Objectives and Approach

The Fund aims to generate an annual income of 4.5% above the Sterling Overnight Index Average (SONIA) over the period up to a maximum of 8%, net of fees, regardless of market conditions. In addition, the Fund aims to preserve capital through aiming to control the ex-ante volatility to be less than 12% over rolling three year periods. Investors should be aware that the investors’ capital is, in fact at risk, and there is no guarantee that these returns will be achieved, whether over rolling three year periods, or any time period. The Fund seeks to achieve its objective by using a range of investment strategies and techniques to invest actively in a broad selection of asset classes across all economic sectors worldwide. These asset classes may include equities, equity related securities, debt securities (including those issued by corporate bodies, governments and/or supranational institutions), warrants, cash, near cash and money market instruments. Exposure to these asset classes may be gained directly or indirectly through derivatives or collective investment schemes (including but not limited to exchange traded funds) and any other UCITS eligible instrument. The Fund may gain exposure to commodities through swaps on eligible commodity indices and investing in transferable securities in the commodities sector, such as exchange traded commodities. The Fund’s investment strategies and techniques will make significant use of financial derivative instruments. The Fund’s use of derivatives may include eligible derivatives on currencies, interest rates, credit, commodity indices and equities, which, may be either exchange traded or off exchange. The use of derivatives will be for purposes of efficient portfolio management and/or meeting the Fund's investment objective. Such derivatives have the potential to increase significantly the Fund's risk profile. The use of derivative instruments as part of the investment policy may mean that the Fund may, from time to time, have substantial holdings in liquid assets including deposits and money market instruments. These can be converted into cash in a short period of time. The target income yield referred to in the investment objective will be measured from 1st April to 31st March each year, and will be measured daily using the Sterling Overnight Index Average (SONIA) and the daily net asset value of the Fund. The Fund will be managed with a forward looking volatility cap of 12%*. Income will be distributed monthly. The Fund will be managed by reference to a Target Benchmark.