Fund updates

Objective and policy changes

View the funds that have changed their investment objectives and/or policies recently. We list the old and the new objective.

Effective date: 16 December 2016

  • M&G Extra Income Fund A Acc (MGEXA)
  • M&G Extra Income Fund A Inc (MGEXI)
  • M&G Extra Income Fund I Acc (MGETA)
  • M&G Extra Income Fund I Inc (MGETI)
  • M&G Extra Income X Inc (MGEII)

Old Objective
To deliver a high and rising income stream by investing at least 70% of the Fund in the shares of UK companies. The Fund targets a yield (annual income distributed as a percentage of the share price) that is 50% higher than that of the FTSE All-Share Index, but this may vary in the short term. The level of income provided may also vary over time. Secondary to this, the Fund aims to grow capital. The Fund focuses on good-quality but undervalued stocks that offer a high income by identifying those companies that exhibit the following qualities: strong business operations, good cash flows and attractive dividend growth prospects. The Fund may also invest in high-quality, sterling-denominated fixed income securities that offer a high income, typically those issued by companies. Although this emphasis gives the Fund a bias towards the sectors of the market that typically offer a high income, it aims to be broadly spread across a variety of businesses. Derivatives may be used to reduce risk, minimise costs and generate additional capital and/or income. Derivatives are financial instruments whose value is linked to the expected future price movements of an underlying asset
New Investment Objective
The Fund aims to increase income distributions over time and targets a yield greater than that of the FTSE All-Share Index. Although income will be the primary consideration, the investment manager will also aim for capital growth. At least 70% of the Fund will be invested in UK equities. Exposure to UK equities may be gained by investing in other collective investment schemes. The Fund focuses on good-quality but undervalued stocks that offer a higher income than the FTSE All-Share Index by identifying those companies that exhibit the following qualities: strong business operations, good cash flows and attractive dividend growth prospects. The Fund may also invest in sterling-denominated fixed income securities. Cash and near cash may be held for ancillary purposes and derivatives may be used for efficient portfolio management and hedging purposes.

Effective date: 02 November 2016

  • Legg Mason IF Martin Currie Global Equity Income X In (MAEQI)
  • Legg Mason IF Martin Currie Global Equity Income X Ac (MAEQA)

Old Objective
The Fund aims to provide an income as well as the potential for capital growth.
New Investment Objective
To achieve income, with the potential for capital growth over the long term by investing in securities of companies listed globally.

Effective date: 02 November 2016

  • Legg Mason IF Martin Currie Global Equity Income A In (MAINC)
  • Legg Mason IF Martin Currie Global Equity Income A Ac (MAINA)

Old Objective
The Fund aims to provide capital growth.
New Investment Objective
To achieve income, with the potential for capital growth over the long term by investing in securities of companies listed globally.

Effective date: 01 November 2016

  • Henderson Instit NA Enhance Equity A Acc (HDNAE)

Old Objective
To provide consistent capital growth relative to the FTSE World North America Index, or such other index as may from time to time replace it, through investing primarily in North American companies.
New Investment Objective
To deliver a return in excess of the FTSE customised North America Index (the reference Index), before management fees, while carefully controlling deviation from the reference index.The Fund invests primarily in Shares of North American companies included in the reference index. The Fund’s holdings are principally selected to replicate the components of the reference index. The index will not be identically replicated and this can lead to differences in performance. There are no restrictions on the size of the companies in which the Fund may invest. The Fund may also invest in securities on other exchanges which are associated with companies that form part of the reference index, money market instruments, bank deposits, derivatives that allow the Fund to achieve its investment objective, reduce risk or to be more efficiently managed. In addition to seeking to reflect the index, the fund manager will make use of investment strategies aimed at enhancing returns. These seek to generate returns based on differences in the prices of securities issued by, or associated with, companies that form part of the reference index. They can include, but are not limited to, liquidity strategies (investing in ‘blocks of stock’ at discounted prices), and relative value strategies (taking advantage of differences between the prices of securities related to the same company.

Effective date: 01 November 2016

  • Henderson Instit NA Enhance Equity I Acc (HMNAE)

Old Objective
Annual return in excess of the FTSE Customised World North America Index.
New Investment Objective
To deliver a return in excess of the FTSE customised North America Index (the reference Index), before management fees, while carefully controlling deviation from the reference index.The Fund invests primarily in Shares of North American companies included in the reference index. The Fund’s holdings are principally selected to replicate the components of the reference index. The index will not be identically replicated and this can lead to differences in performance. There are no restrictions on the size of the companies in which the Fund may invest. The Fund may also invest in securities on other exchanges which are associated with companies that form part of the reference index, money market instruments, bank deposits, derivatives that allow the Fund to achieve its investment objective, reduce risk or to be more efficiently managed. In addition to seeking to reflect the index, the fund manager will make use of investment strategies aimed at enhancing returns. These seek to generate returns based on differences in the prices of securities issued by, or associated with, companies that form part of the reference index. They can include, but are not limited to, liquidity strategies (investing in ‘blocks of stock’ at discounted prices), and relative value strategies (taking advantage of differences between the prices of securities related to the same company.

Effective date: 01 November 2016

  • Henderson Inst Japan Enhanced EQU I Acc (HDJEE)

Old Objective
The Fund aims to provide consistent capital growth relative to the FTSE World Japan Index (or such other index as may from time to time replace it) through investing primarily in Japanese companies.
New Investment Objective
To deliver a return in excess of the FTSE customised Japan Index (the reference Index), before management fees, while carefully controlling deviation from the reference index. The Fund invests primarily in Shares of Japanese companies included in the reference index. The Fund’s holdings are principally selected to replicate the components of the reference index. The index will not be identically replicated and this can lead to differences in performance. There are no restrictions on the size of the companies in which the Fund may invest. The Fund may also invest in Securities on other exchanges which are associated with companies that form part of the reference index, money market instruments, bank deposits, derivatives that allow the Fund to achieve its investment objective, reduce risk or to be more efficiently managed. In addition to seeking to reflect the index, the fund manager will make use of investment strategies aimed at enhancing returns. These seek to generate returns based on differences in the prices of securities issued by, or associated with, companies that form part of the reference index. They can include, but are not limited to, liquidity strategies (investing in ’blocks of stock’ at discounted prices), and relative value strategies (taking advantage of differences between the prices of securities related to the same company.

Effective date: 01 October 2016

  • Kames UK Equity Absolute Return Fund Acc (AEABA)
  • Kames UK Equity Absolute Return B Acc (AEABS)

Old Objective
To provide capital growth over a rolling 12 month period, regardless of market conditions.
New Investment Objective
The investment objective is to achieve a positive return over a 36 month period in all market conditions. By investing in the Fund, capital is at risk. There is no guarantee that the Fund will deliver positive returns over this, or any, time period.

Effective date: 01 October 2016

  • Schroder Euro Absolute Target P2 Acc Hdg (CZABT)
  • Schroder Euro Eq Absolute Rtrn P1 Acc H (CZUKA)

Old Objective
The objective of the Fund is to achieve positive returns (greater than zero) over a rolling three-year period in all market conditions by investing in European equities. Positive returns are not guaranteed over this or longer periods of time and the Fund may not achieve this objective. There is a risk to an investor's capital. Investors may not get back the amount originally invested.
New Investment Objective
The Fund aims to achieve an absolute return by investing in equity and equity related securities of European companies. Absolute return means the Fund seeks to provide a positive return over rolling 12-month periods in all market conditions, but this cannot be guaranteed and your capital is at risk.

Effective date: 24 September 2016

  • JPM Cautious Managed Fund C Net Acc (SPCRA)
  • JPM Cautious Managed Fund C Net Inc (SPCRI)
  • JPM Cautious Managed Fund A Acc (SPCTA)

Old Objective
The Fund aims to provide income and long-term capital growth by investing in a global portfolio of assets. The Fund will primarily invest in Debt Securities (which may include Below-Investment Grade Bonds and Unrated Securities), Convertible Bonds, Equity securities (which may include smaller companies) and short-term securities. Issuers of securities may be located in any country, including Emerging Markets and the Fund may invest in assets denominated in any currency.
New Investment Objective
The Fund aims to achieve capital growth in excess of its benchmark by investing in a global portfolio of assets. The Fund will primarily invest in Debt Securities (which may include Below-Investment Grade Bonds and Unrated Securities), Convertible Bonds, Equity securities (which may include smaller companies) and short-term Securities Issuers of securities may be located in any country, including Emerging Markets and the Fund may invest in assets denominated in any currency. The Fund uses an investment process based on macroeconomic research to identify global investment themes and opportunities. The Investment Adviser has a flexible approach to asset allocation, with a minimum allocation of 50% of the Fund’s assets to Debt Securities. Asset and country allocations may vary over time to reflect market conditions and opportunities. The Fund may invest up to 90% in government and public securities . The Fund may use Financial Derivative Instruments (derivatives) for investment purposes or Efficient Portfolio Management, including hedging, where appropriate. The Fund’s assets will be primarily either denominated in Sterling or hedged back to Sterling.

Effective date: 01 September 2016

  • Aberdeen Managed Distribution Fund Inc (DBMDI)
  • Aberdeen Managed Distribution Fund Acc (DBMDA)
  • Aberdeen Managed Distribution I Inc (ABMNI)
  • Aberdeen Managed Distribution I Acc (ABMNA)

Old Objective
The objective is to achieve both capital growth and an attractive level of income from a diversified portfolio. The Fund may invest in transferable securities and may also hold units in collective investment schemes (in particular, schemes managed by the Investment Adviser), money market instruments, warrants, derivatives and forward transactions, cash and near cash deposits.
New Investment Objective
The Fund’s investment objective is to provide income combined with long term capital growth. It will aim to achieve this by investing in a globally diversified portfolio of assets. The majority of the Fund will be exposed to Equity and Equity-Related securities, Investment grade and sub-Investment grade Debt and debt-related securities issued by governments, government-related bodies, and corporations. The remainder of the Fund may be exposed to cash, cash equivalents, deposits, money market instruments and alternative assets including property and infrastructure. The Fund’s holdings may include exposure to emerging markets. The Fund may not include exposure to all of the stated asset classes at any point in time. The Fund is multi-asset in nature and the Investment Adviser has the flexibility to amend the allocation between different asset classes in line with its view on markets in order to achieve the Fund’s objective.