For income, growth, or a bit of both

Regulations require us to provide you with a breakdown of the actual costs and charges incurred on your investments for the previous year.

The charges shown in the SID are designed to provide an estimate of the total costs and charges associated with a product or service to enable you to make an informed decision prior to making an investment. These are calculated based on previous costs but allowing for any changes that will influence future costs.

The actual costs are broken down into the following categories:

• One-off Charges: all costs and charges paid when investing in or exiting from the fund(s). For RBSCIFL Funds there are no one-off charges so these will always be zero.

• On-going Charges: these include the charges for the management of the fund(s) including investment management, and are allowed for in the daily price of the fund(s).

• Transaction Charges: all costs and charges incurred on transactions in respect of the underlying assets of the fund. These reflect the buying and selling of assets within the fund and the dealing and other costs involved in doing this.

The table in your statement shows you the overall costs, and how these will impact on the value of your investment. This also shows you the impact of costs on a percentage basis of the amounts invested.

It is important to note that past performance for the funds is reported on a net basis, so after all costs and charges have been applied. 

Due to its current size, the Managed Income Fund is not sustainable and fixed costs of running the fund would have a disproportionately detrimental impact on the overall costs of the fund.  Although investors have been insulated, to an extent, from the impact of these fixed costs as the Ongoing Charge is capped at 1.30% per annum and we have met the costs above the cap that would otherwise have applied.  We cannot continue to subsidise the costs and, having considered the options, we have decided that the best proposal is a merger with Managed Defensive Fund.

We are therefore seeking shareholder approval to merge the fund.  The proposed merger would maximise economies of scale and benefit investors by accessing the lower charges for the Managed Defensive Fund.

If the mergers are approved, you will automatically become a shareholder in the Managed Defensive Fund on the effective date of the merger, and the Managed Income Fund in which you were previously invested will close. You will receive shares equal in value to your current shareholding as at 13^th August 2021.

If you don’t want to participate in the merger, you may redeem your shares in the Managed Income Fund before this time by placing a redemption request on any normal dealing day until 3pm on 6^th August 2021.

If the merger is rejected, you will remain in the Managed Income Fund for the time being and the same charges will apply. If this happens, we’ll review options and communicate any proposals.  It is likely that we would decide to terminate the Managed Income Fund as it would no longer be considered commercially viable. 

There will be a meeting at 11am on 17 ^th June 2021.

Given the potential risks posed by meetings and other public events in light of the COVID-19 pandemic, we strongly discourage you from attending the EGM in person to protect your health and that of others.

The Chairman will lead the meeting and will ask for a poll to be taken amongst anyone present in person (including proxy votes received by post). This will be counted and the results will be announced as soon as possible. However, we anticipate due to the overall number of shareholders that the result may not be disclosed until the following day.