Acorn Life Target Return

The Target Return Fund invests in a broad mix of global asset classes, including shares, fixed-income securities and cash. It can also use derivatives to help meet its investment objectives. The fund is designed to be broadly diversified across markets and sectors, with the mix adjusted by the manager’s outlook on individual assets and the global economy.

The Target Return Fund aims to deliver an annualised return of the Euro Short-Term Rate (ESTR) plus 4% over a rolling three-year period, before all fund-related charges and expenses. There is no guarantee that this target will be achieved. ESTR may also be negative for periods of time, which means the fund’s target is still based on a rate that can fall below zero.

The Target Return Fund is potentially suitable for investors seeking low to medium levels of growth in all market conditions and who can tolerate less volatility than a high-equity fund. It may appeal to investors looking for a medium-risk approach with a global, diversified allocation. The fund recommends a medium to long-term holding period of at least 7 years.

The Target Return Fund is classified as medium risk. Its key risks are market risk and currency risk. Market risk means the fund’s value can rise or fall when markets move, while currency risk means exchange-rate changes can affect returns when it holds overseas investments.

The Target Return Fund is managed by HSBC Global Asset Management (UK) Limited. The manager uses a broadly diversified approach across equities, bonds and cash, with allocations influenced by views on individual assets and the global economy. This means the fund’s holdings may change as the manager’s outlook changes.