Supplementary Information Document - M&S Bank - Marks & Spencer

M&S Investment fundsSupplementaryInformation Documentfor investment in theM&S Unit Trust FundsTo be read in conjunction with the Key Investor InformationDocument for each of the M&S Unit Trust Funds.

Using the supplementaryinformation documentThe Financial Conduct Authority is the independent financial services regulator. It requires us,Marks and Spencer Unit Trust Management Limited, to give you important information to helpyou decide whether our unit trust funds are right for you.This brochure will supplement the Key Investor Information Document (KIID) on each individualfund to give you this important information. You will find a copy of the KIID for each fund in thefolder. Each KIID contains a short description of the investment objective and policy, a descriptionof the risks and the risk/reward profile of the fund, a presentation of past performance and detailsof charges. It is important to read the KIID for the relevant fund(s) as you will need to confirm thatyou have received and read the latest version of this document to be able to invest. If you areinvesting via a stocks and shares ISA you will also need to read our Stocks and Shares ISA Termsand Conditions which you will also find in the folder along with application and transfer forms anda prepaid envelope if you choose to apply by post.The brochure has four main sections and includes information such as how to invest in the funds,how you can invest via stocks and shares ISAs (Individual Savings Accounts) and how to transferany existing ISA investments you have to us, if you want to do that.We know that investing is a serious business and we ask that you read the information carefully.It is important that you understand these stock market based investments, particularly the risksinvolved. It is also important to note that the price of units and income from them can go downas well as up and you may not get back the amount you originally invested. Investment in anyfund should be considered a medium to long term investment (5 years or more).So, if you have any questions, look in the your questions answered section first to see if yourquestion is answered there, or contact us on 0808 005 5555*.02For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

1. Guide to investing2. Your questions answered3. Additional fund information4. General informationIf you need help with explanations, filling in forms, or other information, please call us on 0808 005 5555*.We do not provide financial advice. We only provide factual information regarding the funds. If you arein any doubt as to the suitability of these funds, please contact an independent financial adviser.03

1. Guide to investingThis section describes the practical part of investing. It covers investment into the funds directly andthrough a stocks and shares ISA. It also includes information on how to invest, how to sell units, theprice of units, what types of units are available and what happens to the income from each of the funds.We offer four different fund options:• Marks & Spencer UK 100 Companies Fund• The Marks and Spencer Worldwide Managed Fund• Marks & Spencer High Income Fund• The Marks and Spencer UK Selection PortfolioDetails of each of our four funds are contained in the separate individual Key Investor InformationDocuments (KIIDs) in the folder.Direct or ISA investingYou can invest in two ways. Either directly orthrough a tax-efficient stocks and shares ISA(Individual Savings Account). With an ISA you caninvest up to £15,240 in the 2015/16 tax year. ISAsare free from any personal liability to UK income taxand capital gains tax.For details of the tax position when investingdirectly in the funds, please see ‘will I have to payincome or capital gains tax?’ in our ‘your questionsanswered’ section.A guide to ISAsAn individual savings account (ISA) is a tax-efficientaccount for savings and investments free from anypersonal liability to UK income tax and capital gainstax. We offer two kinds – stocks and shares ISAs andcash ISAs. Investors must be resident in the UK, orbe a crown employee serving overseas (for examplea member of the armed services), or be marriedto, or in a civil partnership with, a crown employeeserving overseas.You can subscribe up to £15,240 to an ISA in the2015/16 tax year. This whole sum can be subscribedto a stocks and shares ISA, or a cash ISA, or acombination of the two.If you hold a stocks and shares or cash ISA withanother provider and want to transfer it to ourstocks and shares ISA, please see ‘can I transfer myISA?’ in our ‘your questions answered’ section.04For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

How to investYou can invest in each of the funds directly orthrough a stocks and shares ISA by telephoneon 0808 005 5555* or by completing the writtenapplication form included in this pack.You can invest a lump sum directly in the funds orvia a stocks and shares ISA with a cheque or debitcard (Visa Debit, Debit MasterCard, Maestro), ormonthly by Direct Debit. Each working day at 8am,new unit prices will be calculated for the funds. Thisis called the valuation point. Instructions to buy unitsin each of the funds will be carried out at the next8am valuation point price following receipt. This iscalled forward pricing.The price of unitsThe buying and selling prices for the funds arepublished daily online at marksandspencer.com/unittrusts or you can obtain the fund prices bytelephoning us.Minimum investmentThe minimum initial lump sum you can investis £100. Following this, you can make top-upinvestments of £25 or more.The minimum amount that can be invested on amonthly basis by Direct Debit is £25.Monthly Direct Debit investments will usually beclaimed on the 4th day of each month, or the nextworking day if the 4th is not a working day, andunits will be bought at the buying price on this day.How to sell unitsYou can sell units held in each of the funds directly, orvia a stocks and shares ISA at any time by telephoneor by writing to us. You can also instruct us towithdraw all, or part, of your investment at any time.We may ask you to confirm any instructions givenover the telephone in writing. Written instructionsto sell must be signed by each unitholder.Payment can be by cheque made payable to you,or direct to your bank or building society account.We will carry out any transactions that remain to becompleted.05

1. Guide to investingUnit types available for each methodof investmentThe income received from the stocks and sharesheld in the funds will either be paid out (incomeunits) or reinvested for you (accumulation units)depending on the type of units you hold.If you hold income units, your income is paid toyour bank or building society account.If you hold accumulation units, income is reinvestedback into the fund. This will not buy additional units,but will be reflected in the price of accumulation units.For detailed information on the taxation of incomewhen investing directly in the funds see ‘will I haveto pay income or capital gains tax?’ in our ‘yourquestions answered’ section.For the Worldwide Managed Fund, UK 100 Companies Fund and UK Selection Portfolio, the type ofunits available for each type of investment are:Lump sum – Direct investmentLump sum – Stocks and shares ISAMonthly investment by Direct Debit – Direct investmentMonthly investment by Direct Debit – Stocks and shares ISAINCOMEUNITSYESNONONOACCUMULATIONUNITSYESYESYESYESFor the High Income Fund the type of units available for each type of investment are:Lump sum – Direct investmentLump sum – Stocks and shares ISAMonthly investment by Direct Debit – Direct investmentMonthly investment by Direct Debit – Stocks and shares ISAINCOMEUNITSYESYESNONOACCUMULATIONUNITSYESYESYESYES06For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

The payment dates for income from the funds are:UK 100 Companies FundLast working day in April and October.Worldwide Managed FundLast working day in February and August.High Income FundLast working day in March, June, September and December.UK Selection PortfolioLast working day in January and July.07

2. Your questions answeredYou will find answers to many of your questions here. Have a read through the questions or callus on 0808 005 5555*.Questions about ISAsHow do ISAs work?ISAs (individual savings accounts) are thegovernment’s way to help you save and invest. You willnot pay any UK income tax or capital gains tax on anyincome or capital gains within your ISA. We offer twotypes of ISA: a cash ISA and a stocks and shares ISA.You can subscribe up to £15,240 to an ISA in the2015/16 tax year. This whole sum can be subscribedto a stocks and shares ISA, or a cash ISA, or acombination of the two.You can subscribe to one cash ISA and one stocksand shares ISA each tax year.Can anyone invest in an ISA?Individuals aged 16 and over can subscribe to a cashISA. Individuals aged 18 and over can subscribe toa stocks and shares ISA. Investors must be residentin the UK, or be a crown employee serving overseas(for example a member of the armed services), orbe married to, or in a civil partnership with, a crownemployee serving overseas.Can I transfer my ISA?You may wish to transfer a cash ISA or stocks andshares ISA you hold with another manager to us.You simply need to complete our stocks and sharesISA transfer form (in the folder). We will then makeall the necessary arrangements with your existingmanager to effect the transfer.For the transfer of a stocks and shares ISA anyinvestments held in your current ISA will be sold andthe proceeds sent to us and invested in the fund(s)you have chosen. The proceeds from selling yourexisting investments will usually be out of the stockmarket for up to 30 working days.During this time the stock market may move up ordown, resulting in the potential for loss of incomeand growth. If you are transferring to us a stocks andshares ISA containing units in our funds these can betransferred to us without being sold, and held in yourstocks and shares ISA with us.Please note your existing ISA manager may levy anexit charge on transfer.The amount transferred will not count towards theISA subscription limits.You can also transfer an M&S Stocks and Shares ISAto another provider. Just contact the provider youhave selected and they will contact us directly toorganise the transfer.Who is the ISA manager?The ISA manager is Marks and Spencer Unit TrustManagement Limited.Each year we will report to HM Revenue & Customsall subscriptions made to our stocks and shares ISAso that they can check that customers have notexceeded the ISA limits.08For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

Tax questionsWhat is the tax position of thefunds themselves?Capital gains made within the funds are not liableto tax. Income received by the funds, without taxdeducted, is liable to corporation tax at a rate of 20%after allowing for fund expenses.Will I have to pay any income orcapital gains tax?This depends on whether your investment is a directinvestment into the fund or via a stocks and shares ISA.Different funds also have different tax implicationsand these are explained here.Direct investment in a fund (outside an ISA)Worldwide Managed Fund, UK Selection Portfolio,UK 100 Companies FundDividends distributed will have a tax credit of 10%attached to the payment. Non-taxpayers cannotreclaim the 10% tax credit. Basic rate taxpayers willhave no further tax liability. Higher rate taxpayers willhave to pay an extra 22.5% tax, giving a total liability of32.5% tax. Additional rate taxpayers will have to pay anextra 27.5% tax giving a total tax liability of 37.5%.High Income FundInterest will be distributed after the deductionof 20% tax. Non-taxpayers can reclaim the taxdeducted. Basic rate taxpayers will have no furthertax liability.Higher rate taxpayers will have to pay an extra 20%tax, giving a total liability of 40% tax. Additional ratetaxpayers will have to pay an extra 25% tax giving atotal tax liability of 45%.GeneralIf you make a gain when selling your investment youcould be liable to capital gains tax. Individuals canmake up to £11,100 worth of gains in the 2015/16 taxyear before they would be liable to capital gains tax.The rates and basis of taxation may change in thefuture. You should remember that the tax lawapplicable depends on your own personal situationand residency status.If you are not clear about your tax position, youshould seek professional advice or contact yourlocal tax office for further information.Tax advantages of a stocks and shares ISAStocks and shares ISAs are free from any personalliability to UK income tax and capital gains tax.The 10% tax credit on dividends distributed from theWorldwide Managed Fund, UK Selection Portfolio andUK 100 Companies Fund cannot be reclaimed.For the High Income Fund, if you have selected tohave income paid out this will not be subject to thededuction of 20% tax. If you have selected to haveincome reinvested, extra units will be bought for youraccount with the difference between the amountreinvested in the fund (net of 20% tax) and reflectedin the unit price, and the gross amount due to you.The value of the stocks and shares ISAtax benefits depend on your own personalcircumstances.The tax benefits of a stocks and shares ISAare subject to government legislation and maychange in the future.09

2. Your questions answeredQuestions about Key InvestorInformation Documents (KIIDs)What is a KIID?This is a two-sided document produced for eachfund containing key information about the fund. Itsets out key facts regarding the fund’s objective,investment policy, risks, charges, past performanceand other practical information. The FinancialConduct Authority requires us to provide you withthis information which is intended to help youcompare different funds and make informedinvestment decisions.You must have received and read the latest versionof the KIID for the funds before making a finaldecision to invest and the KIID should be read inconjunction with this supplementary informationdocument and the M&S Stocks and Shares ISA Termsand Conditions.If you do not confirm that you have received andread the latest version of the KIID for your chosenfund(s) your investment will be delayed.Copies are included in the folder.How can I get the latest KIID for thevarious funds?New investorsYou should have received a copy of the latest KIID foreach of the funds offered within this application pack.If you apply using the application form(s) enclosed inthe application pack you will be asked to declare thatyou have received and read the latest version of theKIID for your chosen fund(s). Your application will onlybe accepted if you have signed the declaration.If you apply by telephone you will be asked toconfirm during the telephone call that you havereceived and read the latest version of the KIIDfor your chosen fund(s). Your application will onlyproceed if you provide this confirmation.Existing investors – providing you with thelatest KIIDsBefore making a top-up investment, increasingthe amount invested on a monthly basis by DirectDebit, or switching from one fund to another, we arerequired to ensure that you have received and readthe latest version of the KIID for the fund(s) you areinvesting in.The KIID for each fund will be reviewed and updatedat least on an annual basis. We have decided to postthe latest KIIDs to existing customers following eachupdate. This means you will always have the latestversion, making top-up investments into the samefund(s), or increasing the amount invested on amonthly basis, a straightforward process.It will allow you to review the key information aboutthe fund(s) contained in the KIID before going ahead,and will mean you are able to confirm you havereceived and read the latest version of the KIID wheninstructing us.Existing investors – top-up investmentsIf you are making a further investment into a fund inwhich you already have a holding then, as outlined in‘existing investors – providing you with the latest KIID’,you should always hold the latest KIID for that fund.If, however, you are making an investment into afund in which you do not have a holding, you willneed to phone us or write asking us to send youthe latest KIID for the fund(s) before making theinvestment. We can either post it or send it by email.For top-up investments by telephone, you will beasked to confirm during the telephone call that youhave received and read the latest version of the KIIDfor your chosen fund(s). Your instruction will onlyproceed if you provide this confirmation.If you make a top-up investment by post using thetop-up form provided following your firstinvestment, you will be asked to declare that youhave received, and read, the latest version of the KIID10For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

for your chosen fund(s). Your top-up investment willonly be accepted if you have signed the declaration.If you post a cheque and covering letter to us tomake a top-up investment, this will be acceptedprovided that you confirm in your letter that youhave received and read the latest version of theKIID. If your letter does not provide this confirmationwe will attempt to contact you by telephone toprogress your top-up investment.Existing investors – increasing the amountinvested into a fund on a monthly basisFor telephone instructions to increase a monthlyinvestment amount, you will be asked to confirmduring the call that you have received and read thelatest version of the KIID for your chosen fund(s).Your application will only proceed if you providethis confirmation.We can either post the KIID to you or send it byemail.For instructions to switch by telephone, you willbe asked to confirm, during the call, that you havereceived and read the latest version of the KIID foryour chosen fund(s). Your instruction to switch willonly proceed if you provide this confirmation.If you provide written instructions to switch by post,this will be accepted if you confirm in your letter thatyou have received and read the latest version of theKIID for your chosen fund(s). If your letter does notprovide this confirmation we will attempt to contactyou by telephone to progress your instruction.If you give written instructions by post to increase amonthly investment amount, this will be acceptedif you confirm in your letter that you have receivedand read the latest version of the KIID for yourchosen fund(s). If your letter does not provide thisconfirmation we will contact you by telephone toprogress your instruction.Existing investors – switching to another fund(s)If you wish to switch your investment to anotherfund(s) we offer, you will need to confirm that youhave received and read the latest KIID for the fund(s)that you are switching into. If you are switching intoa fund in which you already have a holding then, asoutlined in ‘existing investors – providing you withthe latest KIID’, you should always hold the latest KIIDfor that fund.If, however, you are switching into a fund(s) in whichyou do not have a holding you will need to phoneus or write asking us to send the latest KIID for thefund(s) before instructing us to carry out the switch.11

2. Your questions answeredGeneral questionsCan I get more information on eachof the funds?The following documents are available free of charge:• A copy of the Prospectus on each fund• The latest Annual or half-yearly full Report andAccounts• The six-monthly Short Report for the fundPlease call 0808 005 5555* or download printableversions from marksandspencer.com/unittrustsIs my investment protected by theFinancial Services Compensation Scheme?How can I contact you?If you have queries on any of the funds or wouldlike to discuss buying or selling units please call0808 005 5555*.The address to write to is:M&S Savings and InvestmentsKings MeadowChesterCH99 9UTTelephone: 0808 005 5555*Fax: 01244 686116Email: Internet.investments@mandsbank.comIf we cannot meet our financial obligations to you,you may be entitled to compensation under theFinancial Services Compensation Scheme. Themaximum level of compensation you can receivefrom the scheme is £50,000. Details of the schemecan be obtained from the FSCS at:FSCS10th Floor, Beaufort House15 St Botolph StreetLondonEC3A 7QUTelephone helpline: 0207 741 4100or 0800 678 1100Email: enquiries@fscs.org.ukInternet: fscs.org.uk12For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

3. Additional fund informationThis section includes additional information about each fund and is applicable to both directinvestment into the fund(s) and investment through a stocks and shares ISA. As with all of thefund information in this brochure, it should be read in conjunction with the KIID which includesthe objectives, investment policy and risks of each fund.Worldwide Managed FundFund managementThe investment adviser to this fund is HSBC GlobalAsset Management (UK) Limited. They directlymanage a proportion of the fund and sub-delegatethe remaining portion to the following specialistfund advisers:• Insight Investment Management (Global) Limited• Axiom International Investors, LLC• Sanders Capital, LLC• Wellington Management International LimitedThe percentage of the fund allocated to each of theabove advisers will be published in both the Annualand Interim Report and Accounts and the sixmonthlyShort Report for the fund.Initial chargeThere is no initial charge.Ongoing chargesThe ongoing charges that are applied to the fundare currently 1.58% per year and are made up of theannual management charge and the fund expenses(see below for further details).Annual management chargeThe annual management charge for the fund(based on the fund’s net asset value) is 1.50%. It iscalculated on a daily basis and deducted from theincome of the fund monthly, reducing the amountof income reinvested or paid out.Fund expensesThese are estimated to be 0.08% of the fund’s netasset value. They are deducted from the incomein the fund and include the fees of the Trustee,Custodian, Auditors, Financial Conduct Authority,our fees for maintaining the register of investors,together with certain other fees and expenses (plusVAT if applicable) permitted by the regulationsgoverning unit trust funds (these are set out in thefull Prospectus for the fund).Dilution levyThe fund operates on a single pricing basis. This meansit has one price for buying and selling units based on amid-market valuation of the stocks and shares held inthe fund.The unit price does not include the costs of buyingand selling investments (the difference between thebuying price and selling price of shares, stockbrokercommission and stamp duty) for the fund as a resultof investors buying and selling units. These costs willnormally be charged direct to the fund and couldlower the value of an existing investor’s holding.This effect is called ‘dilution’. In order to avoid thiswe reserve the right to recover these costs bycharging a dilution levy when investors buy or sellunits. Dilution levy will be paid into the fund for thebenefit of all investors and will not be retained by us.If a dilution levy is charged the details will appearon any contract note and/or six-monthly statementissued to you. Full details of our current dilutionlevy policy are set out in the full Prospectus of thefund which is available free of charge.14For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

High Income FundFund managementThe investment adviser to the fund is HSBC GlobalAsset Management (UK) Limited. They delegate dayto day management of the fund to specialist fundadvisers:• Insight Investment Management (Global) Limited• Columbia Management Investment Advisers, LLC• HSBC Global Asset Management (USA) IncInitial chargeThere is no initial charge, therefore no differencebetween the buying and selling price of units.Ongoing chargesThe ongoing charges that are applied to the fundare currently 1.00% per year and are made up ofthe annual management charge only (see below forfurther details).Annual management chargeThe annual management charge for the fund(based on the fund’s net asset value) is 1.00%. It iscalculated on a daily basis and deducted from thecapital of the fund monthly.Fund expensesFund expenses are not deducted from the fund,but are paid by Marks and Spencer Unit TrustManagement Limited. These expenses include theTrustee, Custodian, Auditors, Financial ConductAuthority, together with certain other fees andexpenses (plus VAT if applicable) permitted by theregulations governing unit trust funds (these areset out in the full Prospectus for the fund).WithdrawalsThere is no charge for withdrawing your investmentfrom this fund.Investment madein this period andstill held at theend of the periodFirst paymentreceivedon this date1 Nov – 31 Jan 31 Mar1 Feb – 30 Apr 30 Jun1 May – 31 Jul 30 Sep1 Aug – 31 Oct 31 DecPlease note that your investment is priced at thenext valuation point. So, for example, to invest on31 January, we have to receive your instructions by30 January.The distribution yield as at 31 January 2015 is4.5%. The distribution yield is the amount thatwe estimate the fund will distribute over thenext twelve months as a percentage of the midmarketvalue of the fund as at the date shown. It isbased on a snapshot of the portfolio on that day.Investors may be subject to tax on distributions.The underlying yield as at 31 January 2015 is 3.5%.The underlying yield is the amount that we estimatethe fund will distribute over the next twelve monthsas a percentage of the mid-market value of thefund as at the date shown, minus the fund’s totalexpenses (as expressed by the last publishedongoing charges figure) that are taken from capital.It is based on a snapshot of the portfolio on that day.The distribution yield is higher than the underlyingyield because the fund’s expenses are chargedto capital. This has the effect of increasing thedistributions for the year and constraining thefund’s capital performance to an equivalentextent. At the time of going to print the aboveyield figures were the most recent available. Moreup to date yield figures may be available, pleasecall 0808 005 5555*.IncomeIf you hold income units, when your first payment issent to you depends on when you invest as shownbelow. If your investment is within a stocks andshares ISA the payment is made gross.15

3. Additional fund informationUK 100 Companies FundFund managementThe investment adviser to this fund is HSBC GlobalAsset Management (UK) Limited.Initial chargeThere is no initial charge, therefore no differencebetween the buying and selling price of units.Ongoing chargesThe ongoing charges that are applied to the fundare currently 0.60% per year and are made up ofthe annual management charge only (see below forfurther details).Annual management chargeThe annual management charge for the fund(based on the fund’s net asset value) is 0.60%. It iscalculated on a daily basis and deducted from theincome of the fund monthly, reducing the amountof income reinvested or paid out.Fund expensesFund expenses are not deducted from the fund,but are paid by Marks and Spencer Unit TrustManagement Limited. These expenses include theTrustee, Custodian, Auditors, Financial ConductAuthority, our fees for maintaining the register ofinvestors, together with certain other fees andexpenses (plus VAT if applicable) permitted by theregulations governing unit trust funds (these areset out in the full Prospectus for the fund).WithdrawalsThere is no charge for withdrawing your investmentfrom this fund.UK Selection PortfolioFund managementThe investment adviser to the fund is HSBC GlobalAsset Management (UK) Limited. They directlymanage a proportion of the fund and sub-delegatethe remaining portion to the following specialistfund advisers:• AXA Investment Managers UK Limited• Schroder Investment Management LimitedInitial chargeThere is no initial charge, therefore no differencebetween the buying and selling price of units.Ongoing chargesThe ongoing charges that are applied to the fundare currently 1.58% per year and are made up of theannual management charge and the fund expenses(see below for further details).Annual management chargeThe annual management charge for the fund(based on the fund’s net asset value) is 1.50%. It iscalculated on a daily basis and deducted from theincome of the fund monthly, reducing the amountof income reinvested or paid out.Fund expensesThese are estimated to be 0.08% of the fund’s netasset value. They are deducted from the incomein the fund and include the fees of the Trustee,Custodian, Auditors, Financial Conduct Authority,our fees for maintaining the register of investors,together with certain other fees and expensespermitted (plus VAT if applicable) by the regulationsgoverning unit trust funds (these are set out in thefull Prospectus for the fund).WithdrawalsThere is no charge for withdrawing your investmentfrom this fund.16For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

4. General informationInvestment advice and commissionWe believe that you will want to make up yourown mind about our products so we do notoffer investment advice, however, we can providefactual information about any of our products.If you have any doubt as to whether thisinvestment is suitable for you please contact anindependent financial adviser.Prior to 1 January 2013, if you received advice froman independent financial adviser before making aninvestment into the M&S Worldwide Managed Fundor the UK Selection Portfolio, we would have paidcommission to your adviser. For example if youinvested £1,000 in both of these funds this wouldhave been £30 (3%) for each fund. However, nocommission will be payable as from 1 January 2013.If you have invested in the M&S UK 100 CompaniesFund or High Income Fund following investmentadvice from an independent financial adviser, we willnot pay commission to your adviser.Customer documentationYou will receive a letter of acknowledgement andcontract note following lump sum investmentsinto our funds, and when you sell units held in youraccount. The contract note will give details of thetransaction including the number of units bought/sold and the price per unit.Investors will receive six-monthly statements in Mayand November each year. Unit certificates will notbe issued.Switching fundsYou can switch your investment from one of ourfunds to any of the other funds we offer at any time.You can instruct us by telephone or in writing. Wemay ask for telephone instructions to be confirmedin writing.If you instruct us to sell all, or some of the units heldin your existing fund, the units will be sold at the8am valuation point on the first working day afterthe day we receive your instructions.We will buy units for your new fund(s) at the 8amvaluation point on the first working day after the daywe sold your shares in the existing fund.This means you will be out of the market for 24 hoursduring which time the market may move up or down,resulting in a potential loss of growth and income.If you instruct to switch a specific amount of money,both the sale of units in your existing fund andthe purchase of units in the new fund(s) will becompleted at the 8am valuation point on the firstworking day after we receive your instructions.Cancelling an investmentYou only have the right to cancel an investment ifyou have received investment advice from a financialadviser. You will have 14 days from the date weopen your account to cancel your investment. If youcancel, the amount returned may be less than theamount you invested, if there has been a downwardmovement in the value of your investment from thedate of investment to the date your instruction tocancel was received.You can cancel your investment by writing to us. Youwill need to post your instructions to us within the 14day period. See page 12 for our contact details.ComplaintsIf you have a complaint please write to us at:M&S Savings and InvestmentsKings MeadowChester CH99 9UTTelephone: 0808 005 5555*If we are unable to resolve your complaint toyour satisfaction you can write to the FinancialOmbudsman at:Financial Ombudsman ServiceExchange TowerLondon E14 9SRTelephone:0800 023 4567 (free if calling from a fixed line eg landline)0300 123 9123 (free for mobile phone users who pay amonthly charge for calls starting 01 or 02)Email:complaint.info@financial-ombudsman.org.ukInternet: financial-ombudsman.org.ukA written complaints procedure is available on request.17

4. General informationCompensationIf we cannot meet our financial obligations to you,you may be entitled to compensation under theFinancial Services Compensation Scheme. Themaximum level of compensation you can receivefrom the scheme is £50,000.Details of the scheme can be obtained from theFSCS at:FSCS10th Floor, Beaufort House15 St Botolph StreetLondonEC3A 7QUTelephone helpline: 0207 741 4100or 0800 678 1100Email: enquiries@fscs.org.ukInternet: fscs.org.ukDirect Debit Guarantee• It is important that you retain this guarantee foryour own reference.• This guarantee is offered by all banks and buildingsocieties that accept instructions to pay Direct Debits.• If there are any changes to the amount, date orfrequency of your Direct Debit, Marks & SpencerFinancial Services plc/Marks and Spencer Unit TrustManagement Limited will notify you 10 workingdays in advance of your account being debitedor as otherwise agreed. If you request Marks &Spencer Financial Services plc/Marks and SpencerUnit Trust Management Limited to collect apayment, confirmation of the amount and date willbe given to you at the time of the request.• If an error is made in the payment of your DirectDebit, by Marks & Spencer Financial Services plc/Marks and Spencer Unit Trust Management Limitedor your bank or building society, you are entitledto a full and immediate refund of the amount paidfrom your bank or building society.– If you receive a refund you are not entitled to,you must pay it back when Marks & SpencerFinancial Services plc/Marks and Spencer UnitTrust Management Limited asks you to.• You can cancel a Direct Debit at any time bysimply contacting your bank or building society.Written confirmation may be required. Please alsonotify us.Client classificationAll investors are classified as retail clients.Product suitabilityIn accepting and undertaking your instructionfor this investment Marks and Spencer Unit TrustManagement Limited is not required to assess thesuitability of this product for you. This means thatthe protection offered by the Financial ConductAuthority’s rules on assessing suitability will notapply to this transaction.Conflicts of interestMarks and Spencer Unit Trust Management Limitedis part of the HSBC Group of companies. Here is asummary of the HSBC Group Conflicts of InterestPolicy:The HSBC Group is a global organisation whichprovides a wide range of financial services. As such,it, or a company with whom it has an association(HSBC), may from time-to-time have interests whichconflict with its clients’ interests or with the dutiesthat it owes to its clients. These include conflictsarising between the interests of HSBC, its associatesand employees on the one hand and the interestsof its clients on the other and also conflicts betweenclients themselves.HSBC has established procedures which aredesigned to identify and manage such conflicts.These include organisational and administrativearrangements to safeguard the interests of clients.A key element of this policy is that persons engagedin different business activities involving a conflict ofinterest must carry on those activities independentlyof one another.Where necessary, HSBC maintains arrangementswhich restrict the flow of information to certainemployees in order to protect its clients’ interestsand to prevent improper access to client information.18For help or information please call 0808 005 5555* or visit marksandspencer.com/unittrusts

HSBC may also deal as Principal for its owninvestment account and may be matchingtransactions with another client. Procedures arein place in order to protect the client’s interest inthis instance. In some cases, HSBC’s proceduresand controls may not be sufficient to ensure thata potential conflict of interest does not damage aclient’s interests. In these circumstances, HSBC mayconsider it appropriate to disclose the potentialconflict to the client and obtain the client’s formalconsent to proceed. However, HSBC may declineto act in any circumstance where there is residualrisk of damage to the interests of any client. Furtherdetails are available by calling us on 0808 005 5555*.Short term tradingInvestment in any unit trust fund should beconsidered a medium to long term investment (atleast five to ten years). You have access to yourmoney at any time.However, if we have reasonable grounds to believethat an investor is conducting short term trading forwhich this fund is not appropriate, we reserve theright to reject an instruction, or apply the unit priceprevailing at the next but one 8am valuation point,following receipt of an instruction to buy or sell units.Money held on your behalf (client money)Cash held on your behalf, and not invested in ourfunds, will be held in a client money account. Theclient money account may be held with Marks &Spencer Financial Services plc, and/or HSBC Bankplc, both of which are authorised banks in the samegroup as Marks and Spencer Unit Trust ManagementLimited, or another UK authorised bank.We won’t pay interest to you on any money held onyour behalf (client money). This arises, for example,when we make a cheque payment to you until youcash the cheque.Your money will be held in a trust account separateto any account used to hold money belonging to usin our own right.We will not be responsible for any acts or omissionsof the bank holding the cash. If the bank becomesinsolvent we will have a claim on behalf of youagainst the bank.If, however, the bank cannot repay all of its creditors,any shortfall may have to be shared pro ratabetween all investors.If, after taking reasonable steps to trace you, yourmoney remains unclaimed after a period of at leastsix years, we reserve the right to donate it to acharity of our choice.AuthorisationThe funds are authorised in the United Kingdom.TrusteeState Street Trustees Limited525 Ferry RoadEdinburghEH5 2AWAuthorised and regulated by theFinancial Conduct Authority.Fund auditorsKPMG Audit plc15 Canada SquareLondonE14 5GLGroup detailsMarks and Spencer Unit Trust Management Limitedis a wholly owned subsidiary of HSBC Bank plc.RegulatorThe funds have been authorised by the FinancialConduct Authority. They can be contacted inwriting at Financial Conduct Authority, 25 The NorthColonnade, Canary Wharf, London E14 5HS or bytelephone on 0800 111 6768.LawOur dealings with you are governed by the laws ofEngland and Wales, and subject to the non-exclusivejurisdiction of the English courts. The contractand all communications during the course of thisinvestment will be in English. We will send all noticesto you at the address given on application or anyaddress of which you later notify us.19

Please call 0808 005 5555 if you would like to receive this information in an alternative format suchas large print, Braille or audio.* Calls may be recorded. We’re available 8am-8pm Monday to Friday and 9am-5pm Saturday. Closed on Sunday, Christmas Day, Boxing Day andNew Year’s Day. Please note that opening hours may be restricted over the Christmas period and bank holidays. Please contact us for details.M&S Savings and Investments is a trading name of Marks and Spencer Unit Trust Management Limited. Registered in England No. 2253009. Registeredoffice: Kings Meadow, Chester CH99 9FB. Authorised and regulated by the Financial Conduct Authority. A wholly owned subsidiary of HSBC Bank plc.Marks & Spencer is a registered trademark of Marks and Spencer plc and is used under licence. © Marks and Spencer Unit Trust Management Limited 2015.All rights reserved. Marks and Spencer Unit Trust Management Limited is entered in the Financial Services Register under reference number 141662.Effective from 06/04/20156138.SI/1513SMFW1/SID/0315/WEB