Objectives and Approach

The objective of the Fund is to provide income and a positive total return over any five-year period. For these purposes, total return means the amount of capital and income an investor earns. A minimum of 70% of the portfolio will be invested into collective investment schemes (which may include schemes operated by the manager, associates or controllers of the manager). Normally, the Fund will be fully invested in collective investment schemes, save for an amount to enable ready settlement of liabilities (including redemption of units) and efficient management. Overall exposure to shares will be between 40% and 85%. Usually the allocation to shares will be closer to the upper limit, with bonds and cash representing the balance. Cash may vary depending upon prevailing circumstances and although it would normally not exceed 10% of the total value of the Fund, there may be times when the Manager considers stock markets around the world to be overpriced or that a period of instability exists which presents unusual risks. In such cases or during such periods, a higher level of liquidity may be maintained and, if considered prudent, the amount of cash or near cash instruments held would be increased. Unless market conditions were deemed unusually risky, the increased amount and period would not be expected to exceed 50% and six months respectively. 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.