The fund’s objective is to achieve a total return of between 3% above the Consumer Price Index (CPI) over a rolling five-year period. The fund has a targeted risk budget of two-thirds of the volatility of global equities as measured by the MSCI World Equity index. In short the fund seeks to achieve equity-like returns with less than equity risk, together with a sustainable income yield. The fund’s management fees are exempt from VAT.

Client suitability: investors should be medium risk charities, seeking to achieve long-term returns generated from a mixture of capital growth and income, with lower levels of volatility than equity markets. If equities go down, investors might expect drawdowns typically of as much as two-thirds of equity market falls or possibly more in extreme market events. This means that they should be able to commit money to these investments for a minimum of three years, or longer if necessary.

Ethical investment policy: the fund is subject to certain ethical investment constraints and will aim not to have any direct exposure to companies that generate more than 20% of their turnover from tobacco, gambling, high interest rate lending or pornography.

Date launched: 9 July 2012