsey) Law, 2008 (as amended), which considers whether a company is able to pay its debts when they become due and

whether the value of a company’s assets is greater than its liabilities.

The Directors considered that the Company satisfied the solvency test for all dividend payments during the period from 1 April

2023 to 31 March 2024.

8. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

	31 Mar 2024	31 Mar 2023
Net earnings attributable to shares (GBP)	21,855,530	20,550,319
1 Weighted average number of shares for the purposes of basic and diluted earnings per share	228,777,629	229,332,478
Earnings per share
Basic and diluted (pence)	9.6	9.0

1

The weighted average number of shares takes into account the weighted average effect of changes in treasury shares during the year.

9. Categories of Financial Instruments

The following table details the categories of financial assets and liabilities held by the Company at the year end date.

	31 Mar 2024 GBP	31 Mar 2023 GBP
Assets
Financial assets at fair value through profit or loss:
Real Estate Credit Investments – market bond portfolio	7,893,959	49,243,187
Real Estate Credit Investments – bilateral loan and bond portfolio	305,036,801	341,474,617
Real Estate Credit Investments – equity securities	16,438,039	10,024,106
Financial assets at fair value through profit or loss	329,368,799	400,741,910
Derivative financial assets:
Forward foreign exchange contracts	–	1,756,118
Financial assets at amortised cost:
Cash and cash equivalents	18,289,567	14,081,343
Cash collateral at broker	4,489,272	2,383,962
Other assets	104,298	27,345
Total assets	352,251,936	418,990,678
Liabilities
Financial liabilities at fair value through profit or loss:
Financing agreements	23,789,792	80,441,157
Derivative financial liabilities:
Forward foreign exchange contracts	87,967	–
Financial liabilities at amortised cost:
Cash collateral due to broker	14,400	–
Other liabilities	1,978,088	1,583,614
Total liabilities	25,870,247	82,024,771

The value of the market bond was £7.8 million as at 31 March 2024, excluding accrued interest of £0.1 million (31 March 2023:

£48.9 million, excluding accrued interest of £0.3 million); and the value of the bilateral loan and bond portfolio were £296.0 million

as at 31 March 2024, excluding accrued interest of £9.0 million (31 March 2023: £327.4 million, excluding accrued interest of

£14.1 million).

See Note 16 for a summary of the movement in fair value in the Company’s investments for the year.

10. Derivative Contracts

Forward Foreign Exchange Contracts:

The following forward foreign exchange contracts were open as at 31 March 2024:

Counterparty	Settlement date	Buy currency	Buy amount	Sell currency	Sell amount	Unrealised loss GBP
The Bank of New York Mellon	16 May 2024	GBP	153,069,538	EUR	(178,830,000)	(87,967)
Unrealised loss on forward foreign exchange contracts						(87,967)

The following forward foreign exchange contracts were open as at 31 March 2023:

Counterparty	Settlement date	Buy currency	Buy amount	Sell currency	Sell amount	Unrealised gain GBP
The Bank of New York Mellon	19 May 2023	GBP	163,823,152	EUR	(184,070,000)	1,756,118
Unrealised gain on forward foreign exchange contracts						1,756,118

11. Other Liabilities

	31 Mar 2024 GBP	31 Mar 2023 GBP
Investment management, depositary and administration fees payable
Investment management fees payable	317,221	358,118
Depositary fees payable	66,708	33,090
Administration fees payable	37,548	41,939
	421,477	433,147
Other operating payables
Registration fees payable	148,917	88,917
Legal fees payable	86,436	73,800
Audit fees payable	85,375	30,775
Directors’ fees payable	57,887	53,750
Corporate Secretary fees payable	37,500	18,750
Research fees payable	35,144	17,644
Other expense accruals	1,105,352	866,831
	1,556,611	1,150,467
Totalother liabilities	1,978,088	1,583,614

12. Structured Entities Not Consolidated

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who

controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by

means of contractual arrangements. A structured entity often has some or all of the following features or attributes:

• restricted activities;

• a narrow and well defined objective, such as to effect a tax-efficient lease, carry out research and development activities,

provide a source of capital or funding to an entity or provide investment opportunities for investors by passing on risks and

rewards associated with the assets of the structured entity to investors;

• insufficient equity to permit the structured entity to finance its activities without subordinated financial support; and

• financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other

risks (tranches).

The Company has concluded that the unlisted entities in which it invests, but does not consolidate, meet the definition of

structured entities. Cheyne utilises structured entities in order to obtain leverage, whilst limiting recourse to the underlying funds.

Cheyne implements an off-balance sheet funding structure by establishing an orphan SPV (“LOL Vehicle”) to own and manage

a discrete, diversified pool of repackaged senior debt exposures financed pro rata by Cheyne funds and a bank. The Sponsors

who will fund the Orphan SPV will be a combination of Cheyne managed funds, of which RECI is one. The bank lender faces

RELF (an orphan SPV established for the purpose of holding and financing a discrete pool of senior mortgage exposures, held

in listed/cleared bond format). RECI, alongside other participating Cheyne funds, holds asset-linked notes issued by RELF. The

recourse is either to the RELF only, or via certain limited recourse fund guarantees (i.e. maximum 25% of amounts borrowed).

Financing is “off-balance sheet” and all other assets in RECI are unencumbered, except insofar as a limited recourse guarantee is

provided. This arrangement limits RECI’s exposure to the underlying credit(s) and financing. This conclusion will be reassessed

on an annual basis, if any of these criteria or characteristics change.

As a result, the Company recognises its interests in structured entities as investments at fair value through profit or loss in

accordance with IFRS 10 Consolidated Financial Statements and therefore there is no requirement to consolidate in full. However,

in line with IFRS 12 Disclosure of Interest in Other Entities, the details of the interests in the unconsolidated structured entities

are disclosed on the next page. The maximum exposure to loss is the carrying amount of the financial assets held as at 31 March

2024 and 31 March 2023.

31 March 2024

Name	Fair value of loans 1 GBP	Undrawn commitment GBP	Carrying value GBP	Nature and purpose of the entity	Location	Equity held	Percentage held 2 %	Other exposure 3
4 RELF
Fulton Road	15,261,761	17,463,239	452,856	To invest in Fulton Road real estate	United Kingdom	No	–	No
Kensington	17,550,039	235,920	8,035,371	To invest in Kensington real estate	United Kingdom	No	–	No
Lifestory	12,650,000	–	4,162,723	To invest in Lifestory real estate	Luxembourg	No	–	No
Ruby	8,193,829	1,559,872	4,166,958	To invest in Ruby real estate	Luxembourg	No	–	No
Sabina	15,868,950	6,562,102	8,865,264	To invest in Sabina real estate	Luxembourg	No	–	No
Cheyne French Funding Sub-Fund 3	10,371,910	3,298,879	10,371,911	To invest in Cheyne French Funding Sub-Fund 3 real estate	France	No	–	No
Cheyne French Funding Sub-Fund 8	24,477,358	5,202,294	24,477,370	To invest in Cheyne French Funding Sub-Fund 8 real estate	France	No	–	No

1

This amount excludes interest receivables.

2

RECI has interest in the structured entities through loan notes instruments and hence the equity percentage held is nil.

3

Other exposure indicates if the investment in the structured entity comes with any associated potential valuation uplift. These can include, but are not limited to: profit share, variable exit

fees, and exposure to enterprise value uplift.

4

The total loan exposure on RELF will not equal the carrying value disclosed above due to financing within the RELF structure.

31 March 2023

Name	Fair value of loans 1 GBP	Undrawn commitment GBP	Carrying value GBP	Nature and purpose of the entity	Location	Equity held	Percentage held 2 %	Other exposure 3
4 RELF
Earlsfield	12,612,167	707,833	6,530,846	To invest in Earlsfield real estate	United Kingdom	No	–	No
Kensington	8,896,085	10,737,000	4,143,684	To invest in Kensington real estate	United Kingdom	No	–	No
Lifestory	8,215,843	4,434,157	4,713,773	To invest in Lifestory real estate	Luxembourg	No	–	No
Pamplona	3,084,772	1,469,228	1,729,737	To invest in Pamplona real estate	Luxembourg	No	–	No
Ruby	2,807,680	8,577,320	1,833,373	To invest in Ruby real estate	Luxembourg	No	–	No
Sabina	–	–	6,465,322	To invest in Sabina real estate	Luxembourg	No	–	No
Cheyne French Funding Sub-Fund 3	11,650,667	3,630,876	11,650,667	To invest in Cheyne French Funding Sub-Fund 3 real estate	France	No	–	No
Cheyne French Funding Sub-Fund 8	22,663,417	7,788,478	22,666,471	To invest in Cheyne French Funding Sub-Fund 8 real estate	France	No	–	No
Cheyne French Funding Sub-Fund 9	8,470,707	2,477,156	8,471,940	To invest in Cheyne French Funding Sub-Fund 9 real estate	France	No	–	No

1

This amount excludes interest receivables.

2

RECI has interest in the structured entities through loan notes instruments and hence the equity percentage held is nil.

3

Other exposure indicates if the investment in the structured entity comes with any associated potential valuation uplift. These can include, but are not limited to: profit share, variable exit

fees, and exposure to enterprise value uplift.

4

The total loan exposure on RELF will not equal the carrying value disclosed above due to financing within the RELF structure

13. Financing Agreements

The Company enters into repurchase agreements with several banks to provide leverage. This financing is collateralised against

certain of the Company’s bond portfolio assets with a fair value totalling £39.5 million (31 March 2023: £139.9 million) and a weighted

average cost of 7.73% (31 March 2023: 5.86%) per annum. The contractual maturity period of the repurchase arrangements is

3 to 6 months (31 March 2023: 3 to 6 months).

This short-term financing is shown as a current liability in the Statement of Financial Position whereas the collateralised assets

are shown as non-current. The movement in financing agreements amounting to £56.5 million (31 March 2023: £22.5 million)

and finance costs paid amounting to £3.7 million (31 March 2023: £1.6 million) are shown as financing activity in the Statement

of Cash Flows.

The following table summarises movements under financing agreements as at 31 March 2024 and 31 March 2023.

	31 Mar 2024 GBP	31 Mar 2023 GBP
Balance as at 1 April	80,441,157	100,562,634
Proceeds under financing agreements	240,694,426	666,877,816
Payments under financing agreements	(297,180,747)	(689,398,896)
Finance costs	3,514,078	3,972,353
Finance costs paid	(3,679,122)	(1,572,750)
	23,789,792	80,441,157

During the financial year ended 31 March 2024, the Company continued to maintain some off-balance sheet financing agreements.

These facilities entered into during the previous financial year do not have recourse to the Company, and the lending is structured

using off-balance entities, and secured against the specific loans involved. The aggregate amount of these off-balance sheet

loans as at 31 March 2024 was £33.9 million (31 March 2023: £20.6 million).

During the financial year ended 31 March 2024, the Company continued to maintain an off-balance sheet financing agreement

which does have partial recourse to the Company. The amount of partial recourse commitment as at 31 March 2024 was

£3.9 million (31 March 2023: £2.9 million). No expected loss from providing this guarantee has been recognised in these financial

statements and no additional collateralisation has been paid as of year end.

14. Share Capital

The issued share capital of the Company consists of shares and its capital as at the year end is represented by the net proceeds

from the issuance of shares and profits retained up to that date. The Company does not have any externally imposed capital

requirements. As at 31 March 2024, the Company had capital of £326.4 million (31 March 2023: £337.0 million).

Authorised Share Capital	31 Mar 2024 Number of Shares	31 Mar 2023 Number of Shares
Shares of no par value each	Unlimited	Unlimited
Shares issued and fully paid
Shares at the start of the year	229,332,478	229,332,478
Shares repurchased and held in treasury	(4,095,000)	–
Shares at the end of the year	225,237,478	229,332,478

The below table provides a reconciliation of the impact of the shares repurchased and held in treasury versus the data presented

in the original March 2024 Fact Sheet which did not account correctly for the buybacks. The March 2024 Fact Sheet was

subsequently re-published.

	Fact Sheet	Financial Statements	Difference	Description
Shares	229, 332, 478	225, 237, 478	4, 095, 000	Shares repurchased and held in treasury
AUM	£ 331, 405, 039	£ 326, 381, 689	£ 5, 023, 350	Cost of buyback
NAV per share	£ 1.45	£ 1.45	–

Treasury Shares	31 Mar 2024 Number of Shares	31 Mar 2023 Number of Shares
Shares repurchased and held in treasury	4, 095, 000	–

Pursuant to the share buyback authority approved by the Company’ s Shareholders at the AGM on 15 September 2023, the Board

has granted authority to the Company’ s broker, Liberum Capital Limited, to purchase the Company’ s shares in the market, subject

to pre-agreed parameters. All shares purchased during the year are held in treasury.

The Company purchased 4.1 million (31 March 2023: Nil) shares in the market during the year. The total amount paid to purchase

the shares was £ 5.0 million (31 March 2023: £ Nil) and this was presented as a reduction from the total equity.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to

Shareholders. The Company is a closed-ended listed investment company and, as such, Shareholders in the Company have no

right to redeem their shares. Any redemption offered to Shareholders shall be at the discretion of the Directors of the Company.

The Company currently conducts its affairs so that the shares issued by the Company can be recommended by Independent

Financial Advisers to ordinary retail investors in accordance with the FCA rules in relation to non-mainstream pooled investment

products and intends to continue to do so for the foreseeable future. The shares are excluded from the FCA’ s restrictions which

apply to non-mainstream investment products because they are shares in an investment company, which if it were domiciled in

the United Kingdom, would currently qualify as an investment trust.

There were no changes in the policies and procedures during the year ended 31 March 2024 with respect to the Company’ s

approach to its share capital management.

15. Financial Instruments and Associated Risks

The Company’ s investment activities expose it to various types of risk which are associated with the financial instruments and

markets in which it invests. The Company’ s risk management policies seek to minimise the potential adverse effects of these

risks on the Company’ s financial performance.

The financial risks to which the Company is exposed include market risk (including currency risk and interest rate risk), credit

risk, liquidity risk and prepayment and re-investment risks. In certain instances as described more fully below, the Company

enters into derivative transactions in order to help mitigate particular types of risk.

(a) Market Risk

Market risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in

market factors. Market risk comprises currency risk, interest rate risk and other price risk.

The Company’ s strategy on the management of market risk is driven by the Company’ s investment objectives detailed in Note 1

which in respect of the Company is to invest primarily in debt secured by commercial or residential properties in the United Kingdom

and Western Europe.

The Company’ s market risk is managed on a daily basis by the Investment Manager in accordance with policies and procedures

detailed below.

The sensitivity analysis below is based on a change in one variable while holding all other variables constant. In practice, this is

unlikely to occur, and changes in some of the assumptions may be correlated – for example, change in foreign currency rate

and change in market values. In addition, as the sensitivity analysis uses historical data as a basis for determining future events,

it does not encompass all possible scenarios, particularly those that are of an extreme nature. The sensitivity analyses are based

on the Investment Manager’ s best estimate of reasonably possible changes in interest rates, foreign currency rates and market

prices. In practice the actual trading results may differ from the sensitivity analyses in the following pages and the differences

may be material.

(i) Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign

exchange rates.

The primary purpose of the Company’s foreign currency economic hedging activities is to protect against the volatility associated

with investments denominated in foreign currencies and other financial assets and liabilities created in the normal course of business.

The Company is exposed to risks that the exchange rate of its currency relative to other foreign currencies may change in a

manner that has an adverse effect on the value of that portion of the Company’s financial assets or liabilities denominated in

currencies other than GBP.

The Company may enter into spot currency transactions or utilise derivatives such as forwards to hedge against currency fluctuations.

The Company manages its foreign exchange exposure with forward foreign exchange contracts. These instruments are detailed

in Note 10.

The currency profile of the Company, including derivatives at fair value, at the year end date was as follows:

As at 31 March 2024:

Currency	Monetary Assets GBP	Monetary Liabilities GBP	Forward Foreign Exchange Contracts GBP	Net currency exposure GBP
GBP	195,176,694	(17,112,488)	153,069,538	331,133,744
EUR	157,068,770	(8,669,792)	(153,157,505)	(4,758,527)
USD	6,472	–	–	6,472
	352,251,936	(25,782,280)	(87,967)	326,381,689

As at 31 March 2023:

Currency	Monetary Assets GBP	Monetary Liabilities GBP	Forward Foreign Exchange Contracts GBP	Net currency exposure GBP
GBP	242,499,869	(60,997,713)	163,823,152	345,325,308
EUR	174,728,260	(21,027,058)	(162,067,034)	(8,365,832)
USD	6,431	–	–	6,431
	417,234,560	(82,024,771)	1,756,118	336,965,907

As at 31 March 2024, had the GBP strengthened by 5% or 10% in relation to all currency exposure of the Company with all other

variables held constant, the equity of the Company and the net profit/(loss) per the Statement of Comprehensive Income would

have changed by the amounts shown below. The analysis is performed on the same basis for 2023.

By 5%	31 Mar 2024 GBP	31 Mar 2023 GBP
EUR	(237,926)	(418,292)
USD	324	322
Total	(237,602)	(417,970)

By 10%	31 Mar 2024 GBP	31 Mar 2023 GBP
EUR	(475,853)	(836,583)
USD	647	643
Total	(475,206)	(835,940)

A 5% or 10% weakening of the GBP against the above currencies would have resulted in an equal but opposite effect on the

equity of the Company and net profit/(loss) per the Statement of Comprehensive Income to the amounts shown above, on the

basis that all other variables remained constant.

The sensitivity analysis reflects how the equity of the Company would have been affected by changes in the relevant risk variable

that were reasonably possible at the reporting date. Management has determined that a fluctuation of 5% in foreign exchange

rates is reasonably possible, considering the environment in which the Company operates.

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in

market interest rates.

The Company’s interest rate risk is managed by the Investment Manager in accordance with policies and procedures detailed below.

The Company invests in fixed and floating rate real estate related debt assets (which includes loans and bonds). The decision

to enter into a fixed or a floating rate deal is agreed with the borrower on a loan by loan basis. Interest rate risk arises from the

effects of fluctuations in the prevailing rates on the fair of financial assets and liabilities and future cash flow.

A fundamental principle of bond investing is that market interest rates and bond prices generally move in opposite directions.

When market interest rates rise, prices of fixed-rate bonds fall. However, as explained under the key sources of estimation

uncertainty in Note 3, the Investment Manager believes that the loan or bond’s own effective yield represents the most

appropriate rate to discount future cash flows. The use of this judgement limits the impact of the fluctuations in market interest

rates on the valuation of the bilateral bonds and loans portfolio.

The Investment Manager has considered relevant geopolitical and macroeconomic factors including the rise of market interest

rate during the year and continues to believe that this key judgement remains appropriate due to the bespoke nature of the

investment portfolio and the dislocation between the yield of these assets and the market interest rate.

Had movement in market interest rates been fully reflected in the valuation of fixed-rate assets held by the Company, the estimated

impact of a rise of 1% (100 basis points) or 5% (500 basis points) (31 March 2023: 1% (100 basis points) or 5% (500 basis points))

on the NAV of the Company, is a decrease of £4.4 million or £22.1 million (31 March 2023: £6.3 million or £31.7 million), respectively.

A decrease in interest rates by 1% (100 basis points) or 5% (500 basis points) is estimated to result in an increase in the NAV of

the Company by a similar amount. These estimates are calculated based on the fair value of the fixed-rate securities including

accrued interest held by the Company as at 31 March 2024 and 31 March 2023, and their weighted average lives.

The interest rate profile of the Company as at 31 March 2024 was as follows:

	Fixed GBP	Floating GBP	Non-interest bearing GBP	Total GBP
Financial assets at fair value through profit or loss	195,849,055	108,201,524	1 25,318,220	329,368,799
Cash and cash equivalents	–	18,289,567	–	18,289,567
Cash collateral at broker	–	4,489,272	–	4,489,272
Other assets	–	–	104,298	104,298
Financing agreements	–	(23,667,814)	2 (121,978)	(23,789,792)
Cash collateral due to broker	–	(14,400)	–	(14,400)
Derivative financial liabilities – forward foreign exchange contracts	–	–	(87,967)	(87,967)
Other liabilities	–	–	(1,978,088)	(1,978,088)
Total	195,849,055	107,298,149	23,234,485	326,381,689

1

Accrued interest and equity securities related to financial assets at fair value through profit or loss.

2

Interest payable related to financing agreements.

The maturity profile of the Company as at 31 March 2024 was as follows:

	Within one year GBP	One to five years GBP	Over five years GBP	Total GBP
Financial assets at fair value through profit or loss	105,966,061	223,365,548	37,190	329,368,799
Cash and cash equivalents	18,289,567	–	–	18,289,567
Cash collateral at broker	4,489,272	–	–	4,489,272
Other assets	104,298	–	–	104,298
Financing agreements	(23,789,792)	–	–	(23,789,792)
Cash collateral due to broker	(14,400)	–	–	(14,400)
Derivative financial liabilities – forward foreign exchange contracts	(87,967)	–	–	(87,967)
Other liabilities	(1,978,088)	–	–	(1,978,088)
Net Assets	102,978,951	223,365,548	37,190	326,381,689

The interest rate profile of the Company as at 31 March 2023 was as follows:

	Fixed GBP	Floating GBP	Non-interest bearing GBP	Total GBP
Financial assets at fair value through profit or loss	277,244,059	99,067,135	1 24,430,716	400,741,910
Cash and cash equivalents	–	14,081,343	–	14,081,343
Cash collateral at broker	–	2,383,962	–	2,383,962
Derivative financial assets –
forward foreign exchange contracts	–	–	1,756,118	1,756,118
Other assets	–	–	27,345	27,345
Financing agreements	–	(80,154,135)	2 (287,022)	(80,441,157)
Other liabilities	–	–	(1,583,614)	(1,583,614)
Total	277,244,059	35,378,305	24,343,543	336,965,907

1

Accrued interest and equity securities related to financial assets at fair value through profit or loss.

2

Interest payable related to financing agreements.

The maturity profile of the Company as at 31 March 2023 was as follows:

	Within one year GBP	One to five years GBP	Over five years GBP	Total GBP
Financial assets at fair value through profit or loss	81,576,013	150,257,260	168,908,637	400,741,910
Cash and cash equivalents	14,081,343	–	–	14,081,343
Cash collateral at broker	2,383,962	–	–	2,383,962
Derivative financial assets – forward foreign exchange contracts	1,756,118	–	–	1,756,118
Other assets	27,345	–	–	27,345
Financing agreements	(80,441,157)	–	–	(80,441,157)
Other liabilities	(1,583,614)	–	–	(1,583,614)
Net Assets	17,800,010	150,257,260	168,908,637	336,965,907

The value of the asset-backed securities will fluctuate as a result of changes in market prices (other than those arising from currency

risk or interest rate risk), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments

traded in the market. The loans in the Company are recorded at fair value on initial recognition and subsequent measurement.