The fund aims to provide a combination of capital growth and income of at least 3-month Euribor plus 4% a year, before any Ongoing Charges over any three-year period. The 3-month Euribor is the rate at which banks borrow money from each other. The fund aims to achieve this while seeking to limit losses and minimise the degree to which the value of its assets changes over time. Managing the fund in this way reduces its ability to achieve returns significantly above three-month EURIBOR plus 4%.
Investment policy and strategy
Core investment: The fund typically invests via derivatives in a mix of assets from anywhere in the world, including company shares, bonds, currencies, cash and assets that can be turned quickly into cash. The fund may also invest directly, or through other funds. The fund may invest in Chinese bonds denominated in Renminbi.
Other investments: The fund may invest in asset-backed securities, contingent convertible debt securities, other funds and cash or assets that can be turned into cash quickly.
Derivatives: The fund invests via derivatives and may use derivatives with the aim of reducing the risks and costs of managing the fund.
Strategy in brief: The fund has a highly flexible investment approach, with the freedom to invest in different types of assets from anywhere in the world. The approach combines in-depth research to work out the ‘fair’ value of assets over the medium to long term, with analysis of market reactions to events to identify investment opportunities. The blend of assets held in the fund is regularly adjusted depending on where the investment manager sees the most value, and to manage risks in order to limit losses. The investment manager looks to manage risk by combining different assets which are affected by market conditions in different ways, and by employing derivatives strategies to help protect or profit from falling markets. Where the investment manager believes it appropriate, the fund may hold a high level of cash.
Performance comparator: The fund is actively managed. The 3-month Euribor plus 4% is a point of reference against which the performance of the fund is measured.
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.
The fund may invest in China A shares. Investments in assets from the People's Republic of China are subject to changeable political, regulatory and economic conditions, which may cause difficulties when selling or collecting income from these investments. In addition, such investment is made via the 'Stock Connects' systems, which may be more susceptible to clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.
Investing in bonds from China, denominated in Renminbi and traded on the China Interbank Bond Market, may be subject to greater clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.
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.