INVESTMENT OPTIONS. - Legal & General

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8 Individual AND GROUP pensionS – Investment options FUND INFORMATION. The following pages provide: • details of the pension plans the funds are available for, • a brief introduction to each fund manager, • the individual aim of each fund, • the fund specific risks applicable to that fund, • the underlying fund type and EFAMC where applicable, and • the spread where applicable. Please go to the Fund specific risk definitions section on page 31 of this guide if you haven’t done so already, as you need to cross-reference the fund specific risk numbers. FUNDS MANAGED BY LEGAL & GENERAL The following funds are available to all pension plans: Legal & General Group The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2010, we were responsible for investing £365 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans. LEGAL & GENERAL CASH FUND Fund aim: To provide capital protection with growth at short-term interest rates. The fund invests in the short-term money markets, such as bank deposits and Treasury Bills. Notes A. The fund does not invest in any asset types where the capital value can fall, such as fixed interest securities. The value of the fund’s assets would only fall if a deposit holder or the UK Government were unable to meet their obligations. B. If the interest earned by the fund’s assets is insufficient to cover the product charges, the value of your pension fund will fall. Fund specific risks: 24 Spread: 0.03% LEGAL & GENERAL CONSENSUS FUND Fund aim: The fund combines the long-term growth potential offered through UK and overseas equities with the relative security provided by gilts, bonds and cash. The assets held within the fund are passively managed and based on the average investment mix of a large number of major pensions funds using the three-monthly Combined Actuarial Performance Survey (excluding property). Fund specific risks: 12, 13, 14, 24 Spread: 0.73% LEGAL & GENERAL DISTRIBUTION FUND Fund aim: The fund is a balanced fund and its investments include equities, fixed interest securities and property. The fund aims to offer good long-term growth potential through a combination of capital growth and reinvested income, from a cautious, balanced portfolio, and is actively managed to achieve this objective. Fund specific risks: 12, 13, 14, 16, 17, 23 Spread: 1.38% LEGAL & GENERAL EQUITY FUND Fund aim: To maximise the investment return by investing in a very broad mix of mainly UK companies. Fund specific risks: 13, 19 Spread: 1.29%
Individual AND GROUP pensionS – Investment options 9 LEGAL & GENERAL ETHICAL FUND Fund aim: The fund is set up in such a way that it aims to reflect the performance (before charges) of the FTSE 350 index, not including companies whose business does not keep to a range of ethical and environmental guidelines. Fund specific risks: 13, 19, 27 Spread: 0.87% LEGAL & GENERAL EUROPEAN FUND Fund aim: To provide the potential for long-term growth by investing in a portfolio exclusively invested directly or indirectly in European securities, other than those of the UK, which may be selected from all economic sectors. Fund specific risks: 12, 13 Spread: 0.77% LEGAL & GENERAL EUROPEAN EQUITY INDEX FUND Fund aim: The fund is set up in such a way that its performance (before charges) aims to reflect that of the FTSE Europe (excluding UK) Index with income reinvested. Fund specific risks: 12, 13 Spread: 0.45% LEGAL & GENERAL FAR EASTERN FUND Fund aim: To provide the potential for long-term growth by investing directly or indirectly into a portfolio of Far Eastern securities, which may be selected from all economic sectors. Fund specific risks: 12, 13, 21 Spread: 0.73% LEGAL & GENERAL FIXED INTEREST FUND Fund aim: To maximise the overall returns from interest received and capital values of a portfolio of investments in British Government stocks and other readily marketable fixed interest securities. This may also include quoted marketable stocks of overseas governments and companies. Fund specific risks: 14 Spread: 0.07% LEGAL & GENERAL INDEX LINKED GILT FUND Fund aim: To get the best return from a portfolio of mainly index-linked securities issued predominantly by the UK Government. Fund specific risks: 14, 20 Spread: 0.32% LEGAL & GENERAL INTERNATIONAL FUND Fund aim: The fund seeks to secure long-term capital growth from a widespread portfolio of international securities. Occasionally shares of UK companies, a large proportion of whose profits arise from overseas earnings, may be included. Fund specific risks: 12, 13 Spread: 0.68% LEGAL & GENERAL JAPANESE EQUITY INDEX FUND Fund aim: The fund is set up in such a way that its performance (before charges) aims to reflect that of the FTSE Japan Index with income reinvested. Fund specific risks: 12, 13 Spread: 0.68%
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INVESTMENT OPTIONS. - Legal & General

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