Cautious Caledonia to focus on income

23rd Nov 2010 08:11

Blue-blood investment firm Caledonia is taking a cautious view of short-term prospects for equity markets and intends to increase liquidity and focus more on income rather than capital growth."A rebalancing of the portfolio will incorporate a specific allocation to income producing investment," chief executive Will Wyatt said."This should provide an increasing part of overall return as we both anticipate a future investment environment in which capital growth may be more challenging and look to support our progressive dividend," he added. NAV over the six months to September rose by 3.5% to £21.05 fully diluted, outperforming the benchmark FT All-share by 5%."Our NAV outperformance of 5% has been against a backdrop of volatile and difficult markets. The outlook for economies and stock markets remains difficult to predict, however we have a portfolio of high quality investments," Wyatt said.The interim dividend rises by 4.7% to 11.1p.