Various changes to Ninety One Global Strategy Funds
We have been informed by Ninety One Global Strategy Fund ("Ninety One") of various changes to the investment policies of its sub-funds. These changes will take effect from 13 June 2022 (the "effective date")
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
The funds feature in our open-architecture products and will be subject to changes detailed in the Ninety One notification document opposite.
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
The funds can be found in our defined fund range products Oracle, Paragon, Quantum, RSP (including Malaysia variants), LifePlan, LifePlan Lebanon, Protected Lifestyle and PIMS Focused. A summary of the changes are detailed in the tables below.
The Ninety One notification document for each of the below funds can be found opposite which provide full details of all of the changes.
Change to Investment Policy - Ninety One GSF Emerging Markets Corporate Debt
Fund name |
ISIN |
Ninety One GSF Emerging Markets Corporate Debt A Acc EUR Hgd Ninety One GSF Emerging Markets Corporate Debt A Acc USD |
LU1241889382 LU0611394940 |
Current Investment Policy |
New Investment Policy |
The Sub-Fund aims to provide income and generate capital gains over the long-term, primarily through investment in a diversified portfolio of debt securities (e.g., bonds) issued by Emerging Markets Corporate Borrowers and derivatives which offer exposure to such debt securities. The Sub-Fund may also invest in debt securities issued by Emerging Markets Sovereign Borrowers and derivatives which offer exposure to such debt securities. These securities may be denominated in local currencies as well as hard currencies (globally traded major currencies). The exposure to mortgage-backed securities and asset-backed securities combined will not represent more than 20% of the assets of the Sub-Fund. The exposure to Contingent Convertibles (CoCos) will not represent more than 10% of the assets of the Sub-Fund. The Sub-Fund may hold other transferable securities, money market instruments, cash or near cash, derivatives, deposits and units in collective investment schemes. The Sub-Fund may use derivatives for efficient portfolio management, hedging and/or investment purposes. |
The Sub-Fund aims to provide income with the opportunity for capital growth (i.e. to grow the value of your investment) over the long-term. The Sub-Fund is actively managed and invests primarily in a diversified portfolio of debt securities (e.g. bonds) issued by Emerging Markets Corporate Borrowers and derivatives (financial contracts whose value is linked to the price of a debt security) which offer exposure to such debt securities. These securities may be Investment Grade and Non-Investment Grade, and of any duration. The Sub-Fund may also invest in debt securities issued by Emerging Markets Sovereign Borrowers and derivatives which offer exposure to such debt securities. The Sub-Fund may also invest up to 30% of its assets in debt securities issued by borrowers in frontier markets and derivatives which offer exposure to such debt securities. These debt securities may be denominated in local currencies (the currency of the country of an issuer) as well as hard currencies (globally traded major currencies). The Sub-Fund promotes environmental and social characteristics in line with Article 8 of the SFDR as described in the Sub-Fund’s Sustainability Disclosures. The Sub-Fund will not invest in certain borrowers. Details of these exclusions can be found on the website www.ninetyone.com in the section entitled “Sustainability related Disclosures” pursuant to the Article 10 of the SFDR. Over time, the Investment Manager may, in its discretion and in accordance with this investment policy, elect to apply additional exclusions to be disclosed on the website, as they are implemented. The exposure to mortgage-backed securities and asset backed securities combined will not represent more than 20% of the assets of the Sub-Fund. The exposure to Contingent Convertibles (CoCos) will not represent more than 20% of the assets of the Sub-Fund. The Sub-Fund’s exposure to distressed debt will not represent more than 10% of the assets of the Sub-Fund. This will include debt securities which are distressed at the time of purchase or become distressed after the time of purchase. The Investment Manager will determine whether to continue to hold debt securities which become distressed or sell them, having considered the investment/financial case for the securities and whether they continue to satisfy the investment objective of the Sub-Fund. Such sales will take place over a time period to be determined by the Investment Manager, taking into account the best interests of the Shareholders of the Sub-Fund. The Sub-Fund may hold other transferable securities, money market instruments, cash or near cash, derivatives, deposits and units or shares in other funds. The Sub-Fund may use derivatives for Efficient Portfolio Management, hedging and/or Investment Purposes. Derivatives which may be used include, without being exhaustive, exchange traded and over the-counter options, futures, forward contracts and swaps, or combination(s) of these. The Sub-Fund’s use of derivatives may at times result in net long or short positions in certain currencies, markets, sectors, or its permitted asset classes. Foreign exchange forward contracts used may result in net long or short positions in relation to certain currencies with reference to the Sub-Fund’s Reference Currency. The underlying of a transaction in a derivative may consist of any one or more of transferable securities, money market instruments, indices, interest rates, foreign exchange rates and currencies. |
These changes will not affect the way the Fund is managed or its risk or return profile.
Change to Investment Policy - Ninety One GSF Global Environment
Fund name |
ISIN |
Ninety One GSF Global Environment A Acc EUR Ninety One GSF Global Environment A Acc USD Ninety One GSF Global Environment A Inc USD |
LU1939256001 LU1939255532 LU2298064838 |
Ninety One is replacing the wording in each Fund’s investment policy which expresses the minimum period over which the Investment Manager aims to meet the Fund’s objective in years i.e. ‘at least 5 years’ with the term ‘long-term’. ‘Long-term’ will be understood as set out in the revised ‘Profile of the Typical Investor’ paragraph in each Fund’s section in Appendix 1 of the GSF’s Prospectus. This wording will be as follows:
‘The Sub-Fund is suitable for an investor who wishes to have the investment exposure as set out in the Sub-Fund’s investment objective and policy and is comfortable taking on the risks as set out in the Appendix 2. This Sub-Fund may be appropriate for an investor whose intended investment horizon is long-term i.e. generally 5 years or more, although an investor can sell at any time (subject to the conditions described in Section 5.5 and 6.8 of this Prospectus). Investing in any fund involves a risk to capital that could be large or small depending on various market conditions and investors must understand this volatility.’
Ninety One is also removing the wording ‘before allowing for fees’ from each Fund’s investment policy.
These changes are being made for the purposes of consistency with other funds in the GSF range of funds. They do not affect the way the Funds are managed, nor do they alter their risk or return profiles.
Change to Investment Policy - Ninety One GSF Global Franchise
Fund name |
ISIN |
Ninety One GSF Global Franchise A Acc CHF Hgd Ninety One GSF Global Franchise A Acc EUR Ninety One GSF Global Franchise A Acc USD Ninety One GSF Global Franchise A Inc USD |
LU0869878131 LU0846948197 LU0426412945 LU0426417589 |
Current Investment Policy |
New Investment Policy |
The Sub-Fund aims to achieve long-term capital growth primarily through investment in shares of companies around the world. The Sub-Fund will have a blend of investments and will be unrestricted in its choice of companies either by size or industry, or in terms of the geographical make-up of the portfolio. The Sub-Fund will focus investment on stocks deemed to be of high quality which are typically associated with global brands or franchises. The Sub-Fund may also invest in other transferable securities, money market instruments, cash and near cash, derivatives and forward transactions, deposits and units in collective investment schemes. The Sub-Fund may use derivatives for the purposes of hedging and/or efficient portfolio management. |
The Sub-Fund aims to provide capital growth (i.e., to grow the value of your investment) with the opportunity for income over the long-term. The Sub-Fund invests primarily in equities (e.g., shares of companies) around the world. The Sub-Fund will be actively managed. The Investment Manager will have full discretion in its choice of companies either by size or industry, or in terms of the geographical make-up of the portfolio. Investment opportunities are identified using in-depth analysis and research on individual companies. The Sub-Fund will focus investment on stocks deemed to be of high quality which are typically associated with global brands or franchises. The Sub-Fund promotes environmental and social characteristics in line with Article 8 of the SFDR as described in the Sub-Fund’s Sustainability Disclosures. The Sub-Fund will not invest in certain sectors or investments. Details of these excluded areas can be found on the website www.ninetyone.com in the section entitled “Sustainability-related Disclosures” pursuant to the Article 10 of the SFDR. Over time, the Investment Manager may, in its discretion and in accordance with this investment policy, elect to apply additional exclusions to be disclosed on the website, as they are implemented. The Sub-Fund may also invest in other transferable securities, money market instruments, cash and near cash, derivatives (financial contracts whose value is linked to the price of an underlying asset), deposits and units or shares in other funds. The Sub-Fund may use derivatives for the purposes of hedging and/or Efficient Portfolio Management. Derivatives which may be used include, without being exhaustive, exchange traded and over-the-counter futures, options, swaps and forwards. The underlying of a transaction in a derivative may consist of any one or more of transferable securities, indices, foreign exchange rates and currencies. |
These changes will not affect the way the Fund is managed or its risk or return profile.
Change to Investment Policy - Ninety One GSF Global Multi-Asset Income
Fund name |
ISIN |
Ninety One GSF Global Multi-Asset Income A Acc USD |
LU0972617095 |
Current Investment Policy |
New Investment Policy |
The Sub-Fund aims to provide income with the opportunity for long-term capital growth. The Sub-Fund will invest primarily in a diversified portfolio of fixed interest instruments, equities and derivatives, the underlying assets of which are fixed interest instruments and equities. Normally, the Sub-Fund’s maximum equity exposure will be limited to 40% of its assets. Fixed interest instruments held may be (i) issued by companies, institutions, governments, government agencies or supranational bodies around the world, including emerging and frontier type markets, (ii) of any duration and (iii) of Investment Grade and/or Non-Investment Grade. The Sub-Fund’s maximum exposure to issuers of emerging and frontier markets fixed interest instruments will be limited to 25% of its assets. The Sub-Fund may invest in debt instruments issued inside Mainland China on any eligible market, including CIBM, and traded through, without limitation, RQFII, CIBM Direct Access and Bond Connect. The Sub-Fund may invest in shares issued by Mainland China companies, without limitation, including B shares, H shares and China A Shares (which may include, but is not limited to, those China A Shares traded via Stock Connect and RQFII). The Sub-Fund’s exposure to investments in Mainland China will be limited to 20% of its net assets. The Sub-Fund may hold other transferable securities, money market instruments, cash or near cash, derivatives, deposits and units in collective investment schemes. The Sub-Fund may use derivatives for efficient portfolio management, hedging and/or investment purposes. |
The Sub-Fund aims to provide income with the opportunity for capital growth (i.e., to grow the value of your investment) over the long-term. The Sub-Fund seeks to limit volatility (the pace or amount of change in its value) to be lower than 50% of the volatility of global equities. While the Sub-Fund aims to limit its volatility to be lower than 50% of global equities there is no guarantee that this will be achieved over the long-term, or over any period of time. The Sub-Fund is actively managed and invests in a broad range of assets around the world. These assets may include equities (e.g. shares of companies), debt securities (e.g. bonds), money market instruments, cash or near cash, deposits, alternative assets (such as commodities, property and infrastructure), other transferable securities (e.g. shares of closed-ended investment companies, exchange traded products and equity related securities such as depositary receipts, preference shares, warrants and equity linked notes), derivatives (financial contracts whose value is linked to the price of an underlying asset), and units or shares in other funds. Investments may be held directly in the asset itself, other than in commodities, property or infrastructure, or indirectly (e.g., using derivatives). Normally, the Sub-Fund’s maximum equity exposure will be limited to 40% of its assets. The Sub-Fund focuses on investing in securities that offer a reliable level of income and opportunities for capital growth in many market conditions. Investment opportunities are identified using in-depth analysis and research on individual companies and borrowers. The Sub-Fund promotes environmental and social characteristics in line with Article 8 of the SFDR as described in the Sub-Fund’s Sustainability Disclosures. The Sub-Fund will not invest in certain sectors or investments. Details of these excluded areas can be found on the website www.ninetyone.com in the section entitled “Sustainability-related Disclosures” pursuant to the Article 10 of the SFDR. Over time, the Investment Manager may, in its discretion and in accordance with the Sub-Fund’s investment objective and policy, elect to apply additional exclusions to be disclosed on the website, as they are implemented. Debt securities held may be (i) issued by any borrower (e.g., companies and governments), including emerging and frontier type markets, (ii) of any duration and (iii) of Investment Grade and/or Non-Investment Grade. The Sub-Fund’s maximum exposure to issuers of emerging and frontier markets debt securities will be limited to 25% of its assets. The Sub-Fund may invest in debt instruments issued inside Mainland China on any eligible market, including CIBM, and traded through, without limitation, RQFII, CIBM Direct Access and Bond Connect. The Sub-Fund may invest in shares issued by Mainland China companies, without limitation, including B shares, H shares and China A Shares (which may include, but is not limited to, those China A Shares traded via Stock Connect and RQFII). The Sub-Fund’s exposure to investments in Mainland China will be limited to 20% of its net assets. The Sub-Fund may take exposure to alternative assets, such as property and infrastructure through investment in transferable securities, units or shares in other funds and derivatives whose underlying instruments are transferable securities, financial indices or units or shares in other funds. Property transferable securities may comprise of those issued by companies active in the real estate sector and closed-ended real estate investment trusts (REITS) of any legal form qualifying as eligible transferable securities. Infrastructure transferable securities may comprise of those issued by companies active in the relevant sector and listed closed-ended investment companies qualifying as eligible transferable securities. The Sub-Fund may take exposure of up to 10% of its assets to commodities in accordance with the Grand Ducal Regulation of 8 February 2008. For this purpose, the Sub-Fund may purchase derivatives whose underlying instruments are commodities and sub-indices, transferable securities that do not embed a derivative, or 1:1 certificates (including Exchange Traded Commodities (ETCs)) the underlying of which are commodities and that qualify as an eligible transferable security. The Sub-Fund will not acquire physical commodities directly, nor will it invest directly in any derivative that has physical commodities as an underlying asset. The Sub-Fund may use derivatives for, hedging, Efficient Portfolio Management and/or Investment Purposes. Derivatives which may be used include, without being exhaustive, exchange traded and over-the-counter futures, options, swaps and forwards, or combination(s) of these. The underlying of a transaction in a derivative may consist of any one or more of transferable securities, money market instruments, indices, interest rates, foreign exchange rates and currencies. |
These changes will not affect the way the Fund is managed or its risk or return profile.
Change to Investment Policy - Ninety One GSF Global High Yield Bond
Fund name |
ISIN |
Ninety One GSF Global High Yield Bond A Inc-2 EUR |
LU0345766611 |
Ninety One is replacing the wording in the Fund’s investment policy which expresses the minimum period over which the Investment Manager aims to meet the Fund’s objective in years i.e. ‘at least 5 years’ with the term ‘long-term’.
‘Long-term’ will be understood as set out in the revised ‘Profile of the Typical Investor’ section of the GSF’s Prospectus. This wording will be as follows:
‘The Sub-Fund is suitable for an investor who wishes to have the investment exposure as set out in the Sub-Fund’s investment objective and policy and is comfortable taking on the risks as set out in the Appendix IV. This Sub-Fund may be appropriate for an investor whose intended investment horizon is long-term i.e. generally 5 years or more, although an investor can sell at any time. Investing in any fund involves a risk to capital that could be large or small depending on various market conditions and investors must understand this volatility.’
These changes are being made for the purposes of consistency with other funds. They do not affect the way the Fund is managed, nor do they alter its risk or return profile.
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For more information about Ninety One Global Strategy Fund visit www.ninetyone.com/en/