1. Resilient total returns with low volatility
Delivering above-market returns with lower volatility is central to the Trust’s ethos. We aim to achieve this by predominantly investing in high-quality companies, with particular attention paid to the downside risk of any investment. Since Troy’s appointment in 2009, our process has generated returns with significantly lower volatility (click here to see risk analysis) and lower maximum drawdowns than both peers and the market index comparator.
2. Dependable income growth
We aim to provide a steady, regular income that grows consistently from year to year at a rate of 4% per annum, barring unforeseen circumstances. Over the medium term, we aim to fund the dividend from the natural income generated by the portfolio’s underlying investments. The investment trust structure allows us the additional flexibility to smooth the dividend by using the Company’s substantial reserves.
3. Enhanced liquidity through strict discount control
The Company’s Discount Control Mechanism provides liquidity to investors and aims to ensure that the share price trades close to the underlying net asset value on an ongoing basis. The Trust achieves this through its commitment to buy-in shares when there is excess supply in the market and to issue shares when there is excess demand.
Past performance is not a guide to future performance. Performance data relating to the NAV is calculated net of fees with income reinvested unless stated otherwise. Overseas investments may be affected by movements in currency exchange rates. The value of an investment and any income from it may fall as well as rise and investors may get back less than they invested. The historic yield reflects distributions declared over the past twelve months as a percentage of the Trust’s price, as at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions. Tax legislation and the levels of relief from taxation can change at any time. The yield is not guaranteed and will fluctuate. There is no guarantee that the objective or aims of the investments will be met. Investment trusts may borrow money in order to make further investments. This is known as “gearing”. The effect of gearing can enhance returns to shareholders in rising markets but will have the opposite effect on returns in falling markets. Shares in an Investment Trust are listed on the London Stock Exchange and their price is affected by supply and demand. This means that the share price may be different from the NAV.