Financial advice can't be given on these boards ;-) but as I understand it, you've cracked it.
If the fund was at a significant discount, it would be worth considering, particularly as no sales costs are due. I can think of quite a few investment trusts that I hold where I'd bite their hand off for such an offer.
The fact that they have these periodic tender offers probably is a factor in SMIF not trading on a discount, unlike some investment trusts |
Hi PaulBoz.
This isn't really aimed at retail investors as you can just sell now at the price you see.
This is aimed at the big institutions that want to off load hundreds of thousands quickly without dragging the share price down. It also keeps the discount tight and you don't get that drip drip falling share price going on for months as someone unloads their holding. |
"TwentyFour Select Monthly Income Fund has announced a quarterly tender offer through which you can sell, or tender, up to 20% of your shares at a fixed price with no dealing charges."Any comments on this? My understanding (almost certainly wrong!) is that we can sell 20% of our shares at a to-be-determined NAV price but that is currently below the current share price. This doesn't look like a good offer to me! |
EWI, HGT, IBT, Blue Whale growth and Ranmore global equity. Of these I hold IBT and SMIF. Ranmore looks to have a good record and of interest if like me you are investing for income. |
Which begs the question what are the other five?
Good to read something positive |
Small cameo piece on SMIF by Martin Gamble pp26-27 Shares Mag. 9 January in the feature "Six of the Best Funds for 2025" 'fwiw'. |
An earlier poster (the previous tender) said the tenders are there to allow more institutional (or certainly large) investor a managed opportunity to sell without disrupting the market. I believe this to be true and as far as this investment is concerned I'll just cry all the way to the bank with my divvies |
Not major interest in the tender offer - hardly surprising as it's offering less than the current SP |
Continuing the off topic theme of dyi platforms, AJBell pounded by a downgrade today from Citi who accuse it of over-indulgent profit from net interest on client balances. Ahem!!
Which makes AJBell vulnerable to cost cutting from key competitors ... do they mean HL to be owned by CVC or II now part of Aberdeen? They are all at the net interest game and charges for services are so low everywhere there is not much to cut. Citi fail to observe AJBell is also ripe for a takeover no doubt at a premium.
Meanwhile SMIF continues to expand, hoping for 90p + some this year, but I wonder if it can continue to find super surplus income above a 7p dividend? |
The link to this presentation is here |
Email from Investor-Meet-Company just appeared in my inbox;
"Recording and Q&A now available – TWENTYFOUR SELECT MONTHLY INCOME FUND LIMITED : Full year results" |
yes very respectable
NAV per share increased 10.95% to 83.70 pence (2023: 75.44 pence)
The NAV total return per share was 22.56% (2023: 17.54%)
Total annual dividend for the year of 7.38 pence per share, ahead of the 6 pence target (2023: 7.37 pence per share)
Net assets increased from £181.7m in 2023 to £219.8m over the period
Also very helpful being able to raise money at a premium to NAV to be able to invest even harder next year. |
Super annual report. Continuing to grow at a premium with scale bringing trading opportunities, favourable outlook, and SMIF portfolio "credit quality at the highest it has ever been". Yielding 8.5% paid monthly, an income investor's favourite. |
Insanely correct! |
Added here today. I'm a nobody in Canada who knows little about the UK investment market but I like the monthly dividend. Am I stupid? |
 SMIF holding up strongly never mind the gilt market behaving, a premium 1 million issue at 85.15p on Friday shows there is continuing demand from serious investors. The asset team must be busy trying to find fresh debt opportunities to keep enhancing the outlook.
Amused to read an FT interview with foul-mouthed HL founder Peter Hargreaves last week in which he admitted promoting the Woodford fund was a mistake (not of his making of course). Defended HLs decision to keep pushing the fund to its customers with the idea that if they had dropped it the collapse would have been ruinous. So it deliberately kept selling us what it knew to be a dog? Curiously the FT didn't mention HL is facing £200M+ compensation claims. Nor did the FT observe as they ought to have done, when Hargreaves tipped the Blue Whale growth fund, that he is the dominant founding investor and Chairman.
The clue as to what lies head for HL under CVC ownership was hinted at in the article. Hargreaves said management had lost its way on both cost control and profit margin, and were now losing the marketing battle which is how it rose to No 1. Watch out for HL finding even more tricky ways to make money from us. And smoochy ads persuading us to trust them. |
You're getting paid for selling out of the money volatility mostly on the European financial sector What that means is that in normal type markets it's all good but if things get hairy - think GFC/euro debt crises then you're going to take big losses Have a look at the share price movements around the Credit Swiss blow up and you'll get a feel for the risk |
...Thanks. I was aware that they invest in a range of high interest financial instruments. I just don't know what these things are (or how risky they are). But then again I don't really need to know. It seems to be working for them.
But how sustainable is it? What is the potential downside? |
hxxps://www.twentyfouram.com/document/74888876-c600-4232-a2cc-7070ee4b3ad2/Factsheet_20240930_EN_TwentyFour-Select-Monthly-Income-Fund.pdf |
hxxps://www.twentyfouram.com/view/GG00BJVDZ946/twentyfour-select-monthly-income-fund |
I took a starter position here a few months back and it all seems to be going well. Looking to add more, but I'm still not sure what they actually do. Can anyone explain the business model? |
Dividend festival day. Yippee.
Who is tempted by UK 10-year gilts paying 4.5% when you can get 8.5% here with not much risk and long term positive price outlook? Dull wasteful pension fund dinosaurs. How did our investment landscape become one where timid certain poor performance trumps long term real returns, fortune still favours the brave? And they take 1-2% in fees all the while.
A revolution in the pension industry is overdue, there has to be incentive or compulsion to deliver and share performance which does better than the bare minimum of covering actuarial liabilities. That will fire the starting gun on a return to pensions schemes pursuing more adventurous more rewarding investment in equities, ventures, infrastructure debt etc. |
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