Changes to our Halifax Funds

Previous Objective

The investment objective of the Absolute Return Fund is to deliver attractive, positive absolute returns over rolling 12 month periods in all market conditions. Investment in the Fund is at risk. There is no guarantee that the Fund will deliver attractive, positive absolute returns over the specific, or any, time period.

Objective

To provide positive absolute returns* over rolling 12 month periods before deduction of fees in all market conditions. There is no guarantee that the Fund will deliver positive absolute returns over the specific, or any, time period.

The benchmark for the Fund is 3-Month LIBOR GBP (the “Benchmark”). The Fund is actively managed by the Investment Adviser wh o chooses investments with the aim of outperforming the Benchmark by 4% per annum on a rolling 5 year basis, before deduction of fees.

* Absolute return strategies aim to provide positive returns regardless of market conditions.

Previous policy

The policy of the Fund is to achieve its objective through investing primarily in a range of regulated and unregulated collective investment schemes that are absolute return funds which follow a number of different strategies which may include up to 100% investment in collective investment schemes managed by the ACD or its associates. The Investment Adviser will typically conduct a monthly review and rebalance of the allocation of capital to each strategy.

The Fund may also invest, to the extent permitted by the Regulations, in ancillary liquid assets (including units in collective investment schemes), permitted money market instruments, Derivatives and, from time to time, cash or near cash may be held. Derivatives may be used for investment as well as efficient portfolio management purposes. It is not intended that the use of Derivatives in this way will cause the risk profile to change. For the avoidance of doubt, the types of Derivatives that may be used include those the returns on which are referenced to the performance of financial indices based on commodities prices.

Policy

The Investment Adviser may take a flexible investment approach in order to invest in a range of regulated and unregulated collective investment schemes from Absolute Insight Funds p.l.c. and BNY Mellon that are absolute return funds which follow a number of different strategies. The Investment Adviser will typically conduct a monthly review and rebalance of the allocation of capital to each strategy.

The collective investment schemes may invest in a range of asset classes which may include: shares, fixed interest securities, cash and cash-like investments, property assets, absolute return strategies*, structured products, commodities and infrastructure assets**. The Fund may include collective investment schemes managed by the ACD and its associates.

The Fund may also invest in ancillary liquid assets (including units in collective investment schemes), permitted money market instruments and derivatives.

Derivatives may be used for meeting the investment objective of the Fund (but it is not intended that their use would raise the risk profile).

Derivatives may also be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

**Infrastructure assets are physical assets which provide basic vital functions to a business or country. These may include systems which facilitate: power generation, sewage, transportation, communication etc.

The 3-Month LIBOR GBP has been selected as the Fund’s benchmark, which, together with the Fund’s outperformance target, is appropriate for the Fund’s aim of achieving a positive return in all market conditions. 3-Month LIBOR GBP is a representation of the rate at which banks are willing lend to each other over a 3-month period in the London interbank market.


KIID

Prospectus

Previous objective

The investment objective of the Cautious Managed Fund is to achieve long term growth by investing in a managed portfolio of equities investing mainly in the UK and fixed interest investments such as corporate bonds and gilts.

Objective

The investment objective of the Cautious Managed Fund is to achieve growth by investing in a managed portfolio of shares and fixed interest securities.

Previous policy

The fund will actively manage a balanced mixture of assets between equities and fixed interest investments. The core of the equity assets within the fund will tend to be invested in large companies whilst maintaining a reasonable presence in medium and small sized companies with above average potential for growth. However, the fund is not restricted to the choice of company either by size or industry. The fixed interest assets will be invested primarily in a wide range of sterling and euro dominated investment grade interest bearing securities. Derivatives may be used for efficient portfolio management purposes only.

Policy

The Fund will invest in an actively managed* range of shares and fixed interest securities. The Fund may also invest in cash.

The portion of the Fund in shares will be invested passively* in the UK share market. These investments will consist of large, medium and small sized UK companies.

The fixed interest securities portion the Fund will be actively managed and at least 80% of this will consist of a wide range of sterling and euro dominated investment grade** fixed interest securities including gilts and corporate bonds. The Fund may also include sterling and euro denominated non-investment grade fixed interest securities.

A proportion of the shares, fixed interest and cash exposure may be achieved by investing in collective investment schemes including those managed by the ACD and its associates. These may be actively or passively managed.

The ACD is responsible for determining the percentage of the Fund normally invested in each asset class based on its medium to long term outlook of that asset class.

The Investment Adviser may make shorter term allocation changes, which vary from the above, allocating more or less to specific asset classes. This is based on their short term view of the asset class.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

*Active management is where the Investment Adviser seeks to add value by making decisions on which investments to buy, sell or hold depending on, for example company, market or economic factors. Passive management is where the Investment Adviser aims to match a benchmark and will buy, sell or hold investments depending on the components of that benchmark.

**Credit ratings indicate the likelihood that an issuer will be able to make their payments. Investment grade bonds have achieved or exceeded a minimum credit rating awarded by a credit rating agency. Therefore they are considered lower risk than bonds with a lower credit rating.

Non-investment grade bonds, also known as high yield bonds, have a lower credit rating than investment grade bonds, and so are considered higher risk.

The ACD does not quote a benchmark or outperformance target for the Fund. This is because the asset allocation of the Fund will change over time taking into consideration risk, the ACD’s view of the prospects of each asset class and the changes the Investment Adviser can make to the asset allocation.

Investors may assess the Fund relative to similar funds offered by other investment firms. A number of fund industry bodies and data providers group similar funds together and provide analysis on performance and risk characteristics of the fund group. The Investment Association “Mixed Assets Sectors” group funds with a range of different assets according to their allocation to shares, fixed interest securities and cash. More information on the Investment Association sectors can be found here.

As at 30 June 2019 the Fund would have sat within the “Mixed Investment 20-60% Shares Sector”. Investors may wish to consider the performance of the Fund by looking at the performance of this sector which has a broadly similar allocation to shares, fixed interest securities and cash.

KIID

Prospectus

Previous objective

The investment objective of the Corporate Bond Fund is to provide an above average income from a diversified portfolio of interest bearing securities.

Objective

To provide an income from a diversified portfolio of Sterling denominated investment grade corporate bonds.

The Fund is actively managed by the Investment Adviser who selects a portfolio to provide a running yield* with the aim of outperforming the gross redemption yield** of the iBOXX Sterling Corporate and Collateralised Index (the “Index”) by 0.5% per annum on a rolling 3 year basis, before deduction of fees.

* A running yield represents annual income from bonds in the Fund as a percentage of its current value.

** The gross redemption yield represents the total return from a bond (income plus any growth), assuming the bonds are held to their maturity date.

Previous policy

The portfolio is invested primarily in a wide range of investment grade interest bearing securities, principally sterling and euro denominated, offering a yield in excess of the FTSE FTA Government Securities All Stocks Index. If the FTSE FTA Government Securities All Stocks Index is discontinued or the basis of compilation of that index is changed, another index or basis which (as nearly as possible) will give a similar result to that which would have been the case but for the discontinuance or change will be used.

Derivatives may be used for efficient portfolio management purposes only.

Policy

At least 70% of the Fund will be invested in Sterling denominated investment grade corporate bonds*.

The Fund may also invest in non-Sterling investment grade corporate bonds, government bonds, non-investment grade corporate bonds** and asset backed securities such as securitised loans.

The Fund’s investments will predominantly be denominated in or hedged back to Sterling. (This involves the use of the derivatives to offset the effect of currency exchange rates.)

In selecting bonds for the Fund the Investment Adviser may consider the issuers’ credit worthiness, valuation and risks. Regional and global economic factors and monetary policy may also be taken into account.

The ACD limits the extent to which the Fund’s composition can differ relative to the market for corporate bonds (as represented by the Benchmark Index). These limits help to deliver a level of portfolio diversification and risk management. The limits also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Benchmark Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Benchmark Index. As a result, the Fund’s performance may differ substantially from the Benchmark Index.

In addition the Fund may invest in cash, cash like investments and covered bonds.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Credit ratings indicate the likelihood that an issuer will be able to make their payments. Investment grade bonds have achieved or exceeded a minimum credit rating awarded by a credit rating agency. Therefore they are considered lower risk than bonds with a lower credit rating.

** Non-investment grade bonds, also known as high yield bonds, have a lower credit rating than investment grade bonds, and so are considered higher risk. The iBOXX Sterling Corporate and Collateralised Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the sterling investment grade corporate bond market.

KIID

Prospectus

Previous Objective

The investment objective of the Diversified Return Fund is to deliver positive returns on an annual basis with the prospect of long term capital growth commensurate with returns from equities but with a lower volatility. Investment in the Fund is at risk. There is no guarantee that the Fund will deliver positive returns over the specific, or any, time period.

Objective

To provide positive returns over a 12 month period before deduction of fees. There is no guarantee that the Fund will deliver positive returns over the specific, or any, time period.

The benchmark for the Fund is 3-Month LIBOR GBP (the “Benchmark”). The Fund is actively managed by the Investment Adviser who chooses investments with the aim of outperforming the Benchmark by 4% per annum on a rolling 5 year basis, before deduction of fees.

Previous policy

The policy of the Fund is to gain exposure to one or more of the following asset classes: fixed income, cash, near cash and deposits, equities, property, regulated and unregulated collective investment schemes that predominantly have as their objective an absolute or target return and structured products. Exposure to these asset classes will generally be achieved through investment in collective investment schemes, transferable securities, money market instruments and Derivatives. Investment in property will be indirect.

Derivatives may be used for investment as well efficient portfolio management purposes. It is not intended that the use of Derivatives in this way will cause the Net Asset Value of the Company to have high volatility or otherwise cause its existing risk profile to change. For the avoidance of doubt, the types of Derivatives that may be used include those the returns on which are referenced to the performance of financial indices based on commodities prices

Policy

The Investment Adviser may take a flexible investment approach in order to provide exposure to a combination of any of the following asset classes: fixed interest securities, cash and cash-like investments, shares, property assets, absolute return strategies*, structured products, commodities and infrastructure assets**.

Exposure to these asset classes will be achieved through investment in regulated and unregulated collective investment schemes (including those managed by the ACD and its associates), transferable securities, deposits, money market instruments and derivatives. Investment in property, commodity and infrastructure assets will be indirect.

Derivatives may be used for meeting the investment objective of the Fund (but it is not intended that their use would raise the risk profile).

Derivatives may also be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Absolute return strategies aim to provide positive returns regardless of market conditions.

**Infrastructure assets are physical assets which provide basic vital functions to a business or country. These may include systems which facilitate: power generation, sewage, transportation, communication etc.

The 3-Month LIBOR GBP has been selected as the Fund’s benchmark, which, together with the Fund’s outperformance target, is appropriate for the Fund’s aim of achieving a return in line with the asset classes utilised.

3-Month LIBOR GBP is a representation of the rate which banks are willing to lend for short-term deposits in the London interbank market.

KIID

Prospectus

Previous Objective

The investment objective of the Dynamic Return Fund is for long term capital growth through gaining exposure to a diversified range of asset classes.

Objective

To provide capital growth through exposure to a diversified range of asset classes. The benchmark for the Fund is 3-Month LIBOR GBP (the “Benchmark”). The Fund is actively managed by the Investment Adviser who chooses investments with the aim of outperforming the Benchmark by 6% per annum on a rolling 5 year basis, before deduction of fees.

Previous policy

The policy of the Fund is to gain exposure to one or more of the following asset classes: fixed income, cash, near cash and deposits, equities, property, regulated and unregulated collective investment schemes that mainly have as their objective an absolute or target return, or structured products. The fund is likely to have a bias towards equities, although the fund is not restricted in the choice of asset class. Exposure to these asset classes will generally be achieved through investment in collective investment schemes, transferable securities, money market instruments and Derivatives. Investment in property will be indirect. Derivatives may be used for investment as well efficient portfolio management purposes. It is not intended that the use of Derivatives in this way will cause the Net Asset Value of the Company to have high volatility or otherwise cause its existing risk profile to change. For the avoidance of doubt, the types of Derivatives that may be used include those the returns on which are referenced to the performance of financial indices based on commodities prices.

Policy

The Investment Adviser may take a flexible investment approach. Up to 100% of the Fund may provide exposure to shares. It may also provide exposure to one or more of the following asset classes: fixed interest securities, cash and cash-like investments, property assets, absolute return strategies*, structured products, commodities and infrastructure assets**.

Exposure to these asset classes will be achieved through investment in regulated and unregulated collective investment schemes (including those managed by the ACD and its associates), transferable securities, deposits, money market instruments and derivatives. Investment in property, commodity and infrastructure assets will be indirect.

Derivatives may be used for meeting the investment objective of the Fund (but it is not intended that their use would raise the risk profile).

Derivatives may also be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

*Absolute return strategies aim to provide positive returns regardless of market conditions.

** Infrastructure assets are physical assets which provide basic vital functions to a business or country. These may include systems which facilitate: power generation, sewage, transportation, communication etc.

The 3-Month LIBOR GBP has been selected as the Fund’s benchmark, which, together with the Fund’s outperformance target, is appropriate for the Fund’s aim of achieving capital growth.

3-Month LIBOR GBP is a representation of the rate which banks are willing to lend for short-term deposits in the London interbank market.

KIID

Prospectus

Previous Objective

The investment objective of the Ethical Fund is to achieve capital growth in the long term by investing in companies whose activities are considered ethical, both in terms of their primary activities as well as in the means of achieving them.

Objective

To achieve capital growth by investing in companies whose activities are considered ethical, both in terms of their primary activities as well as in the means of achieving them.

The benchmark index for the Fund is the FTSE World Index (the “Index”). The Fund is actively managed by the Investment Adviser who selects investments with the aim of outperforming the Index by 2% per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To select an international portfolio of companies on the basis of a broad range of ethical and socially responsible criteria. The Fund will seek to avoid investing in companies that display negative characteristics toward, or are involved with, the following activities:

  • Alcoholic Beverages*
  • Animal Testing
  • Business Practices
  • Environment
  • Gambling*
  • Human Rights
  • Labour /Workplace Issues
  • Military involvement*
  • Nuclear Energy*
  • Pornography*
  • Product Quality
  • Tobacco*
  • Weapons*

* For these criteria, the Fund will seek to avoid investments in companies which derive over 10% of their annual turnover from such activities, or 5% for pornography.

The Fund will also take into account companies that demonstrate their involvement in the community and that have transparent and accountable corporate policies.

Subject to the requirements of the Sourcebook and/or the OEIC Regulations, the criteria listed above may be updated from time to time to reflect changing market developments that may have an ethical and/or social impact as agreed by the ACD and the Investment Adviser.

Further detail regarding investment philosophy and style, as well as these parameters can be found on the Responsible Investment section of the Scottish Widows website.

Derivatives may be used for efficient portfolio management purposes only.

Policy

At least 80% the Fund will invest in global shares, including emerging markets. The Investment Adviser will select companies on the basis of a broad range of ethical and socially responsible criteria. The Fund will seek to avoid investing in companies that display negative characteristics toward, or are involved with, the following activities:

  • Alcoholic Beverages*
  • Animal Testing
  • Business Practices
  • Environment
  • Gambling*
  • Human Rights
  • Labour /Workplace Issues
  • Military involvement*
  • Nuclear Energy*
  • Pornography*
  • Product Quality
  • Tobacco*
  • Weapons*

* For these criteria, the Fund will seek to avoid investments in companies which derive over 10% of their annual turnover from such activities, or 5% for pornography.

The Fund will also take into account companies that demonstrate their involvement in the community and that have transparent and accountable corporate policies.

Subject to the requirements of the Sourcebook and/or the OEIC Regulations, the criteria listed above may be updated from time to time to reflect changing market developments that may have an ethical and/or social impact as agreed by the ACD and the Investment Adviser.

After screening for ethical criteria the Investment Adviser focuses on the company’s growth prospects, market valuation and specific risks.

The ACD limits the extent to which the Fund’s composition can differ relative to the market for global shares (as represented by the Index). These limits help to deliver a level of portfolio diversification and risk management. The limits also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index.  As a result, the Fund’s performance may differ substantially from the Index.

Further detail on the Scottish Widows’ commitment to responsible investment can be found on the Responsible Investment section of the Scottish Widows website.

A small proportion of the Fund may be invested cash and cash-like investments. The Fund may also invest in collective investment schemes, including those managed by the ACD and its associates. 

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

The FTSE World Index has been selected as an appropriate benchmark as it provides a representation of the returns of shares across a broad range of developed and emerging markets. This allows the Investment Adviser to select shares that meet the Fund’s ethical criteria from a diverse, global range of shares.

KIID

Prospectus

Previous Objective

The investment objective of the European Fund is to achieve capital growth in the long term by investing predominantly in European companies excluding the U.K. The Fund seeks to deliver performance, before deduction of management fees, in excess of the MSCI Europe ex UK Index (the “Index”) with a similar level of overall volatility, over the long term.

Objective

To achieve capital growth by investing in shares of European companies excluding the U.K.

The benchmark index for the Fund is the MSCI Europe ex UK Index (the “Index”). The Investment Adviser seeks to outperform the Index by 0.75%* per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Index.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors* may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight). Derivatives may be used for efficient portfolio management purposes only.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the Index. This will involve investing in shares and may also include equity-linked securities being warrants and preference shares**.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors*** may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ from the Index.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates, cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Note: there are Share Classes in the Fund where fees exceed the Fund’s outperformance target relative to the Index. For those Share Classes, the Fund will underperform the Index after deduction of fees even if its outperformance target is achieved.

** A preference share usually issues a fixed dividend payment which takes priority over payments of ordinary shares.

***A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The MSCI Europe ex UK Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the European equities market, excluding the UK.

KIID

Prospectus

Previous Objective

The investment objective of the Far Eastern Fund is to achieve long term capital growth by investing predominantly in Far Eastern companies (excluding Japanese companies).The Fund seeks to deliver performance, before deduction of management fees, in excess of the MSCI AC Asia Pacific ex Japan Index (the “Index”) with a similar level of overall volatility, over the long term.

Objective

To achieve capital growth by investing in shares of Far Eastern companies (excluding Japanese companies).

The benchmark index for the Fund is the MSCI AC Asia Pacific ex Japan Index (the “Index”). The Investment Adviser seeks to outperform the Index by 0.75%* per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Index. This will involve investing in equities and may also include equity-linked securities being depositary receipts and derivatives.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors* may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

Derivatives may also be used for efficient portfolio management.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the Index. This will involve investing in shares and may also include equity-linked securities being depositary receipts and derivatives.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors** may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ from the Index.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates, cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Note: there are Share Classes in the Fund where fees exceed the Fund’s outperformance target relative to the Index. For those Share Classes, the Fund will underperform the Index after deduction of fees even if its outperformance target is achieved.

** A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The MSCI AC Asia Pacific ex Japan Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the Asia Pacific equities market, excluding Japan

KIID

Prospectus

Previous Objective

The investment objective of the Fund of Investment Trusts is to achieve capital growth in the long term by investing mainly in Investment Trust companies.

Objective

To achieve capital growth by providing exposure to shares through investment trust companies.

The benchmark for the Fund is a blend of the FTSE All-Share Index and the FTSE World ex UK Index (the “Indices”). The Fund is actively managed by the Investment Adviser who chooses investments with the aim of outperforming the benchmark by 1% per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To select investment trust companies which the managers believe are investing in attractive markets and having a manager expected to outperform the relevant asset category. The portfolio will also include trusts that are likely to benefit from reconstruction.

Derivatives may be used for efficient portfolio management purposes only.

Policy

The investment trust companies selected will provide a balance of exposure between UK and overseas equities.

The Investment Adviser chooses investment trust companies which it believes are invested in attractive markets. The portfolio will also include investment trust companies that the Investment Adviser believes may benefit from corporate actions*.

In choosing individual investment trust companies the Investment Adviser focuses on the underlying investments of each company, the quality of the manager and the discount to or premium which the value of shares in investment trust companies are trading at to the value of their net assets.

The ACD limits the extent to which the Fund’s composition can differ relative to the markets for UK and international shares (as represented by the Indices). These limits help to deliver a level of portfolio diversification and risk management. The limits also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Indices and providing the Investment Adviser with flexibility to seek outperformance relative to the Indices. As a result, the Fund’s performance may differ substantially from the Indices.

The Fund may also invest in collective investment schemes, including those managed by the ACD and its associates, and other investment companies (including those investing in private equity) and in cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

*A corporate action is an event which brings change to a company and can affect the shares or bonds in that company.

The FTSE All-Share Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the UK equity market.

The FTSE World ex UK Index has been selected as an appropriate benchmark as it provides a representation of developed and emerging markets excluding the UK.

KIID

Prospectus

Previous Objective

The investment objective of the International Growth Fund is to achieve capital growth in the long term by investing in a diversified global portfolio. The Fund seeks to deliver performance, before deduction of management fees, in excess of a blended return of the MSCI World Index and the MSCI Emerging Markets Index (the “Indices”) with a similar level of overall volatility, over the long term.

Objective

To achieve capital growth by investing in a diversified global portfolio of company shares.

The benchmark index for the Fund is the MSCI All Country World (MSCI ACWI) Index (the “Index”). The Fund seeks to outperform the Index by 0.75%* on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Indices. Of the two Indices, the fund will invest almost exclusively in companies that are part of the MSCI World Index.

This will involve investing in equities and may also include equity-linked securities being depositary receipts, warrants and preference shares.

The Investment Adviser may only take limited positions away from the Indices. This means there are limitations on the extent to which the Fund’s investment in various sectors* may differ to the Indices. These limited positions can be more than is held in the Indices (overweight) or less than is held in the Indices (underweight).

Derivatives may be used for efficient portfolio management purposes only.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the MSCI AWCI Index. This will involve investing in shares and may also include equity-linked securities such as depositary receipts, warrants and preference shares**.

The ACD instructs the Investment Adviser on the proportion of the Fund’s investments to be allocated to companies in the Index. At least 90% will be invested in companies that are in developed markets, and not more than 10% in companies that are in emerging markets. The allocation may differ slightly on a day to day basis through market movements or Investment Adviser discretion.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors*** may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. Because the Fund is limited in the extent to which it can diverge from the Index it means the difference between the Fund’s performance and that of the Index is likely to be smaller than that of funds with greater flexibility.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates, cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Note: there are Share Classes in the Fund where fees exceed the Fund’s outperformance target relative to the Index. For those Share Classes, the Fund will underperform the Index after deduction of fees even if its outperformance target is achieved.

** A preference share usually issues a fixed dividend payment which takes priority over payments of ordinary shares.

*** A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The MSCI All Country World (MSCI ACWI) Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the equities market worldwide.

KIID

PROSPECTUS

Previous Objective

Growth from investments in a broad range of Japanese companies. The Fund seeks to deliver performance, before deduction of management fees, in excess of the MSCI Japan Index (the “Index”) with a similar level of overall volatility, over the long term.

Objective

To achieve capital growth from investments in a broad range of shares of Japanese companies.

The benchmark index for the Fund is the MSCI Japan Index (the “Index”). The Investment Adviser seeks to outperform the Index by 0.75%* per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Index. This will involve investing in equities and may also include derivatives.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors* may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

Derivatives may also be used for efficient portfolio management.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the Index. This will involve investing in shares and may also include derivatives.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors** may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ from the Index.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates, cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Note: there are Share Classes in the Fund where fees exceed the Fund’s outperformance target relative to the Index. For those Share Classes, the Fund will underperform the Index after deduction of fees even if its outperformance target is achieved.

** A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The MSCI Japan Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the Japanese equities market.

KIID

Prospectus

Previous Objective

The investment objective of the North American Fund is to achieve capital growth in the long term by investing predominantly in North American companies. The Fund seeks to deliver performance, before deduction of management fees, in excess of the S&P 500 Index (the “Index”) with a similar level of overall volatility, over the long term.

Objective

To achieve capital growth by investing in shares of North American companies. The benchmark index for the Fund is the S&P 500 Index (the “Index”). The Investment Adviser seeks to outperform the Index by 0.75%* per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Index.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors* may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

Derivatives may be used for efficient portfolio management purposes only.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the Index. This will involve investing in shares and may also include equity-linked securities being warrants and preference shares**.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors*** may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ from the Index.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates, cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Note: there are Share Classes in the Fund where fees exceed the Fund’s outperformance target relative to the Index. For those Share Classes, the Fund will underperform the Index after deduction of fees even if its outperformance target is achieved.

** A preference share usually issues a fixed dividend payment which takes priority over payments of ordinary shares.

***A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The S&P 500 Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the North American equities market.

KIID

Prospectus

Previous Objective

The investment objective of the Smaller Companies Fund is to achieve long term capital growth through investing mainly in smaller companies, principally in the U.K.

Objective

To achieve capital growth through investing in UK smaller companies’ shares.

The benchmark index for the Fund is the Numis Smaller Companies excluding Investment Trusts Index (the “Index”). The Fund is actively managed by the Investment Adviser who chooses investments with the aim of outperforming the Index by 2% per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To concentrate the core of the portfolio on smaller companies with above average potential for growth.

Derivatives may be used for efficient portfolio management purposes only.

Policy

At least 80% of the Fund will invest in UK smaller companies shares.

Investments will be in UK companies which, at the time of initial investment, are constituents of the Index. The majority of these companies are those which are incorporated, or domiciled, or have a significant part of their business in the UK.

The Index covers UK smaller companies as represented by the bottom 10% of the main UK fully listed equity market by way of market capitalisation (being the total value of shares that a company has issued based on the current share price) excluding Investment Trusts.

In selecting individual shares the Investment Adviser focuses on the company’s growth prospects, market valuation and specific risks. The Fund will have between 40 and 90 holdings.

The ACD limits the extent to which the Fund’s composition can differ relative to the market for smaller companies shares (as represented by the Index). These limits help to deliver a level of portfolio diversification and risk management. The limits also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ substantially from the Index.

In addition a small proportion of the Fund may be invested in fixed interest securities (including convertibles), cash and cash like investments.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

The Numis Smaller Companies excluding Investment Trusts Index has been selected as an appropriate benchmark as it provides a representation of the returns of smaller UK listed companies by value.

KIID

Prospectus

Previous Objective

The investment objective of the Special Situations Fund is to achieve capital growth by active investment in U.K. companies with above average potential for growth.

Objective

To achieve capital growth through investment in UK companies. In particular, the Fund invests in shares of companies which, in the Investment Advisers’ opinion, are considered to be undervalued and have potential for growth.

The benchmark index for the Fund is the FTSE All-Share Index (the “Index”). The Fund is actively managed by the Investment Adviser who chooses investments with the aim of outperforming the Index by 2.5% per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To select and actively manage a portfolio of large, medium and small sized companies with above average potential for capital growth. Advantage will be taken of opportunities offered by management pressures, recovery situations and market anomalies.

Derivatives may be used for efficient portfolio management purposes only.

Policy

At least 80% of the Fund will invest in shares of large, medium and small sized companies. In selecting these individual investments the Investment Adviser will look for stocks which it believes to be undervalued by the market with specific focus given to market valuation anomalies and company recovery situations. For example this may include where the Investment Adviser believes a company is out of favour in the market but believes company performance has potential to improve.

The ACD limits the extent to which the Fund’s composition can differ relative to the market for UK shares (as represented by the Index). These limits help to deliver a level of portfolio diversification and risk management. The limits also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ substantially from the Index.

A small proportion of the Fund may be invested in fixed interest securities.

The Fund may also invest in collective investment schemes including those managed by the ACD and its associates, cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

The FTSE All-Share Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the UK equity market.

KIID

Prospectus

Previous Objective

The investment objective of the UK Equity Income Fund is to provide an above average income, together with prospects of capital appreciation over the longer term, derived predominantly from a portfolio of securities in U.K. companies. The Fund seeks to deliver performance, before deduction of management fees, in excess of the FTSE All Share Index (the “Index”) with a similar level of overall volatility, over the long term.

Objective

To provide income, together with prospects of capital growth, by investing in shares of U.K. companies.

Investments are selected by the Investment Adviser which, collectively, aim to deliver an income of 110% of the dividend yield* of the FTSE All-Share Index (the “Index”) on a rolling 3 year basis, before deduction of fees, and outperform the Index on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Index.

The Investment Adviser identifies companies that are forecast to provide higher than average dividend yields* and to achieve long term capital growth. The Fund seeks to hold more in these companies in comparison to the Index. Therefore, while the Fund will hold a large number of securities in common with the Index, the weighting of any one security may be significantly different to the Index.

The Fund is limited in the extent to which it can hold more (overweight) or less (underweight) in sectors** relative to the Index, but it aims to be overweight in sectors which are expected to provide a higher than average dividend yield.

Derivatives may be used for efficient portfolio management purposes only.

* The dividend yield is calculated by dividing the annual dividend paid in respect of a security by its share price.

** A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the Index. This will involve investing in shares and may also include preference shares**. The majority of these companies are those which are incorporated, or domiciled, or have a significant part of their business in the UK.

The Investment Adviser identifies companies that are forecast to provide higher than average dividend yields* and to achieve capital growth. The Fund seeks to hold more in these companies in comparison to the Index. Therefore, while the Fund will hold a large number of shares in common with the Index, the weighting of any one share may be significantly different to the Index.

The Fund is limited in the extent to which it can hold more (overweight) or less (underweight) in sectors*** relative to the Index, but it aims to be overweight in sectors which are expected to provide a higher than average dividend yield.

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ from the Index.

The Fund may also invest in collective investment schemes, including those managed by the ACD and its associates, hold cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* The dividend yield is calculated by dividing the annual dividend paid in respect of a security by its share price.

** A preference share usually issues a fixed dividend payment which takes priority over payments of ordinary shares.

*** A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The FTSE All-Share Index has been selected as an appropriate benchmark as it provides a representation of the returns of shares in the UK equity market.

KIID

Prospectus

Previous Objective

The investment objective of the U.K. FTSE 100 Index Tracking Fund is to aim to match as closely as possible, subject to the effect of charges and regulations in force from time to time, the capital performance and net income yield of the FTSE 100 Index.

Objective

The investment objective of the U.K. FTSE 100 Index Tracking Fund is to aim to match as closely as possible, before deduction of fees, the performance of the FTSE 100 Index (the “Index”).

Previous policy

The portfolio is invested primarily in companies comprising the FTSE 100 Index. Index futures may be used for efficient portfolio management purposes only.

Policy

The Fund aims to invest in shares of all of the companies within the Index. This is often referred to as a ‘full replication’ approach.

Where the ACD believes it can provide an advantage to the Fund in managing costs, to achieve a more efficient way of tracking the Index, or where there are exceptional market circumstances, the Fund may include or exclude specific shares and/or other security types which are representative of a share in the Index (such as depositary receipts).

The Fund may also invest in collective investment schemes to gain exposure to the Index.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

The FTSE 100 Index provides a representation of the returns of securities in the UK equity market.

KIID

Prospectus

Previous Objective

The investment objective of the U.K. FTSE All-Share Index Tracking Fund is to aim to match as closely as possible, subject to the effect of charges and regulations in force from time to time, the capital performance and net income yield of the FTSE All-Share Index.

Objective

The investment objective of the U.K. FTSE All-Share Index Tracking Fund is to aim to match as closely as possible, before deduction of fees, the performance of the FTSE All-Share Index (the “Index”).

Previous policy

The policy is to invest partially in companies comprising the FTSE All-Share Index. Index futures may be used for efficient portfolio management purposes only.

Policy

The Fund aims to invest in shares of all of the companies within the Index. This is often referred to as a ‘full replication’ approach.

Where the ACD believes it can provide an advantage to the Fund in managing costs, to achieve a more efficient way of tracking the Index, or where there are exceptional market circumstances, the Fund may include or exclude specific shares and/or other security types which are representative of a share in the Index (such as depositary receipts).

The Fund may also invest in collective investment schemes to gain exposure to the Index.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

The FTSE All Share Index provides a representation of the returns of securities in the UK equity market.

KIID

Prospectus

Previous Objective

The investment objective of the UK Growth Fund is to achieve long term capital growth by investing predominantly in U.K. companies. The Fund seeks to deliver performance, before deduction of management fees, in excess of the FTSE All Share Index (the “Index”) with a similar level of overall volatility, over the long term.

Objective

To achieve capital growth by investing in shares of U.K. companies.

The benchmark index for the Fund is the FTSE All-Share Index (the “Index”). The Investment Adviser seeks to outperform the Index by 0.75%* per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To invest predominantly in a portfolio of companies which are part of the Index.

The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors* may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

Derivatives may be used for efficient portfolio management purposes only.

* A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

Policy

At least 80% of the Fund will be invested in a portfolio of companies which are part of the Index. This will involve investing in shares and may also include preference shares**.

The majority of these companies are those which are incorporated, or domiciled, or have a significant part of their business in the UK. The Investment Adviser may only take limited positions away from the Index. This means there are limitations on the extent to which the Fund’s investment in various sectors*** may differ to the Index. These limited positions can be more than is held in the Index (overweight) or less than is held in the Index (underweight).

These limitations help to deliver a level of portfolio diversification and risk management. The limitations also help to achieve an appropriate balance between the extent to which the Fund’s composition can diverge from the Index and providing the Investment Adviser with flexibility to seek outperformance relative to the Index. As a result, the Fund’s performance may differ from the Index.

The Fund may also invest in collective investment schemes, including those managed by the ACD and its associates, hold cash and cash like investments.

Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).

* Note: there are Share Classes in the Fund where fees exceed the Fund’s outperformance target relative to the Index. For those Share Classes, the Fund will underperform the Index after deduction of fees even if its outperformance target is achieved.

** A preference share usually issues a fixed dividend payment which takes priority over payments of ordinary shares.

*** A sector is a business area, industry or economy which shares the same characteristics. Company shares are typically grouped into different sectors depending on the company’s business.

The FTSE All-Share Index has been selected as an appropriate benchmark as it provides a representation of the returns of shares in the UK equity market.

KIID

Prospectus

Previous Objective

The investment objective of the UK Property Fund is to achieve long term capital growth by investing mainly in UK commercial properties.

Objective

The investment objective of the UK Property Fund is to achieve a return, based on a combination of capital growth and income, by investing in UK commercial scale properties.

The benchmark index for the Fund is the MSCI UK Quarterly Property Index (the “Index”). The Fund is actively managed by the Investment Adviser who chooses investments with the aim of outperforming the Index by 0.5% per annum on a rolling 3 year basis, before deduction of fees.

Previous policy

To concentrate the core of the portfolio on large commercial properties whilst maintaining a reasonable presence in medium and small sized commercial properties with above average potential for growth. The Fund will invest mainly in immovables, but may also invest in regulated and unregulated collective investment schemes, Approved Money Market Instruments, derivatives, cash, near cash and deposits. Approved Money Market Instruments and deposits will be utilised for Efficient Portfolio Management. Derivatives may be used for the purposes of Efficient Portfolio Management only.

Policy

At least 70% of the Fund will invest directly in commercial scale properties in the UK market, aiming to achieve capital growth via property development and market appreciation, in addition to earning income via leasing of its property assets. The Fund will invest in a diversified range of commercial scale property including: office buildings, shopping centres, retail units, industrial units, warehouses, land and other property types of suitable commercial scale. At least 70% of the property investment will be obtained directly but a small proportion may be invested indirectly through regulated and unregulated collective investment schemes (including those managed by the ACD and its associates) and other property shares.

Exposure will be predominantly in the UK but the Fund may also hold a small proportion overseas.

In selecting properties for inclusion in the Fund, the Investment Adviser will consider individual property characteristics such as yield potential, location and valuation in addition to ensuring the Fund is reasonably diversified across different locations, property types and tenant type.

Due to the nature of property assets a portion of the Fund may be held in cash, near cash, money market instruments, and/or exchange traded property-related shares to assist in meeting the liquidity requirements of the Fund.

The ACD is responsible for determining the percentage of the Fund normally invested directly and indirectly in property and in cash or cash-like investments based on its long term outlook for property.

The Investment Adviser may make shorter term allocation changes, which vary from the above, by allocating more or less to these asset classes. This is based on their short term view for property.

The ACD limits the extent to which the Fund’s allocation across property assets (direct & indirect property, property shares) as well as across property sectors (retail, office, industrial, other) can differ relative to the market for UK properties (as represented by the Index).

Derivatives may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management).Use may also be made of borrowing.

The Fund invests in inherently illiquid assets, please see Part 11: Risk Warnings (from the Prospectus) for an explanation of the risks associated with this type of investment.

The MSCI UK Quarterly Property Index has been selected as an appropriate benchmark as it measures total returns of directly held standing property investments from one valuation to the next.

KIID

Prospectus