Special Risk Factors
Funds closed to fund switches
and new investments
FL Active Protector 70 AL
FL Active Protector 80 AL
FL First State Global Emerging
Market Leaders AL
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
Balanced Managed
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
4
Cautious Managed
Very Adventurous
H.
Bond
Funds
Risks
4
4
4
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
0.00
0.30
0.00
0.72
0.00
0.30
Friends Life FLC With Profits*
Cautious Managed
4
4
0.00
4
0.00
0.76
4
Friends Life FLC
With Profits Income*
Balanced Managed
4
4
4
0.00
0.20
FL JPM UK Dynamic AL
Adventurous
0.20
* For the With Profits funds, the figure shown is not a fund related charge, but reflects the effect of deductions which cover commission, expenses and other
adjustments. If you are invested in either of the With Profits funds, you cannot invest in the other With Profits fund under the same Bond. If you are already
invested in a With Profits fund, you can add extra investments to that fund. Switching your Bond’s investment from the With Profits Fund to the With Profits Income
Fund, and vice versa, is also allowed. For more information please speak to your financial adviser, who may charge you for any advice provided. If you do not
currently have a financial adviser, you can find one through www.unbiased.co.uk
Friends Life, PO Box 1810, Bristol, BS99 5SN. Telephone number 0117 989 9000.
Friends Life Services Limited
An incorporated company limited by shares and registered in England and Wales, number 3424940.
Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised and regulated by the Financial
Conduct Authority.
Telephone calls may be recorded.
Friends Life is a registered trade mark of the Friends Life group.
AIBSRCHGAAN 24/03/2014 (42417)
Friends Life Investment BOND SPECIAL RISKS
AND ADDITIONAL FUND CHARGES
Please ensure you read this document in conjunction with your personal illustration, Fund Guide and Key Features document for your Bond.
We recommend that you speak to your financial adviser to find out more, but you may be charged for any advice provided.
Important Information
The value of investments can fall as well as rise and is not guaranteed – this means you could get back less than you invest. Some funds carry particular risks because of the type of
assets they invest in. An explanation of the Risk Categories and any Special Risks which may apply to each fund can be found in your Fund Guide. We grade investment funds on a
scale of Very Cautious to Very Adventurous with Very Cautious being the lowest and Very Adventurous the highest level of risk. It is important that you look up the risk category for
each fund and do not rely on the fund name as this may contain the same words as one of our other defined risk categories. Please ask your financial adviser for more details on
Risk Categories.
The value of overseas investments can fall as well as rise purely on account of exchange rate fluctuations.
Friends Life reserves the right to delay any transactions in the funds, such as surrenders or switches. This could happen, for example, when dealings on a stock market exchange
are suspended. The delay could last up to one month or, for funds that invest in property, up to six months to allow property to be sold if necessary. In unusual or exceptional
circumstances we may extend these periods for as long as is necessary and we think is fair to the policyholders invested in the fund. We would later process any delayed transaction
using the unit price at the time the transaction takes place, not the date that it was requested. Please see your policy booklet for further details.
The value of properties held in any property fund is generally a matter of a valuer’s opinion and not fact. From time to time valuations within property funds are carried out by
independent chartered surveyors.
Charges
The table below shows any One-Off Initial Charges or Additional Yearly Fund Charges that may be applicable to your investment in that fund. These charges are in addition to
the Yearly Management Charge and other product charges which are described in the product literature. The charges shown are correct at the time of going to print – please
be aware that they can change. Fund charges can vary depending on the funds chosen. If the growth of your selected fund(s) does not cover the charges, you will get back
less than you invested.
The One-Off Initial Charge is applied when you invest in, or switch into, a fund. The charges will reduce the potential for growth.
The Additional Yearly Fund Charge includes fund expenses. Fund expenses are the costs associated with running the investment funds that cannot be directly associated with the
fund management process. They include costs such as: audit fees, depository/trust fees, price publication fees, custody fees and statutory accounts preparation fees.
External Funds
When Friends Life adds funds to the External Fund range, we set up a ‘mirror fund’ which invests in the same underlying external fund. The performance and unit price will not be
the same. Friends Life will set the starting price of a fund, then the price of the mirror fund will evolve over time in a different way to the underlying external fund. The fund prices will
evolve differently due to a number of factors which include the difference in charges applied to the funds, the time taken to buy or sell holdings in such investment funds which are
managed externally, any deductions for Life taxation and the mirror fund may hold a greater amount of cash for certain periods of time. Cash held in the fund will reduce the potential
for growth.
The difference in unit prices will affect quoted performance of the mirror fund compared to the underlying external fund.
How costs of buying and selling assets may affect your unit price
The unit price(s) of a fund will take into account the costs of buying or selling assets of the fund, e.g. dealing costs and taxes. Funds use different methods to reflect these costs, e.g.
a dilution levy – a transaction charge which may be made by the underlying fund manager.
The price allocated to transactions will depend on whether the fund is buying or selling assets, either on a given date or over the longer-term. Two valuations of each of our funds are
made at every valuation point. One takes into account the prices at which the assets could be bought and the associated purchase costs. This is the ‘purchase valuation’. The other
is the ‘sale valuation’, and reflects the prices and costs of selling assets. We monitor cash flows of our funds to set the unit price either on a purchase valuation or a sale valuation
basis. The difference between a purchase and a sale valuation can vary and may be significant. This means you may get back less than you expect, especially with regard to
property funds where the difference could exceed 7%.
You can get more information from ‘Our unit-linked principles and practices’ document which is available from our website www.friendslife.co.uk.
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
0.00
0.02
0.00
0.00
0.00
0.00
Friends Life Funds
FL Asia Pacific ex Japan
Equities AL
Very Adventurous
FL Defensive Distribution AL
Cautious Managed
4
4
Balanced Managed
4
FL Cash AL*
FL Deferred Distribution AL
FL Distribution AL
FL Ethical Distribution AL
FL Europe ex UK Equities AL
FL Fixed Interest AL
FL Global Distribution AL
FL Global Equities AL
FL Global Managed AL
Balanced Managed
Balanced Managed
Adventurous
Adventurous
Adventurous
FL Index Linked AL
Cautious Managed
FL Managed AL
Balanced Managed
FL Monthly Distribution AL
FL Monthly High Yield
Distribution AL
FL Monthly Sterling
Corporate Bond AL
FL North America Equities AL
FL Property AL
FL Reserve AL
FL Sterling Corporate Bond AL
FL UK Equity AL
FL UK Tracker AL
0.00
4
4
0.00
4
0.00
4
0.00
4
Cautious Managed
Balanced Managed
Balanced Managed
FL Japan Equities AL
4
Very Cautious
FL High Yield Distribution AL
FL Higher Income AL
4
0.00
4
4
4
4
4
4
0.00
4
Adventurous
Very Adventurous
0.00
4
4
4
4
4
4
4
Balanced Managed
4
4
Balanced Managed
Adventurous
4
4
Balanced Managed
4
Cautious Managed
0.12
0.00
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.04
0.00
Balanced Managed
0.11
0.00
0.00
4
4
0.00
0.00
0.00
4
0.01
0.00
0.00
Balanced Managed
0.02
0.10
0.00
4
0.00
0.00
0.00
4
0.06
0.00
0.00
0.02
Adventurous
4
0.00
0.00
Adventurous
4
0.00
0.00
*Note: While investments in Cash/Money Market funds are lower risk relative to other investment categories they do not totally guarantee your capital. Certain scenarios could cause some loss of capital, for example:
• If interest rates rise, the market value of certain types of instruments held in the fund will drop.
• If an organisation the fund invests in defaults, it could mean that only a proportion of the value of an investment is recovered.
• In very low interest rate environments the interest earned by certain instruments held by the fund could mean that fund growth is lower than fund and product charges applied.
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
4
0.00
1.20
4
0.00
1.34
4
0.00
1.11
4
4
0.00
0.96
4
4
0.00
1.04
4
0.00
0.30
4
0.00
0.74
4
0.00
0.59
External Funds
FL Architas MA Active
Dynamic AL
Adventurous
4
4
4
FL Architas MA Active
Growth AL
Adventurous
4
4
4
FL Architas MA Active
Intermediate Income AL
Balanced Managed
4
4
4
FL Architas MA Active
Moderate Income AL
Cautious Managed
4
4
FL Architas MA Active
Progressive AL
Balanced Managed
4
4
4
Adventurous
4
4
4
4
4
(previously FL Architas
Multi-Manager Dynamic AL)
(previously FL Architas
Multi-Manager Growth AL)
(previously FL Architas
Multi-Manager Income AL)
(previously FL Architas
Multi-Manager Cautious Income AL)
(previously FL Architas
Multi-Manager Balanced AL)
FL AXA Framlington American
Growth AL
FL AXA Framlington Biotech AL
4
4
4
Adventurous
4
FL AXA Framlington
European AL
Adventurous
4
FL AXA Framlington
Financial AL
Adventurous
4
4
4
4
4
0.00
0.62
FL AXA Framlington
Global Technology AL
Adventurous
4
4
4
4
4
0.00
0.78
Adventurous
4
4
4
4
4
Very Adventurous
0.00
4
4
4
4
0.00
0.91
Adventurous
4
4
4
4
0.00
0.19
FL AXA Framlington Managed
Income Bond AL
Adventurous
4
4
4
4
4
0.00
0.36
FL AXA Framlington Monthly
Income AL
Adventurous
4
4
4
4
4
0.00
0.55
FL AXA Framlington UK
Growth AL
Adventurous
4
4
4
0.00
0.72
FL AXA Framlington Health AL
FL AXA Framlington Japan AL
FL AXA Framlington Managed
Balanced AL
4
4
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
0.53
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
External Funds
FL AXA Framlington UK
Select Opportunities AL
Adventurous
4
4
4
0.00
0.64
FL AXA Framlington UK
Smaller Companies AL
Adventurous
4
4
4
0.00
0.71
Balanced Managed
4
0.00
0.27
Balanced Managed
0.00
0.14
Cautious Managed
0.00
0.16
Balanced Managed
0.00
0.25
0.00
0.48
4
0.00
0.29
0.00
0.85
0.00
0.75
4
0.00
0.74
4
0.00
0.50
0.00
0.32
0.50
FL AXA Global High Income AL
FL AXA Sterling Long
Corporate Bond AL
FL AXA Sterling Long Gilt AL
FL AXA Sterling
Strategic Bond AL
FL Baillie Gifford Managed AL
FL Baillie Gifford UK
Equity Alpha AL
FL Fidelity European AL
FL Henderson Emerging
Markets Opportunities AL
FL JPM UK Strategic Growth AL
FL Newton Continental
European AL
FL Newton Higher Income AL
Adventurous
4
Adventurous
4
4
4
4
Very Adventurous
4
4
4
Adventurous
Adventurous
4
4
Adventurous
Cautious Managed
FL Newton Oriental AL
4
4
Adventurous
FL Newton International Bond AL
FL Newton Managed AL
4
4
4
4
4
4
4
0.00
4
4
Adventurous
4
4
4
0.00
Very Adventurous
4
4
4
0.00
0.41
0.45
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
0.00
0.02
0.00
0.00
0.00
0.00
Friends Life Funds
FL Asia Pacific ex Japan
Equities AL
Very Adventurous
FL Defensive Distribution AL
Cautious Managed
4
4
Balanced Managed
4
FL Cash AL*
FL Deferred Distribution AL
FL Distribution AL
FL Ethical Distribution AL
FL Europe ex UK Equities AL
FL Fixed Interest AL
FL Global Distribution AL
FL Global Equities AL
FL Global Managed AL
Balanced Managed
Balanced Managed
Adventurous
Adventurous
Adventurous
FL Index Linked AL
Cautious Managed
FL Managed AL
Balanced Managed
FL Monthly Distribution AL
FL Monthly High Yield
Distribution AL
FL Monthly Sterling
Corporate Bond AL
FL North America Equities AL
FL Property AL
FL Reserve AL
FL Sterling Corporate Bond AL
FL UK Equity AL
FL UK Tracker AL
0.00
4
4
0.00
4
0.00
4
0.00
4
Cautious Managed
Balanced Managed
Balanced Managed
FL Japan Equities AL
4
Very Cautious
FL High Yield Distribution AL
FL Higher Income AL
4
0.00
4
4
4
4
4
4
0.00
4
Adventurous
Very Adventurous
0.00
4
4
4
4
4
4
4
Balanced Managed
4
4
Balanced Managed
Adventurous
4
4
Balanced Managed
4
Cautious Managed
0.12
0.00
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.04
0.00
Balanced Managed
0.11
0.00
0.00
4
4
0.00
0.00
0.00
4
0.01
0.00
0.00
Balanced Managed
0.02
0.10
0.00
4
0.00
0.00
0.00
4
0.06
0.00
0.00
0.02
Adventurous
4
0.00
0.00
Adventurous
4
0.00
0.00
*Note: While investments in Cash/Money Market funds are lower risk relative to other investment categories they do not totally guarantee your capital. Certain scenarios could cause some loss of capital, for example:
• If interest rates rise, the market value of certain types of instruments held in the fund will drop.
• If an organisation the fund invests in defaults, it could mean that only a proportion of the value of an investment is recovered.
• In very low interest rate environments the interest earned by certain instruments held by the fund could mean that fund growth is lower than fund and product charges applied.
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
4
0.00
1.20
4
0.00
1.34
4
0.00
1.11
4
4
0.00
0.96
4
4
0.00
1.04
4
0.00
0.30
4
0.00
0.74
4
0.00
0.59
External Funds
FL Architas MA Active
Dynamic AL
Adventurous
4
4
4
FL Architas MA Active
Growth AL
Adventurous
4
4
4
FL Architas MA Active
Intermediate Income AL
Balanced Managed
4
4
4
FL Architas MA Active
Moderate Income AL
Cautious Managed
4
4
FL Architas MA Active
Progressive AL
Balanced Managed
4
4
4
Adventurous
4
4
4
4
4
(previously FL Architas
Multi-Manager Dynamic AL)
(previously FL Architas
Multi-Manager Growth AL)
(previously FL Architas
Multi-Manager Income AL)
(previously FL Architas
Multi-Manager Cautious Income AL)
(previously FL Architas
Multi-Manager Balanced AL)
FL AXA Framlington American
Growth AL
FL AXA Framlington Biotech AL
4
4
4
Adventurous
4
FL AXA Framlington
European AL
Adventurous
4
FL AXA Framlington
Financial AL
Adventurous
4
4
4
4
4
0.00
0.62
FL AXA Framlington
Global Technology AL
Adventurous
4
4
4
4
4
0.00
0.78
Adventurous
4
4
4
4
4
Very Adventurous
0.00
4
4
4
4
0.00
0.91
Adventurous
4
4
4
4
0.00
0.19
FL AXA Framlington Managed
Income Bond AL
Adventurous
4
4
4
4
4
0.00
0.36
FL AXA Framlington Monthly
Income AL
Adventurous
4
4
4
4
4
0.00
0.55
FL AXA Framlington UK
Growth AL
Adventurous
4
4
4
0.00
0.72
FL AXA Framlington Health AL
FL AXA Framlington Japan AL
FL AXA Framlington Managed
Balanced AL
4
4
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
0.53
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
External Funds
FL AXA Framlington UK
Select Opportunities AL
Adventurous
4
4
4
0.00
0.64
FL AXA Framlington UK
Smaller Companies AL
Adventurous
4
4
4
0.00
0.71
Balanced Managed
4
0.00
0.27
Balanced Managed
0.00
0.14
Cautious Managed
0.00
0.16
Balanced Managed
0.00
0.25
0.00
0.48
4
0.00
0.29
0.00
0.85
0.00
0.75
4
0.00
0.74
4
0.00
0.50
0.00
0.32
0.50
FL AXA Global High Income AL
FL AXA Sterling Long
Corporate Bond AL
FL AXA Sterling Long Gilt AL
FL AXA Sterling
Strategic Bond AL
FL Baillie Gifford Managed AL
FL Baillie Gifford UK
Equity Alpha AL
FL Fidelity European AL
FL Henderson Emerging
Markets Opportunities AL
FL JPM UK Strategic Growth AL
FL Newton Continental
European AL
FL Newton Higher Income AL
Adventurous
4
Adventurous
4
4
4
4
Very Adventurous
4
4
4
Adventurous
Adventurous
4
4
Adventurous
Cautious Managed
FL Newton Oriental AL
4
4
Adventurous
FL Newton International Bond AL
FL Newton Managed AL
4
4
4
4
4
4
4
0.00
4
4
Adventurous
4
4
4
0.00
Very Adventurous
4
4
4
0.00
0.41
0.45
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
0.00
0.02
0.00
0.00
0.00
0.00
Friends Life Funds
FL Asia Pacific ex Japan
Equities AL
Very Adventurous
FL Defensive Distribution AL
Cautious Managed
4
4
Balanced Managed
4
FL Cash AL*
FL Deferred Distribution AL
FL Distribution AL
FL Ethical Distribution AL
FL Europe ex UK Equities AL
FL Fixed Interest AL
FL Global Distribution AL
FL Global Equities AL
FL Global Managed AL
Balanced Managed
Balanced Managed
Adventurous
Adventurous
Adventurous
FL Index Linked AL
Cautious Managed
FL Managed AL
Balanced Managed
FL Monthly Distribution AL
FL Monthly High Yield
Distribution AL
FL Monthly Sterling
Corporate Bond AL
FL North America Equities AL
FL Property AL
FL Reserve AL
FL Sterling Corporate Bond AL
FL UK Equity AL
FL UK Tracker AL
0.00
4
4
0.00
4
0.00
4
0.00
4
Cautious Managed
Balanced Managed
Balanced Managed
FL Japan Equities AL
4
Very Cautious
FL High Yield Distribution AL
FL Higher Income AL
4
0.00
4
4
4
4
4
4
0.00
4
Adventurous
Very Adventurous
0.00
4
4
4
4
4
4
4
Balanced Managed
4
4
Balanced Managed
Adventurous
4
4
Balanced Managed
4
Cautious Managed
0.12
0.00
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.04
0.00
Balanced Managed
0.11
0.00
0.00
4
4
0.00
0.00
0.00
4
0.01
0.00
0.00
Balanced Managed
0.02
0.10
0.00
4
0.00
0.00
0.00
4
0.06
0.00
0.00
0.02
Adventurous
4
0.00
0.00
Adventurous
4
0.00
0.00
*Note: While investments in Cash/Money Market funds are lower risk relative to other investment categories they do not totally guarantee your capital. Certain scenarios could cause some loss of capital, for example:
• If interest rates rise, the market value of certain types of instruments held in the fund will drop.
• If an organisation the fund invests in defaults, it could mean that only a proportion of the value of an investment is recovered.
• In very low interest rate environments the interest earned by certain instruments held by the fund could mean that fund growth is lower than fund and product charges applied.
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
4
0.00
1.20
4
0.00
1.34
4
0.00
1.11
4
4
0.00
0.96
4
4
0.00
1.04
4
0.00
0.30
4
0.00
0.74
4
0.00
0.59
External Funds
FL Architas MA Active
Dynamic AL
Adventurous
4
4
4
FL Architas MA Active
Growth AL
Adventurous
4
4
4
FL Architas MA Active
Intermediate Income AL
Balanced Managed
4
4
4
FL Architas MA Active
Moderate Income AL
Cautious Managed
4
4
FL Architas MA Active
Progressive AL
Balanced Managed
4
4
4
Adventurous
4
4
4
4
4
(previously FL Architas
Multi-Manager Dynamic AL)
(previously FL Architas
Multi-Manager Growth AL)
(previously FL Architas
Multi-Manager Income AL)
(previously FL Architas
Multi-Manager Cautious Income AL)
(previously FL Architas
Multi-Manager Balanced AL)
FL AXA Framlington American
Growth AL
FL AXA Framlington Biotech AL
4
4
4
Adventurous
4
FL AXA Framlington
European AL
Adventurous
4
FL AXA Framlington
Financial AL
Adventurous
4
4
4
4
4
0.00
0.62
FL AXA Framlington
Global Technology AL
Adventurous
4
4
4
4
4
0.00
0.78
Adventurous
4
4
4
4
4
Very Adventurous
0.00
4
4
4
4
0.00
0.91
Adventurous
4
4
4
4
0.00
0.19
FL AXA Framlington Managed
Income Bond AL
Adventurous
4
4
4
4
4
0.00
0.36
FL AXA Framlington Monthly
Income AL
Adventurous
4
4
4
4
4
0.00
0.55
FL AXA Framlington UK
Growth AL
Adventurous
4
4
4
0.00
0.72
FL AXA Framlington Health AL
FL AXA Framlington Japan AL
FL AXA Framlington Managed
Balanced AL
4
4
Special Risk Factors
Fund Name
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
0.53
Charges
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
External Funds
FL AXA Framlington UK
Select Opportunities AL
Adventurous
4
4
4
0.00
0.64
FL AXA Framlington UK
Smaller Companies AL
Adventurous
4
4
4
0.00
0.71
Balanced Managed
4
0.00
0.27
Balanced Managed
0.00
0.14
Cautious Managed
0.00
0.16
Balanced Managed
0.00
0.25
0.00
0.48
4
0.00
0.29
0.00
0.85
0.00
0.75
4
0.00
0.74
4
0.00
0.50
0.00
0.32
0.50
FL AXA Global High Income AL
FL AXA Sterling Long
Corporate Bond AL
FL AXA Sterling Long Gilt AL
FL AXA Sterling
Strategic Bond AL
FL Baillie Gifford Managed AL
FL Baillie Gifford UK
Equity Alpha AL
FL Fidelity European AL
FL Henderson Emerging
Markets Opportunities AL
FL JPM UK Strategic Growth AL
FL Newton Continental
European AL
FL Newton Higher Income AL
Adventurous
4
Adventurous
4
4
4
4
Very Adventurous
4
4
4
Adventurous
Adventurous
4
4
Adventurous
Cautious Managed
FL Newton Oriental AL
4
4
Adventurous
FL Newton International Bond AL
FL Newton Managed AL
4
4
4
4
4
4
4
0.00
4
4
Adventurous
4
4
4
0.00
Very Adventurous
4
4
4
0.00
0.41
0.45
Special Risk Factors
Funds closed to fund switches
and new investments
FL Active Protector 70 AL
FL Active Protector 80 AL
FL First State Global Emerging
Market Leaders AL
Risk Category
A.
Currency
Risk
B.
Emerging
Markets
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
Charges
F.
Property
G.
Offshore
Investment
Funds
Balanced Managed
I.
Unit
Trust
Funds
J.
Funds
Designed
to Provide
Protection
4
Cautious Managed
Very Adventurous
H.
Bond
Funds
Risks
4
4
4
One-off
Initial
Charge
(%)
Additional
yearly fund
charge (%)
0.00
0.30
0.00
0.72
0.00
0.30
Friends Life FLC With Profits*
Cautious Managed
4
4
0.00
4
0.00
0.76
4
Friends Life FLC
With Profits Income*
Balanced Managed
4
4
4
0.00
0.20
FL JPM UK Dynamic AL
Adventurous
0.20
* For the With Profits funds, the figure shown is not a fund related charge, but reflects the effect of deductions which cover commission, expenses and other
adjustments. If you are invested in either of the With Profits funds, you cannot invest in the other With Profits fund under the same Bond. If you are already
invested in a With Profits fund, you can add extra investments to that fund. Switching your Bond’s investment from the With Profits Fund to the With Profits Income
Fund, and vice versa, is also allowed. For more information please speak to your financial adviser, who may charge you for any advice provided. If you do not
currently have a financial adviser, you can find one through www.unbiased.co.uk
Friends Life, PO Box 1810, Bristol, BS99 5SN. Telephone number 0117 989 9000.
Friends Life Services Limited
An incorporated company limited by shares and registered in England and Wales, number 3424940.
Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised and regulated by the Financial
Conduct Authority.
Telephone calls may be recorded.
Friends Life is a registered trade mark of the Friends Life group.
AIBSRCHGAAN 24/03/2014 (42417)
Friends Life Investment BOND SPECIAL RISKS
AND ADDITIONAL FUND CHARGES
Please ensure you read this document in conjunction with your personal illustration, Fund Guide and Key Features document for your Bond.
We recommend that you speak to your financial adviser to find out more, but you may be charged for any advice provided.
Important Information
The value of investments can fall as well as rise and is not guaranteed – this means you could get back less than you invest. Some funds carry particular risks because of the type of
assets they invest in. An explanation of the Risk Categories and any Special Risks which may apply to each fund can be found in your Fund Guide. We grade investment funds on a
scale of Very Cautious to Very Adventurous with Very Cautious being the lowest and Very Adventurous the highest level of risk. It is important that you look up the risk category for
each fund and do not rely on the fund name as this may contain the same words as one of our other defined risk categories. Please ask your financial adviser for more details on
Risk Categories.
The value of overseas investments can fall as well as rise purely on account of exchange rate fluctuations.
Friends Life reserves the right to delay any transactions in the funds, such as surrenders or switches. This could happen, for example, when dealings on a stock market exchange
are suspended. The delay could last up to one month or, for funds that invest in property, up to six months to allow property to be sold if necessary. In unusual or exceptional
circumstances we may extend these periods for as long as is necessary and we think is fair to the policyholders invested in the fund. We would later process any delayed transaction
using the unit price at the time the transaction takes place, not the date that it was requested. Please see your policy booklet for further details.
The value of properties held in any property fund is generally a matter of a valuer’s opinion and not fact. From time to time valuations within property funds are carried out by
independent chartered surveyors.
Charges
The table below shows any One-Off Initial Charges or Additional Yearly Fund Charges that may be applicable to your investment in that fund. These charges are in addition to
the Yearly Management Charge and other product charges which are described in the product literature. The charges shown are correct at the time of going to print – please
be aware that they can change. Fund charges can vary depending on the funds chosen. If the growth of your selected fund(s) does not cover the charges, you will get back
less than you invested.
The One-Off Initial Charge is applied when you invest in, or switch into, a fund. The charges will reduce the potential for growth.
The Additional Yearly Fund Charge includes fund expenses. Fund expenses are the costs associated with running the investment funds that cannot be directly associated with the
fund management process. They include costs such as: audit fees, depository/trust fees, price publication fees, custody fees and statutory accounts preparation fees.
External Funds
When Friends Life adds funds to the External Fund range, we set up a ‘mirror fund’ which invests in the same underlying external fund. The performance and unit price will not be
the same. Friends Life will set the starting price of a fund, then the price of the mirror fund will evolve over time in a different way to the underlying external fund. The fund prices will
evolve differently due to a number of factors which include the difference in charges applied to the funds, the time taken to buy or sell holdings in such investment funds which are
managed externally, any deductions for Life taxation and the mirror fund may hold a greater amount of cash for certain periods of time. Cash held in the fund will reduce the potential
for growth.
The difference in unit prices will affect quoted performance of the mirror fund compared to the underlying external fund.
How costs of buying and selling assets may affect your unit price
The unit price(s) of a fund will take into account the costs of buying or selling assets of the fund, e.g. dealing costs and taxes. Funds use different methods to reflect these costs, e.g.
a dilution levy – a transaction charge which may be made by the underlying fund manager.
The price allocated to transactions will depend on whether the fund is buying or selling assets, either on a given date or over the longer-term. Two valuations of each of our funds are
made at every valuation point. One takes into account the prices at which the assets could be bought and the associated purchase costs. This is the ‘purchase valuation’. The other
is the ‘sale valuation’, and reflects the prices and costs of selling assets. We monitor cash flows of our funds to set the unit price either on a purchase valuation or a sale valuation
basis. The difference between a purchase and a sale valuation can vary and may be significant. This means you may get back less than you expect, especially with regard to
property funds where the difference could exceed 7%.
You can get more information from ‘Our unit-linked principles and practices’ document which is available from our website www.friendslife.co.uk.
Funds closed to fund switches
and new investments
FL Active Protector 70 AL
FL Active Protector 80 AL
Risk Category
Cautious Managed
Friends Life FLC With Profits*
Very Adventurous
FL First State Global Emerging
Market Leaders AL
FL JPM UK Dynamic AL
A.
Currency
Risk
B.
Emerging
Markets
Special Risk Factors
C.
Smaller
Companies
D.
Income
Funds
E.
Specialist
Sector
Funds
F.
Property
G.
Offshore
Investment
Funds
H.
Bond
Funds
Risks
I.
Unit
Trust
Funds
Balanced Managed
J.
Funds
Designed
to Provide
Protection
4
Cautious Managed
Balanced Managed
Friends Life FLC
With Profits Income*
4
4
Charges
One-off
Initial
Charge
(%)
0.00
0.00
4
4
4
0.00
0.00
4
Adventurous
4
0.00
4
4
0.00
4
Additional
yearly fund
charge (%)
0.30
0.30
0.72
0.76
0.20
0.20
* For the With Profits funds, the figure shown is not a fund related charge, but reflects the effect of deductions which cover commission, expenses and other
adjustments. If you are invested in either of the With Profits funds, you cannot invest in the other With Profits fund under the same Bond. If you are already
invested in a With Profits fund, you can add extra investments to that fund. Switching your Bond’s investment from the With Profits Fund to the With Profits Income
Fund, and vice versa, is also allowed. For more information please speak to your financial adviser, who may charge you for any advice provided. If you do not
currently have a financial adviser, you can find one through www.unbiased.co.uk
Friends Life, PO Box 1810, Bristol, BS99 5SN. Telephone number 0117 989 9000.
Friends Life Services Limited
An incorporated company limited by shares and registered in England and Wales, number 3424940.
Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised and regulated by the Financial
Conduct Authority.
Telephone calls may be recorded.
Friends Life is a registered trade mark of the Friends Life group.
AIBSRCHGAAN 24/03/2014 (42417)
Friends Life Investment BOND SPECIAL RISKS
AND ADDITIONAL FUND CHARGES
Please ensure you read this document in conjunction with your personal illustration, Fund Guide and Key Features document for your Bond.
We recommend that you speak to your financial adviser to find out more, but you may be charged for any advice provided.
Important Information
The value of investments can fall as well as rise and is not guaranteed – this means you could get back less than you invest. Some funds carry particular risks because of the type of
assets they invest in. An explanation of the Risk Categories and any Special Risks which may apply to each fund can be found in your Fund Guide. We grade investment funds on a
scale of Very Cautious to Very Adventurous with Very Cautious being the lowest and Very Adventurous the highest level of risk. It is important that you look up the risk category for
each fund and do not rely on the fund name as this may contain the same words as one of our other defined risk categories. Please ask your financial adviser for more details on
Risk Categories.
The value of overseas investments can fall as well as rise purely on account of exchange rate fluctuations.
Friends Life reserves the right to delay any transactions in the funds, such as surrenders or switches. This could happen, for example, when dealings on a stock market exchange
are suspended. The delay could last up to one month or, for funds that invest in property, up to six months to allow property to be sold if necessary. In unusual or exceptional
circumstances we may extend these periods for as long as is necessary and we think is fair to the policyholders invested in the fund. We would later process any delayed transaction
using the unit price at the time the transaction takes place, not the date that it was requested. Please see your policy booklet for further details.
The value of properties held in any property fund is generally a matter of a valuer’s opinion and not fact. From time to time valuations within property funds are carried out by
independent chartered surveyors.
Charges
The table below shows any One-Off Initial Charges or Additional Yearly Fund Charges that may be applicable to your investment in that fund. These charges are in addition to
the Yearly Management Charge and other product charges which are described in the product literature. The charges shown are correct at the time of going to print – please
be aware that they can change. Fund charges can vary depending on the funds chosen. If the growth of your selected fund(s) does not cover the charges, you will get back
less than you invested.
The One-Off Initial Charge is applied when you invest in, or switch into, a fund. The charges will reduce the potential for growth.
The Additional Yearly Fund Charge includes fund expenses. Fund expenses are the costs associated with running the investment funds that cannot be directly associated with the
fund management process. They include costs such as: audit fees, depository/trust fees, price publication fees, custody fees and statutory accounts preparation fees.
External Funds
When Friends Life adds funds to the External Fund range, we set up a ‘mirror fund’ which invests in the same underlying external fund. The performance and unit price will not be
the same. Friends Life will set the starting price of a fund, then the price of the mirror fund will evolve over time in a different way to the underlying external fund. The fund prices will
evolve differently due to a number of factors which include the difference in charges applied to the funds, the time taken to buy or sell holdings in such investment funds which are
managed externally, any deductions for Life taxation and the mirror fund may hold a greater amount of cash for certain periods of time. Cash held in the fund will reduce the potential
for growth.
The difference in unit prices will affect quoted performance of the mirror fund compared to the underlying external fund.
How costs of buying and selling assets may affect your unit price
The unit price(s) of a fund will take into account the costs of buying or selling assets of the fund, e.g. dealing costs and taxes. Funds use different methods to reflect these costs, e.g.
a dilution levy – a transaction charge which may be made by the underlying fund manager.
The price allocated to transactions will depend on whether the fund is buying or selling assets, either on a given date or over the longer-term. Two valuations of each of our funds are
made at every valuation point. One takes into account the prices at which the assets could be bought and the associated purchase costs. This is the ‘purchase valuation’. The other
is the ‘sale valuation’, and reflects the prices and costs of selling assets. We monitor cash flows of our funds to set the unit price either on a purchase valuation or a sale valuation
basis. The difference between a purchase and a sale valuation can vary and may be significant. This means you may get back less than you expect, especially with regard to
property funds where the difference could exceed 7%.
You can get more information from ‘Our unit-linked principles and practices’ document which is available from our website www.friendslife.co.uk.