BARCLAYS MULTI-MANAGER

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BARCLAYS MULTI-MANAGER

  1. 1. BARCLAYS MULTI-MANAGER Access some of the world’s finest investment managers
  2. 2. Contents Access some of the world’s finest investment managers 2 Selecting the best investment managers 3 10 reasons why 4 How Barclays Multi-Manager works 6 World class managers Key Information – Open Invest service Incorporating all the information required to be included in a Simplified Prospectus 7 Funds 8 Section 1 – The Open Invest service 12 Section 2 – Fund specific information 17 Section 3 – ISA details 21 Section 4 – Further information Open Invest Terms and Conditions 23 Definitions 25 Section 1 – General dealing terms 35 Section 2 – Additional Terms for ISAs 37 Schedules 1
  3. 3. Selecting the best investment managers Barclays Multi-Manager gives you access to some of the With close to £7 billion already invested, Barclays Multi- world’s finest investment managers in a single fund. Manager is one of the largest multi-manager providers in the UK. Our size allows us to negotiate better terms with By identifying investment managers with different talents investment managers and also give you access to managers and strengths, you should benefit from superior not normally available to individual investors. diversification and more consistent investment returns. And there are lots of other reasons why Multi-Manager is You have the choice of two investment strategies, (Income attractive. Portfolio or Balanced Portfolio) each using a different blend of asset classes to match your needs. However, please bear in mind these are medium to long term investments, that is, five years plus and that their value and any income from them can go down as well as up. So you might not get back what you originally invested. 2
  4. 4. 10 reasons why 1 A fully implemented solution 6 Smoother investment returns Decisions as to which investment managers and assets to A blending of managers of different styles and approaches is invest in are taken for you in keeping with your risk profile designed to generate smoother returns. and objective. 7 Dedicated professionals 2 World class investment managers In addition to selecting and monitoring investment Your portfolio will include some of the world’s leading managers, we have dedicated teams focusing on asset investment managers including managers not normally allocation and implementation. available to individuals. 8 Dynamic asset allocation 3 A dynamic manager line-up Mix of assets adjusted to reflect the Barclays Wealth view on We constantly monitor managers and will make changes investment markets for additional return potential. when we believe they are in your best interests. 9 Tax efficient 4 Superior diversification Investments bought and sold within your portfolio with no Multi-asset class portfolios include non-traditional asset capital gains tax.x. classes such as hedge funds and emerging markets in keeping with your risk profile. 10 Simplified paperwork Multiple managers, but consolidated reporting and income. 5 Efficient investment strategies Quantitative modelling helps create optimised portfolios, designed to maximise potential return for a given level of risk. 3
  5. 5. How Barclays Multi-Manager works The Income Portfolio and the Balanced Portfolio both invest As well as monitoring investment managers, we also in a range of underlying funds, each using the skills of actively manage the portfolios. Tactical asset allocation different investment managers chosen for their expertise in allows us to adjust asset allocations based on our views of that area. investment markets. You benefit from an actively managed investment in line with our latest thinking. Identifying which managers will do well is complex. It is not as simple as just looking at past performance. We are more interested in future returns. We run our own analysis, looking at multiple aspects of a manager’s investment process and performance, meeting the team many times before they are considered for selection. 4
  6. 6. The Portfolios are well diversified Income Portfolio UK Shares - 6.9% Artemis US Shares - 1.1% Cash - 6.5% Invesco Fiduciary Newton Hillman Capital INTECH Kinetics Other - 14.3% Europe Shares - 2.4% AXA Rosenberg JP Morgan Hedge Funds - 1.1% TT International Property - 1.8% Emerging Market Bonds - 4.7% UK Bonds - 26.3% Wellington BGI Fidelity Insight Investment Royal London Other Bonds - 13.2% Western Asset Nomura Pimco US Bonds - 21.7% Goldman Sachs Balanced Portfolio Hedge Funds - 10.8% Cash - 2.5% Property - 2.1% UK Shares - 31.8% Aberforth AllianceBernstein Emerging Market Bonds - 7.7% Artemis INVESCO Perpetual Wellington Mgmt Newton Old Mutual Schroders Global Bonds - 12.3% Standard Life AllianceBerntein TT International Goldman Sachs Nomura PIMCO US Shares - 16.2% Fiduciary UK Bonds - 10.6% Hillman Fidelity INTECH Insight Investment Kinetics Royal London Global Shares - 1.1% Western Asset Japanese Shares - 3.0% Emerging Market Shares - 1.9% AllianceBernstein Aberdeen Schroders AIG Investments BlackRock As each of the portfolios are actively managed, the actual allocations and managers employed may differ from above. Please note that the greater amount invested in shares, the greater the potential return but also the risk of capital loss. 5
  7. 7. World class managers By following our indepth and sophisticated selection process, we believe that we have identified some of the best specialist investment managers available worldwide. We are pleased to introduce them to you here. Barclays Multi-Manager constantly monitors and reviews managers and will make changes when we believe this to be in the best interest of investors. The actual managers used at any one time by Barclays Wealth may therefore differ from those shown in this brochure. 6
  8. 8. Key Information – Open Invest service Incorporating all the information required to be included in a Simplified Prospectus Funds L&G (Barclays) Income Portfolio Trust L&G (Barclays) Balanced Portfolio Trust Barclays Multi-Manager offers you Funds whose underlying assets are managed by some of the world’s leading investment managers. Each portfolio provides a simple, straightforward way of getting exposure to a broad range of investments that aim to deliver consistent, long-term returns. Each Portfolio Trust (Fund) is managed by Legal & General (Unit Trust Managers) Limited. These funds are brought to you by the Legal & General and Barclays alliance, through the Open Invest service. Barclays is the Investment Manager of the Funds and is therefore responsible for the selection and monitoring of the investment managers who manage the underlying assets of the Funds. 7
  9. 9. Section 1–The Open Invest service The aims of the Open Invest service How do these investments work? To provide you with a service giving access to investment in a You make a lump sum payment which is invested on your selection of Funds. behalf in the Fund of your choice. To help you decide which Fund to select, please read Section 2 – Fund-specific What is a unit trust? information. A unit trust is simply a pool of individual investors’ money, which buys a spread of investments. The Fund is then divided Risk factors into units and the number of units you buy represents your Both capital and income values may go down as well as up share of the Fund. and are not guaranteed. Therefore you may not get back the full amount of your original investment. What is an OEIC? An Open Ended Investment Company (OEIC), is very similar If you exercise your right to cancel your investment, you may to a unit trust, with the main difference being that it is set up not get a full refund of the amount invested, if the value of the and run as a company. An OEIC will usually be made up of a investment falls before the Notice of Cancellation is received by number of sub-funds. When you invest in a sub-fund of an us. This is because an amount equal to that fall in value will be OEIC, you buy a number of shares from a pool shared with deducted from any refund you would otherwise receive. other investors. The number of shares you buy represents your share of the sub-fund. Past performance is not a guide to future performance. Some Funds have specific risks. Full details of the specific risks Unit trusts and OEICs give a greater spread of investments associated with these Funds can be found in Section 2 – Fund than you might be able to achieve on your own, thus reducing specific information. risk and increasing the investment potential, as well as providing the benefits of expert fund management. Your questions answered Throughout this brochure, both unit trusts and OEICs shall be What is the Open Invest service? referred to generically as 'Funds' and units/shares in the Funds Open Invest is a service provided to Barclays customers shall be referred to as 'units'. which is offered by Woolwich Plan Managers Limited, part of the Barclays Group. The service provides a facility for Your investment customers to hold their investments in a consolidated You agree to invest a lump sum which should be viewed as a account. medium to long-term investment. Barclays views medium to long-term as being for at least five years. 8
  10. 10. Who can use the Open Invest service? Can I make additional investments? The Open Invest service is available to residents of the UK, You can top up your investment at any time by sending us aged 18 or over. a cheque or paying by debit card over the telephone. Please see our Contact Address on page 21. The minimum lump How much can I invest? sum top-up is £500. The minimum lump sum investment for an online application is £3,600 per Fund. The maximum lump sum investment for What happens if I need to get my money out? an online application is £100,000 per Fund. You may instruct us to sell units, on your behalf, at any time. If you wish to make a withdrawal or encash your total How is my money invested? investment and close your Account, you can instruct us either When you make a lump sum payment, your money will be by telephone or in writing. Please see our Contact Address used, by us, to buy units in your chosen Fund as instructed by on page 21. If you instruct us by telephone, this must be you in your application. confirmed in writing before any payment will be made. Please note that if the value of any remaining units in your Account Subject to any verification checks that we must carry out to falls below £3,000, you will be required to sell your entire comply with legal requirements, the purchase will normally holding. be at a price calculated at the Fund’s valuation point on the business day that follows our acceptance of your application Payment will normally take place following the later of: and subscription at our Contact Address. a) five Business Days after the date of transaction; or b) upon receipt of your written withdrawal instructions Can I take an income from my investment? and/or any other documents required. You can take an income from the Income Portfolio. You will be Please remember that this is a medium to long-term allocated distribution units and the income will be paid directly investment. Barclays views medium to long-term as being for into your bank or building society account every month. Income at least five years. will be generated net of basic rate tax. If you are a higher rate taxpayer, you will need to declare the income on your tax return What happens to my investment if I die? and you will have future tax to pay. In the event of your death, we will deal with your investment in accordance with the Terms and Conditions and our Can I switch my investment to other Funds? procedures. A copy of our procedures may be obtained You can instruct us to switch some, or all, of your existing from our Contact Address on request. We will not sell your units, into another Fund. If you do switch your investment to investments unless we receive adequate written instructions another Fund, you will receive a notice detailing your right to from your personal representatives. Please note that the Terms change your mind. Your rights will be similar and Conditions will continue to apply until your Account is to those described under ‘Your right to cancel’ on page 11. closed. For Accounts held in joint names, the Account will You should also consider any impact switching may have on continue to be held in the name of the survivor(s). your personal liability to tax. What about UK tax? Set out below is a summary of the main tax issues, based on current tax law and practice. These may change in the future. The value of tax advantages will depend on your individual circumstances. 9
  11. 11. Tax will be paid by the Funds as follows: Equalisation There is no tax payable on capital gains realised from the The first distribution paid in relation to any unit will include disposal of assets held within a Fund. UK dividend income an amount of equalisation. This is the average of the amount is exempt from tax. Any other income generated within the of income already in the price of all units when they are Fund (net of allowable expenses and interest distributions) bought, and for the first distribution this is treated as a is liable to UK tax at 20%. return of capital. Consequently, this part of the distribution will not carry a tax credit. Interest distributions Normally paid by Funds investing mainly in fixed interest Stamp Duty Reserve Tax securities and/or short term deposits, these are paid after the Stamp Duty Reserve Tax (SDRT) is due on the value of any deduction of UK Income Tax at 20%. However, individuals units that are repurchased and then resold by the Unit Trust who are not ordinarily resident (NOR) in the UK may be Manager (UTM) or Authorised Corporate Director (ACD) in eligible to receive interest distributions without the income the case of an OEIC. However, SDRT liability may be reduced tax deduction, provided that they have completed a valid in certain circumstances, for example, depending on the NOR declaration. nature of investments made by the Fund. The UTM/ACD will deduct from the Fund each month any liability to SDRT. Dividend distributions (Normally paid by Funds investing mainly in shares) are Important paid with a tax credit of one ninth of the dividend (10% You have sole responsibility for the management of your tax of the gross). and legal affairs including making any applicable filings and payments and complying with any applicable laws and In addition to the tax on the Fund, you also need to be aware regulations. We have not and will not provide you with tax or of personal tax implications as follows: legal advice and recommend that you obtain your own (i) Interest distributions (as detailed previously): independent tax and legal advice tailored to your individual – basic rate taxpayers will have no further liability. circumstances. – higher rate taxpayers will be subject to additional tax, at a rate of 20% of the gross interest distribution. What documentation will I receive? – investors who are not liable to tax, and lower rate For a lump sum investment that we have made on your taxpayers, may reclaim all or some of the tax deducted, behalf, a deal acceptance letter confirming the details of the from HM Revenue & Customs. investment will normally be issued within one Business Day of the purchase of units. Upon your prior written request, we can (ii) Dividend distributions (as detailed previously): arrange for you to receive a copy of the annual and half-yearly – basic rate and lower rate taxpayers will have no further report and accounts and any additional information sent to liability to tax. holders of the units in each Fund in which you have invested. – higher rate taxpayers will have further tax to pay at the rate of 25% of the dividend received. How can I keep track of my investment? – investors who are not liable to tax cannot reclaim the Unit prices are calculated each Business Day. The prices, tax credit. together with the estimated yields of each Fund can be obtained from www.legalandgeneral.com/utprices. Current You may be liable for Capital Gains Tax on any sale, switch or prices can also be obtained by telephoning Barclays Open other disposal from a unit trust or an OEIC. Invest at our Contact Address on page 21. 10
  12. 12. To find out how much your investment was worth, simply Selling units multiply the number of units you hold by the unit price. Every You may instruct us to sell some or all of your units on your six months, we will send you an Account statement, detailing behalf at any time. You should instruct us at our Contact all transactions we have made on your behalf during the Address, either by telephone or in writing. If you place a deal statement period and a valuation at the end of that period. by telephone, this must be confirmed in writing. Please note that if the value of any remaining units in your Account falls How will charges and expenses affect my below £3,000, you will be required to sell your entire holding. investment? The effects of charges and expenses, using a £1,000 lump Units will normally be sold at the price calculated at the sum example investment through the Open Invest service, can valuation point on the Business Day, following receipt of be found in Section 2 – Fund-specific information. your instructions. Note: Legal & General may change the charges that it makes Settlement will normally take place following the later of: on the Funds from time to time. You will be given prior notice a) five Business Days after the date of transaction; or of any increase. b) upon receipt of your written withdrawal instructions and/or any other documents required. Dealing Dealing takes place every Business Day between the hours Your right to cancel of 8.30am and 5.30pm Monday to Friday. Subject to any • You have a right to cancel your Open Invest Account within verification checks necessary, your investments will be 14 days of when we have accepted your application form. purchased or sold by us, on your behalf, as soon as reasonably You have this right irrespective of whether you have practicable. This will normally be no later than the relevant received advice on your investment. Fund’s valuation point on the next Business Day that follows our acceptance of your instruction at our Contact Address. • You also have a right to cancel your initial investment and you will receive a separate notice of this right. Unit prices Units are usually valued each Business Day at the valuation • You will receive notice of your right to cancel the initial point. There will be one single price for buying and selling investment, and you will then have 14 days from when units. This price is normally based on the mid-market you receive that notice to change your mind. To cancel, valuation of the Fund’s underlying assets and does not you should return the form attached to the notice within include the initial charge (as detailed in the ‘Fund-specific the 14 days to: Barclays Open Invest, Mellon House, information’ on pages 12 to 16) which is charged separately. Ingrave Road, Brentwood, Essex CM15 8TG. If you do However, to take account of the fact that the price of many cancel the initial investment the amount you will get back of the underlying assets in a Fund depends on whether the will be reduced by any market loss during the period up asset is being bought or sold, Legal & General may include a until we receive your notice of cancellation. dilution adjustment in the price of a unit to ensure fair • If you do not exercise your cancellation rights within the treatment for investors. If applied, the dilution adjustment 14 day cancellation period then: will be paid into the relevant Fund and will become part of – you will be subject to all investment risks as detailed in the property of the Fund. this document – you will incur all charges as detailed under the ‘How will charges and expenses affect my investment?’ Section 11
  13. 13. Section 2 – Fund-specific information The L&G (Barclays) Income The Fund may invest in overseas investments, and therefore Portfolio Trust changes in rates of exchange between currencies may cause the value of your investment to rise or fall. Its aims The investment objective is to generate income with some The underlying investments of the Fund will include Funds potential for capital growth through an exposure mainly to which invest in fixed interest securities. Unit values will bonds, and to a lesser extent, other investments in accordance therefore be sensitive to interest rate trends. The value of units with the investment resrictions. is likely to fall if interest rates rise in the medium and long- term but similarly could rise if interest rates fall. The Fund will invest mainly in a wide range of collective investment schemes and will pursue an active asset allocation Please also refer to ‘Risk factors’ on page 8. policy across all countries, currencies and sector representations which may, from time to time, lead to high Your questions answered asset allocations to individual markets or asset types. What are the income payment dates? The Fund may invest in transferable securities, money market Income payment dates for the Fund are on the 29th of each instruments derivatives, near cash, cash and deposits. month, with the final payment of the accounting year made on the 29th September. The corresponding ex-dividend The Manager may invest in derivatives for investment dates are on the 30th of each previous month. purposes, however it is not intended that the use of derivatives will cause the net asset value of the Fund to have higher What is a yield? volatility or otherwise cause the risk profile of the Fund to The distribution (or running) yield on a Fund gives an change. indication of the current level of income. The underlying (or redemption) yield gives a longer term prediction that Your investment combines the current level of income with the expected You agree to invest, through us, a lump sum which should be profit or loss for your investment, assuming the securities are viewed as a medium to long-term investment. Barclays views held to maturity. The underlying yield will be higher than the medium to long-term as being for at least five years. current distribution yield if the capital value of the Fund is expected to increase. It will be lower than the current Funds may offer more than one class of unit. The information distribution yield if the capital value of the Fund is expected to in this brochure relates to class A units only. decrease. Both yields will vary. Risk factors How will charges and expenses affect my The annual management charge of the Fund is deducted investment? from capital, and not from income. This will result in the Initial charge Fund not growing as quickly and may result in capital erosion. There is an initial charge of up to 4% on investments made into the Fund through the Open Invest service. 12
  14. 14. L&G (Barclays) Income Portfolio Trust - Fund example Distribution units At the end of Investment to date (£) Income to date* (£) Effect of deductions to date (£) What you might get back (£) the year 1 1,000 41.50 56.40 953 3 1,000 123 91.70 940 5 1,000 204 130 927 10 1,000 402 244 896 * These figures assume a rate of income of 4.9% gross p.a. based on the gross estimated yield as at 7 May 2008. The figures in the table, which are based on an initial charge of 4.0%, do not include dealing costs incurred by the Fund. Initial charge for online applications Putting it another way, this would have the same effect as For online applications, the initial charge is 1.5% on bringing investment growth from 5.2% a year down to 3.2% investments made into the Fund through the Open Invest a year for lump sum investments. Please note that all the service. figures in the tables are rounded down to three significant figures. Annual management charge Each month an amount equal to 1/12th of 1.00% of the The figures are not guaranteed and serve only to demonstrate Fund’s value will be deducted from the capital of the Fund by the effect of charges and expenses on an investment. Legal & General to cover its management costs. Portfolio Turnover Rate Extra expenses The Portfolio Turnover Rate (PTR) is an indication of how The Fund will bear other expenses (trustee fees and expenses, much the investment manager changes the Fund’s portfolio custodian fees, registrar fees, audit fees and regulator fees) of investments in a year. There is a cost involved with the which amount to approximately 0.45% and these will be buying and selling of these investments. The higher the deducted as due. Extra expenses are paid out of income. measure, the more changes have been made and the higher the cost of dealing paid for by the Fund has been. A PTR of Total Expense Ratio 200% is equivalent to the fund manager selling all of the The Total Expense Ratio (TER) shows the annual operating Fund’s investments and replacing them with others once expenses of the Fund. It does not include transaction expenses. over the year. Changes to the investment objective and The TER for the Fund is 1.45%. It is a requirement in the policy from 7 May 2008 means that the PTR for this Fund is European Economic Area States to highlight the TER to help not yet available. compare the annual operating expenses of different schemes. Past performance Effect of Charges Changes to the investment objective and policy from 7 May The effect of charges and expenses on an investment of 2008 means that there is no relevant performance £1,000 lump sum, assuming growth of 5.2% a year, is set information yet available for this Fund. out in the table above. The last lines of the table show that over 10 years the effect of total charges and expenses could amount to £244 for lump sum investments with distribution units. 13
  15. 15. The L&G (Barclays) Balanced The Fund may have exposure to overseas investments, and Portfolio Trust therefore changes in rates of exchange between currencies will cause the value of your investment to rise or fall. Its aims The underlying investments may include the fixed interest The investment objective is to provide a good balance of securities and shares of companies and governments of capital growth and income. emerging markets such as Brazil, Russia, India and China. Such investment generally carries greater risk than similar The Fund aims to invest in a wide range of collective investments in developed countries such as the UK and US. investment schemes. An asset allocation policy will be Funds which invest partly or wholly in emerging markets may followed, providing balanced exposure to a broad range experience additional risks such as dealing difficulties, of asset types and geographical regions. settlement or custody practices which impact the value of investment. The Fund may also invest directly in transferable securities, money market instruments, derivatives, near-cash, cash The Fund may invest in other Funds that invest in fixed interest and deposits. securities. Unit values will therefore be sensitive to interest rate trends. The value of units is likely to fall if interest rates rise in The Fund may gain indirect exposure to gold and property the medium and long-term, but similarly could rise if interest through the use of certain structured combinations of rates fall. derivatives, or collective investment schemes that may themselves invest in derivatives, gold and property. Please also refer to ‘Risk factors’ on page 8. The Manager may invest in derivatives for investment Your questions answered purposes, however it is not intended that the use of derivatives will cause the net asset value of the Fund to have What happens to the income? higher volatility or otherwise cause the risk profile of the Income payment dates for the Fund are 1 February, 1 May, Fund to change. 1 November (interims) and 1 August (final). The corresponding ex-dividend dates are 2 December, 2 March, 2 September and Your investment 2 June, respectively. You agree to invest, through us, a lump sum which should be viewed as a medium to long-term investment. Barclays views Important: All income (e.g. dividends and interest payments) medium to long-term as being for at least five years. generated within the Balanced Portfolio will be reinvested into the Fund. This means that you will not receive any income Funds may offer more than one class of unit. The information payments. Instead, any income generated will be used to in this brochure relates to class A units only. purchase additional units in the Fund to enhance potential returns. Risk factors The annual management charge of the Fund is deducted How will charges and expenses affect my from income. If there is insufficient income, these charges investment? would be paid out of capital. This would reduce the capital Initial charge value of the units. There is an initial charge of up to 4.5% on investments made into the Fund through the Open Invest service. 14
  16. 16. L&G (Barclays) Balanced Portfolio Trust - Fund example Accumulation units At the end of Investment to date (£) Effect of deductions to date (£) What you might get back (£) the year 1 1,000 67.10 992 3 1,000 117 1,070 5 1,000 178 1,150 10 1,000 382 1,400 The figures in the table, which are based on an initial charge of 4.5%, do not include dealing costs incurred by the Fund. Initial charge for online applications Portfolio Turnover Rate For online applications, the initial charge is 1.5% on The Portfolio Turnover Rate (PTR) is an indication of how investments made into the Fund through the Open Invest much the investment manager changes the Fund’s portfolio of service. investments in a year. There is a cost involved with the buying and selling of these investments. The higher the measure, the Annual management charge more changes have been made and the higher the cost of Each month an amount equal to 1/12th of 1.5% of the Fund’s dealing paid for by the Fund has been. A PTR of 200% is value will be deducted from the income of the Fund by equivalent to the fund manager selling all of the Fund’s Legal & General to cover its management costs. Any investments and replacing them with others once over the underlying investment will also have an annual management year. The PTR for the Fund is 0% based on latest avaiable charge, which includes extra expenses for any underlying figures. The calculation period may differ from other funds investments and any negotiated discount. These charges are making comparisons unsuitable. included in ‘Extra expenses’ overleaf. There is a cap on the total annual management charge and therefore the total of The effect of charges and expenses on an investment the charges described above will not exceed 1.94%. of £1,000 lump sum assuming growth of 6.0% a year, is set out in the table above. Extra expenses Each year the Fund will bear other expenses (trustee fees and Effect of charges expenses, custodian fees, registrar fees, audit fees and regulator The last lines of the table show that over 10 years the effect fees) which amount to approximately 0.44% and these will be of total charges and expenses could amount to £382 for lump deducted as due. Extra expenses are paid out of income. sum investments with accumulation units. Total Expense Ratio Putting it another way, this would have the same effect as The Total Expense Ratio (TER) shows the annual operating bringing investment growth from 6.0% a year down to 3.4% expenses of the Fund. It does not include transaction expenses. a year for lump sum investments. Please note that all the The TER for the Fund is 1.94%. It is a requirement in the figures in the tables are rounded down to three significant European Economic Area States to highlight the TER to help figures. compare the annual operating expenses of different schemes. The figures are not guaranteed and serve only to demonstrate the effect of charges and expenses on an investment. 15
  17. 17. Past performance The information below shows the cumulative performance of the L&G (Barclays) Balanced Portfolio from 26 January 2005 to 30 September 2008. Performance of the Fund over discrete 12 month periods to 30 September 2008 is also shown. The Fund was launched on 14 February 2003. L&G (Barclays) Balanced Portfolio Trust % 25 20 15 10 5 5.7% 4.3% 0 -5 -10 -15 -15.9% Jan 05 May 05 Sep 05 Jan 06 May 06 Sep 06 Jan 07 May 07 Sep 07 Jan 08 May 08 Sep 08 The investment process under which the trust is managed changed on 26 January 2005, therefore performance is only reported from this date onwards. The figures shown by the chart are calculated without taking into account any initial charge and assume the net income was reinvested. All the information for this chart is supplied by Lipper. On the chart, the vertical axis shows the percentage change and the horizontal axis shows points in time. Please remember that past performance is not a guide to future performance. 16
  18. 18. Section 3 – ISA details This section provides additional information How do these investments work? for customers who are considering an You make a lump sum payment which is invested on your investment through an Individual Savings behalf in the Fund(s) of your choice, within a Stocks and Account (ISA). Shares ISA. To help you decide which Fund to select, please read Section 2 – ‘Fund-specific information’. Please see pages Details for the transfer of an existing ISA to 12 to 16. the Open Invest service are also provided in this section. How much can I invest? The minimum lump sum investment is £3,600 per Fund. Risk factors The favourable tax treatment of ISAs may not be maintained. The maximum investment in a Stocks and Shares ISA for the current tax year is £7,200. While funds are being transferred from another ISA Manager to the Open Invest service, your investment will not benefit The maximum investment in a Cash ISA for the current tax from any rise in the markets generally. year is £3,600 although you should be aware that this option is not available through the Open Invest service. Your investment You agree to invest a lump sum in an ISA, which should be You cannot subscribe more than £7,200 in total to a Stocks viewed as a medium to long-term investment. and Shares ISA and a Cash ISA in the same tax year. Barclays views medium to long-term as being for at least Furthermore, if you subscribe to a Stocks and Shares ISA five years. through the Open Invest service, you cannot subscribe to another Stocks and Shares ISA in the same tax year. Your questions answered What is an ISA? Can I take an income from my ISA? An ISA (Individual Savings Account) shelters your investment Please refer to ‘Can I take an income from my investment?’ from personal income tax and capital gains tax. There are two detailed on page 9, in Section 1 – ‘The Open Invest service.’ types of ISA: • Stocks and Shares ISA – which can hold investments such In addition: as Unit Trusts and OEICs • If you choose to receive an income, it and any income tax • Cash ISA (this option is not available through the Open that is reclaimable from HM Revenue & Customs, will be Invest service) paid direct to your bank or building society account. • If you choose not to receive an income, any income tax Who can invest in an ISA? on the income accumulated which is reclaimable from • You must be aged 18 years or over to apply for a Stocks HM Revenue & Customs will be used to buy further and Shares ISA units on your behalf. • ISAs must be held in a single name only • You must be resident and ordinarily resident in the UK for Can I switch my investment to other Funds? tax purposes Please see ‘Can I switch my investment to other Funds?’ detailed on page 9, in Section 1. 17
  19. 19. Can I make additional investments? You can top-up your investment at any time by sending us a cheque or paying by debit card over the telephone. Please see our Contact Address on page 21. The minimum lump sum top-up is £500. Please remember there are maximum yearly subscription limits for ISAs. What happens if I need to get my money out? Please refer to ‘What happens if I need to get my money out?’ detailed on page 9, in Section 1. In addition, if you withdraw some or all of your ISA investment, you will not be able to replace the contributions withdrawn within an ISA in the same tax year, unless the amount you wish to invest is within your unused ISA allowance. Please remember that this is a medium to long-term investment. Barclays views medium to long-term as being for at least five years. How can I keep track of my investment? Please refer to ‘How can I keep track of my investment?’ detailed on page 10, in Section 1. How will charges and expenses affect my investment? Charges and expenses applicable to the Funds and their effect on an investment outside an ISA are detailed in Section 2 – ‘Fund-specific information.’ The effects of charges and expenses on an investment in an ISA through the Open Invest service are detailed on pages 19 to 20. Please note that we do not make any additional charges if your investment is held within an ISA. 18
  20. 20. The L&G (Barclays) Income Portfolio Trust - ISA example Distribution units At the end of Investment to date (£) Income to date* (£) Effect of deductions to date (£) What you might get back (£) the year 1 1,000 52.10 56.90 952 3 1,000 155 93.70 936 5 1,000 256 134 921 10 1,000 502 259 884 * These figures assume a rate of income of 4.9% gross p.a. based on the gross estimated yield as at 7 May 2008. The figures in the table do not include dealing costs incurred by the Fund. ISA example The effect of charges and expenses on a £1,000 lump sum investment, assuming growth of 6.2% a year is set out in the table above. The table shows that over 10 years the effect of total charges and expenses could amount to £259 for lump sum investments with distribution units. Putting it another way, this would have the same effect as bringing investment growth from 6.2% a year down to 4.2% a year for lump sum investments. Please note that all the figures in the tables are rounded down to three significant figures. The figures are not guaranteed and serve only to demonstrate the effect of charges and expenses on an investment. 19
  21. 21. The L&G (Barclays) Balanced Portfolio Trust - ISA example Accumulation units At the end of Investment to date (£) Effect of deductions to date (£) What you might get back (£) the year 1 1,000 67.80 1,000 3 1,000 121 1,100 5 1,000 187 1,210 10 1,000 420 1,540 The figures in the table do not include dealing costs incurred by the Fund. ISA example The effect of charges and expenses on a £1,000 lump sum investment, assuming growth of 7.0% a year, is set out in the table above. The table shows that over 10 years the effect of total charges and expenses could amount to £420 for lump sum investments with accumulation units. Putting it another way, this would have the same effect as bringing investment growth from 7.0% a year down to 4.4% a year for lump sum investments. Please note that all the figures in the tables are rounded down to three significant figures. The figures are not guaranteed and serve only to demonstrate the effect of charges and expenses on an investment. 20
  22. 22. Section 4 – Further information What happens to my investment if I die? Money laundering We will deal with your investment as set out under ‘What We are bound by law to abide by the money laundering happens to my investment if I die?’ detailed on page 9, in legislation and to verify the identity of our investors. This Section 1. In addition, please note that the tax advantages verification usually happens when an investment is made. applicable to ISAs cannot be maintained following the death It may also be required at other times. Please note that we of the holder. may need to request additional evidence from you. What about UK tax? Complaints Set out below is a summary of the main tax issues, based on If you want to complain about the service you have received, current tax law and practice, which may change in the future. you may do so in person, in writing or by telephone. You can write directly to our Contact Address (please see opposite) The value of tax advantages will depend on your individual or phone us on 0870 606 6483. Written details of the circumstances. You should refer to your Barclays Financial complaints procedure are available. Complaints can also be Planning Manager for further information. made to the Financial Ombudsman Service at South Quay • There is no income tax on income received from or Plaza, 183 Marsh Wall, London E14 9SR or by phone on accumulated within an ISA 0845 080 1800. Making a complaint will not prejudice your • The income tax deduction at 20% on interest distributions right to take legal proceedings. is reclaimable • The 10% tax credit on dividend distributions cannot Compensation be reclaimed We are covered by the Financial Services Compensation • The proceeds from a full or partial withdrawal from an Scheme. You may be entitled to compensation from the ISA are free of personal income and capital gains tax Scheme if we cannot meet our obligations. This depends • You will not need to disclose anything to do with your ISA on the type of business and the circumstances of the claim. on your tax return Most types of investment business are covered for 100% of the first £30,000 and 90% of the next £20,000 so the The favourable tax treatment of ISAs might not be maintained. maximum compensation is £48,000. Further information about compensation arrangements is available direct from Your right to cancel the Financial Services Compensation Scheme. Please also see ‘Your right to cancel’ detailed on page 11, in Section 1. In addition to the Fund, if you do not exercise your Where can I get help? cancellation rights within the 14 day cancellation period then: You can contact us at the following address and we will be – you forfeit your right to contribute to any other Stocks and pleased to answer any questions you may have. Shares ISA with another account manager for the tax year that you made this investment; and Contact address – you will not be able to replace the contributions withdrawn Barclays Open Invest within the same tax year, unless the amount you wish to Mellon House invest is within your unused ISA allowance. Ingrave Road Brentwood Essex CM15 8TG Telephone: 0870 606 6483 (opening hours Mon-Fri 8.30am to 5.30pm). For your protection and ours, to check instructions and to maintain high quality service standards, we may record 21 and monitor calls made to or by us.
  23. 23. How can I obtain further information? Registered office Further information about any of the Funds detailed in this Woolwich Plan Managers Limited document, including copies of the latest Managers’ Reports 1 Churchill Place and a copy of the Full Prospectus and/or a Simplified London E14 5HP Prospectus, can be obtained free of charge from Barclays Open Invest on written request. Woolwich Plan Managers Limited is a wholly owned subsidiary of Barclays Bank PLC. Barclays Bank PLC is The Open Invest service authorised and regulated by the Financial Services Authority The Open Invest service is offered and managed for Barclays (FSA) and is entered on the FSA Register, registration number by Woolwich Plan Managers Limited registered in England, 122702. You can check this at www.fsa.gov.uk/register Company Number 03230386. Registered in England, Company Number 1026167. Unit Trust Manager/Authorised Corporate Director and Trustee/Depository Registered office Unit Trust Manager/Authorised Corporate Director: Barclays Bank PLC Legal & General (Unit Trust Managers) Limited is authorised 1 Churchill Place and regulated by the Financial Services Authority (FSA) and London E14 5HP is entered on the FSA Register, registration number 119273. You can check this at www.fsa.gov.uk/register Important information The Open Invest service is only available to residents of the UK, Registered in England, Company Number 1009418. aged 18 or over. This material is directed only at persons in the UK and is not to be regarded as an offer to buy or sell, or the Registered office solicitation of any offer to buy or sell securities in any other Temple Court jurisdiction other than the UK. Persons resident in territories 11 Queen Victoria Street other than the UK should therefore not apply for any investment London EC4N 4TP products available through the Open Invest service. Trustee/Depository Use of your information The Royal Bank of Scotland We may use your personal and financial information in the Trustee & Depository Services manner set out in the Open Invest Terms and Conditions. Waterhouse Square 138-142 Holborn London EC1N 2TH ISA Manager Woolwich Plan Managers Limited is authorised and regulated by the Financial Services Authority (FSA) and is entered on the FSA Register, registration number 183887. You can check this at www.fsa.gov.uk/register 22
  24. 24. Open Invest Terms and Client Money Rules – The rules relating to client money under the Conditions FSA Rules. Communication – Any correspondence that you send to us at our It is important that you read these Terms carefully Contact Address regarding Open Invest. These Terms constitute a legally binding agreement, in relation to Contact Address – Open Invest, Mellon House, Ingrave Road, your Account, between you and us. These Terms will come into Brentwood, Essex CM15 8TG. effect upon our acceptance of your Application and your initial Subscription. The law that forms the basis for the establishment of Current Year Account – A sub Account of your ISA Account relations prior to the establishment of any contract will be that of containing only Assets representing your Subscriptions made in the the country in which you are resident. The only language in which current Year. these Terms are supplied is English, and Open Invest will communicate with you in English during the course of this Execution Policy – The policy set out in Schedule A of the terms agreement. In the event of any inconsistency of information and conditions. between your Application and these Terms, the Terms will prevail. If there is anything in these Terms that you do not understand, please FSA – The Financial Services Authority of the United Kingdom, or contact us at our Contact Address or via your Financial Adviser. The any regulator that takes over its regulatory responsibilities. definitions below apply throughout these Terms. The provisions in Section 1 apply to all dealings between you and us in relation to your FSA Rules – The FSA’s handbook of rules and guidance, as amended Account, unless otherwise noted. The provisions in Section 2 apply from time to time. ONLY to ISA Investments and, unless otherwise stated, are in addition to those set out in Section 1. Fund – A collective investment scheme, or sub-fund thereof, that we specify as being available for investment within your Account and Definitions which may be a regulated collective investment scheme as defined The following words and expressions, when used in these Terms, by the FSA rules and comprising of Qualifying Investments or those have the meanings set out opposite them. in Schedule B. Account – Your Open Invest Account with us. Intermediary – An authorised person under Part IV of the Financial Services and Market Act 2000. Affiliate – The ultimate holding company of Woolwich Plan Managers Limited and any direct or indirect subsidiary of that Investment – Any investment that we offer within Open Invest, holding company. including Units in Funds, in respect of which we will act as your agent on any Subscription, purchase, sale or redemption. Application – The Open Invest application form, or any other form of application that we may accept from time to time for Open ISA – An Individual Savings Account managed under the Invest. Regulations. Assets – Investments, products, income, interest, dividends, cash ISA Manager – This is Woolwich Plan Managers Limited. balances and any other rights and entitlements from time to time held within your Account. Key Information – Documentation that contains the Key Information for your Open Invest Account. Business Day – Any day on which Banks in England and Wales are open for business, except for weekends and Bank holidays. Nominee – Barclays Financial Planning Nominee Company Limited, (whose registered address is 1 Churchill Place, London E14 5HP) or Chosen Bank Account – Your Bank or Building Society Account as any other nominee we decide to use from time to time. nominated on your Application. Open Invest – The name of our service that offers you a selection of Client Money – Has the meaning given in the FSA Rules, which is, Investments for your Account and/or act as ISA Manager for your broadly, money of any currency not held in a bank account in your Account under these Terms. Open Invest is only available to name, which in the course of carrying on business contemplated by residents of the United Kingdom aged 18 or over. the Agreement, we hold in respect of any investment entered into, or to be entered into with or for you subject to certain exceptions identified in the FSA Rules concerning the treatment of client monies. 23
  25. 25. Qualifying Investments - For Stocks and Shares ISAs means: Regulated Markets – Has the same meaning as Regulated Markets (i) Shares other than shares in an investment trust that: in the FSA Rules, which is, broadly, a market which is subject to strict ●are issued by a company incorporated anywhere in the operating FSA Rules governed by the regulatory body in the world; jurisdiction in which they operate. ● that are officially listed – as opposed to being simply traded - on a recognised stock exchange; and Regulations – The Individual Savings Account Regulations 1998, as ● that if acquired after the 6 October 2005, satisfy the 5% amended from time to time, and any other applicable rules or test. regulations made or amended from time to time by HM Treasury or (ii) Securities other than securities in an investment trust that HM Revenue & Customs. have been issued by a company. (iii) Government securities which are: Stocks and Shares ISA – An ISA designated as an ISA under the ● gilt-edged securities; Regulations made up of stocks and shares. ● gilt strips; ● securities issued by or on behalf of a government of any Subscription – A payment by cheque, Direct Debit mandate or debit EEA state; and card at our discretion, in sterling, to be applied to your Account. It is ● strips of securities issued by or on behalf of a government paid by you from your Chosen Bank Account or paid on your behalf of any EEA state that have at least 5 years to run when by your previous ISA Manager or an alternative source where, in the purchased. case of ISA Investments, you have confirmed it is your own monies. (iv) Units or shares in authorised funds that have been authorised by the FSA and are either: Terms – These Terms and Conditions (as may be amended from ● an authorised unit trust; or time to time), together with the Terms and Conditions of your ● an open-ended investment company incorporated in the Application. UK where authorisation from the FSA under regulation 14 of the Open-ended Investment Companies (Tax) Units – Units, or shares of any class, in a Fund, including any Regulations 1997. fractions or decimals of Units or shares. (v) Units or shares in a non-UCITS retail scheme, which has been authorised by the Financial Services Authority for sale we, us and our – Woolwich Plan Managers Limited and/or any of its to retail investors in the UK that are: Affiliates that provide all or any part of Open Invest together with ● are listed on the Official List of the Stock Exchange; and any person to whom we delegate under Section 1.7. ● the investment trust satisfies the requirements for investments. Year – A year beginning on 6 April and ending on the following 5 (vi) Units or shares in a relevant UCITS provided the UCITS is: April. This is commonly known as the tax year. ● situated in a EU member state other than the UK; ● authorised by the competent authorities of the state in you and your – You, the customer, being an individual who which it is situated; becomes registered with us to use Open Invest, having satisfied the ● the UCITS is a recognised scheme within the meaning of Account opening processes that we may require. Where two or section 264 of the Financial Services and Markets Act more individuals jointly apply for Open Invest this means all of you, 2000; and jointly and severally. References to the singular shall include the ● the units or share satisfy the 5% test. plural and vice versa. (vii) Shares transferred directly into the stocks and shares component. (viii) Depositary interests where one person holds relevant investments, or rights to those investments on behalf of the investor. (ix) Cash and any other cash held in a stocks and shares ISA held in sterling. (x) Units in a stakeholder product as defined in regulation 5 of FSMA 2000 (Stakeholder Product) Regulations 2004 (SI 2004/2738) – known as stakeholder medium-term products – which can consist of unitised investments and unitised insurance investments that can satisfy the investment rules set out in those regulations – subject to the 5% test. (xi) Policies of life insurance issued before 5 April 2004 that had previously qualified for the separate insurance component. 24
  26. 26. 2.4 Upon acceptance of your Application, all Subscriptions to Section 1 – General dealing Terms the Account will be used to purchase Investments selected by you either in your Application or by subsequent 1. Our role and responsibilities instructions to us. 1.1 For the purpose of the FSA Rules, we will treat you as a retail client unless we otherwise agree with you. This does not 3. Cancellation necessarily mean that you are ‘eligible’ for the purposes of 3.1 You have the right to cancel your Account within 14 days of the Financial Services Compensation Scheme or the the day when we have accepted your Application form. You Financial Ombudsman Scheme Service. have this right irrespective of whether you have received advice on your Investment. You will receive notice of your 1.2 At all times, we will be acting as your agent. This means right to cancel the initial Investment, and you will then have that we will be dealing with your Account on your behalf 14 days from when you receive that notice to change your and in accordance with these Terms. We do not review your mind. To cancel, you should return the form attached to the portfolio and we do not give advice about your investments. notice within the 14 days to: Barclays Open Invest, Mellon All personal data that we hold that relates to you is held in House, Ingrave Road, Brentwood, Essex CM15 8TG. line with the data protection legislation (see Clause 22). We are responsible for the safekeeping of all Assets. 3.2 Cancellation rights do not apply to regular Subscriptions after receipt of the initial Subscription. Cancelling the initial 1.3 If we give you information on investments or markets such Subscription for any Account will result in that Account also as research recommendations, market trends, investment being cancelled. analysis or commentary on the performance of selected companies this should not be viewed as a personal 3.3 If you do cancel the initial Investment, the amount you will recommendation or advice. get back will be reduced by any market loss during the period up until we receive your notice of cancellation. If you 1.4 We are authorised and regulated by the FSA. do not exercise this right, your Account will remain open until terminated in accordance with Clause 19. We will 1.5 Unless otherwise provided in these Terms, you may give return the proceeds to you as soon as reasonably instructions to us as set out in the Key Information at our practicable and in any event, not later than 30 days of the Contact Address by telephone, by post or by any electronic date when you sent the notice of cancellation to us. means that we may accept, and we shall act upon these instructions as your agent. 3.4 If you have a joint holding, then ALL holders must sign the cancellation notice. 1.6 We will invest funds in your Account as your agent in accordance with your instructions, but reserve the 4. Dealing in Investments discretion to apply funds to your Account on a day other 4.1.1 The minimum amount that you can invest into Open Invest than a Business Day. as a lump sum payment is £3,000 with a minimum of £500 per Fund. There is no maximum limit when you are 1.7 We may delegate all or any part of our functions and investing outside an ISA. The minimum top-up contribution responsibilities relating to Open Invest to any person and, to your Account is £500 per Fund. The minimum that you subject to confidentiality, data protection and any other can invest by regular monthly contributions is £50 per statutory or regulatory requirements, we may provide month per Fund. We may accept lesser amounts at our information regarding you or your Account to any such discretion. For the avoidance of any doubt, where the person. We will satisfy ourselves that any such person to minimum amount of a Fund as specified within it’s own whom we delegate is competent to carry out the service. literature conflicts with the amount stated here, the amount here will prevail. 1.8 Correspondence about Open Invest should be sent to our Contact Address. 4.1.2 (For online Applications only) Please refer to the Key Information section and “How much 2. Opening your Account can I invest” for the minimum and maximum amount you Please see Section 2 for further details of opening an ISA or can invest. For the avoidance of doubt the remaining arranging an ISA transfer. clauses 4.2 to 4.18 will still apply. 2.1 In order to open an Account, you must submit your Application to us, together with the Subscription. 4.2 Subject to any verification checks necessary, your Investments will be purchased or sold by us, acting as your 2.2 Your Account is opened when we accept your correctly agent, as soon as reasonably practicable. This will normally completed Application and initial Subscription. be no later than the relevant Fund’s valuation point on the next Business Day that follows our acceptance of your 2.3 We reserve the right not to accept your Application. instruction at our Contact Address. 25
  27. 27. 4.3 We may ask you some questions to verify your identity 4.13 When we execute for you we will consider a number of when you deal by telephone, and we may refuse to accept factors in deciding where to route your order for execution. your instruction if you cannot answer them correctly. We These factors may include total consideration payable may also refuse to accept your instruction if you owe us (inclusive of deductions relating to third party brokerage or money from a previous deal, or for any other reasonable other charges), speed of execution, likelihood of execution reason. and settlement, and the size and nature of your order. We will generally execute transactions with reference to the 4.4 Your instructions in relation to your Account can only be best total consideration identified and available to us at the dealt with during normal working hours on a Business Day, point of dealing unless there is a reason why it is not in your even though Open Invest may be available outside these best interest to do so. hours. This means that your instructions may not always be dealt with as soon as we receive them. 4.14 Our assessment of the relative importance of the execution factors may vary from deal to deal, depending on the 4.5 If we think that an instruction has not come from you, we circumstances of the trade and the prevailing market will try to verify its authenticity. We may refuse to act on it conditions. When using automatic order routing or take steps to reverse it. We will not be responsible for loss technology, our dealing process prioritises the best price net to you as long as we have acted reasonably. of dealing costs. In circumstances where an order cannot be executed automatically, it will be dealt manually by our 4.6 You may instruct us, acting as your agent, to sell Units in dealing professionals, who will consider the circumstances one Fund and use the proceeds arising from the deal to buy of each deal and decide on the appropriate course of action. units in one or more different Funds. This is known as a For the avoidance of doubt, this may include the switch. We will require you to submit your switch instruction prioritisation of another execution factor (such as speed or in writing, detailing the number of Units to be sold from certainty of execution) over the best market price when it is each Fund and the proportion of the sale proceeds to be in your interest to do so. invested in the Funds that you want us to invest in on your behalf. 4.15 We may place reliance on third party brokers to execute transactions when we act as agent on your behalf. When 4.7 If any dilution levy or Stamp Duty Reserve Tax (SDRT) we do so, we will take reasonable steps to ensure that the provision is charged by a Fund provider, this levy or dealing arrangements of the parties we place reliance on provision will not be passed on to you. are sufficient to provide appropriate execution quality. When passing orders to a broker outside of the European 4.8 At our absolute discretion, you may send us Investments Economic Area ("EEA"), you should note that brokerage that you hold outside of Open Invest to be added to your standards in such markets may not be equivalent to those Account. in the EEA. In these markets we will take reasonable care to identify that the brokers used provide an appropriate quality 4.9 When we execute transactions on your behalf we will of execution. normally be required to provide best execution and when we do so we will comply with our Execution Policy. 4.16 When we deal for you, we may combine your order with our own orders and orders of other clients if we believe that 4.10 A summary of our execution arrangements is attached as aggregation can generally be expected to work to the Schedule A. We will consider the continued placement of benefit of all parties concerned. However on some orders by you to constitute your continued consent to our occasions aggregation may disadvantage you. When we execution arrangements as may be in effect from time to combine orders or when an order cannot be executed as a time. single transaction, we may execute it in a series of deals and confirm to you the aggregate of these at an average price. 4.11 When deciding where to execute a deal on your behalf, we We may allow brokers who deal on your behalf to combine may transact outside of a regulated market or multilateral deals with their own and their clients' deals subject to trading facility. We will do so when we believe it is in your applicable laws and regulations. best interest to transact in this way, for example either due to the pricing available or where sufficient liquidity is not 4.17 When we combine your order with another we will allocate available on a regulated market or multilateral trading the transaction in accordance with our allocation process. facility. When the combined order cannot be filled, we will generally allocate to all participants on a pro rata basis, unless it may 4.12 Please note that we may accept specific dealing instructions not be in your interest to receive a reduced allocation (for from you. Where we do so and are able to execute in example if we view the deal is not economic when accordance with such instructions, it may not be possible considered against dealing costs), or we are otherwise for us to obtain the best result that would otherwise be unable to do so by force of law. available to you at the time of dealing. 4.18 If you place a limit order in respect of a share admitted to trading on a regulated market with us, and we are not 26
  28. 28. immediately able to execute at the relevant price, we will Application. We will make income payments shortly after we publish the amount of stock and price available in order to receive the income. You may at any time instruct us to stop increase its chances of execution. We will not publish using your Chosen Bank Account and, if we accept, specify orders which are large in scale as defined by the FSA. Your another bank account in its place. It will normally take 14 may choose to instruct us not to publish your unexecuted Business Days after we have received your instructions to order when you place a deal with us. apply the new details to your income payments. 5. The title and registration of Investment 7.2 If necessary, we will deduct any outstanding fees, charges 5.1 All documentation proving title to the Assets in your and expenses arising from your Account from any amount Account will be held by us, or as we may direct. We may not that is due to be paid to you. Until we know that lend any part of your Account to a third party and we may Subscriptions made by you have cleared, we may delay not borrow against its security. paying any sale proceeds and cash balances to your Chosen Bank Account. 5.2 You are, and will remain the beneficial owner of the Assets but must not use them as security for a loan without our 7.3 Payment to your Chosen Bank Account is in any case good prior written consent. You may not dispose of or transfer discharge of our duty under these Terms. any interest in any asset held through us, and may not create (or have outstanding) any charge or security on or 7.4 We reserve the right not to make any payments to you that over any Asset. are less than £5, or claim any fees from you that are less than £5. Any payments of less than £5 that are due to you 5.3 We will register all Investments in the name of the Nominee. may be reinvested by us acting as your agent in one of your You authorise us to direct and instruct the Nominee to Funds or, if your Account has been closed and/or you have discharge our responsibilities under these Terms. We are no Funds, donated to a charity of our choice. responsible for the acts and omissions of the Nominee. The Nominee is not itself an authorised person under the 7.5 We reserve the right to change these minimum amounts Financial Services and Markets Act 2000. It can only hold from time to time and will notify you of any changes. Investments, and does not carry on business in its own right. 8. Custody 8.1 Where we provide you with our custody service the 5.4 With regard to joint Account holders, the first named provisions of this clause 8 will apply. In providing our applicant will be the primary Account holder. This is purely custody service we are responsible for the safekeeping of for our administrative purposes and does not affect the your assets (including dealing with any cash), the legal status of any joint ownership. settlement on your behalf of any transactions we effect for you, collecting income, the presentation for redemption or 5.5 Should we default on our obligations, Units that are payment of any securities that are redeemed or called and registered in the name of the Nominee may be shared pro otherwise administering the assets. We will take the steps rata among all of our customers. set out in this clause 8 to ensure the protection of your assets. 5.6 Your Investments are held in the Nominee’s name. This means that you may lose any incentives or benefits that are 8.2 We may employ agents (including members of the Barclays attached to holding the Investments yourself. Group) to perform administrative, custodial and ancillary services to assist us in providing the services referred to in 5.7 We register your Investments in the same name as those of clause 8.1 and may authorise them to do the same. Our other Open Invest customers and do not identify individual liability for all matters delegated to a member of the Investments by separate certificates. Barclays Group will be unaffected by the delegation. In all other cases, we will exercise reasonable skill and care in 6. Income selecting, using and monitoring any agents (including sub- Income will be dealt with in accordance with your instructions. In custodians) appointed, but will not otherwise be liable for the event you instruct us to pay any income due to you, we will their acts or omissions except to the extent your losses attempt to pay it, in the first instance, to your Chosen Bank Account. result from our negligence, wilful default or fraud. If we are unable to make payment to your Chosen Bank Account, or by other suitable means, then, acting as your agent, we will use all 8.3 We will keep records that make it clear that your such income to buy further Units in the same Fund. In this way your investments are held on your behalf and do not belong to income payment (and future payments due) will be reinvested until us. Where investments in our custody are held by a such time as we agree an alternative Chosen Bank Account with nominee or sub-custodian we will take reasonable steps to you. ensure that the records of the relevant entity make it clear that the investments are held by or on our behalf for you 7. Payments due to you and that they do not belong to us or any such nominee or 7.1 In order for us to pay income arising from your Assets to sub-custodian. The purpose of this is to make clear in the you, you must specify a single Chosen Bank Account in your event of the failure of any such entity that the investments 27

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