Wealth Solutions Bond Fund Menu

Transcription

1 Wealth Solutions Bond Menu

2 Choosing the right funds 3 The importance of diversification 3 Investing for income or growth 3 Investing with Friends Life 4 distribution funds 7 Charges and fund risks 8 risk warnings 9 Your approach to investment risk 10 range 11 solutions to meet your investment needs aims 15 Next steps 47 Investing for the future is something most of us consider important. But with so many ways to invest and numerous funds to place your money in, it can be confusing. With the help of your financial adviser, the aim of this brochure is to explain different fund features, and give you information about the range we offer through the Wealth Solutions Bond. This brochure should be read with the Key Features of the Wealth Solutions Bond (XINV31/A). 2

3 Choosing the right funds Regardless of the amount you have to invest, we all want our money to increase in value over the longer term. Whether your main aim is to achieve investment growth or to provide an income the Wealth Solutions Bond has the funds for you. Your financial adviser will be able to help you choose the right combination of funds to suit your investment requirements and individual circumstances, all at a level of investment risk that you are comfortable taking. Please note your financial adviser may charge you for this advice. The value of your Wealth Solutions Bond, and any income from it is and can go up and down. You could get back less than you ve paid in. We constantly review and refine our fund range so we can provide you with a selection to choose from. Our range of fund solutions includes funds concentrating on one particular type of investment, such as Shares (including UK, Overseas and Markets), or Fixed Interest we call these asset classes. We also offer funds that blend together different asset classes to create a single managed solution. In addition to these we have a broad range of Multi Manager funds. These invest in a range of other funds controlled by different fund managers. Their aim is to diversify risk. The importance of diversification Quite often a financial adviser will recommend spreading your money through a number of different investments. This may reduce the risk of losing money. This approach is known as diversification not putting all your eggs in one basket. By using diversification a financial adviser will be able to help you spread your investments across asset classes and areas of the world in a way to reduce the overall risk of your portfolio. This can be within a single fund solution, or a number of different funds. Investing for income or growth s with growth potential If you re investing to achieve capital growth on your original investment, funds that are aimed at providing growth potential will be more appropriate to your needs. These funds use the growth achieved by their underlying investments, such as dividends and interest payments, to increase the value of the fund price. These types of funds are commonly called accumulation funds they accumulate growth by automatically reinvesting any gains they make. If you invest in accumulation funds, you can also choose to take regular withdrawals from your Wealth Solutions Bond. These can be for a fixed amount or a percentage of your initial investment. Please see the Key Features of the Wealth Solutions Bond (XINV31/A) document for more details. If you decide to invest in our accumulation funds, you can invest in up to ten funds at any time. 3

4 s to provide an income When you invest specifically to receive a regular income, there is an additional group of funds available for you to choose from. These funds invest in the same way as accumulation funds, but rather than reinvesting any gains, they distribute income to investors at regular intervals. We call this group, income distribution funds. As these funds pay out the amount of actual income generated from the underlying investments in your chosen fund, the amount of the income distributions will go up and down. Within the Wealth Solutions Bond we offer a number of funds for you to choose from, each with its own cycle for paying income, either monthly, quarterly or every six months. If you decide to invest in our income distribution fund group, you can invest in up to five funds at any time. Where the Wealth Solutions Bond is part of our Discounted Gift Plan or Loan Trust Plan income distribution funds are not available. Investing with Friends Life F&C Asset Management plc Investment specialist, F&C Asset Management plc (F&C) is an independently listed company, which manages funds with the aim of achieving above-average returns. Through our relationship with F&C we offer you a range of funds, which includes those focusing on socially responsible investment, as well as income distribution funds and Multi Manager funds. External investment solutions With the expertise of external investment consultancies, we have selected a number of investment partners who we believe diversify and enhance our range of funds. In order to link the Wealth Solutions Bond to these external funds, your money is first pooled together in a Friends Life fund with other investors to achieve a greater buying power. Your money is then invested in the underlying external fund. 4

5 Socially responsible investment With growing awareness of social, ethical and environmental issues it is increasingly important for to have a strong, clear attitude towards social responsibility. We strive to lead by example. We offer a range of funds that are focused on socially responsible issues. We class these funds into three categories; ethical, green and engagement, we ve done this to help you understand the values and investment criteria each of the funds follow. Ethical These are ethically-screened funds that avoid or select on the basis of a wide range of social, ethical, environmental or governance issues. Companies may be screened on the basis of what they do or how they operate. The exact approach taken and the level of emphasis on each issue may vary from fund to fund. Green The funds main or entire focus is environmental or green issues. They are often regarded as themed funds and often do not always fit the definition of being an ethical fund, as they may not specifically screen out. These funds tend to invest in a restricted universe of, which meet certain environmental standards. Engagement An engagement approach can apply to an ethical fund, a green fund or a standard non-screened fund. This approach involves fund managers using their rights and responsibilities as shareholders to encourage more responsible business practices. Applying engagement to non-screened funds gives fund managers the option to proactively encourage positive change in that do not meet the high standards of screened funds. 5

6 The Stewardship approach Stewardship our range of strictly screened ethical funds managed by F&C were launched in 1984 to give individual investors, who cared about more than simply investment returns, somewhere to invest their money. These funds invest in that make a positive contribution to society, while seeking to avoid whose activities may cause damage or harm. The screening policies are constantly reviewed to ensure that Stewardship maintains an up-to-date and relevant strict ethical approach at all times. Further details on Stewardship can be found on our website at External ethical fund solutions We have selected a number of investment partners to improve the range of ethical options now available to you. The key characteristics we look for are good future performance prospects, transparent ethical screening processes, competitive pricing and an experienced, well resourced and stable fund management team. 6

7 distribution funds These funds pay out the level of income generated by the assets in your chosen fund. This is paid to investors as income distributions. As the level of income generated will vary then the amount of income distributions will go up and down. Distribution payments are made on the first day of the month. The following table shows the payment dates for each fund and their ex-distribution date. If you switch between funds the timing of your switch may affect when you next receive a distribution payment. If you do not switch into the new fund before the corresponding ex-distribution date you will not receive a distribution payment from it. For example, if you are switching to the FL Thames River Distribution you must switch before 1st January for the 1st March distribution to be paid. distributed Distribution date Ex-distribution date FL Artemis Strategic Bond Inc Quarterly 1 st February/1 st May/ 1 st August/1 st November 1 st January/1 st April/ 1 st July/1 st October FL F&C Strategic Bond Inc Monthly 1 st of each month 1 st of previous month FL Fidelity MoneyBuilder Inc Monthly 1 st of each month 1 st of previous month FL Invesco Perpetual Monthly Plus Inc Monthly 1 st of each month 1 st of previous month FL Investec Diversified Inc Quarterly 1 st March/ 1 st June/ 1 st September/ 1 st December 1 st January/ 1 st April/ 1 st July/ 1 st October FL Kames Strategic Bond Inc Quarterly 1 st April/1 st July/ 1 st October/1 st January 1 st February/1 st May/ 1 st August/1 st November FL Monthly Distribution Inc Monthly 1 st of each month 1 st of previous month FL Thames River Distribution Inc Quarterly 1 st March/ 1 st June/ 1 st September/ 1 st December 1 st January/ 1 st April/ 1 st July/ 1 st October FL UK Equity Inc Half-yearly 1 st July/ 1 st January 1 st May / 1 st November Switching funds If you want to you can switch between funds. You can change your funds free of charge, up to 12 times a bond year. This is the 12 month period from the anniversary of the bond starting. We charge 15 for each extra switch. You can invest in up to 10 funds at any one time, unless you choose our income distribution funds, in which case you can invest in five funds at a time. You can also switch between the accumulation and income distribution fund groups. However, within the first five years of making an investment or additional investment you can only do this once. The switch between fund groups will be included as one of your 12 free switches. If you want to switch into or out of income distribution funds, you must switch 100% of your investment, as you cannot be invested in a mix of accumulation and income distribution funds. Please refer to the Key Features of the Wealth Solutions Bond (XINV31/A) for more details. In exceptional circumstances we may delay the switching of units for up to one month, or for funds invested in, for up to six months. Please refer to the Key Features of the Wealth Solutions Bond (XINV31A) for more details. 7

8 Charges and fund risks Charges The charges we take cover the cost of setting up your plan. They also include the cost of administering your plan, professionally investing your money and an element of life cover. However, they do not cover any fee you may have to pay your financial adviser. The charging structure that applies to your Wealth Solutions Bond investment will depend on the remuneration agreement that you have made with your financial adviser in respect of any advice you receive. New product terms will apply where new advice is provided in respect of a Wealth Solutions Bond investment, where we can no longer pay commission to your financial adviser. They also apply where no further advice in respect of a Wealth Solutions investment has been given, and your financial adviser has given up the commission that they would normally be due. The existing (legacy) product terms will continue to apply to a Wealth Solutions Bond investment where no advice is given and commission is already being paid to your financial adviser. Additional expenses With all investment funds a share of expenses, such as fees to auditors and trustees, may be payable. We show these for each fund as at 31 December 2009 on pages 11 to 14. Additional expenses change over time. Performance related fee The BlackRock UK Absolute Alpha fund has a performance related fee. The fee is directly related to the performance of the fund when its return exceeds a certain level and is payable to the fund manager. The amount of this charge will vary according to the level of fund performance and the process the fund uses to calculate the fee. We have assumed a certain level of fee when calculating the additional expenses described above. Please note the fee could be higher or lower than we have assumed. The level of growth is, the amount you get back will depend on how the investments perform and on the tax treatment of your investment. Please refer to the fund information on page 28 and your illustration for more information. Your adviser will be able to confirm the basis on which your Wealth Solutions Bond investment is being made. Alternatively, you can contact us for details. Over the lifetime of your bond we take an annual management charge (AMC) from the individual funds before we work out the unit prices. We show the AMC for each fund for Wealth Solutions Bond investments written under new product terms on pages 11 to 14. For Wealth Solutions Bond investments written under the existing (legacy) terms, in addition to the AMCs that we take from the individual funds as shown on pages 11 to 14, we also take an extra AMC of 0.05% a year by cancelling units every month. Please see your illustration for the AMCs that apply to your Wealth Solutions Bond investment. The Key Features of the Wealth Solutions Bond (XINV31/A) and At a Glance (XINV31/Q) documents contain more information on charges. 8

9 risk warnings There are risks associated with investing in funds, or types of funds. In this document we show which risk warning or warnings apply to each fund. These are all explained below. Not all of these warnings will apply to each fund. Risk warning type not guaranteed Risk warning code A Risk warnings The value of an investment is and can go up and down depending on performance. You could get back less than you have paid in. Specialist Derivatives Cash B C D E F G H I J K L M N O P At times, a fund may need to change the way its price is calculated, to ensure that those moving into and out of the fund are treated fairly. This can have a negative effect on a fund s price and performance. managers have the ability, in exceptional circumstances, to suspend in their funds for as long as necessary. When this occurs we will need to delay the cashing in or switching of units in the relevant fund. You may not be able to access your money during this period. Where a fund aims to generate an income, we reinvest any income back into the fund to increase the value of the units. Where a fund invests overseas, the value can go up and down simply because of changes in currency exchange rates. Where a fund invests in emerging it is likely to be more volatile than one that invests in developed. These can be unstable and less liquid, so the fund may carry more risk. Some funds invest in the shares of smaller. These shares can be more volatile and less liquid than larger company shares, so the funds may carry more risk. Where a fund invests in fixed interest, such as company or government bonds, the value may go up and down as interest rates change. If interest rates rise, the value is likely to fall. Some high yielding bonds are known as junk bonds. These carry an increased risk that the issuer of the bond will be unable to continue the interest payments or return the capital at maturity. s that invest in specific industry sectors may carry more risk than those spread across several sectors. These funds can be more volatile and higher risk due to their limited exposure. Derivatives are complex and funds that use them for investment purposes may be more volatile. These funds are considered to be higher risk than funds that invest only in shares. Cash funds are not cash deposit accounts and can fall in value. In a low interest rate environment the charges applied to the fund may be greater than its return, so you may not get back all of your original investment. funds mainly invest in commercial properties which are not easy to sell. In exceptional circumstances, we may need to delay the cashing in or switching of units in the fund. You may not be able to access your money during this period. Where a fund is involved in the temporary transfer of, there is always the risk that the borrower may not be able to return the security to its owner. This may have a negative effect on the performance of the fund. Where a fund invests in index linked bonds, the value may go up and down as the rate of inflation changes. If inflation falls, the value is likely to fall. Some funds invest in the shares of investment trusts, which may own commercial and residential properties. investment trusts are stock market listed, and their shares can be affected by the performance of global stock. Due to the way some funds are managed there may be periods when they have large cash holdings. This can be a deliberate asset allocation decision or while suitable investment opportunities are researched and selected. A fund s growth potential may be less during this period. 9

10 Changed circumstances Please note there may be circumstances when the external fund managers decide to increase the level of annual management charge for new and existing customers. If this happens, we ll offer you a free switch to another fund with an annual management charge at or below the previous level. We may even close the external fund concerned. Please ask your financial adviser for an up to date personal illustration before you make an investment. Your approach to investment risk The following key will help you understand the different of risk you can take when investing your money. Only you will know how much risk you are prepared to take, but you should remember that even if you choose to take a low level of investment risk, your money could buy you less in the long term because of the rise in the cost of living. Risk band High + Your approach to investment risk As a very adventurous investor, you will accept much higher risk for the prospect of much higher returns. High High Medium + Medium Medium You re an adventurous investor willing to accept high risk for the prospect of high returns. As an adventurous investor you will accept above-average but below high risk for the prospect of high returns. You prefer a balanced approach to investment and are willing to accept above-average risk in the hope of higher returns. You prefer a balanced approach to investment and are willing to accept average risk to achieve more attractive returns. You will accept below-average risk to achieve more attractive returns. Low + Low Although a cautious investor, you re prepared to accept low of risk for the prospect of slightly higher returns. You re a very cautious investor and are willing to take a minimal amount of risk only. 10

11 range The tables on the following pages show the funds available through the Wealth Solutions Bond. We have listed the funds by their risk rating, and have included their annual management charge (AMC) and additional expenses to help you compare them. For Wealth Solutions Bond investments written under existing (legacy) terms, in addition to the AMCs that we take from the individual funds as shown in these tables, we also take an extra AMC of 0.05% a year by cancelling units every month. Please refer to the Charges section on page 8 for more information on charges. Risk band group AMC Additional expenses High + FL Aberdeen European Frontiers Accumulation High + FL Allianz BRIC Stars Accumulation High + FL BlackRock Gold and General Accumulation High + FL F&C Latin American Equity Accumulation High + FL First State Global Markets Leaders Accumulation High + FL Henderson China Opportunities Accumulation High + FL Henderson Markets Opportunities Accumulation High + FL JPM Natural Resources Accumulation High + FL Jupiter European Opportunities Accumulation High FL F&C Global Climate Opportunities Accumulation High FL First State Asia Pacific Leaders Accumulation High FL Invesco Perpetual Asian Accumulation High FL Neptune Global Equity Accumulation High FL Aberdeen Multi-Manager Ethical Portfolio Accumulation High FL Aviva Investors Sustainable Future European Growth Accumulation High FL BlackRock UK Special Situations Accumulation High FL BlackRock US Dynamic Accumulation High FL European Accumulation High FL Fidelity European Accumulation High FL Fidelity Special Situations Accumulation High FL Henderson European Growth Accumulation High FL Impax Environmental Markets Accumulation High FL Invesco Perpetual Japan Accumulation High FL Investec American Accumulation High FL Investec UK Companies Accumulation High FL JPM Japan Accumulation High FL Kames Ethical Equity Accumulation High FL Lazard European Alpha Accumulation High FL M&G American Accumulation High FL M&G Global Basics Accumulation High FL M&G Recovery Accumulation High FL Neptune European Opportunities Accumulation Page 11

12 Risk band group AMC Additional expenses High FL North American Accumulation High FL Old Mutual UK Select Mid Cap Accumulation High FL Pacific Basin Accumulation High FL Schroder Global Climate Change Accumulation High FL Schroder Tokyo Accumulation High FL Schroder UK Alpha Plus Accumulation High FL Schroder UK Companies Accumulation Medium + FL Aberdeen Multi-Manager Constellation Accumulation Medium + FL Artemis Accumulation Medium + FL Artemis UK Growth Accumulation Medium + FL Artemis UK Special Situations Accumulation Medium + FL Aviva Investors Global Balanced Accumulation Medium + FL Baillie Gifford Global Accumulation Medium + FL Baillie Gifford UK Equity Alpha Accumulation Medium + FL BlackRock Balanced Growth Portfolio Accumulation Medium + FL BlackRock UK Dynamic Accumulation Medium + FL BlackRock UK Accumulation Medium + FL Fidelity WealthBuilder Accumulation Medium + FL Global Equity Accumulation Medium + FL Henderson Global Equity Accumulation Medium + FL Invesco Perpetual High Acc Accumulation Medium + FL Investec Managed Growth Accumulation Medium + FL Investec UK Blue Chip Accumulation Medium + FL Investment Trust Portfolio Accumulation Medium + FL Jupiter Ecology Accumulation Medium + FL Jupiter Accumulation Medium + FL Jupiter Merlin Growth Portfolio Acc Accumulation Medium + FL Lazard UK Accumulation Medium + FL M&G Managed Growth Accumulation Medium + FL Martin Currie North American Accumulation Medium + FL Newton Global Higher Accumulation Medium + FL Schroder Accumulation Medium + FL Stewardship Accumulation Medium + FL Stewardship Accumulation Medium + FL Stewardship International Accumulation Medium + FL Thames River Balanced Managed Accumulation Medium + FL Thames River Equity Managed Accumulation Medium + FL Threadneedle Global Select Accumulation Medium + FL UK Equity Accumulation Medium + FL UK Equity Inc distribution Medium + FL UK Index Tracking Accumulation Page 12

13 Risk band group AMC Additional expenses Medium FL BlackRock UK Absolute Alpha Accumulation Medium FL F&C Maximum Bond Accumulation Medium FL Jupiter Merlin Balanced Portfolio Accumulation Medium FL M&G Episode Balanced Accumulation Medium FL M&G High Yield Corporate Bond Accumulation Medium FL Managed Accumulation Medium FL Schroder Multi-Manager Cautious Managed Acc Accumulation Medium FL Stewardship Managed Accumulation Medium FL Thames River Distribution Acc Accumulation Medium FL Thames River Distribution Inc distribution Medium FL Aberdeen Multi-Manager Cautious Managed Accumulation Medium FL Artemis Strategic Bond Acc Accumulation Medium FL Artemis Strategic Bond Inc distribution Medium FL Aviva Investors Global Cautious Accumulation Medium FL BlackRock Corporate Bond Accumulation Medium FL Cazenove Multi-Manager Diversity Accumulation Medium FL F&C Strategic Bond Acc Accumulation Medium FL F&C Strategic Bond Inc distribution Medium FL Henderson Cautious Managed Acc Accumulation Medium FL Henderson Fixed Interest Monthly Accumulation Medium FL Invesco Perpetual Corporate Bond Accumulation Medium FL Invesco Perpetual Distribution Acc Accumulation Medium FL Invesco Perpetual Global Bond Accumulation Medium FL Invesco Perpetual Monthly Plus Acc Accumulation Medium FL Invesco Perpetual Monthly Plus Inc distribution Medium FL Investec Cautious Managed Accumulation Medium FL Investec Diversified Acc Accumulation Medium FL Investec Diversified Inc distribution Medium FL Jupiter Merlin Portfolio Acc Accumulation Medium FL Kames Ethical Corporate Bond Accumulation Medium FL Kames Sterling Corporate Bond Acc Accumulation Medium FL Kames Strategic Bond Acc Accumulation Medium FL Kames Strategic Bond Inc distribution Medium FL M&G Optimal Accumulation Medium FL Monthly Distribution Acc Accumulation Medium FL Monthly Distribution Inc distribution Medium FL Old Mutual Corporate Bond Acc Accumulation Medium FL Stewardship Corporate Bond Accumulation Medium FL Stewardship Safeguard Optimiser Series 1* Accumulation Medium FL Stewardship Safeguard Optimiser Series 2 Accumulation Medium FL Thames River Cautious Managed Accumulation Page *Currently suspended to new business 13

14 Risk band group AMC Additional expenses Medium FL Threadneedle Equity & Bond Accumulation Medium FL Threadneedle UK Corporate Bond Accumulation Medium FL UK Safeguard Optimiser Series 1* Accumulation Medium FL UK Safeguard Optimiser Series 2 Accumulation Low + FL Aviva Investors Trust Accumulation Low + FL Fidelity MoneyBuilder Acc Accumulation Low + FL Fidelity MoneyBuilder Inc distribution Low + FL Fixed Interest Accumulation Low + FL Henderson UK Accumulation Low + FL Index Linked Accumulation Low + FL Investec Strategic Bond Accumulation Low + FL JPM Cautious Total Return Accumulation Low + FL M&G Portfolio Accumulation Low + FL Accumulation Low FL Cash Accumulation Page 14

15 aims Managed funds FL Aberdeen Multi-Manager Cautious Managed FL Aberdeen Multi-Manager Ethical Portfolio FL BlackRock Balanced Growth Portfolio Aberdeen states the investment objective is to achieve income and capital growth by the adoption of a cautious investment approach. The investment policy is to invest primarily in shares or units of collective investment schemes. Up to 60% of the fund will be invested in collective investment schemes which invest mainly in equities or which pursue a strategy mainly linked to equity investment. The fund may also invest in other collective investment schemes including those which invest in fixed income holdings. The fund may also invest directly in transferable, money market instruments, near cash, cash and deposits. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M, P Aberdeen states the investment objective of the fund is to achieve capital growth. The investment policy is to invest primarily in shares or units of collective investment schemes investing in in any geographic area or sector which have an ethical, socially responsible or environmental consideration in their stock selection process. The fund may also invest in other collective investment schemes and directly in transferable, money market instruments, near cash, cash and deposits. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, H, I, M ethical BlackRock states the fund aims to achieve capital growth, with opportunity for additional income generation depending on market conditions. Investment may be made in a global portfolio of equities and fixed income, as well as collective investment schemes, cash in Sterling or other currencies (in the form of deposits and/or forward contracts) and money market instruments. Investment may be made in any and all economic sectors, although under normal market conditions there will be an emphasis on the UK. In order to achieve the investment objective and policy the fund will invest in a variety of investment strategies and instruments. For this purpose, it intends to take full advantage of the ability to invest in derivatives. It may also hold indirect exposure to alternative asset classes such as commodities or through eligible index derivatives, eligible collective investment schemes or structured. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M, O 15

16 Managed funds continued FL Cazenove Multi-Manager Diversity FL Henderson Cautious Managed Acc FL Invesco Perpetual Distribution Acc Cazenove states the fund s aim is to achieve long-term capital growth in excess of inflation from a portfolio invested across a broad range of asset classes. The fund is intended to provide consistent rates of return with lower risk than more traditional approaches to portfolio management which tend to be largely dependent on the performance of equities. The investment policy of the fund is to invest mainly in collective investment schemes but, where it is considered appropriate, investment may also be made in closed ended funds, individual transferable, money market instruments and/or derivative and forward transactions. The fund may also seek investment diversification by obtaining exposure to alternative asset classes including hedge funds, private equity, commodities and indirectly in through investment in collective investments, transferable and other and instruments in which the fund may invest. The fund may utilise derivatives for the purposes of efficient portfolio management. Generally the Manager intends the fund to remain fully invested subject to the holding of cash or near cash. Risk warnings A, B, C, E, F, G, H, M, O, P Henderson states the investment objective and policy of this fund is to provide a combination of income and long-term capital growth. Investment will be in a diversified portfolio of equities, bonds and other related investments. At all times the investment in equities will be limited to a maximum of 60% of the value of the fund s portfolio. The fund may also invest at the Manager s discretion in other transferable, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stocklending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable Financial Conduct Authority Rules). investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, J, M, P Invesco Perpetual states the fund aims to achieve a balance of income and capital growth through a portfolio of primarily UK equity and fixed interest. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, M 16

17 Managed funds continued FL Investec Cautious Managed FL Investec Managed Growth FL JPM Cautious Total Return Investec states the fund aims to provide a combination of income and long-term capital growth by investing conservatively in a diversified portfolio of equities, bonds and other fixed interest of high quality and marketability. At all times the fund s equity exposure will be limited to a maximum of 60% of the portfolio value. Where reference is made to investment in high quality bonds this shall be defined as investment grade bonds. Bonds held may be corporate or government and of any duration and may be investment grade or sub investment grade. Up to 5% in value of the of this fund may be invested in units or shares of other collective investment schemes. The fund may also invest, at the Authorised Corporate or s discretion, in other transferable. In addition, cash may be held for the purposes set out in the Financial Conduct Authority Rules, including efficient management of the fund, and exchange traded and over the counter derivatives and forward currency contracts may be used for the efficient portfolio management of the fund. Use may be made of stock lending and borrowing and other investment techniques permitted in the Financial Conduct Authority Rules. The fund may, in addition to its other investment powers, use cash and near cash and exchange traded and over the counter derivatives and forward currency contracts for investment purposes. Risk warnings A, B, C, D, E, H, J, M Investec states the fund aims to achieve a combination of income and capital growth primarily through investment in the shares of investment and other collective investment schemes and in derivatives the underlying assets of which are shares of investment and other collective investment schemes. Up to 100% in value of the of the fund may be invested in units in other collective investment schemes. The fund may also invest, at the Authorised Corporate or s discretion, in other transferable, cash and near cash (which includes money market instruments and deposits) and other exchange traded and over the counter derivatives and forward transactions for investment purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short-term purposes. Furthermore, use may be made of stock lending and borrowing and other investment techniques permitted in the Financial Conduct Authority Rules. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M JPMorgan states the investment objective and policy of the fund is to achieve over a mediumterm horizon higher returns than those available from money market instruments denominated in Sterling by investing primarily in fixed income, convertible bonds, equity and short-term of issuers located in any country. The fund may invest in such issued by issuers in emerging countries worldwide. Additionally, the fund may invest up to 100% in cash and cash equivalents. Asset and country allocations may vary over time to reflect market conditions and opportunities. The fund may invest up to 100% in government and public. The fund may use derivatives for investment purposes or efficient portfolio management, including hedging, where appropriate. Risk warnings A, B, C, D, E, F, G, H, J, M, P 17

18 Managed funds continued FL Jupiter Merlin Balanced Portfolio FL Jupiter Merlin Growth Portfolio Acc FL Jupiter Merlin Portfolio Acc FL M&G Episode Balanced FL M&G Managed Growth Jupiter states the objective of the fund is to achieve long-term capital growth with income. The investment policy is to invest predominantly in unit trusts, OEICs, Exchange Traded s and other collective investment schemes across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M, O, P Jupiter states the objective of the fund is to achieve long-term capital growth. The investment policy is to invest predominantly in unit trusts, OEICs, Exchange Traded s and other collective investment schemes across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and with a core in the UK. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, H, M, O Jupiter states the objective of the fund is to achieve a high and rising income with some potential for capital growth. The investment policy is to invest predominantly in unit trusts, OEICs, Exchange Traded s and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and, principally in the UK. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M, O M&G states the fund s aim is to maximise total return (the combination of income and growth of capital) through investment in a diversified range of asset types. Subject to this, the fund aims to grow income in the long term. The fund manager adopts a flexible approach to the allocation of capital between asset classes in response to changes in economic conditions and the valuation of assets. Central to this approach is the identification of episodes, which are periods of time during which, in the fund manager s view, asset prices become over- or under-stated, relative to objective valuation measures, due to the emotional reaction of investors to events. These episodes can exist over both the short and medium term. The invests in transferable, fixed income assets (including, but not limited to, corporate bonds and government and public ), warrants, money market instruments, deposits, cash and near cash. Exposure to these assets, and to, may be gained via collective investment schemes and derivatives (including equity index futures, currency forwards, interest rate swaps and other liquid derivatives). The fund will invest no more than 60% of the portfolio in equities. Derivatives may also be used for efficient portfolio management purposes. Risk warnings A, B, C, D, E, F, G, H, J, M, O M&G states the fund s aim is to achieve long-term capital growth. The fund is an actively managed fund investing predominantly in collective investment schemes in order to provide a well diversified exposure to global equities. The fund may also invest in other collective investment schemes and directly in, fixed income assets, warrants, money market instruments, deposits, cash, near cash, and derivatives for the purposes of efficient portfolio management. Risk warnings A, B, C, D, E, F, G, H, M 18

19 Managed funds continued FL Managed FL Schroder Multi-Manager Cautious Managed Acc FL Stewardship Managed FL Thames River Balanced Managed FL Thames River Cautious Managed The fund aims to provide exposure to a diversified portfolio of assets in order to produce capital growth and income. It will mainly be invested in equities and bonds. It may also invest in warrants, convertibles, money market instruments, cash and near cash assets such as deposits and certificates of deposit, commodities, private equity, hedge funds, derivatives, other alternative asset classes, and. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, E, F, G, H, I, J, L, N, O Schroder states the fund s investment objective is to provide a combination of income and capital mainly through investment in collective investment schemes as well as directly held transferable, cash, deposits and money market instruments. The fund may invest to a limited extent in derivatives, warrants and alternatives including commodities, private equity and through investment in collective investment schemes and transferable. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M, O, P The fund aims to provide exposure to a diversified portfolio of ethically screened assets in order to produce capital growth and income. The ethical screening criteria of the fund will mean that its investments are more restricted than a non-ethical fund. It may invest in equities, warrants, bonds, convertibles, money market instruments, cash and near cash assets such as deposits and certificates of deposit. The fund may invest directly or indirectly. Risk warnings A, B, C, D, E, F, G, H, I ethical Thames River states the fund s investment objective is to achieve a balance between capital growth and reasonable income. The fund will seek to achieve its investment objective primarily through investment in shares or units of regulated and/or unregulated collective investment schemes and/or closed ended funds. This may include schemes or funds managed by the Authorised Corporate or and/or an associate. The fund may also invest directly in transferrable, money market instruments, warrants, deposits, near cash and cash. Liquid instruments may be held both for investment purposes and for other purposes permitted under the Regulations. The fund may utilise derivatives for hedging and efficient portfolio management purposes and as part of its investment policy. In seeking to achieve its investment objective and policy, the exposure of the fund directly or indirectly to equities and equity related investments (including for these purposes convertible ) is currently restricted to 85% with at least 10% exposure maintained in non-uk equities. Risk warnings A, B. C, D, E, F, G, H, J, M, P Thames River states the fund s investment objective is to achieve income and capital growth. The fund will seek to achieve its investment objective primarily through investment in shares or units of regulated and/or unregulated collective investment schemes and/or closed ended funds. These may include schemes or funds managed by the Authorised Corporate or and/or an associate. The fund may also invest directly in transferable, money market instruments, warrants, deposits, near cash and cash. Liquid instruments may be held both for investment purposes and for other purposes permitted under the Regulations. The fund may utilise derivatives for hedging and efficient portfolio management purposes. In seeking to achieve its investment objective and policy, the exposure of the fund directly or indirectly to equities or equity related investments (including for these purposes convertible ) is currently restricted to 60% with at least a 30% exposure maintained in fixed interest instruments, and cash. Risk warnings A, B, C, D, E, F, G, H, M, P 19

20 Managed funds continued FL Thames River Distribution Acc FL Thames River Distribution Inc FL Thames River Equity Managed Thames River states the fund s investment objective is to achieve a total return with an emphasis on income together with some capital growth. The fund will seek to achieve its investment objective primarily through investment in shares or units of regulated and/or unregulated collective investment schemes and/or closed ended funds. This may include schemes or funds managed by the Authorised Corporate or and/or an associate. The fund may also invest directly in transferable, money market instruments, warrants, deposits, near cash and cash. Liquid instruments may be held both for investment purposes and for other purposes permitted under the Regulations. The fund may utilise derivatives for hedging and efficient portfolio management purposes and as part of its investment policy. In seeking to achieve its investment objective and policy, the exposure of the fund directly or indirectly to equities and equity related investments (including for these purposes convertible ) is currently restricted, in respect of up to 60% of the fund with at least a 30% exposure maintained in fixed interest instruments, and cash. Risk warnings A, B, C, D, E, F, G, H, J, M, O, P Thames River states the fund s investment objective is to achieve a total return with an emphasis on income together with some capital growth. The fund will seek to achieve its investment objective primarily through investment in shares or units of regulated and/or unregulated collectiv e investment schemes and/or closed ended funds. This may include schemes or funds managed by the Authorised Corporate or and/or an associate. The fund may also invest directly in transferable, money market instruments, warrants, deposits, near cash and cash. Liquid instruments may be held both for investment purposes and for other purposes permitted under the Regulations. The fund may utilise derivatives for hedging and efficient portfolio management purposes and as part of its investment policy. In seeking to achieve its investment objective and policy, the exposure of the fund directly or indirectly to equities and equity related investments (including for these purposes convertible ) is currently restricted, in respect of up to 60% of the fund with at least a 30% exposure maintained in fixed interest instruments, and cash. Risk warnings A, B, C, E, F, G, H, J, M, O, P Thames River states the fund s investment objective is to achieve capital growth. The fund will seek to achieve its investment objective primarily through investment in shares or units of regulated and/or unregulated collective investment schemes and/or closed ended funds. This may include schemes or funds managed by the Authorised Corporate or and/ or an associate. The fund may also invest directly in transferable, money market instruments, warrants, deposits, near cash and cash. Liquid instruments may be held both for investment purposes and for other purposes permitted under the Regulations. The fund may utilise derivatives for hedging and efficient portfolio management purposes and as part of its investment policy. In seeking to achieve its investment objective and policy, the exposure of the fund directly or indirectly to equities and equity related investments (including for these purposes convertible ) is currently up to 100% of the fund with at least a 10% exposure maintained in non-uk Equities. Risk warnings A, B, C, E, F, G, J, M 20

21 Managed funds continued FL Threadneedle Equity & Bond FL Artemis Strategic Bond Acc FL Artemis Strategic Bond Inc FL BlackRock Corporate Bond Threadneedle states the investment objective is to provide a return by way of capital growth and income from defensively managed investment in regulated collective investment schemes operated, managed or advised by Threadneedle. The fund may invest internationally and will invest primarily in collective investment schemes that invest in equities, fixed interest, cash or near cash. The fund may also invest in collective investment schemes that do not restrict their use of derivatives to efficient portfolio management up to a maximum of no more than 20% of the value of the fund assets. Further the fund may also invest directly in cash, near cash and/or money market instruments. Risk warnings A, B, C, D, E, F, G, H, J, M, N Artemis states the fund seeks to achieve a total return by investing predominantly in fixed income. The fund aims to achieve its objective by investment predominantly in fixed income but may selectively invest in other. Equal emphasis is given to the security of capital and income although from time to time one may take prominence over the other in accordance with the strategy being pursued. The fund will invest in all types of bonds, from government bonds to corporate bonds and highly rated investment grade to sub-investment grade bonds. The fund may also invest in other transferable, units of collective investment schemes, money market instruments, warrants, cash and near cash, derivatives and forward transactions and other investments to the extent that each is permitted by the Regulations. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, J, M, N Artemis states the fund seeks to achieve a total return by investing predominantly in fixed income. The fund aims to achieve its objective by investment predominantly in fixed income but may selectively invest in other. Equal emphasis is given to the security of capital and income although from time to time one may take prominence over the other in accordance with the strategy being pursued. The fund will invest in all types of bonds, from government bonds to corporate bonds and highly rated investment grade to sub-investment grade bonds. The fund may also invest in other transferable, units of collective investment schemes, money market instruments, warrants, cash and near cash, derivatives and forward transactions and other investments to the extent that each is permitted by the Regulations. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, H, J, M, N BlackRock states the objective of the fund is to maximise total return by investing principally in corporate bonds and other interest-bearing. Exposure to non Sterling denominated assets will typically be hedged back to Sterling. Separately, the fund may also invest in preference shares, convertibles, other transferable and collective investment schemes. BlackRock also states the fund may invest in structured credit products such as asset backed which pool together mortgages and other debts into single or multiple series credit products which are then passed on to investors normally in return for interest. These have similar characteristics to corporate bonds but carry greater risk. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, M 21

22 Fixed Interest funds FL F&C Maximum Bond FL F&C Strategic Bond Acc FL F&C Strategic Bond Inc FL Fidelity MoneyBuilder Acc FL Fidelity MoneyBuilder Inc FL Fixed Interest F&C states the fund aims to maximise returns through investment primarily in high-yielding global fixed interest. The fund will invest predominantly in US dollar, Sterling and euro denominated high-yielding fixed interest, including non-investment grade bonds. To manage risk the fund will aim to achieve a wide degree of diversification and the managers will adopt a rigorous credit management process. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, H, M F&C states the fund aims to produce a high income by investing in corporate bonds and other fixed interest. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, M, P F&C states the fund aims to produce a high income by investing in corporate bonds and other fixed interest. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, H, M, P Fidelity states the investment objective is to achieve an attractive level of income from a portfolio primarily invested in Sterling denominated fixed interest. The fund invests predominantly in the UK. Any overseas investments are hedged back to Sterling. It invests primarily in investment grade (higher quality) Sterling denominated bonds issued by. It can also invest in government bonds, sub-investment grade (lower quality) corporate bonds and other Sterling fixed interest. The fund can invest in bonds of any duration. The fund may invest in derivatives for the purpose of efficient portfolio management. Risk warnings A, B, C, D, E, H, M Fidelity states the investment objective is to achieve an attractive level of income from a portfolio primarily invested in Sterling denominated fixed interest. The fund invests predominantly in the UK. Any overseas investments are hedged back to Sterling. It invests primarily in investment grade (higher quality) Sterling denominated bonds issued by. It can also invest in government bonds, sub-investment grade (lower quality) corporate bonds and other Sterling fixed interest. The fund can invest in bonds of any duration. The fund may invest in derivatives for the purpose of efficient portfolio management. Risk warnings A, B, C, E, H, M The fund aims to achieve income and capital growth by mainly investing in bonds. It may also invest in money market instruments, derivatives, cash and near cash assets such as deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, E, H, J, N 22

23 Fixed Interest funds continued FL Henderson Fixed Interest Monthly Henderson Global Investors states the investment objective is to achieve a high level of income with modest long-term capital appreciation. The investment policy is to invest principally in fixed and variable rate and index-related issued by corporate, government, supranational institutions and local and regional agencies, both in the UK and internationally and derivatives. Fixed and variable and index related may include, but are not restricted to, treasury bills, certificates of deposit, medium-term notes, preference shares, debentures, gilts, corporate bonds, overseas bonds, agency bonds, asset or mortgage backed or floating rate notes. The fund may also invest in money market instruments, deposits and any other permitted asset type deemed appropriate to meet the investment objective. Investments may be denominated in currencies other than Sterling. Derivatives may be used for meeting the investment objective of the fund and for efficient portfolio management. Risk warnings A, B, C, D, E, H, J, M, P FL Index Linked FL Invesco Perpetual Corporate Bond FL Invesco Perpetual Global Bond FL Invesco Perpetual Monthly Plus Acc The fund aims to provide income and capital growth by mainly investing in UK Government index-linked bonds. The fund may also invest in other bonds, money market instruments, derivatives, cash and near cash assets such as deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, E, H, I, J, N Invesco Perpetual states the fund aims to achieve a high level of overall return, with relative security of capital. It intends to invest primarily in fixed interest. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions, although the fund will not invest in any instrument which gives rise to a stamp duty liability. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, H, M Invesco Perpetual states the fund aims to achieve a good overall investment return in the medium to long term with relative security of capital. The fund intends to invest primarily in international bonds of differing interest yields and maturities. It may include debentures and loan stock. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, H, M, P Invesco Perpetual states the fund aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and government bonds, together with UK equities. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, M 23

24 Fixed Interest funds continued FL Invesco Perpetual Monthly Plus Inc Invesco Perpetual states the fund aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and government bonds, together with UK equities. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, M FL Investec Strategic Bond FL Kames Ethical Corporate Bond FL Kames Sterling Corporate Bond Acc Investec states the fund aims to provide an income primarily through investment in high quality bonds. The portfolio will be managed to minimise any currency risk in Sterling and derivatives may be used for investment purposes. Where reference is made to investment in high quality bonds this shall be defined as investment grade bonds. Bonds held may be corporate or government and of any duration and may be investment grade or sub investment grade. The fund may, in addition to its other investment powers, use cash and near cash (which includes money market instruments and deposits) and exchange traded and over the counter derivatives and forward currency contracts for hedging and investment purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short term purposes. The fund may also invest, at the Authorised Corporate or s discretion, in other transferable. Use may be made of stock lending and borrowing and other investment techniques permitted in the Financial Conduct Authority Rules. Furthermore up to 5% in value of the of this fund may be invested in units or shares in other collective investment schemes. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, J, M Kames Capital states the primary investment objective is to maximise total return (income plus capital) by investing in Sterling denominated bonds issued by a company or organisation which meets the fund s predefined ethical criteria. Investments may encompass investment grade corporate bonds, cash and up to 10% of the fund in high yield bonds. A full list of exclusions is available from the Authorised Corporate or. The average portfolio duration of the fund will normally vary within a plus 3 to 10 year time frame based on the investment manager s views for interest rates and government and corporate bond yields. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, I, J, M, P ethical Kames Capital states the primary investment objective is to maximise total return (income plus capital) by investing mainly in Sterling denominated bonds, encompassing investment grade corporate bonds, government bonds and cash. Up to 10% of the fund may be invested in high yield bonds. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. The average portfolio duration of the fund will normally vary within a plus 4 to 9 year time frame based on the investment manager s views for interest rates and government and corporate bond yields. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, H, J, M, P 24

25 Fixed Interest funds continued FL Kames Strategic Bond Acc Kames Capital states the primary investment objective is to maximise total return (income plus capital) by investing in global debt instruments, denominated in any currency, ranging from AAA government bonds through to high yield and emerging market corporate bonds. At least 80% of the fund will be invested in Sterling and other currency denominated bonds hedged back to Sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. This fund s management style incorporates tactical asset allocation with high frequency portfolio adjustments. The average portfolio duration of the fund will normally vary within a plus 2 to 10 year time frame based on the investment manager s views for interest rates and government and corporate bond yields. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, H, J, M, P FL Kames Strategic Bond Inc FL M&G High Yield Corporate Bond FL M&G Optimal Kames Capital states the primary investment objective is to maximise total return (income plus capital) by investing in global debt instruments, denominated in any currency, ranging from AAA government bonds through to high yield and emerging market corporate bonds. At least 80% of the fund will be invested in Sterling and other currency denominated bonds hedged back to Sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. This fund s management style incorporates tactical asset allocation with high frequency portfolio adjustments. The average portfolio duration of the fund will normally vary within a plus 2 to 10 year time frame based on the investment manager s views for interest rates and government and corporate bond yields. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, H, J, M, P M&G states the fund aims to maximise total return (the combination of income and growth of capital) while generating a high level of income. The fund invests predominantly in higher yielding corporate debt instruments which may be denominated in Sterling, European currencies and other major global currencies, should the investment managers deem them to be appropriate investments. The fund s exposure to higher yielding corporate debt instruments may be gained through the use of derivatives and any currency exposures within the fund may be managed by currency hedges into Sterling. The fund may also invest in other assets including collective investment schemes, government and public and other transferable, cash and near cash, deposits, warrants, money market instruments and other derivative instruments. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, J M&G states the fund aims to provide a total return to investors based on exposure to optimal income streams in investment. The fund aims to provide a total return to investors through strategic asset allocation and specific stock selection. The fund will be at least 50% invested in debt instruments, but may also invest in other assets including collective investment schemes, money market instruments, cash, near cash, deposits, equities and derivatives. Derivative instruments may be used for both investment purposes and efficient portfolio management. Risk warnings A, B, C, D, E, H, J, M 25

26 Fixed Interest funds continued FL Old Mutual Corporate Bond Acc Old Mutual states the fund aims to maximise total return through investment in a diversified portfolio of fixed interest and other debt. Subject to the regulations, the of the fund may include transferable ; units in collective investment schemes, warrants, money market instruments, deposits and derivatives. More than 35% in value of the of the fund may consist of government and other public issued by one issuer in accordance with the investment management and borrowing powers of the Company. The level of cash held will not normally exceed 20% of the value of the holding of the fund. Old Mutual states this fund is typically at least 80% invested in Sterling denominated (or hedged back to Sterling) corporate bonds that are investment grade: that is, bonds rated BBB- or above, as measured by Standard & Poor s or an equivalent external rating agency. The remaining 20% of the fund may be invested in lower rated bonds, which may offer a higher income but at greater risk to capital value. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, J, M, N, P FL Stewardship Corporate Bond FL Threadneedle UK Corporate Bond FL Artemis The fund aims to maximise returns through investment primarily in fixed interest of an ethically screened and diversified universe of. The fund will invest in investment grade and high yield. Government are generally excluded. The fund may also invest in warrants, collective investment schemes, money market instruments and derivatives. Non-Sterling denominated issues are permitted and any currency exposure will normally be hedged back to Sterling. To manage risk the fund will aim to achieve a wide degree of diversification across the available issuers and the manager will adopt a rigorous credit management process. Derivatives may be used to hedge investment risk, replicate investment positions and generate additional return in a risk controlled manner. This will include the use of currency forwards, interest rate swaps and single name credit default swaps. investment in derivatives will also be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, E, H, I, J, M ethical Threadneedle states the investment objective is to achieve a high level of income. The investment policy is to invest primarily in fixed interest investments in the UK and Continental Europe. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, M, N Artemis states the objective of the fund is to achieve a rising income combined with capital growth from a portfolio primarily made up of investments in the United Kingdom. The Manager actively manages the portfolio in order to achieve the objective with exposure to ordinary shares, preference shares, convertibles and fixed interest. The Manager will not be restricted in respect of choice of investments either by company size or industry, or in terms of the geographical split of the portfolio. The fund may also invest in other transferable, units of collective investment schemes, money market instruments, warrants, cash and near cash, derivatives and forward transactions and other investments to the extent that each is permitted by the Regulations. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M, N 26

27 Fixed Interest funds continued FL Artemis UK Growth FL Artemis UK Special Situations Artemis states the objective of the fund is to achieve long-term capital growth. The emphasis of the fund will be investment in listed, quoted and/or traded in the UK and in which are headquartered or have a significant part of their activities in the UK which are quoted on a regulated market outside the UK. The Manager actively manages the portfolio in order to achieve the objective and will not be restricted in respect of choice of investments either by company size or industry. The of listed, quoted and/or traded in the UK but domiciled elsewhere and the of traded on PLUS may be included in the portfolio. The fund may also invest in other transferable, units of collective investment schemes, money market instruments, warrants, cash and near cash, derivatives and forward transactions and other investments to the extent that each is permitted by the Regulations. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, J, M Artemis states the objective of the fund is to achieve long-term capital growth by exploiting special situations. The fund invests principally in UK equities and in which are headquartered or have a significant part of their activities in the UK and are quoted on a regulated market outside the UK. The Manager actively manages the portfolio in order to achieve the objective and will not be restricted in respect of investment either by company size or industry sectors. The of listed, quoted and/or traded in the UK but domiciled elsewhere, and the of traded on PLUS, may be included in the portfolio. The fund may also invest in other transferable, units of collective investment schemes, money market instruments, warrants, cash and near cash, derivatives and forward transactions and other investments to the extent that each is permitted by the Regulations. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, J, M FL Baillie Gifford UK Equity Alpha Baillie Gifford states that the objective of the fund is to achieve total return, before charges and expenses payable out of the fund, in excess of the total return on the FTSE All Share Index, or any successor or substitute index, over the long term. The fund will invest principally in UK and in particular, at least 90% in value of the fund will be generally invested in shares of listed in the FTSE All Share index, or any successor or substitute index. The fund may invest in UK of all sizes and will invest in a concentrated portfolio, typically comprised of between 25 and 35 holdings, of primarily UK equities. Up to (but no more than) 10% in value of the fund may be invested in collective investment schemes and/or deposits. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, G, M 27

28 UK Equity funds FL BlackRock UK Absolute Alpha FL BlackRock UK Dynamic FL BlackRock UK FL BlackRock UK Special Situations BlackRock states the fund seeks to achieve a positive absolute return for investors and, as such, the fund will not be managed against any UK equity index. The fund will seek to achieve this investment objective by taking long positions and using derivatives to take synthetic long and synthetic short investment positions (direct investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction). The fund primarily aims to gain investment exposure to equities and equity-related of, or giving exposure to, incorporated or listed in the UK. In order to gain this exposure, the fund invests primarily in derivatives, equities and equity-related and, when determined appropriate, cash and near cash. The fund may also invest in other transferable, permitted money-market instruments, permitted deposits and units in collective investment schemes. Risk warnings A, B, C, E, G, J, M, P BlackRock states the objective is to achieve long-term capital growth for investors. The fund invests primarily in the shares of incorporated or listed in the UK which BlackRock consider exhibit either growth or value investment characteristics, placing an emphasis as the market outlook warrants. The fund may also invest in collective investment schemes. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M BlackRock states the aim of the fund is to offer investors an above-average and growing income without sacrificing the benefits of long-term capital growth. The fund invests primarily in the shares of incorporated or listed in the UK. The fund may also invest in collective investment schemes. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M BlackRock states the aim of the fund is to achieve long-term capital growth for investors. The fund invests primarily in the shares of incorporated or listed in the UK and will normally have an emphasis on small or medium-sized. The fund may also invest in collective investment schemes. Small and medium-sized are those whose market capitalisation is lower than that of in the FTSE 100 Index at the time of the fund s investment. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M 28

29 UK Equity funds continued FL Fidelity Special Situations FL Henderson Global Equity FL Invesco Perpetual High Acc FL Investec UK Blue Chip Fidelity states the investment objective is to achieve long-term capital growth from a portfolio primarily made up of the shares of UK. The fund will have a blend of investments in larger, medium and smaller sized. The Authorised Corporate or is not restricted in its choice of either by size or industry, and will choose stocks largely determined by the availability of attractive investment opportunities. The fund may also invest in other transferable, units in collective investment schemes, money market instruments, cash and deposits. The fund may use derivatives and forward transactions for investment purposes as well as efficient portfolio management purposes. Risk warnings A, B, C, E, G, J, M Henderson Global Investors states the investment objective is to achieve an income in excess of that of the MCSI World Index with the potential for long-term capital growth. The investment policy is to invest principally in global equities. In addition to ordinary shares, the fund may also invest in fixed interest, preference shares, debt convertible into ordinary stock, money market instruments, cash and near cash and deposits. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M Invesco Perpetual states the fund aims to achieve a high level of income, together with capital growth. The fund intends to invest primarily in listed in the UK, with the balance invested internationally. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, M Investec states the fund aims to achieve long-term capital growth primarily through investment in the equities issued by the constituents of the FTSE 350 Index and in derivatives the underlying assets of which are equities issued by the constituents of the FTSE 350 Index. Blue chip are highly capitalised, well-established with substantial market positions in the sector of the economy in which they operate. The fund may also invest, at the Authorised Corporate or s discretion, in other transferable, cash and near cash (which includes money market instruments and deposits) and other exchange traded and over the counter derivatives and forward transactions for investment purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short-term purposes. Use may be made of stock lending and borrowing and other investment techniques permitted in the Financial Conduct Authority Rules. Furthermore up to 5% in value of the of this fund may be invested in units or shares in other collective investment schemes. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, J, M 29

30 UK Equity funds continued FL Investec UK Companies FL Jupiter FL Kames Ethical Equity FL Lazard UK Investec states the fund aims to achieve long-term capital growth primarily through investment in equities issued by UK smaller and in derivatives the underlying assets of which are equities issued by UK smaller. UK Companies are those that are constituents of the Hoare Govett Small Cap plus AIM (excluding Investment Trusts) Index. The mix of industries and economic sensitivities are driven by different dynamics leading to performance that is often uncorrelated with the large capitalisation market. The fund may also invest, at the Authorised Corporate or s discretion, in other transferable, cash and near cash (which includes money market instruments and deposits) and other exchange traded and over the counter derivatives and forward transactions for investment purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short-term purposes. Use may be made of stock lending and borrowing and other investment techniques permitted in the Financial Conduct Authority Rules. Furthermore up to 5% in value of the of this fund may be invested in units or shares in other collective investment schemes. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, J, M Jupiter states the objective of the fund is to produce a high income, increasing at least in line with inflation, from a managed portfolio chiefly invested in UK equities and fixed interest stocks, although with some overseas exposure. The investment policy is to invest principally in the UK in high quality with above average income and sound prospects. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, M Kames Capital states the primary investment objective is to maximise total return by investment in equities and equity type in based in the UK, principally conducting business in the UK or listed on the UK stock market which meet the fund s predefined ethical criteria. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, I, J, M, P ethical Lazard states the investment objective of the fund is to achieve a reasonable level of income combined with capital growth from a portfolio of primarily made up of equity investments listed in the United Kingdom. Lazard states the investment policy is to invest primarily in equity investments listed in the United Kingdom. The fund will not be restricted in respect of choice of investments by company size or industry, and up to a maximum of 20% of the fund may be invested in equities listed outside the United Kingdom and in other, either listed in the United Kingdom or listed on other exchanges outside the United Kingdom, including but not limited to preference shares, convertibles, fixed income or shares in listed open and closed ended funds. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, M 30

31 UK Equity funds continued FL M&G Recovery FL Old Mutual UK Select Mid Cap FL Schroder FL Schroder UK Alpha Plus FL Schroder UK Companies M&G states the fund s sole aim is capital growth by investing predominantly in a diversified range of issued by which are out of favour, in difficulty or whose future prospects are not fully recognised by the market. There is no particular income yield target. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, I, P Old Mutual states the investment objective and policy is to provide capital growth from investing primarily in a portfolio of medium-sized UK. Medium-sized are defined for this purpose as those that are members of the FTSE Mid 250 Index. Typically at least 80% of the invested assets will be held in meeting this definition. Liquidity will under normal circumstances not exceed 10% of the value of the holding of the fund. Subject to the regulations, the of the fund may include transferable ; units in collective investment schemes, warrants, money market instruments, deposits and derivatives. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, J, M, P Schroder states the fund s investment objective is to provide a growing income, predominantly from investment in UK equities. In seeking a yield higher than that offered by the major UK equity indices, the fund will invest primarily in above-average yielding equities rather than fixed interest. Investment will be in directly held transferable. The fund may also invest in collective investment schemes, warrants and money market instruments. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, M Schroder states the fund s investment objective is to provide capital growth through investment in UK and other. In order to achieve the objective the manager will invest in a focused portfolio of. The emphasis of the fund will be investment in UK. The fund may also invest in headquartered or quoted outside the UK where those have material or critical operations within, or derive significant business from, the UK. may be included in the portfolio. Investment will be in directly held transferable. The fund may also invest in collective investment schemes, warrants and money market instruments. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, M Schroder states the fund s investment objective is to achieve capital growth by investing in UK smaller. The policy is to invest in smaller in the UK which are expected to exhibit superior growth over the long term. Investment will be in directly held transferable. The fund may also invest in collective investment schemes, warrants and money market instruments. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, G, H, M 31

32 UK Equity funds continued FL Stewardship FL Stewardship FL UK Equity FL UK Equity Inc FL UK Index Tracking The fund provides an investment medium for people who do not regard financial gain as the sole criterion for investment but look to wider issues. concentrated in UK whose products and operations are considered to be of long-term benefit to the community both at home and abroad, with the aim of achieving long-term capital growth and increasing income, with the emphasis on capital growth. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, E, G, I, M, O, P ethical The fund s investment is concentrated in UK whose products and operations are considered to be of long-term benefit to the community both at home and abroad, and will generally exclude those considered to be involved with harmful products and practices or which trade extensively with oppressive regimes. Securities are chosen with the aim of achieving an above average and increasing income with the prospect of capital growth. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, I, M, O, P ethical The fund aims to achieve capital growth by mainly investing in UK listed equities. It may also invest in other equities, warrants, convertibles, derivatives, money market instruments, cash and near cash assets such as deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, G, J The fund aims to provide a yield significantly higher than that offered by the major UK equity indices with some long-term capital growth. The fund manager will achieve this higher income by investing in equities with an above average yield rather than investing in fixed interest. The fund may invest up to 10% of the portfolio overseas and may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, E, G, M, P The fund invests in the UK in all economic sectors and aims to track the capital growth of the UK ordinary share market as represented by the FTSE All-Share Index. It is intended that this will be achieved by statistical sampling of the Index. The fund may use traded options and other derivative products in accordance with the relevant regulations. The fund may invest indirectly through other permitted investment vehicles. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, M 32

33 UK Equity funds continued FL Aberdeen European Frontiers FL Aberdeen Multi-Manager Constellation FL Allianz BRIC Stars FL Aviva Investors Sustainable Future European Growth Aberdeen states the investment objective and policy of the fund is to achieve long-term capital growth primarily in of developing European countries, although the fund may also invest in of other European countries. The fund may invest in investment trusts and collective investments schemes which themselves concentrate on investments in such countries, as well as of which, whilst listed on established stock exchanges worldwide, conduct a significant proportion of their business in these countries. The Authorised Corporate or s policy is not to generally employ derivatives in equity portfolios, although the fund may use derivatives for efficient portfolio management and hedging. Risk warnings A, B, C, E, F, G, M Aberdeen states the investment objective of the fund is to achieve capital growth. The investment policy is to invest primarily in shares or units of collective investment schemes managed by judged to be boutique in nature. The fund may also invest directly in other collective investment schemes and transferable, money market instruments, near cash, cash and deposits. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, H, M Allianz states the fund aims to achieve capital growth in the long term by investing mainly in the equity of Brazil, Russia, India and China, known as BRIC countries. The Authorised Corporate or (ACD) will invest at least two thirds of the fund s assets in equities and equivalent to equities (e.g. American Depositary Receipts, Global Depositary Receipts) issued by that have their registered office in Brazil, the Russian Federation, India or China, or which generate a significant proportion of their sales and/or earnings in BRIC countries. Up to one third of the fund s assets may be invested outside the BRIC countries including developed economies and/or other emerging. The ACD may also utilise deposits in the management of the portfolio. The fund may also invest in collective investment schemes. Money Market instruments may be acquired and their value, together with money market funds, may make up to a maximum of 20% of the fund s assets. Subject to any constraints imposed by the regulations of the Financial Conduct Authority, exceeding the above limits or failing to reach them is permitted if the overall market risk remains within the limits set out above. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, M Aviva Investors states the investment objective of the fund is to provide long-term capital appreciation. The Manager s policy is diversified investment principally within and across European equity. Equity selections will be based on price and long-term total return prospects. Limited investment in European bond may be made from time to time. All investments will be expected to conform to our social and environmental criteria. The fund may invest in any of the following financial instruments in order to achieve its investment objective: transferable, money market instruments, units in collective investment schemes, deposits and derivatives and forward transactions. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, I, J, M, P ethical and engagement 33

34 International Equity funds FL Baillie Gifford Global FL BlackRock Gold and General FL BlackRock US Dynamic FL European FL F&C Global Climate Opportunities Baillie Gifford states the investment objective is to obtain a yield higher than generally available from investment in global equities whilst, over the longer term, achieving growth in both capital and income. The investment policy is to invest principally in equities worldwide. The fund may also invest in convertibles and fixed and floating rate debt instruments from time to time. Up to (but no more than) 10% in value of the fund may be invested in each of the following: collective investment schemes and deposits. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M BlackRock states this fund aims to achieve long-term capital growth from an actively-managed portfolio of gold mining, commodity and precious metal related shares. The fund may also invest in collective investment schemes. BlackRock warns mining shares typically experience above average volatility when compared to other investments. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, H, I, M BlackRock states the aim of the fund is to achieve long-term capital growth for investors. The fund invests primarily in the shares of incorporated or listed in the United States which BlackRock consider exhibit either growth or value investment characteristics, placing an emphasis as the market outlook warrants. The fund may also invest in collective investment schemes. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M The fund aims for capital growth by investing in any European stockmarket except the UK. Although the bulk of investment will take place in the major, the fund manager believes that the smaller also offer interesting opportunities from time to time and should be represented in the fund. The fund mainly invests in equities, but there may be periods when European fixed interest are an attractive investment for part of the portfolio. The fund may invest indirectly through other permitted investment vehicles. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, E, F, G, H, M, P F&C states the fund aims to achieve long-term capital appreciation by investing at least two thirds of its total assets in equities and equity related (excluding convertible bonds and bonds with warrants) of, which have substantial activities that fall within technologies or strategies that include: alternative energy, energy efficiency, sustainable mobility, waste, advanced materials, forestry and agriculture, water, acclimatisation and support services. The fund may also hold investments in that have a clearly stated strategy to move from one business area to a business that is predominantly in a domain as described above. The fund may hold, on an ancillary basis, cash and short-term fixed interest, should this be considered to be appropriate at any particular time. In addition to equity and equity-related, the fund may also invest in warrants on transferable. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, H, I, M green and engagement 34

35 International Equity funds continued FL F&C Latin American Equity F&C states the investment objective is to provide long-term capital growth through investment, directly or indirectly, in Latin American. The fund will invest at least two thirds of its total assets in equity and equity-linked (excluding convertible bonds and bonds with warrants), of that are incorporated under the laws of a Latin American country, or admitted to or dealt in on an Eligible Market in Latin America, or that derive a predominant part of their economic activity from Latin American countries, even if listed or negotiated elsewhere. The fund may also invest up to one third of its total assets in other. It may hold convertible bonds, bonds with warrants and warrants on transferable. It may, on an ancillary basis, hold cash and short-term fixed interest, should this be considered to be appropriate at any particular time. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, H FL Fidelity European FL Fidelity WealthBuilder FL First State Asia Pacific Leaders Fidelity states the investment objective is to achieve long-term capital growth from a portfolio primarily made up of the shares of continental European. The portfolio is likely to have a bias towards medium-sized and smaller. However, the Authorised Corporate or is not restricted in the choice of company either by size or industry, or in terms of the geographical split of the portfolio, which is largely determined by the availability of attractive investment opportunities rather than the outlook for each market. The fund may invest in derivatives for the purpose of efficient portfolio management. Risk warnings A, B, C, E, F, G, M Fidelity states the fund s investment objective is to achieve long term capital growth by investing primarily in collective investment schemes, including schemes managed by Fidelity in order to obtain exposure to global. The fund may also invest directly in transferable, money market instruments, cash and deposits. Derivatives and forward transactions may also be used for investment purposes. Risk warnings A, B, C, D, E, F, G, H, J, M First State states the investment objective is to achieve long-term capital growth. The investment policy is to invest in large and mid capitalisation equities in the Asia Pacific region (excluding Japan, including Australasia). First State provides clarification by stating the fund will at all times be invested in accordance with its investment policy and therefore at least two thirds of the fund s total assets will at all times be invested in equities and equity type issued by large and mid capitalisation which are established or having a predominant part of their economic activities in the Asia Pacific region (excluding Japan, including Australasia). Large and mid capitalisation typically refers to equities with a minimum market capitalisation of US$1 billion and a minimum free float of US$500 million. Australasia refers to Australia, New Zealand and other South East Asian countries. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, M 35

36 International Equity funds continued FL First State Global Markets Leaders First State states the investment objective is to achieve long-term capital growth. The investment policy is to invest worldwide in large and mid capitalisation equities in emerging economies, including those of listed on developed market exchanges whose activities predominantly take place in emerging market countries. First State provides clarification by stating the fund will at all times be invested in accordance with its investment policy and therefore at least two thirds of the fund s total assets will at all times be invested worldwide in equities and equity type issued by large and mid capitalisation incorporated in emerging economies or having a predominant part of their activities in emerging economies. Large and mid capitalisation typically refers to equities with a minimum market capitalisation of US$1 billion and a minimum free float of US$500 million. economies are defined as economies which are included in the MSCI Markets Free Index or which are categorised by the World Bank as middle or low income or which are not members of the Organisation for Economic Co-operation and Development. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, M FL Global Equity FL Henderson China Opportunities The fund aims to achieve capital growth by mainly investing in listed global equities. It may also invest in other equities, convertibles, warrants, derivatives, money market instruments, cash and near cash assets, such as deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, E, F, G, J Henderson states the fund aims to achieve a long-term return, in excess of the longterm return that is typically achieved from investments in Hong Kong and Chinese equity, by investing in having their registered office in Hong Kong or China, or that do not have their registered office in Hong Kong or China but either (i) carry out a predominant proportion of their business activity in these, or (ii) are holding which predominantly own with registered offices in Hong Kong or China. The fund may also invest in American Depositary Receipts ( ADRs ) investing in issued by incorporated in Hong Kong or China or in any similar listed of Hong Kong or Chinese. The return will be a combination of capital and income returns. The fund may also invest at the Manager s discretion in other transferable, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stocklending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable Financial Conduct Authority Rules). investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, J, M, P 36

37 International Equity funds continued FL Henderson Markets Opportunities FL Henderson European Growth FL Impax Environmental Markets FL Invesco Perpetual Asian Henderson states the fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from emerging equity, by investing predominantly in having their registered office in emerging, or that do not have their registered office in emerging but either (i) carry out a predominant proportion of their business activity in these, or (ii) are holding which predominantly own with registered offices in emerging. In this context, the term emerging means countries included in the MSCI World Markets Index and/or those included in the World Bank definition of developing economies or those countries which are, in the Investment Manager's opinion, developing countries. The fund may also invest in American Depositary Receipts ('ADRs') investing in issued by incorporated in emerging or in any similar listed of emerging. The return will be a combination of capital and income returns. The fund may also invest at the Manager's discretion in other transferable, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in the stated investment and borrowing powers of the fund)). investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M Henderson Global Investors states the investment objective is to achieve long-term capital growth. The investment policy is to invest principally in the of European. In addition to ordinary shares, the fund may also invest in preference shares, debt convertible into ordinary stocks and shares, money market instruments, deposits and any other permitted asset type deemed appropriate to meet the investment objective. The fund may also invest outside of Europe if the investment adviser believes that it is in the interest of the fund. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, M Impax states the investment objective of the fund is to enable investors to benefit from rapid and sustained growth anticipated by the Investment Manager in the for cleaner or more efficient delivery of basic services of energy, water and waste. The fund aims to achieve its objective by making investments predominantly in quoted which provide, utilise, implement or advise upon technology-based systems, products or services in environmental, particularly those of alternative energy and energy efficiency, water treatment and pollution control, and waste technology and resource management. Risk warnings A, B, C, E, F, G, H, I green Invesco Perpetual states the fund aims to achieve capital growth in Asia and Australasia, excluding Japan. The fund intends to invest primarily in shares of in Asia and Australasia (excluding Japan), although it may include other Asian and Australasian related investments. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, M 37

38 International Equity funds continued FL Invesco Perpetual Japan Invesco Perpetual states the fund aims to achieve capital growth in Japan. The fund intends to invest primarily in shares of in Japan, although it may include other Japanese related investments. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M FL Investec American FL Investment Trust Portfolio FL JPM Japan FL JPM Natural Resources Investec states the fund aims to achieve long-term capital growth primarily through investment in a portfolio of equities issued by USA and in derivatives the underlying assets of which are equities issued by USA. At least two thirds of the fund s total assets will be in equities issued by USA and in derivatives the underlying assets of which are equities issued by USA for investment purposes in order to meet the investment objectives of the fund and/or efficient portfolio management purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short term purposes. Up to one third of the fund s total assets could be in cash and near cash (which includes money market instruments and deposits) denominated in a freely convertible currency, other derivatives, other transferable and units or shares in other collective investment schemes, although only up to 5% of the fund could be held in collective investment schemes. Furthermore, use may be made of stock lending and borrowing and other investment techniques permitted in the Financial Conduct Authority Rules. Risk warnings A, B, C, E, G, H, J, M The fund aims to produce capital growth by mainly investing in UK listed closed end investment. It may also invest in equities, warrants, convertibles, derivatives, money market instruments, cash and near cash assets such as deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, E, F, G, J JPMorgan states the investment objective and policy is to provide capital growth over the long term by investing primarily in the shares of Japanese. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M JPMorgan states the investment objective and policy of the fund is to invest primarily in the shares of throughout the world engaged in the production and marketing of commodities. The fund aims to provide capital growth over the long term. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, I, M 38

39 International Equity funds continued FL Jupiter Ecology FL Jupiter European Opportunities Jupiter states the objective of the fund is to achieve long-term capital appreciation together with a growing income consistent with a policy of protecting the environment. The investment policy is to invest worldwide in which demonstrate a positive commitment to the long-term protection of the environment. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, I, M, P ethical, green and engagement Jupiter states the objective of the fund is to achieve long-term capital growth through investment primarily in Central and Eastern Europe. The investment policy is to invest primarily in which operate or reside in Central or Eastern Europe including Russia, the Baltic States, all other member states of the former USSR and Turkey. The fund may also invest in shares in investment trusts and other closed or open ended funds which are themselves dedicated to investments in the and countries listed above. The fund shall be free to invest in which are established in countries outside those identified above which, in the Manager s opinion, conduct a material proportion of their business in one or more of those countries and, in any event, the fund shall be permitted to invest an aggregate of up to 10% of its total assets at the time of investment in which do not necessarily conduct a material proportion of their business in one or more of those countries but which reside in Israel, Uzbekistan, Turkmenistan, Tajikistan and Kyrgyzstan. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, M FL Lazard European Alpha FL M&G American FL M&G Global Basics Lazard states the investment objective of the fund is to achieve capital growth at a rate greater than that of the FTA World Europe ex-uk Index, measured in Sterling. In its investment policy Lazard states the fund will consist of actively managed investments in equity, equity-related and debt-related issues of continental European. The Authorised Corporate or will select investments by a combination of identifying attractive and selecting individual stock in all the of Continental Europe. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, M M&G states the fund s aim is long-term capital growth through investment wholly or mainly in of North American (including Canadian) issuers. When not wholly invested as above, it may only invest in which are listed, registered or within North America. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M M&G states the fund s sole aim is long-term capital growth. The fund is a global equity fund which invests wholly or mainly in operating in basic industries ( primary and secondary industries) and also in that service these industries. The fund may also invest in other global equities. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, I, M 39

40 International Equity funds continued FL Martin Currie North American FL Neptune European Opportunities FL Neptune Global Equity FL Newton Global Higher Martin Currie states the fund s objective is to produce capital growth by investment in the United States of America and Canada. The portfolio will consist primarily of transferable but the investment manager may also invest in units in collective investment schemes, money-market instruments, derivatives and forward transactions, deposits, nil and partly paid, bonds, convertible bonds, cash and near cash as deemed economically appropriate, to meet the fund s objective. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, J, M Neptune states the investment objective of the fund is to generate capital growth by investing predominantly in a concentrated portfolio of selected from European, excluding the UK, with a view to attaining top quartile performance within the appropriate peer group. Other eligible asset classes may include collective investment schemes, other transferable, cash or near cash, deposits and money market instruments. It is anticipated that derivatives instruments and forward transactions may be used by Neptune for efficient portfolio management. It is the intention to be near-fully invested at all times, however, the funds have the facility to take tactical positions in cash or near cash should Neptune feel it appropriate. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M, P Neptune states the investment objective of the fund is to generate capital growth from a concentrated portfolio of global, selected from across world equity, with a view to attaining top quartile performance within the appropriate peer group. This is an international fund but there will be no restrictions in terms of regional allocation. Other eligible asset classes may include collective investment schemes, other transferable, cash or near cash, deposits and money market instruments. It is anticipated that derivatives instruments and forward transactions may be used by Neptune for efficient portfolio management. It is the intention to be near-fully invested at all times, however, the funds have the facility to take tactical positions in cash or near cash should Neptune feel it appropriate. Risk warnings A, B, C, E, F, G, M, P Newton, (a BNY Mellon company), states the objective of the fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global. The fund may also invest in collective investment schemes. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M 40

41 International Equity funds continued FL North American The objective of the fund is capital growth and income from investing mainly in ordinary shares in the US and Canada. The fund will invest in a well-balanced spread of ordinary shares in the US and Canada. The fund may use traded options and other derivative products and may engage in currency hedging activities in accordance with the relevant regulations. The fund may also hold convertible stocks and cash where appropriate. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, M FL Pacific Basin FL Schroder Global Climate Change FL Schroder Tokyo FL Stewardship International The fund aims to achieve capital growth by investing in the Asian and Pacific. The fund invests in two F&C investment funds, the F&C Pacific Growth OEIC and the F&C Japanese Equity SICAV. The fund may also hold cash. Normally the majority of the fund will be invested in the F&C Pacific Growth OEIC, which invests in based or in Asian and Pacific but excludes Japan. Emphasis is placed on less well-developed in the region when open to outside investors. The other main element of the fund, the F&C Japanese Equity SICAV, invests in that are either incorporated in Japan, or a predominant part of their economic activity derives from Japan. Risk warnings A, B, C, E, F, H Schroder states the fund s investment objective is to provide capital growth primarily through investment in equities and of worldwide issuers which will benefit from efforts to accommodate or limit the impact of global climate change. Investment will be primarily in directly held transferable. The fund may also invest in collective investment schemes, cash, deposits, derivatives, warrants and money market instruments. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, F, G, I, J, M green Schroder states the fund s investment objective is to achieve capital appreciation through participation in the growth of the Japanese economy. Investment will be based primarily on Japan s economic strengths, such as its manufacturing industry (in particular on those parts of it that are demonstrating an ability to exploit newly emerging technology) and on sectors benefiting from structural change in the economy. Investment will be in directly held transferable. The fund may also invest in collective investment schemes, warrants and money market instruments. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, M The fund s investment is concentrated in in any market whose products and operations are considered to be making a positive contribution to society and seeks to avoid which, on balance, are felt to be harming the world, its people, or its wildlife. The portfolio is chosen with the aim of achieving long-term capital growth. The fund may invest indirectly through other permitted investment vehicles in accordance with its investment powers. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, E, F, G, I, M ethical 41

42 International Equity funds continued FL Threadneedle Global Select Threadneedle states the investment objective is to achieve above average capital growth. The investment policy is to invest the assets of the fund primarily in equities issued by worldwide. The portfolio may be concentrated geographically or with respect to stock and sector positions, which may lead to increased of volatility. If the Authorised Corporate or considers it desirable, it may further invest in other (including fixed interest, other equities and money market ). Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, M FL Investec Diversified Acc FL Investec Diversified Inc Investec states the fund aims to provide income with the opportunity for long-term capital growth. The will invest in fixed interest instruments and equities, and in derivatives the underlying assets of which are fixed interest instruments and equities in order to benefit from risk reduction through diversification. Investment will be oriented towards fixed interest instruments and may include international as well as UK investments. instruments may be corporate or Government and of any duration and may be investment grade or sub investment grade. The may also invest, at the ACD s1 discretion, in other transferable, cash and near cash (which includes money market instruments and deposits) and other exchange traded and over the counter derivatives and forward transactions for investment purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short-term purposes. Use may be made of stock lending and borrowing and other investment techniques permitted in the COLL Sourcebook2. Furthermore up to 10% in value of the of this may be invested in units or shares in other collective investment schemes. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, G, H, J, M, P Investec states the fund aims to provide income with the opportunity for long-term capital growth. The will invest in fixed interest instruments and equities, and in derivatives the underlying assets of which are fixed interest instruments and equities in order to benefit from risk reduction through diversification. Investment will be oriented towards fixed interest instruments and may include international as well as UK investments. instruments may be corporate or Government and of any duration and may be investment grade or sub investment grade. The may also invest, at the ACD s1 discretion, in other transferable, cash and near cash (which includes money market instruments and deposits) and other exchange traded and over the counter derivatives and forward transactions for investment purposes. Using these investment powers for investment purposes means, in particular, maintaining positions in these investments for the long term rather than just for tactical short-term purposes. Use may be made of stock lending and borrowing and other investment techniques permitted in the COLL Sourcebook2. Furthermore up to 10% in value of the of this may be invested in units or shares in other collective investment schemes. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, E, G, H, J, M, P 42

43 Distribution funds FL Monthly Distribution Acc FL Monthly Distribution Inc The fund aims to provide exposure to a diversified portfolio of assets primarily in order to produce income, with some capital growth. It will mainly be invested in equities and bonds. It may also invest in warrants, convertibles, money market instruments, cash and near cash assets such as deposits and certificates of deposit, commodities, private equity, hedge funds, derivatives, other alternative asset classes and. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, N, O The fund aims to provide exposure to a diversified portfolio of assets primarily in order to produce income, with some capital growth. It will mainly be invested in equities and bonds. It may also invest in warrants, convertibles, money market instruments, cash and near cash assets such as deposits and certificates of deposit, commodities, private equity, hedge funds, derivatives, other alternative asset classes and. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, E, F, G, H, J, N, O 43

44 funds FL Aviva Investors Trust FL Henderson UK FL M&G Portfolio FL Aviva Investors states the investment objective of the fund is to obtain optimum returns compatible with security via income and capital appreciation primarily through investment in certain kinds of real, related, government and other public and units in collective investment schemes. In order to achieve its objectives the fund will primarily invest in: approved immovables which will, initially, be properties within the United Kingdom but the Manager may, in due course, consider it appropriate to invest in real in other countries permitted by the Regulations; transferable, with an emphasis on -related ; government and other public ; and units in regulated and unregulated collective investment schemes. The fund also has maximum flexibility to invest in such other investments which the Manager deems appropriate, including money-market instruments, derivatives and forward transactions, deposits and gold, but subject always to the Regulations. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, I, J, L, M, O, P Henderson Global Investors states the investment objective is to achieve a high income together with some growth of both income and capital. The investment policy is to invest primarily in commercial and related. The fund may also invest in non- related, units in collective investment schemes, money market instruments, deposits, derivatives and forward foreign exchange contracts. Investments in these assets may include exchange traded funds, real estate investment trusts, unregulated collective investment schemes (which may include unauthorised unit trusts and limited partnerships). Whilst the fund will invest primarily in the UK, it may also invest overseas. As the market in derivatives develops, derivatives may be used outside of efficient portfolio management to meet the fund s investment objective. As a result of the fund s investment policy it may mean, at times, that it is not appropriate to be fully invested but instead to hold cash or near cash. Risk warnings A, B, C, D, E, I, J, L, M, O, P M&G states the fund aims to maximise long-term total return (the combination of income and growth of capital) through investment mainly in commercial. The fund invests in a diversified portfolio of commercial mainly in the UK, seeking to add value through strategic asset allocation, stock selection and asset management. The fund may also invest in other related assets, including collective investment schemes,, derivatives and debt instruments, as well as government debt, money market instruments and cash. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, H, I, J, L, M, O, P The fund aims to achieve capital growth and income by investing mainly in UK commercial. The fund may invest in, related such as UK listed equities, derivatives, cash and near cash assets such as bank deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Risk warnings A, B, C, D, I, J, L, O, P 44

45 Protected funds FL Stewardship Safeguard Optimiser Series 1* FL Stewardship Safeguard Optimiser Series 2 FL UK Safeguard Optimiser Series 1* FL UK Safeguard Optimiser Series 2 The fund aims to offer returns from UK equities while providing some protection against market falls. The potential for capital growth comes from investing part of the fund in an ethically-screened equity fund. The balance is mainly invested in a cash fund to help provide the protection. The cash fund invests in money market instruments and other transferable. The amount invested in the equity and cash funds is monitored daily and the balance between them is adjusted depending on market conditions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Please see 'Safeguard protection explained' on the next page. Risk warnings A, B, C, G, H, I, M, P ethical The fund aims to offer returns from UK equities while providing some protection against market falls. The potential for capital growth comes from investing part of the fund in an ethically-screened equity fund. The balance is mainly invested in a cash fund to help provide the protection. The cash fund invests in money market instruments and other transferable. The amount invested in the equity and cash funds is monitored daily and the balance between them is adjusted depending on market conditions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Please see 'Safeguard protection explained' on the next page. Risk warnings A, B, C, G, H, I, M, P ethical The fund aims to offer returns from UK equities while providing some protection against stock market falls. The potential for capital growth comes from investing part of the fund in an equity fund that aims to track the capital growth of the UK ordinary share market as represented by the FTSE All-Share Index. The balance is mainly invested in a cash fund to help provide the protection. The cash fund invests in money market instruments and other transferable. The amount invested in the equity and cash funds is monitored daily and the balance between them is adjusted depending on market conditions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Please see 'Safeguard protection explained' below. Risk warnings A, B, C, G, H, M, P The fund aims to offer returns from UK equities while providing some protection against stock market falls. The potential for capital growth comes from investing part of the fund in an equity fund that aims to track the capital growth of the UK ordinary share market as represented by the FTSE All-Share Index. The balance is mainly invested in a cash fund to help provide the protection. The cash fund invests in money market instruments and other transferable. The amount invested in the equity and cash funds is monitored daily and the balance between them is adjusted depending on market conditions. Any direct investment in derivatives will be for the purpose of efficient portfolio management or risk reduction. Please see 'Safeguard protection explained' below. Risk warnings A, B, C, G, H, M, P * Currently suspended 45

46 Safeguard protection explained: When you invest in unit-linked funds your money buys units. The unit price goes up and down with stock market movements. Unlike most other unit linked funds, the Safeguard Optimiser s have a safeguard price as well as a unit price. The safeguard price indicates the level of protection. When the funds launch the safeguard price is 80% of the original unit price. From then on, whenever the unit price reaches a new high this raises the safeguard price to 80% of the new value rounded down to the nearest 0.1p. The unit price can go up and down daily but the safeguard price can only go up or stay level, except in extreme circumstances. If you decide you want to take your money out and the stock market has been performing well, then you will receive the value at the unit price. But if the stock market s performance has not been so good, and the unit price has fallen below the safeguard price then you have the reassurance, other than in extreme circumstances, that the minimum you ll get back is the value at the safeguard price. Over the longer term, we expect the funds to achieve greater returns than cash-based investments, but less growth than the underlying shares or index, given the safeguard feature. The safeguard price is published on our website www. friendslife.com/customer/fundcentre every day along with the unit price so you can easily keep a track of how your investment is doing Severe stock market falls or extreme volatility may result in the cash content of these funds being far higher than the share content. If the cash content becomes too high (currently 85%), the funds may be suspended to new business. The daily balance between the share content and the cash content is managed on our behalf by Barclays Bank plc. Series 1 funds were suspended to new business on 24 October The funds may be un-suspended if market conditions allow. Series 2 funds were launched on 09 April Extreme Circumstances The Safeguard Optimiser funds are funds. The protection for these funds can be reduced or even removed in the following extreme circumstances where one or more of the following events occur: Barclays Bank plc fails to meet its contractual obligations to the funds, any of the financial institutions involved in the operation of the safeguard mechanism fail to meet their contractual obligations to the funds, a substantial adverse change is made to the tax treatment of the funds, a significant charge, such as a levy made under statutory powers, is imposed on the funds. In these extreme circumstances: the protection would be reduced or even removed altogether, the unit price could fall below the safeguard price, the safeguard price would also be reduced or even removed altogether. Please note The value of your bond can be eroded by product and fund charges. Please see the Key Features of the Wealth Solutions Bond (XINV31/A) and the Wealth Solutions Bond At a Glance (XINV31/Q) documents for more information on charges. Cash s FL Cash The fund aims to provide short-term liquidity by investing in money market instruments, bonds and cash. It may invest in bonds issued or backed by the UK Government as well as commercial paper, cash and near cash assets such as deposits and certificates of deposit. Risk warnings A, B, C, D, H, K 46

47 Other funds FL Aviva Investors Global Balanced FL Aviva Investors Global Cautious Aviva Investors states the investment objective of the fund is to achieve income. The investment policy is to invest in a diversified portfolio of actively managed equities and bonds (including convertible bonds). The fund will also use derivative instruments to generate additional income. The Manager may selectively sell short dated call options over in order to generate additional income by setting target strike prices at which those may be sold in the future. The fund may invest in any of the following financial instruments in order to achieve its investment objective: transferable, units in collective investment schemes, derivatives, including credit default swaps, forward transactions, money market instruments and deposits. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M, P Aviva Investors states the investment objective of the fund is to achieve income. The investment policy is to invest in a diversified portfolio of bonds and also in actively managed equities. The fund will also use derivative instruments to generate additional income. The Manager may selectively sell short dated call options over in order to generate additional income by setting target strike prices at which those may be sold in the future. The fund may invest in any of the following financial instruments in order to achieve its investment objective: transferable, units in collective investment schemes, derivatives and forward transactions, money market instruments and deposits. investment in derivatives will also be for the purpose of efficient portfolio management or risk reduction. Risk warnings A, B, C, D, E, F, G, H, J, M Latest information Next steps The information in this document is accurate as at 31 October 2012, except if indicated differently. For the most up-to-date information please visit If you feel that the Wealth Solutions Bond is the investment opportunity you are looking for, please discuss the options with your financial adviser. They will be able to help you with any questions you may have about the bond and the funds it offers you. Please note your financial adviser may charge you for this advice. If you decide to invest, please read the Key Features of the Wealth Solutions Bond (XINV31/A). 47

48 Understanding Investment Terms This section gives you a definition of some of the financial terms used in this brochure and in the fund description document Assets These are the building blocks in which a fund invests, for example, cash, fixed interest, and shares. Benchmark It is used by fund managers as a standard to measure the overall performance of their funds. managers try to outperform any gains made by their fund s benchmark. Bonds Collective investment scheme Derivatives Developed Efficient Portfolio Management FTSE All-Share Index Futures Gilts Inflation Junk bonds Liquidity Money market These are investments that pay a fixed rate of interest and have a fixed term. They are also known as fixed interest. Companies or governments issue them. Those issued by governments are known as gilts. These are funds that pool investors money and invest on their behalf, for example units trusts and OEICs. This is a general term that is used for futures and options. This term is used for countries whose economies are thought to be the most developed; for example the UK, Germany, the US and Australia. This is a set of standards for prudent management of investment funds. The standards call for economically appropriate transactions that reduce risk, reduce cost, or generate additional capital or income. For example, a currency overlay strategy using derivative instruments could be used to reduce volatility in asset returns resulting from currency fluctuations or be used to take advantage of these fluctuations to gain extra return. This term is used for countries whose economies are in the process of change and industrialisation, where politics matters as least as much as economics to the ; for example, China and India. These provide regular, fixed interest payments and are issued by and governments. They include gilts and bonds. This is an index on the London Stock Exchange (or Stock Market) of all UK listed. The FTSE All-Share Index incorporates from the FTSE 100, FTSE 250 and FTSE Small Cap indices. These are agreements to buy and sell a fixed amount of a particular asset at a fixed future price and date. Bonds issued by governments. This is a general rise in the level of prices for services and goods on the high street. Inflation is measured by the Retail Index. Any savings will need to match or exceed this rate in order to keep their value. These have a high risk that the company issuing the bonds might not be able to repay them. A liquid investment is one that you can buy or sell easily and quickly. A cash investment is designed to have a high level of liquidity. The money market is made up of financial institutions and dealers in money or credit who wish to either lend or borrow. It is a section of the fixed income market and is part of the global financial market. It is used for short-term cash solutions, often by governments and large institutions. 48

49 Money market funds Money Market (or instruments) OEICs Options Portfolio Retail Index Return Risk Sectors Securities Shares Underlying fund Units Unit price Unit trusts Volatility Yield These are funds that invest in cash investments, such as bank deposits. They are often referred to as cash funds. These are issued by governments, financial institutions, and large corporations and are considered to be safer investments because they are more liquid. Money market offer lower returns than most because they are extremely conservative. Open-ended investment are collective investments which enable individuals to pool their money into a fund which is then invested in a wide spread of real assets. They are very similar to unit trusts, but are set up as rather than trusts. The equivalent of a unit in an OEIC is known as a share. These provide the opportunity, or a right (but not an obligation) for the buyer to purchase or sell a certain number of shares, at a future date and a known price. This term refers to investment holdings, either within a particular fund or the range of investments held by an individual investor. The Retail Index (RPI) is the most familiar general purpose measure of inflation in the UK. See Inflation for further information. This is the amount of income, capital growth or both that is generated by an investment. The return is what you might expect to get back on your investments. This relates to how much risk you are prepared to take with your money. Generally the more risk you take, the higher the potential gain, but the more likely it is that you could lose some or all of your capital. Your attitude to risk or risk profile may depend on your financial circumstances, as some people are able or willing to take more risk than others. s are divided into a variety of categories known as sectors, to keep together funds of a similar type so that investors can compare funds with similar objectives and investment strategies. This can be based on areas of the world, or in a particular industry. This is another name for investments such as stocks, shares and bonds. This is the name given to a part of a company owned by an investor who has bought shares in a company. It is also used to describe the OEIC equivalent of a unit. A fund run by an external fund manager in which a Friends Life fund invests. A Friends Life investor is allocated units in a Friends Life fund and Friends Life will invest directly into the external fund. Whenever you make a contribution to a fund you but units in the fund. A unit is essentially a stake in the fund. This is the price paid for units purchased in, or sold from an investment fund. These are similar to OEICs where the investors pool their contributions with others, which combine to form a large fund. The fund invests in a spread of different assets to help minimise the risk of loss. These are also known as collective/pooled investments or investment funds. This is the relative rate at which the price of an investment moves up and down. If the price of an investment moves up and down rapidly over short periods of time, it has high volatility. This can be used as a measure of risk. The amount of income generated by a fund s investments in relation to the price. You can also find helpful definitions on the Money Advice Service website If you feel you would like advice, you can pay for financial advice from a financial adviser. If you don t have a financial adviser, you can find out details of financial advisers in your area by visiting 49

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52 Friends Life Limited An incorporated company limited by shares and registered in England and Wales number Registered Office: Pixham End, Dorking, Surrey RH4 1QA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Telephone calls may be recorded. Friends Life is a registered trade mark of the Friends Life group. XINV31/E (42985)