View the article online at http://citywire.co.uk/wealth-manager/article/a731822
TwentyFour targets £150m for monthly income trust
by Robert St George on Feb 03, 2014 at 10:49
TwentyFour Asset Management is looking to raise up to £150 million for an investment trust that will offer monthly dividends.
The TwentyFour Select Monthly Income fund will target a total return of 8-10% a year, including a 6p annual dividend.
The managers intend to build a high-conviction portfolio of 50-75 positions and expect to extract premium returns by focusing on lower liquidity securities, such as small debt issues. These are unsuitable for daily traded funds and are therefore attractively priced.
The trust will use hedging instruments to manage duration, which is expected to be around two years initially.
TwentyFour launched an Income trust in March 2013, which has already attracted £300 million of assets. Since inception it has returned 21%, compared with an average of 1% from its AIC Debt sector.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.
More about this:
Look up the investment trusts
More from us
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.