Central to our approach is to remain true to some basic assumptions and to allocate resource to our strengths.

• We believe that we are unlikely to have a decent understanding as to where the future lies, certainly not in a detailed enough manner, and with enough conviction, to exploit investment opportunities. Therefore, we do not construct portfolios on the basis of the single most likely scenario, rather we look to optimise performance across a range of scenarios.
• In a similar vein, we view risk as a real world phenomenon, which statistical models have a limited chance of capturing. As such, we look at the volatility of each asset class and how they behave individually over time, rather than focusing on forecasting.
• These beliefs contribute to informing our approach to portfolio construction, which is where we believe we have an edge. Our expertise in portfolio construction combines well with the scope of the fund’s investment policy, i.e. to invest globally, across the full range of asset classes.

• The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested.
• For funds investing globally, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment.
• Changes in interest rates will affect the value of, and the interest earned from bonds held by the Fund. When interest rates rise, the capital value of the Fund is likely to fall and vice versa.
• Fees will be deducted from capital which will increase the amount of income available for distribution; however this will erode capital and may constrain capital growth.
• The Fund does not use derivatives extensively, although it may use them in an attempt to reduce risk, reduce costs and to generate additional income. Investing in derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions. Derivatives may expose the Fund to credit risks of counterparties, who may not meet payment obligations. The use of derivatives may result in the fund being leveraged (where economic exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will magnify losses.