Objectives and Approach

The Fund is a “Short Term Variable NAV Money Market Fund” as defined by the EU Money Markets Funds Regulations. The Fund aims to provide a return in line with money market rates. This aim is consistent with maintaining capital and ensuring its underlying assets can easily be bought or sold in the market (in normal market conditions). Money invested in the Fund is not protected or guaranteed. The Fund will do this by maintaining a portfolio of high quality (according to the Investment Manager’s assessment of credit worthiness) money market instruments (MMIs) (i.e. debt securities with short term maturities) and short term fixed income securities (such as bonds). It may also invest in deposits with credit institutions (e.g. banks) and in units of other short term money market funds. The Investment Manager will, in addition to the investment objective set out above, and subject always to investing in such assets as required for the Fund to meet its investment objective, take into account environmental and other characteristics when selecting the Fund’s investments, as a non-financial objective as set out in the Fund’s prospectus. The Fund’s assets may be issued or guaranteed by the United Kingdom government or other sovereign governments, government agencies, companies and supranationals (e.g. the International Bank for Reconstruction and Development) and shall always be denominated in Sterling. The Fund will limit its investment to assets which have 397 days or less remaining until the full principal must be repaid. The weighted average maturity (i.e. the average length of time to the date when the principal of the asset is to be repaid in full (or, in respect of interest rate notes, the average length of time to the next interest rate reset to a money market rate) of all of the Fund’s assets will be up to 60 days. The weighted average life (i.e. the average length of time to the date when the principal of the assets is to be repaid in full) of all of the Fund’s assets will be up to 120 days. To calculate these averages, figures are adjusted to reflect the relative holdings of each of the Fund’s assets. At least 7.5% of its assets must mature within a day and 15% within a week. Within the 15% of assets that mature within a week, up to 7.5% can consist of highly liquid government securities that can be redeemed and settled within five working days. The environmental and other criteria set out in the Fund’s prospectus are not taken into account when selecting the Fund’s investments in government and public securities and instruments and so such securities and instruments may not comply with the environmental and other criteria set out in the Fund’s prospectus and at times the entire Fund could be comprised of such securities and instruments to help meet the Fund’s investment objective. The Fund may also enter into reverse repurchase agreements on a short term basis. Through these, the Fund agrees to purchase government securities from certain eligible third parties for cash and that the seller can buy these back at an agreed time and price. The Fund is actively managed. The investment manager has discretion to select the Fund’s investments and is not constrained by any benchmark in this process. The Sterling Overnight Index Average Rate (SONIA) should be used by investors to compare the performance of the Fund. The investments of this VNAV Fund are valued using the mark-to-market method (i.e. a valuation based on current market prices) where possible, and if not, the mark-to-model method (i.e. a valuation based on a financial model) is used. The NAV is calculated to four decimal places and forms the dealing NAV. null Recommendation: This Fund may not be suitable for investors who seek long-term capital growth.