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