New Key Investment Information

Q: What are Key Investor Information Documents (KIIDs)?

A: The KIID constitutes the pre-contractual information which we must provide to you prior to investment in one of our Funds. The KIID replaces the existing Fund Simplified Prospectus.

The type, level and style of information which has to be included in the KIID has been prescribed by European regulation, and has been implemented to ensure that you have appropriate information to allow you to make a reasoned judgement on whether investment in a particular fund is appropriate for you.

Q: Why are they being introduced?

A: Certain Funds are categorised as UCITs Funds, this acronym stands for Undertakings for Collective Investments in Transferable Securities. UCITS is a European Directive which applies common standards for the operation and management of Funds across the European Union. Funds which comply with the UCITS Directive may be marketed cross border in the EU without restriction.

KIIDs have been introduced to ensure that information available to you as an investor is consistent across all UCITS Funds, and allow for a simpler comparison of funds. The KIID sets out the essential characteristics of a fund or share class necessary for you as an investor to understand the nature and the risks of the fund being offered and make investment decisions on an informed basis.

Q: Will the change to KIIDs change how I buy and sell shares in the Funds?

A: Following the switch to KIIDs, the way in which you buy our Funds will be slightly different. You will need to confirm you have received the relevant KIID for each share class of a fund in which you want to invest before we can accept your investment.

We will not be able to accept your instruction if we don’t have this confirmation. We will also need to provide you with our Supplementary Information Document.

This additional legal confirmation is required for the following types of investment into our funds;

• Lump sum payment
• Direct Debit set up
• Increase your existing regular investment or place an additional lump sum,
• Switch between funds or
• Transfer an ISA

There will be no changes to the way in which you sell shares in the Funds.

Q: How can I obtain the latest version of the KIID document for the fund and share class I wish to invest in?

A: After the implementation date, the KIIDs and SID document will be available on our website www.avivainvestors.co.uk/customer . You can also contact us on 0800 051 2003* to receive a printed copy.

Q: What Information will be contained in the KIID?

A: To achieve the aim of delivering appropriate fund information to investors, KIIDs must be written in concise, non-technical language.

The European Commission in consultation with European Securities and Markets Authority (ESMA) has developed a prescribed format and content, this is organised under five key information headings:

• Objectives & Investment Policy – This shows what the fund’s investment objective and how we hope to achieve it. You will find information about the type of assets (e.g. shares, bonds, cash) the fund will invest in and whether it focuses on a certain region of business sector.

• Risk & Reward Profile - This section will give you an idea of the risk attached to investing in the fund. This is shown using a risk indicator (see below), which consists of a set of numbers from one to seven. The lowest number indicates a fund that has the lowest risk of losing your money but has a lower likelihood of providing a large return on your investment. The highest number indicates a high risk fund, so there is a greater risk of losing your money but the possibility of achieving greater returns.

This section also includes a number of statements describing other types of risk, which could affect the performance of the fund.

• Charges - This section tells you about the charges that will be taken from your investment in order to pay for the costs of running the fund.

• Past Performance - Information provided in this section enables you to see how the fund has performed in previous years. It also provides an indication of the extent to which the fund’s investment returns have fluctuated over the years. Please remember past performance is not a guide to future performance.

• Practical Information – This section provides information about where and how to obtain more details about the fund, the name of the depositary and details of where the fund is authorised.

For more information about what will be contained in the KIID please visit: http://www.investmentfunds.org.uk/investor-centre/investor-factsheets/KIID/information

Q: When do you intend to issue KIIDs?

A: The effective date of the new UCITS IV directive is 1 July 2011. The final date for transition to KIIDs is the 30 June 2012. The transition requires a significant amount of work, and we have targeted a conversion date of 30 April 2012. This date is flexible and should it change we will keep you informed through this website and we will write to you nearer the time to confirm the effective date.

Q: Will all your Funds have KIIDs?

A: Not all of our Funds require a KIID however it is our intention to introduce KIIDs for all our FSA authorised funds as we believe that by applying common standards will make investment choice for you simpler.

Q: How often are KIIDs updated?

A: Each KIID must be updated at least annually, within 35 business days of year-end, to include refreshment of performance data to the end of the previous calendar year.

Additional updates may be triggered throughout the year based on a number of potential events such as an update to the fund name, investment objective or charges. The KIID will include a risk indicator which consists of a set of numbers from one to seven. The lowest number indicates a fund that has the lowest risk of losing your money but has a lower likelihood of providing a large return on your investment. The highest number indicates a high risk fund, so there is a greater risk of losing your money but the possibility of achieving greater returns. This indicator is recalculated regularly and if it changes for more than four months then a new KIID will be made available to reflect the new rating.

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