UK Defined Strategy Fund Brochure

How might the Fund perform?

The investment managers’ objective is to deliver a return in excess of cash + 5% over the medium to long term while preserving capital. They aim to do this by employing a range of strategies; but on a comparative basis, how could investors expect the Fund to perform?

Underlying market conditions over a given period

Impact on target return of SONIA plus 5%

Comment

The Fund should meet its objective. The return achieved is likely to be lower than those from an equity based fund.

Rise substantially

On target

The Fund should meet its objective. The return achieved is likely to be similar to those achieved by an equity based fund.

Rise modestly

On target

The Fund should meet its objective. The return achieved is likely to be higher than an equity based fund.

Very modest rises or falls

On target

The Fund may produce a return which is in line with its objective or slightly lower. The return achieved however could be higher than an equity based fund.

On target / potentially below target

Falls modestly

The Fund is unlikely to achieve its objective and the return achieved is likely to be lower than that of an equity based fund.

Falls substantially

Below target

As with all equity based investments we suggest that the minimum holding period be at least five years.

The performance of the Fund is determined by the performance of the strategies deployed which in turn are correlated to the index performance and volatility to which the strategies are linked. The managers do seek to mitigate, but cannot eliminate risk to capital, through investment protection mechanisms built into the Fund’s investments.

7