Jupiter Absolute Return Accumulation

Aim of the fund

The Fund seeks to generate absolute return, independent of market conditions, by investing on a global basis. The Fund invests in a global portfolio of equities, equity related securities (including derivatives), cash, near cash, fixed interest securities, currency exchange transactions, index linked securities, money market instruments (MMIs) and deposits. At times the portfolio may be concentrated in any one or a combination of such assets and, as well as holding physical long positions the Manager may create synthetic long and short positions through derivatives.

Fund specific risks

• Concentrated Funds (C) - These funds may invest in a relatively smaller number of stocks. This stock concentration may carry more risk than funds spread across a larger number of companies.
• Higher Yield Fixed Interest Funds (E) - High yield bonds carry a greater risk of default than investment grade bonds, and economic conditions and interest rate movements will have a greater effect on their price. Income levels may not be achieved and the income provided may vary.
• Funds with the ability to use gearing/leverage (G) - Funds which are permitted to use geared investments such as warrants, options and derivatives to magnify returns. Used in this manner they carry a higher degree of risk than other equity investments. It is possible that the fund may suffer sudden and large falls in value so that the short fall on cancellation, or the loss of the realisation on the investment at any time after the investor has bought the contract, could be very high and could even equal the amount invested, in which case you would get nothing back.
• Down as well as up (I) - The value of investments, and any income can fall, as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.
• Long term (J) - Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve.
• Performance charges (L) - This fund makes charges that depend on the fund's performance. For full details please refer to the fund prospectus, which is available from Hargreaves Lansdown. The performance fee will be 15% of the outperformance of the benchmark. The fee is charged for performance in excess of the stated hurdle and are calculated and accrued daily for the purpose of calculating unit prices, although it will only be actually paid from the fund on 31 October each year. Once actually paid from the fund, the fee will not be returned if future underperformance occurs, but any future underperformance would have to be made up before any further fee can be taken. The hurdle is the 3 month LIBOR. In addition, the performance of the fund must also beat the high water mark before the fee is charged. The high water mark represents the value of a unit at the last point a performance fee was actually paid.
• Funds which can hold derivatives (M) - Funds which are permitted to use investments such as warrants, options and derivatives for what is known as Efficient Portfolio Management (EPM). They can be used to effectively take a position (or reduce an existing position) in a share or index, allowing positions to be altered more quickly and cost effectively than dealing directly in the underlying investment, but are not generally used to try and magnify returns. However, investors should be aware that the use of these instruments can, under certain circumstances, increase volatility and risk beyond that expected of a fund that only invests in conventional equities.

The letter in brackets indicates the codes used in our printed material (e.g. Investment Times).

On this page you will see a summary provided by the fund manager of key features of the fund. For full details of the fund, in particular the aims, charges and risks, please read the Simplified Prospectus/Key Investor Information Document.

If you are making a material investment decision you must read the Simplified Prospectus/Key Investor Information Document together with the Vantage Key Features which describe the accounts we offer, how we deal for you, hold your investments and how we can save you money. Once you have read these documents select 'invest now' for details of how to invest.