The investment objective is to seek income and capital growth such that the total return on the net asset value of the Company exceeds the average return on a rolling annual basis of three month sterling Libor plus 2%. The Company aims to deliver this outcome by investing in a diversified portfolio of global fixed and floating rate income asset classes including secured loans, government bonds, high yield (sub-investment grade) corporate bonds, unrated corporate bonds, investment grade corporate bonds and asset backed securities. The Company may also invest in high yielding equities and derivatives. The Company uses a dynamic approach to portfolio allocation across asset classes and is permitted to invest in a single asset class if required. The Company seeks a sensible spread of risk at all times. It can invest in assets of any size, sector, currency or issued from any country.
Management fee is 0.65% p.a. of the Companys net assets, calculated and paid quarterly in arrears. No performance fee. Contract terminable on notice period of 6 months.
The Board is responsible for setting the dividend policy which is to pay four quarterly interim dividends per year as the directors recognise the importance of regular income to its shareholders.