19th Nov 2015 12:20
LONDON (Alliance News) - TwentyFour Income Fund Ltd, which targets less-liquid, higher-yielding asset-backed securities, said it will set out proposals by the end of this month to adapt its investment policy and give it "greater flexibility" to adjust to changes in European asset-backed securities markets.
The review of the company's policies and structure came ahead of its third anniversary in March 2016, when shareholders will be able to have their shares realised.
"The portfolio manager intends to use only gradually the greater flexibility proposed, and it is expected that the portfolio will continue to be significantly backed by UK and Northern European
collateral and to retain a significant exposure to residential and commercial mortgage-backed securities," Chairman Trevor Ash said in a statement.
TwentyFour Income expects to retain its target of a six pence dividend for the year to March 31, 2017, in the event the proposals are approved.
In addition, Ash said that the company plans on giving investors the chance to build or exit their shareholdings.
"Looking into 2016, it is intended that the company will during the first quarter provide an opportunity for new investors and for existing shareholders to add to their investment in the company, while also providing an exit mechanism at a modest discount to NAV for any shareholders wishing to realise their holding," Ash said.
The company said its net asset value total return in the six months to September 30 was down 1.6%, giving a positive total return since launch of 31.9%.
Shares in the investment company continued to trade at a premium to net asset value, with an average premium of 5.9% in the half.
Shares in TwentyFour Income Fund were up 0.1% at 115.63 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Twentyfour Inc