User:Simon123/Sandbox

Sandbox

Market risk

■ The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. Past performance is not a guide to future performance and when you sell your investment you may get back less than you originally invested, regardless of how well the Fund manager performs.

■ The entire market of a particular asset class may fall, having a more pronounced effect on Funds heavily invested in that asset class.

■ If you transfer or switch into our Fund(s) you should appreciate that during a part of the period of transfer your investment will be in cash, particularly in the case of ISA and PEP transfers. This means that until your cash is reinvested into the Fund(s) of your choice you will not be exposed to any gains or falls in stock markets.

Performance risk

■ There will be a variation in performance between Funds with similar objectives due to the different assets selected.

■ Funds aiming for relatively high performance can incur greater risk than those adopting a more standard investment approach. There is no guarantee for the performance of your investment (unless specifically stated).

■ If you have a savings plan in order to build up a particular sum by a certain date (for example, to repay a mortgage) you may not achieve the target amount if you do not maintain your contributions or the investment value does not grow sufficiently.

Capital risk

■ Where an initial charge is imposed, investors who realise their shares after a short period may not (even in the absence of a fall in the value of the relevant investments) realise the amount originally invested.

■ If your investment is held in your own name you will receive a notice of your right to cancel and you will have 14 days from the receipt of the notice to change your mind. If you do change your mind, your investment will be returned to you subject to the deduction of an amount, if any, by which the value of the investment has fallen at the time the completed cancellation form is received by us. In respect of an ISA or PEP transfer you will lose your tax benefit if the investment has to be returned to you.

Inflation risk

■ Inflation will, over time, reduce the value of your investments in real terms.

Derivatives

■ Derivatives may be used by the Funds for the purposes of Efficient Portfolio Management (EPM). EPM restricts the use of derivatives to the reduction of risk, the reduction of cost and the generation of additional capital or income with an acceptably low level of risk. EPM transactions must be economically appropriate and the exposure fully covered.

Liquidity

■ If a security cannot be sold easily then it may be harder to attain a reasonable price. The Funds may invest up to 10 per cent of their net assets in securities for which there is no ready market. The Funds may therefore be unable to sell such securities readily.