Notification of changes to the underlying fund of P41 Ninety One Global Income Opportunities
03 May 2023
We have received notification from Ninety One Fund Managers UK Limited (“Ninety One”) of the following upcoming changes to the underlying fund of our P41 Ninety One Global Income Opportunities mirror fund (the “Affected Mirror Fund”). These changes will take effect on, or shortly after, 3 July 2023 (the “Effective Date”).
Removal of the target from the investment objective
Following an objective review taking into consideration factors including the economic environment and outlook, Ninety One has decided to remove the target of the UK’s Consumer Price Index + 4% annually over 5-year periods from the investment objective of the underlying fund of the Affected Mirror Fund.
Reasons for this change include the current high levels of inflation (as this target is an inflation-linked measure) and the broader economic slowdown, which has tipped the economy into recession in many parts of the world. In this market, Ninety One believes that the level of risk required to achieve the current target would be unreasonable and not in investors' interests. Further, Ninety One has added a new comparator benchmark to the underlying fund of the Affected Mirror Fund, which it believes is a better reflection of the outcomes that can be achieved from the broad asset types in which the underlying fund invests, and can help investors compare the fund’s performance.
The underlying fund's objective to provide income with the opportunity for capital growth (to grow the value of the investment) over at least 5 years remains unchanged and this change will not alter its risk profile or the way in which it is managed.
Please refer to the Appendix in the Ninety One notification document opposite for details of the comparator benchmark. As this benchmark is not a target, it will not be included in the investment objective of the underlying fund of the Affected Mirror Fund.
Investment policy changes
Ninety One has advised that it is also taking the opportunity to amend the investment policy of the underlying fund of the Affected Mirror Fund to align its language with other similar funds, including removing the distinction between the underlying fund's primary and ancillary investments by combining these into a single broad group of assets the underlying fund may invest in. The underlying fund invests across these asset classes to respond to market conditions and investment opportunities for the benefit of investors.
In addition, there are amendments to the underlying fund’s investment policy to update the wording so that it is more in line with current expectations for investment policies and to include more information on the investments which may be held. In particular, enhancing the wording to describe how the underlying fund may invest in commodities, property and infrastructure. Ninety One believes that these changes make the underlying fund’s aims, and the type of investments it may invest in, clearer.
These changes are also set out in the Appendix; as indicated above, they do not alter the fund’s risk profile or the way in which it is managed.
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