What does the Friendly Stocks and Shares ISA offer?

An Individual Savings Account (ISA) is a way of sheltering your money from the taxman, as you can keep all the proceeds from your investment tax-free - there is no Income or Capital Gains Tax to pay under current legislation. However, the fund in which you invest receives UK dividend income net of Corporation Tax.

The Friendly Stocks and Shares ISA combines the potential of the stockmarket with the reassurance of more secure investments like cash and fixed interest funds. And our heritage as tax-free savings experts means our investment managers are perfectly placed to provide this ideal balance for your investment. And because it's an ISA you can enjoy total savings flexibility on when and how much you save.

Remember, though, the value of shares can go down as well as up and your original investment is not guaranteed.

How much can I invest?

You're in total control of your savings. Invest from £15 per month and/or a lump sum of £500 upwards. You can pay more money in (subject to the limits) or take it out, and stop and restart your payments at any time as long as you don't go beyond the maximum annual tax-free allowance of £7,200 of which up to £3,600 can be allocated to a Cash Account with another ISA Manager. It's all up to you!

When you start investing with the Friendly Stocks and Shares ISA, the annual management charge is 1%, deducted daily from unit prices. The initial charge will be just 4%.

What funds can I invest my money in?

You can split your investment between 2 different funds or invest solely in just one of them. It's up to you what percentage of your investment goes into each fund.

You can invest in:

The Managed Growth Fund
A proportion of this fund is invested mainly in UK equities and additionally in global equities to provide growth potential. An element of security is added by investing a smaller proportion into fixed interest securities such as government bonds. Your money is actively managed by our investment team who use their expertise to decide which are the best investments. The Managed Growth Fund is a 4 star rated fund¹.

The UK Growth Fund
The UK Growth Fund gives you good potential for growth from a carefully selected portfolio of leading blue-chip companies. It invests solely in UK equities, although a proportion may also be held in cash. This is a medium-risk fund which aims to outperform the FTSE All-Share Index.

The UK Growth Fund has had a consistently impressive record since launch almost 6 years ago, achieving a 5 Star Rating by the respected Morningstar's fund performance measurement system¹. Please remember that past performance is not a guide to future performance.

Please remember that the value of the Managed Growth Fund and UK Growth Fund can go down as well as up and your original investment is not guaranteed.

If these funds are not suitable for your needs you may want to consider our Friendly Bonus ISA, which allows you grow your tax-free savings allowance by investing in our With Profits Fund.

Our Investment management team

Scottish Friendly's OEIC funds are managed by SVM Asset Management which is based in Edinburgh and headed by Colin McLean, one of the UK's best-known fund managers.

SVM was established in 1990 as a specialist manager of European and UK equity portfolios. Since then they have created an unparalleled performance reputation - managing investments for a number of FTSE 100 company pension schemes and other leading life and investment organisations.

Each of SVM's team has on average 15 years' experience. Colin McLean's own investment experience stretches back over 30 years, and he is widely regarded as one of the UK's top stock pickers. He is also a regular market commentator in the national press. However, past performance is not a guide to future performance.

Colin McLean manages the Scottish Friendly Managed Growth Fund

Hector Kilpatrick manages the Scottish Friendly UK Growth Fund

Apply now

Applying is easy. Simply click on the Apply Now link to download an application form and read the Simplified Prospectus. Then complete it and post it to:

Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR

Or, you can request an information pack to be sent to you in the post. This pack includes further Friendly Stocks and Shares ISA information and an application form.

If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.

If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the Simplified Prospectus.

¹Source: Morningstar. Bid to bid. February 2008.