legal & general - investments, retirement, life cover

5PORTFOLIO BOND (IPS) – FUNDS KEY FEATURES

• Overtheshortterm,thevalueoffundsinvestinginequitiescangoupanddownalot.

• Companysharepricescanalsochangedramaticallyinresponsetotheactivitiesandfinancialperformanceofindividualcompanies,aswellasbeinginfluencedbygeneralmarketandeconomicconditions.

NOTESWHAT ARE EQUITIES?• Equities(alsoknownas'shares')areashareinacompanythatallowstheownerofthosesharestoparticipateinanyfinancialsuccessachievedbythatcompany.

• Equitiescanachievegrowthintwoways:

− Throughincreasesinshareprices.Thesharepricereflectstheunderlyingvalueofthecompany.

− Throughdividends,whichareregularpaymentsmadetoshareholdersgenerallybasedonthecompany’sannualprofits.

• Investinginequitiesisconsideredbymanyinvestmentexpertstobeoneofthebestwaystoachievelong-termgrowth.

WHAT ARE INVESTMENT ASSETS?• Assetsarewhatyourfundinvestsin.

• Theassetsthatafundinvestsinwillhaveasignificantimpactontheperformanceofyourinvestment.It’simportantthatyouunderstandthedifferencesbetweenthemaintypesofassets.

• Therearefourmaintypesofassetandeachhasitsowncharacteristics:

− Equities− Fixedinterestsecurities− Commercialproperty− Cash.

• It’sgenerallyagoodideatoinvestinanumberofdifferentassetssoyoudon’trelyontheperformanceofoneindividualasset.Thisstrategy,called‘diversification’,isbasicallywhatfundsofferastheyspreadyourinvestmentacrosslotsofassets.

• Manyfundsalsoinvestinmorethanonetypeofassettocreateevenmorediversification.

• Investinginamixoffundsisanothergoodwaytospreadyourinvestment.

• Ifafundbuysabondinacompanythatperformspoorly,there’sariskthatcompanywon’tbeabletopaybacktheloanortheinterestowed.Somecompaniesoffermoreriskybondspayinghighinterestrates,knownas‘high-yield’bondswheretheriskofnon-paymentishigher.

• Thevalueofbondsisparticularlysensitivetochangesininterestrates.Asarule,thevalueismorelikelytofallwheninterestratesarerising.

• Governmentbondsgenerallycarrylessriskthancompanybondsbutasaresultoftenpaylessinterest.

NOTESWHAT ARE FIXED INTEREST SECURITIES? • Fixedinterestsecuritiesaremorecommonlyknownas‘bonds’.

• Becarefulnottoconfusefixedinterestsecuritieswiththe‘PortfolioBond’.Althoughbotharecalledbonds,they’reverydifferent.

• Afixedinterestsecurityisessentiallyaloan,usuallytoacompany,orsometimesagovernment.

• Thecompanyorgovernmentpaysregularinterestontheloanandpaysbacktheoriginalcapitalinfullatasetdateinthefuture.

• Yourreturnfromafundinvestinginfixedinterestsecuritiescomesfromtheinterestthecompanyorgovernmentpaysandthemarketvalueofthesecurities.

• Thevalueofafundinvestinginfixedinterestsecuritiesdoesgoupanddown.Ittendstogoupanddownlessthanthevalueoffundsinvestinginequities,althoughthepotentialreturnsareoftenlower.


• Aspropertyvaluationsarebasedonavaluer’sopinionratherthanfact,theymayberevisedupordownfromtimetotime.Thiscanaffectthevalueofafundinvestedincommercialproperty.

• Commercialpropertiescansometimesbedifficulttobuyandsellquickly.Itmaybenecessaryforthefundmanagertopostponemeetingcustomerrequeststowithdrawmoneyfromapropertyfunduntiltheycansellsomeofthebuildingsthefundinvestsin.

NOTESWHAT IS COMMERCIAL PROPERTY? • Aninvestmentincommercialpropertyusuallymeansthatyou’rebuyingashareintheownershipofanumberofbuildings.

• Thesebuildingsmightbeofficeblocks,shoppingunits,retailwarehouses,industrialunitsandleisurecentres.

• Commercialpropertyinvestmentscanprovidegrowthintwoways:

− Throughrisesinthevalueoftheproperty.

− Throughrentpaidbythetenantsofthebuildings.

WHAT IS A CASH INVESTMENT?• Somefundskeepaproportionofyourmoneyincash.

• Cashisusefulbecauseitaddsflexibilitytoyourassetmixandaidsstability.

• Thegrowthpotentialforcashislow,soifyourfunddoesincludeacashelement,ittendstoaccountforonlyasmallpercentageofthetotalfund.

WHAT ARE DERIVATIVES?• Derivativesarenotaseparateassetclassbutarecontractsusuallygivingacommitmentorrighttobuyorsellassetsonspecifiedconditions,forexampleonasetdateinthefutureandatasetprice.

• Thevalueofaderivativecontractcanvary.Somederivativescanhavelargechangesintheirvalueoverashortperiodoftime,whileothersmaybemorestable.Thevalueofsometypesofderivativecanevenmoveintheoppositedirectiontoaparticularmarket.

• Derivativescangenerallybeusedwiththeaimofenhancingtheoverallinvestmentreturnsofafundbytakingonanincreasedrisk,ortheycanbeusedwiththeaimofreducingtheamountofriskafundisexposedto.

ABOUT SPECIALIST INVESTMENT FUNDS • Inadditiontotherisksandcharacteristicsoftheindividualassettypes,specialistinvestmentshaveotherfeaturesthatareuniquetowheretheyinvest.

− Specialistfundsusuallyinvestinaparticularmarket,countryorregion.

− Specialistfundsallowyoutoexploitthecharacteristicsofaparticulartypeofinvestment.

− Theytendtoaimforhighperformancecomparedwithmorebalancedfunds.

ABOUT OVERSEAS INVESTMENTS• OverseasinvestmentsallowyoutotakeadvantageofthegrowthpotentialofmarketsoutsidetheUK.

• Currencychangescanaffectthevalueofoverseasinvestments.

• Cashoffersthelowestriskofallassettypesbutalsothelowestpotentialreturns.

NOTES

• Specialistfundsarelikelytobemoreriskythanthoseholdingaverywidespreadofassets.

NOTES

• Thevalueofderivativesmayvarymorethananinvestmentinshares,fixedinterestsecuritiesorproperty.

• Ifoneofthepartiesinaderivativecontractsuffersfinancialdifficulty,theymaynotbeabletomakesomeofthepaymentstheyowe.Thiscanaffectthevalueofafundinvestedinderivatives.

NOTES

• BecausethevalueoffundsholdingoverseasinvestmentsisconvertedfromlocalcurrencyintoBritishpounds(sterling),thevaluecanfallifthepoundstrengthensagainstthelocalcurrency.

NOTES


Fund code

• Thecodeweusetoidentifythefundforadministrationpurposes.Youneedtousethiscodewhencompletingthe Application Form.

Fund specific risks

• Inadditiontothegeneralrisksofinvesting,asdescribedinyourKey Features, each fund carries some risks specifictothetypeofassetsitinvestsin.

• Wemakeregularassessmentsofallthefundsweofferandthendecidewhichrisksapplytoeachfund.Ourassessmenttakesaccountof:

− the fund’s aim,

− the assets the fund invests in, and

− the fund manager’s own opinion of the risks that apply to their fund.

Tofindoutwhatthefundspecificrisknumbersappliedtoeachfundmean,pleasegototheFund specific risk definitions section starting on page 9.

Valuation spread (internal funds only)

• Thisisthedifferencebetweenthevalueoftheunitscalculatedassumingthatmoremoneyisgoingintothefundthangoingoutandthevaluebasedonmoremoneygoingoutofthefundthangoingin.Thesefiguresarebasedon the latest information we have available on 28 February 2019. The valuation spread may change from time to time. We can provide you with the spread applying to a fund at any time on request.

Underlying fund type (external funds only)

• ThistellsyouifthefundisinvestedinaunittrustorasubfundofanOEIC,asexplainedintheWhat is an authorised fund? section on page 4.

• The underlying fund type is not included for the funds we manage as they’re not directly invested in unit trusts or OEICs.

PUTTING THE FUND SPECIFIC RISKS INTO CONTEXT • Somefundshavemanyfundspecificrisks.Thisdoesn’tnecessarilymeanthatinvestinginthatfundisriskierthanchoosingonewithlessfundspecificrisks.Afundoftenhasmorefundspecificrisksbecauseitinvestsin a wider variety of assets.

• What’simportantisthepercentageofthefundthat’sexposedtoeachrisk.Asignificantexposuretooneriskcan lead to a fund rising and falling in value more than one with a low exposure to several risks.

FOR EXAMPLE:• FundAinvests20%inoverseasequities,30%inUKequitiesand50%infixedinterestsecurities.Ithassixfundspecificrisks.

• FundBinvests100%inoverseasequities.Itonlyhasthreefundspecificrisks.

FundBhasfewerfundspecificrisksbutbecauseallofyourinvestmentisexposed to the equities and exchange rate risks, it’s likely to be a higher risk fund than Fund A, where your investment is divided between a spread of risks.

• Investinginafundwithamixofassetscanreducetheimpactofeachfundspecificrisk.Alternatively,youcancreate an investment portfolio that invests in a mix of funds.

Your adviser will talk you through your fund selection.


22. Market sectorMostofthefundinvestsincompaniesfromaparticularmarket sector. Investing like this can be riskier than investing across many market sectors. This is because the value of the fund can go up and down in value more often and by larger amounts than funds that are spread more widely, especially in the short term.

23. Commercial propertyPropertycanbedifficulttobuyorsell.Thiscouldmean:• Cashbuildsupwaitingtobeinvested,sothefund

will underperform when property returns are greater than the interest earned, and/or

• Propertymayhavetobesoldforlessthan expected.

If an exceptional amount of withdrawals are requested, the fund manager may be forced to sell properties quickly. This could mean that properties are sold for less than expected, which would reduce the value of your investment.

Ifthesizeofthefundfallssignificantly,thefundmayhave to invest in fewer properties and the value of an individualpropertycouldhaveamajorimpactontheoverall performance of the fund.

Rental growth is not guaranteed and unpaid rent could affect the performance of your investment.

The fund may undertake development of properties wherethefullbenefitofanyincreasesinthevalueof the property or the income earned from it are not received until completion. While any development is taking place, the fund is at risk from delays in receivingthebenefitofanyimprovements,andadditional costs. Developments may not achieve the predicted increase in the value of the property or rent.

The value of property is generally a matter of valuer’s opinion rather than fact and the true value of a property may not be recognised until the property is sold.

24. DepositThe fund has money on deposit with companies suchasbanksorotherfinancialinstitutions.Ifanyofthesesufferfinancialdifficulty,theymaybeunabletopay back some or all of the interest, original amount invested or other payments they owe. If this happens the value of your fund may fall.

25. Unregulated schemesThis fund can invest in unregulated schemes. Each unregulated scheme can have a higher risk than an authorised scheme. This could lead to an increased risk to the value of your investment.

27. Socially responsible or religious investmentsThe standards used for this fund mean that it cannot invest in some companies’ shares, corporate bonds or in certain market sectors. For example tobacco or mining. Becausethisfundlimitsthecompaniesitmayinvestin, it may be riskier than funds that don’t have such restrictions.

28. Money marketThe fund invests in money market securities which may be issued by governments, companies, banks andotherfinancialinstitutions.Ifanyoftheseissuerssufferfinancialdifficultytheymaybeunabletopayback some or all of the interest, the original amount invested or other payments they owe. The value of money market securities may fall due to changes in interest rates, inflation, creditworthiness, wider credit events or extensions to the anticipated term of investments. If this happens the value of your fund may fall.

29. Delayed repaymentThis fund is able to delay paying out, which may mean that you have to wait to get your money. A delay may happen when market conditions mean it is difficultforthefundmanagertocashininvestmentsto pay out to investors.

For example, a fund with investments in commercial propertiesmayfindtheymaytaketimetosell.Whilstwaiting to complete on the sale of properties, the fund manager may suspend making payments to investors who want to cash in.

The fund can only delay paying out if it is in the interests of all investors.

30. Few bond issuersThefundinvestsalmostexclusivelyinfixedinterestbonds from a single or small number of issuers, such as companies or governments. If any of these issuers experiencefinancialdifficulty,theymaybeunableto pay back some or all of the interest, the original investment or other payments that they owe. If this happens, the value of your fund may fall.

31. LiquidityThis fund has investments that, rather than being traded on a stock exchange, are traded through agents, brokers or investment banks matching buyers and sellers. This makes the investments less easy to buy and sell than those that are traded on an exchange and on any particular day there may not be a buyer or a seller for the investments.

In times of market uncertainty or if an exceptional amount of withdrawals are requested it may become less easy for your fund to sell investments. If this happens, the value of your fund may fall and in extreme circumstances this may also force a delay in buying and selling your investment in the fund, which may mean you have to wait for your money to be invested or returned.

The fund can only delay paying out if it is in the interests of all investors.

32. Private equityThis fund invests in shares of companies that are not listedonastockexchange,sotheycanbedifficulttobuy or sell. This could mean the shares may have to be sold for less than expected, which would reduce the value of your investment.

The value of private company shares is generally a matter of valuer’s opinion rather than fact.

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33. Exchange Traded FundsExchange Traded Funds generally try to match the performance of a share index, such as the FTSE 100, or to track the price of commodities such as oil or gold. Exchange Traded Funds can use a number of different techniques to achieve their goals (including the use of derivatives) and as a consequence can be more complex than traditional funds. The value of this investment may go up and down more often and by larger amounts, particularly in the short term.

34. Targeted Absolute Return FundsThe fund is a Targeted Absolute Return Fund. This type of fund tries to increase the value of your investment over a period of time, in both rising and falling markets.

There is no guarantee of returns. The fund’s value may go down as well as up. You may not get back the money you invested.

Targeted Absolute Return Funds use a range of different types of investment strategies, some of which can be high risk, and may use derivatives. As a consequence these funds can be more complex than traditional funds. It is possible that the value of these funds could go down when the market is rising, or may not rise as quickly. Each Targeted Absolute ReturnFundisdesignedtoproduceaspecificoutcome, so care should be taken when comparing them with other funds.

35. Stock lendingThe fund manager may lend stock to other parties and it is usual for the borrower to provide collateral. If the borrower fails to return the borrowed stock, the collateral may not be enough to cover the value of the stock, resulting in a reduction in the fund value.

36. Inflation linked bondsThe fund invests in inflation-linked bonds, which are particularly sensitive to changes in inflation rates. Their values are likely to fall when inflation rates fall.

37. Emerging markets currenciesThe fund holds investments valued in currencies of developing countries. The exchange rate between thesecurrenciesandsterling(Britishpounds)mayexperience greater fluctuations than might be the case with currencies of developed countries. If the value of these currencies falls compared to sterling, this may mean the value of your investment and the income paid to you will go down.


The following pages provide a brief introduction to each investment management company, the individual aim of each fund, the annual fund charge,thefundcode,thefundspecificrisksapplicabletothatfund,thevaluationspreadforfundsmanagedbyLegal&Generalandtheunderlyingfund type for funds managed by investment management companies other thanLegal&General.

All information provided is as accurate and current as we can make it. However, we can’t guarantee that the information for any individual fund hasn’t changed since September 2019.

Youcancross-referencethefundspecificrisknumberswiththeexplanations in the Fundspecificriskdefinitions section which starts on page 9.

FUND INFORMATION.

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LEGAL & GENERAL CASH FUND

Fund aim: To maintain capital and to provide a return in line with money market rates. The fund will generally invest inshorttermdeposits,certificatesofdeposit,governmentbonds(predominantlyUK)issuedinpoundssterlingandRepos. Repos are an agreement between two parties to sell or buy an asset and later reverse the trade at an agreed date and price. If the interest earned by the fund’s assets is lower than the fund’s charges and any additional expenses, the unit price will fall.

Annual fund charge: 1.32%

Fund code:DABU Fund specific risks: 14, 15, 17, 24, 28, 29 Valuation spread: 0.00%

LEGAL & GENERAL ALL STOCKS GILT INDEX FUND

Fund aim: TotrackthereturnoftheFTSEActuariesUKConventionalGiltsAllStocksIndex(afteradjustmentforchargesandtax)byinvestinginUKGovernmentSecurities.Inordertoaccuratelytrackthisindexthefundwillinvestin a representative sample of holdings.


Fund code:DBYU Fund specific risks: 14, 15, 17, 20, 28, 29, 30, 31 Valuation spread: 0.10%

LEGAL & GENERAL’S OWN FUNDS.

LEGAL & GENERAL GROUPTheLegal&GeneralGroup,establishedin1836,isoneoftheUK’sleadingfinancialservicescompanies.Asat 30 June 2018, the total value of assets across the group was £984.8 billion, including derivative assets. We also had over9.5millioncustomersintheUKforourlifeassurance,pensions,investmentsandgeneralinsuranceplans.

LEGAL & GENERAL ALL STOCKS INDEX LINKED GILT INDEX FUND

Fund aim: TotrackthereturnoftheFTSEActuariesUKIndex-LinkedGiltsAllStocksIndex(afteradjustmentforchargesandtax)byinvestinginUKIndex-LinkedGovernmentSecurities.Inordertoaccuratelytrackthisindexthefund will invest in a representative sample of holdings.


Fund code: DXIU Fund specific risks: 14, 15, 17, 20, 28, 29, 30, 31, 36 Valuation spread: 0.12%

LEGAL & GENERAL DISTRIBUTION FUND

Natural income option available

Fund aim: To generate an income that is sustainable over the long term by investing in a broad mix of assets, including companyshares,fixedinterestsecurities,commercialpropertyandotherinvestments.Thefundalsooffersthepotential for capital growth over the long term.


Fund code:DBAU Fund specific risks: 12, 13, 14, 15, 16, 17, 23, 29 Valuation spread: 0.77% (DAZU if natural income is required)


LEGAL & GENERAL MANAGED INCOME FUND

Fund aim: Toprovideahighincomefromamanagedportfoliooffixedinterestsecurities,includinggovernmentandcorporate issuers. The fund can invest up to 20% in high yield bonds and investments may be made in stocks traded on overseas markets.


Fund code: 0035 Fund specific risks: 12, 14, 15, 16, 17, 29, 31 Valuation spread: 0.70%

LEGAL & GENERAL DISTRIBUTION (GROWTH) FUND


Fund aim: To maximise returns from a well balanced portfolio over the long term. It can also provide some potential for income.Itinvestsinabroadmixofshares(mainlyUK),fixedinterestsecurities,UKcommercialpropertyandcash.


Fund code: DDEU Fund specific risks: 12, 13, 14, 15, 16, 17, 23, 29, 31 Valuation spread: 0.67% (DDFU if natural income is required)

LEGAL & GENERAL ETHICAL FUND

Fund aim:TotrackthereturnoftheFTSE350Index(afteradjustmentforchargesandtax),notincludingcompanieswhodon’tcomplywitharangeofethicalandenvironmentalguidelines.Inordertoaccuratelytrackthismodifiedindex the fund will invest in a representative sample of holdings.


Fund code:DBPU Fund specific risks: 13, 17, 27, 29 Valuation spread: 0.62%

LEGAL & GENERAL HIGH INCOME FUND


Fund aim:Toprovideahighincomefromaportfolioofsub-investmentgradefixedinterestsecurities,issuedbycompaniesintheUKandoverseas.


Fund code: DIDU Fund specific risks: 12, 14, 15, 16, 17, 29, 31 Valuation spread: 1.29% (DMRUifnaturalincomeisrequired)

LEGAL & GENERAL INTERNATIONAL INDEX FUND

Fund aim:TotrackthereturnoftheFTSEWorldex-UKIndex(afteradjustmentforchargesandtax)byinvestinginglobal shares. In order to accurately track this index the fund will invest in a representative sample of holdings.


Fund code: DXJU Fund specific risks: 12, 13, 17, 29 Valuation spread: 0.24%

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LEGAL & GENERAL MIXED INVESTMENT 20–60% FUND

Fund aim:Toprovidelong-termgrowthofbothcapitalandincome.Thefundwillinvestinshares,fixedinterestsecuritiesandotherassetsincludingthosegivingindirectexposuretocommoditiesandrealproperty.Between20%and 60% of the fund will be invested in shares.


Fund code: DYEU Fund specific risks: 12, 13 ,14, 15, 16, 17, 21, 29, 31, 33, 37 Valuation spread: 0.44%


Fund aim: Todeliverlong-termcapitalgrowthwhichexceedstheBankofEngland’sbaseinterestrateassetbytheMonetaryPolicyCommitteeorsuccessorbodies.


Fund code: DPUU Fund specific risks: 12, 13, 14, 15, 16, 17, 21, 29, 31, 33, 37 Valuation spread: 0.43%


Fund aim: To provide long-term growth of both capital and income. The fund will invest between 40-85% in a broad rangeofUKandoverseascompanies’shareswiththebalancepredominantlyinfixedinterestsecurities.


Fund code: DPSU Fund specific risks: 12, 13, 14, 15, 16, 17, 21, 29, 31, 33, 37 Valuation spread: 0.47%

LEGAL & GENERAL PROPERTY FUND


Fund aim: Tomaximisethereturnfromaportfoliooffirstclassfreeholdandleaseholdinterestsincommercialandindustrialproperty.Thisincludesindustrialwarehousebuildings,shoppingunitsandofficeblocks.Thefundwillalsoinvestinindirectpropertyvehiclestodiversifytheportfoliofurtherandmanageliquiditylevelsefficiently.


Fund code: DAEU Fund specific risks: 23, 29, 31 Valuation spread: 1.13% (DCXU if natural income is required)

LEGAL & GENERAL STERLING CORPORATE BOND INDEX FUND

Fund aim: TotrackthereturnoftheiBoxxSterlingNon-Giltsex-BBBIndex(afteradjustmentforchargesandtax)byinvestinginUKcorporatebonds.Inordertoaccuratelytrackthisindexthefundwillinvestinarepresentativesample of holdings.


Fund code: DXKU Fund specific risks: 12, 14, 15, 16, 17, 29, 31 Valuation spread: 0.61%

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FUND MANAGERS OTHER THAN LEGAL & GENERAL.

BLACKROCKBlackRockisapremierproviderofglobalinvestmentmanagementservices.Asof31March2019,BlackRockmanaged$6.52trillionacrossequity,fixedincome,alternatives,multi-asset,andcashmanagementstrategiesforinstitutionalandretailclients.ThroughBlackRockSolutions®(“BRS”),thefirmprovidesriskmanagementandadvisory services that combine capital markets expertise with internally-developed systems and technology.

LEGAL & GENERAL BLACKROCK UK SPECIAL SITUATIONS FUND

Fund aim: To achieve long-term capital growth for investors. The fund invests primarily in the shares of companies incorporatedorlistedintheUKandwillnormallyhaveanemphasisonsmallormedium-sizedcompanies.Thefundmay also invest in collective investment schemes. Small and medium-sized companies are those whose market capitalisation is lower than that of companies in the FTSE 100 Index at the time of the fund’s investment.


Fund code: 0181 Fund specific risks: 13, 19, 29, 35 Underlying fund type: Unit trust

ABERDEEN STANDARD INVESTMENTSStandard Life Aberdeen plc is one of the world’s largest investment companies, created in 2017 from the merger ofStandardLifeplcandAberdeenAssetManagementPLC.OperatingunderthebrandAberdeenStandardInvestments, the investment arm manages £505.1 billion of assets as at 31 December 2018, making it the largest activemanagerintheUKandoneofthelargestinEurope.Ithasasignificantglobalpresenceandthescaleandexpertise to help clients meet their investment goals. As a leading global asset manager, Aberdeen Standard Investments is dedicated to creating long-term value for their clients. The investment needs of their clients are at the heart of what they do. They offer a comprehensive range of investment solutions, as well as the very highest level of service and support.

LEGAL & GENERAL ASI GLOBAL ABSOLUTE RETURN STRATEGIES FUND

You should read the Absolute Return Funds Guidebeforeinvestinginthisfund–acopyisavailablefromyouradviser.Ifyoudon’tunderstand any point, please ask for further information.

Fund aim: To provide positive investment returns in all market conditions over the medium to long term. The fund is actively managed, with a wide investment remit to target a level of return over rolling three-year periods equivalent to cashplusfivepercentperyear,grossoffees.Itexploitsmarketinefficienciesthroughactiveallocationtoadiverserangeof market positions. The fund uses a combination of traditional assets (such as equities and bonds) and investment strategiesbasedonadvancedderivativetechniques,resultinginahighly-diversifiedportfolio.Thefundcantakelongand short positions in markets, securities and groups of securities through derivative contracts. The value of investments withinthefundcanfallaswellasriseandisnotguaranteed–youmaygetbacklessthanyoupayin.Thefundmayusederivativesforthepurposeofefficientportfoliomanagementandtomeetitsinvestmentobjective.Thesterlingvalueofoverseas assets held in the fund may rise and fall as a result of exchange rate fluctuations.


Fund code: 0645 Fund specific risks: 12, 17, 18, 29, 34 Underlying fund type: Unit trust


LEGAL & GENERAL THREADNEEDLE UK EQUITY INCOME FUND

Fund aim: To provide income with the potential to grow the amount you invested. The fund invests at least two-thirdsofitsassetsinsharesofUKcompanies.Thefundmayalsoinvestinassetclassesandinstrumentsdifferent from those stated above.


Fund code: 0729 Fund specific risks: 13, 29 Underlying fund type: OEIC

COLUMBIA THREADNEEDLE INVESTMENTSColumbia Threadneedle Investments is a global asset management group that provides a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes. They invest on behalf of individuals, pension funds and corporations. They strive to deliver the investment outcomes that their clients expect when they entrust them with their money, through an investment approach that is active, client-focused and performance driven. With over 450 investment professionals based in Europe, North America and Asia, they manage £362/USD 485/EUR 410 billion (as at 30 September 2017) of assets across developed andemergingmarketequities,fixedincome,assetallocationsolutionsandalternatives,includingUKproperty,and have a presence in 19 countries. Columbia Threadneedle Investments is the brand name of the Columbia and Threadneedlegroupofcompanies.ItisownedbyAmeripriseFinancial,Inc.(NYSE:AMP),aleadingUS-basedfinancialservicesprovider.AspartofAmeriprise,theyaresupportedbyalargeandwell-capitaliseddiversifiedfinancialservicesfirm.

LEGAL & GENERAL THREADNEEDLE GLOBAL SELECT FUND

Fund aim: To grow the amount invested. The fund invests at least two-thirds of its assets in shares of companies worldwide. The fund’s investment approach means it will typically hold a small number of investments compared with other funds. The fund may also invest in asset classes and instruments different from those stated.


Fund code: 0003 Fund specific risks: 12, 13, 21, 29 Underlying fund type: OEIC


FIL INVESTMENT SERVICES (UK) LIMITEDFidelity International is an asset manager serving retail, wholesale and institutional investors in 25 countries globally outside North America. With $308.7 billion assets under management (as at 30 September 2018), they are one of the world’s largest providers of active investment strategies and retirement solutions.

LEGAL & GENERAL FIDELITY STRATEGIC BOND FUND

Fund aim: To achieve a relatively high income with the possibility of capital growth. The fund will obtain exposure primarilytosterling-denominated(orhedgedbacktosterling)fixedinterestsecurities.Thefundmayinvestdirectlyinfixedinterestsecuritiesormayachieveexposureindirectlythroughtheuseofderivatives.Thefundmayalsoinvest in other transferable securities, money market instruments, collective investment schemes, cash and near cashanddeposits.Derivativesmaybeusedforefficientportfoliomanagementandinvestmentpurposesandmayinclude (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. The fund may also takepositionswhichenableittobenefitfromfallingassetprices.


Fund code: 0694 Fund specific risks: 14, 15, 16, 17, 18, 21, 29, 31

LEGAL & GENERAL INVESTEC CAUTIOUS MANAGED FUND

Fund aim: To provide income and long-term capital growth. The fund seeks to invest conservatively around the world in a diverse range of shares of companies (up to 60% of the fund’s value at any time) and bonds (contracts to repay borrowedmoneywhichtypicallypayinterestatfixedtimes).Thefundmayinvestinotherassetssuchascash,moneymarket instruments (tradable securities where money can be invested for short periods), other funds (which may be managedbytheInvestmentManager,othercompaniesinthesamegroupastheInvestmentManagerorathirdparty)andderivatives(financialcontractswhosevalueislinkedtothepriceofanunderlyingasset).Derivativesmaybeusedforinvestmentpurposes(forexample,inordertoachievethefund’sinvestmentobjectives)orforefficientportfoliomanagement purposes, for example, with the aim of either managing the fund risks or reducing the costs of managing the fund.


Fund code: 0017 Fund specific risks: 13, 14, 15, 17, 18, 29 Underlying fund type: OEIC

INVESTEC FUND MANAGERS LTDInvestecAssetManagementwasfoundedinSouthAfricain1991,wheretheywereasmallstart-upassetmanagerofferingdomesticstrategiesinanemergingmarket.Overtwenty-fiveyearsofgrowthlaterthey’reaninternationalbusiness managing approximately $133.7 billion (as at 31 December 2018) for clients based all over the world. They provide investment products and services to institutions, advisory clients and individuals. Their clients include pensionfunds,centralbanks,sovereignwealthfunds,insurers,foundations,financialadvisersandindividualinvestors.

Underlying fund type: OEIC


LEGAL & GENERAL JANUS HENDERSON PREFERENCE AND BOND FUND

Fund aim: To provide a return by investing primarily in preference shares, government securities, corporate bonds, Eurobonds and other bonds. Where the fund invests in currencies other than sterling, the fund will always be hedged at least 80% to sterling in aggregate. The fund may invest in other transferable securities, money market instruments, derivatives and forward transactions, deposits and units in collective investment schemes.


Fund code: 0013 Fund specific risks: 12, 14, 15, 16, 17, 18, 29, 35 Underlying fund type: OEIC

JANUS HENDERSON INVESTORS JanusHendersonInvestorsareproudtoofferahighlydiversifiedrangeofproducts,harnessingtheintellectualcapitalofsomeoftheindustry’smostinnovativeandformativethinkers.Theirexpertiseencompassesthemajorasset classes, they have investment teams situated around the world, and they serve individual and institutional investorsglobally.Theyhave£274.2billioninassetsundermanagementasat31March2019,morethan2000employeesandofficesin27citiesworldwide.HeadquarteredinLondon,theyareanindependentassetmanagerthat is dual-listed on the New York Stock Exchange and the Australian Securities Exchange.

LEGAL & GENERAL KAMES ETHICAL EQUITY FUND

Fund aim: To maximise total return by investment in equities and equity-type securities in companies based in the UK,principallyconductingbusinessintheUKorlistedintheUKstockmarketwhichmeetsthefund’spredefined ethical criteria.



LEGAL & GENERAL KAMES HIGH YIELD BOND FUND

Fund aim: To maximise total return (income plus capital) by investing in a portfolio of predominately high-yield bonds, selected investment grade bonds and cash. The fund may hold sterling and other currency-denominated bonds hedged back to sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions.



KAMES CAPITALKamesCapitalisaUK-basedinvestmentmanagementbusiness.FromEdinburgh,LondonandTheHaguetheir86investmentprofessionalsmanage£37billionasat31March2019onbehalfofUKandinternationalclients,includingpensionfunds,financialinstitutions,charities,wealthmanagers,familyofficesandindividuals.Theyhavecapabilitiesinfixedincome,equities,propertyandmulti-assetinvestingandinvesttomeetarangeofclientobjectives,includinggrowth,income,totalreturnandabsolutereturn.Theyarealsoaleaderinsustainableinvesting.KamesCapitalispartofAegonAssetManagement,aninternationalgroupofinvestmentmanagementbusinessesownedbyAegonNV,oneoftheworld’sleadingprovidersoffinancialservices.


LAZARD ASSET MANAGEMENT LIMITEDLazardAssetManagementhasacompanyhistorydatingbackto1848andhas£151.4billionundermanagementasat 31 December 2018.

LEGAL & GENERAL LAZARD EMERGING MARKETS FUND

Fund aim: Toachievelong-termcapitalgrowthbyinvestingprimarilyincompanieslocatedin,ordoingsignificantbusiness in, emerging market countries.


Fund code: 0554 Fund specific risks: 12, 13, 21, 29, 37 Underlying fund type: OEIC

M&G SECURITIES LTDM&Gisaleadinginternationalassetmanager,knownforitslong-termandconviction-ledapproachtoinvesting.They have been an active manager of investments for individual and institutional clients for over 85 years. Today theymanageassetsinexcessof£277.9billion(asat30September2018)inequities,multi-asset,fixedincome,realestate and cash for clients across Europe, Asia and the Americas.

LEGAL & GENERAL M&G GLOBAL DIVIDEND FUND

Fund aim: Toincreasetheincomestreameveryyear;toprovideadividendyieldabovethatavailablefromtheMSCIAllCountryWorldIndexoveranyfive-yearperiod;andtoprovidecombinedincomeandcapitalgrowththatishigherthanthatoftheindexoveranyfive-yearperiod.Atleast70%ofthefundisinvestedinthesharesofcompaniesfromanywhere in the world. The fund manager focuses on companies with the potential to grow their dividends over the long term and invests across a wide range of countries, sectors and company sizes. The fund manager selects stocks with different sources of dividend growth to build a fund that has the potential to cope in a variety of market conditions.



LEGAL & GENERAL M&G GLOBAL HIGH YIELD BOND FUND

Fund aim: To provide income and capital growth by investing at least 80% of the portfolio in bonds issued by companies with a low credit rating, which typically pay higher levels of interest to compensate investors for the greater riskofdefault.Thebondsmaybedenominatedinsterling,Europeancurrenciesandothermajorglobalcurrencies.Thefund also invests in bonds issued by governments (usually of developed countries) and investment grade corporate bonds. Asset exposure is gained through physical holdings and the use of derivatives.




LEGAL & GENERAL MERIAN UK ALPHA FUND

Fund aim: TomaximisecapitalgrowththroughinvestmentinaportfolioofpredominantlyUKequities.


Fund code: 0725 Fund specific risks: 13, 29 Underlying fund type: Unit trust

MERIAN INVESTMENT MANAGEMENT LIMITEDMerianGlobalInvestorsisaleading,independent,globalassetmanagementfirm.Whiletheirnamemaysuggestthey are a relative newcomer, their roots in fact go back many years. The company as it is now known was formed inJune2018whenitsmanagementteam,togetherwithfundsoperatedbytheglobalgrowthprivateequityfirm,TAAssociates,acquiredthe‘single-strategy’investmentcapabilitiesofOldMutualGlobalInvestors.OldMutualGlobalInvestors,wasformedbythemergerofSkandiaInvestmentGroupandOldMutualAssetManagers(UK)Limitedin2012.Asanindependentfirm,theyarecommittedtocontinuingtobuildasuccessful,specialisedassetmanagement business. Central to the future of their business is a belief that their clients appreciate the value of active investment management when it delivers what they reasonably expect. Their strategy is to seek to attract andretaintalentedinvestmentprofessionals,whoareexpertsintheirparticularfields,andtoprovidethemwiththe operational, risk management and distribution environment and support they need in order to thrive, yet withoutencumberingthemwithablunt‘houseview’imposedbyachiefinvestmentofficer.MerianInvestmentManagementLimited(MIML)istheAuthorisedCorporatedirectoroftheMerianGlobalInvestorssingle-strategyfunds.MIMLandMGIUKareauthorisedandregulatedintheUnitedKingdombytheFCAandarepartoftheMGIgroup of companies.

NEWTON (BNY MELLON FUND MANAGERS LIMITED)BNYMellonInvestmentManagement’sgoalistobuildandmanageinvestmentsstrategiesthatmeetthe ever-changingneedsoftheirclients.BNYMellonInvestmentManagement’smodeloffersthebestofbothworlds:specialistexpertisefromtheirforward-thinkingeightinvestmentfirms,offeringsolutionsacrosseverymajorassetclass,backedbythestrength,scaleandprovenfinancialstewardshipofBNYMellon.TheyhaveUSD1.8trillionassetsundermanagement,eightinvestmentfirms,andaretheseventhlargestAssetManager(asat31March2019).BNYMellonInvestmentManagementprovidesarobustcorporatefoundation,togetherwithworldwideresourcesandadministrativesupportthatallowstheirinvestmentfirmsthefreedomtoconcentrateonwhattheydobest-deliverspecialistandfocusedinvestmentstoclients.Frommainstreamequitiestoprivatedebtmarkets;alternativestotheworldoffixedincome–eachoftheirinvestmentfirmshasitsownuniqueinvestmentphilosophy,proprietaryprocessandisarecognisedleaderinitsfield.Theirstructureencouragesanentrepreneurial,focusedapproachtoinvestment.Thiscreatesanenvironmentinwhicheachfirmcanperformandbuildonitsindividualexperienceandstrengthsinthedevelopmentofnewproducts.BNYMellonInvestmentManagementputsclientsatthecentreofeverythingtheydo,offeringawiderangeofstrategiesdesignedtomeetinvestors’varyingobjectives.Theirbestof both worlds approach - specialisation wedded to scale - provides their clients with access to a comprehensive rangeofinvestmentcapabilities,coveringeverymajorglobalassetclass.BNYMellonInvestmentManagementpartner with clients to deliver bespoke investment and wealth management strategies and solutions to meet their individualneeds.Drawingontheirinvestmentfirms’expertiseandinvestmentinsights,theycollaboratewithclientsto tailor their best ideas and resources to meet their goals. They translate creativity, independence, insight, and trust into solutions and opportunities. With extensive experience in anticipating and responding to the investment andfinancialneedsoftheworld’sgovernments,pensionplansponsors,corporations,foundations,endowments,advisers,intermediaries,individualsandfamilies,andfamilyoffices,BNYMellonInvestmentManagementisseenbyitsclientsasnavigator,curator–asafepairofhands.

LEGAL & GENERAL BNY MELLON GLOBAL INCOME FUND

Fund aim: To generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities.


Fund code: 0507 Fund specific risks: 12, 13, 14, 15, 18, 19, 21, 29, 35 Underlying fund type: OEIC

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LEGAL & GENERAL SCHRODER UK MID 250 FUND

Fund aim: To provide long-term capital growth by investing in equity and equity related securities of companies listedintheFTSE250Index.Thefundinvestsatleast80%ofitsassetsinequityandequityrelatedsecuritiesofUKcompanieslistedintheFTSE250Ex-InvestmentCompaniesIndex.TheInvestmentManagerbelievesthattheseinvestmentscanpotentiallyofferfasterratesofprofitanddividendgrowthandhigherlong-termreturnsthantheirlarger counterparts. The fund may also invest in former components of, or expected entrants into, that index if the InvestmentManagerbelievesitmaybeadvantageoustodoso.Thefundmayalsoinvestincollectiveinvestmentschemes, warrants and money market instruments, and hold cash. The fund may use derivatives with the aim of reducingriskormanagingthefundmoreefficiently.


Fund code: 0032 Fund specific risks: 13, 19, 29 Underlying fund type: Unit trust

SCHRODER INVESTMENT MANAGEMENT LIMITEDAt Schroders, asset management is their business and their goals are completely aligned with those of their clients-thecreationoflong-termvaluetoassisttheminmeetingtheirfuturefinancialrequirements.Theyhaveresponsibilityfor£421.4billion(EUR469.5billion/USD536.7billion)asat1March2019onbehalfofinstitutionalandretailinvestors,financialinstitutionsandhighnetworthclientsfromaroundtheworld,investedacrossequities,fixedincome,multi-asset,privateassetsandalternatives.Theyemployover4,800talentedpeopleworldwideoperatingfrom30differentcountriesacrossEurope,theAmericas,AsiaandtheMiddleEast,closetothemarketsinwhich they invest and close to their clients. Schroders has developed under stable ownership for over 200 years and long-term thinking governs their approach to investing, building client relationships and growing their business.

LEGAL & GENERAL BNY MELLON REAL RETURN FUND

You should read the Absolute Return Funds Guidebeforeinvestinginthisfund–acopyisavailablefromyouradviser.Ifyoudon’tunderstand any point, please ask for further information.

Fund aim: ToachievesignificantrealratesofreturninsterlingtermspredominantlyfromaportfolioofUKandinternationalsecurities.Thefundismanagedtoseekaminimumreturnofcash(1monthGBPLIBOR)+4%perannumover 5 years before fees. In so doing the fund aims to achieve a positive return on a rolling 3 year basis. However, a positive return is not guaranteed and a capital loss may occur.


Fund code: 0660 Fund specific risks: 12, 13, 14, 15, 16, 17, 18, 21, Underlying fund type: OEIC 29, 34, 35


REMEMBER, IF YOU’RE UNSURE ABOUT ANYTHING, PLEASE ASK.We’ve made this document as simple to use as possible. However, some of the information is quite technical, so if there’s anything you don’t understand, or if you have a question about any of the funds, please ask your adviser.

WALTER SCOTT (BNY MELLON FUND MANAGERS LIMITED)BNYMellonInvestmentManagement’sgoalistobuildandmanageinvestmentsstrategiesthatmeetthe ever-changingneedsoftheirclients.BNYMellonInvestmentManagement’smodeloffersthebestofbothworlds:specialistexpertisefromtheirforward-thinkingeightinvestmentfirms,offeringsolutionsacrosseverymajorassetclass,backedbythestrength,scaleandprovenfinancialstewardshipofBNYMellon.

TheyhaveUSD1.8trillionassetsundermanagement,eightinvestmentfirms,andaretheseventhlargestAssetManager(asat31March2019).BNYMellonInvestmentManagementprovidesarobustcorporatefoundation,togetherwithworldwideresourcesandadministrativesupportthatallowstheirinvestmentfirmsthefreedomtoconcentrate on what they do best - deliver specialist and focused investments to clients. From mainstream equities toprivatedebtmarkets;alternativestotheworldoffixedincome–eachoftheirinvestmentfirmshasitsownuniqueinvestmentphilosophy,proprietaryprocessandisarecognisedleaderinitsfield.Theirstructureencouragesanentrepreneurial,focusedapproachtoinvestment.Thiscreatesanenvironmentinwhicheachfirmcanperformandbuildonitsindividualexperienceandstrengthsinthedevelopmentofnewproducts.BNYMellonInvestmentManagementputsclientsatthecentreofeverythingtheydo,offeringawiderangeofstrategiesdesignedtomeetinvestors’varyingobjectives.Theirbestofbothworldsapproach-specialisationweddedtoscale-providestheirclientswithaccesstoacomprehensiverangeofinvestmentcapabilities,coveringeverymajorglobalassetclass.BNYMellonInvestmentManagementpartnerwithclientstodeliverbespokeinvestmentandwealthmanagementstrategiesandsolutionstomeettheirindividualneeds.Drawingontheirinvestmentfirms’expertiseandinvestment insights, they collaborate with clients to tailor their best ideas and resources to meet their goals. They translate creativity, independence, insight, and trust into solutions and opportunities. With extensive experience inanticipatingandrespondingtotheinvestmentandfinancialneedsoftheworld’sgovernments,pensionplansponsors, corporations, foundations, endowments, advisers, intermediaries, individuals and families, and family offices,BNYMellonInvestmentManagementisseenbyitsclientsasnavigator,curator–asafepairofhands.

LEGAL & GENERAL BNY MELLON LONG TERM GLOBAL EQUITY FUND

Fund aim: To achieve long-term capital appreciation through investing primarily (meaning at least three quarters of the fund’s total assets) in a portfolio of equity and equity related securities of companies located throughout the world.


Fund code: 0728 Fund specific risks: 12, 13, 17, 18, 21, 29, 35 Underlying fund type: OEIC

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