Key Highlights

  • TwentyFour Select Monthly Income Fund Ltd (LSE:SMIF) is listed on the London Stock Exchange Main Market with a Dividend Yield of 8.16%.
  • The fund pays monthly dividends of 0.5p per share, targeting at least 6p per year.
  • An additional 0.25p was paid with the March 2026 dividend, taking that payment to 0.75p.
  • Directors believe dividends for the year to 30 September 2026 are likely to exceed 6.5p.
  • Total return since inception in March 2014 reached 109.5%, or 6.32% a year, by 31 March 2026.
  • The fund regularly issues new shares to meet demand, signalling a premium or near-NAV rating.

Overview of TwentyFour Select Monthly Income Fund

TwentyFour Select Monthly Income Fund Ltd (LSE:SMIF) is a Guernsey-registered closed-ended Investment company managed by TwentyFour Asset Management. It invests in a diversified portfolio of Credit securities, focusing on less liquid instruments across the Debt spectrum that offer premium returns. Its holdings include asset-backed securities, high yield bonds, bank Capital and loans.

SMIF is one of the few UK-listed funds to pay dividends every month, which makes it popular with investors seeking regular income. The 8.16% yield reflects both monthly payments and periodic top-ups.

Latest Results

SMIF reported interim results for the six months ended 31 March 2026 on 10 June 2026. The board described another strong dividend year. Total return since inception reached 109.5% by 31 March 2026, an annualised 6.32%. The fund's commentary on the Middle East noted a no-war, no-peace stasis that continued to affect markets.

Dividend Policy

SMIF targets an annual dividend of 6p per share, paid in eleven monthly instalments of 0.5p, plus a twelfth top-up dividend that distributes any surplus income at the year end. When income is strong, the board also pays inter-year special dividends.

In April 2026, the directors declared a 0.5p regular monthly dividend for March 2026 together with an additional 0.25p, taking the payment to 0.75p, paid on 8 May 2026. The directors said that, based on their analysis, dividends for the year ending 30 September 2026 are likely to exceed 6.5p per share.

Dividend Cover and Income

SMIF's dividend is funded by portfolio income. The fund targets a portfolio yield that comfortably exceeds the 6p target, allowing top-ups. High coupons on asset-backed securities and bank capital support this. Because a significant portion of the portfolio is floating rate, income has benefited from higher interest rates.

Share Issuance

SMIF frequently issues new shares to meet investor demand, as shown by regular issue of Equity announcements throughout 2026. Issuance at or above NAV is accretive and suggests the fund trades close to or above its asset value. It also operates periodic tender offers to manage liquidity.

Manager Expertise

TwentyFour Asset Management, part of Vanguard, is a specialist fixed income manager with deep experience in asset-backed securities and bank capital. This expertise in less liquid parts of the credit market allows SMIF to earn yields above those available on mainstream bonds. The team's active approach to sector allocation and credit selection has helped the fund meet its dividend target consistently since launch in 2014.

Risks

The main risks are credit losses in a downturn, lower interest rates reducing income on floating-rate assets, and Liquidity risk in less liquid securities. Wider credit spreads could reduce NAV temporarily.

Market Sentiment

Commentary across investment platforms describes SMIF as a dependable monthly income vehicle with a long record of meeting its target. The consistent additional payments have strengthened its reputation.

How SMIF Fits an Income Portfolio

Monthly dividends make SMIF useful for investors who want to match income with regular expenses, such as retirees. Its credit focus diversifies equity-heavy income portfolios. Because it invests in specialist credit, it also offers exposure that individual investors cannot easily replicate.

Dividend Sustainability Scorecard

  • Target: 6p per year, with directors expecting more than 6.5p for FY26.
  • Payment frequency: monthly, plus top-ups.
  • Income source: high-coupon credit securities, many floating rate.
  • Track record: 6.32% annualised total return since 2014.
  • Key risk: credit downturn and falling rates.

What Investors Should Watch

Watch monthly factsheets, dividend declarations, the year-end top-up dividend after 30 September 2026, and any guidance on the next year's target.

Is the 8.16% Yield Sustainable?

SMIF's dividend looks sustainable. The fund is on track to exceed its 6p target, income is strong and it can issue new shares. LSE:SMIF suits income investors seeking monthly payments from a professionally managed credit portfolio.