Changes to the Prospectus of the City Financial Absolute Equity fund
20 October 2016
We've been advised by City Financial that on 30 November 2016, the Prospectus for the City Financial Absolute Equity fund will be amended as follows:
"In order to be able to spread counterparty risk for the free cash element of the Fund which tends to be significant because of the use of derivatives, the Fund’s investment parameters will be amended so that it can hold up to 49% in Government and other public securities. These securities will generally be less than 1 year maturity. The previous limit was 35%.
The investments may be in Government and other public securities issued or guaranteed by the Government of the United Kingdom, the Scottish Administration, the Executive Committee of the Northern Ireland Assembly, the National Assembly of Wales, the Governments of Canada, France, Germany, Italy, Japan or the United States of America. "
City Financial believes that the change will benefit investors as it will enable the Fund Manager to be able to spread counterparty risk for the free cash element of the Fund.
The Financial Conduct Authority has confirmed that the implementation of these changes will not affect the on-going authorisation of this scheme and so the Fund’s prospectus will be amended to include these changes.