The Diversified Dynamic Return Fund (DDR) makes full use of its flexible investment guidelines within the UCITS III framework.

This means that it has the ability to use derivative strategies for investment purposes (not simply for efficient portfolio management), which further enhances the diversification of the Fund. Derivatives, which derive their value from the performance of an underlying asset, can be used to add extra precision to the management of the portfolio and are an extremely efficient and cost-effective means of hedging unwanted risks in a portfolio. Whilst this is not intended to cause larger, more frequent changes in the fund price or increase its risk profile, derivatives are inherently volatile and the fund may be exposed to additional risks and costs as a result.  

The Fund can invest in a broad range of asset classes, regions and strategies – depending on which the fund managers view as most attractive, subject to the limits for each asset class, as illustrated below.

The Fund may invest indirectly in property assets, which are inherently less liquid and more difficult to sell than other assets. The valuation of physical property is a matter of the valuer’s judgement rather than fact.The Fund may also invest in emerging markets which can be less liquid and riskier than more developed markets and difficulties in accounting, dealing, settlement and custody may arise. 

DDR is primarily managed on a multi-manager basis. As a complete and balanced portfolio of different asset classes in a single fund, we believe it is ideal as a core portfolio holding and can be a useful tool for balancing portfolio risk.

The value of investments and any income from them will fluctuate (this may partly be due to exchange rate changes) and investors may not get back the amount invested.   

Further information on the terms used above can be found in our Investment Glossary

Fund Ratings