Objectives and Approach

The Fund aims to increase the value of your investment over the long term. It looks to outperform the MSCI ACWI Index over rolling 3-year periods, after the deduction of charges. The Fund is actively managed and seeks to gain at least 75% of its investment exposure to shares of companies worldwide. This exposure to company shares is achieved by taking both long and short equity positions. Long positions, which allow the Fund to profit from an increase in the share price of a company, are taken by investing in company shares directly, as well as indirectly using derivatives, and collective investment schemes (including funds managed by Columbia Threadneedle companies) when considered appropriate. Short positions, which allows the Fund to profit from the fall in the share price of a company, are taken using derivatives only. Typically, the combination of these positions provides exposure to fewer than 140 companies. The Fund follows an “equity extension strategy”, which allows proceeds from short positions to be used to extend long positions within the portfolio (leverage), to include more of the fund manager’s strongest investment ideas. The Fund does not usually short more than 30% of its value, and long positions don’t normally exceed 130% of the value of the Fund. The Fund may also hold other securities (including fixed interest securities), money market instruments, deposits, cash and near cash. In addition to using derivatives for investment purposes, derivatives may be used with the aim of reducing risk or managing the Fund more efficiently. Derivatives are sophisticated investment instruments linked to the rise and fall of the price of other assets. The MSCI ACWI Index is regarded as providing an appropriate representation of the share performance of large and medium-sized companies worldwide, currently with more than 2,700 companies included. It is representative of the type of companies in which the Fund invests and provides a suitable target benchmark against which Fund performance will be measured and evaluated over time.