Investment objective summary

The Fund aims to provide long-term real returns (through a combination of income and capital growth). Real returns are returns in excess of UK inflation (currently measured by the increase in the UK Consumer Price Index). The Fund targets a performance return of UK CPI +5% (gross of fees) per annum over rolling 5-year periods and is therefore managed with reference to an index. The Fund’s real returns and its performance target are not guaranteed over the long term or over any period of time and you may get back less than you invested.

The Fund invests around the world in shares of companies; bonds (contracts to repay borrowed money which typically pay interest at fixed times); property; commodities; other funds (which may be managed by the Investment Manager, other companies in the same group as the Investment Manager or a third party); derivatives (financial contracts whose value is linked to the price of an underlying asset) and cash. Exposure to shares may be up to 85%. The bonds invested in are issued by governments or companies.

Investments may be directly in the assets themselves (excluding property and commodities) or indirectly through other investments and other funds (up to 100%). The Fund also has the flexibility to invest outside of the aforementioned asset classes.

Derivatives may be used for investment purposes (i.e. in order to achieve the Fund’s investment objectives) or for efficient portfolio management purposes e.g. with the aim of either managing the Fund risks or reducing the costs of managing the Fund.

The performance target has been chosen as we believe it sets a realistic expectation of the Fund’s long-term outperformance of the return an investor can expect, based on the principal asset types available for investment and the current market environment.