Simplified Prospectus

Transcription

1 Simplified Prospectus (Incorporating the ISA Terms & Conditions) FP New Horizon Fund Valid as at 18 th July 2016

2 Helping you decide What you should know before you invest This document gives you a summary of information help you decide if you want invest in the FP New Horizon Fund and provides answers some important questions. You should read this document carefully so that you understand what you are buying, and keep it safe for future reference. Because we are not registered with the relevant authorities in the United States we cannot sell Units people who are "US persons". If you think you may be a US person please see further details in the Prospectus, including a definition of what a US person is or call us on The Financial Conduct Authority (FCA) is the UK s independent financial services regular. It requires us, Fund Partners, give you this important information help you decide whether our Funds are right for you. This Simplified Prospectus contains key information in relation Total Clarity (the Company ) which is an open ended investment company with variable capital incorporated in England and Wales on 15 th July 2005 with registered number IC The Company is classified as a Non-UCITS Retail Scheme (NURS) under the rules of the Financial Conduct Authority ( FCA ). The Company is structured as an umbrella company, in that different Funds may be established from time time by the authorised corporate direcr with the approval of the FCA. The Company currently has five sub-funds as follows: Cautious Fund Income Fund Balanced Income & Growth Fund Growth Fund Enhanced Income Fund* *As at the date of this document this Fund is not available for investment The assets of each Fund will be treated as separate from those of every other Fund and will be invested in accordance with the investment objective and investment policy applicable that Fund. Potential invesrs are advised read the full Prospectus (the Prospectus ) before making an investment decision. The rights and duties of invesrs as well as their legal relationship with the Company are laid down in the Prospectus. 2

3 The Company and its Head Office FP New Horizon Fund, Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB. Authorised and regulated by the Financial Conduct Authority. Depositary Northern Trust Global Services Limited, 50 Bank Street, Canary Wharf, London E14 5NT. Authorised and regulated by the Prudential Regulation Authority and the Financial Conduct Authority. Sponsor New Horizon AM Limited, Statham House, Talbot Road, Old Trafford, Manchester M32 0FP. Authorised and regulated by the Financial Conduct Authority. Authorised Corporate Direcr ( ACD ) WAY Fund Managers Limited, Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Association ( IA ). Telephone: Fax: Fund Partners ( FP ) is a trading style of WAY Fund Managers Limited. WAY Fund Managers Limited is a subsidiary of Professional Partners Administration Limited. Investment Adviser WH Ireland Limited, 11 St James Square, Manchester, Lancashire M2 6WH. Authorised and regulated by the Financial Conduct Authority. Fund Accountant Apex Fund Services (UK) Limited, Veritas House, 125 Finsbury Pavement, London EC2A 1NQ. Authorised and regulated by the Financial Conduct Authority. Administrar and Registrar: Fund Partners, Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB. Authorised and regulated by the Financial Conduct Authority. Telephone: Facsimile: (The register of shareholders can be inspected at this address). Audir Deloitte LLP, Saltire Court, 20 Castle Terrace, Edinburgh EH1 2DB. Authorised and regulated by the Financial Conduct Authority. Competent Authority The Company is authorised and regulated by the Financial Conduct Authority. They can be contacted at 25 The North Colonnade, Canary Wharf, London E14 5HS or by calling (local call rates). Website 3

4 COMPANY INFORMATION FP New Horizon Fund What is the profile of the typical invesr the Funds are designed for? The ACD considers that the Funds are suitable for invesrs who see collective investment schemes as a convenient and cost-effective way of participating in sck market investment and performance. As the investment may occasionally experience periods of price volatility, the Funds would be more suitable for invesrs who can afford set aside the invested capital for a minimum period of 5 years. All invesrs in the Company should understand and appreciate the risks associated with investing in shares in the Company, and must be able accept losses. The ACD recommends that invesrs seek suitable advice from an authorised independent intermediary before investing in shares. section below. Invesrs should also note the risk facrs in the What are the Funds general risk facrs? We recommend that you contact a financial adviser if you are in any doubt about the suitability of an investment in any Fund, or if you are not confident that you fully understand the risks involved. Market risk - The investments of the Funds are subject normal market fluctuations and other risks inherent in investing in securities. There can be no assurance that any appreciation in the value of investments will occur. The value of investments and the income derived from them may fall as well as rise and invesrs may not recoup the original amount they invest in the Funds. There is no certainty that the investment objective of any Fund will actually be achieved and no warranty or representation is given this effect. performance is no guide the future. Past Dilution levy - Invesrs should note that in certain circumstances a dilution levy may be applied the price payable on the purchase or redemption of their shares. Where dilution levy is not applied the Fund in question may incur dilution which may constrain capital growth. Charges Capital - Where the investment objective of a Fund is treat the generation of income as a higher priority than capital growth, or the generation of income and capital growth have equal priority, all or part of the ACD s fee and other expenses may be charged against capital instead of against income. This treatment of the ACD s fee and other expenses will increase the amount of income (which may be taxable) available for distribution Shareholders in the Fund concerned but may constrain capital growth. Currently both the Cautious Fund and Growth Fund charge against income. The High Income Fund and Enhanced Income Funds charge against capital. The Income & Growth Fund charges 50% against income and 50% against capital. Suspension of dealings in shares - Invesrs are reminded that in certain circumstances their right redeem shares (including redemption by way of switching) may be suspended. Pricing and liquidity - Where a Fund has exposure alternative asset classes there is a risk that the price at which an asset is valued may not be realisable in the event of sale. This could be due a mis-estimation of the asset s value or due a lack of liquidity in the relevant market. As a result, at times, the ACD may have delay acting on instructions sell investments, and the proceeds on redemption may be materially less than the value implied by the Fund s price. Liabilities of the Company - Under the OEIC Regulations, each Fund is a segregated portfolio of assets and those assets can only be used meet the liabilities of, or claims against, that Fund. Whilst the provisions of the OEIC Regulations provide for segregated liability between Funds, the concept of segregated liability is relatively new. Accordingly, where claims are brought by local credirs in foreign courts or under foreign law contracts, it is not yet known whether a foreign court would give effect the segregated liability and crossinvestment provisions contained in the OEIC Regulations. Therefore, it is not possible be certain that the assets of a Fund will always be completely insulated from the liabilities of another Fund of the Company in every circumstance. Professional Liability Risks - As the Company is an 'Alternative Investment Fund' for the purposes of the Alternative Investment Fund Managers Directive ( AIFMD ), the ACD is required ensure that certain Professional Liability Risks are covered at all times, either through additional own funds and/or through appropriate coverage of professional indemnity insurance. The ACD satisfies its obligations cover Professional Liability Risks in relation the Company by: (a) holding professional indemnity insurance (in accordance with the Regulations) and maintaining an amount of own funds meet the capital requirements under the AIFMD; and (b) complying with the qualitative requirements in the AIFMD that address professional liability risks. Currency exchange rates - Currency fluctuations may adversely affect the value of a Fund s investments and, depending on an invesr s currency of reference, currency fluctuations may adversely affect the value of his investment in shares. 4

5 Emerging markets - Investments in emerging markets may be more volatile than investments in more developed markets. Some of these markets may have relatively unstable governments, economies based on only a few industries and securities markets that trade only a limited number of securities. Many emerging markets do not have well developed regulary systems and disclosure standards may be less stringent than those of developed markets. The risks of expropriation, nationalisation and social, political and economic instability are greater in emerging markets than in more developed markets. The following is a brief summary of some of the more common risks associated with emerging markets investment: Fraudulent securities Given the lack of a regulary structure it is possible that securities in which investments are made may be found be fraudulent. As a result, it is possible that loss may be suffered. Lack of liquidity The accumulation and disposal of holdings may be more expensive, time consuming and generally more difficult than in more developed markets. Also, due the lack of liquidity, volatility may be higher. Many emerging markets are small, have low trading volumes, low liquidity and significant price volatility. Currency fluctuations Where a Fund makes investments, which are denominated in a currency other than the base currency of that Fund, there may be a significant change in the relative value of the investments currency against the base currency. These changes may impact the tal return of the Fund a significant degree. In respect of currencies of certain emerging countries, it is not possible undertake currency hedging techniques. Settlement and cusdy risks - Settlement and cusdy systems in emerging markets are not as well developed as those in developed markets. Standards may not be as high and supervisory and regulary authorities not as sophisticated. As a result there may be risks that settlement may be delayed and that cash or securities could be disadvantaged. Investment and remittance restrictions - In some cases, emerging markets may restrict the access of foreign invesrs securities. As a result, certain equity securities may not always be available a Fund because the maximum permitted number of or investment by foreign shareholders has been reached. In addition, the outward remittance by foreign invesrs of their share of net profits, capital and dividends may be restricted or require governmental approval. The Company will only invest in markets in which it believes these restrictions be acceptable. However, there can be no guarantee that additional restrictions will not be imposed. Accounting Accounting, auditing and financial reporting standards, practices and disclosure requirements applicable companies in emerging markets differ from those applicable in more developed markets in respect of the nature, quality and timeliness of the information disclosed invesrs and, accordingly, investment possibilities may be difficult properly assess. Smaller companies - Funds investing in smaller companies invest in transferable securities which may be less liquid than the securities of larger companies, as a result of inadequate trading volume or restrictions on trading. Securities in smaller companies may possess greater potential for capital appreciation, but also involve risks, such as limited product lines, markets and financial or managerial resources and trading in such securities may be subject more abrupt price movements than trading in the securities of larger companies. Sub investment grade bonds - The Funds may hold subinvestment grade bonds. Such bonds have a lower credit rating than investment grade bonds and carry a higher degree of risk. Overseas bonds and currencies - From time time, a Fund may invest in overseas bonds and currencies. These markets may respond different influences those that affect the underlying funds and accordingly carry a higher degree of risk. risk -There will be a variation in performance between Funds with similar objectives due the different assets selected. The degree of investment risk depends on the risk profile of the Fund chosen. Inflation Risk - Inflation will, over time, reduce the value of your investments in real terms. Counterparty Risk - If a Fund enters in a derivative contract it will be exposed the credit of the other party (usually referred as counterparty ) and their ability wholly or partly satisfy the terms of the contract. In the event of a bankruptcy or insolvency of a counterparty, a Fund could experience delays in liquidating the position and may incur significant losses. The ACD may use one or more counterparties undertake derivative transactions on behalf of a Fund and may be required pledge a Fund s assets as collateral against these transactions. There may be a risk that a counterparty will be unable meet its obligations with regards the return of the collateral and may not meet other payments due a Fund. Derivatives and Volatility Derivative instruments may be used in the Funds for the purposes of Efficient Portfolio 5

6 Management (EPM). The use of derivatives for EPM should not lead an increase in risk the Fund. Leverage - Leverage of the company s assets is limited the permanent borrowing referred in section 20 (Borrowing Powers and Leverage) of Appendix III (Investment and Borrowing Powers of the Company) of the Prospectus. Further details of the investment risks may be found in the Prospectus. FUND INFORMATION Cautious Fund What is the Fund s investment objective and policy? Aims of the Fund The aim of the Fund is long-term capital growth, with a limited risk perspective, through conservative investment in a diversified portfolio of derivatives, collective investment schemes, investment trusts, other transferable securities, cash or near cash, deposits and money market instruments. How the Aims are Achieved Subject the requirements of the Regulations, the portfolio will normally remain fully invested. There will, however, be no restrictions on the underlying content of the investments held, in terms of investment type, geographical or economic secr, meaning that the investment adviser has the absolute discretion weight the portfolio wards any investment type or secr, including cash, at any time. Unregulated collective investment schemes may be used up the full extent permitted by the Regulations. The portfolio will be actively managed. The Fund may invest in derivatives for investment purposes as well as for efficient portfolio management purposes (including hedging). It is not intended that the use of derivatives in this way will change the risk profile of the Fund. Borrowing will be permitted under the terms of the Regulations. Subject the above, the Fund may invest in any asset class and adopt any investment technique or strategy permitted under the rules in COLL as such rules are applied Non- UCITS retail schemes. The investment manager reserves the right (in accordance with the regulations) hold cash in the pursuit of the investment objective and dependent on the short term opportunities available them this may be up 20%. Income Fund What is the Fund s investment objective and policy? Aims of the Fund The aim of the Fund is a regular income in excess of that available from standard deposit accounts available from UK deposit takers, gether with a minimum requirement preserve the capital value of an investment, through investment in a diversified portfolio of high-yielding collective investment schemes, investment trusts, other transferable securities, cash or near cash, deposits, money market instruments and derivatives. How the Aims are Achieved Subject the requirements of the Regulations, the portfolio will normally remain fully invested. There will, however, be no restrictions on the underlying content of the investments held, in terms of investment type, geographical or economic secr, meaning that the investment adviser has the absolute discretion weight the portfolio wards any investment type or secr, including cash, at any time. Unregulated collective investment schemes may be used up the full extent permitted by the Regulations. The portfolio will be actively managed. The Fund may invest in derivatives for investment purposes as well as for efficient portfolio management purposes (including hedging). It is not intended that the use of derivatives in this way will change the risk profile of the Fund. Borrowing will be permitted under the terms of the Regulations. Subject the above, the Fund may invest in any asset class and adopt any investment technique or strategy permitted under the rules in COLL as such rules are applied Non- UCITS retail schemes. The investment manager reserves the right (in accordance with the regulations) hold cash in the pursuit of the investment objective and dependent on the short term opportunities available them this may be up 20%. Balanced Income & Growth Fund What is the Fund s investment objective and policy? Aims of the Fund The aim of the Fund is achieve medium long-term growth in both income and capital, through investment in a diversified portfolio of collective investment schemes, 6

7 investment trusts, other transferable securities, cash or near cash, deposits, money market instruments and derivatives. How the Aims are Achieved Subject the requirements of the Regulations, the portfolio will normally remain fully invested. There will, however, be no restrictions on the underlying content of the investments held, in terms of investment type, geographical or economic secr, meaning that the investment adviser has the absolute discretion weight the portfolio wards any investment type or secr, including cash, at any time. Unregulated collective investment schemes may be used up the full extent permitted by the Regulations. The portfolio will be actively managed. The Fund may invest in derivatives for investment purposes as well as for efficient portfolio management purposes (including hedging). It is not intended that the use of derivatives in this way will change the risk profile of the Fund. Borrowing will be permitted under the terms of the Regulations. Subject the above, the Fund may invest in any asset class and adopt any investment technique or strategy permitted under the rules in COLL as such rules are applied Non- UCITS retail schemes. The investment manager reserves the right (in accordance with the regulations) hold cash in the pursuit of the investment objective and dependent on the short term opportunities available them this may be up 20%. Growth Fund What is the Fund s investment objective and policy? Aims of the Fund The aim of the Fund is achieve growth in capital over the medium long-term, through investment in a diversified portfolio of collective investment schemes, investment trusts, other transferable securities, cash or near cash, deposits money market instruments and derivatives. How the Aims are Achieved Subject the requirements of the Regulations, the portfolio will normally remain fully invested. There will, however, be no restrictions on the underlying content of the investments held, in terms of investment type, geographical or economic secr, meaning that the investment adviser has the absolute discretion weight the portfolio wards any investment type or secr, including cash, at any time. Unregulated collective investment schemes may be used up the full extent permitted by the Regulations. The portfolio will be actively managed. The Fund may invest in derivatives for investment purposes as well as for efficient portfolio management purposes (including hedging). It is not intended that the use of derivatives in this way will change the risk profile of the Fund. Borrowing will be permitted under the terms of the Regulations. Subject the above, the Fund may invest in any asset class and adopt any investment technique or strategy permitted under the rules in COLL as such rules are applied Non- UCITS retail schemes. The investment manager reserves the right (in accordance with the regulations) hold cash in the pursuit of the investment objective and dependent on the short term opportunities available them this may be up 20%. What specific risk facrs affect the Funds? Specific risks relating these Funds are as follows: Non-UCITS Retail Schemes (NURS) The Company and the Fund is classed as a NURS for the purposes of the rules in the FCA Handbook. Such funds can have wider investment and borrowing powers than UCITS schemes with higher investment limits in various areas. They can also invest a greater extent in areas such as property and unregulated schemes and have the option borrow on a permanent basis. Such additional powers can increase potential reward, but may also increase risk. Defensive investment in cash and money market instruments, at times when relevant sck market indices are rising, may constrain the growth of capital invested in a sub-fund. Investments may be made in assets denominated in various currencies and the movement of exchange rates may have a separate effect, unfavourable as well as favourable, on the gains and losses otherwise experienced on such investments. Capital guaranteed structured products are guaranteed by a third party, such as a bank or building society. Accordingly, fulfilment of the guarantee element relies on the creditworthiness of that third party. It must be emphasised that past performance is not necessarily a guide future growth or rates of return. Exemptions, thresholds and rates of tax may change in future tax years. 7

8 The Investment Adviser may enter in certain derivatives transactions, including, without limitation, forward transactions, futures and options. The value of these investments may fluctuate significantly. By holding these types of investments there is a risk of capital depreciation in relation certain Company assets. There is also the potential for capital appreciation of such assets. The ACD does not anticipate that the use of derivatives will alter the risk profile of the Funds. For complete details of the investment risks, please refer the full Prospectus for the FP New Horizon Fund. What limits apply investing in the Funds? Fund Share Class Minimum Initial Investment Minimum Subsequent Investment Minimum Holding Minimum Redemption Regular Savings Plan* Regular Withdrawal Facility A and B Class 5,000 5,000 5,000 N/A Yes, minimum of 100 per month N/A All Funds C and D Class 5,000 5,000 5,000 1,000 Yes, minimum of 100 per month N/A *Collection date for the Regular Savings Plan is the first business day of each month. How do I buy/sell my investment? General The dealing office of the Administrar is normally open from 9am 5pm (UK time) on each Dealing Day receive requests by post or fax on for the purchase, sale and switching of shares. Requests deal in shares may also be made by telephone on on each Dealing Day (at the ACD s discretion) between 9am and 5pm directly the office of the Administrar. The initial purchase must, at the discretion of the Administrar, be accompanied by an application form.. Buying Shares Shares may be bought directly from the ACD or through a professional adviser or other intermediary. Where permitted by the rules in the FCA Handbook, an intermediary who recommends an investment in the Company Shareholders may be entitled receive commission from the ACD, which may include ongoing commission based on the value of shares held by a Shareholder. For details of dealing charges see the Prospectus for further details. Application forms may be obtained from the ACD. Invesrs wishing purchase Gross shares, where available, must complete a Declaration of Eligibility and Undertaking, which may be obtained from the ACD. Valid applications purchase shares in one of the Funds received before 12pm on any business day (the Valuation Point ) will be processed at the share price calculated, based on the Net Asset Value per share of that Fund, at the next Valuation Point following receipt of the application, except in the case where dealing in shares of a fund has been suspended. A confirmation giving details of the number and price of shares bought will be issued no later than the end of the business day following the later of receipt of the application buy shares and the Valuation Point by reference which the price is determined, gether with, where appropriate, a notice of the applicant s right cancel. Selling Shares Invesrs are entitled on any Dealing Day redeem their shares. Valid instructions the ACD redeem shares in a Fund received before 12pm on any business day (the Valuation Point ) will be processed at the share price calculated, based on the Net Asset Value per share of that Fund, at the next Valuation Point following receipt of the instruction, except in the case where dealing in a fund has been suspended. A confirmation giving details of the number and price of shares redeemed will be sent the redeeming Shareholder (or the 8

9 first named Shareholder, in the case of joint Shareholders) gether with (if sufficient written instructions have not already been given) a form of renunciation for completion and execution by the Shareholder (or, in the case of a joint holding, by all the joint Shareholders) no later than the end of the business day following the later of the request redeem shares or the valuation point by reference which the price is determined. Payment of redemption proceeds will normally be made by cheque the first named Shareholder (at their risk), or, at the ACD s discretion, via bank transfer in accordance with any instruction received (the ACD may recover any bank charge levied on such transfers). Instructions make payments third parties (other than intermediaries associated with the redemption) will not normally be accepted. Such payment will be made within four business days of the later of (a) receipt by the ACD of the form of renunciation (or other sufficient written instructions) duly signed and completed by all the relevant Shareholders gether with any other documentation and appropriate evidence of title, any required anti-money laundering related documentation, and (b) the Valuation Point following receipt by the ACD of the request redeem. Can I convert my Shares for another Share Class in the same Fund? Subject any restrictions on the eligibility of invesrs for a particular share class, an invesr may at any time Convert all or some of his shares ( Original shares ) of one Class in a Fund for shares in another Class ( New shares ) in the same Fund. There is no charge for Converting between share Classes. Invesrs wishing Convert in gross shares (if they are available) must first complete a Declaration of the Eligibility and Undertaking, which may be obtained from the ACD. Original shares and any initial charge on the New shares, subject certain waivers. A Switch of shares in one Company or Fund for shares of any Class in any other Company or Fund is treated as a redemption and purchase of New shares and will, for persons subject taxation, be a realisation for the purposes of capital gains tax. Invesrs wishing Switch in gross shares (if they are available) must first complete a Declaration of the Eligibility and Undertaking which may be obtained from the ACD. When will my investment be made? Where an application or telephone instruction is received before the Valuation Point on any business day, the investment will normally be made at that Valuation Point. Instructions received after the Valuation Point will be carried over the next business day s Valuation Point. How can I keep track of the price of the Funds? The previous day s dealing prices of shares in the Funds are available at or via a link at The prices of shares may also be obtained by calling the ACD on during the ACD s normal business hours. As the Funds deal on a forward pricing basis, the prices that appear in these sources will not necessarily be the same as those at which invesrs can currently deal. Table of Accumulation and Distribution Dates The ACD may also, at its sole discretion, decide publish certain share prices on third party websites or publications but the ACD does not accept responsibility for the accuracy of the prices published in, or for the non-publication of prices by, these sources for reasons beyond the control of the ACD. Can I Switch between the different Companies and Funds operated by the ACD? Subject any restrictions on the eligibility of invesrs for a particular Company, Fund or share class, a Shareholder may at any time Switch all or some of his shares ( the Original shares ) for shares of another Company or Fund ( the New shares ) operated by the ACD. The ACD may at its discretion make a charge on the switching of shares between Companies and Funds. Any such charge on Switching does not constitute a separate charge payable by a Shareholder, but is rather the application of any redemption charge on the When are distributions of income made? The Company currently offers only Income shares. Holders of Income shares will receive distributions of income where available by BACS direct credit and will also receive a Tax Voucher giving details of the amount distributed during the relevant period. Details of the distribution and accumulation dates are shown below. 9

10 Table of Accumulation and Distribution Dates Fund Final Accounting Date Interim Accounting Date Ex-dividend Dates Income Accumulation Dates Income Distribution Dates Cautious Fund and Growth Fund 30 November 31 May 1 December 30 November 31 January Balanced Income & Growth Fund 30 November 31 May 1 June 1 December 31 May 30 November 31 January 31 July Income Fund 30 November Last day of February 31 May 31 August 1 March 1 June 1 September 1 December Last day of February 31 May 31 August 30 November 31 January 30 April 31 July 31 Ocber Income will be distributed holders of income shares who will receive a Tax Voucher (Distribution Notification for ISA invesrs) giving details of the amount distributed during the relevant period. Income will be accumulated in the price of accumulation shares and the share price will be increased reflect this. Holders of accumulation shares will be sent a Tax Voucher (Distribution Notification for ISA invesrs) giving details of the amount accumulated during the relevant period. Charges & Expenses What fees and expenses apply a Fund s Shares? Fees paid directly by you: Initial Charge: 5% (of the amount invested by an invesr for A and B Class shares) 0 % (of the amount invested by an invesr for C and D Class shares) Switch Charge: Nil Redemption Charge: Nil Fees paid out of the Funds assets: Management Charge (see table below) Fund Share Class A Class B Class C Class D Class All Funds 1.75% 1.25% 0.55% 0.80% The Depositary s fees and expenses; The Cusdian s fees and expenses; The Audir s fees and expenses; Other fees and expenses related the management and administration of the Fund for which the ACD is permitted be reimbursed as detailed in the Prospectus (see section entitled Fees and Expenses ). 10

11 How much will any advice cost? Should you decide take advice about the Fund your adviser will give you details about the cost. The amount will depend on the size of your investment and, in the case of regular savings, the period for which you make them. How will charges and expenses affect my investment? Shares in a Fund are purchased and sold at the Fund s share price based on Net Asset Value. The initial charge paid as detailed above is deducted from an invesr s subscription monies before shares are purchased. Currently both the Cautious Fund and the Growth Fund charge fees and expenses against their respective income accounts. The Income Fund charges against the capital account. The Income & Growth Fund charges 50% against income and 50% against capital. The possible effect of the charges and expenses on an investment is illustrated in the following table which has been put gether in accordance with FCA regulary guidelines. These calculations are based on the assumption that the investment is growing at a rate of 4.5% per year for a direct investment and 5% per year for an ISA Investment. All investment managers use the same rates of growth for illustrations but their charges vary. These figures are not guaranteed and are only used provide an illustration of the effect that expenses and charges may have on the growth of an investment. What you will get back will depend on how your investment grows. You could get more or less than the figures shown. Do not forget that inflation will reduce what you can buy in the future with the amount shown. 11

12 Illustration of the possible effect of charges and expenses on your Investment Fund Name Cautious Fund Income Fund Balanced Income & Growth Fund Growth Fund Share Class B Shares B Shares B Shares B Shares Lump Sum Invested 10,000 10,000 10,000 10, % 5.00% 4.50% 5.00% 4.50% 5.00% 4.50% 5.00% Illustrative Growth Rate (Direct (ISA (Direct (ISA (Direct (ISA (Direct (ISA per Annum Investment) Investment) Investment) Investment) Investment) Investment) Investment) Investment) Initial Charge 5.00%* 5.00%* 5.00%* 5.00%* 5.00%* 5.00%* 5.00%* 5.00%* At End Income Income Income Income Income Income Income Income of Year Shares Shares Shares Shares Shares Shares Shares Shares Income date: Effect of Deductions date: What you might get back: This line shows that over 10 years the effect of tal charges and expenses could amount : Putting it another way this would have the same effect as bringing investment growth from 4.5% or 5% a year down : ,080 1,546 2,972 9,704 10,076 10,462 11, ,095 1,583 3,118 9,751 10,222 10,716 12, ,046 2, ,114 1,591 3,000 9,560 9,633 9,707 9,894 *of the net amount invested (equivalent approximately % of the gross amount invested) ,058 2, ,130 1,630 3,147 9,606 9,779 9,942 10, , ,081 1,541 2,926 9,639 9,874 10,114 10, , ,096 1,578 3,069 9,685 10,017 10,359 11, ,305 1,947 3,921 9,714 10,106 10,515 11, ,324 1,994 4,113 9,761 10,252 10,768 12,176 2,972 3,118 3,000 3,147 2,926 3,069 3,921 4, % 2.7% 2.2% 2.7% 2.3% 2.8% 1.5% 1.9% 12

13 Fund Name Cautious Fund Income Fund Balanced Income & Growth Fund Growth Fund Share Class C Shares C Shares C Shares C Shares Lump Sum Invested 10,000 10,000 10,000 10, % 5.00% 4.50% 5.00% 4.50% 5.00% 4.50% 5.00% Illustrative Growth Rate (Direct (ISA (Direct (ISA (Direct (ISA (Direct (ISA per Annum Investment) Investment) Investment) Investment) Investment) Investment) Investment) Investment) Initial Charge 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Income date: Effect of Deductions date: What you might get back: At End of Year This line shows that over 10 years the effect of tal charges and expenses could amount : Putting it another way this would have the same effect as bringing investment growth from 4.5% or 5% a year down : Accumulation Shares N/A ,478 10,346 11,074 11,854 14,051 Accumulation Shares N/A ,551 10,395 11,234 12,140 14,738 Income Shares ,132 2, ,523 10,106 10,322 10,542 11,113 Income Shares ,145 2, ,597 10,155 10,471 10,797 11,658 Accumulation Shares Accumulati on Shares Accumulation Shares Accumulation Shares N/A N/A N/A N/A ,507 10,344 11,068 11,842 14, ,580 10,393 11,227 12,128 14, ,028 2,456 10,272 10,837 11,434 13, ,052 2,576 10,321 10,994 11,710 13,713 1,478 1,551 1,523 1,597 1,507 1,580 2,456 2, % 3.9% 3.4% 3.9% 3.4% 3.9% 2.7% 3.2% Access the C share class is at the ACD s discretion 13

14 Fund Name Growth Fund Share Class D Shares Lump Sum Invested 10, % 5.00% Illustrative Growth Rate (Direct (ISA per Annum Investment) Investment) Initial Charge 0.00% 0.00% Income date: Effect of Deductions date: What you might get back: At End of Year This line shows that over 10 years the effect of tal charges and expenses could amount : Accumulation Shares N/A ,153 2,741 10,249 10,766 11,309 12,789 Accumulation Shares N/A ,181 2,875 10,298 10,921 11,582 13,414 2,741 2,875 Putting it another way this would have the same effect as bringing investment growth from 4.5% or 5% a year down : 2.4% 2.9% 14

15 What is the tal expense ratio ( TER )? The TER is a measure used show the annual operating expenses of the relevant Fund. The TER is the accepted standard used in the European Union for the comparison of these costs. Certain costs are excluded from the calculation of the TER. They include: The initial charge; Interest on borrowing; Payments incurred due financial derivative instruments; Entry/exit commissions or any fees paid directly by the invesr; and Commission sharing arrangements. Table of charges and expenses Fund Share Class Initial Charge AMC TER** Cautious Fund Income Fund Balanced Income & Growth Fund Growth Fund A 5%* 1.75% 2.20% B 5%* 1.25% 1.70% C 0%* 0.55% 1.00% A 5%* 1.75% N/A# B 5%* 1.25% 1.85% C 0%* 0.55% 1.15% A 5%* 1.75% N/A B 5%* 1.25% 1.72% C 0%* 0.55% 1.02% A 5%* 1.75% 2.92% B 5%* 1.25% 2.42% C 0%* 0.55% 1.72% D 0%* 0.80% 1.94%ϯ *of the net amount invested (equivalent approximately % of the gross amount invested). **TER calculated as at 30 th November 2015 # This share class does not currently have any shares in issue Ϯ Estimated TER Access the C share class is at the ACD s discretion 15

16 Do you apply a dilution levy? The actual cost of purchasing, selling or Switching assets and investments in the Funds may deviate from the mid-market value used in calculating the share price due dealing charges, taxes and any spread between the buying and selling prices of the relevant Fund s underlying investments. These costs could have an adverse effect on the value of an interest in a Fund. In order mitigate the effect of dilution, and in order protect the interests of existing/continuing Shareholders, the ACD has the power charge a dilution levy on the purchase and/or redemption or Switching of shares. In cases where a dilution levy is made the value of the capital of the property of the relevant Fund will not be adversely affected by dilution. Where charged, the dilution levy will be shown in addition (but not part of) the price of shares when they are issued by the ACD or as a deduction when they are redeemed by the ACD. The ACD has no entitlement the dilution levy, which will be paid in relevant Fund. The need charge a dilution levy will depend on the volume of Net purchases or redemptions, as described below. The ACD may charge a discretionary dilution levy on any sale or redemption of shares if, in its opinion, the existing Shareholders (for purchases) or continuing Shareholders (for redemptions) might otherwise materially be adversely affected. A dilution levy must be imposed only in a manner, that so far as practicable, is fair all Shareholders or potential Shareholders. In particular, the dilution levy may be charged in the following circumstances: (i) where a Fund is in continual decline; (ii) on a Fund experiencing large levels of Net sales (i.e. sales less redemptions) relative its size; (iii) on large deals. For these purposes, a large deal is defined as a sale or a redemption of 2 per cent or more of the value of Fund; (iv) in any other case where the ACD is of the opinion that the interests of existing/continuing Shareholders and potential Shareholders require the imposition of a dilution levy; (v) in the event that a Shareholder requests the redemption or cancellation of shares representing over 2% of the property of a Fund then, the Company can effect an in specie cancellation, by cancelling the shares and transferring relevant Scheme Property the Shareholder (see full Prospectus). Should the Shareholder not wish receive Scheme Property upon the redemption of shares then the ACD may arrange sell the shares and will pay the consideration, less expenses incurred the Shareholder. 16 A dilution levy is currently charged where a fund is deemed be in continual decline (with the prior agreement of the Depositary) or on large repurchases. Should a dilution levy be required then, based upon hisrical data it is estimated that the dilution levy will not exceed 1%. The ACD may alter its dilution policy either by Shareholder consent pursuant the passing of a resolution that effect at a properly convened meeting of Shareholders and by amending this Prospectus or by giving the Shareholders notice and amending the Prospectus 60 days before the change the dilution policy is take effect. Further details on this policy are available in the full Prospectus. What is the Portfolio Turnover Rate ( PTR )? The PTR shows the level of trading activity in the Funds over the previous 12 months. The formula used calculate the PTR is as follows: (purchases + sales) - (subscriptions + redemptions) x 100 (average Fund value The PTR for the Funds as at 31 ST over 12 months) May 2014 was as follows: Fund PTR as at 30 th November 2015 Cautious Fund % Income Fund % Balanced Income & Growth Fund % Growth Fund % Economic Information What about tax? The information below is a general guide based on current United Kingdom law and HM Revenue and Cusms practice, which are subject change. It summarises the tax position of the Funds and of invesrs who are United Kingdom resident and hold shares as investments. Prospective invesrs who are in any doubt about their tax position, or who may be subject tax in a jurisdiction other than the United Kingdom, are recommended take professional advice.

17 How are the Funds themselves treated for tax purposes? Each Fund is treated as a separate entity for United Kingdom tax purposes. The Funds are generally exempt from United Kingdom tax on capital gains realised on the disposal of investments (including interest-paying securities and derivatives, but excluding on non-reporting offshore funds) held within them. Dividends from both United Kingdom and non-united Kingdom companies are received by a Fund with a tax credit and no further tax is payable by the Fund on that income. The Funds will each be subject corporation tax at 20% on most other types of income but only after deducting allowable management expenses. Where a Fund suffers foreign tax on income received, this will normally be treated as an expense or deducted from any United Kingdom tax payable on that income. How does tax affect an invesr? Income from the Funds For the purposes of tax, the Funds will normally pay any distributable income as dividend distributions (which will be aumatically retained in the case of accumulation shares). Dividend distributions will be paid with a 10% tax credit. United Kingdom resident individuals liable income tax on investment income at the basic rate will have no further liability tax. Higher rate taxpayers will have pay an additional amount of income tax, as will additional rate taxpayers. Non-taxpayers cannot reclaim the tax credits on dividend distributions paid. Corporate Shareholders who receive dividend distributions may have divide them in two (in which case the division will be indicated on the reverse of the tax voucher). Any part representing dividends received from a company will be treated as dividend income (that is, franked investment income) and no further tax will be due on it. The remainder will be received as an annual payment after deduction of income tax at the basic rate, and corporate Shareholders may, depending on their circumstances, be liable tax on the grossed up amount, with the benefit of the 20% income tax credit attached or reclaim part of the tax credit as shown on the tax voucher. Non-United Kingdom resident Shareholders will generally not be entitled reclaim any part of the tax credit on the dividend distribution from HM Revenue & Cusms although it will normally satisfy their United Kingdom tax liability on that income. They may also be able offset the tax credit against their liability tax in their country of domicile. 17 Gains Invesrs who are resident in the United Kingdom for tax purposes may, depending on their personal circumstances, be liable capital gains tax or, if a corporate invesr, corporation tax on gains arising from the redemption, transfer or other disposal of shares (but not usually on Conversions between classes within a Fund). CLIENT MONEY Delivery versus payment (DVP) exemption We are required comply with the FCA s client money rules, as set out in Chapter 7 of the FCA s Client Assets sourcebook (CASS) (the Client Money Rules ). We are making use of the DVP exemption available under the Client Money Rules when handling money for you in connection with the buying or selling of units/shares in our funds. Under the DVP exemption your money need not be treated by us as client money for the purposes of the Client Money Rules in the following two scenarios: (1) where money is received from you that relates your subscription units/shares in one of our funds; and (2) where money is held by us that relates the redemption of your units/shares in one of our funds. While we are operating under the DVP exemption, your money will not be subject the protections conferred by the Client Money Rules and, if we were fail, the FCA s client money distribution rules as set out in Chapter 7A of CASS (the Client Money Distribution Rules ) will not apply these sums and you will not be entitled share in any distribution under the Client Money Distribution Rules in respect of these sums. Where we have not paid any money belonging you the trustee (in respect of a unit trust), the depositary (in respect of an OEIC) or you, as the case may be, by close of business on the business day following receipt, we will sp operating under the DVP exemption for that transaction and will treat the relevant sum of money as client money for the purposes of the Client Money Rules. Any redemption proceeds paid you by cheque will be held as client money under the Client Money Rules until such time as the cheque is presented. By buying units/shares in one of our funds through us, you agree our use of the DVP exemption as set out above. Should we cease at any time make use of the DVP exemption, you will be notified in advance in writing. Interest We will not pay you any interest earned on money we hold for you as client money under the Client Money Rules. General Information What other information can I access?

18 The annual short report of the Company will normally be sent Shareholders within four months of each annual accounting period end. The half-yearly (interim) short report will be despatched within two months of each interim accounting period end. publication which is stated on the front cover. All such information can change at any time and it will not necessarily be possible for us notify you of any such changes in advance. Please contact the ACD for updates on any of the enclosed information. The short reports and a report containing the full accounts of the Company (the long report) are available any person free of charge on request the ACD. Manager s reports and Company s Prospectus Copies of the Prospectus and the latest annual and halfyearly reports may be obtained free of charge, before or after you invest with the ACD, at the administration address quoted within the direcry section at the front of this document. In addition the latest annual and half-yearly short reports may be downloaded from the ACD s website at Distance Marketing Directive If an invesr has not had a face face discussion with a representative of the company through which they are making this investment, which could, for example, be the ACD or a company providing financial advice, then the invesr is entering in this transaction at a distance. In this situation an invesr does not have a right cancel this investment unless the ACD decides extend such a right them. An invesr who has bought shares at a distance can still sell those shares, as they are able do at any time. However, they cannot recover any initial charges incurred in the purchase of the shares. This Simplified Prospectus contains all of the information required for an investment made directly through the ACD. Where shares are purchased through an agent, invesrs should ask that agent for details of their identity, geographical address and the capacity in which they are acting. The main service we provide invesrs is the management and administration of the Company. Details of all fees and expenses associated with the provision of this service are provided in this document. There are no additional costs levied by the ACD for investing at a distance, but there may be other taxes or third party costs that may apply invesrs depending on their personal circumstances. The investment contract between an invesr and the ACD is governed by English Law and, by purchasing shares, the invesr agrees that the Courts of England have exclusive jurisdiction settle any disputes. All communications in connection with this investment will be in the English language. Any information in this document is valid only at the date of 18 Cancellation An invesr does not have the right cancel their application invest in a Fund if the application has been made directly by the invesr or if the invesr did not meet their adviser or agent face face though the ACD may, at its discretion, extend cancellation rights such an invesr. If an invesr has received face face advice on the investment they will have a right change their mind under rules made by the FCA under the Financial Services and Markets Act The invesr will be able exercise the right cancel within 14 days of receipt of the cancellation notice from the ACD and they will receive a refund of the amount invested either in full or less a deduction reflect any fall in the Fund s price in the intervening period. UK Money Laundering Regulations As a result of legislation in force in the UK prevent money laundering, the ACD is responsible for compliance with antimoney laundering regulations. In order implement these regulations, in certain circumstances invesrs may be asked provide proof of identity when buying or redeeming shares. Until satisfacry proof of identity is provided, the ACD reserves the right refuse issue shares, pay the proceeds of a redemption of shares, or pay income on shares the invesr. In the case of a purchase of shares where the applicant is not willing provide the information requested within a reasonable period, the ACD also reserves the right sell the shares purchased and return the proceeds the account from which the subscription was made. These proceeds may be less than the original investment. Governing Law The Company, the Instrument of Incorporation, this Prospectus and any matters arising out of or in connection with a Shareholder's investment in the Company and the establishment, management and administration of the Company shall be governed by and construed in accordance with the laws of England and Wales. The rights of the Shareholders and the construction and effect of the provisions of the Instrument of Incorporation and this Prospectus shall be subject the exclusive jurisdiction of the courts of England and Wales. Complaints To obtain a copy of the Complaints Procedure or make a complaint concerning the operation or marketing of the Company, please write the Complaints Officer of the ACD