Nationwide launches new online investment option with easy-to-choose funds

01 July 2014

Nationwide has launched a new online investment service, aimed at customers looking for straightforward, easy-to-choose funds with low fees.

Launched to take advantage of the new, higher annual ISA allowances on 1 July, customers will be able to pick from a range of four funds, and select the type of fund that matches their risk and return appetite.

The four Primary Funds consist of three mixed asset funds and a FTSE all-share tracker and are managed by Legal & General. Customers can invest in a stocks and shares ISA, up to the new annual allowance of £15,000, or even more in a unit trust. The minimum investment is £20.

The straightforward range of funds allows customers to easily select an investment that matches their goals. Each fund gradually increases the amount of risk and potential reward by increasing the proportion invested in shares. Behind the scenes the funds’ managers at Legal & General Investment Managers (LGIM) actively manage the proportion invested in shares, bonds, gilts and property as well as the geographical allocation.

The range has been designed as a response to customer research that suggested that they were looking for a straightforward range of funds, where they could understand where their money would be invested and one where they could easily compare their options.

The four funds, in order of level of risk from the lowest, are:

  • Legal & General Mixed Investment 0-35% Fund – this contains a percentage of shares between 0-35%, as well as gilts and corporate bonds
  • Legal & General Mixed Investment 20-60% Fund - this contains a percentage of shares between 20-60%, as well as gilts and corporate bonds
  • Legal & General Mixed Investment 40-80% Fund - this contains a percentage of shares between 40-80%, as well as gilts and corporate bonds
  • L&G (N) Tracker Trust – this is entirely invested in UK shares.

Rob Angus, Head of Protection and Investments at Nationwide, said: "“Our customers told us they wanted to invest online without advice but were put off by the large number of potential funds available, jargon used and amount of documents they had to read. The new service seeks to address these concerns and offers a straightforward choice for customers looking to achieve their investment goals.

“The new choice of four Primary Funds allows customers to have an easy to understand, low cost and easily accessible option at their fingertips. They can be accessed at any time from a tablet or PC and customers can view the choices, make a decision and make the investment entirely online.

“With the new £15,000 annual ISA allowance available from 1 July our online investment service provides a straightforward and convenient way for savers to invest and take full advantage of their tax-efficient savings.

Customers with more complex needs can access advice from Nationwide’s Financial Planning Managers.

Notes to editors:

The investment options Nationwide currently offers are provided through Legal & General. Applications are required for all products. Further details of terms and conditions are available on request. Nationwide offers restricted advice.

The value of your investment can go down as well as up so you may get back less than you originally invested.

About Nationwide

Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

Please note: If you are a customer looking for information on our products and services, please visit the main website.