Download My LV= Pension Plan Mixed Asset Fund Fund Factsheet 4th Quarter

My LV= Pension Plan
Mixed Asset Fund
Fund Factsheet 4th Quarter 2012
This factsheet has been produced to provide you with information on this blended fund. It includes information on the investment
objective of the fund, where the fund is invested, risk information and may also include past performance. This factsheet is for information
only. It is not designed to provide advice on the suitability of an investment for your personal financial situation. If you have any questions
regarding the information included in this factsheet, you are recommended to speak to the Trustees in the first instance.
This fund is made available by Friends Life. The aim and objective of this fund has been set by the Trustees of My LV= Pension Plan.
The Trustees are responsible for selecting the funds held within the blended fund which may change from time to time. The most up to
date factsheet is available from https://my-plans.friendslife.co.uk/pub/microsites/corporate/lv. Additional information may be available
from the Trustees.
Investment Objective
This fund invests in a mix of shares (UK and overseas), bonds and gilts. It aims for returns in line with the average performance/
volatility of pension scheme investments with a balanced asset allocation of this nature.
Investment Method
This fund is invested in the Blackrock Aquila Consensus Fund and aims to produce consistent investment performance in line with
the average UK pension fund. It seeks to avoid any violent swings between the upper and lower ends of the pension fund
performance league tables. The fund is passively managed.
Blackrock Aquila Consensus Fund Information (as at
31/12/2012)
Fund Information (as at 31/12/2012)
Launch Date
Fund size (£m)
Benchmark
Risk Category*
Special Risk Factors**
17/12/2009
2.67
CAPS Median Ex Property and Emerging
Markets
Adventurous
ABC
* The risk category has been determined by Friends Life.
Please see the description of the risk ratings on the following
page(s).
** Some funds carry particular risks. Please see the description
of the special risk factors which apply to this fund on the
following page(s).
Launch date
Fund size (£m)
01/02/2003
1418.60
My LV= Pension Plan
Mixed Asset Fund
Fund Factsheet 4th Quarter 2012
Asset Allocation for Blackrock Aquila Consensus Fund (as at 31/12/2012)
UK Equities
41.3
US Equities
13.9
European Equities
12.8
Money Market
8.3
Asia Pacific ex Japan Equities
5.7
Global Fixed Interest
5.6
UK Fixed Interest
3.9
Global Corporate Fixed Interest
3.9
Japanese Equities
3.7
Others
0.9
May not add up to 100% due to rounding and other adjustments.
Geographical Allocation for Blackrock Aquila Consensus Fund (as at 31/12/2012)
UK
46.1
USA
13.9
Europe
12.8
Money Market
8.3
Pacific Rim
5.7
International
5.6
Not Specified
3.9
Japan
3.7
May not add up to 100% due to rounding and other adjustments.
Principal Holdings for Blackrock Aquila Consensus Fund (as at 31/12/2012)
1. BLACKROCK AQUILA LIFE UK EQUITY
INDEX PN S2 NAV
2. BLACKROCK AQUILA LIFE US EQUITY
INDEX PN S2 NAV
3. BLACKROCK AQUILA LIFE EUROPEAN
EQUITY INDEX PN S2 NAV
4. BLACKROCK AQUILA LIFE CASH PN S2
NAV
5. BLACKROCK AQUILA LIFE PACIFIC RIM
EQUITY INDEX PN S2 NAV
41.4%
13.9%
12.8%
8.2%
5.7%
6. BLACKROCK AQUILA LIFE OVERSEAS
BOND INDEX PN S4
7. BLACKROCK AQUILA LIFE ALL STOCKS
UK GILT INDEX PN S1
8. BLACKROCK AQUILA LIFE CORPORATE
BOND INDEX ALLSTOCK PN S1
9. BLACKROCK AQUILA LIFE JAPANESE
EQUITY INDEX PN S2 NAV
10. BLACKROCK AQUILA LIFE ALL STOCKS
UK INDEX LINKED GILT INDEX PN S1
NAV
5.6%
3.9%
3.9%
3.7%
0.9%
Discrete net performance of the Mixed Asset Fund to end of December 2012
% growth
(31/12/11-31/12/12)
(31/12/10-31/12/11)
(31/12/09-31/12/10)
(31/12/08-31/12/09)
(31/12/07-31/12/08)
10.4%
-5.2%
14.2%
-
-
Please be aware that past performance is not a guide for future performance.
My LV= Pension Plan
Mixed Asset Fund
Fund Factsheet 4th Quarter 2012
Cumulative performance of the Mixed Asset Fund to end of December 2012
% growth
1 year
2 years
3 years
5 years
10 years
10.4%
4.6%
19.5%
-
-
(31/12/09-31/12/10)
13.8%
(31/12/08-31/12/09)
19.9%
(31/12/07-31/12/08)
-18.7%
5 years
16.9%
10 years
-
Discrete performance of the underlying fund to end of December 2012
% growth
(31/12/11-31/12/12)
10.8%
(31/12/10-31/12/11)
-4.8%
Cumulative performance of the underlying fund to end of December 2012
% growth
1 year
10.8%
2 years
5.5%
3 years
20.0%
The performance information above does NOT relate to the Mixed Asset Fund fund, but to the current underlying fund, which is the
Blackrock Aquila Consensus Fund. The performance of the Mixed Asset Fund will not match that of the Blackrock Aquila Consensus
Fund, for example due to fund charges, pricing points, appropriate adjustments for taxation or because the underlying funds held have
changed.
Please be aware that past performance is not a guide for future performance. The value of units may fall as well as rise and is
not guaranteed. You may get back less than you invest. The fund has a single daily price which means that on any given day,
Friends Life uses the same price for buying and selling units. Any income the fund receives will be reinvested in the fund.
Fund information and performance figures are compiled using data sourced by FE (formerly Financial Express).
Performance Information
This fund is made available by Friends Life only and may purchase assets (such as shares or bonds) or units in other funds as
specified by the Trustees of My LV= Pension Plan who are responsible for selecting the fund(s) held within the blended fund; these
funds can change from time to time. Performance is calculated using the unit price for the periods shown.
Although Friends LIfe takes every care to ensure that the data provided by, or to, external sources about funds is accurate,
occasionally discrepancies may occur for example due to pricing delays. In all cases Friends Life will endeavour to ensure that these
discrepancies are corrected at the earliest opportunity. Friends Life accept no liability for loss due to such discrepancies, for example
where the investor has relied on the information contained in the individual fund factsheet to help them make investment decisions.
Information about charges
Charges are taken to pay for the fund management, policy administration and any other costs reasonably incurred. In addition to the
fund management charge, there may be additional fund expenses. These are expenses incurred by the fund such as custodian fees,
audit fees, depository/trust fees. The performance figures include the charges which will apply. Additional information may also be
available from the Trustees.
Pricing
The unit price of this fund normally reflects the price at which the underlying assets can be purchased. However, when there are more
units being cancelled from a fund than are being purchased, the unit price will normally be lower to reflect the price at which the
underlying assets can be sold.
Where a fund invests in shares or other assets which are designated in a different currency to the fund, prices may rise and fall purely
as a result of exchange rate fluctuations. Where the underlying fund is denominated in a different currency to the blended fund,
exchange rates will influence the blended fund past performance figures either positively or negatively.
It should be noted that the performance of the Friends Life fund may not necessarily match the performance of the underlying fund
due to fund charges and appropriate adjustments for taxation.
My LV= Pension Plan
Mixed Asset Fund
Fund Factsheet 4th Quarter 2012
Continued from previous page
Friends Life reserves the right to revise its charges at any time.
Different funds carry different levels of risk. Investors may not get back the full amount invested.
Restrictions on transactions
Friends Life may delay dealings in a fund such as surrenders or switches for up to one month (for example when dealings on a stock
exchange are suspended), or six months for funds that invest in property (so that a property can be sold if necessary). In exceptional
circumstances these periods may be extended where this is fair to policyholders invested in a fund. Any transactions delayed will be
based on the unit price when the transaction actually takes place
For further information about moving your investments please refer to the information made available by the Trustees.
Factsheets are updated quarterly. The most up to date factsheet is available from:
https://my-plans.friendslife.co.uk/pub/microsites/corporate/lv.
My LV= Pension Plan
Mixed Asset Fund
Fund Factsheet 4th Quarter 2012
Introduction to risk categories
There are various ways to measure risk. We categorise the risks involved in the fund range by taking into account the ‘volatility’ of
each asset class. This means the ups and downs in the returns of an investment in relation to its value over a fixed period. We use
volatility as a guide to help you understand the risks and potential rewards involved with our funds and the types of assets they hold.
Each increase in the level of risk represents an increase in the potential for your money to grow. It also means an increase in the
likelihood of the value of your fund fluctuating dramatically or falling and you losing some or all of your money. We grade all our
investment funds according to the risks involved. We have five categories with Very Cautious representing the lowest level of risk and
Very Adventurous representing the highest.
How accurate are the risk categories?
They are simply a guide. Fund values will normally fall and rise in line with movements on the investment markets. This is known as
volatility. Over time a fund manager may change the assets they invest in meaning that funds could move from one risk category to
another. Each of our funds has been assigned a risk category based on our method of assessing risk. It is important that you check
the risk category of any fund you consider investing in. Please note that if a fund name contains the same words as one of our risk
categories, this does not necessarily mean that it belongs in that category. You should also bear in mind that funds investing in the
same asset classes may perform differently as the actual assets in each fund will be different. You should review your fund choice
regularly to make sure it is still meeting your objectives.
Very Cautious
You are only willing to accept a very low risk to your investment and wish typically to invest wholly in Money Market assets. You
understand that the potential for growth is small and that over the long term inflation will reduce the buying power of Money Market
assets. As you typically wish to invest wholly in Money Market assets an investment product is likely to be unsuitable for you as
investments in such products will fluctuate in value and are not guaranteed to return your capital. Product and fund charges could
exceed any growth meaning you could get back less than you invest.
Cautious Managed
These funds will hold investments in shares and other non-money market investments so there may be potential risk to the amount
you invest. You are looking for an investment where the return over the long term is expected to be an improvement on that available
from high street deposit accounts. You are willing to take some risk in order to seek some growth potential. You understand that this
will increase the amount by which your investment will fall and rise in value. However, under normal circumstances, you would feel
uncomfortable if your investments fell and rose sharply in value. You could get back less than you invest. Typically, you would
consider investing in Money Market, Fixed Interest, Property and also in Shares.
Balanced Managed
You are looking for a balance of risk and reward with the aim that, in the long term, higher returns may result than those available from
more cautious investments. You are willing to accept that the value of your investment will fall and rise in value. You could get back
less than you invest. Typically, you would consider investing in a wide variety of assets, such as Shares, Money Market, Fixed Interest
and Property. Risk will usually be reduced by spreading investment across a variety of sectors and markets and/or limiting exposure
to overseas markets.
Adventurous
You are willing to accept a high level of risk on your investment in order to seek higher growth potential, in the longer term, than is
available on less speculative investments. You are prepared to accept that this will increase the risk of large fluctuations in the value
of your investment and of losing some or possibly all of your capital. You could get back less than you invest. Typically, you would
consider investing in a narrow range of asset classes, primarily in Shares. There may also be exposure to currency risk via investment
in overseas markets.
Very Adventurous
You are willing to accept a very high level of risk on your investment in order to seek very high growth potential in the long term. You
are willing to accept sudden and large day-to-day fluctuations in the value of your investments and you accept the risk of losing some
or all of your capital and that you could get back less than you invest. Typically, you would consider investing in Shares in specialist
equity markets or sectors, which are expected to be particularly volatile e.g. Emerging Markets. There will be exposure to currency
risk via significant investment in overseas markets.
My LV= Pension Plan
Mixed Asset Fund
Fund Factsheet 4th Quarter 2012
Introduction to Special Risk Factors
Some funds carry particular risks because of the type of asset and area of the world they invest in.
A Currency
Where a fund holds investments in a different currency to the fund, the value of the fund may rise and fall purely because of
exchange-rate fluctuations.
B Emerging Markets
Emerging market funds may be subject to large fluctuations in value and in our opinion such funds are high risk. Companies in
emerging markets may not be regulated as strictly and their shares may be harder to buy and sell than companies in more developed
markets.
C Smaller Companies
The price fluctuations of funds investing in smaller companies may be greater than the price fluctuations of funds investing in larger
companies.
The address for written communications is Friends Life, PO Box 6272, Basingstoke, Hampshire RG21 6SH. The telephone number of Friends Life
Corporate Client Services is 0845 026 0422. Friends Life Services Limited distributes and administers financial products and services and is authorised
and regulated by the Financial Services Authority, register No. 185746 (www.fsa.gov.uk/register/home.do). A company limited by shares, registered in
England No. 3424940, registered office: Pixham End, Dorking, Surrey, RH4 1QA. As part of our commitment to quality service, telephone calls may be
recorded.