Objectives and Investment Policy
The Fund aims to provide an attractive level of income along with an opportunity for capital growth.
The Fund aims to target a net total return of SONIA* + 5% – 8% per year. However, there is no guarantee that the Fund will achieve a positive return over 12 months or any time period; your capital may be at risk and you may not get back the full amount originally invested. (*SONIA is the Bank of England Sterling Overnight Index Average interest rate benchmark based on actual transactions and reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors.)
The Fund will invest in a range of European asset backed securities. These are types of bonds which are loans that pay a fixed or variable rate of interest. These particular bonds are linked to assets which provide some security on the investment. Examples of these are securities which are backed by mortgages on residential and commercial property, loans on automobiles and loans to small or medium sized businesses. The Fund will choose bonds based on their risk and the attractiveness of their income. The potential for capital growth may also be a material factor in their selection. The performance of the Fund is measured against the SONIA rate.
On occasions the Fund may be significantly invested in one particular geographical region of Europe.
The Fund will aim to reduce the risk of exchange rate movements lowering its value through the use of derivative instruments (such as futures, options and swaps). Derivatives are linked to the rise and fall of other assets, such as currencies. The price movements in these assets can result in movements of the Fund’s share price.
The Fund can also use derivative instruments for the purposes of efficient portfolio management, with the aim of managing risk and cost.
You can buy and sell shares on any business day in London.
Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within 4-5 years.
For full investment objectives and policy details please refer to the prospectus.
Price displayed in GBP pence.
Status of all data (unless otherwise stated): Thursday, 21 November 2024
