M&S High Income Fund Simplified

Key product information
for the Marks & Spencer
High Income Fund
Simplified Prospectus

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" The Financial Services Authority is the independent financial services regulator. It requires us,
Marks and Spencer Unit Trust Management Limited, to give you this important information to help
you decide whether our High Income Fund 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.
• It is important that you understand this stock market investment, in particular the risks involved. If
you have any questions or do not understand anything you have read, please contact us.
• Please also read the documents entitled ‘Unit Trust Funds - Important Information for Investors’
and ‘Stocks and Shares ISA Information’.
INTRODUCTION
The Fund is called the Marks & Spencer High Income Fund (“The Fund”).
It is an authorised unit trust scheme.
Authorisation:
The Fund is authorised in the United Kingdom.
Date of Fund Authorisation:
13 February 1997.
Manager:
Marks and Spencer Unit Trust Management Limited
Kings Meadow
Chester
CH99 9UT
Trustee:
State Street Trustees Limited
525 Ferry Road
Edinburgh
EH5 2AW
Authorised and regulated by the Financial Services Authority
Fund Auditors:
KPMG Audit plc
Saltire Court
29 Castle Terrace
Edinburgh
EH1 2EG
Group details:
Marks and Spencer Unit Trust Management Limited is a wholly owned subsidiary of HSBC Bank plc.

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INVESTMENT INFORMATION
What is the Objective of the Fund?
• The Fund objective is to provide a high level of income.
What is the investment policy of the Fund?
• The Fund invests in both corporate and government bonds of any duration.
• Low risk bonds (cal ed “investment grade”) and high risk bonds rated by Standard and Poor’s below - BBB
(cal ed “sub investment grade”) wil be held.
• The Fund may use certain types of investment (e.g. futures and options) to reduce risk and costs, or to
generate extra capital or income at no or low levels of risk. This is cal ed Efficient Portfolio Management.
• Ful details of the objective and investment policy of the Fund are contained in the ful prospectus. Visit
www.marksandspencer.com to view the ful prospectus, or telephone us to obtain a copy.
Who manages my money?
• The investment adviser to the Fund is HSBC Global Asset Management (UK) Limited. They have delegated
day to day management of the Fund to specialist fund adviser Insight Investment Management (Global)
Limited.
• This is an actively managed fund, where the fund adviser selects the investments the Fund holds to achieve
its objective. This may result in frequent changes to the bonds held in the Fund.
RISKS
Is my investment guaranteed?
• No. As with any investment where the underlying investments are bonds, the price of units and the income
from them can go down as wel as up, and you may get back less than the amount original y invested.
Investment in the Fund should be considered a medium to long term investment (5 years or more).
What are the specific risks of the High Income Fund?
• The fund invests in bonds. Bond prices go up or down, meaning you may get back less than you invested.
• Changes in interest rates may affect the value of the bonds held in the Fund. If interest rates go up, the value
of bonds may fal . If interest rates go down, the value of bonds may rise.
• As part of the Fund is invested overseas the value of your investment may be affected by changes in
currency exchange rates.
• Part of the Fund may invest in emerging markets. This may involve greater risk in buying and sel ing
investments, settlement arrangements and the safekeeping of the investments held.
• The annual management charge is deducted from capital. This may reduce the potential for growth and there
may be times when the charge is greater than the growth of the Fund.
• When the Fund buys shares or bonds there is a risk that the firm we have bought them from wil not deliver
the investments. Likewise when sel ing shares or bonds there is a risk that the firm we have sold them to wil
not deliver the cash.
What other risks should I be aware of?
• Past performance is no guarantee of future performance.
• The performance of the Fund wil depend on the investments selected by the fund adviser.
• If you apply to invest in the Fund fol owing investment advice, you wil have the right to cancel your
application. If you exercise the right to cancel, the amount returned may be less than the amount you
invested if there has been a downward movement in the stock market from the date of investment to the
date your instruction to cancel was received.
• Inflation wil reduce what you could buy in the future.
• The regulatory and taxation regime under which the Fund operates may change in the future.

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TYPICAL INVESTOR
What type of investor is the Fund aimed at?
• The Fund is aimed at investors who are looking for their capital to generate income by participating in a
diversified portfolio investing in stock markets around the world. They wil be wil ing to invest for a period
of at least 5 years and are aware that returns are not guaranteed.
TAXATION
How is the Fund taxed?
• Capital gains made within the Fund are not liable to tax. Income received by the Fund, without tax deducted,
is liable to Corporation Tax at a rate of 20% after al owing for Fund expenses.
• When you withdraw money from the Fund we have to buy your investments back from you. Stamp Duty
Reserve Tax of up to 0.5% of the value of the investments we buy back is payable. Currently we do not pass
this tax on to the investor when they buy or sel units; we pay it in ful .
What tax will I pay?
Direct investment in the Fund (outside an ISA):
• Interest wil be distributed after the deduction of 20% tax. Non taxpayers can reclaim the tax deducted.
• Basic rate taxpayers wil have no further tax liability. Higher rate taxpayers wil have to pay an extra 20% tax,
giving a total liability of 40% tax.
• If you make a gain when sel ing your investment you could be liable to Capital Gains Tax. Individuals can
make up to £10,100 worth of gains in each tax year before they would be liable to Capital Gains Tax.
• The rates and basis of taxation may change in the future.
• You should remember that the tax law applicable depends on your own personal situation and residency status.
• If you are unclear as to your tax position you should seek professional advice or contact your local tax office
for further information.
Tax advantages of a Stocks and Shares ISA:
• Stocks and Shares ISAs are free of Capital Gains Tax.
• If you have selected to have income paid out this wil not be subject to the deduction of 20% tax.
• If you have selected to have income reinvested, extra units wil be bought for your account with the difference
between the amount reinvested in the fund (net of 20% tax) and reflected in the unit price, and the gross
amount due to you.
• The value of the Stocks and Shares ISA tax benefits depends on your own personal circumstances.
• The tax benefits of a Stocks and Shares ISA are subject to government legislation and may change in the future.
CHARGES AND EXPENSES
What charges and expenses will I pay?
Initial Charge
• There is no initial charge. Therefore there is no difference between the buying and sel ing price of units.
Annual Management Charge
• The annual management charge for the Fund (based on the Fund’s net asset value) is 1.0%. It is calculated
on a daily basis and deducted from the capital of the Fund monthly.
Fund Expenses
• Fund expenses are not deducted from the Fund, but are paid by Marks and Spencer Unit Trust Management
Limited. These expenses include the Trustee, Auditors, Financial Services Authority, together with certain
other fees and expenses (plus VAT if applicable) permitted by the regulations governing unit trust funds (these
are set out in the ful Prospectus).
Withdrawals
• There is no charge for withdrawing your investment.

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EFFECT OF CHARGES TABLES
• The tables use a standard rate of growth of 6.0% for direct unit trust investment, and 7.0% for ISA
investment. The figures in the tables are not guaranteed, but demonstrate the effect of the Fund’s charges
and expenses on an investment. The tables help you compare the charges for this Fund with other funds.
• Please note, the last row shows the amount of deductions in total by the 10th year, not the amount paid in
the 10th year alone.
• The figures given in the ‘Effect of deductions to date’ column do not include dealing costs associated
with the buying and sel ing of shares.
Direct Investment
Lump sum – investment of £1,000 directly into the Fund assuming a growth rate of 6.0% per year.
Accumulation Units
Income Units
AT THE
EFFECT OF
WHAT YOU
EFFECT OF
WHAT YOU
END OF
INVESTMENT
DEDUCTIONS
MIGHT GET
DEDUCTIONS
MIGHT GET
YEAR
TO DATE
TO DATE
BACK AT 6.0%
TO DATE
INCOME
BACK AT 6.0%*
1
1,000.00
10.55
1,049.45
10.27
72.21
975.90
3
35.21
1,155.80
31.95
211.46
929.44
5
65.29
1,272.93
55.33
344.07
885.19
10
170.49
1,620.36
123.02
648.65
783.56
The last line of the table shows that over 10 years the effect of total charges and expenses could amount to
£170.49 for accumulation units and £123.02 for income units.
Putting it another way, this would have the same effect as bringing investment growth from 6.0% a year down
to 4.94% a year for accumulation units and 4.94% for income units.
*The end column in the table shows management charge is deducted from capital. The income paid out has been calculated using a yield of 5.52%.
Regular savings – investment of £50 per month, directly into the Fund assuming a growth rate of
6.0% per year.
Accumulation Units
AT THE
EFFECT OF
WHAT YOU
END OF
INVESTMENT
DEDUCTIONS
MIGHT GET
YEAR
TO DATE
TO DATE
BACK AT 6.0%
1
600.00
3.37
615.95
3
1,800.00
30.95
1,940.74
5
3,000.00
91.42
3,399.78
10
6,000.00
435.75
7,727.47
The last line of the table shows that over 10 years the effect of total charges and expenses could amount to
£435.75.
Putting it another way, this would have the same effect as bringing investment growth from 6.0% a year down
to 4.94% a year.

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ISA Investment
Lump sum – investment of £1,000 via a Stocks and Shares ISA assuming a growth rate of 7.0% per
year.
Accumulation Units
Income Units
AT THE
EFFECT OF
WHAT YOU
EFFECT OF
WHAT YOU
END OF
INVESTMENT
DEDUCTIONS
MIGHT GET
DEDUCTIONS
MIGHT GET
YEAR
TO DATE
TO DATE
BACK AT 7.0%
TO DATE
INCOME
BACK AT 7.0%*
1
1,000.00
10.65
1,059.35
10.30
90.17
967.18
3
36.22
1,188.82
32.08
261.74
904.73
5
68.43
1,334.12
55.71
422.23
846.31
10
187.27
1,779.88
125.28
779.57
716.24
The last line of the table shows that over 10 years the effect of total charges and expenses could amount to
£187.27 for accumulation units and £125.28 for income units.
Putting it another way, this would have the same effect as bringing investment growth from 7.0% a year down
to 5.93% a year for accumulation units and 5.93% for income units.
*The end column in the table shows management charge is deducted from capital. The income paid out has been calculated using a yield of 6.90%.
Regular savings – investment of £50 per month via a Stocks and Shares ISA assuming a growth rate
of 7.0% per year.
Accumulation Units
AT THE
EFFECT OF
WHAT YOU
END OF
INVESTMENT
DEDUCTIONS
MIGHT GET
YEAR
TO DATE
TO DATE
BACK AT 7.0%
1
600.00
3.40
619.12
3
1,800.00
31.55
1,969.77
5
3,000.00
94.43
3,485.49
10
6,000.00
465.38
8,135.56
The last line of the table shows that over 10 years the effect of total charges and expenses could amount to
£465.38.
Putting it another way, this would have the same effect as bringing investment growth from 7.0% a year down
to 5.93% a year.
Total Expense Ratio
• The Total Expense Ratio measures the total annual charges and expenses of a fund. This ratio helps you to
compare the annual charges and expenses of different funds.
• The Total Expense Ratio takes no account of the dealing costs incurred by the Fund when buying and sel ing
shares for the Fund.
• The Total Expense Ratio of the Fund for the 12 month period ending 31 January 2009 is 1.00%.
Portfolio Turnover Rate
• The Portfolio Turnover Rate of the Fund is the percentage of the Fund that has changed during the 12 month
accounting period of the Fund as a result of buying and sel ing shares. The more shares the Fund buys and sel s
the higher the Portfolio Turnover Rate. A high Portfolio Turnover Rate wil result in the Fund incurring more
dealing costs than a fund with a lower Portfolio Turnover Rate.
• The Portfolio Turnover Rate of the Fund for the 12 month period ending 31 January 2009 is 63%.

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PAST PERFORMANCE INFORMATION
This information relates to the past and past performance is not a reliable indicator
of future returns.
What have the annual returns of the Fund been over the past 10 years?
20
t
h
w
r
o
10
G
e
g
0
t
a
n
e
-10
r
c
e
P
-20
31/01/99
31/01/00
31/01/01
31/01/02
31/01/03
31/01/04
31/01/05
31/01/06
31/01/07
31/01/08
-
-
-
-
-
-
-
-
-
-
31/01/00
31/01/01
31/01/02
31/01/03
31/01/04
31/01/05
31/01/06
31/01/07
31/01/08
31/01/09
-4.5%
10.0%
10.1%
8.1%
11.9%
9.4%
7.9%
0.6%
-1.2%
-18.9%
What has the cumulative performance of the Fund been over the past 10 years?
The fund has grown by 37.9% from 31 January 1999 until 31 January 2009.
t
h
w
r
o
G
e
g
t
a
n
e
r
c
e
P
31/01/1999 to 31/01/2009
All the above figures are on a bid to bid basis, net income reinvested. Source: Reuters Hindsight.
All the figures in this document are up to the end of the latest 12 month annual accounting period of the Fund
as at 31 January 2009.

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INVESTMENT INFORMATION
How do I invest?
• You can invest in the Fund directly or via a Stocks and Shares ISA by telephone, by completing a written
application form, or online at www.marksandspencer.com/investments
• Each working day at 8am, new unit prices wil be calculated for the Fund. This is cal ed the Valuation Point.
Instructions to buy units either by telephone, by written application or online, wil receive the next 8am buying
price fol owing receipt. This is cal ed forward pricing.
• Monthly Direct Debit investments wil usual y be claimed on the 4th day of each month, or the next working
day if the 4th is not a working day, and units wil be bought at the buying price on this day.
What is the minimum I can invest?
• The minimum lump sum is £100. Fol owing this you can make top up investments of £25. The minimum
amount that can be invested on a monthly basis by Direct Debit is £25.
Can I change my mind and cancel my investment?
• You only have the right to cancel an investment if you have received investment advice.
• You wil have 14 days from the date you receive this notice to change your mind. If you cancel, the amount
returned may be less than the amount you invested, if there has been a downward movement in the stock
market from the date of investment to the date your instruction to cancel was received.
• If you have received investment advice, you can cancel your investment by writing to us and posting your
instructions to us within the 14 day period.
How do I sell units?
• You can sel units held in the Fund directly, or via a Stocks and Shares ISA, by telephone or by writing to us.
• You can instruct us to withdraw al , or part, of your investment any time.
• Instructions to sel units in the Fund wil be carried out at the sel ing price at the next 8am Valuation Point
fol owing receipt.
• We may ask you to confirm instructions given over the telephone in writing. Written instructions to sel must
be signed by each unit holder.
• Payment can be by cheque made payable to you, or direct to your bank or building society account. We wil
carry out any transactions that remain to be completed.
What happens to the income from the Fund?
• The interest received from the bonds held in the Fund wil either be reinvested for you, or paid out to you
depending on which type of units you hold, i.e. accumulation units or income units.
• With accumulation units, interest is reinvested back into the Fund. This wil not buy additional units, but wil be
reflected in the price of accumulation units.
• With income units, the interest is paid direct to your nominated bank or building society account.
The payment dates for the Fund are 31 March, 30 June, 30 September and 31 December.
What type of units are available for each type of investment?
Income
Accumulation
Units
Units
Lump Sum – Direct investment
Yes
Yes
Lump Sum – Stocks and Shares ISA
Yes
Yes
Monthly investment by Direct Debit – Direct investment
No
Yes
Monthly investment by Direct Debit – Stocks and Shares ISA
No
Yes
Where are the unit prices for the Fund published?
• The buying and sel ing prices for the Fund are published daily online at
www.marksandspencer.com/unittrusts or you can obtain the Fund prices by telephoning us.

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ADDITIONAL INFORMATION
What further information is available regarding the Fund?
You can request the following documents, free of charge.
• A copy of the ful prospectus
• The latest annual or half yearly Ful Report and Accounts
• The six monthly Short Report for the Fund
Please call or write to us. Alternatively, these documents are available online at
www.marksandspencer.com/investments
Who regulates the Fund?
The Fund has been authorised by the Financial Services Authority.
They can be contacted in writing or by telephone.
Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
FSA Consumer Helpline: 0845 606 1234
How can I contact you?
If you have any questions regarding this fund, or any of our other products including the Worldwide Managed
Fund, UK Selection Portfolio, UK100 Companies Fund and Ethical Fund, please do not hesitate to contact us.
Address:
Helpline: 0808 005 5555
Savings & Investments Department
General enquiries, buying and selling units and
Marks & Spencer Money
fund prices. Calls may be recorded.
Kings Meadow
Brochure line: 0808 002 2222
Chester
Lines are open 8am to 8pm Monday to Friday, and
CH99 9UT
9am to 5pm Saturdays. Calls may be recorded.
Email:
Fax: 01244 686116
internet.investments@mandsmoney.com
This Simplified Prospectus is effective from 01/06/2009
We are also able to provide this document in Braille, large print or audio cassette upon request.
Marks & Spencer Money and Your M&S are trading names of Marks and Spencer Unit Trust Management Limited. Registered in England No: 2253009.
Registered Office: Kings Meadow, Chester CH99 9FB. Authorised and regulated by the Financial Services Authority. A wholly owned subsidiary of HSBC Bank
plc. Marks & Spencer and Your M&S are registered trademarks of Marks and Spencer plc and are used under licence.
© Marks and Spencer Unit Trust Management Limited 2009. All Rights Reserved.
3089.SI/0913SMFW1/HIFSP/0509/WEB

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