Portfolio Investments Key Features

Transcription

1 Portfolio Investments Key Features Including the Investments ISA IMPORTANT INFORMATION YOU NEED TO READ AND UNDERSTAND BEFORE YOU INVEST The Financial Conduct Authority is a financial services regulator. It requires us, Santander ISA Managers Limited, to give you this important information to help you decide whether our Portfolio Investments and the Investments ISA are right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

2 Investments Key Features Contents Its aims 03 Your commitment 03 Risks 03 Questions and answers 04 Further information 10 02

3 Key Features of Portfolio Investments and the Investments ISA The purpose of this booklet is to set out the key features of our current on sale Portfolio Investments range and the Investments ISA. You should read this booklet with the accompanying Portfolio Investments brochure and the applicable Terms and Conditions. Important information The terms we, us, SIM and our are used in these Key Features and Terms and Conditions to refer to Santander ISA Managers Limited. Santander ISA Managers Limited (a wholly owned subsidiary of Santander UK plc) will arrange your investment. SIM is also the ISA manager for any Santander investments which you hold in an ISA. Santander Asset Management UK Limited provides and manages the funds in the Portfolio Investments range. Its aims n To give you growth over the medium to long-term (five years or more) when you pay a lump sum or a monthly amount into one or more of the suitable growth funds available. n To give you a regular income when you pay a lump sum into an income portfolio. n To help you to benefit from stockmarket growth without directly buying individual company shares. Your commitment n To invest your money into funds in an Open Ended Investment Company (OEIC). Please see the Portfolio Investments brochure for more information regarding OEICs. Risks n The value of your investment, and any income from it, can go down as well as up, and is not guaranteed at any time. Some funds carry more risk in order to give greater potential returns. n If you cash in some or all of your shares in the fund, particularly in the early years, you may get back less than you paid in. n The way a fund has performed in the past is not a guide to how it might perform in the future. n If you use your right to cancel an investment within 14 days of receiving your cancellation notice, the amount you get back will be reduced by any fall in the value of your investment during that time. n Charges may go up by more than is expected in the future so the value of your investment may therefore reduce. n Significant changes in interest rates could affect the value of your investment. n Any foreign investments may be affected by changes in rates of currency exchange. n The current levels of income may not be able to be maintained on the income funds. n The tax rules, including the tax treatment of ISAs, may change in the future, which could affect what you will get back. n To leave your money untouched for the medium to long-term (at least five years). 03

4 Investments Key Features Questions and answers Who can invest? The plan is only available to residents of the UK for tax purposes. You are not eligible for the plan if you are a national, resident or citizen of any jurisdiction or country outside of the UK. You must be aged 18 or over to apply. Joint applicants are permitted for a Direct Share Investment but not for an Investments ISA. How can I invest? There are two ways you can invest: n within an Investments ISA (which is a stocks and shares ISA); or n outside of an ISA (which is a Direct Share Investment). If you are investing in an ISA you can only invest in your own name. You can also transfer in your ISAs held with other providers. How much can I pay in? n The overall ISA limit for the 2014/2015 tax year is 15,000. The overall ISA limit for the 2015/2016 tax year is 15,240. This can be saved in a cash ISA, a stocks & shares ISA or a combination of the two. n You can pay in a lump sum of 500 or more per fund to start with. n You can pay in 25 or more per fund each month by Direct Debit. n You can choose to make your monthly payments on any day of the month from 1st to 28th inclusive. n You can stop or change your monthly payments at any time. If you change your monthly payment, you must pay in at least 25 per month. If I invest from 23 February 2015 what am I investing in? There are three share classes available for Portfolio Investments; S, X and R. If you invest after receiving advice from a Santander Financial Planning Manager, your money will be invested in one of the share classes below: n S Share Class for Select or 1I2I3 World customers The only difference between the S, X and R share classes is the charging structure, please see page 8 for details. There is no difference in how the fund is invested or managed. If I invested before 23 February, what share class is my existing investment in? If you invested in a Santander Portfolio Investment prior to 10 December 2012, your money will have been invested in the R share class. If you invested between 10 December 2012 and 22 February 2015 following advice from a Santander Financial Planning Manager, your money will have been invested in the X share class. If you invested new money into your existing fund or a new fund, without receiving advice from a Santander Financial Planning Manager, your money will have been invested in the R share class. The only difference between the S, X and R share classes is the charging structure, please see page 8 for details. There is no difference in how the fund is invested or managed. What funds does the Santander Portfolio Investments range offer? The full range of funds currently available as of 23 February 2015 within Santander Portfolio Investments: Growth n Santander Max 30% Shares Portfolio n Santander Max 50% Shares Portfolio n Santander Max 70% Shares Portfolio n Santander Max 100% Shares Portfolio Income n Santander Max 30% Shares Income Portfolio n Santander Max 60% Shares Income Portfolio n X Share Class for all other customers If you choose to invest new money into your existing fund without receiving advice from a Santander Financial Planning Manager, your money will be invested into the following: n If you hold an S or an R share class your new money will be invested into your existing holding. n If you hold an X share class your new money will be invested into the R class equivalent fund. 04

5 What is the choice of funds available? If you choose to put your money into It will be used to buy You need to know that Payments will be made to your bank account For Growth n Santander Max 30% Shares Portfolio n Santander Max 50% Shares Portfolio n Santander Max 70% Shares Portfolio n Santander Max 100% Shares Portfolio Accumulation shares Any income received by the fund will be reinvested and reflected in the price of the shares. It will not be directly paid to you. You do not receive income directly. For Income n Santander Max 30% Shares Income Portfolio n Santander Max 60% Shares Income Portfolio Income shares Income shares Any income will be paid to your UK bank account shortly after each payment date. Any income will be paid to your UK bank account shortly after each payment date. At the end of each month Shortly after the payment dates of 31 March, 30 June, 30 September and 31 December. In order to receive an income payment, you must own shares in the fund on the ex-dividend (ex-d) date. The ex-d date of the Santander Max 30% Shares Income Portfolio is approximately one month before the income payment date. This means that you may have to wait up to two months for your first income payment. The ex-d date for the Santander Max 60% Shares Income Portfolio is approximately two months before the income payment date. This means that you may have to wait up to five months for your first income payment. Shortly after the ex-d date, the share price of the fund will reduce to allow for the income payment that will be made. This ensures fairness to customers buying shares before and after the ex-d date. If you sell your shares before the ex-d date, you will not receive the next income payment. Can I switch between funds? Yes, you can switch from one Portfolio Investments fund to another Portfolio Investments fund subject to the minimum investment limits. For contact details for making a switch, please see the Customer Service Centre section on page 10. Can I pay more money in? Yes. However, if you invest within an ISA, you cannot pay in more than the overall ISA limit for that tax year (please see How much can I pay in? on page 4). You can add a lump sum at any time of 250 or more to a fund in which you are currently invested. If you are making monthly payments, you can increase the amount at any time by 1.50 or more to a fund in which you are currently invested. If you wish to invest in a fund in which you are not currently invested, the minimum investment is a lump sum of 500 or 25 per month. If you are transferring in an ISA that you have paid into during the current tax year, this ISA transfer will need to be completed before you can add to your Investments ISA. 05

6 Investments Key Features How do I pay more money in? For contact details to pay in more money, please see the Customer Service Centre section on page 10. Can I reduce my monthly investments? You may reduce your monthly payments to a minimum of 25 per fund. To reduce or stop your monthly payments, simply write to us and, if possible, we will change your Direct Debit by the next Direct Debit date. Please read the Terms and Conditions for more details. How will I know what my investment is worth? Twice a year we will send you a statement showing the value of your investment. It will also include details of any money that you have paid in or taken out during the statement period. If you cash in all of your investment, we will send you a closing statement. You can also see how your investment is doing by checking the share price and the latest estimated distribution yield of the funds on the Santander Asset Management website at in the Financial Times, or by phoning us on Will I pay tax on my investment? If you invest within an ISA: Whatever your personal tax status, you will not have to pay Income Tax or Capital Gains Tax on the returns from your ISA. You do not need to mention your ISA on any tax return you have to fill in. For funds paying interest distributions, the ISA Manager will reclaim the 20% that has been paid to HM Revenue & Customs in respect of Income Tax. This reclaim will increase the overall return from your investment. These tax reclaims do not apply to funds making dividend distributions. If you invest outside of an ISA: Depending on your personal circumstances, you may have to pay Capital Gains Tax on some, or all, of any gains arising when you cash in all or part of your investment, or if you switch between funds. Interest distributions are paid net of 20% Income Tax. This means that if you normally pay tax at basic rate, you will not have any further tax to pay. If you do not normally pay Income Tax, this money can be reclaimed. If you pay tax at a higher or additional rate, you will have additional tax to pay on the interest distributions. Your tax voucher will indicate the appropriate rate of tax depending on whether interest or dividend distributions apply. The Santander Max 30% Shares and the Max 30% Shares Income Portfolios make interest distributions. All of the other funds make dividend distributions. Dividend distributions carry a tax credit of 10% of the gross distribution. If you normally pay tax at basic rate, this means you will not have any further tax to pay. Note that this tax credit cannot be reclaimed, even if you do not normally pay Income Tax. If you pay tax at a higher or additional rate, you may have to pay additional tax on the gross distribution (i.e. including the tax credit) at a rate equal to the difference between the appropriate higher or additional rate and the Income Tax paid or the tax credited on the income. Taxation of the funds: Capital Gains Tax does not have to be paid by the funds. The funds pay Corporation Tax of 20% on their taxable income. The tax treatment depends on your individual circumstances and may be subject to change at any time in the future. This may affect what you get back. 06

7 What is an ISA? An Individual Savings Account (ISA) lets you save money without having to pay any tax when you cash in your savings. Think of it like a wrapper in which you can hold different types of savings. An ISA may be an ideal choice because it gives you tax-efficient returns. Please bear in mind that the tax rules might change in the future. Can I take my money out? You can cash in part or all of your investment at any time. There is no charge for this. Simply write to, or call, our Customer Service Centre contact details are provided on page 10. Once you have asked us to take money out, you will not be able to change your mind. If you cash in an ISA in the same tax year that you opened it, you may not be able to invest in another ISA until the following tax year. If you are cashing in part of your investment, you must cash in at least 250 per fund and leave at least 250 per fund invested. Please note that unless you tell us otherwise; if you hold shares in each of the S, X and R share classes of the same fund, we will always cash in shares from the R share class first, then the X share class and then the S share class. if we need to cash in shares from all share classes to give you the amount you have requested, we will leave 250 in the R share class and 250 in the X share class. We will send you a cheque or pay your money into a suitable Santander account or a suitable bank account elsewhere. We will normally send your payments within four working days of receiving your request. Details of any shares cashed in will be included in your next statement. Can I transfer my ISA to another ISA provider? You can transfer all or part of this ISA (according to the Terms and Conditions) to a different cash and/or stocks and shares ISA provider by completing a Transfer Form with the new ISA provider. The transfer will depend on the other ISA Manager agreeing to it. Any money saved in a stocks and shares ISA and transferred to a cash ISA in the same tax year, is treated as if it had been invested directly into that cash ISA in that tax year. You are then able to save up to the annual ISA limit into another stocks and shares ISA. Can I use an existing ISA? You can transfer in all or part of a cash and/or stocks and shares ISA, subject to your current provider s Terms and Conditions, without losing any of the tax benefits. Any money saved in a cash ISA and transferred to a stocks and shares ISA in the same tax year, is treated as if it had been invested directly into that stocks and shares ISA in that tax year. You are then able to save up to the annual ISA limit into another cash ISA. You can transfer some or all of the money saved in previous tax years without affecting your annual ISA limit. Any money saved in the current tax year needs to be transferred in full to another ISA. Your current provider may charge you for carrying out the transfer to us. You ll also lose any potential income or growth if the markets go up before the move is complete. There is no maximum amount that can be transferred. We only accept transfers in the form of cash, which means, for example, if your existing investment is held in the form of shares, they will have to be sold. What happens if I die? If you die, the tax advantages that apply to your ISA stop. The shares you have bought will stay invested until your personal representatives tell us what to do with your investment. The money from your investment will form part of your estate for the purpose of working out any inheritance tax due. As part of the 2014 Autumn Statement, the Chancellor announced that an additional ISA allowance will be available for spouses or registered civil partners when an ISA holder dies, equal to the value of the deceased s ISA as at the date of their death. This change relates to any individual who has passed away from 3 December Their surviving spouse will have an additional ISA allowance up to the value held in their spouse s ISA at the date of death, which they can utilise from 6 April What are the costs of sale? If you receive advice from a Santander Financial Planning Manager, any costs of sale will be explained to you as part of the advice process. If you do not receive advice from a Santander Financial Planning Manager, any costs of sale will be sent to you with your contract documentation. 07

8 Investments Key Features What are the fund charges and expenses? Please see the table below for the charges, expenses and costs that currently apply. These charges may change in the future. What is the Ongoing Charge? It is important that you know about the Ongoing Charge for each fund. This is an annual charge and is calculated using standard industry-wide rules which should help you to make comparisons between different funds. The different elements that make up the Ongoing Charge are shown in the table below, for each fund. Fund Share Class Annual Management Charge Other expenses Ongoing Charge Santander Max 30% Shares Portfolio Santander Max 50% Shares Portfolio Santander Max 70% Shares Portfolio Santander Max 100% Shares Portfolio Santander Max 30% Shares Income Portfolio Santander Max 60% Shares Income Portfolio S 0.85% 0.51% 1.36%* X and R 0.90% 0.51% 1.41%* S 0.85% 0.55% 1.40% X and R 0.90% 0.55% 1.45% S 0.85% 0.63% 1.48% X and R 1.10% 0.63% 1.73% S 0.85% 0.70% 1.55% X and R 1.10% 0.70% 1.80% S 1.00% 0.19% 1.19%* X and R 1.10% 0.19% 1.29%* S 0.85% 0.60% 1.45% X 1.10% 0.59% 1.69% R 1.10% 0.60% 1.70% Charges & Fees Annual Management Charge of fund Other charges and expenses Ongoing Charge What is it? This is a charge levied by the fund manager to cover the ongoing management and administration of the fund. This charge is taken into account before the daily share prices are calculated. This is the expected level of annual management charge taken from the underlying funds into which the fund invests, plus other fund expenses. The Santander Max 30% Shares Income Portfolio invests directly in bonds, shares and other assets and therefore does not have underlying fund management charges. This is the expected total of the Annual Management Charge of fund and Other charges and expenses as a percentage of the fund. It covers fees paid to the Fund Managers for managing the funds and expenses, such as audit fees, Stamp Duty Reserve Tax, Authorised Corporate Director expenses, depositary fees, Financial Conduct Authority fees and all charges levied by the Custodian. The Ongoing Charge is taken into account before the daily share prices are calculated. *A full year of audited accounts is not yet available for the Santander Max 30% Shares Portfolio and the Santander Max 30% Shares Income Portfolio and therefore the Ongoing Charges for these funds are estimates based on the expenses of representative funds. 08

9 What are Transaction costs? There are also other costs associated with investing which we feel are important for you to be aware of. These are known as Transaction costs and they; n apply on top of the Ongoing Charge. n are costs that are directly related to the investment activities of buying and selling the underlying assets of the fund. n do not necessarily reduce returns, as it may be that the returns you receive are improved as a result of this buying and selling activity. n may also be triggered by new investors buying shares in the fund, or by investors leaving the fund. In these cases the fund s performance will not be affected as these types of transaction costs will be borne by those customers. Transaction costs are shown as a percentage of the Fund and are taken into account before the daily share prices are calculated. Fund Transaction costs (per annum) Santander Max 30% Shares Portfolio 0.01% Santander Max 50% Shares Portfolio 0.03% Santander Max 70% Shares Portfolio 0.04% Santander Max 100% Shares Portfolio 0.06% Santander Max 30% Shares Income Portfolio 0.05% Santander Max 60% Shares Income Portfolio 0.05% The transaction costs for the Santander Max 30% Shares Portfolio and the Santander Max 30% Shares Income Portfolio are estimates based on the transaction costs for a representative fund. The transaction costs for the other funds above are, in each case, the average of the annual transaction costs over the previous three years. The actual costs may differ from those shown here. All of the above expected figures are reviewed annually and amended if required. 09

10 Investments Key Features Further information Cancellation rights You can change your mind and cancel your plan within 14 days of receiving your cancellation notice either n by writing to us; or n by completing the cancellation form that we will send you. Please note that if you cancel an investment made by transferring an ISA from another ISA provider, all future tax advantages associated with it will be lost. Please contact us at: Santander ISA Managers Limited 287 St Vincent Street Glasgow G2 5NB If you cancel an investment, you may not get back the full investment, as the amount you get back may be reduced by any fall in the value of your investment during that period. If you do not cancel, your investment will start and end as per the Terms and Conditions. Cancellation rights do not apply if you switch from one fund to another. Paperwork We will send you confirmation of your investment within three working days of receiving: n your application for new contributions; or n the transfer value from another provider. Please note that we do not issue share certificates. All documentation and communications about your investment will be in English. This document and its contents have been approved by Santander ISA Managers Limited. How to find out more This Key Features booklet gives an outline of our current on sale Portfolio Investments range and Investments ISA. The information provided is based on rules and regulations current at the time of publication. You will find more details in the Terms and Conditions and Portfolio Investments brochure and details of the Portfolio aims in the Portfolio Investments brochure, and charges and expenses in the What are the fund charges and expenses? section on page 8 of these Key Features. You will also find examples of what you might get back in the Portfolio Investments brochure. The Key Features document should be read in conjunction with the Key Investor Information Document. If you would like more detailed information about the funds, you can request printed copies of the annual and half yearly reports and the fund prospectus. These are also available to view and download from Dealing Up to 25 May 2015, for investments in the funds we will normally buy and sell shares for you at 12 noon each working day. If we receive your instructions after 12 noon, we will normally buy and sell shares at 12 noon the next working day. From 26 May 2015, we will normally buy and sell shares for you at 12 noon each working day and the dealing cut-off point will be 11am. The dealing cut-off point is the deadline by which we must receive your money to buy, or your instructions to sell investments. If we receive your money or instructions after 11am, we will normally buy and sell shares at 12 noon the next working day. Pricing When shares are bought or sold in the funds, dealing costs associated with selling or purchasing the underlying investments, such as stocks and shares, could result in a reduction in the fund value. This is referred to as dilution and, to allow for this, the funds will be priced on a swinging price basis. This means that the price of the funds will be increased or decreased by a dilution adjustment which can vary over time. Customer Service Centre All transaction requests received via the post or telephone will be completed on an execution only basis. This means that we will only act on your specific instructions and that no individual advice or assessment of suitability will be provided. All enquiries, payments and requests to take money out should be sent to the Customer Service Centre at: Santander ISA Managers Limited 287 St Vincent Street Glasgow G2 5NB Law The Law of Scotland governs the relationship we have with you prior to the conclusion of the contract; thereafter, the contract will be governed by the Law of Scotland. 10

11 Complaints At Santander it is important to us that we continue to improve our services and products and provide you with the service you expect. We want to know when things don t go well so we have the opportunity to put them right for you and potentially other customers. When things do go well we would also like to hear from you. This section lets you know how you can contact us and what we will do once we hear from you. How to make a complaint The best way to contact us is over the phone so that we can talk to you in person and take action to resolve the issue for you. You can call us on or (mobile), selecting option 1; If you would prefer, you can contact us using one of these other methods. It is important that you provide us with a daytime contact number so we can call you to discuss the matter with you if we need to: Send us a secure message via your Online Banking; If you are not registered for Online Banking you can us via the Complaints section of our website /complaints. Please note, is not a secure form of communication therefore do not send any sensitive or personal information. If you would prefer to speak to someone in person, you can visit any of our branches across the country Alternatively you can write to us: Santander Complaints Manager PO Box 5129 Milton Keynes MK9 2YN Our Promise We will do everything we can to resolve your concern promptly and fairly. Our commitment is that we will listen to you, we will contact you if we require more information to investigate the issue you have raised and where we have made a mistake we will put things right for you. We recognise there will be occasions, and in particular for more complex issues, where we will need more time to investigate the matter. In these circumstances we will send you an acknowledgement letter and keep you informed of our progress throughout our investigation. Using a solicitor or a claims management company or a third party firm to make a complaint We will look into the issue you have raised exactly the same way even if you employ a solicitor or a claims management company or a third party, such as a financial adviser. When making this decision it may be helpful to know: n Santander will not charge you to investigate your complaint n Santander will not be liable for any fees incurred if you decide to employ a third party to handle your complaint n Santander will generally only make a payment directly to you our customer if the complaint is upheld and we pay any redress Following our response If you do not agree with our resolution once we have completed our investigation then you can choose to come back to us using any of the contact routes above. Alternatively, you can choose to go to: The Financial Ombudsman Service The Financial Ombudsman Service is an impartial and independent organisation which looks into individual disputes between consumers and financial services businesses without taking sides. If we have not been able to resolve the matter to your satisfaction once we have given you our response then you may be able to refer it to the Financial Ombudsman. If you decide to contact them you must do so within six months of the date of the final response letter that we will send to you. They will only investigate if you have already tried to resolve your issue with us or if it has been more than eight weeks since you first contacted Santander. Further details about the Financial Ombudsman Service can be found in the Your Complaint and the Ombudsman leaflet (available in any Santander branch) or on their website: 11

12 Important information about compensation arrangements Financial Services Compensation Scheme (FSCS) cover depends on the nature of the claim being made. In general terms, FSCS cover is not available on claims for loss of value resulting just from the poor performance of investments. However, cover may be available for claims against authorised firms for loss arising from bad investment advice, poor investment management or misrepresentation. In the unlikely event that Santander ISA Managers Limited, Santander Asset Management UK Limited or Santander UK plc become insolvent and unable to meet their liabilities, claims arising against them in respect of their roles in the advice, selling, arrangement, administration or management of your investment may be eligible for compensation from the FSCS. Most types of investment business are covered up to a maximum limit of 50,000, depending on the type of investment and the circumstances of the claim. For any claim made to the FSCS, whatever the product type, it will ultimately be the FSCS s decision whether to cover that claim depending on the particular circumstances of the case. Further information is available from: Financial Services Compensation Scheme (FSCS) 7th Floor, Lloyds Chambers Portsoken Street London E1 8BN or Santander ISA Managers is able to provide literature in alternative formats. The formats available are: large print, Braille and audio CD. If you would like to receive correspondence in an alternative format please call LIFE 0778 FEB 15 HT Santander ISA Managers Limited (Company Registration No. SC151605) and Santander Asset Management UK Limited (Company Registration No. SC106669) are both registered in Scotland at 287 St Vincent Street, Glasgow G2 5NB, United Kingdom. Both are authorised and regulated by the Financial Conduct Authority. FCA registered numbers and respectively. Telephone Calls may be recorded or monitored. Santander UK plc. Registered Office: 2 Triton Square, Regent s Place, London, NW1 3AN, United Kingdom. Registered Number Registered in England. Telephone Calls may be recorded or monitored. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is Santander UK plc is also licensed by the Financial Supervision Commission of the Isle of Man for its branch in the Isle of Man. Deposits held with the Isle of Man branch are covered by the Isle of Man Depositors Compensation Scheme as set out in the Isle of Man Depositors Compensation Scheme Regulations In the Isle of Man, Santander UK plc s principal place of business is at 19/21 Prospect Hill, Douglas, Isle of Man, IM1 1ET. Santander and the flame logo are registered trademarks.