Select Monthly Income Fund

TwentyFour Select Monthly Income Fund is a London listed closed-ended fund 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 quartely buyback facility that the fund offers.

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 closed-ended fund aims to generate attractive risk-adjusted returns, principally through income distributions by investing in a diversified portfolio of fixed income credit products.

Key Characteristics

The fund is targeting a dividend of at least 6% per annum, payable monthly, and a net total return of 8-10% per annum. There is enhanced liquidity through the placing programme and quarterly buyback facility.

Type of fund

Closed-ended fund.

Launch Date

10th March 2014

Domicile

Guernsey

Listing

Traded on the LSE main market.

Key Parties

  • Investment Manager: TwentyFour Asset Management
  • Sponsor, Broker and Financial Adviser: Numis Securities Ltd
  • Administrator: Northern Trust Fund Administration Services (Guernsey) Ltd
  • Custodian: Northern Trust Company
  • Registrar: Computershare
  • Auditors: PricewaterhouseCoopers

Share Classes

Ordinary share class only

Issue Price: 100p per Ordinary Share

Dealing

Daily trading on LSE

Dividend Policy

An amount at least equal to the net income of the Fund is intended to be distributed as a dividend on a monthly basis.

ISA & SIPP eligible

Yes

Fund charges and costs

  • Investment management fee of 0.75% of lower of market cap or NAV
  • No performance fee

Regulatory

The Fund currently conducts its affairs so that the shares issued by it can be recommended by IFAs to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future.

The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because the Fund would qualify as an investment trust if the Fund was based in the UK.

THE INFORMATION CONTAINED HERE IS FOR PROFESSIONAL INVESTORS ONLY
Please remember that you should not base investment decisions on past performance and that prices may fluctuate and you may not get back your original investment. Past performance is not a reliable guide to future performance.
The funds’ risk category and a summary of some of the risks may be found in the Key Investor Information Document (KIID) and a detailed description of the risks can be found in Prospectus.
All Funds may invest in derivatives for efficient portfolio management purposes. The value of these investments may fluctuate significantly, but the overall intention of the use of derivative techniques is to reduce volatility of returns. A detailed description of the risks can be found in the Prospectus.
The information, data, analyses, and opinions contained herein (1) may not be copied or redistributed, (2) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (3) are not warranted to be correct, complete, or accurate.

Welcome to TwentyFour Asset Management LLP, an active asset manager in the fixed income market.

This website is intended solely for the use of professional investors and/or eligible counterparties and is not for general public distribution. If you are not a professional investor or eligible counterparty you should not view or seek to rely on any information contained in this website and should contact your financial adviser.

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Terms & Conditions

Special Legal Information regarding the Investment Funds / Special Terms and Conditions of Use.

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This website is directed exclusively at persons who are professional clients or eligible counterparties for the purposes of the handbook of rules and guidance issued from time to time by the FCA. ‘Professional clients’ are typically institutional investors, such as banks, insurance companies, pension funds and managers, collective investment schemes, local authorities, IFAs and large companies. Occasionally TwentyFour AM may be willing to treat an individual as an ‘elective’ professional client, where they have sufficient expertise, experience and knowledge, although where this is the case, it will be explicitly agreed between the relevant client and TwentyFour AM in writing. For the avoidance of doubt, any other individuals should consider themselves to be ‘retail clients’ and therefore should not view or seek to rely on any information contained in this website.

This website may contain information or documents which constitute a financial promotion for the purposes of the Financial Services and Markets Act 2000 and the FCA Rules.

TwentyFour AM neither provides investment advice to, nor receives and transmits orders from, investors in the Funds nor does it carry on any other activities with or for such investors that constitute “MiFID or equivalent third country business” for the purposes of the FCA Rules.

This website is reserved exclusively for non-US persons and should not be accessed by any person in the United States. In case of doubt, please see the end of this document for a definition of “US Person”.

This website is not intended to constitute, and should not be construed as, investment advice. Potential investors in the Funds should seek their own independent financial advice. This website has been provided for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to on this website. This website is not intended as and is not to be taken as an offer or solicitation with respect to the purchase or sale of any security or interest, nor does it constitute an offer or solicitation in any jurisdiction, including those in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such a solicitation or offer. Any decision to purchase securities or interests with respect to any of the Funds described on this website must be based solely upon the information contained in the Prospectus or Private Placement Memorandum for that Fund, including any supplements thereto, which must be received and reviewed prior to any investment decision. Any person subscribing for an investment must be able to bear the risks involved and must meet the suitability requirements relating to such investments. Some or all alternative investment programmes may not be suitable for certain investors.

Although the information in this website is believed to be materially correct, no representation or warranty is given as to the accuracy of any of the information provided. Certain information included in this website is based on information obtained from sources considered to be reliable. However, any projections or analysis provided to assist the recipient of this website in evaluating the matters described on this website may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results. Furthermore, to the extent permitted by law, neither the Funds nor any of their agents, service providers or professional advisers assumes any liability or responsibility nor owes any duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this website or for any decision based on it.

Past performance is not a guide to future performance. The actual performance realised by any given investor will depend on, amongst other things, the Fund invested into, the class of shares/interests subscribed for, the period during which such shares/interests are held and in what currency such shares/interests are held. This website may include returns for various indices. These indices are not intended to be direct benchmarks for a particular Fund, nor are they intended to be indicative of the type of assets in which a particular Fund may invest. The assets invested in by the Funds will likely be materially different from the assets underlying these indices, and will likely have a significantly different risk profile.

Details of the specific and general risks associated with each Fund are contained within the Prospectus and the Simplified Prospectus of the Fund. Among the risks we wish to call to the particular attention of prospective investors are the following:

  1. past performance is not a guide to future performance;
  2. the value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested;
  3. in order to offer a higher yield, a proportion of a Fund may be invested in higher risk securities that may increase the risk to your capital;
  4. in order to offer a higher yield, a proportion of a Fund may be invested in higher risk securities that may increase the risk to your capital;
  5. investments in fixed interest securities and bonds are subject to credit and market risk;
  6. the value of the underlying assets and therefore the value of shares in any Fund will be impacted by fluctuations in interest rates and the perceived credit risk of an issuer;
  7. investments may be concentrated in any one country, sector or issuer;
  8. a Fund may have a significant exposure to high yield bonds, emerging market bonds or non investment grade or unrated bonds at any time;
  9. non-investment grade bonds may increase the risk to capital;
  10. derivatives may be used to achieve Fund objectives and allocations may vary significantly over time;
  11. the yield or the capital value of a Fund (or both) can fluctuate and investors may not get back their original investment;
  12. in the case of any new Funds, there is a risk that if the anticipated size of the Fund is not achieved, the proportion of charges and expenses allocated to the investment may be higher and the value of the investment consequently reduced;
  13. investments in foreign markets are subject to special currency, political and economic risks;
  14. exchange rates may cause the value of underlying overseas investments to go down or up; and
  15. investments in emerging markets may be more volatile than other markets and the risk to capital is therefore greater; additionally, the economic and political situations may be more volatile than in established economies which may adversely influence the value of investments made.

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