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Various prospectus changes - Kames Capital funds

Kames Capital will be making prospectus changes for their funds, some of which will be effective 7 August 2019 and some 7 September 2019.

Impacts on
these guided-architecture products

Impacts on
open architecture products including

  • PIMS
  • Choice
  • Select

A summary of the changes

Following new rules and guidance issued by the Financial Conduct Authority (FCA), which regulates the financial services industry in the UK, Kames Capital ("Kames") is proposing the following changes to its funds' literature. These are summarised below. Full details can be found in the Kames shareholder notification opposite. 

 

1) The following changes do not represent a change to the way in which any of the sub-funds are managed, are not considered to be significant or material and will be effective from 7 August 2019

 

  • Disclosure in relation to the use of benchmarks for all Kames funds will be added to Appendix D (Sub-fund Details) of the prospectus
  • Clarification of fund objectives and policies including the provision of additional information regarding Kames' strategies will be made to Appendix D (Sub-fund Details) of the prospectus
  • There will be an amendment to the wording of the investment powers which apply to the sub-funds as set out in Appendix B (Investment & Borrowing Powers) of the prospectus.

 

2) The following amendment is deemed by Kames to be significant for the purposes of the FCA rules and guidance and, as a result, have provided investors with 60 days’ prior notice. This change will therefore be effective as of 7 September 2019

 

  • An amendment to the prospectus and Instrument of Incorporation to permit Kames to carry out compulsory conversions where they believe it is in the best interests of investors to do so.

 

3) Kames has decided to make some further changes to the investment policy of some sub-funds as per the table below. Although the changes will not represent a change to the way in which each sub-fund is managed, or to its risk profile, the amendments are deemed by Kames to be significant for the purposes of the FCA rules and guidance and, as a result, have provided investors with 60 days’ prior notice. The change will therefore be effective as of 7 September 2019

 

Fund nameChange to investment policyProduct
Kames Ethical Cautious Managed FundThey will permit up to 20% of total equity exposure to be in equity securities and equity-related securities of non-UK companies. Kames believe that allowing this additional flexibility is in the best interests of investors as it could provide additional investable opportunities at times when the UK ethically-screened universe seems more limited.Regular Savings Plan, Regular Savings Plan Malaysia, Quantum, Quantum Malaysia, Oracle, Paragon, LifePlan, Protected Lifestyle
Kames Ethical Equity FundThey will permit investment of up to 20% of its Net Asset Value in equity securities and equity-related securities of non-UK companies. Kames believe that allowing this additional flexibility is in the best interests of investors as it could provide additional investable opportunities at times when the UK ethically-screened universe seems more limited.Regular Savings Plan, Regular Savings Plan Malaysia, Quantum, Quantum Malaysia, Oracle, Paragon, LifePlan, Protected Lifestyle
Kames Diversified Monthly Income FundRemoval of the fund’s 80% maximum limitation on investment on investment in equities and replacement with an anticipated equity investment range. Removing this limit better reflects the way in which the fund is currently managed as typically Kames would not invest close to this limit and they believe removing it is clearer for investors.PIMS, Choice, Select

 

Please also refer to the following website link to see the full draft updated prospectus for the Fund, together with a note detailing the “Current vs. Proposed” changes to Appendix D (Sub-fund Details) of the prospectus: www.kamescapital.com/AMMS.aspx

 

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For more information about Kames Capital visit www.kamescapital.com