A specialist fund that invests across a broad range of investment grade and lower rated European asset-backed securities (ABS), targeting higher yielding areas of the market to enhance the portfolio’s income.
Asset Backed Opportunities Fund leans towards higher yielding assets within the European ABS investment universe, which includes securities backed by residential mortgages, commercial mortgages, automobile leases and loans, SME loans and other secured bonds.
Investment objective
The Fund has a target return of 4-6% over prevailing interest rates.
Why invest?
- ABS normally offers a higher yield for a given rating or maturity than more mainstream investments such as government or corporate bonds.
- TwentyFour’s ABS expertise allows the team to target more attractive income in lower rated, less liquid, higher yielding areas of the market.
- Features such as credit enhancement, loss-absorbing reserve funds, and the legal separation of issuer and asset pool are built-in protections for ABS investors.
- Transactions are highly transparent with detailed reports showing the performance of each loan in the asset pool, enabling investors to conduct their own research.
- ABS remains a poorly understood asset class, meaning those that put in the effort and expertise can be rewarded with a complexity premium.
Investment Team
