Cap Equity Fund Institutional Accumulation

OBJECTIVES AND INVESTMENT POLICY Investment Objective To generate growth over the long term (5 years or more) by investing in US equities (company shares). Performance Target: To achieve the return of the S&P 500 Index plus 3% per annum over rolling three years periods (before charges). The Performance Target is the level of performance that the management team hopes to achieve for the fund. There is however no certainty or promise that they will achieve the Performance Target. Performance comparator: Investment Association North America Equity Sector Average. The ACD believes this is an appropriate target/comparator for the fund based on the investment policy of the fund and the constituents of the index/sector. Investment Policy Portfolio Securities The fund will invest at least 70% in equities and equity related securities of companies listed, incorporated or domiciled in the US or companies that derive a significant proportion of their revenues or profits from US operations or have a significant proportion of their assets there. The fund may also invest in companies listed, incorporated, or domiciled in Canada or Latin America. The fund may also invest in other funds (including those managed by abrdn) and money-market instruments, and cash. Management Process The management team use their discretion (active management) to maintain a concentrated asset mix at sector and stock level. Their primary focus is on stock selection using research techniques to select individual holdings. The research process is focused on identifying companies where the management team have a different view of a company''s prospects than that of the market, and which align with their views regarding future economic and business conditions. In seeking to achieve the Performance Target, the S&P 500 Index is used as a reference point for portfolio construction and as a basis for setting risk constraints. The expected variation (''tracking error'') between the returns of the fund and the index is not ordinarily expected to exceed 10%. Due to the active nature of the management process, the Fund's performance profile may deviate significantly from that of the S&P 500 Index. Derivatives and Techniques The fund may use derivatives to reduce risk, reduce cost and/or generate additional income or growth consistent with the risk profile of the fund (often referred to as 'Efficient Portfolio Management'). 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 company shares. 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