L&G (N) High Income Trust

Launched: 15 October 2001

What are the aims of the trust?

This trust aims to deliver a high level of income consistent with long-term preservation of capital through investing primarily in bonds and money market instruments issued by governments, other public issuers and companies worldwide.

Your investment

The minimum investment is £20. This can be paid as a single lump sum or as a regular monthly amount.

What are the risk factors?

Capital risk: LOW RISK
The value of your investment will vary in line with the performance of the corporate bond markets. Generally, as interest rates rise, the capital value of the fund will depreciate and vice versa. You could get back more or less than you originally invested.

Inflation risk
Investments included in the fund have the potential to exceed inflation over the longer term. However, the actual rate of return is subject to market variation and there is no guarantee that the money you invest will keep pace with inflation. Where your investment makes a capital loss, the real value of your loss may be significantly greater due to the effects of inflation.

Shortfall risk
The fund may not achieve sufficient returns to help you meet your specific savings goal.

Rate of return risk
You may receive no return from your investment or a lower return than you would have liked.

Accessibility risk
You have access to the money you invest at any time. Given potential for significant market variations in the fund's value and its rate of return, you must be prepared to invest your money for at least five years.

Complexity risk
Some long-term investments can be more complex than others, which is why we aim to explain things clearly, fairly and accurately.

If you think that one of the investment funds may suit your needs, but you'd also like some expert advice, please ask to talk to one of our Senior Financial Consultants. They'll be able to advise on Nationwide's full range of investment products.

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How do I receive an income?

The trust has both income and accumulation units. Income is paid within three working days of the 13th of every month directly to your bank or building society account.

Please note that your first income payment will depend on when your investment is received and invested at the administration office. If the investment is received and invested before the 15th of the month, your first income payment will be on the 13th of the following month. If your investment is received and invested on, or after, the 15th of the month your first income payment will be paid two months later on the 13th.

Is the income guaranteed?

No. The income may vary. It may be more or less than you originally expected due to the performance of the unit trust.

What if I don't need an income at the moment? Can I choose to have it reinvested?

Yes. If you choose not to receive an income, this amount can be reinvested and will be reflected in the unit price.

Regardless of whether you choose income units to receive an income, or accumulation units for income to be reinvested, you can switch from one type to another whenever you wish.

What are the charges?

There is a 1.25% annual management charge on the value of your holdings, which is deducted from the fund. The fund manager has the flexibility to deduct the annual management charge in part or in full from either the capital value or income property of the trust. This charge is paid by the trust and covers the following fees: investment management, valuation, accounting and the manager's own management costs.

For more details of the charges please refer to the Key Features document.

Who manages the L&G (N) High Income Trust?

The High Income Trust is managed on Legal & General’s behalf by an experienced fund manager, BlackRock Merrill Lynch Investment Managers, one of the world’s largest investment managers.

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