We do not offer advise as to whether or not the EFA Close MAC Strategic Alpha Fund is suitable for your circumstances. If you are unsure as to the fund's suitability for your needs you should seek professional financial advice.

Investment Philosophy

The EFA Close MAC Strategic Alpha Fund is based on allocation to a diversified set of exposures across asset classes, including equity, fixed income and credit. The Fund may invest in a broad range of real asset investment opportunities, including liquid commodity investments. The portfolio will be allocated to a range of external high quality managers, to passive (non actively managed) investments (when cost effective market exposure is preferred). The Fund may also make investments directly into equity and fixed income investments.

In addition, the Fund may also invest a proportion in specialist vehicles to provide an additional source of ‘alpha’ (the superior return of the Fund relative to its benchmark index), and this may include alternative asset classes.
The Fund's benchmark is the IMA Active Managed Sector.

Investors should appreciate that there are inherent risks in all types of investments. Stock market prices can move erratically and be unpredictably affected by many diverse factors, including political and economic events but also rumours and sentiment. Past performance is not necessarily a guide to future growth or rates of return. On encashment, particularly in the short-term, investors may receive less than the original amount invested.

Why invest in the EFA Close MAC Strategic Alpha Fund?

Potential to enhance performance through active asset allocation and fund manager selection

With over 5,000 eligible funds to choose from, a fund of funds vehicle allows our team of fund research specialists to 'cherry-pick' what they believe to be the best talent and blend different manager styles together with the aim of enhancing returns and managing risk. In addition, on-going active management allows us to take a view on regional allocations and re-position managers. The capital value and the income from shares issued by the Fund can fluctuate and the price of shares and the income from them can go down as well as up and are not guaranteed.

Diversification of Risk

By investing in a broad spectrum of funds, the portfolio is not reliant on one underlying fund manager, sector or geographic region. This reduces volatility and provides a wide spread of underlying share holdings through the funds selected. Strategic Alpha is designed for growth investors and invests in funds across global equity markets, with a core in UK funds. The portfolio is further diversified with exposure to alternative investment funds which can include commodities, hedge funds, private equity and property. The portfolio may also invest in cash and fixed interest securities during periods of severe equity market turbulence. Investment in the Fund should be regarded as long-term, which is upwards of three to five years. There can be no guarantee that the objectives of the Fund will be achieved.

Consolidation

Many investors find themselves with an inefficient combination of individual funds in their portfolio, which can be a drag on overall performance and may also put their capital at increased risk. Strategic Alpha can provide a portfolio of funds in one vehicle, offering simplicity, and allowing investors to use the Fund as their primary investment.

Tax efficiency

Gains realised within the Fund (for example, selling one fund in profit and buying a replacement) are exempt from capital gains tax, thus greatly freeing up the individual allowance and making tax planning more effective. This is particularly useful for trusts with their limited capital gains tax allowance. Exemptions, thresholds and rates of tax may change in the future.