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Risk Warnings


The following sections of the website is directed at United Kingdom residents only:

  • UK Private Investors
  • UK Investment Professionals (Independent Financial Advisers and Institutional Investors)

You should note that investment in any of our funds should be made on the basis of reading all the relevant Fund Documentation i.e. Fund Prospectus or Scheme Particulars and any other appropriate documentation (Prospectus, Key Investor Information Document and Terms & Conditions where applicable).

Copies of all relevant Fund Documentation can be downloaded from this web site or obtained by contacting the Investor Support Desk on 0800 317 749. Telephone calls may be monitored and/or recorded for the purpose of security, internal training, accurate account operation, internal customer monitoring and to improve the quality of service.

General

  • Investment into Unit Trust Funds should be regarded as a long term investment and investors should not invest money that they may require in the short term.
  • The capital value of units in the Fund can fluctuate and the price of units can go down as well as up and is not guaranteed. On encashment, particularly in the short term, investors may receive less than the original amount invested. Investors should be able to afford any potential loss.
  • There is no guarantee that the objectives of the Fund in which you are invested will be achieved.
  • Past performance is not a guide to future growth or rates of return.
  • These are stockmarket investments. As such the value of your investment and any income from it can fall as well as rise as the value of the underlying securities fluctuate and is therefore not guaranteed.
  • You should remember that when you sell your investment you may get back less than you invested.
  • Unlike a bank or building society account where capital is guaranteed, the value of an investment can fall as well rise and investors may not get back the amount invested, particularly in the case of early withdrawal.

Exchange Rates/Overseas Investments/Emerging Markets

The value of your investment may be affected by currency fluctuations if the fund has the ability to invest overseas.

Changes in rates of exchange may have an adverse effect on the value, price or income of investments.

Currency hedging may be used to manage currency risk.

You should be aware of the additional risks associated with investments in emerging or developing markets.

You should be aware that certain types of funds might carry greater investment risk than other investment funds. These include our Ignis Smaller Companies, Ignis Pacific Growth and Ignis Japan funds.

Investors should be aware of local laws governing investments and should read all the relevant documents including Reports and Accounts, Prospectus, Key Investor Information and Scheme Particulars as appropriate.

The reliability of trading and settlement systems in some emerging markets may not be equal to that available in more developed markets, which may result in problems in realising investments.

Lack of liquidity and efficiency in certain of the stock markets or foreign exchange markets in certain emerging markets may mean that from time to time the Manager may experience more difficulty in purchasing or selling holdings of securities than it would in a more developed market.

Charging of Expenses

The Manager's annual management charge in respect of each of the Funds other than the Ignis High Income Bond Fund, the Ignis Corporate Bond Fund and the Ignis UK Equity Income Fund will as far as possible be deducted from the income of such Funds. If there is insufficient income, the balance of the charges will be taken from capital. Deducting this charge, as well as the other charges and expenses incurred by these Funds, from capital may result in capital erosion or constrain capital growth of these Funds.

The Manager's annual management charge in respect of the Ignis High Income Bond Fund, the Ignis Corporate Bond Fund and the Ignis UK Equity Income Fund will be deducted from the capital of such Funds. Deducting this charge as well as the other charges and expenses incurred by these Funds from capital may result in capital erosion or constrain capital growth of these Funds.

Tax

Any change in a Fund's tax status or in taxation legislation could affect the value of the investments held by the Fund and could affect the return to investors.

As is the case with any investment, there can be no guarantee that the tax position or proposed tax position prevailing at the time an investment is made in the Fund will endure indefinitely.

Tax-free means tax free in the hands of the investor.

Tax concessions are not guaranteed and their value will depend on individual circumstances.

Tax treatment of ISAs may be subject to change.

Derivatives

The Funds have the ability to invest in derivatives for generating greater investment returns within the boundaries of EPM. These derivative transactions may be either exchange traded or over-the-counter (OTC). The use of OTC positions can potentially introduce additional risk to the portfolio. There are robust controls in place to manage these risks. Please note that there is a risk that in a rising market, potential gains may be restricted.

Bond Funds

Fixed income securities are subject to the risk of an issuer's ability to meet principal and interest payments on the obligation (credit risk), and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (market risk). The fixed income securities in which the Fund may invest are interest rate sensitive. An increase in interest rates will generally reduce the value of fixed-income securities, while a decline in interest rates will generally increase the value of fixed-income securities. The performance of the Fund will therefore depend in part on the ability to anticipate and respond to such fluctuations on market interest rates, and to utilise appropriate strategies to maximise returns, while attempting to minimise the associated risks to investment capital.

Distribution Yield is the amount expected to be distributed over the next 12 months, as a percentage of the mid market unit price, as at the date shown. Underlying Yield shows the annualised income (net of expenses) as a percentage of the mid market unit price, as at the date shown.

The Underlying Yield reflects the annualised income net of expenses of the fund as a percentage of the mid market unit price of the fund as at the date shown. It is based on a snap shot of the portfolio on that day. Investors may be subject to tax.

The High Income Bond Fund invests primarily in sub-investment grade bonds. Whilst these are generally higher yielding bonds which tend to boost yield, there is an increased risk of default on repayment which may affect the capital value of the Fund.

Investors should be aware that investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value.

Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth.

Ignis Absolute Return Government Bond Fund

Sub-investment grade bonds
Investment by a Sub-Fund in high yield bonds brings an increased risk of default on repayment and this in turn translates into a risk that the capital value of a Sub-Fund will be affected. Investors should be aware that the yield or the capital value of a Sub-Fund (or both) can fluctuate.

Fixed interest securities
Fixed interest securities are particularly affected by trends in interest rates and inflation. If interest rates increase, capital values may fall and vice versa. Inflation will erode the real value of capital. In addition, companies may not be able to honour repayment on bonds they issue.

Short positions through financial derivatives instruments
The Fund may take short positions by way of financial derivatives instruments. Short positions through financial derivatives instruments involves trading on margin and accordingly can involve greater risk than investments based on a long position.

Due to regulatory or legislative action taken by regulators around the world as a result of recent volatility in the global financial markets, taking short positions on certain securities has been restricted. The levels of restriction vary across different jurisdictions and are subject to change in the short to medium term. These restrictions have made it difficult and in some cases impossible for numerous market participants either to continue to implement their investment strategies or to control the risk of their open positions. Accordingly, the Investment Manager may not be in a position to fully express its negative views in relation to certain securities, companies or sectors and the ability of the Investment Manager to fulfil the investment objective of a Sub-Fund may be constrained. This position will be monitored regularly by the Investment Manager.

Repurchase and Reverse Repurchase Agreements
The use of Repurchase and Reverse Repurchase Agreements can substantially increase the losses to which the Sub-Fund's investment portfolios may be subject. Investors should recognise that investing in the respective Sub-Fund involves special considerations not typically associated with investing in other securities. The Sub-Fund gives no assurance that its investment objective of maximising returns on investments will be achieved.

Smaller Companies

The Ignis Smaller Companies Fund and the Ignis European Smaller Companies Fund invest in smaller companies. Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies which can result in significant capital losses which may have a detrimental effect on the value of the Fund. In particular, smaller companies often have limited product lines, markets or financial resources and may be dependent for their management on a smaller number of key individuals. In addition, the market for securities in smaller companies is often less liquid than that for securities in larger companies and therefore, the Manager may experience difficulty, from time to time, in purchasing or selling holdings of such securities. Also smaller companies may not do as well in periods of adverse economic conditions.

Property

Property investments are relatively illiquid compared to bonds and equities and can take a significant length of time to trade. This is reflected in the redemption terms. The value of units and the income from them can go down as well as up and is not guaranteed. You may not get back the full amount invested.

Due to the higher costs associated with buying and selling property compared to bonds or shares, there may be a larger difference between the price you buy and sell units at.

Property valuations are determined by independent property experts and are based on opinion rather than fact.

The yield figure is calculated using the full offer price, net of charges and net of tax. Yields may vary.


Dublin Funds

Where funds are invested in emerging markets the risk inherent in the fund is higher.

Many of the Fund's investments will be denominated in currencies other than the currency of the Share class purchased by the investor and, therefore, the Net Asset Value of the Fund may be affected by currency movements.

Multi-Manager Funds

For the Ignis Multi-Manager Cautious Fund we collect the management charges from the Fund's capital account. This reduces capital growth prospects after any income is withdrawn and may erode capital. For the Ignis Multi-Manager Balanced and Growth Funds we collect the management charges from the Income generated by the Funds.

As the Ignis Multi-Manager Cautious, Growth and Balanced Funds invest primarily in Invested Funds, the risk level of each Fund depends on the risk profiles of the Invested Funds, which in turn are based on their own underlying investments.

Invested Funds are funds managed by third party managers and the Investment Adviser will put in place suitable contractual arrangements with these managers. The Investment Adviser does not accept responsibility for the acts and omissions of third party managers in connection with the operation of the Invested Funds which may cause the investments to fall in value.

International Investors

This site has promotional purposes and is intended as a summary for Investment Professionals only; it is not intended to be accessed by Retail Investors. It is not an invitation to subscribe for shares. Distribution of this site and the offering of shares in certain jurisdictions may be restricted by law and accordingly persons into whose possession this document comes are required to inform themselves about and to observe such restrictions.

You should note subscriptions in our Funds are only valid if made on the basis of reading all the relevant Fund Documentation i.e. Fund Prospectus or Scheme Particulars and any other appropriate documentation (Prospectus, Key Investor Information Document and Terms & Conditions where applicable).

Copies of all relevant Fund Documentation can either be downloaded from this web site or obtained by contacting the Investor Support Desk on 0800 317 749. Telephone calls may be monitored and/or recorded for the purpose of security, internal training, accurate account operation, internal customer monitoring and to improve the quality of service.

Investors' attention is drawn to the risk factors set out in the Prospectus and to the following additional risk factors.

General

Past performance is not a guide to future growth or rates of return.

The capital value of units in the Fund can fluctuate and the price of units can go down as well as up and is not guaranteed. On encashment, particularly in the short term, investors may receive less than the original amount invested. Investors should be able to afford any potential loss as there here is no guarantee that the objectives of the Fund in which you are invested will be achieved.

Where the Fund has a concentrated portfolio of approximately 30 – 50 stocks it will carry more risk than funds spread across a large number of stocks.

These are stockmarket investments. As such the value of your investment and any income from it can fall as well as rise as the value of the underlying securities fluctuate and is therefore not guaranteed.

You should remember that when you sell your investment you may get back less than you invested.

Currency Exchange & Emerging Markets

  • Many of the Fund's investments will be denominated in currencies other than the currency of the Share class purchased by the investor and, therefore, the Net Asset Value of the Fund may be affected by currency movements.
  • Shareholders should note that where the Fund invests in emerging markets these investments may carry risks with failed or delayed settlement and with registration and custody of securities. Companies in emerging markets may not be subject to accounting, auditing and financial reporting standards or be subject to the same level of government supervision and regulation as in more developed markets. Government involvement in the economy may affect the value of investments in certain emerging markets and the risk of political instability may be high. The reliability of trading and settlement systems in some emerging markets may not be equal to that available in more developed markets which may result in problems in realising investments. Lack of liquidity and efficiency in certain of the stock markets or foreign exchange markets in certain emerging markets may mean that from time to time the Investment Manager may experience difficulty in purchasing or selling holdings of securities.

Derivatives

  • The Funds have the ability to invest in derivatives for generating greater investment returns within the boundaries of EPM. These derivative transactions may be either exchange traded or over-the-counter (OTC). The use of OTC positions can potentially introduce additional risk to the portfolio. There are robust controls in place to manage these risks. Please note that there is a risk that in a rising market, potential gains may be restricted

Short positions through financial derivatives instruments

  • Certain Funds' may take short positions by way of financial derivatives instruments. Short positions through financial derivatives instruments involves trading on margin and accordingly can involve greater risk than investments based on a long position.
  • Due to regulatory or legislative action taken by regulators around the world as a result of recent volatility in the global financial markets, taking short positions on certain securities has been restricted. The levels of restriction vary across different jurisdictions and are subject to change in the short to medium term. These restrictions have made it difficult and in some cases impossible for numerous market participants either to continue to implement their investment strategies or to control the risk of their open positions. Accordingly, the Investment Manager may not be in a position to fully express its negative views in relation to certain securities, companies or sectors and the ability of the Investment Manager to fulfil the investment objective of a Sub-Fund may be constrained. This position will be monitored regularly by the Investment Manager.

Fixed Income

  • Fixed income securities are subject to the risk of an issuer's ability to meet principal and interest payments on the obligation (credit risk), and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (market risk). The fixed income securities in which the Fund may invest are interest rate sensitive. An increase in interest rates will generally reduce the value of fixed-income securities, while a decline in interest rates will generally increase the value of fixed-income securities. The performance of the Fund will therefore depend in part on the ability to anticipate and respond to such fluctuations on market interest rates, and to utilise appropriate strategies to maximise returns, while attempting to minimise the associated risks to investment capital.

Tax

  • Any change in the Fund's tax status or in taxation legislation could affect the value of the investments held by the Fund and could affect the return to investors. The attention of potential investors is drawn to the tax risk associated with investing in the Fund. See section headed "Taxation" in the Prospectus.