The investment objective is to provide investors with a high gross dividend yield and a potential for capital growth by mainly investing in high yielding fixed interest securities. The Company invests predominantly in fixed income securities, including, but not limited to, preference shares, loan stocks, corporate bonds (convertible and/or redeemable) and government stocks. The Company also invests in equities and other income- yielding securities.
Management fee is 0.8% p.a. of total assets up to GBP 200m ,0.70% p.a. of the total assets from GBP200 m to GBP300 m,and 0.60% p.a. in excess of GBP 300m. Management agreement terminable by either party on 12 months notice.
The Board currently expects that the aggregate dividend of the Company for the next financial year will be at a similar level to that of last year and will again be covered by earnings. If the earnings trajectory changes, the Board is prepared to use reserves if it makes sense to do so. The Company expects to pay interim dividends in November, February, May and August.