Category: Open Ended Investment Company
The objective of the Fund is to generate a level of income which increases year on year as well as the potential to grow the amount invested over a rolling period of seven to ten years. The Fund’s target is to have a return greater than the FTSE All-Share Total Return index (12pm adjusted), which is used in the calculation of performance fees. The Fund will aim to achieve this objective through investing at least 90% of the Fund in the shares of companies that are listed on the London Stock Exchange (or other UK exchanges). These will include large, medium and small-sized companies. The Fund is not expected to invest more than 25% in the shares of smaller company shares, which are widely viewed as being riskier than shares in larger companies. Investing in shares of smaller companies enables the Fund to find dividend income in a broader set of companies and, in the opinion of the fund managers, differentiates the Fund from other similar funds. At all times at least two thirds of the Fund is invested in the shares of companies that are domiciled, incorporated or have a significant portion of their business in the UK. The Fund invests in businesses that are out of favour with many other investors but which the fund managers believe are undervalued at their current share price. These are companies which pay a dividend and where the fund managers believe the company will grow its dividend over time. Every share held in the Fund has a prospective dividend yield (the total annual dividends paid by the company expressed as a percentage of its share price) greater than the average dividend yield of the FTSE All-Share Total Return index, at the time the share was first purchased, and with a strict selling discipline once a company’s dividend yield falls below the average level. Other than investing in shares, the Fund may also invest in money market instruments, deposits, warrants and units in other collective investment schemes. Any income the Fund generates for this share class will be paid out quarterly. Performance of the Fund may be measured against the FTSE All-Share Total Return Index (the “Index”). The Index is used as a target benchmark for the Fund as the Performance Fee for the Fund is payable when the performance of the Fund exceeds that of the Index. The use of the Index does not limit the investment decisions of the fund managers. Therefore the shareholdings of the Fund may differ significantly from those of the Index, however it may influence the weightings of investments in components of the Index. The Index is used as it is the broadest available index of shares listed on the London Stock Exchange, representing at least 98% of the market value of the shares listed. The Fund is activelymanaged which means that the fund managers use their expertise to pick investments to achieve the objective of the Fund. You can buy and sell shares in the Fund, before 5.00pm, on any day which is a working day in London.