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E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
E579 Investment funds Portfolio
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E579 Investment funds Portfolio

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  • 1. 1 of 14  Investment funds portfolio Clerical Medical Investment Group Limited
  • 2. 2 of 14 Investment funds portfolio Clerical Medical offers a wide range of investment funds to suit virtually every need. Most of our funds are managed in London by Insight Investment Management Limited, the investment arm of the HBOS Group. Insight Investment have a clear mission – to help people and companies make their money grow. Their investment approach aims to achieve consistent returns over the long term, without exposing the investment to unnecessary risk. To help make choosing the right fund easier, we have given each of our funds a risk classification based on their investment objectives and composition. Clerical Medical Investment Group Limited 1
  • 3. 3 of 14 What are the investment options? There is a range of different types of investment funds to choose from: The With-Profits Funds* Shares in the long-term performance of Clerical Medical’s With-Profits Fund. Our ‘With-profits summary’ gives more details on with-profits investments and how they work. Ask your financial adviser for a copy. Managed Funds Fully managed unit-linked funds Specialist Funds Unit-linked funds which specialise in particular markets External fund links** Unit-linked funds managed by carefully selected investment houses (please refer to the ‘External funds portfolio’ leaflet (reference X1556) for more details). * The With-Profits Funds are not available with the FutureProof Individual or Group Stakeholder Plans. **The external fund links are not available with the FutureProof Individual or Group Stakeholder Plan and Invested Annuity products. They are only available on the following products: Pensions ● FutureProof Individual Pension Plan ● FutureProof Executive Pension Plan ● FutureProof Small Self-Administered Scheme ● FutureProof Free-Standing AVC ● FutureProof Individual Buy-Out Plan Investment bonds ● Flexible Growth Bond ● Income Bond ● Investment Bond ● Flexible Bond Note: There may be restrictions on the availability of funds to particular products. You should refer to the product details for further information. Ask your financial adviser for a copy. 2 Clerical Medical Investment Group Limited
  • 4. 4 of 14 With-Profits Funds These funds share in the long-term performance of Clerical Medical’s With-Profits Fund. They aim to suit the different needs of investors seeking either capital growth or immediate ‘income’. Please note: With the exception of the Invested Annuity With-Profits Fund, with-profits funds should not be chosen for pension investments with a term of less than five years. There are different with-profits funds available for each type of product: Pensions ● The Regular Contribution Fund – This fund receives all regular annual or monthly contributions. ● The Single Contribution Fund – This fund receives all single contributions, switches from the unit-linked funds or transfers from other approved pension schemes. Pensions with-profits bonus rates There are two types of with-profits bonus: ● A regular bonus (sometimes called ‘bonus interest’) which is announced annually and added to the fund daily over the year. The current regular bonus rate is 3.0% per year for both pensions regular and single contributions funds (2003/2004). ● A final bonus (sometimes called ‘terminal bonus’) may also be added to your pension plan when you retire or if you die before your retirement age. In times of poor investment conditions, if units in our With-Profits Fund are cashed in or switched other than if you die or at your Selected Retirement Age, we may have to reduce the amount you receive. This is known as either a market value reduction (MVR) or market value adjuster (MVA). For further details on with-profits investments see our ‘With-profits summary’ (reference X1331), which is available on request. The ultimate value of, and the amount of income you receive from, a with-profits investment depends on the level of future bonuses which cannot be guaranteed. Clerical Medical Investment Group Limited 3
  • 5. 5 of 14 Invested Annuity Invested Annuity With-Profits Fund – available for the FutureProof Invested Annuity. Invested Annuity With-Profits Fund bonus rates ● A regular bonus, which is added to your basic income payment at the anniversary date of your annuity. At each anniversary, any ‘regular bonus’ is determined by the performance of the With-Profits Fund and the start date of your annuity. Any regular bonuses that are added are carried forward each year. The current regular bonus rate is 2.5% per year (2003/2004). ● A possible further bonus, called an extra bonus which might be added to your income payments at the anniversary date of your annuity and will be paid for the coming year. Extra bonus is not carried forward each year. It only applies to the payments in that particular year. The income that you receive can go up or down and is not guaranteed. Investment bonds ● With-Profits Income Fund – is available for investments in the Income Bond. It aims to give a relatively high ‘income’ with as much stability of both ‘income’ and capital as we can provide. ● With-Profits Growth Fund – is available for investments in the Flexible Growth Bond and existing investments in the Flexible and Investment Bonds. It aims to generate capital growth over the medium to long term (at least five years), with some stability over the short term. Investment bonds with-profits bonus rates Our ‘With-profits funds explained’ leaflet (reference SA1617), will give you details of the current bonus rates. Ask your financial adviser for a copy. The ultimate value of, and the amount of income you receive from, a with-profits investment depends on the level of future bonuses which cannot be guaranteed. If you invest in the With-Profits Fund, a market value reduction (MVR) may apply. The income that you receive can go up or down and is not guaranteed. 4 Clerical Medical Investment Group Limited
  • 6. 6 of 14 Managed funds These are fully managed, unit-linked funds. The investment managers select from a specified range of investment markets and sectors with the intention of achieving the aims of the fund. Unit-linked funds offer returns directly driven by the performance of stocks, shares and other assets in which the funds are invested. These funds can show higher returns but greater fluctuation in value than the With-Profits Fund. Clerical Medical’s funds each have a different degree of risk and potential for gain. The risk grades given to each of our funds show our current interpretation of where each fund fits into the gradings. The risk grades are Clerical Medical’s views and therefore only a guide to help with selecting funds by considering the risk associated with each fund. As a general rule lower risk (grade 1) can mean potentially lower gains and lower losses, where as higher risk (grade 5) can mean potentially larger gains and larger losses. If you would like information about the external funds that are available, please ask for a copy of our ‘External funds portfolio’ (reference X1556). We strongly recommend that you consult with your financial adviser before deciding which fund(s) to invest in. Clerical Medical Investment Group Limited 5
  • 7. 7 of 14 Cautious Managed Aim – To achieve long-term growth by Lower risk, Higher risk, lower return higher return re-investing the income generated by the underlying potential potential 1 3 5 assets. The manager invests predominantly in UK equities, fixed interest, index-linked stocks and cash. Non-Equity Managed Aim – The fund invests in a range of commercial Lower risk, Higher risk, lower return higher return property, cash investments, fixed interest and index- potential potential 1 3 5 linked stocks and aims to provide a long-term total return in excess of returns offered by high interest savings accounts. Balanced Managed Aim – A managed fund in which the manager has Lower risk, Higher risk, lower return higher return full discretion to invest in a range of UK and potential potential 1 3 5 overseas equities, fixed interest, index-linked stocks, property and cash investments. It aims to provide long-term capital growth. Adventurous Managed Aim – The fund may invest in an unrestricted range Lower risk, Higher risk, lower return higher return of global equities, with the aim of providing higher potential potential 1 3 5 long-term growth than the average balanced managed fund. The fund is suitable for those who accept a higher degree of risk. International Aim – The manager may invest in UK and overseas Lower risk, Higher risk, lower return higher return equities, with the aim of providing long-term capital potential potential 1 3 5 growth. The fund generally aims to have a higher exposure to overseas equities than the average balanced managed fund. 6 Clerical Medical Investment Group Limited
  • 8. 8 of 14 Specialist funds These are unit-linked funds. The investment managers select from a specified range of investment markets and sectors with the intention of achieving the aims of the fund. Unit-linked funds offer returns directly driven by the performance of stocks, shares and other assets in which the funds are invested. These funds can show higher returns but greater fluctuation in value than the With-Profits Fund. Clerical Medical’s funds each have a different degree of risk and potential for gain. The risk grades given to each of our funds show our current interpretation of where each fund fits into the gradings. The risk grades are Clerical Medical’s views and therefore only a guide to help with selecting funds by considering the risk associated with each fund. As a general rule lower risk (grade 1) can mean potentially lower gains and lower losses, where as higher risk (grade 5) can mean potentially larger gains and larger losses. If you would like information about the external funds that are available, please ask for a copy of our External funds portfolio (reference X1556). We strongly recommend that you consult with your financial adviser before deciding which fund(s) to invest in. Cash Fund Aim – The fund invests in deposits and other Lower risk, Higher risk, lower return higher return short-term money instruments with the aim of potential potential 1 3 5 providing the best returns consistent with protection of capital. Halifax Fund (Pensions only) Lower risk, Higher risk, Aim – The fund’s assets are wholly placed on lower return higher return potential potential deposit within the HBOS Group. The rate of return 1 3 5 is a variable rate, which moves in line with the Bank of England Base Rate. Gilt & Fixed Interest Fund Aim – The fund invests in a range of fixed interest Lower risk, Higher risk, lower return higher return assets with the aim of providing long-term growth. potential potential 1 3 5 Clerical Medical Investment Group Limited 7
  • 9. 9 of 14 Index-linked Fund Aim – The fund invests in a range of securities Lower risk, Higher risk, lower return higher return where the capital value and/or interest payments potential potential 1 3 5 are linked to a specific index. Distribution Fund (Life only) Aim – All the income generated within the fund is Lower risk, Higher risk, lower return higher return distributed, while the capital is left untouched. The potential potential 1 3 5 manager may invest in the full range of assets, predominantly UK equities, fixed interest, index- linked stocks and cash. Distribution Accumulation (Life only) Aim – All the income is re-invested within the fund, Lower risk, Higher risk, lower return higher return leaving the capital untouched. The manager may potential potential 1 3 5 invest in the full range of assets, predominantly UK equities, fixed interest, index-linked stocks and cash. With-Profits Lower risk, Higher risk, Aim – To generate capital growth over the medium lower return higher return potential potential to long term (at least five years), with some stability 1 3 5 over the short term. With-Profits Income (Life only) Aim – To provide a relatively high ‘income’ with as Lower risk, Higher risk, lower return higher return much stability of both ‘income’ and capital as we potential potential 1 3 5 can provide. Managed Income Fund (Life only) Aim – To provide the highest level of ‘income’ that Lower risk, Higher risk, lower return higher return is consistent with maintaining capital stability over potential potential 1 3 5 the medium to long term. As a result, ‘income’ payments may vary from year to year. The fund has the ability to invest in a range of assets including equities, fixed interest, property and cash. 8 Clerical Medical Investment Group Limited
  • 10. 10 of 14 Property Fund Aim – The fund invests in retail, office, industrial Lower risk, Higher risk, lower return higher return and agricultural properties and may also finance potential potential 1 3 5 developments and acquire land for development. It aims to provide long-term growth. Equity High Income Fund Aim – To provide an above average and increasing Lower risk, Higher risk, lower return higher return income, together with long-term capital growth by potential potential 1 3 5 investing primarily in shares of UK companies. Equity High Income (Inc) (life only) Aim – To provide a growing income together with Lower risk, Higher risk, lower return higher return long-term capital growth. potential potential 1 3 5 In the short term, both income and capital level could be variable. The fund will invest primarily in the shares of UK companies which offer a higher than average yield. Ethical Fund Aim – To achieve long-term capital growth by Lower risk, Higher risk, lower return higher return investing primarily in shares of UK and/or potential potential 1 3 5 European companies that meet a range of ethical criteria. European Fund Aim – To achieve long-term capital growth by Lower risk, Higher risk, lower return higher return investing primarily in shares of European (excluding potential potential 1 3 5 UK) companies. Global Equity Tracker Aim – The fund aims to achieve long-term growth by Lower risk, Higher risk, lower return higher return investing in four underlying tracker funds which potential potential 1 3 5 seeks to match the performance of the FTSE All Share, S&P 500, Dow Jones Eurostoxx 50 and Nikkei 300. UK Equity Fund Aim – The fund invests in a range of UK equities Lower risk, Higher risk, lower return higher return with the aim of providing long-term growth. potential potential 1 3 5 UK Equity Tracker Fund (Pensions only) Aim – To achieve long-term growth by investing in a Lower risk, Higher risk, lower return higher return representative sample of UK equities, and for these potential potential 1 3 5 assets to match the capital performance of the FTSE All-Share index. Clerical Medical Investment Group Limited 9
  • 11. 11 of 14 UK Smaller Companies Fund Aim – To achieve long-term capital growth by Lower risk, Higher risk, lower return higher return investing primarily in UK smaller companies. potential potential 1 3 5 Japan Fund Aim – To achieve long-term capital growth by Lower risk, Higher risk, lower return higher return investing primarily in shares of Japanese potential potential 1 3 5 companies. North American Fund Aim – To achieve long-term capital growth by Lower risk, Higher risk, lower return higher return investing primarily in shares of US Companies. potential potential 1 3 5 Pacific Fund Aim – To achieve long-term capital growth by Lower risk, Higher risk, lower return higher return investing primarily in shares of Asian (excluding potential potential 1 3 5 Japan) and Australasian companies. Retirement Protection (pensions only) Aim – The fund aims to preserve the level of Lower risk, Higher risk, lower return higher return retirement income by providing protection against potential potential 1 3 5 changes in the cost of pension annuity purchase, through investment in long-dated UK gilt edged stocks. 10 Clerical Medical Investment Group Limited
  • 12. 12 of 14 Annual management charges This table shows the annual management charges (AMC) that apply to the range of unitised funds. Fund name Pension AMC Life AMC With-Profits 1.0% 1.3% With-Profits (Regular)** 1.0% N/A With-Profits (Single)** 1.0% N/A With-Profits Income N/A 1.30% Invested Annuity With-Profits 1.0% N/A Managed Income N/A 1.0% Distribution N/A 1.0% Distribution Accumulation N/A 1.0% Non-Equity Managed 1.0% 1.0% Balanced Managed 1.0% 1.0% Adventurous Managed 1.0% 1.3% Cautious Managed 1.0% 1.0% Cash 1.0% 1.0% Ethical 1.0% 1.0% European 1.0% 1.3% Gilt & Fixed Interest 1.0% 1.0% Index-Linked 1.0% 1.0% International 1.0% 1.3% Japan 1.0% 1.3% North American 1.0% 1.3% Pacific 1.0% 1.3% Property 1.0% 1.0% Equity High Income 1.0% 1.0% Equity High Income (Inc) N/A 1.0% UK Smaller Companies 1.0% 1.0% UK Equity 1.0% 1.0% UK Equity Tracker 1.0% N/A Global Equity Tracker 1.0% N/A Retirement Protection 1.0% N/A Halifax* 1.0% N/A * Not available within the Trustee Investment Account ** Not available within the FutureProof Individual or Group Stakeholder Pension Plans. Clerical Medical Investment Group Limited 11
  • 13. 13 of 14 Important notes The value of an investment may fluctuate and cannot be guaranteed. You may not receive back what you originally invested. The income that you receive can go up or down and is not guaranteed. The terms and conditions in this booklet are those which applied at the time it was published and could alter in the future. 12 Clerical Medical Investment Group Limited
  • 14. 14 of 14  E579/0903 Part of the HBOS Group Issued by Clerical Medical Investment Group Limited. Registered Office 33 Old Broad Street, London EC2N 1HZ. Registered in England and Wales, Registered No. 3196171. Authorised and regulated by the Financial Services Authority. www.clericalmedical.co.uk

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