Investment Objective and Policy
The investment objective of the Company is to conduct an orderly realisation of its assets, to be effected in a manner that seeks to achieve a balance between maximising the value of the Company's investments and progressively returning cash to Shareholders.
The Company's investment policy is to invest primarily in private equity investments, either through private equity funds managed by Dunedin or directly.
The Company may not make any new investments save that:
(i) investment may be made to honour commitments to funds under existing contractual arrangements;
(ii) further investment may be made into the Company's direct investments in order to preserve the value of such investments; and
(iii) realised cash may be invested in liquid cash-equivalent securities, including short-dated corporate bonds, government bonds, cash funds or bank cash deposits pending its return to Shareholders in accordance with the Company's investment objective.
No more than 10% of the Company's total assets may be invested in any single cash equivalent instrument or placed on deposit with any single institution, except that this limit does not apply to investment in government bonds, which shall be unconstrained.
The use of gearing shall be limited to the investment of up to £20 million of borrowed funds or, if less, 20% of the Company's NAV (measured at the time of drawdown).
The Company will not invest in other listed closed-end investment funds.
The Company will continue to comply with the requirements of UK investment trust legislation and the restrictions imposed on closed-ended investment funds by the Listing Rules in force from time to time.
In common with most investment companies, the Company may borrow to finance further investment. Although the Company is permitted by its Articles of Association to borrow an amount equal to the amount paid up on the issued share capital and the total amounts standing to the credit of the capital and revenue reserves of the Company, the Board's policy is that financial gearing will not exceed 40% of gross asset value.