The Scheme provides for investment funds to be established by the Trustee at the direction of Evergreen Capital Partners. The Scheme has a growth orientated Investment Fund, the Absolute Growth Fund (denominated in Pound Sterling) and an income orientated fund, the Income Plus Fund (denominated in Pound Sterling), (the ‘Funds’) in respect of which New Zealand based Clearwater Capital LP is the delegated Investment Manager and makes the various asset allocation and portfolio decisions on a day to day basis.
The Funds are closed to new investment.
The Scheme also holds cash at call for liquidity purposes, denominated in either NZ Dollars or Pound Sterling.
All Funds seek to achieve consistent returns each year appropriate for a growth and income fund, rather than seeking to track or outperform an index ‘benchmark’ such as the FTSE 100 or S&P 500.
The assets of the Absolute Growth Funds are invested into other investment funds (underlying funds) that invest into higher risk growth assets and the assets of the Income Plus Funds are invested underlying funds that invest into lower risk income assets. Over time, growth assets tend to outperform income assets. However, growth assets will have a higher degree of risk and volatility compared to income assets that exhibit lower risk and volatility but that also tend to have lower returns. Over time, growth assets are likely to generate higher returns but income assets are likely to generate more consistent returns. The Absolute Growth and Income Plus Funds are designed as long-term investments with a five-year time horizon as a guide.
The investment objective of the Scheme is to generate positive performance each calendar year with a lower level of volatility than annual return. The investment objective is set with the explicit recognition that there will be variance in results and periods where an investment fund will fail to meet or exceed the investment objective. The Investment Manager views investment performance over the longer term in keeping with the long term nature of the investment.