TwentyFour Select Monthly Income Fund Reports Strong Half-Year Performance
Why we think this is good
The fund has demonstrated robust performance in the first half of the year, with several positive indicators. The NAV total return per Ordinary Share of 4.9% is impressive, showing good value creation for investors. The increase in Net Assets from £197.73m to £234.38m indicates growing investor confidence and effective asset management. The fund is trading at a 2.09% premium to NAV, suggesting market optimism. Additionally, the strong income generation with a dividend cover of 1.11x is reassuring for income-focused investors. While there are always risks in investment markets, the fund managers appear to be actively managing these and maintain a positive outlook for credit markets. The expectation of further spread compression and continued strong income generation bodes well for future performance.
Key Points
- NAV total return per Ordinary Share of 4.9%
- Net Assets increased to £234.38m from £197.73m
- Trading at a 2.09% premium to NAV
- Strong income generation with dividend cover of 1.11x
- Positive outlook for credit markets
- Active management of various investment risks
Summary
TwentyFour Select Monthly Income Fund has released its interim results for the six months ended 31 March 2025, showing strong performance with a 4.9% NAV total return per Ordinary Share. The fund's net assets increased to £234.38m from £197.73m, demonstrating growth and investor confidence. The fund is currently trading at a 2.09% premium to NAV, indicating market optimism. Income generation remains robust with a dividend cover of 1.11x, which is crucial for this monthly income fund. The fund managers maintain a positive outlook for credit markets, expecting further spread compression and continued strong income generation. While various risks are acknowledged, including interest rate, credit, and liquidity risks, these are being actively managed.