Category: Open Ended Investment Company

The Fund’s investment objective is to achieve capital growth over a rolling seven to ten year period as well as providing income. The Fund’s target is to have a return greater than the FTSE All-Share T otal Return Index (12pm adjusted), which is used in the calculation of performance fees. The Fund will aim to achieve this objective through investing at least two thirds of the Fund in the shares of companies which are domiciled, incorporated or have a significant portion of their business in the UK. Up to 10% of the Fund may be invested in the shares of non-UK listed companies. Up to one third of the Fund may be held in cash, money market instruments, deposits, warrants and units in other collective investment schemes. The Fund will invest in a concentrated portfolio of 20-40 companies. The fund managers aim to identify companies which meet their strict criteria of quality and valuation. Quality is assessed through many measures, including analysis of company’s financial statements, how management are allocating capital, whether levels of debt are suitable for the business model and how cash flows will be maintained and grown in the future. A good company needs to come at the right price and the fund managers look to buy companies below the value of their long-term cash flows. Periods may arise when the fund managers do not identify sufficient companies that meet their quality and valuation criteria, and as a consequence the amount of cash held by the Fund could increase towards the maximum holding of one third of the Fund. In those circumstances, the proportion of the Fund which is invested in companies that are domiciled, incorporated or have a significant portion of their business in the UK could fall to below two thirds of the Fund. The fund managers expect that at all times two thirds of the Fund will be invested in companies listed on the London Stock Exchange. The fund managers engage with the management of the companies in which the Fund invests to encourage capital allocation and governance policies which are sustainable for the company’s business, its customers, suppliers and the industry and the environment in which it operates. Any income the Fund generates for this share class is accumulated. Performance of the Fund may be measured against the FTSE All-Share Total Return Index (the “Index”). The Index is used as a target benchmark for the Fund as the Performance Fee for the Fund is payable when the performance of the Fund exceeds that of the Index. The use of the Index does not limit the investment decisions of the fund managers so the shareholdings of the Fund may differ significantly from those of the Index. The Index is used as it is the broadest available index of shares listed on the London Stock Exchange, representing at least 98% of the market value of the shares listed. The Fund is actively managed which means that the fund managers use their expertise to pick investments to achieve the objective of the Fund.