Twentyfour Select Monthl... Share Discussion Threads

[cc2014] 21/2/2022 12:39

Another million shares issued. This time at 90.29

[cwa1] 11/2/2022 17:57

Didn't take long to lob some out...



...happy enough to have bought just inside that price :-)

[cc2014] 11/2/2022 16:48

I'm happy enough to buy SMIF at the right price. I've looked at the underlying holdings and there's nothing to overly concern me there.

I haven't really thought about it but I wouldn't pay more than NAV. I'd want to pay less than NAV but tbh it's like NCYF. It's always at a premium and I could wait forever to get a price I like.

[cwa1] 11/2/2022 16:10

Ah, OK, I see where you're coming from...

I had just had a nibble here at 91p and saw your post above stating it was at a significant premia to NAV and had a moment of panic! However, when I went to the companies own factsheet they quoted a smidgeon over 91p as being the most up to date NAV, so I couldn't quite reconcile the two...

Many thanks for explaining your thinking, as I do recognise where you are coming from.

Purely out of acedemic interest, do you have a price that would interest you at SMIF, or is the "whiff"/mindset you have too much to overcome?

Thanks for your thoughts

[cc2014] 11/2/2022 15:36

When I wrote the post a couple of days ago the NAV was just below 90p and it was about 93-94p to buy. I guess a 3-4% premia is not "significant" when I think about it. It just seems alot to me compared with say BIPS which was trading on a 3-4% discount.

On the other hand if I compare with NCYF, SMIF looks "cheap" on a valuation basis.

The post probably overspills into my thoughts on TwentyFourAM who I not really a fan of. This is mostly based on UKML and I guess it's not fair to associate the fund manager there with this fund but it's got into my mindset.

[cwa1] 11/2/2022 15:02

Afternoon CC2014

From your post:-

I don't hold SMIF due to the premia to NAV and this reminds me to continue to avoid anything at a significant premia to NAV.

I hope you don't think I'm being rude-but what figures are you using for SMIF's NAV? I can't seem to reconcile a "significant premia" to NAV with the current share price but I've doubtless got the wrong end of the stick somewhere ;-) FWIW I made it about in line with NAV.

Many thanks for any clarification you can give!

Cheers

[cc2014] 09/2/2022 07:40

TwentyFour Asset Management LLP (the “Investment Manager”) will be hosting a virtual update on Thursday 10th February at 10am to discuss the outlook and opportunities for the TwentyFour Select Monthly Income Fund (the “Company”;).

The Investment Manager has highlighted that recent macroeconomic developments have led to a number of investment opportunities within the Company's universe which it perceives as offering attractive return and risk characteristics.

In light of the opportunity to deploy funds accretive in the market, the board will consider issuing shares at a reduced premium to NAV per share while the opportunity remains.

The Company has the ability to issue up to 29,147,702 ordinary shares as part of the outstanding issuance authority granted at the Annual General Meeting on 8 July 2021.


Put out via PRN and not RNS as far as I can see unless ADVFN is losing the plot which wouldn't be unusual.

In my view the party is coming to an end, TwentyFour know it and want to get their fees up as much as possible whilst there is still time. I don't like their position on UKML/TFIF either.

I don't hold SMIF due to the premia to NAV and this reminds me to continue to avoid anything at a significant premia to NAV.

[killing_time] 08/2/2022 09:28

Its pretty common, they do it regularly, it stops the share price going to a discount against the NAV.

[folderboy] 08/2/2022 09:22

Am I the only one to receive this? Surely not!
TWENTYFOUR SELECT ORD GBP0.01
Event TypeTender Offer
DescriptionRepurchase Offer

Offeror: TwentyFour Select Monthly Income Fund
Record date: 31st March 2022
Offer price: To be determined on 31st March 2022
Pay date: Week commencing 11th April 2022

TwentyFour Select Monthly Income Fund is offering to repurchase up to 20% (basic entitlement) of the share capital in issue. Your options are:

OPTION 1: Do nothing (Default). You will keep your current holding if you take no action.

OPTION 2: Tender any or all your shares. You will be issued with a price that will represent a discount of no more than 2 per cent. to the then prevailing Net Asset Value on the determination date of 31st March 2022, in exchange for each share tendered. Elections above the basic entitlement may be subject to scaling back.

[cwa1] 13/1/2022 16:59

Another one rolls in to view:-



The Directors of TwentyFour Select Monthly Income Fund Limited have declared that a dividend will be payable, in line with the Prospectus, representing the regular monthly targeted dividend for the financial period ending 31 December 2021 as follows:

Ex-Dividend Date 20 January 2022
Record Date 21 January 2022
Payment Date 4 February 2022
Dividend per Share 0.50 pence (Sterling)

[playful] 04/1/2022 16:37

I love my monthly payments from EPIC so have been buying here too

[rogerramjett] 04/1/2022 13:25

Just picked up a few of these. 13750 to be precise. Monthly (ish) dividend which can be reinvested compounds the growth.

[cwa1] 16/12/2021 08:08

It's that time of the month AGAIN :-) XD this morning, paid 5/1/22

[marktime1231] 09/12/2021 23:12

Hmmm, that is a change from previously saying the dividend was unsustainable and will need to be rebased. Now saying it is unsustainable and will be increased!

The reason for the shortfall outlook is not because income has been missed it is because, as they say themselves, replacement investments with high interest payments cannot be found. To be honest I have not studied the decay, but a quick approximation it looks like they are paying 8% and rising from distributable income projecting under 7.4% and falling. Eeek! Drawing increasingly on reserves is going to erode NAV and can't last. They could cut the fees I suppose.

Maybe I jumped too soon, somehow they are still managing to issue loads of stock at a premium, but I took the peak price in July and am getting a good bang from EAT and GRID instead. Where NAV and income are strongly progressive, makes it easier to sleep.

[rogerrail] 09/12/2021 22:05

I hold both amd recently added more EAT.With regards to Divis, the following statement was made at the NCYF FY report. Make of it what you will but my take is they will strive to keep divi above 4p and with rising inflation there will be a slowdown in early calls. Ultimately all capital finance funds will be strugling with the same problems:Earnings and DividendsThe Company's revenue earnings per ordinary share were 4.18 pence for the financial year, 8.9% lower than the 4.59 pence earned last year. The decrease in earnings happened as a result of a few missed coupons/dividends such as Matalan Finance and Rea Holdings (which may be recouped later) and because the environment for refinancing at cheaper levels was favourable which meant the number of bonds that were redeemed early ('called') was greater than we anticipated and finding replacement bonds with the same level of payouts is getting harder. The latter is something the Board is monitoring closely.The Company declared three interim dividends of 1.00 pence in respect of the period and one interim dividend of 1.47 pence since the year end. The aggregate payment of 4.47 pence per share represents a 0.22% increase on the 4.46 pence paid last year. The Board recognises the importance of the relatively high dividend to Shareholders and, as flagged in previous reports, decided to utilise 0.29 pence per share of our 4.15 pence per share ( 6.99 %) revenue reserves to cover the shortfall of earnings. The Board also decided to increase this year's dividend, albeit marginally, to maintain the Company's record of annual increases which has been unbroken since 2007.Looking forward, the Board expects to pay similar dividends in the current financial year to last, probably drawing modestly on our healthy reserves again. The Board believes that this policy is supported by our Shareholders whom we consult regularly and we envisage continuing in this way in the near future, utilising one of the advantages of being a closed - ended fund

[marktime1231] 09/12/2021 17:51

See EPIC and EAT.

I divested NCYF despite the high yield earlier this year, the risk of a cut is known because the board have said payments are not sustainable and will fall.

[rogerrail] 09/12/2021 16:49

Which two IT's are you referring to ?Also worth considering NCYF. 8% yeild would suggest high risk but its dividend has been reasonably consistent for over ten years.

[cwa1] 09/12/2021 16:11

Nice to see the price reasonably well bid for a change

[marktime1231] 09/12/2021 13:38

The yield at this share price is at least 6.2% so where do you get 5.44% from, as others have pointed out with the final bumper dividend the yield is more like 6.5%+.

And since when has a yield of 5.44% been an "only"?

As the chart above shows SMIF has enjoyed terrific growth in the last 18 months.

Over the long term the share price has tracked in the 90-100p range but strong inflation pushing up interest rates may dent that (and present another buying opportunity).

And yes it is monthly, cash in the bank if you are a retired income investor is very comforting.

There are reasons to invest other than growth, steady low risk high yield for example. Despite the lack of growth SMIF has consistently attracted a small premium, a sign of its good value. For further information have a look at the annual report printed today.

Or was that a rhetorical question?

There is another trust paying around 6.4% monthly which does offer the prospect of an improving dividend / NAV progress, and a trust which converts strong NAV growth in to a progressive 6% yield but not monthly. Invest in those too. Invest in SMIF for its steady regular top drawer payments.

[jaf111] 09/12/2021 08:31

Excellent yield so would expect to see some increased demand as funds seek new home after redemption of Lloyds Prefs......

[cwa1] 09/12/2021 08:25

Dividends declared during the year 6.52p

Net asset value total return for the year ended 30 September 2021, however, was
14.94% and the 6p per share dividend per annum has consistently been met. The
Portfolio Manager is confident, based on the current outlook, that this
dividend target will be maintained in the current financial year.

Superb monthly yield for the last year and a confident message on the coming one. What more can you ask?

[williamcooper104] 08/12/2021 21:37

I'm sitting on a reasonable capital gain Yield is unlevered - so with a bit of margin it's high single digits

[montyhedge] 08/12/2021 21:01

What's the case for investing here, only 5.44% yield no growth.I suppose monthly is nice.

[cwa1] 08/12/2021 16:54

Blimey, these things seem to come around every month ;-)

Re: Dividend Announcement


The Directors of TwentyFour Select Monthly Income Fund Limited have declared
that a dividend will be payable, in line with the Prospectus, representing the
regular monthly targeted dividend for the financial period ending 30 November
2021 as follows:


Ex-Dividend Date 16 December 2021
Record Date 17 December 2021
Payment Date 5 January 2022
Dividend per Share 0.50 pence (Sterling)