| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 170.05 | 95 |
| Intrinsic value (DCF) | 467.16 | 435 |
| Graham-Dodd Method | 0.54 | -99 |
| Graham Formula | 21.66 | -75 |
TwentyFour Select Monthly Income Fund Limited (SMIF.L) is a Guernsey-domiciled, closed-ended fixed income mutual fund listed on the London Stock Exchange. Managed by TwentyFour Asset Management LLP, the fund specializes in less liquid fixed income instruments, including asset-backed securities, bank capital, corporate loans, high-yield bonds, and leveraged loans. Launched in 2014, SMIF.L employs a rigorous fundamental analysis approach, combining top-down macroeconomic assessments with bottom-up security selection to optimize risk-adjusted returns. The fund targets monthly income distributions, appealing to investors seeking stable cash flows in the UK and European debt markets. With a diversified portfolio across the debt spectrum, SMIF.L plays a strategic role in the financial services sector, particularly within income-focused asset management. Its focus on less liquid assets provides a niche advantage, differentiating it from traditional bond funds.
TwentyFour Select Monthly Income Fund Limited offers an attractive proposition for income-seeking investors, with a consistent dividend yield (7.38p per share) and a diversified portfolio of less liquid fixed income assets. The fund's low beta (0.53) suggests relative resilience to market volatility, appealing to risk-averse investors. However, its focus on less liquid instruments may expose it to higher credit risk and potential liquidity constraints during market stress. The absence of leverage (zero total debt) is a positive, but investors should monitor credit quality and sector concentration. The fund’s niche strategy in bank capital and structured credit could outperform in stable rate environments but may underperform in severe credit downturns.
TwentyFour Select Monthly Income Fund Limited differentiates itself through its specialized focus on less liquid fixed income assets, a segment often overlooked by larger, more liquid bond funds. Its competitive advantage lies in TwentyFour Asset Management’s expertise in structured credit and high-yield debt, allowing for active management and alpha generation in niche markets. The fund’s closed-ended structure enables it to hold less liquid assets without redemption pressure, unlike open-ended peers. However, its smaller scale (market cap ~£242.6M) limits economies of scale compared to larger fixed income funds. Competitors with broader mandates may offer greater diversification, but SMIF.L’s concentrated strategy provides higher yield potential. Its performance is closely tied to the credit cycle, requiring robust risk management to navigate defaults or spread widening. The fund’s monthly income distribution is a key selling point, though competitors with similar strategies (e.g., other UK-focused income funds) may offer lower fees or more established track records.