Objective and Investment Policy

Investment Objective

The Company aims to generate a regular and attractive level of income with low asset value volatility.

Investment Policy

The Company seeks to achieve its investment objective by investing in a diversified portfolio of public and private debt and debt-like instruments ("Debt Instruments"). Over the longer term, it is expected that the Company will be mainly invested in private Debt Instruments, which are those instruments not quoted on a stock exchange.

Risks associated with this Company

• The value of investments will fluctuate, which will cause share prices to fall as well as rise and you may not get back the original amount you invested. There is no guarantee that the Company’s Investment Objective will be achieved.

• The Company may be exposed to the possibility that a debtor will not meet its repayment obligations.

• Changes in interest rates may adversely affect the market value of some of the Company’s investments.

• Debt Instruments may be repaid by issuers at short notice: as a result it may be difficult for the Company to reinvest capital at an attractive price or at all, which may affect it adversely.

• A variety of factors, such as market conditions, liquidity concerns or Company performance may lead to a reduction in trading volume or shares trading at a discount to their net asset value. Shareholders may also be unable to realise their investment at quoted market prices or at all.

• Please note that this is not an exhaustive list. Please refer to the Risk section in the Prospectus.

Overview

Trust Risks

Trust Facts

Documents

Trust Documents

• COVID-19 - Investment manager's update
• Investor disclosure document
• Terms of reference - Audit Committee
• Terms of reference - Management Engagement Committee
• Terms of reference - Nomination Committee
• Terms of reference - Remuneration Committee

Dividends

Non-executive directors

David Simpson - Chairman

Appointed as a non-executive Director on 18 September 2018. David Simpson is a qualified solicitor and was a partner at KPMG for 15 years until 2013, culminating as global head of M&A. Before that he spent 15 years in investment banking, latterly at Barclays de Zoete Wedd Ltd. He is chairman of Ecofin Global Utilities and Infrastructure Trust plc, a non-executive Director of the British Geological Survey and a non-executive Director of ITC Limited, a major listed Indian company. David graduated from the University of Cambridge with a degree in Economics and Law. 

Richard Boléat - FCA Audit Committee Chairman and Senior Independent Director

Appointed as a non-executive Director on 18 September 2018. Richard Boléat is a Fellow of the Institute of Chartered Accountants in England & Wales, having trained with Coopers & Lybrand in Jersey and the United Kingdom. After qualifying in 1986, he subsequently worked in the Middle East, Africa and the UK for a number of commercial and financial services groups before returning to Jersey in 1991. He was formerly a Principal of Channel House Financial Services Group from 1996 until its acquisition by Capita Group plc (‘Capita’) in September 2005. Richard led Capita’s financial services client practice in Jersey until September 2007, when he left to establish Governance Partners, L.P., an independent corporate governance practice. Alongside his roles at the Company, he currently acts as Chairman of CVC Credit Partners European Opportunities Limited and SME Credit Realisation Fund Limited, both of which are listed on the London Stock Exchange. He is regulated in his personal capacity by the Jersey Financial Services Commission.

Mark Hutchinson - non-executive Director

Appointed as a non-executive Director on 17 July 2018. Mark joined M&G in 1997 as chair of private assets and has overseen the start of a number of activities, including private placements, leveraged finance, project and infrastructure finance and structured credit. In addition, he started the initiative for purchasing properties with long leases for M&G's annuity funds in 2000. He continues to be involved in the management and controls of private assets within M&G. Mark began his career in banking in 1980 with Midland Bank, going on to join Citibank and then, in 1995, Bank of America as a relationship manager for UK and global corporates. Mark graduated from the University of Cambridge with a degree in Economics.

Barbara Powley - non-executive Director

Appointed as a non-executive Director on 18 September 2018. Barbara Powley is a chartered accountant with over 30 years’ experience in the investment trust industry. Prior to her retirement in March 2018 she was a director in BlackRock’s closed-ended funds team from 2005 with responsibility for the oversight and administration of BlackRock’s stable of investment trusts. From 1996 to 2005, she had a similar role at Fidelity. Barbara graduated from the University of York with a degree in Mathematics and Economics. On 18 November 2020, Barbara was appointed as non-executive Director of Montanaro UK Smaller Companies Investment Trust plc. She brings to the Board her extensive knowledge of the investment trust sector and its regulatory requirements.

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