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Evolving our Horizon range to meet investors' needs:
Changes to the funds' Prospectus

At Embark Investments, we believe investments should be able to adapt and evolve to create better outcomes for investors. To keep pace with a changing world, our focus is on anticipating and adjusting each of the sub-funds’ portfolios to reflect opportunities in the market.

In keeping with this approach, we are changing our asset allocation guidelines to allow for greater investment flexibility and have amended the funds’ Prospectus as a result.

The changes, which have been communicated through an investor letter dated 6 September 2021, will come into force on 5 November 2021. An online version of the letter can be found here, and we recommend you read it so that you are fully aware of the changes.

Whilst the Horizon funds will continue to remain strictly within their risk profiles as set out in the funds’ Prospectus, we are broadening access to additional asset classes.

By widening the opportunity set to asset classes such as Commodities, Real Estate, Emerging Market Debt and Emerging Market Equities for certain sub-funds (see table below), we are aiming to improve diversification and provide a broader universe to optimise risk-adjusted returns for our investors.

At the same time, we are opening the possibility of investing up to 33% of each sub-fund in funds run by other investment managers.

Meanwhile, Horizon will continue to benefit from the risk profiling services of EV (EValue) and the fund management expertise of Columbia Threadneedle Investments.

Changes in permitted Assets Horizon I Horizon II Horizon III Horizon IV Horizon V
Real Estate Added Current Current Current Current
Commodities Added Added Added Added Added
Emerging Market Equities Added Added Added Current Current
Emerging Market Debt Added Added Added Added Added
Third-party funds (max 33%) Added Added Added Added Added

As the funds stand today, we hold no Real Estate due to liquidity conditions. Investments in these assets are subject to further constraints, including those set out in the current Prospectus and investor letter. Subject to market conditions, these assets may or may not feature in future portfolios. The investor letter provides full details.

In summary, we are evolving our Horizon range to put it in a better position to take advantage of market opportunities, and to provide further room for diversification. However, with these incremental changes, there is no change to the risk profiles of the funds, nor to our overall investment approach.

Until 31st October 2021, Embark Investment Funds ICVC utilised the UK branch of Northern Trust Global Services SE (“NTGS-UK”) as a depositary. As a consequence of the UK’s decision to leave the European Union, UK branches of EU banks are no longer able to provide trustee and depositary services into the UK. In order to comply with the new rules, Northern Trust has established Northern Trust Investor Services Limited (“NTISL”) to be the new trustee and depositary. The change of depositary took place on 31st October 2021 and the change has been reflected in the revised prospectus.