TwentyFour Income Fund Ltd (TFIFl)

Overview

TwentyFour Income Fund Limited is a closed-ended investment company established in 2013 and based in Guernsey. Managed by TwentyFour Asset Management LLP, part of the Vontobel Group, the fund emphasizes generating attractive risk-adjusted returns primarily through income distributions. It maintains a diversified portfolio focused mainly on UK and European asset-backed securities (ABS), which include various less liquid and higher-yield instruments. The fund aims for a targeted annual net total return of between 6% and 9%. Notably, since 2023, the fund has also targeted quarterly dividends equivalent to 8% of the issue price and ensures a minimum payout of 6 pence per ordinary share annually. As a constituent of the FTSE 250, it plays a pivotal role in the structured finance sector, highlighting its relevance against a backdrop of robust securitisation activity. The fund manages total assets around £933 million and operates with an ongoing charge of 0.96%.

Products and Services

• Income Distributions:

  The fund primarily focuses on generating income through distributions to shareholders, targeting an 8% return on the issue price since 2023 with a minimum of 6 pence per share each year.

• Investment in Asset-Backed Securities (ABS):

  The portfolio is diversified with a strong emphasis on UK and European ABS, targeting investments in collateralised loan obligations (CLOs), commercial mortgage-backed securities (CMBS), and consumer ABS, providing exposure to pools of financial assets such as mortgages and loans.

• CLO Investments:

  The fund selectively invests in investment-grade AAA and BBB CLO tranches as well as some high-yield BB opportunities, allowing it to strike a balance between yield potential and risk management.

• Quarterly Dividends:

  With an aim to provide a steady income stream to shareholders, the fund disburses quarterly dividends as part of its income-focused strategy, allowing investors to benefit from regular payments.

• Gearing Structure:

  The fund supports a gearing structure which enhances potential returns by leveraging invested capital, making it an attractive option for investors seeking higher yield opportunities despite inherent risks.

• Realisation Opportunities:

  The fund provides triennial realisation opportunities for its shareholders, allowing them to redeem their holdings after a specified period, contributing to investor confidence and liquidity.