1 A guide to fund options Key Features Appendix for the Local Government AVC Scheme
2 A guide to fund options Key Features Appendix for the Local Government AVC Scheme 2 The way your pension savings grow over the years will have a major impact on your future retirement plans. The income that you ultimately receive will depend on factors such as the contributions made and the funds in which they are invested. This booklet provides useful and important information to help you decide which funds you would like to invest in. The initial areas to consider are: How do I understand investment risk? What terms are used and what do they mean? What type of investments do I favour? Followed by: What funds are available? Fund descriptions Finally we provide: Other important information A glossary of investment terms XXAn explanation of benchmarks
3 Prudential is committed to providing a broad range of investment funds. We have funds managed by M&G, our UK and European fund management business, and other leading fund managers. These funds have been selected for your scheme by your employer or trustee and should offer a varied choice for you. If you are unsure as to the suitability of a fund, you may wish to seek financial advice. Please note you may be charged for this advice. Your Key Features document contains all the main features, benefits and risks of the Plan. It is important that you read this document before making a decision. As this is an investment-based product the value of your investment can go down as well as up. The value can even fall below the amount invested. The information included in this guide is correct as at December Further information To get unit price information and detailed information for all funds made available through Prudential, simply visit pru.co.uk/funds/series/ and choose the Prudential Corporate Pensions (Series 3) link. We reserve the right to make changes at any time to the funds we make available, subject to certain restrictions. We will write to you if this affects you. We may also introduce new funds from time to time. To find out about changes to our range of funds, please go to pru.co.uk/factsheets/corporate_pension_fund_updates/ For more detailed information and help on choosing your pension funds, please visit pru.co.uk/interactiveguide/
4 How do I understand investment risk? 4 Trying to understand and decide on the level of risk you are willing to take with your investment can be a difficult task. Understanding some of the risks that an investment could be exposed to can help you assess how much risk you are willing to take. Growth from your investment can t be achieved without exposure to some risk. Being too cautious can also put your investment at risk, for example it may not grow quickly enough to keep up with inflation, so getting the balance right is key to meeting your own objectives. Some funds are more risky than others so how do you decide which fund or funds are most suitable for you? One rule of thumb is that the more risk you take, the greater the potential return over the long-term but also the greater the potential loss in the short-term. To help you choose the right fund for you we have given each fund a risk rating. Lower Potential rewards Higher HIGHER RISK MEDIUM TO HIGHER RISK MEDIUM RISK LOWER TO MEDIUM RISK LOWER RISK MINIMAL RISK Higher Risk Lower
5 These risk ratings have been developed by Prudential to help provide an indication of the amount by which the value of a fund might be expected to fluctuate up and down in the short-term, i.e. 12 months. 5 Risk Rating Expected short-term fluctuation in fund value Minimal Up to 6.0% Lower 6.1% to 9.0% Lower to Medium 9.1% to 13.5% Medium 13.6% to 15.9% Medium to Higher 16.0% to 17.9% Higher 18.0% and over Please note that: XXActual fund values could fluctuate up or down more than expected for the purposes of setting these risk ratings. XXThe ranges of expected short-term fluctuations in fund values shown above are not the same as long-term investment returns which might be achieved by these funds which are instead affected by factors such as economic growth. XXThe expected short-term fluctuations in fund values shown above are based on Prudential estimates of standard deviations. XXThese risk ratings do not take into account other types of investment risks you may face such as the effects of inflation or changes in the cost of providing an income when you retire. XXThese risk ratings are reviewed by the Prudential and may change in the future. Other companies may use different descriptions and as such these risk rating categories should not be considered as generic to the fund management industry. We recommend that before making any fund choice in the future you ensure you understand the appropriate risk rating before making a decision.
6 What terms are used and what do they mean? 6 To help you understand the fund options available and the terms used, here is some information that you may find useful. Explanations of other terms you may come across are included in the Glossary of Investment Terms section at the back of this booklet. Equities Also known as shares or stocks, these represent a share of the ownership of a company. Shares give two potential benefits the share price increases as the value of the company increases and regular payments, known as dividends, may be made to shareholders based on how well the company is doing. Over the longer-term, equities are considered by many investment experts to offer greater growth potential than many other asset types. But over the short term, the value of equities can go up and down a lot. Funds investing in equities tend to carry a higher risk of capital loss than funds investing in corporate or government bonds or money market instruments. Bonds These are loans issued by companies or by governments in order to raise money. Bonds issued by companies are called corporate bonds. Bonds issued by governments are generally known as government bonds, but many countries give them their own title. Bonds issued by the British Government, for example, are called Gilts. A fixed interest bond (also known as a fixed income security) pays the purchaser of the bond a fixed rate of income, in addition to repaying the initial sum on a specified later date. An index-linked or inflation-proofed bond (or security) is where the regular income payments made to the purchaser of the bond increase in line with inflation. Corporate Bond (sometimes called corporate debt) these are loans to companies where the purchaser of the Corporate Bond lends money to the company in return for regular interest payments and the promise that the initial sum will be repaid on a specified later date. The return achieved from a Corporate Bond is a combination of the interest payments and any change in the value of the bond. Government Bond these are loans to a Government where the purchaser of the Government Bond lends money to the Government in return for regular income payments and the promise that the initial sum will be repaid on a specified later date. The return achieved from a government bond is a combination of the income payments and any change in the value of the bond. On the whole, over the longer-term, investing in bonds is considered by many investment experts to be lower-risk than investing in equities. An index-linked Government Bond is where the regular income payments made to the purchaser of the bond increase in line with inflation. Money Market Instruments These include bank deposits, certificates of deposits, fixed interest securities or floating rate notes. The return achieved from money market instruments is a combination of interest and any changes in the value of the instruments.
7 Money market instruments are considered by many investment experts to be very low risk, but there are circumstances where they can fall in value. Multi-Asset A fund that invests in a range of assets, such as equities, bonds, property and alternative assets, is known as a Multi-Asset fund. By investing in a range of assets the fund is not relying on the performance of assets of the same type. This helps to provide diversification of risk. Property Direct investment in property (such as retail, office and industrial properties). The return achieved from investing in property is a combination of rental income and growth in the value of the property. As the actual value of a property is what someone is prepared to pay for it and as commercial property sales are infrequent, interim valuations are based on a valuer s opinion and may be revised up or down from time to time. This can affect the value of a fund invested in commercial property, with the value possibly fluctuating significantly. In addition, cash could remain uninvested as property can be difficult to buy quickly, leading to lower returns than expected. Rental income is also not guaranteed. Defaulted rent and unoccupied properties could reduce returns. As commercial properties can be difficult to sell quickly, the manager of a Property Fund may have to delay customers withdrawing money from the fund until they can sell some of the buildings the fund invests in. The value of the fund may be reduced if a large number of withdrawals are requested and it is necessary for properties to be sold at reduced prices. You should look upon your investment in property as being long term. There are large costs when we buy and sell property. The allowance for these costs amongst other factors can lead to short term falls in the price of units in the fund. Property is considered by many investment experts to be lower risk than equities, but higher risk than bonds over the long-term. Deposits Money that is placed with banks, building societies and other organisations to earn interest. Deposits are considered by many investment experts to be minimal risk, but there are exceptional circumstances where they can fall in value. Passive or active The funds available to you are either actively or passively managed. Passively managed fund Aims to track the movements of an index or indices, such as the FTSE All-Share Index. It is not possible for a passively managed fund to track its benchmark exactly because of the costs it incurs buying and selling its underlying assets. Actively managed fund Active funds are those that are managed with the aim of generating returns greater than the market, as measured by a benchmark or an index. 7
8 8 It is important to understand the risks involved. You need to consider the amount of risk you are taking against the potential performance of the fund. We believe the three Key risks you may face include: Volatility Risk the chance of short-term fluctuations up and down in the value of a fund events in financial markets cause the value of investments to rise and fall. While this can happen at any time, we believe it is likely to be most important when you re planning changes to your funds or close to retirement. Inflation Risk the risk that the value of investments doesn t grow quickly enough to keep up with inflation and so the buying power of your savings is eroded. We believe this risk is likely to be important to you most of the time. Conversion Risk your pension fund can be used to provide you with an income when you retire. The income you eventually receive will depend on both the value of your pension fund and the cost of turning your pension fund into an income. This creates the risk that the value of your pension fund does not move in line with the cost of providing you with an income. We believe this risk is likely to be important to you when you are approaching retirement. You need to balance the importance of each of these risks to you. While inflation is likely to be important throughout, volatility and conversion risks may become even more important as you approach retirement. Other risks which may affect your savings include: Exchange Rate Risk changes in exchange rates may cause the sterling values of overseas investments to rise or fall. Default Risk the risk that a company or government may not honour payments due to an investor. Manager Risk the risk that an investment manager may fail to meet the objectives set for a fund.
9 What type of investments do I favour? You can choose to spread your investment across assets to reflect your own attitude to risk. For example, more cautious investors are likely to have more invested in bonds. More adventurous investors are likely to have a greater proportion of their investment in property and equities. 9 What does the fund invest in? Risk Rating Typically invests in: Equities HIGHER RISK MEDIUM TO HIGHER RISK Typically invests in: Corporate Bonds, Government Bonds (Gilts), Multi-Asset, Property MEDIUM RISK LOWER TO MEDIUM RISK Typically invests in: Deposits, Money Market Instruments LOWER RISK MINIMAL RISK What is diversification: If you invest entirely in one type of asset or region of the world, then the value of your entire portfolio will be subject to the changes in the performance of that type of asset or region. To help manage this risk, you could consider spreading the risk by investing: XXin several assets, e.g. Equities, Bonds and Property XXby geography, e.g. different countries and regions This approach, known as diversification, may help protect your investment from feeling the full effects from a fall in value of one asset area. However, there will be occasions when most types of investments fall in value.
10 10 To help you decide, it s useful to ask yourself some questions: XX What is your attitude to risk? How much you get back from your investment and the degree of risk you are prepared to take are linked. XX How many years do you have before you retire? Higher risk rated funds offer the best potential for achieving above-average returns over the long term. This could apply to those with 10 to 15 years or more to retirement. XX Do you want to invest in a less risky fund as you get closer to retirement? The closer you are to retirement, funds with a risk rating of above Medium may not be suitable for you. Although they carry the potential for higher short term gains, they also have the potential for higher short-term losses. XX How would you react if the stock market went down and your plan value reduced? Any investor should be prepared for periods where investments may fall in value, but remaining invested gives an opportunity for investments to perform well over the longer term. XX How much income are you aiming to receive from your Plan? The funds you select, and the degree of risk you are prepared to take, will be key in trying to achieve the level of income you are aiming for. XX Do you have any other savings or sources of income for your retirement? State pensions and any income from say, part-time work while you are retired, may affect the level of risk you can afford to take. You should review your attitude to risk regularly as your needs and circumstances are likely to change from year to year. This can help identify any changes needed to keep your investments on track and in line with your investment objectives.
11 What funds are available? In this section you will find details of all the funds for you to invest in and if applicable, a Default Fund and also any lifestyle options available. You can choose a combination of up to a maximum of 10 funds from the funds listed below. The funds are separated by risk rating. We set these risk ratings for all our funds to help you choose the most appropriate funds for your needs and circumstances. As mentioned earlier your savings will face a number of different risks over time. However, our risk ratings are based upon how much we might expect the fund s value to go up and down over the short term. These ratings may change from time to time as economic conditions change. Further detail covering the objectives of the funds and where they invest can be found later in this booklet in the Fund descriptions section. 11 Fund Name Asset Class Active/Passive Charges each year % Medium Risk These funds may invest in multi-asset strategies with a higher weighting in equities, while funds investing mainly in property and, currently, government bonds (such as UK Gilts) are also in this category. Prudential Discretionary Fund Multi-Asset Active 0.75 Lower to Medium Risk These funds may invest in corporate bonds or multi-asset strategies with a higher weighting in corporate bonds (and other comparable strategies). Prudential With-Profits Fund Multi-Asset Active Minimal Risk These funds may invest in a combination of deposits, money market instruments and other types of interest bearing securities. Prudential Deposit Fund N/A* Active N/A* Default Fund You can choose to invest your payments into your plan s Default Fund. The Default Fund for your plan is Prudential With-Profits Fund. It is the responsibility of your Employer or Trustee to select the Default Fund with guidance from their adviser. This fund doesn t represent a recommendation on behalf of Prudential and you should consider and choose funds or lifestyle options to suit your needs. Please see your Key Features Document. * For further information on the Prudential Deposit Fund please see the Fund descriptions section.
12 Fund descriptions 12 All of the available funds are Prudential funds managed on our behalf by the fund manager stated. These funds should not be confused with the same or similarly named fund or unit trust offered independently by this fund manager. Fund Name and Manager Objective Medium Risk Prudential Discretionary Fund Prudential The investment strategy of the fund is to purchase units in the M&G PP Discretionary Fund. This fund aims to provide a traditional balanced approach to investment, holding a mix of UK and overseas shares, bonds, property and cash. The fund is actively managed against its benchmark of the BNY Mellon CAPS Balanced Pooled Fund Median. The significant numbers of stocks held in all areas reflect the prudent approach adopted by this fund. Both active stock selection and asset allocation are used to add value. Performance Objective: To outperform the benchmark by 1.15%-1.4% per year (before charges) over rolling 3 year periods. Lower to Medium Risk Prudential With- Profits Fund Prudential The fund offers the prospect of competitive long-term real returns whilst smoothing the peaks and troughs of day-to-day market movements. Investment returns are passed to policyholders through bonuses. The fund is invested in a diversified portfolio of UK and overseas shares, bonds, property and cash. A significant proportion of the fund is invested in shares and property which can be expected to produce attractive long term returns, but the return on these assets can be volatile and so the fund is actively managed to optimise the returns while controlling risk. Minimal Risk Prudential Deposit Fund Prudential The current practice, which we can review at any time, is to set and declare the interest rate on the first of each month, in line with the Bank of England base rate. Any interest is declared monthly and there are no explicit charges. The assets of this fund are part of the With-Profits Fund which is a multi-asset fund. The capital you hold in the Prudential Deposit Fund will not decrease.
13 Other important information XXThe unit-linked investment funds have a single price, based on the valuation of the assets held by the fund. XXThe unit-linked investment funds are forward priced. This means that the unit price you receive is the next available price after you have invested/ disinvested. For example for funds managed by Prudential M&G, money received on a Monday will buy units at the unit price applicable at close of business on the same day. XXThere is a short time lag between money being received, passing through our administration and accounting systems and then buying units in the underlying fund. This is known as a fund s dealing cycle and varies between fund managers. The dealing cycle can be several days. XXWhen determining the basis to be used for calculating the unit price, it is important to consider how much money is either going into the fund or is being taken out. The unit price is then used to determine the value of individual policyholders investments in the fund. If more money is being paid into the fund than is being taken out, then the fund will need to purchase assets. If this is the case then the amount that is needed to buy assets for the fund (i.e. the purchase price or offer price as it is sometimes known) will be more relevant than the amount obtained for selling the assets (i.e. the sale price or bid price as it is sometimes known) in determining the unit price of the fund. If more money is being taken out of the fund than is being paid in then the fund will need to sell assets. If this is the case, the sale price of the underlying assets will be more relevant when calculating the unit price. Sales prices are generally lower than purchase prices. The size of the difference depends on the cost of either purchasing or selling the assets the fund invests in. These costs tend to be largest for funds investing in property, smaller companies and developing markets so will have the largest impact on the change in price. If there is a switch from a purchase price to a sales price then the unit price will reduce. If there is a switch from a sales price to a purchase price then the unit price will increase. In both cases the movement in price can be significant and will occur immediately. The difference between the buying and selling price reflects the costs the fund managers incur buying or selling a fund s underlying investments. These costs are outside Prudential s control. The costs can include stockbroker commission and withholding taxes (such as stamp duty in the UK). This is known as a single swinging price. 13
14 14 It also means that, when you switch funds (either of your own choice or as part of a lifestyle option) there may be a cost to you if you switch from a fund where the buying price applies that day to a fund where the selling price applies on the day the switch is completed. There would be no investment costs if you switch where either the buying or the selling price applies to both funds. XXWhen switching between different unit-linked investment funds, the sale of existing units and the purchase of new units will not normally take place on the same date. There will be a lead-time involved in making unit prices available and where external companies are involved this lead-time may be longer than for funds managed by Prudential M&G. The prices of units can go up or down during that time: this is a risk to you. The exact time lapse between sale and purchase will depend on the investment funds involved in the switch. Please see the Important Information section on the factsheet, available from pru.co.uk/factsheets/ or speak to your pensions department. No interest is due for the period between the sale and purchase of units. XXFor any fund, there may be a delay in buying, selling or switching of units. These delays will only apply in exceptional circumstances and we will let you know if they apply to you. There may, for example, be circumstances outside our control which prevent us from acting upon an instruction to buy, sell or switch units. For example, where, due to restrictions imposed by an external fund manager, we are unable to sell units in an externallymanaged fund. Equally we may need to delay acting upon an instruction where we believe that to do otherwise the remaining investors in the fund would suffer an unfair reduction in the value of their investment in the fund, or would suffer some other form of unfair treatment. Other than in very exceptional circumstances we would not expect delays to be longer than six months in the case of units held by funds that invest in property and land, or which hold units in funds that invest in property and land, and one month in the case of units in other funds. While we will not delay buying, selling or switching units for longer than reasonably required, we cannot guarantee that we will never delay acting upon your instructions beyond the timescales set out above. If we do delay, we will use the unit prices that apply on the day we actually sell, buy or switch units after the delay has ended, unless, again, we believe that in the particular circumstances that would not be fair to investors in general.
15 XXSome of the Prudential funds listed in this guide may gain all or part of their investment exposure by investing in collective investment vehicles (e.g. Unit Trusts, Open Ended Investment Companies (OEICs)), derivatives or other investment vehicles. XXIn addition to our management charges (shown in the section titled What funds are available? ), there are costs which impact the overall performance of the fund. These costs are known as trading or dealing costs (including transaction related custody costs) and property expenses. When a fund manager trades the investments in your fund (for example, makes a decision to sell one holding and buy another) there are associated costs, for example taxes, which the fund pays. These costs are paid for out of the overall performance of the fund and are not rebated by Prudential. For funds that invest directly or indirectly in property, there are additional costs incurred for the development, maintenance, operation and renovation of the properties held. These costs are known as property expenses, are paid for out of the overall performance of the fund and are not rebated by Prudential. There are additional costs which are rebated back by Prudential to the fund and therefore will not impact the performance of the fund, such as those incurred to hold the underlying assets. XXOur charges may vary in the future and may be higher than they are now. We will write to you if this affects you. X X We reserve the right to make changes at any time to the funds we make available, subject to certain restrictions. We may also introduce new funds. To find out about changes to our range of funds, please go to pru.co.uk/factsheets/ corporate_pension_fund_updates/ 15
16 16 With-Profits For With-Profits investment, the rate of future bonuses cannot be guaranteed. Final bonus may vary and is not guaranteed. For investments in the With-Profits Fund, the value of the Policy depends on how much profit the Fund makes and how we decide to distribute that profit. Policyholders usually receive their shares of any profits as bonuses but we may use other methods to distribute profits. If you move money out of the With-Profits Fund a Market Value Reduction may be applied, which would cause the value of your fund to fall. For further information on With-Profits please refer to your Key Features Document. Can I change my mind? You can switch your money between funds at any time. We won t charge you for this. If this changes in the future we will let you know.
17 A glossary of investment terms This is a glossary of some of the investment terms used in this guide. It is not intended to be a definitive reference document and you should consider contacting a financial adviser for further assistance where necessary. Alternative Assets These are alternatives to assets such as Equities, Corporate Bonds and Property. Examples of alternative assets include commodities, infrastructure and private equity. Certificates of Deposit These are a money market investments that are generally issued by banks against a security. A certificate of deposit usually pays interest (which can vary) and entitles the bearer to receive a set interest rate up until a set maturity date and can be issued in any currency or denomination. Collective Investment Schemes A way of pooling investment with others as part of a single investment fund. This allows investors to participate in a wider range of investments than would normally be feasible if investing individually and to share the costs and benefits of doing so. Commodities These are raw materials and foodstuffs that can be divided into categories such as: Agriculturals (e.g. wheat and potatoes), Softs (e.g. coffee and cocoa), Precious Metals (e.g. gold and silver), Non-Ferrous Metals (e.g. copper and lead) and Energies (e.g. oil and gas). Default Risk This is the possibility that the issuer of a bond will be unable to make payments when they are due. Derivatives These cover products such as futures and options which are generally an arrangement to buy or sell a standard quantity of a specified asset on a fixed future date at a price agreed today. Also considered to be a financial instrument whose value is dependent upon the value of an underlying asset. Floating Rate Notes (FRNs) These are basically short-term loans to financial organisations, such as banks, under which the investor receives interest payments from that financial organisation. At the end of an agreed period the financial organisation has to repay the loan. The interest payment rates are linked to a specified floating rate typically the London Interbank Offered Rate (LIBOR). This means that interest rate payments may go up or down. GDP (Gross Domestic Product) A measure of the value of all goods and services produced in an economy in a year. Hedging A strategy employed in order to reduce or mitigate risk. Hedging involves making an offsetting transaction in one market in order to protect against possible losses in another. Currency hedging is a specific example of hedging where the fund manager tries to protect an existing or anticipated position from an unwanted move in exchange rates. 17
18 18 Hedged Back to Sterling This is a specific example of hedging where the trader is trying to protect an existing or anticipated position from an unwanted move in sterling exchange rates. High Yield Bond This is a bond that generally has a low (or non-investment grade ) credit rating and which offers higher interest payments than a bond with a higher credit rating due to the increased risk of default by the company issuing the bond. It can also be known as a junk bond. High Yielding Shares This is a share that pays a high dividend relative to its share price. Index-Linked Bond These are similar to fixed interest securities but the payments are normally increased by a price index e.g. for UK Government index-linked bonds, payments are increased in line with the UK Retail Price Index. Investment Grade A credit rating given to a Government or Corporate bond that indicates that the agency giving the rating (e.g. Standard & Poors) believes that the issuer has a relatively low risk of default. Bonds with credit ratings of AAA, AA, A or BBB are considered investment grade. Low rated bonds with ratings of BB or below are often called High Yield or Junk Bonds. Liquidity This is how quickly an asset, such as equities, corporate bonds or property, can be traded within a market and turned into cash. London Interbank Bid Rate (LIBID) This is the interest rate at which banks bid for cash deposits from each other. London Interbank Offered Rate (LIBOR) This is the interest rate that banks charge when lending money to one another over a short period of time. LIBOR is often used as a benchmark when setting other short term interest rates. Market Capitalisation This is the total value of a company s issued securities at their current market prices. This figure should include all the different types of security issued by the company, such as shares and bonds, but is often used in relation to the equity or stock market capitalisation. The market capitalisation of a company is the market price per share multiplied by the number of shares in issue. Companies are often referred to as large cap (an abbreviation for large market capitalisation), mid cap (an abbreviation for a medium-sized company by market capitalisation) or small cap (an abbreviation for small market capitalisation). Maturity This is the length of time until an asset becomes due for repayment. For example with a Corporate Bond this is the length of time until the initial sum is repaid. Options Legal agreements that give the holder the right (but not the obligation) to buy or sell the underlying asset at an expiration date, at a price determined at the time of dealing.
19 Private Equity This is money invested in private companies (those companies that are not publicly traded on a stock exchange, such as the London Stock Exchange) or which is used to buyout publicly traded companies in order to make them private companies. Repurchase Agreements (also known as Repo) An agreement in which one party sells securities to another party and agrees to repurchase those securities on a specified later date at a specified price. Shares see equities on page 6. Smaller Companies Companies quoted on a recognised exchange that have a market worth below that of blue chip companies. In the UK, smaller companies are typically defined as those with market capitalisations below the top 350 companies in the FTSE All Share Index. Transferable Securities This is a descriptor given to a type of financial security which is traded on capital markets. The term is probably most commonly known and used in association with UCITS in UK and Europe (examples would be UCITS/depositary receipts/some types of warrants). Unit This represents a right of interest in the fund s assets. 19
20 An explanation of benchmarks 20 The following is a high-level guide to some of the indices against which the funds available from Prudential compare or benchmark their performance. The use of these benchmarks should not suggest that they sponsor, endorse, or promote this product and are not in any way connected to it. An index measures the value, and the movement in value, of a particular group of investments (for example, the FTSE 100 Index tracks the movement in share price of the 100 largest companies on the London Stock Exchange). An index is used to compare (or benchmark) a fund s performance. All Balanced Property Fund component of the AREF/IPD UK Quarterly Property Fund Index Provided by Investment Property Databank (IPD), this index consists of UK pooled property funds. A pooled fund is a way of pooling investments together as part of a single investment fund. Barclays Global Aggregate Treasury Custom > $3bn Index This index consists of Bonds issued by Governments across the world, excluding British Government Bonds. BNY Mellon CAPS Pooled Fund Survey This survey groups together into sectors (such as UK Equity or Global Equity) the performance of funds within those sectors. Consumer Price Index (CPI) One measure of inflation in the UK. FTSE A British Government All Stocks Index This index consists of British Government bonds across all maturities. FTSE A British Government Over 5 Years Index-Linked Index This index consists of British Government index-linked bonds with more than 5 years to maturity. FTSE A British Government Over 15 Years Gilt Index This index consists of British Government bonds with 15 years or more to maturity. FTSE 100 Index This index consists of the shares of the 100 largest companies by market capitalisation listed on the London Stock Exchange. FTSE World Index This index consists of the shares of large and mid-sized companies, based on their market capitalisation, worldwide. FTSE All-Share Index This index consists of the shares of all companies listed on the London Stock Exchange. FTSE World (ex-uk) Index This index consists of the shares of companies worldwide, excluding the shares of companies listed on the London Stock Exchange. FTSE World Europe (ex-uk) Index This index consists of the shares of companies listed on European Stock Exchanges, excluding the shares of companies listed on the London Stock Exchange.
21 FTSE World Japan Index This index consists of the shares of companies listed on the Japanese Stock Exchange. FTSE All World Developed North America Index This index consists of the shares of companies listed on stock exchanges in North America. FTSE World Asia Pacific (ex-japan) Index This index consists of the shares of companies listed on stock exchanges in the Asia Pacific region, excluding the shares of companies listed on the Japanese Stock Exchange. FTSE Smaller Companies (ex-investment Trusts) Index This index consists of the shares of companies that are outside of the FTSE 350 Index (the FTSE 350 Index consists of the 350 largest companies by market capitalisation listed on the London Stock Exchange). FTSE Regional Indices These indices consist of the shares of companies listed on the Stock Exchanges within each region. The FTSE4Good Index Series This index has been designed to objectively measure the performance of companies that meet globally recognised corporate responsibility standards. These standards include working towards environmental sustainability and up-holding and supporting universal human rights. iboxx Sterling Over 15 Years Non-Gilt Index This index consists of Corporate Bonds with 15 years or more to maturity. iboxx Sterling Non-Gilt Index This index consists of Corporate Bonds. London Interbank 7-Day Deposit Rate This is the interest rate at which banks bid for 7-day cash deposits from each other. MSCI Regional Indices These indices measure the performance of stock markets in different regions of the world. MSCI World Index This index measures the performance of stock markets in over 20 developed nations. 21
22 Prudential is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AVCK0441 1/2015
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April 2016 Key Features of the Schroders Investment Trust ISA The Financial Conduct Authority is the independent financial services regulator. It requires us, Schroders, to give you this important information
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INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING Contents Helping you reach your financial goals 3 Introducing the different types of investments 4 Where could you invest? 4 Where
How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. www.increaseyourpension.co.uk Welcome to making investing simple Investing doesn t have to
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Fund descriptions, their charges and risk warnings This document was produced in March 2015 and is accurate at that date. When reviewing your fund choices you should refer to up-to-date information, available
Investment Strategy for Pensions Actuaries A Multi Asset Class Approach 16 January 2007 Representing Schroders: Neil Walton Head of Strategic Solutions Tel: 020 7658 2486 Email: Neil.Walton@Schroders.com
Schedule of Allowable Investments for the Suffolk Life MasterSIPP This document is part of a set, all of which should be read together. Key Features Your Personal Illustration Schedule of Fees Schedule
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helping life flow smoothly UNITED UTILITIES PENSION SCHEME Investment choices Nurturing your investment Contents Investment choices 1. A BRIEF GUIDE TO INVESTMENTS A reminder of the main different types
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For Adviser use only not approved for use with clients Adviser Guide PruFund and With-Profits in Retirement Planning A comparison of how PruFund Funds and the work The PruFund range and With-Profits investment
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Risks of Investments explained Member of the London Stock Exchange .Introduction Killik & Co is committed to developing a clear and shared understanding of risk with its clients. The categories of risk
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Your Investment Options lackrock EDS Investment uyout Plan A choice of funds to help you meet your retirement goals This guide shows you the range of investment options available through the lackrock EDS
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Human Resources Your investment options University of Reading Pension Scheme Introduction If you are a member of the University of Reading Pension Scheme (the Scheme) you and your employer pay contributions
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www.canaccord.com/uk Guide to Risk and Investment Any investment involves a degree of risk and some investments are more risky than others. Whether this is the first time you have considered investing,
Self Select Investment Guide move ahead For members of The Barclays Bank UK Retirement Fund (the UKRF) 2 Self Select Investments move ahead Inside this guide Welcome to Self Select 2 Investments Choosing
OCTOBER 2015 INVESTOR GUIDE INVESTING FOR INCOME COLUMBIATHREADNEEDLE.COM PLEASE READ THIS IMPORTANT INFORMATION. This guide explains some of the options that may be available to you and the reasons why
Asset Classes Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Shares (also called Equities or Stocks) are shares bought in quoted
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HSBC Life (UK) Limited Statement of Principles and Practices for Unit-Linked Business Copyright HSBC Life (UK) Limited 2012. All Rights Reserved No part of this publication may be reproduced, stored in
HSBC World Selection Portfolios The smart way to diversify your customers investments 2 A smart way to invest 3 The benefit of diversification 6 How is HSBC World Selection managed? 8 What are the advantages
Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding
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online report consulting group Glossary of Investment Terms glossary of terms actively managed investment Relies on the expertise of a portfolio manager to choose the investment s holdings in an attempt
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A guide to unit-linked investments Introduction This guide covers NFU Mutual s unit-linked investments. These are policies in which your money is used to purchase units in a particular fund or combination
M&G Guide to Retirement Income 2 Working out how to make adequate financial provision for retirement is one of the most important financial decisions most of us will ever face. However, it can be a daunting
It seems that whoever you talk to in the pensions industry about their current hot topic, the answer is Multi-Asset Credit (MAC). But what does this term really mean? The answer, it appears, depends who
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This factsheet has been produced to provide information for Trustees of Friends Life Group Managed Funds and their advisers only. It should not be distributed to, or relied upon by other retail clients.