Risk ratings

Low risk funds

These funds are not volatile and involve relatively little capital risk, although occasional falls in value are possible. The following low risk funds are available:

• Currency Reserve Funds
• Building Society Deposit Funds
• Sterling Income Funds

Please read the relevant product Fund Guide for more information.

Medium risk funds

These are a relatively cautious choice for the medium or long term, although unit prices will reflect fluctuations in the market. The following medium risk funds are available:

• Bond Funds
• Global Bond Fund
• Global Mixed Fund
• Offshore Distribution Accumulation Fund

Please read the relevant product Fund Guide for more information.

Higher risk funds

You should expect some volatility as these funds comprise mainly equities, and the unit prices of these funds will fall from time to time, sometimes significantly. However, equities have performed better than bonds or cash, over the longer term. These funds can generally be expected to provide good prospects of capital growth over five years or more. The following higher risk funds are available:

• Index Tracking Funds
• Offshore Equity High Income Fund
• Equity Funds
• Global Equity Fund

Please read the relevant product Fund Guide for more information. Existing planholders should read the product literature for full details of the product in which they are invested.

Past performance is not indicative of future performance. The value of investments can fall as well as rise.