TwentyFour Select Monthly Income says challenging markets constrain investment opportunities – TwentyFour Select Monthly Income Fund Limited has announced results for the year ended 30 September 2017. Its NAV moved from 89.97p to 96.44p and share price from 92p to 99.5p. The dividend slipped to 6.56p from 6.85p. The total NAV return was 13.4%.
The manager has plenty to say on the market background. This is what they had to say about performance “The company’s aim is to produce an attractive level of income, generating a minimum monthly income of 0.5p, with any excess income annually distributed to investors. This is a high conviction strategy based on relative value bonds in the credit markets, with an emphasis on securities that exhibit a degree of liquidity premium assets that are primarily buy-to-hold.
As mentioned in the commentary above, the past 12 months have been generally supportive for credit spreads, which has been to the benefit of investors, despite the significant macro-economic events and political changes that have taken place. Consequently, the company’s turnover has stayed fairly low for the period.”
The chairperson said “The steady tightening of credit spreads through the year resulted in a challenging period for the Portfolio Manager to source suitable assets for the portfolio.”
SMIF : TwentyFour Select Monthly Income says challenging markets constrain investment opportunities