Funds principally targeting income - Immediate Income
UK Gilts
Funds which invest at least 95% of their assets in sterling denominated (or hedged back to Sterling) Triple AAA rated, government backed securities, with at least 75% invested in UK government securities (Gilts).
UK Index Linked Gilts
Funds which invest at least 90% of their assets in UK Index Linked Government securities (Gilts)
UK Corporate Bond
Funds which invest at least 80% of their assets in Sterling-denominated (or hedged back to Sterling), Triple BBB minus or above bonds (as measured by Standard & Poors or an equivalent external rating agency – (Moodys Baa or above)). This excludes convertibles.
UK Other Bond
Funds investing at least 80% of their assets in Sterling denominated (or hedged back to Sterling), and at least 20% of their assets in below BBB minus bonds (as measured by Standard and Poor’s or an equivalent external rating agency), convertibles and income producing preference shares.
Global Bonds
Funds which invest at least 80% of their assets in fixed interest stocks. All funds which contain more than 80% fixed interest investments are to be classified under this heading regardless of the fact that they may have more than 80% in a particular geographic sector, unless that geographic area is the UK, when the fund should be classified under the relevant UK heading.
UK Equity & Bond Income
Funds which invest at least 80% of their assets in the UK, between 20% and 80% in UK fixed interest securities and between 20% and 80% in UK equities. These funds aim to have a yield of 120% or over of the FT All Share Index.
Funds principally targeting income - Growing Income
UK Equity Income
Funds which invest at least 80% in UK equities and which aim to achieve a historic yield on the distributable income in excess of 110% of the FTSE All Share yield at the fund's year end.
UK Equity Income and Growth
Funds which invest at least 80% of their assets in UK equities, aim to have a historic yield of between 90-110% of the yield of the FTSE All Share Index at the fund's year end and which aim to produce a combination of both income and growth.
Funds principally targeting capital - Capital Growth/Total Return
UK Zeros
Funds investing at least 80% of their assets in Sterling denominated (or hedged back to Sterling), and at least 80% of their assets in zero dividend preference shares or equivalent instruments (i.e. not income producing). This excludes preference shares which produce an income.
UK All Companies
Funds which invest at least 80% of their assets in UK equities which have a primary objective of achieving capital growth.
UK Smaller Companies
Funds which invest at least 80% of their assets in UK equities of companies which form the bottom 10% by market capitalisation.
Japan
Funds which invest at least 80% of their assets in Japanese equities.
Japanese Smaller Companies
Funds which invest at least 80% of their assets in Japanese equities of companies which form the bottom 30% by market capitalisation.
Asia Pacific including Japan
Funds which invest at least 80% of their assets in Asia Pacific equities including a Japanese content. The Japanese content must make up less than 80% of assets.
Asia Pacific excluding Japan
Funds which invest at least 80% of their assets in Asia Pacific equities and exclude Japanese securities.
North America
Funds which invest at least 80% of their assets in North American equities.
North American Smaller Companies
Funds which invest a least 80% of their assets in North American equities of companies which form the bottom 20% by market capitalisation.
Europe including UK
Funds which invest at least 80% of their assets in European equities. They may include UK equities, but these must not exceed 80% of the fund’s assets.
Europe excluding UK
Funds which invest at least 80% of their assets in European equities and exclude UK securities.
European Smaller Companies
Funds which invest at least 80% of their assets in European equities of companies which form the bottom 20% by market capitalisation in the European market. They may include UK equities, but these must not exceed 80% or the fund’s assets. (‘Europe’ includes all countries in the MSCI/FTSE pan European indices.)
Specialist Sectors
Absolute Return
Funds managed with the aim of delivering absolute (i.e. more than zero) returns in any market conditions. Typically funds in this sector would normally expect to deliver absolute (more than zero) returns on a 12 months basis.
Property
Funds which predominantly invest in property. In order to invest "predominantly" in property, funds should either:
- invest at least 60% of their assets directly in property; or
- invest at least 80% of their assets in property securities; or
- when their direct property holdings fall below the 60% threshold for a period of more than 6 months, invest sufficient of the balance of their assets in property securities to ensure that at least 80% of the fund is invested in property, whereupon it becomes a hybrid fund.
For additional information, please see:
Definitions
