The investment objective of the fund is to achieve real growth in capital and income over the long term, defined as a minimum investment horizon of five years.

At least 80% of the fund will be invested in UK equities, with an emphasis on small and medium capitalised companies.

Rather than buying and selling for short-term profit, fund manager Rosemary Banyard and her team make investments at valuations they believe will provide shareholder value over the intended long-term period of investment.

We adopt a focused approach to investing in the shares of businesses with clear and sustainable competitive advantages that are difficult to replicate, which can create high barriers for new entrants and generate superior returns on operating assets. In addition, these companies are likely to possess sound finances and experienced management teams focused on the creation of long-term value for shareholders.

Our typical investment process is laid out below:

• We look for business models that are easy to understand and to explain

• Our fund manager Rosemary Banyard and team seek evidence that high returns on equity can be achieved without undue financial leverage

• Important factors are identifiable, sustainable barriers to entry for potential competitors and high margins, especially gross margins

• We prefer organic growth or, if growth is achieved by acquisition, we look for evidence of capital discipline

• We like management teams that deliver shareholder value

• We like profits that convert quickly into cash

• We look for a free cash flow-based valuation that offers a good return and a margin of safety for error

Our investment funds are not suitable for everyone, so we recommend seeking financial advice. This UK equity fund may not be appropriate if you plan to withdraw your money within five years. As with any fund, there are risks you should be aware of and comfortable with before you invest.

• The value of your portfolio can go down as well as up so your capital is at risk and there is no guarantee you will get your investment amount back

• This fund has a small and mid-cap bias. Investments in smaller companies are generally higher risk compared to investments in blue chip companies

• The past performance of our UK equity fund is not a reliable indicator of future results

Please note that this is only a brief overview of the risks involved with investing in the VT Downing Unique Opportunities Fund. Please read the full details of all the risks here before investing.

The charges you pay go towards the costs of running the small and mid-cap focused UK equity fund. These charges reduce the potential growth of your investment.

Entry charge: no initial charge

Ongoing charges*: 1.00% per annum 
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*Please note: This percentage is based on the net asset value of the sub-fund attributable to the relevant share class (plus VAT if applicable) as at 16 February 2024. This figure may vary from year to year. It excludes portfolio transaction costs. There may be further charges for buying and selling assets for the fund and 'dilution levy' costs associated with entering or exiting the fund. This is to cover costs associated with your transaction.

The Investment Manager of the Fund has undertaken to absorb any costs that would otherwise cause the shares of the Fund to have ongoing charges (excluding underlying collective investment undertaking holding charges) in excess of 1.00% per annum.

Please see the prospectus for more information.

Please find additional FAQs here.