Investories

This is why we use 5% of your initial investment to fund your income in the first year. That allows us to purchase your share portfolio for you and collect the dividend income over the first year. Once this process is established we simply smooth the payments to you in equal monthly instalments from year 2 onwards.

We are simply paying you the dividend income collected by your shares in the previous year.

It is important to note that at Investore we do not provide advice on the suitability of our products. Our aim is to explain the plan and make the risks as clear as possible so that you can make your own informed decision about the plans suitability for your circumstances and risk appetite.

If you are unsure about the suitability of Dividend Income please seek professional advice.

Investopedia defines a corporate action as, “any event that brings material change to a company and affects its stakeholders, including shareholders and bondholders”

For example a merger, whereby two (or more) separate companies (e.g. Company A and Company B) combine into one larger company (Company AB), is a common form of corporate action (A + B = AB). Other common corporate actions include but are not limited to:

• Demerger:  Opposite of merger. AB splits into Company A and Company B.
• Acquisition:  Where one company purchases another company.  Company A purchases Company B, Company A is larger while company B ceases to exist.
• Return of Capital: Situation where a company returns some of the capital invested by shareholders into the firm. The action results in a decrease in the value of the company by the amount returned and differs from a dividend in that the cash is not paid from profits for a particular period but rather the equity value on the firm’s balance sheet. An example may be when a company sells some of its long term assets (e.g. property) and returns the cash received to shareholders rather than keeping the cash on its balance sheet.

Given the frequency of corporate actions, it is highly likely that one of the shares in your portfolio will undergo a corporate action at some point. Under such circumstances we will exercise a collective vote based on the direction deemed most beneficial to shareholders by the Investore Investment Committee. Investore will always seek to make the best decision for our investors as a whole but will not be held liable for any personal issues arising from applying aggregate voting requests.