Overview of funds

We believe that everyone is different. That is why we offer a range of products that have different features such as risk category, asset type and fund management style. This means that you can choose a single investment product, or portfolio of products you believe fit your own individual requirements. The range of investment products we offer are provided through Legal & General.

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Choosing the right investment for you

In order to help you choose the right investment, you should consider:

  • what your investment goals are
  • whether you want an ISA and/or a Unit Trust/OEIC
  • your attitude to investment risk
  • what fund features you prefer – for example, asset type and fund management style

This information should not be interpreted as the receipt of advice or a recommendation, nor should it be relied upon to make investment decisions such as the buying or selling of units/shares, but should be read in conjunction with the General Key Features/Simplified Prospectus and Fund Key Features. If you would like some advice on your investment options, please arrange to visit one of our professional advisers, who can offer advice on funds sold through the Investor Portfolio Service.

You may find it useful to download the application form before you select your funds.

Find out more about the fund features:

Types of Assets

The funds invest in four main asset classes:

C

Cash - Cash can be split between:

  • deposit accounts. This can be instant access and notice accounts.
  • money market funds. These can lose money, for example when interest rates could be less than the fund charge
Cash investments are ideal for money you need access to, and for the part of your portfolio where you wish to take minimal levels of risk.

Cash investments offer the lowest risk of all the asset types but also the lowest potential returns.

P

Property - Commercial property includes office buildings, shopping units, warehouses and industrial units. Buildings are let to tenants and have to be maintained. The majority of the return is typically through rental income, although with careful management, gains in the value of the property can also be made.
Selling a property can be a time-consuming process so you may have to wait to get your money back.

Commercial property is generally less risky than Equities but can go through periods of fairly large losses.

F

Fixed Interest - Fixed interest securities include:

  • Gilts – issued by the government
  • Corporate bonds – issued by companies
These are loans that the investor gives to the government or company. In return for this loan, you will be paid regular interest and at the end of the term your money will be returned. The government or company could default, i.e. not pay your interest or money back.

Fixed interest securities generally offer a lower risk than Equities, but can still fall in value. They will generally go up in value when interest rates fall and lose value when interest rates rise.

E

Equities - Equities are shares in companies, where the value is determined by the buyers and sellers on the stockmarket.
Positive returns can be generated by

  • a rise in value of the share (growth)
  • income that is paid out as a dividend i.e. the shareholders' portion of the profits (income)

Generally the riskiest of the main asset types but they can go both up and down in value. Whilst day to day returns can be unpredictable, over the long term of at least 5 years equities have frequently outperformed other asset classes.

Portfolio Investments

Portfolio investments mean you have investments spread across more than one fund. You can build your portfolio from any of the funds we offer.

An example of a 'Medium Risk' portfolio for a customer with no previous equity experience

 10% cash (Nationwide savings not Cash Fund) 
 20% L&G (N) Target Return Trust R 
 10% Legal & General UK Property R Trust 
 20% M&G High Yield Corporate Bond A Fund 
 30% Jupiter Merlin Growth Portfolio 
 10% M&G Recovery A Fund

An example of a 'Medium Risk' portfolio for a customer with existing equity experience

 10% cash (Nationwide savings not Cash Fund) 
 30% L&G (N) Target Return Trust R 
 10% Legal & General UK Property R Trust 
 30% Jupiter Merlin Growth Portfolio 
 15% Schroder UK Alpha Plus A Fund 
 5% First State Global Emerging Market Leaders A Fund

These examples are for illustration purposes only.

If you need advice on setting up an investment portfolio, please contact one of our professional advisers.