17th Nov 2016 11:36
LONDON (Alliance News) - TwentyFour Income Fund Ltd on Thursday said the first half of its financial year saw "material swings in market sentiment", but it grew its net asset value per share over the period.
The closed-end investment fund said its net asset value per share at the end of September was 110.23 pence, up from 103.73p at the end of March but down from 114.76p a year earlier.
The group's total net assets rose to GBP421.4 million from GBP333.4 million in March and GBP327.0 million a year earlier, as TwentyFour Income said it has "satisfied demand for stock as it arose".
The group noted at the start of the period, the asset-backed securities market was undergoing a "material increase" in yields, as risk sentiment had deteriorated in the first quarter of 2016. TwentyFour Income said this led to "significant improvement in opportunities in European ABS, buoyed by continued strong fundamental performance of the underlying assets".
Whilst the general recovery in sentiment was curtailed by the UK vote to leave the European Union, the company said that "following the further expansion of supportive policies from the Bank of England, a recovery in sentiment again allowed European ABS spreads to perform well".
TwentyFour Income said its investment opportunity remains "extremely attractive", though noted there was still instability, which could create more volatility in markets and further buying opportunities.
The investment company signalled to "potential clouds on the horizon" for the remainder of the year, including "the increase in the rhetoric surrounding the UK/EU 'divorce' and the aftermath of the election in the US".
TwentyFour Income declared an interim dividend of 3.00p for the period, in line with the prior year.
Shares in TwentyFour Income were down 0.2% at 107.76p on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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