Wesleyan Investment Portfolios

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1 Wesleyan Investment Portfolios

2 Wesleyan Investment Portfolios You may not be aware of it, but in the UK there are literally thousands of investment funds to choose from so it s not surprising that, for the individual investor, the resulting fund selection process can be daunting. What type of funds can best match your investment goals? Which specific fund and fund manager should you select? Is the investment performance promoted for a particular fund due to a manager who has since moved on? Isn t there a simpler and less time-consuming solution? At Wesleyan we believe we have the solution through a unique range of investment portfolios, each specifically designed to reflect the investment needs of particular investors. A range of investment portfolios designed with your investment goals in mind The portfolios blend the strengths of selected fund managers, including the investment expertise of Mike Lewis and the Wesleyan investment management team, as well as a number of external investment firms that we have carefully selected with guidance from external, independent consultants. The Wesleyan investment management team has a well-established and proven investment process, focusing on sound long-term investment opportunities that are often overlooked by more traditional and committee-based fund management organisations. The other fund managers have been selected for their strengths in specific types of funds that complement the Wesleyan funds within the different portfolios. This includes Schroders experience and specialism within the area of Gilts and other Fixed Interest stocks, Jupiter s highly-rated High Income and Global Managed Fund as well as, for the more adventurous investor, Jupiter s Merlin Worldwide Portfolio which, as a fund of funds, itself invests in selected funds from a number of different fund providers. Wesleyan Investment Portfolios aim to provide a simple, easy to understand solution for your various investment needs. You may wish to save for your child s education and be looking to invest entirely in a lower risk portfolio such as our UK Balanced Portfolio. Alternatively, you may also have a specific investment goal which requires the potentially superior investment returns offered by a higher risk portfolio such as the UK and International Portfolio or even, for the more adventurous investor, the Global Growth Portfolio. With the support and advice of your Financial Consultant, these portfolios and their unique blend of investment managers could offer a solution to a range of investment needs and objectives. Offering a choice of investment portfolios to suit your individual needs As you can see from the table opposite, Wesleyan has selected a range of distinct investment portfolios. Although the exact fund mix is different depending on whether the investment is within an ISA wrapper or not, the portfolios fall into one of the following four categories:

3 Portfolio Portfolio Composition and Objectives ISA Selected Investment Fund Collective investments Safety First This portfolio is designed for those who wish to invest with capital security. Wesleyan Bank Cash ISA Wesleyan Cash Fund UK Balanced Designed for an investor who is looking for medium to long-term growth potential of equity investment, but which is balanced with lower risk investments such as cash or fixed interest. Wesleyan Assurance Society With Profits ISA Schroder Gilt & Fixed Interest Fund Wesleyan Growth Trust UK & International Designed for an investor who is happy to pursue an investment strategy that includes wider equity exposure for the greater long-term growth potential this may offer. Wesleyan Growth Trust Wesleyan International Trust Wesleyan Growth Trust Wesleyan International Trust Jupiter Global Managed Fund Jupiter High Income Fund Global Growth An equity-focused portfolio designed for investments with which you are happy to take a more adventurous approach. Global Growth provides a more international approach to equity investment including some higher risk sectors and markets, which offer good growth potential but also greater volatility. Jupiter Merlin Worldwide Portfolio Jupiter Merlin Worldwide Portfolio The value of your investment is not guaranteed and in certain portfolios may fall as well as rise and may be affected by exchange rate variations, so you may get back less than you invested. Investors should be aware that as a result of the annual management fee of the fund being charged to capital, there is the potential that performance or capital value may be eroded. Under normal circumstances it is recommended that where a portfolio includes any equity investment, you invest for at least five years. The tax implications of the portfolios mean that they may not be suitable for everyone. Please note: Unless otherwise stated Wesleyan funds are provided by Wesleyan Unit Trust Managers Limited. You can select to invest solely in a single portfolio or decide to diversify your investment across a number of portfolios, perhaps to reflect a number of different investment goals. Throughout, you will be supported by the advice of your Financial Consultant, who can advise you on the most appropriate portfolio investment strategy relevant to your different investment goals and aspirations. Further details can be found in the Simplified Prospectus/Key Features document associated with each portfolio fund, which is available from your Financial Consultant. This explains in more detail the risks, taxation implications, benefits and costs associated with each fund.

4 Why does it make good sense to spread your investment? Because it means you don t need to have all your eggs in one basket. Spreading an investment across different products, assets, funds or fund managers helps to achieve diversification. Diversification helps to ensure that an investor is not too exposed to the changes in value of any single investment. Typically, investors can diversify by using different funds that invest in different asset classes, industry sectors or geographic regions. Even those funds that invest predominantly in a single asset class can still offer a good level of diversification. A UK equity fund, for example, may invest in only one asset class but may hold a large number of individual stocks, therefore minimising the impact from any significant fall in any one stock. Wesleyan Investment portfolios provide diversification by blending different funds and where appropriate, different fund managers to provide a range of portfolios to meet a range of investment aims. Please note, the Wesleyan Safety First Portfolio invests only in the Wesleyan Cash Fund; the Wesleyan Safety First ISA Portfolio invests solely in a Cash ISA from Wesleyan Bank; and the Wesleyan UK Balanced ISA Portfolio invests solely in the Wesleyan Assurance Society With Profits ISA. Blending the investment expertise of Wesleyan with specially selected external fund managers The selection of external fund managers has included advice from independent consultants, who will continue to be used to regularly review the providers to ensure they continue to offer quality service and competitive investment returns.

5 Why Wesleyan Investment Fund Managers Investing in equities needs a medium to long-term outlook and is therefore best supported by a stable fund management team whose approach and investment philosophy are designed to deliver good long-term performance and low volatility. We feel that this is reflected in the approach followed by the Wesleyan fund management team who manage Wesleyan s Unit Trusts and With Profits Funds. Mike Lewis joined the Society as Investment Director in He is a mathematics graduate of Magdalen College, Oxford and qualified as an actuary in He is a 25-year industry veteran and began his career at NFU Mutual. Some of the compelling characteristics of the team include: A fund management team which has been together for over 10 years, providing stability and ensuring a consistent approach to investment decisions. Investment decisions which are based on extensive research of both asset classes and individual stocks with the aim of identifying investment opportunities with the potential for superior long-term returns. The use of a contra-cyclical investment strategy, which targets stocks which may be generally out of favour but which the managers feel are unfairly under-priced in relation to their long-term growth potential. A buy and hold strategy focusing on stocks which the managers believe will provide solid returns over the longer term rather than seek returns through short-term changes in value and thus avoiding the high volatility that can result from such an approach. Targeting of quality value stocks and companies that offer a track record of strong profitability, good cashflow and solid asset backing three factors which form strong foundations for a company s financial stability. Clive Ward joined the Society as an Actuarial Assistant from Eagle Star in He is a mathematics graduate of Southampton University and qualified as an actuary in He worked in various actuarial and investment roles for the Society before being appointed Investment Manager in Martin Lawrence joined the Society as an Investment Analyst in He is a mathematics graduate of Exeter University and qualified in 2000 as an associate of the Institute of Investment Management and Research (IIMR) which is now known as the CFA Society of the UK. With Wesleyan s approach to fund management, we are confident that your investment is in experienced hands. The Wesleyan funds used within the portfolios are managed by Mike Lewis, Clive Ward and Martin Lawrence.

6 Why Schroders Schroders is an independent, dedicated asset manager with a strong heritage and culture based on over 200 years investment experience of investment markets. Listed on the FTSE 100, they benefit from a strong balance sheet and a stable ownership structure which allows them to focus entirely on delivering results for their clients. With billion* of funds under management and an international network spanning 32 offices in 25 countries, Schroders has the perspective and expertise to identify major investment potential wherever it is located. Investment management is Schroders only business so its substantial resources can be totally focused on the business of asset management. This independence allows them to take a distinctive, entrepreneurial approach, providing market-leading investment solutions. Schroders Gilt and Fixed Interest Fund complements the Wesleyan Growth Trust within the Wesleyan UK Balanced Portfolio. The Schroders Gilt and Fixed Interest Fund is managed by David Scammell whose investment career began in 1987 at the Bank of England. David s experience has also included senior fixed income positions at Foreign and Colonial, the Bank of International Settlements in Switzerland, the Central Bank of Finland, the United Bank of Kuwait (where he was Head of Global Fixed Income) and Anchorage Capital Partners. Schroders experienced portfolio managers take the research ideas which carry their highest conviction and, using proprietary tools, construct portfolios that maximise returns with the appropriate level and distribution of risk. Schroders won the Best Large Fixed Interest House award at the 2010 Morningstar UK Fund Awards for the second year in a row. This award was achieved through the strength and consistency of performance generated by Schroders talented team of fixed income portfolio managers and credit analysts over the past five years. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. The value of an investment and the income from it may fall as well as rise and may be affected by exchange rate variations. *Source: Schroders as at December 2009.

7 Why Jupiter Unit Trust Managers Limited Established in 1985 as a specialist boutique, Jupiter has since grown to be one of the UK s most successful and respected investment management groups. Jupiter currently manages more than 19.3bn* worth of assets, spread across a range of UK and offshore mutual funds, multi-manager products, hedge funds, institutional mandates, investment companies and private clients. For more than 20 years, Jupiter has gained a reputation for achieving outperformance across a broad variety of portfolios specialising in different markets, including UK equities, Europe, global financials and emerging markets. It is this consistency which has earned Jupiter a series of awards, including the Investment Week Global Group of the Year Award, awarded to Jupiter Unit Trust Managers Limited, for three years in succession 2004, 2005 and Other awards include: Best Multi-Manager Group, Professional Adviser Hot 100 Awards 2007 and 2009 Winner: EDHEC/Europerformance Alpha League Table 2008 Best Group, Professional Adviser Hot 100 Awards 2008 Best Specialist Group over one, five and ten years at the Standard & Poor s Awards The Jupiter Group completed a management buyout in March 2007 and is now majority-owned by its management team. *Source: Jupiter as at 31 January We have selected three funds managed by Jupiter fund managers to complement Wesleyan Funds within the UK & International Portfolio and the Global Growth Portfolio. Anthony Nutt, head of the Jupiter UK equities team, manages the Jupiter High Income Fund and is a Director of Jupiter s main board and Jupiter Asset Management Limited. Prior to this he was a Director of the asset management division of a leading merchant bank and responsible for the management of specialist and balanced pension funds on behalf of key UK and overseas clients and also responsible for leading investment trusts. Anthony has managed the Jupiter High Income Fund since its launch in February 1996 and his success has been rewarded with excellent fund ratings from a number of the main fund rating organisations, including a 4-Star rating from Morningstar, a maximum AAA from OBSR and a maximum AAA Standard & Poor s Fund Management rating. John Chatfeild-Roberts is lead manager of the Jupiter Global Managed Fund. From 1989 to 1995 he was Head of the Portfolio Management Service for Henderson Global Investors. This was followed by a move to Lazard Asset Management, where he was a Director and Head of Multi-Manager Team. John joined Jupiter to head the Jupiter Independent Funds Team in May 2001 and took over as the Lead Manager of the 5-Star Morningstar rated Jupiter Global Managed Fund in November 2001.

8 The Jupiter Merlin Worldwide Portfolio is managed by the Jupiter Independent Funds Team (JIFT). John Chatfeild Roberts is head of JIFT and is a Main Board Director of Jupiter. Peter Lawery and Algy Smith-Maxwell are Directors of Jupiter Asset Management Limited. John, Peter and Algy joined Jupiter in 2001 and all are A rated by Citywire. With over 50 years of industry experience between them, the team is completely focused on generating outperformance for their clients using the fund of funds concept. All Jupiter ratings are at 31 January Past performance should not be seen as a guide to future performance. The value of an investment and the income from it may fall as well as rise and may be affected by exchange rate variations.

9 Invest in Wesleyan s Investment Portfolios A busy and successful career can limit the amount of time you have to consider your investment options. That s why Wesleyan s investment portfolios have been selected to be clear and simple to understand and make it easy to invest through the following features: Monthly or lump-sum investment Investment portfolios designed with your investment goals in mind Dedicated face-to-face support from your personal Financial Consultant Streamlined application process for each portfolio Simple and clear investment literature Contact your Financial Consultant now for a personal consultation If you would like a personal consultation on how Wesleyan s Investment Portfolios can help you achieve your investment goals, then contact your Financial Consultant to arrange a one-to-one meeting, at your convenience, to discuss your needs.

10 For all your financial needs: Savings and Investments Retirement Planning Life and Income Protection Mortgages and Insurance Please call: Or visit: If you would like this document in Braille, large print or audio tape, please contact Head Office Wesleyan Assurance Society Colmore Circus Birmingham B4 6AR Advice is provided by Wesleyan Financial Services Ltd through its brand names including Wesleyan Medical Sickness, Wesleyan for Lawyers and Wesleyan for Teachers. Wesleyan Financial Services Ltd is authorised and regulated by the Financial Services Authority. Wesleyan Financial Services Ltd is wholly owned by Wesleyan Assurance Society. Incorporated by Private Act of Parliament (No. ZC145). Fax: Telephone calls may be recorded for monitoring and training purposes WI-NBB-1-04/10