To be achieved through a policy of actively investing in a diversified portfolio, comprising UK and overseas equities and fixed interest securities. Invest in companies whose shares are admitted to trading on a regulated market. However, it may invest in a small number of equities and fixed interest securities of companies whose capital is not admitted to trading on a regulated market. Investment in overseas equities is utilised by the Company to increase the risk diversification of the portfolio of Company and to reduce dependence on the UK economy in addressing the growth and income elements of the investment objective of Company. Itmay invest in derivatives, money market instruments, currency instruments, contracts for differences, futures, forwards and options for the purposes of (i) holding investments and (ii) hedging positions against movements in, for example, equity markets, currencies and interest rates.
A management fee is payable quarterly in arrears and is equal to 0.5% p.a. of the NAV of the Company. An uplift of 0.25% of the NAV applies to the fee if the performance of the Company above benchmark over the 36-month period to the Calculation Date, otherwise reduced to the lower adjusted amount of 0.25% of the NAV. Contract terminable on notice period of 3 months.
The Company may declare dividends as justified by funds available for distribution. The Company will not retain in respect of any accounting period an amount which is greater than 15% of net revenue in that period. The dividend payments are split in order to better reflect the sources of the Company’s income. Recurring income from dividends on underlying holdings is paid out as ordinary dividends.