26th Nov 2018 14:14
LONDON (Alliance News) - TwentyFour Income Fund Ltd said Monday that it intends to raise new capital via issue of new shares, in response to continued investor demand and favourable conditions emerging in the asset-backed securities market.
The new shares will be issued at a premium of 2% to the unaudited net asset value per share as of last Friday.
The fund, which is focused on investing in a diversified portfolio of UK and European asset backed securities, said there is significant opportunity to deploy additional funds with favourable returns given prevailing market conditions.
"While we have had access to some attractive investment opportunities over the last 20 months, which existing shareholders have benefited from, there have not been enough to give us the confidence that we should expand the company's capital base. The recent volatility in equity and credit markets has however finally spilled over into the European ABS market, pushing spreads in some parts of the market to levels that we have not seen since 2016," said Ben Hayward of the company's portfolio manager, TwentyFour Asset Management LLP.
"We strongly believe that the market is now mispricing risk in this sector, as it has many times before, presenting an excellent opportunity to issue further capital to the benefit of both existing and new shareholders," Hayward added.
Shares in the TwentyFour Income Fund were down 1.7% at 118.00 pence each.
Related Shares:
Twentyfour Inc