Objective & Strategy

The investment objective of the Sub-Fund is to (i) seek to provide a return linked to the positive performance of the Index, as defined in the Supplement; (ii) aim to provide Shareholders with a Dividend on each Dividend Payment Date and (iii) seek to protect the Fund’s Net Asset Value per Share at 100% of the Initial Offer Price at the Maturity Date. The Sub-Fund is not managed in reference to a benchmark. Portfolio composition is determined based on active investment decisions and hence the Sub-Fund is actively managed. In order to achieve its Investment Objective the Sub-Fund will invest in government and/or corporate bonds with a preference for investment in Investment Grade government bonds issued by governments globally, including emerging markets, and/or Investment Grade/non-Investment Grade Debt Instruments issued by credit/financial institutions and/or insurance companies authorised to operate in the UK and/or in a Member States of the European Union or European Economic Area and/or issued by credit institutions authorised by the Securities and Exchange Commission to operate in the United States (the “Funding Investments”). The Sub-Fund will then use the return it receives from the exposure to the Funding Investments to enter into an equity swap (the “Equity Swap”) which involves an OTC counterparty paying the Sub-Fund a return linked to the Index. In seeking to protect the Net Asset Value per Share at 100% of the Initial Offer Price at the Maturity Date the Sub-Fund will buy each of the Funding Investments on a buy to hold basis. This means that the Manager intends, from the time of purchase, to hold each Funding Investment up to the Maturity Date on the basis of the Manager’s view on the outlook for the corresponding Funding Investment up to the Maturity Date, and not on the potential for short term price fluctuations in respect of the corresponding Funding Investment. Constant monitoring will be undertaken by the Manager following the purchase of the Funding Investments in order to ensure that there is a continuing investment rationale for retaining each individual Funding Investment. This constant monitoring will include assessing the credit standing of each individual Funding Investment issuer taking into account the analysis used to select the Funding Investment for purchase. During the Subscription Period, approaching the Maturity Date and after the Maturity Date, the Sub- Fund may invest principally in Debt Instruments and/or Money Market/Short Term Instruments. The Sub-Fund may enter into a series of Financial Derivative Instruments (“FDI”) which may include total return swaps, credit default swaps, options, via which FDIs the Sub-Fund may take exposure to other indices as well. The Sub-Fund may engage in securities lending for efficient portfolio management purposes and may use additional FDI to those listed above for investment purposes, hedging and risk reduction. Please refer to the Supplement for the other types of FDIs that can be used by the Sub-Fund. This KIID should be read in conjunction with the ICAV Prospectus and the Sub-Fund Supplement. There can be no guarantee that the investment objective will actually be attained and investors are explicitly warned that this Sub-Fund is not a capital guaranteed product. Investors can redeem their Shares on every Wednesday or if a particular Wednesday is not a Business Day, as defined in the supplement, on the next Business Day, or such other day or days as may be determined by the Directors and notified in advance to Shareholders. Investors can ask for full or partial redemption of the Shares held. Recommended for retail investors
■ For investors who can afford to set aside capital for the recommended holding period of 6 years
■ Seeking to increase the value of their investment and provide income over the recommended holding period of 6 years
■ Who understand the risk of losing some or all of the capital invested
■ This Sub-Fund may not be appropriate for investors who plan to withdraw their money within the recommended holding period of 6 years This is a distributing Share class.

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