The fund aims to provide:
- a growing level of income over any three-year period by investing in a mix of assets from anywhere in the world; and
- capital growth of 2-4% on average each year over any three-year period.
There is no guarantee that the fund will achieve its objective over this, or any other, period. The income distributions and the value of investments may rise and fall, and investors may not recoup the amount they originally invested.
Investment policy and strategy
Core investment: The fund typically invests directly in a mix of assets including company shares, bonds, currencies and property (only through other funds). The fund may also invest in these assets via derivatives or through other funds. A minimum of 70% of the fund is in sterling or hedged back to sterling.
Other investments: The fund may invest in cash or assets that can be turned into cash quickly.
Derivatives: The fund may invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.
Strategy in brief: The fund employs a flexible investment approach with the freedom to invest in different types of assets in response to changes in economic conditions and the valuation of assets.
The approach combines in-depth research to work out the value of assets over the medium to long term, with analysis of market reactions to events to identify investment opportunities. The fund typically invests 20-50% of its assets in company shares, 40-80% in bonds and up to 20% in other assets, which can include convertibles.
Benchmark: The fund is actively managed and it has no benchmark. Investors can assess the performance of the fund by its objective to provide a growing level of income and capital growth of 2-4% per annum, both measured over any three-year period. The fund's annual report for each financial year will include details of the fund’s performance in relation to its objective.
You can find more information about the objective and investment policy of the fund in the Prospectus.
Risks associated with the fund
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset's value vary in an unexpected way, the fund may lose as much as or more than the amount invested.
The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.
Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
The Fund allows for the extensive use of derivatives
The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.