IFSL Pinnacle Life Cycle Global Equity Income Fund A GBP Income

The aim of the Fund is to increase the value of an investment by greater than the average return of the MSCI World Net Total Return Index GBP, net of fees, over rolling 5-year periods. The Fund will do this through a combination of capital growth, which is profit on investments held, and income received by the Fund, which is money paid out by investments, such as dividends from shares. The Fund also aims to deliver income at least 20% higher than the average income paid by the constituents of the MSCI World Net Total Return Index GBP, net of fees, over rolling 3-year periods. There is no certainty that either aim of the Fund will be achieved over any time period. The Fund is actively managed which means the Investment Manager decides which investments to buy or sell, and when. At least 90% of the Fund will be exposed to global shares of companies, also known as equities. This will be across both developed and emerging markets. The exposure to shares listed in emerging markets will be limited to a maximum of 20%. There will be no other minimum or maximum exposure to any specific geographic region. The Fund may hold up to 10% in cash to enable the ready settlement of liabilities, for the efficient management of the portfolio or in pursuit of the Fund’s investment objective. The Fund can use derivatives or forward transactions, which are instruments whose returns are linked to another asset, market or other variable factor. These may be used for efficient portfolio management purposes including the reduction of risk (hedging). The Investment Manager identifies suitable companies for investment by using a corporate life cycle based investment process. Every company in the investment universe is sorted into one of the five life cycles (accelerating, compounding, fading, mature and turnaround). The Investment Manager then uses a mixture of quantitative tools (data-driven methods) and some qualitative work (judgment or experience-based analysis) to narrow down the investment universe before conducting deeper qualitative analysis to identify companies with the strongest wealth creation potential. Around 250 companies are then selected for valuation analysis (where the Investment Manager assesses the value of a company’s shares). Companies with the strongest potential for wealth creation potential and positive valuation payoffs (when an investment is expected to generate a good return or benefit) are then considered for potential investment, alongside other factors. Finally, the Investment Manager looks to construct a portfolio so that stock selection is the primary driver of relative return, rather than factors such as region, sector or style. The performance target is the level of performance the Fund aims to deliver, however there is no certainty this will be achieved. The MSCI World Net Total Return Index GBP has been chosen as the performance target as the composition of the index is broadly similar to the holdings in the Fund. The MSCI World Net Total Return Index GBP tracks the performance of shares of companies listed in 23 developed-world countries. This Fund pays income. If you wish to receive this please tell us. If you do not want to receive income we will reinvest it to buy more units for you. You can buy or sell all or part of your investment on any business day subject to the minimum holding requirements.