Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Kames's Snowden: 'There is no bond bubble'

Kames's Snowden: 'There is no bond bubble'

Kames Capital’s Stephen Snowden says corporate bonds are ‘expensive’, but are not in bubble territory.

Play Kames's Milburn: Why we're adding credit risk

Kames's Milburn: Why we're adding credit risk

Kames Capital’s bond stalwart Phil Milburn believes the spreads available in high yield offer ‘pretty reasonable’ value, prompting him to up his credit risk exposure.

Play Josh Brown: We're in the grip of a lunatic cycle

Josh Brown: We're in the grip of a lunatic cycle

The 'Reformed Broker' shared his musings on the US Election and the need for consolidation within asset management at this year's CWM Retreat.

Read More
Wealth Manager on Twitter