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Risk Warning

Important information

The following information is very important. You should read this information if you are unclear at any time as to the purposes of this site and who is responsible for its maintenance.

The site contains information only relevant to UK investors and financial advisers. This is designed to inform and protect you. There are certain legal and regulatory limitations that apply to the information contained on this web site and by proceeding you are deemed to have read and understood this warning.

The information in this section is intended for persons who are United Kingdom residents for tax and investment purposes or those who advise such persons. In particular the information is not for distribution and under no circumstances is to be considered as an offer or solicitation to deal in investments in any jurisdiction in which such offer, solicitation or distribution would be unlawful, including, but not limited to, the United States of America.

Investment in any of the products described should only be made on the basis of the applicable offer document (e.g. Scheme Particulars, Prospectus or other Terms and Conditions). Nothing in the Aberdeen web site constitutes investment legal tax or other advice nor is it to be relied upon in making an investment decision.

The information is not to be reproduced, copied or made available to others. Any research or analysis used in the preparation of this web site has been procured by Aberdeen Asset Management PLC and its subsidiary companies ('The Company') for its own use and it may have been acted on by the Company for its own purposes.

It is believed that the information is accurate at the date of publication and no warranty is given. It may be changed without prior notice.

Any tax reliefs mentioned are those currently available and are subject to change. Their value depends on the personal circumstances of the investor. Information relating to investment trust savings schemes, investment trust ISAs is approved by Aberdeen Asset Managers Limited, authorised and regulated by the Financial Services Authority (FSA).

Risk factors you should consider prior to investing:

  • The value of shares and the income from them can go down as well as up and you may get back less than the amount invested.
  • Past performance is not a guide to the future.
  • Exposure to a single country market increases potential volatility.
  • Where a trust invests in emerging markets, which tend to be more volatile than mature markets, the value of your investment could move sharply up or down. In some circumstances the underlying investments may become illiquid which may constrain the Investment Manager’s ability to realise some or all of the portfolio. The registration and settlement arrangements in emerging markets may be less developed than in more mature markets so the operational risks of investing are higher. Political risks and adverse economic circumstances are more likely to arise putting the value of your investment at risk.
  • Movements in exchange rates can impact on both the level of income received and the capital value of your investment. If the currency of your country of residence strengthens against the currency in which the underlying investments of a trust are made, the value of your investment will reduce and vice versa.
  • In common with most investment companies, investment trusts may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that a relatively small movement, down or up, in the value of a trust’s assets will result in a magnified movement, in the same direction, of that NAV.
  • Where a trust invests in small companies, and / or companies investing in technology or venture and development capital stocks, the potential volatility may increase the risk to the value of your investment. Above average price movements may be expected.
  • Where a trust invests in a specialist market sector it is likely to carry higher risks than a more widely invested fund.
  • Some trusts have an objective of paying a high level of dividend. In order to maintain the high level of dividend paid, some of the assets selected for the underlying portfolio may be liable to diminish in capital value over time.
  • Where a trust invests in bonds, the value of a bond will fall in the event of the default or reduced credit rating of the issuer. Generally, the higher the rate of interest the higher the perceived credit risk of the issuer.
  • Split capital investment trusts have more than one class of share. Typically, the capital structure will comprise of ordinary shares offering a high level of income, and Zero Dividend Preference (ZDP) shares offering a pre-determined capital payment at a later date, provided there is sufficient capital available. The ZDP shares act as gearing. Some trusts will also have gearing in the form of a bank loan. ZDP shareholders should note that if a trust does not have sufficient assets, after the repayment of its bank loan, to cover the full cost of the ZDP repayments, they will not receive the full amount of the pre-determined return. Ordinary shareholders should note that after the repayment of the bank loan and the redemption of the ZDP shares, the value of assets attributed to ordinary shareholders may be less than their original investment. Depending on the performance of the trust, there is, in any case, a risk that ZDP shareholders will receive less than their original investment and that the level of assets attributed to ordinary shareholders could be less than their original investment and in certain cases, could be zero.
  • There is no guarantee that the market price of shares in an investment trust will fully reflect their underlying Net Asset Value.
  • As with all stock exchange investments the value of investment trust shares purchases will immediately fall by the difference between the buying and selling prices, the bid-offer spread.

Other Important Information:

Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Services Authority (FSA). Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419.

Other than where indicated, the trusts are managed by members of the Aberdeen Asset Management PLC group of companies, namely Aberdeen Asset Managers Limited, Edinburgh Fund Managers Limited, Glasgow Investment Managers Limited and Murray Johnstone Limited which are themselves authorised and regulated by the FSA under FSA registration numbers 121891, 119220, 122646 and 138341 respectively.

An investment trust should be considered only as part of a balanced portfolio of investments. Under no circumstances should this information be considered as an offer or solicitation to deal in investments.