WESLEYAN INVESTMENT PORTFOLIOS

WESLEYAN
INVESTMENT
PORTFOLIOS
UNIT TRUSTS AND ISAS
02
WESLEYAN
INVESTMENT
PORTFOLIOS
UNIT TRUSTS AND ISAS
There are thousands of investment funds available
in the UK, so you may find the selection process
daunting. There are many questions that an investor
may have and we aim to help you make a suitable
choice for your current needs.
You may be thinking:
}} what type of funds can best match my
investment goals?
}} is the fund manager information up to date?
}} which specific fund and fund manager should
I select?
}} is there a quick and simple way for me to invest,
without having to research the whole of market?
At Wesleyan we can help answer your questions
and find a solution that matches your attitude to risk.
We offer a unique range of investment portfolios,
each specifically designed to meet the needs of
individual investors.
A range of investment portfolios designed
with your investment goals in mind
The portfolios we offer combine the strengths of
selected fund managers. This includes Wesleyan’s
Investments Managing Director Clive Ward and the
Wesleyan investment management team, as well as
external investment firms that we have carefully selected
with guidance from external, independent consultants.
The Wesleyan investment management team has a wellestablished and proven investment process, focusing on
sound long-term investment opportunities that can be
overlooked by more traditional and committee-based
fund management organisations.
We have selected the external fund managers for their
expertise in the types of funds that complement the
*Source: Cofunds as at 31 March 2015.
Wesleyan funds within the different portfolios.
These fund managers include Royal London which
offers a UK Government Bond, Jupiter, which offers a
highly rated High Income and Global Managed Fund,
and Jupiter’s Merlin Worldwide Portfolio, for investors
who are prepared to take more risk with their money,
which invests in selected funds from a number of
different fund providers.
We invest in these external funds through Cofunds,
the UK’s leading financial planning platform.
Launched in 2001, Cofunds is one of the longestestablished investment platforms in the UK,
administering over £76 billion* in investments.
Cofunds are now fully owned by Legal and General
and run as an independent Business Unit. Cofunds
focuses on delivering an efficient, secure platform
with a wide investment choice. We have chosen
Cofunds as our investment partner as we believe
their service and experience supports our range of
investment portfolios.
Wesleyan Investment Portfolios aim to give you
a clear and easy to understand solution for your
circumstances. You may be thinking about saving
for your child’s education and be looking to invest
entirely in a lower risk portfolio such as our UK
Balanced Portfolio. Alternatively, you may have a
specific investment goal which requires a potentially
large investment return offered by a higher risk
portfolio, such as the UK and International Portfolio.
If you are a more adventurous investor you might
consider the Global Growth Portfolio.
With the support and advice of your Financial
Consultant, you can invest in a portfolio that aims to
meet your investment needs and objectives. With our
unique blend of investment managers, we can help
find a portfolio to suit your current needs.
03
A choice of investment
portfolios to suit your needs
We recommend that if you are invested in equity, you
remain invested for at least five years. There are tax
implications for equity investments which should be
considered before deciding to invest.
As you can see from the table below, we have selected
a range of distinct investment portfolios. Although the
fund mix is different depending on if the investment is
within an ISA (Individual Savings Account) or not, the
portfolios fall into one of four categories.
For more information you can ask your Financial
Consultant for a copy of the key features documents
for each portfolio fund and the key investor information
documents (KIIDs) where available. KIIDs provide
information on the risks, taxes, features and costs for
each fund.
}} Safety First
}} UK Balanced
You can choose to invest in a single portfolio or to
diversify your investment. Diversifying means you are
investing across a number of portfolios, to reflect a
number of different investment goals.
}} UK and International
}} Global Growth
The value of your investment can go up and down
because of market movements. This means you might
get back less than you originally invested.
Your Financial Consultant will advise you throughout
the term of your investment and can help you select
the right portfolio for your investment goals.
Selected Investment Fund
Portfolio
Portfolio Objectives
ISA
Collective investments
Safety First
For those who want capital security from
their investment.
Wesleyan Bank Cash ISA
Wesleyan Cash Fund
UK Balanced
For investors who want the medium to
long-term growth potential of equity
investment, balanced with lower risk
investments such as cash or fixed interest.
Wesleyan Assurance Society
With Profits ISA
Royal London UK
Government Bond Fund
Wesleyan Growth Trust
UK &
International
For investors who want an
investment strategy that includes
wider equity exposure for greater
long-term growth potential.
Wesleyan Growth Trust
Wesleyan International Trust
Wesleyan Growth Trust
Wesleyan International Trust
Jupiter Global Managed Fund
Jupiter High Income Fund
Global
Growth
For investors who are prepared to take
more risk with their money, this is an
equity-focused portfolio that takes a
more international approach to equity
investment. It includes some higher risk
sectors and markets, which offer good
growth potential but greater volatility.
Jupiter Merlin Worldwide
Portfolio
Jupiter Merlin
Worldwide Portfolio
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Wesleyan Investment Portfolios
Why does it make good sense
to spread your investment?
At Wesleyan we believe in a diversified approach
to investing so that you don’t have all your eggs
in one basket. Investing across different products,
assets, funds or fund managers helps to achieve
diversification. Diversification aims to reduce
exposure to risk and the impact of a change in value of
a single investment.
Investors can diversify by using different funds that
invest in different asset classes, industry sectors or
geographic regions. Even those funds that invest
largely in a single asset class can still offer a good level
of diversification. For example, a UK equity fund might
invest in only one asset class but may hold a large
number of individual stocks, therefore minimising the
impact from a significant fall in any one stock.
Wesleyan Investment portfolios blend different funds
and different fund managers (where appropriate)
to provide a range of portfolios to meet different
investment aims. However, please be aware that:
}} the Wesleyan Safety First portfolio invests only in
the Wesleyan Cash Fund;
}} the Wesleyan Safety First ISA portfolio invests
solely in a Cash ISA from Wesleyan Bank; and
}} the Wesleyan UK Balanced ISA portfolio invests
solely in the Wesleyan Assurance Society With
Profits ISA.
The investment expertise
of Wesleyan combined
with specially selected
external fund managers
We selected the external fund managers with advice
from independent consultants. The role of the
consultants is to continue to guide us with the aim of
making sure the external fund managers always offer
quality service and competitive investment returns.
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Why Wesleyan
Investment Fund Managers?
Investing in equities requires a medium to long-term
commitment and is best supported by a stable fund
management team, whose approach and investment
philosophy are designed to deliver good long-term
performance and low volatility. This is reflected in
the Wesleyan fund management team who manage
Wesleyan’s Unit Trusts and With Profits Funds.
The Wesleyan fund management team
demonstrate some compelling characteristics.
}} The team has been established for over 10 years,
providing stability and delivering a consistent
approach to investment decisions.
}} Investment decisions are based on extensive
research of asset classes and individual stocks, with
the aim of identifying investment opportunities
with the potential for superior long-term returns.
}} Investment strategies target stocks that are out of
favour, but the managers feel are under-priced in
relation to their long-term growth potential.
}} The team’s strategy also includes a ‘buy and
hold’ approach, which focuses on stocks that the
managers believe will provide solid returns over the
longer term.
}} Our approach to equity investment is to run
diverse portfolios but where the emphasis is on
quality companies with a track record of proven
profitability, good cash flow, solid asset backing
and the prospect of a growing stream of income
from dividend payments.
The Wesleyan funds used within the portfolios
are managed by Clive Ward, Martin Lawrence and
Marc O’Sullivan.
Clive Ward joined Wesleyan
over 25 years ago, having
worked in various actuarial
and investment roles for
Wesleyan before being
appointed Investment
Manager in 1993. Now,
as Investments Managing
Director, Clive manages the With Profits Fund,
as well as having responsibility for the Society’s
Investment Business Unit. He is a Fellow of the
Institute of Actuaries.
Martin Lawrence has been
a Fund Manager since 2001
and has overall responsibility
for managing several equity
and multi-asset funds.
He joined the Society as
an Investment Analyst in
1995 and is a fully qualified
Associate of the CFA Society of the UK. In addition,
Martin is Head of Investment Research at Wesleyan
and is backed by a team of Fund Managers and
Analysts who are market sector specialists.
Marc O’Sullivan has been
a Fund Manager since 2012,
managing investments across
a number of asset classes.
Marc joined the Society as an
Investment Analyst in 2003
having graduated from the
University of Birmingham
with a degree in Economics. Marc has been a CFA
charterholder since 2008.
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Wesleyan Investment Portfolios
Why Royal London
Asset Management?
Royal London Asset Management (RLAM) is one of the
UK’s leading fund management companies, managing
investment, pension fund and other assets on behalf
of a wide range of clients. RLAM was established in
1988 and is a wholly owned and central part of the
Royal London Group (the UK’s largest mutual life
insurer). Since their inception they have built
a reputation as an innovative, high performing fund
manager, winning new clients as their performance
track record and exceptional client service have
been recognised.
Based in the City of London, their experienced team
of investment specialists manage in excess of
£86.3 billion* of assets investing across all major
asset classes. They offer a range of pooled investment
products as well as providing bespoke solutions to
meet specific objectives.
Their equity managers handle regional and specialist
UK, European, American, Japanese and Asian
portfolios. Their fixed income team manages a range
of assets, from gilts to investment grade and high
yield corporate bonds. They’re also one of the UK’s
leading property investors.
Their ability to deliver investment management
services across all major asset classes, combined with
the strength and stability provided by their parent
company, RLAM has a strong platform from which to
grow further as the marketplace continues to evolve.
Royal London UK Government Bond Fund
complements the Wesleyan Growth Trust within the
Wesleyan UK Balanced Portfolio.
*Source: Royal London as at 31 March 2015. www.rlam.co.uk
The Royal London UK
Government Bond Fund is
managed by Paul Rayner and
Craig Inches. Paul joined RLAM
in June 2005 from SG Asset
Management where he was
Head of UK Bonds. He focuses
on UK and international
government bonds. Paul has considerable experience
in fixed income. He joined Hambros Bank in
1983 where he specialised in fixed income fund
management and was appointed as a Director in
1996. In March 1998, he joined SG Asset Management
for responsibility for the UK fixed income and cash
funds. Paul is a graduate in Economics from the
University of Kent.
Craig Inches joined RLAM
in 2009 after an 11-year
career at Scottish Widows
Investment Partnership,
where he was Fixed Income
Investment Director.
Craig is responsible for the
management of government
bond portfolios including index-linked bonds, gilts and
non-UK sovereign debt. He has an MSc in Investment
Analysis and a BSc (Hons) in Actuarial Mathematics
and Statistics from Heriot-Watt University.
Past performance is not a guide to future performance
and may not be repeated. The value of investments
and the income from them may go down as well as
up and investors may not get back the amount
originally invested.
07
Why Jupiter Unit
Trust Managers Limited?
Established in 1985 as a specialist boutique, Jupiter
has since grown to be one of the UK’s most successful
and respected investment management groups.
Jupiter currently manages some £34.8 billion* worth
of assets, spread across a range of UK and offshore
mutual funds, multi-manager products, institutional
mandates and investment companies.
Jupiter has been investing money for 30 years and
has gained a reputation for achieving outperformance across a broad variety of portfolios
specialising in different markets, including UK equities,
Europe, global financials and emerging markets.
Jupiter is focused on providing a stable and long
term investment platform for their clients as well as
fund out-performance. In 2010 when their holding
company, Jupiter Fund Management plc, was listed on
the London Stock Exchange, a substantial proportion
of their employees owned Jupiter shares. They believe
that this, combined with the fact that the majority
of their fund managers invest their own money into
Jupiter funds, creates a stable environment in which
all employees are committed to the business for the
long term, with their interests aligned with those of
their clients.
We have selected the following three funds managed
by Jupiter fund managers to complement Wesleyan
funds within the UK & International Portfolio and the
Global Growth Portfolio:
}} Jupiter High Income Fund;
}} Jupiter Global Managed Fund; and
}} Jupiter Merlin Worldwide Portfolio.
*Source: Jupiter as at 30 September 2014. www.jupiteronline.com
The Jupiter High Income
Fund is managed by Alastair
Gunn, who became manager
on 1 July 2013, and Rhys
Petheram, who manages
the fixed interest portion
of the Fund. Alastair Gunn
joined Jupiter in 2007 as an
analyst for the UK Equities Team. He is also currently
co-manager of the Jupiter Distribution Fund. Before
joining Jupiter, Alastair was Managing Director of
equity research for Bear Stearns International, prior to
moving on to become a director of equity research at
Arbuthnot Securities in 2003.
Rhys Petheram joined Jupiter’s
Fixed Interest and Multi Asset
Team in 2006. Prior to joining
Jupiter, Rhys was an analyst
at Towers Perrin Australia and
a credit analyst at Moody’s
Investor Services. Rhys has
co-managed the Jupiter High
Income Fund since January 2014. He is also manager of
the Jupiter Corporate Bond Fund and is co-manager of
the Jupiter Distribution Fund.
08
The Jupiter Independent Funds Team consists of
fund managers John Chatfeild-Roberts, Algy SmithMaxwell, Amanda Sillars and David Lewis. Together,
the team members are completely focused on seeking
to generate outperformance for their clients using the
multi-manager concept.
At Jupiter our multi-manager portfolios operate on an
unfettered basis. This means the Jupiter Independent
Funds Team is not restricted to investing in only
Jupiter’s own funds as is the case with many other
multi-manager funds in the market. Instead they are
allowed to invest in what they consider to be the best
funds from across the entire market with the aim of
generating positive real returns.
The value of an investment and the income from
it may fall as well as rise and may be affected by
exchange rate variations.
Past performance should not be seen as a guide to
future performance.
The Jupiter Global Managed
Fund has been managed
by Simon Somerville since
14 November 2011 and is
supported by John ChatfeildRoberts. Simon Somerville
studied Economics at Durham
University and is joint head
of Jupiter’s Far Eastern Equities Team. Prior to joining
Jupiter in January 2005, Simon progressed through
various positions at Cazenove including head of
Japanese Equities and Head of Pan Asian Equities
before becoming Head of Global Equities.
John Chatfeild-Roberts joined
Jupiter to head the Jupiter
Independent Funds Team in
March 2001 and he jointly
manages the Jupiter Merlin
Portfolios. John was appointed
Chief Investment Officer of
Jupiter Asset Management
in February 2010 and he is a Director of Jupiter’s
main board. From 1989 to 1995 he was Head of the
Portfolio Management Service for Henderson Global
Investors. This was followed by a move to Lazard
Asset Management, where he was a Director and
Head of the Multi-Manager Team.
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Investing in Wesleyan’s
Investment Portfolios
A busy and successful career can limit the amount
of time you have to consider your investment options.
That’s why we make the process clear and simple.
We offer the following features, making it easier for
you to invest:
}} You can make monthly or lump-sum payments
into the fund
}} The investment portfolios are designed with your
investment goals in mind
}} Your Financial Consultant will provide dedicated
and personalised support
}} The application process for each portfolio is quick
and easy
}} You will be given easy-to-understand literature
Contact your Financial Consultant for a
personal consultation
To arrange a one-to-one meeting with your Financial
Consultant to discuss how Wesleyan’s Investment
Portfolios can help you achieve your investment
goals, call 0845 351 2352.
For further information, please call 0845 351 2352
Or visit wesleyan.co.uk
If you would like this document in Braille, large print or audio format,
please contact 0845 351 2352.
Head Office
Wesleyan
Colmore Circus
Birmingham B4 6AR
Advice is provided by Wesleyan Financial Services Ltd.
‘WESLEYAN’ is a trading name of the Wesleyan Group of companies.
Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and
regulated by the Financial Conduct Authority and is wholly owned by Wesleyan Assurance Society.
Wesleyan Assurance Society is authorised by the Prudential Regulation Authority and regulated by
the Financial Conduct Authority and the Prudential Regulation Authority. Incorporated in England and
Wales by Private Act of Parliament (No. ZC145). Registered Office: Colmore Circus, Birmingham B4 6AR.
Telephone: 0845 351 2352. Fax: 0121 200 2971. Telephone calls may be recorded for monitoring and
training purposes.
WI-NBB-1-06/15