Twentyfour Select Income Trust (SMIF)

[yieldhog]

Just noticed a sharp spike upwards in the SMIF share price today. There was a relatively large trade of £135k at a price of 95p.
Does anyone know of any news about the fund that might have caused the recent buying interest?

Y

[monabri]

Just noticed a sharp spike upwards in the SMIF share price today. There was a relatively large trade of £135k at a price of 95p.
Does anyone know of any news about the fund that might have caused the recent buying interest?

Y

Are you referring to the uncrossing trade figure? (if so, ignore it!)

[OllyDrod]

Are you referring to the uncrossing trade figure? (if so, ignore it!)

Would you mind explaining what an uncrossing trade is and how the process works? My go-to resource, Investopedia unhelpfully throws a blank!
- OllyDrod

[Breelander]

Are you referring to the uncrossing trade figure? (if so, ignore it!)

Would you mind explaining what an uncrossing trade is and how the process works? My go-to resource, Investopedia unhelpfully throws a blank!
- OllyDrod

It's the daily SETS auctions.....

There are three types of auctions that take place for securities traded on the SETS trading system:

07:50 – 08:00 (Opening Auction)
12:00 – 12:02 (Intra-day Auction)
16:30 – 16:35 (Closing Auction)

...As well as established the opening, mid-day, and closing price for companies listed on the London Stock Exchange, auctions promote a more orderly market.

The reason being, by freezing the order book, the Call Period helps remove volatility from the market by slowing down trading, and encouraging the market to reach a more considered level rather than moving around on individual trades....

....orders that can be matched are executed in an event referred to as an uncrossing...

https://aim-watch.com/project/lse-auctions-explained/

[OllyDrod]

Thanks Breelander - very helpful. Doesn't sound like something I need to worry about as a retail investor (correct me if I'm wrong) but good to know nonetheless.
- OllyDrod

[monabri]

Thanks Breelander - very helpful. Doesn't sound like something I need to worry about as a retail investor (correct me if I'm wrong) but good to know nonetheless.
- OllyDrod

It might have an effect..for example, you see the shareprice at close of play and decide to invest at 8:00am the next day. But before you can trade the shareprice has moved because the "professionals" have already had the auction periods to get in ahead of you.

If you search "uncrossing trade" in TLF you should find some prior discussion.

viewtopic.php?p=96622#p96622

viewtopic.php?p=225838#p225838

[yieldhog]

monabri,
Thanks for highlighting the uncrossing trades feature of the LSE system. As a buy and hold punter, that level of technical operations is not something I've come across before. Nevertheless it was quite interesting to learn about it.
As a holder of SMIF shares I'm glad to see the volume of the uncrossing process appeared to cause an upward spike in the price rather than a downward one.
Y

[richfool]

Twentyfour Income Fund (SMIF) Portfolio and market update

TwentyFour Income Fund Limited (“TFIF” or the “Company”)
(a closed-ended investment company incorporated in Guernsey with registration number 56128)
(LEI: 549300CCEV00IH2SU369)

Portfolio and market update

On 13 April 2023 the Board of TwentyFour Income Fund Limited (“TFIF” or the “Company”) announced its highest ever quarterly dividend of 4.46p which resulted in a record full year (to 31 March 2023) dividend total of 9.46p. This is an increase of 2.69p from the 6.77p dividend total paid out in the previous year. The Company’s long-term floating rate investment strategy has reaped the benefit of a year of consistent interest rate increases by the Bank of England, which contributed to the significant jump in income and was further supplemented by the investment decisions made by the Portfolio Manager.

In the Company’s financial year to 31 March 2022 the average SONIA rate was just 0.14% The average for the 2022/23 financial year jumped to 2.26%; an increase of 2.12%. As the Company’s portfolio consists of floating rate securities, all hedged to sterling, this additional 2.12% of income formed the basis of the increased dividend.

The Portfolio Manager expects to see some level of fundamental performance deterioration in the next 12 months. That said, mortgage arrears and leverage loan defaults are currently still at historically low levels and borrowers have been able to refinance for longer terms in recent years. Drivers of performance such as unemployment and house price declines are expected to remain significantly lower than during previous recessions, and well within levels for which the bonds in the portfolio have been stress tested. The Portfolio Manager’s analysis suggests that the types of ABS structures held by the Company have sufficient structural protection to deal with much greater economic stress than is expected.

The Portfolio Management team see the best value in BBB, BB and B secured assets (primarily mortgages and senior secured corporate loans) from Western European countries and have less conviction on unsecured consumer assets and Commercial Real Estate mortgage risk. Their expectation is that volatility will persist in the medium term, so they have built more flexibility into the asset portfolio and reduced gearing from the Q4 high of 10.6% to 5.4% on 31 March 2023.

Absent further negative surprises, the Portfolio Manager anticipates that credit spreads could tighten further if the current positive supply-demand situation persists. Since the beginning of 2023 the NAV of the Company has increased by 6.78%, and as of 31 March 2023 the Purchase/Book Income is 11.27%, the highest income since inception of the Company. On a mark-to-market basis the current yield is 14.96%.

https://www.investegate.co.uk/twentyfou ... 0000PA26A/

[airbus330]

Twentyfour Income Fund (SMIF) Portfolio and market update

TwentyFour Income Fund Limited (“TFIF” or the “Company”)
(a closed-ended investment company incorporated in Guernsey with registration number 56128)
(LEI: 549300CCEV00IH2SU369)

Portfolio and market update

On 13 April 2023 the Board of TwentyFour Income Fund Limited (“TFIF” or the “Company”) announced its highest ever quarterly dividend of 4.46p which resulted in a record full year (to 31 March 2023) dividend total of 9.46p. This is an increase of 2.69p from the 6.77p dividend total paid out in the previous year. The Company’s long-term floating rate investment strategy has reaped the benefit of a year of consistent interest rate increases by the Bank of England, which contributed to the significant jump in income and was further supplemented by the investment decisions made by the Portfolio Manager.

In the Company’s financial year to 31 March 2022 the average SONIA rate was just 0.14% The average for the 2022/23 financial year jumped to 2.26%; an increase of 2.12%. As the Company’s portfolio consists of floating rate securities, all hedged to sterling, this additional 2.12% of income formed the basis of the increased dividend.

The Portfolio Manager expects to see some level of fundamental performance deterioration in the next 12 months. That said, mortgage arrears and leverage loan defaults are currently still at historically low levels and borrowers have been able to refinance for longer terms in recent years. Drivers of performance such as unemployment and house price declines are expected to remain significantly lower than during previous recessions, and well within levels for which the bonds in the portfolio have been stress tested. The Portfolio Manager’s analysis suggests that the types of ABS structures held by the Company have sufficient structural protection to deal with much greater economic stress than is expected.

The Portfolio Management team see the best value in BBB, BB and B secured assets (primarily mortgages and senior secured corporate loans) from Western European countries and have less conviction on unsecured consumer assets and Commercial Real Estate mortgage risk. Their expectation is that volatility will persist in the medium term, so they have built more flexibility into the asset portfolio and reduced gearing from the Q4 high of 10.6% to 5.4% on 31 March 2023.

Absent further negative surprises, the Portfolio Manager anticipates that credit spreads could tighten further if the current positive supply-demand situation persists. Since the beginning of 2023 the NAV of the Company has increased by 6.78%, and as of 31 March 2023 the Purchase/Book Income is 11.27%, the highest income since inception of the Company. On a mark-to-market basis the current yield is 14.96%.

https://www.investegate.co.uk/twentyfou ... 0000PA26A/

This is a TFIF announcement, not a SMIF. worth reading even so.