AI Distribution Life Fund UK Corporate Income Units
Fund overview
Objective: The Sub-Fund aims to provide an income of at least 110% of the income return of the benchmark (“the Index”), measured over rolling 5-year periods (before the deduction of charges and taxes).
In addition, the Sub-Fund aims to grow your investment over the long term (5 years or more), through a combination of capital and income returns, by the equivalent of SONIA plus 2.5% (average annualised returns, before the deduction of charges and taxes, measured over rolling 5 year periods).
For more details on the Fund specific risks, click here.
Fees and expenses
Risks
Collective investment risk:
Investing in any type of collective investment involves certain risks and limitations that you would not face if investing in markets directly, including the risk of delay in liquidating your investment.
Counterparty risk:
The Fund could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Fund.
Currency risk:
Changes in currency exchange rates could reduce investment gains or increase investment losses. Exchange rates can change rapidly, significantly and unpredictably.
Derivatives risk:
Derivatives are instruments that can be complex and highly volatile, have some degree of unpredictability (especially in unusual market conditions), and can create losses significantly greater than the cost of the derivative itself.
Fixed Income Risk:
Investments in fixed interest securities are impacted by market and credit risk and are sensitive to changes in interest rates and market expectations of future inflation. Bonds that produce a higher level of income usually have a greater risk of default.
Hedging risk:
Any measures taken to offset specific risks will generate costs (which reduce performance), could work imperfectly or not at all, and if they do work will reduce opportunities for gain.
Illiquid securities risk:
Certain assets held in the Fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.
Interest rate risk — bonds:
When interest rates rise, bond values generally fall. This risk is generally greater for longer-term bonds and for bonds with higher credit quality.
Full information on risks applicable to the Fund are in the Prospectus and the Key Investor Information Document (KIID).
Management
Important information
Unless stated otherwise the source for all performance, portfolio and fund breakdown data is Morningstar. This information does not constitute advice or a recommendation. If you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Care is taken to ensure that the information provided by Morningstar is correct but it neither warrants, represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein.
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