First Sentier offers two fund ranges ("the Funds") for sale: the First Sentier Investors ICVC and the First Sentier Investors Global Umbrella Fund plc.
First Sentier Investors ICVC
First Sentier Investors ICVC (the ‘OEIC’) is an investment company with variable capital incorporated in England and Wales with registered number IC000023. The OEIC is structured as an umbrella company. Funds may be established from time to time with the approval of the Financial Conduct Authority ('FCA') and the agreement of the Depositary ('funds', and each of them a 'fund'). Each fund may issue different classes of share and within each class there may be different types of share.
The Authorised Corporate Director ('ACD') of the OEIC is First Sentier Investors (UK) Funds Limited. The ACD is responsible for managing and administering the affairs of the OEIC in compliance with the handbook and guidance published by the FCA from time to time ('FCA Rules').
The Depositary of the OEIC is The Bank of New York Mellon (International) Limited. The Depositary is responsible for the safekeeping of all the scheme property of the OEIC and has a duty to take reasonable care to ensure that the OEIC is managed in accordance with the provisions of the FCA Rules relating to the pricing of, and dealing in, shares and relating to the income of the funds.
The ACD has appointed First Sentier Investors (UK) IM Limited ('Investment Manager') under an investment management agreement ('IMA') to provide investment management and advisory services to the ACD. The Investment Manager has full power and authority under the IMA to delegate any and all of its discretions and powers to any other person, provided that the Investment Manager shall remain fully responsible to the ACD for the acts and omissions of any such person.
First Sentier Investors Global Umbrella Fund plc
First Sentier Investors Global Umbrella Fund plc (FSGU) is an open-ended investment company with variable capital established under the laws of Ireland pursuant to the Companies Acts, 1963 to 2003 and incorporated on 18 June 1998, under registration number 288284. FSGU is regulated by the Irish Financial Services Regulatory Authority (‘IFSRA’) pursuant to the European Communities (Undertakings in Collective Investments in Transferable Securities) Regulations 2003 and was authorised on 23 June 1998. FSGU is registered for sale in the United Kingdom under the temporary permissions regime introduced by the Financial Conduct Authority. Each fund may issue different classes of share and within each class there may be different types of share.
FSGU has delegated the powers of determining investment policy and investment management of each fund to First Sentier Investors (Hong Kong) Limited the 'FSGU Investment Manager' pursuant to an Investment Management Agreement. The FSGU Investment Manager may appoint one or more Sub-Investment Managers to manage the assets of a fund pursuant to a Sub-Investment Management Agreement. The FSGU Investment Manager remains responsible for the acts and omissions of the Sub-Investment Managers and any other delegate as if such acts or omissions were its own.
HSBC France, Dublin Branch (the “Depositary”) was appointed as Depositary of FSGU pursuant to a Depositary Agreement. The main activity of the Depositary is to act as trustee and custodian of the assets of collective investment schemes.
FSGU may be also registered in various European jurisdictions and may therefore be subject to local requirements.
The shares in the Funds have not been and will not be registered under the United States Securities Act 1933. The information in this website is not intended for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America to or for the benefit of any United States persons being residents in the United States of America.
Following a UK departure from the European Union, First Sentier Investors ICVC (the “OEIC”) has ceased to qualify as a UCITS scheme and is instead an Alternative Investment Fund (“AIF”) for European Union purposes under the terms of the Alternative Investment Fund Managers Directive (2011/61/EU). Accordingly, no marketing activities relating to the OEIC are being carried-out by First Sentier Investors in the European Union (or the additional EEA states) and the OEIC is not available for distribution in those jurisdictions. This website does not constitute an offer or invitation or investment recommendation to distribute or purchase shares in the OEIC in the European Union (or the additional EEA states).
First Sentier Investors recommends that investors should seek independent financial advice before investing in the funds. Potential investors should consider the following risk factors before investing.
Investments in the Funds are subject to normal market fluctuations and other risks inherent in investing in securities. There can be no assurance that any appreciation in value of investments will occur. The value of investments and the income derived from them may fall as well as rise and investors may not recoup the original amount invested in the Funds. The Funds should be considered long-term investments. There is no assurance that the investment objectives of any sub fund of the Funds (a 'Sub Fund') will actually be achieved. It is important to note that past performance is not necessarily a guide to future returns or growth.
Currency exchange rates
Depending on an investor's currency of reference, currency fluctuations may adversely affect the value of an investment. Investments for some sub funds will be made in assets denominated in various currencies and exchange rate movements may affect the value of an investment favourably or unfavourably, separately from the gains or losses otherwise made by such investments.
Investments in single sector funds offer the possibility of higher returns but may involve a higher degree of risk compared to investments which spread investment risk through a variety of sectors. Hence share price movements may have a greater effect on the overall value of these funds.
Not all securities invested in by a sub fund will be listed or rated and consequently liquidity may be low and in certain cases, it may not be possible to sell securities at the last market price quoted or at a value considered fair.
Investment in emerging markets may involve a higher risk than investment in more developed markets due to greater volatility due to increased uncertainty as to how these markets operate. Investors should consider whether or not an investment in sub funds which invest in such markets is either suitable for or should constitute a substantial part of an investor's portfolio.
China market risk
The value of a sub fund's assets may be affected by uncertainties such as political developments, changes in government policies, taxation, currency repatriation restrictions, and restrictions on foreign investment in China. Accounting, auditing and reporting standards in China may not provide the same degree of investor protection or information to investors as would generally apply in more established securities markets. Furthermore, the legislative framework in China for the purchase and sale of investments and in relation to beneficial interests in those investments is relatively new and untested.
Funds investing in smaller companies invest in securities which may be less liquid and more unpredictable than the securities of larger companies, as a result of inadequate trading volume or restrictions on trading. Securities in smaller companies may possess greater potential for capital appreciation, but also involve risks, such as limited product lines, markets and financial or managerial resources and trading in such securities may be subject to more abrupt price movements than trading in the securities of larger companies.
Sub funds which invest in a concentrated portfolio of securities may be more volatile than funds invested in a larger variety of investments and the impact of movement in the value of the investments may affect the fund value to a greater degree.
Interest rate risk
Sub funds which invest primarily in fixed income securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as a coupon) are exposed to changes in interest rates which will affect the value of any securities held. If rates go up, the value of fixed income securities fall; if rates go down, the value of fixed income securities rise.
High yield risk
Sub funds which invest in companies who issue higher yielding bonds typically have an increased risk of defaulting on repayments. In the event of default, the value of your investment may reduce. Economic conditions and interest rate levels may also impact the values of high yield bonds.
Inflation may affect the future buying power of an investment in the Funds. Therefore if the returns on an investment made have not beaten the rate of inflation it will have less buying power in the future.
Charges against capital
Fees and expenses are charged against the capital of certain Funds. Deducting expenses from capital reduces the potential for capital growth and on any redemption. Shareholders may not receive back the full amount invested.
Past performance of property funds are not indicative of the performance of the property market as a whole. Certain Funds invest in property securities and are subject to adverse changes in economic conditions, adverse local market conditions and risks associated with the acquisition, financing and ownership and operation and disposal of real property.
Single country risk
Funds which invest primarily in a single country may be subject to greater risk and above average market volatility than an investment in a broader range of securities covering multiple countries.
Companies in the infrastructure sector (utilities, transportation and energy industries) are subject to a variety of factors which may adversely affect their business or operations. Adverse developments within these industries may affect the value of the underlying securities of the Fund. Companies involved in these industries are subject to environmental considerations, taxes, government regulation, price and supply considerations and competition.
Investment in Indian securities involves risks such as legal, regulatory, political and economic. The securities markets in India are relatively underdeveloped and may subject the fund to higher transaction costs or greater uncertainty than investments in more developed countries. Additionally, Indian subcontinent is economically sensitive to environmental events and has experienced acts of terrorism. Such risks may adversely affect the value of your investments.
Hedged share class
Hedging transactions are designed to reduce, as much as possible, the currency risk for investors. However, there is no guarantee that the hedging will be totally successful and no hedging strategy can eliminate currency risk entirely.
The value of derivatives can be highly sensitive to changes in market values and may cause a loss greater than the amount invested on individual derivative investments. The total losses cannot be more than the net asset value of the Fund.
Funds can take on exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. Most of the Fund’s investments are in listed securities where settlement is on a delivery-versus-payment basis; however there may still be circumstances where the fund would incur a loss if a counterparty failed to perform its contractual obligations
Certain developing countries are especially large debtors to commercial banks and foreign governments. Investment in debt obligations (sovereign debt) issued or guaranteed by developing governments or their agencies involve a high degree of risk.
Below investment-grade debt
Funds may invest in securities whereby the issuing company has a high risk of defaulting on their interest payments, capital repayment or both. In the event of default, the value of the investment may reduce.
Reference to specific stocks
Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.
The way your investments are treated for tax purposes and in particular, the tax thresholds which apply are dependent upon your personal circumstances and the tax treatment of funds can be changed by future legislation.
Aggregation of orders
In managing the Funds, the relevant investment manager may combine orders for the Funds with those of other clients. This procedure may operate on some occasions to the disadvantage of the Funds and on others to the advantage of the Funds.