TwentyFour raises £150mm in debut closed-ended fund IPO

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Fixed income fund manager TwentyFour Asset Management is delighted to announce that following a successful fund-raising working with the broker Numis Securities, ordinary shares in TwentyFour Income Fund Limited, a Guernsey-incorporated closed-ended fund, will be listed and begin trading on the London Stock Exchange on 6th March 2013.

TwentyFour Income Fund looks to generate a net total return of between 7% and 10% by investing in the lower-rated, less liquid tranches of European Asset Backed Securities (ABS). The fund’s dividend target is 5% in the first financial year and then 6% per annum thereafter.

Commenting on the fund Ben Hayward, Partner and Portfolio Manager, TwentyFour Asset Management said: “Unconventional policy measures have stripped the yield from many investment sectors, including fixed income, and this scenario is unlikely to change for a number of years. European ABS is one of the few remaining areas that offer the potential for attractive risk-adjusted returns. This fund gives investors the opportunity to access this part of the market that has previously been the domain of banks or institutional investors. An additional benefit is that as these securities are floating rate, they also give investors further upside if interest rates rise.”

Mark Holman, Managing Partner, TwentyFour Asset Management further commented: “This is another important milestone for TwentyFour, being our first closed-ended fund, and takes our AUM to over £1.7bn. This fund was driven by demand from existing clients and we are delighted to be able to respond quickly to meet their needs. We are very aware of the decreasing income and increasing risks for fixed rate bond funds investing in Gilts and IG Corporates that make up a large part of the retail market. With our detailed knowledge in areas that are often overlooked by traditional fixed income managers, we are very well set up to continue to provide clients with alternative attractive risk-adjusted income streams from the broader fixed income universe.”

For further information please contact:

John Magrath
TwentyFour Asset Management
+44 (0)20 7 015 8912

Nathan Brown / Hugh Jonathan
Numis Securities Limited
+44 (0)20 7 260 1000

  • About TwentyFour Asset Management
  • Independent Boutique Asset Management business owned by the 7 founding partners launched in Oct 2008
  • Fixed Income Specialist
  • Current AUM £1.7bn – Up 50% in last 12 months
  • 2 OEICs under TwentyFour – Dynamic Bond Fund & Monument Bond Fund
  • 3 OEICs for Partners – Skandia & Psigma
  • 10 Segregated Institutional Mandates
  • 1 Closed Ended Fund (TwentyFour Income Fund)

TwentyFour Asset Management LLP is a Limited Liability Partnership incorporated in England and is authorised and regulated in the UK by the Financial Services Authority.