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

New for 2017. High yield fuelled by an 'illiquidity premium'

The main objective of this trust is to generate a monthly income through investment in a diversified portfolio of fixed income products including asset-backed securities, bank capital, corporate loans, high-yield bonds and leveraged loans. Its current yield is over 7 per cent.

It is a relatively new trust, set up in March 2014 and managed by Gary Kirk, Felipe Villarroel and Eoin Walsh at TwentyFour Asset Management. The firm specialises exclusively in offering open- and closed-ended funds invested in all kinds of fixed income securities.

This trust is specifically designed to take advantage of the premium returns available from 'less liquid instruments across the fixed income spectrum'. These 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 with liquidity, the managers offer a quarterly share buyback facility. Most of the portfolio is currently invested in B/BB-rated bonds and holdings are typically held to maturity.

The trust invests mainly in Europe and the UK and has around 5 per cent invested in the US. Its portfolio is diversified by the types of securities it holds.

At the end of 2016, it had 33 per cent in asset-backed securities, 26 per cent in banks, 20 per cent in European high yield and 8 per cent in insurance bonds. Its interest rate duration is actively managed, currently averaging 2.6 years, and its foreign currency exposure is hedged to sterling.

3 Year Performance
Fund Performance26.9%
Average of Rated Funds Group17.8%
Sector Performance15.2%
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
  • Robert Arnoldsince 31/08/2016
  • Mark Holmansince 31/07/2016
  • Felipe Villaroelsince 10/03/2014
  • Eoin Walshsince 10/03/2014
  • Gary Kirksince 10/03/2014
  • Pierre Beniguelsince 21/04/2014
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
13.5%
1 Year rank in sector
3/26
Sector
IT Debt
Yield
6.6%
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
£161m
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.
63
Mid price
100
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.
96.77
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.
+3.34
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 FdLtd23.9%
Fair Oaks Inc Ltd17%
TwentyfourSelctMnthlyIncFd 1P13.5%
Real Est Cr Inv NPV10.6%
TwentyFour Inc Ltd9%
...more in IT Debt

Performance snapshot

Holdings snapshot

  • Europe47.4%
    UK40.7%
    North America8.2%
    Money Market2.3%
    South America1.5%
  • Banks35.6%
    Asset/Mortgage-Backed Securities31.8%
    High Yield Bond21.1%
    Insurance5.1%
    Others4.1%
  • European Fixed Interest47.4%
    UK Fixed Interest40.7%
    North American Fixed Interest8.2%
    Money Market2.3%
    American Emerging Fixed Interest1.5%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund1.4%2.3%6%13.5%26.9%-
Sector-1%-1%-1.1%2.9%15.2%24%
Rank within sector3 / 276 / 273 / 273 / 262 / 14-
Quartile1st1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund1%18.2%4%3.3%-
Sector-0.8%6.2%11.3%-2.6%2.4%
Rank within sector4 / 273 / 2514 / 236 / 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.
2.03
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.
1.45
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.
0.61
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%.
9.03
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.
6.12
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.
0.65
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.
0.6
Price movement
52 week high102
52 week low92.75
Current bid price100
Current offer price101
Current mid price100
Region
1Europe47.35%
2UK40.68%
3North America8.17%
4Money Market2.28%
5South America1.52%
Industry sector
1Banks35.58%
2Asset/Mortgage-Backed Securities31.79%
3High Yield Bond21.11%
4Insurance5.11%
5Others4.13%
6Cash & Cash Equivalents2.28%
Asset type
1European Fixed Interest47.35%
2UK Fixed Interest40.68%
3North American Fixed Interest8.17%
4Money Market2.28%
5American Emerging Fixed Interest1.52%
Individual holdings
1NWIDE 10.25 PERP CCDS3.04%
2SANUK 10.3752.5%
3BRACKN 10.5 11/15/21 REGS2.49%
4SHAWLN 7.875 PERP2.43%
5COVBS 6.375 PERP2.4%
6ARGID 6.625 09/15/231.87%
7ALDMRE 11.875 PERP1.81%
8ARBR 2014-2X FR1.75%
9CS 7.5 PERP REGS1.64%
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
Robert Arnold31/08/2016Portfolio 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.
Mark Holman31/07/2016Mark is one of the founding partners of TwentyFour, and serves as the firm’s Chief Executive Officer.
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 Beniguel21/04/2014Portfolio 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 price96.77
CurrencyGBX
Price updated14/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJRL
Data provided by

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