TwentyFour Select Monthly Income Fund Reports Solid Half-Year Results
Why we think this is good
The fund has delivered a solid performance in the first half of the year, with a NAV total return of 4.9% and dividend payments ahead of target. All sectors contributed positively, with CLOs and Insurance being standout performers. The fund's ability to issue new shares at a premium to NAV demonstrates strong investor demand, especially noteworthy given the challenging wider investment company market. While growth has slowed compared to the previous period, the overall picture remains positive with increased net assets and a favorable outlook for credit markets. The portfolio manager's cautious approach to macro volatility and policy uncertainty shows prudent risk management.
Key Points
- NAV per Ordinary share increased to 83.87p
- NAV total return per Ordinary share was 4.9%
- Dividend paid per Ordinary share of 3.88p, ahead of 6p annual target
- Net assets increased to £234.38m
- Fund traded at an average 2.09% premium to NAV
- All sectors contributed positively to returns
- CLOs and Insurance were the strongest performing sectors
- 16,900,000 new Ordinary shares issued due to shareholder demand
- Positive outlook for credit markets despite macro volatility
Summary
TwentyFour Select Monthly Income Fund has reported solid interim results for the six months ended 31 March 2025. The fund achieved a NAV total return of 4.9% and paid dividends of 3.88p per share, ahead of its 6p annual target. Net assets increased to £234.38m, up from £219.77m. Notably, the fund continued to trade at a premium to NAV of 2.09%, bucking the trend in the wider investment company market. All sectors contributed positively, with CLOs and Insurance being the strongest performers. The outlook remains positive, supported by strong corporate and bank balance sheets, healthy consumer data, and attractive yields offering downside protection.