Objectives and Approach

The objective of the Sub-fund is to provide capital growth over 6 years (investors should also consider this to be the minimum recommended holding period). The minimum period does not provide any guarantee that this objective will be achieved and investors should be aware that capital and the income distributed are at risk and there is no guarantee that the objective will be achieved. The Sub-fund will invest a minimum of 70% in regulated collective investment schemes in any economic sector and any geographic area, across a wide range of assets. The Sub-fund may also invest directly (maximum of 30%) in shares, bonds, cash, near cash instruments, investment trusts, real estate investment trusts (REITs) and structured products (which may embed a derivative). Overall exposure to shares, either held directly or through collective investment schemes will be a minimum of 50%. The balance of exposure will be to other asset classes, which may include bonds (including government, investment grade, sub-investment grade and asset backed bonds), alternative investments and cash. Cash will normally represent less than 20% of the exposure, but can be up to 30%. The Portfolio will be constructed from a strategic asset allocation, which may change gradually over time as the composition and return profile of global investment markets evolve. To ensure that it is reasonable to have expected the allocation to meet the stated objectives and risk profile, the Strategic asset allocation is modelled or back tested over several decades. The management team assess the portfolio and current economic and investment conditions. Based on the team’s assessment, the Investment Adviser will actively manage the short-term (Tactical) asset allocation and investment selection.