Fact sheet: TwentyFour Select Monthly Income IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL BONDS
Sector
IT Debt
Fund type
Investment Trust
Primary aim
No data available.
Why Money Observer Rates TwentyFour Select Monthly Income IT

Rated Fund 2017-2018. A high yield fuelled by an ムilliquidity premium'

TwentyFour Select Monthly Income is at the higher end of the risk spectrum as it has the vast majority of its assets in sub-investment grade stock. It currently yields 6.6 per cent and distributes income monthly.

A relatively new investment trust, having been set up in 2014, it is run by a six-strong team at TwentyFour Asset Management, which specialises in fixed income investing. The trust is diversified across a range of fixed income products including asset-backed securities, bank capital, corporate loans, high yield bonds and leveraged loans.

The trust is specifically designed to take advantage of the premium returns available from less liquid fixed income investments. Such securities do not offer enough liquidity for open-ended investment funds, but are well suited to a closed-ended vehicle. However, in order to provide investors in this trust with liquidity, the managers offer a quarterly share buyback facility.

Holdings are typically held to maturity. In terms of ratings, almost 70 per cent of the ᆪ160 million trust was in bonds rated B or BB at the end of 2017. On a sector basis, a third was in both banks and asset-backed securities, with smaller allocations to European high yield, US high yield, insurance bonds and emerging markets.

Its interest rate duration is actively managed, currently averaging three years, and its foreign currency exposure is hedged to sterling.

The trust has proved popular with investors and its shares traded at a premium of up to 5.5 per cent during 2017. At the end of the year they were on a more modest 3.6 per cent premium.<\p>

3 Year Performance
Fund Performance24.4%
Average of Rated Funds Group14.6%
Sector Performance14.5%
Fund information
Fund name
Twentyfour Select Monthly Income Fund Limited Ord 1P
Fund manager company
TwentyFour Asset Management LL
Fund type
Investment Trust
Fund managers
  • Mark Holmansince 01/08/2016
  • Robert Arnoldsince 01/09/2016
  • Felipe Villaroelsince 10/03/2014
  • Eoin Walshsince 10/03/2014
  • Gary Kirksince 10/03/2014
  • Pierre Beniguelsince 22/04/2014
Accolades
Fund objective
The fund aims to generate attractive risk-adjusted returns, principally through income distributions, by investing in a diversified portfolio of fixed income credit products.
Benchmark
No data available.
Investment style
No data available.
Investment method
Money Market, Fixed Interest
Quick stats
1 Year return
9.8%
1 Year rank in sector
5/28
Sector
IT Debt
Yield
6.5%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.2%
Fund size
£169m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
59
Mid price
101
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
96.44
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+4.73
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
Axm EurFn Dbt FdLtd11.4%
TwentyFour Inc Ltd11.4%
Fair Oaks Inc Ltd10.5%
VPCSpcLndngInvtPLC10.3%
TwentyfourSelctMnthlyIncFd 1P9.8%
...more in IT Debt

Performance snapshot

Holdings snapshot

  • Europe46.6%
    UK40%
    North America8%
    Money Market3.2%
    South America2.3%
  • Banks35.7%
    Asset/Mortgage-Backed Securities30.7%
    High Yield Bond20.8%
    Insurance5%
    Others4.6%
  • European Fixed Interest46.6%
    UK Fixed Interest40%
    North American Fixed Interest8%
    Money Market3.2%
    American Emerging Fixed Interest2.3%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund1%2.4%4.9%9.8%24.4%-
Sector-0.3%-0.5%-0.8%1.7%14.5%19.9%
Rank within sector9 / 295 / 283 / 285 / 282 / 15-
Quartile2nd1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund2.5%18.2%4%3.3%-
Sector-0.4%6.2%11.3%-2.6%2.4%
Rank within sector4 / 284 / 2615 / 246 / 14-
Quartile1st1st3rd2nd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
0.54
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.49
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.42
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
9
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
5.94
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.43
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.63
Price movement
52 week high102
52 week low97.5
Current bid price99.4
Current offer price101
Current mid price101
Region
1Europe46.61%
2UK39.95%
3North America7.99%
4Money Market3.17%
5South America2.28%
Industry sector
1Banks35.74%
2Asset/Mortgage-Backed Securities30.69%
3High Yield Bond20.82%
4Insurance4.95%
5Others4.63%
6Cash & Cash Equivalents3.17%
Asset type
1European Fixed Interest46.61%
2UK Fixed Interest39.95%
3North American Fixed Interest7.99%
4Money Market3.17%
5American Emerging Fixed Interest2.28%
Individual holdings
1NWIDE 10.25 PERP CCDS3.74%
2BRACKN 10.5 11/15/21 REGS2.62%
3SHAWLN 7.875 PERP2.39%
4COVBS 6.375 PERP2.37%
5SANTANDER UK PLC 10.375 PERP2.23%
6ALDMRE 11.875 PERP2.04%
7ARBR 2014-2X FR1.7%
8BARCLAYS PLC 7.875% BDS 15/03/22 USD2000001.63%
9SHAWLN 8.5 10/28/251.61%
Management
Fund manager group
TwentyFour
Fund manager company
TwentyFour Asset Management LL
Fund type
Investment Trust
Fund objective
The fund aims to generate attractive risk-adjusted returns, principally through income distributions, by investing in a diversified portfolio of fixed income credit products.
Benchmark
No data available.
Investment style
No data available.
Investment method
Money Market, Fixed Interest
Fund managers
NameSinceBiography
Mark Holman01/08/2016Mark is one of the founding partners of TwentyFour, and serves as the firm’s Chief Executive Officer.
Robert Arnold01/09/2016Portfolio Manager, 14 years' experience. Previously worked at Barclays Capital for six years in both London and New York, worked for six years at a credit hedge fund in the US and for two years at Societe Generale in New York.
Felipe Villaroel10/03/2014Portfolio Manager, 7 years' experience. Previously Asset Allocation and Strategy Analyst at Celfin Capital in Chile
Eoin Walsh10/03/2014Partner with 18 years' experience; previously senior portfolio manager at Citi Alternative.
Gary Kirk10/03/2014Partner with 29 years' of credit market experience;previously Head of Proprietary Credit Trading at Wachovia
Pierre Beniguel22/04/2014Portfolio Manager with 5 years' experience. Previously part of the loan trading group at Portigon Financial Services AG.
Compliance
AIC Member, Offshore
Domicile
No data available.
Fund for sale in
United Kingdom, Guernsey, Offshore
Twentyfour Select Monthly Income Fund Limited Ord 1P
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price96.44
CurrencyGBX
Price updated11/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJRL
Data provided by

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