The objective of the fund is to provide a high level of income with the opportunity for some capital growth. The mandate allows for 75% of the investable assets within UK Smaller Companies with the remainder invested within Sterling denominated high yield fixed interest debt.
The management of the debt is tasked to Premier Asset Management, whereas the equity portion is managed by UK Smaller Company specialists, Unicorn Asset Management.
The UK Small Cap manager invests in a focused portfolio of stocks aiming to identify good quality companies ahead of an improvement, that is, at a point in their business cycle where their true worth is not fully recognised by the stockmarket. Favoured company characteristics include: experienced and well-motivated management; good cash generation to finance ongoing development allied with a progressive dividend policy and sound operational and financial controls.