Chelsea Selection

These funds invest at least 80% of their assets in UK equities which have a primary objective of achieving capital growth.

These funds invest at least 80% in UK equities. They also aim to achieve a historic yield on the distributable income in excess of 110% of the FTSE All Share yield at the fund’s year end.

These funds invest at least 80% of their assets in UK equities of companies which form the bottom 10% by market capitalisation.

Corporate bonds are those issued by companies and tend to come in two categories: investment grade and high yield. Investment grade bonds are deemed to be from better quality and less risky companies than high yield bonds.

High yield bonds can be issued by either governments (from emerging markets) or companies and are deemed higher risk. For example, there may be more risk of the government or company not being able to pay back their loans. To compensate for this higher risk, the yield on these bonds tends to be higher.

Strategic bond funds are a flexible type of bond fund. They can invest in any type of bond – government, investment grade, high yield and emerging market, as well as other fixed interest investments. The manager will be able to increase or decrease exposure to certain types of bond, depending on the economic and investment environment, and their view as to which is currently a more attractive investment. These funds also tend to have more investment tools at their disposal, which can, for example, help protect the fund from rising interest rates.

These funds aim to deliver positive returns in all market conditions, with low volatility, although returns are not guaranteed. Managers can invest anywhere and in any assets, so funds in this sector are all very different and should be looked at individually.

These funds invest at least 80% of their assets in European equities and exclude UK securities.

These funds which invest at least 80% of their assets in North American equities.

These funds invest at least 80% of their assets in Japanese equities.

These funds invest at least 80% of their assets in Asia Pacific equities and exclude Japanese securities.

The Global Emerging Markets sector is full of diversified portfolios targeting the dynamic growth potential of developing economies. Investors seek these emerging market funds for exposure to future performance opportunities in regions marked by rapid economic expansion and innovation. Some of these funds also invest in frontier markets – those markets where the current risk is higher, liquidity less, and size is smaller than even emerging markets.

These funds can invest in companies anywhere in the world. This is a wide remit and can vary from fund to fund. Some funds will stick to companies in developed markets only, like the UK, Europe, US and Japan, while others will also invest in emerging markets. Funds will also vary in the size of company in which they invest.

Earning an income is the key priority of these funds, which may invest in dividend-paying companies anywhere in the world. This is a wide remit and can vary from fund to fund. Some funds will stick to companies in developed markets only, like the UK, Europe, US and Japan, while others will also invest in emerging markets. Funds will also vary in the size of company in which they invest.

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