The fund has two aims:
- to provide a combination of capital growth and income to deliver a return that is higher than that of the global stockmarket over any five-year period;
- to increase the income stream every year in US dollar terms.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in the shares of companies across any sector and of any size that are domiciled in any country, including emerging markets*. The fund usually holds shares in fewer than 50 companies.
Other investment: The fund also holds cash or assets that can be turned quickly into cash.
* Emerging market countries are defined as those included within the MSCI Emerging Markets Index and/or those included in the World Bank’s definition of developing economies, as updated from time to time.
Strategy in brief: The investment manager focuses on companies with the potential to grow their dividends over the long term. The investment manager selects stocks with different sources of dividend growth to build a fund that has the potential to cope in a variety of market conditions.
Performance comparator: The fund is actively managed. The MSCI All Countries World Index is a point of reference against which the performance of the fund may be measured.
Dividends: A share in the profits of a company paid out to the shareholders at set times of the year.
Risks associated with the fund
The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.
Changes in currency exchange rates will affect the value of your investment.
The fund will invest in emerging markets which are generally smaller, more sensitive to economic and political factors, and where investments are less easily bought and sold. In exceptional circumstances, the fund may encounter difficulties when selling or collecting income from these investments, which could cause the fund to incur a loss. In extreme circumstances, it could lead to the temporary suspension of dealing in shares in the fund.
This fund holds a relatively small number of investments and, as a result, may experience larger price rises and falls than a fund which holds a larger number of investments.
Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.
Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.