Charity risk warnings

The material on this site is for information purposes only and the services, securities, investments and funds described may not be available to or suitable for you. Not all strategies are appropriate at all times. The opinions expressed on this site do not constitute investment advice and you should consult your investment advisor before you make any investment decision. You should consider the following risks:

Investment risk: The value and income of any of the securities or investments and the price of shares and the income derived from them, which are mentioned on this site, may fall as well as rise. Investors may not receive the original amount invested in return. Investors should also be aware that past performance is not a guide to future performance.

Taxation: Statements concerning taxation are based on our understanding of the taxation law in force at the time of publication. The levels and bases of taxation may change. You should obtain professional advice on taxation where appropriate before proceeding with any investment.

Exchange rates: Funds which invest in overseas securities are exposed to movements in exchange rates. These may cause the sterling value of units to go up or down.

Debt securities: Investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth.

Emerging markets: You should be aware of the additional risks associated with investment in emerging and developing markets. These include: higher volatility of markets; systems and standards affecting trading, settlement, registration and custody of securities all possibly lower than in developed markets; lack of liquidity in markets and exchanges leading to lower marketability of securities and greater price fluctuation; significant currency volatility, possibly resulting in adoption of exchange controls; lower shareholder protection or information to investors provided from the legal infrastructure and accounting, auditing and reporting standards

Unregulated collective investment schemes: Unregulated collective investment schemes operated in offshore centres are unlikely to offer a level of investor protection equivalent to that available in the UK. Such schemes may deal infrequently and may limit redemption.

Gearing: Some of the investments we may make on your behalf could be in investment companies which use gearing as a strategy or invest in other investment companies which use gearing, such as investment trusts. The strategy which the issuer of such securities uses or proposes to use may result in movements in the price of the securities being more volatile than the movements in the price of underlying investments. Such investments may be subject to sudden and large falls in value and you may get back nothing at all if there is a sufficiently large fall.

The Income Trust for Charities
The Equity Income Trust for Charities
The Growth Trust for Charities

There are risks associated with investment in the Trusts. The Trusts are unregulated collective schemes, available only to qualifying charity investors in England, Wales, Scotland and Northern Ireland.

The value of your investment may fall as well as rise and you may not get back the amount you invested. Participation should generally be viewed as a long-term investment.
Past performance is not a guide to future performance.
Changes in rates of exchange may have an adverse effect on the value, price or income of investments.
Income from investments may fluctuate. Income payments may constitute a return of capital in whole or part. Income may be achieved by foregoing future capital growth. Trust charges may be applied in whole or part to capital, which may result in capital erosion.
Where fixed income securities are held, there is credit risk, arising from the possibility of default by the issuer on payment of income or on repayment of capital or both. This risk is accentuated in the case of lower-rated, higher yielding securities.
The levels and bases of, and reliefs from, taxation may change.

Prospective investors are strongly encouraged to read the Trusts’ Scheme Particulars, in particular, the section entitled ‘Risk Factors’, which describes more fully the risks associated with investing in the Trusts.

The Multi-Strategy Property Trust for Charities

There are risks associated with investment in the Trust. The Trust is an unregulated collective scheme, available only to qualifying charity investors in England, Wales, Scotland and Northern Ireland.

nvestment in this Trust may not be suitable for all charities. There can be no assurance that the Trust will achieve its investment objective.
The value of your investment may fall as well as rise and you may not receive back the amount you invested. Participation should generally be viewed as a long-term investment.
The investments of the Trust are subject to normal market fluctuation associated with property investments and other risks inherent in investing in property and property-related investments.
The success of the Trust is significantly dependent upon the expertise of the Real Estate Investment Adviser and upon market conditions. No guarantee can be given that the Trust’s objectives will be achieved.
Changes in rates of inflation may affect the rental and capital value of any investment held by the Trust, as might fluctuations in currency exchange rates. Changes in planning laws or fluctuations in occupancy costs may affect returns. Changes in stamp duty land tax and the tax treatment of property in general may affect the returns made by the Trust.
There are risks relating to underlying collective investment schemes and closed-ended funds and to Property Index Certificates, also from inflation, political factors and liquidity of the Trust’s assets. Tightening of liquidity for the Trust might adversely affect ease of redemption.

Prospective investors are strongly encouraged to read the Trust’s Scheme Particulars, in particular, Section 13 on Risk Warnings, which describes more fully the risks associated with investing in the Trust.

The Absolute Return Trust for Charities

Investment in this Trust may not be suitable for all charities. It is intended for charities who can accept the risks associated with such an investment which may include a substantial loss of their investment. There can be no assurance that the Trust will achieve its investment objective.
The value of your investment may fall as well as rise and you may not get back the amount you invested. Participation should generally be viewed as a long-term investment.
The Trust invests in a portfolio of hedge funds. Under certain circumstances the Trust may experience difficulty in dealing in investments in those underlying funds. Various factors may result in a tightening of liquidity.
Past performance is not a guide to future performance.
Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Currency hedging may not be complete nor fully effective.
Income from investments may fluctuate. The payment of distributions may result in an erosion of capital.
The levels and bases of, and reliefs from, taxation may change.

Prospective investors are strongly encouraged to read the Trust’s Scheme Particulars, in particular, the section entitled ‘Risk Warnings’, which describes more fully the risks associated with investing in the Trust.