The scheme property of the Fund will be invested in listed companies with any market capitalisation except that no more than 40% of the scheme property of the Fund will be invested in: (i) small companies or (ii) companies listed on the Alternative Investment Market. A small company means a company with a primary listing on the London Stock Exchange whose market capitalisation is lower than that of the largest 350 companies by capitalisation which have their primary listing on the London Stock Exchange. In very broad terms, market capitalisation means the value of a company that is traded on the stock market.
The Fund’s portfolio will be managed on a concentrated basis. Whilst increasing the potential reward, the nature of this funds can increase risk. As such, the returns may be more volatile and will be impacted more by fluctuations in the value of underlying stock.
The Fund may also invest in cash and cash-like instruments (including money market instruments and deposits), warrants and exchange traded derivatives. Derivative transactions may be used for the purposes of meeting the investment objective of the Fund as well as for hedging purposes, although it is not anticipated that the Fund will use this power to enter into derivatives at present.
The Investment Manager may adjust the Fund’s exposure to certain asset classes and investment types in response to adverse market and/or economic conditions, when, in the Investment Manager’s opinion, it would be in the best interests of the Fund and its shareholders to do so; this is expected to be for short periods of time.
Investors should note that while the investment objective of the Fund is to achieve long term capital growth there may be situations in which an income return is also achieved.