Western Selection PLC

Since Western Selection P.L.C. is an investment company, it has no employees and out-sources all finance, administration and company secretarial tasks to City Group P.L.C., a company in which it has a 48.6% interest. Western holds substantial stakes in a number of U.K. small-cap growth companies (the strategic portfolio), and maintains a portfolio of U.K. and international blue-chip companies (the general portfolio) to smooth out the performance of small-cap holdings.

The directors of Western believe that the company's strategic portfolio has the greatest potential for growth. As the risk associated with these strategic investments is correspondingly greater, the company maintains a general portfolio to generate an increasing income stream, covering overheads and the dividend payment. The composition of the general portfolio is designed to generate a more predictable income stream than that of the strategic portfolio. The general portfolio comprises holdings in blue-chip companies, with investment concentrated in the industry sectors perceived as having the greatest potential for long-term growth. Therefore although the general portfolio can be considered lower risk, via this sector-based or "themed" investment strategy, it has the potential to generate above average returns.