Mon Mar 31 10:40:00 UTC 2025: ## Oakley Capital Investments Ditches Dividends for Share Buybacks
**London, UK** – Oakley Capital Investments (OCI), a Bermudan-domiciled investment company listed in London, announced it will cease paying dividends in favor of share buybacks. This decision stems from OCI’s unique structure, which, unlike UK investment trusts, does not mandate a minimum dividend payout. As a Bermudan company, OCI is not subject to the 85% income distribution rule applicable to UK investment trusts.
OCI’s primary focus is long-term capital appreciation, targeting outperformance of the FTSE All-Share index. Because most of its returns derive from capital gains rather than dividend or interest income from its private equity holdings, the company believes share buybacks offer a more efficient way to return value to shareholders. While the exact split between capital gains and revenue is not publicly disclosed due to its accounting structure, it is understood that past dividends largely represented distributions of capital profits.
Analysts are now examining whether this strategy, adopted by OCI, could be replicated by other non-UK domiciled investment companies listed in London. There are nearly 100 such companies that might consider a similar approach given the advantages of share buybacks in a capital-gains-focused investment strategy.
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