OUTSTANDING. CPS/GAVC INVESTMENT OPTIONS

Transcription

1 CPS/GAVC INVESTMENT OPTIONS OUTSTANDING. We hold over 4% of the total value of the companies listed on the FTSE All-Share index that s over 75 billion on behalf of our customers *. *Figures correct as of December 2010 INSURANCE. SAVINGS. INVESTMENT MANAGEMENT.

2 2 CONTENTS. QUESTIONS AND ANSWERS What choice is there? What s an investment fund? What are the charges for investing in these funds? What are investment assets? RISK AND REWARD Can I reduce my investment risk? What are the different types of risk? How do you decide on the risk ratings for your funds? Spectrum of risk OUR FUNDS What information do you give me about the funds? Minimal risk funds Cautious risk funds Moderate risk funds High risk funds Lifestyle profiles FUND SPECIFIC RISKS

3 3 QUESTIONS AND ANSWERS. WHAT CHOICE IS THERE? When it comes to choosing an investment fund you need to consider all your options. At Legal & General we understand that every investor is different. That is why we offer a wide range of investment choices that aim to suit each member s attitude to risk. This includes lifestyle profiles that reduce investment risk near retirement, passively managed funds that track some of the world s largest financial indices and actively managed funds with specific fund objectives. Trustees of an occupational pension scheme need to consider members investment needs when selecting which funds to offer under their scheme. As well as selecting the funds they wish to offer, trustees also need to select a default fund into which benefits will be invested if a member makes no fund selection. Trustees may wish to consult with a professional adviser in relation to their obligations and the options they choose for their scheme. This guide is intended to be used by scheme trustees. It s for trustees to decide which funds are offered to members. It s our strong recommendation that in addition to providing details of the available funds and the charges, trustees also provide members with full details of the risks involved in investing. However, if you are reading this brochure as a member of a scheme, you should be aware that your employer or scheme trustees will decide which funds to make available for you to invest in. Therefore, it s possible that you might not be able to invest in all of the funds shown in this guide. You can get more information about the funds available for your particular scheme from your employer or scheme trustees.

4 4 OUR INTERNALLY MANAGED FUNDS. LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM) FUND NAME RISK RATING* PAGE Legal & General AAA Fixed Interest Over 15 Year Fund Cautious 31 Legal & General AAA Fixed Interest All Stocks Fund Cautious 28 Legal & General AAA-AA-A Corporate Bond All Stocks Index Fund Cautious 28 Legal & General AAA-AA-A Corporate Bond Over 15 Year Index Fund Cautious 31 Legal & General All Stocks Gilts Index Fund Cautious 26 Legal & General All Stocks Index-Linked Gilts Index Fund Cautious 27 Legal & General Asia Pacific (ex-japan) Developed Equity Index Fund High 41 Legal & General Asia Pacific (ex-japan) Equity Index Fund High 41 Legal & General Consensus Index Fund High 42 Legal & General Ethical Global Equity Index Fund High 37 Legal & General Ethical UK Equity Index Fund Moderate 35 Legal & General Europe (ex-uk) Equity Index Fund High 39 Legal & General Global Emerging Markets Equity Index Fund High 42 * This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information.

5 5 LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM) CONTINUED FUND NAME RISK RATING* PAGE Legal & General Global Equity (70:30) Index Fund High 38 Legal & General Global Equity Fixed Weights (50:50) Index Fund High 38 Legal & General Global Equity Fixed Weights (60:40) Index Fund High 38 Legal & General Japan Equity Index Fund High 41 Legal & General North America Equity Index Fund High 40 Legal & General Over 15 Year Gilts Index Fund Cautious 31 Legal & General Over 5 Year Index-Linked Gilts Index Fund Cautious 27 Legal & General Overseas Bond Index Fund Cautious 27 Legal & General Overseas Equity Consensus Index Fund High 42 Legal & General Pre-Retirement Fund Cautious 31 Legal & General UK Equity Index 5% Capped Fund Moderate 36 Legal & General UK Equity Index Fund Moderate 36 Legal & General World (ex-uk) Equity Index Fund High 39 * This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information.

6 6 LEGAL & GENERAL ACTIVE FUNDS RANGE These funds are provided by Legal & General Assurance Society (LGAS) Ltd and are managed by Legal & General Investment Management (LGIM). FUND NAME RISK RATING* PAGE Legal & General Cash Fund Minimal 26 Legal & General Distribution Fund Cautious 32 Legal & General Equity Fund Moderate 35 Legal & General Ethical Fund Moderate 35 Legal & General European Fund High 39 Legal & General Far Eastern Fund High 40 Legal & General Fixed Interest Fund Cautious 27 Legal & General Index-Linked Gilt Fund Cautious 27 Legal & General International Fund High 38 Legal & General Managed Fund Moderate 33 * This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information.

7 7 LEGAL & GENERAL ACTIVE FUNDS RANGE CONTINUED FUND NAME RISK RATING* PAGE Legal & General North American Fund High 40 Legal & General Property Fund Moderate 32 Legal & General UK Recovery Fund Moderate 36 Legal & General UK Smaller Companies Fund High 40 With Profits Cautious 29 * This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information.

8 8 OUR EXTERNALLY MANAGED FUNDS. When you invest in one of our externally managed funds, you will be buying units in a Legal & General fund and not directly in the externally managed fund itself. To find out more about this, please see What happens when I invest in an externally managed fund? on page 13. ABERDEEN UNIT TRUST MANAGERS LIMITED FUND NAME RISK RATING* EFAMC** PAGE Legal & General Aberdeen Global (ex UK) Equity Fund High 0.15% 37 Legal & General Aberdeen Global Growth Fund High 0.15% 37 Legal & General Aberdeen Multi-Asset (ex Property) Fund Moderate 0.15% 33 Legal & General Aberdeen UK Equity Fund Moderate 0.15% 34 ALLIANZ GLOBAL INVESTORS FUND NAME RISK RATING* EFAMC** PAGE Legal & General Allianz PIMCO Sterling Total Return Fund Cautious 0.85% 31 Legal & General Allianz PIMCO UK Corporate Bond Fund Cautious 0.85% 28 Legal & General Allianz RCM Dynamic Growth Fund High 0.15% 37 Legal & General Allianz RCM UK Equity Fund Moderate 0.15% 34 *This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information. **EFAMC = External Funds Annual Management Charge. Please see page 25 for more information.

9 9 GLG PARTNERS INVESTMENT FUNDS LIMITED (FORMALLY SOCIÉTÉ GÉNÉRALE INVESTMENT FUNDS LTD) FUND NAME RISK RATING* EFAMC** PAGE Legal & General GLG Balanced Fund Moderate 0.15% 33 Legal & General GLG Esprit Continental Europe Fund High 0.15% 39 Legal & General GLG Global Equity Fund High 0.15% 38 Legal & General GLG UK Growth Fund Moderate 0.15% 35 HENDERSON GLOBAL INVESTORS FUND NAME RISK RATING* EFAMC** PAGE Legal & General Henderson European Growth Fund High 1.00% 39 Legal & General Henderson High Yield Monthly Income Fund Cautious 0.90% 31 Legal & General Henderson Higher Income Fund Moderate 0.75% 34 Legal & General Henderson Sterling Bond Fund Cautious 0.75% 28 Legal & General Henderson UK Alpha Fund Moderate 1.10% 35 *This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information. **EFAMC = External Funds Annual Management Charge. Please see page 25 for more information.

10 10 INVESTEC FUND MANAGERS LIMITED FUND NAME RISK RATING* EFAMC** PAGE Legal & General Investec American Fund High 0.85% 40 Legal & General Investec Cautious Managed Fund Cautious 0.75% 32 Legal & General Investec Global Energy Fund High 0.85% 41 Legal & General Investec Global Free Enterprise Fund High 0.95% 38 Legal & General Investec UK Blue Chip Fund Moderate 0.95% 35 JPMORGAN ASSET MANAGEMENT FUND NAME RISK RATING* EFAMC** PAGE Legal & General JPM Life Growth Fund High 0.15% 39 Legal & General JPM Life Moderate Fund Moderate 0.15% 33 Legal & General JPM Life UK Disciplined Equity Fund Moderate 0.15% 36 *This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information. **EFAMC = External Funds Annual Management Charge. Please see page 25 for more information.

11 11 NEWTON FUNDS (BNY MELLON ASSET MANAGEMENT LIMITED) FUND NAME RISK RATING* EFAMC** PAGE Legal & General Newton Balanced Fund Moderate 0.15% 33 Legal & General Newton Higher Income Fund Moderate 0.15% 34 Legal & General Newton Income Fund Moderate 0.15% 34 Legal & General Newton International Bond Fund Moderate 0.40% 27 Legal & General Newton International Growth Fund High 0.15% 39 Legal & General Newton Managed Fund Moderate 0.40% 34 SCHRODERS FUND NAME RISK RATING* EFAMC** PAGE Legal & General Schroder Tokyo Fund High 0.90% 41 Legal & General Schroder UK Alpha Plus Fund High 0.95% 36 Legal & General Schroder UK Mid 250 Fund Moderate 1.10% 36 Legal & General Schroder UK Smaller Companies Fund High 1.05% 40 *This is Legal & General s view of the risk presented to an investor s money based on the investment being held in full for a minimum of five years. Please see page 20 for more information. **EFAMC = External Funds Annual Management Charge. Please see page 25 for more information.

12 12 WHAT S AN INVESTMENT FUND? The contributions to the pension plan are invested in one or more funds. The aim of each of these funds is to help the money grow (although there is no guarantee that this will happen). Different funds invest contributions in different ways some will simply invest in bank accounts and others invest in shares or property. We offer a wide range of investments to choose from. There are over 40 different investment funds managed by ourselves and over 30 funds managed by a variety of external managers. We also have a range of lifestyle profiles that aim to reduce investment risk as members near retirement. On pages 4 to 11, we ve listed all the funds in alphabetical order, together with the page of this brochure where you can find more information. WHAT ARE THE CHARGES FOR INVESTING IN THESE FUNDS? We have an annual management charge which we work out daily and take monthly for the month just passed by cashing in units of the fund in which members have invested. For all funds managed by an external fund manager there is an additional external funds annual management charge (EFAMC). The EFAMC percentage is shown under each external fund name. This is only charged on the value of the external funds held in an account. For members who invest in With Profits, an explicit charge will be made at the same rates as for plans investing in other funds. Additional deductions may also be required to cover the cost of guarantees and options for With Profits policies. These additional deductions are taken into account when we set bonus rates. Trustees should refer to the CPS or GAVC Key Features documents for more information about annual management charges. Trustees should also ensure that members are made aware of these.

13 13 WHAT HAPPENS WHEN I INVEST IN AN EXTERNALLY MANAGED FUND? When you invest in one of our externally managed funds, you will be buying units in a Legal & General fund. We will then use the money that you contribute to buy units in the manager s own fund (called the authorised fund ). For example, if you choose to invest in the Legal & General Newton Higher Income Fund, you will be buying units in this Legal & General fund. However, you won t hold any units in the authorised fund. We will then use the money that you ve invested to buy units in the authorised fund on your behalf. Please remember that we don t have any influence over how external fund managers manage their funds. If you d like to know more about what happens when you invest in an externally managed fund call us on (Call charges will vary and we may record and monitor calls.) The types of investments that different funds are made up of are known as Investment Assets. There are different risks associated with different funds and the investment assets they hold. We ll explain these further on in this guide.

14 14 WHAT ARE INVESTMENT ASSETS? Investment assets are what the funds invest in and they have a significant effect on a fund s performance. Each type of asset has its own characteristics and also has different risks associated with it. The main types of investment assets are: 1. EQUITIES Shares, also known as equities buy you a small part of a company. This entitles you to a share of any profits the company makes. If the company is seen to be successful their shares may be wanted, pushing up the share price. Share prices do also fall. Share values can be highly volatile in the short term but can offer long-term growth potential. Equities can invest in the growth potential of the UK, Europe, USA and the rest of the world. There is no set maturity date, and investors can stay invested for as long as the company has shareholders. Lots of choice means it s possible to invest tactically in line with your objectives and timeframe. Equities are suitable for medium to long-term investments at least five years, preferably longer. Additional benefit of any dividend payouts, the value of which may fluctuate. The value of equities is not guaranteed and may fall as well as rise which could mean you losing some or all of your money. 2. FIXED INTEREST SECURITIES Fixed interest securities are more commonly known as bonds. All bonds are basically IOUs a promise to pay back your original investment at a set date in the future, plus payments at regular intervals between now and then. Some bonds are index linked and increase in line with inflation. Bonds can be corporate bonds, issued by companies to raise money, or government bonds. UK government bonds are sometimes referred to as gilts. Returns can come in two ways. Income is provided by the issuer over the lifetime of the bond. Bonds, like equities, can be traded so you can also achieve capital growth by selling a bond during its lifetime for more than you bought it for. Bonds are particularly suited to providing an income. Bonds are a fixed term investment bonds end on a pre-agreed date in the future. Bonds often provide more modest returns than equities but tend to be less volatile over the short to medium term which can be advantageous when stock market values are falling. The value of fixed interest securities/bonds is not guaranteed and may fall as well as rise which could mean you receive back less than you originally invested.

15 15 3. COMMERCIAL PROPERTY In investment terms, property means commercial property such as offices, shops, warehouses, factories, leisure facilities and other business buildings. Returns from commercial property can come in two ways: from rent paid by tenants and from increases in the market value of the property itself. Property can offer good prospects for long-term returns. Rental agreements produce a steady income stream. Property values do not always mirror stock market values which can be advantageous when stock market values are falling. Property can be difficult or take time to sell, so you cannot always trade when you want. Property values are a matter of the valuer s opinion rather than fact. The value of commercial property is not guaranteed and may fall as well as rise which could mean you receive back less than you originally invested. 4. CASH You may not think of cash as an investment but it s an important asset in its own right. Although the returns from cash are generally lower than other asset classes over the long term, it has a number of useful attributes. Cash can offer capital security like bank and building society accounts. Cash can at least produce some returns when stock markets are falling although potential returns are limited. Cash adds flexibility and stability to mixed funds that invest in other assets.

16 16 RISK AND REWARD.

17 17 We d all like our money to grow substantially without risking our original investment amount. Unfortunately, this isn t possible. Almost all investment involves some degree of risk. What s important is that you understand, and are comfortable with, the risks you re taking. For example, if you put your money in a bank account, there s almost no risk, but the interest you ll get your reward, will probably be quite low. On the other hand, investing your money in a single company s shares is high risk, as you re dependent on that one company. If something happens to the company, it will change the value of your shares and in the worst case, you could lose all your money. However, your reward is potentially much greater, as you could make a large gain. Higher risk does mean the potential for higher rewards, but it also comes with a greater chance of your money decreasing. On the other hand, a lower risk has a smaller chance of loss, but the growth of your money will normally be less. You should make sure you understand, and are prepared to take, these risks before you choose your funds. CAN I REDUCE MY INVESTMENT RISK? You can t get rid of risk completely, but it s possible to manage it successfully. Spreading your investment risk You can reduce risk by putting your money in different types of investment with varying levels of risk, for example, company shares, fixed interest securities, property and cash. Pooling your investments This is where you buy into funds and your money s invested with thousands of other people s money into a wide range of company shares. Although less risky than individual company investments, if the stock market as a whole is falling in value, your pooled investment will probably also reduce. As well as investing in shares, pooled investment funds can also be: fixed interest securities (such as corporate bonds, government bonds, or both) property a mixture of company shares, fixed interest securities, property and cash. However you choose to invest, saving your money in a range of assets means that, if something happens to one of your investments, your overall loss is reduced as it s balanced out by your other investments.

18 18 WHAT ARE THE DIFFERENT TYPES OF RISK? There are many different types of risk; for example, your pension may not be as big as you want or need it to be. It s important to make sure you know about what could happen to your money when you invest it, so here s some information about the different risks. THE AMOUNT YOU INVEST The risk that you may not get back as much as you put in. Investments generally go up and down in value, some types more than others. For example, share prices generally change daily. If you take any money out it increases this risk. The more money you take out, the less is left to grow. So it s harder to get back what you put in. YOUR INVESTMENT GOAL(S) Your investment may not give you the amount you d like or need in the future. You need to make sure you keep an eye on how your investment s doing. If it s off target you may need to invest more. INCOME Your investment may not give you the amount of income you d like or need. This may be now or in the future. For example, this is important if you need a particular amount of income from your pension. INFLATION Your investment may not keep up with inflation. This may reduce what you can buy. LOST OPPORTUNITY Your investment may not do as well as where you had it before. ACCESSIBILITY You may not be able to get your money as quickly as you need it. It isn t always possible to cash in investments instantly. For example, property may take a long time to sell. TIMING WHEN YOU BUY AND SELL YOUR INVESTMENT The value of individual investments can go up and down every day. Also, investment types may generally rise or fall over longer periods due to economic conditions. For example, rising inflation or interest rates. This means that you might buy or sell investments at what may turn out to be the wrong time. It s not possible to know the future so you need to make sure you re happy with when you buy and sell. If you choose to invest in a lifestyle profile, your investment will automatically switch between different funds as you approach your selected retirement date. In other words, each time an automated switch takes place, a proportion of your investment in one fund will be sold and your money from this sale will be used to buy units in another fund. As this switching process is automatic, you should be aware that you won t have any control over the timing of when you buy and sell your investments. FUND SPECIFIC The funds you choose have risks linked to what they invest in. For example, a US equity fund takes investors pounds to America and changes them to US dollars to buy and sell company shares in US companies. It then changes the US dollars back into pounds when you get out of the fund. There s a currency risk depending on how many dollars you get to the pound. You ll be given details of these risks before you invest. You should make sure you understand the fund specific risks, and are willing to take them, before choosing a fund. Details of these risks are provided on pages 59 and 60.

19 19 YOUR ATTITUDE TO RISK Identifying your attitude to investment risk is very important. We ve created four attitude to risk categories to help you with the way you look at risk and investing your money minimal, cautious, moderate and high. We ve also put all the funds we offer into one of these four categories to make it easier for you to choose where to invest. Thinking about your own attitude to risk is really important when deciding how you want to invest. Identifying your own attitude to investment risk may help you to decide which funds are right for you. You can call our helpline on (Call charges may vary and we may record and monitor calls).

20 20 HOW DO YOU DECIDE ON THE RISK RATINGS FOR YOUR FUNDS? Funds aren t individually rated; instead we have put them into their Association of British Insurers (ABI) fund sectors. We ve assessed the level of risk of the average fund in each of the ABI sectors. We ve based this assessment on the risk we think the fund presents to your money assuming you ll keep your investment for at least five years. We ve then applied the rating we ve given to this fund to the entire ABI sector and placed each sector into one of our four risk categories. To help make it clearer, we show our view of the risk rated ABI sectors on our risk meter. This is a scale running through the four risk categories, from minimal up to high. Each ABI sector is given a place within the scale so you can compare it easily to other ABI sectors. Our ratings have to be calculated without knowing your personal attitude to the different risks that exist. When you re looking at where to invest it s therefore important that you don t just rely on our rating. You need to look at and think carefully about all the different risks we ve outlined. Then decide how your view on them, combined with our risk rating, affects where you might want to invest. Your circumstances and outlook are unique so it s this that should be influencing your investment decisions. If you ve got any doubts or questions, you should talk to a financial adviser. Our risk meter shows a spectrum of risk, so while two ABI sectors could be in the same risk category, they don t necessarily have the same level of risk. An ABI sector near the top of one risk category might have a more similar risk profile to an ABI sector near the bottom of the category above it than to sectors lower down in its own category. You can look at risk categories both in terms of the type of investor for that category and the sorts of ABI sectors that are available. AN IMPORTANT THING FOR YOU TO REMEMBER Based on our experience, we ve come up with a set of risk ratings. These show how we feel the risks of some funds compare against the risks of others. This is our view now, but we might change our mind in the future, so this could affect the risk categories of the funds you ve chosen. It s up to you to review your situation regularly to make sure that your funds remain the right choice for you.

21 21 MINIMAL RISK CAUTIOUS RISK MODERATE RISK HIGH RISK If you re only prepared to take minimal risk it s likely that your main concern is the security of your money. Other people with this attitude to risk often share a number of common traits. You prefer investing in banks and building society deposits. You tend to limit where you invest to these. You look for stability in the value of your investment. You view the security of your money as more important than the possibility of the buying power of your money reducing as a result of inflation. You re unlikely to invest in shares or property and would prefer funds that didn t do this. Minimal risk funds tend to be cash or cash-like investments. Minimal risk doesn t mean there s no risk. If you ve got a cautious attitude to risk, it s likely that, when investing your money, you look for the security that your investment s value won t go up and down a lot. Other people with this attitude to risk often share a number of common traits. You re happy to invest in non-cash assets, such as fixed interest securities. You accept that the value of your investment isn t guaranteed and might go down as well as up. You re comfortable with some of your money being invested in shares, but not all of it, and some of it may be outside the UK. You accept that it s possible you may lose some of what you invested for the prospect of better growth. You ll probably want to spread your money across different types of investments, which should help to reduce the risk by balancing out one type of risk against another. Cautious risk funds tend to have a mix of investment types, or just fixed interest securities. If you ve got a moderate attitude to risk, it s likely that you already have an interest in investing and are comfortable with the ups and downs of the stock market. Other people with this attitude to risk often share a number of common traits. You re happy to put a significant proportion of your money in shares or other unpredictable investment types. You accept that there s a real risk of losing your money, but this is balanced with the prospect of greater growth. You re likely not to mind investing outside the UK. You might have an interest in and knowledge of the stock market. You understand the general risks involved with investing. Moderate risk funds take risks to provide greater returns. They tend to contain higher risk fixed interest investments, shares and commercial property. These may be outside the UK. If you re prepared to take high risk, it s likely that you re an experienced and knowledgeable investor, whose primary aim is to achieve the highest possible returns on your money, while accepting that this means taking substantial risks. Other people with this attitude to risk often share a number of common traits. You re happy to invest in funds in specialist areas or new markets, or both. You re looking for high returns on your money, and you re willing to take substantial levels of risk to achieve it. You accept that there s a real risk of losing your money, but this is balanced with the prospect of greater growth. You re attracted to new markets with substantial risk, or enjoy trying new types of investment. You accept that the value of your investment can change rapidly and by a large amount, possibly resulting in total loss of your money. You re experienced in investing in the stock markets, and probably already manage a range of your own investments. You understand the risks posed to your money when investing, particularly that your investment is very likely to regularly go up and down in value. High risk funds tend to be in specialised areas or in one or more countries outside the UK. WE CAN T TELL YOU WHERE YOU SHOULD PUT YOUR MONEY. For some people, a mix of funds is the most appropriate option. Others prefer to invest only in one fund. There s no one best place to invest. Wherever you decide to put your money, you ll need to make sure it s in a fund or funds that you feel comfortable with.

22 22 SPECTRUM OF RISK. WE VE DESIGNED THIS METER TO GIVE YOU A CLEARER PICTURE OF THE LEVEL OF RISK TO YOUR MONEY ASSOCIATED WITH AVERAGE FUNDS IN EACH ABI PENSION FUNDS SECTOR. You can use the meter to see how average funds in the different ABI pension funds sectors compare and where within a risk category they are placed. We classify the average funds in each sector in terms of the risks we believe they present to your capital assuming that you were to hold your investment for at least five years. Please note that the risk could be increased if you don t keep your money fully invested for at least five years. These ratings are based on our current view of the relative risks of the average fund in each ABI pension fund sector based on our experience. We may change our view of the amount of risk presented by certain types of investment over time. Therefore you should make sure that you review your situation regularly to make sure the funds you have selected are still suitable for you. This document is for information purposes only. If you want to invest, you should read this together with the other literature supplied about the product. If you re still unsure, we strongly recommend that you speak to a financial adviser.

23 23 RISK METER. HIGH Global Emerging Markets Equities Specialist Asia Pacific ex Japan Equities Commodity/Energy Japan Equities UK Smaller Companies Asia Pacific inc Japan Equities North America Equities Europe ex UK Equities Europe inc UK Equities Global Equities MODERATE UK All Companies Mixed Investment % Shares UK Equity Income Mixed Investment 40-85% Shares Global High Yield Sterling High Yield UK Property Securities Global Property UK Direct Property CAUTIOUS Mixed Investment 20-60% Shares Sterling Strategic Bond Sterling Long Bond With Profits* Sterling Corporate Bond UK Index-linked Gilts Global Fixed Interest UK Gilts Mixed Investment 0-35% Shares Sterling Fixed Interest Money Market MINIMAL Deposit and Treasury * With Profits doesn t fall into any ABI sector. Therefore, we have rated this fund separately based on the risk we think it presents to your money assuming you ll keep your investment for at least five years.

24 24 OUR FUNDS. It s important that you remember that all the information in this guide is as accurate and current as we can make it. However we can t guarantee that the information for any individual fund has not changed since this document was published in April 2011.

25 25 WHAT INFORMATION DO YOU GIVE ME ABOUT THE FUNDS? The format of the fund information we provide, gives the name of the fund and the fund manager, the individual aim of each fund and other information you ll need when deciding which fund or funds will best suit your investment needs. Below we ve given you an example of how each fund is illustrated in this funds guide as well as a brief explanation of each term. LEGAL & GENERAL JPM LIFE MODERATE FUND Aim: To achieve superior returns by investing in the shares and bonds of a broad range of worldwide markets, including some emerging markets. 1 2 FUND CODE Each fund has a unique four digit reference code. You ll need to use these codes when you tell us where you want to invest. FUND SPECIFIC RISKS Most funds have fund specific risks. We make regular assessments of all the funds we offer and then decide which specific risks apply to each fund. Our assessment takes account of: The fund s aim. The assets the fund invests in. The fund manager s own opinion of the risks that apply to their fund. In the Fund specific risks section of the fund information, you ll see one or more numbers. Each of these numbers relates to a specific risk that s associated with that particular fund. You should match the numbers shown for each fund with those listed in the Fund specific risks section on pages 59 and 60. Please note that the fund specific risks are in addition to the risks set out in the Key Features document. 1 Fund code: MCNQ 2 3 EFAMC: 0.15% Fund specific risks: 2, 4, 8, 22 3 EFAMC For all funds managed by an external fund manager there is an additional external funds annual management charge (EFAMC). The EFAMC percentage is shown under each external fund name. This is only charged on the value of the external funds held in an account. Trustees should refer to the CPS or GAVC Key Features documents for more information about annual management charges and ensure members are made aware of these.

26 26 WE HAVE GROUPED OUR FUNDS IN FOUR MAIN CATEGORIES: Minimal Risk, Cautious Risk, Moderate Risk and High Risk. Within each of these categories, you will find the ABI fund sectors listed in risk order (lowest risk to highest risk). Under each of these sub categories, we have listed our funds in alphabetical order. MINIMAL RISK FUND RANGE. CAUTIOUS RISK FUND RANGE. ABI SECTOR: DEPOSIT AND TREASURY LEGAL & GENERAL CASH FUND ABI SECTOR: UK GILTS LEGAL & GENERAL (LGIM) ALL STOCKS GILTS INDEX FUND Aim: To provide capital protection with growth at short-term interest rates. The fund invests in the short-term money markets such as bank deposits and Treasury Bills. Notes A. The fund does not invest in any asset types where the capital value can fall, such as fixed interest securities. The value of the fund s assets would only fall if a deposit holder or the UK Government were unable to meet their obligations. B. If the interest earned by the fund s assets is insufficient to cover the product charges, the value of the your pension will fall. Aim: To track the sterling total returns of the FTSE A Government (All Stocks) Index (including re-invested income) to within +/- 0.25% per annum for two years in three. Fund code: NBYQ Fund specific risks: 4, 11 Fund code: HABQ Fund specific risks: 17

27 27 ABI SECTOR: GLOBAL FIXED INTEREST LEGAL & GENERAL NEWTON INTERNATIONAL BOND FUND LEGAL & GENERAL FIXED INTEREST FUND Aim: To maximise the total return from income and capital growth in the world bond markets through investment predominantly in Government and other public securities. The fund may also invest in deposits, derivative instruments, forward transactions and collective investment schemes. Aim: To maximise the overall returns from interest received and capital values of a portfolio of investments in British Government stocks and other readily marketable fixed interest securities. This may also include quoted marketable stocks of overseas governments and companies. Fund code: JDKQ Fund specific risks: 2, 4, 9 Fund code: HADQ Fund specific risks: 4 EFAMC: 0.40% p.a. LEGAL & GENERAL (LGIM) OVERSEAS BOND INDEX FUND Aim: To track the sterling total returns of the JPMorgan Global Government (excluding UK) Traded Bond Index (including re-invested income) to within +/- 0.50% per annum for two years in three. LEGAL & GENERAL INDEX-LINKED GILT FUND Aim: The aim of this fund is to get the best return from a portfolio of mainly index linked securities issued predominantly by the UK Government. Fund code: HAHQ Fund specific risks: 4, 11 LEGAL & GENERAL (LGIM) OVER 5 YEAR INDEX-LINKED GILTS INDEX FUND Fund code: NBXQ Fund specific risks: 2, 4 ABI SECTOR: UK INDEX-LINKED GILTS Aim: To track the sterling total returns of the FTSE A Index-linked (Over 5 Year) Index (including re-invested income) to within +/- 0.25% per annum for two in three years. LEGAL & GENERAL (LGIM) ALL STOCKS INDEX-LINKED GILTS INDEX FUND Fund code: NECQ Fund specific risks: 4, 11 Aim: To track the sterling total returns of the FTSE A Index-Linked (All Stocks) Index (including re-invested income) to within +/- 0.25% per annum for two years in three. Fund code: NELQ Fund specific risks: 4, 11

28 28 ABI SECTOR: STERLING CORPORATE BOND LEGAL & GENERAL (LGIM) AAA-AA-A CORPORATE BOND ALL STOCKS INDEX FUND Aim: To track the sterling total returns of the iboxx Non-Gilts (ex-bbb) Index (including re-invested income) to within +/- 0.50% per annum for two years in three. Fund code: NEMQ Fund specific risks: 4 LEGAL & GENERAL HENDERSON STERLING BOND FUND Aim: To achieve a high and stable income by investing principally in sterling denominated fixed interest securities including preference shares. The fund may also invest in securities acquired on the conversion of convertible securities held within the portfolio, derivatives and forward transactions, warrants originally acquired with fixed interest investments, or under a scheme of reconstruction affecting securities in the fund, money-market instruments and deposits. The fund concentrates on investment grade corporate bonds. Derivatives may be used for meeting the investment objective of the fund and for efficient portfolio management. LEGAL & GENERAL (LGIM) AAA FIXED INTEREST ALL STOCKS FUND Aim: To produce sterling total returns in line with the FTSE A Government (All Stocks) Index (including re-invested income) and capture the yield spread over gilts of AAA-rated fixed interest securities. Fund code: QDGQ EFAMC: 0.75% Fund specific risks: 4 Fund code: NEJQ Fund specific risks: 4 LEGAL & GENERAL ALLIANZ PIMCO UK CORPORATE BOND FUND Aim: To maximise total return, consistent with preservation of capital and prudent investment management, primarily through investment in fixed income securities issued by corporate bodies as well as any other security which is deemed appropriate for the fund. The fund may invest internationally, although investment will predominantly be in the UK and Europe. Fund code: IDLQ Fund specific risks: 2, 4, 9 EFAMC: 0.85% p.a.

29 29 WITH PROFITS. FUND CODE FOR CPS CONTRACTS: HCSQ FUND CODE FOR GAVC CONTRACTS: HCTQ Please note that With Profits does not fall into any ABI sector. Contributions are combined with those of other investors and invested primarily in a broad mix of shares, Government and corporate stocks and UK commercial property. We aim to smooth returns to investors so that some of the short-term fluctuations in the value of the underlying investments are not immediately reflected in payments under With Profits policies. Plans benefit from the addition of any bonuses. Bonus rates are not guaranteed and depend mainly on the long-term investment performance of the underlying investments. Existing investors in With Profits may be entitled to other contractual additions. You can find details of these in your policy document. ANNUAL BONUS We may add an annual bonus each year. Annual bonuses are normally declared at the end of each calendar year. Once annual bonuses are added they cannot be withdrawn. FINAL BONUS We may pay a final bonus: When a plan matures (typically when a member reaches their Selected Retirement Age but they should check their plan for details) If, subject to scheme rules, a member takes their benefits early If the member dies If, subject to scheme rules, a member switches to another fund. Final bonus rates fluctuate and can be changed or removed without notice. GUARANTEES AND OPTIONS Any investment in With Profits will share in the risks of other With Profits pension plans which can reduce bonuses and therefore the amount we pay. Members also share in the risks of other With Profits policies such as bonds. We write With Profits and Non Profit policies (that is policies which are not eligible for bonuses) in our Long-Term Fund. We provide guarantees for both With Profits and Non Profit policies and the assets in the whole fund are ultimately available to meet them. This means that although members may benefit from support from assets backing Non Profit business, we could reduce the amount we pay if we have to use the assets backing With Profits business to support Non Profit business. With Profits continued overleaf

30 30 With Profits continued HOW CAN I FIND OUT MORE ABOUT WITH PROFITS INVESTMENTS? Legal & General s An Introduction to Unitised With Profits booklet is available on request. This explains the particular features of With Profits investments and describes how we manage our Unitised With Profits investments. A more detailed description of With Profits is contained in a document called Principles and Practices of Financial Management (PPFM) which is also available on request. MARKET VALUE REDUCTION (MVR) AVAILABILITY We may reduce the amount we pay by applying a MVR if a member: Transfers to another pension arrangement Switches to another investment choice Takes benefits before their Selected Retirement Age. This may happen if, for example, the actual return on the underlying investment is less than that required to support the bonuses to which you are eligible. It will also account for additional deductions that may be required to cover the cost of guarantees for With Profit policies. If you require more information about MVRs please contact us on Mon-Fri 9am-5pm. Call charges will vary. We may record and monitor calls. Please note that investments in With Profits stop participating in profits after a member s Selected Retirement Age or Maturity Date. Members cannot invest in With Profits in any of the following situations: If they are within five years of their Selected Retirement Age or Maturity Date, they cannot pay any single or special contributions or any transfer values into With Profits If they are within five years of their Selected Retirement Age or Maturity Date they cannot switch their existing pension fund and/or any ongoing contributions into With Profits If they choose to defer taking their pension after their Selected Retirement Age or Maturity Date, they cannot continue to invest in With Profits.

31 31 ABI SECTOR: STERLING LONG BOND LEGAL & GENERAL (LGIM) AAA-AA-A CORPORATE BOND OVER 15 YEAR INDEX FUND Aim: To track the sterling total returns of the iboxx Non-Gilts (ex-bbb) Over 15 Year Index (including re-invested income) to within +/- 0.50% per annum for two years in three. ABI SECTOR: STERLING STRATEGIC BOND LEGAL & GENERAL ALLIANZ PIMCO STERLING TOTAL RETURN FUND Aim: To maximise total return by investing predominantly in UK and European bonds. The fund has the flexibility to invest in high yield and high grade bonds. Fund code: IDBQ Fund specific risks: 2, 4, 9, 13 Fund code: NEKQ Fund specific risks: 4 EFAMC: 0.85% p.a. LEGAL & GENERAL (LGIM) AAA FIXED INTEREST OVER 15 YEAR FUND LEGAL & GENERAL HENDERSON HIGH YIELD MONTHLY INCOME FUND Aim: To produce sterling total returns in line with the FTSE A Government (Over 15 Year) Index (including re-invested income) and capture the yield spread over gilts of AAA-rated dated corporate fixed interest securities. Fund code: NEIQ Fund specific risks: 4 Aim: To achieve a high level of income with modest long-term capital appreciation by investing principally in fixed and variable rate and index-related securities issued by corporate, government, supranational institutions and local and regional agencies, both in the UK and internationally. LEGAL & GENERAL (LGIM) OVER 15 YEAR GILTS INDEX FUND Aim: To track the sterling total returns of the FTSE A Government (Over 15 year) Index to within +/- 0.25% per annum for two years in three. Fund code: QDHQ EFAMC: 0.90% p.a. Fund specific risks: 4, 13 Fund code: NBRQ Fund specific risks: 4, 11 LEGAL & GENERAL (LGIM) PRE-RETIREMENT FUND Aim: To invest in assets that reflect the investments underlying a typical non-inflation linked pension annuity product. The fund invests in our Over 15 Year Gilts Index Fund and our AAA-AA-A Corporate Bond Over 15 Year Index Fund and the mix between the funds is regularly reviewed. Fund code: NENQ Fund specific risks: 4, 11

32 32 ABI SECTOR: MIXED INVESTMENT 20-60% SHARES LEGAL & GENERAL DISTRIBUTION FUND Aim: The Distribution Fund is a balanced fund and its investments include equities, fixed interest securities and property. The fund aims to offer good long-term growth potential through a combination of capital growth and reinvested income, from a cautious, balanced portfolio, and is actively managed to achieve this objective. MODERATE RISK FUND RANGE. Fund code: HAZQ Fund specific risks: 2, 4, 8, 9, 13, 14 LEGAL & GENERAL INVESTEC CAUTIOUS MANAGED FUND Aim: To provide a combination of income and long-term capital growth, primarily through application of a contrarian approach to investment in UK equities. The fund may invest in collective investments schemes, transferable securities and cash. The fund manager may also use derivatives and forward currency contracts for efficient portfolio management. Fund code: PCDQ EFAMC: 0.75% p.a. Fund specific risks: 4, 8 ABI SECTOR: UK DIRECT PROPERTY LEGAL & GENERAL PROPERTY FUND Aim: The Property Fund aims to get the best return from a portfolio of first class freehold and leasehold interests in commercial and industrial property. This includes industrial warehouse buildings, shopping units and office blocks. It is also permitted to invest up to 15% in other external property funds in order to take advantage of investment opportunities in niche or specialist sections. Fund code: HAEQ Fund specific risks: 14

33 33 ABI SECTOR: MIXED INVESTMENT 40%-85% SHARES LEGAL & GENERAL ABERDEEN MULTI-ASSET (EX PROPERTY) FUND LEGAL & GENERAL MANAGED FUND Aim: To maximise the value of pension savings, achieving long-term returns that are ahead of inflation. Fund code: KCKQ Fund specific risks: 2, 4, 8, 22 Aim: To seek steady long-term growth, whilst at the same time safeguarding the fund against excessive risks. It invests principally in UK and international equities but also has some exposure to fixed interest securities, UK commercial property and cash, thus offering a more diversified investment than a pure equity fund. EFAMC: 0.15% Fund code: HAAQ Fund specific risks: 2, 3, 4, 8 LEGAL & GENERAL GLG BALANCED FUND LEGAL & GENERAL NEWTON BALANCED FUND Aim: The fund invests in a broad portfolio of GLG's institutional unit trusts to produce a balanced, diversified portfolio across asset classes and geographic areas. The portfolio will normally therefore be invested in a mixture of equities, fixed interest and cash. Aim: To achieve a balance between capital growth and income predominantly from a portfolio of UK and International Securities. The fund may also invest in derivative instruments, forward transactions, and collective investment schemes. Fund code: LCKQ Fund specific risks: 2, 3, 4, 8, 22 Fund code: JCKQ Fund specific risks: 2, 3, 4, 8, 9, 22 EFAMC: 0.15% EFAMC: 0.15% p.a. LEGAL & GENERAL JPM LIFE MODERATE FUND Aim: To invest in UK and overseas equities, bonds and cash, either directly or through other funds. The fund seeks to achieve excess return through instrument selection, country allocation, asset allocation, and currency exposure. The fund is well diversified and, under normal circumstances, is fully invested, with cash holdings kept to a minimum. Fund code: MCNQ Fund specific risks: 2, 4, 8, 22 EFAMC: 0.15%

34 34 ABI SECTOR: UK EQUITY INCOME LEGAL & GENERAL HENDERSON HIGHER INCOME FUND ABI SECTOR: MIXED INVESTMENT % SHARES LEGAL & GENERAL NEWTON MANAGED FUND Aim: To achieve increasing distributions with the potential of long-term capital growth principally through investment in the securities of UK companies. In addition to ordinary shares, the fund may also invest in fixed interest securities, preference shares, debt securities convertible into ordinary stock and other equity linked investments and may also from time to time invest outside Europe. Aim: To achieve capital growth and income from a portfolio of UK, EC and international securities. The fund may also invest in collective investment schemes. Fund code: JSAQ Fund specific risks: 2, 3, 8, 22 Fund code: QMEQ Fund specific risks: 8 EFAMC: 0.40% p.a. EFAMC: 0.75% p.a. LEGAL & GENERAL NEWTON HIGHER INCOME FUND Aim: To achieve increasing distributions on a calendar year basis with long-term capital growth. Fund code: JCIQ Fund specific risks: 8 ABI SECTOR: UK ALL COMPANIES LEGAL & GENERAL ABERDEEN UK EQUITY FUND Aim: To provide capital growth through investment in companies registered in the UK or companies which derive a significant proportion of their revenues or profits from the UK or have a significant proportion of their assets there. EFAMC: 0.15% p.a. LEGAL & GENERAL NEWTON INCOME FUND Fund code: KCFQ Fund specific risks: 8, 11 Aim: To achieve a balance between capital growth and income predominantly from a portfolio of UK and international securities. The fund may also invest in derivative instruments, forward transactions and collective investment schemes. EFAMC: 0.15% p.a. LEGAL & GENERAL ALLIANZ RCM UK EQUITY FUND Fund code: JCHQ EFAMC: 0.15% p.a. Fund specific risks: 2, 8 Aim: To achieve capital growth by investing in a broadly based portfolio of UK companies although it may invest internationally and in all economic sectors. The fund may also invest in collective investment schemes. Fund code: ICFQ Fund specific risks: 11 EFAMC: 0.15% p.a.

35 35 LEGAL & GENERAL ETHICAL FUND LEGAL & GENERAL GLG UK GROWTH FUND Aim: The fund is set up in such a way that it aims to reflect the performance (before charges) of the FTSE 350 index, not including companies whose business does not keep to a range of ethical and environmental guidelines. Fund code: HBPQ Fund specific risks: 3, 8, 15 Aim: To achieve capital growth through investment in the quoted securities of companies operating in the UK. The fund invests mainly in securities of companies lists on the London Stock Exchange which are part of the fund's benchmark, the FTSE 350 index. LEGAL & GENERAL (LGIM) ETHICAL UK EQUITY INDEX FUND Aim: To track the sterling total returns of the FTSE4Good UK Equity Index (including re-invested income, less withholding tax) to within +/- 0.5% per annum for two years in three. Fund code: LCFQ EFAMC: 0.15% p.a. Fund specific risks: 8 LEGAL & GENERAL HENDERSON UK ALPHA FUND Fund code: NEAQ LEGAL & GENERAL EQUITY FUND Fund specific risks: 3, 8, 15 Aim: To maximise the investment return by investing in a very broad mix of mainly UK companies. Aim: To seek capital growth through a relatively concentrated portfolio principally investing in the securities of UK companies. In addition to ordinary shares, the fund may also invest in fixed interest securities, preference shares, debt securities convertible into ordinary stocks and other equity linked investments and may also from time to time invest outside the UK. Fund code: QCSQ Fund specific risks: 8 Fund code: HACQ Fund specific risks: 3, 8 EFAMC: 1.10% p.a. LEGAL & GENERAL INVESTEC UK BLUE CHIP FUND Aim: To achieve long-term capital growth primarily through investment in the equities issued by the constituents of the FTSE 350 Index and in derivatives the underlying assets of which are equities issued by the constituents of the FTSE 350 Index. Fund code: PCEQ Fund specific risks: 8 EFAMC: 0.95% p.a.

36 36 LEGAL & GENERAL JPM LIFE UK DISCIPLINED EQUITY FUND LEGAL & GENERAL UK EQUITY INDEX 5% CAPPED FUND Aim: To achieve strong capital growth by investing in shares of UK companies. It aims to outperform its benchmark, the FTSE All Share Index, by over 1% over 3 years before fees are taken into account. Fund code: MCQQ Fund specific risks: 3, 8 Aim: The fund restricts the weighting in each individual stock of the FTSE All-Share Index whose weight is above 5% of the index to 5% of the index. All remaining UK stocks are managed in proportion to their weightings in the FTSE All-Share Index. EFAMC: 0.15% p.a. Fund code: NNMQ Fund specific risks: 3, 8 LEGAL & GENERAL SCHRODER UK ALPHA PLUS FUND LEGAL & GENERAL (LGIM) UK EQUITY INDEX FUND Aim: To provide capital growth through investment in UK companies. The fund will invest in a focused portfolio of between 20 and 40 stocks with an objective of achieving an absolute return. Aim: To track the sterling total returns of the FTSE All-Share Index (including re-invested income). Fund code: NBCQ Fund specific risks: 3, 8 Fund code: RCTQ Fund specific risks: 8, 11 LEGAL & GENERAL UK RECOVERY FUND EFAMC: 0.95% p.a. LEGAL & GENERAL SCHRODER UK MID 250 FUND Aim: The fund aims to secure capital growth from UK securities which offer recovery prospects. The fund managers will select shares whose prices are believed to be undervalued and which generally do not reflect earnings potential. Aim: 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 that often these businesses have greater potential for continued growth than their larger counterparts. The fund manager invests in growing companies with a unique product or service for which demand is strong. Fund code: HBVQ Fund specific risks: 3, 8 Fund code: RCZQ Fund specific risks: 3, 8 EFAMC: 1.10% p.a.

37 37 HIGH RISK FUND RANGE. ABI SECTOR: GLOBAL EQUITIES LEGAL & GENERAL ABERDEEN GLOBAL (EX UK) EQUITY FUND Aim: To provide exposure to an actively managed portfolio of overseas equities an asset class that is expected to provide long-term returns that are ahead of inflation. LEGAL & GENERAL ALLIANZ RCM DYNAMIC GROWTH FUND Aim: To achieve long-term capital growth through active asset allocation and to seek to manage the risks of capital loss resulting from excessive market volatility. The fund manager aims to achieve the objective by investing in any economic sector internationally and by holding cash and/or near cash when considered appropriate. The fund may invest in collective investment schemes as well as directly in equities, fixed income securities (issued by corporate, government and/or supranational institutions) and money market instruments. The fund manager intends to gain indirect exposure to emerging market indices and alternative asset class indices including, but not limited to, private equity, commodities, hedge funds and real estate by investing in collective investment schemes, including exchange traded funds. The fund may also invest in derivative instruments such as futures, options, options on swaps, swap agreements (including equity and/or index based total return swaps, interest rate swaps and/or credit default swaps) and currency forward contracts. The fund may use options in order to generate synthetic cash positions. In particularly adverse market conditions the fund may also hold cash deposits up to 80% of the portfolio. IMPORTANT NOTE: The risk profile of the fund will increase through investment in derivative instruments and you should seek further advice with regard to your own circumstances. Fund code: KCGQ Fund specific risks: 2, 8, 11, 22 Fund code: ICOQ Fund specific risks: 2, 3, 22 EFAMC: 0.15% EFAMC: 0.15% p.a. LEGAL & GENERAL ABERDEEN GLOBAL GROWTH FUND LEGAL & GENERAL (LGIM) ETHICAL GLOBAL EQUITY INDEX FUND Aim: To maximise the value of pension savings, achieving long-term returns that are ahead of inflation through active investment primarily in UK and overseas equities. Aim: To track the sterling total returns of the FTSE4Good Global Equity Index (including re-invested income, less withholding tax) to within +/- 0.5% per annum for two years in three. Fund code: KCLQ Fund specific risks: 2, 8, 22 Fund code: NEBQ Fund specific risks: 2, 8, 15 EFAMC: 0.15% p.a.

38 38 LEGAL & GENERAL GLG GLOBAL EQUITY FUND LEGAL & GENERAL (LGIM) GLOBAL EQUITY (70:30) INDEX FUND Aim: The fund invests in a portfolio of GLG s institutional funds, to produce exposure to UK and overseas equity markets. The portfolio s asset allocation is formally reviewed on a monthly basis by GLG s Asset Allocation Group which meets to consider key economic, financial and stock market data. Fund code: LCOQ Fund specific risks: 2, 3, 4, 8, 22 Aim: To capture the total sterling returns of the UK and overseas equity markets, as represented by the FTSE All-Share index in the UK and appropriate sub-divisions of the FTSE All-World Index and overseas. A 70/30 distribution between UK and overseas assets is maintained with the overseas asset distribution mirroring that of the average UK pension fund in the Combined Actuarial Performance Services (CAPS) Pooled Balanced Fund Survey. EFAMC: 0.15% p.a. Fund code: NEOQ Fund specific risks: 2, 8 LEGAL & GENERAL (LGIM) GLOBAL EQUITY FIXED WEIGHTS (50:50) INDEX FUND LEGAL & GENERAL INTERNATIONAL FUND Aim: To capture the sterling total returns of the UK and overseas markets as represented by the FTSE All-Share Index in the UK and appropriate sub-divisions of the FTSE World Index overseas, with fixed asset allocation between the UK (50%) and overseas (50%). The overseas exposure of 50% is divided 17.5% in Europe (excluding UK), 17.5% in North America, 8.75% in Japan and 6.25% in Asia Pacific (excluding Japan). Aim: The fund seeks to secure long-term capital growth from a widespread portfolio of international securities. Occasionally shares of UK companies, a large proportion of whose profits arise from overseas earnings, may be included. Fund code: HAFQ Fund specific risks: 2, 3, 8 Fund code: NDZQ Fund specific risks: 2, 8 LEGAL & GENERAL INVESTEC GLOBAL FREE ENTERPRISE FUND LEGAL & GENERAL (LGIM) GLOBAL EQUITY FIXED WEIGHTS (60:40) INDEX FUND Aim: To capture the total sterling returns of the UK and overseas equity markets, as represented by the FTSE All-Share Index in the UK and the appropriate sub-divisions of the FTSE World Index overseas with a fixed asset allocation between the UK (60%) and overseas (40%). The overseas portion is split 14% in North America, 14% in Europe (excluding UK), 7% in Japan and 5% in Asia Pacific (excluding Japan). Aim: To achieve long-term capital growth primarily through investment in equities issued by companies around the globe that are expected to benefit from the process of privatisation, deregulation or demutualisation or otherwise believed to offer above average opportunities for capital gains and in derivatives, the underlying assets of which are equities issued by companies around the globe that are expected to benefit from the process of privatisation, deregulation or demutualisation or otherwise believed to offer above average opportunities for capital gains. Fund code: NDYQ Fund specific risks: 2, 8 Fund code: PAPQ Fund specific risks: 2, 8, 22 EFAMC: 0.95% p.a.

39 39 LEGAL & GENERAL JPM LIFE GROWTH FUND LEGAL & GENERAL GLG ESPRIT CONTINENTAL EUROPE FUND Aim: To invest in UK and overseas equities, either directly or through other funds. The fund seeks to achieve excess return through stock selection, country allocation, and currency exposure. The fund is well diversified and, under normal circumstances, is fully invested, with cash holdings kept to a minimum. Aim: The fund aims to achieve capital growth through investment in the quoted securities of companies listed on any European Stock Exchange other than the London Stock Exchange or any other market in the United Kingdom. The fund's benchmark is the FTSE World Europe (excluding UK) Index. Fund code: MCMQ Fund specific risks: 2, 8, 22 Fund code: LCPQ Fund specific risks: 2, 3, 8, 22 EFAMC: 0.15% EFAMC: 0.15% p.a. LEGAL & GENERAL NEWTON INTERNATIONAL GROWTH FUND LEGAL & GENERAL EUROPEAN FUND Aim: To achieve capital growth from a portfolio of international securities. The fund may also invest in collective investment schemes. Aim: To provide the potential for long-term growth by investing in a portfolio exclusively invested directly or indirectly in European securities, other than those of the UK, which may be selected from all economic sectors. Fund code: JCJQ Fund specific risks: 2, 3, 8, 22 EFAMC: 0.15% Fund code: HAMQ Fund specific risks: 2, 8 LEGAL & GENERAL (LGIM) WORLD (EX-UK) EQUITY INDEX FUND LEGAL & GENERAL HENDERSON EUROPEAN GROWTH FUND Aim: To track the sterling total returns of the FTSE World (excluding UK) Index (including re-invested income, less withholding tax) to within +/- 0.5% per annum for two years in three. Fund code: NEDQ Fund specific risks: 2, 8 ABI SECTOR: EUROPE EX UK EQUITIES Aim: To achieve long-term capital growth. The fund will invest principally in the securities of European companies. In addition to ordinary shares, the fund may also invest in preference shares, debt securities convertible into ordinary stocks and shares, money market instruments, deposits and any other permitted asset type deemed appropriate to meet the investment objective. The fund may also invest outside Europe if the investment adviser believes that it is in the interest of the fund. LEGAL & GENERAL (LGIM) EUROPE (EX-UK) EQUITY INDEX FUND Aim: To track the total sterling returns of the FTSE World Europe (excluding UK) developed Index (including re-invested income, less withholding tax) to within +/- 0.50% per annum for two years in three. Fund code: QCWQ EFAMC: 1.00% p.a. Fund specific risks: 2, 8 Fund code: NBSQ Fund specific risks: 2, 8

40 40 ABI SECTOR: NORTH AMERICA EQUITIES LEGAL & GENERAL INVESTEC AMERICAN FUND ABI SECTOR: UK SMALLER COMPANIES LEGAL & GENERAL SCHRODER UK SMALLER COMPANIES FUND Aim: To achieve long-term capital growth primarily through investment in a portfolio of equities issued by USA companies and in derivatives the underlying assets of which are equities issued by USA companies. Aim: To achieve capital growth by investing in UK smaller companies. The policy is to invest in smaller companies in the UK which are expected to exhibit superior growth over the long term. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, warrants and money market instruments. Fund code: PCVQ Fund specific risks: 2, 8 EFAMC: 0.85% p.a. LEGAL & GENERAL (LGIM) NORTH AMERICA EQUITY INDEX FUND Fund code: RSUQ EFAMC: 1.05% p.a. Fund specific risks: 3, 8 Aim: To track the sterling total return of the FTSE World North America Index (including re-invested income, less withholding tax) to within +/- 0.50% per annum for two years in three. Fund code: NDXQ Fund specific risks: 2, 8 LEGAL & GENERAL UK SMALLER COMPANIES FUND Aim: The fund seeks to maximise capital growth from a portfolio of UK securities consisting largely of UK smaller companies selected from all economic areas. The fund primarily invests in companies which comprise the lowest 10% by capitalisation of the UK equity market. LEGAL & GENERAL NORTH AMERICAN FUND Fund code: HBUQ Fund specific risks: 3, 8 Aim: To provide the potential for long-term growth by investing directly or indirectly into a portfolio of US securities, which may be selected from all economic sectors. ABI SECTOR: ASIA PACIFIC INC JAPAN EQUITIES LEGAL & GENERAL FAR EASTERN FUND Fund code: HAKQ Fund specific risks: 2, 8 Aim: To provide the potential for long-term growth by investing directly or indirectly into a portfolio of Far Eastern securities, which may be selected from all economic sectors. Fund code: HALQ Fund specific risks: 2, 8, 22

41 41 ABI SECTOR: JAPAN EQUITIES LEGAL & GENERAL (LGIM) JAPAN EQUITY INDEX FUND ABI SECTOR: COMMODITY/ENERGY LEGAL & GENERAL INVESTEC GLOBAL ENERGY FUND Aim: To track the sterling total return of the FTSE Japan Index (including re-invested income, less withholding tax) to within +/- 0.50% per annum for two years in three. Fund code: NBWQ Fund specific risks: 2, 8 Aim: To achieve long-term capital growth primarily through investment in equities issued by companies around the globe involved in the exploration, production or distribution of oil, gas and other energy sources or companies which service the energy industry and in derivatives, the underlying assets of which are equities issued by companies around the globe involved in the exploration, production or distribution of oil, gas and other energy sources or companies which service the energy industry. LEGAL & GENERAL SCHRODER TOKYO FUND Fund code: PDAQ Fund specific risks: 2, 8, 20 Aim: To achieve capital growth by investing in Japanese equities. The fund manager focuses on companies with a proven track record and solid profit growth prospects which are not fully reflected in the current share price relative to other companies. EFAMC: 0.85% p.a. ABI SECTOR: ASIA PACIFIC EX JAPAN EQUITIES Fund code: RCYQ EFAMC: 0.90% Fund specific risks: 2, 3, 8 LEGAL & GENERAL (LGIM) ASIA PACIFIC (EX-JAPAN) DEVELOPED EQUITY INDEX FUND Aim: To track the sterling returns of the FTSE World Asia Pacific (excluding Japan) developed Index (including re-invested income, less withholding tax) to within +/- 0.75% per annum for two years in three. Fund code: NEFQ Fund specific risks: 2, 8 LEGAL & GENERAL (LGIM) ASIA PACIFIC (EX-JAPAN) EQUITY INDEX FUND Aim: To track the sterling returns of the FTSE World Asia Pacific (excluding Japan) Index (including re-invested income, less withholding tax) to within +/- 0.75% per annum for two years in three. Fund code: NEGQ Fund specific risks: 2, 8

42 42 ABI SECTOR: SPECIALIST LEGAL & GENERAL (LGIM) CONSENSUS INDEX FUND Aim: To maintain an asset distribution close to that of the Combined Actuarial Performance Services (CAPS) Pooled Pension Fund Balanced Funds Survey, excluding property, with the aim of delivering performance close to that of the average UK discretionary pension fund. Fund code: NBQQ Fund specific risks: 2, 8 LEGAL & GENERAL (LGIM) OVERSEAS EQUITY CONSENSUS INDEX FUND Aim: To maintain an asset distribution close to that of the overseas equity distribution of the average fund in the Combined Actuarial Performance Services (CAPS) Pooled Balanced Fund Survey, with the aim of delivering long-term performance, which is close to that of the overseas equity return of the average UK pension fund. Fund code: NEEQ Fund specific risks: 2, 8, 22 ABI SECTOR: GLOBAL EMERGING MARKETS EQUITIES LEGAL & GENERAL (LGIM) GLOBAL EMERGING MARKETS EQUITY INDEX FUND Aim: To track the sterling total returns of the Standard & Poor s IFC Investable Composite Global Emerging Markets Index (including re-invested income, less withholding tax) to within +/- 1.5% per annum for two in three years. Fund code: NEHQ Fund specific risks: 2, 8, 22 The FTSE indices are calculated by FTSE International Limited ( FTSE ). FTSE does not sponsor, endorse or promote these products. All copyright in the indices values and constituent lists belong to FTSE. Legal & General Assurance Society Limited has obtained full licence from FTSE to use such copyright in the creation of these products. FTSE, FT-SE and Footsie are trade marks of the London Stock Exchange plc and the Financial Times Limited and are used by FTSE International Limited ( FTSE ) under licence. All-Share, and All-World are trade marks of FTSE.

43 43 LIFESTYLE PROFILES. WE OFFER A VARIETY OF LIFESTYLE PROFILES FOR CPS, GAVC OR BOTH. Depending on which lifestyle profile you choose, automatic switching between funds starts 10, 7, 6 or 5 years before a member s selected retirement date. Automatic switching takes place every year, quarterly, or monthly depending on which profile is chosen. Over the following pages, you ll find details of all the lifestyle profiles available. We ve included details of the funds the profile invests in, the automatic switching frequency and the profile code. We ve also provided a graph to show you how a pension fund would be split between investments at the end of each year running up to selected retirement age. Many of our lifestyle profiles switch between investment funds on each anniversary date in the run up to your selected retirement date. However, when looking at these graphs, please be aware that some profiles switch between funds on a quarterly or monthly basis.

44 44 WHAT ARE LIFESTYLE PROFILES? A lifestyle profile is an investment option where contributions initially go into a fund that is typically invested mainly in shares, to offer the potential for growth over the long term. However, in the years before a member s retirement date, we steadily switch their investment into funds which have lower risks. Therefore, you will lose the potential benefits of investing in shares as explained on page 14. The value of investments can go down as well as up. It s particularly important for members to remember this if they are close to taking their benefits. As the process of switching investments between funds is automatic, members won t have control over the timing of when their funds are moved. Please see Timing when you buy and sell your investment on page 18 for more information about the risk that this may present. Please remember that if a member decides to invest in a lifestyle profile, they can only choose one profile at a time. When a member chooses to invest in a lifestyle profile, it s not possible to invest in any other funds at the same time. Switching into lower risk funds is not a guarantee that the value of your pension fund will not go down. CAN MEMBERS SWITCH OUT OF A LIFESTYLE PROFILE? Yes, subject to scheme rules, members are free to switch their investment out of their selected lifestyle profile at any time they wish, but we must receive this notification in writing. If a member is already in the automatic switching period, this will stop immediately. Switching is currently free.

45 45 Lifestyle profiles with automated switching within 10 years of retirement FOR CPS CONTRACTS 70:30 GLOBAL EQUITY 10 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly 60:40 GLOBAL EQUITY 10 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity (70:30) Index Fund. It then switches into the Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund and the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (60:40) Index Fund. It then switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. PROFILE CODE: LLWQ 100% PROFILE CODE: LLKQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE Legal & General (LGIM) Global Equity (70:30) Index Fund Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund Legal & General Cash Fund Legal & General (LGIM) Global Equity (60:40) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund

46 46 50:50 GLOBAL EQUITY 10 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly UK EQUITY INDEX 10 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (50:50) Index Fund. It then switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) UK Equity Index Fund. It then switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. PROFILE CODE: LLMQ 100% PROFILE CODE: LLOQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE Legal & General (LGIM) Global Equity (50:50) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund Legal & General (LGIM) UK Equity Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund

47 47 Lifestyle profiles with automated switching within 10 years of retirement FOR GAVC CONTRACTS 70:30 GLOBAL EQUITY 10 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly 60:40 GLOBAL EQUITY 10 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity (70:30) Index Fund. It then switches into the Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (60:40) Index Fund. It then switches into the Legal & General (LGIM) Pre-Retirement Fund. PROFILE CODE: LLYQ 100% PROFILE CODE: LLQQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE Legal & General (LGIM) Global Equity (70:30) Index Fund Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund Legal & General (LGIM) Global Equity (60:40) Index Fund Legal & General (LGIM) Pre-Retirement Fund

48 48 50:50 GLOBAL EQUITY 10 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly UK EQUITY INDEX 10 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (50:50) Index Fund. It then switches into the Legal & General (LGIM) Pre-Retirement Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) UK Equity Index Fund. It then switches into the Legal & General (LGIM) Pre-Retirement Fund. PROFILE CODE: LLSQ 100% PROFILE CODE: LLUQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE Legal & General (LGIM) Global Equity (50:50) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General (LGIM) UK Equity Index Fund Legal & General (LGIM) Pre-Retirement Fund

49 49 Lifestyle profiles with automated switching within 10 years of retirement FOR BOTH CPS AND GAVC CONTRACTS CAUTIOUS MANAGED LIFESTYLE PROFILE How frequently does automatic switching take place? Annually GLOBAL EQUITY FIXED WEIGHTS 60:40 INDEX 10 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Annually What funds does the profile invest in? This initially invests in the Distribution Fund and switches into the Legal & General Fixed Interest Fund and the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights 60:40 Index Fund and switches into the Legal & General Fixed Interest Fund and the Legal & General Cash Fund. PROFILE CODE: LLCQ 100% PROFILE CODE: LMSQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE Legal & General Distribution Fund Legal & General Fixed Interest Fund Legal & General Cash Fund Legal & General (LGIM) Global Equity Fixed Weights 60:40 Index Fund Legal & General Fixed Interest Fund Legal & General Cash Fund

50 50 Lifestyle profiles with automated switching within 7 years of retirement FOR BOTH CPS AND GAVC CONTRACTS MANAGED LIFESTYLE PROFILE How frequently does automatic switching take place? Annually What funds does the profile invest in? This initially invests in the Legal & General Managed Fund. It switches into the Legal & General Fixed Interest Fund and the Legal & General Cash Fund. GLOBAL EQUITY FIXED WEIGHTS 50:50 INDEX/PRE-RETIREMENT 7 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? Legal & General (LGIM) Global Equity Fixed Weights (50:50) Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. PROFILE CODE: LLBQ 100% PROFILE CODE: LMPQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE Legal & General Managed Fund Legal & General Fixed Interest Fund Legal & General Cash Fund Legal & General (LGIM) Global Equity (50:50) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund

51 51 Lifestyle profile with automated switching within 6 years of retirement FOR BOTH CPS AND GAVC CONTRACTS CONSENSUS INDEX/OVER 15 YEAR GILTS 6 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Monthly Lifestyle profiles with automated switching within 5 years of retirement FOR CPS CONTRACTS 70:30 GLOBAL EQUITY 5 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Consensus Index Fund. It switches into the Legal & General (LGIM) Over 15 Year Gilts Index Fund and the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity (70:30) Index Fund. It switches into the Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund and the Legal & General Cash Fund. PROFILE CODE: LMTQ 100% PROFILE CODE: LLXQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) Consensus Index Fund Legal & General (LGIM) Over 15 Year Gilts Index Fund Legal & General Cash Fund Legal & General (LGIM) Global Equity (70:30) Index Fund Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund Legal & General Cash Fund

52 52 60:40 GLOBAL EQUITY 5 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly 50:50 GLOBAL EQUITY 5 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (60:40) Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (50:50) Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. PROFILE CODE: LLLQ 100% PROFILE CODE: LLNQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) Global Equity (60:40) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund Legal & General (LGIM) Global Equity (50:50) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund

53 53 Lifestyle profiles with automated switching within 5 years of retirement FOR GAVC CONTRACTS UK EQUITY INDEX 5 YEAR CPS LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly 70:30 GLOBAL EQUITY 5 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) UK Equity Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund and the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity (70:30) Index Fund. It switches into the Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund. PROFILE CODE: LLPQ 100% PROFILE CODE: LLZQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) UK Equity Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General Cash Fund Legal & General (LGIM) Global Equity (70:30) Index Fund Legal & General (LGIM) Over 5 Year Index-Linked Gilts Index Fund

54 54 60:40 GLOBAL EQUITY 5 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly 50:50 GLOBAL EQUITY 5 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (60:40) Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity (50:50) Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund. PROFILE CODE: LLRQ 100% PROFILE CODE: LLTQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) Global Equity (60:40) Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General (LGIM) Global Equity (50:50) Index Fund Legal & General (LGIM) Pre-Retirement Fund

55 55 Lifestyle profiles with automated switching within 5 years of retirement FOR BOTH CPS AND GAVC CONTRACTS UK EQUITY INDEX 5 YEAR GAVC LIFESTYLE PROFILE How frequently does automatic switching take place? Quarterly 50:50 GLOBAL EQUITY/CASH 5 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Monthly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) UK Equity Index Fund. It switches into the Legal & General (LGIM) Pre-Retirement Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (50:50) Index Fund. It switches into the Legal & General Cash Fund. PROFILE CODE: LLVQ 100% PROFILE CODE: LMLQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) UK Equity Index Fund Legal & General (LGIM) Pre-Retirement Fund Legal & General (LGIM) Global Equity (50:50) Index Fund Legal & General Cash Fund

56 56 60:40 GLOBAL EQUITY/CASH 5 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Monthly CONSENSUS INDEX/CASH 5 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Monthly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Global Equity Fixed Weights (60:40) Index Fund. It switches into the Legal & General Cash Fund. What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Consensus Index Fund. It switches into the Legal & General Cash Fund. PROFILE CODE: LMMQ 100% PROFILE CODE: LMKQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) Global Equity (60:40) Index Fund Legal & General Cash Fund Legal & General (LGIM) Consensus Fund Legal & General Cash Fund

57 57 THE DUAL FUND LIFESTYLE PROFILE How frequently does automatic switching take place? Annually THE TRIPLE FUND LIFESTYLE PROFILE How frequently does automatic switching take place? Annually What funds does the profile invest in? This initially invests in the Legal & General Managed Fund. It switches into the Legal & General Index-Linked Gilt Fund. What funds does the profile invest in? This initially invests in the Legal & General Managed Fund and switches into the Legal & General Index-Linked Gilt Fund and the Legal & General Fixed Interest Fund. PROFILE CODE: LLDQ 100% PROFILE CODE: LLEQ 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General Managed Fund Legal & General Index-Linked Gilt Fund Legal & General Managed Fund Legal & General Index-Linked Gilt Fund Legal & General Fixed Interest Fund

58 58 ETHICAL EQUITY/CASH 5 YEAR LIFESTYLE PROFILE How frequently does automatic switching take place? Monthly What funds does the profile invest in? This initially invests in the Legal & General (LGIM) Ethical UK Equity Index Fund and the Legal & General (LGIM) Ethical Global Equity Index Fund. It switches into the Legal & General Cash Fund. PROFILE CODE: LMWQ 100% 90% 80% 70% 60% 50% 40% % INVESTED IN EACH FUND 30% 20% 10% 0% YEARS TO SELECTED RETIREMENT AGE 1 0 Legal & General (LGIM) Ethical UK Equity Index Fund Legal & General (LGIM) Ethical Global Equity Index Fund Legal & General Cash Fund

59 59 FUND SPECIFIC RISKS. The fund specific risks are described on this page and the next. Each fund listed in the Our Funds section shows the numbers of the risks that apply to that fund. You should match the numbers shown for each fund with those listed on this page and the next. You will note there appear to be some missing numbered fund specific risk definitions from this list. This is because we apply these definitions across a wide range of different products and not all risks apply to all of our product types. Only those factors which apply to these products are shown on this page and the next. Please note that the fund specific risks are in addition to the risks set out in the Key Features. 2) CURRENCY CHANGES The fund may hold assets in currencies that are not Sterling (British pounds). If the value of these currencies falls compared to Sterling this may cause the fund s value to go down. 3) SMALLER COMPANIES The fund invests in smaller companies that tend to be riskier than large companies. This is because their shares can be harder to buy and sell, and the value of them may go up and down more often and by larger amounts, particularly in the short term. 4) FIXED INTEREST SECURITIES The fund invests in fixed interest securities usually corporate and Government bonds. Investment returns are particularly sensitive to longer-term interest rates, typically those for five years and more. Fund values are likely to fall when these interest rates rise. The financial strength of a company or government issuing a fixed interest security determines their ability to make some or all of the payments due. If this financial strength weakens, the chances of them not making payments increases and this could reduce the fund s value. 8) EQUITIES As the fund invests in equities (shares of companies), there s a higher risk of fund values falling than investing in most other asset types, particularly in the short term. 9) DERIVATIVES This fund invests in derivatives and so may be higher risk than funds that invest in other types of assets. In addition, there are some derivatives whose value falls even though the market is rising. If any of the companies with whom the fund has taken out a derivative experiences financial difficulties, it may be difficult to value the derivative or for it to be sold. This may reduce the value of your investment. 11) LIMITED HOLDINGS Most funds spread investments across lots of individual holdings, rather than relying on the performance of just a few. The whole of this fund, or a large part of it, invests in relatively few individual holdings. This means that a fall in the value of an individual holding can have a major impact on the overall performance of the fund.

60 60 13) SUB-INVESTMENT GRADE CORPORATE BONDS Corporate bonds are assessed by independent analysts. They rate them depending on how likely the company who issues the bond is to fail to pay the interest due and/or to repay the original capital on the agreed date. They re divided into two categories: Investment grade. These are bonds with the least risk Sub-investment grade. These bonds are more risky than investment grade bonds. The fund invests in sub-investment grade corporate bonds so there s an increased risk of fund values falling due to non-payment by the companies issuing the bonds. 14) COMMERCIAL PROPERTY Property can be difficult to buy or sell. This could mean: Cash remains uninvested and/or Property may have to be sold for less than expected. If an unexpectedly large number and/or value of withdrawals are requested: The fund manager may be forced to sell properties quickly. This could mean that properties are sold for less than expected which could reduce the value of your investment. 17) MONEY MARKET INSOLVENCY The fund invests in money market assets, which includes deposits in banks and other financial institutions. If any of these suffer financial difficulties or become insolvent, they may not pay back some or all of the amount invested with them. This could mean that you might not get back the full value of your investment. 20) SPECIALIST The fund invests in companies from a particular market sector which means that there is a higher level of risk. The value of your investment may go up and down more often and by larger amounts than funds that are spread more widely, particularly in the short term. 22) DEVELOPING MARKETS The fund invests in countries where investment markets are not as well developed as those in the UK. This means that investments are generally riskier than those in the UK because they: are not as well regulated are more difficult to buy and sell have less reliable arrangements for the safekeeping of assets. There are times when it s not possible to sell properties quickly. If this happened at the same time as you asking us to withdraw money from the fund, we might need to delay dealing with your request. You could wait for as long as six months. If the size of the fund falls significantly, the fund may have to hold fewer properties. This may lead to an increase in risk. Rental growth is not guaranteed and unpaid rent could affect the performance of your investment. The value of property is generally a matter of a valuer s opinion rather than fact. 15) ETHICAL The ethical standards used for this fund mean that it cannot invest in some companies or in certain sectors (for example tobacco or mining). These restrictions mean that the value of your investment may go up and down more often and by larger amounts than a fund without such restrictions, particularly in the short term.