Hawksmoor Distribution fund predicts 25% 'haircut' to dividend payments over next 12 months

Next income payment will be 'first to reflect recent travails'

The Hawksmoor Distribution fund is expected to produce a yield of 3.95% over the next 12 months – 25% lower than it "might ordinarily be" according to the firm, following cancellations or deferrals of dividend payments by some companies due to the ongoing coronavirus pandemic.

The team that runs the £195m fund-of-funds, which pays out dividends on a quarterly basis at the end of March, June, September and December each year, said the Q1 pay-out to investors would have been unaffected by the virus, but the June payment will come from income collected in February, March and April  so will "be the first to reflect recent travails". Shareholders 'shut out' of two-thirds of FTSE 100 AGMs "Note that the 30 June payment is always a lower payment than other quarters, so do not be alarmed if the ‘run rate' at this point looks low," it reasoned. "The fund receives...