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Investors secure dividend commitment from fund boasting 1,400% return
by Robert St George on Nov 04, 2013 at 12:52
The Marwyn Value Investors fund has committed to a progressive dividend policy, regardless of its portfolio’s performance, following discussions with its shareholders.
Marwyn revealed in August that it wanted to begin investing again, having decided to wind itself down following the financial crisis, when the fund lost nearly 90% of its value. But since its 2009 nadir, Marwyn has returned almost 1,400% compared with the MSCI World index’s up 123% over the same period.
To persuade its backers to let it resume investing, though, Marwyn originally offered to return at least 50% of any capital gains to investors through buybacks and dividends.
‘Since that announcement the company has consulted a wider range of investors, including a material new investor whose interests had not previously been disclosed to the company or its advisers,’ Marwyn has now said. ‘Following those discussions, the company has made a number of amendments to the proposals announced in August.’
The principal change will require Marwyn to pay a progressive dividend every January, commencing with a distribution of 8p per ordinary share at the start of 2014 – equivalent to a yield of around 4%. Marwyn confirmed that this would be met ‘irrespective of the capital gains realised in any year on the investments attributable to the ordinary shares’.
Marwyn invests in small and mid caps globally, with an emphasis on businesses that provide non-discretionary services – such as asbestos removal – and those that profit in weak economies, such as purveyors of cheap entertainment.
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by Danielle Levy on Dec 04, 2013 at 11:37