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TwentyFour Income Fund - Increase in Minimum Annual Dividend

TwentyFour Income Fund Limited (“TFIF” or the “Company”)

(a closed-ended investment company incorporated in Guernsey with registration number 56128)

(LEI: 549300CCEV00IH2SU369)

Further increase in minimum annual dividend target to 8p per Ordinary Share

The Board of Directors of TwentyFour Income Fund (“TFIF” or the “Company”) is pleased to announce a further increase in the Company’s minimum annual dividend target to 8p per share.

In September 2022, the Company announced that its minimum annual dividend target would increase from 6p to 7p per share. Today, the Company announces a further increase it its minimum annual dividend target from 7p to 8p per share with minimum quarterly dividends increasing from 1.75p per share to 2p per share. This change is effective immediately and the Company will continue to distribute all its annual net income to shareholders through a final balancing dividend.

As at 31 January 2022 (and before the most recent Bank of England base rate increase of 0.5%), the Company’s portfolio had a Forward Yield to Maturity of 15.22%, a Mark-to-Market Yield of 15.71% and a Purchase Yield of 10.14%.

At IPO in March 2013, the Company set a target annual net total return on the Company’s NAV of between 6% and 9% per annum, which included a target dividend of 6p per share. The target dividend has been exceeded in each year since the Company’s IPO through the payment of three quarterly dividends of 1.5p per share and a final dividend of 1.5p per share plus any excess returns in respect of a financial year. The average annual dividend since IPO has been 6.7 per share*.

Aza Teeuwen, Portfolio Manager for TFIF, commented: “Since the previous dividend increase in September 2022, interest rates have continued to rise. As a floating rate fund the increases in interest rates, which continue to be coupled with wider credit spreads despite a moderate recovery in the early part of this year, continue to increase the income that the fund’s assets are generating. Having risen by almost 4% since December 2021, the Bank of England base rate may now be closer to its peak for the medium term. However, this further prudent increase in TFIF’s quarterly dividend payment is warranted to reflect the increased income and also to help distribute the higher returns more evenly throughout the year”.

Bronwyn Curtis, Chair of TFIF, commented: “TFIF has continued to exceed the Company’s original annual dividend target of 6p per share since IPO in 2013 which is a fantastic achievement given the prolonged low interest rate environment. Now that rates have risen, we are pleased to be able to pass on the benefits of our floating rate exposure and strong cashflows to TFIF shareholders.”

For further information, please contact:

Numis Securities Limited:
Hugh Jonathan +44 (0)20 7260 1000
Matt Goss

TwentyFour Income Fund Limited:
John Magrath +44 (0)20 7015 8900
Alistair Wilson

*for 9 full years – not including the first 3 quarterly payments for the current financial year