The Company has maintained a consistent level of dividend for several years. A simple maxim underpins this success: we will only invest when we think we are being adequately rewarded for doing so.
Today, the portfolio is invested across three broad areas of the high yield bond market. Income generators form the core of the fund, made up of bonds issued by non-financial companies that pay a high level of income to compensate for their leveraged balance sheets. Next, banks and subordinated financials - bonds in this area of the market continue to pay a premium over other areas of the market. Finally, credit intensive bonds, which are bonds that have come under price pressure, but that we believe have the right plans in place to turn around their business.