INVESTOR PORTFOLIO SERVICE (IPS)

INVESTING WITH IPS.This brochure supports the Key Investor Information Document.

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USING THIS DOCUMENT This document gives you important information to help you make an informed decision about investing. You should read this document carefully and then keep it safe for future reference.

You should read this document alongside the following:

• The Key Investor Information Document (KIID) gives you the key information you need to decide whether a fund is right for you. It’s essential that you read the KIID carefully so that you understand what you’re buying. You can find these at nationwide.onlineips.co.uk/content/investments.aspx

• The Important Fund Information guide lists the funds available to you and shows the specific risks that apply to them.

• There is also a separate document that explains the Terms and Conditions that apply when you invest. You must also read this document.

• Cost and charges illustrations. You’ll be provided with illustrations as you go through an online transaction. They’re also available from your adviser if you have one and customer services as part of other transactions.

OTHER USEFUL INFORMATIONThe Platform Charge Explained document tells you more about the IPS Platform Charge.

If you’ve agreed to pay adviser charges the Guide to Facilitated Adviser Charges explains how we can facilitate payment of these for you.

The Using IPS guide tells you more about investing with us and how to make changes to your investment.

You’ll find detailed technical information on each fund we offer in the fund’s Prospectus. Please contact us if you’d like a copy. The Prospectus is only available in English.

If you need a copy of these documents please contact your adviser or Customer Services.

CONTACTING USWe’re here to help. If you have a question or would like some information there are several ways to get in touch with us. Please note we are unable to offer financial advice.

Contact our UK Customer Services contact centre on:

0345 272 0089.

We’re open Monday to Friday 9am to 5.30 pm. Call charges will vary. We may record and monitor calls.

investor.portfolio.service@onlineips.co.uk

If you’re contacting us by email, please remember not to send any personal, financial or banking information because email is not a secure method of communication.

Investor Portfolio Service PO Box 1112 Chelmsford CM99 2UX

ABOUT IPSIPS is an investment service that allows you to buy a selection of investments in carefully selected funds, and manage your investment online 24 hours a day. IPS uses the Cofunds Platform to provide the range of funds available to you.

With IPS you can:

• Select and compare funds and invest online yourself.

• Keep track of your investments on our website.

• Buy, sell, switch and top up your investments online.

WELCOME TO THE INVESTOR PORTFOLIO SERVICE (IPS).

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UNIT TRUSTS AND OPEN-ENDED INVESTMENT COMPANIES (OEICs)With IPS you can invest in unit trusts and OEICs. These are types of investment funds that:

• Give you the potential to make your money grow and receive an income.

• Offer you access, through the fund, to buy different types of ‘assets’, such as company shares, fixed-interest securities, commercial property and cash.

• Can help you reduce risk by spreading your money over a range of assets types.

• Give you access to professionally managed funds so you don’t have to choose individual assets yourself.

You can either:

• Invest directly in unit trusts and OEICs; or

• Invest through an Individual Savings Account (ISA).

An ISA is simply a way of investing in a fund tax-efficiently. It allows you to invest in a unit trust or OEIC without any personal liability to income tax or capital gains tax on any income or growth.

We only offer a stocks and shares ISA.

INVESTMENT AIMS• To grow your investment.

• To give you the option of taking an income.

YOUR COMMITMENT• You need to invest a lump sum, or make a regular

payment every month, with a minimum of £20.

• You can keep your investment for as long as you want but you should consider it as a medium to long-term investment. You should be prepared to invest for at least five years, and ideally not tie yourself to a particular end date.

RISKSThere are some risks that you need to understand before you invest.

• The value of investments, and any income taken from them, can fall as well as rise and you may get back less than you originally invest.

• There are specific risks relating to the funds you can invest in. Generally, the greater the potential reward (investment growth or income) a fund offers, the higher the level of risk to your investment. The risk and reward profile in the KIID shows the fund’s level of risk in relation to the potential reward.

AIMS, COMMITMENTSAND RISKS.

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WHAT CHARGES WILL I PAY?Platform Charge

• Covers the costs of the services we offer, including setting up and administering your investments, the technology we use and providing you with a service.

• The Platform Charge Explained document shows you how the Platform Charge is calculated.

Fund charges

• No initial fund charge.

• You’ll pay the fund’s ongoing charge as shown on the fund’s KIID. The ongoing charge is taken into account in the unit price so you won’t see it as a separate charge.

• Part of the fund’s ongoing charge might be ‘rebated’ to you. The Important Fund Information guide shows any rebates that apply.

• For more information on rebates, including how they are paid, please see part A of the Terms and Conditions.

Advice charge

• You’ll agree with your adviser how to pay for their services before you invest.

• We can facilitate payment of any initial and/or ongoing adviser charges that you agree.

• Please see the Guide to Facilitated Adviser Charges for more information.

Service charge

• If your investment is arranged without advice through another financial services firm, you may pay a Service Charge to that firm for the services they provide. You’ll receive details of this from them if applicable.

HOW DO I PAY THE CHARGES?• Platform, advice and service charges are paid from

your IPS Cash Account each month.

• If there isn’t enough money in your IPS Cash Account to pay the charges we’ll automatically sell units from your investments.

• Please see part A of the Terms and Conditions for more information on how and when the charges are paid.

HOW MUCH CAN I INVEST IN A STOCKS AND SHARES ISA? • You can invest up to £20,000 in the 2017/18 tax year.

The ISA allowance for the 2018/19 tax year is £20,000.

• You can only invest in one stocks and shares ISA in each tax year (a tax year runs from 6 April to 5 April the following year).

• We don’t currently offer a Flexible ISA, so if you withdraw money held in an ISA, you lose the ISA benefit on that portion of your money. You can’t put that money back into an ISA unless you have enough of your ISA allowance left in the current tax year.

• Our ISA Cash Reserve allows you to hold your ISA money as cash within our stocks and shares ISA.

CAN I TRANSFER AN EXISTING CASH OR STOCKS AND SHARES ISA TO IPS? • Yes, you can transfer an existing ISA held with

another company to us by completing an ISA transfer application form.

• If you’re transferring an ISA that holds current tax year subscriptions, you must transfer that amount in full.

• Your money won’t be invested while the transfer is processed. If there’s a rise in the markets before the ISA transfer is complete, you could potentially miss out on some income or growth. If you transfer an ISA to us, your existing manager may charge an exit fee on transfers.

Please note we do not currently offer a Lifetime ISA, however you can transfer your Lifetime ISA into a Stocks and Shares ISA. Should you transfer from a Lifetime ISA to this Stocks and Shares ISA, your Lifetime ISA status will be lost along with any other benefits specific to that ISA.

CAN I MAKE REGULAR SAVINGS INTO AN INVESTMENT?• Yes, if you want to invest a regular monthly amount

you can do so by Direct Debit from an account of your choice.

• You can choose when you want to invest each month.

• There’s no need to complete a new instruction each year. We will simply roll over your regular savings instruction into the new tax year until you ask us not to.

YOUR QUESTIONS ANSWERED.

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WHERE’S MY MONEY HELD WHEN IT’S NOT INVESTED?• When you first invest with IPS, an IPS Cash Account

is set up for you. This is where your money is held when it’s not invested.

• Your IPS Cash Account helps you manage the movement of your cash into and out of investment funds, and pay any charges.

• Cash held in your IPS Cash Account will earn interest daily. This interest will be credited to your balance monthly in arrears. For more information please see part A of the Terms and Conditions.

• You can see details about the interest rates online at www.onlineips.co.uk/accountrates or by contacting Customer Services.

CAN I TAKE AN INCOME?• Yes, if you choose a fund that pays income you can

have it paid into your Nominated Bank Account.

• Alternatively, you can choose to automatically reinvest the income or hold it in your IPS Cash Account.

HOW DO I FIND OUT HOW MY INVESTMENTS ARE DOING?• We send you a statement every three months.

• You can also log in to your account via our secure website to see your investments at any time.

WHAT TAX WILL I PAY?• The tax treatment on your investments depends on your

personal situation and where your money is invested.

• All tax assumptions we’ve made are those that currently apply. Tax law does change, which may affect you, so it’s a good idea to get regular advice.

• As of 6 April 2017, interest distributions no longer pay income tax.

• From 6 April 2016 the Dividend Tax Credit was replaced with a tax-free Dividend Allowance of £5,000. From 6 April 2018 this reduced to £2,000.

Stocks and shares ISAs:

• No personal liability to capital gains tax on any growth.

• No tax to pay on dividend distributions. No further tax on interest distributions.

• We reclaim the 20% tax that was deducted on interest distributions for you.

Unit trusts and OEICs:

• You’ll have a personal liability to capital gains tax on any growth above the capital gains tax allowance.

• Basic rate taxpayers – no further income tax on interest distributions, 7.5% on dividends above the dividend allowance.

• Higher-rate taxpayers – additional 20% income tax on interest distributions, 32.5% on dividends above the dividend allowance.

• Additional-rate taxpayers – additional 25% income tax on interest distributions, 38.1% on dividends above the dividend allowance.

IPS Cash Account

• Interest is paid net of 20% income tax.

IPS Cash Reserve

• Income tax isn’t payable on interest.

CAN I CANCEL MY INVESTMENT?• You can cancel your initial investment within 14 days

by writing to us at the postal address on page 2.

• Once you’ve invested we’ll send you a cancellation notice confirming your right to cancel.

• The 14-day cancellation period starts when you receive your confirmation note.

• If you cancel your initial investment and it has fallen in value you will receive less than you originally invested.

• If you don’t cancel within the 14-day period you will be subject to the investment risks detailed in this brochure, the KIID, and the Important Fund Information guide.

HOW DO I WITHDRAW MONEY OR CLOSE MY ACCOUNT?• You can take money out by selling some or all

of your investments. The minimum you can take out is £20. We can pay your money into your IPS Cash Account or into a nominated bank account held in your name.

• You can use a Withdrawal Form or send us a letter to the postal address on page 2. The form is available online, from Customer Services or your adviser.

• If you want to transfer your investment to another manager please contact them to arrange the transfer with us. The minimum you can transfer out is £20.

• To close your account please write to us at the postal address on page 2.

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COMPLAINTSIf you have a complaint about any part of our service, or you’d like us to send you a copy of our internal complaint handling procedure, please contact us by telephone or in writing. Our contact details are on page 2.

Any complaint we cannot settle can be referred to:

The Financial Ombudsman Service Exchange Tower Harbour Exchange Square London E14 9SR

0800 023 4567 or 0300 123 9123

complaint.info@financial-ombudsman.org.uk www.financial-ombudsman.org.uk

Making a complaint will not affect your right to take legal proceedings. We’ll tell you about your rights when we answer your complaint.

OUR REGULATORCofunds Limited is authorised and regulated by the Financial Conduct Authority (FCA). We’re entered on the Financial Services Register under number 194734.

You can check this at:

www.fca.org.uk/firms/systems-reporting/register

Or calling:

0800 111 6768

Or writing to:

The Financial Conduct Authority 25 The North Colonnade Canary Wharf London E14 5HS

SECURITY OF YOUR MONEYCofunds Limited is responsible for the safeguarding of your money and is covered by the Financial Services Compensation Scheme (FSCS).

When your money is invested in a fund

When you invest with a fund manager, units and shares in the funds are registered in the name of Cofunds Nominees Limited - a fully-owned

subsidiary of Cofunds Limited. This ensures that assets are kept separate from Cofunds’ own assets. Cofunds keeps a record of your individual holdings and you remain the beneficial owner of these assets. Cofunds Nominees Limited is not authorised by the FCA, but Cofunds Limited accepts full responsibility for its subsidiary.

When your money is held as cash

We hold the following money in a ring-fenced Client Money Bank Account:

• Money waiting to be invested

• Income payment waiting to be paid to you

• Proceeds of sales waiting to be paid to you

Your money is held under trust and kept separate from our own money in accordance with the FCA’s client money rules and guidance. Money held in the IPS Cash Account and ISA Cash Reserve is held in this way.

Information on the banks that hold the client money accounts is available online at www.onlineips.co.uk/accountrates or from Customer Services.

FURTHERINFORMATION.

DIRECT DEBIT GUARANTEE

• This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.

• If there are any changes to the amount, date or frequency of your Direct Debit, Cofunds Limited will notify you five working days in advance of your account being debited or as otherwise agreed. If you request Cofunds Limited to collect a payment, confirmation of the amount and date will be given to you at the time of the request.

• If an error is made in the payment of your Direct Debit by Cofunds Limited or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.

– If you receive a refund you’re not entitled to, you must pay it back when Cofunds Limited asks you to.

• You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify Cofunds Limited.

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FINANCIAL SERVICES COMPENSATION SCHEME (FSCS)The Financial Services Compensation Scheme (FSCS) is the UK’s compensation fund for customers of authorised financial services firms.

If Cofunds became insolvent

Any money invested in a fund or held as client money is kept separate from Cofunds’ own assets so its therefore unlikely that you would need to claim under the FSCS. However, in the unlikely event you were to suffer financial loss, you would be able to claim under the investment business section of the FSCS. The maximum level of compensation for investments is 100% of the amount invested, up to a maximum of £50,000 per person.

If the bank providing the client money account became insolvent

If the bank became insolvent and couldn’t return your money, you would be protected for 100% for the first £85,000 held with the bank. The £85,000 limit applies per person, per institution and covers all money held with the bank through IPS or directly. If you owe money to the bank (e.g. loans, mortgage or credit card debts), these will be taken into account before any compensation is paid.

If the fund manager became insolvent

In the unlikely event you were to suffer financial loss directly because a fund manager of a unit trust or OEIC became insolvent, you would be able to claim under the investment business section of the FSCS. The maximum level of compensation for investment is 100% of the amount invested, up to a maximum of £50,000 per person, per fund. For example, if two different fund managers became insolvent, you could claim up to £50,000 from each.

You can find out more about the Financial Services Compensation Scheme (including amounts and eligibility to claim) by visiting its website:

www.fscs.org.uk

or calling:

0800 678 1100

CONFLICTS OF INTERESTConflicts of interest may arise between you and us, our employees, our associated companies or our representatives. To ensure we treat investors consistently and fairly, we are required to have a policy on how to identify and manage these conflicts. Please see part B of the Terms and Conditions for a summary of our policy. A copy of the full policy is available on request from the postal address on page 2.

LAW AND LANGUAGEThe contract you enter into with us is governed by English Law. All customer communications are only available in English. All communications from us will normally be by letter, telephone or email.

CLIENT CATEGORISATIONThere are various categories of client set out in the financial regulations. If you buy this Cofunds product, we will treat you as a ‘retail client’. Being a retail client gives you the greatest level of protection under the regulations and ensures you get full information about any products you buy.

You can choose to be categorised as a professional client or an eligible counterparty, but this means you receive less information about our products and services. Also, you would not be entitled to receive a suitability report or appropriateness assessment where these would be required for retail clients.

If, under the regulations, you are a professional client or eligible counterparty, we will still treat you as a retail client, although this would not necessarily mean that you would be eligible to refer any complaints to the Financial Ombudsman Service or to make a claim under the Financial Services Compensation Scheme.

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Cofunds Limited Registered in England and Wales No. 3965289. Registered office: Level 43, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AB

We are authorised and regulated by the Financial Conduct Authority.

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