# Two Alternative Income Funds

> Two UK income funds target different debt strategies for returns.
- Title: Two Alternative Income Funds · MoneyWeek | Shortify
- Summary: Two UK income funds target different debt strategies for returns. TwentyFour Income Fund and TwentyFour Select Monthly Income Fund offer distinct debt…
- Keywords: twentyfour income fund, twentyfour select monthly income fund, lse, tfif, smif, asset-backed securities, at1 capital securities, corporate loans, mortgages, floating-rate debt, interest rates, dividend
- Source: MoneyWeek — https://moneyweek.com/investments/funds/two-alternative-income-funds
- Published: 2026-11-02T08:30:00+00:00
- Read time: 1 min
- Topics: twentyfour income fund, twentyfour select monthly income fund, lse, tfif, smif, asset-backed securities, at1 capital securities, corporate loans, mortgages, floating-rate debt, interest rates, dividend
## TwentyFour Income Fund
TwentyFour Income Fund invests in diversified debt securities with floating rates.

> The underlying assets are floating-rate, ie, payments vary with changes in interest rates.
## Fund Structure
The fund holds 15% investment grade, 52% sub-investment grade, and 33% unrated debt.
## Target Returns
The fund aims for 6%-9% annual returns with a minimum 8p quarterly dividend.
## Performance
The fund has averaged just under 8% annual net asset value returns since 2013.
## TwentyFour Select Monthly Income Fund
TwentyFour Select Monthly Income Fund invests in broader debt with higher yield potential.

> The aim of taking advantage of the "premium yields available in less liquid securities across the global credit markets".
## Portfolio Composition
The fund holds AT1 securities, ABS, and insurer debt with 40% in AT1 securities.
## Rating Details
The fund's portfolio includes BBB-rated securities with 7% unrated debt.
## Rate Sensitivity
The fund's long-term debt underperforms when interest rates rise.
## Performance Impact
The fund's debt has fallen 10% in 2026 and 35% since 2022 due to rising rates.
## Key takeaway

TwentyFour Income Fund and TwentyFour Select Monthly Income Fund offer distinct debt strategies with varying returns and risks.