Annual Report and Audited Financial Statements · 2019. 12. 30. · TwentyFour Global Investment...

TwentyFour Global Investment Funds p.l.c.Annual Report and Audited Financial Statements

For the financial year ended 31 December 2020

Contents Page

TwentyFour Global Investment Funds p.l.c.Annual Report and Audited Financial StatementsFor the financial year ended 31 December 2020

Management and Administration 1

Report of the Directors 2

Report of the Depositary to the Shareholders 9

Investment Manager’s Report 10

Independent Auditors’ Report to the Shareholders of TwentyFour Global Investment Funds p.l.c. 13

Statement of Financial Position 16

Statement of Comprehensive Income 20

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 22

Statement of Cash Flows 24

Notes to the Financial Statements 28

Schedule of Investments 51

Schedule of Significant Portfolio Movements (unaudited) 58

Supplemental Information (unaudited) 60


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Legal AdvisersMaples and Calder (Ireland) LLP 75 St. Stephen's Green Dublin 2 D02 PR50 Ireland

Registered Office of the Company32 Molesworth Street Dublin 2 D02 Y512Ireland

Company SecretaryMFD Secretaries Limited 32 Molesworth Street Dublin 2 D02 Y512Ireland

DepositaryNorthern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend StreetDublin 2D02 R156Ireland

Management and Administration

DirectorsBronwyn Wright (Irish)*Cormac Byrne (Irish)** (resigned on 31 March 2021)Helen Howell (British)**Brian Fennessy (Irish)* (appointed on 31 March 2021)

Investment Manager, Distributor and UK Facilities AgentTwentyFour Asset Management LLP 8th Floor The Monument Building 11 Monument Street London EC3R 8AF United Kingdom

Administrator, Registrar and Transfer Agent Northern Trust International Fund Administration Services (Ireland) Limited Georges Court 54-62 Townsend StreetDublin 2D02 R156Ireland

Independent AuditorPricewaterhouseCoopers One Spencer Dock North Wall Quay Dublin 1 D01 X9R7Ireland

Registered number: 530181

* Non-executive independent director** Non-executive director


Report of the Directors

2

The Directors present their Annual Report and Audited Financial Statements for the financial year ended 31 December 2020.

Background of the Company

TwentyFour Global Investment Funds p.l.c. (the “Company”) is an open-ended umbrella investment company with variable capital and segregated liability between funds, incorporated in Ireland on 12 July 2013 under the Irish Companies Act 2014 (“the Companies Act 2014”) (as amended) with registration number 530181. The Company is authorised by the Central Bank of Ireland (the “Central Bank”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (“the UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (the "Central Bank UCITS Regulations").

The Company is structured as an umbrella fund which may consist of different funds, each comprising one or more classes of shares. As at the date of this annual report, the Company has one fund in operation, the TwentyFour Corporate Bond Fund (the “Fund’’) that launched on 15 January 2015.

Investment objective & policy

The investment objective of the Fund is to exceed the median return of the Investment Association (“IA”) £ Corporate Bond Sector over the medium to long term based on a combination of income and capital.

The Fund will seek to achieve its investment objective by investing primarily in investment grade GBP denominated bonds, or bonds denominated in currencies other than GBP but hedged to GBP, within the specifications set out for the IA £ Corporate Bond Sector.

While the Fund will primarily invest in investment grade bonds it may also invest a portion of its portfolio (which will not exceed 20% of the Net Asset Value of the Fund) in high yield issues (meaning such bonds would have a relatively higher risk of default and would have a lower credit rating than investment grade bonds) where, in the Investment Manager's opinion, the risk of investing in such issues is appropriate when balanced against the possible return.

The Fund may invest in fixed or floating rate bonds which may be rated or unrated.

The securities shall be listed and/or traded on the exchanges and markets set out in Appendix II of the Prospectus although up to 10% of the Net Asset Value of the Fund may be invested in unlisted securities.

As a result of its investment objective the Fund's investments will be primarily focused on the United Kingdom (“UK”) however, from time to time, it is possible that a portion of the assets may be invested in securities from a particular geographic region outside of the UK (such as Dutch or German securities) where such exposure would assist the Investment Manager in meeting the investment objective or diversifying risk.

Statement of Directors’ Responsibilities

The Directors are responsible for preparing the Annual Report and Audited Financial Statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”).

Irish Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of its profit or loss for that year.

In preparing those financial statements, the Directors are required to:

● select suitable accounting policies and then apply them consistently;

● make judgements and estimates that are reasonable and prudent;

● state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards; and

● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.


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Report of the Directors (Continued)

Statement of Directors’ Responsibilities (Continued)

The Directors are responsible for ensuring that the Company keeps adequate accounting records which correctly explain and record the transactions of the Company, enable at any time the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy, to ensure that the financial statements and Directors’ Report comply with the Companies Act 2014, the UCITS Regulations and the Central Bank UCITS Regulations and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The accounting records are maintained by Northern Trust International Fund Administration Services (Ireland) Limited (the "Administrator") at its offices at Georges Court, 54-62 Townsend Street, Dublin 2, D02 R156, Ireland.

Under the UCITS Regulations, the Directors have entrusted the assets of the Company to the Depositary, Northern Trust Fiduciary Services (Ireland) Limited (the “Depositary”). for safekeeping. In carrying out this duty, the Directors have delegated deposit of the Company’s assets to the Depositary.

Activities and business review

A detailed review of the Company’s activities for the financial year ended to 31 December 2020 is included in the Investment Manager’s report on page 10.

Results

The results of operations for the year are set out in the Statement of Comprehensive Income on page 20. The Statement of Comprehensive Income also includes distributions declared in relation to the year, further details of which are set out in note 12 to the financial statements.

Risk Management Objectives and Policies

The securities and instruments in which the Company invests are subject to normal market fluctuations and other risks inherent in investing in such investments, and there can be no assurance that any appreciation in value will occur. There can be no assurance that the Fund will achieve its investment objective. The value of shares may rise or fall, as the capital value of the securities or instruments in which the Fund invest may fluctuate. The investment income of the Company is based on the income earned on the securities or instruments it holds, less expenses incurred. Therefore, the Company’s investment income may be expected to fluctuate in response to changes in such expenses or income. A more detailed analysis of some of the risks facing the Company, together with the associated risk management objectives and policies, is included in note 3 to the financial statements.

Directors

Bronwyn Wright (Irish)* Cormac Byrne (Irish)** (resigned on 31 March 2021)Helen Howell (British)**Brian Fennessy (Irish)* (appointed on 31 March 2021)

* Non-executive independent director** Non-executive director

Relevant Audit Information

The Directors believe that they have taken all steps necessary to make themselves aware of any relevant audit information and have established that the Company’s statutory auditors are aware of that information. In so far as they are aware, there is no relevant audit information of which the Company’s statutory auditors are unaware.


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Directors’ Compliance Statement

The Directors acknowledge that they are responsible for securing the Company’s compliance with its relevant obligations specified in Section 225 (3) of the Companies Act 2014. The Directors confirm that:

● a compliance policy statement has been drawn up setting out the Company’s policies with regard to such compliance;

● appropriate arrangements and structures that, in their opinion, are designed to secure material compliance with theCompany’s relevant obligations, have been put in place; and

● a review has been conducted, during the financial year, of the arrangements and structures that have been put in placeto secure the Company’s compliance with its relevant obligations.

Audit Committee Statement

The Directors acknowledge that they are required, under Section 167 of the Companies Act, 2014 to consider the establishment of an audit committee. The Directors believe that there is no requirement to form an audit committee as:

● the Board has three non-executive Directors, one of whom is independent;

● the Company complies with the provisions of the Irish Funds Corporate Governance Code (the “IF Code”);

● the Directors have delegated the day to day investment management and administration of the Company to TwentyFour Asset Management LLP (the “Investment Manager”) and to the Administrator respectively; and

● the Directors have also appointed Northern Trust Fiduciary Services (Ireland) Limited as Depositary of the Company.

Remuneration Code

The UCITS V provisions, which became effective on 18 March 2016, require management companies to establish and apply remuneration policies and practices that promote sound and effective risk management, and do not encourage risk taking which is inconsistent with the risk profile of the UCITS. Further details of the Company’s remuneration policy are disclosed on page 58.

Transaction Involving Directors

Except as disclosed in note 5 to the financial statements, at the reporting date, neither the Directors nor any associated person have any beneficial interest in the share capital of the Company or held any options in respect of such capital.

Corporate Governance Statement

The Directors have reviewed and assessed the measures included in the IF Code and consider its corporate governance practices and procedures since the adoption of the IF Code as consistent therewith.

The Company is subject to corporate governance practices imposed by:

(i) The Memorandum and Articles of Association which are available for inspection at the registered office of theCompany at 32 Molesworth Street, Dublin 2, D02 Y512, Ireland.

(ii) The Central Bank in their UCITS Regulations which can be obtained from the Central Bank’s website at: http://www.centralbank.ie/regulation/industry-sectors/funds/ucits/Pages/default.aspx

(iii) Irish Companies Act 2014 (including amendments by the Companies (Accounting) Act 2017).

The Fund has complied with the amendments for Companies Act 2017 for the year just ended.

Internal Control and Risk Management Systems in Relation to Financial Reporting

The Directors are responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.



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The Directors have procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including the production of annual financial statements and half-yearly financial statements. The annual financial statements of the Company are required to be approved by the Directors and the annual and half-yearly financial statements of the Company are required to be filed with the Central Bank. The statutory financial statements are required to be audited by independent auditors who report annually to the Directors on their findings.

The Directors evaluate and discuss significant accounting and reporting issues as the need arises.

The Administrator is appointed to maintain adequate accounting records of the Company which are maintained by the Administrator at Georges Court, 54-62 Townsend Street, Dublin 2, Ireland. The Administrator is authorised and regulated by the Central Bank and must comply with the rules imposed by the Central Bank. The financial statements are prepared by the Administrator in compliance with IFRS as adopted by the EU. The Administrator uses various internal controls and checklists to ensure that the financial statements include complete and appropriate disclosures required under IFRS as adopted by the EU and relevant legislation. In addition, from time to time the Directors also examine and evaluate the Administrator’s financial accounting and reporting routines and monitors and evaluates the external auditors’ performance, qualifications and independence. As part of the review procedures the Directors receive reports on the audit process.

Shareholder Meetings

The convening and conduct of shareholders’ meetings are governed by the Articles of Association of the Company and the Companies Act 2014. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Directors are required to convene an annual general meeting of the Company within eighteen months of incorporation and within fifteen months of the date of the previous annual general meeting thereafter.

Shareholders representing not less than one tenth of the paid up share capital of the Company may also request the Directors to convene a shareholders’ meeting. Not less than twenty one days’ notice of every annual general meeting and any meeting convened for the passing of a special resolution must be given to shareholders and fourteen days’ notice must be given in the case of any other general meeting unless the auditors of the Company and all the shareholders of the Company entitled to attendand vote agree to shorter notice.

Two members present either in person or by proxy constitute a quorum at a general meeting provided that the quorum for a general meeting convened to consider any alteration to the class rights of shares is two shareholders holding or representing by proxy at least one third of the issued shares of the relevant Fund or class. Every holder of participating shares or non- participating shares present in person or by proxy who votes on a show of hands is entitled to one vote. On a poll, every holder of participating shares present in person or by proxy is entitled to one vote in respect of each share held by him and every holder of non-participating shares is entitled to one vote in respect of all non-participating shares held by him. The chairman of a general meeting of the Company or at least two members present in person or by proxy or any holder or holders of participating shares present in person or by proxy representing at least one tenth of the shares in issue having the right to vote at such meeting may demand a poll.

Shareholders may resolve to sanction an ordinary resolution or special resolution at a shareholders’ meeting. An ordinary resolution of the Company or of the shareholders of a particular Fund or class requires a simple majority of the votes cast by the shareholders voting in person or by proxy at the meeting at which the resolution is proposed. A special resolution of the Company or of the shareholders of a particular Fund or class requires a majority of not less than 75% of the shareholders present in person or by proxy and voting in a general meeting in order to pass a special resolution including a resolution to amend the Articles of Association.

Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the number of Directors may not be less than two. Currently the Board of Directors is composed of three Directors being those listed in the Management and Administration section in these financial statements.

A Director may, at any time summon a meeting of the Directors. Questions arising at any meeting of the Directors are determined by a majority of votes. In the case of an equality of votes, the chairman has a second or casting vote. The quorum necessary for the transaction of business at a meeting of the Directors is two.

Internal Control and Risk Management Systems in Relation to Financial Reporting (Continued)



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Transactions with Connected Persons

Any transaction carried out with the Company by a management company or Depositary to the Company, the delegates or sub- delegates of the management company or Depositary, and any associated or group of such a management company, depositary, delegate or sub-delegate (“connected persons”) must be carried out as if negotiated at arm’s length. Transactions must be in the best interests of the shareholders.

The Directors are satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in Regulation 43(1) of the Central Bank UCITS Regulations are applied to all transactions with connected persons, and are satisfied that transactions with connected persons entered into during the year complied with the obligations set out in Regulation 43(1) of the Central Bank UCITS Regulations.

Cyber Security Risk

Cyber security breaches may occur allowing an unauthorised party to gain access to assets of the Fund, Shareholder data, or proprietary information, or may cause the Platform, the Investment Manager, the Distributor, the Administrator or the Depositary to suffer data corruption or lose operational functionality.

The Fund may be affected by intentional cyber security breaches which include unauthorised access to systems, networks, or devices (such as through “hacking” activity); infection from computer viruses or other malicious software code; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. In addition, unintentional incidents can occur, such as the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws). A cyber security breach could result in the loss or theft of Shareholder data or funds, the inability to access electronic systems, loss or theft of proprietary information or corporate data, physical damage to a computer or network system, or costs associated with system repairs.

Such incidents could cause the Company, the Investment Manager, the Distributor, the Administrator, the Depositary, or other service providers to incur regulatory penalties, reputational damage, additional compliance costs, or financial loss. Consequently, Shareholders may lose some or all of their invested capital. In addition, such incidents could affect issuers in which a Fund invests, and thereby cause a Fund’s investments to lose value, as a result of which investors, including the relevant Fund and its Shareholders, could potentially lose all or a portion of their investment with that issuer.

Common Reporting Standard (“CRS”) Data Protection Information Notice

The Fund hereby provides the following data protection information notice to all Shareholders in the Fund either as at 31 December 2015 or at any point of time since this date.

For the avoidance of doubt, this notice applies equally to any shareholders that have ceased to hold shares in the Fund since January 1, 2016. Furthermore, it should be noted that this notice may be applicable to Controlling Persons of certain shareholders. The Fund hereby confirm that they intend to take such steps as may be required to satisfy any obligations imposed by (i) the Organisation for Economic Co-operation and Development’s (“OECD’s”) Standard for Automatic Exchange of Financial Account Information in Tax Matters (“the Standard”), which therein contains the CRS, as applied in Ireland by means of the relevant international legal framework and Irish tax legislation and (ii) EU Council Directive 2014/107/EU, amending Directive 2011/16/EU as regards mandatory automatic exchange information in the field of taxation (“DAC2”), as applied in Ireland by means of the relevant Irish tax legislation, so as to ensure compliance or deemed compliance (as the case may be) with the Standard/CRS and the DAC2 from 1 January 2016.

In this regard, the Company on behalf of the Fund is obliged under Section 891F and Section 891G of the Irish Taxes Consolidation Act, 1997 (as amended) and regulations made pursuant to those sections to collect certain information about each shareholder’s tax arrangements (and also collect information in relation to relevant Controlling Persons of specific Shareholders).

In certain circumstances, the Company on behalf of the Fund may be legally obliged to share this information and other financial information with respect to a shareholder’s interests in the Fund with the Irish Revenue Commissioners (and, in particular situations, also share information in relation to relevant Controlling Persons of specific Shareholders). In turn, and to the extent the account has been identified as a Reportable Account, the Irish Revenue Commissioners will exchange this information with the country of residence of the Reportable Person(s) in respect of that Reportable Account.



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Common Reporting Standard (“CRS”) Data Protection Information Notice (Continued)

In particular, information that may be reported in respect of a shareholder (and relevant Controlling Persons, if applicable) includes name, address, date of birth, place of birth, account number, account balance or value at year end (or, if the account was closed during such year, the balance or value at the date of closure of the account), any payments (including redemption and dividend/interest payments) made with respect to the account during the calendar year, tax residency(ies) and tax identification number(s).

Significant events during the year

Brexit

In a referendum held on 23 June 2016, the electorate of the United Kingdom (“UK”) resolved to leave the European Union (“EU”). The result led to political instability and economic uncertainty, volatility in the financial markets of the UK and more broadly across Europe and a decline in the value of the Sterling (“GBP”). The UK officially left the EU on 31 January 2020 but remained subject to EU regulations during an agreed transitionary phase until 31 December 2020. The UK Brexit transition period ended on 31 December 2020 with new rules applying from 1 January 2021. With a free trade agreement reached, the associated uncertainties have reduced substantially. However there remain a number of uncertainties in connection with the UK’s relationship with the EU such as regulation and equivalence decisions on financial services. Until the terms of the UK’s future relationship with the EU are clearer, it is not possible to determine the full impact that the UK’s departure and/or any related matters may have on the Fund and its investments. The Fund entered into the Temporary Permissions Regime in February 2019.

COVID-19

Since the start of January 2020, global financial markets have been monitoring and reacting to the novel coronavirus (COVID-19). The eventual impact on the global economy and markets will largely depend upon how quickly legalisation and guidance constraining the activities of consumers and businesses is removed and the size and persistence of government and central bank stimulus. The Company’s Board of Directors continues to monitor this situation closely.

Investors should be aware of the liquidity risk presented by this global pandemic. While market functioning has improved almost to pre-crisis normality, there is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Fund’s liquidity risk is managed by the Investment Manager in accordance with policies and procedures in place. The Investment Manager will normally keep an allocation of cash to meet pending liabilities that may arise from time to time. The Company’s expected cash flows on these instruments do not vary significantly from this analysis, except for net assets attributable to holders of redeemable participating shares. Typically, shares are held by shareholders on a medium or long-term basis. During extreme or unusual market conditions redemption requests received may need to be remitted over several settlement periods.

A large proportion of issuers of the Fund’s assets are taking unprecedented shocks to their revenue with the current situation, but were in viable business models before the COVID-19 crisis, and are now benefitting from the government and central banks supporting them directly and via the banking system. Banks have been allowed to access their counter cyclical buffers, giving them more flexibility on capital, whilst the Bank of England is extending the assets which it will lend against, delivering more liquidity to the banking system and through this to the rest of the economy. Beyond the financial sector the Bank of England has offered unlimited commercial paper to investment grade companies. This helps underwrite the vast majority of the Fund’s holdings, as the exposure to high yield issuers is very low. Investment grade companies have been granted the solvency to ensure that their business models will continue to be viable throughout the crisis and when normal business activity has resumed. The Bank of England has also announced that it will expand its corporate bond purchase program, which involves the Bank buying investment grade bonds issued by companies operating in the UK. This will support a number of the Fund’s holdings directly, those which are eligible for the programme and also the rest, by driving spreads generally lower through the addition of a large buyer in the market. These actions also generated enough confidence to reopen capital markets to issuers and a buoyant primary market has allowed borrowers access any cash they need.

TwentyFour Global Investment Funds p.l.c.

Annual Report and Audited Financial Statements


8

Brian Fennessy


Significant events during the year (continued

COVID-19 (continued)

Volatile markets tend to involve a pick-up in investor inflows and outflows as some clients seek safe havens or alter asset allocations. The Fund came into this year with an above average level of liquidity – 18% between cash, gilts and AAA rated supranational bonds. This gave the PMs additional comfort in the Fund’s ability to meet any redemption requests

immediately. To maintain that security the PMs sold some corporate bond positions as outflows have arisen. However management have been pleased to see that net redemptions have been limited and those driven purely by rebalancing.

The Prospectus for TwentyFour Global Investment Funds plc and the Supplement for TwentyFour Corporate Bond Fund were

updated on 10 June 2020.

There have been no other events during the year which require disclosure in these financial statements.

Subsequent events

Distributions to shareholders of distribution shares were paid on 29 January 2021.

The supplement for the sub-fund was updated on 9 March 2021, exclusively for Sustainable Finance Disclosure Regulation (SFDR) compliance reasons.

There were net redemptions of £556.2m which represents 30.6% of the Fund during March 2021. The largest outflow occurred the week of 24 March 2021 with £53.4m redeemed. Year-to-date 2021 net outflows stand at -£405.6m.

Following the Central Bank review of the implementation of Consultation Paper 86 (“CP86”) and the introduction of additional substance requirements for self-managed investment companies (“SMIC”) such as the Company, the Board of Directors took the decision to seek a UCITS management company to take on the required regulatory functions and to move the Company away from its status as a SMIC. The Board of Directors conducted a search for an appropriate service provider and, following extensive due diligence, decided to appoint KBA Consulting Management Limited as UCITS management company for the Company, subject to regulatory approval. The Board of Directors approved the appointment in principle on 31 March 2021 and the necessary legal and regulatory work is now being undertaken. The Board of Directors expects the process to be completed later in 2021.

Brian Fennessy was appointed as a Director on 31 March 2021.

Cormac Byrne resigned as a Director on 31 March 2021.

There have been no other significant events affecting the Company since 31 December 2020 that require disclosure in these financial statements.

Auditors

In accordance with Section 383 (2) of the Companies Act 2014, the Auditors PricewaterhouseCoopers, have indicated their willingness to continue in office.

On behalf of the Board

Bronwyn Wright

8 April 2021



For the financial year ended 31 December 2020Report of the Depositary to the Shareholders

9

We, Northern Trust Fiduciary Services (Ireland) Limited, appointed Depositary to TwentyFour Global Investment Funds p.l.c ("the Company") provide this report solely in favour of the shareholders of the Company for the year ended 31 December 2020 ("'the Annual Accounting Period").

This report is provided in accordance with the UCITS Regulations - European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (SI No 352 of 2011), as amended, which implemented Directive 2009/65/EU into Irish Law ("the Regulations"). We do not, in the provision of this report, accept nor assume responsibility for any other purpose or person to whom this report is shown.

In accordance with our Depositary obligation as provided for under the Regulations, we have enquired into the conduct of the

Company for this Annual Accounting Period and we hereby report thereon to the shareholders of the Company as follows;

We are of the opinion that the Company has been managed during the Annual Accounting Period, in all material respects:

(i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the

constitutional documents and by the Regulations; and

(ii) otherwise in accordance with the provisions of the constitutional documents and the Regulations.

For and on behalf of

Northern Trust Fiduciary Services (Ireland) Limited Georges Court,

54-62 Townsend Street

Dublin 2

D02 R156

Ireland

8 April 2021


Investment Manager’s Report

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2020 was a year like no other as COVID-19 brought most major economies to a standstill and threw financial markets into turmoil, with the speed and magnitude of the sell-off on a scale not even seen during the global financial crisis. However, the unprecedented intervention from central banks and governments spurred a strong recovery in asset prices with high quality assets leading the charge.

Market Commentary

News of a new coronavirus spreading in China was first relayed in early 2020. It was initially compared to SARS which had a limited localised impact on financial markets and investors shrugged it off. Large quarantines were put in place in China but even as infections were reported internationally and beyond Asia, the S&P 500 went on to make new highs. By February regions of Italy were being placed in lockdown and the market began to grasp the supply chain implications of how governments were responding to its spread. But throughout February, market price action was orderly. Risk assets sold off but expectations of stimulus seemed to restrain investors from panic. Absolute numbers of counted infections and deaths were still low, however exponential growth does not take long to overwhelm any system.

In March, as the magnitude of people needing treatment was overwhelming the Italian health system and the number of deaths soared against a backdrop of COVID-19 spreading in nearly every country on the planet, governments began taking unprecedented action. Entire countries were placed into lockdown with all non-essential activity effectively outlawed. Those not involved in transport, food, medicine or the provision of other critical infrastructure were told to stay indoors. The implications of entire industries seeing their revenues immediately cut to zero finally shocked markets.

Even in the context of historical market crashes, Q1 2020 – or more specifically March 2020 – was unparalleled. Correlations that bond investors normally take for granted broke down. Credit markets were frozen as investors scrambled for cash, causing bond prices to fall regardless of quality or maturity in the fastest sell-off that the managers can ever recall.

Central banks were very quick to react with most major institutions responding with emergency measures. Unfortunately, this did little to alleviate concerns and risk assets continued to fall with expectations of fiscal stimulus increasing. With risk-on assets continuing to slide rapidly lower despite the various and vast measures announced, across the globe major economies announced very large scale supportive packages, with aid for businesses, tax breaks and support for the unemployed. The central banks continued with rate cuts as well as almost unlimited liquidity packages to assist markets and encourage the banks to keep lending. The IMF also signalled it was ready with $1tr to support struggling countries.

The strong technical support continued unabated through May, with credit spreads tightening across all sectors. With the level of new infections decreasing, Governments across Europe, and in the US, began to relax the isolation controls to gradually open up the economy, adding to the positive market tone. June was a more balanced month for markets, with the rally continuing in the early part of the month before running out of steam in the second half as heavy new issuance and an increase in COVID-19 cases (particularly in parts of the US, which saw a record 47,000 new cases on the last day of the month) dampened investor sentiment.

Q3 began with geopolitical tensions picking up in various regions. First, the negative rhetoric between the US and China continued but there was no real escalation of action between the two countries. China also saw increased strain with neighbouring India as there was a clash between soldiers on the border leading to several fatalities. Relations between North and South Korea deteriorated as the former blew up a liason office on its side of the border and subsequently sent troops to border areas. Across various countries, thousands of people took to the streets to protest in support of the Black Lives Matter movement and while these were largely peaceful, there were small pockets of violence. Despite the heightened tensions in some key regions, the market seemingly brushed it all aside to focus on COVID-19 developments. Elsewhere the pressure was on for the UK and Europe to agree a Brexit deal as the UK prime minister, Boris Johnson, said he was aiming for a deal to be agreed by the end of July. However there was a firm tone in risk markets throughout the summer as strong technical support remained, resulting in credit spreads grinding tighter and the S&P 500 reaching a record high.

Market sentiment changed in September with a pick-up in volatility for risk assets, and clear evidence of profit taking from professional trading desks unsurprisingly locking in profits from the strong technical rally seen over the summer. In addition to the profit taking, there were additional headwinds as the stand-off in the US fiscal stimulus talks between the Republicans and Democrats continued, with each side blaming the other for political point-scoring. The UK-EU stand-off also remained stubborn with the EU threatening court action and sanctions after Boris Johnson’s government re-wrote parts of the key Withdrawal Agreement that received royal assent back in January of this year. In addition, COVID-19 cases continued to increase in Europe, the US and the UK. While new restrictions were mostly localised, fears of a more widespread second lockdown continued to grow, as did fear of further insolvencies.


Investment Manager’s Report (Continued)

11

The US election was the key focus in the early part of November as the huge number of postal votes delayed clarity over the final result and led to a disputed contest. President Trump threatened legal action in a number of states, refusing to accept defeat despite the overwhelming evidence of a Biden win. While still refusing to concede, President Trump did finally state that he would leave the White House if the electoral college voted for Democrat Joe Biden, which subsequently paved the way for Biden to begin his transitional administration.

December is typically a benign period for markets as borrowers and investors gradually wind down towards year-end vacations. 2020 was different with investor appetite for risk assets very much in evidence throughout the month, resulting in a strong finish for credit markets as euphoria over the release of a number of vaccines outweighed the announcement of new COVID variants that appear more infectious than the original. As 2020 ended, the S&P 500 reached an all-time high, up 16.26% on the year. The iTraxx Crossover index finished the year at 242bp, 23bp tighter over the month and a level last seen in late February before the March sell-off took hold.

2020 also finally brought an end to the Brexit saga, and thus the removal of one big market uncertainty, as the UK and Europe signed a bilateral trade agreement on Christmas Eve, just a week before the end of the transition period. The deal saw significant backing from the UK parliament, with 521 MPs in support and only 73 against. While there are still a couple of topics to be ratified, the agreement has removed one of 2020’s key tail risks and prevented a no-deal Brexit, which looked likely at several points in December.

Portfolio Commentary

For the full calendar year the Fund’s total return was +7.56% (Class I Acc). Given the starting yield of the portfolio on January 1 was 2.17%, this return shows how much the bond market was affected by COVID-19 and all of the associated policy responses, in what ultimately was one of the most volatile years for fixed income in recent memory.

For 2020 as a whole, the strongest return contribution came from the rates positions in the Fund, with Gilts up 9.98% and Supranationals up a staggering 11.21%. The strong government support from Q2 onwards due to COVID-19 ultimately helped non-financials the most in return terms within credit, such that non-financials were up 8.28% and hybrids 4.47% while Financials returned +6.89% and secured non-financials achieved +5.03%.

We cannot talk about 2020 without referencing March, which brought about the sharpest and swiftest sell-off in IG any of us can remember. Sterling IG as an asset class saw large peak-to-trough moves, in fact eclipsing losses of 13%, with the Fund peak-to-trough movement being 9.2% against that. The strong rally in Q2 brought much needed calm back to credit, and ultimately set the scene for the Fund return of +7.56% (Class I Acc) for the year.

While this subsequent strong rally was good in the sense that is has brought forward returns, it gives us the challenge of lower yields going forward. In some areas of non-financials spreads are now back to the tight levels we saw at the beginning of 2020, and because of the fall in sovereign bond yields in 2020, in some cases the overall credit yield in non-financials is now less than 1%. Many opportunities exist within financials, and we have added approximately 5% to financials in the last few months to take advantage of this, but further than that we especially believe stock selection will continue to be a main source of finding additional value, and income, in a credit universe that has performed well in a year of extreme volatility.

Market Outlook and Strategy

The broader narrative for us is one in which we believe credit will significantly outperform equities for a number of years, firstly because this has been the case in both of the other significant distress periods this century, but secondly because rewards to shareholders from dividends and buy backs are likely to be significantly curtailed. These are discretionary payments, after all, while coupons in the sorts of bonds we hold in CBF are not.

With the large government aid programs likely needing many years of increased government bond issuance, the outlook for sovereigns will be challenging to say the least – again suggestive of credit outperformance over the longer term. On the face of it, we expect steeper government yield curves due to the twin pressures of increased government bond issuance and the prospect of modestly higher inflation that increased fiscal policy may bring. This is likely to lead to government bond yields higher than we see today but this will be no straight line move, and more than ever risk-off hedges in government bonds will be a key part of CBF’s toolkit to protect capital and provide some welcome lower correlations to risk.

Market Commentary (Continued)


Investment Manager’s Report (Continued)

12

Ultimately this means we think markets are likely to exhibit further volatility for some time yet. By focusing on higher conviction, short and medium dated IG, and keeping positions restricted to our best ideas only (that is why we limit portfolio line items to a maximum of around 100 bonds), we believe we can continue to generate some of the best risk-adjusted returns in the corporate bond sector, while keeping capital preserved to a greater degree than others in periods of volatility.

TwentyFour Asset Management LLP February 2021

Market Outlook and Strategy (Continued)

Independent auditors’ report to the shareholders of TwentyFour Global Investment Funds p.l.c.

Report on the audit of the financial statements

Opinion

In our opinion, TwentyFour Global Investment Funds p.l.c.’s financial statements:

• give a true and fair view of the Company’s assets, liabilities and financial position as at 31 December 2020 and of its results and cash flows for the year then ended;

• have been properly prepared in accordance with International Financial Reporting Standards (“IFRSs”) as adopted by the European Union; and

• have been properly prepared in accordance with the requirements of the Companies Act 2014 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended).

We have audited the financial statements, included within the Annual Report and Audited Financial Statements, which comprise:

• the Statement of Financial Position as at 31 December 2020;

• the Statement of Comprehensive Income for the year then ended;

• the Statement of Cash Flows for the year then ended;

• the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares for the year then ended;

• the Schedule of Investments as at 31 December 2020; and

• the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (“ISAs (Ireland)”) and applicable law.

Our responsibilities under ISAs (Ireland) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland, which includes IAASA’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Company’s ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report and Audited Financial Statements other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Report of the Directors, we also considered whether the disclosures required by the Companies Act 2014 have been included.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (Ireland) and the Companies Act 2014 require us to also report certain opinions and matters as described below:

• In our opinion, based on the work undertaken in the course of the audit, the information given in the Report of the Directors for the year ended 31 December 2020 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

• Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Report of the Directors.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors' Responsibilities set out on pages 2 and 3, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view.

The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.

A further description of our responsibilities for the audit of the financial statements is located on the IAASA website at:

https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf.

This description forms part of our auditors’ report.

https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf

https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s shareholders as a body in accordance with section 391 of the Companies Act 2014 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2014 opinions on other matters

• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

• In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited.

• The financial statements are in agreement with the accounting records.

Companies Act 2014 exception reporting

Directors’ remuneration and transactions

Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions specified by sections 305 to 312 of that Act have not been made. We have no exceptions to report arising from this responsibility.

Siobhan Collier for and on behalf of PricewaterhouseCoopers Chartered Accountants and Statutory Audit Firm Kilkenny 08 April 2021

• The maintenance and integrity of the website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

• Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.


For the year ended 31 December 2020Statement of Financial Position

16

As at 31 December 2020

Notes

1.01Total Company 31 December 2020

GBP

1.03TwentyFour Corporate Bond Fund

31 December 2020 GBP

Assets – – –Financial assets at fair value through profit or loss: 1,785,633,613 1,785,633,613- Transferable securities 1 1,783,110,781 1,783,110,781- Financial derivative instruments 1 2,522,832 2,522,832Cash and cash equivalents 1 23,906,894 23,906,894Interest receivable 1 21,600,524 21,600,524Receivable for securities sold 2,258 2,258Receivable for shares sold 1 11,089,462 11,089,462Total assets 1,842,232,751 1,842,232,751

LiabilitiesInvestment manager's fees payable 2 (1,056,962) (1,056,962)Administrator fees payable 2 (131,695) (131,695)Depositary fees payable 2 (106,286) (106,286)Audit fees payable (21,034) (21,034)Payable for securities purchased (2,276) (2,276)Distribution payable 12 (11,158,591) (11,158,591)Payable for shares redeemed (11,385,648) (11,385,648)Other accrued expenses (43,248) (43,248)Total liabilities (excluding net assets attributable to holders of redeemable participating shares) (23,905,740) (23,905,740)

Net assets attributable to holders of redeemable participating shares 1,818,327,011 1,818,327,011



For the financial year ended 31 December 2020Statement of Financial Position (Continued)

17


Notes 1.03 and 1.


31 December 2020

GBPNumber of redeemable participating shares outstanding: 6

TwentyFour Corporate Bond FundGBP Class I Inc 14,446,361

GBP Class I Acc 1,372,383

GBP Class Inc 257,120

GBP Class Acc 524,670

Net asset value per redeemable participating share: 7

TwentyFour Corporate Bond FundGBP Class I Inc 106.59

GBP Class I Acc 133.39

GBP Class Inc 105.68

GBP Class Acc 130.10

The accompanying notes form an integral part of these financial statements.

The financial statements were approved by the Board of Directors of TwentyFour Global Investment Funds plc on 8 April 2021 and signed on its behalf by:

Bronwyn Wright Brian Fennessy

8 April 2021 8 April 2021


Statement of Financial Position (Continued)

18


Notes


GBP



Assets – – –Financial assets at fair value through profit or loss: 921,952,246 921,952,246- Transferable securities 1 921,869,422 921,869,422- Financial derivative instruments 1 82,824 82,824Cash and cash equivalents 1 17,297,065 17,297,065Interest receivable 1 13,974,530 13,974,530Receivable for shares sold 1 8,291,427 8,291,427Other assets 16,769 16,769Total assets 961,532,037 961,532,037

LiabilitiesFinancial liabilities at fair value through profit or loss: (176,584) (176,584)- Financial derivative instruments 1 (176,584) (176,584)Investment manager's fees payable 2 (350,134) (350,134)Administrator fees payable 2 (54,937) (54,937)Depositary fees payable 2 (66,132) (66,132)Directors’ fees payable 5 (67) (67)Audit fees payable (15,953) (15,953)Company secretarial fees payable (7,342) (7,342)Distribution payable 12 (6,577,462) (6,577,462)Payable for shares redeemed (5,315,206) (5,315,206)Other accrued expenses (41,017) (41,017)Total liabilities (excluding net assets attributable to holders of redeemable participating shares) (12,604,834) (12,604,834)

Net assets attributable to holders of redeemable participating shares 948,927,203 948,927,203


Statement of Financial Position (Continued)

19


Notes



Number of redeemable participating shares outstanding: 6TwentyFour Corporate Bond FundGBP Class I Inc 8,162,480GBP Class I Acc 871,643GBP Class Inc 42,953GBP Class Acc 21,643

Net asset value per redeemable participating share: 7TwentyFour Corporate Bond FundGBP Class I Inc 102.16GBP Class I Acc 124.02GBP Class Inc 101.49GBP Class Acc 121.21

The accompanying notes form an integral part of these Financial Statements.


Statement of Comprehensive Income

20


Notes


GBP



Income – –Net gain on financial assets and liabilities at fair value through profit or loss and foreign currencies 4 78,504,341 78,504,341Bank interest income 6,034 6,034Income from financial assets at fair value through profit or loss 42,271,439 42,271,439Net investment income 120,781,814 120,781,814ExpensesInvestment manager's fees 2 (3,634,692) (3,634,692)Administrator fees 2 (550,475) (550,475)Transfer Agent fees 2 (203,960) (203,960)Depositary fees 2 (347,466) (347,466)Directors' fees 5 (31,975) (31,975)Audit fees (26,607) (26,607)Legal fees (54,177) (54,177)Company secretarial fees (18,586) (18,586)Other expenses (173,261) (173,261)Total operating expenses (5,041,199) (5,041,199)Investment manager's fee rebate 2 344,157 344,157Net operating expenses (4,697,042) (4,697,042)Operating profit 116,084,772 116,084,772Finance costsBank interest expense (5,796) (5,796)Income equalisation 2,095,426 2,095,426Distributions 12 (39,047,810) (39,047,810)Increase in net assets attributable to holders of redeemable participating shares from operations 79,126,592 79,126,592

The Company had no recognised gains or losses in the financial year other than those dealt with in the Statement of Comprehensive Income. Gains and losses arose solely from continuing operations.



For the financial year ened 31 December 2020Statement of Comprehensive Income (Continued)

21


Notes


GBP



Income – –Net gain on financial assets and liabilities at fair value through profit or loss and foreign currencies 4 46,272,843 46,272,843Bank interest income 38,642 38,642Income from financial assets at fair value through profit or loss 27,445,035 27,445,035Net investment income 73,756,520 73,756,520ExpensesInvestment manager's fees 2 (2,019,324) (2,019,324)Administrator fees 2 (213,187) (213,187)Transfer Agent fees 2 (147,695) (147,695)Depositary fees 2 (200,259) (200,259)Directors' fees 5 (23,675) (23,675)Audit fees (16,605) (16,605)Legal fees (42,192) (42,192)Company secretarial fees (20,970) (20,970)Other expenses (266,804) (266,804)Total operating expenses (2,950,711) (2,950,711)Investment manager's fee rebate 2 221,056 221,056Net operating expenses (2,729,655) (2,729,655)Operating profit 71,026,865 71,026,865Finance costsBank interest expense (4,953) (4,953)Income equalisation 732,033 732,033Distributions 12 (24,692,333) (24,692,333)Increase in net assets attributable to holders of redeemable participating shares from operations 47,061,612 47,061,612

The Company had no recognised gains or losses in the financial year other than those dealt with in the Statement of Comprehensive Income. Gains and losses arose solely from continuing operations.



Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares

22


Notes



Net assets attributable to holders of redeemable participating shares at the beginning of the year

GBP

948,927,203


948,927,203

Redeemable participating share transactionsIssue of redeemable participating shares during the year 6 1,072,077,507 1,072,077,507Redemption of redeemable participating shares during the year 6 (281,804,291) (281,804,291)Net increase in net assets from redeemable participating share transactions 790,273,216 790,273,216

Increase in net assets attributable to holders of redeemable participating shares from operations 79,126,592 79,126,592

Net assets attributable to holders of redeemable participating shares at the end of the year 1,818,327,011 1,818,327,011



Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (Continued)

23


Notes



Net assets attributable to holders of redeemable participating shares at the beginning of the year

GBP

677,983,695

31 December 2019GBP

677,983,695

Redeemable participating share transactionsIssue of redeemable participating shares during the year 6 356,096,309 356,096,309Redemption of redeemable participating shares during the year 6 (132,214,413) (132,214,413)Net increase in net assets from redeemable participating share transactions 223,881,896 223,881,896

Increase in net assets attributable to holders of redeemable participating shares from operations 47,061,612 47,061,612

Net assets attributable to holders of redeemable participating shares at the end of the year 948,927,203 948,927,203



Statement of Cash Flows

24



GBP



Cash Flows from Operating Activities – –Increase in net assets attributable to holders of redeemable participating shares from operations 79,126,592 79,126,592Adjustment for:

Net gain on financial assets and liabilities at fair value through profit or loss and foreign currencies (78,504,341) (78,504,341)Net loss on forward foreign currency contracts and currencies (3,242,754) (3,242,754)Amortisation of premium or discount investments 11,015,083 11,015,083Increase in operating receivables (7,609,227) (7,609,227)Increase in operating payables 5,404,774 5,404,774Income equalisation (2,095,426) (2,095,426)Exchange gain on cash and cash equivalents (4,140,701) (4,140,701)

Payment on purchase of investments (1,415,557,438) (1,415,557,438)Proceeds from sale of investments 622,431,499 622,431,499Net Cash Outflow from Operating Activities (793,171,939) (793,171,939)

Cash Flows from Financing ActivitiesProceeds from issue of redeemable participating shares 1,069,277,214 1,069,277,214Payments for redemption of redeemable participating shares (275,731,573) (275,731,573)Income equalisation 2,095,426 2,095,426Net Cash Inflow from Financing Activities 795,641,067 795,641,067

Net Increase in cash and cash equivalents 2,469,128 2,469,128

Cash and cash equivalents at the beginning of the year 17,297,065 17,297,065Exchange gain on cash and cash equivalents 4,140,701 4,140,701

Cash and cash equivalents at the end of the year 23,906,894 23,906,894


Statement of Cash Flows (Continued)

25



GBP



Supplementary cash flow informationCash flows from operating activities include:Cash received during the year for interest income 53,292,556 53,292,556Cash paid during the year for interest expense (5,796) (5,796)Cash paid during the year for distributions (39,047,810) (39,047,810)

14,238,950 14,238,950




26



GBP



Cash Flows from Operating Activities – –Increase in net assets attributable to holders of redeemable participating shares from operations 47,061,612 47,061,612Adjustment for:

Net gain on financial assets and liabilities at fair value through profit or loss (46,272,843) (46,272,843)Net gain on forward foreign currency contracts and currencies 2,740,561 2,740,561Amortisation of premium or discount investments 5,109,200 5,109,200Increase in operating receivables (2,918,348) (2,918,348)Increase in operating payables 734,310 734,310Income equalisation (732,033) (732,033)

Exchange (gain) on cash and cash equivalents (2,590,449) (2,590,449)Payment on purchase of investments (434,286,296) (434,286,296)Proceeds from sale of investments 209,455,635 209,455,635Net Cash Outflow from Operating Activities (221,698,651) (221,698,651)

Cash Flows from Financing ActivitiesProceeds from issue of redeemable participating shares 349,292,806 349,292,806Payments for redemption of redeemable participating shares (128,522,243) (128,522,243)Income equalisation 732,033 732,033Net Cash Inflow from Financing Activities 221,502,596 221,502,596

Net Decrease in cash and cash equivalents (196,055) (196,055)

Cash and cash equivalents at the beginning of the year 14,902,671 14,902,671Exchange gain on cash and cash equivalents 2,590,449 2,590,449

Cash and cash equivalents at the end of the year 17,297,065 17,297,065



27



GBP



Supplementary cash flow informationCash flows from operating activities include:Cash received during the year for interest income 32,592,877 32,592,877Cash paid during the year for interest expense (4,953) (4,953)Cash paid during the year for distributions (24,692,333) (24,692,333)

7,895,591 7,895,591



Notes to the Financial StatementsFor the financial year ended 31 December 2020

28

1. Principal Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of Preparation

The financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), as adopted by the European Union (“EU”). TwentyFour Global Investment Funds p.l.c (the “Company”) is authorised by the Central Bank of Ireland (the “Central Bank”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (“the UCITS Regulations”). The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss.

The registered number for the Company is 530181. The registered office for the Company is 32 Molesworth Street, Dublin 2, D02 Y512, Ireland. The registered country for the Company is Ireland.

These financial statements are prepared on a going concern basis.

Critical accounting estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about fair values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.

There were no critical judgements or estimates during the year to disclose.

Functional currency and foreign currency translation

These financial statements are prepared in Pound Sterling (“GBP”), which is the Company’s functional and presentation currency.

Assets and liabilities expressed in foreign currencies will be converted into the functional currency of the Fund using the exchange rates prevailing as at the Statement of Financial Position date. Transactions in foreign currencies are translated into GBP at the average exchange rate for the year.

Financial assets and liabilities

ClassificationIFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income, and fair value through profit or loss. The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset or financial liability in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.

The Company classifies all its investment securities as financial assets and financial liabilities at fair value through profit or loss. Within this category, all securities are also classified as held for trading.

Financial assets that are classified as measured at amortised cost include cash and cash equivalents, interest and other receivables.

Recognition & derecognitionThe Company recognises financial assets and financial liabilities on the date it becomes party to the contractual provisions of the instrument. Investment transactions are accounted for on a trade date basis initially at fair value.


Notes to the Financial Statements (Continued)For the financial year ended 31 December 2020

29

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the Fund has transferred substantially all risks and rewards of ownership.

ImpairmentThe Company recognises loss allowances for expected credit losses ("ECLs") on financial assets measured at amortised cost.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward-looking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive).

ECLs are discounted at the effective interest rate of the financial asset.

At 31 December 2020 and 31 December 2019, Management consider the probability of default to be close to zero as the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Fund.

MeasurementFinancial assets and liabilities at fair value through profit or loss are valued at fair value at the Statement of Financial Position date. Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value of the ‘Financial assets or financial liabilities at fair value through profit or loss’ category are presented in the Statement of Comprehensive Income within ‘Net gain on financial assets and liabilities at fair value through profit or loss’ in the year in which they arise. Fair value is the expected price that would be received to sell the asset or transfer the liability in an orderly transaction between market participants.

In determining fair value, securities which are quoted, listed or traded on a recognised exchange are valued at the closing mid-market price. Where a security is listed or dealt in on more than one recognised exchange the relevant exchange or market shall be the principal stock exchange or market on which the security is listed or dealt on or the exchange or market which the Directors determine provides the fairest criteria in determining a value for the relevant investment.

Derivative contracts traded on a regulated market are valued at the settlement price as determined by the market. If the settlement price is not available, the value shall be the probable realisation value estimated with care and in good faith by (i) the Directors or (ii) a competent person, firm or corporation (including the Investment Manager (the “IM”)) selected by the Directors and approved for the purpose by Northern Trust Fiduciary Services (Ireland) Limited (“the Depositary”).

Over-the-counter (“OTC”) derivative contracts are valued daily either (i) on the basis of a quotation provided by the relevant counterparty and such valuation shall be approved or verified at least weekly by a party who is selected by the Directors and approved for the purpose by the Depositary and who is independent of the counterparty (the “Counterparty Valuation”); or (ii) using an alternative valuation provided by a competent person (including the Investment Manager) appointed by the Directors and approved for the purpose by the Depositary (the “Alternative Valuation”). Where such alternative valuation method is used the Company will follow international best practice and adhere to the principles on valuation of OTC instruments established by bodies such as the International Organisation of Securities Commissions and the Alternative Investment Managers’ Association and will be reconciled to the Counterparty Valuation on a monthly basis. Where significant differences arise these will be promptly investigated and explained.

1. Principal Accounting Policies (Continued)

Financial assets and liabilities (Continued)

Recognition & derecognition (Continued)


30

Forward Foreign Exchange Contracts

A forward currency contract involves an obligation to purchase or sell a specific currency at a future date at a price set at the time the contract is made. Forward foreign exchange contracts will be valued by reference to the forward price at which a new forward contract of the same size and maturity could be undertaken at the valuation date.

The unrealised gain or loss on open forward currency contracts calculated as the difference between the contract rate and this forward price is recognised in the Statement of Comprehensive Income. Where a forward contract is purchased to hedge the foreign exchange risk of a specific class which is issued in a currency other than the measurement currency of the Company, all gains or losses on that contract are allocated to that class. There is no master netting agreement in place therefore the forward currency contacts cannot be offset.

Bonds

Bonds are fixed or floating rate income securities for which periodic income is received at regular intervals at reasonably predictable levels. In an issue of bonds the indebted entity (issuer) issues a bond that states the interest rate (coupon) that will be paid and when the loaned funds (principal) are to be returned (maturity date). The amount of the bond premium or discount is amortised to income from financial assets at fair value through profit or loss over the life of the bond using the effective interest method.

Bank interest income

Bank interest is recognised on a time-proportionate basis using the effective interest method. Bank interest income includes interest from cash and cash equivalents.

Income from financial assets at fair value through profit or loss

Income on financial assets at fair value through profit or loss is recognised in the Statement of Comprehensive Income when the right of the Fund to receive payments is established.

Bank interest expense

Bank interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, monies held in Transfer Agent IMR (Investor Money Regulation) accounts of the Fund and other short term investments in an active market with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown in liabilities in the Statement of Financial Position.

All of the cash assets are held with The Northern Trust Company (“TNTC”).

Collateral

Cash collateral provided by fund will be identified, if any, in the Statement of Financial Position as cash collateral and is not included as a component of cash and cash equivalents. For collateral other than cash, if the party to whom the collateral is provided has the right by contract or custom to sell or re-pledge the collateral, the Fund classifies that asset or liability in its Statement of Financial Position separately from other assets and liabilities and identifies the asset or liability as pledged collateral. Where the party to whom the collateral is provided does not have the right to sell or re-pledge, a disclosure of the collateral provided is made in the notes to the financial statements. The reason for receipt of cash collateral is that the broker has paid the Fund and this amount has been applied to the account. There was no cash collateral held during the year.

Redeemable shares

The Fund has four classes of redeemable participating shares in issue. These shares are redeemable at the holder’s option and do not have identical features. Such shares are classified as financial liabilities. Redeemable participating shares can be put back to the Fund at any dealing date for cash equal to a proportionate share of the Fund’s Net Asset Value attributable to the share class.





31

The redeemable participating shares are carried at the redemption amount that is payable at the Statement of Financial Position date if the holder exercises the right to put the shares back into the Fund. Redeemable participating shares are issued and redeemed at the holder’s option at prices based on the Fund’s Net Asset Value per share at the time of issue or redemption. The Fund’s Net Asset Value per share is calculated by dividing the net assets attributable to the holders of each class of redeemable participating shares with the total number of outstanding redeemable participating shares for each respective class.

Transaction costs

Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisers, brokers and dealers. Transaction costs, when incurred, are immediately recognised in profit or loss as an expense.

Distributions

The Board intends to distribute an amount approximately equal to the value of the Company’s net income in respect of distribution shares arising each quarter to the holders of distribution shares. In the absence of unforeseen circumstances, distributions will be payable quarterly by electronic transfer to the account in the name of the shareholder.

Each shareholder has the option to take dividends in cash or to reinvest in the Fund by the allotment of additional shares of the Fund. The Fund’s default position unless specifically advised on the Application Form will be to reinvest distributions into the relevant shares of the Fund.

Taxation

The Fund may incur withholding tax imposed by certain countries on investment income and capital gains. Such income or gains are recorded gross of withholding taxes in the Statement of Comprehensive Income. The Fund did not incur any withholding tax for the financial year ended 31 December 2020 (31 December 2019: Nil).

2. Fees and expenses

The Investment Manager shall be entitled to an annual Investment Management fee equal to 0.25% of the Net Asset Value of GBP Classes I and 0.45% of the Net Asset Value of the remaining GBP Classes. Such fees shall be calculated and accrued at each Valuation Point and be payable monthly in arrears. Investment Management fees for the financial year ended 31 December 2020 were GBP 3,634,692 (31 December 2019: GBP 2,019,324) of which GBP 1,056,962 (31 December 2019: GBP 350,134) remained payable at the year end.

The Investment Manager may from time to time, at its sole and absolute discretion, elect to waive its entitlement to some or all of the Investment Management fees and expenses in respect of one or more of the share classes. The Company received a rebate during the year from the Investment Manager in relation to the Administrator fee in order to reduce the Total Expense Ratio of the Company. The rebate received during the year was GBP 344,157 (31 December 2019: GBP 221,056) of which GBP Nil (31 December 2019: GBP 40,745) remained receivable at the year end.

The Administrator shall be entitled to receive a fee out of the assets of the Fund which shall be calculated and accrue at each Valuation Point and payable monthly in arrears. The fee shall not exceed 0.035% of the Net Asset Value of the Fund subject to a minimum annual fee of GBP 45,600. Administrator fees for the financial year ended 31 December 2020 were GBP 550,475 (31 December 2019: GBP 213,187) of which GBP 131,695 (31 December 2019: GBP 54,937) remained payable at the year end. Transfer Agent fees for the financial year ended 31 December 2020 were GBP 203,960 (31 December 2019: GBP 147,695) of which GBP Nil (31 December 2019: GBP 12,450) remained payable at the year end.

The Depositary shall be entitled to receive a fee out of the assets of the Fund which shall be calculated and accrue at each Valuation Point and payable monthly in arrears. The fee shall not exceed 0.02% of the Net Asset Value of the Fund subject to a minimum annual fee of GBP 19,000. Depositary fees for the financial year ended 31 December 2020 were GBP 347,466 (31 December 2019: GBP 200,259) of which GBP 106,286 (31 December 2019: GBP 66,132) remained payable at the year end.

No performance fee will be payable to the Investment Manager.


Redeemable shares (Continued)


32

Transaction costs

The Fund’s transaction costs for the financial year ended 31 December 2020 are included in the net gain on financial assets and liabilities at fair value through profit or loss under the Statement of Comprehensive Income. These transaction costs are not separately identifiable.

Auditors’ remuneration

The remuneration for all work carried out by the statutory auditors in respect of the financial year is as follows:



Statutory audit fee (including expenses)* 17,723 16,60517,723 16,605

The above fees exclude VAT.* There were no fees charged or paid in respect to other assurance services, tax advisory services and other non-audit services.

3. Financial risk management

The Company’s activities expose it to a variety of financial risks in pursuing its stated investment objectives and policies. These risks include, but are not limited to, market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management process seeks to maximise the returns derived for the level of risk to which the Company is exposed and seeks to minimise potential adverse effects on the Company’s financial performance. The Company’s policy allows it to use financial derivative instruments to both moderate and create certain risk exposures.

Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as foreign exchange rates and equity prices.

Market price risk

IFRS 7 ‘Financial Instruments: Disclosures’, defines market price risk as the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices. Market price risk reflects interest rate risk, foreign exchange risk and other price risks.

The assets of the Fund are subject to market price risk. The Fund is therefore at risk that market events may affect performance. While the Fund intends to hold a diversified portfolio of assets, any of the factors set out in IFRS 7 including specific market events, such as levels of sovereign debt, may be materially detrimental to the performance of the Fund’s investments.

The market price risk of the Company is monitored by the Investment Manager.

In line with the Company’s investment objective, at 31 December 2020, TwentyFour Corporate Bond Fund held various investments in bonds.

The nominal value and fair value of each of these investments is listed in the Fund’s Schedule of Investments. The fair value of these investments is recorded in the Statement of Financial Position and all gains and losses are recognised in the Statement of Comprehensive Income. The carrying value of these investments is equivalent to fair value.

The Fund’s maximum exposure to loss from these investments is equal to their total fair value. Once the Fund has disposed of its holding in any of these investments, the Fund ceases to be exposed to any risk from that investment.

2. Fees and expenses (Continued)




33

Transaction costs

The Fund’s transaction costs for the financial year ended 31 December 2020 are included in the net gain on financial assets and liabilities at fair value through profit or loss under the Statement of Comprehensive Income. These transaction costs are not separately identifiable.

Auditors’ remuneration

The remuneration for all work carried out by the statutory auditors in respect of the financial year is as follows:

31 December 2020GBP

31 December 2019GBP

Statutory audit fee (including expenses)* 17,723 16,60517,723 16,605

The above fees exclude VAT.* There were no fees charged or paid in respect to other assurance services, tax advisory services and other non-audit services.

3. Financial risk management

The Company’s activities expose it to a variety of financial risks in pursuing its stated investment objectives and policies. These risks include, but are not limited to, market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management process seeks to maximise the returns derived for the level of risk to which the Company is exposed and seeks to minimise potential adverse effects on the Company’s financial performance. The Company’s policy allows it to use financial derivative instruments to both moderate and create certain risk exposures.

Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as foreign exchange rates and equity prices.

Market price risk

IFRS 7 ‘Financial Instruments: Disclosures’, defines market price risk as the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices. Market price risk reflects interest rate risk, foreign exchange risk and other price risks.

The assets of the Fund are subject to market price risk. The Fund is therefore at risk that market events may affect performance. While the Fund intends to hold a diversified portfolio of assets, any of the factors set out in IFRS 7 including specific market events, such as levels of sovereign debt, may be materially detrimental to the performance of the Fund’s investments.

The market price risk of the Company is monitored by the Investment Manager.

In line with the Company’s investment objective, at 31 December 2020, TwentyFour Corporate Bond Fund held various investments in bonds.

The nominal value and fair value of each of these investments is listed in the Fund’s Schedule of Investments. The fair value of these investments is recorded in the Statement of Financial Position and all gains and losses are recognised in the Statement of Comprehensive Income. The carrying value of these investments is equivalent to fair value.

The Fund’s maximum exposure to loss from these investments is equal to their total fair value. Once the Fund has disposed of its holding in any of these investments, the Fund ceases to be exposed to any risk from that investment.

TwentyFour Corporate Bond Fund

Investments held at year end 31/12/2020

The following table analyses the Fund’s concentration of bond price risk by geographical distributions:


Geographical location GBP % of net assetsAustralia 41,650,894 2.29Austria 1,886,029 0.10Belgium 31,186,290 1.71Bermuda 7,675,550 0.42Denmark 24,503,428 1.35France 48,785,643 2.68Germany 19,989,227 1.10Italy 18,277,805 1.01Jersey 50,273,531 2.76Luxembourg 25,218,938 1.39Mexico 21,250,278 1.17Netherlands 80,022,826 4.40Norway 8,540,279 0.47Sweden 27,519,088 1.51Switzerland 8,033,274 0.44United Kingdom 1,213,085,598 66.72United States 122,917,741 6.76Virgin Islands 32,294,362 1.78Total Investments 1,783,110,781 98.06Other 35,216,230 1.94Total Net Assets 1,818,327,011 100.00

3. Financial risk management (Continued)

Market risk (Continued)

Market price risk (Continued)


34

Comparative as at 31/12/2019

Geographical location GBP % of net assetsAustralia 13,038,094 1.37Belgium 21,857,092 2.30Bermuda 7,383,520 0.78Denmark 12,527,352 1.32France 45,209,412 4.77Ireland (93,760) (0.01)Jersey 39,230,213 4.13Luxembourg 13,524,650 1.43Mexico 14,924,769 1.57Netherlands 22,732,049 2.40Sweden 4,475,261 0.47United Kingdom 583,464,830 61.48United States 60,082,581 6.33Virgin Islands 14,859,846 1.57Supranational 68,559,753 7.23Total Investments 921,775,662 97.14Other 27,151,541 2.86Total Net Assets 948,927,203 100.00

Foreign exchange risk

Foreign exchange risk is defined in IFRS 7 as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Fund is exposed to currency risk as the assets and liabilities of the Fund are denominated in a currency other than the functional currency of the Company, which is Pound Sterling (GBP).

Foreign currency risk arises as the value of future transactions, recognised monetary assets and monetary liabilities denominated in other currencies fluctuate due to changes in foreign exchange rates.

The Company’s currency exposure at 31 December 2020 and 31 December 2019 are outlined in the tables below:


31 December 2020 Monetary exposure

GBP

Non-Monetary exposure

GBP

Open FX trades

GBP

Total exposure

GBPEuro 268,000,019 3,484,328 (270,378,374) 1,105,973Swiss Franc 3,862 (6) – 3,856US Dollar 46,725,799 809,357 (47,158,192) 376,964

314,729,680 4,293,679 (317,536,566) 1,486,793



Market price risk (Continued)




35


31 December 2019 Monetary exposure

GBP

Non-Monetary exposure

GBP

Open FX trades

GBP

Total exposure

GBPEuro 115,381 50,694,557 (50,731,571) 78,367Swiss Franc 3,703 (6) – 3,697US Dollar 8,590 19,424,128 (19,351,941) 80,777

127,674 70,118,679 (70,083,512) 162,841

Sensitivity Analysis

The table below summarises the sensitivity of the Fund’s monetary and non-monetary assets and liabilities denominated in other currencies to changes in foreign exchange movements at the year end. The analysis is based on the assumptions that the relevant foreign exchange rate increased/decreased by the percentage disclosed in the table below, with all other variables held constant.


31 December 2020 % movement* Effect on Net Assets attributable to holders of Redeemable Participating Shares

Euro 10% 110,597Swiss Franc 10% 386US Dollar 10% 37,696

* The sensitivity analysis threshold changed to 10% in this year's financial statements due to COVID 19.TwentyFour Corporate Bond Fund

31 December 2019 % movement Effect on Net Assets attributable to holders of Redeemable Participating Shares

Euro 5% 3,918Swiss Franc 5% 185US Dollar 5% 4,039

Interest rate riskInterest rate risk is defined in IFRS 7 as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and liabilities. Excess cash and cash equivalents are invested at short term market interest rates thus contributing very little to fair value interest rate risk, however, such balances are exposed to cash flow interest rate risks. Balances exposed to cash flow interest rate risks are the cash and cash equivalent amounts disclosed in the statement of financial position.

Duration is a measure of the sensitivity of a bond price to interest rates. The percentage change in the price is equal to the change in interest rates multiplied by the modified duration. The monetary impact detailed in the following table shows the possible change in Net Asset Value resulting from a 1% change in interest rates.


31 December 2020 Average duration Monetary impact on NAV (100 bps)6.53 116,437,134



Foreign exchange risk (Continued)


36


31 December 2019 Average duration Monetary impact on NAV (100 bps)6.31 58,169,961

Brexit and associated risks


Credit risk, Depositary and Title risk

Credit risk is defined in IFRS 7 as the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The Fund will be exposed to credit risk on parties with whom it trades, which will include counterparties and may also bear the risk of settlement default. The carrying amounts of financial assets best represent the maximum credit risk exposure at the Statement of Financial Position date.

Credit risk statement

Northern Trust Fiduciary Services (Ireland) Limited (“NTFSIL”) is the appointed Depositary of the Company, responsible for the safe-keeping of assets. NTFSIL has appointed The Northern Trust Company (“TNTC”) as its global sub-custodian. Both NTFSIL and TNTC are wholly owned subsidiaries of Northern Trust Corporation (“NTC”). As at year end date 31 December 2020, NTC had a long term credit rating from Standard & Poor’s of A+ (2019: A+).

TNTC (as global sub-custodian of NTFSIL) does not appoint external sub-custodians within the U.S., the U.K., Ireland, Canada, Belgium, France, Germany, Netherlands and Saudi Arabia. However, in all other markets, TNTC appoints local external sub-custodians.

NTFSIL, in the discharge of its depositary duties, verifies the Fund’s ownership of Other Assets, (as defined under Art 22(5) of UCITS V Directive 2014/91/EU) by assessing whether the Fund holds the ownership based on information or documents provided by the Fund or where available, on external evidence.

TNTC, in the discharge of its delegated depositary duties, holds in custody (i) all financial instruments that may be registered in a financial instruments account opened on the books of TNTC and (ii) all financial instruments that can be physically delivered to TNTC. TNTC ensures all financial instruments (held in a financial instruments account on the books of TNTC) are held in segregated accounts in the name of the Fund, clearly identifiable as belonging to the Fund, and distinct and separately from the proprietary assets of TNTC, NTFSIL and NTC.

In addition TNTC, as banker, holds cash of the Fund on deposit. Such cash is held on the Statement of Financial Position of TNTC. In the event of insolvency of TNTC, in accordance with standard banking practice, the Fund will rank as an unsecured creditor of TNTC in respect of any cash deposits.

Insolvency of NTFSIL and or one of its agents or affiliates may cause the Fund’s rights with respect to its assets to be delayed.



Interest rate risk (Continued)




37

The Responsible Party manages risk by monitoring the credit quality and financial position of the Depositary and such risk is further managed by the Depositary monitoring the credit quality and financial positions of sub-custodian appointments.

Northern Trust continually reviews its sub-custodian network to ensure clients have access to the most efficient, creditworthy and cost-effective provider in each market.

The Depositary is under a duty to take into deposit and to hold the property of each fund of the Company on behalf of its shareholders. The Central Bank requires the Depositary to hold legally separate the non-cash assets of each fund and to maintain sufficient records to clearly identify the nature and amount of all assets that it holds, the ownership of each asset and where the documents of title to such assets are physically located. When the Depositary employs a sub-custodian the Depositary retains responsibility for the assets of the Fund.

However, it should be noted that not all jurisdictions have the same rules and regulations as Ireland regarding the deposit of assets and the recognition of the interests of a beneficial owner such as a fund. Therefore, in such jurisdictions, there is a risk that if a sub-custodian becomes bankrupt or insolvent, the Fund’s beneficial ownership of the assets held by such sub-custodian may not be recognised and consequently the creditors of the sub-custodian may seek to have recourse to the assets of the Fund. In those jurisdictions where the Fund’s beneficial ownership of its assets is ultimately recognised, the fund may suffer delay and cost in recovering those assets. The Fund may invest in markets where depositary and/or settlement systems are not fully developed. The assets of a Fund which are traded in such markets and which have been entrusted to sub-custodians, in circumstances where the use of such sub-custodians is necessary, may be exposed to risk in circumstances whereby the Depositary will have no liability.

As at 31 December 2020 and 31 December 2019 the Fund’s financial assets exposed to credit risk at the year-end amounted to:

TwentyFour Corporate Bond Fund 31/12/2020 GBP

Investments 1,783,110,781Financial derivative instruments 2,522,832Receivable for securities sold 2,258Cash 23,906,894Interest receivable 21,600,524Receivable for shares sold 11,089,462

1,842,232,751

TwentyFour Corporate Bond Fund 31/12/2019 GBP

Investments 921,869,422Financial derivative instruments 82,824Cash 17,297,065Interest receivable 13,974,530Receivable for shares sold 8,291,427

961,515,268


Credit risk statement (Continued)


38

TwentyFour Corporate Bond FundPortfolio by category 31/12/2020RatingInvestment grade 57.97%Non investment grade 6.06%Non rated 35.97%

100.00%–

Portfolio by category 31/12/2019RatingInvestment grade 61.13%Non investment grade 4.53%Non rated 34.34%

100.00%

Liquidity Risk

IFRS 7 defines liquidity risk as the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

Not all securities or instruments invested in by the Fund will be listed or rated and consequently liquidity may be low. Moreover, the accumulation and disposal of holdings in some investments may be time consuming and may need to be conducted at unfavourable prices. The Fund may also encounter difficulties in disposing of assets at their fair price due to adverse market conditions leading to limited liquidity.

The Fund invests primarily in securities which are readily realisable. As a result, the Fund is likely to be able to liquidate quickly its investments in these instruments at an amount close to their fair value in order to meet its liquidity requirements. All of the liabilities of the Fund as at 31 December 2020 and 31 December 2019, as shown in the Statement of Financial Position, fall due within one month of the financial year end.

The Directors may at any time temporarily suspend the calculation of the Net Asset Value of the Fund and the subscription, repurchase and exchange of Shares and the payment of Repurchase Proceeds: There was no NAV suspension during the year.

An Anti-Dilution Levy may be imposed by the Directors in the case of large net subscriptions and/or net repurchases to reflect the impact of dealing costs relating to the acquisition or disposal of assets and to preserve the value of the underlying assets of the relevant Fund, where they consider such a provision to be in the best interests of the Fund



Credit risk statement (Continued)

As at 31 December 2020 and 31 December 2019, the Fund’s portfolio of debt securities by the S&P rating agency categories was as follows:



39

The table below analyses the Fund’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts in the tables are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of discounting is not significant.

As at 31 December 2020 Less than 1 month

GBP

1-3months

GBP

Over 3 months

GBP

Total GBP

Creditors 23,905,740 – – 23,905,740Net Assets attributable to Holders of Redeemable Participating Shares 1,818,327,011 – – 1,818,327,011Total financial liabilities 1,842,232,751 – – 1,842,232,751

As at 31 December 2019 Less than 1 month

GBP

1-3months

GBP

Over 3 months

GBP

Total GBP

Financial Liabilities at fair value through profit and loss 176,584 – – 176,584Creditors 12,428,250 – – 12,428,250Net Assets attributable to Holders of Redeemable Participating Shares 948,927,203 – – 948,927,203Total financial liabilities 961,532,037 – – 961,532,037

Fair value hierarchy

IFRS 13 ‘Fair Value Measurement’ requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

The fair value hierarchy has the following levels:

- Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

- Level 2: inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

- Level 3: inputs are unobservable inputs for the asset or liability.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety.

If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

The determination of what constitutes “observable” requires significant judgment by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.


Liquidity Risk (Continued)


40

The following table analyses within the fair value hierarchy the Company’s financial assets and liabilities (by level) measured at fair value at 31 December 2020 and 31 December 2019:


As at 31 December 2020Level 1 Level 2 Level 3 Total

GBP GBP GBP GBPFinancial assets at fair value through profit and loss:Debt securities – 1,783,110,781 – 1,783,110,781Unrealised gain on forward currency contracts – 2,522,832 – 2,522,832Total – 1,785,633,613 – 1,785,633,613

As at 31 December 2019Level 1 Level 2 Level 3 Total

GBP GBP GBP GBPFinancial assets at fair value through profit and loss:Debt securities – 921,869,422 – 921,869,422Unrealised gain on forward currency contracts – 82,824 – 82,824Financial liabilities at fair value through profit and loss:Unrealised loss on forward currency contracts – (176,584) – (176,584)Total – 921,775,662 – 921,775,662

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include Corporate Bonds, Government Bonds and Forward Currency Contracts.

There were no transfers between Levels of the fair value hierarchy for financial assets and financial liabilities which are recorded at fair value during the year.


Fair value hierarchy (Continued)




41

The following tables analyse within the fair value hierarchy the Fund’s assets and liabilities not measured at fair value at 31 December 2020 and 31 December 2019 but for which fair value is disclosed:

As at 31/12/2020

TwentyFour Corporate Bond Fund Level 1 Level 2 Level 3 TotalAssets GBP GBP GBP GBPCash and cash equivalents 23,906,894 – – 23,906,894Interest receivable – 21,600,524 – 21,600,524Receivable for shares sold – 11,089,462 – 11,089,462Receivable for securities sold – 2,258 – 2,258

23,906,894 32,692,244 – 56,599,138– – –

TwentyFour Corporate Bond Fund Level 1 Level 2 Level 3 TotalLiabilities GBP GBP GBP GBPInvestment manager's fees payable – (1,056,962) – (1,056,962)Administrator fees payable – (131,695) – (131,695)Depositary fees payable – (106,286) – (106,286)Audit fees payable – (21,034) – (21,034)Payable for securities purchased – (2,276) – (2,276)Distribution payable – (11,158,591) – (11,158,591)Payable for shares redeemed – (11,385,648) – (11,385,648)Other accrued expenses – (43,248) – (43,248)Net assets attributable to holders of redeemable participating shares – (1,818,327,011) – (1,818,327,011)

– (1,842,232,751) – (1,842,232,751)




42

Comparative as at 31/12/2019

TwentyFour Corporate Bond Fund Level 1 Level 2 Level 3 TotalAssets GBP GBP GBP GBPCash and cash equivalents 17,297,065 – – 17,297,065Interest receivable – 13,974,530 – 13,974,530Receivable for shares sold – 8,291,427 – 8,291,427Other assets – 16,769 – 16,769

17,297,065 22,282,726 – 39,579,791– – –

TwentyFour Corporate Bond Fund Level 1 Level 2 Level 3 TotalLiabilities GBP GBP GBP GBPInvestment manager's fees payable – (350,134) – (350,134)Administrator fees payable – (54,937) – (54,937)Depositary fees payable – (66,132) – (66,132)Directors' fees payable – (67) – (67)Audit fees payable – (15,953) – (15,953)Distribution payable – (6,577,462) – (6,577,462)Payable for shares redeemed – (5,315,206) – (5,315,206)Company secretarial fees – (7,342) – (7,342)Other accrued expenses – (41,017) – (41,017)Net assets attributable to holders of redeemable participating shares – (948,927,203) – (948,927,203)

– (961,355,453) – (961,355,453)

4. Net gain on financial assets and liabilities at fair value through profit or loss and foreign currencies

TwentyFour Corporate Bond Fund 31/12/2020GBP

Realised gain on sale of investments 17,805,086Realised gain on forward currency contracts 4,140,701Net currency loss (7,362,093)Net change in unrealised appreciation on investments 61,342,422Net change in unrealised appreciation on forward foreign currency contracts 2,578,225

78,504,341TwentyFour Corporate Bond Fund 31/12/2019

GBPRealised loss on sale of investments (1,064,201)Realised gain on forward currency contracts 2,590,449Net currency gain 159,320Net change in unrealised appreciation on investments 44,964,903Net change in unrealised depreciation on forward foreign currency contracts (377,628)

46,272,843

5. Related party transactions

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.






43

The Fund is managed by TwentyFour Asset Management LLP, the Investment Manager. Under the terms of the investment management agreement the Investment Manager is responsible, subject to the overall supervision and control of the Directors, for managing the assets and investments of the Fund in accordance with the investment objective and policies of the Fund. The Investment Manager is entitled to receive Investment Management fees and has elected to pay rebates as disclosed in note 2 Fees and Expenses. The Investment Manager may from time to time waive its entitlement to some or all of the Investment Manager’s fee and expenses.

The Articles of Association authorise the Directors to charge a fee for their services at a rate determined by the Directors. Each Director shall receive a fee for their services up to a maximum of EUR 18,000 per annum. Directors’ fees for the financial year disclosed in the Statement of Comprehensive Income amounted amounted to GBP 31,975 (31 December 2019: GBP 23,675) of which GBP Nil (31 December 2019: GBP 67) remained payable at the year end.

The actual Directors’ fees (excluding expenses) paid for the financial year ended 31 December 2020 are GBP 15,381 (31 December 2019: GBP 15,155).

Mr. Cormac Byrne, a Director of the Company, is also an employee of KB Associates, a firm which provides a range of consulting services to the Company. KB Associates fees for the year amounted to GBP 51,757 (31 December 2019: GBP 49,793) of which GBP 13,099 (31 December 2019: GBP 12,325) remained payable at the year end.

Helen Howell is an employee of TwentyFour Asset Management LLP and any Director fees for the role are waived.

None of the Directors had shareholdings in the Fund at 31 December 2020 (31 December 2019: Nil).

Staff and partners of TwentyFour AM held 3,432.2349 share in the fund of the Company as at 31 December 2020 (31 December 2019:3,215.365).

6. Share capital

The authorised share capital of the Company is 300,000 redeemable non-participating shares of no par value and 500,000,000,000 participating shares of no par value. Non-participating shares do not entitle the holders thereof to any dividend and on a winding up entitle the holders thereof to receive the consideration paid therefore but do not otherwise entitle them to participate in the assets of the Company. The Directors have the power to allot shares in the capital of the Company on such terms and in such manner as they may think fit.

The non-participating shares do not form part of the net assets of the Company and are disclosed by way of this note only. Holders are entitled to one vote per share held at meetings of shareholders and are not entitled to receive dividends.

Each participating share gives the holder one vote in relation to any matters relating to the Company which are submitted to shareholders for a vote by poll. Fractions of shares do not carry voting rights.

The shares issued in the Fund will rank pari passu with each other in all respects provided that they may differ as to certain matters including currency of denomination, hedging strategies if any applied to the currency of a particular class, dividend policy, voting rights, return of capital, the level of fees and expenses to be charged, subscription or redemption procedures or the minimum subscription, minimum holding and minimum transaction size applicable.

During the financial years ended 31 December 2020 and 31 December 2019 the numbers of shares issued, redeemed and outstanding were as follows:

TwentyFour Corporate Bond Fund31 December 2020 GBP Class I Inc GBP Class I Acc GBP Class Inc GBP Class Acc

Shares in issue at start of year 8,162,480 871,643 42,953 21,643Shares subscribed 8,333,388 945,704 256,602 592,250Shares redeemed (2,049,507) (444,964) (42,435) (89,223)Shares in issue at end of year 14,446,361 1,372,383 257,120 524,670

5. Related party transactions (Continued)


44


Shares subscribed 854,798,729 120,417,684 26,376,583 73,558,419Shares redeemed (209,788,382) (57,362,578) (4,395,124) (11,236,690)Value of shares in issue at end of year 645,010,347 63,055,106 21,981,459 62,321,729


Shares in issue at start of year 6,135,627 691,180 10,879 69,887Shares subscribed 2,973,068 425,436 35,828 19,763Shares redeemed (946,215) (244,973) (3,754) (68,007)Shares in issue at end of year 8,162,480 871,643 42,953 21,643


Shares subscribed 300,678,682 50,638,530 3,635,445 2,306,576Shares redeemed (95,043,441) (29,104,725) (372,124) (8,125,013)Value of shares in issue at end of year 205,635,241 21,533,805 3,263,321 (5,818,437)

7. Net Asset Value

TwentyFour Corporate Bond Fund 31 December 2020

1.01GBP Class I Inc GBP

1.02GBP Class I Acc GBP

Net assets attributable to holders of redeemable participating shares 1,539,825,324 183,068,467Net asset value per redeemable participating share 106.59 133.39

1.03GBP Class Inc GBP

1.04GBP Class Acc GBP

Net assets attributable to holders of redeemable participating shares 27,172,378 68,260,842Net asset value per redeemable participating share 105.68 130.10





6. Share capital (Continued)




45


1.03GBP Class Inc GBP

1.04GBP Class Acc GBP






1.03GBP Class Inc

GBP1.04GBP Class Acc

GBP


8. Taxation

Under current Irish law and practice the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended (the “TCA”). On that basis, it is not chargeable to Irish tax on its income or gains.

However, Irish tax may arise if a "chargeable event" occurs. A chargeable event includes any distribution payments to shareholders or any encashment, redemption, cancellation, transfer or deemed disposal of shares for Irish tax purposes, arising as a result of holding shares in the Company for a period of eight years or more, or the appropriation or cancellation of shares of a shareholder by the Company for the purposes of meeting the amount of tax payable on a gain arising on a transfer.

No Irish tax will arise on the Company in respect of chargeable events in respect of:

(a) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided that a relevant declaration is in place (in accordance with Schedule 2b of the TCA) and the Company is not in possession of any information which would reasonably suggest that the information contained therein is no longer materially correct; or

(b) a shareholder who is an exempt Irish investor (as defined in Section 739D TCA)

Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders.

7. Net Asset Value (Continued)


46

9. Efficient portfolio management & use of financial derivative instruments

The Company may engage in transactions in financial derivative instruments for the purposes of efficient portfolio management and/or to protect against exchange risks, within the conditions and limits laid down by the Central Bank. Such instruments include currency swaps, futures and forward currency contracts. The Fund may use any such financial derivative instrument in order to hedge or gain certain exposures including exposures to currencies, interest rates, instruments, markets, reference rates or financial indices, provided that the Fund may not have an indirect exposure to an instrument, issuer or currency to which it cannot have a direct exposure.

The Investment Manager uses the commitment approach to calculate the exposure of the Fund to financial derivative instruments. Derivatives exposure will not exceed 100% of the Net Asset Value of Fund on a permanent basis. The Fund may not be leveraged in excess of 100% of the Net Asset Value as a result of its investment in financial derivative instruments.

10. Soft commissions

The Investment Manager will pay its own research costs; these are not charged back to any of their clients.

11. Exchange rates

The exchange rates used to translate foreign currency balances and foreign currency-denominated assets and liabilities to GBP at 31 December 2020 and 31 December 2019 were as follows:

Exchange rate to GBP 31 December 2020 31 December 2019

Euro 1.11719 1.18017US Dollar 1.36695 1.32475Swiss Franc 1.20831 1.28282

12. Distributions

TwentyFour Corporate Bond Fund31 December 2020

The following distributions were declared in respect of the GBP share classes:

Distribution Income availableShare class Currency Record Date Pay date per share For DistributionGBP Class I Inc

GBP 28 March 2020Ex-dividend date 31 March 2020 30 April 2020 0.81121 £6,522,743

GBP Class Inc

GBP 28 March 2020 30 April 2020 0.80570 £45,387

GBP Class I Inc

GBP 27 June 2020 31 July 2020 0.78459 £10,136,399

GBP Class Inc

GBP 27 June 2020

31 March 2020

30 June 2020

30 June 2020 31 July 2020 0.77888 £127,193

GBP Class I Inc

GBP 27 September 2020 30 September 2020 30 October 2020 0.76454 £155,865

GBP Class Inc

GBP 27 September 2020 30 September 2020 30 October 2020 0.77053 £10,901,631

GBP Class I Inc

GBP 30 December 2020 31 December 2020 29 January 2021 0.75901 £10,965,048

GBP Class Inc

GBP 30 December 2020 31 December 2020 29 January 2021 0.75274 £193,544

Reinvested £1,023,174Cash £38,024,636

TwentyFour Corporate Bond Fund Total £39,047,810




47

TwentyFour Corporate Bond Fund31 December 2019

The following distributions were declared in respect of the GBP share classes:

Distribution Income availableShare Class Currency Record date Ex-dividend date Pay date per share For DistributionGBP Class I Inc

GBP 28 March 2019 29 March 2019 30 April 2019 0.91113 £5,837,644

GBP Class Inc

GBP 30 April 2019 0.90677 £9,376

GBP Class I Inc

GBP 31 July 2019 0.90702 £6,091,171

GBP Class Inc

GBP

28 March 2019

27 June 2019

27 June 2019

29 March 2019

28 June 2019

28 June 2019 31 July 2019 0.90224 £10,772

GBP Class I Inc

GBP 27 September 2019 30 September 2019 31 October 2019 0.85675 £6,153,057

GBP Class Inc

GBP 27 September 2019 30 September 2019 31 October 2019 0.85180 £12,849

GBP Class I Inc

GBP 30 December 2019 31 December 2019 31 January 2020 0.80163 £6,543,247

GBP Class Inc

GBP 30 December 2019 31 December 2019 31 January 2020 0.79658 £34,215

Reinvested £167,582Cash £24,524,751

TwentyFour Corporate Bond Fund Total £24,692,333

13. Reporting Fund Status

The Company has received certification as a Distributing Fund for the purpose of Chapter V of Part XVII of the UK Income & Companies Taxes Act 1998 for the financial year ended 31 December 2020. Her Majesty's Revenue and Customs in the United Kingdom (“HMRC”) has certified the Company as a Reporting Fund.

14. Contingent Liabilities

There are no contingent liabilities as at 31 December 2020 (31 December 2019: Nil).

15. Leverage

The Fund did not use leverage during the financial year ended 31 December 2020 (31 December 2019: Nil).

16. Directors’ Remuneration

Unless and until otherwise determined from time to time by the Company in a general meeting, the ordinary remuneration of each Director shall be determined from time to time by resolution of the Directors. Any Director who is appointed as an Executive Director (including for this purpose the office of chairman or deputy chairman) or who serves on any committee, or who otherwise performs services which in the opinion of the Directors are outside the scope of the ordinary duties of a Director, may be paid such extra remuneration by way of fees, commission or otherwise as the Directors may determine. The Directors may be paid all travelling, hotel and other out-of-pocket expenses properly incurred by them in connection with their attendance at meetings of the Directors or committees established by the Directors or general meetings or separate meetings of the holders of any class of shares of the Company or otherwise in connection with the discharge of their duties. For further detail please refer to note 5 related party transactions.

12. Distributions (Continued)

OBH1

Highlight

30

OBH1

Highlight


48


17. Significant events during the year

Brexit


COVID-19

Since the start of January 2020, global financial markets have been monitoring and reacting to the novel coronavirus (COVID-19). The eventual impact on the global economy and markets will largely depend upon how quickly legalisation and guidance constraining the activities of consumers and businesses is removed and the size and persistence of government and central bank stimulus. The Company’s Board of Directors continues to monitor this situation closely.

Investors should be aware of the liquidity risk presented by this global pandemic. While market functioning has improved almost to pre-crisis normality, there is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Fund’s liquidity risk is managed by the Investment Manager in accordance with policies and procedures in place. The Investment Manager will normally keep an allocation of cash to meet pending liabilities that may arise from time to time. The Company’s expected cash flows on these instruments do not vary significantly from this analysis, except for net assets attributable to holders of redeemable participating shares. Typically, shares are held by shareholders on a medium or long-term basis. During extreme or unusual market conditions redemption requests received may need to be remitted over several settlement periods.

A large proportion of issuers of the Fund’s assets are taking unprecedented shocks to their revenue with the current situation, but were in viable business models before the COVID-19 crisis, and are now benefitting from the government and central banks supporting them directly and via the banking system. Banks have been allowed to access their counter cyclical buffers, giving them more flexibility on capital, whilst the Bank of England is extending the assets which it will lend against, delivering more liquidity to the banking system and through this to the rest of the economy. Beyond the financial sector the Bank of England has offered unlimited commercial paper to investment grade companies. This helps underwrite the vast majority of the Fund’s holdings, as the exposure to high yield issuers is very low. Investment grade companies have been granted the solvency to ensure that their business models will continue to be viable throughout the crisis and when normal business activity has resumed. The Bank of England has also announced that it will expand its corporate bond purchase program, which involves the Bank buying investment grade bonds issued by companies operating in the UK. This will support a number of the Fund’s holdings directly, those which are eligible for the programme and also the rest, by driving spreads generally lower through the addition of a large buyer in the market. These actions also generated enough confidence to reopen capital markets to issuers and a buoyant primary market has allowed borrowers access any cash they need.

Volatile markets tend to involve a pick-up in investor inflows and outflows as some clients seek safe havens or alter asset allocations. The Fund came into this period with an above average level of liquidity – 18% between cash, gilts and AAA rated supranational bonds. This gave the PMs additional comfort in the Fund’s ability to meet any redemption requests immediately. To maintain that security the PMs sold some corporate bond positions as outflows have arisen. However management have been pleased to see that net redemptions have been limited and those driven purely by rebalancing.

The Prospectus for TwentyFour Global Investment Funds plc was updated on 10 June 2020.



49

The changes to the Prospectus were as follows:

- to reflect the move to upfront anti-money laundering due diligence in the subscription process; and - minor ancillary updates and updates to reflect the passage of time to include:

a) updates to certain of the definitions

b) updates to remove reference to the TwentyFour Senior Secured Bond Fund

c) updated risk factors

e) updates to refer to Euronext Dublin in place of the Irish Stock Exchange plc

f) removal of reference to a Listing Agent / ISE Listing

There have been no other events during the year which require disclosure in these financial statements.

18. Subsequent Events

Distributions to shareholders of distribution shares were paid on 29 January 2021.

The supplement for the sub-fund was updated on 9 March 2021, exclusively for Sustainable Finance Disclosure Regulation (SFDR) compliance reasons.

There were net redemptions of £556.2m which represents 30.6% of the Fund during March 2021. The largest outflow occurred the week of 24 March 2021 with £53.4m redeemed. Year-to-date 2021 net outflows stand at -£405.6m.

Following the Central Bank review of the implementation of Consultation Paper 86 (“CP86”) and the introduction of additional substance requirements for self-managed investment companies (“SMIC”) such as the Company, the Board of Directors took the decision to seek a UCITS management company to take on the required regulatory functions and to move the Company away from its status as a SMIC. The Board of Directors conducted a search for an appropriate service provider and, following extensive due diligence, decided to appoint KBA Consulting Management Limited as UCITS management company for the Company, subject to regulatory approval. The Board of Directors approved the appointment in principle on 31 March 2021 and the necessary legal and regulatory work is now being undertaken. The Board of Directors expects the process to be completed later in 2021.

Brian Fennessy was appointed as a Director on 31 March 2021.

Cormac Byrne resigned as a Director on 31 March 2021.

There have been no other significant events affecting the Company since 31 December 2020 that require recognition or disclosure in these financial statements.

19. Cyber Security Risk

Cyber security breaches may occur allowing an unauthorized party to gain access to assets of the Fund, Shareholder data, or proprietary information, or may cause the Platform, the Investment Manager, the Distributor, the Administrator or the Depositary to suffer data corruption or lose operational functionality.

The Fund may be affected by intentional cyber security breaches which include unauthorised access to systems, networks, or devices (such as through “hacking” activity); infection from computer viruses or other malicious software code; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. In addition, unintentional incidents can occur, such as the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws). A cyber security breach could result in the loss or theft of Shareholder data or funds, the inability to access electronic systems, loss or theft of proprietary information or corporate data, physical damage to a computer or network system, or costs associated with system repairs.

17. Significant events during the year (Continued)


50


20. Common Reporting Standard (“CRS”) Data Protection Information Notice

Such incidents could cause the Company, the Investment Manager, the Distributor, the Administrator, the Depositary, or other service providers to incur regulatory penalties, reputational damage, additional compliance costs, or financial loss. Consequently, Shareholders may lose some or all of their invested capital. In addition, such incidents could affect issuers in which a Fund invests, and thereby cause a Fund’s investments to lose value, as a result of which investors, including the relevant Fund and its Shareholders, could potentially lose all or a portion of their investment with that issuer.

The Fund hereby provides the following data protection information notice to all Shareholders in the Fund either as at 31 December 2015 or at any point of time since this date.

For the avoidance of doubt, this notice applies equally to any shareholders that have ceased to hold shares in the Fund since January 1, 2016. Furthermore, it should be noted that this notice may be applicable to Controlling Persons of certain shareholders. The Fund hereby confirm that they intend to take such steps as may be required to satisfy any obligations imposed by (i) the Organisation for Economic Co-operation and Development’s (“OECD’s”) Standard for Automatic Exchange of Financial Account Information in Tax Matters (“the Standard”), which therein contains the CRS, as applied in Ireland by means of the relevant international legal framework and Irish tax legislation and (ii) EU Council Directive 2014/107/EU, amending Directive 2011/16/EU as regards mandatory automatic exchange information in the field of taxation (“DAC2”), as applied in Ireland by means of the relevant Irish tax legislation, so as to ensure compliance or deemed compliance (as the case may be) with the Standard/CRS and the DAC2 from 1 January 2016.

In this regard, the Company on behalf of the Fund is obliged under Section 891F and Section 891G of the Irish Taxes Consolidation Act, 1997 (as amended) and regulations made pursuant to those sections to collect certain information about each shareholder’s tax arrangements (and also collect information in relation to relevant Controlling Persons of specific Shareholders).

In certain circumstances, the Company on behalf of the Fund may be legally obliged to share this information and other financial information with respect to a shareholder’s interests in the Fund with the Irish Revenue Commissioners (and, in particular situations, also share information in relation to relevant Controlling Persons of specific Shareholders). In turn, and to the extent the account has been identified as a Reportable Account, the Irish Revenue Commissioners will exchange this information with the country of residence of the Reportable Person(s) in respect of that ReportableAccount.

In particular, information that may be reported in respect of a shareholder (and relevant Controlling Persons, if applicable) includes name, address, date of birth, place of birth, account number, account balance or value at year end (or, if the account was closed during such year, the balance or value at the date of closure of the account), any payments (including redemption and dividend/interest payments) made with respect to the account during the calendar year, tax residency(ies) and tax identification number(s).

21. Approval o the Financial Statements

These financial statements were approved by the Directors on 8 April 2021.


Schedule of Investments

51



Holdings Financial assets at fair value through profit or lossFair Value

GBP% of

Net Assets

Bonds: 98.06% (2019: 97.15%)

Corporate Bonds - Long Positions: 88.09% (2019: 77.79%)

Australia: 2.29% (2019: 1.37%)

15,600,000 APT Pipelines Ltd CB 2.00% 15/07/2030 15,783,902 0.8724,406,000 QBE Insurance FRN 6.12% 24/05/2042 25,866,992 1.42

Total Australia 41,650,894 2.29

Austria: 0.10% (2019: 0.00%)

2,100,000 Volksbanken Kapitalanlageges FRN 2.75% 06/10/2027 1,886,029 0.10

Total Austria 1,886,029 0.10

Belgium: 1.71% (2019: 2.30%)

34,300,000 Argenta Spaarbank FRN 3.88% 24/05/2026 31,186,290 1.71

Total Belgium 31,186,290 1.71

Bermuda: 0.42% (2019: 0.78%)

6,575,000 Hiscox FRN 6.13% 24/11/2045 7,675,550 0.42

Total Bermuda 7,675,550 0.42

Denmark: 1.35% (2019: 1.32%)

17,400,000 Orsted FRN 4.88% 12/01/2032 24,503,428 1.35

Total Denmark 24,503,428 1.35


Schedule of Investments (Continued)

52


Holdings Financial assets at fair value through profit or loss (continued)Fair Value

GBP % of

Net Assets

Corporate Bonds - Long Positions: 88.09% (2019: 77.79%) (continued)

France: 2.68% (2019: 4.77%)

17,900,000 Alstom CB 0.25% 14/10/2026 16,245,067 0.8923,700,000 Orange S.A. FRN 1.75% 31/12/2049 21,983,278 1.219,603,000 Orange S.A. FRN 5.75% 31/12/2049 10,557,298 0.58

Total France 48,785,643 2.68

Germany: 1.10% (2019: 0.00%)

11,800,000 Allianz FRN 3.50% 31/12/2049 8,842,770 0.4912,000,000 EnBW Energie Baden-Wuerttemberg CB 1.88% 29/06/2080 11,146,457 0.61

Total Germany 19,989,227 1.10

Italy: 1.01% (2019: 0.00%)

19,550,000 Enel CB 2.25% 31/12/2049 18,277,805 1.01

Total Italy 18,277,805 1.01

Jersey: 2.76% (2019: 4.13%)

10,890,000 CPUK Finance CB 3.59% 28/02/2025 11,739,839 0.655,399,000 CPUK Finance CB 3.69% 28/02/2028 5,983,925 0.338,216,000 Heathrow Funding CB 5.88% 13/05/2041 12,647,323 0.69

13,600,000 HSBC Bank Capital Funding Sterling 1 FRN 5.84% 31/12/2049 19,902,444 1.09

Total Jersey 50,273,531 2.76

Luxembourg: 1.39% (2019: 1.43%)

15,741,000 Aroundtown CB 3.25% 18/07/2027 17,660,288 0.97




53



GBP % of

Net Assets


Luxembourg: 1.39% (2019: 1.43%) (continued)

7,200,000 Aroundtown FRN 4.75% 31/12/2049 7,558,650 0.42

Total Luxembourg 25,218,938 1.39

Mexico: 1.17% (2019: 1.57%)

15,179,000 América Móvil S.A.B. de C.V. FRN 5.75% 28/06/2030 21,250,278 1.17

Total Mexico 21,250,278 1.17

Netherlands: 4.40% (2019: 2.40%)

8,400,000 ASR Nederland FRN 4.63% 31/12/2049 8,163,891 0.4517,675,000 ASR Nederland FRN 5.13% 29/09/2045 18,866,307 1.048,724,847 Highbury Finance B.V. ABS 7.02% 20/03/2023 9,579,487 0.528,800,000 Iberdrola International CB 1.87% 31/12/2049 8,131,651 0.45

20,000,000 ING Groep FRN 1.00% 13/11/2030 18,139,975 1.0017,000,000 NN Group CB 4.63% 08/04/2044 17,141,515 0.94

Total Netherlands 80,022,826 4.40

Norway: 0.47% (2019: 0.00%)

8,428,000 Storebrand Livsforsikring CB 6.88% 04/04/2043 8,540,279 0.47

Total Norway 8,540,279 0.47




54



GBP % of

Net Assets


Sweden: 1.51% (2019: 0.47%)

28,450,000 Vattenfall FRN 3.00% 19/03/2077 27,519,088 1.51

Total Sweden 27,519,088 1.51

Switzerland: 0.44% (2019: 0.00%)

10,852,000 UBS Group CB 6.88% 31/12/2049 8,033,274 0.44

Total Switzerland 8,033,274 0.44

United Kingdom: 56.75% (2019: 49.35%)

10,134,000 Admiral Group PLC CB 5.50% 25/07/2024 11,645,658 0.6413,773,000 Amcor UK Finance PLC CB 1.13% 23/06/2027 13,038,182 0.7214,090,000 Annington Funding CB 2.65% 12/07/2025 15,167,462 0.8321,065,000 Arqiva Financing CB 5.34% 30/06/2030 26,902,703 1.4813,030,000 Aviva FRN 4.00% 03/06/2055 15,134,996 0.8320,230,000 Aviva FRN 6.13% 14/11/2036 25,035,754 1.3830,637,000 Barclays Bank PLC CB 10.00% 21/05/2021 31,660,919 1.7416,390,000 Bunzl Finance PLC CB 1.50% 30/10/2030 16,923,878 0.9319,700,000 BUPA Finance PLC CB 4.13% 14/06/2035 22,918,736 1.2624,114,000 BUPA Finance PLC CB 5.00% 08/12/2026 28,401,608 1.5612,300,000 Centrica PLC FRN 3.00% 10/04/2076 11,085,634 0.6114,880,000 Centrica PLC FRN 5.25% 10/04/2075 16,126,200 0.8911,612,000 Close Brothers CB 4.25% 24/01/2027 11,951,999 0.6613,758,119 Delamare Finance CB 5.55% 19/02/2029 15,914,651 0.8723,354,000 Direct Line Insurance FRN 4.00% 05/06/2032 27,401,237 1.517,750,000 Direct Line Insurance FRN 4.75% 31/12/2049 7,835,444 0.43

21,100,000 Eastern Power Networks PLC CB 1.88% 01/06/2035 22,777,036 1.2512,294,000 Eversholt Funding PLC CB 2.74% 30/06/2040 13,378,632 0.748,790,000 Eversholt Funding PLC CB 6.36% 02/12/2025 11,038,262 0.61

12,025,000 Experian Finance PLC CB 3.25% 07/04/2032 14,722,518 0.8116,490,000 Firstgroup CB 5.25% 29/11/2022 17,480,128 0.965,445,000 GKN Holdings PLC CB 5.38% 19/09/2022 5,781,238 0.324,500,000 Grainger CB 3.38% 24/04/2028 5,021,304 0.28

16,342,000 HSBC Holdings PLC CB 5.75% 20/12/2027 20,698,932 1.1417,359,000 Investec Bank FRN 4.25% 24/07/2028 18,031,106 0.9911,640,000 Investec Bank PLC CB 4.50% 05/05/2022 12,176,825 0.6719,418,000 Leeds Building Society FRN 3.75% 25/04/2029 21,137,988 1.1632,092,000 Legal & General FRN 4.50% 01/11/2050 37,195,827 2.0523,147,000 Liverpool Victoria Friendly Society Ltd. FRN 6.50% 22/05/2043 25,724,730 1.41




55



GBP % of

Net Assets


United Kingdom: 56.75% (2019: 49.35%) (continued)

15,875,000 Lloyds Banking Group FRN 2.71% 03/12/2035 16,643,760 0.929,178,000 National Express Group PLC CB 2.50% 11/11/2023 9,600,216 0.53

10,400,000 National Express Group PLC CB 4.25% 31/12/2049 10,671,310 0.5910,021,000 National Grid Gas Finance PLC CB 2.63% 22/09/2038 11,465,811 0.6311,537,000 Nationwide Building Society 4.00% 14/09/2026 9,425,857 0.5214,780,000 NGG Finance PLC FRN 5.63% 18/06/2073 16,960,050 0.935,730,000 Paragon Banking CB 6.00% 28/08/2024 5,942,975 0.336,379,000 Paragon of Cos FRN 7.25% 09/09/2026 6,582,650 0.36

12,000,000 Pension Insurance CB 3.63% 21/10/2032 13,164,411 0.7214,450,000 Pension Insurance CB 4.63% 07/05/2031 17,147,355 0.947,850,000 Pension Insurance CB 7.38% 31/12/2049 9,396,428 0.52

12,260,000 PGH Capital PLC CB 6.63% 18/12/2025 14,747,174 0.8111,791,000 Phoenix Group Holdings PLC CB 5.63% 28/04/2031 14,566,306 0.8011,006,000 Prudential FRN 5.63% 20/10/2051 13,241,385 0.7322,930,000 RL Finance Bonds No. 2 PLC FRN 6.13% 30/11/2043 25,924,543 1.4325,993,000 Rothesay Life PLC CB 3.38% 12/07/2026 27,769,496 1.5311,085,000 Rothesay Life PLC FRN 5.50% 17/09/2029 12,410,368 0.6832,940,000 Royal Bank of Scotland Group PLC FRN 3.62% 14/08/2030 35,479,157 1.9517,375,000 Scottish Widows Ltd CB 5.50% 16/06/2023 19,272,162 1.0618,300,000 SSE FRN 3.74% 31/12/2049 19,443,750 1.0718,455,000 SSE FRN 4.75% 16/09/2077 14,074,645 0.7713,484,815 Telereal Secured Finance PLC CB 4.01% 10/12/2031 14,864,982 0.823,920,292 Telereal Securitisation ABS 5.95% 10/12/2031 4,850,443 0.27

21,331,000 Tesco Corporate Treasury Services PLC CB 2.75% 27/04/2030 23,715,164 1.307,170,000 TSB Banking FRN 5.75% 06/05/2026 7,272,968 0.40

33,000,000 Virgin Money UK CB 5.13% 11/12/2030 35,506,006 1.9519,260,000 Vodafone Group PLC CB 2.63% 27/08/2080 17,764,659 0.9814,300,000 Vodafone Group PLC CB 3.00% 12/08/2056 16,772,084 0.9222,904,000 Western Power Distribution CB 3.50% 16/10/2026 25,583,585 1.4129,024,000 Yorkshire Building Society FRN 3.38% 13/09/2028 31,725,167 1.746,865,000 Zurich Finance UK FRN 6.63% 31/12/2049 7,527,589 0.41

Total United Kingdom 1,031,822,043 56.75

United States: 6.76% (2019: 6.33%)

12,778,000 Digital Stout CB 3.75% 17/10/2030 15,592,592 0.8631,807,000 Fidelity National Information Services CB 2.25% 03/12/2029 34,664,223 1.917,202,000 Stanley Black & Decker 4.00% 15/03/2060 5,616,690 0.31

23,650,000 Verizon Communications CB 1.13% 03/11/2028 24,055,704 1.3214,750,000 Verizon Communications CB 3.38% 27/10/2036 18,903,759 1.04




56



GBP % of

Net Assets


United States: 6.76% (2019: 6.33%) (continued)

21,600,000 Wells Fargo Bank 5.25% 01/08/2023 24,084,773 1.32

Total United States 122,917,741 6.76

Virgin Islands: 1.78% (2019: 1.57%)

30,102,000 Global Switch CB 4.38% 13/12/2022 32,294,362 1.78

Total Virgin Islands 32,294,362 1.78

Total Corporate Bonds - Long Positions 1,601,847,226 88.09

Government Bonds - Long Positions: 9.97% (2019: 19.36%)

Supranational: 0.00% (2019: 7.23%)

United Kingdom: 9.97% (2019: 12.13%)

38,000,000 United Kingdom (Government of) Bds 1.75% 22/01/2049 47,857,200 2.6360,100,000 United Kingdom (Government of) Bds 3.50% 22/01/2045 96,983,370 5.3425,150,000 United Kingdom (Government of) Bds 4.75% 07/12/2030 36,422,985 2.00

Total United Kingdom 181,263,555 9.97

Total Government Bonds - Long Positions 181,263,555 9.97

Total Bonds 1,783,110,781 98.06




57



GBP % of

Net Assets

Financial Derivative Instruments: 0.14% (2019: 0.01%)

Forward Currency Contracts: 0.14% (2019: 0.01%)

Counterparty Currency Buys

Currency Sells

Currency Rate

Maturity Date

Unrealised Gain

% of Net Assets

Northern Trust GBP 266,418,214EUR

295,594,254 0.9013 11/01/2021 1,820,235 0.10

Northern Trust GBP 47,797,724 USD 64,464,551 0.7415 11/01/2021 639,422 0.04Northern Trust GBP 3,051,950 EUR 3,359,939 0.9083 11/01/2021 44,337 –Northern Trust GBP 2,793,769 EUR 3,100,000 0.9012 11/01/2021 18,838 –

Total Fair Value Gains on Forward Currency Contracts 2,522,832 0.14

Total Financial assets at fair value through profit or loss 1,785,633,613 98.20

Financial liabilities at fair value through profit or loss

Financial Derivative Instruments: 0.00% (2019: (0.02%))

Forward Currency Contracts: 0.00% (2019: (0.02%))

Fair Value GBP

% of Net Assets

Total Value of Investments 1,785,633,613 98.20Cash and cash equivalents 23,906,894 1.31Other Net Assets 8,786,504 0.49Net Assets Attributable to Holders of Redeemable Participating Shares 1,818,327,011 100.00

Portfolio Classification (unaudited)% of

Total Assets*Transferable securities admitted to official stock exchange listing or traded on a regulated market 96.79Financial derivative instruments dealt in on the OTC market 0.14Other assets 3.07Total Assets 100.00

*This is a UCITS Regulations requirement.



Schedule of Significant Portfolio Movements (unaudited)

58



Largest Purchases Cost GBP

United Kingdom (Government of) Bds 4.75% 07/12/2030 63,384,545United Kingdom (Government of) Bds 1.75% 22/01/2049 49,009,060Legal & General FRN 4.50% 01/11/2050 34,343,830Royal Bank of Scotland Group PLC FRN 3.62% 14/08/2030 34,081,865Virgin Money UK CB 5.13% 11/12/2030 32,947,200Fidelity National Information Services CB 2.25% 03/12/2029 27,292,019United Kingdom (Government of) Bds 3.50% 22/01/2045 26,650,305Direct Line Insurance FRN 4.00% 05/06/2032 24,989,716Aviva FRN 6.13% 14/11/2036 24,826,703Verizon Communications CB 1.13% 03/11/2028 23,498,167GlaxoSmithKline Capital PLC CB 1.25% 12/10/2028 22,836,910Yorkshire Building Society FRN 3.38% 13/09/2028 22,178,917Tesco Corporate Treasury Services PLC CB 2.75% 27/04/2030 22,165,768BUPA Finance PLC CB 5.00% 08/12/2026 22,094,488Vattenfall FRN 3.00% 19/03/2077 21,965,976Orange S.A. FRN 1.75% 31/12/2049 21,530,271Eastern Power Networks PLC CB 1.88% 01/06/2035 21,133,509América Móvil S.A.B. de C.V. FRN 5.75% 28/06/2030 20,312,259BUPA Finance PLC CB 4.13% 14/06/2035 19,657,926Orsted FRN 4.88% 12/01/2032 19,600,447HSBC Holdings PLC CB 5.75% 20/12/2027 19,553,878SSE FRN 3.74% 31/12/2049 18,426,300ING Groep FRN 1.00% 13/11/2030 17,653,951Verizon Communications CB 3.38% 27/10/2036 17,592,520Global Switch CB 4.38% 13/12/2022 17,556,719Vodafone Group PLC CB 2.63% 27/08/2080 17,473,851Enel CB 2.25% 31/12/2049 17,405,856NN Group CB 4.63% 08/04/2044 17,315,612Firstgroup CB 5.25% 29/11/2022 16,925,995Lloyds Banking Group FRN 2.71% 03/12/2035 16,554,733Bunzl Finance PLC CB 1.50% 30/10/2030 16,348,278Argenta Spaarbank FRN 3.88% 24/05/2026 15,918,617Barclays Bank PLC CB 10.00% 21/05/2021 15,677,040Aviva FRN 6.63% 03/06/2041 15,597,215Centrica PLC FRN 5.25% 04/10/2075 15,405,750Liverpool Victoria Friendly Society Ltd. FRN 6.50% 22/05/2043 15,212,652Pension Insurance CB 4.63% 07/05/2031 15,004,656SSE FRN 4.75% 16/09/2077 14,841,595Western Power Distribution CB 3.50% 16/10/2026 14,460,043CYBG FRN 5.00% 09/02/2026 14,408,555ASR Nederland FRN 5.13% 29/09/2045 14,259,058


Schedule of Significant Portfolio Movements (unaudited) (Continued)

59


Largest Sales Proceeds GBP

European Investment Bank Bds 4.50% 07/03/2044 63,073,090United Kingdom (Government of) Bonds 1.63% 22/10/2028 52,833,634United Kingdom (Government of) Bds 4.75% 07/12/2030 26,657,689GlaxoSmithKline Capital PLC CB 1.25% 12/10/2028 23,550,915Aviva FRN 6.63% 03/06/2041 21,586,430Lloyds Bank PLC 7.63% 22/04/2025 20,928,348Experian Finance PLC CB 2.13% 27/09/2024 16,331,424Pension Insurance PLC 6.50% 03/07/2024 15,915,125Anheuser-Busch Inbev S.A. 1.75% 07/03/2025 15,132,674America Movil Sab De CV 6.38% 06/09/2073 14,450,000Bunzl Finance PLC 2.25% 11/06/2025 13,960,575BUPA Finance PLC CB 5.00% 25/04/2023 13,519,045Credit Agricole S.A. 7.38% 18/12/2023 12,168,632PGH Capital PLC CB 4.13% 20/07/2022 11,812,139National Westminster Bank PLC CB 6.50% 07/09/2021 11,177,700Sse PLC 3.88% 31/12/2049 10,040,000European Investment Bank Bds 5.50% 15/04/2025 9,687,934Bank of America Corporation CB 5.50% 22/11/2021 9,414,033Orsted 2.50% 16/05/2033 9,220,815Legal & General Group FRN 5.13% 14/11/2048 8,765,472Fidelity National Information Services 2.60% 21/05/2025 8,672,000Sse PLC 3.63% 16/09/2077 8,643,920Heathrow Funding Ltd. 2.75% 09/08/2049 8,361,447Total Capital International S.A. 1.75% 07/07/2025 7,854,972Informa PLC 3.13% 05/07/2026 7,813,901Saga Plc 3.38% 12/05/2024 7,409,700Cnp Assurances Bds 7.38% 30/09/2041 7,309,860Hiscox FRN 6.13% 24/11/2045 7,120,754Sabine Pass Liquefaction LLR SR Sec 5.63% 01/02/2021 6,936,141Firstgroup Bds 6.88% 18/09/2024 6,904,976Virgin Money UK PLC 4.00% 03/09/2027 6,886,091Student Finance 2.67% 30/09/2024 6,599,458Assura Financing PLC 1.50% 15/09/2030 6,362,790American Tower 3.13% 15/01/2027 6,353,023Legal & General Group FRN 10.00% 23/07/2041 6,084,565McKesson Corp CB 3.13% 17/02/2029 5,742,656



Supplemental Information (unaudited)

60


Remuneration Policy

The Company has a remuneration policy in place to ensure compliance with UCITS V and all relevant regulations. This remuneration policy imposes remuneration rules on staff and senior management within the Company whose activities have a material impact on the risk profile of the Fund. The Directors will ensure that its remuneration policies and practices are consistent with sound and effective risk management, will not encourage risk-taking which is inconsistent with the risk profile of the Fund and the Articles and are consistent with UCITS V. The Directors will ensure that the remuneration policy is at all times consistent with the business strategy, objectives, values and interests of the Company, the Fund and shareholders and includes measures to ensure that all relevant conflicts of interest may be managed appropriately at all times. Further details with regard to the remuneration policy are available at the following website: www.twentyfouram.com/regulatory. The remuneration policy may be obtained free of charge on request from the Company.

In addition, as part of the Company’s annual review of its remuneration policy, the Company will require a confirmation from the Investment Manager that it has appropriate arrangements in place to ensure that there is no circumvention of the remuneration rules set out in the European Securities and Markets Authority (“ESMA”) guidelines.

The Investment Manager has confirmed that for the period ending 31 December 2020, the Investment Manager’s remuneration practices and procedures were consistent with the ESMA guidelines on sound remuneration policies under the UCITS Directive (the “ESMA Guidelines”) and the Investment Manager has appropriate arrangements in place to ensure that there is no circumvention of the remuneration rules set out in the ESMA guidelines which cover payments made to identified staff as compensation for the performance of investment management activities on behalf of the Company.

Securities Financing Transactions Regulation

The Securities Financing Transactions Regulation, as published by the ESMA, aims to improve the transparency of the securities financing markets. Disclosures regarding exposure to Securities Financing Transactions (“SFTs”) will be required on all report and accounts published after 13 January 2017. During the financial year ended 31 December 2020, the Fund did not enter into SFTs.

Annual Report and Audited Financial Statements · 2019. 12. 30. · TwentyFour Global Investment...

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