To provide Shareholders with an attractive real long-term total return by investing globally in undervalued securities. The portfolio will be managed without reference to the composition of any stock market index.
The AIFM receives a management fee of 0.75% p.a. payable monthly in arrears of the month-end market cap of the issued Ords excluding treasury shares up to GBP 100m and 0.65% above GBP 100m. No performance fee will be paid. The Management Agreement may be terminated by either party giving 12 months written notice.
In financial years where there is a surplus, the Directors are obliged to declare dividends in order for the Company to comply with the rules relating to investment trusts, which provide that an investment trust is not able to retain in excess of 15% of its income from shares and securities. In such event, the Directors may pay an interim dividend (if it appears to the Directors to be justified by the financial position of the Company at the relevant time) and/or pay a final dividend after the relevant AGM of the Company.