TwentyFour Income Fund Limited
TwentyFour Income Fund Limited (TFIF) is a London listed closed-ended investment company which targets less liquid, higher yielding asset-backed securities (ABS) in the UK, Europe, Australia and the US.
A once comparatively overlooked asset class, the ABS market is growing substantially, as banks have returned to more traditional forms of funding post the end of Quantitative Easing (QE), resulting in a greater pool of assets for investment.
TFIF favours secured assets such as mortgages (UK, Europe, Australia) and secured corporate loans (UK, Europe, US) for investment in its portfolio.
Investment Objective
The Company aims to generate attractive risk-adjusted returns, principally through income distributions by investing in a diversified portfolio of asset-backed securities in the UK, Europe, Australia and the US.
Key Characteristics
The Company has a target annual net total return of Bank Base Rate + 6-8% per annum. Since 24 February 2023 it has targeted an annual dividend of 8p, paid quarterly to shareholders. As substantially all of the income generated by the Company is paid as income, any additional income, over the 8p target, is paid in a balancing dividend in the final quarter.
Realisation elections may be made at three year intervals whereby company shareholders may elect to sell all or part of their holdings of ordinary shares back to the Company at a guaranteed 2% discount to NAV, or, alternatively, continue their investment in the Company.
Investment Approach
The Company is actively managed and invests in a diversified portfolio of Asset Backed Securities, predominantly in the UK and Europe but also in Australian Residential Mortgage Backed Securities and in US Collateralised Loan Obligations. 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. Efficient portfolio management techniques can be employed such as currency hedging, interest rate hedging and the use of derivatives such as credit default swaps to help mitigate market volatility.
The Company is not managed in reference to any benchmark index. Shareholders may elect to realise all or part of their holdings of Ordinary Shares every three years. In the event that investors elect to realise all or part of their holdings of Ordinary Shares, the Company may, but shall not be obliged to offer to redeem, repurchase or purchase those Ordinary Shares. Any Ordinary Shares that are not redeemed, repurchased or purchased shall be converted into Realisation Shares. Assets and liabilities attributable to Shareholders holding Realisation Shares will be managed as part of a separate realisation pool and in accordance with an orderly realisation programme with the aim of making progressive returns of cash to the holders of Realisation Shares as soon as practicable. This is only a summary; details of the investment policy, including investment restrictions, are set out in the Prospectus.
Board of Directors
