Market Update

TWENTYFOUR INCOME FUND - Market update and intention to issue equity

THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN.

26 November 2018

TwentyFour Income Fund Limited

("TFIF" or the “Company")

Market update and intention to issue new ordinary shares

Market update

The Board and Portfolio Manager believe there is significant opportunity to deploy additional funds with favourable returns given prevailing market conditions. In relation to the opportunity, Ben Hayward of the Company’s Portfolio Manager, TwentyFour Asset Management LLP, comments:

“While we have had access to some attractive investment opportunities over the last 20 months, which existing shareholders have benefitted from, there have not been enough to give us the confidence that we should expand the Company’s capital base. The recent volatility in equity and credit markets, has however, finally spilled over into the European ABS market, pushing spreads in some parts of the market to levels that we have not seen since 2016. We strongly believe that the market is now mispricing risk in this sector, as it has many times before, presenting an excellent opportunity to issue further capital to the benefit of both existing and new shareholders.  

Fundamental performance in the underlying loan pools remains stable, and within expectations, indicating that the derating of the sector is due to risk sentiment across all markets, driven mainly by geopolitical events. Typically such instances offer a short-lived opportunity to access significant value.”

Intention to issue new shares

The Board of TwentyFour Income Fund Limited (LSE: TFIF) today announces its intention to issue new shares.

TwentyFour Income Fund Limited was launched on 6 March 2013 with an investment objective of generating attractive, risk-adjusted returns, principally through income distributions, by investing in a diversified portfolio of UK and European Asset Backed Securities.

In response to continued investor demand and the favourable prevailing market conditions, the Board today announces that the Company is intending to raise additional equity capital through the issue of new ordinary shares of 1p each in the Company (the “New Shares”) (the “Issuance”). The New Shares will be issued at a premium of 2% to the unaudited net asset value (“NAV”) per share as at 23 November 2018, to be published on 26 November (the “Issuance Price”).

How to participate

Qualified investors (as defined in section 86(7) of the Financial Services and Markets Act 2000 (as amended)) are invited to apply for New Shares by contacting Numis Securities Limited ("Numis") on the contact details below. The decision to allot New Shares to any qualified investor shall be at the absolute discretion of the Company and Numis. 

Expected timetable

Fund raise opens                                                 26 November 2018

Announcement of unaudited NAV as at             6.00 p.m. 26 November 2018     
30 November and issuance price   

Latest time and date for receipt of                      11.00 a.m. 29 November 2018
commitments under the Issuance

Announcement of results of Issuance                 7.00 a.m. 30 November 2018

Admission and dealings in New Shares              8.00 a.m. 4 December 2018
on the London Stock Exchange’s
Main Market

Further information

Further information regarding the Company can be found at the Company's website http://www.twentyfouram.com/funds-and-services/twentyfour-income-fund or please contact:

TwentyFour Asset Management [phone]
John Magrath
Alistair Wilson

Numis Securities Limited    [phone]
Hugh Jonathan
Chris Gook

Important notice

This Announcement has been prepared for information purposes only, it is not a prospectus.  Recipients of this Announcement who are considering acquiring New Shares in the Company in connection with the Issuance are reminded that any such acquisition must be made only on the basis of the information contained in the Prospectus and any supplementary prospectus(es) thereto which may be different from the information contained in this Announcement.  This Announcement does not constitute or form part of and may not be construed as an offer to sell, or an invitation to purchase, investments of any description, nor as a recommendation regarding the possible offering or the provision of investment advice by any party.  No information in this announcement should be construed as providing financial, investment or other professional advice and each prospective investor should consult its own legal, business, tax and other advisers in evaluating any investment opportunity.  In particular, an investment in the Company involves a high degree of risk and prospective investors should read the section in the Prospectus entitled "Risk Factors" for further information.

Any data on past performance, modelling or back-testing contained herein is no indication as to future performance and there can be no assurance that targeted or projected returns will be achieved, that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve its investment objectives.  All opinions and estimates are given as of the date hereof and are subject to change.  The value of any investment may fluctuate as a result of market changes.

Ordinary Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and the New Shares may not be offered, sold, resold, transferred or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. Persons. There will be no public offer of the New Shares in the United States. Subject to certain exceptions, the New Shares are being offered and sold only outside the United States to persons who are not U.S. Persons in reliance on the exemption from registration provided by Regulation S under the Securities Act.

Moreover, the Company has not been and will not be registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and investors will not be entitled to the benefits of the Investment Company Act. The New Shares and any beneficial interests therein may only be transferred in an offshore transaction in  accordance with Regulation S (i) to a person outside the United States and not known by the transferor to be a U.S. Person, by prearrangement or otherwise; or (ii) to the Company or a subsidiary thereof.

The distribution of this Announcement in certain jurisdictions may be restricted by law.  No action has been taken by the Company or Numis that would permit an offering of any New Shares or possession or distribution of this Announcement or any other offering or publicity material relating to such New Shares in any jurisdiction where action for that purpose is required.  Persons into whose possession this Announcement comes are required by the Company and Numis to inform themselves about, and to observe, such restrictions.

Certain statements in this Announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts.  These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.  Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements.  Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

The information contained in this Announcement is subject to change without notice and neither the Company nor Numis assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein