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TwentyFour's debut trust raises £150m

TwentyFour's debut trust raises £150m

The closed-end TwentyFour Income fund has raised £150 million ahead of its float on London's main market.

Offered by TwentyFour Asset Management, the trust aims to generate a net total return of between 7% and 10% by investing in the lower-rated, less liquid tranches of European asset backed securities (ABS), and the vehicle will target a dividend of 5% in its first financial year.

Its launch was revealed by Wealth Manager in January, when investors and analysts tipped the fund to raise up to £200 million at its initial public offering.

Ben Hayward, partner and portfolio manager at TwentyFour, said that as unconventional policy measures have stripped yield from a number of sectors, including fixed income, investors have been quick to consider new strategies.

'European ABS is one of the few remaining areas that offer the potential for attractive risk-adjusted returns,' continued Hayward, adding that TwentyFour's latest launch will give investors access to a part of the market previously the domain of banks and institutional players.

The TwentyFour Income fund will begin trading on the London Stock Exchange today.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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