Climate Transition Real Assets (LTAF)

For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.

Investment risk: The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested. Past performance is not a guide to future returns.

Immovables risk: The Fund will seek exposure to immovables, for example real estate, infrastructure and rural property asset, which have the following inherent risks:

Illiquidity risk: Immovables are inherently illiquid and the Fund should not be considered suitable for investors with a short-term investment outlook. Assets may not be readily saleable and the Fund operates limited redemption arrangements - please see ‘Dealing Arrangement Risk’ and ‘Suspension Risk’ below.

Valuation risk: Immovable valuations are subject to uncertainty and are a matter of opinion – they may contain subjective elements and are unlikely to be based on a public market price. There is no assurance that estimates resulting from the valuation process will reflect the actual sales price even where a sale occurs shortly after the valuation date.

Availability risk: Identifying and structuring immovable transactions is competitive and involves a high degree of uncertainty and consequently amounts subscribed by investors may not be fully drawn down or invested.

Real Estate risk: The Fund’s performance will be adversely affected by a downturn in property market capital values or weakening rental yields. Property values are affected by interest rates, economic growth, fluctuations in property yields and tenant default, and on the realisation of the investment, the Fund may receive less than the original amount invested. If tenants default, the Fund will suffer a rental shortfall and likely incur additional cost maintaining, insuring and reletting the property. Certain significant expenditures must be met when the property is vacant.

Development and construction risks: The Fund may be exposed to investments involving purchase of land for development and require permissions/licenses and permits to be obtained first - the Fund may receive little or no income during this time. There may also be delays in the administration of these requests and there is also the risk the relevant authority refuses to grant them.

Rural Property Assets: The Fund may be exposed to rural property assets, for example, including agricultural land and forestry, such investments are subject to physical, economic and political risks. Physical risks include natural disasters (fire, windthrow, storms), pests and diseases; economic risk include crop and timer market price and supply and demand risk; political and regulatory risk includes changes in public subsidy, grants and fiscal regimes.

Investment in other funds (including unregulated funds) risk: The Fund will assume any specific risks of the funds into which they invest. Extra costs may be incurred - in addition to fees and expenses levied by the Fund, charges may be levied by the underlying funds. Investments in unregulated funds are subject to less restrictive rules, they can use higher risk investment techniques and may borrow to invest. They are also valued less frequently and there is a risk that any market movements will not be reflected in the daily price of the Funds and that investors may miss out on unrealised profits from underlying investments. Liquidity of unregulated funds is not assured and cannot be relied upon to meet redemption requests as and when made. Lack of liquidity may affect the value and lead to units being suspended.

ESG risk:  Investing on basis of ESG factors may limit the choice of investments and performance of the Funds may be impacted (either positively or negatively).

Dealing arrangement risk: Investors will be required to sign up to an agreement, committing to subscribe an amount to the Fund, but such amounts will only be drawn down from investors at the discretion of the Fund and units will only be issued to investors, based on the prevailing net asset value, at that point. The Fund operates limited redemption and deferral provisions, the proceeds of redemption will be calculated and settled subject to a notice period.  Consequently, there may be a significant time lag between instructions being accepted and processed, and investors will bear the risk of any unit price movements in these periods.

Suspension risk: Limited redemption and deferral provisions may not fully reflect the time needed to sell assets in which the Fund invests. In exceptional circumstances and with the prior agreement of the Depositary the Fund can suspend all dealing until the exceptional circumstances have ceased.

Infrastructure Risk: Infrastructure investments may include transportation services, the production and delivery of energy, and technology. The Fund will be exposed to infrastructure related risks such as: changes in planning laws, credit risks of tenants and borrowers and environmental factors. Infrastructure may be more susceptible to adverse economic, political or regulatory changes, and business operations may be adversely affected by additional costs, competition, and regulatory implications.

Net zero and carbon removal certificates: To formally offset carbon emissions carbon removal certificates have to be formally retired and once this happens, they cease to have value. This means when the certificates are retired this will impact financial performance.

Investments outside of commitment queues: Potential unitholders may be impacted by elongated timescales for drawing down commitments into the Fund and the Fund may experience cash drag, impacting on returns.