Asset-Backed Securities – Quarterly Update – April 2021
TwentyFour Income Fund Limited is a London listed closed-ended fund which targets less liquid, higher yielding asset backed securities. These securities, whilst fundamentally robust, do not offer enough liquidity for daily priced OEICs, but are well suited to a traded closed-ended vehicle, where investors can obtain liquidity via the exchange.
This part of the fixed income market has been largely overlooked in the recent liquidity driven market rally and therefore currently represents attractive relative value. A large majority of the securities are also floating rate, thereby offering investors upside to future rate rises
The fund aims to generate attractive risk-adjusted returns, principally through income distributions by investing in a diversified portfolio of UK and European asset backed securities.
The fund is targeting a dividend of at least 6% per annum, payable quarterly, and a net total return of 6-9% per annum. Realisation elections may be made at three year intervals whereby fund shareholders may elect to realise all or part of their holdings of ordinary shares or, alternatively, continue their investment in the fund. Due to the predominantly floating rate nature of the portfolio, returns are expected to increase as interest rates rise.
Biographical details of the Directors are as follows:
Mr Ash is a resident of Guernsey and has over 30 years of investment experience. He is a Fellow of the Chartered Institute for Securities and Investment. He was formerly a managing director of Rothschild Asset Management (CI) Limited. Mr Ash retired as a director of NM Rothschild & Sons (CI) Limited, the banking arm of the Rothschild Group in the Channel Islands in 1999. Since retirement, he has acted as a director of a number of hedge funds, fund of hedge funds, venture capital, derivative and other offshore funds including several managed or advised by Insight, JP Morgan and Merrill Lynch. Mr Ash was appointed to the Board on 11 January 2013.
Mr Burns is a resident of Guernsey and a fellow of the Institute of Chartered Accountants in England and Wales and a member of the Society of Trust and Estate Planners. He is a founder and Executive Director of Via Executive Limited, a specialist management consulting company and managing director of Regent Mercantile Holdings Limited, a privately owned investment company. Mr Burns is currently a non-executive director of London listed River and Mercantile UK Micro Cap Limited and FastForward Innovations Limited (AIM) and a number of private investment funds. Mr Burns was appointed to the Board on 17 January 2013.
Mr Burwood is a resident of Guernsey with over 25 years’ experience in banking and investment management. During 18 years with Citibank London, Mr Burwood spent 11 years as a fixed income portfolio manager spanning both banks/finance investments and Asset Backed Securities. Mr Burwood has lived in Guernsey since 2010, initially working as a portfolio manager for EFG Financial Products, managing the treasury department’s ALCO Fixed Income portfolio. From 2011 to 2013, Mr Burwood worked as the Business and Investment Manager for Man Investments, Guernsey. In January 2014, Mr Burwood joined the board of RoundShield Fund, a Guernsey private equity fund, focused on European small to mid-cap opportunities. In August 2015, he became a Board Member of Funding Circle SME Income Fund, which provides investors access to a diversified pool of SME loans originated through Funding Circle’s marketplaces in the UK, US and Europe. Mr Burwood also serves on the boards of Habrok, a hedge fund specialising in Indian equities, and EFG International Finance, a structured note issuance company based in Guernsey. Mr Burwood was appointed to the Board on 17 January 2013.
Ms Fintzen is a resident of the United Kingdom, with extensive experience of the finance sector and the investment industry. She trained as a Solicitor with Clifford Chance and worked in the Banking, Fixed Income and Securitisation areas. She joined Citigroup in 1999 providing legal coverage to an asset management division. She was subsequently appointed as European General Counsel for Citigroup Alternative Investments where she was responsible for the provision of legal and structuring support for vehicles which invested $100bn across asset-backed securities as well as hedge funds investing in various different strategies in addition to private equity and venture capital funds. Ms Fintzen was appointed to the Board on 7 January 2019.
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All data is as at 30 Apr 2021 unless otherwise indicated.
|Portfolio Manager||TwentyFour Asset Management LLP|
|Share Class Currency||GBP|
|End of fiscal year||31 March|
|Fund Launch Date||6 Mar 2013|
|Share Class Launch date||6 Mar 2013|
|Dealing||Daily trading on LSE|
|Share Class Registrations||GB|
|Highest since launch||121.69|
|Lowest since launch||90.75|
|Management fee||0.75% of lower of NAV and Market Cap|
|Auditor||PricewaterhouseCoopers CI LLP|
|Registrar||Computershare Investor Services (Guernsey) Limited|
|AIFM||Maitland Institutional Services Limited|
|Corporate Broker||Numis Securities Ltd|
|Fund Administrator||Northern Trust International Fund Administration Services (Guernsey) Ltd|
|Share class||Currency||ISIN||Distrib.||Type||Launch date||Management fee|
|Ordinary Share Class||GBP||GG00B90J5Z95||Dist||6 Mar 2013||0.75%|
|Factsheets & Commentaries|
|Monthly Commentary||Mar 2021|
|Product Presentation||Oct 2020|
|Investor Disclosure||Jul 2014|
|Sales Prospectus||Apr 2019|
|Annual Report||Mar 2020|
|Semi-Annual Report||Sep 2020|
|UK Tax Reporting||Mar 2020|