The fund aims to grow capital over five years or more. Income is not a consideration.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in the shares of companies from around the world.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund's focus is on companies which, at the time of investment, the fund 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.
Companies held in the fund are expected to move through a recovery cycle over three to five years. The fund may invest across a wide range of countries, sectors and company sizes. The fund manager has a relatively simple investment approach, focusing on cashflow and management’s strategy for recovery within a company. Constructive dialogue with company management is therefore a key part of the investment process.
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
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.