TwentyFour Income Fund fundraising as it eyes ‘significant opportunities’ in ABS

TwentyFour Income Fund (TFIF) has published a prospectus to raise further equity capital.

The FTSE-250 listed investment company predominantly focusses on asset-backed securities (ABS) in the UK and Europe.

The open offer of new ordinary shares will be priced at up to a two per cent premium to the company’s net asset value (NAV) to be dated on 21 October 2025. The open offer is on the basis of one new ordinary share for every five existing ordinary shares held on the date.

“Further to the growth of the asset class, as outlined in the prospectus published today, the company’s portfolio manager sees significant investment opportunities in the ABS sector, both within its existing investment remit and beyond,” said Bronwyn Curtis, TFIF’s chair.

Read more: TwentyFour AM launches new ABF fund

Aza Teeuwen, partner and portfolio manager at TwentyFour added that the growth of the ABS market, with increased issuance as banks have returned to traditional forms of funding, has improved the investment universe in the fund’s core markets and presented additional opportunities globally.

TFIF is set to expand its investment horizon to also include the US collateralised loan obligation (CLO) market and the Australian residential mortgage-backed security (RMBS) sector. The rationale for that is to enhance portfolio diversification and to continue offering attractive yields.

To this purpose, TFIF’s prospectus also contains several proposed amendments to the company’s investment policy, which will need to be voted on at the company’s 2025 extraordinary general meeting.

In July, TFIF posted a record full-year dividend of 11.07p, ahead of the 8p target and equating to a 10 per cent yield.