???! Perhaps you should do some more research
I did, I Iooked at this board!
“Gearing” is a misnomer. No or little Gearing. It’s mainly invested in index linkers, gold and some equity. It’s for capital preservation. TJH doesn’t worry about a 30% cut in capital and dividends because he knows things will recover, happily slicing his winners to top up his losers.
In a normal year, the Board would be recommending a modest increase in the annual dividend from 20p to 21p per Ordinary share, in part reﬂecting the further fall in the ongoing charges ratio to 0.77%. However, under the retention test to qualify for investment trust status the Company can only retain 15% of revenue. To preserve this status, the Board is therefore recommending an additional special dividend of 6p per share, making a total payout of 27p per share (20p last year).Investors should note that,as when in the past a special dividend has been similarly declared, this does not imply a repeat of any such extra payment in succeeding years.
tjh290633 wrote: Surpluses from dividends stay in the income account as cash.
Alaric wrote:tjh290633 wrote: Surpluses from dividends stay in the income account as cash.
I don't believe there are any constraints on investment policy such that a declared surplus in the Income account must stay as cash. It would my belief that the Capital Account and Income Account are managed as a single pool. Distinctions between them are for internal reporting only and satisfying the taxation conditions that 85% of the income be distributed and also that apart from the recent changes, capital isn't distributed as dividend.
tjh290633 wrote:I would be more convinced if you could find an IT whose accounts show that the cash held is less than the income reserve.
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