26th Nov 2015 11:39
LONDON (Alliance News) - TwentyFour Income Fund Ltd on Thursday set out a number of proposed changes to its investment policy to give it greater flexibility to deal with the "evolving investment opportunity" in European asset-backed securities.
TwentyFour Income Fund said the main changes will include its portfolio being required to comprise at least 50 asset-backed securities. This compares to the current policy range of 30 to 50 securities and the current actual number of 110 securities.
The portfolio will no longer be required to be invested in any fixed percentage of investment grade asset-backed securities. The portfolio will additionally be required (at the time any new investment is made) to be no more than 20% backed in aggregate by collateral in any single country (save that this restriction will not apply to the Northern European Countries).
The portfolio will also be required (at the time any new investment is made) to be no more than 10% invested in aggregate in instruments not deemed securities for the purposes of FSMA.
TwentyFour Income Fund said it intends to amend the company's target net asset value total return to between 6% and 9% per annum, and to retain its target dividend of at least six pence per share for the financial year ending March 31, 2017.
Shares in TwentyFour Income Fund were up 0.2% at 113.50 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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