REG-TwentyFour Select Monthly Income Fund: Full-year results for the year ended 30 September 2024

Twentyfour Select Monthly Income FundAnnouncement

12/12/2024 07:00

 

12 December 2024

TWENTYFOUR SELECT MONTHLY INCOME FUND LIMITED

 

(A non-cellular company limited by shares incorporated in the Island of
Guernsey under the Companies (Guernsey) Law, 2008, as amended, with registered
number 57985 and registered as a Registered Closed-ended Collective Investment
Scheme with the Guernsey Financial Services Commission. Legal entity
identifier: 549300P9Q5O2B3RDNF78).

 

 

Full-year results for the year ended 30 September 2024

 

TwentyFour Select Monthly Income Fund Limited ("SMIF" or "the Company"), the
listed, closed-ended investment company that invests in a diversified
portfolio of credit securities, is pleased to announce its full-year results
for the year ended 30 September 2024.

 

Financial highlights
* NAV per share increased 10.95% to 83.70 pence (2023: 75.44 pence)
* The NAV total return per share was 22.56% (2023: 17.54%)
* Total annual dividend for the year of 7.38 pence per share, ahead of the 6
pence target (2023: 7.37 pence per share)
* Net assets increased from £181.7m in 2023 to £219.8m over the period 
* The Company has traded at an average 1.44% premium for most of the period in
contrast to the wider investment company market
	 
Portfolio highlights
* 80% of the portfolio allocated to some of the strongest performing credit
sectors: Collateralised Loan Obligations ("CLOs") and subordinated financials
(AT1 bonds and Restricted Tier 1 bonds) which returned 25.9%, 24.22% and
25.28% respectively
* Strong performance from other sectors including European High Yield (17.7%)
* Floating-rate Asset-Backed Securities ("ABS"), and CLOs in particular,
benefitted from higher for longer central bank rates 
* The Financials sector, particularly European banks, offered compelling
risk-reward opportunities in global credit
 

Outlook

The Portfolio Manager, TwentyFour Asset Management ("TwentyFour"), expects the
Company's core exposures - CLOs and subordinated financials - to continue to
offer attractive relative value and, as such, expects to maintain its
allocations into the new financial year. Market expectations are for rates to
remain higher for longer, albeit with a gradual reduction in central bank
rates to a more neutral stance, supporting the performance of these sectors.

 

The expectation of real income growth will help maintain robust consumer
activity whilst strong issuance during the year has helped reduce the
"maturity wall" of corporate debt. TwentyFour expects these drivers to
continue into 2025, alongside a strong technical backdrop, with continued
flows into credit markets helping drive credit spreads tighter.

 

Commenting on the results, Ashley Paxton, Chair, SMIF said: "SMIF has
performed ahead of expectations for the year, with an above target 7.38 pence
dividend per share, delivered to shareholders on a monthly basis, and with a
NAV total return per share of 22.56%.

 

"The Company has benefitted from TwentyFour's expertise in credit markets and
overweight allocation to two specific sectors - CLOs and subordinated
financials - to provide shareholders with both consistent monthly income and
double digit capital growth.

 

"The Company's strong performance is reflected in the issuance of 18,310,813
new shares during the year to meet shareholder demand, making the Company one
of the most prolific issuers in the investment company sector during the
period."

 

George Curtis, Portfolio Manager, TwentyFour said: "We continue to focus on
our rigorous bottom-up process to find areas of the market where we see
attractive relative value. Both the CLO and subordinated financials sectors
have benefitted from supportive fundamental and macro tailwinds, whilst
offering a pick-up in spread and yield on a risk-adjusted basis.

 

"We expect current fundamental drivers, including strong consumer and
corporate balance sheets, to support credit markets going into 2025, with our
focus continuing to be on our current overweight allocations. Our investment
universe also continues to grow with credit quality at the highest it has ever
been, further mitigating the risk of defaults.

 

"SMIF remains of a size where we can rotate quickly between sectors as we look
to maximise returns for shareholders by continuing to look for the best
opportunities across the credit spectrum."

 

For further information please contact:

 

TwentyFour Select Monthly Income Fund
Limited                           Tel: +44 (0)20
7015 8900

John Magrath

Alistair Wilson

 

Deutsche
Numis                                                                                   
Tel: +44 (0)20 7260 1000

George Shiel

Hugh Jonathan

 

JPES
Partners                                                                                      
Tel: +44 (0)20 7520 7620

Charlotte Walsh

 

Northern Trust International Fund Administration Services (Guernsey) Limited

Emma-Jayne Wherry       Tel: +44 (0) 1481 745724

 



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