MI Quilter Cheviot Diversified Returns Fund
The Fund aims to deliver capital growth and income on a rolling five-year basis, by investing predominantly in a diversified portfolio of asset classes either directly or indirectly.
The Fund will typically invest at least 90% of the portfolio indirectly but at times, dependent on market conditions and the Investment Manager’s view of the market, the indirect exposure may be higher or lower than 90% but is never expected to fall below 80%.
The Fund’s indirect investments will include other investment funds (which may include those that are managed or operated by the ACD or an associate of the ACD), to give further exposure to a diversified portfolio of asset classes.
The Fund will have typically 60% (but a minimum of 50%) invested in alternative asset classes such as: private equity; infrastructure; currency; derivatives; and funds with absolute return strategies and multi asset strategies. The Fund will have no direct exposure to property or commodities funds.
Most of the alternative asset class exposure will be through funds with absolute return strategies and multi-asset strategies.
Absolute return funds aim to deliver positive returns regardless of the direction of broader investment markets. Multi asset funds invest across different asset classes, seeking to achieve asset diversification within the one fund.
A portion of the Fund will be invested in low-cost investments that track the performance of mainstream asset classes (but the Fund itself does not seek to track any index). No more than 50% of the Fund will be invested in index-tracking investments.
The Fund may also hold other assets, including company shares, government bonds, investment grade and/or sub-investment grade corporate bonds and cash.
Bonds are like loans that pay a fixed or variable rate of interest issued by governments, companies and other large organisations worldwide. Bonds are classified by rating agencies for their creditworthiness: those rated ‘Investment grade’ generally carry a relatively low risk of default but also tend to offer lower yields than ‘non-investment grade’ bonds which, in turn, generally have a higher risk of default but also tend to offer higher yields.
The Fund may use derivatives, which are sophisticated instruments whose value is linked to the rise and fall of other assets, to achieve its investment objectives and for the purposes of hedging and efficient portfolio management, with the aim of managing risk and cost.
The Fund is actively managed. This means the Investment Manager uses their expertise to pick investments to achieve the Fund’s objective.