TwentyFour Select Monthly Income Fund
TwentyFour Select Monthly Income Fund is a London listed closed-ended investment company which is designed to take advantage of the premium returns available from “less liquid” instruments across the debt spectrum. These securities do not offer enough liquidity for daily priced OEICs, but are well suited to a traded closed-ended vehicle, where investors can obtain liquidity via the exchange and the quarterly tender facility.
This part of fixed income has been largely overlooked in the recent liquidity driven market, and therefore currently represents attractive relative value.
Investment Objective
The Company aims to generate attractive risk-adjusted returns, principally through income distributions, by investing in a diversified portfolio of fixed income credit products.
Key Characteristics
At launch, the Company had a target net total return on the original issue price of between 8% and 10% per annum. This comprised a target dividend payment of 6p per share per annum and a target capital return of 2p-4p, both based on the original issue amount of 100p. Whilst there is no guarantee that this can or will be achieved, the 6p per share per annum Dividend Target has consistently been met.
Investment Approach
The Company actively invests in a diversified portfolio of fixed income credit securities that exhibit an illiquidity premium, and which the Portfolio Managers believe represent attractive relative value. These securities will include (but are not limited to): corporate bonds, asset-backed securities, high yield bonds, bank capital, Additional Tier 1 securities, and leveraged loans. Uninvested cash or surplus capital or assets may be invested on a temporary basis in cash and/or a range of assets including money market instruments and government bonds. The Company may also use derivatives.
This is only a summary; details of the Company’s investment policy, including investment restrictions, are set out more fully in the Prospectus. Typical investors for whom these Ordinary Shares are intended are professional investors or professionally advised retail investors who are principally seeking monthly income from a portfolio of credit securities. The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products, because the Company would qualify as an investment trust if it was based in the UK. The Fund is not managed in reference to any benchmark index.
Board of Directors
