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Pension fund selectionFor financial advisers only
The funds are listed in alphabetical order within theirappropriate risk classification. We’ve also placed the riskclassifications in order, ranging from minimal to higher risk.
We’ve tried to keep our use of investment terms to a minimumthroughout and have included a short glossary of terms onpages 64 to 67 to help explain any terms you may be lessfamiliar with.
Our fund range includes a wide variety of investment optionsand we’ve teamed up with some of the most experienced fundmanagement groups to draw on their expertise. You can find a brief explanation of our investment partners’ differentinvestment approaches on pages 67 to 69.
We’re continually developing our fund rangeand so there may have been changes sincewe compiled this listing. To find out details ofany new funds, or changes to existing funds,please visit our website at www.aegonse.co.uk.Alternatively, you can contact your localAEGON Scottish Equitable consultant.
This communication is for professionalfinancial advisers only. It's not forprivate customers and shouldn't begiven out to, or relied on by, them.
Welcome to our pension fund selection booklet
2 3
Here we explain how we categorise our funds by risk, so you can choose the appropriate investments for your clients.
We’ve allocated each of our funds a risk classification relative to our full fund range, based on their defined objectives and how they’ve performed in the past. We regularly review these risk classifications, so they can change.
Minimal riskThe funds in this category have underlying investments thatgenerally see little or no change in value from day to day. They’re designed to provide steady growth and are particularlysuited to short-term investment where security is the main aim.Over the longer term, these funds are unlikely to deliver highlevels of return.
Low riskThe underlying investments of these funds will generally see some change in day-to-day value but the movements will typically be small. They try to provide longer-term growthprospects, mostly by investing in a combination of asset types. We currently don’t have any funds in this category.
Below-average riskThe underlying investments of these funds will generally see somechange in day-to-day value but the movements won’t typically belarge (in comparison with our full fund range). They try to providebetter long-term growth prospects than a cash deposit, but arelower risk than funds investing mainly in equities.
Average riskThe underlying investments of the funds in this category willtypically see average levels of change in day-to-day value (relativeto our full fund range). They offer good growth potential, mostly byinvesting in a diversified spread of assets and are well suited formedium- to long-term investment.
Above-average riskThese funds offer very good long-term growthpotential. Most of them invest in one asset classonly (for example North American equities) so returns are likely to change more in day-to-day value than our more diversified funds. This makes them best suited for longer-terminvestment, and particularly useful as part of a balanced portfolio.
Higher riskThe funds in this category may invest in areasthat may see larger day-to-day changes in return(relative to our full fund range). They can offerexcellent growth potential from time to timeand are particularly useful when constructing a balanced portfolio.
Please note that the risk rating for eachfund is based purely on its risk relative toother funds within our full fund range andnot against industry benchmarks.
Risk classifications and definitions
ContentsFunds
Minimal and below averagePage7 Cash7 50/50 Cautious Managed Collection8 60/40 Cautious Managed Collection8 70/30 Defensive Managed Collection9 80/20 Defensive Managed Collection9 Distribution10 High Yield Corporate Bond10 Index-Linked 11 Long Gilt11 Overseas Bond12 Property12 Protected Growth13 Scottish Equitable AEGON Core Plus13 Scottish Equitable AEGON Enhanced Corporate Bond14 Scottish Equitable AEGON Enhanced Long Corporate Bond14 Scottish Equitable AEGON Ethical Corporate Bond15 Scottish Equitable AEGON Investment Grade Corporate Bond15 Scottish Equitable AEGON Sterling Corporate Bond16 Scottish Equitable BGI 50/50 Bond & Equity Index
Page16 Scottish Equitable BGI Over 15 Years Corporate Bond Index17 Scottish Equitable BGI Over 15 Years UK Gilt Index17 Scottish Equitable BGI Over 5 Years UK Index-Linked Gilt Index 18 Scottish Equitable Gartmore Cautious Managed18 Scottish Equitable Insight Investments Diversified Target Return19 Scottish Equitable Invesco Perpetual Corporate Bond19 Scottish Equitable Investec Cautious Managed20 Scottish Equitable Northern Trust Cautious Manager of Managers20 Scottish Equitable UBS Targeted Return20 Select Distribution21 Select Reserve 21 UK Corporate Bond22 UK Fixed Interest 22 UK Fixed Interest & Global Equity Tracker23 UK Government Bond23 UK Long Corporate Bond24 With-Profits Cautious24 With-Profits Growth
AveragePage25 Balanced Passive25 External Balanced Collection25 Mixed26 Scottish Equitable Baillie Gifford Balanced Managed26 Scottish Equitable BGI Consensus27 Scottish Equitable Invesco Perpetual Balanced Managed27 Scottish Equitable Lazard Balanced Managed
Page28 Scottish Equitable BlackRock Balanced Managed28 Scottish Equitable Newton Balanced Managed29 Scottish Equitable Northern Trust Balanced Manager of Managers29 Scottish Equitable SG Balanced Managed30 Scottish Equitable UBS Balanced Managed30 Universal Balanced Collection
4 5
Above averagePage31 Ethical31 European32 European Tactical32 External Stockmarket Collection33 Global33 Global Equity Tracker34 International34 North American34 Overseas Equity Tracker35 Overseas Tactical35 Scottish Equitable AEGON Global Bond36 Scottish Equitable AEGON High Yield Bond36 Scottish Equitable AEGON UK Opportunities36 Scottish Equitable AEGON UK Smaller Companies37 Scottish Equitable Artemis Capital37 Scottish Equitable Artemis Income37 Scottish Equitable Artemis UK Special Situations38 Scottish Equitable Baillie Gifford High Yield Bond38 Scottish Equitable Baillie Gifford International38 Scottish Equitable Baillie Gifford Stockmarket Managed39 Scottish Equitable Baillie Gifford UK Equity39 Scottish Equitable BGI 40/60 Global Equity Index39 Scottish Equitable BGI 50/50 Global Equity Index40 Scottish Equitable BGI European Equity Index40 Scottish Equitable BGI UK Equity Index40 Scottish Equitable BGI US Equity Index41 Scottish Equitable BGI World (Ex UK) Equity Index41 Scottish Equitable Fidelity European41 Scottish Equitable Fidelity WealthBuilder42 Scottish Equitable Gartmore US Opportunities
Page42 Scottish Equitable Invesco Perpetual Income42 Scottish Equitable Invesco Perpetual Stockmarket Managed43 Scottish Equitable JPMorgan Europe Dynamic43 Scottish Equitable JPMorgan Premier Equity Growth43 Scottish Equitable JPMorgan US Equity44 Scottish Equitable Lazard European Smaller Companies44 Scottish Equitable Lazard Stockmarket Managed45 Scottish Equitable Lazard UK Alpha45 Scottish Equitable BlackRock Olympian Growth45 Scottish Equitable BlackRock UK46 Scottish Equitable BlackRock UK Smaller Companies46 Scottish Equitable BlackRock UK Special Situations47 Scottish Equitable BlackRock US Dynamic47 Scottish Equitable Newton Global Higher Income48 Scottish Equitable Newton Higher Income48 Scottish Equitable Newton Stockmarket Managed48 Scottish Equitable Northern Trust Stockmarket Manager of Managers49 Scottish Equitable Schroder Global Property Securities49 Scottish Equitable Schroder Income50 Scottish Equitable Schroder UK Alpha Plus50 Scottish Equitable Schroder UK Mid-25050 Scottish Equitable Schroder UK Smaller Companies51 Scottish Equitable SG Stockmarket Managed51 Scottish Equitable UBS Stockmarket Managed51 Scottish Equitable UBS US Equity52 Socially Responsible Equity52 UK Equity52 UK Equity Tactical53 UK Index Tracker53 UK Smaller Companies
HigherPage53 Japan54 Pacific54 Scottish Equitable BGI Japanese Equity Index54 Scottish Equitable BGI Pacific Rim Equity Index55 Scottish Equitable Fidelity South East Asia55 Scottish Equitable First State Asia Pacific Leaders55 Scottish Equitable Invesco Perpetual Asian
Page56 Scottish Equitable JPMorgan Japan56 Scottish Equitable JPMorgan Natural Resources56 Scottish Equitable BlackRock Gold & General57 Scottish Equitable Schroder Tokyo57 Scottish Equitable UBS Global Emerging Markets Equity57 Technology
Lifestyle funds
Page59 Cautious Lifestyle59 Scottish Equitable BGI 50/50 Bond & Equity Lifestyle60 UK Fixed Interest & Global Equity Tracker Lifestyle60 Balanced Lifestyle61 Balanced Passive Lifestyle61 Scottish Equitable BGI Consensus Lifestyle61 Stakeholder Default
Page62 Universal Lifestyle Collection62 BGI 40/60 Global Equity Lifestyle63 Dynamic Lifestyle63 Global Equity Tracker Lifestyle63 Scottish Equitable BGI 50/50 Global Equity Lifestyle
64 Glossary of terms
70 Notes
Each fund entry includes certain information, as shown below.
Fund name1 (See notes on page 70) SEDOL1234567The SEDOL code shown above applies to funds with our 1% basic yearly charge. We’ve given these identifier codes to help you when using third-party systems.
Funds
In this section you’ll find the fundslisted in alphabetical order in theirrelative risk category, from minimalto higher risk.
We’ve given each of our funds a risk classification relative to our full fund range.We regularly review these risk classifications and may change them, for example if a fund’s objective alters significantly.
This is the date we started the fund.
Here we give a brief explanation of the aims and objectives for the fund.
For some funds, there may be additional yearly charges or additional yearlyexpenses. Fund expenses are the costs associated with the administration andmanagement of the underlying assets of the funds. The charges are regularlyreviewed so we reserve the right to make changes without letting the investorknow beforehand.
This is the selected relevant index or fund (for example the ‘median’) we measurethe fund against. Changes in market conditions may mean we have to change thebenchmark from time to time.
This shows the investment ranges the fund will typically operate within. However, from time to time the fund may have to have more or less in an asset class than shown due to market conditions. So we reserve the right to do this without letting the investor know.
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minimal
9 January 1983
This fund is actively managed (which means the fund manager decides where to invest to outperformthe market average), investing at least 95% in bank deposits and other short-term UK money marketinvestments, such as very short-term fixed interest securities. This is in line with the Association ofBritish Insurers’ (ABI) Money Market sector requirements. The fund aims to make attractive cashreturns, before any charges.
n/a
LIBID (London Inter-Bank BID rate) before charges
Cash/Deposits 10-100%Certificates of Deposits 10-60%Floating Rate Notes 0-50%Commercial paper 0-50%Short-term bonds 0-50%
Cash SEDOL 782922
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
6 7
Below average
30 August 2002
This is one of our two cautious managed ‘collections’ that allow investors to invest in a mix of flexiblemanaged funds from our external range, as well as fixed interest, in the most suitable proportions for their individual needs. 50% is invested in the UK Fixed Interest fund and 50% is invested in theExternal Stockmarket Collection. A cautious managed fund can’t invest more than 60% in equities and has to have at least 50% in sterling-based investments.
The cautious managed collections use the fixed interest expertise of AEGON Asset Management, as well as offering the opportunity to invest in equities through our innovative External StockmarketCollection. This fund is suitable for investors looking for a cautious managed fund with a reasonablyhigh level of fixed interest investment.
0.15%
Please see benchmarks of the underlying funds.
Within this collection, 50% of the fund is invested in the UK Fixed Interest fund and 50% is invested in the External Stockmarket Collection.
50/50 Cautious Managed Collection3 SEDOL 3230581
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
30 August 2002
This is one of two defensive managed ‘collections’ that allow investors to invest in a mix of fourflexible managed funds from our external range, as well as fixed interest, in the most suitableproportions for their individual needs. 70% is invested in the UK Fixed Interest fund and 30% is invested in the External Stockmarket Collection. A defensive managed fund can’t invest more than 35% in equities and has to have at least 85% in sterling-based investments.
Our defensive managed collections use the fixed interest expertise of AEGON Asset Management, as well as giving investors the opportunity to invest in equities through our innovative ExternalStockmarket Collection. This fund is suitable for investors looking for a defensive managed fund with a high level of fixed interest investment.
0.10%
Please see benchmarks of the underlying funds.
Within this collection, 70% of the fund is invested in the UK Fixed Interest fund and 30% is invested in the External Stockmarket Collection.
70/30 Defensive Managed Collection3 SEDOL 3230569
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
30 August 2002
This is one of our two cautious managed ‘collections’ that allow investors to invest in a mix of flexible managed funds from our external range, as well as fixed interest, in the most suitableproportions for their individual needs. 60% is invested in the UK Fixed Interest fund and 40% isinvested in the External Stockmarket Collection. A cautious managed fund can’t invest more than 60% in equities and has to have at least 50% in sterling-based investments.
These collections use the fixed interest expertise of AEGON Asset Management, as well as givinginvestors the opportunity to invest in equities through our innovative External Stockmarket Collection.This fund is suitable for investors looking for a cautious managed fund with a reasonably high level of fixed interest investment.
0.15%
Please see benchmarks of the underlying funds.
Within this collection, 60% of the fund is invested in the UK Fixed Interest fund and 40% is invested in the External Stockmarket Collection.
60/40 Cautious Managed Collection3 SEDOL 3230570
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
8 9
Below average
30 August 2002
This is one of two defensive managed ‘collections’ that allow investors to invest in a mix of flexiblemanaged funds from our external range, as well as fixed interest, in the most suitable proportions for their individual needs. 80% is invested in the UK Fixed Interest fund and 20% is invested in theExternal Stockmarket Collection. A defensive managed fund can’t invest more than 35% in equitiesand has to have at least 85% in sterling-based investments.
Our defensive managed collections use the fixed interest expertise of AEGON Asset Management, as well as giving investors the opportunity to invest in equities through our innovative ExternalStockmarket Collection. This fund is suitable for investors looking for a defensive managed fund with a high level of fixed interest investment.
0.05%
Please see benchmarks of the underlying funds.
Within this collection, 80% of the fund is invested in the UK Fixed Interest fund and 20% is invested in the External Stockmarket Collection.
80/20 Defensive Managed Collection3 SEDOL 3230558
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
28 June 1996
This fund invests in UK equities and corporate bonds. It may also invest in bonds issued by theGovernment (both conventional and index-linked) and on occasion invest internationally if appropriate.It sits in the cautious managed sector, which means it aims to provide a balance between risk andreward that’s acceptable to the more cautious investor.
n/a
Lipper Cautious Managed pension sector median.
UK equities 40-60%UK fixed interest (gilts and sterling bonds) 40-60%UK convertibles 0-20%UK index-linked 0-20%International equities 0-5%Cash 0-20%
Typically, up to 5% may be invested in index futures. Hedging of exposure to overseas currencies back to sterling is permitted for up to 5% of the fund.
Distribution SEDOL 780067
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
3 July 2000
This fund invests in a mix of non- or sub-investment grade corporate bonds, usually known as highyield corporate bonds, and investment grade bonds.
High yield bonds are issued by companies with a lower credit rating than investment grade bonds. In return for the extra risk of investing in a high yield bond, you generally receive a higher rate ofinterest. The market value of high yield bonds usually fluctuate more than for investment gradebonds.
Because this fund’s investment in sub-investment grade bonds forms such a large part of its fixedinterest content it has the highest risk level of our fixed interest fund range.
0.05%
IMA UK Other Bond
High yield corporate bonds 20-100%Sterling investment grade bonds 0-100%Cash 0-20%
High Yield Corporate Bond SEDOL 921123
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
9 January 1983
This fund invests mostly in index-linked UK government securities, also known as gilts. These securitiesare linked to movements in the Retail Prices Index (RPI), so this gives investors some protectionagainst inflation. However, they’re also traded in the market and so prices will go up and down.
n/a
FTSE A (Index-Linked) British Govt All-Stocks TR
UK Index-Linked government securities 90-100%Cash 0-10%
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Index-Linked SEDOL 782911
Minim
al and below average
10 11
Below average
18 September 1995
This fund invests in UK government securities (also known as gilts) with maturity dates of more than 15 years.
UK government securities are loan stocks with varying maturity dates that are issued by theGovernment to fund the public sector net cash requirement. They pay a fixed rate of interestuntil their maturity date.
This is a specialist fund, which aims to help protect investors’ annuity buying power, as annuity rates are heavily influenced by the Long Gilt Index.
n/a
FTSE A British Govt Over 15 Years TR
Long gilts 95-100%Cash 0-5%
Typically, up to 25% may be invested in index futures. No hedging out of sterling is permitted.
Long Gilt SEDOL 780045
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
3 August 1993
This fund invests in foreign government and high-quality non-government fixed interest securities withvarying maturity dates. Sterling investment will be limited.
Fixed interest investments, or bonds, are generally considered a lower-risk investment. Bonds areissued by governments, local authorities or companies to raise capital. They’re generally issued for a fixed time period during which investors are usually paid interest.
This is an actively managed specialist fund, which aims to give investors attractive long-termtotal returns.
n/a
Citigroup WGBI (Non-GBP) TR index
Bonds and fixed interest 80-100%Cash 0-20%
Typically, up to 25% may be invested in index futures/forwards/cross hedging. Sterling exposure islimited to a maximum of 5%.
Overseas Bond SEDOL 790680
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
9 January 1983
This fund invests in UK commercial property including, office, retail and industrial property(see section on types of investment), with the aim of maximising returns through capital andrental growth. It may also, from time to time, hold a significant amount in cash.
0.4%
IPD UK All-Property Monthly TR index
Property 80-100%Cash 0-20%
Property1,2,6 SEDOL 782881
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
7 March 2005
This fund aims to limit its risk from stockmarket investment by using a strategy known as constantproportion portfolio insurance (CPPI). The basic principle behind CPPI is that when stock markets are falling, investment is moved from equities to cash. And when markets are rising, investment ismoved from cash into equities. The fund also uses gap insurance, which provides further protection for the fund against sudden dramatic falls in the stock market. This fund aims to give investors thechance to limit market risk while still having some participation in the upside potential of stockmarketinvestment. The investment in equities is currently done through a FTSE 100 tracker fund.
0.5%
ABI Protected/Guaranteed median
UK equities 0-70%Cash 30-100%
Protected Growth1,2,5 SEDOL B08ZVS1
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
12 13
Below average
29 March 2006
The fund is an actively managed fixed income fund. It invests mainly in sterling investment gradebonds of all durations. Duration is simply a measure of risk, expressed in years — the longer theduration, the greater the risk.
The fund also has the flexibility to include different investments than the benchmark, which iscurrently the iBoxx Sterling Non-Gilt Index. These investments can be in European and US corporatebonds, asset-, mortgage- and commercial-mortgage-backed securities, as well as government bondsand Index-Linked securities.
0.15%
iBoxx Sterling Non-Gilts Overall TR index
UK gilts 0-30%UK non gilts 70-100%Non sterling government bonds 0-30%Non sterling investment grade bonds 0-30%High yield bonds 0-5%Cash 0-10%
Scottish Equitable AEGON Enhanced Corporate Bond1,2 SEDOL B158VW4
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
29 March 2006
The fund is an actively managed fixed income fund, benchmarked against a UK Index comprising bothcorporate and government bonds of all durations. Duration is simply a measure of risk, expressed inyears — the longer the duration, the greater the risk.
The fund has the flexibility to include significantly different investments from the benchmark, which isthe iBoxx Sterling Overall index. These can include European and US corporate bonds, emerging-marketdebt and high yield bonds, as well as asset-, mortgage- and commercial-mortgage-backed securities.
0.25%
iBoxx Sterling Overall TR index
Gilts 0-100%UK corporate bonds 0-100%Non sterling government bonds 0-50%Non sterling investment grade corporate bonds 0-50%High yield bonds 0-15%USD denominated emerging market debt 0-15%Total high yield and emerging market debt 0-20%Cash 0-10%
Scottish Equitable AEGON Core Plus1,2 SEDOL B158VX5
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
29 March 2006
The fund is an actively managed fixed income fund, investing mainly in sterling investment gradebonds with maturity dates of 10 years and more.
The fund also has the flexibility to include different investments than the benchmark, which iscurrently the iBoxx Sterling Non-Gilt Over 10 Years index. These investments can be European and US corporate bonds, asset-, mortgage- and commercial-mortgage-backed securities, as well as government bonds and index-linked securities.
0.15%
iBoxx Sterling Non-Gilts Over 10 Years TR index
UK gilts 0-30%UK non gilts 70-100%Non sterling government bonds 0-30%Non sterling investment grade bonds 0-30%High yield bonds 0-5%Cash 0-10%
Scottish Equitable AEGON Enhanced Long Corporate Bond1,2 SEDOL B158VT1
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
15 January 2007
This fund aims to maximise total return (income plus capital) by investing in sterling denominatedbonds issued by companies or organisations that meet the fund’s strict ethical criteria. It investsmainly in investment grade corporate bonds issued by financially strong UK companies. It can alsoinvest in cash or up to a maximum of 10% in high yield bonds.
The fund is one of the darkest green on the market, meaning its ethical criteria are among thestrictest. It won’t invest in companies that harm people animals or the environment.
0.55%
iBoxx Sterling Non-Gilts Overall TR index
Fixed interest 80-100%Cash 0-20%
Scottish Equitable AEGON Ethical Corporate Bond1,2 SEDOL B1VRK84
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
14 15
Below average
15 January 2007
This fund aims to maximise total return (income plus capital) by investing primarily in investmentgrade and government bonds in sterling and other currencies. The fund may invest a maximum of20% in high yield bonds and may also invest in cash. A minimum of 80% of the fund will be hedgedback to sterling. Hedging in this case is used to protect the fund from exchange rate fluctuations.
0.65%
iBoxx Sterling Non-Gilts Overall TR index
Fixed interest 80-100%Cash 0-20%
Scottish Equitable AEGON Investment Grade Corporate Bond1,2 SEDOL B1VRKP1
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
15 January 2007
This fund aims to maximise total return (income plus capital) by investing mainly in sterling bondsincluding investment grade corporate bonds, government bonds and cash. The fund may also investup to 10% in high yield bonds.
0.50%
IMA UK Corporate Bond
Fixed interest 80-100%Cash 0-20%
Scottish Equitable AEGON Sterling Corporate Bond1,2 SEDOL B1VRL14
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
31 July 2006
This fund invests approximately 50% in equities and the remainder in fixed interest investments.It divides its investment in equities between the UK and overseas with the overseas element splitequally between the USA, Europe (excluding the UK) and the Far East. The fixed interest portionis split equally between UK government securities (gilts) that have a maturity period of 15 years or longer and sterling investment grade corporate bonds that have a maturity period of 15 years or longer.
This fund is managed by Barclays Global Investors (BGI), one of our investment partners. BGI aims to provide returns consistent with the markets it invests in and uses the full replication approach for the majority of its index funds, in other words it invests in the same equities as the index fund.
n/a
Please see the benchmarks of the underlying funds.
This fund will invest fully within the asset ranges of the underlying funds’ benchmarks
Scottish Equitable BGI 50/50 Bond & Equity Index SEDOL B1G2WX3
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
19 June 2006
This fund invests in sterling investment grade corporate bonds with maturities of 15 years or longer.It aims to achieve a return, before charges, consistent with the iBoxx Sterling Non-Gilts Over 15 Yearsindex. Its managed by Barclays Global Investors (BGI), one of our investment partners.
n/a
iBoxx Sterling Non-Gilts Over 15 Years TR index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI — Over 15 years Corporate Bond Index SEDOL B1G2WG6
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
16 17
Below average
7 June 2006
This fund invests in UK government fixed income securities (gilts) that have a maturity period of 15 years or longer.
The fund aims to achieve a return, before charges, consistent with the FTSE UK Gilts Over 15 Yearsindex, which is widely regarded as the benchmark for UK pension fund investment in the longer-datedend of the UK gilt market. The fund is managed by Barclays Global Investors (BGI), one of ourinvestment partners.
n/a
FTSE A British Govt Over 15 Years TR index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI Over 15 Years UK Gilt Index SEDOL B1G2WG6
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
19 June 2006
This fund invests in UK government index-linked securities (also known as index-linked gilts) that havematurity dates of five years or longer. These securities are linked to movements in the Retail PricesIndex (RPI), so this gives investors some protection against inflation. However, they’re also traded inthe market and so prices will go up and down.
This fund aims to achieve a return, before charges, consistent with the FTSE UK Gilts Index-LinkedOver 5 Years index, which is widely regarded as the benchmark for UK pension fund investment in the longer-dated end of the UK Index-Linked gilt market. The fund is managed by Barclays GlobalInvestors (BGI), one of our investment partners.
n/a
FTSE A (Index-Linked) British Govt Over 5 Years TR index
This fund will invest fully within the asset ranges of its benchmark.
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Scottish Equitable BGI Over 5 Years UK Index-Linked Gilt Index SEDOL B1G5168
Below average
31 August 2005
This fund invests with the aim of producing a combination of income and long-term capital growth.It’s managed by Gartmore, one of our investment partners. It invests mainly in a diversified portfolioof equities and fixed interest investments. Investment in equities is limited to a maximum of 60% of thevalue of the fund’s investments at all times. The fund may also invest in other permitted investments.
0.70%
LCI FTSE All-Share index/Merrill Lynch GBP Non-Gilt index
Equities 40-60%Bonds and fixed interest 30-60%Cash 0-10%
Scottish Equitable Gartmore Cautious Managed1,2 SEDOL B0K9N29
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
29 June 2007
This fund aims to deliver positive returns on a yearly basis, with the prospect of long-term capital growthsimilar to investing in equities but with risk more akin to fixed interest investment. Most traditionalfunds aim to achieve returns above or in line with a particular benchmark, say the FTSE 100. So, ifthe FTSE 100 goes down, then even if the fund outperforms it, it may still have negative returns.However, this fund aims to give a positive yearly return regardless of market movements.
The fund invests across one or more of the following asset classes: fixed interest, cash, near cashand deposits, equities, property, collective investment schemes which have an absolute or targetreturn objective, and structured products. The fund may also invest in other transferable securities,money market instruments (such as cash, certificates of deposit and treasury bills) and derivatives.This is also a multi-manager fund, which means it invests in funds or collective investment schemesmanaged by various different investment managers. It is by spreading risk and by reducing the fund’sreliance on a single manager that the fund intends to achieve its aim of returns similar to investmentin equities for less risk.
The fund is managed by Insight Investments, one of our investment partners.
0.85%
LIBID GBP 3 Month
Equities 0-60%Absolute return funds 0-60%Property funds 0-30%Bonds 0-70%Commodities 0-30%Cash 0-70%
Scottish Equitable Insight Investments Diversified Target Return1,2 SEDOL B248285
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
18 19
Below average
18 December 2006
This fund aims to provide a high level of overall return but with the relative security of capitalby investing primarily in corporate bonds. To help achieve this objective, the fund managers mayalso include other investments that they consider appropriate, for example transferable securities,money market instruments, warrants, collective investment schemes, deposits and other permittedinvestments and transactions. However, the fund will not invest in any instrument which gives riseto stamp duty liability.
This fund is managed by Invesco Perpetual, one of our investment partners.
0.80%
IMA UK Corporate Bond sector
Bonds and fixed interest 90-100%Cash 0-10%
Scottish Equitable Invesco Perpetual Corporate Bond1,2 SEDOL B1NV0G2
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
21 December 2006
This fund aims to provide a combination of income and long-term capital growth by investingconservatively in a diversified portfolio of equities, bonds and other fixed interest securities of highquality and marketability.
At all times the fund’s investment in equities will be limited to a maximum of 60%. It’s managed byInvestec Asset Management, one of our investment partners.
Investec Asset Management is a specialist investment manager, providing a premier range of portfoliomanagement services and products to institutional and individual investors.
0.75%
50% FTSE All-Share index/50% Merrill Lynch GBP Broad Market index
Equities 35-60%Fixed interest 35-60%Cash 0-30%
Scottish Equitable Investec Cautious Managed1,2 SEDOL B1NV0S4
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
31 January 2005
The fund aims to outperform its benchmark (Lipper Distribution Life sector average) and to have less fluctuation in value. It invests in a blend of property, fixed interest, equities and cash and thisblend of investments should help to produce less variable performance, and an attractive return.
0.2%
Lipper Distribution life sector average
UK equities 30-60%UK fixed interest 30-50%Property 5-20%Cash 5-20%
Select Distribution1,2,6 SEDOL B07Q0N3
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
20 November 2004
The manager of managers concept is that an independent specialist investment manager constructsa bespoke portfolio made up from funds managed by fund managers it considers are ‘best in class’.Our manager of managers is Northern Trust.
In line with this concept, this fund invests in all major asset classes (equities, bonds, cash) andregions using the skills of these ‘best in class’ managers. Northern Trust believes this approachproduces a highly-diversified portfolio that increases the chances of achieving consistent betterperformance than the Lipper Cautious Managed sector median fund.
0.50%
ABI Cautious Managed pension sector
n/a
Scottish Equitable Northern Trust Cautious Manager of Managers1,2 SEDOL B07Q0M2
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
16 August 2007
This fund aims to return 6% above the Retail Prices Index over a full market cycle of around five years. To do this it invests in a diversified spread of investments such as equities, bonds and currenciesmuch like other active or passive balanced portfolios, but it also uses derivatives (see section onTypes of investment) to achieve similar returns to balanced managed funds for much less risk.
0.70%
UK Retail Price index
Equities 0-100%Fixed interest 0-100%Cash 0-100%
Scottish Equitable UBS Targeted Return1,2 SEDOL B2482K7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
20 21
Below average
8 December 2004
This fund invests in cash, property and fixed interest securities and aims to give a return that’s higher than cash in the longer term, while avoiding too much fluctuation in value.
This fund is intended for investors who are nervous about investing their savings in equities and who would prefer a lower-risk investment.
0.10%
ABI Defensive Managed median
UK equities 0-5%UK fixed interest 30-50%Property 15-35%Cash 30-40%
Select Reserve1,2,6 SEDOL B07Q0Q6
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
1 July 2000
This fund invests in a wide range of sterling investment grade bonds. These are bonds with creditratings between AAA and BBB or equivalent.
The fund is actively managed and invests across all durations. Duration is simply a measure of risk,expressed in years — the longer the duration, the greater the risk.
n/a
iBoxx Sterling Non-Gilts Overall TR index
Investment grade bonds (AAA to BBB) 90-100%Cash 0-10%
UK Corporate Bond SEDOL 921060
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
9 January 1983
This fund aims to produce attractive and consistent long-term returns by investing in a spreadof government securities and corporate bonds across all maturities. The fund is actively managedand is a relatively low risk fund within our fixed interest range.
n/a
45% iBoxx Sterling Non-Gilts Overall TR index/35% FTSE A British Govt All-Stocks TR index/20% iBoxx Sterling Overall TR index
Bonds and fixed interest 90-100%Cash 0-10%
UK Fixed Interest SEDOL 782892
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
30 May 2003
This fund invests 50% in the UK Fixed Interest fund and 50% in the Global Equity Tracker fund.
The UK Fixed Interest fund element invests in gilts, as well as other quality sterling fixed interest andconvertible loans issued by UK corporations. This part of the investment is actively managed, aimingto produce attractive and consistent long-term total returns.
The Global Equity Tracker element invests in equities in all major regions, based on equal investmentin the UK and overseas, for long-term growth. This part of the investment is passively managed andaims to match the performance of a benchmark index or fund by investing in the same proportionsas the index.
n/a
Please see benchmarks of the underlying funds.
n/a
UK Fixed Interest & Global Equity Tracker SEDOL 3318108
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
22 23
Below average
1 July 2000
This fund invests in a wide range of sterling investment grade bonds with maturity datesof 10 years or over. These bonds have credit ratings between AAA and BBB- or equivalent.
n/a
iBoxx Non-Gilts Over 10 Years TR index
Investment grade bonds 95-100%(AAA to BBB)Cash 0-5%
UK Long Corporate Bond SEDOL 921101
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
28 May 2004
This fund invests mainly in UK government securities, known as gilts. It’s actively managed and invests across all durations. Duration is simply a measure of risk, expressed in years — the longer the duration, the greater the risk.
n/a
FTSE A British Govt All-Stocks TR index
UK government securities 90-100%Cash 0-10%
UK Government Bond SEDOL 921082
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
30 September 2002
This fund mainly invests in UK and overseas equities in order to increase the long-term growthpotential of the fund, however the fund also invests in fixed interest investments. The funds returnsare smoothed daily, which means we take the fund performance to be currently halfway betweenthe actual returns of the underlying investments and the disclosed ‘expected growth rate’ (EGR).This helps to reduce the impact of stockmarket fluctuations. The EGR is our view of the long-termrate at which the underlying investments will grow and doesn’t include any fund or product-specificcharges. It isn’t guaranteed.
We may change the EGR in the future but won’t change it retrospectively. When investors take moneyout of the fund this can result in smoothing profits or losses for the fund, currently half of which areimmediately reflected in the daily unit price. To make sure all investors get their fair share we may,under certain conditions, apply additional smoothing adjustments (either up or down) when investorstake their money out of the fund. Due to the smoothing process, this fund is lower risk relative toother funds that have a similar proportion of share investment. With its higher share content, thisfund has a higher risk level than our With-Profits Cautious fund.
n/a
n/a
Equities 60-90%Fixed interest 10-40%
Smoothing will not be able to counteract the impact of a sustained decline in investment returns.
With-Profits Growth SEDOL 3230592
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
30 September 2002
This fund mainly invests in income-generating investments such as bonds but can also invest up to50% in equities in the UK and overseas. The funds returns are smoothed daily, which means, we takethe fund performance to be halfway between the actual returns on the investments and the disclosed‘expected growth rate’ (EGR). This helps to reduce the impact of stockmarket fluctuations. The EGR isour view of the long-term rate at which the underlying investments will grow and doesn’t include anyfund or product-specific charges. It isn’t guaranteed.
We may change the EGR in the future but we won’t change it retrospectively. When investors takemoney out of the fund this can result in smoothing profits or losses for the fund, currently half ofwhich are immediately reflected in the daily unit price. To make sure all investors receive their fairshare we may, under certain conditions, apply additional smoothing adjustments either up or downwhen investors take their money out the fund.
Due to the smoothing process, this fund is lower risk relative to other funds that have a similarproportion of investment in shares.
n/a
n/a
Fixed interest 30-70%Equities 20-50%Property 0-25%
Smoothing will not be able to counteract the impact of a sustained decline in investment returns.
With-Profits Cautious SEDOL 3230600
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
External Balanced Collection3 SEDOL 538783
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 April 2000
This fund invests in a mix of the balanced managed funds from five investment management houses,currently Baillie Gifford, BlackRock, Newton, Société Générale Asset Management and UBS GlobalAsset Management. We regularly review the investment split and change the weightings between the managers as necessary to make sure the proportion invested in each fund stays the same. The fund gives investors the opportunity for investment diversity without having to favour onemanager over another.
0.25%
Please see underlying balanced managed fund of the relevant investment management housescurrently Baillie Gifford, BlackRock, Newton, Société Générale Asset Management and UBS.
n/a
Minim
al and below average
Average
24 25
Average
29 June 2007
This fund is a balanced managed fund which invests mainly in UK and overseas equities and aims toprovide long-term growth. The remainder is invested in fixed interest investments and cash.
The fund is passively managed and can have up to 85% invested in shares and a minimum of 50% insterling-based investments.
n/a
ABI Balanced Managed pension sector average
Asset allocation is set in line with the ABI Balanced Managed Sector
Balanced Passive SEDOL 3065727
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
9 January 1983
This fund invests in a variety of Scottish Equitable regional and specialist funds, keeping close to the same investment type choices as the Association of British Insurers’ (ABI’s) Balanced Managedsector average. Our fund managers believe that they can better the ABI’s Balanced Managed sector average by actively managing both the mix of equities, bonds and cash and stock selection.The larger portion of the portfolio will be invested in the UK. This is a mainstream managed fund with a bias towards equities, which aims to provide consistent long-term growth.
n/a
Lipper Balanced Managed pension sector median
UK equities 50-65%US equities 2-10%European equities 8-20%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Bonds and fixed interest 5-20%Cash 0-5%
Mixed SEDOL 782869
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 April 2000
This fund invests mainly in UK and overseas equities. The remainder is invested in fixed interestinvestments and cash. The fund is one of several external fund links we offer. It’s managed byBaillie Gifford, one of our investment partners.
This is an actively managed fund and has a bias towards equities, aiming to provide superior long-termgrowth. From time to time the fund will have to invest more in cash than its benchmark, the CAPSBalanced Pooled fund median, because of Association of British Insurers’ sector restrictions.
0.25%
A composite of the CAPS Balanced Pooled fund median and the CAPS Cash Pooled fund median.
UK equities 45-65%US equities 2-12%European equities 5-20%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Fixed interest 5-20%Cash 0-15%
Scottish Equitable Baillie Gifford Balanced Managed3 SEDOL 538802
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
2 February 2005
This fund is a balanced managed fund which is passively managed by Barclays Global Investors (BGI), one of our investment partners. BGI uses the ‘full replication’ method of passive management,which means it aims to exactly duplicate the investments of a particular index in exactly the sameproportions. It aims to produce consistent investment performance in line with the average balancedmanaged pension fund (as measured by the balanced section of the CAPS Pooled Fund survey), while avoiding any violent swings between the upper and lower ends of the pension fund performanceleague tables. The fund aims to provide above inflation returns by mainly investing in equities but alsoprovides diversification and stability by investing in gilts, corporate bonds, overseas bonds and cash.
n/a
CAPS Balanced Pooled fund median
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI Consensus SEDOL B1G51H9
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 June 2002
This fund aims to achieve long-term capital growth with some income generation from investmentprimarily in equities of UK and overseas companies with the remainder in fixed interest investmentsand cash. To achieve the fund’s aim, the manager may include other investments that they considerappropriate. It’s managed by Invesco Perpetual, one of our investment partners.
0.3%
Lipper Balanced Managed pension sector average
UK equities 50-60%US equities 5-15%European equities 10-20%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Bonds and fixed interest 10-20%Cash 0-5%
Scottish Equitable Invesco Perpetual Balanced Managed3 SEDOL 3230417
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 June 2002
The fund invests mainly in the equities of UK and overseas companies with the remainder invested in fixed interest investments and cash. It’s managed by Lazard Asset Management, one of ourinvestment partners.
The fund aims to achieve long-term capital growth with a reasonable return.
0.35%
Composite benchmark comprising 60% FTSE World (ex UK) index and 20% FTSE UK Gilts All-Stocks index.
UK equities 55-65%US equities 0-18.75%European equities 0-15%Japanese equities 0-8.75%Pacific equities 0-3.75%Bonds and fixed interest 15-25%
Scottish Equitable Lazard Balanced Managed3 SEDOL 3230428
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
Average
26 27
Average
28 April 2000
The fund invests mainly in equities of UK and overseas companies with the remainder invested in fixed interest investments and cash. It’s managed by Newton, one of our investment partners.
This is a managed fund, which aims to provide superior long-term growth.
0.3%
IMA Balanced Managed
UK equities 45-60%US equities 2-10%European equities 5-15%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Bonds and fixed interest 10-20%Cash 0-10%
Scottish Equitable Newton Balanced Managed3 SEDOL 539593
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 April 2000
The fund invests mainly in equities of UK and overseas companies with the remainder invested infixed interest investments and cash. It’s managed by BlackRock, one of our investment partners.
This is a mainstream managed fund, with a preference for equities, which aims to provide consistentlong-term growth.
0.25%
IMA Balanced Managed
UK equities 40-70%Overseas equities 15-35%Fixed interest 15-25%Cash 0-5%
Scottish Equitable BlackRock Balanced Managed3 SEDOL 539623
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 February 2003
The manager of managers concept is that an independent specialist investment manager constructsa bespoke portfolio made up from funds managed by fund managers it considers are ‘best in class’.Our manager of managers is Northern Trust.
In line with this concept, this fund invests in all major asset classes (equities, bonds, cash) andregions using the skills of these ‘best in class’ managers. Northern Trust believes this approachproduces a well-diversified portfolio that increases the chances of achieving consistent betterperformance than the Lipper Balanced Managed sector median fund.
0.55%
Lipper Balanced Managed pension sector median
n/a
Scottish Equitable Northern Trust Balanced Manager of Managers3 SEDOL 539593
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 April 2000
The fund invests mainly in equities of UK and overseas companies with the remainder invested in fixed interest investments and cash. It’s managed by Société Générale Asset Management, one of our investment partners.
This is a mainstream managed fund, which aims to provide consistent long-term growth.
0.25%
Lipper Balanced Managed pension sector median
UK equities 50-65%US equities 2-10%European equities 5-15%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Bonds and fixed interest 2-36%Cash 0-10%
Scottish Equitable SG Balanced Managed3 SEDOL 539571
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
Average
28 29
Universal Balanced Collection SEDOL 3065664
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
29 June 2001
This fund is a balanced managed fund which invests mainly in the equities of companies in the UK and overseas for long-term growth. The remainder is invested in fixed interest investments and cash.This fund is largely passively managed and aims to match the performance of a benchmark index orfund by investing in the same proportions as the index and also has some investment in a collectionof actively managed funds. Currently 75% of the fund is invested in the Balanced Passive fund and25% is invested in the External Balanced collection (currently giving investors access to five activefund managers). It’s suitable for investors who want a balanced managed fund that also offers accessto a blend of fund management investment styles.
n/a
Please see the Balanced Passive fund and the underlying balanced managed funds of the relevantinvestment management houses, currently Baillie Gifford, BlackRock, Newton, Société Générale Asset Management and UBS.
n/a
Average
28 June 2002
The fund invests mainly in equities of UK and overseas companies with the remainder invested in fixed interest investments and cash. It’s managed by UBS Global Asset Management (UBS), one of our investment partners. The fund is suitable for investors looking for a highly individualmanaged fund.
0.25%
IMA Balanced Managed pension sector average
UK equities 0-70%Global (incl UK) equities 0-80%Emerging market equities 0-13%UK bonds 0-40%Global (ex UK) bonds 0-40%Emerging market debt 0-12%High yield bonds 0-13%Cash 0-49%
Scottish Equitable UBS Balanced Managed3 SEDOL 3230451
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
30 31
Above average
1 April 1988
This is a specialist fund, which aims to maximise growth by investing in equities of UK companieswhose activities comply with a strict set of negative ethical screening criteria. It tends to invest insmaller companies as these usually find it easier to meet the strict requirements of the fund. Becauseof its restricted investment choice, the fund will have an above-average relative risk compared withthe average fund in the UK All-Companies Pension sector.
n/a
FTSE All-Share TR index
UK equities 80-100%Cash 0-20%
No hedging out of sterling is permitted.
Ethical SEDOL 784542
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
17 December 1985
This fund invests in a wide range of equities across all major European markets, specifically excludingthe UK. It generally holds equities in larger companies. It’s a mainstream European equity fund, whichaims to provide capital growth from a wide-ranging portfolio of holdings. The fund has an averagerelative risk compared with the average fund in the Association of British Insurers’ (ABI’s) EuropeanExcluding UK Pension sector.
n/a
FTSE Europe (ex UK) TR GBP index
European equities 90-100%Cash 0-10%
European SEDOL 780119
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 August 2002
This fund invests in a mix of the stockmarket managed funds from four investment managementhouses, currently Baillie Gifford, Invesco Perpetual, Lazard and Société Générale Asset Management,whose funds form part of our flexible managed range.
With this fund we regularly review the investment split and change the weightings between themanagers as necessary. The fund gives investors the opportunity for investment diversity withouthaving to favour one manager over another.
0.35%
Please see the underlying funds of the relevant investment managers, currently Baillie Gifford,Invesco Perpetual, Lazard and Société Générale Asset Management.
n/a
External Stockmarket Collection3 SEDOL 3230547
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
1 January 1998
This fund invests in companies of all sizes listed on European stock exchanges. The fund’s portfolio is wide-ranging, investing across all major European markets and most secondary markets, and canalso concentrate its investment on a few companies within those markets. The fund managers haveconsiderable flexibility to make investment decisions. This is a specialist fund, which aims to achievecapital growth through aggressive management of its investments. The fund has an above-averagerelative risk compared with the average fund in the European Excluding UK Pension sector.
n/a
FTSE Europe (ex UK) TR GBP index
European equities 90-100%Cash 0-10%
Typically, up to 25% may be invested in derivative instruments. This limit will include currency hedging.
European Tactical SEDOL 240345
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
32 33
Above average
31 August 1993
This fund invests mainly in equities by investing in a variety of Scottish Equitable regional andspecialist funds. It’s a flexible managed fund, which means up to 100% of the fund can be invested inequities and at least 20% of the fund must be in sterling-based investments. Its UK portfolio (whichmakes up the majority of the fund) is more concentrated than the average UK pension fund, whichmeans it holds equities in a smaller number of companies but with greater amounts invested in each.Our fund managers believe that they can outperform the Lipper Flexible Managed sector median byactively managing both how much is invested in each asset class (for example equities, bonds andcash) and stock selection. The fund’s investment in equities, bonds and cash may be very differentfrom the market average. The fund aims to provide superior long-term growth.
n/a
Lipper Flexible Managed pension sector median
UK equities 35-75%US equities 0-30%European equities 0-30%Japanese equities 0-20%Pacific equities 0-20%Emerging markets 0-10%Bonds and fixed interest 0-30%Cash 0-20%
Global SEDOL 790668
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 November 2002
This fund invests in equities in all major regions, based on equal investment in the UK and overseas,for long-term growth. The fund invests 50% in UK equities and 50% in overseas equities and is passively managed. We regularly rebalance the investments to maintain the equal weightingbetween UK and overseas markets.
n/a
A composite benchmark comprising 50% FTSE All-Share index and 50% FTSE World (ex UK) index.
n/a
Global Equity Tracker SEDOL 3232673
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 July 2004
This fund invests mainly in equities of companies listed outside the UK. It’s a passive fund whosegeographical spread of investments aims to produce returns that closely track its benchmark, the FTSE World (ex UK) index. This index represents all major global stock markets outside the UK.
n/a
FTSE World (ex UK) TR GBP index
n/a
Overseas Equity Tracker SEDOL B046510
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
9 January 1983
This fund invests internationally in stock markets specifically excluding the UK. It invests broadly inline with market average asset allocation (in this case the mix of geographical and industrial sectors)through a number of our regional and specialist funds. This is a mainstream international equity fund,which aims to achieve long-term capital growth.
n/a
Russell/Mellon CAPS Overseas equity sector median
US equities 20-40%European equities 30-50%Japanese equities 0-20%Pacific equities 0-20%Emerging markets 0-15%Cash 0-15%
International SEDOL 782900
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
1 December 1985
This is a mainstream US equity fund which aims to provide capital growth by investing mainly in largecompanies listed on the North American stock exchanges. The fund’s main focus is US equities but itcan sometimes hold a small amount of Canadian equities.
n/a
S&P 500 TR index
US & Canadian equities 90-100%Cash 0-10%
Typically, up to 25% may be invested in index futures. Up to 10% may be held in cash balances.
North American SEDOL 780090
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
34 35
Above average
31 December 1996
This fund aims for long-term capital growth by investing in world stock markets other than the UK. It’s an actively managed fund directly investing in equities of overseas companies and has greaterfreedom of investment than the typical mainstream international fund. This means that the fund canmake large investments in markets that the manager feels offer attractive growth potential. It alsomeans the fund can adopt a defensive strategy during times of uncertainty, significantly reducinginvestment in any less favoured markets.
n/a
CAPS Overseas Equity sector median
US equities 0-70%European equities 0-50%Japanese equities 0-50%Pacific equities 0-50%Emerging markets 0-20%Latin American equities 0-20%Cash 0-20%
Overseas Tactical SEDOL 791467
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 January 2007
This fund aims to maximise total return (income plus capital) by investing in global fixed incomeinvestments, in any currency, ranging from AAA government bonds through to high yield andemerging market corporate bonds.
The fund invests at least 50% in sterling bonds and bonds in other currencies that will be hedgedback to sterling. The effect of currency changes can have a significant impact on the value ofinvestments, so hedging is used to help minimise the effect of those changes and so helps to manage risk.
0.65%
Lehman Global Aggregate index
Fixed interest securities 80-100%Cash 0-20%
Scottish Equitable AEGON Global Bond1,2 SEDOL B1VRKB7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 October 1993
This fund aims to maximise total return from capital and net income combined. It invests principally in the UK companies that form the bottom 10% of the UK stock market based on their marketcapitalisation. Market capitalisation is the value of a company, based on the price of its sharesmultiplied by the number of shares issued.
0.7%
FTSE Small Cap (ex IT) index
UK equities 80-100%Cash 0-20%
Scottish Equitable AEGON UK Smaller Companies1,2 SEDOL B1VRL58
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 June 2007
The fund aims to maximise total return (income plus capital) by investing in an actively managedportfolio of equities and equity-type securities in companies based in the UK, mainly doing businessin the UK or listed on the UK stock market. It can invest in small, medium and large companiesidentified as the best prospects by the AEGON Asset Management UK Equity Team.
The fund invests in a relatively small portfolio of UK equities and because it invests in fewercompanies than mainstream UK equity funds, the fund carries more risk than a fund spread across a larger number of holdings.
0.65%
FTSE All-Share TR index
UK equities 80-100%Cash 0-20%
Scottish Equitable AEGON UK Opportunities1,2 SEDOL B2481T9
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 January 2007
This fund aims to maximise total return (income plus capital) by investing in a portfolio of predominantlyhigh yield bonds, selected investment grade bonds and cash. The fund may hold sterling bonds and bonds in other currencies hedged back to sterling. The effect of currency changes can have a significant impact on the value of investments, so hedging is used to help minimise the effect ofthose changes and so helps to manage risk.
0.6%
50% Merrill Lynch High Yield index/50% Lehman Dollar High Yield index
At least 80% of the fund’s assets invested in Sterling denominated (or hedged back to sterling) and atleast 20% of the fund’s assets invested in below BBB minus bonds as measured by either Standard &Poor’s or equivalent convertibles or preference shares.
Cash 0-20%
Scottish Equitable AEGON High Yield Bond1,2 SEDOL B1VRKH3
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
36 37
Above average
20 October 2005
This fund invests mainly in the equities of UK companies and is managed by Artemis, one of ourinvestment partners. Artemis use their own stock screening system called SmartGARP whichsystematically and unemotionally identifies companies that are growing faster than the market or areunder-owned by institutions. The fund tends to invest around 80% in the equities of larger companiesmeasured by market capitalisation.
0.85%
FTSE All-Share TR index
UK equities 90-100%Overseas equities 0-20%Cash 0-10%
Scottish Equitable Artemis Capital1,2 SEDOL B0MTK71
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
17 July 2006
This fund invests mainly in UK equities and in companies that are headquartered or have a significantpart of their activities in the UK that are quoted on a regulated market outside the UK. It aims toprovide long-term capital growth by exploiting special situations. It’s managed by Artemis, one of our investment partners.
0.8%
FTSE All-Share TR index
UK equities 90-100%Overseas equities 0-20%Cash 0-10%
Scottish Equitable Artemis UK Special Situations1,2 SEDOL B19VQ91
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
20 October 2005
This fund invests mainly in the equities of UK companies and is managed by Artemis, one of ourinvestment partners. The fund manager chooses companies with the aim of providing rising incometogether with some capital appreciation over time. Artemis pays particular attention to the ‘free cashflow’ of companies as it’s a strong indicator of a company’s ability to pay dividends.
0.7%
FTSE All-Share TR index
UK equities 70-100%European equities 0-20%Bonds and fixed interest 0-10%Cash 0-10%
Scottish Equitable Artemis Income1,2 SEDOL B0MTK93
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 August 2002
The fund aims for long-term growth by investing mainly in the equities of UK and overseas companies. It’s managed by Baillie Gifford, one of our investment partners. The fund is suitable for investors looking for a highly individual managed fund.
0.35%
A composite benchmark based on 60% of the FTSE All-Share index and 40% of an overseascomposite (equally weighted between America, Europe and the Pacific Basin) based on thecorresponding FTSE indices.
UK equities 50-70%US equities 8-18%European equities 8-18%Japanese equities 2-12%Pacific equities 2-12%Emerging markets 0-3%Cash 0-5%
Scottish Equitable Baillie Gifford Stockmarket Managed3 SEDOL 3230503
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 May 2007
Aims to achieve a high level of total return by investing in a diversified portfolio consisting mainly ofsub-investment grade UK and overseas corporate bonds. There are no restrictions on the duration of the bonds held within the fund. A portion of the fund may be invested in other assets, includingderivatives, both for investment as well as hedging purposes.
0.55%
Merrill Lynch Euro High Yield 3% Constrained TR index
Fixed interest 99.8-100%Cash 0-0.2%
Scottish Equitable Baillie Gifford High Yield Bond1,2 SEDOL B2481Y4
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
16 August 2007
This fund aims to achieve capital growth by investing in a geographically diversified portfolio ofequities of international companies it believes offers above-average growth prospects. It can alsoinvest up to 10% in collective investment schemes and deposits. It can invest in any country exceptthe UK and tends to invest in larger companies in the developed world.
0.4%
MSCI World TR index
The fund is not permitted to hold more than 15% over the benchmark weighting in North American equities.The fund is not permitted to hold more than 15% over the benchmark weighting in European equities.The fund is not permitted to hold more than 15% over the benchmark weighting in Japanese equities.The fund is not permitted to hold more than 15% over the benchmark weighting in Asia Pacific equities.
Warrants 0-5%Cash 0-25%
The fund is permitted to hedge foreign currency and invest in futures derivatives in order to reduce investment risk.
Scottish Equitable Baillie Gifford International1,2 SEDOL B248229
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
38 39
Above average
31 July 2006
This fund invests in two established funds managed by Barclays Global Investors, one of ourinvestment partners. The two funds are the BGI UK Equity Index fund and the BGI Worldwide (ex UK)Index fund. It invests approximately 40% in UK equities and 60% in overseas equities, split equallybetween the USA, Europe excluding the UK and the Far East. The fund is passively managed andaims to provide returns consistent with the markets in which it invests. BGI uses the ‘full replication’approach for the majority of its passive funds. In other words it invests in the same shares as theindex it’s aiming to match.
n/a
40% FTSE All-Share index/60% FTSE All-World Developed (ex UK) index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI 40/60 Global Equity Index SEDOL B1G2WQ6
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
2 February 2005
This fund invests in two established funds managed by Barclays Global Investors, one of ourinvestment partners. The two funds are the BGI UK Equity Index fund and the BGI Worldwide(ex UK) Equity Index fund. It invests approximately 50% in UK equities and 50% in overseas equities,split equally between the USA, Europe excluding the UK and the Far East.
The fund is passively managed and aims to provide returns consistent with the markets it investsin. BGI uses the ‘full replication’ approach for the majority of its passive funds, in other words itinvests in the same shares as the index it’s aiming to match.
n/a
BGI Internal Composite index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI 50/50 Global Equity Index SEDOL B1G5113
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 January 2007
This fund is actively managed and aims to achieve capital growth by investing in equities of UKcompanies across any economic sector. The fund aims to outperform the FTSE All-Share indexby 1.0 — 1.5% a year (gross of fees) over rolling three year periods. Around 90% of the fund is investedin UK large cap companies but it also invests across other company size categories to create a welldiversified portfolio and help lower risk.
0.35%
FTSE All-Share TR index
UK equities 95-100%Cash 0-5%
Scottish Equitable Baillie Gifford UK Equity3 SEDOL B1VRK17
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
2 February 2005
This fund invests in the equities of UK companies and aims to achieve a return that’s consistentwith the return of the FTSE All-Share index — widely regarded as the benchmark for pension fundinvestment in shares of companies in the UK. It’s managed by Barclays Global Investors (BGI),one of our investment partners.
n/a
FTSE All-Share TR index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI UK Equity Index SEDOL B1G5221
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
17 July 2006
This fund invests in a variety of large and small US companies, offering both a wide spread within the US market and opportunities for growth in the future.
It’s managed by Barclays Global Investors, one of our investment partners.
The fund is passively managed and aims to match the performance of a particular index, in this case,the FTSE All-World USA Index. This index is widely regarded as the benchmark for UK pension fundinvestment in shares of companies in the USA.
BGI uses the ‘full replication’ approach for the majority of its passive funds, in other words it investsin the same shares and in the same proportions as its index fund.
n/a
FTSE All-World USA TR GBP index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI US Equity Index SEDOL B1G5265
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
17 July 2006
This fund invests in the equities of European companies and is passively managed and aims to matchthe performance of a particular index, in this case, the FTSE All-World Developed Europe (ex UK)index. This index is widely regarded as the benchmark for UK pension fund investment in Europeanequities. The fund is managed by Barclays Global Investors (BGI), one of our investment partners.
n/a
FTSE All-World Europe (ex UK) Developed TR index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI European Equity Index SEDOL B1G51N5
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
40 41
Above average
31 August 2005
This fund aims to achieve long-term capital growth by investing primarily in equities of continentalEuropean companies. The fund is likely to have a bias towards medium-sized and smaller companiesalthough it isn’t restricted to a particular company size or industry. The fund is managed by drawingon Fidelity’s extensive European research team. It aims to identify undervalued or underperformingequities that will give strong and sustainable growth at a reasonable price.
1.25%
MSCI Europe (ex UK) TR index
European equities 95-100%Cash 0-5%
Scottish Equitable Fidelity European1,2 SEDOL B0K8NQ0
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
2 February 2005
This fund invests in the equities of overseas companies from the European, Japanese, Far East, US and Canadian markets. It’s passively managed and aims to match the performance of a particularindex, in this case, the FTSE All-World Developed (ex UK) index. The fund is managed by BarclaysGlobal Investors, one of our investment partners.
BGI uses the ‘full replication’ approach for the majority of its passive funds, in other words it investsin the same shares as the index it’s aiming to match.
n/a
FTSE All-World Developed (ex UK) TR index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI World (Ex UK) Equity Index SEDOL B1G52F4
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 August 2005
The fund aims for long-term growth by investing in equities of companies all over the world, with the emphasis on the UK. It’s managed by Fidelity, one of our investment partners. Fidelity has a three-tier investment approach, separating stock selection, fund selection and asset allocation (in this case mainly the mix of geographical and industrial sectors), with the lead manager makingsure that stock-picking is the main driver of performance.
1.2%
60% MSCI World TR index/40% FTSE All-Share index.
UK equities 40-50%Overseas equities 50-60%Cash 0-5%
Scottish Equitable Fidelity WealthBuilder1,2 SEDOL B0K9D18
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 August 1993
This fund aims for long-term growth by investing mainly in equities of UK and overseas companies. It aims to achieve above-average investment returns. The fund focuses on stock selection to generateperformance from a quantitative ‘bottom-up’ investment process (in other words it puts the emphasison picking the right equity rather than investing in a specific region or sector and focusing on keyperformance measures).
It’s managed by Invesco Perpetual, one of our investment partners.
0.30%
Lipper Flexible Managed pension sector average
UK equities 50-60%US equities 5-15%European equities 15-25%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Cash 0-10%
Scottish Equitable Invesco Perpetual Stockmarket Managed3 SEDOL 3230514
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 August 2005
This fund aims to achieve a reasonable level of income, together with capital growth. The fund invests primarily in equities of companies listed in the UK, with the balance invested internationally.In order to meet the fund’s objective, the manager may include other, non-share, investments that are considered appropriate, in other words collective investment schemes, warrants and otherpermitted investments and transactions.
It’s managed by Invesco Perpetual, one of our investment partners.
0.95%
FTSE All-Share TR index
UK equities 90-100%US equities 0-10%Cash 0-5%
Scottish Equitable Invesco Perpetual Income1,2 SEDOL B0K9Y37
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 August 2005
This fund aims to achieve a long-term return above the average typically achieved from NorthAmerican stock markets. It does this by investing in companies with registered offices in NorthAmerica, who predominantly operate in North America, or are holding companies which owncompanies registered there. It’s managed by Gartmore, one of our investment partners. The fund has a bias towards small- and medium-sized companies with investment mainly in the USA. It mayalso invest in other permitted investments.
0.90%
S&P 500 TR index
US equities 95-100%Cash 0-5%
Scottish Equitable Gartmore US Opportunities1,2 SEDOL B0K9XZ2
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
42 43
Above average
19 June 2006
This fund primarily invests in a portfolio of UK equities and aims to achieve long term capital growthby selecting the best growth and value prospects. It’s managed by JPMorgan Asset Management, one of our investment partners.
0.95%
FTSE All-Share TR index
Equities 97-100%Cash 0-3%
Scottish Equitable JPMorgan Premier Equity Growth1,2 SEDOL B19WR24
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 November 2006
This fund invests with the aim of maximising long-term growth. It invests primarily in continentalEuropean equities, building a portfolio that’s fully focused on producing the highest returns. It’s managed by JPMorgan Asset Management, one of our investment partners.
The fund is unconstrained by benchmark, country, size or sector. The fund manager focuses onunder-recognised growth opportunities by applying an active approach to stock-picking, rigorousfundamental analysis and a desire to exploit inefficiencies in the European stock markets.
0.95%
FTSE All-World Europe (ex UK) TR index
European equities 90-100%Cash 0-10%
Scottish Equitable JPMorgan Europe Dynamic ex-UK1,2 SEDOL B1NV0V7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 June 2006
This fund primarily invests in a portfolio of US equities and aims to achieve long term capital growthby selecting the best growth and value prospects. It’s managed by JPMorgan Asset Management,one of our investment partners.
0.95%
S&P 500 TR index
US equities 90-100%Cash 0-10%
Scottish Equitable JPMorgan US1,2 SEDOL B19WR68
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
1 January 1998
This fund invests in smaller companies whose shares are listed on European stock exchanges. It’s managed by Lazard Asset Management, one of our investment partners. Smaller companies are defined as those whose shares make up the bottom 10% of the market (or below US$5 billion,whichever is greater), by market capitalisation.
The fund invests in all major European markets and may also invest in developing European countrieswhen appropriate. This is a specialist fund, which aims to achieve capital growth over the medium to longer term — subject to short-term fluctuations in value. How it performs against a benchmark is less relevant.
Until December 2005, this fund was known as the European Smaller Companies fund.
This fund’s Association of British Insurers (ABI) sector classification changed from European Excluding UK to European Including UK and so we only show fund performance for the period since that change. Please contact us if you want information on the fund performance for the period before the change.
0.45%
MSCI Europe Small Cap TR USD index
European equities 80-100%Cash 0-20%
Although rarely used, the fund is allowed to invest up to 10% in index futures and hedge regional currencies for up to 10% of the fund. Up to 10% may be held in sterling cash balances or back index futures.
Scottish Equitable Lazard European Smaller Companies1,2 SEDOL 240334
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 August 2002
This fund aims for long-term growth by investing mainly in UK and overseas companies. It’s managed by Lazard, one of our investment partners. This fund is suitable for investors looking for a highly individual, managed fund.
0.35%
A composite benchmark comprising 50% FTSE All-Share index, 50% FTSE World (ex UK) index
UK equities 50-60%US equities 0-40%European equities 0-40%Japanese equities 0-17.5%Pacific equities 0-7.5%
Scottish Equitable Lazard Stockmarket Managed3 SEDOL 3230525
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
44 45
Above average
31 July 2001
This fund invests in a global spread of investments and focuses on world-class brands with globalpresence and reach, including companies such as Microsoft, Toyota and British American Tobacco.The fund is managed by BlackRock, one of our investment partners. It’s a global equity fund, whichaims to provide capital growth from a broad portfolio of world-class stocks.
0.3%
MSCI World Free TR index
n/a
Scottish Equitable BlackRock Olympian Growth3 SEDOL 3075685
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
20 April 2007
This fund aims to achieve long-term capital growth for investors. It’s managed by BlackRock, one ofour investment partners. It invests primarily in the equities of larger companies incorporated or listedin the UK and may also invest in collective investment schemes.
0.85%
FTSE All-Share TR index
UK equities 0-100%Cash 0-10%
Scottish Equitable BlackRock UK1,2 SEDOL B1Y96F6
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 September 2005
This fund aims to achieve long-term capital growth by investing in a concentrated portfolio of UK equities. It’s managed by Lazard Asset Management, one of our investment partners.
0.65%
FTSE All-Share TR index
UK equities 0-100%Cash 0-5%
Scottish Equitable Lazard UK Alpha1,2 SEDOL B0MTKN7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
20 April 2007
This fund aims to achieve long-term capital growth for investors. It invests primarily in equities of small- or medium-sized companies incorporated or listed in the UK. It’s managed by BlackRock,one of our investment partners.
The fund may also invest in collective investment schemes, for example unit trusts, open-endedinvestment companies (OEICs) and other types of investment managed by third parties. Small- andmedium-sized companies are those whose market capitalisation is lower than that of companies inthe FTSE 100 Index.
0.85%
IMA UK All Companies sector average
UK equities 90-100%Overseas equities 0-20%Cash 0-10%
Scottish Equitable BlackRock UK Special Situations1,2 SEDOL B1Y9BM8
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
20 April 2007
This fund aims to achieve long-term capital growth for investors. It invests primarily in equities ofsmaller companies incorporated or listed in the UK that the manager considers to have above-averagegrowth prospects. The fund may also invest in collective investment schemes, for example unit trusts,open-ended investment companies (OEICs) and other types of investment managed by third parties.Smaller companies are those that form the bottom 10% of the UK stock market based on their market capitalisation.
The fund is managed by BlackRock, one of our investment partners.
0.85%
Hoare Govett Small Cap Extended (ex IT) TR index
UK equities 80-100%Cash 0-20%
Scottish Equitable BlackRock UK Smaller Companies1,2 SEDOL B1Y9B84
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
46 47
Above average
30 April 2007
This fund aims to achieve long-term capital growth for investors. It invests primarily in equities ofcompanies incorporated or listed in the USA that the fund manager considers exhibit either growth or value investment characteristics. The manager will change the investment emphasis as the marketoutlook warrants. The fund may also invest in collective investment schemes, for example unit trusts,open-ended investment companies (OEICs) and other types of investment managed by third parties.It’s managed by BlackRock, one of our investment partners.
0.85%
Russell 1000 TR index
US equities 0-100%Cash 0-5%
Scottish Equitable BlackRock US Dynamic1,2 SEDOL B1Y9C70
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
7 May 2007
This fund aims to invest in overseas equities which pay a higher-than-average income. Additionally,it aims to achieve long-term capital growth. It’s managed by Newton, one of our investment partners.This fund is likely to appeal to investors who have already established UK equity income investmentsand who want to reduce risk by broadening their investment globally.
This fund has a disciplined investment process with strict buy-and-sell criteria. Stocks must provide a yield of 50% more than the FTSE World GBP index to be considered for inclusion and will be soldwhen their yield delivers less than 25% above the index. Yield is simply a reflection of the yearlyincome payable divided by the current share price, expressed as a percentage. This approach allowsthe fund to participate fully in continued global growth, while the emphasis on dividend income givesthe fund the potential for consistent returns.
0.6%
FTSE World TR GBP index
Equities and convertibles 80-100%Cash 0-20%
Scottish Equitable Newton Global Higher Income1,2 SEDOL B1Y9CH0
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 August 2002
This fund aims for long-term growth by investing mainly in equities of UK and overseas companies.It’s managed by Newton, one of our investment partners. The fund is suitable for investors looking for a highly individual managed fund.
0.4%
IMA Sector Active Managed index/FTSE World index
UK equities 45-60%US equities 0-10%European equities 10-20%Japanese equities 0-10%Pacific equities 5-15%Emerging markets 0-5%Bonds and fixed interest 2-10%Cash 0-10%
Scottish Equitable Newton Stockmarket Managed3 SEDOL 3230536
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
28 February 2003
The manager of managers concept is that an independent specialist investment manager constructsa bespoke portfolio made up from funds managed by fund managers it considers are ‘best in class’.Our manager of managers is Northern Trust.
In line with this concept, this fund invests in all major asset classes (equities, bonds and cash) andregions using the skills of these ‘best in class’ managers. Northern Trust believes this approach producesa well diversified portfolio that increases the chances of achieving consistent better performance than itsbenchmark, currently equally split between UK investments and those in the rest of the world.
0.55%
50% FTSE All-Share index/50% FTSE World (ex UK) index
n/a
Scottish Equitable Northern Trust Stockmarket Manager of Managers3 SEDOL 3284481
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
1 January 1998
The fund invests in equities listed on the UK stock exchange. The focus is on quality stocks thatprovide a yield of at least 15% above that of the FTSE All-Share index. Yield is simply a reflection ofthe yearly income payable divided by the current share price, expressed as a percentage. The fund isdesigned to provide an attractive level of income together with the potential for long-term capitalgrowth. It’s managed by Newton, one of our investment partners.
From launch until December 2004, this fund was known as the UK Equity Income fund and wasmanaged by AEGON Asset Management. It now invests directly in the Newton Higher Income fund.
0.4%
FTSE All-Share TR index
Equities and convertibles 80-100%Cash 0-20%
Scottish Equitable Newton Higher Income1,2 SEDOL 240356
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
48 49
Above average
18 September 2006
This fund aims to achieve long-term growth through income generation by investing in equities of high quality UK companies that can grow their dividends at an above-average rate. Many of thesecompanies also have the potential for capital growth.
The manager focuses on equities that trade at a relatively low valuation compared with the company’sassets or profit growth prospects. These equities tend to carry a high yield (income distributions, or dividends, as a percentage of the share price). However, to achieve a growing level of income, the manager invests in equities where they believe the company will be able to continue paying out a high level of income through growing profits. So, a typical portfolio holding will have a track record of producing strong returns on capital employed. The fund is managed by Schroder, one of our investment partners.
0.95%
FTSE All-Share TR index
UK equities 80-100%Global equities 0-10%Cash 0-10%
Scottish Equitable Schroder Income1,2 SEDOL B1JB486
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 November 2006
This fund invests in property securities all over the world, with the aim of maximising total return(income plus capital). Global property securities are companies that invest in property and are tradedon global stock exchanges in the same way as equities. The fund invests primarily in real estateinvestment trusts, equities and debt securities of property companies worldwide.
Schroder manages the fund in conjunction with European Investors Incorporated (EII), a specialistglobal property securities manager. This alliance combines Schroder’s global investment platformwith EII’s 18 years experience managing property securities.
1.05%
FTSE EPR/NAR Global TR index
Minimum of 75% of the fund invested in securities by developed market issuers.Minimum of 25% of the fund invested in US.Minimum of 25% of the fund invested in Europe.Maximum of 25% of the fund issued by ‘emerging market’ issuers as classified bythe MSCI Emerging Market countries.Maxiimum of 20% of the fund invested in any developed country(with the exception of the US, as noted above)Maximum of 5% of the fund in any ‘emerging market’ country,as classified by the MSCI Emerging Market countriesMaximum of 30% of the fund invested in hotel companies
Scottish Equitable Schroder Global Property Securities1,2 SEDOL B1NV103
Risk level
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
12 September 2005
This fund aims to achieve long-term capital growth by investing in the medium-sized companies listed on the FTSE Mid-250 Index. The main advantage of investing in Mid-250 companies is thatthese businesses often have greater potential for continued growth than their larger counterparts. It’s managed by Schroders, one of our investment partners.
1.0%
FTSE 250 Mid (ex IT) TR index
UK equities 95-100%Cash 0-5%
Scottish Equitable Schroder UK Mid-2501,2 SEDOL B0L2RQ9
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 October 1993
This fund invests in the overlooked but highly diverse UK smaller companies market. These investmentscan go up and down in value more than larger company investments and so are more risky. But thesecompanies offer exciting opportunities for investors. Good management strategies combined withsuccessful new products can mean a rapid increase in profits for such companies. Because equityprices can fluctuate so much, Schroders, rigorous stock-picking and research approach is essential.The fund invests in a small number of companies. This concentration means it has a higher risk thanfunds spread across a larger number of companies.
0.95%
FTSE Small Cap (ex IT) index
UK equities 80-100%Cash 0-20%
Scottish Equitable Schroder UK Smaller Companies1,2 SEDOL B1NV158
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
18 September 2006
This fund invests in equities of UK companies with the aim of delivering absolute returns rather thanfollowing an index — that is, it aims for positive returns regardless of index movements. It can investin UK companies in different industries and commercial sectors and has a more concentratedportfolio than mainstream UK equity funds. This means that it only holds equities in a relatively smallnumber of companies — 20 to 40 — looking to identify those companies that it believes will deliversuperior returns. With such a concentration of holdings, the fund carries more risk than a fundinvested across a larger number of companies.
It’s managed by Schroders, one of our investment partners.
0.95%
FTSE All-Share TR index
UK equities 80-100%Cash 0-20%
Scottish Equitable Schroder UK Alpha Plus1,2 SEDOL B1JB4C0
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove average
50 51
Above average
31 July 2002
This fund aims for long-term growth by investing mainly in equities of UK and overseas companies.This type of fund can invest up to 100% in equities and at least 20% of the fund must be insterling-based investments. It’s managed by Société Générale Asset Management, one of ourinvestment partners.
The fund is suitable for investors looking for a highly individual managed fund.
0.35%
IMA Active Managed sector
UK equities 60-70%US equities 5-15%European equities 5-15%Japanese equities 0-10%Pacific equities 0-5%Emerging markets 0-5%Bonds and fixed interest 0-10%Cash 0-5%
Scottish Equitable SG Stockmarket Managed3 SEDOL 3230484
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 July 2002
This fund invests in shares globally for long-term growth. This type of fund can invest up to 100% inequities and at least 20% of the fund must be in sterling-based investments. It’s managed by UBSGlobal Asset Management (UBS), one of our investment partners.
The fund is suitable for investors looking for a highly individual managed fund.
0.30%
Lipper Flexible Managed pension sector median
UK equities 45-65%US equities 20-40%European equities 0-20%Japanese equities 0-15%Far East equities 0-10%
Scottish Equitable UBS Stockmarket Managed3 SEDOL 3230495
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
30 September 2005
This fund aims to achieve long-term capital growth through active management of a broad portfolioinvested mainly in US equities. It’s managed by UBS, one of our investment partners.
0.45%
Russell 1000 TR index
US equities 95-100%Cash 0-5%
Scottish Equitable UBS US Equity1,2 SEDOL B0MTKV5
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
9 January 1983
This fund invests in a broad range of equities, most of which are listed on the London StockExchange. The fund can invest in all major industrial sectors and may also invest in smaller companiesand cash from time to time. This is a mainstream UK equity fund, which aims to provide capitalgrowth from a well-diversified portfolio of holdings. This fund will normally have a below-averagerelative risk compared with the average fund in the UK All-Companies Pension sector.
n/a
FTSE All-Share TR index
UK equities 90-100%Smaller companies 0-15%Cash 0-10%
Typically, up to 25% may be invested in index futures. No hedging out of sterling is permitted.
UK Equity SEDOL 782870
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
1 September 1998
This fund invests mainly in equities of companies that promote environmental and social sustainabilityand avoids those that cause harm. The fund invests according to a set of positive criteria, whichguide it towards companies demonstrating socially and environmentally responsible behaviour, as wellas companies whose activities are for the benefit of humanity and the environment. The fund mayalso invest in bonds from time to time. This specialist fund maximises long-term growth frominvestment in mainly UK-quoted companies.
0.5%
FTSE All-Share TR index
UK equities 80-100%International equities 0-20%Cash 0-20%
This fund cannot invest in index futures.
Socially Responsible Equity1,2 SEDOL 431989
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
1 January 1998
This fund invests across all major industrial sectors in UK equities listed on the London StockExchange. The fund has a more concentrated portfolio than the average UK equity fund, in otherwords it invests in fewer stocks and in larger proportions than the average fund. It invests both incompanies that the manager believes are undervalued and those that have attractive future growthprospects. It’s a specialist fund, which aims to achieve capital growth from an actively managedportfolio of holdings.
n/a
FTSE All-Share TR index
Equities and convertibles 80-100%Cash 0-20%
UK Equity Tactical SEDOL 240293
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
52 53
Minim
al and below average
AverageA
bove averageH
igher
Above average
2 August 1999
This fund is a passively managed fund that aims to mirror the movements of the UK FTSE All-Shareindex before charges. The All-Share index includes around 98% of all listed companies in the UK,small, medium and large. So this fund gives investors a fairly broad exposure to the whole of the UK equity market.
n/a
FTSE All-Share TR index
It is envisaged that index futures will only be used to manage inflows of cash into the fund.
UK Index Tracker SEDOL 825452
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
29 October 1993
This fund invests in smaller companies listed on the London Stock Exchange. Smaller companies are defined as those in the lowest 10% by capitalisation of the FTSE Actuaries All-Share index.
The fund invests across a wide range of industrial sectors, in order to maximise the potential returnswhile spreading the risks inherent in investment in companies whose performance is highly sensitiveto fluctuations in the UK economic cycle. This is a specialist fund which aims to achieve capitalgrowth over the medium to longer term, subject to short-term fluctuations in value.
n/a
FTSE Small Cap (ex IT) index
UK equities 90-100%Cash 0-10%
Typically, up to 25% may be invested in index futures. No hedging out of sterling is permitted.
UK Smaller Companies SEDOL 790839
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
16 December 1985
This fund invests in listed Japanese companies across a wide range of industrial sectors. Generally,the fund invests mainly in equities of established companies where prospects for growth appearattractive, although it sometimes invests in equity-related products such as convertible bonds(bonds which can be converted into shares at a later date). It’s a mainstream Japanese equity fund,which aims to provide capital growth from a diversified portfolio of investments. The fund has anaverage relative risk compared with the average fund in the Japan Pension sector.
n/a
FTSE Japan TR index
Japanese equities 80-100%Cash 0-20%
Japan SEDOL 780131
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
16 December 1985
This fund invests in a broad range of companies listed on stock exchanges in the Pacific Basin,including Australasia and the Indian sub-continent, but specifically excluding Japan. The fund caninvest in all industrial sectors. It’s a mainstream Pacific equity fund, which aims to achieve long-termcapital growth.
0.05%
MSCI AC Asia Pacific (ex Japan) TR USD index
Pacific (ex Japan) equities 80-100%Cash 0-20%
Typically, up to 25% may be invested in index futures. Hedging of regional currencies is permitted for up to 25% of the fund.
Pacific SEDOL 780153
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
31 July 2006
This fund invests in a variety of large and small Japanese companies, spreading the risks of being tooexposed to one particular company or industrial and commercial sector but also offering opportunitiesfor growth in the future. It’s managed by Barclays Global Investors (BGI), one of our investment partners.
The fund is passively managed and aims to match the performance of a particular index, in this casethe FTSE All-World Japan index. This index is widely regarded as the benchmark for UK pension fundinvestment in equities of companies in Japan.
n/a
FTSE Japan TR GBP index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI Japanese Equity Index SEDOL B1G51V3
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
13 July 2006
This fund invests in a variety of large and small companies across the Australasian, Hong Kong, New Zealand and Singapore markets, spreading the risks of being too exposed to one particularmarket but also offering opportunities for growth in the future. It’s managed by Barclays GlobalInvestors (BGI), one of our investment partners.
It’s a passively managed fund and aims to match the performance of the FTSE All-World DevelopedAsia Pacific Excluding Japan Index. This index is widely regarded as the benchmark for UK pensionfund investment in equities of companies in the Pacific Rim.
n/a
FTSE All-World Asia Pacific (ex Japan) Developed TR index
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI Pacific Rim Equity Index SEDOL B1G51X5
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
21 December 2006
This fund aims to provide long-term capital growth from a portfolio primarily made up of equities listed on the stock exchanges throughout the Asian region, excluding Japan. It’s managed by Fidelity,one of our investment partners.
The manager tends to focus on mid- to large-capitalisation companies.
The fund favours high-quality stocks, where there’s a relatively low risk of financial and businessproblems. Cash flow position and dividend income are also key stock-picking factors. The fund tends to have no more than around 3% to 5% invested in cash.
1.3%
MSCI AC Far East (ex Japan) NR USD index
Asia Pacific equities 95-100%Other (cash, property, uninvested) 0-5%
Scottish Equitable Fidelity South East Asia1,2 SEDOL B1NV0B7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove averageH
igher
54 55
Higher
31 October 2005
This fund aims to achieve long-term capital growth. The fund invests in equities of large andmedium-sized companies in the Asia Pacific region (excluding Japan, but including Australasia).
It’s managed by First State Investments, one of our investment partners.
0.95%
MSCI AC Asia Pacific (ex Japan) index
Asia Pacific 90-100%Cash 0-10%
The fund generally aims to remain fully invested in equities. Currency hedging or derivatives are not employed.
Scottish Equitable First State Asia Pacific Leaders1,2 SEDOL B0V9VM4
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
18 December 2006
This fund invests with the aim of achieving capital growth in Asia and Australasia, excluding Japan. It intends to invest primarily in equities of companies in those regions, although it may include other Asian- and Australasian-related investments. It’s managed by Invesco Perpetual, one of ourinvestment partners. To achieve the fund’s objective, the fund managers may include investmentsthat they consider appropriate, for example money market instruments.
0.95%
MSCI AC Asia Pacific (ex Japan) TR USD index
Asia Pacific equities 90-100%Cash 0-10%
Scottish Equitable Invesco Perpetual Asian1,2 SEDOL B1NV0N9
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
30 June 2006
This fund invests with the aim of achieving capital growth over the long term. It invests primarily inequities of Japanese companies. Investing in the Japanese market can improve potential returns andrisk control in a global portfolio, as in the past the Japanese market hasn’t been strongly linked tomovements in other stock markets. The fund is managed by JPMorgan Asset Management, one of our investment partners.
JPMorgan Asset Management is one of the largest foreign fund managers in Japan, with an excellentin-depth knowledge of the Japanese equity market.
0.95%
TOPIX TR index
Japanese equities 90-100%Cash 0-10%
Scottish Equitable JPMorgan Japan1,2 SEDOL B19WR80
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
31 October 2005
This fund aims to achieve long-term capital growth. The fund invests mainly in equities of companiesworldwide that are engaged in the production and marketing of commodities such as gold and othermined products, and oil and gas. It’s managed by JPMorgan Asset Management, one of ourinvestment partners.
0.95%
IMA Specialist
n/a
Scottish Equitable JPMorgan Natural Resources1,2 SEDOL B0V9V02
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
30 April 2007
This is a specialised fund that aims to achieve long-term capital growth by investing in gold, mining and precious metal related companies. It tends to be volatile, which means its price can go up and down in value quite significantly from day to day. This makes it more suitable as a long-terminvestment and as part of a larger portfolio. It’s managed by BlackRock, one of our investmentpartners. BlackRock is particularly experienced in managing this type of fund.
0.95%
FTSE Gold Mines TR index
Gold, gems and precious metals equities 95-100%
Scottish Equitable BlackRock Gold & General1,2 SEDOL B1Y9678
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
12 September 2005
This fund aims to achieve capital growth by investing in Japanese equities. It’s managed by Schroder,one of our investment partners. Schroders focuses on companies with a proven track record and solid profits growth prospects which aren’t fully reflected in the equity price. As these valuationdiscrepancies are caused by short-term sentiment they tend to reduce in the long term as otherinvestors take advantage of these price anomalies.
0.95%
Topix TR index
Japanese equities 95-100%Cash 0-5%
Scottish Equitable Schroder Tokyo1,2 SEDOL B0L2RY7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
AverageA
bove averageH
igher
56 57
Higher
31 August 1993
This fund invests in companies operating in, or whose equities are listed in, the emerging markets ofAsia, Europe, Latin America and Africa. It’s managed by UBS, one of our investment partners. The fundtypically invests across all major emerging markets. This provides opportunities for capitalising on theabove-average returns that may be available from countries at an early stage of economic development.And the fund’s wide spread of investments helps reduce the inherent risks associated with thesemarkets. It’s a specialist fund, which aims to produce growth over the medium to longer term, subject to short-term fluctuations in value.
Until December 2005, this fund was known as the Emerging Markets fund.
0.45%
FTSE All-World Emerging TR USD index
Equities 90-100%Cash 0-10%
Typically, up to 10% may be invested in index futures. Up to 10% may be held in sterling cash balances or to back index futures positions.
Scottish Equitable UBS Global Emerging Markets Equity3 SEDOL 790679
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Higher
1 April 1998
This fund invests in companies involved in technology-intensive industries around the world. Suitable industries include manufacturers of computers and their components, software andcomputing services, telecommunications, pharmaceuticals, biotechnology, aerospace and electronics. The fund usually invests heavily in the US market because this is where there’s the highest concentration of technology companies. This is a specialist fund, which aims to provide capital growth from investing in niche markets.
n/a
MSCI World/Information Technology TR index
Global equities 90-100%Cash 0-10%
Technology SEDOL 267816
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Lifestyle funds
More about the two-stage approachof our lifestyle funds.
For this type of fund we use a two-stage approach. In the first stage we aim to build the investor’s pension fund. Then in the second stage, as their chosen retirement date approaches, we look to protect their annuity buying power, as well as taking into account their tax-free cash entitlement.
First stageWhile the investor is still some years from their chosen retirement date, they’ll have achoice of lifestyle funds to invest in. This range, graded according to their risk relative to other funds in our range, includes funds combining fixed interest and equities as well as funds mainly invested in overseas equities.
Second stageAs the investor approaches retirement (typically between five and seven years before their chosen retirement date), their pension fund will be switched, systematically andprogressively, into investments better suited to protect the annuity buying power of thefund (while taking into account their tax-free cash entitlement — and we assume theinvestor will take the maximum cash of 25%). These switches follow a set pattern and are free.
When an investor enters the second stage, their fund name will change to include the yearof their chosen retirement date. For example an investor due to retire in 2010 and who isinvested in the Balanced Lifestyle fund will see the fund name change to Balanced Lifestyle2010 on the statements we send them.
In the following lifestyle fund descriptions, we focus on the first stage of investmentdescribed above.
Minim
al and below average
58 59
Below average
20 December 1999
In the first stage of its investment, this lifestyle fund invests in UK equities and corporate bonds. It may also invest in bonds issued by the Government (both conventional and index-linked) and on occasion invest internationally if appropriate. It aims to provide a balanced return.
n/a
For the first stage of investment Lipper Cautious Managed pension sector median.
UK equities 40-60%UK fixed interest (gilts and sterling bonds) 40-60%UK convertibles 0-20%UK index-linked 0-20%International equities 0-5%Cash 0-20%
Typically, up to 10% may be invested in index futures. Hedging of exposure to overseas currenciesback to sterling is permitted for up to 5% of the fund.
Cautious Lifestyle4 SEDOL 3040326
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
31 July 2006
In the first stage of its investment, this lifestyle fund invests approximately 50% in equities and theremainder in fixed interest investments. The equity portion is shared between the UK and overseaswith the overseas element split equally between the USA, Europe (excluding the UK) and the Far East. The fixed interest portion is split equally between UK government securities (gilts) that havea maturity period of 15 years or longer, and sterling investment grade corporate bonds that have a maturity period of 15 years or longer. The fund is managed by Barclays Global Investors (BGI), one of our investment partners. BGI aims to provide returns consistent with the markets it invests in and uses the full replication approach for the majority of its passive funds, in other words it invests in the same proportions as the index fund.
n/a
Please see the benchmarks of the underlying funds.
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI 50/50 Bond & Equity Index Lifestyle4 SEDOL B1G2WW
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
20 December 1999
In the first stage of its investment, this lifestyle fund currently invests in a variety of ScottishEquitable regional and specialist funds. It invests in a similar mix of investments to the Association of British Insurers’ (ABI’s) Balanced Managed sector average. However, our fund managers believethat they can better the ABI’s Balanced Managed sector average by actively managing both the asset allocation (the mix of equities, bonds and cash) and stock selection. The larger portion ofthe portfolio will be invested in the UK. This is a diversified mainstream managed fund with a biastowards equities, which aims to provide consistent long-term growth.
n/a
For the first stage of investment Lipper Balanced Managed pension sector median.
UK equities 50-65%US equities 2-10%European equities 8-20%Japanese equities 0-10%Pacific equities 0-10%Emerging markets 0-5%Bonds and fixed interest 5-20%Cash 0-15%
Balanced Lifestyle4 SEDOL 3035924
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Below average
30 May 2003
In the first stage of its investment, this lifestyle fund invests 50% in the UK Fixed Interest fund and50% in the Global Equity Tracker fund. The UK Fixed Interest fund element invests in gilts, as well as other quality sterling fixed interest and convertible loans issued by UK corporations. This part ofthe investment is actively managed, aiming to produce attractive and consistent long-term returns.The Global Equity Tracker element invests in equities in all major regions, based on equal investmentin the UK and overseas, for long-term growth. This part of the investment is passively managed andaims to match the performance of a benchmark index or fund by investing in the same proportionsas the index, so it invests similarly to our other stockmarket managed funds.
n/a
For the first stage of investment please see the benchmarks of the underlying funds.
n/a
UK Fixed Interest & Global Equity Tracker Lifestyle4 SEDOL 3318131
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
Average
60 61
Average
30 September 2004
In the first stage of its investment, this lifestyle fund invests mainly in a wide spread of internationalequities, to spread the risk of being too heavily invested in one region. The remainder is invested in fixed interest investments and cash. During this first stage the fund is passively managed and aims to match the performance of the benchmark.
n/a
For the first stage of investment Lipper Balanced Managed pension sector median.
n/a
Balanced Passive Lifestyle4 SEDOL B046RW4
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
02 February 2005
In the first stage of investment, this lifestyle fund aims to produce consistent investment performancein line with the average balanced managed pension fund (as measured by the balanced section of the CAPS pooled fund survey), while avoiding any violent swings between the upper and lower ends of the pension fund performance league tables. The majority of this fund is invested in equities,which helps to meet the aim of providing returns of more than inflation, while the holdings in gilts,Index-Linked gilts, corporate bonds, overseas bonds and cash provide stability and help to spreadrisk within the fund.
The fund is managed by Barclays Global Investors (BGI), one of our investment partners. BGI aims to provide returns consistent with the markets it invests in and uses the full replication approach for the majority of its passive funds, in other words it invests in the same equities as the index fund.
n/a
For the first stage of investment CAPS Balanced Pooled fund median.
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI Consensus Lifestyle4 SEDOL B1G51F7
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
6 April 2001
In the first stage of its investment, this lifestyle fund invests mainly in a wide spread of internationalequities, to spread the risk of being too heavily invested in one region. The remainder is invested infixed interest investments and cash. During this first stage the fund is passively managed and aims tomatch the performance of the benchmark by investing in the same equities and in the sameproportions as the average fund in the benchmark.
From launch the fund was invested in the Balanced Lifestyle fund. Then from 1 November 2004 the underlying fund changed to the Balanced Passive Lifestyle fund.
n/a
For the first stage of investment Lipper Balanced Managed pension sector average.
n/a
Stakeholder Default4 SEDOL B03NG85
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Average
28 February 2002
In the first stage of its investment, this lifestyle fund invests mainly in a wide spread of internationalequities, to spread the risk of being too heavily invested in one region. The remainder is invested infixed interest investments and cash. During this first stage the fund is mainly passively managed andaims to match the performance of the benchmark. But it also has some investment in a collection ofactively managed balanced managed funds.
Currently 75% of the fund is invested in the Balanced Passive fund and 25% is invested in the ExternalBalanced Collection (currently giving investors access to five active fund managers). It’s suitable forinvestors who want a fund that offers some access to a blend of fund management investment styles.
n/a
For the first stage of investment please see the Balanced Passive fund and the underlying balanced managed funds of the relevant investment management houses, currently Baillie Gifford,BlackRock, Newton, Societe Generale Asset Management and UBS.
n/a
Universal Lifestyle Collection4 SEDOL 3144961
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 July 2006
In the first stage of its investment, this lifestyle fund invests in equities, both in the UK and overseasmarkets. The fund has approximately 40% invested in equities of UK companies. The remaining 60% is invested in overseas companies, split equally between the USA, Europe excluding the UK, and theFar East. During this stage the fund aims to provide returns consistent with the markets in which itinvests and uses the ‘full replication’ approach for the majority of its passive funds, in other words it invests in the same equities and in the same proportions as its index fund.
The fund is managed by Barclays Global Investors (BGI), one of our investment partners.
n/a
For the first stage of investment 40% FTSE All-Share/60% FTSE All-World Developed (ex UK) index.
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI 40/60 Global Equity Index Lifestyle4 SEDOL B1G2WN3
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Minim
al and below average
Average
Above average
2 February 2005
In the first stage of investment for this lifestyle fund it invests mainly in equities, both in the UK and overseas markets. The fund has approximately 50% invested in equities of UK companies. The remaining 50% is invested in overseas companies, split equally between the USA, Europeexcluding the UK, and the Far East. The fund aims to provide returns consistent with the markets it invests in and BGI uses the ‘full replication’ approach for the majority of its passive funds, in other words it invests in the same equities and in the same proportions as its index fund.
n/a
For the first stage of investment — 50% FTSE All-Share index/50% BGI Composite Overseas Equityindex.
This fund will invest fully within the asset ranges of its benchmark.
Scottish Equitable BGI 50/50 Global Equity Index Lifestyle4 SEDOL B1G2Y48
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
62 63
Above average
20 December 1999
In the first stage of its investment, this lifestyle fund invests mainly in equities, a variety of ScottishEquitable regional and specialist funds. The UK portion of the fund invests in fewer companies but to a greater extent than more mainstream UK pension funds. The proportion it invests in equities,bonds and cash may be very different from the market average. In the first stage, as an aggressivelymanaged fund, it aims to provide superior long-term growth.
n/a
For the first stage of investment — Lipper Flexible Managed pension sector median.
UK equities 35-75%US equities 0-30%European equities 0-30%Japanese equities 0-20%Pacific equities 0-20%Emerging markets 0-10%Bonds and fixed interest 0-30%Cash 0-20%
Dynamic Lifestyle4 SEDOL 3035894
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Above average
31 March 2003
In the first stage of its investment, this lifestyle fund invests in equities in all major regions, based on equal investment in the UK and overseas, for long-term growth. The fund invests 50% in UK equities and 50% in overseas equities and tracks the key market indices. We regularly rebalance where it’s invested to maintain the equal weighting between UK and overseas markets.
n/a
For the first stage of investment — A composite benchmark comprising 50% FTSE All-Share index and 50% FTSE World (ex UK) index.
n/a
Global Equity Tracker Lifestyle4 SEDOL 3284458
Risk rating
Launch date
Description
Current additional disclosableyearly charge/expenses
Fund manager’s benchmark
Current investment ranges
Glossary of terms
Actively managed/active managementThe fund manager decides on where to invest tooutperform the market average or benchmark.Compare with passively managed and aggressivelymanaged.
Aggressively managedThe fund manager decides on where to invest tooutperform the market average or benchmark. Their investment choice can vary more significantlyfrom that of the average or benchmark than atypical active management approach.
Asset allocationChoosing which region, industrial sector or mix ofinvestment type (for example equities, bonds andcash) to invest in.
Asset classThe different types of investment, for exampleequities, bonds or fixed interest, and cash.
BenchmarkThis is usually an index that we measure the fund’sperformance against.
Bottom-up This is an investment management style that putsthe emphasis on picking the right stock rather thaninvesting in a specific region or sector.
Disclosable yearly charge/expensesThis is an indication of the actual charges applyingto a fund as part of the management process. The charges listed are the ‘additional’ charges, in other words those charges above a base levelthat applies to all funds.
DurationThis is simply a measure of risk, expressed in years,that takes into consideration factors such as theregular income, maturity value, current yield andthe term of the bond. The longer the duration, the greater the risk.
Growth bias/Growth styleThis is where the emphasis is put on selectingcompanies whose earnings are expected to grow at an above-average rate.
Full replication approachThis is a passive investment strategy where thefund manager invests in exactly the same equities in the same proportion as the index or benchmarkthey’re aiming to track.
Market capitalisationMarket capitalisation is the value of a company,based on the price of its shares multiplied by thenumber of shares issued.
Passively managed/passive managementThe fund manager aims to match the performanceof a benchmark index or fund, in other wordsinvesting in the same proportions as the index.
Thematic investment philosophyWhere the fund manager identifies a market themethat may exist in other markets, and which theybelieve the fund can benefit from.
Top-downThis is an investment management style that putsthe emphasis on asset allocation, in other wordschoosing which region or mix of investment type(equities, bonds, cash) to invest in, and this is theprimary deciding factor, rather than looking atindividual equities.
Value bias/Value styleThis is where the emphasis is put on selectingcompanies who represent good value. For examplecharacteristics associated with such companiesinclude a high dividend yield and a low price/earnings ratio.
YieldYield is simply a reflection of the yearly incomepayable, divided by the current share price,expressed as a percentage.
Types of investmentCashCash is generally considered the least risky of allthe main investment types. This means its pricedoesn’t tend move much either up or down on adaily basis. The downside is that cash tends to havefar less potential to grow than other investmentsand in real terms, due to inflation, it can actuallyfall in value. This is why it’s most suited to investorsas a shorter term investment. Cash generallyincludes money, typically held in bank deposits, and other types of money market investments,which pay the investor regular interest.
Collective investment schemesMost types of widely available retail funds arecollective investment schemes. They’re investmentvehicles that allow the average investor to pool theirmoney with other investors. Collective investmentschemes include unit trusts, investment trusts andopen-ended investment companies (OEICs).
Commercial propertyCommercial property funds typically invest direct in shops, retail warehouses, offices and industrialstorage and distribution centres. Direct propertyinvestment generates returns for investors througha combination of rental income and increasingproperty values. Some property funds also investindirectly by investing in equities of propertydevelopment companies and investment trusts.
A pooled property fund investing in a broad spreadof properties is generally considered a lower-riskinvestment suitable for medium- to long-terminvestment.
Corporate bondsCorporate bodies, for example companies, localauthorities and government agencies, issue bonds toraise money. The bonds are loans, which pay interestat a fixed rate until the loan is repaid by the corporatebody on a predetermined future date. A bond can bebought and sold by investors throughout its life and itsprice will vary depending on market ups and downs.When the bond is issued its tradeable value may varysignificantly from day to day. However, as therepayment date draws closer, the price will increasinglyreflect the repayment value and price movements willbecome smaller from day to day. The bonds arecategorised as short-, medium- or long-dated stocks,depending on the time left until the bond is repaid.Credit rating agencies like Moodys and Standard &Poor’s analyse corporate bonds and rate themaccording to a number of criteria, including thefinancial strength of the company issuing the bond.An investment grade bond will have a rating of AAAdown to BBB, which implies a higher credit rating witha lower risk of defaulting on the loan. A non- or sub-investment grade bond (also known as a high yieldbond) will have a rating of BB down to CCC, whichimplies a lower credit rating with a higher risk ofdefaulting on the loan. See also fixed interest.
Equities Equities (shares) offer part ownership in a company,unlike bonds, which are loans. Equities are generallyconsidered the most risky type of investment as theirvalue tends to fluctuate more than other investmenttypes, sometimes quite dramatically. However equitiesare widely considered to offer the greatest potential forreturns. Due to the potential for significant gains in valueor losses, equities are better suited to investors who areprepared to invest for the medium to long term.
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Fixed interestFixed interest investments, or bonds, are generallyconsidered a lower-risk investment. Bonds areissued by governments, local authorities orcompanies to raise capital. They’re generally issued for a fixed time period during whichinvestors are usually paid interest.
Because investors can buy and sell bonds readily,their price will go up and down depending onchanges in the interest that can be earned on otherinvestments, although usually not too dramatically.How risky a bond is depends on a number offactors such as the likelihood of the issuerdefaulting on the loan. So gilts (UK Governmentbonds), for example, are less risky than bondsissued by small companies.
GiltsSee UK government securities and fixed interest.
High yield bondsSee corporate bonds.
Investment grade bondsSee corporate bonds.
Non-investment bondsAlso known as ‘sub-investment bonds’. See corporate bonds.
SharesSee Equities.
StocksAnother word for equities or shares. See equities.
UK government securitiesAlso known as gilts. These are loan stocks withvarying maturity dates that are issued by theGovernment to fund the public sector net cashrequirement, and they pay a fixed rate of interestuntil their repayment date. Gilts are traded in thebond market and their value will be influenced by a number of underlying economic factors such as interest rates and inflation.
Types of fundBalanced managed fundBetween 40% and 85% of the fund is invested inequities (including preference shares, permanentinterest bearing shares and convertibles). A minimumof 50% of the fund must be in sterling-basedinvestments (including fixed interest investmentshedged back to sterling). See also managed fund.
Cautious managed fundBetween 20% and 60% of the fund is investedin shares (including preference shares, permanentinterest bearing shares and convertibles).A minimum of 60% of the fund must be insterling-based investments (including fixedinterest investments hedged back to sterling).See also managed fund.
Defensive managed fundA maximum of 35% of the fund can be invested inequities (including preference shares, permanentinterest bearing shares and convertibles). A minimumof 85% of the fund must be in sterling-basedinvestments (including fixed interest investmentshedged back to sterling). See also managed fund.
Flexible managed fund (previously stockmarket managed)A maximum of 100% of the fund can be invested inequities (including preference shares, permanentinterest bearing shares and convertibles). A minimumof 20% of the fund must be in sterling-basedinvestments. See also managed fund.
Lifestyle fundFor this type of fund we use a two-stage approach.In the first stage we aim to build your pension fund.Then in the second stage, as your chosen retirementdate approaches, we look to protect your annuitybuying power, as well as taking into account your tax-free cash entitlement. See page 58 for more details.
Managed fundA fund where fund managers make all the decisionson how, where and when to invest. Managed fundsinvest across the main asset classes (equities, fixedinterest or bonds and cash). Some may includeother asset classes such as property. Such fundsgive investors access to bond and stock marketsworldwide. The Association of British Insurers (ABI)has categorised managed funds as follows, accordingto how much they invest in equities: defensivemanaged, cautious managed, balanced managedand flexible managed (previously stockmarketmanaged).
Manager of managersThe manager of managers concept is that anindependent specialist investment manager (in ourcase Northern Trust) builds a tailored portfolio fortheir client (in this case us) made up from fundsmanaged by investment managers it considers are‘best in class’.
Regional and specialist fundsRegional funds tend to invest in a particular regionof the world like the Asia Pacific region and in aparticular range of assets. Specialist funds tend toinvest in quite a narrow range of investments likegold mining companies or companies that meetcertain ethical criteria.
Tracker fundA fund that aims to track or replicate the performanceof a particular index, for example the FTSE 100.Generally the fund does this by holding exactly the same stocks as the index and so performanceis more or less the same, before fund charges.However, some trackers use an approach known asstratified sampling. This approach invests in fewerstocks than the index, but focuses on selectingstocks that, combined, very closely reflect themovements of the broader market, before charges.
With-profits fundWith-profits funds are a type of pooled investmentwhich give relatively cautious investors someexposure to the stockmarket, but without too muchrisk. They invest in a mix of equities, bonds, propertyand cash, depending on the funds’ overall objectives.The funds, investment returns are subject to aprocess called smoothing, which reduces the effectsstockmarket fluctuations can have on investments,by holding back some of the return in good years inorder to add to the plan in years when investmentreturns are not so good. This means planholdershave the potential for less variable returns than ifthey invested in stockmarkets directly. Traditionalwith-profits and unitised with-profits funds offersome guarantee of return and add bonuses yearlyand at maturity, but if the plan is cashed in early a market value reduction may be imposed toprotect the remaining investors. New generationwith-profits funds don’t offer any guarantees but a smoothed unit price is calculated daily.
Our investment partners and what they say about their investment stylesAEGON Asset ManagementAEGON Asset Management believes in activeinvestment management in its chosen markets.These are the major quoted equity and fixed interestmarkets of the world. Investment opportunitieshappen throughout the business cycle and it adoptsa practical approach to identifying good investmentsfor its funds. This means its fund managers aren’ttied to one particular style which may only suitmarket conditions at a given time.
AEGON Asset Management believes teamwork isthe best way to achieve its goals. Strong leadership,combined with the empowerment of individualswithin the team, is key to its success.
Healthy debate — both formal and informal — is encouraged. Themes and ideas are challengedand there is buy-in from the team to any course of action. This makes sure there’s consistency of application.
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ArtemisArtemis has a bottom-up investment strategy (in other words it puts the emphasis on picking theright stock rather than investing in a specific regionor sector). It’s an active fund manager and gives its managers the freedom to adapt to changingmarkets; they’re encouraged to stock pick, to takeresponsibility and to put their collective selves onthe line. One of the foundations of the Artemisphilosophy is that personal trading isn’t permitted —Artemis managers must invest in Artemis funds, so their money goes into the market alongside that of their clients.
Baillie GiffordBaillie Gifford has a strong focus on individualcompanies and builds its portfolios from the bottomup (in other words it puts the emphasis on pickingthe right stock rather than investing in a specificregion or sector). It invests in well-run companieswith strong prospects for growth, and adopts amedium- to long-term timescale when investing in any particular stock.
Barclays Global Investors (BGI)Barclays Global Investors is one of the industry’slargest money managers. Through its 10 officesworldwide, it covers 50 of the world’s equity markets,18 bond markets and 50 currency markets.
Research teams in London, San Francisco, Sydney and Tokyo develop global insights intostrategies that meet investors’ needs no matterwhere they’re based.
BGI believes few can match its combination ofglobal reach and local solutions — a fact that’s not lost on individual investors, retirement plans,trusts, foundations, endowments, unions and otherinvestors around the world.
BlackRock A key feature of BlackRock’s investment philosophyis its belief that it can generate more value fromstock selection than asset allocation (this can beeither asset classes such as bonds, equities andcash or can also mean industrial or geographicalsectors). It doesn’t believe that having apredetermined house style of ‘growth’ or ‘value’ is ideal, concentrating instead on a robustinvestment process.
FidelityFidelity has a three-tier investment approach,separating stock selection, fund selection and assetallocation (the mix of equities, bonds and cash)decisions, with the lead manager making sure thatstock-picking is the main driver of performance.
First State InvestmentsFirst State builds portfolios primarily from thebottom up — in other words, stock selection is thekey driver. The company’s research objective is toidentify sensibly priced, high-quality companies thatcan deliver sustainable earnings growth. First Statebelieves that the selection of companies within a portfolio is the most important ingredient inproducing above-average long-term performance.
GartmoreGartmore’s investment specialists are concentratedinto small, dedicated teams. In these specialisedboutique units, their investment people have thefreedom to follow their own views and implementdecisions that best suit their particular area ofexpertise. This flexible structure operates within an overarching risk framework, and means theirmanagers now have greater discretion to add valuethrough their own flair and individual skill. As aresult, they’re fully accountable for their portfoliosand areas’ responsibilities.
Insight InvestmentsInsight has an innovative multi-manager teamstructure that focuses on locating and enhancingalpha. Alpha is a measure of extra value added by a fund manager. Insight applies a consistent,repeatable investment process using a wide rangeof proprietary tools as well as in-depth assessmentconcentrating on the qualities of an investment.
Invesco PerpetualInvesco Perpetual aims to achieve above-averageinvestment returns. It believes in multiple investmentstyles and products to suit each region and assetclass (different investment type). In the UK it has a team of over 50 investment professionals. Global equities, on the other hand, are chosenthrough a unique bottom-up stock-picking process(in other words the emphasis is on picking the right stock rather than investing in a specific region or sector) with a value bias, while bonds are managed by a global team of over 100investment professionals.
Investec Asset ManagementInvestec Asset Management is a specialistinvestment manager, providing a premier range of portfolio management services and products to institutional and individual investors.
Established in 1991, the firm has been built fromstart-up into an international business managing in excess of US $60billion (as at 30 June 2007) on behalf of third party clients. It’s grown fromdomestic roots in the UK and Southern Africa to a position where it serves a growing internationalclient base from the Americas, Europe, Asia theMiddle East and Africa and employs around 100investment professionals.
The firm seeks to create a profitable partnershipbetween clients, shareholders and employees, and to exceed expectations for both client serviceand performance.
JPMorgan Asset ManagementJPMorgan Asset Management doesn’t believe instar fund managers and has developed proven,transparent and disciplined investment processeswhich rely strictly on team-based research, stock-picking, portfolio construction and riskmanagement. This helps deliver style consistency and performance. It’s not tied to one particular style and seeks to identify market inefficiencies and take advantage of them.
LazardLazard has a bottom-up investment philosophy (in other words it puts the emphasis on picking theright stock rather than investing in a specific regionor sector). It believes that the returns a companygenerates on every pound invested measures howeffectively that company is putting its shareholders’capital to work. Lazard looks to balance risk againstreward to maximise returns in rising markets — and tominimise the effects when markets fall. So, it activelyseeks out companies that give higher-than-averagereturns, but are currently undervalued.
NewtonNewton has a disciplined and comprehensive teamapproach where economists, analysts and fundmanagers work closely together to generate
investment ideas. This is coupled with a distinctive‘global thematic’ approach to investment — it believesthat investment decisions need to be made in aglobal framework, as the prospects for nearly allcompanies are shaped and driven by powerfultrends and themes that cross many borders.
Northern TrustOur manager of managers is currently NorthernTrust. In line with the manager of managers concept,Northern Trust constructs portfolios made up from funds managed by fund managers it considersare ‘best in class’. Northern Trust believes thisapproach produces a highly-diversified portfoliothat increases the chances of achieving consistentbetter performance than fund benchmarks.
SchrodersSchroders focuses on companies with a proventrack record and solid profits growth prospectswhich aren’t fully reflected in the equity price. These valuation discrepancies are caused by short-term sentiment, and tend to narrow in thelong term as other investors take advantage ofthese price anomalies.
Société Générale Asset Management (SG)As an active manager (which means it decideswhere to invest to outperform the market average),Société Générale Asset Management aims tooutperform the market average at all stages of theeconomic cycle through solid research and theexperience of its team of investment managers.Stock selection is the key to adding value, withinasset allocation (the investment mix) guidelines.Timing is important and Société Générale AssetManagement has a preference for good companieswith real growth prospects rather than cheap shares.
UBSUBS Global Asset Management operates a clearlydefined and consistent investment philosophy. It identifies investments that are undervalued bymarkets against their fundamental worth. It callsthis a ‘price to intrinsic’ value philosophy and believesthis is the key to delivering superior investmentperformance. Its investment teams around the globehave access to extensive research and this isbalanced by a leading-edge risk management system.
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A particular feature of a number of funds is that they can make use of derivative instruments forefficient portfolio and currency management purposes. With this in mind, please read the informationwe give in the ‘Description’ section together with that under ‘Current investment ranges’.
Note 1Not available for individual stakeholder pensions.
Note 2Not available for group stakeholder pensions.
Note 3Available for stakeholder pensions if the chosencommission basis allows for the total yearly charge to meet stakeholder requirements.
Note 4Anyone invested in a lifestyle fund who hasn’t set uptheir annuity on their chosen retirement date will havetheir lifestyle funds transferred in to the Retirementfund. This consists of 75% in funds comprising fixedinterest, mainly long gilts, and 25% cash. The investor will remain invested in this fund until they let us knowotherwise.
To take account of changes, such as a change ineconomic circumstances, AEGON Scottish Equitablereserves the right to amend any of the lifestyle fundswithout notification. Among other things, the amendmentmay be to the underlying investment funds, number offunds used, and the method of switching (for examplethe frequency of switches). As with our other mainstreamunit-linked funds, AEGON Scottish Equitable may closeor wind up any lifestyle fund.
Lifestyle funds have restricted access — for furtherinformation please contact your local AEGON ScottishEquitable branch.
Note 5The Protected Growth fund is currently onlyavailable where the total yearly charge is 1.5%.
Note 6When there are more people leaving theproperty fund than investing in it, we may haveto sell properties to pay claims. If this is thecase, we may take one or other, or both, of the following steps to protect the remaininginvestors in any fund investing either directly inproperty or in other funds that are themselvesmainly invested in property: � When we feel there is a definite trend
towards more people selling units in thefunds than buying units, we may change ourvaluation basis to reflect this. This will resultin a drop in our fund price. This will be biggerthan for other types of funds because of theextra costs involved in buying and sellingproperty when compared with, say, shares.
� We may also, but not necessarily, delay actingon instructions to switch/cash in a client'sinvestment by anything up to 12 months ifmarket conditions make it difficult for themanager to sell properties at a fair price.
The value of properties is determined byindependent valuers appointed by a fundmanager and is generally a matter of theiropinion rather than fact.
Notes
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Short-term market conditions may result in investment outside normal ranges. AEGON Scottish Equitable reserves the right to vary both the manner in which the funds are invested and the investment ranges at its discretion.
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Scottish Equitable plc, Registered Office: Edinburgh Park, Edinburgh EH12 9SE. Registered in Scotland (No. 144517). Authorised and regulated by the Financial Services Authority. Member of the AEGON Group. www.aegonse.co.uk