Portfolio Investment Plan FAQ
What is the NFU Mutual Portfolio Investment Plan?
When you invest in the Portfolio Investment Plan, your money buys shares in one or more funds within the NFU Mutual OEIC (Open-Ended Investment Company).
The Portfolio Investment Plan is a medium to long-term investment, and its value can go down as well as up so you may not get back what you invested.
Am I eligible?
You must be aged 18 or over to apply for your own Portfolio Investment Plan. Alternatively, an individual over the age of 18 can invest in a Plan on behalf of a child.
How much can I invest?
You can invest via lump sums or regular contributions. Any lump sum investment must be at least £1,000 (including top-ups), there is no maximum investment limit.
The minimum regular contribution is £25 per month.
What if I want a break from paying regular contributions?
You can stop, restart, increase or decrease your regular payments at any time.
Can I take money out of my plan?
Yes. You can write to us at any time and cash in some or all of your shares but, if you do not surrender them all, you must currently leave at least £1,000 invested and the withdrawal itself must be at least £500.
If you cash in your investment, you may not get back what you have invested.
How can I follow the progress of my investment?
You will receive two statements a year showing all transactions since your last statement and the number and value of your shares.
How much might it pay out?
You can request an illustration of potential benefits by calling our Customer Services Team free on 0800 622 323.
The actual amount will, however, depend on the performance of your chosen fund(s) and any withdrawals made.
Does the Portfolio Investment Plan produce an income?
Yes. You can choose to take the income generated if you wish. Alternatively, the income will automatically be reinvested into the fund from which it was generated.
What funds are available to invest in?
There are three funds to choose from:
1. NFU Mutual gilt and corporate bond fund
Risk Rating: Low - Medium: You're comfortable with some risk to your money. You accept that other types of investment may provide the potential for better returns.
Objective: To provide a return from a portfolio investing mainly in gilts and investment grade corporate bonds.
Strategy: The fund will invest in a portfolio of bonds and other fixed and floating rate securities denominated mainly in sterling and issued by governments, government agencies, supra national and corporate issuers (including preference shares). Corporate bonds and other securities purchased by the fund will be of investment grade and have terms of at least five years when bought. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.
2. NFU Mutual global growth fund
Risk Rating: Medium - High: You're willing to accept significant risk for the potential for good long-term returns. You're happy to invest fully or heavily in equities and accept the possibility of extreme changes in the value of investments.
Objective:
To achieve long-term growth through investment in any country and in any economic sector of the world.
Strategy: Although investments will be made in any country the fund is biased towards the worlds major equity markets, particularly North America, Europe and Japan. The fund will invest mainly in equity securities. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.
3. NFU Mutual UK growth fund
Risk Rating: Medium - High: You're willing to accept significant risk for the potential for good long-term returns. You're happy to invest fully or heavily in equities and accept the possibility of extreme changes in the value of investments.
Objective:
To achieve long-term capital growth with a moderate but growing income, by maintaining a portfolio mainly of high quality UK ordinary shares in investment sectors where opportunity for growth is most favourable
Strategy: The fund will invest in ordinary shares and convertible stocks of UK companies. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.
Can I switch funds easily?
Yes. You can switch your investment to a different fund at any time. There is currently no charge for this. If you want to switch only part of your investment, a minimum of £500 must be switched. You should be aware that switching could trigger a potential liability to Capital Gains Tax.
Full details of this plan can be found in the Portfolio Investment Plan Simplified Prospectus which should be read and understood before you decide to proceed with any purchase. This can be requested via our contact us page or by calling free on 0800 622 323.
For security and training purposes, telephone calls may be recorded and monitored. Your enquiry may result in a call from an NFU Mutual Financial Consultant or Customer Telephone Adviser who advises on NFU Mutual's products and services and in special circumstances those of other providers.
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