Fund Performance. It s all about choice.

Transcription

1 Fud Performace. It s all about choice. Stakeholder Pesios

2 A Scottish Widows Stakeholder pesio is a way of savig for retiremet. Your pesio caot ormally be accessed util you reach age 50. From 6 April 2010, the miimum age at which you ca ormally start takig your pesio will icrease from age 50 to 55. We offer a wide rage of fuds to suit your chagig lifestyle, to help you to esure your pesio cotiues to reflect your goals. You ca choose to ivest i up to te fuds ad switch betwee them, curretly at o extra cost, but there may be restrictios o the amout you ca ivest i some fuds. We may chage the selectio of fuds that we make available. We reserve the right to delay the date of ay switch betwee ivestmet fuds. The period of the delay will be ot more tha six moths if the uits to be cacelled iclude uits which relate to a fud which holds directly or idirectly assets i the form of real or heritable property. It will ot be more tha oe moth i all other cases. For those who d prefer ot to make the choice of ivestmet fud themselves, we have a default fud called the Cosesus Fud, which may be suitable for your ivestmet eeds. The aual maagemet charge for settig up ad admiisterig your pesio is the same for all fuds. It will be o more tha 1% of the value of your fud each year ad is automatically reflected i our daily uit prices. The price used to purchase uits is ormally calculated each workig day ad is the price for the day after your paymet is received by us. Uit prices for all our pesio fuds are quoted daily i the Fiacial Times. The Scottish Widows uit-liked fuds aim to provide log-term growth i the price of uits. This is geerated by a combiatio of capital growth as well as icome that is added to the fud. A proportio of each uit-liked fud may be held i cash to provide liquidity or while awaitig suitable ivestmets. The Scottish Widows uit-liked fuds ca ivest i other uit-liked fuds or i collective ivestmet schemes (for example Ope Eded Ivestmet Compaies (OEICs)) to achieve exposure to meet the stated fud aims. To keep you fully iformed about your pla, a statemet showig how your fud is performig will be set to you aually. We will automatically switch the fuds you have built up approximately 75% ito the Pesio Protector Fud ad 25% ito the Cash Fud over the 5 years before your selected retiremet date. Alteratively, you may be able to select lifestyle switchig. Please see our leaflet o Lifestyle Switchig. 1

3 Fud risks Sice fud choice is such a importat decisio, it is worth while uderstadig the risks associated with this. Some of the fuds have specific warigs which you should be aware of, ad there are some more geeral risks which affect may of the fuds we offer. These geeral risks are detailed below. The value of a ivestmet is ot guarateed ad ca go up ad dow depedig o ivestmet performace (ad currecy exchage rates where a fud ivests overseas). Where ay of these geeral risks apply to a fud, this will be idicated beside the details of the relevat fud i the ext sectio of this Guide where you ca also read about the specific risks associated with each fud. UITIES Ivestig i equities geerally has the potetial for higher capital growth over the log-term tha ivestig i, say, fixed-iterest securities. However, there might be cosiderable fluctuatios i equity prices ad there is a greater risk that the value of the ivestmet will fall. XED-INTEREST Some of the compaies ad govermets that we ivest i who issue fixed-iterest securities might ot be able to meet their paymets, or their credit ratig might fall. If they do t meet their paymets, or their credit ratig falls, the value of your ivestmet will fall. Fluctuatios i iterest rates are likely to affect the value of the fixed-iterest securities held by the fud. If log-term iterest rates rise, the value of your ivestmet is likely to fall ad vice versa. OVERSEAS Exchage rate chages might cause the value of ay overseas ivestmets held to go up or dow. 2

4 Goig places. Which fuds would suit you best? Scottish Widows Ivestmet Partership Fuds The followig should be read i cojuctio with the Importat Notes which you will fid at the ed of this sectio. CAUTIOUS CASH FUND The fud aims to provide log-term growth cosistet with high levels of capital security by ivestig maily i short-term securities. CAUTIOUS CORPORATE BOND FUND The fud aims to achieve log-term growth by ivestig primarily i high quality ivestmet grade corporate bods ad other fixed-iterest securities issued by compaies i the UK ad Europe. More tha 35% may be ivested i fixed-iterest govermet or public securities issued by a sigle issuer. There could be risk, for example, if they ca t repay the amout borrowed. If they do t repay, the value of the fud will fall. CAUTIOUS CAUTIOUS CAUTIOUS XED-INTEREST FUND PENSION PROTECTOR FUND UK XED-INTEREST TRACKER FUND The fud aims to achieve log-term growth by ivestig maily i UK fixed-iterest securities. The fud may also ivest i overseas fixediterest securities. This fud has a Cautious approach whe used for ivestmet approachig retiremet. The fud may be suitable for ivestors withi 5 years of their iteded retiremet age who ited to purchase a covetioal pesio auity. The fud ivests maily i log-dated UK fixed-iterest securities. The prices of these are oe of the key factors affectig the cost of buyig a pesio ad so ay ivestmet i the fud should rise ad fall broadly i lie with chages i the cost of buyig such a pesio i retiremet. The fud does ot provide ay guaratee of the level of pesio i retiremet or the cost of buyig that pesio. It may ot be effective for those who ited to buy a iflatio-liked pesio ad does ot provide protectio agaist chages i the cost of buyig a pesio that arise from chages i life expectacy. The fud aims to achieve log-term growth by ivestig i a portfolio that aims to track the performace of the UK fixed-iterest market as represeted by the FTSE-A UK Gilts All Stocks Idex. The fud will ivest maily i UK Govermet fixed-iterest securities. More tha 35% may be ivested i fixed-iterest govermet or public securities issued by a sigle issuer. There could be risk, for example, if they ca t repay the amout borrowed. If they do t repay, the value of the fud will fall. More tha 35% may be ivested i fixed-iterest govermet or public securities issued by a sigle issuer. There could be risk, for example, if they ca t repay the amout borrowed. If they do t repay, the value of the fud will fall. More tha 35% may be ivested i fixed-iterest govermet or public securities issued by a sigle issuer. There could be risk, for example, if they ca t repay the amout borrowed. If they do t repay, the value of the fud will fall. 3

5 BALANCED SAFETYPLUS FUND The fud aims to achieve log-term growth by ivestig maily i shares of compaies icluded i the FTSE 100 Idex. It uses part of the potetial retur to provide protectio agaist large stockmarket falls. A Safety Price is set from time to time (usually yearly), at 95% of the uit price at the time, ad provides a miimum price if you sell uits durig the relevat Safety Period. The SafetyPlus fud is ot a guarateed fud, although it does offer limited risk, as well as growth potetial. The value of uits i the fud may chage o a daily basis ad may fall as well as rise. The techiques we use to provide the Safety Price icur a cost. The effect of this cost is that, i the log-term, growth is likely to be lower tha would be achieved without the protectio of the Safety Price. The Safety Price is guarateed curretly by a small umber of major fiacial istitutios ad is depedet o each of these third parties meetig its obligatios. BALANCED STRATEGIC INCOME BOND FUND The fud aims to achieve log-term growth by ivestig primarily i UK ad Europea corporate bods ad other fixed-iterest securities. The majority of securities will be high quality, ivestmet grade but a sigificat proportio will be higher risk securities. The Strategic Icome Bod Fud ivests i high-yieldig stocks, which carry a icreased risk of default or their credit ratig may fall. The value of your ivestmet will fall should a issuer default or receive a reduced credit ratig. More tha 35% may be ivested i fixed-iterest govermet or public securities issued by a sigle issuer. There could be risk, for example, if they ca t repay the amout borrowed. If they do t repay, the value of the fud will fall. PROGRESSIVE CONSENSUS FUND The fud aims to achieve log-term growth by ivestig i a balaced portfolio of UK ad overseas compay shares, fixed-iterest stocks, idexliked stocks ad cash deposits. Ivestmet i these assets is made through a rage of idex-trackig fuds, or where appropriate, through direct ivestmet, agai o a idex trackig basis. The percetage of the fud ivested i each asset class will be based o the average amout ivested i each class i accordace with a bechmark of UK balaced fuds. 4

6 PROGRESSIVE MIXED FUND The fud aims to achieve log-term growth by ivestig i a mixed portfolio of UK ad overseas compay shares, fixed-iterest stocks, idex-liked stocks, property ad cash deposits. The fud is likely to ivest maily i compay shares ad property. The value of property is geerally a matter of a valuer s opiio rather tha fact. PROGRESSIVE PROPERTY FUND The fud aims to achieve log-term growth by ivestig maily i high-quality freehold ad log leasehold commercial ad idustrial properties. Property trasactios ted to be larger ad more complex tha for other asset classes. As a result the proportio of cash held while awaitig suitable ivestmet opportuities could be greater tha for other fuds. This fud ivests i property ad lad. This ca be difficult to sell - so it may ot be possible to cash i this ivestmet whe you wat to. We may have to delay actig o your istructios to sell the ivestmet. The value of property is geerally a matter of a valuer s opiio rather tha fact. ADVENTUROUS ADVENTUROUS ADVENTUROUS ENVIRONMENTAL FUND ETHICAL FUND GLOBAL UITY FUND The fud aims to achieve log-term growth by ivestig i compaies that demostrate a positive commitmet to the protectio ad preservatio of the atural eviromet. Ivestmet will be maily i UK compay shares. The fud aims to achieve log-term growth by ivestig i compaies with positive ethical practices. Stock selectio is based o a screeig process usig criteria agreed betwee Scottish Widows Ivestmet Partership ad a idepedet advisory body. Ivestmet will be maily i UK compay shares. For example the fud s ivestmets might iclude compaies which have a high proportio of their turover comig from safety equipmet, healthcare or evirometal techology, or which are active i the commuity. Compaies that are likely to be excluded are those, for example, which produce alcohol or tobacco, provide aimal testig services or those which ow or operate uclear power statios. The fud aims to achieve log-term growth by ivestig maily i compay shares i ay ecoomic sector i ay geographical area icludig the UK. 5

7 ADVENTUROUS ADVENTUROUS INTERNATIONAL UITY TRACKER FUND NORTH AMERICAN FUND The fud aims to achieve log-term growth by ivestig i a portfolio that aims to track the performace of overseas equity idices i proportios based o the average amout ivested i overseas equity markets by certai UK pooled pesio fud maagers. The fud will ivest maily i derivative istrumets. The fud aims to achieve log-term growth by ivestig maily i North America compay shares. SPECIALIST SPECIALIST ADVENTUROUS ADVENTUROUS UK ALL SHARE TRACKER FUND UK UITY FUND EUROPEAN FUND JAPANESE FUND The fud aims to achieve log-term growth by ivestig i a portfolio that aims to track the performace of the UK Equity market as represeted by the FTSE All Share Idex. The fud will ivest maily i compay shares. The fud aims to achieve log-term growth by ivestig maily i UK compay shares. The fud aims to achieve log-term growth by ivestig maily i Cotietal Europea compay shares. The fud aims to achieve log-term growth by ivestig maily i Japaese compay shares. 6

8 Exterally Maaged Fud Choice ADVENTUROUS PROGRESSIVE PROGRESSIVE PROGRESSIVE SW MERRILL LYNCH MANAGED FUND SW NEWTON MANAGED FUND SW SCHRODER MANAGED FUND SW STATE STREET 50:50 GLOBAL UITY INDEX FUND The fud aims for log-term growth through a global spread of ivestmets, but geerally with a emphasis o the UK. Ivestmet is through uit trusts maaged by Merrill Lych Ivestmet Maagers. The fud aims for log-term growth from a balace betwee capital growth ad icome from a portfolio of UK ad iteratioal securities. The fud ivests i a rage of Newto OEIC fuds. The fud aims for log-term growth from a balaced exposure to UK ad overseas compay shares ad fixed-iterest securities through a rage of Schroder authorised uit trusts. The fud aims to provide log-term growth ad provides broad exposure to coutries aroud the world. The fud ivests primarily i equities, both i the UK ad overseas markets. The fud has approximately 50% ivested i the shares of UK compaies. The remaiig 50% is ivested i overseas compaies split evely betwee the US, Europe ex UK ad the Far East. These asset exposures are through the State Street Global Equity (50:50) Idex Fud. Ivestmet is made o a idex-trackig basis. Restrictios o ivestmet fuds We may chage the selectio of fuds that we make available. There may be restrictios o the amout you ca ivest i certai fuds. Please cotact us for details of ay restrictios that apply. For Stakeholder plas take out before 28 July 2003 you ca curretly cotiue to ivest urestricted i our exterally maaged fuds. If ivestig i a Stakeholder pla from 28 July 2003 you will oly be allowed to put up to 30% of your paymets ito our exterally maaged fuds, with the remaiig 70% beig ivested i our iterally maaged fuds. Please speak to your fiacial adviser for further details. 7

9 The fuds at a glace Cash Cosesus Corporate Bod Do t wat to choose your ivestmet fud? Take a closer look at our Cosesus Fud. Evirometal Ethical Europea Fixed Iterest Global Equity Iteratioal Equity Tracker Japaese Mixed The Cosesus Fud aims to achieve log-term growth by ivestig i a balaced portfolio of UK ad overseas shares, fixed iterest, idex-liked stocks ad cash deposits. Ivestmet i these assets is made through a rage of idex trackig fuds, or where appropriate through direct ivestmet, agai o a idex trackig basis. The percetage of the fud ivested i each asset class will be based o the average amout ivested i each class i accordace with a bechmark of UK balaced fuds. North America Pesio Protector Property SafetyPlus Strategic Icome Bod UK All Share Tracker UK Equity UK Fixed Iterest Tracker SW Merrill Lych Maaged SW Newto Maaged SW Schroder Maaged SW State Street 50:50 Global Equity Idex Importat Notes Full terms ad coditios are available o request from Scottish Widows. Charges, limits ad terms may chage but oly to the extet, if ay, allowed for Stakeholder Pesio Plas. SafetyPlus is a registered trademark of Scottish Widows plc. 8

10 Scottish Widows plc. Registered i Scotlad No Registered Office i the UK at 69 Morriso Street, Ediburgh EH3 8YF. Tel: Scottish Widows plc is a member of the Scottish Widows ad Lloyds TSB Marketig Group, members of which carry o the busiess ad services associated with life assurace, pesios ad ivestmets. Scottish Widows plc acts as the processig ad payig aget for Scottish Widows Auities Ltd. Scottish Widows plc is authorised ad regulated by the Fiacial Services Authority (FSA Reg.No ) /06