THE SCOTTISH WIDOWS POOLED PROPERTY ACS FUND 1

Content accurate as of June 2022 and may since have changed.

The Scottish Widows Pooled Property ACS Fund 1 aims to provide a return based on the combination of capital growth and income, by investing in UK commercial scale properties.

The Fund is actively managed by the Fund Manager who chooses investments with the aim of outperforming the MSCI UK Quarterly Property Index (the “Index”) by 0.5% per annum on a rolling 3 year basis, before deduction of fees.

At least 70% of the Fund will invest directly in commercial scale properties in the UK market, aiming to achieve capital growth via property development and market appreciation, in addition to earning income via leasing of its property assets, either directly or indirectly through property shares or other collective investment schemes (including those managed by Scottish Widows Unit Trust Managers and its associates).

The Fund will invest in a diversified range of commercial scale property including: office buildings, shopping centres, retail units, industrial units, warehouses, land and other property types of suitable commercial scale. The Fund may also invest overseas.

Due to the nature of property assets the Fund may hold a portion of its assets in cash, and cash-like investments, and/or exchange traded property-related shares to assist in meeting the liquidity requirements of the Fund.

The Fund Manager is limited in the extent to which the Fund’s allocation across property assets (direct & indirect property, property shares) as well as across property sectors (retail, office, industrial, other) can differ relative to the market for UK properties (as represented by the Index).

The MSCI UK Quarterly Property Index has been selected as an appropriate benchmark as it measures total returns of directly held standing property investments from one valuation to the next.

Any income received by the Fund is retained in the Fund and has the effect of increasing the share price. Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/ or generate extra income or growth (often referred to as efficient portfolio management).

Specific investment risks for the Fund include:

  • The performance of the Fund may be adversely affected by the impact of general economic and political factors, as well as conditions in the property market, property locations and other risks inherent in investing in real estate.
  • The fund invests in assets that may at times be hard to sell. This means that there may be occasions when you experience a delay or receive less than you might otherwise expect when selling your investment.
  • Values could fall if properties have to be sold quickly.
  • Property valuations are provided by an independent valuer and are a matter of opinion rather than fact.
  • The use of derivatives for Efficient Portfolio Management might not achieve the described outcomes and may result in greater fluctuations of the value of the Fund, however it is not intended that this will cause the risk profile of the Fund to change.