TwentyFour Select Monthly Income Fund Limited - Full-Year Results for the year ended 30 September 2025

TwentyFour Select Monthly Income Fund Limited - Full-Year Results for the year ended 30 September 2025

PR Newswire

LONDON, United Kingdom, December 11

11 December 2025

Full-year results for the year ended 30 September 2025

TwentyFour Select Monthly Income Fund Limited ("SMIF" or "the Company"), the listed, closed-ended investment company that pays a monthly dividend to shareholders by investing in a diversified portfolio of credit securities, is pleased to announce its full-year results for the year ended 30 September 2025. The Annual Report and Audited Financial Statements will shortly be available via the Company's website www.selectmonthlyincomefund.com.

Financial highlights

• NAV per Ordinary Share of 86.06p (2024: 83.70p)
• NAV return per Ordinary Share of 12.22% (2024: 22.56%)
• Total annual dividend for the year of 7.30 pence per Ordinary Share, ahead of the 6 pence target
• Total net assets increased to £272.72m (2024: £219.77m)
• The Company has traded at an average premium to NAV of 2.09% during the period, in contrast to the wider investment company sector trading at a discount

Portfolio highlights

• The portfolio continued to benefit from strategic exposure to resilient credit sectors, namely Collateralised Loan Obligations ("CLOs") and subordinated financials (Additional Tier 1 bonds and Restricted Tier 1 bonds), with the sectors returning 13.75%, 12.47% and 13.65%, respectively
• CLOs continue to benefit from the higher rate environment whilst also gaining from the strong technical strength which persists across the asset class
• Performance in subordinated financials was supported by strong earnings from European banks, with resilient asset quality, elevated net interest margins and low levels of non-performing loans
• Several other sectors also saw strong performance, with US and European High Yield returning 13.75% and 10.03%, respectively
• The period has seen the portfolio's highest average credit rating since IPO with exposure to higher quality assets delivering higher levels of income

Outlook

Despite concerns over the direction of US trade policy, fiscal spending and some softness in the labour market, 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 Portfolio Manager expects returns will come primarily from income in the short term, driven by its favoured sectors, Financials and Asset-Backed Securities, and supported by yields substantially above historical averages.

Given the outlook and current expectations of yields, it is possible that the year ending 30 September 2026 may also produce an excess income amount over the Dividend Target of 6 pence per Ordinary Share. As with this reporting period, the Board and Portfolio Manager will consider whether the Company may temporarily spread the excess income more evenly through the year.

Commenting on the results, Ashley Paxton, Chair, SMIF said: "SMIF has gone from strength to strength during the year. The Company has been one of the most prolific issuers of shares in the sector, having issued 54.315 million Ordinary Shares over the period at a 2% premium (prior to issue costs) to the NAV at issue date, taking total Ordinary Shares in issue to 316.89 million. In contrast to the wider investment company market, which saw many companies on the Main Market of the LSE trading at large discounts, SMIF traded at a premium to NAV for the entirety of the year, at an average 2.09% premium.

As the Company continues to grow, it remains focused on its objective of delivering a stable monthly income to shareholders by maintaining a disciplined investment approach, rotating between sectors where it sees relative value and selectively taking advantage of market volatility, to deliver attractive, risk-adjusted returns."

George Curtis, Portfolio Manager, SMIF said: "Higher for longer interest rates and robust earnings from European banks have informed our decision to maintain the portfolio's overweight exposure to CLOs 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."

ENDS

For further information please contact:

TwentyFour Select Monthly Income Fund Limited

Alistair Wilson Tel: [phone]

Deutsche Numis

Hugh Jonathan / George Shiel Tel: [phone]

JPES Partners

Charlotte Walsh / Chris Flame Tel: [phone]

The Company's LEI is 549300P9Q5O2B3RDNF78.

About SMIF

SMIF is a London listed closed-ended investment company designed to take advantage of the premium returns available from "less liquid" instruments across the debt spectrum.

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

For the year ended 30 September 2025

(Classified Regulated Information, under DTR 6 Annex 1 section 1.1)

CORPORATE INFORMATION

Directors Ashley Paxton (Chair)		Receiving Agent Computershare Investor Services PLC
Sharon Parr (Senior Independent Director)		The Pavillions
Wendy Dorey		Bridgewater Road
Richard Class		Bristol, BS13 8AE
Registered Office		UK Legal Adviser to the Company
PO Box 255		Eversheds Sutherland (International) LLP
Trafalgar Court		One Wood Street
Les Banques		London, EC2V 7WS
St Peter Port
Guernsey, GY1 3QL
Portfolio Manager		Guernsey Legal Adviser to the Company
TwentyFour Asset Management LLP		Carey Olsen (Guernsey) LLP
8th Floor, The Monument Building		Carey House
11 Monument Street		Les Banques
London, EC3R 8AF		St Peter Port
		Guernsey, GY1 4BZ
Alternative Investment Fund Manager		Independent Auditor
Waystone Management Company		PricewaterhouseCoopers CI LLP
(IE) Limited 35 Shelbourne Road		PO Box 321 Royal Bank Place
Ballsbridge		Glategny Esplanade
Dublin 4		St Peter Port
Ireland, D04 A4EO		Guernsey, GY1 4ND
Custodian, Principal Banker and Depositary		Registrar
Northern Trust (Guernsey) Limited		Computershare Investor Services (Guernsey)
PO Box 71		Limited
Trafalgar Court		1st Floor
Les Banques		Tudor House
St Peter Port		Le Bordage
Guernsey, GY1 3DA		St Peter Port
		Guernsey, GY1 1DB
Administrator and Company Secretary		Financial Adviser and Corporate Broker
Northern Trust International Fund Administration		Deutsche Bank AG (London Branch)
Services (Guernsey) Limited		(trading as "Deutsche Numis")
PO Box 255		21 Moorfields
Trafalgar Court		London, EC2Y 9DB
Les Banques
St Peter Port
Guernsey, GY1 3QL

FINANCIAL HIGHLIGHTS

Net Asset Value per Ordinary Share
As at 30 September 2025	As at 30 September 2024
86.06p	83.70p
Share Price
As at 30 September 2025	As at 30 September 2024
87.80p	85.30p
Total Net Assets
As at 30 September 2025	As at 30 September 2024
£272.72 million	£219.77 million
NAV Total Return per Ordinary Share
For the year ended 30 September 2025	For the year ended 30 September 2024
12.22%	22.56%
Dividends Declared per Ordinary Share
For the year ended 30 September 2025	For the year ended 30 September 2024
7.30p	7.38p
Average Premium
For the year ended 30 September 2025	For the year ended 30 September 2024
2.09%	1.44%
Ordinary Shares in Issue
As at 30 September 2025	As at 30 September 2024
316.89 million	262.57 million
Number of Positions in Portfolio
As at 30 September 2025	As at 30 September 2024
156	148

Definitions of the above measures can be found in the Glossary of Terms and Alternative Performance Measures.

As at 3 December 2025, the premium had moved to 2.29%. The estimated Net Asset Value ("NAV") per Ordinary Share and share price stood at 85.25p and 87.20p, respectively.

Results are discussed further in the Directors' Report.

Ongoing Charges

Ongoing Charges have been calculated in accordance with the Association of Investment Companies (the "AIC") recommended methodology. Ongoing Charges for the year ended 30 September 2025 were 1.13% (30 September 2024: 1.21%) on an annualised basis.

SUMMARY INFORMATION

The Company

TwentyFour Select Monthly Income Fund Limited (the "Company") was incorporated with limited liability in Guernsey, as a closed-ended investment company on 12 February 2014. The Company's Ordinary Shares were listed on the Official List of the Financial Conduct Authority ("FCA") and admitted to trading on the Main Market of the London Stock Exchange ("LSE") on 10 March 2014.

Investment Objective and Investment Policy

The Company's investment objective is to generate attractive risk adjusted returns, principally through income distributions.

The Company's investment policy is to invest in a diversified portfolio of credit securities.

The portfolio can be comprised of any category of credit security, including, without prejudice to the generality of the foregoing, bank capital, corporate bonds, high yield bonds, leveraged loans, payment-in-kind notes and asset-backed securities and can include securities of a less liquid nature. The portfolio is dynamically managed by TwentyFour Asset Management LLP ("TwentyFour" or the "Portfolio Manager") and, in particular, is not subject to any geographical restrictions.

The Company maintains a portfolio diversified by issuer and comprises at least 50 credit securities. No more than 5% of the portfolio value will be invested in any single credit security or issuer of credit securities, tested at the time of making or adding to an investment in the relevant credit security. The Company may hold up to 10% in cash but works on the basis of an operational threshold of 5% and any uninvested cash, surplus capital or assets may be invested on a temporary basis in:

• cash or cash equivalents, money market instruments, bonds, commercial paper or other debt obligations with banks or other counterparties having a "single A" or higher credit rating as determined by any internationally recognised rating agency which may or may not be registered in the EU; and
• any "government and public securities" as defined for the purposes of the FCA Rules.

Efficient portfolio management techniques are employed by the Company, and may include currency and interest rate hedging and the use of other derivatives to manage key risks such as foreign exchange movements, interest rate sensitivity and to mitigate market volatility. The Company's currency hedging policy will only be used for efficient portfolio management.

The Company does not employ gearing or derivatives for investment purposes. The Company may use borrowing for short-term liquidity purposes, which could be achieved through arranging a loan facility or other types of collateralised borrowing instruments including repurchase transactions and stock lending. The articles of incorporation of the Company (the "Articles") restrict the borrowings of the Company to 10% of the Company's NAV at the time of drawdown. No arrangements for borrowing are currently in place.

At launch, the Company had a target net total return on the original issue price of between 8% and 10% per annum. This comprised a target dividend payment of 6p per Ordinary Share per annum ("Dividend Target") and a target capital return of 2p-4p per annum, both based on the original issue amount of 100p. Whilst there is no guarantee that this can or will be achieved, the Dividend Target has consistently been met since the Company's launch in 2014. Refer to note 19 to the Financial Statements for details of the Company's dividend policy.

In accordance with the UK Listing Rules ("UKLR"), the Company can only make a material change to its investment policy with the approval of its Shareholders by Ordinary Resolution.

Shareholder Information

Waystone Management Company (IE) Limited ("Waystone" or the "AIFM") is responsible for calculating the NAV per Ordinary Share of the Company. Whilst the AIFM has delegated this responsibility to Northern Trust International Fund Administration Services (Guernsey) Limited (the "Administrator"), they still perform an oversight function.

The unaudited NAV per Ordinary Share is calculated as at the close of business on every Wednesday that is also a business day, as well as the last business day of every month and announced by the Regulatory News Service the following business day.

CHAIR'S STATEMENT

For the year ended 30 September 2025

As Chair to TwentyFour Select Monthly Income Fund Limited, I am delighted to present my report on the Company's progress for the year ended 30 September 2025. The Company continued to perform well with a NAV Total Return per Ordinary Share for the year of 12.22% (including a dividend per Ordinary Share of 7.30 pence, comfortably exceeding the target of 6 pence per Ordinary Share), whilst increasing its credit quality over the year to BB (from BB- in September 2024), the highest average credit rating since the Company's inception.

Market Overview

In my statement last year, I discussed how monetary policy communication has evolved over the past few decades; from the Federal Open Market Committee's first statement in July 1995 where Chairman Greenspan used only three sentences to announce their latest policy decision - to today's dizzying array of information that central banks pass on daily to investors.

This year, however, market dynamics have been driven less by monetary policy and more by government and fiscal developments. While corporations and households spent much of the post Global Financial Crisis ("GFC") years reducing their debt levels (driven by the financial sector in particular), governments increasingly stepped in to fill the gap. This has been turbo-charged post the pandemic, as the extraordinary levels of fiscal stimulus deployed into the system in 2020 and 2021 have proven difficult to unwind. Whilst central banks have been reducing the size of their balance sheets to more appropriate levels, many developed market economies are still running some of the largest non-recessionary deficits of all time.

All else being equal, this implies a greater supply of government bonds to the market at a time when demand for those bonds has fundamentally shifted. For much of the past decade, markets have benefitted from large price-insensitive buyers of government bonds as central banks undertook large quantitative easing programs whilst foreign central banks were accumulating dollars that needed to be invested somewhere (mostly US Treasuries). Today, the landscape looks very different. Central banks are engaged in quantitative tightening; President Trump has sought to reduce trade deficits (in effect limiting the supply of dollars to the rest of the world), and non-US central banks have been diversifying their US Dollar holdings elsewhere.

This shift explains why government bonds, for much of the past 12 months, have been the primary source of volatility in fixed income markets as investors reassess the appropriate risk premium for holding longer dated paper. We saw a multiple standard deviation move in 30-year German Bunds in March 2025 following the release of the government debt-brake (note: a positive development for Europe) and a multiple standard deviation move in 30-year US Treasuries in April 2025 after President Trump's tariff announcement. Similar pressures have periodically emerged across Japanese, UK and French bonds throughout the year.

Throughout this volatility, credit, particularly at the shorter end of the curve, has exhibited very little volatility. Whilst leverage in the government space has been increasing, corporates have managed to navigate the changing interest rate environment of the last few years extraordinarily well. Leverage is at appropriate levels, the equity cushion behind bondholders has risen, free cash flow remains resilient, and margins in many sectors have increased. All of this has occurred as all-in yields have risen, meaning the return per unit of risk has improved - even as the opportunity set for funds (including the Company) has widened.

This fundamental backdrop for credit has informed the Portfolio Manager's approach during the financial year. With a keen focus on combining attractive top-down tailwinds with rigorous bottom-up analysis, the Portfolio Manager looked to buy assets that it can comfortably underwrite through the cycle and which provide attractive risk adjusted returns. Performance continues to be strong and the elevated level of yield in the portfolio provides a solid longer-term outlook for returns.

Sector Overview

The listed investment company sector has endured another difficult year. After a decade of expansion and substantial net issuance between 2013 and 2022, the last three years have instead been defined by contraction. Investor appetite has remained muted across much of the sector, prompting widespread buyback programmes, tender offers and wind-ups. Consequently, 2025 has already surpassed 2024 as the highest year for capital returned to Shareholders in the sector since 2000.

This shift has been driven by persistent share price discounts to NAV, even though these discounts have narrowed somewhat from those reached in 2024. The modest improvement appears to reflect continued buybacks and activist intervention rather than a genuine resurgence in investor interest. At the same time, investors' calls for increased scale and liquidity have grown louder, fuelling consolidation and merger activity. Activism has also become more pronounced, with boards facing closer scrutiny of their strategic direction, long-term viability and approach to managing discounts.

Amid these headwinds, the Company has been a notable outlier. For the entirety of the financial year and as noted below, the Ordinary Shares have traded at a premium to NAV, enabling the issuance of new shares to meet healthy investor demand - an outcome that contrasts sharply with the widespread contraction elsewhere in the sector. Although our position remains robust, the Board is acutely aware of the challenges facing the industry and continues to monitor the landscape carefully. We remain firmly focused on ensuring the Company is well positioned to weather future uncertainties and to sustain its long-term performance.

Share Activity

The Company traded at a premium to NAV for the entirety of the year, at an average 2.09% premium (year ended 30 September 2024: 1.44%).

Due to the availability of accretive assets for purchase, and because of shareholder demand, the Company was able to issue 54,314,866 new Ordinary Shares during the year, at a premium of 2% (prior to issue costs) to the NAV at issue date.

This additional share activity has been an excellent result for the Company, making it one of the most prolific issuers in the investment company market during the financial year.

The Company's quarterly tender facility continues to enable liquidity for investors and helps to act as a discount control mechanism. A total of 949,852 shares were submitted for tender in the four quarterly tender offers during the year (404,301, 177,838, 287,307 and 80,406 shares for the quarters ended 30 September 2024, 31 December 2024, 31 March 2025 and 30 June 2025, respectively). Of the shares tendered all were subsequently successfully placed or purchased by the Company's Financial Adviser and Corporate Broker, Deutsche Numis. Post year end, a further 119,559 shares were initially purchased by the Corporate Broker and subsequently placed with investors in October 2025 in respect of the tender for the quarter ended 30 September 2025.

Dividend Policy

On formation, the Company's objective was to generate a return of 8-10% with a 0.5 pence per Ordinary Share dividend payment each month, with the Board's intention that the balance of excess income (as defined in note 19 to the Financial Statements) for the financial year would be paid within the final monthly dividend.

During the year, the Directors carefully considered the Company's projected income for the year and their assessment of risks inherent in achieving its target dividend payment of 6 pence per Ordinary Share per annum, against the desire to distribute the excess income more evenly to Shareholders over the year. Based on this analysis, the Directors estimated that dividends payable in respect of the financial year were likely to be in excess of 6 pence per Ordinary Share, and consequently decided it was appropriate to pay an additional 0.25 pence per Ordinary Share, in addition to the regular monthly targeted dividend of 0.5 pence per Ordinary Share, for the periods ended 31 March 2025 and 30 June 2025.

Additionally, the final dividend declared for September 2025 was 1.30 pence per Ordinary Share, producing a total annual dividend declared for the financial year of 7.30 pence per Ordinary Share. The Board believes this is an excellent result for a period which also saw ongoing capital growth for the Company. The Board and the Portfolio Manager are focused on the sustainability of the Company's dividend policy, regularly monitoring and reviewing the position.

A Committee of the Board meets each month to approve the monthly payment of 0.5 pence per Ordinary Share (and any additional dividend amounts where appropriate). The Portfolio Manager is confident that the current monthly Dividend Target of 0.5 pence per Ordinary Share remains achievable in the current yield environment.

Whilst the approach of declaring excess income for the financial year at the October dividend meeting is entirely consistent with previous years, the Directors are cognisant that the amounts declared in October 2025, and for the two prior years 2024 and 2023, were notably higher than the Dividend Target. Given the outlook and current expectations of yields, it is possible that the year ending 30 September 2026 may also produce an excess income amount over the Dividend Target of 6 pence per Ordinary Share. In line with this reporting period, the Board and Portfolio Manager will continue to consider whether the Company may temporarily spread the excess income more evenly during the ensuing year.

Return

During the year, the NAV per Ordinary Share saw an increase from 83.70 pence to 86.06 pence, a rise of 2.82%, with a NAV Total Return per Ordinary Share for the year of 12.22%. This, together with the favourable net increase in share capital as previously noted, meant the Company saw a very strong increase in net assets from £219.77m to £272.72m over the financial year.

Outlook

There is no doubt that macro risks remain elevated, but the Company remains well placed to navigate through a variety of different scenarios. The Portfolio Manager believes that the underlying pillars still remain sound and expects a pick-up in economic growth amongst developed economies next year after a sluggish 2025.

Growth forecasts have improved significantly in Europe too, primarily as a result of Germany's change in its fiscal stance. Europe has been defined by sluggish growth in recent years due mainly to the core countries where Germany in particular has suffered from weak manufacturing activity and high energy costs post Russia's invasion of Ukraine.

In the UK, political uncertainty remains high, as it does in many developed markets. The UK is particularly exposed to fears around the fiscal situation given its twin deficits which makes it more dependent on global capital markets (unlike Germany and Japan, for example, which both run positive current accounts). The recently announced budget may have calmed some of those fears, at least in the short-term (we would note however that much of the fiscal consolidation is back-dated and predicated on relatively optimistic Office for Budget Responsibility forecasts). Positively, consensus forecasts still point to robust growth (1%+) in the UK in the coming few years, a sharp reduction in inflation next year (from ~4% now to 2.5% by 2026), as well as a fall in the fiscal deficit (-5.1% of Gross Domestic Product ("GDP") in 2024 down to -3.6% of GDP by end of next year).

We expect government bond volatility to remain elevated, particularly at the longer end of yield curves (which are more affected by influences other than base rates), whilst we expect credit spreads to continue to be well supported for several reasons: improving real GDP growth, stable credit metrics and solid technical tailwinds. All-in yields remain attractive and offer good downside protection if credit spread volatility were to pick up.

Ultimately, the Portfolio Manager will continue to diligently underwrite credits through the cycle - not just managing the portfolio for the base case, but also for a weaker growth scenario. The increase in the Company's credit quality over the period (to the highest average credit rating since the Company's inception) continues to strengthen its position, enabling it to effectively navigate market volatility. The Portfolio Manager will look to selectively take advantage of any market volatility.

Environmental, Social and Governance Approach

The Board recognises the importance of Environmental, Social and Governance ("ESG") factors in both investment management and across society in general and has worked closely with the Portfolio Manager in relation to all aspects relevant to the Company's portfolio. Throughout the year, the Portfolio Manager has continued to work extensively on engaging with issuers to improve disclosures, through TwentyFour's proprietary ESG scoring model which includes coverage of asset-backed securities ("ABS") specific metrics, meaning ESG data is factored in to every level of the investment process. The Board and the Portfolio Manager believe this proprietary ESG work is unique in the European ABS space. The Portfolio Manager strongly believes that ESG factors have a material impact on the creditworthiness of the underlying assets.

Annual General Meeting

The Company's 2025 Annual General Meeting ("AGM") was held at the offices of Northern Trust International Fund Administration Services (Guernsey) Limited, Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands on 14 August 2025 at 12pm, with all resolutions passed.

Other

The Board remains focused on delivering value for Shareholders. During the year, this included a close review of all aspects of the Company's operations to ensure that the cost base continues to support long-term performance, and following constructive engagement with our service providers, we secured a reduction in administration fees during the year. This, together with economies of scale associated with the growth of the Company, has meant Ongoing Charges fell for the year ended 30 September 2025 to 1.13% (year ended 30 September 2024: 1.21%).

It is pleasing to note that the Company's shareholder base continues to diversify with an increase in retail investors investing via platforms. The Board continues to focus on engagement across the shareholder base. In particular:

• We are pleased to continue to work with the Portfolio Manager to maintain and further develop the standalone 'microsite' for the Company, www.selectmonthlyincomefund.com, giving retail investors access to a customised website with key content and fund information. We look forward to providing further content and insight in the future.
• In December 2024 and June 2025, in conjunction with the publication of the Company's 2024 Annual Financial Statements and 2025 Unaudited Condensed Interim Financial Statements respectively, George Curtis and I were delighted to present a summary of the Company's key results via the Investor Meet Company Limited platform. This opportunity to engage directly with investors through the presentation and the Q&A section has been a positive step forward for investor communication for the Company. A further presentation is scheduled for 11 December 2025 to present our results for the year ended 30 September 2025.

We were delighted that the performance of the Company was formally recognised and was awarded "Fund of the Year (Sub $1bn)" at the Alternative Credit Investor Awards in London on 19 November 2025.

As Portfolio Manager, TwentyFour continues to provide excellent thought leadership through various industry commentary, blogs, podcasts and webinar presentations. The Board continues to engage closely with the Portfolio Manager and the key advisers to the Company, including via the Company's annual strategy day held on 18 November 2025 in London.

On behalf of the Board, I would like to thank all Shareholders for their continued support.

Ashley Paxton

Chair

10 December 2025

PORTFOLIO MANAGER'S REPORT

For the year ended 30 September 2025

In our capacity as Portfolio Manager to the TwentyFour Select Monthly Income Fund Limited, we are pleased to present our report on the Company's progress for the financial year ended 30 September 2025.

Market Environment

The first quarter of the Company's financial year opened with heightened uncertainty, as investors digested the outcome of the US Presidential election and the associated "Red Sweep" scenario for the incoming President Trump. Fixed income markets experienced sharp volatility, with 10-year Treasury yields rising approximately 80 basis points ("bps") over the quarter as the market priced out interest rate cuts amid concerns over renewed inflationary pressures and potential fiscal stimulus. The US labour market, however, proved resilient, with nonfarm payroll numbers consistently beating market estimates and the unemployment rate remaining broadly stable at 4.2%, allaying fears of a sharp economic slowdown. By the end of the first quarter, headline and core Consumer Price Index ("CPI") prints in the US came in at +2.7% and +3.3% respectively, with the three-month annualised pace of core CPI ticking up to +3.7%, fuelling concerns over sticky inflation. The Federal Reserve ("Fed") cut rates by 25 bps at each of the two meetings during the quarter, building on their 50 bps cut in September 2024, but signalled a slower pace of easing than the market had expected in December 2024, with dot plots indicating just 50 bps of cuts for 2025.

In Europe, weak growth and slowing inflation characterised the first quarter of the financial year. The European Central Bank ("ECB") also cut rates by 25 bps at each meeting, leaving the deposit rate at 3% by the end of December 2024, whilst growth and inflation projections were downgraded for FY25 and FY26. Political developments in France added further volatility, as a successful no-confidence motion ousted Prime Minister Michel Barnier's government. The UK saw rising domestic inflation, with headline CPI reaching +2.6% and core inflation +3.5% by year end, alongside stagnant GDP growth of 0% in the third quarter. UK Gilts experienced periods of significant volatility throughout the first quarter, particularly following Chancellor Rachel Reeves' controversial Autumn Budget announcements.

The beginning of 2025 was defined by shifting central bank expectations, political uncertainty, and mixed economic data. Hawkish Fed rhetoric in January 2025 triggered a sell-off in Treasuries, while Gilts initially weakened on sticky inflation before stabilising on softer CPI prints. Europe showed steadier performance, underpinned by resilient Purchasing Managers' Index data and non-disruptive ECB meetings. February 2025 saw a turn in sentiment as weaker US economic data prompted a risk-off rally, a move that extended through March 2025 after the formal announcement of US tariffs and retaliatory measures from trading partners, raising stagflation risks and prompting widening spreads in High Yield and US Investment Grade credit. European bond markets saw an aggressive move wider at the end of the second quarter after the announcement by Germany of the removal of the debt brake - whilst it was expected to significantly boost growth in Germany in the coming years, it would also lead to larger than expected issuance of German Bunds.

April 2025 opened with renewed volatility after the US announced a set of punitive tariffs on its trading partners, driving credit spreads wider and equities sharply lower. As the quarter developed however, tariff reprieves were formally announced, helping trade tensions to ease, risk assets to rally, and credit spreads to tighten once again. Investors were also encouraged by the continued strength in risk markets, supported by better-than-expected macroeconomic data, robust corporate earnings, and the persistence of a strong technical throughout the fixed income spectrum. Sovereign bonds came under pressure from fiscal concerns, including Moody's downgrade of the US' remaining AAA rating, pushing long-end Treasury yields higher. By the end of the quarter, however, geopolitical tensions in the Middle East caused short-lived spikes in oil prices and volatility, but risk markets remained resilient, with strong primary issuance in European High Yield, Investment Grade, and Financials markets underscoring robust demand. Market expectations for earlier Fed rate cuts also supported risk appetite.

The final quarter saw further resilience in risk assets despite ongoing geopolitical and economic uncertainty. Equity markets reached record highs several times during this period, underpinned by improved clarity on US tariffs and fiscal policy, though sticky inflation, hawkish ECB commentary and inflationary concerns in Japan contributed to sovereign bond sell-offs. August 2025 saw a softening in US labour market data, with payroll growth revised downwards, prompting expectations of a near-term Fed rate cut. Jerome Powell's dovish Jackson Hole speech further reinforced the likelihood of additional easing, contributing to fresh Treasury volatility. US inflation remained above target, sustaining upward pressure on yields, while the ECB and Bank of England ("BoE") held base rates steady. Credit markets remained robust, with European High Yield and financials grinding tighter and the Contingent Convertible ("CoCo") index reaching record tight spreads, supported by strong fundamentals.

Portfolio Performance

The total return of the Company's NAV per Ordinary Share was 12.22% over the financial year, with all sectors contributing positively to performance. The portfolio continued to benefit from strategic exposure to resilient credit sectors, namely Collateralised Loan Obligations ("CLOs") and subordinated financials (Additional Tier 1 bonds ("AT1s") and Restricted Tier 1 bonds), with the sectors returning 13.75%, 12.47% and 13.65%, respectively. Being floating rate instruments, CLOs continue to benefit from the higher rate environment whilst also profiting from the strong technical which persists across the asset class. Performance in subordinated financials was supported by strong earnings from European banks, with resilient asset quality, elevated net interest margins and low levels of non-performing loans.

Several other sectors also saw strong performance, including US and European High Yield at 13.75% and 10.03%, respectively. These sectors were generally supported by a highly constructive backdrop for credit - solid and stable fundamentals, an improving growth backdrop, particularly as we moved through the latter stages of the year, and a very strong technical picture.

Portfolio Strategy

We take a "bottom-up" approach to credit investing for the Company, finding value in the markets through rigorous fundamental analysis and a cross-sector approach to relative value. The Company remained overweight in two sectors in particular, namely subordinated financials and CLOs. Whilst analysing names on a bond-by-bond basis, these sectors in particular offer compelling "top-down" risk reward too.

The credit quality of the portfolio improved over the year reaching its highest level to date. The normalisation of interest rates in Europe over the past few years has driven all-in yields across credit markets higher, a trend that has allowed us to improve credit quality within the portfolio without sacrificing future returns (in fact the average yield on the Company is well above the average since inception).

CLOs have benefitted from elevated central bank base rates due to their floating rate structure, alongside a relatively benign default environment. Spread levels in the CLO sector remain attractive compared with the broader high yield market, while the significant carry continues to support strong returns. The financials sector also remains one of the more compelling risk-reward opportunities in global credit. European banks have strengthened considerably over the past decade and continue to outperform market expectations across most key metrics, including asset quality, net interest margins and non-performing loan ratios. The underlying credit quality of European insurers has also continued to support the Company's allocation to the sector. The CoCo index reached record-tight spread levels by the end of the period, reflecting the ongoing resilience and appeal of the sector amid an improving fundamental backdrop, whilst all-in yields remain elevated relative to history and other areas of the credit market.

We are happy to hold an overweight allocation in these sectors given the elevated risk adjusted returns and attractive fundamental profiles.

Portfolio & Market Outlook

Markets remain sensitive to developments on three key fronts: the direction of US trade policy, the pace of economic growth amongst developed markets, and the path of central bank policy. While resilient economic data and reassuring commentary from policymakers continue to underpin the view that a severe economic downturn will be avoided, the potential for renewed volatility persists. The pace and scale of interest rate cuts in the medium term by the Fed remains uncertain and markets continue to consider the state of the labour market and rate of inflation as key factors driving the Fed's decision-making in both the short- and medium-term, with economic data releases being closely scrutinised.

At the same time, structural factors provide a stabilising influence. The continued resilience of corporate balance sheets, robust banking sector fundamentals, and sustained consumer demand serve as important buffers against economic shocks. Nonetheless, markets are likely to remain reactive to any shifts in policy expectations or signs of slowing growth, underscoring the need for vigilance as investors navigate an environment that, while generally constructive, is still susceptible to periods of volatility.

We see total returns will be driven primarily by carry for the remainder of 2025, particularly from our favoured sectors: Financials (from Senior bonds to AT1s) and Asset-Backed Securities ("ABS") (CLOs and Residential Mortgage Backed Securities ("RMBS")). We will remain vigilant for any signs of worsening credit fundamentals or increasing defaults and will continue to focus on high quality credits that can be underwritten through the cycle, whilst maintaining a strong focus on relative value. Yields in fixed income remain substantially higher than historical averages, which should reward investors whilst offering strong downside breakeven protection. In this environment, with attractive yields relative to history on offer, disciplined carry strategies remain compelling and credit is expected to outperform.

Environment, Social & Governance

At TwentyFour, ESG analysis is integral to our primary goal of delivering capital preservation and performance. Our research and our experience as a specialist fixed income manager tells us ESG factors can have a measurable impact on asset values, and we believe their influence is only likely to grow in the future. Our ESG methodology is embedded within our regular investment process for the Company, and we believe this approach helps us target the maximum risk adjusted returns while promoting better societal outcomes. An active sense check is applied at every step of our process, which enables us to independently scrutinise the data given by bond issuers and our external data provider. Our methodology is specifically tailored to the demands of fixed income, with an additional focus given to more nuanced factors such as momentum (transition), controversies and engagement.

Within the ESG integration framework, the promotion of sustainability characteristics amongst the issuers that we invest in is initially considered through our proprietary scoring model within our proprietary relative value system, Observatory. We currently utilise the Asset4 ESG database from LSEG Data & Analytics (formerly Refinitiv), which gathers scores across a broad range of environmental and social parameters (such as emissions, resource use, workforce, human rights, community etc.) which then feeds into Observatory. At the top level, we believe that this framework facilitates a consistent basis for analysis. The system allows the portfolio management ("PM") team to develop an understanding of the environmental and social characteristics of the issuers within the database. Within the database, we are easily able to challenge and overwrite the score given by LSEG Data & Analytics and reward companies with improving ESG metrics or punish those with decreasing ESG metrics. For those holdings that do not have a score from Asset4, our PM team will independently review the holdings and provide their own score based on similar characteristics. The ABS portfolio management team have created their own system based on the same metrics.

In addition, our ESG integration model incorporates more nuanced factors such as engagements, controversies, and momentum, which are effective ways to promote environmental and social characteristics. For instance, through our engagement approach we are able to develop an in-depth understanding of the environmental and social characteristics of each issuer. We feel that this is a crucial element in identifying environmental and social characteristics as we recognise the limitations of the third-party data that we use and that some scores may not truly reflect potential ESG risks that are associated with certain companies in which we invest. Further to this, our engagements also facilitate momentum opportunities (whether a company is on an improving ESG trend). Through this, the PM team can assess and reward companies who evidence a clear plan and demonstrable execution in improving environmental and social characteristics within their own practices and ultimately achieving their goals.

TwentyFour is a prominent investor in European ABS markets, including on behalf of the Company. From our experience, the specialist structures and complexity associated with this asset class makes ESG data gathering more challenging compared to more mainstream bond markets. Nevertheless, we have worked hard with issuers on closing this data gap and have also extended our Observatory model to cover ABS-specific metrics.

We believe this proprietary ESG work is unique in the European ABS space, and it is well-regarded among our clients and other market participants. We have continued to engage with lenders on Scope 3 financed emissions in RMBS and ABS deals.

Within CLOs, investor demand for ESG integration has increased significantly over the past year resulting in most CLO managers increasing exclusions at portfolio level and within disclosures. We have also worked on several initiatives on the CLO side through the European Leveraged Finance Association ("ELFA"), with initiatives including a paper outlining guidance for CLO managers on carbon and climate disclosures. We have focused particularly on new CLO deals for the Company with positive and negative screening managed by CLO managers with strong ESG credentials.

TwentyFour's ESG Committee oversees all of our ESG and Sustainable activities. The Committee features members from all functions of the business, including several partners, and is co-chaired by members of our Executive Committee. As a signatory to the UK Stewardship Code and the United Nations' Principles for Responsible Investment, we are committed to educating investors about our process and giving transparency on our engagements with firms on ESG issues.

TwentyFour Asset Management LLP

10 December 2025

TOP TWENTY HOLDINGS

As at 30 September 2025

		Credit			Percentage of
Security	Nominal/	Security	Fair Value *		Net Asset Value
	Shares	Sector #	£		%
VSK Holdings '4 C7-1' VAR	500,000	ABS	4,822,798		1.77
Barclays F2V perp	4,050,000	Financial - Banks	4,303,400		1.58
Nationwide Building Society 10.25 29/06/2049	32,960	Financial - Banks	4,284,348		1.57
Banco de Sabadell 6.5% perp	4,400,000	Financial - Banks	4,061,662		1.49
Natwest Group plc F2V perp	4,000,000	Financial - Banks	4,037,149		1.48
UniCredit SPA 6.5%	4,200,000	Financial - Banks	3,901,937		1.43
Banco Santander F2V perp	4,400,000	Financial - Banks	3,637,224		1.33
Rothesay Life 6.875 31/12/2049	3,542,000	Financial - Insurance	3,632,504		1.33
Nationwide Building Society F2V perp	3,400,000	Financial - Banks	3,526,351		1.29
Intesa Sanpaolo F2V perp	3,700,000	Financial - Banks	3,511,193		1.29
Arbour CLO II FRN 15/04/2034	4,000,000	ABS	3,486,881		1.28
Pension Insurance Corporation, 7.375% perp	3,300,000	Financial - Insurance	3,395,667		1.25
AIB Group plc F2V	3,800,000	Financial - Banks	3,392,644		1.24
Bracken MidCo1 6.75% PIK 1/11/2027	3,225,000	High Yield - European	3,226,583		1.18
Bank of Ireland Group 6.12% perp	3,600,000	Financial - Banks	3,214,984		1.18
Santander UK plc 10.375%	2,000,000	Financial - Banks	3,179,652		1.17
Kommunalkredit Austria F2V perp	3,600,000	Financial - Banks	3,134,452		1.15
North Westerly 'X E' FRN	3,500,000	ABS	3,101,835		1.14
Avoca Clo XIII FRN 15/04/2034	3,500,000	ABS	3,073,343		1.13
ABANCA Corporación Bancaria S.A. 6,125%	3,400,000	Financial - Banks	2,984,958		1.09
Total			71,909,565		26.37

* Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

# Asset-backed securities ("ABS"). All other securities are Corporate Bonds.

The full portfolio listing of bonds and ABS as at 30 September 2025 can be obtained from the Administrator on request.

BOARD MEMBERS

Biographical details of the Directors as at date of signing are as follows:

Ashley Paxton - (Non-executive Director and Chair of the Board)

Mr Paxton was appointed as a Director to the Company on 1 November 2021 and became its Chair on 11 August 2023. Mr Paxton spent the majority of his career with KPMG having retired as partner and its Channel Islands Head of Advisory in 2019. Ashley currently holds a number of non-executive directorships across the financial services sector including a number of companies listed on the London Stock Exchange. He also plays an important role in the local third sector. A resident of Guernsey, Ashley is a Fellow of the Institute for Chartered Accountants in England & Wales and holds an Economics degree from the University of Warwick.

Sharon Parr - (Non-executive Director and Chair of the Audit Committee and Senior Independent Director)

Ms Parr was appointed as a Director to the Company on 1 November 2022 and became Chair of the Audit Committee on 11 August 2023 and Senior Independent Director on 1 April 2025. Ms Parr has over 35 years in the finance industry and spent a significant portion of her professional career with Deloitte and Touche in a number of different countries. After a number of years in the audit department, on relocating to Guernsey in 1999 she transferred to their fiduciary and fund management business and, after completing a management buyout and subsequently selling to Barclays Wealth in 2007, she ultimately retired from her role there as Global Head of Wealth Structuring in 2011. Ms Parr holds a number of non-executive directorships across the financial services sector including in other listed funds. Ms Parr is a Fellow of the Institute of Chartered Accountants in England and Wales and a member of the Society of Trust and Estate Practitioners.

Wendy Dorey - (Non-executive Director and Chair of the Management Engagement Committee)

Ms Dorey was appointed as a Director to the Company and Chair of the Management Engagement Committee on 1 February 2023. Ms Dorey has over 25 years' experience in the financial services industry, working for a number of leading asset managers including Robert Fleming & Co., Friends Ivory & Sime Inc, M&G Securities Limited and BNY Mellon Corporation. She started her career in investment marketing and distribution, winning a number of awards for her campaigns to direct investors and the Intermediary market. She was latterly head of business strategy and planning for M&G, where she led a number of corporate restructuring projects and product development initiatives. Since becoming a resident of Guernsey, Ms Dorey has taken on a portfolio of executive and non-executive roles. This includes being a Director of an investment consulting firm and holding non-executive directorships in a leading Wealth Management firm and an AIM-listed fund. She was also appointed as a Commissioner for the Guernsey Financial Services Commission (GFSC) from 2015 to November 2024. Ms Dorey is a Fellow of the Institute of Directors and qualified as a Chartered Director in 2020. She was, until May 2023, the Chair of the Guernsey Branch of the Institute of Directors.

Richard Class - (Non-executive Director and Chair of the Remuneration and Nomination Committee)

Mr Class was appointed as a Director to the Company on 1 November 2023 and became Chair of the Remuneration and Nomination Committee on 1 April 2025. Mr Class' career spans more than thirty years in the financial services sector. During more than a decade at Morgan Stanley, he was Managing Director and Head of EMEA Business Development for Fixed Income, and a portfolio manager for fixed income portfolios with assets totalling €7 billion. Prior to that, he worked for nine years at BG Consulting Group Limited, a financial services training company and was an executive member of the BG Consulting Group Limited board for his last three years at the company. He began his career as a fixed income derivatives trader in interest rate and FX products at Rabobank and Morgan Grenfell. He is currently a senior advisor to OptimX, which helps clients to reduce the costs of using financial markets, and is also a senior mentor to junior and senior professionals in the financial services industry. Mr Class has a Mathematics degree from Oxford University and is a resident of the United Kingdom.

DISCLOSURE OF DIRECTORSHIPS IN PUBLIC COMPANIES LISTED ON RECOGNISED STOCK EXCHANGES

The following summarises the Directors' directorships in other public listed companies:

Company Name					Stock Exchange
Ashley Paxton
Downing Renewables & Infrastructure Trust plc (until 4 November 2025)					London
Ikigai Ventures Limited					London
JZ Capital Partners Limited					London
Sharon Parr
JZ Capital Partners Limited					London
Wendy Dorey
Weiss Korea Opportunity Fund Limited					London
Richard Class
None

STRATEGIC REPORT

For the year ended 30 September 2025

The Directors submit to the Shareholders their Strategic Report for the year ended 30 September 2025.

Business Model and Strategy

The Company is a closed-ended investment company, incorporated with limited liability in Guernsey. The Company has been granted exemption from income tax within Guernsey and it is the intention of the Board to continue to operate the Company so that each year this tax-exempt status is maintained.

Investment objective and policy

The Company's investment objective and policy is set out in the Summary Information section.

Income

The Board has the intention to distribute an amount at least equal to the value of the Company's excess income (as defined in note 19 to the Financial Statements) arising each financial year to the holders of Ordinary Shares. There is however no guarantee that the Dividend Target of 6.0p per Ordinary Share for each financial year will be met or that the Company will make any distributions at all.

The dividends declared per Ordinary Share for the year ended 30 September 2025 totalled 7.30p (30 September 2024: 7.38p). Based on current expectations of yields, it is possible that the year ending 30 September 2026 may also produce an excess income amount over 6.0p per Ordinary Share and so, as with this reporting period, the Board and Portfolio Manager will consider whether the Company may spread the excess income more evenly through the year.

Long-term growth in capital value

The asset value of the Company's portfolio is heavily influenced by external macro-economic factors. The Board regularly discusses the portfolio with the Portfolio Manager. Additional details are covered in the Chair's Statement and Portfolio Manager's Report.

Business Environment

The Company's risk exposure and the effectiveness of its risk management and internal control systems are contained within the Company's risk matrix, which is reviewed regularly by the Audit and Risk Committee and at least annually by the Board. The Board is satisfied that it has carried out a robust assessment of its principal risks and uncertainties.

Principal Risks and Uncertainties

Market risk

The Company invests in credit securities which are subject to market risk, including the potential for both losses and gains from price risk, reinvestment risk, interest rate risk, and foreign currency risk. These are discussed in detail in note 16 to the Financial Statements.

The underlying investments comprised in the portfolio are subject to price risk. The Company is therefore at risk that market events may affect performance and in particular may affect the value of the Company's investments which are valued on a mark to market and mark to model basis. Price risk is risk associated with changes in market prices or rates, including interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, national and international political circumstances. The Company's policy is to manage price risk by holding a diversified portfolio of assets, through its investments in credit securities.

The Company's continuing position in relation to interest rate and duration risk is monitored on a weekly basis by the Portfolio Manager as part of its review of the weekly NAV calculations prepared by the Company's Administrator. The Company may also use swap contracts to mitigate the effects of market volatility on interest rate risk. There were no swaps held as at 30 September 2025.

Given the Company's holdings in investments denominated in currencies other than sterling, the Company is exposed to foreign currency risk. The Company manages its exposure to currency movements by using spot and forward foreign exchange contracts which are rolled forward periodically and typically for a period of one month.

Each quarter, the Board formally reviews the investment performance reports and amortisation schedules (setting out upcoming maturities for monitoring cashflow available for reinvestment) provided by the Portfolio Manager. The Board also considers the impact of economic volatility and of heightened geopolitical tensions on the Company's performance.

Credit risk

The Company invests in credit securities issued by other companies, trusts or other investment vehicles which, compared to bonds issued or guaranteed by governments, are generally exposed to greater risk of default in the repayment of the capital provided to the issuer or interest payments due to the Company and may also expose the Company to more structural risk. These are discussed in detail in note 16 to the Financial Statements.

Each quarter, the Board formally considers portfolio credit analysis presented to it by the Portfolio Manager.

Liquidity risk

All of the assets of the Company are invested in credit securities. These may be illiquid, and this may limit the ability of the Company to realise its investments for the purposes of cash management, including any needs arising for dividend payments or buying back Ordinary Shares either in the quarterly tender process or in the market. There may be no active market in the Company's holdings in credit securities and the Company may be required to provide liquidity to fund tender requests or repay any borrowings. The Company does not have redemption rights in relation to any of its investments. Consequently, the value of the Company's investments may be materially adversely affected. This is discussed in detail in note 16 to the Financial Statements.

The Company has the authority to arrange a Revolving Credit Facility of up to 10% of NAV to fund short-term liquidity requirements. This arrangement has been provided in the past by Northern Trust (Guernsey) Limited, the Company's Principal Banker, and could be re-instated in the future subject to the prior agreement of the Principal Banker. The Company has not drawn from the Revolving Credit Facility in 2025 (2024: none).

Each quarter, the Board formally reviews documentation provided by the Portfolio Manager pertaining to liquidity risk and assesses any action which may be required.

Valuation of investments

The Company's investments had a fair value of £266,874,240 as at 30 September 2025 (30 September 2024: £205,443,235) which are the key constituent of the Company's net assets. As disclosed in more detail in notes 2 and 3 to the Financial Statements, these investments have been valued at fair value through profit or loss. Investments which are not traded on active markets, which comprise the majority of the portfolio, are valued by reference to their mid-price as determined using a number of methods including broker dealer quotations, reported trades or valuation estimates using pricing models. These valuation assessments are calculated daily and reviewed weekly by the AIFM. An independent third-party valuation expert was used to value approximately 2.29% of the Company's investments at 30 September 2025 (30 September 2024: 3.11%). The Company's weekly NAV ensures that investors have sight of timely, relevant valuations of the portfolio assets on a frequent basis. .

Income recognition risk

As disclosed in note 3(ii)(d) to the Financial Statements, interest income is recognised on a time-proportionate basis using the effective interest rate method. Discounts received or premiums paid in connection with the acquisition of credit securities are amortised into interest income using the effective interest rate method over the expected life of the related security.

When calculating the effective interest rate, the Portfolio Manager estimates cash flows considering the expected life of the financial instrument, including future credit losses and deferred interest payments. The calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate and all other premiums or discounts.

Revenue estimations are sensitive to changes in interest income resulting from financial instruments defaulting. Interest income represents the Portfolio Manager's best estimate having regard to historical volatility and looking forward at the global environment.

Dividends

The Company has a Dividend Target of 6p per Ordinary Share for each financial year, and the Board consequently targets a minimum monthly dividend of 0.5p per Ordinary Share. If the Dividend Target was not able to be met in a year or the Board considers that it should be reduced, a Continuation Resolution would be put to Shareholders.

As explained in note 19 to the Financial Statements, in addition to the Dividend Target the Board intends, with the final monthly dividend for each financial year, to distribute an amount equal to the value of any unaudited excess income of the Company for that financial year remaining after payment of the monthly dividends. The Board may also elect during the year to approve an additional interim amount per Ordinary Share if the Company is exceeding its Dividend Target.

The Board meets each month to consider the approval of a monthly interim dividend and post year end in respect of the final monthly dividend for each financial year.

As the Dividend Target is central to the Company's purpose, the Board and the Portfolio Manager are very focused on the sustainability of the dividend and regularly monitor and review the position. The Portfolio Manager is confident that the Dividend Target remains achievable in the current yield environment, even with forecast interest rate cuts priced in.

The Company's ability to pay dividends is governed by The Companies (Guernsey) Law, 2008 which requires the Company to satisfy the prescribed statutory solvency test. The Board formally considers this at each monthly meeting prior to approving each dividend payment and, if at the time a dividend is to be paid, the Board believes that the solvency test cannot be passed, then no payment will be made.

Quarterly tenders

In order to minimise the risk of the Ordinary Shares trading at a significant discount to NAV, the Company has incorporated into its structure a mechanism for a quarterly tender. The Company offers shareholders a quarterly opportunity to a tender up to 20% of the Ordinary Shares in issue as at the relevant quarter record date, subject to an aggregate limit of 50% of the Ordinary Shares in issue in any twelve-month period ending on the relevant quarter record date. In the event that quarterly tender applications, on any tender submission deadline, exceed the 50% limit, the Board will convene a General Meeting in accordance with the Continuation Vote requirements set out in note 16 to the Financial Statements. The execution and acceptance of the quarterly tenders is at the sole discretion of the Board.

A key consideration for the ongoing viability of the Company is therefore its liquidity assessment which is considered on an ongoing basis by the Board. No liquidity concerns were identified for the year ended 30 September 2025 and the Board and Portfolio Manager are confident that under anticipated market conditions the Company can continue to meet tender requests as they arise.

During the year, 949,852 shares were tendered and purchased by the Corporate Broker and subsequently placed with investors. In addition, post year end, a further 119,559 shares were initially purchased by the Corporate Broker and subsequently placed with investors in respect of the tender for the quarter ended 30 September 2025.

Shareholder base

The Corporate Broker has limited ability to engage with all investor types and non-institutional investors now form a large shareholder group. This group is often more active on a daily basis than passive institutional holders, and with turnover in the shares relatively low, has an important marginal price impact. This could cause the price to be especially volatile during periods when market maker capital is constrained, and information flow is poor. As engagement with this group of shareholders is difficult, the Company's shares could suffer from periods of short-term market volatility. Post year end, there continues to be healthy demand for shares in the Company, with 13,750,000 Ordinary Shares issued by 10 December 2025.

The Board utilises the Corporate Broker and media to monitor Shareholders' opinions and identify potential issues. The Board has retained the services of JPES Partners Limited to better engage with all shareholder groups and in doing so continues to weigh up the cost of this against the long-term benefits.

The Board's assessment of the above risks has not changed during the year.

Other Risks and Uncertainties

The Board has identified the following other risks and uncertainties along with steps taken to monitor (and mitigate where appropriate/possible):

Operational risks

The Company does not have executive directors or employees. It has entered into contractual arrangements with a network of third parties (the "Service Providers") who provide services to it. The Board, through the Management Engagement Committee, undertakes annual due diligence on, and ongoing monitoring of, all such Service Providers including obtaining a confirmation that each such Service Provider complies with relevant laws and regulations, good practice, delivers value for money and has environmental, social and governance policies in place.

The Company is exposed to the risk arising from any failures of systems and controls in the operations of the Service Providers. The Board and its Audit and Risk Committee regularly review reports from the Portfolio Manager, the AIFM, Corporate Broker, Administrator and Custodian and Depositary on their internal controls. The Administrator will report to the Portfolio Manager any valuation issues which will be brought to the Board for final approval as required.

The Company is exposed to cyber-attack risk through its Service Providers. Through the Management Engagement Committee, the Company asks its Service Providers to confirm that they have appropriate safeguards in place to mitigate the risk of cyber-attacks and remote working (including minimising the adverse consequences arising from any such attack), that they provide regular updates to the Board on cyber security, and conduct ongoing monitoring of industry developments in this area. Some Service Providers have arrangements to work from home as per their policies. None of the Service Providers have reported any problems regarding cyber security when questioned by the Management Engagement Committee.

Accounting, legal and regulatory risks

The Company is exposed to the risk that it may fail to maintain accurate accounting records, fail to comply with requirements of its Admission document and fail to meet listing obligations. The accounting records prepared by the Administrator are reviewed by the Portfolio Manager. The Portfolio Manager, Administrator, AIFM, Custodian and Depositary and the Financial Adviser and Corporate Broker provide regular updates to the Board on compliance with the Admission document and changes in any relevant regulations.

Changes in legal or regulatory environments can have a major impact on some classes of debt. The Portfolio Manager and Board monitor this and take appropriate action where needed.

Climate risk

The Financial Stability Board ("FSB") formed the Task Force on Climate-related Financial Disclosures ("TCFD") in December 2015 to address the impact climate change is having on companies and the global financial system through disclosure. In July 2023, the FSB announced that the work of the TCFD has been completed, with the International Sustainability Standards Board ("ISSB") Standards marking the 'culmination of the work of the TCFD'. The UK government has consulted on the exposure drafts of the UK versions of IFRS S1 and IFRS S2. The Company is a closed-ended Guernsey domiciled fund. There is no current mandatory requirement under the UKLR or any other framework to make disclosures in line with the ISSB standards for closed-ended funds. The Board, in conjunction with the Portfolio Manager, continues to assess disclosures made in similar entities to that of the Company so as to best articulate the low levels of climate risk to which the Board believes the Company is exposed.

Environmental, social and governance

The Board recognises the importance of environmental, social and governance ("ESG") factors in the investment management industry and the wider economy as whole. The Company is a closed-ended investment company with a limited purpose and without employees. As such, it is the view of the Board that the direct environmental and social impact of the Company is limited and that ESG considerations are most applicable in respect of the asset allocation and security selection decisions made for its portfolio.

The Company has appointed the Portfolio Manager to advise it in relation to all aspects relevant to the Investment Portfolio. Whilst the Company was not established with explicit ESG targets and does not have any ESG objectives , the Portfolio Manager includes ESG factors in its investment appraisal and approach and has a formal ESG framework. The Portfolio Manager has an active ESG Committee representing all areas of its business. The Board receives regular updates from the Portfolio Manager on its ESG processes and assesses their suitability for the Company. ESG factors are automatically assessed by the Portfolio Manager for every transaction as part of their investment process.

Additional information is detailed below and in the Portfolio Manager's Report.

The Board's assessment of the above risks has not materially changed during the year and it is satisfied that the Service Providers have the relevant controls in place to manage the risks.

Future Prospects

The Board's main focus is to generate attractive risk adjusted returns principally through income distributions. The future of the Company is dependent upon the success of the investment strategy. The investment outlook and future developments are discussed in both the Chair's Statement and the Portfolio Manager's Report.

Board Diversity

When appointing new Directors and reviewing the Board composition, the Remuneration and Nomination Committee considers, amongst other factors, cognitive diversity, balance of skills, knowledge, gender, social and ethnic background and experience. As at 30 September 2025, the Board consisted of two female and two male Directors. Ms Parr is the Senior Independent Director and the Chair of the Audit and Risk Committee. As at 30 September 2025, the Company has therefore met the targets set by the UKLR 6.6.6R(9) in relation to board diversity for the percentage of its board members who are female and also in a senior position.

The Remuneration and Nomination Committee considers the UKLR in making its recommendations for appointments but does not consider it appropriate to establish targets or quotas in this regard. It has not met the target to have one director from a minority ethnic background but considers this satisfactory due to the cognitive diversity of the members of the Board and in particular due to the difference in social and educational backgrounds of its constituent members. The Company has no employees .

Shareholder Engagement

The Board welcomes Shareholders' views and places great importance on communication with its Shareholders. Shareholders are welcome to meet with the Chair and other Board members and should contact the Company's Administrator in the first instance.

The Portfolio Manager and Deutsche Numis as Financial Adviser and Corporate Broker maintain a regular dialogue with institutional Shareholders, the feedback from which is reported to the Board.

The Company's AGM provides a forum for Shareholders to meet and discuss issues of the Company and they have the opportunity to vote on the resolutions as specified in the Notice of the AGM. The Notice of the AGM and the results are released to the LSE in the form of an announcement.

In addition, members of the Board attend investor days and conferences held by the Portfolio Manager. Formal presentations are also held via Investor Meet Company Limited, in respect of annual and interim results, to engage with the wider shareholder base.

The Portfolio Manager maintains a website for the Company, www.selectmonthlyincomefund.com, which contains comprehensive information, including links to regulatory announcements, share price information, financial reports, investment objective, monthly factsheets and investor contacts.

Position and Performance

Packaged Retail and Insurance-based Investment Products Key Information Document

The Company has published a Key Information Document ("KID") in compliance with the Packaged Retail and Insurance-based Investment Products ("PRIIPs") Regulation. The KID can be found on the Portfolio Manager's website at the below web address:

https://selectmonthlyincomefund.com/documents/

The process for calculating the risks, cost and potential returns is prescribed by regulation. The figures in the KID may not reflect the Portfolio Manager's expected returns for the Company and anticipated returns cannot be guaranteed.

Key Performance Indicators ("KPIs")

At each Board meeting, the Board considers a number of performance measures to assess the Company's success in achieving its objectives. Balanced with the Board's consideration of risk factors, below are the main KPIs which have been identified by the Board for determining the progress of the Company:

• Net Asset Value ("NAV");
• Share Price;
• Premium/Discount;
• Ongoing Charges; and
• Monthly Dividends.

Net asset value

The NAV per Ordinary Share, including revenue reserve, at 30 September 2025 was 86.06p, based on net assets as at this date of £272,718,193 divided by number of Ordinary Redeemable Shares in issue of 316,889,197 (30 September 2024: 83.70p based on net assets of £219,767,370 divided by number of Ordinary Redeemable Shares in issue of 262,574,331).

Share price

The Share Price is the price per share per Ordinary Redeemable Share trading on the London Stock Exchange. On 30 September 2025, the share price was 87.80p (30 September 2024: 85.30p).

Premium/discount to NAV

The premium/discount to NAV is a percentage difference in share price per share to the net asset value per Ordinary Share. It is calculated by subtracting the share price from the NAV per Ordinary Share and dividing it by the NAV per Ordinary Share. If the share price is higher than the NAV per Ordinary Share, the shares are trading at a premium. If the share price is lower than the NAV per Ordinary Share, the shares are trading at a discount.

On 30 September 2025, the premium to NAV was 2.02% (30 September 2024: premium of 1.91%).

Ongoing Charges

Ongoing Charges for the year ended 30 September 2025 have been calculated in accordance with the AIC recommended methodology. Ongoing Charges take into account the Company's management fee and all other operating expenses, excluding finance costs, share issue or buyback costs and any non-recurring legal and professional fees, and are expressed as a percentage of the average weekly net assets during the year.

Ongoing Charges for the year ended 30 September 2025 were 1.13% (30 September 2024: 1.21%). Ongoing Charges were calculated as follows:

							30.09.25	30.09.24
							£	£
Ongoing Charges
Average NAV for the year (a)							237,891,800	196,788,215
Total expenses							2,710,047	2,457,859
Less: Expenses not recognised as part of the
AIC Ongoing Charges Methodology							(21,034)	(70,507)
Total recognised expenses (b)							2,689,013	2,387,352
Ongoing Charges (b/a)							1.13%	1.21%

Dividends

The Company maintains a Dividend Target of 6p per Ordinary Share.

The dividends per Ordinary Share in respect of the year ended 30 September 2025 totalled 7.30p (30 September 2024: 7.38p) meaning that the Company exceeded its Dividend Target for the current year.

During the year, the following dividends were declared and paid:

Period to	Dividend per Ordinary Share (pence)	Net dividend payable (£)	Ex-dividend date	Record date	Pay date
30 September 2024*	1.38	3,624,403	17 October 2024	18 October 2024	1 November 2024
31 October 2024	0.50	1,345,372	21 November 2024	22 November 2024	6 December 2024
29 November 2024	0.50	1,350,372	19 December 2024	20 December 2024	3 January 2025
31 December 2024	0.50	1,360,372	16 January 2025	17 January 2025	31 January 2025
31 January 2025	0.50	1,382,622	20 February 2025	21 February 2025	7 March 2025
28 February 2025	0.50	1,397,372	20 March 2025	21 March 2025	4 April 2025
31 March 2025	0.75	2,096,057	17 April 2025	22 April 2025	6 May 2025
30 April 2025	0.50	1,416,872	22 May 2025	23 May 2025	6 June 2025
31 May 2025	0.50	1,439,372	19 June 2025	20 June 2025	4 July 2025
30 June 2025	0.75	2,211,557	17 July 2025	18 July 2025	1 August 2025
31 July 2025	0.50	1,521,946	21 August 2025	22 August 2025	5 September 2025
31 August 2025	0.50	1,561,947	18 September 2025	19 September 2025	30 September 2025
		20,708,264
30 September 2025	1.30	4,158,690	16 October 2025	17 October 2025	31 October 2025

* This dividend was declared in respect of distributable profit for the year ended 30 September 2024.

Viability Statement

Under the UK Corporate Governance Code, the Board is required to make a viability statement which considers the Company's current position and principal risks and uncertainties, combined with an assessment of the prospects of the Company, in order to be able to state that they have a reasonable expectation that the Company will be able to continue in operation over the period of their assessment. The Board considers that three years is an appropriate period to assess the viability of the Company given the uncertainty of the environment within which it operates and the principal risks and uncertainties affecting the Company.

The Company's prospects are driven by its business model and strategy. The Company's investment objective is to generate attractive risk adjusted returns, principally through income distributions, by investing in a diversified portfolio of credit securities. The Board also recognises the importance of preserving and rebuilding capital which contributes to generating attractive total returns for shareholders.

Key assumptions considered by the Board in relation to the viability of the Company are as follows:

Dividend Target

The Company has a Dividend Target of 6p per Ordinary Share for each financial year. If the Dividend Target was not able to be met in a year or the Board considers that it should be reduced, a Continuation Resolution would be put to Shareholders.

The Company declared dividends for the financial year of 7.30p per Ordinary Share, and each financial year since incorporation the Company has paid dividends in excess of the Company's Target Dividend.

The Portfolio Manager is confident that the Dividend Target remains achievable in the current yield environment, even with forecast interest rate cuts priced in.

Quarterly tenders

Due to the quarterly tender process, a key consideration for the ongoing viability of the Company is its liquidity assessment which is considered on an ongoing basis by the Board. No liquidity concerns were identified for the year ended 30 September 2025 and the Board and Portfolio Manager are confident that under anticipated market conditions the Company can continue to meet tender requests as they arise.

During the year, 949,852 shares were tendered and purchased by the Corporate Broker and subsequently placed with investors. In addition, post year end, a further 119,559 shares were initially purchased by the Corporate Broker and subsequently placed with investors in respect of the tender for the quarter ended 30 September 2025. Additional information on the tenders is detailed in the Chair's Statement.

Other

As part of the Board's viability assessment for the 3 year period to 30 September 2028, having due regard to the Company's principal risks and uncertainties, it has formally considered projected cashflow forecasts, the amortisation profile of its current portfolio, and a detailed dividend coverage analysis incorporating its assumptions around reinvestment of bond redemptions at yields sufficient to ensure the sustainability of income to meet the Company's future Dividend Target after known liabilities such as fees and dividends. Additionally, the Board considered relevant analyses related to liquidity risk, credit risk, and foreign exchange risk pertaining to the Company.

Viability conclusion

Based on the above assessment, the Board has concluded that there is a reasonable expectation that the Company will be able to continue to operate and to meet its liabilities as they fall due over the three-year period to 30 September 2028.

Section 172 Statement

Although the Company is domiciled in Guernsey, the Board has considered the guidance set out in The AIC Code of Corporate Governance (the "AIC Code") in relation to Section 172 of the Companies Act 2006 in the UK. Section 172 of the Companies Act requires that the Directors of the Company act in the way they consider, in good faith, is most likely to promote the success of the Company for the benefit of all stakeholders, including suppliers, customers and Shareholders.

Further information as to how the Board has had regard to the Section 172 factors is shown below:

Section 172 factors	Key examples	Locations
Consequences of decisions in	Investment Objective and Policy	Summary Information
the long term	Future Prospects	Strategic Report
	Dividend policy	Note 19
	Viability Statement	Strategic Report
Fostering business relationships with suppliers, customers and other stakeholders	Shareholders Key Service Providers	Strategic Report AGM Monthly Factsheet and Commentary Presentations via Investor Meet Company Limited
Impact of operations on the community and the environment	Environmental, Social and Governance	Strategic Report
Maintaining high standard of business conduct	Corporate Governance	Directors' Report

Key Service Providers

The Company does not have any employees and as such, the Board delegates responsibility for its day-to-day operations to a number of key Service Providers. The key Service Providers include the Portfolio Manager, the Administrator, the Alternative Investment Fund Manager, the Registrar, the Receiving Agent, the Corporate Broker, and the Legal Advisers. The activities delegated, service levels and other reports related to the activities of each Service Provider (such as their own approach to such matters as cyber risk and assessment of climate change risk to operations) are closely monitored, where deemed as appropriate by the Board and each Service Provider is required to report to the Board at set intervals.

The Board also meets with key Service Providers, where necessary, to consider service levels, the long-term strategy of the business, incorporating presentations and discussion on longer-term opportunities and threats to the business. Focus is placed on emerging risks which have the potential to disrupt the business model.

Signed on behalf of the Board of Directors on 10 December 2025 by:

Ashley PaxtonSharon Parr

ChairSenior Independent Director

DIRECTORS' REPORT

The Directors present their Annual Report and Audited Financial Statements for the year ended 30 September 2025.

Business Review

The Company

The Company was incorporated with limited liability in Guernsey, as a closed-ended investment company on 12 February 2014. The Company's shares were listed on the Official List of the FCA and admitted to trading on the Main Market of the LSE on 10 March 2014.

Investment Objective and Policy

The investment objective and policy is set out in the Summary Information.

Premium/Discount to Net Asset Value

The Board monitors and takes action where appropriate to manage the level of the share price premium/discount to NAV. In doing this, the Company can operate a share buyback facility whereby it may purchase, subject to various terms as set out in its Articles and in accordance with The Companies (Guernsey) Law, 2008, up to 14.99% of the Company's Ordinary Shares in issue immediately following Admission for trading on the LSE.

The Company can also offer investors, at the Board's sole discretion, a quarterly tender, contingent on certain factors, to provide Shareholders with a quarterly opportunity to submit Ordinary Shares for placing or repurchase by the Company at a price representing a discount of no more than 2% to the then prevailing NAV. For additional information, refer to note 16 (i) to the Financial Statements.

Shareholder Information

Shareholder information is set out in the Summary Information.

As at 1 October 2024, the Company had the ability to issue 30,541,891 Ordinary Shares under a block listing facility. On 30 June 2025 and 14 August 2025, the Company announced that applications had been made for the block listing of an additional 8,772,975 and 30,000,000 Ordinary Shares, respectively. During the year, 54,314,866 new Ordinary Shares were issued. As at 30 September 2025, the Company had the ability to issue 15,000,000 Ordinary Shares under the block listing facility.

With effect from 19 January 2026, the block listing regime (UKLR 20.6) is expected to be removed and further listing applications with the FCA will no longer be required.

Going Concern Statement

A fundamental principle of the preparation of financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") is the judgement that an entity will continue in existence as a going concern for a period of at least 12 months from the signing of the Financial Statements.

The Board, in its consideration of the going concern position of the Company, has formally considered projected cashflow forecasts, and relevant analyses related to liquidity risk, credit risk, and foreign exchange risk pertaining to the Company. Taking into consideration the Company's investment objective, its principal risks and uncertainties and financial risk management (note 16 to the Financial Statements), together with the viability assessment, the Board is satisfied that the Company has adequate financial resources and suitable management arrangements in place to continue as a going concern for at least twelve months from the date of approval of the Financial Statements.

Accordingly, the Board continues to adopt the going concern basis in preparing these Financial Statements.

Results

The principal purpose of the Company is to generate an income which is currently framed on a 6p per Ordinary Share annual Dividend Target. The ability to generate this is a central focus of the Portfolio Manager and the Board. The Board intends to distribute an amount at least equal to the value of the Company's excess income, as defined in note 19 to the Financial Statements, arising each financial year to the holders of Ordinary Shares on an annual basis.

Importantly, the ability to achieve the Dividend Target is linked to market conditions and the amount of risk the Company takes. In this regard, the intention is not to increase the Company's risk profile simply to meet the Dividend Target. That being said, where the anticipated rewards for higher risk taking are attractive, the Company would be comfortable assuming more tactical risk within appropriate parameters.

The results for the year are set out in the Statement of Comprehensive Income. The Board declared dividends of £20,708,264 during the year ended 30 September 2025 (30 September 2024: £19,348,919), a breakdown of which can be found in note 19 to the Financial Statements. The 30 September 2025 distribution which was declared on 9 October 2025 was paid on 31 October 2025.

Retained earnings, which include realised and unrealised gains and losses on the Company's assets, improved during the reporting period. These include both investment assets, such as bonds, and foreign exchange and other derivatives used purely for hedging, as well as all forms of income. Securities purchased at a premium and large foreign exchange movements will further impact retained earnings as will unfavourable market movements or credit events.

Managing the portfolio to improve the retained earnings during favourable market conditions or to maintain these during difficult market conditions is also an aim of the Portfolio Manager. The ability to do this is fundamentally impacted by the Dividend Target.

Portfolio Manager

The portfolio management fee is payable to the Portfolio Manager, TwentyFour Asset Management LLP, monthly in arrears at a rate of 0.75% per annum of the lower of NAV, which is calculated weekly on each valuation day and on the last business day of each month, or market capitalisation of each class of share. For additional information refer to note 14 to the Financial Statements. The Portfolio Manager is also entitled to a commission of 0.175% of the aggregate gross offering proceeds in relation to any issue of new shares.

The Board considers that the interests of Shareholders, as a whole, are best served by the ongoing appointment of the Portfolio Manager to achieve the Company's investment objective.

Alternative Investment Fund Manager ("AIFM")

Alternative investment fund management services are provided by Waystone Management Company (IE) Limited ("Waystone"). The AIFM fee is subject to a minimum fee of £65,000 per annum and is payable monthly in arrears at a rate of 0.03% of the NAV of the Company below £250 million, 0.025% on Net Assets between £250 million and £500 million, 0.02% on Net Assets between £500 million and £1 billion and 0.015% on Net Assets in excess of £1 billion. For additional information, refer to note 15 to the Financial Statements.

Custodian and Depositary

Custody and Depositary services are provided by Northern Trust (Guernsey) Limited. The terms of the Depositary agreement allow Northern Trust (Guernsey) Limited to receive professional fees for services rendered. The Depositary agreement includes custodian duties. For additional information, refer to note 15 to the Financial Statements.

Directors

The Directors of the Company during the year and as at the date of this report are set out in the Corporate Information.

Directors' and Other Interests

The Directors of the Company held the following Ordinary Shares beneficially:

		As at 30.09.25		As at 30.09.24
		Number of Ordinary Shares		Number of Ordinary Shares
Ashley Paxton		120,000		120,000
Sharon Parr		98,004		98,004
Wendy Dorey¹		38,505		15,000
Richard Class²		75,000		50,000

1 On 1 October 2024, Wendy Dorey purchased 23,505 Ordinary Shares.

2 On 3 April 2025, Richard Class purchased 25,000 Ordinary Shares.

Corporate Governance

The Board is committed to high standards of corporate governance and has implemented a framework for corporate governance which it considers to be appropriate for an investment company in order to comply with the principles of the UK Corporate Governance Code (the "UK Code"). The Company is also required to comply with the Code of Corporate Governance issued by the Guernsey Financial Services Commission (the "GFSC Code").

The FCA requires all UK listed companies to disclose how they have complied with the provisions of the UK Code. This Corporate Governance Statement, together with the Going Concern Statement, Viability Statement and the Statement of Directors' Responsibilities, indicates how the Company has complied with the principles of good governance of the UK Code and its requirements on Internal Control.

The Company is a member of the AIC and by complying with the AIC Code of Corporate Governance (the "AIC Code") is deemed to comply with both the UK Code and the GFSC Code.

The Board has considered the principles and recommendations of the AIC Code and considers that reporting against these will provide better information to Shareholders. To ensure ongoing compliance with these principles the Board reviews a report from the Corporate Secretary regularly, identifying how the Company is in compliance and identifying any changes that might be necessary.

The AIC Code is available on the AIC's website, www.theaic.co.uk. The UK Code is available in the Financial Reporting Council's ("FRC") website, www.frc.org.uk and the GFSC Code is available at www.gfsc.gg.

Throughout the year ended 30 September 2025, the Company has complied with the recommendations of the AIC Code and thus the relevant provisions of the UK Code, except as set out below.

The UK Code includes provisions relating to:

• The role of the Chief Executive, as required by principle G and provision 9;
• Executive Directors' remuneration, as required by principle Q and provision 40;
• Annually assessing the need for an internal audit function, as envisaged by principle M and provision 25; and
• The means for the workforce to raise concerns, as required by principle E and provision 6.

For the reasons set out in the AIC Code, the Board considers the first three provisions are not relevant to the position of the Company as it is an externally managed investment company. The Company has therefore not reported further in respect of these provisions. The fourth point is not applicable to the Company as it has no employees.

Details of compliance with the AIC Code are noted below. There have been no other instances of non-compliance, other than those noted above.

Role, Composition and Independence of the Board

The Board is the Company's governing body and has overall responsibility for maximising the Company's success by directing and supervising the affairs of the business and meeting the appropriate interests of Shareholders and relevant stakeholders. A summary of the Board's responsibilities is as follows:

• statutory obligations and public disclosure;
• strategic matters and financial reporting;
• risk assessment and management including reporting compliance, governance, monitoring and control; and
• other matters having a material effect on the Company.

The Board's responsibilities for the Annual Report and Audited Financial Statements are set out in the Statement of Directors' Responsibilities.

The Board consists of four non-executive Directors, all of whom are considered to be independent of the Portfolio Manager and as prescribed by the UKLR.

Having undertaken a skills review, the Board considers it has the appropriate balance of diverse skills and experience, independence and knowledge of the Company and the wider sector. This enables it to discharge its duties and responsibilities effectively and that no individual or group of individuals dominates decision-making. The Chair is responsible for leadership of the Board and ensuring its effectiveness.

The Chair is Ashley Paxton. The Chair of the Board must be, and is considered to be, independent for the purposes of UKLR 11.2.12.

Biographies for all the Directors and their list of directorships in other public listed companies (including cross directorships in those companies) can be found in the Board Members section. Furthermore, no member of the Board:

• has any current or historical employment with the Portfolio Manager; and
• has any current directorships in any other investment funds managed by the Portfolio Manager.

The Board needs to ensure that the Annual Report and Audited Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for Shareholders to assess the Company's position, performance, business model and strategy. In seeking to achieve this, the Directors have set out the Company's investment objective and policy and have explained how the Board and its delegated committees operate and how the Directors review the risk environment within which the Company operates and set appropriate risk controls. Furthermore, throughout the Annual Report and Audited Financial Statements, the Board has sought to provide further information to enable Shareholders to have a fair, balanced and understandable view.

The Board has contractually delegated activities related to the management of its investment portfolio to the Portfolio Manager, risk management to the AIFM, the arrangement of custodial and depositary services and the provision of administration, accounting and company secretarial services including the independent calculation of the Company's NAV and the production of the Annual Report and Financial Statements which are independently audited to the Administrator and registrar functions to the Registrar.

The Board is responsible for the appointment and monitoring of all Service Providers to the Company.

The Board is kept fully informed of investment and financial controls and other matters by all Services Providers that are relevant to the business of the Company and should be brought to the attention of the Board.

The Company has adopted a policy that the composition of the Board of Directors, which is required by the Company's Articles to comprise of at least two persons, is at all times such that a majority of the Board is independent of the Portfolio Manager and any company in the same group as the Portfolio Manager; the Chair of the Board of Directors is free from any conflicts of interest and is independent of the Portfolio Manager and of any company in the same group as the Portfolio Manager; and that no more than one director, partner, employee or professional adviser to the Portfolio Manager or any company in the same group as the Portfolio Manager may be a Director of the Company at any one time.

The Board has a breadth of experience relevant to the Company and the Directors believe that any changes to the Board's composition can be managed without undue disruption. With any new director appointment to the Board, consideration will be given as to what induction process is appropriate.

On 1 April 2025, Sharon Parr relinquished her role as the Chair of the Remuneration and Nomination Committee and was appointed as Senior Independent Director. Richard Class was appointed as the Chair of the Remuneration and Nomination Committee on the same date. No immediate changes to the Board are currently anticipated.

The Board believes that the current appointments provide an appropriate range of skills, experience and diversity.

Directors' Attendance at Meetings

The Board holds full quarterly Board meetings to discuss general management including: dividend policy, structure, finance, corporate governance, marketing, risk management, liquidity, compliance, asset allocation and gearing, contracts and performance. The full quarterly Board meetings are the principal source of regular information for the Board enabling it to determine policy and to monitor performance, compliance and controls. These meetings are also supplemented by communication and discussions throughout the year, particularly the regular Board meetings to consider monthly dividends and quarterly tenders.

A representative from each of the Portfolio Manager, AIFM, Administrator, Custodian and Depositary and the Financial Adviser and Corporate Broker attends each full quarterly Board meeting either in person or electronically, thus enabling the Board to fully discuss and review the Company's operation and performance. Each Director has direct access to the Portfolio Manager and Company Secretary and may, at the expense of the Company, seek independent professional advice on any matter. Both appointment and removal of these parties is to be agreed by the Board as a whole.

The Audit and Risk Committee meets at least twice a year, the Management Engagement Committee and Remuneration and Nomination Committee meet at least once a year, a dividend meeting is held monthly and there are additional meetings covering the quarterly tenders as and when necessary. In addition, ad hoc meetings of the Board to review specific items between the regular scheduled quarterly meetings can be arranged. Between formal meetings, there is regular contact with the Portfolio Manager, AIFM, Administrator, Custodian and Depositary and the Financial Adviser and Corporate Broker, and an annual strategy day.

Although some of the Directors hold other listed Board positions, the Board is satisfied that they have sufficient time commitment to carry out their duties for the Company as evidenced by their attendance during the year which was as follows:

		Board Meetings		Audit and Risk Committee Meetings		Management Engagement Committee Meetings		Remuneration and Nomination Committee Meetings		Ad hoc Committee Meetings
		Held	Attended	Held	Attended	Held	Attended	Held	Attended	Held	Attended
Ashley Paxton		4	4	4	4	1	1	1	1	19	15
Sharon Parr		4	4	4	4	1	1	1	1	19	17
Wendy Dorey		4	4	4	4	1	1	1	1	19	17
Richard Class		4	4	4	4	1	1	1	1	19	15

At the Board meetings, the Directors review the management of the Company's assets and liabilities and all other significant matters to ensure that the Directors maintain overall control and supervision of the Company's affairs.

Election of Directors

The election of Directors is set out in the Directors' Remuneration Report.

Board Performance and Training

On appointment to the Board, Directors will be offered relevant training and induction. Training is an on-going matter as is discussion on the overall strategy of the Company.

On appointment to the Board, each Director considered the expected time needed to discharge their responsibilities effectively. The Directors confirmed that each had sufficient time available and would inform the Board of any subsequent changes.

In November 2024, the Board appointed an external independent consultant, Stogdale St James Limited, which completed an independent board evaluation and formally presented its findings at the March 2025 quarterly Board meeting. All recommendations were fully implemented, which included the appointment of a Senior Independent Director.

Criminal Finances Act 2017

In respect of the Criminal Finances Act 2017 which has introduced a new corporate criminal offence ("CCO") of 'failing to take reasonable steps to prevent the facilitation of tax evasion', the Board confirms that they are committed to zero tolerance towards the criminal facilitation of tax evasion.

Retirement by Rotation

Under the terms of their appointment, each Director is required to retire by rotation and be subject to re-election at least every three years. The Directors are also required to seek re-election if they have already served for more than nine years. The Company may terminate the appointment of a Director immediately on serving written notice and no compensation is payable upon termination of office as a director of the Company becoming effective. All Directors typically stand for re-election annually and all were re-elected with votes in favour in excess of 90% at the AGM.

Board Committees and their Activities

Terms of Reference

All Terms of Reference of the Board's Committees are available from the Administrator upon request.

Management Engagement Committee

The Board has established a Management Engagement Committee with formal duties and responsibilities. The Management Engagement Committee commits to meeting at least once a year and comprises the entire Board. Wendy Dorey serves as chair. The duties and responsibilities include the regular review of the performance, fees and contractual arrangements with the Portfolio Manager and other Service Providers and the preparation of the Committee's annual opinion as to the Portfolio Manager's services.

The Management Engagement Committee carried out its review of the performance and capabilities of the Portfolio Manager at its meeting during the year and the Board recommended the continued appointment of TwentyFour Asset Management LLP as Portfolio Manager to be in the best interest of the Company.

The Board conducts an annual strategy day with the Portfolio Manager at their offices and did so in November 2024 and 2025 when they met with various TwentyFour staff and representatives of Deutsche Numis. In addition, the Board has attended various investor days and webinar presentations given by the Portfolio Manager.

The Board considers that the interests of Shareholders, as a whole, are best served by the ongoing appointment of the Custodian and Depositary and AIFM, to achieve the Company's investment objective.

Audit and Risk Committee

An Audit and Risk Committee has been established consisting of all Directors. Sharon Parr serves as chair. The terms of reference of the Audit and Risk Committee provide that the committee shall be responsible, amongst other things, for reviewing the Interim and Annual Financial Statements, considering the appointment and independence of the External Auditor, discussing with the External Auditor the scope of the audit and reviewing the Company's compliance with the AIC Code.

Further details on the Audit and Risk Committee can be found in the Audit and Risk Committee Report.

Remuneration and Nomination Committee

The Remuneration and Nomination Committee has been established consisting of all Directors. On 1 April 2025, Sharon Parr relinquished the position of Chair of this committee and Richard Class was appointed as her successor.

The Committee met twice during the year on 8 April 2025 and 3 September 2025. The Board discussed diversity of the Board and it was noted that the current split of the board, comprising 50% men and 50% women, remained within the gender diversity guidelines. Whilst the Board has not met the target to have one director from a minority ethnic background, it considers this satisfactory due to the cognitive diversity of the members of the Board and the difference in social, educational and work experience backgrounds of its constituent members.

The Committee also presented an analysis of the Directors' fees against relevant industry comparatives. Following a review of the current market standard, the Committee decided to award fee increases effective 1 April 2025. Further details are set out in Directors' Remuneration Report.

International Tax Reporting

For purposes of the US Foreign Account Tax Compliance Act, the Company registered with the US Internal Revenue Service ("IRS") as a Guernsey reporting Foreign Financial Institution ("FFI"), received a Global Intermediary Identification Number (E5XSVA.99999.SL.831), and can be found on the IRS FFI list.

The Common Reporting Standard ("CRS") is a global standard for the automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development ("OECD"), which has been adopted in Guernsey.

The Board ensures that the Company is compliant with Guernsey regulations and guidance in this regard. The activities of the Company do not constitute relevant activities as defined by the Income Tax (Substance Requirements) (Implementation) Regulations, 2018 (as amended) and as such, the Company was out of scope.

Strategy

The strategy for the Company is to capture the illiquidity premium that is associated with 'off the run' bond issues. By remaining highly selective and without conceding any underlying credit quality, the strategy targets a monthly distribution of 0.5p per Ordinary Share, with all excess income, as discussed in the Results section of the Directors' Report, being distributed to investors at the year end of the Company.

Internal Controls

The Board is ultimately responsible for establishing and maintaining the Company's system of internal financial and operating control and for maintaining and reviewing its effectiveness. The Company's risk matrix continues to be the core element of the Company's risk management process in establishing the Company's system of internal financial and reporting control. The risk matrix is prepared and maintained by the Board which initially identifies the risks facing the Company and then collectively assesses the likelihood of each risk, the impact of those risks and the strength of the controls operating over each risk. The system of internal financial and operating control is designed to manage rather than to eliminate the risk of failure to achieve business objectives and by their nature can only provide reasonable and not absolute assurance against misstatement and loss.

These controls aim to ensure that assets of the Company are safeguarded, proper accounting records are maintained and the financial information for publication is reliable. The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company.

This process has been in place for the year under review and up to the date of approval of this Annual Report and Audited Financial Statements and is reviewed by the Board and is in accordance with the AIC Code.

The AIC Code requires Directors to conduct, at least annually, a review of the Company's system of internal financial and operating control, covering all controls, including financial, operational, compliance and risk management. The Board has evaluated the systems of internal controls of the Company. In particular, it has prepared a process for identifying and evaluating the significant risks affecting the Company and the policies by which these risks are managed. The Board also considers whether the appointment of an internal auditor is required and has determined that there is no requirement for a direct internal audit function.

The Board has delegated the day-to-day responsibilities for the management of the Company's investment portfolio, the provision of custodial and depositary services and administration, accounting, registrar and company secretarial functions including the independent calculation of the Company's NAV and the production of the Annual Report and Financial Statements which are independently audited.

Formal contractual agreements have been put in place between the Company and providers of these services. Even though the Board has delegated responsibility for these functions, it retains accountability for these functions and is responsible for the systems of internal control. At each quarterly Board meeting, compliance reports are provided by the Administrator, Company Secretary, Portfolio Manager, AIFM and Depositary. The Board also receives confirmation from the Administrator of its accreditation under its Service Organisation Controls 1 report. The Portfolio Manager also has an International Standard on Assurance Engagements No. 3402 report that is being considered by the Board.

Significant Shareholdings

Shareholders with holdings of more than 5.0% of the Ordinary Shares of the Company at 12 November 2025 were as follows:

	Number of shares		Percentage of issued share capital
Hargreaves Lansdown (Nominees) Limited <15942>	25,892,379		8.04%
Lawshare Nominees Limited	22,727,640		7.06%
Hargreaves Lansdown (Nominees) Limited	21,228,830		6.60%
Interactive Investor Services Nominees Limited	21,011,642		6.53%
Huntress (CI) Nominees Limited	20,311,225		6.31%

Shareholders are responsible for notifying the Company of any change to their shareholdings on the basis of thresholds 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75% of the issued share capital as required by DTR 5.1.2R. The Company has not been notified of any single shareholder with shareholdings reaching any of these thresholds.

Independent Auditor

A resolution for the reappointment of PricewaterhouseCoopers CI LLP was proposed and approved at the AGM on 14 August 2025.

Signed on behalf of the Board of Directors on 10 December 2025 by:

Ashley PaxtonSharon Parr

ChairSenior Independent Director

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the Audited Financial Statements in accordance with applicable Guernsey law and regulations.

The Companies (Guernsey) Law, 2008 requires the Directors to prepare financial statements for each financial year. Under that law, they have elected to prepare the Financial Statements in accordance with IFRS Accounting Standards and applicable law.

The Financial Statements are required by law to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that year.

In preparing these Financial Statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; and
• prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors confirm that they have complied with these requirements in preparing the Financial Statements.

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the Financial Statements have been properly prepared in accordance with The Companies (Guernsey) Law, 2008. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

So far as the Directors are aware, there is no relevant audit information of which the Company's Auditor is unaware, and each Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.

The Directors are responsible for the oversight of the maintenance and integrity of the corporate and financial information in relation to the Company website; the work carried out by the Auditor does not involve consideration of these matters and, accordingly, the Auditor accepts no responsibility for any changes that may have occurred to the Financial Statements since they were initially presented on the website.

Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm that to the best of their knowledge:

(a) The Financial Statements have been prepared in accordance with IFRS Accounting Standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company as at and for the year ended 30 September 2025.

(b) The Annual Report includes information detailed in the Chair's Statement, Portfolio Manager's Report, Strategic Report, Directors' Report, Statement of Directors' Responsibilities, Directors' Remuneration Report, Audit and Risk Committee Report, Alternative Investment Fund Manager's Report and Depositary Statement provides a fair review of the information required by:

(i) DTR 4.1.8 and DTR 4.1.9 of the Disclosure and Transparency Rules, being a fair review of the Company business and a description of the principal risks and uncertainties facing the Company; and

(ii) DTR 4.1.11 of the Disclosure and Transparency Rules, being an indication of important events that have occurred since the end of the financial year and the likely future development of the Company.

In the opinion of the Board, the Financial Statements taken as a whole, are fair, balanced and understandable and provide the information necessary to assess the Company's position and performance, business model and strategy.

By order of the Board,

Ashley PaxtonSharon Parr

ChairSenior Independent Director

10 December 2025

DIRECTORS' REMUNERATION REPORT

The Directors' Remuneration Report has been prepared in accordance with the AIC Code.

Remuneration Policy

The Company's policy in relation to Directors' remuneration is to ensure that the Company maintains a competitive fee structure to recruit, retain and motivate non-executive Directors of excellent quality in the overall interests of Shareholders.

It is the responsibility of the Remuneration and Nomination Committee to determine and approve the Directors' remuneration, who will have given the matter proper consideration, having regard to the level of fees payable to non-executive Directors in the industry generally, the role that individual Directors fulfil in respect of Board and Committee responsibilities and the time committed to the Company's affairs. The Chair's remuneration is decided separately and is approved by the Board as a whole.

No element of the Directors' remuneration is performance related, nor does any Director have any entitlement to pensions, share options or any long-term incentive plans from the Company.

Remuneration

The Directors of the Company are remunerated for their services at such a rate as the Directors determine, provided that the aggregate amount of such fees does not exceed £250,000 per annum.

Directors are remunerated in the form of fees, payable quarterly in arrears, to the Director personally. No Directors have been paid additional remuneration by the Company outside their normal Directors' fees and expenses.

With respect to the years ended 30 September 2025 and 30 September 2024, the Directors received the following remuneration in the form of Directors' fees:

			2025	2024
			£	£
Ashley Paxton			49,000	45,000
Sharon Parr			43,000	40,000
Wendy Dorey			38,500	37,000
Richard Class (appointed 1 November 2023)			37,500	32,099
Total			168,000	154,099

Following a review of external market data, the Committee recommended the following Directors' fee per annum increases with effect from 1 April 2025:

Ashley Paxton as Chair of the Board	Increase to £53,000
Sharon Parr as Chair of the Audit and Risk Committee and Senior Independent Director	Increase to £46,000
Wendy Dorey as Chair of the Management Engagement Committee	Increase to £40,000
Richard Class as Chair of the Remuneration and Nomination Committee	Increase to £40,000

The base director fee level was also increased from £35,000 to £37,000 per annum.

Appropriate Directors' and Officers' liability insurance cover is maintained by the Company on behalf of the Directors.

The Directors were appointed as non-executive Directors by letters issued on the respective dates of appointment. Each Director's appointment letter provides that, upon the termination of their appointment, that they must resign in writing and all records remain the property of the Company. The Directors' appointments can be terminated in accordance with the Articles and without compensation.

There is no notice period specified in the Articles for the removal of Directors. The Articles provide that the office of Director shall be terminated by, among other things: (a) written resignation; (b) unauthorised absences from board meetings for six months or more; (c) unanimous written request of the other Directors; and (d) an ordinary resolution of the Company.

Under the terms of their appointment, each Director is required to retire by rotation and be subject to re-election at least every three years but have opted for annual re-election. The Directors are required to seek re-election if they have already served for more than nine years. At the 14 August 2025 AGM, all Directors were re-elected to the Board. The Company may terminate the appointment of a Director immediately on serving written notice and no compensation is payable upon termination of office as a director of the Company becoming effective.

The amounts payable to Directors shown in note 14 to the Financial Statements are for services as non-executive Directors.

No Director has a service contract with the Company, nor are any such contracts proposed.

Signed on behalf of the Board of Directors on 10 December 2025 by:

Richard Class

Chair, Remuneration and Nomination Committee

AUDIT AND RISK COMMITTEE REPORT

We present the Audit and Risk Committee's ("ARC") Report, setting out the responsibilities of the ARC and its key activities for the year ended 30 September 2025.

The ARC has reviewed the appropriateness of the Company's system of risk management and internal financial and operating controls, the robustness and integrity of the Company's financial reporting, along with the external audit process. The ARC has devoted time to ensuring that controls and processes have been properly established, documented and implemented. The Company's risk exposure and the effectiveness of its risk management and internal control systems are contained within the Company's risk matrix, and the risk matrix was regularly reviewed by the ARC during the year and subsequently by the Board.

During the year, the information that the ARC received has been timely and clear and has enabled the Committee to discharge its duties effectively.

Role and Responsibilities

The primary function of the ARC is to assist the Board in fulfilling its oversight responsibilities. This includes reviewing the financial reports and other financial information and any significant financial judgement contained therein, before publication.

In addition, on a continuing basis, the ARC reviews the systems of internal financial and operating controls which the Administrator, Portfolio Manager, AIFM, Custodian, Depositary and the Board have established with respect to finance, accounting, risk management, compliance, fraud and audit. The ARC also reviews the accounting and financial reporting processes, along with reviewing the roles, independence and effectiveness of the External Auditor, PricewaterhouseCoopers CI LLP ("PwC").

The ultimate responsibility for reviewing and approving the Annual and Interim Financial Statements remains with the Board.

The ARC's full terms of reference can be obtained by contacting the Company's Administrator.

Risk Management and Internal Control

The Board considers the nature and extent of the Company's risk management framework and the risk profile that is acceptable in order to achieve the Company's strategic objectives. As a result, it is considered that the Board has fulfilled its obligations under the AIC Code.

The ARC continues to be responsible for reviewing the adequacy and effectiveness of the Company's on-going risk management systems and processes. Its system of internal controls, along with its design and operating effectiveness, is subject to review by the ARC through reports received from the Portfolio Manager, AIFM and Custodian and Depositary, along with those from the Administrator and External Auditor.

Fraud, Bribery and Corruption

The Board has relied on the overarching requirement placed on the Service Providers under the relevant agreements to comply with applicable law, including anti-bribery laws. A review of the Service Provider policies took place at the Management Engagement Committee Meeting on 12 March 2025. The Board receives confirmation from all Service Providers that they have not been involved in any fraud, bribery or corruption.

Financial Reporting and Significant Financial Issues

The ARC assesses whether suitable accounting policies have been adopted and whether the Portfolio Manager has made appropriate estimates and judgements. The ARC reviews accounting papers prepared by the Portfolio Manager and Administrator which provide details on the main financial reporting judgements.

The ARC also reviews reports by the External Auditors which highlight any issues with respect to the work undertaken on the audit.

The significant areas considered during the year by the ARC in relation to the Financial Statements and how they were addressed are detailed below:

(i) Valuation of investments:

The Company's investments had a fair value of £266,874,240 as at 30 September 2025 (30 September 2024: £205,443,235) and represent s the key constituent of net assets of the Company. These investments are valued in accordance with the Accounting Policies set out in notes 2 and 3 to the Financial Statements. The ARC considered the valuation of the investments held by the Company as at 30 September 2025 to be reasonable based on information provided by the Portfolio Manager, AIFM, Administrator, Custodian and Depositary on their processes for the valuation of these investments. In order to obtain more accurate pricing information, a range of pricing sources, including model-based valuations for a small minority of positions, has been used.

(ii) Income recognition:

The ARC considered the calculation of income from investments recorded in the Financial Statements for the year ended 30 September 2025. As disclosed in note 3(ii)(b) of the Notes to the Financial Statements, the estimated life of credit securities is determined by the Portfolio Manager and can impact the effective interest rate of the credit securities which in turn could impact the calculation of income from investments. The Board reviews relevant information supplied by the Portfolio Manager, on an ongoing basis, which presents the expected life of the Company's investments and have found them to be reasonable based on the explanations provided and information obtained from the Portfolio Manager. The External Auditor also reviews the processes and methodology supporting this information. The ARC was satisfied that income was appropriately stated in all material aspects in the Financial Statements.

Following a review of the presentations and reports from the Portfolio Manager and Administrator and consulting where necessary with the External Auditor, the ARC is satisfied that the Financial Statements appropriately address, both in respect to the amounts reported and the disclosures, the critical judgements and key estimates. The ARC is also satisfied that the significant assumptions used for determining the value of assets and liabilities have been appropriately reviewed, challenged and are sufficiently robust.

To understand and monitor the Company stakeholder universe, the ARC maintains a stakeholder matrix. This aims to identify stakeholder interests and monitor how these evolve and potentially impact the Company today and in the future. The matrix is reviewed at least annually.

The Company's reporting currency is Pound sterling even though a significant proportion of the investments owned are denominated in other currencies. The Company operates a hedging strategy designed to mitigate the impact of foreign currency rate changes on the performance of the Company. The ARC has used information from the Administrator and Portfolio Manager to satisfy itself concerning the effectiveness of the hedging process, as well as to confirm that realised and unrealised foreign currency gains and losses have been correctly recorded , and to reaffirm that the use of sterling as the Company's functional currency remains appropriate.

At the ARC meeting to review the Annual Report and Audited Financial Statements, the ARC received a report and presentation from its External Auditor on the key findings from its audit, and the ARC is consequently satisfied that the External Auditor has fulfilled its responsibilities with diligence and professional scepticism. The ARC advised the Board that these Annual Financial Statements, taken as a whole, are fair, balanced and understandable.

The ARC is satisfied that the judgements made by the Portfolio Manager and Administrator are reasonable, and that appropriate disclosures have been included in the Financial Statements.

External Auditor

The ARC has responsibility for making a recommendation on the appointment, re-appointment and removal of the External Auditor.

During the year, the ARC received and reviewed audit plans and reports from the External Auditor. As standard practice, the External Auditor meets privately with the ARC without the Portfolio Manager and other Service Providers being present.

To assess the effectiveness of the external audit process, the Auditor was asked to articulate the steps that they have taken to ensure objectivity and independence, including where the Auditor provides non-audit services. The ARC monitors the Auditor's performance, behaviour and effectiveness during the exercise of their duties, which informs the decision to recommend reappointment on an annual basis. Other than the interim review for the period ended 31 March 2025, no non-audit services have been performed for the Company by the Auditor.

The Company is considered to be a market traded company based on the Institute of Chartered Accountants in England and Wales Crown Dependencies' Audit Rules and Guidance. As such, the Auditor is required to apply the FRC Ethical Standards of 2019.

The FRC Ethical Standards require that the audit engagement leaders on listed entities are rotated at least every 5 years. Adrian Peacegood is currently in his third year as the Company's audit engagement leader and may serve for a maximum of five years.

During the year, the FRC conducted a review of the audit performed by PwC of the Company's financial statements for the year ended 30 September 2024. The ARC is pleased to note that no matters were identified by the FRC that were considered to be of sufficient significance to be included in their report.

The following table summarises the remuneration paid to PwC and to other PwC member firms for audit and non-audit services in respect of the year ended 30 September 2025 and for the year ended 30 September 2024.

						Year ended 30.09.25		Year ended 30.09.24
PricewaterhouseCoopers CI LLP - Assurance work							£		£
- Annual audit of the Company							145,120		144,876
- Interim review (audit related non-audit services)							26,950		27,467
PricewaterhouseCoopers CI LLP - Non assurance work							nil		nil
- Ratio of assurance to non-assurance work							100% / nil		100% / nil

For any questions on the activities of the ARC not addressed in the foregoing, a member of the ARC remains available to attend each AGM to respond to such questions.

The ARC Report was approved by the ARC and signed on its behalf by:

Sharon Parr

Chair, Audit and Risk Committee

10 December 2025

ALTERNATIVE INVESTMENT FUND MANAGER'S REPORT

Waystone Management Company (IE) Limited acts as the Alternative Investment Fund Manager ("AIFM") of TwentyFour Select Monthly Income Fund Limited ("the Company") providing portfolio management and risk management services to the Company. This report covers the period from 1 October 2024 to 30 September 2025.

The AIFM has delegated the following of its alternative investment fund management functions:

• It has delegated the portfolio management function for listed and unlisted investments to TwentyFour Asset Management LLP.

The AIFM is required by the Alternative Investment Fund Managers Directive 2011, 61/EU (the "AIFM Directive") and all applicable rules and regulations implementing the AIFM Directive in Ireland (the "AIFM Rules"):

• to make the annual report available to investors and to ensure that the annual report is prepared in accordance with applicable accounting standards, the Company's articles of incorporation and the AIFM Rules and that the annual report is audited in accordance with International Standards on Auditing;
• be responsible for the proper valuation of the Company's assets, the calculation of the Company's net asset value and the publication of the Company's net asset value;
• to make available to the Company's Shareholders, a description of all fees, charges and expenses and the amounts thereof, which have been directly or indirectly borne by them; and
• ensure that the Company's Shareholders have the ability to redeem their share in the capital of the Company in a manner consistent with the principle of fair treatment of investors under the AIFM Rules and in accordance with the Company's redemption policy and its obligations.

The AIFM is required to ensure that the annual report contains a report that shall include a fair and balanced review of the activities and performance of the Company, containing also a description of the principal risks and investment or economic uncertainties that the Company might face.

AIFM Remuneration

The AIFM has designed and implemented a remuneration policy (the "Policy") in line with the provisions of S.I. 257 of 2013 European Union (Alternative Investment Fund Managers) Regulations 2013 (the "AIFM Regulations"), S.I. 352 of 2011 European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (the "UCITS Regulations") and of the ESMA Guidelines on sound remuneration policies under the UCITS Directive and AIFMD (the "ESMA Guidelines"). The Policy is designed to ensure that the remuneration of key decision makers is aligned with the management of short and long-term risks, including the oversight and where appropriate the management of sustainability risks in line with the Sustainable Finance Disclosure Regulations.

The AIFM's remuneration policy applies to its identified staff whose professional activities might have a material impact on the Company's risk profile and so covers senior management, risk takers, control functions and any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers and whose professional activities have a material impact on the risk profile of the Company. The AIFM's policy is to pay identified staff a fixed component with the potential for identified staff to receive a variable component. It is intended that the fixed component will represent a sufficiently high proportion of the total remuneration of the individual to allow the AIFM to operate a fully flexible policy, with the possibility of not paying any variable component. When the AIFM pays a variable component as performance related pay certain criteria, as set out in the AIFM's remuneration policy, must be adhered to. The various remuneration components are combined to ensure an appropriate and balanced remuneration package that reflects the relevant staff rank and professional activity as well as best market practice. The AIFM's remuneration policy is consistent with, and promotes, sound and effective risk management and does not encourage risk-taking which is inconsistent with the risk profile of the funds it manages.

These disclosures are made in respect of the remuneration policies of the AIFM. The disclosures are made in accordance with the ESMA Guidelines.

Total remuneration (in EUR) paid to the identified staff of the AIFM fully or partly involved in the activities of the Company that have a material impact on the Company's risk profile during the financial year to 31 December 2024 (the AIFM's financial year):

Fixed remuneration			EUR	GBP
Senior Management			3,377,918	2,859,811
Other identified staff			-	-
Variable remuneration
Senior Management			732,296	619,976
Other identified staff			-	-
Total remuneration paid			4,110,214	3,479,787

Number of identified staff - 20

Neither the AIFM nor the Company pays any fixed or variable remuneration to identified staff of the Portfolio Manager.

There have been no material changes made to the Remuneration Policy or the AIFM's remuneration practices and procedures during the financial year.

In so far the AIFM is aware:

• there is no relevant audit information of which the auditor of the Company or the board of directors of the Company are unaware; and
• The AIFM has taken all steps that it ought to have taken to make itself aware of any relevant audit information and to establish that the auditor is aware of that information.

We hereby certify that this report is made on behalf of the AIFM, Waystone Management Company (IE) Limited.

Peadar De Barra

Waystone Management Company (IE) Limited

10 December 2025

DEPOSITARY STATEMENT

For the year ended 30 September 2025

Report of the Depositary to the Shareholders

Northern Trust (Guernsey) Limited has been appointed as Depositary to TwentyFour Select Monthly Income Fund Limited (the "Company") in accordance with the requirements of Article 36 and Articles 21(7), (8) and (9) of the Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (the "AIFM Directive").

We have enquired into the conduct of Waystone Management Company (IE) Limited (the "AIFM") and the Company for the year ended 30 September 2025, in our capacity as Depositary to the Company.

This report including the review provided below has been prepared for and solely for the Shareholders of the Company. We do not, in giving this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown.

Our obligations as Depositary are stipulated in the relevant provisions of the AIFM Directive and the relevant sections of Commission Delegated Regulation (EU) No 231/2013 (collectively the "AIFMD legislation") and The Authorised Closed-Ended Investment Scheme Rules and Guidance, 2021.

Amongst these obligations is the requirement to enquire into the conduct of the AIFM and the Company and their delegates in each annual accounting period.

Our report shall state whether, in our view, the Company has been managed in that period in accordance with the AIFMD legislation. It is the overall responsibility of the AIFM and the Company to comply with these provisions. If the AIFM, the Company or their delegates have not so complied, we as the Depositary will state why this is the case and outline the steps which we have taken to rectify the situation.

The Depositary and its affiliates are or may be involved in other financial and professional activities which may on occasion cause a conflict of interest with its roles with respect to the Company. The Depositary will take reasonable care to ensure that the performance of its duties will not be impaired by any such involvement and that any conflicts which may arise will be resolved fairly and any transactions between the Depositary and its affiliates and the Company shall be carried out as if effected on normal commercial terms negotiated at arm's length and in the best interests of Shareholders.

Basis of Depositary Review

The Depositary conducts such reviews as it, in its reasonable discretion, considers necessary in order to comply with its obligations and to ensure that, in all material respects, the Company has been managed (i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulations and (ii) otherwise in accordance with the constitutional documentation and the appropriate regulations. Such reviews vary based on the type of fund, the assets in which a fund invests and the processes used, or experts required, in order to value such assets.

Review

In our view, the Company has been managed during the year, in all material respects:

(i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the constitutional document; and by the AIFMD legislation; and

(ii) otherwise in accordance with the provisions of the constitutional document; and the AIFMD legislation.

For and on behalf of

Northern Trust (Guernsey) Limited

10 December 2025

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF TWENTYFOUR SELECT MONTHLY INCOME FUND LIMITED

Report on the audit of the financial statements

Our opinion

In our opinion, the financial statements give a true and fair view of the financial position of TwentyFour Select Monthly Income Fund Limited (the "company") as at 30 September 2025, and of its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and have been properly prepared in accordance with the requirements of The Companies (Guernsey) Law, 2008.

What we have audited

The company's financial statements comprise:

· the statement of financial position as at 30 September 2025;

· the statement of comprehensive income for the year then ended;

· the statement of changes in equity for the year then ended;

· the statement of cash flows for the year then ended; and

· the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statementssection of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements of the company, as required by the Crown Dependencies' Audit Rules and Guidance. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Our audit approach

Overview

Audit scope

· The company is incorporated and based in Guernsey.

· We conducted our audit of the financial statements based upon the financial records maintained by Northern Trust International Fund Administration Services (Guernsey) Limited (the "Administrator") to whom the Board of directors (the "Board") has delegated the administration functions of the company. The Board engages TwentyFour Asset Management LLP (the "Portfolio Manager") to manage the company's investment portfolio. We have interacted with both the Administrator and the Portfolio Manager during our audit.

· We conducted all our audit work in Guernsey.

· We tailored the scope of our audit taking into account the types of investments within the company, the accounting processes and controls, and the industry in which the company operates.

Key audit matters

· Valuation of investments

Materiality

· Overall materiality: £5.45 million (2024: £4.40 million) based on 2% of total net assets.

· Performance materiality: £4.09 million (2024: £3.30 million).

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Key audit matters

Key audit matters are those matters that, in the auditor's professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditor, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

This is not a complete list of all risks identified by our audit.

Key audit matter	How our audit addressed the key audit matter
Valuation of Investments
Investments are designated as financial assets at fair value through profit or loss on the statement of financial position with a fair value of £266.9 million as at 30 September 2025 which represent a significant balance on the statement of financial position. The company's investment policy is to invest in a diversified portfolio of credit securities that are measured at fair value in accordance with the policies set out in note 2(e) to the financial statements. The fair value of investments and movement therein are further disclosed in notes 9 and 17 respectively to the financial statements. To determine the fair value of these investments, the Administrator and the Portfolio Manager obtains prices from independent pricing service providers, third party brokers or dealers for the relevant investments which may be indicative rather than tradable. If these are unavailable, the Portfolio Manager will determine the valuation based on either a comparable arm's length transaction, referenced to other securities that are substantially the same, discounted cash flow analysis or other valuation techniques commonly used by market participants. The Portfolio Manager has also engaged an independent valuation expert to provide the valuation of investments classified as level 3, these amounted to £6.12 million as at 30 September 2025. Investment valuations are subject to estimates and assumptions underlying each security as detailed under note 3(ii) to the financial statements. Owing to the significance of the carrying value of investments to the financial statements, the level of subjectivity that could be applied in measuring their fair value, the risk of manipulation or error could be material and as a result we have designated the valuation of investments as a key audit matter.	• We obtained an understanding of the internal control environments at both the Administrator and the Portfolio Manager and evaluated the Administrator's controls over the valuation of investments. • We assessed compliance of the accounting policy for investment valuation with IFRS Accounting Standards. • We sought to independently reprice the company's investment portfolio. Prices were obtained from a range of independent sources, including exchange traded and consensus prices: ? Where we were unable to obtain independent prices, or individual investment prices obtained exceeded our initial tolerable variance threshold, supporting evidence for these prices was obtained from the Administrator and/or the Portfolio Manager, as applicable. ? We also assessed the independence, reputation, and reliability of the evidence obtained and evaluated all variances exceeding our tolerable thresholds. • To assess the reasonableness of the pricing sources, for a sample of investment disposals, we compared the disposal price to the most recently recorded valuation prior to the disposal. • Where the Portfolio Manager has engaged an independent valuation expert to value level 3 investments, we: ? Understood the valuation methodology and assessed its appropriateness, being discounted cash flow modelling. ? Obtained the models directly from the management's independent valuation expert; ? Selected a sample, understood how the inputs were derived and agreed the valuation inputs, such as collateral loan amounts, interest rates and maturity dates to the underlying source data; ? Assessed the reasonableness of the assumptions used in the management's independent valuation expert's model for a select sample. This included benchmarking the assumptions to work performed by our auditor's valuation experts in the prior year and conducting our independent research in the current year; and ? Assessed the independence, reputation, competence and objectivity of the management's independent valuation expert and reliability of their work through reviewing their terms of engagement, industry research and our prior experience with the management's expert. Based on our work performed, we did not identify any material matters to report to those charged with governance.

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the company, the accounting processes and controls, the industry in which the company operates, and we considered the risk of climate change and the potential impact thereof on our audit approach.

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Overall materiality	£5.45 million (2024: £4.40 million).
How we determined it	2% of total net assets.
Rationale for benchmark applied	We believe that total net assets is the most appropriate benchmark because this is the key metric of interest to investors. It is also a generally accepted measure used for companies in this industry.

We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £4.09 million (2024: £3.30 million) for the company financial statements.

In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £272,700 (2024: £219,700) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Reporting on other information

The other information comprises all the information included in the Annual Report and Audited Financial Statements (the "Annual Report") but does not include the financial statements and our auditor's report thereon. The directors are responsible for the other information.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRS Accounting Standards, the requirements of Guernsey law and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so .

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

· Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern over a period of at least twelve months from the date of approval of the financial statements. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Use of this report

This report, including the opinions, has been prepared for and only for the members as a body in accordance with Section 262 of The Companies (Guernsey) Law, 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Report on other legal and regulatory requirements

Company Law exception reporting

Under The Companies (Guernsey) Law, 2008 we are required to report to you if, in our opinion:

· we have not received all the information and explanations we require for our audit;

· proper accounting records have not been kept; or

· the financial statements are not in agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

Corporate governance statement

The Listing Rules require us to review the directors' statements in relation to going concern, longer-term viability and that part of the corporate governance statement relating to the company's compliance with the provisions of the UK Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate governance statement as other information are described in the Reporting on other information section of this report.

The company has reported compliance against the 2019 AIC Code of Corporate Governance (the "Code") which has been endorsed by the UK Financial Reporting Council as being consistent with the UK Corporate Governance Code for the purposes of meeting the company's obligations, as an investment company, under the Listing Rules of the FCA.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement, included within the Strategic Report and Directors' Report is materially consistent with the financial statements and our knowledge obtained during the audit, and we have nothing material to add or draw attention to in relation to:

• The directors' confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an explanation of how these are being managed or mitigated;
• The directors' statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting in preparing them, and their identification of any material uncertainties to the company's ability to continue to do so over a period of at least twelve months from the date of approval of the financial statements;
• The directors' explanation as to their assessment of the company's prospects, the period this assessment covers and why the period is appropriate; and
• The directors' statement as to whether they have a reasonable expectation that the company will be able to continue in operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions.

Our review of the directors' statement regarding the longer-term viability of the company was substantially less in scope than an audit and only consisted of making inquiries and considering the directors' process supporting their statements; checking that the statements are in alignment with the relevant provisions of the Code; and considering whether the statement is consistent with the financial statements and our knowledge and understanding of the company and its environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained during the audit:

• The directors' statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the information necessary for the members to assess the company's position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.

We have nothing to report in respect of our responsibility to report when the directors' statement relating to the company's compliance with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors.

Adrian Peacegood

For and on behalf of PricewaterhouseCoopers CI LLP

Chartered Accountants and Recognised Auditor

Guernsey, Channel Islands

10 December 2025

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 September 2025

							Year ended 30.09.25		Year ended 30.09.24
Income				Notes			£		£
Interest income on financial assets							19,857,612		18,611,253
Net foreign currency (losses)/gains				8			(4,153,244)		7,544,367
Net gains on financial assets at fair value through profit or loss				9			14,434,639		15,802,148
Net losses on swaps							(132,924)		-
Total income							30,006,083		41,957,768
Expenses
Portfolio management fees				14			(1,789,417)		(1,466,346)
Directors' fees				14			(168,000)		(154,099)
Administration fees				15			(141,843)		(133,678)
AIFM management fees				15			(71,561)		(80,933)
Audit fees							(145,120)		(144,876)
Custody fees				15			(23,897)		(19,777)
Broker fees				15			(52,930)		(50,620)
Depositary fees				15			(36,266)		(32,080)
Legal and other professional fees							(33,618)		(93,018)
Listing fees							(98,738)		(98,520)
Other expenses							(148,657)		(183,912)
Total expenses							(2,710,047)		(2,457,859)
Total comprehensive income for the year*							27,296,036		39,499,909
Earnings per Ordinary Share -
Basic & Diluted				4			0.097		0.160

All items in the above statement derive from continuing operations.

The accompanying notes are an integral part of these Financial Statements.

*There was no other comprehensive income during the year.

STATEMENT OF FINANCIAL POSITION

As at 30 September 2025

		30.09.25		30.09.24
Assets	Notes	£		£
Current assets
Financial assets at fair value through profit or loss
- Investments	9	266,874,240		205,443,235
- Derivative assets: Forward currency contracts	16	63,189		1,215,217
Shares issued receivable		438,350		850,800
Amounts due from brokers		696,436		10,000,913
Other receivables	10	4,127,642		3,659,262
Cash and cash equivalents		6,268,742		7,589,458
Total current assets		278,468,599		228,758,885
Liabilities
Current liabilities
Amounts due to brokers		5,417,873		6,997,137
Other payables	11	329,504		1,994,378
Financial liabilities at fair value through profit or loss
- Derivative liabilities: Forward currency contracts	16	3,029		-
Total current liabilities		5,750,406		8,991,515
Total net assets		272,718,193		219,767,370
Equity
Share capital account	12	283,400,353		237,596,788
Retained earnings		(10,682,160)		(17,829,418)
Total equity		272,718,193		219,767,370
Ordinary Shares in issue (excluding Treasury Shares)	12	316,889,197		262,574,331
Net Asset Value per Ordinary Share (pence)	6	86.06		83.70

The Financial Statements were approved by the Board of Directors on 10 December 2025 and signed on its behalf by:

Ashley PaxtonSharon Parr

ChairSenior Independent Director

The accompanying notes are an integral part of these Financial Statements .

STATEMENT OF CHANGES IN EQUITY

For the year ended 30 September 2025

		Share capital		Retained
		account		earnings		Total
	Note	£		£		£
Balance at 1 October 2024		237,596,788		(17,829,418)		219,767,370
Issue of Ordinary Shares		46,915,800		-		46,915,800
Share issue costs		(552,749)		-		(552,749)
Income equalisation on new issues	5	(559,486)		559,486		-
Dividends paid		-		(20,708,264)		(20,708,264)
Total comprehensive income for the year		-		27,296,036		27,296,036
Balance at 30 September 2025		283,400,353		(10,682,160)		272,718,193

		Share capital		Retained
		account		earnings		Total
	Note	£		£		£
Balance at 1 October 2023		219,836,492		(38,147,452)		181,689,040
Reissue of Treasury Shares		3,183,534		-		3,183,534
Issue of shares		15,325,836		-		15,325,836
Share issue costs		(212,529)		-		(212,529)
Repurchased tendered shares in treasury		(369,501)		-		(369,501)
Income equalisation on new issues	5	(167,044)		167,044		-
Dividends paid		-		(19,348,919)		(19,348,919)
Total comprehensive income for the year		-		39,499,909		39,499,909
Balance at 30 September 2024		237,596,788		(17,829,418)		219,767,370

The accompanying notes are an integral part of these Financial Statements.

STATEMENT OFCASH FLOWS

For the year ended 30 September 2025

		Year ended 30.09.25		Year ended 30.09.24
	Notes	£		£
Cash flows from operating activities
Total comprehensive income for the year		27,296,036		39,499,909
Adjustments for:
Net gains on financial assets at fair value through profit or loss	9	(14,434,639)		(15,802,148)
Net losses on swaps		132,924		-
Amortisation adjustment under effective interest rate method	9	(1,998,693)		(1,866,563)
Movement in net unrealised losses/(gains) on forward currency contracts	8	1,155,057		(3,025,945)
Exchange gain on cash and cash equivalents		(3,866)		(9,286)
(Increase)/decrease in other receivables	10	(468,380)		111,340
(Decrease)/increase in other payables	11	(362,002)		232,876
Purchase of investments		(130,310,690)		(85,627,293)
Sale of investments		92,905,306		70,938,820
Net cash (used in)/generated from operating activities		(26,088,947)		4,451,710
Cash flows from financing activities
Proceeds from issue of Ordinary Shares	12	47,328,250		14,475,036
Payment for purchase of own shares into treasury	12	-		(369,501)
Proceeds from re-issuance of Treasury Shares	12	-		3,183,534
Share issue costs	12	(552,749)		(212,529)
Dividends paid		(22,011,136)		(19,250,169)
Net cash generated from/(used in) financing activities		24,764,365		(2,173,629)
(Decrease)/increase in cash and cash equivalents		(1,324,582)		2,278,081
Cash and cash equivalents at beginning of the year		7,589,458		5,302,091
Exchange gain on cash and cash equivalents		3,866		9,286
Cash and cash equivalents at end of the year		6,268,742		7,589,458

The accompanying notes are an integral part of these Financial Statements.

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 September 2025

1.General information

TwentyFour Select Monthly Income Fund Limited (the "Company") was incorporated with limited liability in Guernsey, as a closed-ended investment company on 12 February 2014. The Company's Shares were listed on the Official List of the Financial Conduct Authority ("FCA") and admitted to trading on the Main Market of the London Stock Exchange ("LSE") on 10 March 2014.

The investment objective and policy is set out in the Summary Information.

The Portfolio Manager of the Company is TwentyFour Asset Management LLP (the "Portfolio Manager").

2.Material accounting policies

a) Basis of preparation and statement of compliance

The Financial Statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and are in compliance with The Companies (Guernsey) Law, 2008.

b) Presentation of information

The Financial Statements have been prepared on a going concern basis under the historical cost convention adjusted to take account of the revaluation of the Company's financial assets and liabilities at fair value through profit or loss. Additional commentary on going concern is in the Directors' Report.

c) Standards, amendments and interpretations effective during the year

The following standards, interpretations and amendments were adopted for the year ended 30 September 2025:

? Non-current Liabilities with Covenants and Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) (applicable to accounting periods beginning on or after 1 January 2024);

? Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) (applicable to accounting periods beginning on or after 1 January 2024); and

? Lease Liability in a Sale or Leaseback (Amendments to IFRS 16) (applicable to accounting periods beginning on or after 1 January 2024).

The adoption of the above standards did not have a material impact on the financial statements of the Company. There are no other standards, amendments and interpretations effective during the year that are deemed material to the Company.

d) Standards, amendments and interpretations issued but not yet effective

At the reporting date of these financial statements, the following standards, interpretations and amendments, which have not been applied to these financial statements, were in issue but not yet effective:

? Lack of Exchangeability (Amendments to IAS 21) (applicable to accounting periods beginning on or after 1 January 2025);

? Classification and Measurement of Financial Instruments (Amendments to IFRS 7 and IFRS 9) (applicable to periods beginning on or after 1 January 2026); and

? Presentation and Disclosures in Financial Statements (IFRS 18) (applicable to accounting periods beginning on or after 1 January 2027).

The Board is in the process of assessing the impact of the new accounting standards, particularly with respect to the requirements of IFRS 18.

e) Financial assets and financial liabilities at fair value through profit or loss

Classification

The Company classifies its investments in debt securities and derivatives as financial assets and liabilities at fair value through profit or loss.

Financial assets and financial liabilities designated at fair value through profit or loss at inception are managed and their performance is evaluated on a fair value basis in accordance with the Company's investment objective, which is to generate attractive risk adjusted returns, principally through income distributions, by investing in a diversified portfolio of credit securities.

The Company's policy requires the Portfolio Manager and the Board of Directors to evaluate the information about these financial assets and liabilities on a fair value basis together with other related financial information.

Recognition, derecognition and measurement

Regular purchases and sales of investments (securities and derivatives) are recognised on the trade date, that is, the date on which the Company commits to purchase or sell the investment. Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed as incurred in the Statement of Comprehensive Income. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognised when they are extinguished, discharged, cancelled or expired.

The Company may invest in any category of credit security, including, without prejudice to the generality of the foregoing, bank capital, corporate bonds, high yield bonds, leveraged loans, payment-in-kind notes and asset-backed securities ("ABS"). The Company records any principal repayments as they arise and realises a gain or loss in the net gains on financial assets at fair value through profit or loss in the Statement of Comprehensive Income in the period in which they occur.

The interest income arising on these credit securities is recognised on a time-proportionate basis using the effective interest rate method and shown within income in the Statement of Comprehensive Income.

Fair value estimation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading on the reporting date.

i) Credit securities traded or dealt on an active market or exchange

Credit securities that are traded or dealt on an active market or exchange are valued by reference to their quoted mid-market price as at the close of trading on the reporting date as the Portfolio Manager deems the mid-market price to be a reasonable approximation of an exit price .

ii) Credit securities not traded or dealt on an active market or exchange

Credit securities which are not traded or dealt on active markets or exchanges are valued by reference to their mid-price, as at the close of business on the reporting date as determined by pricing Service Providers that use broker dealer quotations, reported trades or valuation estimates from their internal pricing models. If a price cannot be obtained from an independent price vendor, or where the Portfolio Manager determines that the provided price is not an accurate representation of the fair value of the credit security, the Portfolio Manager will source mid-price quotes at the close of business on the reporting date from independent third party brokers/dealers for the relevant security. If no mid-price is available then a bid-price will be used.

In cases where no third party price is available (either from an independent price vendor or independent third party brokers/dealers), or where the Portfolio Manager determines that the provided price is not an accurate representation of the fair value of the credit security, the Portfolio Manager may use a third party valuation in line with the fair value policy of the Company. This may include the use of a comparable arm's length transaction, independent third party valuation experts, reference to other securities that are substantially the same, discounted cash flow analysis and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs.

Forward foreign currency contracts

Forward foreign currency contracts are derivative contracts and as such, are recognised at fair value on the date on which they are entered into and subsequently measured at their fair value. Fair value is determined from underlying asset prices indices, reference rates and other observable inputs. These instruments are normally valued by pricing Service Providers or by utilising broker or dealer quotations. All forward foreign currency contracts are carried as assets when fair value is positive and as liabilities when fair value is negative. Gains and losses on forward currency contracts are recognised as part of net foreign currency (losses)/gains in the Statement of Comprehensive Income.

Expected credit loss

Financial assets that are stated at cost or amortised cost are reviewed at each reporting date in line with the expected credit loss policy. An expected credit loss ("ECL") is recognised in the Statement of Comprehensive Income as the difference between the carrying value and the estimated recoverable value of the financial assets.

The ECL model applies to financial assets measured at amortised cost and the standard mandates the use of the simplified approach to calculating the expected credit losses for amounts due from brokers, shares issued receivable and other receivables. The ECL calculation is based on the Company's historical default rates over the expected life of the trade receivables. Given the historical level of defaults on trade receivables, there is a negligible impact because of the lifetime expected credit loss to be recognised.

Cash and cash equivalents are also subject to the ECL requirements of IFRS 9 and the ECL is assessed as immaterial.

Swap contracts

Swap contracts are derivative contracts and as such are recognised at fair value on the date on which they are entered into and subsequently measured at their fair value. All swap contracts are carried as assets when fair value is positive and as liabilities when fair value is negative.

Gains and losses on swap contracts are recognised as part of net losses on swaps in the Statement of Comprehensive Income.

f) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Derivatives are not settled on a net basis and therefore derivative assets and liabilities are shown gross.

g) Amounts due from and due to brokers

Amounts due from and to brokers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the Statement of Financial Position date, respectively. These amounts are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

h) Interest income

Interest income is recognised on a time-proportionate basis using the effective interest rate method. Discounts received or premiums paid in connection with the acquisition of credit securities are amortised into interest income using the effective interest rate method over the expected life of the related security.

The effective interest rate method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability.

When calculating the effective interest rate, the Portfolio Manager estimates cash flows considering the expected life of the financial instrument, including future credit losses and deferred interest payments. The calculation includes all fees and amounts paid or received between parties to the contract that are an integral part of the effective interest rate and all other premiums or discounts.

i) Cash and cash equivalents

Cash and cash equivalents comprise deposits held at call with banks and other short-term investments in an active market with original maturities of three months or less and for purposes of cash and cash equivalents, excluding bank overdrafts. Bank overdrafts are included in current liabilities in the Statement of Financial Position.

j) Share capital

Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of Ordinary Shares are shown in equity as a deduction, net of tax, from the proceeds and disclosed in the Statement of Changes in Equity.

Repurchased tendered shares are treated as a distribution of capital and deducted from the Share Capital account. These shares are held in Treasury.

k) Retained earnings

Retained earnings consist of equalisation on issues of new shares, dividends paid and total comprehensive income for the year.

l) Foreign currency translation

Functional and presentation currency

Items included in the Financial Statements are measured using sterling, the currency of the primary economic environment in which the Company operates (the "functional currency"). The financial statements are presented in sterling, which is the Company's presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign currency assets and liabilities are translated into the functional currency using the exchange rate prevailing at the Statement of Financial Position date.

All foreign exchange gains and losses are presented in the Statement of Comprehensive Income. Foreign exchange gains and losses relating to forward currency contracts, receivables and payables are presented in the statement of comprehensive income within 'net foreign currency (losses)/gains'.

Foreign exchange gains and losses relating to investments are presented in the Statement of Comprehensive Income within 'Net gains/(losses) on financial assets at fair value through profit or loss'.

m) Transaction costs

Transaction costs on financial assets and liabilities at fair value through profit or loss include fees and commissions paid to agents, advisers, brokers and dealers. Transaction costs, when incurred, are immediately recognised in the Statement of Comprehensive Income.

n) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board. The Board is of the opinion that the Company is engaged in a single segment of business, being investments in credit securities. The Board manages the business in this way. For additional information refer to note 18.

o) Expenses

All expenses are included in the Statement of Comprehensive Income on an accruals basis and are recognised through profit or loss in the Statement of Comprehensive Income.

p) Other receivables

Other receivables are amounts due in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. Other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less expected credit losses.

q) Other payables

Other payables are obligations to pay for services that have been acquired in the ordinary course of business. Other payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

r) Dividends paid

Dividend distributions due to the Company's Shareholders are recognised as liabilities in the Company's financial statements and disclosed in the Statement of Changes in Equity in the period in which the dividends are approved by the Board.

s) Income equalisation on new issues/tendered shares repurchased

In order to ensure there are no dilutive effects on earnings per share for current Shareholders when issuing new shares, or when repurchasing tendered shares, a transfer is made between share capital and other reserves to reflect that amount of income included in the purchase price of the new shares or the repurchase price of the tendered shares.

t) Treasury Shares

The Company has the right to issue and purchase up to 14.99% of the total number of its own shares, as disclosed in note 12.

Shares held in Treasury are excluded from calculations when determining earnings per Ordinary Share or Net Asset Value per Ordinary Share as detailed in notes 4 and 6.

3.Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a) Judgements

In the process of applying the Company's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

(i) Functional currency

As disclosed in note 2(l), the Company's functional currency is sterling.

Sterling is the currency in which the Company measures its performance and reports its results. Where investments are dominated in other currencies, the Portfolio Manager enters into hedging arrangements to translate the value of those investments into sterling using spot and forward foreign exchange contracts. Additionally, investors buy shares in and receive dividends from the Company in sterling. Expenses incurred by the Company are also in sterling.

Consequently, the Board believes that sterling best represents the functional currency of the Company.

b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising which are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(i) Fair value of securities not quoted in active markets

The Company carries its investments in credit securities at fair value, with changes in value being recognised in the Statement of Comprehensive Income. Credit securities which are not traded or dealt on active markets or exchanges are valued by reference to their mid-price, as at the close of business on the reporting date as determined by pricing Service Providers that use broker dealer quotations, reported trades or valuation estimates from their internal pricing models. The Portfolio Manager exercises its judgement on the quality of the independent price vendor and information provided. If a price cannot be obtained from an independent price vendor or where the Portfolio Manager determines that the provided price is not an accurate representation of the fair value of the credit security, the Portfolio Manager will source prices from independent third party brokers or dealers for the relevant security, which may be indicative rather than tradable. Where no third party price is available, or where the Portfolio Manager determines that the third party quote is not an accurate representation of the fair value, the Portfolio Manager will determine the valuation based on the Portfolio Manager's valuation policy. This may include the use of a comparable arm's length transaction, independent valuation experts, reference to other securities that are substantially the same, discounted cash flow analysis and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs.

No credit securities were priced by the Portfolio Manager during the year or any previous year. There has been no change to the accounting policy applied to how these investments have been valued (see notes 2 and 3) but the use of an independent third party valuation expert was used to value approximately 2.29% of the Company's investments at 30 September 2025 (30 September 2024: 3.11%). See note 16 for price sensitivity analysis and details of interest rate risk.

(ii) Estimated life of credit securities

In determining the estimated life of the credit securities held by the Company, the Portfolio Manager estimates the remaining life of the security with respect to expected prepayment rates, default rates and loss rates together with other information available in the market underlying the security. The estimated life of the credit securities, as determined by the Portfolio Manager, impacts the effective interest rate of the credit securities which in turn impacts the calculation of income as discussed in note 2(h).

(iii) Determination of observable inputs

As discussed in note 17, when determining the levels of investments within the fair value hierarchy, the determination of what constitutes 'observable' requires significant judgement by the Company. The Company considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

(iv) Revenue recognition

Interest income is recognised on a time-proportionate basis using the effective interest rate method. Discounts received or premiums paid in connection with the acquisition of credit securities are amortised into interest income using the effective interest rate method over the expected life of the related security.

When calculating the effective interest rate, the Portfolio Manager estimates cash flows considering the expected life of the financial instrument, including future credit losses and deferred interest payments. The calculation includes all fees and amounts paid or received between parties to the contract that are an integral part of the effective interest rate and all other premiums or discounts.

Revenue estimations are sensitive to changes in interest income resulting from financial instruments defaulting. Interest income represents management's best estimate having regard to historical volatility and looking forward at the global environment.

4.Earnings per Ordinary Share - basic & diluted

The earnings per Ordinary Share basic and diluted of 9.7p (30 September 2024: 16.0p) has been calculated based on the weighted average number of Ordinary Shares (excluding Treasury Shares) of 282,316,503 (30 September 2024: 247,045,371) and a net income for the year of £27,296,036 (30 September 2024: £39,499,909). As at 30 September 2025, the Company had no Ordinary Shares in Treasury (30 September 2024: £Nil).

5. Income on equalisation of new issues/tendered shares repurchased

In order to ensure there were no dilutive effects on earnings per share for current Shareholders when issuing new shares, or when repurchasing tendered shares, earnings have been calculated in respect of the accrued income at the time of purchase of new shares/repurchase of tendered shares and a transfer has been made from share capital to income to reflect this. The transfer for the year amounted to £ 559,486 (30 September 2024: £167,044).

6.Net asset value per Ordinary Share

The net asset value of each Ordinary Share of 86.06p (30 September 2024: 83.70p) is determined by dividing the total net assets of the Company of £272,718,193 (30 September 2024: £219,767,370) by the number of Ordinary Shares in issue (excluding Treasury Shares) at 30 September 2025 of 316,889,197 (30 September 2024: 262,574,331).

7. Taxation

The Company has been granted Exempt Status under the terms of The Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 to income tax in Guernsey. Its liability for Guernsey taxation is limited to an annual fee of £1,600 (30 September 2024: £1,600). The activities of the Company do not constitute relevant activities as defined by the Income Tax (Substance Requirements) (Implementation) Regulations, 2018 (as amended) and as such, the Company was out of scope.

8. Net foreign currency (losses)/gains

								Year ended 30.09.25				Year ended 30.09.24
								£				£
Movement in net unrealised (losses)/gains on forward currency contracts									(1,155,057)				3,025,945
Realised (losses)/gains on forward currency contracts									(3,792,217)				7,102,079
Realised currency gains/(losses) on receivables/payables									764,470				(2,519,521)
Unrealised currency gains/(losses) on receivables/payables									29,560				(64,136)
								(4,153,244)				7,544,367

9. Investments

							As at 30.09.25		As at 30.09.24
							£		£
Financial assets at fair value through profit or loss:
Opening amortised cost							203,435,303		196,051,126
Purchases at cost							133,260,690		91,858,943
Proceeds on sale/principal repayment							(88,263,017)		(80,520,101)
Amortisation adjustment under effective interest rate method							1,998,693		1,866,563
Realised gain on sale/principal repayment							11,259,673		2,568,155
Realised loss on sale/principal repayment							(1,488,570)		(8,389,383)
Closing amortised cost							260,202,772		203,435,303
Unrealised gain on investments							8,931,803		5,165,931
Unrealised loss on investments							(2,260,335)		(3,157,999)
Fair value							266,874,240		205,443,235

							Year ended 30.09.25		Year ended 30.09.24
							£		£
Realised gain on sale/principal repayment							11,259,673		2,568,155
Realised loss on sale/principal repayment							(1,488,570)		(8,389,383)
Increase in unrealised gain							3,765,872		3,887,280
Decrease in unrealised loss							897,664		17,736,096
Net gain on financial assets at fair value through profit or loss							14,434,639		15,802,148

10. Other receivables

							As at 30.09.25		As at 30.09.24
							£		£
Interest income receivable							4,007,050		3,563,959
Prepaid expenses							20,244		5,149
Dividends receivable							100,348		90,154
							4,127,642		3,659,262

The Board does not anticipate any material ECL for interest income receivable as at 30 September 2025 (no material ECL were recorded for 30 September 2024).

11. Other payables

							As at 30.09.25		As at 30.09.24
							£		£
Portfolio management fees payable							176,247		266,879
Administration fees payable							31,543		102,350
AIFM management fees payable							4,357		16,407
Audit fees payable							38,636		144,876
Other expenses payable							61,650		120,092
Depositary fees payable							2,984		11,266
Custody fees payable							2,804		8,675
Share issue costs payable							11,283		20,961
Dividends payable							-		1,302,872
							329,504		1,994,378

12.Share capital account

Authorised share capital

The Board may issue an unlimited number of Ordinary Shares at par value of 1p per share.

Issued share capital

							30.09.25		30.09.24
							£		£
Ordinary Shares
Share capital account at the beginning of the year							237,596,788		219,836,492
Reissue of Treasury Shares							-		3,183,534
Issue of shares							46,915,800		15,325,836
Share issue costs							(552,749)		(212,529)
Purchase of own shares into treasury							-		(369,501)
Income equalisation on new issues							(559,486)		(167,044)
Total share capital account at the end of the year							283,400,353		237,596,788

Reconciliation of number of Shares

					30.09.25		30.09.24
					Number of Ordinary Shares		Number of Ordinary Shares
					£		£
Ordinary Shares
Shares at the beginning of the year					262,574,331		240,824,331
Reissue of Treasury Shares					-		3,939,187
Issue of shares					54,314,866		18,310,813
Purchase of own shares into treasury					-		(500,000)
Total Shares in issue (excluding Treasury Shares) at the end of the year					316,889,197		262,574,331

							30.09.25		30.09.24
							Number of Ordinary Shares		Number of Ordinary Shares
Ordinary Shares
Shares at the beginning of the year							-		3,439,187
Purchase of own shares to hold in treasury							-		500,000
Reissue of Treasury Shares							-		(3,939,187)
Total Shares held in treasury at the end of the year							-		-
Total Shares in issue at the end of the year							316,889,197		262,574,331

The Ordinary Shares carry the following rights:

a) The Ordinary Shares carry the right to receive all income of the Company attributable to the Ordinary Shares.

b) The Shareholders present in person or by proxy or present by a duly authorised representative at a general meeting have, on a show of hands, one vote and, on a poll, one vote for each Share held.

The Company has the right to issue and purchase up to 14.99% of the total number of its own shares at £0.01 each, to be classed as Treasury Shares and may cancel those Shares or hold any such Shares as Treasury Shares, provided that the number of Shares held as Treasury Shares shall not at any time exceed 100% of the total number of Shares of that class in issue at that time or such amount as provided in The Companies (Treasury Shares) Regulations, 2016.

The Company held no shares in Treasury as at 30 September 2025 or 30 September 2024.

13.Analysis of financial assets and liabilities by measurement basis as per Statement of Financial Position

					Financial
					assets at fair
					value through		Amortised
					profit or loss		cost		Total
					£		£		£
As at 30 September 2025
Financial Assets
Financial assets at fair value through profit or loss
- Investments
- Corporate bonds					173,526,131		-		173,526,131
- Asset-backed securities					93,348,109		-		93,348,109
- Derivative assets: Forward currency contracts					63,189		-		63,189
Shares issued receivable					-		438,350		438,350
Amounts due from brokers					-		696,436		696,436
Other receivables (excluding prepaid expenses)					-		4,107,398		4,107,398
Cash and cash equivalents					-		6,268,742		6,268,742
					266,937,429		11,510,926		278,448,355
					Financial
					liabilities at fair
					value through		Amortised
					profit or loss		cost		Total
					£		£		£
As at 30 September 2025
Financial Liabilities
Amounts due to brokers					-		5,417,873		5,417,873
Other payables					-		329,504		329,504
Financial liabilities at fair value through profit or loss
- Derivative liabilities: Forward currency contracts					3,029		-		3,029
					3,029		5,747,377		5,750,406
					Financial
					assets at fair
					value through		Amortised
					profit or loss		cost		Total
					£		£		£
As at 30 September 2024
Financial Assets
Financial assets at fair value through profit or loss
- Investments
- Corporate bonds					136,260,127		-		136,260,127
- Asset-backed securities					69,183,108		-		69,183,108
- Derivative assets: Forward currency contracts					1,215,217		-		1,215,217
Shares issued receivable					-		850,800		850,800
Amounts due from brokers					-		10,000,913		10,000,913
Other receivables (excluding prepaid expenses)					-		3,654,113		3,654,113
Cash and cash equivalents					-		7,589,458		7,589,458
					206,658,452		22,095,284		228,753,736
					Financial
					liabilities at fair
					value through		Amortised
					profit or loss		cost		Total
					£		£		£
As at 30 September 2024
Financial Liabilities
Amounts due to brokers					-		6,997,137		6,997,137
Other payables					-		1,994,378		1,994,378
					-		8,991,515		8,991,515

14.Related parties

a) Directors' remuneration

The Directors of the Company are remunerated for their services at such a rate as the Directors determine. The aggregate fees of the Directors will not exceed £250,000.

The Directors' fees for the year are as follows:

							Year ended 30.09.25		Year ended 30.09.24
							£		£
Ashley Paxton							49,000		45,000
Sharon Parr							43,000		40,000
Wendy Dorey							38,500		37,000
Richard Class							37,500		32,099
							168,000		154,099

No Directors' fees were outstanding as at 30 September 2025 (30 September 2024: £Nil).

Effective 1 April 2025, the Directors' fees were increased per annum as follows:

Ashley Paxton as Chair of the Board	Increase to £53,000
Sharon Parr as Chair of the Audit and Risk Committee and Senior Independent Director	Increase to £46,000
Wendy Dorey as Chair of the Management Engagement Committee	Increase to £40,000
Richard Class as Chair of the Remuneration and Nomination Committee	Increase to £40,000

The base director fee level was also increased from £35,000 to £37,000 per annum.

b) Shares held by related parties

The Directors of the Company held the following shares beneficially:

							As at 30.09.25		As at 30.09.24
							Number of Ordinary Shares		Number of Ordinary Shares
Ashley Paxton							120,000		120,000
Sharon Parr							98,004		98,004
Wendy Dorey¹							38,505		15,000
Richard Class²							75,000		50,000

1 On 1 October 2024, Wendy Dorey purchased 23,505 Ordinary Shares.

2 On 3 April 2025, Richard Class purchased 25,000 Ordinary Shares.

Directors are entitled to receive the dividends on any shares held by them during the year. Dividends declared by the Company are set out in note 19.

As at 30 September 2025, separate fund entities for which the Portfolio Manager is engaged to provide portfolio management services, collectively held 7,562,744 Ordinary Shares (30 September 2024: 7,562,744 Ordinary Shares) which is 2.39% (30 September 2024: 2.88%) of the Issued Share Capital. Partners and employees of the Portfolio Manager, including their immediate family members, directly or indirectly held 2,926,294 Ordinary Shares (30 September 2024: 3,244,631), which is 0.92% (30 September 2024: 1.24%) of the Issued Share Capital.

The Shares held by Directors and by partners and employees of the Portfolio Manager are purchased in their own right on the open market and do not form part of their remuneration paid by the Company.

The Portfolio Manager, partner and employee amounts therefore exclude Shares held under any long-term incentive plan ("LTIP") which have not yet vested. Ordinary Shares that are held in employee and partner LTIPs total 809,905 (30 September 2024: 712,329), which is 0.26% of the Issued Share Capital (30 September 2024: 0.27%).

The amounts for the Portfolio Manager, its partners and employees and LTIP are shown for transparency purposes and are not considered transactions with related parties.

c) Portfolio Manager

The portfolio management fee is payable to the Portfolio Manager monthly in arrears at a rate of 0.75% per annum of the lower of NAV, which is calculated weekly on each valuation day, or market capitalisation of each class of shares. Total portfolio management fees for the year amounted to £1,789,417 (30 September 2024: £1,466,346) of which £ 176,247 (30 September 2024: £266,879) is payable at year end . The Portfolio Management Agreement dated 17 February 2014, as amended, remains in force until determined by the Company or the Portfolio Manager giving the other party not less than twelve months' notice in writing. Under certain circumstances, the Company or the Portfolio Manager is entitled to immediately terminate the agreement in writing.

The Portfolio Manager is also entitled to a commission of 0.175% of the aggregate gross offering proceeds in relation to any issue of new Shares, following admission, in consideration of marketing services that it provides to the Company. During the year, the Portfolio Manager earned £83,591 (30 September 2024: £27,436) in commission, which is charged as a cost of issuance.

15.Material agreements

a) Alternative Investment Fund Manager ("AIFM")

The Company's AIFM is Waystone Management Company (IE) Limited. In consideration for the services provided by the AIFM under the AIFM Agreement, the AIFM is entitled to receive from the Company a minimum fee of £65,000 per annum and fees payable monthly in arrears at a rate of 0.03% of the NAV of the Company below £250 million, 0.025% on Net Assets between £250 million and £500 million, 0.02% on Net Assets between £500 million and £1 billion and 0.015% on Net Assets in excess of £1 billion.

During the year, AIFM fees of £71,561 (30 September 2024: £80,933) were charged to the Company, of which £4,357 (30 September 2024: £16,407) remained payable at the end of the year.

b) Administrator and Secretary

With effect until 31 March 2025, administration fees were payable to Northern Trust International Fund Administration Services (Guernsey) Limited at a rate of 0.06% of the NAV of the Company below £100 million, 0.05% on NAV between £100 million and £200 million and 0.04% on NAV in excess of £200 million as at the last business day of the month subject to a minimum of £75,000 for each year.

With effect from 1 April 2025, administration fees were reduced to a rate of 0.055% of the NAV of the Company below £100 million, 0.04% on NAV between £100 million and £200 million and 0.035% on NAV in excess of £200 million as at the last business day of the month, subject to a minimum of £65,000 per annum for the first year to 31 March 2026 and £75,000 per annum thereafter.

In addition, an annual fee of £25,000 will be charged for corporate governance and company secretarial services. Administration fees are payable monthly in arrears.

During the year, administration and secretarial fees of £141,843 (30 September 2024: £133,678) were charged to the Company, of which £31,543 (30 September 2024: £102,350) remained payable at the end of the year.

c) Broker

For its services as the Company's Corporate Broker, Deutsche Numis, is entitled to receive a retainer fee of £50,000 per annum and also a commission of 1% on all tap issues. Total broker fees for the year amounted to £52,930 (30 September 2024: £50,620) of which £Nil (30 September 2024: £Nil) is payable at year end. During the year, the Corporate Broker earned £469,158 (30 September 2024: £185,093) in commission, which is charged as a cost of issuance.

d) Depositary

With effect until 31 March 2025, depositary fees were payable to Northern Trust (Guernsey) Limited at a rate of 0.0175% of the NAV of the Company below £100 million, 0.0150% on NAV between £100 million and £200 million and 0.0125% on NAV in excess of £200 million as at the last business day of the month subject to a minimum of £25,000 for each year. With effect from 1 April 2025, a reduced rate of 0.0100% is charged on NAV in excess of £200 million, and the minimum fee will be reduced to £15,000 per annum for the first 12 months to 31 March 2026. Depositary fees are payable monthly in arrears.

During the year, depositary fees of £36,266 (30 September 2024: £32,080) were charged to the Company, of which £2,984 (30 September 2024: £11,266) remained payable at the end of the year.

The Depositary is also entitled to a Global Custody fee of a minimum of £8,500 per annum plus transaction fees. Total Global Custody fees and charges for the year amounted to £23,897 (30 September 2024: £19,777) of which £2,804 (30 September 2024: £8,675) is due and payable at the end of the year.

16.Financial risk management

The Company's activities expose it to a variety of financial risks: market risk (including price risk, reinvestment risk, interest rate risk and foreign currency risk), credit risk, liquidity risk and capital risk.

The Company's financial instruments include financial assets/liabilities at fair value through profit or loss, cash and cash equivalents, amounts due to/from brokers, other receivables and other payables. The techniques and instruments utilised for the purposes of efficient portfolio management are those which are reasonably believed by the Board to be economically appropriate to the efficient management of the Company.

Market risk

Market risk embodies the potential for both losses and gains and includes foreign currency risk, interest rate risk, price risk and reinvestment risk. The Company's strategy on the management of market risk is driven by the Company's investment objective. The Company's investment objective is to generate attractive risk adjusted returns principally through investment in credit securities.

( i) Price risk

The underlying investments comprised in the portfolio are subject to price risk. The Company is therefore at risk that market events may affect performance and in particular may affect the value of the Company's investments which are valued on a mark to market and mark to model basis. Price risk is risk associated with changes in market prices or rates, including interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, national and international political circumstances. The Company's policy is to manage price risk by holding a diversified portfolio of assets, through its investments in credit securities.

The Company's policy also stipulates that at purchase, no more than 5% of the portfolio value can be exposed to any single credit security or issuer of credit securities.

The price of a credit security can be affected by a number of factors, including: (i) changes in the market's perception of the underlying assets backing the security; (ii) economic and political factors such as interest rates and levels of unemployment and taxation which can have an impact on the arrears, foreclosures and losses incurred with respect to the pool of assets backing the security; (iii) changes in the market's perception of the adequacy of credit support built into the security's structure to protect against losses caused by arrears and foreclosures; (iv) changes in the perceived creditworthiness of the originator of the security or any other third parties to the transaction; (v) the speed at which mortgages or loans within the pool are repaid by the underlying borrowers (whether voluntary or due to arrears or foreclosures).

Price sensitivity analysis

The following details the Company's sensitivity to movement in market prices. The analysis is based on a 15%, 10% and 5% (30 September 2024: 15%, 10% and 5%) increase or decrease in market prices. This represents management's best estimate of a reasonable possible shift in market prices, having regard to historical volatility.

At 30 September 2025, if market prices had been 15%, 10% and 5% (30 September 2024: 15%, 10% and 5%) higher with all other variables held constant, the increase in the net assets attributable to equity Shareholders would have been £40,031,136, £26,687,424 and £13,343,712, respectively (30 September 2024: £30,816,485, £20,544,324 and £10,272,162, respectively). The total comprehensive income for the year would have also increased by the same amounts. An equal change in the opposite direction would have decreased the net assets attributable to equity Shareholders and total comprehensive income respectively. This price sensitivity analysis covers the market prices received from price vendors, brokers and those determined using models (such as discounted cash flow models) on the assumption that the prices determined from these sources had moved by the indicated percentages.

Actual trading results may differ from the above sensitivity analysis and those differences may be material.

(ii) Reinvestment risk

Reinvestment risk is the risk that future coupons from a bond will not be reinvested at the yield prevailing when the bond was initially purchased.

A key determinant of a bond's yield is the price at which it is purchased and, therefore, when the market price of bonds generally increases, the yield of bonds purchased generally decreases. As such, the overall yield of the portfolio, and therefore the level of dividends payable to Shareholders, would fall to the extent that the market prices of credit securities generally rise and the proceeds of credit securities held by the Company that mature or are sold are not able to be reinvested in credit securities with a yield comparable to that of the portfolio as a whole. The Company assesses reinvestment risk on at least a monthly basis by calculating the projected amortisation profile of the Company across the next three years. In addition, changes in the Company's yield and income are assessed over the same timeframe as bonds redeem or mature to identify any periods where reinvestment risk may be more significant.

(iii) Interest rate risk

Interest rate risk arises from the effects of fluctuations in the prevailing levels of markets interest rates on the fair value of financial assets and liabilities and future cash flow. The Company holds fixed interest securities that expose the Company to fair value interest rate risk. The Company also holds a limited amount of euro-denominated floating rate debt, cash and cash equivalents that expose the Company to cash flow interest rate risk.

The tables below summarise the Company's exposure to interest rate risk:

					Floating rate		Fixed rate		Non-interest bearing		Total
As at 30 September 2025					£		£		£		£
Investments					86,020,689		180,853,551		-		266,874,240
Derivative assets: Forward currency contracts					-		-		63,189		63,189
Shares issued receivable					-		-		438,350		438,350
Amounts due from brokers					-		-		696,436		696,436
Other receivables excluding prepaid expenses					-		-		4,107,398		4,107,398
Cash and cash equivalents					6,268,742		-		-		6,268,742
Derivative liabilities: Forward currency contracts					-		-		(3,029)		(3,029)
Amounts due to brokers					-		-		(5,417,873)		(5,417,873)
Other payables					-		-		(329,504)		(329,504)
Net current assets/(liabilities)					92,289,431		180,853,551		(445,033)		272,697,949

					Floating rate		Fixed rate		Non-interest bearing		Total
As at 30 September 2024					£		£		£		£
Investments					68,005,230		137,438,005		-		205,443,235
Derivative assets: Forward currency contracts					-		-		1,215,217		1,215,217
Shares issued receivable									850,800		850,800
Amounts due from brokers					-		-		10,000,913		10,000,913
Other receivables excluding prepaid expenses					-		-		3,654,113		3,654,113
Cash and cash equivalents					7,589,458		-		-		7,589,458
Amounts due to brokers					-		-		(6,997,137)		(6,997,137)
Other payables					-		-		(1,994,378)		(1,994,378)
Net current assets					75,594,688		137,438,005		6,729,528		219,762,221

The Company holds fixed rate and floating rate financial instruments which, based on current portfolio duration of 2.88 years (30 September 2024: 2.60 years), have relatively limited exposure to fair value interest rate risk as, when short-term interest rates increase, the interest rate on floating rate notes will also increase. The majority of floating rate assets re-fix on a quarterly basis, limiting the impact of interest rate risk to the Company. As such, it is not deemed necessary to perform sensitivity analysis on the impact of interest rate risk.

As at 30 September 2025, 66.32% of the Company's net current asset position was invested in fixed rate securities (30 September 2024: 62.54%), however the overall credit spread duration of the Company was 3.96 years (30 September 2024: 3.27 years). A credit spread duration of 3.96 years (30 September 2024: 3.27 years) indicates that the portfolio's value will rise or fall by 4.0 basis points (30 September 2024: 3.3 basis points) should credit spreads overall rise or fall by 1 basis point. The value of credit securities may also be affected by interest rate movements. Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates, however the underlying cash positions will not be affected.

The Company's continuing position in relation to interest rate risk is monitored on a weekly basis by the Portfolio Manager as part of its review of the weekly Net Asset Value calculations prepared by the Company's Administrator.

The Company actively trades in debt securities, some of which are variable rate and linked to interest rate benchmarks.

(iv) Foreign currency risk

Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company invests predominantly in non-sterling assets while its Shares are denominated in sterling, its expenses are incurred in sterling and its presentational currency is sterling. Therefore, the Statement of Financial Position may be significantly affected by movements in the exchange rate between foreign currencies and sterling. The Company manages the exposure to currency movements by using spot and forward foreign exchange contracts, rolling forward on a periodic basis.

As at 30 September 2025, the Company had 4 (30 September 2024: 5) open forward currency contracts.

							Outstanding contracts		Mark to market equivalent		Unrealised gains/(losses)
					Contract values
					30.09.25		30.09.25		30.09.25		30.09.25
					Currency		£		£		£
4 sterling forward foreign currency contracts totalling:
2 EUR forward foreign currency contract					(191,367,684)		(167,299,592)		(167,236,610)		62,982
1 USD forward foreign currency contract					(28,193,873)		(20,936,832)		(20,939,861)		(3,029)
1 USD forward foreign currency contract					(332,295)		(247,006)		(246,799)		207
											60,160
							Outstanding contracts		Mark to market equivalent		Unrealised gains
					Contract values
					30.09.24		30.09.24		30.09.24		30.09.24
					Currency		£		£		£
5 sterling forward foreign currency contracts totalling:
3 EUR forward foreign currency contract					(150,907,486)		(126,753,795)		(125,666,380)		1,087,415
2 USD forward foreign currency contract					(23,141,266)		(17,691,365)		(17,563,563)		127,802
											1,215,217

Forward currency contracts are not subject to offsetting or master netting arrangements.

At year end, the Company had Nil (30 September 2024: Nil) open spot currency contracts.

As at 30 September 2025 and 2024, the Company held the following assets and liabilities denominated in currencies other than Pound sterling:

																					As at 30.09.25						As at 30.09.24
																					£						£
EUR
Investments																						169,068,875						119,513,408
Cash and cash equivalents																					1,453,081						1,080,673
Amounts due from brokers and other receivables																				3,158,992						12,363,878
Less: Amounts due to brokers																					(5,417,873)						(6,907,137)
Less: Open forward currency contracts																					(167,236,610)						(125,666,380)
USD
Investments																						21,010,147						15,544,289
Cash and cash equivalents																					148,561						1,783,083
Other receivables																						372,344						259,054
Less: Open forward currency contracts																					(21,186,660)						(17,563,563)
CHF
Cash and cash equivalents																					42						16,622
																					1,370,899						423,927

The following tables summarise the sensitivity of the Company's assets and liabilities to changes in foreign exchange movements between Euro, US Dollar and Swiss Franc, and the Company functional currency of sterling as at 30 September 2025 and 2024. The analysis assumes that the relevant foreign exchange rate increased/decreased by the percentage disclosed in the table, with all other variables held constant. This represents management's best estimate of a reasonable possible shift in the foreign exchange rates, having regard to historical volatility of those rates.

																As at 30.09.25				As at 30.09.24
																£				£
Impact on net assets
- 10% (30.09.24: 10%) increase in EUR/GBP															99,373				61,508
- 10% (30.09.24: 10%) decrease in EUR/GBP															335,761				155,180
																As at 30.09.25				As at 30.09.24
																£				£
Impact on net assets
- 10% (30.09.24: 10%) increase in USD/GBP															(33,762)				280,957
- 10% (30.09.24: 10%) decrease in USD/GBP															31,465				344,766
																As at 30.09.25				As at 30.09.24
																£				£
Impact on net assets
- 10% (30.09.24: 10%) increase in CHF/GBP															(4)				(1,512)
- 10% (30.09.24: 10%) decrease in CHF/GBP															4				1,662

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has a credit policy in place and the exposure to credit risk is monitored on an on-going basis.

The main concentration of credit risk to which the Company is exposed arises from the Company's investments in credit securities. The credit risk is built into mark to market or mark to model pricing. The Company is also exposed to counterparty credit risk on forwards, cash and cash equivalents, amounts due from brokers, shares issued receivable and other receivable balances.

The Company's policy is to manage this risk by maintaining a portfolio diversified by issuer. While the prospectus permits no more than 5% of the portfolio value to be invested in any single credit security or issuer of credit securities, the Portfolio Manager operates to stricter exposures dependent on the credit rating of each single credit security or issuer of credit securities.

Portfolio of debt securities and cash and cash equivalents by ratings category using the highest rating assigned by Standard and Poor's ("S&P"), Moody's Analytics ("Moody's") or Fitch Ratings ("Fitch"):

									As at 30.09.25		As at 30.09.24
AA-									1.40%		0.00%
A+									2.30%		5.54%
A-									1.00%		0.00%
BBB+									4.91%		2.48%
BBB									13.07%		9.31%
BBB-									14.73%		12.58%
BB+									8.63%		10.02%
BB									6.96%		8.54%
BB-									19.07%		12.58%
B+									5.49%		8.30%
B									2.99%		4.90%
B-									10.94%		13.08%
CCC+									0.39%		2.47%
CCC									0.50%		0.00%
Not Rated*									7.62%		10.20%
									100.00%		100.00%

*The non-rated exposure within the Company is managed in exactly the same way as the exposure to any other rated bond in the portfolio. A bond not rated by any of Moody's, S&P or Fitch does not necessarily translate as poor credit quality. Often smaller issues/tranches, or private deals which the Company holds, will not apply for a rating due to the cost of doing so from the relevant credit agencies. On this basis, the Portfolio Manager has no significant credit concerns with the unrated ABS or corporate bonds currently held.

To further understand credit risk, the Portfolio Manager undertakes extensive due diligence procedures on investments in credit securities and monitors the on-going investment in these securities.

The Company manages its counterparty exposure in respect of cash and cash equivalents and forward currency contracts by investing with counterparties with a "single A" or higher credit rating. The majority of cash is currently placed with Northern Trust (Guernsey) Limited. The Company is subject to credit risk to the extent that this institution may be unable to return this cash. Northern Trust (Guernsey) Limited is a wholly owned subsidiary of The Northern Trust Corporation. The Northern Trust Corporation is publicly traded and a constituent of S&P 500. The Northern Trust Corporation has a credit rating of A+ from Standard & Poor's and A2 from Moody's.

The Company's maximum credit exposure is limited to the carrying amount of financial assets recognised as at the Statement of Financial Position date, as summarised below:

									As at 30.09.25		As at 30.09.24
									£		£
Investments									266,874,240		205,443,235
Shares issued receivable									438,350		850,800
Amounts due from brokers									696,436		10,000,913
Cash and cash equivalents									6,268,742		7,589,458
Derivative assets: Forward currency contracts									63,189		1,215,217
Other receivables excluding prepaid expenses									4,107,398		3,654,113
									278,448,355		228,753,736

Investments in credit securities that are not backed by underlying asset pools present certain risks that are not presented by ABS. Primarily, these securities may not have the benefit of the same security interest in the related collateral. Therefore, there is a possibility that recoveries on defaulted collateral may not, in some cases, be available to support payments on these securities. The risk of investing in these types of securities is ultimately dependent upon payment of the underlying debt by the issuer. The Portfolio Manager undertakes extensive due diligence procedures on investments in credit securities and monitors the on-going investment in these securities.

The most significant balance of other receivables is interest receivable and its credit risk is the same as the credit securities.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to generate sufficient cash resources to settle its obligations in full as they fall due or can only do so on terms that are materially disadvantageous.

Investments made by the Company in credit securities may be relatively illiquid and this may limit the ability of the Company to realise its investments for the purposes of cash management such as generating cash for dividend payments to Shareholders or buying back Ordinary Shares under the quarterly tenders or in the market. Investments in credit securities may also have no active market and the Company also has no redemption rights in respect of these investments. The Company has the ability to borrow to ensure sufficient cash flows.

The Portfolio Manager considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. Cash flows from trade and other receivables are all contractually due within twelve months.

The Portfolio Manager maintains a liquidity management policy to monitor the liquidity risk of the Company.

Shareholders have no right to have their shares redeemed or repurchased by the Company, except as detailed under the Capital risk management (Quarterly tenders) section of this note. Shareholders otherwise wishing to release their investment in the Company are therefore required to dispose of their shares on the market.

The following table analyses the Company's liabilities into relevant maturity groupings based on the maturities at the Statement of Financial Position date. The amounts in the table are the undiscounted net cash flows on the financial liabilities:

					Up to 1 month		1-6 months		6-12 months		Total
As at 30 September 2025					£		£		£		£
Financial liabilities
Amounts due to brokers					(5,417,873)		-		-		(5,417,873)
Derivative liabilities: Forward currency contracts					(3,029)		-		-		(3,029)
Other payables					(290,868)		(38,636)		-		(329,504)
Total					(5,711,770)		(38,636)		-		(5,750,406)
					Up to 1 month		1-6 months		6-12 months		Total
As at 30 September 2024					£		£		£		£
Financial liabilities
Amounts due to brokers					(6,997,137)		-		-		(6,997,137)
Other payables					(1,840,220)		(154,158)		-		(1,994,378)
Total					(8,837,357)		(154,158)		-		(8,991,515)

Capital risk management

The Company manages its capital to ensure that it is able to continue as a going concern while following the Company's stated investment policy and dividend policy. The capital structure of the Company consists of Shareholders' equity, which comprises share capital and retained earnings. To maintain or adjust the capital structure, the Company may return capital to Shareholders or issue new Shares. There are no regulatory requirements to return capital to Shareholders.

(i) Quarterly tenders

With the objective of minimising the risk of the Ordinary Shares trading at a discount to NAV and to assist in the narrowing of any discount at which the Ordinary Shares may trade from time to time, the Company has incorporated into its structure a mechanism (a quarterly tender), contingent on certain factors as described below, which can be exercised at the discretion of the Directors. This provides Shareholders with a quarterly opportunity to submit Ordinary Shares for placing or repurchase by the Company at a price representing a discount of no more than 2% to the then prevailing NAV.

Upon confirmation of the number of tender requests made in respect of each quarter record date, the Company intends first, through its broker acting on a reasonable endeavours basis, to seek to satisfy tender requests by placing the tendered shares with investors in the secondary market.

Second, subject to the restrictions on tenders, the Company repurchases any tendered shares not placed in the secondary market, for cancellation or to be held in Treasury.

It is anticipated that the Company will tender on a quarterly basis for up to 20% of the Ordinary Shares in issue as at the relevant quarter record date, subject to an aggregate limit of 50% of the Ordinary Shares in issue in any twelve-month period ending on the relevant quarter record date. If tender requests exceed 20%, tenders will be scaled back on a pro-rata basis.

(ii) Share buybacks

The Company has been granted the authority to make market purchases of up to a maximum of 14.99% of the aggregate number of Ordinary Redeemable Shares in issue immediately following Admission at a price not exceeding the higher of (i) 5% above the average of the mid-market values of the Ordinary Redeemable Shares for the 5 business days before the purchase is made or, (ii) the higher of the price of the last independent trade and the highest current investment bid for the Ordinary Redeemable Shares.

In deciding whether to make any such purchases, the Directors will have regard to what they believe to be in the best interests of Shareholders as a whole, to the applicable legal requirements and any other requirements in its Articles. The making and timing of any buybacks will be at the absolute discretion of the Board and not at the option of the Shareholders, and is expressly subject to the Company having sufficient surplus cash resources available (excluding borrowed money).

The UKLR prohibit the Company from conducting any share buybacks during close periods immediately preceding the publication of annual and interim results.

(iii) Continuation votes

In the event that:

(i) the Dividend Target, as disclosed in note 19, is not met; or

(ii) on any tender submission deadline, applications for the Company to repurchase 50% or more of the Company's issued Ordinary Shares, calculated as at the relevant quarter record date, are received by the Company, a General Meeting will be convened at which the Directors will propose an Ordinary Resolution that the Company should continue as an investment company. If any such Ordinary Resolution is not passed, the Directors shall draw up proposals for the voluntary liquidation, unitisation, reorganisation or reconstruction of the Company for submission to the members of the Company at a General Meeting to be convened by the Directors for a date not more than 6 months after the date of the meeting at which such Ordinary Resolution was not passed.

17.Fair value measurement

All assets and liabilities are carried at fair value or at carrying value which equates to fair value.

IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

(i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).

(ii) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices including interest rates, yield curves, volatilities, prepayment speeds, credit risks and default rates) or other market corroborated inputs (Level 2).

(iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

The following table analyses within the fair value hierarchy the Company's financial assets and liabilities (by class) measured at fair value as at 30 September 2025.

			Level 1		Level 2		Level 3		Total
			£		£		£		£
Assets
Financial assets at fair value through profit or loss
	- Investments
	- Corporate bonds		-		173,526,131		-		173,526,131
	- Asset-backed securities		-		87,224,619		6,123,490		93,348,109
	- Derivative assets: Forward currency contracts		-		63,189		-		63,189
Total assets as at 30 September 2025			-		260,813,939		6,123,490		266,937,429
Liabilities
Financial liabilities at fair value through profit or loss
	- Derivative liabilities: Forward currency contracts		-		3,029		-		3,029
			-		3,029		-		3,029

The following table analyses within the fair value hierarchy the Company's financial assets and liabilities (by class) measured at fair value as at 30 September 2024.

		Level 1		Level 2		Level 3		Total
		£		£		£		£
Assets
Financial assets at fair value through profit or loss
- Investments
- Corporate bonds		-		136,260,127		-		136,260,127
- Asset-backed securities		-		62,800,110		6,382,998		69,183,108
- Derivative assets: Forward currency contracts		-		1,215,217		-		1,215,217
		-		200,275,454		6,382,998		206,658,452

As at 30 September 2024, no financial liabilities were carried at fair value through profit or loss.

Credit securities which have a value based on quoted market prices in active markets are classified as Level 1. At the end of the year, no credit securities held by the Company are classified as Level 1.

Credit securities which are not traded or dealt on organised markets or exchanges are classified as Level 2 or Level 3. Credit securities with prices obtained from independent price vendors, where the Portfolio Manager is able to assess whether the observable inputs used for their modelling of prices are accurate and the Portfolio Manager has the ability to challenge these vendors with further observable inputs, are classified as Level 2. Prices obtained from vendors who are not easily challengeable or transparent in showing their assumptions for the method of pricing or where an independent value is sought from an external provider based on an appropriate valuation model, are classified as Level 3. Credit securities priced at an average of two vendors' prices are classified as Level 2.

Where the Portfolio Manager determines that the price obtained from an independent price vendor is not an accurate representation of the fair value of the credit security, the Portfolio Manager may source prices from third party dealer quotes and if the price represents a reliable and an observable price, the credit security is classified as Level 2. Any dealer quote that is over 20 days old is considered stale and is classified as Level 3. Furthermore, the Portfolio Manager may determine that the application of a mark-to-model basis may be appropriate where they believe such a model will result in more reliable information with regards to the fair value of any specific investments and are also classified as Level 3 investments. During the year, there were no transfers between Level 2 and Level 3 (30 September 2024: none).

The Portfolio Manager also took advantage of engaging a third party valuer to value certain investments (primarily residential mortgage-backed security assets). The valuation of these assets and others that the Portfolio Manager may deem appropriate to provide fair value, primarily use discounted cash flow analysis but may also include the use of a comparable arm's length transaction, reference to other securities that are substantially the same, and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs. As at 30 September 2025, investments representing 2.29% of the portfolio were valued by the third party valuer (30 September 2024: 3.11%).

Although the models used utilise other unobservable inputs in addition to the discount margins such as constant default rate and constant prepayment rate, it is the Board's and Portfolio Manager's views that any reasonable movement in these unobservable inputs would not yield a significant change in fair value to the portfolio and as a result, a sensitivity analysis relating to these unobservable inputs has not been presented. The following table summarises the quantitative information about the significant unobservable inputs used in Level 3 fair value measurements and how a reasonable possible change in the input would affect the fair values:

30 September 2025

Fair Value (£)

Financial Assets /Liabilities

Unobservable Input

Sensitivity Used

Effect on Fair Value (£)

Dutch RMBS

6,123,490

Financial Asset

Discount Margin (1000 bps)

-1% / +1%

108,232

/

(103,655)

30 September 2024

Fair Value (£)

Financial Assets /Liabilities

Unobservable Input

Sensitivity Used

Effect on Fair Value (£)

Dutch RMBS

3,667,997

Financial Asset

Discount Margin (970 bps)

-1% / +1%

83,983

/

(80,643)

UK RMBS

2,715,000

Financial Asset

Discount Margin (970 bps)

-1% / +1%

27,965

/

(27,693)

The following table presents the movement in Level 3 instruments for the year ended 30 September 2025 by class of financial instrument.

		Bonds		Asset-backed securities		Total
As at 30 September 2025		£		£		£
Opening balance		-		6,382,998		6,382,998
Net disposals		-		(728,779)		(728,779)
Net realised gains for the year		-		502,889		502,889
Net unrealised losses for the year		-		(33,618)		(33,618)
Closing balance		-		6,123,490		6,123,490

The following table presents the movement in Level 3 instruments for the year ended 30 September 2024 by class of financial instrument.

		Bonds		Asset-backed securities		Total
As at 30 September 2024		£		£		£
Opening balance		-		5,588,925		5,588,925
Net purchases		-		670,974		670,974
Net realised gains for the year		-		184,476		184,476
Net unrealised losses for the year		-		(61,377)		(61,377)
Closing balance		-		6,382,998		6,382,998

The following tables analyse within the fair value hierarchy the Company's assets and liabilities not measured at fair value at 30 September 2025 and 30 September 2024, but for which fair value is disclosed.

			Level 1		Level 2		Level 3		Total
As at 30 September 2025			£		£		£		£
Assets
Amounts due from brokers			-		696,436		-		696,436
Shares issued receivable			-		438,350		-		438,350
Other receivables excluding prepaid expenses			-		4,107,398		-		4,107,398
Cash and cash equivalents			6,268,742		-		-		6,268,742
Total			6,268,742		5,242,184		-		11,510,926
Liabilities
Amounts due to brokers			-		5,417,873		-		5,417,873
Other payables			-		329,504		-		329,504
Total			-		5,747,377		-		5,747,377
			Level 1		Level 2		Level 3		Total
As at 30 September 2024			£		£		£		£
Assets
Amounts due from brokers			-		10,000,913		-		10,000,913
Shares issued receivable			-		850,800		-		850,800
Other receivables excluding prepaid expenses			-		3,654,113		-		3,654,113
Cash and cash equivalents			7,589,458		-		-		7,589,458
Total			7,589,458		14,505,826		-		22,095,284
			Level 1		Level 2		Level 3		Total
As at 30 September 2024			£		£		£		£
Liabilities
Amounts due to brokers			-		6,997,137		-		6,997,137
Other payables			-		1,994,378		-		1,994,378
Total			-		8,991,515		-		8,991,515

The assets and liabilities included in the above tables are carried at amortised cost; due to their short-term nature, their carrying values are a reasonable approximation of fair value.

Cash and cash equivalents include deposits held with banks.

Amounts due to brokers and other payables represent the contractual amounts and obligations due by the Company for settlement of trades and expenses.

Amounts due from brokers, shares issued receivable and other receivables represent the contractual amounts and rights due to the Company for settlement of trades and income.

18.Segmental reporting

The Board is responsible for reviewing the Company's entire portfolio and considers the business to have a single operating segment. The Board's asset allocation decisions are based on a single, integrated investment strategy, and the Company's performance is evaluated on an overall basis.

Revenue earned is reported separately on the face of the Statement of Comprehensive Income as interest income on financial assets at fair value through profit or loss being interest income received from credit securities.

19.Dividend policy

The Board intends to distribute an amount at least equal to the value of the Company's excess income, as defined below, arising each financial year to the holders of Ordinary Shares. However, there is no guarantee that the Dividend Target of 6.0 pence per Ordinary Share for each financial year will be met or that the Company will make any distributions at all.

Excess income is defined as the distributions made with respect to any income period, which comprise (a) the accrued income of the portfolio for the period (for these purposes, the Company's income will include the interest payable by the credit securities in the portfolio and amortisation of any discount or premium to par at which a credit security is purchased over its remaining expected life); (b) an additional amount to reflect any income purchased in the course of any share subscriptions that took place during the period. Including purchased income in this way ensures that the income yield of the shares is not diluted as a consequence of the issue of new shares during an income period; (c) any relevant expenses less 50% of the portfolio management fees for the period; and (d) any gain/(loss) on the foreign exchange contracts caused by the interest rate differentials between each foreign exchange currency pair which is reflected in each pair's forward foreign exchange rate. This definition differs from the IFRS Accounting Standards "net income" definition which also recognises gains and losses on financial assets.

The Company declared the following dividends in respect of the profit for the year ended 30 September 2025:

Period to	Dividend per Ordinary Share (pence)	Net dividend payable (£)	Ex-dividend date	Record date	Pay date
30 September 2024*	1.38	3,624,403	17 October 2024	18 October 2024	1 November 2024
31 October 2024	0.50	1,345,372	21 November 2024	22 November 2024	6 December 2024
29 November 2024	0.50	1,350,372	19 December 2024	20 December 2024	3 January 2025
31 December 2024	0.50	1,360,372	16 January 2025	17 January 2025	31 January 2025
31 January 2025	0.50	1,382,622	20 February 2025	21 February 2025	7 March 2025
28 February 2025	0.50	1,397,372	20 March 2025	21 March 2025	4 April 2025
31 March 2025	0.75	2,096,057	17 April 2025	22 April 2025	6 May 2025
30 April 2025	0.50	1,416,872	22 May 2025	23 May 2025	6 June 2025
31 May 2025	0.50	1,439,372	19 June 2025	20 June 2025	4 July 2025
30 June 2025	0.75	2,211,557	17 July 2025	18 July 2025	1 August 2025
31 July 2025	0.50	1,521,946	21 August 2025	22 August 2025	5 September 2025
31 August 2025	0.50	1,561,947	18 September 2025	19 September 2025	30 September 2025
		20,708,264
30 September 2025	1.30	4,158,690	16 October 2025	17 October 2025	31 October 2025

* This dividend was declared in respect of distributable profit for the year ended 30 September 2024.

The Company declared the following dividends in respect of the profit for the year ended 30 September 2024:

Period to	Dividend per Ordinary Share (pence)	Net dividend payable (£)	Ex-dividend date	Record date	Pay date
30 September 2023*	1.87	4,493,959	19 October 2023	20 October 2023	3 November 2023
31 October 2023	0.50	1,201,622	16 November 2023	17 November 2023	1 December 2023
30 November 2023	0.50	1,204,122	21 December 2023	22 December 2023	5 January 2024
29 December 2023	0.50	1,209,122	18 January 2024	19 January 2024	2 February 2024
31 January 2024	0.50	1,215,372	15 February 2024	16 February 2024	1 March 2024
29 February 2024	0.50	1,217,872	21 March 2024	22 March 2024	5 April 2024
28 March 2024	0.75	1,834,306	18 April 2024	19 April 2024	3 May 2024
30 April 2024	0.50	1,243,872	16 May 2024	17 May 2024	31 May 2024
31 May 2024	0.50	1,254,872	20 June 2024	21 June 2024	5 July 2024
28 June 2024	0.75	1,898,056	18 July 2024	19 July 2024	2 August 2024
31 July 2024	0.50	1,272,872	15 August 2024	16 August 2024	30 August 2024
30 August 2024	0.50	1,302,872	19 September 2024	20 September 2024	4 October 2024
		19,348,919
30 September 2024	1.38	3,624,403	17 October 2024	18 October 2024	1 November 2024

* This dividend was declared in respect of distributable profit for the year ended 30 September 2023.

Under The Companies (Guernsey) Law, 2008, the Company can distribute dividends from capital and revenue reserves, subject to the net asset and solvency test. The net asset and solvency test considers whether a company is able to pay its debts when they fall due, and whether the value of a company's assets is greater than its liabilities. The Board confirms that the Company passed the net asset and solvency test for each dividend paid.

20. Ultimate controlling party

In the opinion of the Board on the basis of shareholdings advised to them, the Company has no ultimate controlling party.

21.Subsequent events

These Financial Statements were approved for issuance by the Board on 10 December 2025. Subsequent events have been evaluated to this date.

Subsequent to the year end and up to the date of signing of the Annual Report and Audited Financial Statements, the following events took place:

Dividend declarations

Declaration date		Dividend rate per Ordinary Share (pence)
9 October 2025		1.30
13 November 2025		0.50

Tenders

On 6 October 2025, 119,559 shares were tendered in respect of the tender for the quarter ended 30 September 2025, all of which were placed by Deutsche Numis, rather than repurchased by the Company.

Share issues

The Company issued the following Ordinary Shares under its blocklisting facility, increasing the Company's issued share capital post year end to 330,639,197 Ordinary Shares:

Issue date	Ordinary Shares issued	Price (pence)
3 October 2025	1,000,000	87.79
6 October 2025	1,500,000	87.79
24 October 2025	1,500,000	86.58
10 November 2025	1,000,000	86.88
17 November 2025	3,750,000	87.01
21 November 2025	1,300,000	86.37
28 November 2025	1,200,000	86.71
5 December 2025	2,500,000	86.96

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES

Alternative Performance Measures ("APMs")

In accordance with European Securities and Markets Authority Guidelines on APMs, the Board has considered what APMs are included in the Annual Report and Audited Financial Statements which require further clarification. APMs are defined as a financial measure of historical or future financial performance, financial position or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. The APMs included in the annual report and accounts are unaudited and outside the scope of IFRS Accounting Standards.

Dividends Declared per Ordinary Share

Dividends declared per Ordinary Share are the dividends that are announced in respect of the current accounting period.

Dividend Target

The Company maintains an annual minimum dividend target of at least 6p per Ordinary Share.

Net Asset Value ("NAV")

NAV is the assets attributable to Shareholders. NAV is calculated using the accounting standards speci?ed by IFRS Accounting Standards and consists of total assets, less total liabilities.

NAV per Ordinary Share

NAV per Ordinary Share is calculated by dividing the total net asset value of £272,718,193 (2024: £219,767,370) by the number of Ordinary Shares at the end of the year of 316,889,197 shares (2024: 262,574,331). This produces a NAV per Ordinary Share of 86.06p (2024: 83.70p), which was an increase of 2.82% (2024: increase of 10.95%).

NAV Total Return per Ordinary Share

NAV total return per Ordinary Share refers to the total gain from the Company, which includes the increase or decrease in the Company's value (capital gains) and the income generated from dividends, while reinvesting the dividends paid back into the NAV per Ordinary Share to purchase additional shares at each ex-dividend date during the year.

Ongoing Charges

Ongoing Charges represent the Company's management fee and all other operating expenses, excluding finance costs, expressed as a percentage of the average of the daily net assets during the year. The Board continues to be conscious of expenses and works hard to maintain a sensible balance between good quality service and cost.

Premium/Discount

If the share price of an investment company is higher than the NAV per Ordinary Share, the shares are said to be trading at a premium. The size of the premium is calculated by subtracting the share price from the NAV per Ordinary Share and is usually expressed as a percentage of the NAV per Ordinary Share. If the share price is lower than the NAV per Ordinary Share, the shares are said to be trading at a discount.

Average Premium

The premium is calculated as described above at the close of business on every Wednesday that is also a business day, as well as the last business day of every month, and an average is taken for the year.

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