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Aberdeen Standard Equity Income
The manager is excited about the Trust’s prospects. There is significant total return potential from a combination of high-yield, resilient income stocks (with potential for dividend yields to compress) and cheaply valued cyclicals/financials (with rapid dividend-recovery prospects). We expect many of our holdings to emerge from the crisis with increased market share. This should enhance the prospects for dividend and capital gains.
Equity income using an index-agnostic approach focusing on our best ideas from the full UK market cap spectrum.
The Company's objective is to provide shareholders with an above average income from their equity investment while also providing real growth in capital and income. The Directors set the investment policy which is to invest in a diversified portfolio consisting mainly of quoted UK equities which will normally comprise between 50 and 70 individual equity holdings. In order to reduce risk in the Company without compromising flexibility:• no holding within the portfolio will exceed 10% of aggregate net assets; and• the top ten holdings within the portfolio will not exceed 50% of net assets. The Company may invest in convertible preference shares, convertible loan stocks, gilts and corporate bonds. The Directors set the gearing policy which is to operate within parameters of between 5% net cash and 15% net gearing for the level of gearing that can be employed.