Whitman Asset Management Limited

MI Activus Diversified Fund

The Fund aims to achieve capital growth (after fees) of at least the UK Consumer Price Index plus 2% per annum, over a three-year period.

Your capital is at risk, however, and there is no guarantee that a positive return will be achieved over three years, or any time period.

The Investment Manager has full discretion and will adopt a global multi-asset approach. The asset classes and geographical spread will vary over time.

The Fund may invest indirectly or directly in a diversified portfolio of assets which may include: company shares; bonds; money market instruments; currencies and derivatives and indirectly only in commodities; infrastructure; private equity (which is money invested in firms which are not listed on any stock exchange) and real estate to the extent that each is permitted by the Regulations.

The Fund will typically invest about 80% of the portfolio indirectly but at times, the Investment Manager may decide to invest directly where it considers efficient to do so, therefore, the indirect exposure may be higher or lower than 80% but is never expected to fall below 60%. Indirect exposure will be achieved through other investment funds and exchange traded funds anywhere in the world and in any sector. These other funds may be managed by the authorised corporate director or other third party managers. They may be actively managed or passively managed (that is funds which track or are closely linked to the performance of an index). Investment into passive funds will be limited to 20%.

The Fund is actively managed with a bias towards lower volatility assets such as alternatives and fixed income.

Typically, indirect or direct exposure in the Fund will be balanced between bonds, company shares and alternative assets (such as infrastructure and commodities), however, the asset allocation may vary significantly to protect the Fund in adverse market conditions or to pursue potential growth opportunities that arise. Asset allocation to any one of these sectors will not fall below 15% at any time.

The bonds and money market instruments which can be held by the Fund may be investment grade and/or sub-investment grade and are like loans to companies, governments and other organisations that can pay a fixed or variable interest rate and may be issued anywhere in the world. They are classified by rating agencies for their creditworthiness: those rated ‘investment grade’ generally carry a relatively low risk of default but also tend to offer lower yields than ‘non-investment grade’ bonds which in turn, generally have a higher risk of default but also tend to offer higher yields.

The Fund may use derivatives which are sophisticated instruments whose value is linked to the rise and fall of prices of other assets. Derivatives may be used for limited investment purposes to achieve the investment objective and for the purposes of efficient portfolio management, to simply reduce risk or manage the Fund more efficiently.

MI Activus Opportunity Fund

The Fund aims to achieve capital growth.  It aims to deliver a return (before fees) of at least the UK Consumer Price Index plus 5% per annum over a 5 year period.

The Fund aims to achieve a positive return over a five year period.  However, capital is at risk and there is no guarantee that a positive return will be achieved.

The Fund will generally invest in collective investment schemes, listed investment companies and exchange traded funds.  Through such investments, the portfolio will achieve indirect exposure to a diversified range of assets classes and assets therein.  These asset classes will vary over the time but are selected from the following: equities, fixed income, private equity, currencies, commodities, real estate and alternative investment strategies to the extent that each is permitted by the applicable laws and regulations.

The Fund may also invest directly in other transferable securities which may include: company shares, bonds (which are like loans to companies, government and other organisations that can pay a fixed or variable interest rate), private equity, money market instruments, deposits, cash and near cash investments.

The Fund will generally invest its assets in collective investment schemes, listed investment companies and exchange traded funds.  However, the Investment Manager will continually assess market conditions and, if it believes it is necessary and for the benefit of the investors, it can adjust the asset allocation of such investments which may result either in a decrease in the proportion of investments in collective investment schemes, listed investment companies and exchange traded funds and increased exposure to other transferable securities, money market instruments, deposits, cash and near cash investments and derivatives or vice versa.

The composition of the portfolio will reflect the Investment Managers view of the potential future return of different underlying asset classes and specific investments.

The Investment Manager is able to invest the Fund’s portfolio into derivatives, which are sophisticated investments that are linked to the rise and fall of prices of other assets.  Derivatives will be used both to achieve the investment objective and for the purposes of efficient portfolio management to simply reduce risk or manage the Fund more efficiently.