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Nationwide Group Personal Pension Arrangement Fund descriptions, their charges and risk warnings

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This document was produced in May 2015

and is accurate at that date. When reviewing

your fund choices you should refer to

up‑to‑date information, available online at

www.friendslife.co.uk/customer/funds

or by calling the helpdesk on 0845 602 9221.

To help you choose your investment fund(s) we have detailed the full fund descriptions and their associated risk warnings in this document.

The funds are ordered by risk rating, then alphabetical order. Please see the table on the next page for more information on risk ratings.

You can choose more than one fund to invest in, up to a maximum of 10 funds. You can switch your existing investments from one fund choice to another, or redirect future contributions into different fund choices, whenever you choose. In certain circumstances we may delay this switching. However, if you have selected a lifetime investment programme, it will manage your investments for the life of your plan. You do not need to make any other fund choices or switches unless you opt out of the programme. Please read your ‘Choosing your investment funds’ brochure for further information and guidance on fund selection. For more

information on switching please see your Terms and conditions.

The value of an investment is not guaranteed and can go up and down. You could get back less than you have paid in. If you feel you would like advice, you can pay for financial advice from a financial adviser. If you don’t have an adviser, you can contact the following organisations:

Unbiased: www.unbiased.co.uk

Institute of Financial Planning: 0117 945 2470 or at www.financialplanning.org.uk

GOV.UK provides impartial UK Government information on pensions at (www.gov.uk/browse/working/ workplace‑personal‑pensions)

Nationwide Group Personal

Pension Arrangement

Fund descriptions, their charges

and risk warnings

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Approaches to investment risk

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 fund’s investment manager(s). We review each fund’s risk rating annually and these 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 investments (for example shares, property and bonds) without any bias to a particular investment type. Remember that all investment funds carry some element of risk but this varies from fund to fund.

Risk rating Risk rating description

7 Highest volatility

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 funds.

6 High volatility

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 funds.

5 Medium

to high volatility

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 funds.

4 Medium

volatility 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 funds.

3 Low to medium volatility

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 funds.

2 Low

volatility

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 funds.

1 Lowest volatility

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 funds.

Please note:

These investment risk ratings are based on our interpretation of investment risk and are only meant as a guide. These levels of investment risk are not guaranteed and may change in the future.

The colours in this table may be different to those used online; however, the ratings and approach to investment risk remain the same.

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Risk warning code

Risk warning description

A Investment is not guaranteed: The value of an investment is not guaranteed and can go down as well as up. You could get back less than you have paid in.

Price: At times, the way a fund’s price is calculated may need to change to ensure that those moving into and out of the fund and existing unitholders/shareholders are treated fairly and are not disadvantaged by any large cash flows.

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.

C Emerging markets: Where a fund invests in emerging markets, it is likely to be more volatile than one that invests in developed markets. These markets may not be as strictly regulated and securities may be harder to buy and sell than those in more developed markets. These markets may also be politically unstable, which can result in the fund carrying more risk.

D Smaller companies: Where a fund invests in the shares of smaller companies, these shares can be more volatile and may be harder to buy and sell than larger company shares, which can result in the fund carrying more risk.

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.

F Specialist: Where a fund invests only in a specific or limited range of industry sectors, it may carry more risk than funds that invest across a broader range or variety of sectors. These funds can be more volatile and carry higher risk due to their lack of diversification.

Fund 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. Please note that not all of these warnings apply to each fund and there is no direct relationship between the number of fund risk warnings and the investment risk rating for each fund shown on the previous page.

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Risk warning code

Risk warning description

H Cash/Money market funds: These are not cash deposit accounts but invest in money market instruments and short‑term bonds and can fall in value. In a low interest rate environment, the charges applied to a cash fund may be greater than its return, so you could get back less than you have paid in.

I Physical property: Where a fund directly invests in physical property, these properties are not easy to buy or sell. In exceptional circumstances, we may need to delay the ‘cashing in’ or switching of units in the fund and you may not be able to access your money during this period. The value of properties held is generally a matter of the valuer’s opinion rather than fact.

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.

K High cash levels: 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. L Reinsured funds: Where a fund invests in an underlying fund operated by another insurance

company through a reinsurance agreement, if the other insurance company were to become insolvent, you could lose some or all of the value of your investment in this fund.

M Ethical: Where a fund invests only in sectors and securities that meet its agreed ethical criteria, it may carry more risk than funds which are free from these restrictions. The ethical companies invested in can be involved in new and innovative technologies or new markets and can therefore have a higher risk profile than organisations involved in more mainstream activities.

N Alternative investments: Where a fund invests in alternatives, it may carry more risk, as these instruments are generally priced less regularly and may be harder to buy and sell than investments in more conventional asset classes. Alternatives include commodities, hedge funds, private equity, real estate investment trusts (REITs), venture capital and currencies.

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, non‑convertible bond.

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The funds you can choose from

To help you get a better understanding of the funds available to choose from, we have outlined some high-level details below.

Please take note of the following points before reading the table:

The annual management charge (AMC) that applies to your funds is based on regular contributions. If the AMC of your chosen fund changes, we will notify you.

The level of annual management charge (AMC) is taken from each fund, other

than those in the PMP, over the lifetime of your plan. This charge covers expenses such as administration costs and investment charges and may change over time. The AMC is made up of two parts:

– a scheme annual management charge which is taken out of the value of your pension plan over its lifetime to cover administration costs and investment charges and may change over time.

– for certain funds, an annual fund manager charge applied by fund managers for managing the fund. The charge varies according to the funds you invest in. The total charge is shown in the following fund tables.

The additional expenses charge is shown as a fixed percentage, but this will normally vary from day to day. The percentage shown is to give you an indication of the additional expenses that may be incurred by a particular fund, but you should be aware that on any given day it may be slightly more or less than this percentage.

Please note there may be circumstances when the fund managers decide to increase the level of AMC. If this happens, you can switch to another fund with an AMC at or below the previous level at no extra cost.

We may even choose to close the fund concerned, but please be assured that whatever action we take, we will write to you to inform you and explain the choices you have at the time. Please see the Terms and conditions for more information.

Important information

Please also take note of the following points before reading the table:

The risk rating is an indication of how volatile the fund is likely to be, and how much the value of the fund may vary from day to day.

We have also included the appropriate fund type alongside each fund. These are explained in the ‘Choosing your investment funds’ brochure.

Some fund names are subject to revision and may appear differently within other information sources. For details about fund name changes, please contact us using the details on page 1.

If you decide not to make an investment choice, please see the ‘Choosing your investment funds’ brochure for information on where you will be invested.

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Funds

Fund Fund type AMC

Additional expenses

7 Highest volatility

FL BlackRock Emerging Markets Equity (Aquila C) Index 0.48% 0.06%

FL JPM Life All‑Emerging Markets Equity Actively managed 1.15% 0.00%

FL JPM Natural Resources Actively managed 1.05% 0.18%

6 High volatility

FL Baillie Gifford Japanese Equity Pension Actively managed 0.75% 0.05%

FL BlackRock European Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock Japanese Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock Pacific Rim Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock UK Smaller Companies Actively managed 1.05% 0.17%

FL European Actively managed 0.30% 0.00%

FL First State Asia Pacific Leaders Actively managed 1.05% 0.04%

FL Lazard European Alpha Actively managed 0.65% 0.08%

FL Legal & General (PMC) Global Real Estate Equity Index Index 0.65% 0.00%

FL Old Mutual UK Mid Cap Actively managed 1.00% 0.18%

FL Pacific Basin Actively managed 0.30% 0.00%

FL Schroder Tokyo Actively managed 1.05% 0.17%

FL UK Smaller Companies Actively managed 0.30% 0.00%

5 Medium to high volatility

FL Aberdeen World Equity Actively managed 1.05% 0.15%

FL Adventurous Index Fund of Funds Fund of funds 0.30% 0.01%

FL Artemis UK Special Situations Actively managed 1.05% 0.05%

FL Baillie Gifford International Actively managed 0.50% 0.04%

FL Baillie Gifford North American Equity Pension Actively managed 0.75% 0.00%

FL Baillie Gifford UK Equity Core Pension Actively managed 0.60% 0.00%

FL BlackRock (30:70) Currency Hedged Global Equity Index (Aquila C) Index 0.30% 0.02%

FL BlackRock (40:60) Global Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock (50:50) Global Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock Long Term Fund (Aquila C) Index 0.30% 0.00%

FL BlackRock UK Equity Actively managed 0.50% 0.02%

FL BlackRock UK Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock UK Special Situations Actively managed 1.05% 0.17%

FL BlackRock US Equity Index (Aquila C) Index 0.30% 0.00%

FL BlackRock World ex UK Equity Index (Aquila C) Index 0.30% 0.00%

FL BNY Mellon Long‑Term Global Equity Actively managed 0.93% 0.06%

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Fund Fund type AMC

Additional expenses

FL Global Equity Fund of Funds Fund of funds 0.60% 0.05%

FL HSBC Amanah Global Equity Index Index 0.60% 0.00%

FL Invesco Perpetual High Income Actively managed 1.05% 0.19%

FL Lazard Multicap UK Income Actively managed 0.60% 0.06%

FL Legal & General (PMC) Ethical UK Equity Index Index 0.50% 0.00%

FL M&G American Actively managed 1.05% 0.17%

FL MFS Meridian Global Equity Actively managed 1.00% 0.15%

FL Newton Global Equity Actively managed 0.65% 0.12%

FL Newton Higher Income Actively managed 0.75% 0.04%

FL Newton UK Equity Actively managed 0.50% 0.11%

FL North American Actively managed 0.30% 0.00%

FL Schroder European Opportunities Actively managed 1.05% 0.10%

FL Schroder UK Opportunities Actively managed 1.05% 0.07%

FL Stewardship Actively managed 0.30% 0.00%

FL Stewardship Income Actively managed 0.30% 0.00%

FL Stewardship International Actively managed 0.30% 0.00%

FL UK Equity Actively managed 0.30% 0.00%

4 Medium volatility

FL Baillie Gifford Managed Actively managed 0.50% 0.06%

FL Balanced Fund of Funds Fund of funds 0.60% 0.04%

FL Balanced Index Enhanced Fund of Funds Fund of funds 0.30% 0.02%

FL Balanced Index Fund of Funds Fund of funds 0.30% 0.02%

FL BlackRock Consensus (Aquila C) Index 0.30% 0.00%

FL BlackRock DC Diversified Growth Actively managed 0.95% 0.12%

FL BlackRock Market Advantage Strategy Actively managed 0.69% 0.03%

FL BlackRock Over 15 Year Corporate Bond Index (Aquila C) Index 0.30% 0.00%

FL BlackRock Overseas Bond Index (Aquila C) Index 0.30% 0.00%

FL Cautious Managed Actively managed 0.30% 0.00%

FL Investec Cautious Managed Actively managed 1.05% 0.10%

FL Kames High Yield Bond Actively managed 0.85% 0.05%

FL Managed Actively managed 0.30% 0.00%

FL Newton Multi‑Asset Balanced Fund Actively managed 0.50% 0.11%

FL Newton Real Return Actively managed 1.05% 0.04%

FL Property Actively managed 0.30% 0.00%

FL Schroder Life Intermediated Diversified Growth Actively managed 0.95% 0.05% FL Standard Life Global Absolute Return Strategies Actively managed 1.05% 0.09%

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Fund Fund type AMC

Additional expenses

3 Low to medium volatility

FL Artemis Strategic Bond Actively managed 0.80% 0.08%

FL BlackRock Over 15 Year Gilt Index (Aquila C) Index 0.30% 0.00%

FL BlackRock Over 5 Year Index‑Linked Gilt Index (Aquila C) Index 0.30% 0.00%

FL Cautious Fund of Funds Fund of funds 0.60% 0.04%

FL Cautious Index Fund of Funds Fund of funds 0.30% 0.02%

FL Defensive Index Fund of Funds Fund of funds 0.30% 0.01%

FL F&C Ethical Bond Actively managed 0.55% 0.04%

FL Fidelity Moneybuilder Income Actively managed 0.70% 0.19%

FL Fixed Interest Actively managed 0.30% 0.00%

FL Index‑Linked Actively managed 0.30% 0.00%

FL Invesco Perpetual Corporate Bond Actively managed 0.80% 0.18%

FL Investec Strategic Bond Actively managed 0.85% 0.11%

FL Kames Sterling Corporate Bond Actively managed 0.60% 0.07%

FL Kames Strategic Bond Actively managed 0.70% 0.06%

FL Legal & General (PMC) Pre‑Retirement Actively managed 0.34% 0.00%

FL M&G Feeder of Property Actively managed 0.95% 0.16%

FL M&G Optimal Income Actively managed 0.93% 0.16%

FL Pre‑retirement Fixed Interest Actively managed 0.30% 0.00%

1 Lowest volatility

FL BlackRock Institutional Sterling Liquidity Actively managed 0.30% 0.00%

FL Cash Actively managed 0.30% 0.00%

With-profits

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Highest volatility

FL BlackRock Emerging Markets Equity (Aquila C)

BlackRock state that the fund’s objective is to achieve a return that is consistent with the return of the MSCI Emerging Markets Index.

Risk warnings A, B, C, D, L

Highest volatility

FL JPM Life All-Emerging Markets Equity

JP Morgan state that the fund is a pooled life fund investing primarily in emerging markets equities, either directly or through other funds. Under normal circumstances, the fund is fully invested with cash holdings kept to a minimum. Normally the fund only invests in the JPM Emerging Markets Fund, a UK authorised open-ended investment company.

Risk warnings A, B, C, D, E, L

Highest volatility

FL JPM Natural Resources

JP Morgan state that the fund aims to provide capital growth over the long term. The fund invests primarily in the shares of companies throughout the world engaged in the production and marketing of commodities. The fund will have exposure to smaller companies and may invest in emerging markets. Other instruments permitted include, but are not limited to, fixed interest securities, cash and cash equivalents. Risk warnings A, B, C, D, E, F, N

High volatility

FL Baillie Gifford Japanese Equity Pension

Baillie Gifford state that the fund gains exposure to Japanese equities by investing in the Baillie Gifford Japanese Fund, a collective investment scheme managed by Baillie Gifford & Co Limited which aims to achieve capital growth through investment in Japan in any economic sector, but with the ability also to invest up to (but no more than) 10% in value of the fund in collective investment schemes and deposits. Risk warnings A, B, D, L

High volatility

FL BlackRock European Equity Index (Aquila C)

BlackRock state that the fund invests in the shares of companies in Europe and aims to achieve a return that is consistent with the return of the FTSE All World Developed Europe ex UK Index.

Risk warnings A, B, D, L

High volatility

FL BlackRock Japanese Equity Index (Aquila C)

BlackRock state that the fund invests in the shares of Japanese companies and aims to achieve a return that is consistent with the return of the FTSE All World Japan Index. Risk warnings A, B, D, L

High volatility

FL BlackRock Pacific Rim Equity Index (Aquila C)

BlackRock state that the fund invests in the shares of companies in the Pacific Rim and aims to achieve a return that is consistent with the return of the FTSE All World Developed Asia Pacific ex Japan Index.

Risk warnings A, B, D, L

High volatility

FL BlackRock UK Smaller Companies

BlackRock state that the fund aims to achieve long-term capital growth. The fund invests primarily in the equity securities of smaller companies incorporated, or listed on a stock exchange, in the UK which the manager considers to have above average growth prospects. Smaller companies are those whose market capitalisations are similar to that of companies in the Numis Smaller Companies + AIM ex Investment Trusts Index at the time of the fund’s investment. The fund has the flexibility to invest outside of the asset class set out above. The manager has discretion to select the fund’s investments.

Risk warnings A, D

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Risk warning codes (see pages 3 and 4)

AInvestment is not guaranteed; Price; Suspend trading;

Stock lending; Derivatives BCurrency risks CEmerging markets DSmaller companies EFixed interest FSpecialist GDerivatives HCash/Money

market funds IPhysical property JIndex linked KHigh cash levels LReinsured funds MEthical NAlternative investments OConvertible bonds High volatility

FL European

The fund’s objective is to provide capital growth. The manager seeks to achieve this by investing mainly in a diversified spread of equities from any European stock market except the UK. Although the bulk of investment will take place in the major markets, the manager believes that the smaller markets also offer interesting opportunities from time to time and may be represented in the fund. While the manager will invest mainly in equities, there may be periods when European fixed interest securities are an attractive investment for part of the fund.

Risk warnings A, B, C, D, E

High volatility

FL First State Asia Pacific Leaders

First State state that the fund aims to achieve long-term capital growth. The fund invests in shares of companies based in or having significant operations in the Asia Pacific region including Australia and New Zealand excluding Japan. The fund invests in shares of large and mid-sized companies in the region. These companies generally have a total stock market value of at least US$1 billion. The manager may use their discretion when deciding which investments should be held by the fund.

Risk warnings A, B, C, D

High volatility

FL Lazard European Alpha

Lazard state that the fund aims to achieve long-term capital growth by investing in shares of Continental European companies. The fund has discretion as to the shares it holds. The fund invests in shares of the largest companies in Continental Europe. The manager favours markets with attractive economic conditions and competitive value. The fund invests in shares of companies with good management structures and attractive financial data, and which sell for low prices relative to the financial strength of the companies (i.e. are undervalued) and can be readily bought and sold in the markets.

Risk warnings A, B, C, D, E

High volatility

FL Legal & General (PMC) Global Real Estate Equity Index

Legal & General state that the fund aims to track the Sterling total return (less withholding tax) of the FTSE EPRA/NAREIT Global Real Estate Index. This index captures the

performance of a wide range of listed real estate companies and real estate investment trusts (REITs). The fund invests in the shares of listed real estate companies. These companies are primarily involved in the ownership, development or disposal of income producing property assets.

Risk warnings A, B, C, D, E, F, N

High volatility

FL Old Mutual UK Mid Cap

Old Mutual state that the objective of the fund is to provide capital growth from investing primarily in a portfolio of medium sized UK companies. Medium sized companies are defined for this purpose as those companies that are members of the FTSE Mid 250 Index. The fund may also invest in transferable securities, units in collective investment schemes, warrants, money market instruments, deposits and derivatives.

Risk warnings A, B, D

High volatility

FL Pacific Basin

The fund aims to achieve capital growth by investing in the Pacific Basin region, including Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan and Thailand. The fund intends to invest primarily in shares of companies in the Pacific Basin region, although it may also invest in other equities, warrants, fixed interest securities, derivatives, 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

High volatility

FL Schroder Tokyo

Schroders state that the fund’s objective is to achieve capital appreciation through participation in the growth of the Japanese economy. Investment will be based primarily on Japan’s economic strengths and on sectors benefiting from structural change in the economy. These opportunities are likely to be found across a broad range of industries.

Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, warrants and money market instruments. The fund may also invest in other financial instruments and hold cash on deposit. Risk warnings A, B, D

High volatility

FL UK Smaller Companies

The fund’s objective is to provide capital growth. The manager seeks to achieve this by investing mainly in equities of UK smaller companies. This will normally mean that the UK’s largest companies by market capitalisation are excluded from the fund. A proportion of the assets may comprise convertible stocks and other permitted investment vehicles which are linked to UK smaller companies.

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Medium to high volatility

FL Aberdeen World Equity

Aberdeen state that the objective of the fund is to generate a combination of income and capital growth by investing in companies around the world.

Risk warnings A, B, C, D

Medium to high volatility

FL Adventurous Index Fund of Funds

This fund aims to achieve long-term capital growth by investing mainly in equity index tracking funds of multiple regions (including emerging markets). A small proportion of the fund can also be invested in fixed interest index tracking funds, cash funds and other money market instruments. Assets held by fixed interest index tracking funds can include UK and overseas corporate and government bonds.

Risk warnings A, B, C, D, E, L

Medium to high volatility

FL Artemis UK Special Situations

Artemis state that the objective of the fund is to achieve long-term capital growth by exploiting special situations. The fund will principally invest in the shares of companies which have headquarters in the UK, or carry out a significant part of their activities in the UK and are quoted on a regulated stock market outside the UK. The fund may also invest in the shares of companies listed, quoted and/or traded in the UK but domiciled elsewhere. The fund has discretion in its choice of investments and is not restricted by the size of the

company or the industry it trades in. It may also invest in derivatives to meet its investment objective, to protect the value of the fund, reduce costs and/or generate additional income.

Risk warnings A, B, C, D, G

Medium to high volatility

FL Baillie Gifford International

Baillie Gifford state that the fund aims to achieve capital growth. The policy is to invest mainly in shares of companies worldwide excluding the UK.

Risk warnings A, B, C, D

Medium to high volatility

FL Baillie Gifford North American Equity Pension

Baillie Gifford state that the fund objective is to invest in any economic sector in the USA and Canada using a diversified approach across sectors and size categories with the aim of achieving capital growth.

Medium to high volatility

FL Baillie Gifford UK Equity Core Pension

Baillie Gifford state that the fund’s aim is to achieve above average total returns by investing in UK equities. The manager may invest in transferable securities, money market instruments, deposits, units in collective investment schemes, derivative instruments and forward transactions with the aim of spreading investment risk.

Risk warnings A, D, L

Medium to high volatility

FL BlackRock (30:70) Currency Hedged Global Equity Index (Aquila C)

BlackRock state that the fund invests primarily in equities in both the UK and overseas markets. The fund has

approximately 30% invested in the shares of UK companies and 60% invested into developed overseas equities with the currency exposure hedged back to Sterling. The remaining 10% is invested in emerging markets equities. The fund aims to provide returns broadly consistent with the markets in which it invests.

Risk warnings A, B, C, D, L

Medium to high volatility

FL BlackRock (40:60) Global Equity Index (Aquila C)

BlackRock state that the fund invests primarily in equities in both the UK and overseas markets. The fund has

approximately 40% invested in the shares of UK companies. The remaining 60% is invested in overseas companies. The fund aims to provide returns consistent with the markets in which it invests and provides broad exposure to countries around the world.

Risk warnings A, B, C, D, L

Medium to high volatility

FL BlackRock (50:50) Global Equity Index (Aquila C)

BlackRock state that the fund invests primarily in equities in both the UK and overseas markets. The fund has

approximately 50% invested in the shares of UK companies. The remaining 50% is invested in overseas companies. The fund aims to provide returns consistent with the markets in which it invests and provides broad exposure to countries around the world.

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Risk warning codes (see pages 3 and 4)

AInvestment is not guaranteed; Price; Suspend trading;

Stock lending; Derivatives BCurrency risks CEmerging markets DSmaller companies EFixed interest FSpecialist GDerivatives HCash/Money

market funds IPhysical property JIndex linked KHigh cash levels LReinsured funds MEthical NAlternative investments OConvertible bonds

Medium to high volatility

FL BlackRock Long Term Fund (Aquila C)

BlackRock state that the fund invests primarily in equities in both the UK and overseas markets, with approximately 60% in the UK and 40% overseas. The fund aims to provide returns broadly consistent with the markets in which it invests.

Risk warnings A, B, C, D, L

Medium to high volatility

FL BlackRock UK Equity

BlackRock state that the fund aims to maximise the return through a combination of capital growth and income generation on the fund’s assets. The fund will largely invest in the equity securities of UK companies. The fund may invest in all economic sectors within the UK. The manager has discretion to select the fund’s investments.

Risk warnings A, B, D

Medium to high volatility

FL BlackRock UK Equity Index (Aquila C)

BlackRock state that the fund invests in the shares of UK companies and aims to achieve a return that is consistent with the return of the FTSE All-Share Index.

Risk warnings A, D, L

Medium to high volatility

FL BlackRock UK Special Situations

BlackRock state that the fund aims to achieve long-term capital growth. The fund invests primarily in the equity securities of companies incorporated or listed in the UK and will normally have an emphasis on small and medium sized companies. Small and medium sized companies are those whose market capitalisation is lower than that of the companies in the FTSE 100 Index. The fund has the flexibility to invest outside of the asset class set out above. The manager has discretion to select the fund’s investments. Risk warnings A, D

Medium to high volatility

FL BlackRock US Equity Index (Aquila C)

BlackRock state that the fund invests in the shares of US companies and aims to achieve a return that is consistent with the return of the FTSE All World USA Index.

Risk warnings A, B, D, L

Medium to high volatility

FL BlackRock World ex UK Equity Index (Aquila C)

BlackRock state that the fund aims to achieve returns in line with global equity markets, excluding the UK. Within each of those markets, the fund aims to generate returns consistent with those of each country’s primary share market. The fund aims to achieve a return in line with the FTSE All World Developed ex UK Index.

Risk warnings A, B, C, D, L

Medium to high volatility

FL BNY Mellon Long-Term Global Equity

BNY Mellon state that the objective of the fund is to achieve long-term capital appreciation through investments in predominantly equity securities of companies located throughout the world. The fund will invest anywhere in the world, invest in company shares and similar investments and have complete freedom to invest without reference to any benchmark or index. The fund may also invest in emerging markets.

Risk warnings A, B, C, D

Medium to high volatility

FL Global Equity

The fund aims to achieve capital growth, with some income generation, by investing mainly in listed global equities. The fund may also invest in other equities, warrants, convertibles, derivatives, money market instruments and short-term bonds. The fund may invest directly or indirectly.

Risk warnings A, B, C, D, E, O

Medium to high volatility

FL Global Equity Fund of Funds

This fund aims to achieve capital growth. It invests in a diversified portfolio of actively and/or passively managed underlying funds which invest in equities of any region, including emerging markets. These funds can also invest in fixed interest securities, derivatives and cash.

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Medium to high volatility

FL HSBC Amanah Global Equity Index

HSBC state that the fund’s objective is to grow money in line with the performance of the 100 largest global companies engaged in Shariah compliant activities. The fund adopts a passive equity investment strategy that mirrors and tracks the Dow Jones Islamic Market Titans 100 Index. The Islamic Market Titans Index consists of Shariah compliant companies that have been endorsed by the Dow Jones Shariah

Supervisory Committee. There is a rigorous investment process to ensure adherence to Shariah principles, which HSBC Amanah’s Central Shariah Committee closely monitors. The committee has approved investment in listed companies whose activities do not contravene the tenets of Islam and where any non Shariah compliant revenue that might be earned is ‘purified’.

Risk warnings A, B, C, F, L, M

Medium to high volatility

FL Invesco Perpetual High Income

Invesco Perpetual state that the objective of the fund is to generate a high level of income together with capital growth. The fund invests primarily in shares of UK companies but may include some international investments. In pursuing this objective, the manager may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions. The fund is actively managed within its objectives and is not constrained by a benchmark. Risk warnings A, B, C, D, N

Medium to high volatility

FL Lazard Multicap UK Income

Lazard state that the fund aims to achieve capital growth by investing in shares of UK companies. The fund has discretion as to the UK company shares it can hold. The fund invests mainly in shares of large UK companies which pay above average dividends or whose dividends are expected to grow at a faster than average rate. The fund may also invest in smaller UK companies which have been identified by the manager as having the potential to provide superior returns. Risk warnings A, B, D, E, O

Medium to high volatility

FL Legal & General (PMC) Ethical UK Equity Index

Legal & General state that the fund aims to track the Sterling total return of the FTSE4Good UK Equity Index (including reinvested income, less withholding tax) to within +/- 0.5% per annum for two years in three.

Risk warnings A, B, D, F, I, L, M, N

Medium to high volatility

FL M&G American

M&G state that the fund’s objective is long-term capital growth through investment wholly or mainly in securities of North American (including Canadian) issuers. When not wholly invested as above, it may only invest in companies which are listed, registered or trading within North America. Risk warnings A, B, D

Medium to high volatility

FL MFS Meridian Global Equity

MFS state that the fund’s objective is capital appreciation. The fund invests primarily in equity securities of companies located in developed and emerging market countries. The fund may invest in companies it believes to have above average earnings growth potential compared to other companies (growth companies), in companies it believes are undervalued compared to their perceived worth (value companies), or in a combination of growth and value companies. The fund generally focuses its investments in larger companies, but may invest in companies of any size. The fund may use derivatives for investment purposes and efficient portfolio management or risk reduction.

Risk warnings A, B, C, D, G

Medium to high volatility

FL Newton Global Equity

Newton, (a BNY Mellon company), state that the objective of the fund is to achieve capital growth from a portfolio of international securities. The fund may invest anywhere in the world, including in emerging markets, in companies of all sizes and within any industry. The fund will limit investment in other mutual funds to 10%.

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Risk warning codes (see pages 3 and 4)

AInvestment is not guaranteed; Price; Suspend trading;

Stock lending; Derivatives BCurrency risks CEmerging markets DSmaller companies EFixed interest FSpecialist GDerivatives HCash/Money

market funds IPhysical property JIndex linked KHigh cash levels LReinsured funds MEthical NAlternative investments OConvertible bonds

Medium to high volatility

FL Newton Higher Income

Newton, (a BNY Mellon company), state that the objective of the fund is to generate increasing income with long-term capital growth. The fund will invest predominantly in the shares of UK companies of all sizes and within any industry. The manager seeks to invest in company shares targeting higher than average dividends and with good prospects for growth. The fund may invest up to 20% in securities from outside the UK. The fund will typically invest in fewer than 70 securities and limit investment in other mutual funds to 10%. Risk warnings A, B, D

Medium to high volatility

FL Newton UK Equity

Newton, (a BNY Mellon company), state that the objective of the fund is a total return comprised of long-term capital growth and income generation by investing in shares and similar investments of companies listed or located in the UK. The fund may invest in companies of all sizes and within any industry. The fund may invest up to 20% in securities from outside the UK. The fund will typically invest in fewer than 70 securities and limit investment in other mutual funds to 10%. Risk warnings A, B, D

Medium to high volatility

FL North American

The fund’s objective is to provide capital growth. The manager seeks to achieve this by investing mainly in a well balanced spread of equities in the US and Canada. While the fund will invest mainly in equities, it may also invest in other investments such as convertible stocks and derivatives and traded options to hedge positions or to gain exposure to companies to manage the portfolio efficiently. The fund does not normally hedge its currency exposure.

Risk warnings A, B, D, O

Medium to high volatility

FL Schroder European Opportunities

Schroders state that the fund aims to achieve long-term growth by investing in a wide range of large and medium sized companies across all European countries (excluding the UK) and in all economic sectors. It will invest flexibly between these countries. The fund aims to maximise the overall rate of return with capital growth as the primary goal. The manager seeks to invest in a diversified list of companies. Industry groups exhibiting above average growth prospects, strong financial characteristics and proven management are emphasised. A stock selection process seeks to balance value and growth without imposing restrictions upon the size of market capitalisation. Additional diversification is provided by a flexible country allocation strategy.

Risk warnings A, B, C, D

Medium to high volatility

FL Schroder UK Opportunities

Schroders state that the fund aims to generate an income return, together with long-term capital growth, by investing in any economic sector of the UK market. The manager invests predominantly in UK equities.

Risk warnings A, D

Medium to high volatility

FL Stewardship

The fund aims to provide exposure to an ethically screened portfolio of assets in order to produce capital growth. The fund will mainly be invested in UK equities. The ethical screening criteria of the fund will mean that its investments are more restricted than a non-ethical fund. The fund may also invest in other equities, warrants, convertibles, money market instruments and short-term bonds.

Risk warnings A, B, D, F, M, O

Medium to high volatility

FL Stewardship Income

The objective of the fund is to generate income with the prospect of capital growth. The manager seeks to achieve this by investing mainly in an ethically screened and diversified spread of UK equities. The ethical screening applied to the fund means that a number of the UK’s largest companies are screened out on ethical grounds. As a result, the fund will usually include significant exposure to medium and smaller companies. The manager may also invest in other investments such as corporate bonds and derivatives. Investment is concentrated in UK companies whose products and operations are considered to be of long-term benefit to the community both at home and abroad, and will generally exclude those considered to be involved with harmful products and practices or which trade extensively with oppressive regimes.

Risk warnings A, D, E, F, M

Medium to high volatility

FL Stewardship International

The fund’s objective is to provide capital growth. The manager seeks to achieve this by investing mainly in an ethically screened and diversified spread of global equities. The ethical screening applied to the fund means that a number of the largest companies are screened out on ethical grounds. The fund does not normally hedge currency exposure. Investment is concentrated in companies in any market whose products and operations are considered to be making a positive contribution to society and seeks to avoid companies which, on balance, are felt to be harming the world, its people, or its wildlife.

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Medium to high volatility

FL UK Equity

The fund aims to achieve capital growth by mainly investing in UK listed equities. The fund may also invest in other equities, warrants, convertibles, derivatives, money market instruments and short-term bonds.

Risk warnings A, B, D, O

Medium volatility

FL Baillie Gifford Managed

Baillie Gifford state that the fund aims to achieve above average returns, mainly through capital growth, over the long term. The policy is to invest in large, medium and smaller sized companies in any economic sector worldwide, either directly or indirectly. Investment will mainly be in shares of companies, bonds and other funds. Investment may also be in other transferable securities and money market instruments. Derivatives may be used to protect or increase the value of the fund.

Risk warnings A, B, C, D, E, G

Medium volatility

FL Balanced Fund of Funds

This fund aims to provide returns in excess of inflation. It invests in a diversified portfolio of actively and/or passively managed underlying funds with between 40% and 85% invested in equities of any region, including emerging markets. The remainder is invested in funds that can invest in any type of fixed interest securities (including index-linked), property and property-related securities, derivatives and cash. Risk warnings A, B, C, D, E, G, I, J, L, N, O

Medium volatility

FL Balanced Index Enhanced Fund of Funds

This fund aims for long-term growth by investing in funds which invest in all the main asset classes, including, but not limited to, equities, fixed interest securities (including index-linked), property and property-related securities, derivatives and cash. It can invest in any geographic region including emerging markets. The fund is made up of a number of other funds with the aim to invest at least 70% in passively managed index tracker funds which perform in a similar way to the index they track. The remainder is invested in actively managed funds and other instruments.

Risk warnings A, B, C, D, E, G, I, J, L, N, O

Medium volatility

FL Balanced Index Fund of Funds

This fund aims to provide returns in excess of inflation. It invests between 40% and 85% in equity index tracking funds of multiple regions (including emerging markets), with the remainder invested in fixed interest index tracking funds, cash funds and other money market instruments. The holdings in fixed interest and cash help to diversify risk and provide stability within the fund. Assets held by fixed interest index tracking funds can include UK and overseas corporate and government bonds.

Risk warnings A, B, C, D, E, L

Medium volatility

FL BlackRock Consensus (Aquila C)

BlackRock state that the fund provides a low-cost alternative to traditional balanced fund management. It aims to produce consistent investment performance in line with the average UK pension fund and to avoid any violent swings between the upper and lower ends of the pension fund performance league tables.

Risk warnings A, B, C, D, E, J, L

Medium volatility

FL BlackRock DC Diversified Growth

BlackRock state that the fund utilises a multi-asset flexible investment approach. This means that the fund will generally hold a variety of different types of assets at any one time. The fund may use derivatives for investment purposes. Risk warnings A, B, C, D, E, G, K, L, N

Medium volatility

FL BlackRock Market Advantage Strategy

BlackRock state that the objective of the fund is to provide a total return, which reflects the total return of worldwide equities. This objective will be effected through strategic exposure to multiple asset classes. The policy is to gain exposure to equities, fixed-income securities, property companies and commodities globally. The fund will invest in derivatives, collective investment schemes, equity and fixed income securities. The fund may also invest in deposits, cash and money market instruments, and may include sub-investment grade securities. The fund may also invest up to 100% of its value in collective investment schemes. The fund may invest more than 20% of its value in emerging markets. The fund may also invest in derivatives for

investment purposes and/or efficient portfolio management. Risk warnings A, B, C, D, E, G, J, N

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Risk warning codes (see pages 3 and 4)

AInvestment is not guaranteed; Price; Suspend trading;

Stock lending; Derivatives BCurrency risks CEmerging markets DSmaller companies EFixed interest FSpecialist GDerivatives HCash/Money

market funds IPhysical property JIndex linked KHigh cash levels LReinsured funds MEthical NAlternative investments OConvertible bonds

Medium volatility

FL BlackRock Over 15 Year Corporate Bond Index (Aquila C)

BlackRock state that the fund invests in investment grade corporate bonds denominated in Sterling. The fund aims to achieve a return consistent with the Markit iBoxx £ Non-Gilts Over 15 Years Index. This index consists of bonds with maturity periods of 15 years or longer.

Risk warnings A, E, L

Medium volatility

FL BlackRock Overseas Bond Index (Aquila C)

BlackRock state that the fund invests in fixed interest securities issued by foreign national governments. The fund aims to achieve a return consistent with JPMorgan GBI Global ex UK Index.

Risk warnings A, B, E, L

Medium volatility

FL Cautious Managed

The fund aims to provide exposure to a diversified portfolio of assets in order to generate capital growth and income. The fund may invest in equities, warrants, bonds, convertibles, money market instruments, short-term bonds, commodities, private equity, hedge funds and direct property. The fund may invest directly or indirectly.

Risk warnings A, B, C, D, E, I, J, N, O

Medium volatility

FL Investec Cautious Managed

Investec state that the fund aims to generate a combination of income and long-term capital growth by investing

conservatively in a diversified portfolio of equities, bonds and other fixed interest securities. At all times the fund’s equity exposure will be limited to a maximum of 60% of the fund value. Bonds held may be corporate or government and of any duration and may be investment grade or sub investment grade. Up to 5% of the fund may be invested in units or shares in other collective investment schemes. The fund may also invest, at the manager’s discretion, in other transferable securities. Use may be made of stock lending and borrowing. Risk warnings A, B, D, E, J, N

Medium volatility

FL Kames High Yield Bond

Kames Capital state that the fund’s objective is to maximise total return. The fund invests predominately in high yield bonds, selected investment grade bonds and cash. The fund may hold Sterling and other currency denominated bonds hedged back to Sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. Derivatives and forward

transactions will be used for the purposes of efficient portfolio management (including hedging) and to meet the investment objectives of the fund.

Risk warnings A, B, C, E, G

Medium volatility

FL Managed

The fund aims to provide exposure to a diversified portfolio of assets in order to generate capital growth and income. The fund will mainly be invested in equities and bonds. It may also invest in warrants, convertibles, money market instruments, short-term bonds, commodities, private equity, hedge funds, other alternative asset classes and direct property. The fund may invest directly or indirectly.

Risk warnings A, B, C, D, E, I, J, N, O

Medium volatility

FL Newton Multi-Asset Balanced Fund

Newton, (a BNY Mellon company), state that the objective of the fund is to achieve a balance between capital growth and income generation predominantly from a portfolio of UK and international securities. The manager adopts a mixed portfolio approach comprising company shares (and similar equity investments) and bonds (and similar debt

investments). The manager may invest anywhere in the world, with a bias towards the UK. The fund may also invest in derivative instruments, forward transactions and collective investment schemes. Investment in derivatives may be for investment purposes as well as for efficient portfolio management.

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Medium volatility

FL Newton Real Return

Newton, (a BNY Mellon company), state that the objective of the fund is to achieve significant real rates of return in Sterling terms predominantly from a portfolio of UK and international securities. The fund may invest anywhere in the world into a mixture of cash, equities, corporate and

government fixed interest securities (of any duration or credit rating), deposits, money market instruments, derivatives, forward transactions and collective investment schemes. The manager follows a broad multi-asset approach and

emphasises real return. The fund may use derivatives for investment purposes as well as for efficient portfolio management or risk reduction.

Risk warnings A, B, C, D, E, G, J, K, N, O

Medium volatility

FL Property

The fund aims to generate capital growth and income by investing mainly in UK commercial property. The fund may also invest in UK listed property equities, including real estate investment trusts, shares issued by companies that own, develop or manage direct property and property index certificates. The fund may also invest in money market instruments, short-term bonds, derivatives and in other direct property funds.

Risk warnings A, F, I, N

Medium volatility

FL Schroder Life Intermediated Diversified Growth

Schroders state that the fund supports goals where there is a desire to grow assets to a similar extent to equities, but with reduced volatility. The fund can invest in a broad array of asset classes, equities, bonds and a range of diversifiers. The fund may also invest in a wide range of investments including transferable securities, derivatives, cash, deposits, collective investment schemes, warrants and money market

instruments. Derivatives may be used for investment purposes.

Risk warnings A, B, C, D, E, G, L, N, O

Medium volatility

FL Standard Life Global Absolute Return Strategies

Standard Life state that the objective of the fund is to deliver a positive absolute return in the form of capital growth over the medium to longer term in all market conditions. The current policy of the fund is to invest in permitted derivative contracts (including futures, options, swaps, forward currency contracts and other derivatives), transferable and fixed interest securities, cash and other collective investment schemes. The fund may use derivatives to meet its objective and for efficient portfolio management.

Risk warnings A, B, C, D, E, G, J, K, N, O

Medium volatility

FL Stewardship Managed

The fund aims to provide exposure to a diversified portfolio of ethically screened assets in order to generate capital growth and income. The ethical screening criteria of the fund will mean that its investments are more restricted than a non-ethical fund. The fund may invest in UK and international equities, warrants, bonds, convertibles, money market instruments and short-term bonds. The fund may invest directly or indirectly.

Risk warnings A, B, C, D, E, F, M, N, O

Low to medium volatility

FL Artemis Strategic Bond

Artemis state that the fund seeks to achieve a total return by investing predominantly in fixed income markets. The fund may selectively invest in other markets. 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 principally invest in UK fixed-interest securities with the aim of achieving a total return. The fund has discretion in its choice of investments and is not restricted by the size of the company or the industry it trades in. The fund can also invest in other fixed interest securities and preference shares. The fund may seek to profit from short positions in assets. It may also invest in derivatives to meet its investment objective, to protect the value of the fund, reduce costs and/or generate additional income.

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Risk warning codes (see pages 3 and 4)

AInvestment is not guaranteed; Price; Suspend trading;

Stock lending; Derivatives BCurrency risks CEmerging markets DSmaller companies EFixed interest FSpecialist GDerivatives HCash/Money

market funds IPhysical property JIndex linked KHigh cash levels LReinsured funds MEthical NAlternative investments OConvertible bonds

Low to medium volatility

FL BlackRock Over 15 Year Gilt Index (Aquila C)

BlackRock state that the fund invests in UK Government fixed income securities (gilts) that have a maturity period of 15 years or longer. The fund aims to achieve a return

consistent with the FTSE UK Gilts Over 15 Years Index, which is widely regarded as the benchmark for UK pension fund investment in the longer dated end of the UK gilt market. Risk warnings A, E, L

Low to medium volatility

FL BlackRock Over 5 Year Index-Linked Gilt Index (Aquila C)

BlackRock state that the fund invests in UK Government index-linked fixed income securities that have a maturity period of 5 years or longer. The fund aims to achieve a return consistent with the FTSE UK Index-Linked Gilts Over 5 Years Index, which is widely regarded as the benchmark for UK pension fund investment in the longer dated end of the UK index-linked gilt market.

Risk warnings A, E, J, L

Low to medium volatility

FL Cautious Fund of Funds

This fund aims to provide returns in excess of inflation while providing stability and diversification of risk. It invests in a diversified portfolio of actively and/or passively managed underlying funds with between 20% and 60% invested in equities of any region, including emerging markets. The remainder is invested in funds that can invest in any type of fixed interest securities (including index-linked), property and property-related securities, derivatives and cash.

Risk warnings A, B, C, D, E, G, I, J, L, N, O

Low to medium volatility

FL Cautious Index Fund of Funds

This fund aims to provide returns in excess of inflation while providing stability and diversification of risk. It invests between 20% and 60% in equity index tracking funds of multiple regions (including emerging markets), with the remainder invested in fixed interest index tracking funds, cash funds and other money market instruments. Assets held by fixed interest index tracking funds can include UK and overseas corporate and government bonds.

Risk warnings A, B, C, D, E, L

Low to medium volatility

FL Defensive Index Fund of Funds

This fund aims to reduce the risk of capital loss by investing mainly in fixed interest index tracking funds, cash funds and other money market instruments. Up to 35% of the fund can also be invested in equity index tracking funds of multiple regions (including emerging markets). Assets held by fixed interest index tracking funds can include UK and overseas corporate and government bonds.

Risk warnings A, B, C, D, E, K, L

Low to medium volatility

FL F&C Ethical Bond

F&C state that the fund’s objective is to maximise returns through investment primarily in fixed interest securities of an ethically screened and diversified universe of companies. The fund will invest in investment grade and high yield securities. Government securities are generally excluded. The fund may also invest in warrants, collective investment schemes, money market instruments and derivatives. Non-Sterling denominated issues are permitted and any currency exposure will normally be hedged back to Sterling. To manage risk the fund will aim to achieve a wide degree of diversification across the available issuers and the manager will adopt a rigorous credit management process. Derivatives may be used to hedge investment risk, replicate investment positions and generate additional return in a risk controlled manner. This will include the use of currency forwards, interest rate swaps and single name credit default swaps. Risk warnings A, B, C, D, E, F, G, M

Low to medium volatility

FL Fidelity Moneybuilder Income

Fidelity state that the fund aims to generate an attractive level of income. The fund invests primarily in Sterling denominated (or hedged back to Sterling) bonds. The fund has the freedom to invest outside the fund’s principal geographies, market sectors, industries or asset classes. Investments may be made in bonds issued in currencies other than the fund’s denominated currency. Exposure to

currencies may be hedged. The fund can invest in bonds issued by governments, companies and other bodies. The fund has discretion in its choices of investments within its objectives and policies.

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Low to medium volatility

FL Fixed Interest

The fund aims to achieve long-term growth from a combination of income generation and capital growth. The fund invests mainly in UK Government securities and other Sterling denominated fixed interest and index-linked securities. Non-Sterling bonds may also be held with any foreign currency exposure typically hedged back to Sterling. The fund can also invest in money market instruments and short-term bonds.

Risk warnings A, B, E, J, O

Low to medium volatility

FL Index-Linked

The fund aims to achieve long-term growth from a combination of income generation and capital growth. The fund invests mainly in UK Government and UK Government backed index-linked securities and Sterling denominated overseas government backed index-linked securities. The fund may also invest in other Sterling denominated fixed interest securities and non-Sterling bonds with any foreign currency exposure typically hedged back to Sterling. The fund can also invest in money market instruments and short-term bonds.

Risk warnings A, B, E, J, O

Low to medium volatility

FL Invesco Perpetual Corporate Bond

Invesco Perpetual state that the objective of the fund is to generate a combination of income and capital growth over the medium to long term. The fund seeks to achieve its objective by investing primarily in investment grade corporate debt securities. The fund may also invest in government, unrated and sub-investment grade debt securities, cash, cash equivalents, money market instruments, collective investment schemes and other transferable securities. Derivative instruments can be used for investment purposes and for efficient portfolio management. They may include derivatives on currencies, interest rates and credit, and can be used to achieve both long and short positions.

Risk warnings A, B, E, G

Low to medium volatility

FL Investec Strategic Bond

Investec state that the fund aims to generate an income primarily through investment in high quality bonds

(investment grade bonds). Bonds held may be corporate or government and of any duration and may be investment grade or sub investment grade. The fund may, in addition to its other investment powers, use cash and near cash (which includes money market instruments and deposits) and exchange traded and over the counter derivatives and forward currency contracts for hedging and investment purposes. The fund may also invest, at the manager’s discretion, in other transferable securities. Use may be made of stock lending and borrowing. Derivatives may be used for the purposes of efficient portfolio management and meeting the investment objectives.

Risk warnings A, B, C, E, G, J

Low to medium volatility

FL Kames Sterling Corporate Bond

Kames Capital state that the fund’s objective is to maximise total return. The fund invests mainly in Sterling denominated bonds. This encompasses investment grade corporate bonds, government bonds and cash. Up to 10% of the fund may be invested in high yield bonds. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. Derivatives and forward

transactions will be used for the purposes of efficient portfolio management (including hedging) and to meet the investment objectives of the fund.

Risk warnings A, E, G

Low to medium volatility

FL Kames Strategic Bond

Kames Capital state that the fund’s objective is to maximise total return. The fund invests in global debt instruments denominated in any currency, ranging from AAA government bonds through to high yield and emerging market corporate bonds. At least 80% of the fund will be invested in Sterling and other currency denominated bonds hedged back to Sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. Derivatives may be used for the purposes of efficient portfolio management (including hedging) and to meet the investment objectives of the fund.

References

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