Income Fund Key Investor Information Document - Royal Bank of ...
Income Fund Key Investor Information Document - Royal Bank of ...
Income Fund Key Investor Information Document - Royal Bank of ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Income</strong><strong>Fund</strong>KEY INVESTOR INFORMATIONThis document provides you with key investor information about this <strong>Fund</strong>. It is not marketing material. Theinformation is required by law to help you understand the nature and the risks <strong>of</strong> investing in this <strong>Fund</strong>. You areadvised to read it so you can make an informed decision about whether to invest.<strong>Income</strong> <strong>Fund</strong>, a sub-fund <strong>of</strong> the RBS Investment Options ICVC (ISIN: GB00B2RJG506)This <strong>Fund</strong> is managed by RBS Collective Investment <strong>Fund</strong>s Limited, part <strong>of</strong> The <strong>Royal</strong> <strong>Bank</strong> <strong>of</strong> Scotland Group plcOBJECTIVES AND INVESTMENT POLICYTo achieve a regular and growing level <strong>of</strong> income andcapital growth over the long term, (minimumrecommended term <strong>of</strong> 5 years).To achieve this, this <strong>Fund</strong> mainly invests in equities,bonds (fixed interest), and cash deposits.Investments can be made in overseas assets and themix will vary over time, but most investments will be inmarkets in the UK, North America, Europe and Asia.This <strong>Fund</strong> does not normally invest directly in individualstocks and shares, but makes investments throughother funds with specialist managers. The selection <strong>of</strong>these underlying funds is based upon that fund'sinvestment manager delivering performance within setcriteria. The <strong>Fund</strong> Manager is able to makediscretionary choices when deciding which investmentsshould be held in this <strong>Fund</strong>. These investmentdecisions will always be made within the constraints <strong>of</strong>this <strong>Fund</strong>’s objective and investment policy.This <strong>Fund</strong> does not have targets in relation to anyindustrial, geographic or other market sector or class <strong>of</strong>assets but is benchmarked against the IMA MixedInvestment 20-60% Sector, which represents theaverage <strong>of</strong> funds with similar investment criteria.You may normally sell your shares in this <strong>Fund</strong> on eachBusiness Day. Requests to sell received and acceptedby 5pm on a Business Day will be dealt at the pricecalculated on the next Business Day.This <strong>Fund</strong> issues <strong>Income</strong> shares and you can chooseto have your distribution <strong>of</strong> income paid directly to yourbank or building society current account. Alternatively,you may choose to have income distributionsautomatically reinvested, to purchase further shares <strong>of</strong>the same Class and <strong>Fund</strong>.This <strong>Fund</strong> may not be appropriate for investors whoplan to withdraw their money within 5 years.RISK AND REWARD PROFILELower riskTypically lower rewardsHigher riskTypically higher rewards1 2 3 4 5 6 7These ratings indicate how this <strong>Fund</strong> may perform andthe risk <strong>of</strong> losing some or all <strong>of</strong> your capital. Generallythe potential for higher gains also means a higher risk<strong>of</strong> losses. The lowest rating does not mean a risk freeinvestment.This <strong>Fund</strong> is ranked at 4 because funds <strong>of</strong> this typehave experienced average rises and falls in value inthe past. The risk and reward category for this <strong>Fund</strong> isnot guaranteed to remain unchanged, and may shiftover time.Historical data, such as is used for calculating therating, may not be a reliable indication <strong>of</strong> the future riskpr<strong>of</strong>ile <strong>of</strong> this <strong>Fund</strong>.The following risk factors contribute to the overall riskand reward indicator:1. We take some or all <strong>of</strong> the annual managementcharge from capital. Because <strong>of</strong> this, your capital maybe reduced over time if this <strong>Fund</strong>’s growth does notcompensate for it. Also, any capital growth this <strong>Fund</strong>produces will be reduced by the charges.2. This <strong>Fund</strong> invests in company stocks and sharesand their value depends on the financial state <strong>of</strong> theunderlying companies. Any fall in the financial outlookfor, or failure <strong>of</strong>, such companies can reduce this<strong>Fund</strong>’s share price and the income that it pays.3. As this <strong>Fund</strong> holds fixed interest securities the level<strong>of</strong> income that this <strong>Fund</strong> provides will <strong>of</strong>ten vary fromone payment to another. In addition, the share priceand income from this <strong>Fund</strong> will rise and fall due tomovements in interest rates and inflation.4. This <strong>Fund</strong> invests in overseas investments and theshare price will go up and down in line with movementsin exchange rates as well as the changes in value <strong>of</strong>this <strong>Fund</strong>’s holdings.5. This <strong>Fund</strong> may have some investment in securitiesissued by companies in so-called ‘emerging markets’.This carries a higher risk than investing in larger,established markets. Investments in emerging marketsare likely to experience greater rises and falls in value,and may have problems in trading and settlement.6. Smaller companies are likely to be financially weakerand less well established than larger companies.Therefore shares in such companies are generally ahigher risk investment than shares in larger companies.7. The valuation <strong>of</strong> property is generally a matter <strong>of</strong>valuer’s opinion rather than fact. Property may sell forless than it is valued at, which would reduce this <strong>Fund</strong>’sshare price. The share price will reflect:– Property values and rental income– Capital value and dividends <strong>of</strong> property relatedshares.
<strong>Income</strong><strong>Fund</strong>CHARGESOne-<strong>of</strong>f charges taken before or after you investEntry charge 5.00%Exit charge NoneThis is the maximum that might be taken out <strong>of</strong> yourmoney before it is invested or paid outCharges taken from this <strong>Fund</strong> over a yearOngoing charge 2.00%Charges taken from this <strong>Fund</strong> under certain specificconditionsPerformance fee NoneThe charges you pay are used to pay the costs <strong>of</strong> runningthis <strong>Fund</strong>, including the costs <strong>of</strong> marketing and distributingit, but not the costs <strong>of</strong> any advice you have been given.Portfolio transaction costs (estimated) are also included.These charges reduce the growth <strong>of</strong> your investment.Any entry and exit charges shown are maximum figures,and in some cases investors may pay less.Ongoing charges are based on the expenses for the yearending 31/10/2013, and this figure may vary from year toyear.For more information about charges, please see the Feesand Expenses section <strong>of</strong> this <strong>Fund</strong>'s prospectus. The<strong>Fund</strong>’s Annual Report for each financial year will includedetail on the exact charges made. Alternatively you can findout the actual charges which apply to your investment bycontacting your financial adviser or by contacting us usingthe details given in the Practical <strong>Information</strong> section.PAST PERFORMANCEThis chart shows how much this <strong>Fund</strong>increased or decreased in value as apercentage in each year, allowing for any<strong>Income</strong> payments made, alongside itsbenchmark, IMA 20-60% Mixed InvestmentSector. As noted in the Objectives section,this <strong>Fund</strong> also aims to deliver a yield <strong>of</strong> 120%or over <strong>of</strong> the dividend yield <strong>of</strong> the FTSE® AllShare Index.Performance has been calculated in PoundsSterling and takes account <strong>of</strong> ongoingcharges, but excludes entry and exit charges.This <strong>Fund</strong> was launched in 2008.Past performance is not a reliable guide t<strong>of</strong>uture performance.PRACTICAL INFORMATIONThe Investment Manager for this <strong>Fund</strong> is Aviva <strong>Investor</strong>sGlobal Services Limited.The Depositary for this <strong>Fund</strong> is JP Morgan Trustee &Depositary Company Limited who are responsible for thesafekeeping <strong>of</strong> this <strong>Fund</strong>’s assets and ensuring this <strong>Fund</strong> ismanaged in accordance with FCA rules.For more information about this <strong>Fund</strong> or to obtain copies <strong>of</strong>the Prospectus, or Report and Accounts for this <strong>Fund</strong> inEnglish at no charge, you can write to us at:RBS Collective Investment <strong>Fund</strong>s LimitedPO Box 9908ChelmsfordCM99 2AFTel: 0845 300 2585Customers with hearing and speech impairments can contactus by minicom (RBS 0800 404 6160 / NW 0800 917 0526).The prices and latest yields are published daily in theFinancial Times. Alternatively they are available on theinvestment pages <strong>of</strong> http://www.rbs.co.uk/personal/investments.ashx or http://www.natwest.com/personal/investments.ashx, or by telephoning the number above.This <strong>Fund</strong>'s assets and liabilities are segregated from theother <strong>Fund</strong>s available within the RBS Investment OptionsICVC. This <strong>Fund</strong>’s assets shall not be used to discharge theliabilities <strong>of</strong> the other <strong>Fund</strong>s within this ICVC.Tax legislation in the UK may have an impact on yourpersonal tax position.RBS Collective Investment <strong>Fund</strong>s Limited may be held liablesolely on the basis <strong>of</strong> any statement contained in thisdocument that is misleading, inaccurate or inconsistent withthe relevant parts <strong>of</strong> the Prospectus for this <strong>Fund</strong>.This <strong>Fund</strong> is not open to new investors. However existinginvestors have the ability to switch into another <strong>Fund</strong> withinthis ICVC, but must use a <strong>Fund</strong> Switch Form which can beobtained on-line from the investment pages <strong>of</strong> http://www.rbs.co.uk/personal/investments.ashx or http://www.natwest.com/personal/investments.ashx.This <strong>Fund</strong> and Aviva <strong>Investor</strong>s Global Services Limited are authorised in the United Kingdom and regulated by theFinancial Conduct Authority.This key investor information is accurate as at 17 February 2014.