TwentyFour targets £200m for UK Mortgages trust launch

TwentyFour Asset Management is launching a UK Mortgages investment trust for Ben Hayward (pictured) and Douglas Charleston in a further expansion of its closed-ended range.

Investment Week can reveal the group is aiming to raise £200m through a placing and open offer on the London Stock Exchange, which is expected to close by the end of June and begin trading in July. The new product has an annual total return target of 7%-10% once fully invested, paying out quarterly dividends to shareholders, with the first year dividend expected to come in at 3p. The fund will invest in legacy mortgage portfolios with strong observable performance histories and new portfolios with robust underwriting standards. The group aims to keep leverage conservative at around 4x...