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There is a range of funds available, the customer can choose to invest
in these funds with an ISA wrapper or if they have used up their ISA allowance they can invest in them as a Unit Trust.
What is an
ISA?
ISA stands for Individual Savings Account.
An ISA is simply a tax wrapper around a product, for example a unit trust, which makes it more tax-efficient. ISAs were introduced
by the Government to encourage more people to save. Investing in an ISA allows you to shelter your money from the taxman,
as you can keep all the proceeds that you receive from that investment without paying income or capital gains tax. You don’t even have
to declare your ISA on your tax return. Tax assumptions are those currently applicable and are subject to statutory change. The
value of the tax advantages will depend on your individual financial circumstances.
What is a Unit Trust?
A unit trust is a collective investment which may invest in one or more of a range of
assets, for example equities, fixed interest securities, commercial property or cash. Because money from lots of investors
is pooled together, the unit trust, for example, buy shares in a range of different companies listed on the stock market,
or a range of other securities rather than investing in just a few.
An ISA is a wrapper to allow the unit
trust to be tax efficient. Once you have used up your ISA allowance, unit trusts are a good way to invest additional funds
and should be viewed as medium to long-term investments of at least five years.
Fund Types
The funds available
include funds from across different world areas, different sectors and different types of investment funds.
Index tracking
funds – This is where the fund will aim to track the performance of a specified index by investing in all the companies
within that index. These funds tend to have lower costs and can be a first step into investments for new customer. They can
choose from a range of funds including
■UK
Index
■UK
100 Index
■Pacific
Index Trust
■European
Index Trust
■Japan
Index Trust
■Global
100 Index Trust
■Global
Technology Index Trust
■Global
Health and Pharmaceuticals Index Trust
Actively
managed funds – These are funds that are actively managed by a fund manager. The fund manager will handpick the stocks
that are within fund to try to maximise growth against a fund strategy. These funds are often more risky than index tracking
funds and are for more experienced investors. The funds that Legal & General offer:
■UK Alpha Trust
■Growth
Trust
■UK
Active Opportunities Trust
■UK Smaller Companies Trust
■European Trust
■North
American Trust
■Japanese
Trust
■Asian
Income Trust
■Pacific
Growth Trust
■Global
Growth Trust
■Worldwide
Trust
■Equity
Trust
■UK
Property Trust
Income Funds – These
are a range of funds that invest in Fixed Interest Securities such as corporate bonds (loans to companies) and government
securities (loans to the UK Government which are known as gilts). Their aim is to provide investors for a regular income.The funds that Legal & General offer:
■Fixed
Income Trust
■High
Income Trust
■Managed
Income Trust
■Managed
Monthly Income Trust
Ethical Fund - The Legal
& General Ethical Trust gives you a share of an investment fund – the Ethical Trust – which invests in FTSE
350 companies excluding companies who don’t meet certain ethical criteria.
Multi Manager Funds – These
are funds which allow you to invest in several funds at the same time through one simple investment. A professional fund manager
selects, monitors and changes the underlying funds based on set criteria, most notably the investment quality and the investment
objectives of the providers.
■Multi
Manager Income Trust
■Multi
Manager Growth Trust
■Multi
Manager Balanced Trust
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