M&G High Income’s aim is to achieve an above average and increasing income over the 20 year life of the Company while at the same time seeking to achieve capital growth. M&G High Income’s portfolio comprises mainly high yielding ordinary shares of UK companies listed on the London Stock Exchange. A significant proportion of the portfolio will be made up of companies outside the FTSE 100 Index (at any one time, such stocks shall represent between 5 and 35 % of the portfolio; more typically they will represent between 10 and 25 % of the portfolio). A small proportion of the portfolio may consist of convertible and other fixed interest securities. These will not exceed 30% of the portfolio and will more typically represent around 15%.