INVESTMENT OPTIONS. - Legal & General

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12 Individual AND GROUP pensionS – Investment options The following fund is only available for the following pension plans: Buy Out Plans Company Pension Plans Company Sponsored Additional Voluntary Contribution Schemes Directors Pension Plans Executive Pension Plans Pension Investment Plans Personal Pension 2000 plans Personal Pension Scheme No.1 plans Pension Savings Plans Self Employed Plans Self Invested Personal Pension 2000 plans Trustee Investment Plans that started before November 1999 LEGAL & GENERAL WITH PROFITS FUND The With Profits Fund works differently from all our other investment funds. Any contributions into With Profits are combined with those of other investors and invested primarily in a broad mix of shares, Government and corporate stocks and UK commercial property. We aim to smooth returns to investors so that some of the short-term fluctuations in the value of the underlying investments are not immediately reflected in payments under With Profits policies. Your plan benefits from the addition of any bonuses. Bonus rates are not guaranteed and depend mainly on the long-term investment performance of the underlying investments. Existing investors in With Profits may be entitled to other contractual additions. You can find details of these in your plan document. Annual bonus We may add an annual bonus each year. Annual bonuses are normally declared at the end of each calendar year. Once annual bonuses are added they cannot be withdrawn. Final bonus We may pay a final bonus: • when you reach your Selected Retirement Age; • if you take your benefits early; • if you die; • if you switch to another fund. Final bonus rates fluctuate and can be changed or removed without notice. Guarantees and options Any investment in With Profits will share in the risks of other With Profits pension plans, which can reduce your bonuses and therefore the amount we pay you. You also share in the risks of other With Profits policies such as bonds. We write With Profits and Non Profit policies (that is policies which are not eligible for bonuses) in our With Profits Fund. We provide guarantees for both With Profits and Non Profit policies and the assets in the whole fund are ultimately available to meet them. This means that although you may benefit from support from the assets backing Non Profit business, we could reduce the amount we pay you if we have to use the assets backing With Profits business to support Non Profit business. Market Value Reduction (MVR) We may reduce the value of your policy by applying an MVR if you: • transfer to another pension arrangement; • switch into another investment choice; • take your benefits before your Selected Retirement Date. This may happen if, for example, the actual return on the underlying investments is less than that required to support the bonuses to which you are eligible. It will also account for additional deductions that may be required to cover the cost of guarantees and options for With Profits policies. If you want more information about MVRs contact us on 03459 932 584 Mon–Fri 9am–5pm. Call charges will vary. We may record and monitor calls. Availability Please note that investments in With Profits stop participating in profits after your Selected Retirement Date. You cannot invest in With Profits in any of the following situations: • If you are within five years of your Selected Retirement Date, you cannot pay any single or special contributions or any transfer values into With Profits. • If you are within five years of your Selected Retirement Date, you cannot switch your existing pension fund and/or any on-going contributions into With Profits. • If you choose to defer taking your pension after your Selected Retirement Date, you cannot continue to invest in With Profits.
Individual AND GROUP pensionS – Investment options 13 Further information on With Profits You can ask your adviser for a copy of our An Introduction to Unitised With Profits guide, which explains the particular features of With Profits investments and describes how we managed our unitised With Profits investments. A more detailed description of With Profits is contained in a document called Principles and Practices of Financial Management (PPFM) which is available on request. FUND MANAGERS OTHER THAN LEGAL & GENERAL The following funds are only available for the following pension plans: Personal Pension 2000 plans that started on or after 6 April 2001 Self Invested Personal Pension 2000 plans that started on or after 6 April 2001 Stakeholder Pension plans Trustee Investment Plans that started after June 2002 Aberdeen Unit Trust Managers Limited Aberdeen Asset Management PLC is an international investment management group, managing assets for both institutional and private clients from offices around the world. Their clients access investment expertise across the three asset classes: equities, fixed income and property. They currently have over £183.3 billion total group funds under management and advice as at 31 December 2010. (Source: Aberdeen Unit Trust Managers Limited) LEGAL & GENERAL ABERDEEN LIFE GLOBAL (EX UK) EQUITY FUND Fund aim: To provide exposure to an actively managed portfolio of overseas equities – an asset class that is expected to provide long-term returns that are ahead of inflation. EFAMC: 0.15% Fund specific risks: 12, 13, 20, 21 Underlying fund type: OEIC LEGAL & GENERAL ABERDEEN LIFE GLOBAL GROWTH FUND Fund aim: To maximise the value of pensions savings, achieving long-term returns that are ahead of inflation through active investment primarily in UK and overseas equities. EFAMC: 0.15% Fund specific risks: 12, 13, 21 Underlying fund type: OEIC LEGAL & GENERAL ABERDEEN LIFE MULTI-ASSET (EX PROPERTY) FUND Fund aim: To maximise the value of pension savings, achieving long-term returns that are ahead of inflation. EFAMC: 0.15% Fund specific risks: 12, 13, 14, 21 Underlying fund type: OEIC LEGAL & GENERAL ABERDEEN LIFE UK EQUITY FUND Fund aim: The fund is actively managed and provides exposure to UK equities. It aims to outperform its benchmark which is currently calculated using index returns. EFAMC: 0.15% Fund specific risks: 13, 20 Underlying fund type: OEIC
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INVESTMENT OPTIONS. - Legal & General

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