Objectives and Approach

The objective of the Margetts Providence Strategy Fund is to provide a balance of capital growth over any five year period and increasing income (measured by annual monetary distribution per unit). Capital and the income distributed are at risk and there is no guarantee that the objective will be achieved. The Fund will invest in regulated collective investment schemes (which may include schemes operated by the manager, associates or controllers of the manager), in any economic sector and any geographic area, across a wide range of assets. This includes shares, bonds, cash and near cash instruments. A minimum of 70% of the portfolio will be invested in regulated collective investment schemes to provide a minimum of 30% and a maximum of 60% exposure to shares. A minimum of 50% of the portfolio will be invested in assets which are denominated in Sterling or hedged back to Sterling. Portfolios are constructed from a long-term (Strategic) asset allocation, which may change gradually over time as the composition and return profile of global investment markets evolve. To ensure that it is reasonable to have expected the allocation to meet the stated objectives and risk profile, the Strategic asset allocation is modelled or back tested over several decades. Based on the team’s assessment of the portfolio and current economic and investment conditions, adjustments will be made to create a short-term (Tactical) asset allocation. Limits are applied on how much the manager can change the asset allocation at any one time with the aim that the Fund maintains the objectives stated above. The Manager will charge the annual management fee to the Fund’s capital account. This will increase the distributable income by that amount and reduce the capital by a similar amount. This may constrain capital growth.