abrdn UK Smaller Companies Fund Institutional Income

OBJECTIVES AND INVESTMENT POLICY Investment Objective To generate growth over the long term (5 years or more) by investing in UK small-capitalisation equities (company shares). Performance Target: To achieve the return of the Numis Smaller Companies Plus AIM ex Investment Companies Index plus 3% per annum (before charges). There is no certainty or promise that they will achieve the Performance Target. Performance Comparator: Investment Association UK Smaller Companies Equity Sector Average. The Numis Smaller Companies Plus AIM ex Investment Companies Index (the "Index") is a representative index of the UK stock market of smaller companies. Investment Policy Portfolio Securities - The fund will invest at least 60% in equities of UK smaller companies. - UK smaller companies are defined as any company of a similar size to those in the Index. - The fund may also invest up to 40% in larger UK companies. - The fund may also invest in other funds (including those managed by abrdn), cash and assets that can be turned into cash quickly. Management Process - The management team use their discretion (active management) to maintain a diverse asset mix at sector and company level. - Their primary focus is on company selection using the management team's quality, growth and momentum approach. It aims to identify companies that exhibit a range of high quality characteristics, have the ability to deliver sustainable long term growth and are displaying positive growth in their earnings. - Due to the active nature of the Investment process, the fund's performance profile may deviate significantly from that of the Index. Please note: The fund's ability to buy and sell smaller companies and the associated costs can be affected during periods of market stress. In certain circumstances investors in the fund may not be able to sell their investment when they want to. Derivatives and Techniques - Derivatives are linked to the value of other assets. In other words, they derive their price from one or more underlying asset. -Derivative usage in the fund is expected to be very limited. Where derivatives are used, this would mainly be in response to significant inflows into the fund so that in these instances, cash can be invested while maintaining the fund's existing allocations to equities. Investors in the fund may buy and sell shares on any dealing day (as defined in the Prospectus). If you invest in income shares, income from investments in the fund will be paid out to you. If you invest in accumulation shares, income will be added to the value of your shares. Recommendation: the fund may not be appropriate for investors who plan to withdraw their money within five years. Investors should satisfy themselves that their attitude to risk aligns with the risk profile of this fund before investing.