TwentyFour Income Fund targets a 6%-9% return with a minimum 6p dividend a year from a portfolio of asset-backed securities with floating rate coupons - interest payments which change alongside interest rates and are designed to limit the impact of rate rises. This total return NAV target has been achieved, while the dividends have also been well above the intended minimum. The managers believe that there is strong technical support behind the market as more institutional investors seek floating rate exposure in a rising interest rate environment. The members of the management team – Rob Ford, Ben Hayward, Aza Teeuwen, Douglas Charleston and John Lawler – are all highly experienced specialists in this market. The trust has tended to trade on a small premium for most of its life, but the board will not issue shares to dilute existing shareholders unless the portfolio managers believe there are sufficient opportunities to allow them to achieve their targeted return.
