ISAs

ISAs are easy ways to save regular amounts or invest lump sums tax-efficiently - and you don't even need to declare them on your tax return. The Government introduced them to encourage more people to save.

ISA stands for Individual Savings Account, a tax-efficient wrapper for investments like Unit Trusts, cash and other assets which are then free from capital gains tax and further income tax. The less the taxman takes from your investments the more money you get back.

Our ISA invests in the stock market via our Unit Trusts enabling you to tap into the growth potential of stocks and shares. Because of this your investment can go down in value as well as up.

You can pay in regular monthly amounts from £50 and/or lump sums from £2,000, up to the limits set by the Government (see below).

The tax advantages of such plans could change in the future and depend on individual circumstances.

• What are the annual investment limits for ISAs?
  • Your subscription limit for the tax year 2011/12 is £10,680 regardless of your age.
  • You can invest up to £10,680 in a Stocks & Shares ISA or
  • You can invest up to £5,340 in a Cash ISA and the remainder in a Stocks & Shares ISA up to the maxiumum of £10,680.

  Minimum contributions to our ISAs

  The minimum amount you can invest in our ISA remains at £50 a month or £2,000 if you are investing a lump sum.

• How do you invest my money?

  You can choose from our range of four Unit Trust Funds. What you choose may depend on your attitude to investment risk and social conscience - we offer the following approaches:

  Teachers Cautious Unit Trust Fund

  Investment Focus

  Being cautious this fund will tend to use fewer company shares and a higher proportion of Government and corporate bonds (that pay a fixed regular income). Ups and downs in values should be less, giving the fund more stability - but lower growth is likely to be the trade off.

  Risk and Reward Scale

  All our savings and investments are risk rated to help you choose something you feel comfortable with. Here’s how this fund rates:

  Your attitude to risk	Product risk profile	Volatility
  2	Low	Low/medium

  You are only willing to take low levels of risk. You are prepared to accept the potential for only a small amount of capital growth for the greater security of your money. You understand that you could still lose money on a "Low Risk" investment.

  You understand that Teachers Assurance regard a “Low Risk” investment as one which typically invests:

  • Up to 20% in equity markets (company shares) and the remainder in Gilts, Corporate Bonds and Cash or;
  • Up to 60% in equity markets (company shares) and property with the remainder in Gilts, Corporate Bonds and Cash, but also carries a money-back guarantee on a set date (conditions apply).

  Teachers Balanced Unit Trust Fund

  Investment Focus

  Being balanced this fund will tend to use a combination of income and growth investments. So in risk and reward terms it is likely be half way between cautious and adventurous.

  Risk and Reward Scale

  All our savings and investments are risk rated to help you choose something you feel comfortable with. Here’s how this fund rates:

  Your attitude to risk	Product risk profile	Volatility
  3	Medium	Medium

  You are willing to take a moderate amount of risk. You accept that there will be fluctuations in the value of your investment and that you need to remain flexible about when to cash in your plan, unless the plan carries a money-back guarantee on a set date (conditions apply). You understand that you could lose money on a "Medium Risk" investment.

  You understand that Teachers Assurance regard a “Medium Risk” investment as one which typically invests:

  • Between 60 - 75% in equity markets (company shares) and property with the remainder in a combination of Gilts, Corporate Bonds and Cash.

  Teachers Adventurous Unit Trust Fund

  Investment Focus

  Being adventurous this fund will tend to use more company shares and fewer Government and corporate bonds than the other Unit Trusts. It is also more likely to invest abroad where changes in foreign exchange rates against the Pound can affect profits. As a result there could be more ups and downs; but with higher growth potential in the long run.

  Risk and Reward Scale

  All our savings and investments are risk rated to help you choose something you feel comfortable with. Here’s how this fund rates:

  Your attitude to risk	Product risk profile	Volatility
  4	Medium/High	Medium/High

  You are willing to take a medium to high level of risk. You accept that fluctuations in the value of your investment will be commonplace and that you need to remain flexible about when to cash in your plan. You understand that, if stock markets fall, you have a greater chance of losing money than with a "Low Risk" or "Medium Risk" investment.

  You understand that Teachers Assurance regard a "Medium / High Risk" investment as one which typically invests:

  • Between 90 - 100% in equity markets (company shares) and property with the remainder in a combination of Gilts, Corporate Bonds and Cash.
  • You understand that our "Medium / High Risk" funds may carry "Specialist Investment" Risk
  • You understand that our "Medium / High Risk" funds may carry significant "Currency" Risk

  Sovereign Ethical Unit Trust Fund

  Being ethical, means we invest this fund in ways that support the future of our planet, our people and our communities.

  At Teachers Assurance for our Ethical Fund investment, we seek out the most ethical stocks and shares in the market and positively discriminate against what we consider to be unethical investments.

  Important changes to the Ethical Fund

  To coincide with its’ 21st birthday in 2010, we have made a significant change to the investment policy of our Ethical Fund.

  This change was introduced to improve the breadth and depth of the stocks held within the Fund, whilst not changing its’ overall nature or purpose.

  With effect from 1st July 2010, the Fund now aims to track the performance of the UK FTSE4Good Index and the FTSE UK Environmental Opportunities Index.

  To enable us to do this effectively, the Fund has been split into two segments, one segment (approximately 75%) aims to track the UK FTSE4Good Index and the other segment (approximately 25%) aims to track the FTSE UK Environmental Opportunities Index. Your money will effectively be invested in these two segments in these proportions.

  FTSE ® is a trademark jointly owned by the London Stock Exchange Plc and the Financial Times Limited and is used under license by FTSE. FTSE does not sponsor, endorse or promote this product

  Investment Focus

  Being adventurous it will tend to focus on growth investments and use fewer income generating investments such as Government and corporate bonds. Because of its ethical criteria there will not be such a broad choice of investments available to this fund, so there is likely to be a smaller spread of both stocks and shares and greater exposure to smaller or specialist companies. As a result, there may be more volatility than with Teachers Adventurous Unit Trust.

  Risk and Reward Scale

  All our savings and investments are risk rated to help you choose something you feel comfortable with. Here’s how this fund rates:

  Your attitude to risk	Product risk profile	Volatility
  4	Medium/High	Medium/High

  You are willing to take a medium to high level of risk. You accept that fluctuations in the value of your investment will be commonplace and that you need to remain flexible about when to cash in your plan. You understand that, if stock markets fall, you have a greater chance of losing money than with a “Low Risk” or “Medium Risk” investment.

  You understand that Teachers Assurance regard a “Medium / High Risk” investment as one which typically invests:

  • Between 90 - 100% in equity markets (company shares) and property with the remainder in a combination of Gilts, Corporate Bonds and Cash.
  • You understand that our "Medium / High Risk" funds may carry "Specialist Investment" Risk
  • You understand that our "Medium / High Risk" funds may carry significant "Currency" Risk

  To find out more about Risk and Reward, go to our Risk and Reward page or download our Risk and Reward leaflet (Printed copies are also available on request).

  Click here to see our target asset mix for each of the funds.

  Why did you change the investment policy of the Fund?

  The reasons we made this change were to:-

  • reflect the changing attitude to ethical investment
  • increase the range of companies we could invest in
  • give greater weight to environmental considerations

  More and more people are considering socially responsible and environmental matters when they make their investments. We wanted to be sure that we were continuing to meet the needs of our existing and new investors by refreshing the Funds’ investment policy to give the potential for more stable returns without altering its risk profile.

  Where will the Fund now be invested?

  Wherever possible our Ethical Fund will exclude

  • Investment in companies with operations in countries with oppressive regimes.
  • Companies that are involved in military production and sale which could result in the taking of human life or warfare.
  • Any company involved in a tobacco related business.

  Wherever possible our Ethical Fund will include

  • Companies that have significant involvement in environmental markets, including renewable and alternative energy, energy efficiency, water infrastructure and technologies, pollution control, waste management and technologies or environmental support services.
  • Only those companies that operate best practice in corporate governance.

  What are the two indices you will be tracking?

  Our Ethical Fund will aim to track the performance of the following indices to track these funds:-

  • 75% of the Fund will track the UK FTSE4Good Index and
  • 25% of the Fund will track the FTSE UK Environmental Opportunities Index

  These indices are both run by the FTSE Group. The FTSE Group helps investors worldwide make informed investment decisions and benchmark the performance of their investments.

  FTSE ® is a trademark jointly owned by the London Stock Exchange Plc and the Financial Times Limited and is used under license by FTSE. FTSE does not sponsor, endorse or promote this product
• What does it cost?

  With our ISAs we build the cost into your investment in our Unit Trusts. There is a one off charge (typically 3%) which we deduct from each payment you make, and a regular charge for managing the investments and your plan (typically 1.25-1.5% a year). We take this regular charge directly from the Unit Trust you invest in.

• What will I get back?

  What you get back depends on how much you pay in, how long you save and our fund performance.

  There are no guarantees with these funds and you could get back less than you pay in if performance is poor.

• Why choose Teachers Assurance?

  Started in 1877 by teachers - for teachers.

  15,000 teachers a year in 3,000 schools in England and Wales turn to us for financial direction. (And that's excluding other teachers who phone in or email us.)

  No one understands the financial needs of teachers better than us.

  As a mutual friendly society our business is built on helping teachers to:

  • Protect themselves and their families
  • Save for the future
  • Invest efficiently
  • Get the right advice
  • Make confident financial decisions

  To find out more about how we treat our customers go to the following page:

  • About us - See who we are and what you can expect from us.

  Comparison with other savings and investments

  To see how this compares to our other products, please go to our Risk and Reward page.

• What if I need your help or advice?

  If you need our help or advice, please give us a call:

  0800 056 0563
  8.30am to 8pm Weekdays
  9am to 1pm Saturdays

  To help us continually improve customer service, calls may be recorded or monitored.

  Ask us for information

  Our Helpline can answer any questions you have or post you an application pack for any of the products on offer.

  Ask us for advice

  Our expert Financial Consultants can help you choose the most suitable products for your needs, you can ask for personal financial advice over the phone or face to face .

  Ask us for a school visit - Money Talks!

  Book a school visit for one of our Financial Consultants to hold a free financial planning session for teachers in your school.

  Our Consultants are only able to advise on our own products and services and those of selected third parties.

• How do I apply?

  If you like the sound of our ISAs you can:

  • Download an application form
  • Download the simplified prospectus (full version available on request)
  • Download the ISA Terms and Conditions
  • Download the risk rating leaflet

  None of the information on our website should be considered advice to save, invest or purchase. If you have any doubt about whether a product is suitable for you, please ask us for advice. We are only able to advise on our own products and those of selected third party providers.

  If you want to make regular investments and would like to do it online go to Savings.

©Teachers Assurance 2008

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