This factsheet has been produced to provide information for Trustees of Friends Life Group Managed Funds and their advisers only. It should not be distributed to, or relied upon by other retail clients. Investment Objective AXA IM state, the fund aims to achieve long-term growth from a combination of income generation and capital growth. The fund consists principally of investments in non-sterling denominated fixed interest securities in all economic sectors and from all parts of the world. The fund may also invest in index-linked bonds. Please note that Aviva Investors will assume investment management of this Fund towards the end of 2015. Annual Management Charge: 0.25% Sector: ABI Global Fixed Interest SEDOL Code: 0858953 MEX ID: SNGPIB Please see the description of SEDOL and MEXID codes on the next page. Fund Information (as at 30/09/2015) Launch date 01/10/1991 Benchmark JP Morgan Global Government ex UK TR Fund size ( m) 3.53 Fund Risk Rating* 3 Special Risk Warnings*** A,B,E,J,O * The risk rating has been determined by Friends Life. ** Some funds carry particular risks. Please see the description of the Special Risk Warnings which apply to this fund on the following pages. Sector Allocation for FL GM Overseas Bond Pension Fund (as at 30/09/2015) AA 43.6 AAA 27.9 A 15.6 BBB 9.2 Money Market 3.9 Non-Rated -0.1 May not add up to 100% due to rounding and other adjustments. Asset Allocation for FL GM Overseas Bond Pension Fund (as at 30/09/2015) Global Government Fixed Interest 86.9 International Equities 3.9 Money Market 3.8 Others 5.4 May not add up to 100% due to rounding and other adjustments.
Principal Holdings for FL GM Overseas Bond Pension Fund (as at 30/09/2015) 1. GERMANY (FEDERAL REPUBLIC) 8.4% 6. GERMANY(FEDERAL REPUBLIC) 2% BDS 15/08/23 EUR0.01 2. US TREASURY N/B 1.750% 15/05/2023 6.3% 7. CANADA (GOVERNMENT OF) 4.0% 3. GERMANY 1.7500% '24 4.7% 8. UNITED STATES OF AMER TREAS NOTES 3.625% TB 15/02/21 USD1000 4. ITALY 0.7000% '20 4.6% 9. US TREASURY BILL 3.6% 5. US Treasury Notes 4.2% 10. JAPAN (GOVT OF) 10Y #339 3.3% 4.1% 3.9% Discrete net performance of the FL GM Overseas Bond Pension Fund to end of September 2015 (30/09/14-30/09/15) (30/09/13-30/09/14) (30/09/12-30/09/13) (30/09/11-30/09/12) (30/09/10-30/09/11) % growth 3.0% 1.2% -5.6% -0.8% 7.0% Discrete performance of the benchmark to end of September 2015 (30/09/14-30/09/15) (30/09/13-30/09/14) (30/09/12-30/09/13) (30/09/11-30/09/12) (30/09/10-30/09/11) % growth 11.2% 5.3% 0.3% 0.3% 3.9% The performance information above relates to the benchmark for the fund. Benchmarkperformance is shown on a Total Return basis. This assumes that any income was taxed at basic rates of income tax and thenreinvested. The fund may under perform or outperform its benchmark over any given period. The benchmark will not include costs orcharges which would apply to the fund or those likely to be incurred if constructing such a portfolio generally. Cumulative performance of the FL GM Overseas Bond Pension Fund to end of September 2015 1 year 2 years 3 years 5 years 10 years % growth 3.0% 4.3% -1.6% 4.5% 65.9% Please be aware that past performance is not a guide for future performance. The value of units may fall as well as rise and is not guaranteed. Policyholders may get back less than they invest. Fund information and performance figures are compiled using data sourced by FE (formerly Financial Express) Further Information Sector - Friends Life funds and (where applicable) the underlying funds they invest in, are classified into sectors, ensuring that funds operating similar investment strategies are grouped together and can be compared on a like for like basis. Benchmark Where available, is a measure (or measures) against which fund performance may be assessed. MEXID - a unique code for funds registered with Interactive Data. SEDOL (Stock Exchange Daily Official List) - a unique code to identify securities registered with the London Stock Exchange.
Continued from previous page Performance and Pricing Information This fund is made available by Friends Life only and may purchase assets (such as shares or bonds) or units in other Where a Friends Life fund invests in a single third party fund, we refer to the third party fund as the underlying fund. The fund is dual priced meaning that there is a separate price for buying and selling units. Performance is calculated on a bid-bid basis which reflects the selling price at which the underlying assets can be sold. Past performance figures may be discrete or cumulative. Discrete performance is on a yearly basis and is shown to the end of the last calendar quarter. Cumulative performance is totalled and shown over various periods to the end of the last month available. Although we take every care to ensure that the data provided by, or to, external sources about funds is accurate, occasionally discrepancies may occur for example due to pricing delays. In all cases we will endeavour to ensure that these discrepancies are corrected at the earliest opportunity. We accept no liability for loss due to such discrepancies, for example where the investor has relied on the information contained in the individual fund factsheet to help them make investment decisions. Information about charges Charges are taken to pay for the fund management, policy administration and any other costs reasonably incurred. The performance figures shown are net of the Annual Management Charge (AMC). This charge is shown in the first box on page 1. This AMC applies to investment units in this fund. Friends Life reserve the right to revise charges in line with your Terms and Conditions. There are additional charges related to buying, selling and switching of units. Details of these can be found in the Technical Information for Trustees leaflet. Restrictions on transactions In order to protect existing policyholders, Friends Life reserves the right to either defer or to spread encashments of units over more than one dealing day. We intend to apply this right where units are sold other than to provide immediate benefits for individual members, except as otherwise provided by Friends Life, where the sale from any fund exceeds 1,000,000 ( 250,000 in respect of the FL GM Property Pension Fund). In the case of deferment, this would be to the next but one dealing day after receipt by Friends Life of the signed authorisation. Where encashments are spread over dealing days this period would normally not exceed twelve months. Any decision in this respect will be at Friends Life discretion and will be communicated to Trustees prior to the dealing day.
Introduction to Risk Rating Friends Life calculates its risk ratings using historical performance data, based upon the methods set by European Union rules. We also carry out further research using information from the underlying fund s investment manager(s). We review each fund s risk rating annually and it may change over time. The timing of your investment decisions is very important and you should consult a financial adviser. Past performance is not a guarantee of future performance. Our risk ratings go from 1 to 7, with 1 being the lowest and 7 the highest. As a point of reference, a fund with a risk rating of 4 (medium volatility) would typically experience the volatility you would expect from a fund invested in a range of different types of investment (for example shares, property and bonds) without any bias to a particular investment type. 1. The historical performance of funds with this risk rating has typically experienced the lowest volatility of all the funds Friends Life has rated. This means that these funds have the lowest potential for substantial changes in value compared with other Friends Life 2. The historical performance of funds with this risk rating has typically experienced low volatility compared with other funds Friends Life has rated. This means that these funds have a low potential for substantial changes in value compared with other Friends Life 3. The historical performance of funds with this risk rating has typically experienced low to medium volatility compared with other funds Friends Life has rated. This means that these funds have a low to medium potential for substantial changes in value compared with other Friends Life 4. The historical performance of funds with this risk rating has typically experienced medium volatility compared with other funds Friends Life has rated. This means that these funds have a medium potential for substantial changes in value compared with other Friends Life 5. The historical performance of funds with this risk rating has typically experienced medium to high volatility compared with other funds Friends Life has rated. This means that these funds have a medium to high potential for substantial changes in value compared with other Friends Life 6.The historical performance of funds with this risk rating has typically experienced high volatility compared with other funds Friends Life has rated. This means that these funds have a high potential for substantial changes in value compared with other Friends Life 7. The historical performance of funds with this risk rating has typically experienced the highest volatility of all the funds Friends Life has rated. This means that these funds have the highest potential for substantial changes in value compared with other Friends Life Risk Warnings Some funds carry particular risks because of the type of asset and/or area of the world they invest in. Below is a list of all the risk warnings that apply to this fund. A General Investment is not guaranteed: The value of an investment is not guaranteed and can go down as well as up.
Continued from previous page You could get back less than you have paid in. Price: 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 and exisiting unitholders/shareholders are treated fairly and are not disadvantaged by any large cashflows. Suspend trading: Fund managers have the ability, in certain circumstances, to suspend trading 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. The circumstances in which we may delay a switch, withdrawal or transfer can include but are not limited to the following: if a large number of customers want to take money out of the same fund at the same time; if there are practical problems selling the assets in which a fund is invested; if the fund (or part of it) is managed by an external company, they may insist on a delay. Stock Lending: Where a fund is involved in the temporary transfer of securities, there is a 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. Derivatives: Most funds can invest in derivatives for the purpose of efficient portfolio management or risk reduction. For funds that also use derivatives for investment purposes we apply an additional risk warning due to the possible increase in the risk and volatility of the fund. B - Currency Risk: Where a fund invests in share classes or securities priced in currencies other than the fund s base currency, changes in exchange rates can contribute to the value of the investment going up or down. E - Fixed Interest: Where a fund invests in fixed interest securities, such as corporate or government bonds, changes in interest rates can contribute to the value of the investment going up or down. If interest rates rise, the value is likely to fall. Bonds with a lower credit rating are known as sub-investment grade or 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. J - Index-Linked: Where a fund invests in index-linked bonds, changes in inflation rates can contribute to the value of the investment going up or down. If inflation falls, the value is likely to fall. O - Convertible Bonds: Where a fund invests in convertible bonds, it will experience the risks associated with holding bonds until conversion at which point it will experience the risks associated with holding equities. To compensate for having additional value through the option to convert from a bond to an equity, a convertible bond typically has a coupon rate lower than that of a similar, nonconvertible bond. Friends Life and Pensions Limited An incorporated company limited by shares and registered in England and Wales, number 475201. Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Telephone 0845 602 9189 calls may be recorded. www.friendslife.com Friends Life is a registered trade mark of the Friends Life group.