Funds you can invest in through your PIP – if you took your plan out with Halifax.
FUND OPTIONS
You can invest in various funds through your Personal Investment Plan (PIP). Based on how you’re invested now, you have between four and 34 funds to select from. You can make extra payments to, or move your money between, these funds at any time. This is currently free of charge.
Scottish Widows funds
If you’re currently invested in any Scottish Widows funds you can make extra payments to, or move your money between, thefour funds listed.
Halifax funds
If you’re currently invested in any Halifax funds you can make extra payments to, or move your money between, the20 Halifax funds listed.
Independently managed funds
If you’re currently invested in any of theindependently managed fundsyou can make additional payments to, or move your money between, all of the Scottish Widows, Halifax and Independently Managed Funds.
FUND Charges
A Yearly Management Charge (YMC), which is a percentage of the fund value, is deducted from each fund and is then reflected in the unit price each day. The YMC doesn’t include any additional expenses for operating the fund. The additional expenses are added to the YMC to form the total yearly fund charge.
Reductions to fund charges
The YMC is the basic charge for any fund you’re invested in through your PIP. You may then receive reductions to the YMC. We apply any reductions you receive by adding extra units to your plan on 31st December each year.
This has the effect of reducing the YMC you pay. The YMC you pay after reductions, is called the effective YMC.
Your plan's 20th anniversary
Once your plan passes the 20th anniversary of your first investment (your plan's 20th anniversary), the base YMC we charge for each Halifax, or Independently Managed fund reduces. The effective YMCyou pay may reduce or stay the same - depending on any reductions or discounts you received before your plan's 20th anniversary.
If you receive any YMC reductions, or loyalty bonusesthey’ll be applied by adding units to your plan at the end of each year.
-
Fund charges and reductions for Scottish Widows Funds expandable section
The table shows the base YMC and the current estimated total yearly fund charge for each fund. The base YMC you pay when invested in any Scottish Widows fund is the same before and after your plan's 20th anniversary.
You may pay a lower effective YMC if you receive any reductions or loyalty bonuses on your plan.
Scottish Widows funds Base yearly management charge Current estimated total yearly fund charge Cautious Growth Fund(PDF, 162KB) 1.10% 1.21% Balanced Growth Fund(PDF, 169KB) 1.10% 1.28% Progressive Growth Fund(PDF, 170KB) 1.10% 1.23% Adventurous Growth Fund(PDF, 154KB) 1.10% 1.35% Based on fund information as at April 2023.
Important information
Our charges can change, and may increase if:
- there’s a change in a tax rule or law that affects us, or the plan
- exceptional circ*mstances result in an increase to our costs to administer the PIP, or cause our income from charges to be less than we anticipated.
We’ll give you three months’ notice if we change our charges.
Reduction in yearly management charges for Scottish Widows funds
If you've paid £30,000 or more into your plan, you'll receive a reduction in the YMC you pay. We reduce the effective YMC you pay by adding extra units to your plan on 31st December each year.
For any part of your plan which is invested in our Scottish Widows funds, the following reductions apply:
Total paid into plan to date Reduction to YMC
Up to £29,999.990.00% £30,000 to £124,999.99 0.10% £125,000 to £499,999.99 0.15% £500,000 plus 0.20% We don't take movements in the value of your plan into account when calculating the level of reduction in the Yearly Management Charge.
Reductions in Yearly Management Charges for top ups
You might also receive a reduction in your Yearly Management Charge of up to 0.5% if you top up.The top up needs to be paid into your plan between 1st October 2012 and your plan's 20th anniversary.
The reduction only applies to payments that meet those requirements, and not to the whole of your investment.
- there’s a change in a tax rule or law that affects us, or the plan
-
Fund charges and reductions for Halifax and Independently Managed Funds (before your plan's 20th anniversary) expandable section
The table shows the YMC and the current estimated total yearly fund charge for each fund.
You may pay a lower effective YMC if you receive any reductions or loyalty bonuses on your plan.
Charges before your plan's 20th anniversary Halifax funds Base Yearly management charge Current estimated total yearly fund charge Money Fund(PDF, 149KB) 1.40% 1.40% Gilt & Fixed Interest Fund(PDF, 185KB) 1.40% 1.40% Index-Linked Gilt Fund(PDF, 166KB) 1.40% 1.40% Managed Income Fund(PDF, 155KB) 1.25% 1.25% Cautious Managed Fund(PDF, 162KB) 1.40% 1.40% Property Fund(PDF, 157KB) 1.40% 1.40% UK FTSE 100 Index Tracking Fund
(PDF, 155KB)1.00% 1.00% UK FTSE All-Share Index Tracking Fund
(PDF, 156KB)1.00% 1.00% Pelican Fund(PDF, 162KB)
(also known as UK Growth)1.35% 1.35% Managed Fund(PDF, 167KB) 1.40% 1.40% High Income Fund(PDF, 159KB)
(also known as UK Equity Income)1.35% 1.35% European Fund(PDF, 162KB) 1.35% 1.35% Fund of Investment Trusts(PDF, 162KB) 1.40% 1.40% North American Fund(PDF, 158KB) 1.35% 1.35% Far Eastern Fund(PDF, 171KB) 1.35% 1.35% Japanese Fund(PDF, 157KB) 1.35% 1.35% International Growth Fund(PDF, 171KB) 1.35% 1.35% Ethical Fund(PDF, 170KB) 1.40% 1.40% Special Situations Fund(PDF, 173KB) 1.40% 1.40% Smaller Companies Fund(PDF, 143KB) 1.40% 1.40% Based on fund information as at April 2023.
For more information on the Independently Managed funds, please see your plan'sKey Features(PDF, 294KB).
Important information
Our charges can change, and may increase if:
- there’s a change in a tax rule or law that affects us, or the plan
- exceptional circ*mstances result in an increase to our costs to administer the PIP, or cause our income from charges to be less than we anticipated.
We’ll give you three months’ notice if we change our charges.
Reduction in yearly management charges for Halifax or Independently Managed funds
If you've paid £30,000 or more into your plan, you'll receive a reduction in the YMC you pay. We reduce the effective YMC you pay by adding extra units to your plan on 31st December each year.
For any part of your plan which is invested in Halifax or Independently Managed funds, the following reductions apply:
Total paid into plan to date Reduction for plans taken out on or before 7th September 2008 Reduction for plans taken out after 7th September 2008 Up to £29,999.99 0.00% 0.00% £30,000 to £124,999.99 0.25% 0.15% £125,000 to £499,999.99 0.50% 0.40% £500,000 and over 0.75% 0.60% We don't take movements in the value of your plan into account when calculating the level of reduction in the Yearly Management Charge.
Reductions in Yearly Management Charges for top ups
You might also receive a reduction in your Yearly Management Charge of up to 0.5% if you top up.The top up needs to be paid into your plan between 1st October 2012 and your plans 20th anniversary.
The reduction only applies to payments that meet those requirements, and not to the whole of your investment.
-
Fund charges and reductions for Halifax and Independently Managed Funds (after your plan's 20th anniversary) expandable section
If your plan has passed its 20th anniversary, please see our detailed fund charge tables for the effective YMC you pay.
-
Will I get a loyalty bonus? expandable section
You may be eligible to receive a loyalty bonus. Each loyalty bonus is calculated based on a percentage of the average value of the plan over a given time, as shown below. It’s paid by adding units to the plan, as long as your plan is still invested when the loyalty bonus is due. Please note that no loyalty bonus is added for investments in the Managed Income Fund.
Loyalty bonus for plans taken out before 30th November 2007
Loyalty bonus due date Bonus units added 24/11/2020 1% of the average plan value between 25th November 2015 and 24th November 2020 Loyalty bonus for plans taken out between 30th November 2007 and 27th June 2010
Loyalty bonus due date Bonus units added 5th plan anniversary 0.50% of the average plan value up to the 5th plan anniversary 10th plan anniversary 0.75% of the average plan value between the 5th and the 10th plan anniversaries 15th plan anniversary 1% of the average plan value between the 10th and 15th plan anniversaries You can find more information about charges, loyalty bonuses and reductions to YMC on pages 4–7 of the Key features(PDF, 294KB).
-
Risk Categories for the Scottish Widows Growth Funds expandable section
We've produced definitions for our investment funds that include the terms ‘Adventurous’, ‘Balanced’, ‘Cautious’ and ‘Progressive’ to help you better understand how we define the level of risk associated with each investment. These definitions are relevant to the Cautious Growth Fund, Balanced Growth Fund, Progressive Growth Fund and Adventurous Growth Fund from Scottish Widows, available to invest in through your Personal Investment Plan.
Scottish Widows Growth Funds have exposure to different types of investments as described in the fund aims. These investments can include bonds (also known as fixed interest securities), equities, property, commodities and alternative investments depending on the fund’s investment objectives.
We may change what the funds are invested in and the selection of funds that we make available.
Increasing RiskCautious Balanced Progressive Adventurous Our Cautious funds are dominated by lower risk assets such as government bonds and high quality corporate bonds, but additionally may include small exposures to high-yield bonds.
These funds may also have some exposure to shares (UK and international), property and other riskier assets which have the potential for higher returns than bonds.
Our Cautious funds are intended to provide modest returns and modest levels of volatility compared to our other multi-asset funds, which typically have higher exposure to shares.
Our Balanced funds aim to hold a mixture of shares and bonds typically on a relatively equal basis. Where permitted, these funds will have some exposures to property and absolute return strategies and other assets.
These funds therefore aim to have a balanced mix of higher and lower risk assets and therefore a balance between return potential and the lower volatility offered by lower risk assets.
Our Progressive funds are dominated by exposure to UK and international shares but may also have some bonds, property, cash and absolute returns strategies to aim to lower volatility during market fluctuations.
These funds seek higher returns which might be achieved from investment in shares, compared to our other multi-asset funds with lower risk assets, but may experience greater volatility of returns.
Our Adventurous funds invest almost totally in UK and international shares, but may hold minor exposures to bonds, property or absolute return strategies.
These funds therefore have the greatest potential for return but also the greatest risk of potential loss compared to our other multi-asset funds which hold larger percentages of lower risk assets.
Investment periods
We categorise investment periods as follows:
Short-term: Up to 5 years
Medium-term: Between 5 and 10 years
Long-term: Over 10 yearsInvestment risk can change over time
Over time your investment could move away from your preferred level of risk, either becoming less risky (normally with less potential for growth) or more risky (normally with more potential for growth). This happens when some assets within a fund perform better than others. For example, if equities in a fund grew at a higher rate than other assets, such as gilts and fixed interests, more of the fund’s underlying investments would be in equities.
This would increase the level of risk for the fund because equities are considered to be higher risk, as they are more likely to have fluctuations in value. So the chances of your fund reducing in value is higher.
So it’s important to regularly review your fund choices and check they’re still right for you. Your latest annual statement will provide you with details of the funds you’re currently invested in. You can review your fund’s fact sheet for more information – including where your fund invests, its aims and the past performance.
