TwentyFour Select Monthly Income Fund (SMIF)

Overview

The TwentyFour Select Monthly Income Fund is a closed-ended investment company based in Guernsey and listed on the London Stock Exchange. Launched in March 2014, the fund aims to deliver attractive risk-adjusted returns, particularly through monthly income distributions. It invests in a carefully diversified portfolio of fixed income credit securities that provide an illiquidity premium across global credit markets. This diversified investment strategy includes a variety of asset classes such as corporate bonds, asset-backed securities, and high-yield bonds. With a target net total return of 8-10% per annum on its initial 100p issue price, the fund has successfully maintained its commitment to paying a 6p annual dividend per share. The management of this fund is overseen by TwentyFour Asset Management LLP, which applies an ongoing charge of approximately 1.19%. Designed for both professional and advised retail investors, the fund provides liquidity through daily exchange trading coupled with a quarterly tender facility, making it an appealing option for those in search of consistent monthly income from less liquid credit opportunities.

Products and Services

• Corporate Bonds

  The fund invests in corporate bonds, which are debt securities issued by companies to finance their operations, representing a potential source of stable income through fixed interest payments.

• Asset-Backed Securities

  These securities are backed by financial assets such as loans or credit card debt, allowing investors to benefit from the cash flows generated by the underlying assets while diversifying risk exposure.

• High Yield Bonds

  High yield bonds, or junk bonds, offer higher interest rates compared to investment-grade bonds as compensation for their increased credit risk, attracting investors looking for higher returns.

• Bank Capital Securities

  This includes instruments like Additional Tier 1 (AT1) securities, which banks issue to meet capital requirements, thus providing investors an opportunity to earn returns associated with the bank's risk profile.

• Leveraged Loans

  Leveraged loans are loans made to companies with high levels of debt, delivering attractive risk-adjusted returns through interest payments and potential price increases in the secondary market.

• Payment-in-Kind Notes

  These notes allow issuers to make interest payments in additional securities rather than cash, appealing to investors seeking flexibility and potential growth in their holdings.

• Cash and Money Market Instruments

  The fund temporarily allocates portions of its portfolio to cash and money market instruments to maintain liquidity and manage risk effectively, ensuring availability for future investments and distributions.

• Government Bonds

  Investment in government bonds provides a level of security and lower risk, as they are backed by the government, serving as a stabilizing component in the fund's overall portfolio.

• Derivatives

  The fund may utilize derivatives for hedging purposes or to enhance returns, allowing for greater flexibility and risk management within the investment strategy.