TwentyFour Income Fund - Increase in Dividend

TwentyFour Income Fund - Increase in Dividend

PR Newswire

London, September 20

TwentyFour Income Fund Limited ("TFIF" or the "Company")

(aclosed-ended investment company incorporated in Guernsey with registration number 56128)

(LEI: 549300CCEV00IH2SU369)

Increase in minimum annual dividend to 7p (from 6p) per Ordinary Share

The Board of Directors of TwentyFour Income Fund ("TFIF" or the "Company") is pleased to announce its plan to increase minimum dividend payments above its annual target. The Company will increase minimum annual dividends from 6p to 7p per share with minimum quarterly dividends increasing from 1.5p to 1.75p per share beginning in respect of quarter end 30 September 2022. The Company will continue to distribute all its annual net income to shareholders through a final balancing dividend.

At IPO in March 2013, the Company set a target annual net total return on the Company's NAV of between 6% and 9% per annum, which included a target dividend of 6p per share. The target dividend has been exceeded in each year since the Company's IPO through the payment of three quarterly dividends of 1.5p per share and a final dividend of 1.5p per share plus any excess returns in respect of a financial year. The average annual dividend since IPO has been 6.7p per share*.

The Company recently announced (11 August 2022) the Mark-to-Market yield and Forward Yield to Maturity of its portfolio at 13.0% and 14.9% respectively. Given the strong cash flows, being generated by TFIF's investments, where the purchase yield of the portfolio has increased by 2.14% to 10.11% over the last nine months - an incremental pick-up of almost 50bps compared to the 1.65% increase in base rates in the same time - the Company is increasing its minimum annual dividend to 7p per share through the payment of three quarterly dividends of 1.75p per share and a final dividend of 1.75p per share plus any excess returns in respect of a financial year.

Aza Teeuwen, Portfolio Manager for TFIF, commented: "As a floating rate fund,the increases in interest rates, which have been unusually coupled with a widening in credit spreads have already materially increased the income that the fund's assets are generating. Given the expectation of further rate rises, a prudent increase in the quarterly dividend payment is warranted to reflect that increased income and also to help distribute the higher returns more evenly throughout the year".

Trevor Ash, Chairman of TFIF, commented: "The Board of TFIF is proud to have exceeded the Company's dividend target of 6p per share in a low interest rate environment since our IPO in 2013. It is pleasing that now interest rates are rising, we are able to benefit from owning floating rate assets and increase the minimum annual dividend to 7p per share. Given the expectation of further interest rate rises, the Board will continue to monitor the Company's quarterly dividend level in order to pass through to shareholders the benefits of the strong cash flows being generated by our portfolio".

For further information, please contact:

Numis Securities Limited:
Hugh Jonathan [phone]
Matt Goss

TwentyFour Income Fund Limited:
John Magrath [phone]
Alistair Wilson

*for 9 full years - not including the first quarterly payment of 1.5p for the current financial year