The investment objective of the company is to achieve attractive total returns per share principally through capital growth over a long term period. The company will primarily invest in smaller company equities quoted on markets operated by the London Stock Exchange, where the Portfolio Manager believes the securities are trading below intrinsic value and where this value can be increased through strategic, operational, management and/or financial initiatives.
Management fee is calculated by 1% p.a. of the NAV and 1% p.a. of the market cap of the company. Performance fee will be entitled to 10% of the Excess Amount multiplied by the time weighted average number of Ords. Agreement for an initial term of 12 months, terminable by giving not less than 6 months notice.
The Board has not recommended a dividend and does not expect to do so in the near future, as the Portfolio Manager's style is one that focuses on uncovering long-term value. The Directors expect that returns for shareholders will be primarily driven by capital growth of the shares rather than dividend income. The Company will pay a dividend only if the need arises in order to retain investment trust status.