1    What is a unit-linked fund?
 
People who want to invest in the stock market have two main choices:
 
(i)  They can buy stocks and shares through a stockbroker or
(ii) They can get together with a group of similar investors to pool their money, thereby allowing a greater variety of stocks and shares to be purchased
 
Pooled assets are commonly called unit-linked funds, unit trusts or for some unhelpful reason open ended investment companies. There are many different unit-linked funds, some providing a low return with little risk of not getting your money back, others providing much higher returns but with a much higher risk to your money.
 
Unit-linked funds are typically divided into, say, 1,000 units. To work out the price of each unit, it is only necessary to divide the total value of the pooled assets by the total number of units. Each investor holds a number of units equivalent to the money they have invested. The price of units changes daily to reflect the value of the assets held in the fund.
 
You can find out which funds you are invested in and how many units you hold by referring to your Annual Statement or calling us on 0330 159 1530.
 
The range of funds we offer is shown in section 9. You can see the risk profile of the Society’s unit-linked funds as well as how they perform against similar funds by looking at our website . You will also see our fund factsheets which explain what each fund aims to do.
 
One last important point about unit-linked funds is that their value can go down as well as up.
 
 
Introduction Back to front page How we manage your unit-linked investments