TwentyFour Select Monthly Income has released its annual results for the year that ended on 30 September 2015. Over that period the NAV total return was 0.7%. the share price fell by 6.0% and the company declared dividends totalling 6.53p (ahead of their 6p target for the year). Despite the falling share price, the company issued £20m worth of stock over the year.
The statement says spreads on the European High Yield sector widened by over 1.5%, giving a total market return of just over 0.2% and a negative price performance of almost 5%. The report makes no mention of what happened to individual investments within the portfolio. The manager does say that they continue to have high conviction on Euro convergence and remain confident that European credit will outperform the USA or emerging markets (EM) regions as the ECB purchase programme continues to support the local regional market. The current portfolio is likely to be affected by the medium term swings in sentiment, driving the mark-to-market levels, but credit conditions for the underlying components remains supportive. In terms of cash flow and income generation the Company looks set to perform as expected and hence the Portfolio Manager has no significant concerns about meeting the minimum dividend performance as determined in the prospectus.
SMIF : TwentyFour Select Monthly says no significant concerns about dividend