The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the global equities market over any five-year period.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in shares issued by companies across any sector and of any size that are domiciled in any country, including emerging markets. The investment manager seeks to invest in companies that are out of favour with the market or whose future prospects are not fully recognised by the market at the time of investment.
Other investment: The fund may invest in other funds, cash and assets that can be turned quickly into cash.
Use of derivatives: Derivatives may also be used to manage risks, reduce costs and to manage the impact of changes in currency exchange rates on the fund’s investments.
Strategy in brief: The fund’s focus is on companies which, at the time of investment, the investment manager believes are either out of favour with the market, or whose future prospects are undervalued by the market, but have the potential to restore themselves to health. The investment manager’s investment approach focuses on cashflows and management’s strategy for recovery within a company.
Performance comparator: The fund is actively managed. The MSCI ACWI Index is a point of reference against which the performance of the fund may be measured.
Derivatives: Financial contracts whose value is derived from other assets.
Risks associated with the fund
The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.
Changes in currency exchange rates will affect the value of your investment.
The fund will invest in emerging markets which are generally smaller, more sensitive to economic and political factors, and where investments are less easily bought and sold. In exceptional circumstances, the fund may encounter difficulties when selling or collecting income from these investments, which could cause the fund to incur a loss. In extreme circumstances, it could lead to the temporary suspension of dealing in shares in the fund.
Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.
Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.