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