The Sub-Fund aims to increase the value of your shares in the medium to long term by seeking exposure to companies which are likely to go through some kind of corporate event or restructuring which is expected to result in a significant change in the price of the securities involved. For example, a company may be involved in a merger or takeover, a restructuring or spin-off or a share class reorganisation that may act as a trigger for such a price change. The Sub-Fund may take long or short positions (using derivatives) in the company itself, or in other companies that may be involved in the event (such as an acquirer) or in the same or a comparable industry and that may offer a means of hedging the position. The Investment Manager expects the Sub-Fund to be involved in 30-50 events or positions at any given time, but there are no restrictions on the markets or industry sectors in which the Sub-Fund may invest.
It is also expected that by using derivatives, the Sub-Fund's long positions will be approximately 200% of the net asset value of the Sub-Fund and short positions approximately 100%, and when netted off against each other, the Sub-Fund may be anywhere between 100% long and 100% short at any given time. The Sub-Fund may invest directly in a position buying equity securities, or may invest indirectly through equity related securities, collective investment schemes and derivatives. As well as taking short positions in a company, the Sub-Fund may also use derivatives to hedge against market risk. Derivatives used may include swaptions, options, futures, contracts for difference and forwards and may involve some leverage in the Sub-Fund's portfolio. The Sub-Fund can also hold cash and debt securities up to 30% under normal market conditions, where it suits the investment objective, but the Sub-Fund may be held entirely in cash or debt securities in certain circumstances, for example where pending reinvestment in equity securities, in periods of extreme volatility or in particular market circumstances.