UNIT TRUSTS. Reminder of important facts. Unit Trusts

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1 UNIT TRUSTS Reminder of important facts Unit Trusts

2 What is a Unit Trust? A Unit Trust is designed to provide you with easy access to a variety of investments, from the UK and overseas, such as shares, corporate bonds and government gilts. These investments are packaged into different funds and are actively managed on your behalf to ensure that they meet the funds investment goals. The investment goals will vary from fund to fund and may for example: (i) aim to maximise investment growth over time OR (ii) aim to provide you with a consistent level of income. If your Unit Trust is part of an Individual Savings Account (ISA) then your investment is tax efficient. Units Every investment you make purchases a number of units in a fund. The unit price will change as the value of the investments change. At any time, the value of your fund is your total number of units held multiplied by the current unit price. Unit prices can be found in the Financial Times and Scotsman newspapers, or at myisa.royallondongroup.co.uk Where your money is invested Where your money is invested depends on which funds you chose: most of our funds are invested in shares some funds are invested in less risky Corporate Bonds and Government Gilts your fund may be invested in particular geographical regions such as the US or Europe. To help reduce your risk and to benefit from diversification, you can spread your investments across a number of our funds. You may wish to ensure that the portfolio of funds you choose reflects your investment objectives and risk profile. For all funds, your returns may go up or down and you may get back less than you invested. You should refer to the latest monthly fund fact sheets for more information about each of the funds. These are available to you at myisa.royallondongroup.co.uk or on request via our Customer Contact Centre on Responsible investing All our funds benefit from our Responsible Shareholding Programme, whilst the CIS Sustainable Diversified, CIS Sustainable World and CIS Sustainable Leaders Trusts also follow our sustainable investing approach based on key investment themes. 2

3 Fund switches You can choose to change the funds you invest in AND which funds any future contributions are to be invested in (conditions apply if you wish to switch to Class B, C or D Units). Income or distributions For some funds you have the option to take a regular investment income rather than us automatically reinvesting your investment returns for you. If you decide to take this option then your investment will not grow as quickly as if you had chosen to reinvest the income. If you choose to reinvest your income then we will automatically allocate this to your investment. You can ask us to change how your distributions are dealt with at any time. Taking your money You can cash in part or all of your investment at any time. However, withdrawing money will reduce the overall value of your investment. Please note that our minimum withdrawal is 250. If your investment is part of an ISA then you should remember that the proceeds are free from both Income Tax and Capital Gains Tax. Additional investments You can make additional investments at any time. However, please note that there are limits on how much you can invest into an ISA in any tax year. You can still invest anything over this amount by investing outside the ISA wrapper. confirmation of your purchase/instruction will include a Cancellation Notice; you will then have 30 days in which to inform us of your wish to change your mind. The minimum single premium increase is 500 and the minimum regular premium increase is 25 per month. Payment holidays If making regular contributions you can take a payment holiday for up to a total of two months in any 12-month period. Additional information This guide is intended to be a concise reminder of the main features of the product you have purchased. We supplied a contract for the product to you when you made your purchase and you should refer to this and any contract endorsement which we may have sent you for full information. In the event of conflict between this guide and any contract, the contract will prevail. You may inspect the registers of unitholders in the funds at: Royal London 5th Floor Churchgate House 56 Oxford Street Manchester M1 6EU The investment adviser of the funds is Royal London Asset Management Limited, one of the Royal London group of companies. The documentation you receive as 3

4 The auditor of the funds is PricewaterhouseCoopers LLP, who audit other Royal London funds. The administration of the funds is provided by HSBC Bank PLC, who provide similar services to other Royal London funds. Updates to Our Terms and Conditions Compensation in the event of insolvency We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. This depends upon the type of business and the circumstances of the claim. Investments The maximum level of compensation you can receive from the FSCS for an investment business claim is 100% of the first 50,000 per person. Client Money Any cash held in your account will be held separately from cash belonging to us. The banks we use acknowledge your money is held as client money which is protected in the event of the insolvency of RLUM (CIS) Ltd. In the event of the insolvency of one of the banks we use, any client money we hold for you is protected under the Financial Services Compensation Scheme (FSCS) up to a maximum of 85,000 for each client and bank with whom client money is held. This limit is applied to banks that are separately authorised and can only be applied once, therefore banks operating under different brands within the same authorisation are covered under the same limitation. The compensation limit of 85,000 includes any other money held by you in accounts with the authorised banks we use, therefore if you have current or deposit accounts with the same bank these will all count towards the compensation limit of 85,000. For further information visit fscs.org.uk 4

5 Our client money arrangements for ISA and unit trust investors RLUM (CIS) Ltd maintain separate client money accounts with third party banks outside of The Royal London Group. We use the Delivery versus Payment* (DvP) exemption to process payments when units are purchased until your money is cleared through the normal banking process, during which time the money is not protected as client money. Any request to withdraw your money will be held as client money whilst we process your instruction and will remain so until you present your cheque at your bank. Funds held in such client money accounts are held on trust and segregated from our own funds (see also the section headed Compensation in the event of insolvency). Interest is not paid on any money held in this way. Our New Address: If you need to write to us, then our new address is: Royal London 5th Floor Churchgate House 56 Oxford Street Manchester M1 6EU If you need more information, contact our Customer Contact Centre myisa.royallondongroup.co.uk (*DvP or delivery versus payment, describes the process whereby money is held temporarily outside of client money whilst investment instructions are processed and the money is cleared for payment by the bank.) Full details of our terms and conditions can be found in our Supplementary Information Document (SID). A copy of the document can be found by visiting our website myisa.royallondongroup.co.uk or by requesting one by calling us on

6 If you would like a copy of this leaflet in large print, audio or Braille, please call us on Royal London 5th Floor, Churchgate House, 56 Oxford Street, Manchester, M1 6EU royallondon.com RLUM (CIS) Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number Registered office: 55 Gracechurch Street, London, EC3V 0RL. MKT2619_RL 03/2015