Twentyfour Income Fund Ltd on Wednesday reported an increase in its net asset value per share as the firm recorded a ‘buoyant first half’.
The FTSE-250 listed fund that invests in less liquid asset-backed securities said its NAV per share grew 7.6% to 110.50 pence in the six months to September 30, from 102.71p the prior year.
Its total net assets rose year-on-year by 13% to £826.4 million from £768.12 million.
Twentyfour’s NAV return per share was down on-year to 7.05% from 8.50% but added that its average discount over the period was 4.27%, ‘significantly closer to NAV than the wider investment company universe’.
It kept its interim dividend per share flat at 4p year-on-year, in line with its target of 8p per annum.
The firm said it anticipates a healthy pipeline of ABS issuance for the rest of the year, but with market uncertainty tied to geopolitical risk continuing to provide the most risk to its performance.
Twentyfour Income Fund Portfolio Manager Aza Teeuwen said: ‘A buoyant first half produced positive investment opportunities across the ABS sector, where collateralised loan obligations were the main beneficiary, but with strong performance across the board, including significant risk transfer transactions and mezzanine and junior residential mortgage-backed securities.
‘Our focus during the reporting period has been and will continue to be on investing in higher yielding floating rate ABS.
‘Looking forward, we remain cognisant of macro factors, notably continued geopolitical risk, and will therefore look to maintain flexibility and liquidity in the portfolio, giving us the ability to adjust allocations as appropriate.”
Its shares were up 0.8% at 105.00p on Wednesday morning in London.
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