Tracker Fund

If you're looking for a straightforward, low-cost way to invest in the stock market this is it. Our low cost FTSE® 100 Tracker Fund allows you to take advantage of the full growth potential of stocks and shares without having to manage your own investment. You can choose to invest directly, or tax-efficiently through an ISA - and because your money will be invested in a wide variety of shares, you'll be spreading your risk (compared to holding single company shares). 

Your investment aims to track the FTSE® 100, a major stock market index including household names such as Tesco, BP and Vodafone, so you’ll be investing in companies you are likely to know. So when share prices go up, your investment should follow. Historically, the stock market has outperformed most other types of investment over the long term however, please remember that past performance is not a guide to future performance, the value of your investment can fall as well as rise and you may not get back the amount you invest.

Our FTSE® 100 Tracker Fund is a low-cost way to share in the potential of the market. There is no initial charge and the annual management charge is 1% per annum. You can also make withdrawals at any time or move your investment to another provider.

The fund allows you to invest using an ISA wrapper, which protects your returns from Capital Gains Tax and Income Tax.

You can start your tax-efficient investment with just £500.

You can top up with lump sums of £200 or more, or invest regularly from £30 a month. If you have an existing Stocks and Shares ISA that's worth £500 or more with another provider, you can transfer it into a FTSE® 100 Tracker Fund. (Please note that your existing provider may charge you to transfer and you should be aware that the Tracker Fund may involve higher risks that your existing ISA)

Any tax treatment and/or reliefs referred to are those applying under current legislation, which may change, and their availability will depend on your individual circumstances. The favourable tax treatment of ISAs may not be maintained.

If you've already used your ISA allowance for this year, or would like to pay in larger sums, you can invest directly into the Fund. You can invest lump sums from £1,000 or regularly from £30 per month.

Direct investments are not liable for Income Tax. You may have to pay Capital Gains Tax on any gains that you have made when you cash in your shares. This might be payable if you sell your investment and make a profit (a gain), however, you could minimise any Capital Gains Tax liability by using your Capital Gains annual exemption in the year that you wish to cash in your investment.

It’s important to us that you make the right investment decision to meet your needs. Download the Key Features and Terms and Conditions (PDF, 375KB), to help you decide if our FTSE® 100 Tracker Fund is right for you.

Please ensure you have read in full and understood the Key Features and for ISA investment, the Terms and Conditions before making your application, as we do not provide you with any advice on this product.

Apply for our FTSE® 100 Tracker Fund online or alternatively call 0800 051 1868 to apply by phone.

You can also download the non-ISA application form (PDF, 113KB) or download the ISA application form (PDF, 104KB) if you wish to apply by post.

• Can I invest via an ISA?
• Can I transfer in an existing ISA?
• How much can I invest?
• Does the investment grow tax-free?
• Do I have to invest for a set length of time?
• Is my capital protected?
• Are there any charges?
• How will I know how my investment is performing?
• How do I know whether this investment is right for me?
• When will my money be invested?
• What if I change my mind after applying?

Can I invest via an ISA?
Yes. You can invest tax-efficiently via a Stocks and Shares ISA up to your annual ISA limit. If you do this, your investment will be in an ISA wrapper and you will not pay tax on any returns. If you have already used your ISA allowance for the year, or want to invest more than this amount, you can invest directly.

Can I transfer in an existing ISA?
Yes. If you have an existing ISA worth £500 or more with another provider, you can simply transfer the full amount directly into the FTSE® 100 Tracker Fund.

Our Financial Planning Direct team will be able to guide you through this simple process. This is not an advice service, so you must satisfy yourself of the suitability of any transfer, having considered, amongst other factors:

• Exit charges and any other costs incurred with the transfer.
• Initial charges.
• Any difference in ongoing charges.
• Transaction details (i.e. whether holdings are liquidated or transferred intact, as permitted by the terms and conditions).
• Possibility and likely effects of a shortfall following cancellation.
• Potential loss of income or growth, following a rise in markets, while the transfer is pending.
• Stocks and Shares ISAs, such as our Tracker involve higher risks than Cash ISAs, including the possibility of losing money. They do offer the potential for greater returns but this is not guaranteed and they may end up with a lower return than a Cash ISA. There may also be a misalignment of risk with our Tracker and an existing stocks and shares ISA.
• Stocks and Shares ISAs involve a longer term commitment than a Cash ISA so by transferring you are giving up the ability to easily access your money usually without penalty.

Having elected to transfer from a Cash ISA, should you change your mind and wish to cancel after the investment has been made you will not be able to reinstate the Cash ISA and there is a risk you will lose the tax benefits if you do not subsequently transfer the plan value at that time to another Stocks and Shares ISA.

How much can I invest?
If you are investing directly (not via an ISA) there is no maximum limit to your investment. You can start your FTSE® 100 Tracker Fund with any amount from £1,000. Then you can pay in regular monthly amounts of £30 or more, or top up your investment with lump sums of £1000 or more.

If you are investing via an ISA, you can pay in up to your Stocks and Shares ISA limit. You can start your FTSE® 100 Tracker Fund with any amount from £500 or regular payments from £30 per month. You can also top up your investment with lump sums of £200 or more.

Does the investment grow tax-free?
If you have invested via an ISA, or transferred in an existing ISA, any growth and withdrawals will be free from Income Tax and Capital Gains Tax and you can transfer your whole ISA to another manager at any time without losing any relief. The FTSE® 100 Tracker Fund receives dividend distributions net of a 10% tax credit which are not reclaimable.

If you are investing direct (not via an ISA) you may have to pay Capital Gains Tax on any gains that you have made when you cash in your shares. This might be payable if you sell your investment and make a profit (a gain), however, you could minimise any Capital Gains Tax liability by using your Capital Gains annual exemption in the year that you wish to cash in your investment.

The FTSE® 100 Tracker Fund receives dividend distributions net of a 10% tax credit which are not reclaimable. For this fund basic rate taxpayers have no further liability. If you are a higher rate taxpayer there will be an additional tax liability

Do I have to invest for a set length of time?
No. You can take out your money whenever you want to, but as this is a stock market investment, this is best viewed as a medium to long term investment so you should be prepared to invest for a minimum of five years. If you do want to withdraw some or all your money, there is normally no charge and it is simple to arrange (we may in exceptional circumstances apply a Dilution Levy - download the FTSE® 100 Tracker Fund Key Features Document (PDF, 375KB) for full information, alternatively, this is available from Financial Planning Direct). To make a withdrawal and keep your investment open, you just need to keep a minimum balance of £50 in the Fund.

Is my capital protected?
The FTSE® 100 Tracker Fund does not protect your capital. Your money will be invested in the stock market and the value of your investment will rise and fall broadly in line with the Index you have chosen. This means that you may get back less than you have paid in. If you want an investment that aims to protect your capital and offers you the opportunity to share in stock market growth our Financial Planning Managers will be able to discuss options with you. Just call us and we will make an appointment at a convenient time for you.

Are there any charges?
This is a low-cost investment, with no initial charge, no charge for withdrawals (We may in exceptional circumstances apply a Dilution Levy) and no charge for switching to another provider. There is simply a 1% annual management charge, which is worked out daily at the close of business.

How will I know how my investment is performing?
We will send you a statement and valuation for your investment every six months, in January and July. You can also get an up-to-date valuation at any time by calling us on 0845 605 0171. Our Fund prices are also quoted daily in the Financial Times and The Daily Telegraph.

How do I know whether this investment is right for me?
The FTSE® 100 Tracker Fund invests in a selection of the largest 100 companies listed on the London Stock Exchange, including household names such as Tesco, BP and Vodafone.

The FTSE® 100 Tracker Fund is suitable for new or experienced investors who want to take advantage of stock market performance, while spreading their risk by investing in a wide range of stocks (compared to holding single company shares) . As with all stock market investments, you need to be prepared to invest for a minimum of five years. You need to be 18 or over to invest in the Fund, but can invest for a child if you wish. Your capital is not protected and there is a high risk of loss so, if stock markets fall, you may get back less that you paid in. You also need to be able to make an investment decision without the need to seek advice as no advice is given for this product.

To help you decide whether the FTSE® 100 Tracker Fund is right for your needs, please make sure that you have read the Key Features and Terms and Conditions (PDF, 342KB) before applying. If you are unsure about whether this investment is suitable for you Financial Planning Direct can book an appointment with one of our financial advisers who can look at other investments for you and provide advice (they cannot give advice on the FTSE® 100 Tracker Fund).

When will my money be invested?
It will be invested on the day we receive your cheque, or on the following working day if your cheque arrives on a Saturday, Sunday or after 12 midday.

What if I change my mind after applying?
You have 14 days from when you receive your welcome letter confirming we have opened your account to tell us that you have changed your mind, and have your initial investment returned to you. Our contact details are:

RBS Collective Investment Funds Ltd
PO Box 6795
Brentwood
Essex
CM15 8WA

Telephone: 0845 605 0171 or Minicom 0800 404 6160. Lines are open from 8.30am until 5.30pm (UK time) on each Business day. Calls to this number may be recorded for training or monitoring purposes.

Provided by RBS Collective Investment Funds Limited.

Registered in Scotland No. SC46694. Registered Office: 24/25 St Andrew Square, Edinburgh, EH2 1AF.

Authorised and Regulated by the Financial Services Authority.

FTSE and Footsie are registered trademarks of the London Stock Exchange Limited and the Financial Times Limited ("FT") and are used by FTSE International Limited ("FTSE") under license. The shares in the FTSE® 100 Tracker Fund are not in any way sponsored, endorsed, sold or promoted by FTSE or by the London Stock Exchange or by the FT and neither the FTSE nor Exchange nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE® 100 Index and the figure at which the said Indexes stand at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, neither FTSE nor Exchange nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Indexes and neither FTSE or Exchange or FT shall be under any obligation to advise any person of any error therein.

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