Our Ref: Objective SMFL
Our ref: OMIG, OMWL, OMWLP
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Dear «Salute»
Threadneedle Defensive Equity & Bond –Name andObjective Change
I am writing to you because you are an investor in theThreadneedle Defensive Equity & Bondfund.
Threadneedle Investment Services Limited has told usthat thename and objectiveof this fundwill changefromTuesday 28 February 2017.
Why is the change happening?
Threadneedle believes that the new fund name and updated investment objective provide a clearer explanation of the fund, and that they are more consistent with the descriptions being used for similar funds across the industry.
You will see the new fund name in your future valuations, statements and any other correspondence you receive from us.
How will these changes affect yourinvestment?
The objective change will not affect the value of your investment or in the fund manager’s opinion, its risk profile. The old and new fund names and objectives are shown overleaf for you to compare.
The Annual Management Charge (AMC) of the fund will not change.
What action do youneed to take?
You do not need to take any action unless you wish to make an alternative choice from our extensive range of funds.
Please speak to your financial adviserbefore making any investment decisions or if you have any questions about these changes.
For any other questions you can call our Customer Service Centre on freephoneInsert Telephone Numberor email us ,but please remember we are not authorised to give you any investment advice.
Yours sincerely
Anthony Scammell
Head of Customer Experience
If you have an authorised financial adviser, we have made a copy of this letter available for them to view online.
Old fund name / New fund nameThreadneedle Defensive Equity & Bond / Threadneedle Managed Bond Focused
Old objective / New objective
To provide a return by way of capital growth and income from a defensively managed investment in regulated collective investment schemes operated, managed or advised by Threadneedle Investment Services Limited (or any company within the Group of which it is a Member).
The fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the fund may therefore rise and fall as a result of exchange rate fluctuations.
The fund invests in non-investment grade high-yielding bonds. The high yield reflects a higher risk of capital loss through default.
The fund invests in bonds or money market instruments (including deposits with banks or other financial institutions). The yield and/or value of the fund will fluctuate as interest rates change. There is a possibility of default, reducing capital values.
The fund, or some of its underlying assets, may hold derivatives for investment purposes, or borrow to invest ('gearing'), and the nature of these investments can lead to a higher volatility in the price of the fund. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation. / To provide a total return by way of income and capital growth. The fund will invest at least two-thirds of its assets in other funds managed or operated by companies in the Threadneedle group. These funds may invest worldwide. The fund will invest with a focus on funds that invest in fixed income securities, but will also have exposure to company shares, particularly the shares of UK companies or companies with significant UK operations.
The fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the fund may therefore rise and fall as a result of exchange rate fluctuations.
The fund invests in non-investment grade high-yielding bonds. The high yield reflects a higher risk of capital loss through default.
The fund invests in bonds or money market instruments (including deposits with banks or other financial institutions). The yield and/or value of the fund will fluctuate as interest rates change. There is a possibility of default, reducing capital values.
The fund, or some of its underlying assets, may hold derivatives for investment purposes, or borrow to invest ('gearing'), and the nature of these investments can lead to a higher volatility in the price of the fund. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation.