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TwentyFour's debut trust raises £150m
by Sarah Miloudi on Mar 06, 2013 at 07:59
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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