We have written to unitholders of one or more funds within the Navigator fund range (the Trusts) to inform them that effective from 1 June 2016, the prospectus of the Navigator Fund Range has been updated to allow the fund manager to formally take advantage of an increase in investment powers that came into effect in 2003.
This change allows each Trust to invest up to 10% of its value in other funds that use derivatives for investment purposes from 1 June 2016.
The following funds are affected by the changes:
- Navigator Adventurous Managed Trust
- Navigator Balanced Managed Trust
- Navigator Cautious Managed Trust
- Navigator Growth Managed Trust
What change did you make to the Trusts?
The prospectus for the Trusts was updated to allow the fund manager to formally take advantage of an increase in investment powers that came into effect in 2003.
With the introduction of UCITS III regulations in 2003, some funds adopted investment powers which permitted the use of more sophisticated instruments and techniques for investment purposes with the aim of potentially generating greater returns.
The Trusts have not directly taken advantage of these powers and do not directly use derivatives for investment purposes. However, they do invest in other Threadneedle funds, a limited number of which have made use of these investment powers. We therefore wrote to investors to formalise this arrangement which permits the Trusts to increase exposure to these sophisticated funds up to a limit of 10%. This is reflected in the updated prospectus.
Why did we make the change?
The change enables the Trusts to invest in a wider range of underlying Threadneedle funds. This allows for further diversification within the Trusts, and means that the fund manager has a greater range of funds in which to invest in order to manage the Trusts to their investment objectives.
We therefore consider the change to be in the best interests of unitholders.
How is my investment affected by the change?
The investment objective, policy and process is not affected by this change.
When did the change take place?
The new investment powers are effective from 1 June 2016.
If you are unclear about any of the details relating to the change, or have any further questions, please call us on 0800 953 0134*. Our team is available from 8:00 am to 6:00 pm, Monday to Friday.
*Calls may be recorded.