Portfolio Update

18 January 2021
 

TwentyFour Select Monthly Income Fund Limited

TwentyFour Select Monthly Income Fund Limited (the “Company”) was incorporated with limited liability in Guernsey, as a closed-ended investment company on 12 February 2014. The Company’s shares were listed with a Premium Listing on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange (“LSE”) on 10 March 2014.
 

Re:  Portfolio Update
 

Portfolio Update

At the Company’s most recent tender opportunity, following a strong rally in the share price during the second half of the year, 46,100,745 shares were tendered, at a discount of NAV-2%. 10,000,000 of the tendered shares were placed by the Company’s broker, resulting in a net redemption of 36,100,745 shares (approximately 15.9% of the Company’s Ordinary Shares, for further information please refer to Company announcements on 6 and 11 January 2021).

Given the volume of the required asset liquidation to meet the net tender amount, the Portfolio Managers (“PMs”) saw this as an opportunity to re-shape the portfolio and focus on liquidating those securities which were seen as least conducive to the objectives of the Company. Assisted by a strong supporting market and demand for the underlying securities in the portfolio, the PMs are confident they’ve been able to achieve this. The sales of the securities were transacted with an average premium of NAV+0.38% and the optimisation of the portfolio resulted in the mark-to-market yield increasing from 6.67% to 7.10%, while the gross purchase yield was improved from 7.13% to 7.35%. The PMs managed to make these improvements to the portfolio yields while maintaining the weighted average rating at BB-.

The PMs believe that the changes made are positive for the strategy and will hopefully be viewed positively by investors, particularly in the current environment where they believe credit to be fundamentally well supported and yield continuing to be an ever scarcer commodity.

Past performance is not a reliable indicator of future performance.

The value of an investment and the 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.

For further information, please contact:

Numis Securities Limited:
Nathan Brown  [phone]
Hugh Jonathan

TwentyFour Income Fund Limited:
John Magrath  [phone]
Alistair Wilson