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TwentyFour Select Monthly Income Fund Ltd on Thursday announced a higher net asset value, although the NAV total return was lower than a year ago, and highlighted that the outlook for the credit market is positive. The fund that invests in less liquid asset-backed securities said NAV per share rose 2.8% to 86.06 pence each as at September 30, from 83.70p a year ago. The NAV total return per share was 12.22% in the financial year ended September 30, lower than 22.56% in financial 2024. The total dividend for financial 2025 is 7.30p, down 1.1% from 7.38p a year prior. SMIF noted concerns over the direction of US trade policy, fiscal spending and some softness in the labour market, but highlighted that the outlook for the credit market is positive. ‘Corporates have maintained strong balance sheets, the banking sector is robust and there is sustained consumer demand. ‘The board believes that the company is well placed to navigate continued uncertainty and remains supportive of the portfolio manager’s strategy to focus on investment in high quality assets that can be underwritten through the cycle, while maintaining a strong focus on relative value,’ the company added. Portfolio Manager George Curtis said: ‘Higher for longer interest rates and robust earnings from European banks have informed our decision to maintain the portfolio‘s overweight exposure to collateralised loan obligations and subordinated finance. At the same time, all sectors held in the portfolio contributed positively to performance, supported by strong fundamentals in the credit sector. ‘However, given elevated macroeconomic risks we are not complacent, and continue to build a portfolio of high conviction credit that we can hold through the cycle whilst maintaining the highest average credit rating the fund has ever had.’ Shares in SMIF were 0.7% lower at 87.20 pence each on Thursday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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