15th Jan 2019 12:28
LONDON (Alliance News) - TwentyFour Select Monthly Income Fund Ltd on Tuesday said its net asset value declined in its most recently ended financial year.
The investment firm's net asset value per share at the end of September was 93.17 pence from 96.44p reported the year prior.
TwentyFour Select Monthly Income Fund explained the net decline seen in total comprehensive income was due to the fall in the mark-to-market valuation of the company's assets over that 12 months.
The total NAV return for the year was 3.5%, including dividends paid, with positive contributions from all sectors, the company noted.
By comparison, the total return for the Euro High Yield market was 0.90%, with GBP HY returning 2.7% and the Contingent Convertible bond index returning 1.5%.
The trust's share price at the end of the period stood at 97.00p, representing a 4.1% premium to NAV. The stock was trading 0.3% higher on the day Tuesday at 91.10p a share.
TwentyFour Select Monthly Income Fund declared a 6.55p a share dividend, broadly in line with 6.56p paid the year prior.
"The twelve-month period saw the credit environment change dramatically; from one that was very supportive of risk assets, to one with frequent headwinds for risk assets, but also one that was unsuited to holding risk-free, interest rate products," said Chair Claire Whittet.
"Mark-to-market performance is expected to remain under pressure, especially as the Fed remains on a rate hiking course, geopolitical risks remain elevated, and the European and UK political environment remains fragile," added Whittet.
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