Insight Investment - Sample 'reasons why' statements

Insight Investment Monthly Income Fund

Suggested reasons why are provided to help intermediaries in compiling suitability letters where an Insight product has been recommended. It should be noted that it remains the responsibility of advisers to demonstrate the link between an individual investor’s needs, objectives, attitude to risk etc and the recommendation made.

Not every suggestion made below will necessarily be relevant in demonstrating suitability for an individual investor.

Investment content

Insight Investment Monthly Income Fund is designed for investors like you, who need a regular income combined with the prospect of long-term capital growth.

The Fund aims to deliver dependable, smoothed income each month so you know what to expect.

The Fund aims to deliver the income and growth elements by combining UK equities with fixed income investments such as UK gilts. This combination is also designed to reduce risk to your capital as UK gilts are considered a very low risk investment compared to equities which acts to balance the relatively higher risk of the equity element.

The Fund manager, Tim Rees, has an excellent personal track record with over twenty years’ experience in the investment industry.

The Fund is ‘AA’ rated by independent analysts, OBSR. The OBSR 'AA' rating is an indication of highly superior quality based on process and track record. The fund is also 'AA' rated by Standard & Poor's (Ratings as at 31 March 2008).

The initial charge of 4.0% is competitive within the marketplace. I am rebating to you [X%] of my commission which lowers the charge to [Y%].

There is a single buying and selling price, in other words no bid/offer spread . Although the ACD will normally make a dilution adjustment whenever there are net purchases or net sales of shares.

The annual management charge is only 1.5%.

ISAs

The Fund is available for ISA investment and for ISA transfer investment. This means that any income and capital growth from your investment is free of UK income and capital gains tax.

You may currently invest up to £7,200 in the Fund in any one tax year through the Insight Investment ISA. There is no limit to the amount you may invest via an ISA transfer but you should be aware that your current manager may charge you for transferring your plan.

Minimum investment

The minimum investment into the Monthly Income Fund is £3,000 initially and £1,500 thereafter. Regular savings into the Fund start at just £250 per month.

Insight credentials

Few investment companies have the benefit of such well-known parentage as the HBOS Group. Insight Investment was launched in September 2002 and is one of the UK’s largest investment managers with £108.7bn in assets under management as at 31 March 2008. Insight combines the vitality and drive of a young business, with the strength and stability of one of the UK’s leading financial institutions.