2. The remaining balance is held as
cash in your Income Account
enabling us to take our
administration charge and to pay
you a monthly income from the first
month.
Your Income Account will then be
used to collect dividend payments
from the shares in your Investment
Portfolio, pay our administration
charges and to pay you a monthly
income.
3. IncomePayment
In the first year, we set your
monthly income based on the
previous year’s dividend
income of your Investment
Portfolio.
We will tell you the level of monthly
income you will receive for the first
12 months and which monthly date
you will receive it on. Payments will
be made directly into your registered
bank account.
4. IncomeReview
Year 1
At the end of the first year we will recalculate
the level of income we pay you based on the
dividend income of your Investment Portfolio in
the previous year.
Year 2
Even though we aim to increase
your income over the long term
this may not always be achievable
and is dependent on the dividends
paid by the shares your plan
holds.
You can find out more about how your income is calculated in our Frequently Asked Questions
(FAQ)
5. The Investment Portfolio
The companies we use for your Investment Portfolio are selected by Synergy’s Investment
Committee aiming to identify those with a strong dividend track record and future potential. It
is the dividends received by these companies that will enable us to pay you a stable monthly
income.
6. HowistheInvestmentPortfolioselected?
We select 20 shares from the FTSE100 which is a share index of the 100 largest companies
listed in the UK. Each company is put through a rigorous analysis process to review their:
Current dividend levels
Consistency of historic dividends
Share price volatility
From the analysis, Synergy’s Investment Committee selects the 20 shares that are included in the
Investment Portfolio.
Your portfolio will be split equally, by value, between the shares selected.
7. HowistheInvestmentPortfolioManaged?
Over time some shares will perform better than others and this can lead to an imbalance in your
Investment Portfolio. As part of our commitment to you we will automatically rebalance your
portfolio back to an even value (£) of shares on a yearly basis. This is known as automatic
rebalancing.
If you don’t want us to automatically rebalance your portfolio then you can choose opt-out,
meaning that you will have to decide if and when you rebalance.
You can rebalance you Investment Portfolio at any time you like, regardless of if you have
selected automatic rebalancing or not. This is known as elective rebalancing.
Company
A Shares
Company
B Shares
Company
D Shares
Company
C Shares
Company
B Shares
Company
A Shares
Company
A Shares
Company
B Shares
Company
C Shares
Company
D Shares
8. There are two types of elective rebalancing:
Rebalance into your existing portfolio
The shares held in your portfolio will be moved back towards their initial percentages
they started out at. This is accomplished by selling those shares which have performed
well and buying shares that have performed less well.
Rebalance into a new investment portfolio
New investment portfolios will be offered from time to time. New portfolios may include
shares you already hold or new shares which have been selected for their dividend
potential.
This rebalance will move the shares in your current portfolio into the proportions of the
new portfolio.
You can find out more about rebalancing in our Frequently Asked Questions (FAQ)
Your portfolio will not be managed other than rebalancing on a yearly basis
where you have selected for us to do so.
