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Investment funds portfolio
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Investment funds portfolio
Clerical Medical offers a wide range of investment funds to suit a wide range of needs. Most of our funds are managed in London by Insight Investment Management Limited, the investment arm of the HBOS Group. Insight Investment have a clear mission – to help people and companies make their money grow. Their investment approach aims to achieve consistent returns over the long term, without exposing the investment to unnecessary risk. Each of our funds is given a risk classification based on the extent of the movement in the fund price. Ask your financial adviser for a copy of our current risk-grading leaflet (reference SA1571) which may help you to choose the right fund. To check the unit prices of our funds, visit our website www.clericalmedical.co.uk/funds This holds a wealth of information, investment views and past performance statistics on all our funds. Alternatively call our customer service desk on 0870 602 22 44. The unit prices of our most popular funds are also published daily in the financial press.
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What are the investment options?
There is a range of different types of investment funds to choose from: The With-Profits Funds
Shares in the long-term performance of Clerical Medical’s With-Profits Fund. Our ‘With-profits summary’ (reference X1331) gives more details on with-profits investments and how they work. For further information related to investment aims, asset mix and bonus rates please refer to ‘Performance Pensions – With-Profits funds performance’ (reference SA1408) and ‘With-Profits Funds explained’ (for Life products) (reference SA1617). Ask your financial adviser for a copy, as appropriate.
Managed Funds
Fully managed unit-linked funds
Specialist Funds
Unit-linked funds which specialise in particular markets
Fund of Funds links
Fully managed unit-linked funds that invest in a range of funds from different investment houses
External fund links
Unit-linked funds that invest in funds managed by carefully selected investment houses (please refer to the ‘External funds portfolio’ leaflet (reference X1556) for more details).
Mutual Funds
Open-Ended Investment Company (OEIC) funds
Fund Collections
Our fund collections offer a range of carefully selected, risk-graded investment solutions, consisting of Clerical Medical funds including some which invest in funds managed by external fund managers. Further information can be found in our leaflets: ‘The defensive collection’ (reference SA1668), ‘The cautious collection’ (reference SA1667) and ‘The balanced collection’ (reference SA1666).
There may be restrictions on the availability of funds to particular products. For further information please refer to the relevant product literature.
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Managed funds
These are fully managed, unit-linked funds. The investment managers select from a specified range of investment markets and sectors with the intention of achieving the aims of the fund. Unit-linked funds offer returns directly driven by the performance of stocks, shares and other assets in which the funds are invested. If you would like information about the links to external funds that are available, please ask for a copy of our ‘External funds portfolio’ (reference X1556). We strongly recommend that you talk to your financial adviser before deciding which fund(s) to invest in.
Cautious Managed Aim – To achieve long-term growth by re-investing the income generated by the underlying assets. The manger invests predominantly in UK equities, fixed interest, index-linked stocks and cash.
Non-Equity Managed Aim – To provide a long-term total return in excess of returns offered by high interest savings accounts, by investing in a range of commercial property, cash investment, fixed interest and indexlinked stocks.
Balanced Managed Aim – To provide long-term capital growth by allowing the manager full discretion to invest in a range of UK and overseas equities, fixed interest, index-linked stocks, property and cash investments.
Adventurous Managed Aim – To provide higher long-term growth than the average balanced managed fund. The fund may invest in an unrestricted range of global equities. The fund is suitable for those who accept a higher degree of risk.
International Aim – To provide long-term capital growth by investing in UK and overseas equities. It generally aims to have a higher exposure to overseas equities than the average balanced managed fund.
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Specialist funds
These are unit-linked funds. The investment managers select from a specified range of investment markets and sectors with the intention of achieving the aims of the fund. Unit-linked funds offer returns directly driven by the performance of stocks, shares and other assets in which the funds are invested. If you would like information about the links to external funds that are available, please ask for a copy of our ‘External funds portfolio’ (reference X1556). We strongly recommend that you talk to your financial adviser before deciding which fund(s) to invest in.
Cash Fund Aim – To provide the best return consistent with the protection of capital by investing in deposits and other short-term money instruments.
Halifax Fund (Pensions only) Aim – The fund’s assets are wholly placed on deposit within the HBOS Group. The rate of return is a variable rate which moves in line with the Bank of England Base Rate.
Gilt & Fixed Interest Fund Aim – To provide long-term growth by investing in a range of fixed interest assets.
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Index-linked Fund Aim – To achieve capital growth by investing in a range of securities where the capital value and/or interest payments are linked to a specific index.
Distribution Fund (Inc) (Life only) Aim – All the income generated within the fund is distributed, while the capital is left untouched. The manager may invest in the full range of assets, predominantly UK equities, fixed interest, index-linked stocks and cash.
Distribution (Accumulation) (Life only) Aim – All the income is re-invested within the fund, leaving the capital untouched. The manager may invest in the full range of assets, predominantly UK equities, fixed interest, index-linked stocks and cash.
With-Profits Aim – To generate capital growth over the medium to long term (at least five years), with some stability over the short term.
With-Profits (Inc) (Life only) Aim – To provide a relatively high ‘income’ with as much stability of both ‘income’ and capital as we can provide.
Managed Income Fund (Inc) (Life only) Aim – To provide as high a level of income as possible consistent with the maintenance of capital in the medium to long term (up to ten years). The fund invests in a broad range of assets.
Managed Income Fund (Accumulation) (Life only) Aim – To provide as high a level of income as possible consistent with the maintenance of capital in the medium to long term (up to ten years). The fund invests in a broad range of assets. All the income is re-invested within the fund, leaving the capital untouched.
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Property Fund Aim – To provide long-term growth by investing in retail, office, industrial and agricultural properties, and may also finance developments and acquire land for development.
Equity High Income (Inc) (Life only) Aim – To provide a growing income together with long-term capital growth. In the short term, both income and capital level could be variable. The fund will invest primarily in the shares of UK companies which offer a higher than average yield.
Equity High Income Fund (Accumulation) Aim – To provide an above average and increasing income, together with long-term capital growth by investing primarily in shares of UK companies.
Ethical Fund Aim – To achieve long-term growth of capital and income by investing primarily in shares of UK and/or European companies, which meet a range of ethical criteria.
European Fund Aim – To achieve long-term capital growth by investing primarily in shares of European (excluding UK) companies.
Global Equity Tracker (Pensions only) Aim – To achieve long-term growth by investing in four underlying tracker funds which seek to match the performance of the FTSE All Share, S&P 500, Dow Jones Eurostoxx 50 and Nikkei 300.
UK Equity Fund Aim – To provide long-term capital growth by investing in a range of UK equities.
UK Equity Tracker Fund (Pensions only) Aim – To achieve long-term capital growth by investing in a representative sample of UK equities and for these assets to match the capital performance of the FTSE All-Share Index.
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UK Smaller Companies Fund Aim – To achieve long-term capital growth by investing primarily in UK smaller companies.
Japan Fund Aim – To achieve long-term capital growth by investing primarily in shares of Japanese companies.
North American Fund Aim – To achieve long-term capital growth by investing primarily in shares of US Companies.
Pacific Fund Aim – To achieve long-term capital growth by investing primarily in shares of Asian (excluding Japan) and Australasian companies.
Retirement Protection (Pensions only) Aim – To broadly match the performance of those UK gilt-edged stocks that influence market yields for pension annuity rates by investing totally in long-dated stocks.
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Fund of Funds
These are fully managed, unit-linked funds that invest in a range of funds from different investment houses. The Fund of Funds offers returns directly driven by the performance of stocks, shares and other assets in which the underlying funds are invested. If you would like information about the external funds that are available, please ask for a copy of our ‘External funds portfolio’ (reference X1556). We strongly recommend that you discuss your choice with your financial adviser before deciding which fund(s) to invest in.
Clerical Medical Adventurous Fund of Funds Aim – To achieve capital growth by investing predominantly in units or shares of collective investment schemes which invest in any or all geographic or economic sector or sectors of the world. The Fund may also invest directly in equities in such geographic or economic sectors.
Clerical Medical Balanced Fund of Funds Aim – To achieve an average level of income combined with capital growth by investing predominantly in units or shares of collective investment schemes which invest in any or all geographic or economic sector or sectors of the world. The Fund may also invest directly in equities and fixed interest securities in such geographic or economic sectors.
Clerical Medical Cautious Fund of Funds Aim – To produce a high level of income by investing predominantly in collective investment schemes which are mainly invested in UK corporate fixed interest stocks but with some exposure to UK equities. The Fund may also invest directly in such fixed interest stocks and equities.
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Clerical Medical Global Dynamic Managed Fund of Funds Aim – To achieve a high rate of long-term capital growth by investing predominantly in units or shares of collective investment schemes which invest mainly in equity markets internationally. The Fund may also invest directly in such equity markets.
Clerical Medical UK Alpha Fund of Funds Aim – To produce capital growth by investing predominantly in units or shares of collective investment schemes which invest mainly in UK equities. The Fund may also invest directly in UK equities.
Clerical Medical UK Equity Fund of Funds Aim – To achieve long-term capital growth by investing predominantly in units of collective investment schemes which invest in any sector of the UK economy. The Fund may also invest directly in securities in such sectors.
Clerical Medical UK Equity Income Fund of Funds Aim – To achieve an above average level of income combined with capital growth by investing predominantly in units of collective investment schemes which invest in any sector of the UK economy. The Fund may also invest directly in securities in such sectors.
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Mutual funds
These are fully managed mutual funds available through our OpenEnded Investment Company (OEIC). The investment managers select from a specified range of investment markets and sectors with the intention of achieving the aims of the fund. Mutual Funds offer returns directly driven by the performance of stocks, shares and other assets in which funds are invested. We strongly recommend that you talk to your financial adviser before deciding which fund(s) to invest in.
International Managed Fund Aim – To provide investors with long-term capital growth. The Investment Adviser will seek to achieve this objective primarily by investing in a globally diversified portfolio of securities at a higher rate in Sterling terms than the FT/S&P Actuaries World Index.
Balanced Managed Fund Aim – To achieve long-term capital growth for sterling based investors through a diversified portfolio of investments. The Investment Adviser will seek to achieve the objective of the Fund by using a combination of securities and cash to provide an appropriate balance between risk and reward.
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Distribution (Accumulation) Fund Aim – To provide a growing income together with a balance between capital stability and long-term growth. The Investment Adviser will seek to achieve this objective primarily through investment in a diversified portfolio of UK securities (including fixed interest securities). The Fund may also invest in units in collective investment schemes, warrants, cash and near cash and money market instruments.
Distribution (Inc) Fund Aim – To provide a growing income together with a balance between capital stability and long-term growth. The Investment Adviser will seek to achieve this objective primarily through investment in a diversified portfolio of UK securities (including fixed interest securities). The Fund may also invest in units in collective investment schemes, warrants, cash and near cash and money market instruments.
FTSE 100 Tracker Fund Aim – The Investment Adviser will seek to achieve the objective of the Fund by tracking the capital performance of the UK equity market as represented by the FTSE 100 Index. The relevant Investment Adviser will closely replicate the index by holding principally the stocks represented therein. The approach to index investment management is not based on subjective judgment. Funds are managed according to predetermined guidelines with monitoring systems designed to identify any deviation.
Income (Accumulation) Fund Aim – To provide investors with a high level of income. The Investment Adviser will seek to achieve this objective primarily by investing in a diversified portfolio of UK fixed interest securities.
Income (Inc) Fund Aim – To provide investors with a high level of income. The Investment Adviser will seek to achieve this objective primarily by investing in a diversified portfolio of UK fixed interest securities.
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Annual management charges This table shows the annual management charges (AMC) that apply to the range of unitised funds. Fund name
Group Pension AMC
Individual Pension AMC
Life AMC
Mutual Funds AMC
Adventurous Managed
1.0%
1.0%
1.3%
N/A
Balanced Managed
1.0%
1.0%
1.0%
1.0%
Cash
1.0%
1.0%
1.0%
N/A
Cautious Managed
1.0%
1.0%
1.0%
N/A
Distribution (Accumulation)
N/A
N/A
1.0%
1.0%
Distribution (Inc)
N/A
N/A
1.0%
1.0%
Equity High Income (Accumulation)
1.0%
1.0%
1.0%
N/A
Equity High Income (Inc)
N/A
N/A
1.0%
N/A
Ethical
1.0%
1.0%
1.0%
N/A
European
1.0%
1.0%
1.3%
N/A
FTSE 100 Tracker
N/A
N/A
N/A
1.0%
Gilt & Fixed Interest
1.0%
1.0%
1.0%
N/A
Global Equity Tracker
1.0%
1.0%
N/A
N/A
Halifax
1.0%
1.0%
N/A
N/A
Income (Accumulation)
N/A
N/A
N/A
1.0%
Income (Inc)
N/A
N/A
N/A
1.0%
Index-linked
1.0%
1.0%
1.0%
N/A
International
1.0%
1.0%
1.3%
N/A
International Managed
N/A
N/A
N/A
1.0%
Invested Annuity With-Profits
N/A
1.0%
N/A
N/A
Japan
1.0%
1.0%
1.3%
N/A
Managed Income ( Accumulation)
N/A
N/A
1.0%
N/A
Managed Income (Inc)
N/A
N/A
1.0%
N/A
Non-Equity Managed
1.0%
1.0%
1.0%
N/A
North American
1.0%
1.0%
1.3%
N/A
Pacific
1.0%
1.0%
1.3%
N/A
Property
1.0%
1.0%
1.0%
N/A
Retirement Protection
1.0%
1.0%
N/A
N/A
UK Equity
1.0%
1.0%
1.0%
N/A
UK Equity Tracker
1.0%
1.0%
N/A
N/A
UK Smaller Companies
1.0%
1.0%
1.0%
N/A
With-Profits (Regular)
1.3%
1.0%
1.3%
N/A
With-Profits (Single)
1.3%
1.0%
1.3%
N/A
With-Profits Income
N/A
N/A
1.3%
N/A
There may be restrictions on the availability of funds to particular products. For further information please refer to the relevant product literature.
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Important notes
If you are investing in pensions products you should note that the benefit you will buy at your selected retirement date will not entirely depend on our investment performance. Both mortality rates and the related annuity rates can change regardless of how the fund performs. The withdrawal of any investment may, in exceptional circumstances, be deferred for up to one month. If units are allocated to the Property Fund, or any funds that invest partly in property, we may postpone encashment for up to six months. This is because these assets can be less easy to sell than stocks and shares. Property valuation is a matter of judgment by a valuer. The value of an investment can fall as well as rise as a result of market movements. You may not get back the amount originally invested. The income that you receive can go up or down and is not guaranteed. The terms and conditions in this booklet are those which applied at the time it was published and could alter in the future.
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Part of the HBOS Group Clerical Medical Investment Group Limited. Registered Office 33 Old Broad Street, London EC2N 1HZ. Registered in England and Wales, Registered No. 3196171. Authorised and regulated by the Financial Services Authority. A member of ABI. www.clericalmedical.co.uk
E579/1104 (Compliance no 10505.1)
