Scottish Friendly MYPRIPG0424 My Prime (ISA) User Guide

Scottish Friendly MYPRIPG0424 My Prime (ISA)

Terms & Conditions

Product Guide and Terms & Conditions of the My Prime policy within your Scottish Friendly ISA
My Prime is a savings and investment policy that will be held within a Scottish ISA. If you already hold a Scottish Friendly ISA within the current tax year, this Product Guide refers to the My Prime policy which will sit within your existing Scottish Friendly ISA. This Product Guide applies to the tax year 2024/2025. If you do not already hold a Scottish Friendly ISA within the current tax year, this Product Guide refers to the setup of a Scottish Friendly ISA within which your My Prime policy will be held. The Terms & Conditions in this document form the basis of the agreement with you upon which we intend to rely. If you have any questions about these, please contact us. No advice has been given by Scottish Friendly in respect of this ISA or policy. We have not assessed whether this ISA or the policy is suitable for your financial needs and therefore you will not benefit from the protection of the Financial Conduct Authority (FCA) rules on assessing suitability. If you are in any doubt about the suitability of this product for yourself, you should contact your financial adviser.

Helping you decide

What is the purpose of this document?
The Financial Conduct Authority is a financial services regulator. It requires us, Scottish Friendly, to give you this important information to help you decide whether the My Prime policy within your Scottish Friendly ISA is right for you. You should read this document carefully so that you understand what you are buying and then keep it safe for future reference.

What questions should I ask before I invest?
In this document, we have given you the answers to some important questions. You’ll find these on.

What should I do now?
Please read the:

• Product Guide of the My Prime policy within your Scottish Friendly ISA
• Terms and Conditions

Please keep this document with your investment documentation, which we will send you. The Terms and Conditions in this document, together with the Application Form, form our standard client agreement upon which we intend to rely. For your benefit and protection, you should read these terms carefully before completing the Application Form. If you do not understand any point, please ask for further information. Details on how to contact us can be found.

Its aims

• To help your investments grow tax-efficiently and provide a tax-free return.
• To enable you to make use of your ISA allowance of up to £20,000 in any tax year.
• To provide potential growth on your investments over the medium to long term (5 years or more) through an investment fund or a choice of investment funds.

Your investment

• You can invest as much as you want provided your total investments in any tax year (with your Scottish Friendly ISA and/or a Stocks & Shares ISA, Cash ISA, Innovative Finance ISA, or Lifetime ISA with another ISA manager) do not exceed £20,000.

• You can invest monthly by Direct Debit or you can make a lump sum payment by single Direct Debit. The minimum regular monthly payment is £100 and the minimum lump sum is £2,000 at the outset.

• Whilst the investment funds within your My Prime policy within your Scottish Friendly ISA have an annual management charge
  of 1.5% of your fund value each year, you will receive a cash rebate value to take your charge down to 0.5% a year if you make a regular monthly contribution of at least £100 or your policy value is greater than £2,000.

• Please note that a cash rebate value in the Guaranteed Cash fund will only apply if the growth rate from the underlying assets within the fund is 1.5% or more. Please refer to page 24 for more information.

• Your money will be invested in a My Prime policy, which will be held within your Scottish Friendly ISA. Your money will be invested in the fund or funds you specify and may change at your discretion over time. Full details of the funds available to you are included in this document.

• You have access to your money at all times, although you should expect to leave your money invested for at least 5 years.

• If you wish, you can arrange for your payments to automatically increase by 2.5%, 5%, or 10% each year. You can stop, increase, or reduce the rate of increase at any time, however, you should be aware that doing so may mean you no longer receive your cash rebate value and you could be charged 1.5% a year if the value of your policy falls under £2,000 and you are not making a regular payment of at least £100 a month.

• There is no limit on the number of policies you can take out within your Scottish Friendly ISA provided you do not exceed your annual ISA investment allowance of £20,000. Your cash rebate value is applied at the individual fund level within your policy. So if you hold more than one policy within your ISA, the value in each policy must be greater than £2,000, or receiving regular payments of at least £100 a month to receive the cash rebate value.

• With My Prime (ISA) you will need to sign up to My Plans online service and elect to receive paperless correspondence.

Risks

• The rebate of your policy value each month is dependent on a regular monthly contribution of at least £100 being paid into your policy or that your policy value is at least £2,000. If you do not meet either of these conditions, the 1.5% annual management charge will automatically apply.
• Investing in the Guaranteed Cash fund will mean that you will not receive the rebate as noted above unless the growth rate from the underlying assets within the fund is 1.5% or more. Please refer to page 26 for more information.
• The actual cash-in value of your My Prime policy within a Scottish-friendly ISA will depend on the actual expenses and performance of the fund(s) selected.
• Stock market investments can go down as well as up and if this reduces the value of each policy within your ISA below £2,000, the 1.5% charge would apply, unless you are making a regular investment of at least £100 a month. As with all stock market investments you could get back less than you pay in.
• There will be risks associated with your specific fund(s) and therefore you should carefully consider each of these. You can find out more about the specific risks of each fund in this document.
• If you decide to exercise your right to cancel, you will get back the market value of your investment, which could be more or less than the amount you invested. If your ISA has been set up within 30 days of the cancellation request then your money will be returned and will not be treated as having been paid to an ISA. If your ISA has been set up more than 30 days after the cancellation request, then you will get your money back but it will, except for any transfers, be treated as having been paid to an
• ISA, and your annual subscription limit will therefore be reduced by this amount.
• The tax treatment of your policy depends on your circumstances and the levels and basis of taxation may change in the future. This may reduce the amount you get back or increase the amount of tax you pay.

Questions & answers

Who can apply?
You are eligible to apply if you are aged 18 or over and a UK resident.

Is this policy right for me?
The My Prime policy within your Scottish Friendly ISA is for investors wanting to commit to investing monthly or in a lump sum with a minimum intended term of at least 5 years, in an arrangement that offers a choice of investment options which are explained on pages 6 to 24 of this document. If you are in any doubt as to the suitability of this plan for your financial needs, you should contact a financial adviser.

What is an ISA?
ISA stands for Individual Savings Account. An ISA allows your savings or investment to grow tax-efficiently. Under the tax-efficient ISA umbrella, you can currently invest in one or more of the following types:

• Cash ISA – allows you to save tax efficiently in cash (not offered by Scottish Friendly).
• Innovative Finance ISA – allows you to lend to others without paying tax on the interest you earn (not offered by Scottish Friendly).
• Lifetime ISA – enables you to invest with a Government Bonus of 25% of your investment but with penalties for access before the age of 60 or for other than buying your first house under £450,000 (not offered by Scottish Friendly).
• Stocks and Shares ISA – also known as an Investment ISA.

Our Stocks and Shares ISA offers a choice of funds that include bonds and cash as well as stock market investments. You can find out more about each fund in this document. Your total investments with a Scottish Friendly ISA (or a Stocks & Shares ISA Cash ISA or Innovative Finance ISA or Lifetime ISA with another ISA Manager) must not exceed £20,000 in any tax year of which up to £4,000 can be allocated to a Lifetime ISA. Scottish Friendly only offers investment into an Investment ISA.

Is my Investment ISA a flexible ISA?
Scottish Friendly does not offer a flexible ISA. A flexible ISA enables you to reinvest any withdrawals you have made from your ISA in any tax year without it counting towards your total contributions in that tax year.

Can I have more than one ISA?
By Regulations, you are entitled to subscribe to multiple ISAs of the same type, except Lifetime ISA, within the tax year. All subscriptions must remain within the overall ISA limit of £20,000.

Can I have more than one Investment ISA with Scottish Friendly?
No. However, you are allowed to split your investment with Scottish Friendly into several different policies and an example of this is given in the next question.

How can I split my Investment ISA with Scottish Friendly into separate policies?
Whilst you can only have one Scottish Friendly ISA there are no restrictions on the number of policies you can hold within it. Rather than lumping all of your ISA money into one pot, you can split it into different policies giving you more control of your investment. By splitting your investment into different pots (policies), you can tag each one for different saving and investment objectives. For example, you may set up one for a child’s future and another for a rainy day. There is no limit on the number of pots you can have within your Investment ISA with Scottish Friendly provided your total investment does not exceed the £20,000 annual ISA investment limit. This includes any amount you may have subscribed to another Stocks & Shares ISA, Cash ISA, Innovative Finance ISA, or Lifetime ISA. Please bear in mind that your cash rebate value is applied at the individual policy level. So, each of your pots must receive regular payments of at least £100 a month or have a value of £2,000 for the cash rebate value to apply. So if, for example, you have multiple pots with a collective value over £2,000 and the value of one of your pots falls beneath £2,000, and it is not receiving regular payments of at least £100 a month into it, then the cash rebate value will not apply to this particular policy.

How do I set up a My Prime policy within my Scottish Friendly ISA?
You select at the outset how much you initially want to pay each month. If you wish, you can also select to automatically increase your payments by 2.5%, 5%, or 10% after each 12-month investment period. You can stop or change the rate of increase (subject to a maximum of 10% a year) at any stage. If you do not already have a Scottish Friendly ISA or an Investment ISA with another ISA Manager in the current tax year, then your ISA and policy come into force when your documentation is issued and your first payment is collected. Alternatively, if you already have a Scottish Friendly ISA, your policy will be added to your existing Scottish Friendly ISA and will come into force when your documentation is issued and your first payment is collected. Your payments are then invested in your policy which will buy units in the selected fund or funds of your choice. Your policy will be held within your ISA. The fund(s) you have selected will be detailed in your personalized illustration which will be issued with your policy document. You can read about how all the funds work.

How can I pay?
You can make monthly payments from £100 by regular Direct Debit or a one-off initial single payment of £2,000 by one-off Direct Debit, or a combination of both. Once you have set up a My Prime policy within a Scottish Friendly ISA you can change or stop your payments online at www.scottishfriendly.co.uk/my- plans Remember that if you have a policy value of less than £2,000 or you are no longer paying in at least a regular £100 a month it will mean that you no longer receive your cash rebate value and your annual charge would be 1.5% a year, until your payments or investment value meet the conditions for the cash rebate value to apply.

Who looks after my money?
When you select to invest some or all of your investment in any of the unit- linked funds, your money will be placed with an investment fund manager or range of managers selected by Scottish Friendly. In other words, your money will go into a fund that invests in another underlying fund or combination of funds. The underlying fund(s) will be selected by Scottish Friendly to ensure that your investment meets the performance objectives that we set out in the fund descriptions provided. In addition, we will consider the performance of the fund manager(s), charges, and the investment process employed by the fund manager(s). We’ll keep all aspects of the underlying fund(s) and the fund manager(s) under review so we may change them in the future. You can view the current underlying fund(s) and find more information at www.scottishfriendly.co.uk/isas/my-prime- isa

What are the tax advantages?
You pay no income tax or capital gains tax on investments within your Scottish Friendly ISA. However, the fund(s) in which your policy invests will receive UK dividend income net of corporation tax if it invests in any UK stocks and shares. Tax rules may change in the future.

How do I take money out of a My Prime policy?
You can make a withdrawal online by registering for our online service at www.scottishfriendly.co.uk/my-plans Withdrawals will be met by cancelling units in your fund(s) within your policy according to your instructions. If you do not specify which fund(s) the withdrawal should come from then we will make a withdrawal by canceling units in proportion to the value of each investment within your policy. Payments will be made within four working days of your units being sold and paid into the bank account that you use to make your payments. Where you make a withdrawal in any tax year, your annual allowance will not be affected. This means if you reinvest a withdrawal in the same tax year, it will count as a new subscription in that tax year. Remember that you are not making a regular monthly payment to your plan of at least £100 a month, if you make a withdrawal that leaves less than £2,000 in your policy then the annual management charge will automatically default to 1.5%.

How do I find out the current cash-in value of my investment?
You can find out the current cash-in value of your investment by calling our Customer Services Department on 0333 323 5433* or by visiting www.scottishfriendly.co.uk/my-plans

What happens if I die?
The death benefit under your My Prime policy within a Scottish Friendly ISA will be paid to your estate. The amount payable on death is 101% of the value of units held within all the policies, within your ISA at the date of written notification of death. The tax advantages of a Scottish Friendly ISA can be transferred to your Spouse or Civil Partner. This allowance is the value of a Scottish Friendly ISA at the date of your death and is in addition to your Spouse or Civil Partner’s own ISA allowance.

Our range of funds

Scottish Friendly fund risk and reward profiles
We offer a range of funds so you can choose one or more that suit your needs best. The funds available to you have a range of objectives and risk and reward profiles. Some funds invest in particular sectors such as UK Government Bonds or the UK Stock market. Others invest in a mix of assets some of which are specifically risk and return-graded to help you match your own risk and reward profile to your choice of investment fund. You can find much more information on each of these funds in the following pages. The diagram below lets you see how we expect the funds to compare against one another in terms of expected risk and return. The risk and reward category may shift over time and is not guaranteed.

Risk and reward profiles

Higher fund

What is the Higher fund?
The Higher fund is designed to achieve long-term growth from a mixed investment which may include the UK and global stock markets, cash, and government and company bonds. It will tend to focus on those assets with higher levels of potential risk and return (e.g. UK and international stock market assets) and is therefore likely to produce a higher but more volatile potential return than the Medium fund or the Lower fund. Overall the fund has been designed to match the historic level of risk associated with investing in the UK stock market. This does not mean that the fund will track or act like the UK stock market, only that an investor could expect a similar level of risk from this fund should its historic performance be repeated.

Fund-specific benefits Fund-specific risks

A higher risk and reward investment is linked to a managed basket of assets with an emphasis on higher long-term expected return assets such as the stock market.

Higher longer-term growth potential than a cash-based investment and better potential than the Medium fund or Lower fund.

|

Your cash-in value can rise and fall daily and you could get back less than you have paid in.

The fund contains a higher degree of risk than an investment in the Medium or Lower funds which means that it is likely to experience greater price rises and falls than the Medium or Lower funds.

The actual risk and return of the fund will depend on Scottish Friendly’s ability to efficiently allocate investments to meet the risk profile of the fund.

What does the Higher fund invest in?
The Higher fund is designed to achieve long-term growth from a mixed investment which may include the US, the UK, and other global stock markets, as well as cash, government, and company bonds. The fund’s current mix as of 01/03/24 is:

This mix may change tactically from time to time as decided by Scottish Friendly. In addition, the target mix will be reviewed at least once a year and will be published at: www.scottishfriendly.co.uk/risk-graded- funds

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the Higher fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300
• If investments grew at 5.0% a year you would get back £37,200
• If investments grew at 8.0% a year you would get back £43,000

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the Higher fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500
• If investments grew at 5.0% a year you would get back £15,400
• If investments grew at 8.0% a year you would get back £20,500

For both the regular monthly payments and lump sum investment examples shown above, please note:

• These figures are only examples and are not guaranteed they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be but are subject to the maximum rates specified by the Financial Conduct Authority. Please note that these maximum rates limit the growth rates we can show. This means that whilst we estimate that the Higher fund has a larger expected rate of return than the Medium fund and the Lower fund, all are equal because they are capped at the same maximum permissible rate.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return will be determined by the mix of funds and their performance over the time of your investment and the rebates applied throughout the policy.

What are my guarantees?
As a largely stock market-based investment, there are no guarantees on your final cash-in value and therefore you could get back less than you have invested.

What are my charges?
You will be charged an effective 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the Higher fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 5% a year, is set out in the next column.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?

The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year.

Which manager currently looks after my money?
The Higher fund is currently linked to:

• Government bonds : Legal & General All Stocks Gilt Index Trust
• UK equities : Legal & General UK Index Trust
• US equities : Legal & General US Index Trust
• Pacific equities : Legal & General Pacific Index Trust

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa

Medium fund

What is the Medium fund?
The Medium fund is designed to achieve long-term growth from a mixed investment which may include the UK and global stock markets, cash, and government and company bonds. It will balance its investments across all the above assets but will tend to favor those with greater levels of historic risk and expected return (e.g. stock market assets). It is likely to produce a level of potential risk and return that lies between the Higher and Lower funds.

Fund-specific benefits Fund-specific risks

An investment linked to a managed basket of assets tends to favor assets such as the stock market, which have greater levels of potential risk and return.

Greater longer-term growth potential than a cash-based investment and better potential than the Lower fund but less than that of the Higher fund.

|

Your cash-in value can rise and fall daily and you could get back less than you have paid in.

The fund contains a greater level of risk than the Lower fund but less than the Higher fund. This means that the Medium fund is likely to experience greater levels of price rises and falls than the Lower fund.

The actual risk and return of the fund will depend on Scottish Friendly’s ability to efficiently allocate investments to meet the risk profile of the fund.

What does the Medium fund invest in?
The Medium fund is designed to achieve long-term growth from a mixed investment which may include the US, the UK, and other global stock markets and government bonds, as well as company bonds and cash. The fund’s current mix as of 01/03/24 is:

This mix may change tactically from time to time as decided by Scottish Friendly. In addition, the target mix will be reviewed at least once a year and will be published at: www.scottishfriendly.co.uk/risk-graded- funds

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the Medium fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300
• If investments grew at 5.0% a year you would get back £37,200
• If investments grew at 8.0% a year you would get back £43,000

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the Medium fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500
• If investments grew at 5.0% a year you would get back £15,400
• If investments grew at 8.0% a year you would get back £20,500

For both the regular monthly payments and lump sum investment examples shown on the previous page and above, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be but are subject to the maximum rates specified by the Financial Conduct Authority. Please note that these maximum rates limit the growth rates we can show. This means that whilst we estimate that the Medium fund has a larger expected rate of return than the Lower fund but a lower expected rate of return than the Higher fund, all are equal because they are capped at the same maximum permissible rate.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return will be determined by the mix of funds and their performance over the time of your investment and the rebates applied throughout the policy.

What are my guarantees?
As an investment that favors stock market investments, there are no guarantees on your final cash-in value and therefore you could get back less than you have invested.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of the annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the Medium fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 5% a year, is set in the next column.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?
The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946. Putting it another way, this would have the same effect as bringing the investment growth from 5% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5% a year down to 4.5% a year.

Which manager currently looks after my money?
The Medium fund is currently linked to a range of funds:

• Government bonds : Legal & General All Stocks Gilt Index Trust
• Pacific equities : Legal & General Pacific Index Trust
• UK equities : Legal & General UK Index Trust
• US equities : Legal & General US Index Trust

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa

Lower fund

What is the Lower fund?
The Lower fund is designed to achieve long-term growth from a mixed investment which may include UK and global stock markets, cash, and government and company bonds. It will tend to focus on those assets with historically lower levels of risk and expected return (cash and bonds) and is likely to produce a steadier but lower level of potential return than the Medium fund or the Higher fund. Overall the Lower fund is designed to match the historic level of risk associated with investing in UK Government long-term bonds. This does not mean that the fund will track or act like the UK Government bonds, only that an investor could expect a similar level of risk from this fund should the historic performance be repeated.

Fund-specific benefits Fund-specific risks

A lower-risk and reward investment is linked to a managed basket of assets with an emphasis on safer assets such as bonds and cash. Greater longer-term growth potential than a cash-based investment.| Your cash-in value can rise and fall daily and you could get back less than you have paid in. Whilst the Lower fund contains an element of risk it is lower than that of the Higher or Medium funds. This means that the fund is likely to experience a lesser level of price rises and falls than the Higher or Medium funds. The actual risk and return of the Lower fund will depend on Scottish Friendly’s ability to efficiently allocate investments to meet the risk profile of the fund.

What does the Lower fund invest in?
The Lower fund is designed to achieve long-term growth from a mixed investment which may include company and government bonds, the US, the UK, and other global stock markets, as well as cash. The fund’s current mix as of 01/03/24 is:

This mix may change tactically from time to time as decided by Scottish Friendly. In addition, the target mix will be reviewed at least once a year and will be published at: www.scottishfriendly.co.uk/risk-graded- funds

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

A. Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the Lower fund, the figures in the next column show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300
• If investments grew at 5.0% a year you would get back £37,200
• If investments grew at 8.0% a year you would get back £43,000

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the Lower fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500
• If investments grew at 5.0% a year you would get back £15,400
• If investments grew at 8.0% a year you would get back £20,500

For both the regular monthly payments and lump sum investment examples shown above, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be but are subject to the maximum rates specified by the Financial Conduct Authority. Please note that these maximum rates limit the growth rates we can show. This means that whilst we estimate that the Lower fund has a lower expected rate of return than the Medium fund and the Higher fund, all are equal because they are capped at the same maximum permissible rate.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return will be determined by the mix of funds and their performance over the time of your investment and the rebates applied throughout the policy.

What are my guarantees?
Despite the lower-risk nature of the assets within the Lower fund, there are no guarantees on your final cash-in value and therefore you could get back less than you have invested.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of the annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the Lower fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 5% a year, is set out below.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?
The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946. Putting it another way, this would have the same effect as bringing the investment growth from 5% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5% a year down to 4.5% a year.

Which manager currently looks after my money?
The Lower fund is currently linked to a range of funds:

• Company bonds: Legal & General High Income Index Trust
• Government bonds : Legal & General All Stocks Gilt Index Trust
• Pacific equities : Legal & General Pacific Index Trust
• UK equities : Legal & General UK Index Trust
• US equities : Legal & General US Index Trust

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa

Unitized With-Profits fund

What is the Scottish Friendly With-Profits fund (Unitised With-Profits)?
Our Unitised With-Profits fund is a mixed-managed fund from Scottish Friendly where premiums are pooled with those of other clients and returns are linked to the performance of the underlying assets within the fund. Additionally, returns are smoothed to reduce some of the ups and downs of the investment market. The fund also provides a guaranteed capital sum in specific circumstances which are explained below.

Fund-specific benefits Fund-specific risks

An investment linked to a portfolio of stock market, property, cash, and bond assets. Give your money the long-term growth potential of a fund that invests across the stock market, property, cash, and bond assets. On the 10th anniversary (and each 5th anniversary thereafter) of your continuous investment in the fund, you can receive a guaranteed cash sum which will be equal to the value of units held in the Unitised With-Profits fund.|

Your cash-in value can rise and fall daily and you could get back less than you have paid in, other than on the 10th anniversary of your continuous investment in the fund.

When you cash in or take a withdrawal from your investment, your unit value may either be increased by a final bonus or reduced by a market value reduction to bring it into line with the performance of the assets within the With-Profits fund.

No market value reduction can apply on the 10th anniversary of your continuous investment in the fund.

Continuous investment means you have maintained at least one full unit in the Unitised With-Profits fund and is measured from the first day you invest.

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the Unitised With-Profits fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300
• If investments grew at 5.0% a year you would get back £37,200
• If investments grew at 8.0% a year you would get back £43,000

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the Unitised With-Profits fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500
• If investments grew at 5.0% a year you would get back £15,400
• If investments grew at 8.0% a year you would get back £20,500

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed
  • they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be and include allowance for the provision of your guaranteed minimum cash value but are subject to the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

How does an investment in the Unitised With-Profits fund work?
Uniquely when you invest in the Unitised With-Profits fund you’ll not only receive a current cash-in value but also a guaranteed minimum cash-in value on specified future guaranteed dates (the first of which is 10 years from the date you started to invest in the fund). Your investment will purchase units in the Unitised With-Profits fund. The price of these units cannot fall but they can grow over time through a daily growth rate (which could be 0%) which will be applied to the unit price. This is known as a regular bonus. The value of these units provides you with your guaranteed minimum cash-in value on your guaranteed date. Your current cash-in value is determined by taking the value of your units and applying a final bonus or market value reduction to your holdings and these are explained below.

How is the daily rate of growth determined?
The rate of growth (if any) we apply to the unit price in the Unitised With- Profits fund is usually determined once a year, but in extreme circumstances, this could change more frequently and it could fall to zero. This is known as the regular bonus rate. The amount of the regular bonus is set at a level that takes account of the investments within the fund and the projected final payout on policies. The level is set with the intention of allowing My Scottish Friendly to pay a final bonus.

How are final bonuses or market value reductions determined?
If the performance of the underlying investments within the Unitised With- Profits fund has been good then the value of your units may be enhanced by a final bonus. Alternatively, if the performance of the underlying investments within the fund has been poor, a Market Value Reduction (MVR) may apply, which reduces the value of your units. In all cases final bonuses and MVRs are subject to smoothing (see below) furthermore all bonuses and MVRs are determined by Scottish Friendly based on the profits we make and how we decide to distribute them. Remember that your investment will still be subject to a guaranteed minimum cash-in value on your future guaranteed dates.

What will determine my future guaranteed dates?
Your first future guaranteed date is the 10th anniversary of continuous investment in the Unitised With-Profits fund. If you haven’t made any withdrawals or switched out of the fund, this will be at least equal to the value of all the premiums you have invested in the Unitised With-Profits fund. Remember you could receive a final bonus so the value of your units in the Unitised With-Profits fund is simply the minimum you could receive on that date. The 10th anniversary is measured from the first date of your investment in the Unitised With-Profits fund within your policy (whether you invest directly or switch investments from another fund) and will require you to have kept at least one unit in the Unitised With-Profits fund within your policy throughout the 10 years for this guarantee to apply. If you invest for longer than 10 years your future guaranteed date moves on to the next 5th anniversary, for example on the 15th anniversary, the 20th anniversary, etc.

What is smoothing?
When applying a final bonus or MVR, Scottish Friendly aims to ensure that pay- outs remain in line with the amount you would receive had you invested directly in the underlying assets within the Unitised With-Profits fund. To help smooth out these adjustments, rates are normally rounded to the nearest 5%.

How does Scottish Friendly decide what the Unitised With-Profits fund invests in?
Normally between 20% and 70% of the assets backing your policy will be invested in shares and property with the rest in cash, government, and corporate bonds. The value of the underlying assets within the Unitised With- Profits fund is closely monitored against the amount required to pay guaranteed benefits. If the amount should fall close to the minimum value, the proportion of assets held in shares and property could be significantly reduced. The investment strategy is reviewed at least once a year and the investment outlook and performance are monitored at least monthly. The fund will be managed according to the full Principles and Practices of Financial Management available via our website or on request. You will be notified at least 3 months in advance of any changes to principles governing the fund. Scottish Friendly will always hold more assets than it needs to deliver the benefits promised to members. These support assets are also used to provide additional security and fund policy smoothing.

How does Scottish Friendly manage business risks?
The fund is managed to maximize growth whilst limiting risk to an acceptable level, as well as meeting all legal and regulatory requirements. The risks the fund is exposed to include new business costs, administration costs, other business ventures, and supporting guaranteed benefits for specific policyholders, should the assets set aside become unable to support it. Every year the Board will report to members confirming that the fund has been managed by its principles and practices, noting any discretion exercised under advice from the fund’s With-Profits Actuary.

How do I find out the current cash-in value of my investment in the Unitised With-Profits fund?
The cash-in value of your holdings with the Unitised With-Profits fund is, broadly, based on the performance of the underlying assets within the Unitised With-Profits fund. To calculate this we enhance the value of your units in the Unitised With-Profits fund by a final bonus or reduce them with a market value reduction to produce your cash-in value. You can find out your current cash-in value by phoning us on 0333 323 5433 or visiting www.scottishfriendly.co.uk /my-plans

What are my charges?
You will be charged an effective all-in 0.5% fee each year.
The final return that you receive from an investment in the Unitised With- Profits fund includes an allowance for an annual management charge of 1.5% of the value of the fund. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the value of the fund each year. The value of annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month.
The annual management fee includes the cost of fund management for the underlying fund.
We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out on the next page. The figures apply to investments in the Unitised With-Profits fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 3.5% a year, is set out below.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?
The deductions include expenses, charges, and any other reductions, including benefits such as life insurance. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946 Putting it another way, this would have the same effect as bringing the investment growth from 5% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5% a year down to 4.5% a year.

Who looks after my money?
The Unitised With-Profits fund is managed by Scottish Friendly.

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa

UK Tracker fund

What is the UK Tracker fund?
The UK Tracker fund is designed to closely track the performance of the UK stock market.

Fund-specific benefits Fund-specific risks

An investment linked to an index of the UK stock market. It is designed to link to well-known high-street brands and companies listed in the UK.

Give your money the long-term growth potential of the UK stock market.

| Your cash-in value can rise and fall daily and you could get back less than you have paid in.

The fund’s performance will be mainly dependent on the movement in the UK stock market.

What does the UK Tracker fund invest in?
To provide flexibility the fund does not specify the exact index of the UK stock market that it follows and this may change over time. However, any index that we select will be biased towards large well-known companies listed in the UK. For example, these currently include BP, Tesco, and BT. Therefore the fund will invest in underlying funds or instruments that are designed to track the movement of an index which broadly represents the largest companies listed on the UK stock market.

What might I get back from my policy?
The amount you get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the UK Tracker fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300.
• If investments grew at 5.0% a year you would get back £37,200.
• If investments grew at 8.0% a year you would get back £43,000.

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the UK Tracker fund, the figures below show how much your My Prime policy could be worth, after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500.
• If investments grew at 5.0% a year you would get back £15,400.
• If investments grew at 8.0% a year you would get back £20,500.

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be but are subject to the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return from any investment in the UK Tracker fund will be determined by the performance of the underlying fund or instruments we select and how well they track their index. Broadly, however, your return will be in line with the movement in UK shares over the time you invest in the fund the time you cash in or switch to another fund, and the rebates applied throughout the policy.

What are my guarantees?
As an investment directly linked to the stock market your fund can rise and fall daily and therefore you could get back less than you have invested.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of the annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund but not the transaction and other costs which are over and above We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments

If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the UK Tracker fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 5% a year, is set out below.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?

The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year.

Which manager currently looks after my money?
The UK Tracker fund is currently linked to the Legal & General UK Index Trust.

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa Where there are any changes to the fund manager we will inform all investors in writing.

UK Active fund

What is the UK Active fund?
The UK Active fund is designed to invest in shares of companies listed in the UK. The manager of the underlying fund will pick a mix of stocks they believe will outperform the UK stock market and sell those they believe will underperform.

Fund-specific benefits Fund-specific risks

An investment linked to an actively managed investment in UK stocks and shares.

Give your money the long-term growth potential of the UK stock market, where stocks and shares are selected by an expert fund manager who will aim to outperform the market.

|

Your cash-in value can rise and fall daily and you could get back less than you have paid in.

The fund’s performance will largely depend on the movement in the UK stock market but will also be dependent on the ability of the fund manager to select stocks and shares that grow.

What does the UK Active fund invest in?
The UK Active fund normally invests in an underlying fund selected by Scottish Friendly which will have the intention of outperforming the UK stock market.

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the UK Active fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300.
• If investments grew at 5.0% a year you would get back £37,200.
• If investments grew at 8.0% a year you would get back £43,000.

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the UK Active fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500.
• If investments grew at 5.0% a year you would get back £15,400.
• If investments grew at 8.0% a year you would get back £20,500.

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be but are subject to the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return from any investment in the UK Active fund will be determined by the performance of the underlying fund and how successfully the manager can select stocks that grow and sell stocks before they fall. Your final return will primarily be determined by the general movement in the overall UK stock market but will also depend on the manager’s ability to select stocks and shares that can grow, and the rebates applied throughout the policy.

What are my guarantees?
As an investment linked to the stock market, your fund can rise and fall daily and therefore you could get back less than you have invested, and the rebates applied throughout the policy.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the UK Active fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 5% a year, is set out below.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?
The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year

Which manager currently looks after my money?
The UK Active fund is currently linked to the Scottish Friendly Asset Managers UK Growth OEIC.

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa. Where there are any changes to the fund manager we will inform all investors in writing.

UK Government Bond fund

What is the UK Government Bond fund?
The UK Government Bond fund is designed to invest in bonds (gilts) issued by the UK Government.

Fund-specific benefits Fund-specific risks

An investment linked to an index of bonds issued by the UK Government.

Give your money the growth potential and security of long-term bonds issued by the UK Government.

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Your cash-in value can rise and fall daily and you could get back less than you have paid in.

The fund’s performance will mainly depend on the creditworthiness of the UK Government and the movement in long-term interest rates which can raise and lower the value of bonds held in the fund.

What does the UK Government Bond fund invest in?
The UK Government Bond fund invests in an underlying fund selected by Scottish Friendly investing in UK Government bonds with varying length terms (durations), with an average term of more than 5 years.

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186.24), with a 100% investment in the UK Government Bond fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 1.25% a year you would get back £31,200.
• If investments grew at 4.25% a year you would get back £35,900.
• If investments grew at 7.25% a year you would get back £41,500.

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the UK Government Bond fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 1.25% a year you would get back £10,700.
• If investments grew at 4.25% a year you would get back £14,400.
• If investments grew at 7.25% a year you would get back £19,100.

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed
  • they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be. They are less than the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return from any investment in the UK Government Bond fund will be determined by the performance of the government bonds within the underlying fund, and the rebates applied throughout the policy.

What are my guarantees?
All bonds within the underlying fund will have their face value guaranteed by the UK Government. However, the day-to-day value of these bonds can rise and fall with the movement in interest rates. Therefore whilst this fund is lower risk than say a stock market fund your capital is not guaranteed and it is possible to get back less than you have invested.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. Charges could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186.24), the effect of charges on your payments is set out below. The figures apply to investments in the UK Government Bond fund. The last two columns assume that your money will grow by 4.25% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid in

to date (£)

| Actual deductions to date (£)| Effect of deductions to date (£)| What you might get back (£)
---|---|---|---|---
1| 2400.00| 6| 6| 2440
2| 4920.00| 26| 26| 5110
3| 7566.00| 60| 61| 8000
4| 10344.24| 109| 113| 11100
5| 13261.44| 175| 184| 14500
10| 30186.24| 804| 902| 35900

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 4.25% a year, is set out below.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid in

to date (£)

| Actual deductions to date (£)| Effect of deductions to date (£)| What you might get back (£)
---|---|---|---|---
1| 10000.00| 51| 51| 10300
2| 10000.00| 105| 107| 10700
3| 10000.00| 161| 168| 11100
4| 10000.00| 219| 233| 11500
5| 10000.00| 279| 303| 12000
10| 10000.00| 614| 737| 14400

What are the deductions for?
The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £902. Putting it another way, this would have the same effect as bringing the investment growth from 4.25% a year down to 3.7% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £737. Putting it another way, this would have the same effect as bringing the investment growth from 4.25% a year down to 3.7% a year.

Which manager currently looks after my money?
The UK Government Bond fund is currently linked to the Legal & General All Stocks Gilt Index.

Where can I find out more information?
You can read the Key Information Document to find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa Where there are any changes to the fund manager we will inform all investors in writing.

International Company Bond fund

What is the International Company Bond fund?
The International Company Bond fund is designed to invest in bonds issued by companies throughout the world.

Fund-specific benefits Fund-specific risks

An investment linked to a portfolio of bonds issued by companies throughout the world, selected by an expert fund manager.

Give your money the growth potential and security of long-term bonds issued by companies throughout the world.

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Your cash-in value can rise and fall daily and you could get back less than you have paid in.

The fund’s performance will depend on the creditworthiness of the company bonds purchased by the fund manager, the movement in the long-term interest rates, and the movement in currency exchange rates.

What does the International Company Bond fund invest in?
The International Company Bond fund invests in an underlying fund selected by Scottish Friendly to actively manage a portfolio of bonds issued by companies, a large proportion of which will be UK-based companies and the remainder from overseas.

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), with a 100% investment in the International Company Bond fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300.
• If investments grew at 5.0% a year you would get back £37,200.
• If investments grew at 8.0% a year you would get back £43,000.

Lump sum investment
If you invest a single payment of £10,000 for 10 years, the figures below show how much your My Prime policy could be worth after charges, with a 100% investment in the International Company Bond fund if it grows under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500.
• If investments grew at 5.0% a year you would get back £15,400.
• If investments grew at 8.0% a year you would get back £20,500.

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be. They are less than the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return from any investment in the International Company Bond fund will be determined by the performance and value of the underlying bonds within the fund, which will be related to the level of interest rates, the ability of the companies to pay, and (as the fund also invests outside the UK) the relative movement of exchange rates, and rebates applied throughout the policy.

What are my guarantees?
The bonds within the fund will be guaranteed by the underlying companies but they could of course fail to make their payments or become bankrupt. Therefore the day-to-day value of these bonds can rise and fall due to several factors and it is possible to get back less than you have invested.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of annual cash rebate value is calculated daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the International CompanyBond fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum

The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 2.0% a year, is set out in the next column.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?
The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792. Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year.

Which manager currently looks after my money?
The International Company Bond fund is currently linked to the Legal & General Fixed Interest fund.

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime-isa Where there are any changes to the fund manager we will inform all investors in writing.

International Ethical fund

What is the International Ethical Fund?
The International Ethical Fund is designed to invest in shares of global companies that have been assessed to meet ethical criteria.

Fund-specific benefits Fund-specific risks

An investment linked to an index that includes global companies but with no or minimal exposure to non-renewable energy, adult entertainment, alcohol, gambling, tobacco, or weapons, and companies that do not meet the UN Global Compact Principles.

Give your money the long-term growth potential of ethical global growth potential.

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Your cash-in value can rise and fall daily and you could get back less than you have paid in.

Your fund’s performance will depend mainly on the movement in global stock markets but will also depend on the specific value of the qualifying stocks and shares contained within the fund. Also, as a fund that is linked to international stocks and shares, your return will be exposed to movements in the currency markets.

The fund’s ethical criteria do not reduce the investment risk associated with this form of investment.

Your views on ethical investing may change over time and therefore this fund may no longer meet your personal views of ethical investing.

What does the International Ethical fund invest in?
The International Ethical fund invests in an underlying fund selected by Scottish Friendly to passively manage a portfolio of shares issued by companies or investments linked to the shares of companies throughout the world that have minimal, if any, direct exposure to Controversies (i.e. against the UN Global Compact Principles), Non-renewable energy (Fossil Fuel and Nuclear Power), Vice products (Adult Entertainment, Alcohol, Gambling, and Tobacco) and Weapons.

What might I get back from my policy?
The amount you will get back from your My Prime policy will depend on how much you have paid in, the length of time it has been invested, the investment performance in the fund(s) over this time, and the amount of money, if any, you have taken out of your policy.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year, for 10 years (total amount invested £30,186) with a 100% investment in the International Ethical fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at 2.0% a year you would get back £32,300.
• If investments grew at 5.0% a year you would get back £37,200.
• If investments grew at 8.0% a year you would get back £43,000.

Lump sum investment
If you invest a single payment of £10,000 for 10 years, the figures below show how much your My Prime policy could be worth after charges, with a 100% investment in the International Ethical fund if it grows under three different scenarios:

• If investments grew at 2.0% a year you would get back £11,500.
• If investments grew at 5.0% a year you would get back £15,400.
• If investments grew at 8.0% a year you would get back £20,500.

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment.
• You could get back more or less than this.
• These yearly growth rates are our reasonable estimate of what the investment returns could be but are subject to the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a
• Scottish Friendly ISA. We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return from any investment in the International Ethical fund will be determined by the performance of the underlying fund or instruments we select and how well they track their index. Broadly, however, your return will be in line with the movement in global stock markets and the movement in currency exchange rates.

What are my guarantees?
As an investment directly linked to the stock market your fund can rise and fall daily and therefore you could get back less than you have invested.

What are my charges?
You will be charged an effective all-in 0.5% fee each year. The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price. To make this an effective charge of 0.5% a year you will receive a cash rebate value of 1% of the fund value each year. The value of annual cash rebate value is calculated on a daily basis with units credited to your policy monthly on the fifth working day of each subsequent month. This annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year, for 10 years (total amount invested £30,186), the effect of charges on your payments is set out below. The figures apply to investments in the International Ethical Fund. The last two columns assume that your money will grow by 5% a year.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £2,400| £6| £6| £2,450
2| £4,920| £26| £26| £5,140
3| £7,566| £60| £62| £8,080
4| £10,344| £110| £115| £11,200
5| £13,261| £177| £188| £14,700
10| £30,186| £827| £946| £37,200

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 5% a year, is set out below.

WARNING – if you cash in, especially in the early years, you could get back less than you have paid in.

At the end of the year

| Total paid into date| Total actual deductions to date| Effect of deductions to date| What you might get back
---|---|---|---|---
1| £10,000| £52| £52| £10,400
2| £10,000| £106| £109| £10,900
3| £10,000| £163| £171| £11,400
4| £10,000| £223| £240| £11,900
5| £10,000| £285| £314| £12,400
10| £10,000| £641| £792| £15,400

What are the deductions for?

• The deductions include expenses, charges, and any other reductions.
• The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £946.
• Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year.
• The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £792.
• Putting it another way, this would have the same effect as bringing the investment growth from 5.0% a year down to 4.5% a year.

Which manager currently looks after my money?
The International Ethical Fund is currently linked to the Vanguard ESG Developed World All Cap Equity Index (UK) fund.

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime-isa Where there are any changes to the fund manager or the ethical criteria we will inform all investors in writing.

Guaranteed Cash fund

What is the Guaranteed Cash fund?
The Guaranteed Cash fund is a short-term investment fund designed to provide the security of knowing that your investment value will not fall from day to day. The fund is not designed as a long-term shelter for your money but as a temporary home should you wish to reduce your risk to the lowest possible choice available from Scottish Friendly. The fund invests in a deposit or range of deposits selected by Scottish Friendly and the value is further guaranteed by Scottish Friendly not to fall, no matter what happens to interest rates or the underlying deposits.

Fund-specific benefits Fund-specific risks

A guarantee from Scottish Friendly that the amount you invest in the fund will not fall over any period.

A short-term home for your money if you wish to remove risk from your investment during periods of market instability or whilst you select an appropriate fund(s) to invest in.

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The growth potential of the fund is likely to be small due to the effect of charges and the low-risk profile of the fund.

The fund is not a suitable long-term investment due to its low growth rate potential.

What does the Guaranteed Cash fund invest in?
The Guaranteed Cash fund invests in a deposit or range of deposits as selected by Scottish Friendly to maintain the security and accessibility of the assets invested and, where possible, achieve a competitive interest rate.

What might I get back from my policy?
You are guaranteed to get back at least the amount you have invested. It is likely though that you will receive little in interest at present due to the low rates of interest currently paid on cash deposits.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186.24), with a 100% investment in the Guaranteed Cash fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at -0.50% a year you would get back £30,100.
• If investments grew at 2.50% a year you would get back £33,100
• If investments grew at 5.50% a year you would get back £38,100..

Lump sum investment
If you invest a single payment of £10,000 for 10 years with a 100% investment in the Guaranteed Cash fund, the figures below show how much your My Prime policy could be worth after charges, growing under three different scenarios:

• If investments grew at -0.50% a year you would get back £10,000.
• If investments grew at 2.50% a year you would get back £12,100
• If investments grew at 5.50% a year you would get back £16,200.

For both the regular monthly payments and lump sum investment examples shown in the previous column, please note:

• These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investment grows and the tax treatment of your investment. For the regular monthly payments, growth rates may provide for a return that is negative or less than the total contributions you will make over a 10-year term. This can be due to the negative growth rate and the effect of charges; however, you are guaranteed to get back at least what you have contributed.
• You are guaranteed to get back at least the amount you have invested, though you could get back more.
• These yearly growth rates are our reasonable estimate of what the investment returns could be. They are less than the maximum rates specified by the Financial Conduct Authority.
• The charges appropriate to a My Prime policy have been deducted in calculating the figures shown.
• Do not forget that inflation will reduce what you can buy in the future with the value of your My Prime policy within a Scottish ISA.

We will send you a statement twice a year. Your ISA statement will show the activity that has taken place since your previous statement.

What will my final return be?
Your final return from any investment in the Guaranteed Cash fund will be determined by the performance of the deposit(s) selected by Scottish Friendly as well as any costs or charges taken from the fund, and the rebates applied throughout the policy.

What are my guarantees?
You are guaranteed to get back at least what you have invested in the Guaranteed Cash fund whenever you cash it in.

What are my charges?
The fund in which you invest has an annual management charge of 1.5% which is allowed for within the fund price, but will only apply if the growth rate is 1.5% or more each year to ensure that the fund price doesn’t fall. If the growth rate from the underlying assets within the fund is 1.5% or more, we will apply a cash rebate value. This will be 1% of the fund value each year to make this an effective charge of 0.5% a year. If the cash rebate value applies, we would calculate this daily with units credited to your policy monthly on the fifth working day of each subsequent month. The annual management fee includes the cost of fund management for the underlying fund. We have taken account of all these charges in the figures shown in these examples. They could increase in the future if our costs increase more than expected.

Regular monthly payments
If you invest an initial monthly payment of £200, escalating by 5% each year for 10 years (total amount invested £30,186.24), the effect of charges on your payments is set out below. The figures apply to investments in the Guaranteed Cash fund. The last two columns assume that your money will grow by 2.50% a year.

At the end of the year

| Total paid in

to date (£)

| Actual deductions to date (£)| Effect of deductions to date (£)| What you might get back (£)
---|---|---|---|---
1| 2400.00| 6| 6| 2420
2| 4920.00| 25| 26| 5020
3| 7566.00| 58| 59| 7790
4| 10344.24| 106| 108| 10700
5| 13261.44| 169| 174| 13900
10| 30186.24| 754| 806| 33100

Lump sum
The effect of charges on your single payment of £10,000 in the same fund, assuming an average rate of growth of 2.50% a year, is set out below.

At the end of the year| Total paid in

to date (£)

| Actual deductions to date (£)| Effect of deductions to date (£)| What you might get back (£)
---|---|---|---|---
1| 10000.00| 50| 50| 10100
2| 10000.00| 103| 104| 10400
3| 10000.00| 156| 159| 10600
4| 10000.00| 210| 218| 10800
5| 10000.00| 265| 278| 11000
10| 10000.00| 558| 622| 12100

What are the deductions for?
The deductions include expenses, charges, and any other reductions. The last line in the regular monthly payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £806. Putting it another way, this would have the same effect as bringing the investment growth from 2.50% a year down to 2.0% a year. The last line in the lump sum payments table shows that if you withdraw your investment after 10 years, the effect of the total deductions could amount to £622. Putting it another way, this would have the same effect as bringing the investment growth from 2.50% a year down to 2.0% a year.

Which manager currently looks after my money?
The Guaranteed Cash fund is managed by Scottish Friendly.

Where can I find out more information?
You can read the Key Information Document and find out more information about this fund at www.scottishfriendly.co.uk/isas/my-prime- isa

Further information

Unit prices
The unit price of the funds available in a My Prime policy within a Scottish Friendly ISA is published every day. You can check the current cash-in value of your My Prime policy by logging on to our secure website www.scottishfriendly.co.uk/my-plans or by telephoning our Customer Services Team on 0333 323 5433*.

Cancellation rights
When you set up a Scottish Friendly ISA within which your My Prime policy will be held, you’ll receive notice of your right to change your mind and how to cancel within your welcome pack. You’ll then have 30 days to cancel your investment and we’ll provide instructions letting you know how to do this. If you decide to exercise your right to cancel your policy, you will get back the market value of your investment, which could be more or less than the amount you invested. After 30 days you will no longer have the right to cancel your policy and you will have to cash it in, which means you could get back more or less than the amount you invested. If your ISA has been set up within 30 days of the cancellation request then your investment will not be treated as having been paid to an ISA. If your ISA was set up more than 30 days before the cancellation request, then your investment will, except for any transfers, be treated as having been paid to an ISA, and your annual ISA subscription limit will therefore be reduced by this amount. Your right to cancel applies when you set up a Scottish Friendly ISA. If you take out future policies within your Scottish Friendly ISA, you will not have the right to cancel these policies.

Withdrawals
You can make a withdrawal online by registering for our online service at www.scottishfriendly.co.uk/my-plans Withdrawals will be met by cancelling units in your fund(s) according to your instructions. If you do not specify which fund(s) the withdrawal should come from then we will make a withdrawal by cancelling units in proportion to the value of each fund within your policy. Payments will be made within four working days of your units being sold. Where a full withdrawal is made before the end of the month no further cash rebate values will be paid and you will lose any cash rebate value earned from the first of the month. Where a partial withdrawal is made before the end of the month that leaves a policy value that is less than £2,000, and you are not making a regular monthly payment into your plan of more than £100, you will lose any cash rebate value and your policy will automatically default to the 1.5% annual management charge for that month and subsequent months until your policy value is greater than £2000 or you make a regular payment of at least £100 in that month.

Fund switching
You can make changes to the investment held in your My Prime policy by registering for our online service at www.scottishfriendly.co.uk/my- plans or in writing to Scottish Friendly. There is no charge for a reasonable number of fund switches made per calendar year. However, excessive usage of more than 60 switches within a calendar year will incur a charge of £25 per subsequent switch. All switch instructions received by noon each day will be processed at the next valuation point, which is normally the same day.

Transfer in
You can transfer a Scottish Friendly Child Trust Fund into a My Choice policy within a Scottish Friendly ISA on reaching age 18, via the Child Trust Fund Maturity Options Application. Transfers from an ISA or Child Trust Fund do not count toward your ISA subscription. If you hold one or more ISAs with another ISA Manager, you can transfer these to Scottish Friendly by asking for our ISA Transfer Application Form. Transfers can only take place in cash and will be invested into a My Prime policy within your Scottish Friendly ISA. Scottish Friendly does not accept transfers into a My Prime policy from a flexible ISA. Child Trust Fund transfers will be invested in a My Choice policy within your Scottish Friendly ISA. Once you have completed the details and returned the form to us, we will provide you with details of your new policy. To find out more, contact us on 0333 323 5433*.

Transfer out
At your written request, we will transfer your investment to another ISA Manager without the loss of tax relief in line with current ISA rules. Transfer payments will be met by selling units in the fund at the next valuation point following receipt of completed written instructions from your new ISA Manager. We will pay the proceeds to the new Manager within four working days. If you wish to retain the tax-free benefits of your ISA (as opposed to simply withdrawing money), your investment in My Prime policy can be transferred to another ISA Manager’s Investment ISA, Innovative Finance ISA, Lifetime ISA, or Cash ISA. However, it is not possible to facilitate a species transfer out. Where transfers are made before the end of the month, no further cash rebate value will be paid and you will lose any cash rebate value earned from the first of the month.

Taxation
All income and capital gains generated by the funds within your Scottish Friendly ISA are free of UK income tax and capital gains tax. Income allocations will be in the form of interest or dividend distributions. Interest distributions are received net of a 10% Income Tax credit. The funds in which you invest will receive UK dividend income after the deduction of UK corporation tax. All references to taxation are to UK taxation and are issued based on Scottish Asset Managers’ understanding of current tax law and practice. The tax treatment of your investment depends on your circumstances and the levels and basis of taxation may change in the future.

Money Laundering Regulations 2019
Under these regulations, there is a requirement to prove the identity of people who wish to take out a life, pension, or investment contract. You may therefore be asked to supply documents as evidence of your identity and/or your address and we may check your identity with a credit checking agency.

Solvency II Directive information
Under this directive, we are required to provide you with a Solvency and Financial Condition Report and you can access this via our website at www.scottishfriendly.co.uk/about-us/solvency- two

What happens if Scottish Friendly becomes insolvent?
If you buy a policy within a Scottish Friendly ISA and we cannot pay the full amount due, you may be entitled to compensation under the Financial Services Compensation Scheme. The maximum level of compensation for claims against firms declared in default is 100% of the claim with no upper limit. You can get further information from the Financial Services Compensation Scheme at: Financial Services Compensation Scheme, 10th Floor, Beaufort House, 15 St Botolph Street, London EC3A 7QU. Tel 0800 678 1100**. Website: www.fscs.org.uk

How to contact us
Here are our contact details if you have any queries or require any further information: Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow G2 4HJ. Tel: 0333 323 5433*. If you would like to receive this Product Guide in large print or braille please contact us on the details shown above.

Your client category
We are required to categorize our clients to determine the level of detail and information that you will receive. We will treat you as a ‘Retail Client’ concerning the services we will provide you, which means that you will benefit from the highest level of consumer protection.

How to complain
If you wish to complain about any aspect of the service you have received, please contact us. Details can be found in the ‘How to contact us’ section. If you are not satisfied with our response to your complaint, you can contact the Financial Ombudsman Service at Financial Ombudsman Service, Exchange Tower, Harbour Exchange Square, London, E14 9SR. Tel: 0800 023 4567* or 0300 123 9123. Website: www.financial-ombudsman.org.uk Making a complaint won’t affect your legal rights.

Language and law
The contractual terms and conditions and all communications concerning this plan will be supplied in English. In legal disputes, the law of Scotland will apply. This booklet is a brief guide to the key features of the product. Full details are contained in the policy document which is evidence of the legally binding contract between you and Scottish Friendly Assurance Society Limited.

• Calls cost no more than calls to numbers starting with 01 or 02 and if you are calling from a mobile phone, calls will count towards any inclusive minutes you have rather than being charged separately.
• Free from a UK landline.

Scottish Friendly ISA Terms & Conditions

These Terms, together with the Application Form, form a legal agreement between you and Scottish Friendly Asset Managers Limited (the Account Manager) which sets out how your Individual Savings Account will be operated. These Terms form the basis of the agreement with you upon which we intend to rely. If you have any questions about these, please contact us.

Definitions
The following words and expressions, when used in these Terms, have the meanings set out beside them:

• Accounts or ISA – a Scottish Friendly Individual Savings Account governed by these Terms and which is a Stocks and Shares ISA;
• Account Investments – shares, units, and any other investments held in an Account;
• Account Manager or Scottish Friendly – Scottish Friendly Asset Managers Limited;
• Application Form – a Scottish Friendly ISA application form or transfer application form;
• Associate – any holding company of the Account Manager or a subsidiary of any such holding company (as defined in the Companies Act 2006);
• Bank – Lloyds Banking Group plc, having its Head Office at the Mound, Edinburgh, EH1 1YZ, incorporated in Scotland with registered number 95000;
• Business Day – any day except a Saturday, Sunday, a Bank Holiday in England, and other days that the Account Manager is not open for business;
• Cash ISA – a Cash Individual Savings Account managed under the Regulations;
• Civil Partner – an individual’s partner in a civil partnership;
• FCA – the Financial Conduct Authority;
• Innovative Finance ISA – an Innovative Finance Individual Savings Account managed under the regulations;
• ISA – an Individual Savings Account managed under the Regulations;
• Lifetime ISA – a Lifetime Individual Savings Account Managed under the Regulations;
• Policyholder – the investor in a savings and investment policy as part of a Stocks and Shares ISA;
• Policy – a savings and investment policy issued by Scottish Friendly Assurance Society Limited;
• Regulations – the Individual Savings Account Regulations 1998, as from time to time amended and in force;
• Society – Scottish Friendly Assurance Society Limited, the parent company of the Account Manager;
• Spouse – an individual’s partner in marriage;
• Stocks and Shares ISA – a Stocks and Shares Individual Savings Account managed under the Regulations;
• Subscription – a payment, in sterling, to be applied to your Account from your resources;
• Terms – These Terms (as amended from time to time), together with the Application Form;
• We, us and our – the Account Manager, Scottish Friendly Asset Managers Limited;
• Year – a tax year beginning on 6 April in any calendar year and ending on 5 April in the following year;
• You and your – an individual who has opened an Account under these Terms.

These Terms will be governed by and construed under Scottish law. These Terms will only apply to your Stocks and Shares ISA provided they are not held by a relevant court or viewed by the Financial Conduct Authority to be unfair contract terms or reasonably considered by us to be unfair contract terms. If a term is held, viewed, or considered to be unfair it will, as far as possible, still apply but without any part of it which would cause it to be held, viewed, or considered unfair. Reference to any statutory provision or regulation includes any modification or reenactment. Any headings and subheadings are not a legally binding part of these Terms. Where appropriate, the words in the singular will include the plural, and the masculine will include the feminine.

Account Manager

• Scottish Friendly Asset Managers Limited agrees to act as Account Manager for your Account. We do not review your portfolio and we do not advise about your Account. We are regulated by FCA in the conduct of our investment business.
• Our address is Scottish Friendly Asset Managers Limited, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ.
• We may assign to any appropriate Associate all of its benefits and obligations under these Terms. You will be notified of any such assignment.
• We may appoint any person (whether or not an Associate) to advise on or perform any of its functions or responsibilities under these Terms and may provide information about you and your Account to any such person. We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under these Terms is competent to carry out those functions or responsibilities.
• We may amend these Terms by writing to you. Any amendments will comply with the Regulations, principles, and rules of the FCA in particular the principles of Treating Customers Fairly. You will receive at least 3 months’ notice of any change with an explanation of why the change is necessary and its potential impact on you. You will also be reminded of your right to transfer or end your policy before the change is implemented.

Application to open an Account

• An application to open an Account must be made in writing or through our website on an Application Form. Subject to the Regulations, your Account will be managed by the directions set out in your Application Form and any subsequent instructions provided by you.
• These Terms will come into force when the Policy document is issued and your first payment is successfully collected. On acceptance, each new Account will be designated by us as a Stocks and Shares ISA. You can only subscribe to one Stocks and Shares ISA in any one Year. We reserve the right to reject any application.
• All payments into your ISA must be from your funds, and we reserve the right to satisfy ourselves of this.
• You may invest one or more lump sums in your Account during the Year. In addition, or when provided in the Application Form you may make regular contributions by Direct Debit under a monthly payment plan. You must submit with your Application Form a Direct Debit Instruction to a bank or building society in your name.
• You will be sent an acknowledgment when you make a lump sum contribution or set up a monthly payment plan. This will be sent to you on the day following your application being accepted by us.
• Unless part of a transfer application, your application covers the current year and each subsequent year until we receive no subscription for one full Year.

Minimum Subscription

• Lump sums The minimum initial investment is as specified in the Application Form. Additional lump sum contributions are subject to the minimum specified in the Application Form. You may direct additional lump sums to be paid into a separate Policy as part of your Account Investments at the point of payment along with your investment instructions.
• Monthly payment plans The minimum monthly contribution is as specified in the Application Form.
• Monthly Direct Debits will normally be collected on the date you specify each month and invested by us on the next dealing day for contributions under-investment plans. If your application and Direct Debit Instructions are received 10 working days before the payment date you specified, your first monthly payment will be collected by Direct Debit on the date you specified, otherwise, it will be collected on the date you specified of the following month.
• You may direct additional regular contributions to be paid into a separate Policy as part of your Account Investments at the point of setting up an additional regular contribution with your investment instructions.
• There is no limit to the number of policies you may hold in your Account provided your overall contributions remain within the ISA annual allowance for the Year in which you are paying and provided your contributions meet the minimum requirements of each Policy.
• We reserve the right to reduce or waive the minimum subscription.

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 Scottish Friendly will notify you five working days in advance of your account being debited or as otherwise agreed. If you request Scottish Friendly 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 Scottish Friendly 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 are not entitled to, you must pay it back when Scottish Friendly 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 us.

Maximum Subscription
The maximum you can invest in a Stocks and Shares ISA in any Year is £20,000 minus anything you have paid into a Cash ISA, Innovative Finance ISA, or Lifetime ISA in that Year.

Cancellation
You do not have the right to cancel your Account once it has been set up or when you take out any future Policies that are held within it. You should note that whilst some of the Account Investments give the right to cancel, exercising this right will cause the market value of your investment to be returned to you, which could be more or less than you invested, and this will be treated as a full withdrawal from your Account.

Investment Objective
The investment objective of your Account will correspond to the qualifying investments specified in your online Application Form.

Account Investments

• Your Account includes your Account Investments and any cash balances, all income, and other rights, and the benefit of any tax relief in respect of such investments.
• Your cash contributions and any other cash held under your Account will be deposited, pending investment.
• We will automatically reinvest all income in respect of Account Investments net of any tax liability.

Title

• The Account Investments will be beneficially owned by you at all times, including any policies held within your Account. Note that the assets within any policies will be beneficially owned by the issuing life company.
• We will not lend Account Investments or the title documents to a third party and will not borrow against the security of Account Investments or such documents.

Taxation
We will make all necessary claims for tax relief relating to your Account. The fund in which you invest will receive UK dividend income (if any) net of corporation tax.

Statements
We will send you a statement twice a year showing the value of your ISA and details of all transactions in your Account since the previous statement. The statements will not include a measure of performance. We may produce a consolidated statement if you have more than one Account.

Withdrawals

• You may withdraw some or all of your money by writing to us or by making a withdrawal online at www.scottishfriendly.co.uk/my-plans
• Withdrawals will be met by selling Account Investments at the next valuation point following receipt of your instructions. Unless you give us instructions with your withdrawal request, we will have discretion to choose which Account Investments to sell.
• The amount to be withdrawn will be paid to you within four business days following receipt of cleared funds resulting from the sales of Account Investments.
• We may deduct from the withdrawal amount any sums due to it.
• Where you make a withdrawal in any Year, your annual allowance will not be affected. This means if you reinvest a withdrawal in the same Year, it will count as a new Subscription in the Year.
• Where you make a full withdrawal before the date by which the 1% monthly cash rebate value is applied and you are not making regular payments of at least £100 a month, no further cash rebate values will be paid and you will lose any cash rebate value earned from the first of the month.
• Where you make a partial withdrawal before the date that the 1% monthly cash rebate value is applied and it reduces your policy value beneath £2,000, unless you are paying a regular monthly premium of £100 or more, then no further cash rebate values will be paid until your policy value returns to at least £2,000 and you will lose any cash rebate value earned from the first of the month.

Charges

• Management fees for the Scottish Friendly ISA are deducted from and related to your investments according to the terms set out in the Product Guide document.
• We reserve the right to discount or waive any charges.
• We may increase charges but only after giving you three months’ written notice including an explanation of why the charges have been increased and the potential impact on your investment. You will also be reminded of your right to transfer or end your policy before the charge is applied.
• We shall be entitled to deduct and retain all charges payable under these Terms and may apply any cash or sell any Account Investments to pay such charges or to pay any tax liabilities under your Account.

Termination

• You may terminate your Account online at www.scottishfriendly.co.uk/my-plans which will be effective on receipt but will not affect transactions already initiated.
• We may terminate your Account if you breach a material obligation under these Terms and Conditions, or you fail to take reasonable action within a reasonable time to remedy that breach, by giving you one month’s notice in writing. If it becomes impractical or impossible to comply with the Regulations, we may terminate your Account immediately, in which case you will be notified in writing.
• When an Account is terminated, we will sell the Account Investments and pay you the proceeds together with any cash balance held in the Account (or on your written request will transfer the proceeds to another ISA manager). Interest will not be paid on any cash balance if you have given notice of termination since the last monthly interest payment date. We may deduct any charges or other amounts due, any tax liabilities under the Account, and any additional expenses incurred in terminating the Account.
• Your Account ceases to be exempt from tax on your death and will terminate. On notification of death, we will sell the Account Investments and hold the proceeds on deposit in sterling (earning interest). We may make deductions as provided in paragraph  ) above. Upon receipt of the grant of probate or appropriate legal confirmation and a copy of the death certificate, we will transfer the cash balance of your Account to your representatives. These Terms are binding on your representatives. We may at our discretion accept or reject instructions received from your representatives.
• On death, the value of your ISA may transfer as an additional ISA subscription to your Spouse or Civil Partner. This additional ISA subscription can be used within 3 years of the date of your death or, if later, 180 days after the end of completion of the administration of your estate. It can be invested with Scottish Friendly or directly with another ISA provider. Should your Spouse or Civil Partner wish to subscribe to a Scottish Friendly ISA using this one-off subscription it must be made in cash or cash transfer and they should contact Scottish Friendly at the address provided.

Void Accounts
Your Account will be managed by the Regulations, which take precedence over these Terms. We will notify you if, as a result of any failure to comply with the Regulations, your Account is or becomes void. When an Account is void, we will sell the Account Investments and pay you the proceeds together with any cash balance held in the Account. We may deduct any charges or other amounts due to us, any tax liabilities under the Account, and any additional expenses incurred in terminating the Account.

Transfer to New Account Manager

• You may instruct us to transfer to another approved account manager, within such time as shall be agreed, either (i) the whole of your Account, or (ii) part of your Account (‘a partial transfer’), subject to and by the Regulations. Only cash may be transferred, and we will convert Account Investments into cash after receiving your instructions. We may deduct from the transfer any sums due to it.
• In the case of a partial transfer, the Account Investments remaining after the transfer must, unless otherwise permitted by the Manager, have a minimum value of £300 (failing which we may treat your instruction as an instruction to transfer the whole Account).
• You cannot make an in-specie transfer out of a Scottish Friendly ISA to another ISA manager.
• Where you make a full transfer before the date that the 1% monthly cash rebate value is applied no further cash rebate values will be paid and you will lose any cash rebate value earned from the first of the month.
• Where you make a partial transfer before the date that the 1% monthly cash rebate value is applied and it reduces your policy value beneath £2,000, then no further cash rebate values will be paid until your policy value returns to at least £2,000 and you will lose any cash rebate value earned from the first of the month.

Information for the Account Manager
You must provide us with all information which we reasonably request for the Account and, in particular, you must immediately inform us in writing of any change of tax status or other material change in circumstance.

Notices and Instructions

• Notices and instructions to us should be in writing and signed by you or presented to us through our secure website www.scottishfriendly.co.uk/my-plans. Notices and instructions sent by facsimile will be accepted.
• Notices and other documents will be emailed to notify you that your notice is available to view once you log in to our secure website www.scottishfriendly.co.uk/my-plans. Such notices will be considered to have been received by you immediately after your email notification has been sent.
• We are entitled to treat as valid instructions given by you or on your behalf even if that is not the case because of the wrongdoing of another person unless that other person is an employee or agent of the Account Manager.

Liability

• You reimburse us against all liabilities incurred by us in connection with your Account, other than liabilities caused as a direct result of our negligence, knowing default, or breach of the rules of FCA or these Terms.
• We are liable for our negligence, knowing default, and for any breach of the rules of FCA or of these Terms. We are not liable for any loss caused by a fall in the value of Account Investments.
• We accept no responsibility for your Account until cleared funds are received, nor for any loss or delay caused in the payment of funds to us.
• For this paragraph 19, references to you include your representatives and references to the Account Manager include its nominees.

Complaints
We have established procedures by FCA’s requirements for the consideration of complaints. Details of those procedures and your rights to compensation, if we are unable to meet our liabilities to you, are available from us upon request. In addition, if your complaint is not dealt with to your satisfaction, you can write to the Financial Ombudsman Service; see page 26 for details. This will not affect your right to take legal action.

Compensation Rights
If Scottish Friendly is unable to meet its liabilities, compensation may be payable by the Financial Services Compensation Scheme. The maximum level of compensation for claims against firms declared in default is 100% of the claim with no upper limit. Further information on the Scheme can be obtained from the Financial Services Compensation Scheme. Tel: 0800 678 1100 www.fscs.org.uk

Additional Terms & Conditions for the My Prime Policy held within the Scottish-Friendly ISA 

The following additional Policy conditions apply to any My Prime Policy held within a Scottish Friendly ISA.

Additional Definitions
The following words and expressions, when used in these additional Terms, have the meanings set out beside them:

• Cash Rebate Value – the amount that will be rebated back to the customer once a month on the Rebate Date, calculated as the sum of 1/365th of the daily balance units multiplied by the relevant unit price for each day within each month.
• Final Bonus – an additional value that may be paid into the value of a Policy at the discretion of Scottish Friendly Assurance Society Limited.
• Policy Schedule – Documentation issued by the Society detailing the individual characteristics of the Policy.
• Rebate Date – the date each month that the Cash Rebate Value will be applied to the Policy.
• Regular Bonus – an additional value that may be paid by increasing the Unit Price of Units held in the Policy at the discretion of Scottish Friendly Assurance Society Limited.
• Rules – the rules of the Society.
• Units – the expression of value purchased and sold by Policyholders when they respectively invest premiums or redeem value from their Account.
• Unit Price – the value given to an individual Unit and the price at which it may be bought or sold.

L.1 The Policy

• The Policy is a recurrent single premium unitized whole-of-life assurance contract issued by Scottish Friendly Assurance Society Limited (‘The Society’) on your life alone and is subject to these Policy Conditions.
• Whilst the Policy remains in force and subject to such conditions as the Society may from time to time determine, additional premiums of not less than such minimum amount as the Society shall from time to time determine may be paid by the Policyholder.
• The investment content of each additional premium will be specified by the Society and units will be allocated as in Condition L.5.
• This Policy may only be held as part of a qualifying investment for an ISA and the Policy shall cease if it ceases to be held within an ISA.
• The Policy, the rights conferred by the Policy, or any share or interest in the Policy or rights respectively, other than the cash proceeds when the Policy is cashed in or through a withdrawal cannot be transferred to you.
• The Policy, the rights conferred by the Policy, and any share or interest in the Policy or rights respectively, are not capable of assignment or assignation.
• The Policy may be canceled by the Policyholder within 30 days of the issue of the Policy Schedule. The full value of any investment in that period shall be refunded to the Policyholder through a withdrawal from their Scottish Friendly ISA.

L.2 ISA funds

• The Society will maintain a range of funds to determine the benefits payable under this and certain other Policies.
• Each fund will be divided into Units. Within each fund, Units of any particular type will be of equal value, although the value of Units of each fund may vary.
• The benefit under this Policy will be specified in terms of Units, which will be allocated to the Policy as described in the Policy Schedule. Such allocation will be made purely to calculate the benefit and does not affect the ownership of the assets of the fund, which remain the absolute property of the Society.
• The investment of the funds will be at the discretion of the Society, which may reinsure the fund in whole or in part and may at its discretion introduce alternative funds from time to time to which benefits may be linked.
• No Units will be created in the funds unless assets equivalent to such Units are added at the same time to the fund. No assets will be withdrawn from the funds except to meet the charges described in Condition 13 or for reinvestment unless at the same time Units equivalent to the assets withdrawn are canceled.
• The income from the assets of each fund will be credited to that fund.
• For the Policy, any investment within the Unitised With-Profits fund shall be eligible for Regular Bonus and Final Bonus additions as declared by the Society for this particular fund.
• The Policy is eligible only as regards Units of the Unitised With-Profits fund allocated to it, to participate in the profits of the Ordinary Branch of the Society by the Rules from time to time of the Society.
• The assets of the Unitised With-Profits fund shall not be separately identifiable from the remainder of the assets of the long-term business of the Society.
• The assets of any other fund shall be separately identifiable from the remainder of the assets of the long-term business of the Society.

Charges against the funds
The Society will be entitled to deduct from the funds at each valuation such amounts as shall be determined by the Society in respect of:

• expenses, taxes, duties, and other charges incurred in acquiring, managing, valuing, and disposing of assets;
• any tax due on the income from the assets of the fund and on capital gains in respect of the assets of the fund;
• interest on any money borrowed for the account of the fund;
• any expenses, taxes, duties, and other charges incurred in connection with the fund and not previously taken into account;
• an appropriate part of any tax, levy, or other charge on the Society.

Unit Prices of funds

• The Unit Price of the Unitised With-Profits fund is increased by way of Regular Bonus addition at such daily rate of interest (if any) as the Society shall determine in its absolute discretion and then rounded by not more than one-tenth of a penny.

• The Unit Price of the Unitised With-Profits fund shall be the price at which the Society allocates Units to the ISA Policy and at which Units shall be canceled by the Society.

• All other assets within funds (other than the Unitised With-Profits fund) will be valued at least once in each calendar month. Scottish Friendly will derive the maximum and minimum value of each fund from the corresponding values of the assets backing each fund reduced by all loans charged against the fund and with appropriate allowances for uninvested cash, accrued income, and accrued or prospective charges. The maximum value of an asset of a fund will not exceed the market price at which it might
  be purchased and the minimum value will not be less than the market price at which it might be sold. The values of Stock Exchange securities will be based on quoted prices. The values of the real or heritable property will be based on valuations prepared and certified by an independent valuer appointed by Scottish Friendly and adjusted to allow for variations in property prices since the last such valuation. The values of all other assets will be determined by Scottish Friendly.

• The Unit Price of a fund will be calculated by Scottish Friendly and will be no less than the minimum value, and no more than the maximum value, of the part of the fund attributable to that type of unit after the deduction of management charges divided by the number of Units of that type in the fund, the result is rounded down by not more than one-tenth of a penny. The actual price may vary above this level.

• All rounding reductions to unit prices and any other reductions will accrue to the Society.

• Units of the funds may be consolidated or subdivided at any time at the discretion of the Society.

• Where Units of the funds are canceled, the value of the Units so canceled may be subject to increase by way of further bonus additions (i.e. Final Bonus in the case of the Unitised With-Profits fund) at the discretion of the Society of such amount as the Society shall determine.

• A Cash Rebate Value is applied to the policy by purchasing new units in proportion to the funds held on the Rebate Date each month. The Cash Rebate Value will be rounded to 2 decimal places and is distributed across the funds, in proportion to the fund value at the end of the month. If the account has zero value at the end of the month, the Cash Rebate Value calculated will be zero.

Allocation and cancellation of Units

• The number of Units initially attributed to this Policy has been calculated by reference to the Unit Price calculated on the day the initial investment was deemed to have been received by the Society. The Units attributed to this Policy on payment of an additional premium shall be increased by the number of Units calculated by dividing the percentage of the investment allocated to Units (as determined by the Society) by the Unit Price calculated on the day the additional premium is deemed to have been received by the Society.
• In the event of the subdivision of all Units in a fund, there shall be allocated to the Policy several Units which shall represent as a proportion of the total Units in the fund following such subdivision the number of Units in the fund attributed to the Policy before such subdivision.
• Units shall be canceled at the Unit Price calculated at the next valuation point following receipt of the appropriate form or verified electronic instruction at the Society’s Head Office.

Market Value Reduction (MVR) (Unitised With-Profits fund only)

• If the Policyholder instructs the Society to cancel some or all of the Units of the Unitised With-Profits fund allocated to the Policy, the Society may make a deduction, known as the Market Value Reduction (MVR), from the value of the Units canceled. The amount of any deduction to be made shall be determined by the Society concerning the Society’s overall bonus philosophy and in particular, taking account of the reasonable expectations of all its Policyholders.
• Where Units are canceled to meet a death claim under Policy Conditions L. 7 or where units are canceled on the 10th anniversary of continual investment in the With-Profits fund through a My Prime Policy or such My Prime Policies deemed connected by Scottish Friendly or Policies deemed connected by Scottish Friendly or the 5th anniversary of that date thereafter, then the Policyholder shall be entitled to a value at least equal to the value of the Units canceled.

Death benefit
The death benefit under the policy shall be 101% of the value of the Units attributed to the Policy at the date of written notification of the death subject to any special factor specified in the Policy Schedule or any authorized endorsement thereto. Units allocated to the Policy shall be canceled at the next Unit Price calculated following receipt of written notification of death by the Society.

General

• By making the first Subscription and issue of the Policy, the Policyholder, as detailed in the Policy Schedule, becomes a member of the Society under Rule 2 of the Society.
• If at any time during the life of the Policy, as a result of legislation or otherwise, it becomes impracticable or impossible to give full effect to the Policy Conditions or if the basis of taxation applicable to the Society or the Policy is altered, the Society will make such alterations in the Policy Conditions as the Society deems appropriate in the circumstances. The Society will aim to give at least 3 months’ notice to any change but reserves the right to give less notice if such changes are a result of immediate regulatory or legislative changes.
• If the Society is required by statute to pay any sum to any Government agency on behalf of the Policyholder, the Society will cancel Units equal in value to such amounts as may be required.

Scottish Friendly Asset Managers Limited, Galbraith House, 16 Blythswood Square, Glasgow G2 4HJ. www.scottishfriendly.co.uk Authorised and regulated by the Financial Conduct Authority. Details can be found on the FS register – Registration No. 188832. Member of The Investment Association. MYPRIPG0424

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