The stock selection process looks to identify smaller, fast growing companies at an early stage in their evolution. These companies will have high revenue growth rates usually because of inherently disruptive business models. The managers believe that companies capable of delivering consistently strong sales and earnings growth are likely to produce attractive returns over time, particularly when compared to larger, more mature corporations.

There will be a strong emphasis on companies which can materially increase their industry market share by virtue of having developed revolutionary products or services, which cannot be easily replicated by competitors. There will be a focus on companies with low investment analyst coverage where there is a greater probability that the shares are mispriced because there is less research on these companies.

A lack of investment analyst coverage means that very little information is published about the company and its prospects, which means that its potential true value may not be fully understood and as such may not be reflected in the company’s share price.

Wider macro trends are monitored and specific industries deemed at risk of significant setbacks are eliminated from the portfolio.

• 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.
• This fund may experience high volatility due to the composition of the portfolio or the portfolio management techniques used.
• For funds investing globally, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment.
• 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.
• Investment in the securities of smaller and/or medium sized companies can involve greater risk than may be associated with investment in larger, more established companies. The market for securities in smaller companies may be less liquid than securities in larger companies. This can mean that the Investment Manager may not always be able to buy and sell securities in smaller and/or medium size companies.