For professional investors only Not for use by retail investors or advisers. Aberdeen Life. Unit-Linked Fund Guidelines July 2016

Transcription

1 For professional investors only Not for use by retail investors or advisers Aberdeen Life Unit-Linked Fund Guidelines July 2016

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3 Contents Constitution 04 Directory 05 Unit-Linked Fund Range 06 Equity Funds Aberdeen Life Emerging Markets Equity Fund 06 Aberdeen Life Global (ex UK) Equity Fund 06 Aberdeen Life North American Equity Fund 07 Aberdeen Life UK and Global (50/50) Equity Fund 07 Aberdeen Life UK and Global (70/30)Equity Fund 08 Aberdeen Life UK Equity Fund 08 Aberdeen Life UK Smaller Companies Fund 09 Aberdeen Life World Equity Fund 09 Multi-Asset Funds Aberdeen Life Diversified Growth Fund 10 Aberdeen Life Multi-Asset (ex Property) Fund 10 Aberdeen Life Multi-Asset (inc Property) Fund 11 Bond Funds Aberdeen Life Sterling Bond Fund 11 Aberdeen Life Sterling Credit Bond Fund 12 Aberdeen Life Sterling Index Linked Bond Fund 12 Aberdeen Life Sterling Long Dated Credit Bond Fund 13 Aberdeen Life Sterling Long Dated Government Bond Fund 13 Property Fund Aberdeen Life UK Property Fund 14 Cash Fund Aberdeen Life Cash Fund 14 General Investment Guidelines 15 Eligible Securities Markets 16 Additional Expenses 17 Underlying Funds 18 Terminated Funds 19

4 Constitution The Business of the Company Aberdeen Asset Management Life and Pensions Limited (Aberdeen Life) is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority in the United Kingdom to conduct Classes 1 (Life & Annuity) and III (Linked Long Term) of long term insurance business. The registered office is Bow Bells House, 1 Bread Street, London EC4M 9HH. The registered number is The Company is a wholly owned subsidiary of Aberdeen Asset Management PLC. In practice the Company serves as an efficient delivery mechanism of Aberdeen Asset Management s investment management services to UK institutional pension scheme clients (both defined benefit and defined contribution) and other UK insurance entities through reinsurance of their unit-linked liabilities. The Company does not bear any insurance risk as all benefits of the policies are tied to assets in the underlying internal linked funds by unit linking. Board of Directors Christopher Little (Non-executive Chairman) Helen Webster (Chief Executive Officer) Phillip Skerrett (Non-executive Director) Aron Mitchell (Executive Director) The Board serves in an oversight capacity to protect the interests of policyholders and to verify that management is complying with relevant legislation and regulation. It has adopted a Treating Customers Fairly policy that ensures policyholders interests are considered fully at all times. The Board is also responsible for protecting the interests of shareholders and therefore recognises that decisions relating to the Company s role (as a wholly owned subsidiary of Aberdeen Asset Management PLC) in the Aberdeen Group are driven primarily by Aberdeen. How those decisions are interpreted and implemented in relation to the Company is, however, solely the responsibility of the Board recognising, in particular, the Board s wider responsibilities. The Board pays particular attention to the assets of the Company and its solvency position with regard to the requirements of the PRA. Fund Range Aberdeen Life currently offers the following unit-linked funds: Equities Emerging Markets Equity Fund Global (ex UK) Equity Fund North American Equity Fund UK & Global (50/50) Equity Fund UK & Global (70/30) Equity Fund UK Equity Fund UK Smaller Companies Fund World Equity Fund Multi-Asset Diversified Growth Fund Multi-Asset (ex Property) Fund Multi-Asset (inc Property) Fund Fixed Income Sterling Bond Fund Sterling Credit Bond Fund Sterling Index Linked Bond Fund Sterling Long Dated Credit Bond Fund Sterling Long Dated Government Bond Fund Other UK Property Fund Cash Fund Governance and Control Day to day governance and risk control is delegated to Aberdeen Group (including the Aberdeen Life management team) via a formal Management Services Agreement. Services are provided by the Group s various operating entities and overseen by the committees which make up its risk control framework. Aberdeen Life management regularly review the risks that are applicable to the company and oversee any actions resulting from occurrences of these. 04 aberdeen-asset.com

5 Directory Aberdeen Life has appointed the following service providers: Investment Management Aberdeen Asset Managers Limited 10 Queens Terrace Aberdeen AB10 1YG Fund Administration State Street Bank & Trust Company 20 Churchill Place Canary Wharf, London E14 5HJ Custodian State Street Bank & Trust Company 20 Churchill Place Canary Wharf, London E14 5HJ Investor Administration International Financial Data Services St Nicholas Lane Basildon, Essex SS15 5FS Auditor KPMG Audit PLC Saltire Court, 20 Castle Terrace Edinburgh EH1 2EG Legal Adviser Maclay Murray & Spens One London Wall London EC2Y 5AB aberdeen-asset.com 05

6 Unit-Linked Fund Range Equity Funds Aberdeen Life Emerging Markets Equity Fund portfolio of emerging market equities, or companies with significant activities in emerging markets countries worldwide. Global Emerging Markets Equity Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 12 October 2006 Previous fund name: N/A Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract MSCI Emerging Markets Index Eligible investments: Emerging Markets Equity Fund % Liquidity Fund (Lux) Sterling Fund 0-2% Open unit classes 1 B N/A N/A N/A Management Fee 0% 1% SEDOL B1C6T27 B24CBW ISIN GB00B1C6T274 GB00B24CBW Stakeholder No No Equity Funds Aberdeen Life Global (ex UK) Equity Fund portfolio of overseas equities. Global Equity Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 2 October 1998 Previous fund name: Overseas Equity Fund Unit-linked directly invested fund The fund operates a single swinging price to protect policyholders from the effects of dilution. FTSE All World North America 35% FTSE All World Dev Europe ex UK 35% FTSE All World Japan 20% FTSE All World Dev Asia Pacific ex Japan 10% Quarterly rebalancing Risk Model: Stocks Maximum active stock 5% Maximum active industry 15% Maximum active country 35% Ex ante tracking error 3-9% Eligible investments BC : Overseas equities % Liquidity Fund (Lux) Sterling Fund 0-5% Open unit classes 1 A E F N/A Management Fee 0% 0% 0.50% 0.60% - SEDOL ISIN GB GB GB GB Stakeholder Yes No No No - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. B General investment guidelines are set out in Appendix 1. C Eligible securities markets are set out in Appendix aberdeen-asset.com

7 Equity Funds Aberdeen Life North American Equity Fund portfolio of United States and/or Canadian equities. North American Equity Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 18 September 2000 Previous fund name: N/A Unit-linked directly invested fund The fund operates a single swinging price to protect policyholders from the effects of dilution. FTSE Dev. North America Index Risk Model: Stocks Maximum active stock 4% Maximum active industry 7.5% Ex ante tracking error % Eligible investments BC : US and Canadian equities % Liquidity Fund (Lux) Sterling Fund 0-5% Open unit classes 1 A F I Management Fee 0% 0% 0.60% 1.0% SEDOL B1SY4X1 ISIN GB GB GB GB00B1SY4X19 Stakeholder Yes No No No Equity Funds Aberdeen Life UK and Global (50/50) Equity Fund portfolio of UK and overseas equities. Multi-Asset Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 30 June 2000 Previous fund name: Global Growth Fund Unit-linked fund of funds The fund is a fund of funds and there are currently no dilution adjustments at the top fund level. Dealing in the underlying fund may attract FTSE All Share Index 50% Overseas Equity 50% FTSE All World North America 35% FTSE All World Dev Europe ex UK 35% FTSE All World Japan 20% FTSE All World Dev Asia Pacific ex Japan 10% Quarterly rebalancing Eligible investments: UK Equity Fund Global (ex UK) Equity Fund Liquidity Fund (Lux) Sterling Fund 0-5% European equity (ex UK Fund) North American Equity Fund Japanese Equity Fund (unhedged) Japanese Equity Fund (hedged) Asia Pacific Equity Fund Asian Smaller Companies Fund Emerging Markets Equity Fund Latin American Equity Fund Foundation Growth Fund UK Enhanced Equity Fund European Equity Enhanced Index Fund North American Equity Enhanced Index Fund World Equity Enhanced Index Fund Open unit classes 1 E F N/A N/A Management Fee 0% 0.50% 0.60% - - SEDOL ISIN GB GB GB Stakeholder Yes No No - - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. B General investment guidelines are set out in Appendix 1. C Eligible securities markets are set out in Appendix 2. aberdeen-asset.com 07

8 UNIT-LINKED FUND RANGE CONTINUED Equity Funds Aberdeen Life UK and Global (70/30) Equity Fund portfolio of UK and overseas equities, mainly in UK equities. Multi-Asset Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 2 October 1998 Previous fund name: Global (Enhanced UK) Equity Fund Unit-linked fund of funds The fund is a fund of funds and there are currently no dilution adjustments at the top fund level. Dealing in the underlying fund may attract FTSE All Share Index 70% Overseas Equity 30% FTSE All World North America 35% FTSE All World Dev Europe ex UK 35% FTSE All World Japan 20% FTSE All World Dev Asia Pacific ex Japan 10% Quarterly rebalancing Eligible investments: UK Equity Fund Global (ex UK) Equity Fund Liquidity Fund (Lux) Sterling Fund 0-5% European equity (ex UK Fund) North American Equity Fund Japanese Equity Fund (unhedged) Japanese Equity Fund (hedged) Asia Pacific Equity Fund Asian Smaller Companies Fund Emerging Markets Equity Fund Latin American Equity Fund Foundation Growth Fund UK Enhanced Equity Fund European Equity Enhanced Index Fund North American Equity Enhanced Index Fund World Equity Enhanced Index Fund Open unit classes B D E N/A Management Fee 0.825% 0.40% 0.50% - SEDOL ISIN GB GB GB Stakeholder No No No - Equity Funds Aberdeen Life UK Equity Fund portfolio of UK equities. Pan European Equity Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 2 October 1998 Previous fund name: UK Equity Growth Fund Unit-linked directly invested fund The fund operates a single swinging price to protect policyholders from the effects of dilution. FTSE All Share Index Risk Model: Stocks Maximum active stock 7.5% Maximum active industry 15% Ex ante tracking error 3-9% Eligible investments BC : UK equities % UK Smaller Companies Fund 0-5% Liquidity Fund (Lux) Sterling Fund 0-5% Open unit classes 1 A E F N/A Management Fee 0% 0% 0.50% 0.60% - SEDOL ISIN GB GB GB GB Stakeholder Yes No No No - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. B General investment guidelines are set out in Appendix 1. C Eligible securities markets are set out in Appendix aberdeen-asset.com

9 Equity Funds Aberdeen Life UK Smaller Companies Fund portfolio of UK smaller companies. Pan-European Equity Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 14 June 2000 Previous fund name: UK Smaller Company Fund Unit-linked directly invested fund The fund operates a single swinging price to protect policyholders from the effects of dilution. FTSE Small Cap excluding Investment Trusts Index Risk Model: Stocks Maximum active stock 8.5% Maximum active industry 20% Maximum off Benchmark Stock 20% Ex ante tracking error 4-12% Portfolio volatility 10-25% Eligible investments BC : UK equities % Liquidity Fund (Lux) Sterling Fund 0-5% Open unit classes A F N/A N/A N/A Management Fee 0% 0.60% SEDOL ISIN GB GB Stakeholder No No Equity Funds Aberdeen Life World Equity Fund portfolio of internationally diversified equities. Global Equity Internal target A : To outperform the benchmark by 3% per annum over the long term. Launch date: 12 October 2006 Previous fund name: N/A Unit-linked directly invested fund The fund operates a single swinging price to protect policyholders from the effects of dilution. MSCI World Index Risk Model: Stocks Maximum absolute stock 5% Maximum active sector 15% Maximum active country 35% Ex ante tracking error 3-9% Eligible investments BC : Global equities % Liquidity Fund (Lux) Sterling Fund 0-5% Open unit classes 1 B D F N/A Management Fee 0% 0.80% 0.675% 0.50% - SEDOL B1C6SZ3 B7D7158 B4K7D09 B24CBY6 - ISIN GB00B1C6SZ34 GB00B7D71583 GB00 B4K7D091 GB00B24CBY68 - Stakeholder No No No No - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. B General investment guidelines are set out in Appendix 1. C Eligible securities markets are set out in Appendix 2. aberdeen-asset.com 09

10 UNIT-LINKED FUND RANGE CONTINUED Multi-Asset Funds Aberdeen Life Diversified Growth Fund Fund objective: To achieve long term total return with lower volatility than equities. Multi-Asset Internal target A : To outperform the benchmark over the long term. Launch date: 1 November 2011 Previous fund name: N/A Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at the fund level. Dealing in the underlying fund may attract One month GBP LIBOR + 4.5% Eligible investments: Diversified Growth Fund % Liquidity Fund (Lux) Sterling Fund 0-2% Open unit classes A B N/A N/A N/A Management Fee 0% 0.50% SEDOL B4RN0X2 B5493X ISIN GB00B4RN0X20 GB00B5493X Stakeholder No No Multi-Asset Funds Aberdeen Life Multi-Asset (ex Property) Fund Fund objective: To achieve long-term returns from a diversified portfolio of assets. The fund will not normally have an allocation to property assets although it may gain a small exposure in such assets via holdings in other funds. Multi-Asset Internal target A : To outperform the benchmark by 1% per annum over the long term. Launch date: 2 October 1998 Previous fund name: Balanced Fund Unit-linked fund of funds The fund is a fund of funds and there are currently no dilution adjustments at the top fund level. Dealing in the underlying funds may attract 40% - FTSE All Share UK 35% - MSCI ACWI ex UK Index 15% - One month GBP LIBOR + 4% 10% - iboxx Sterling Eligible investments: Investment Ranges: UK Equity Fund Global (ex UK) Equity Fund Life Diversified Growth Fund Diversified Growth Fund Liquidity Fund (Lux) Sterling Fund Global Bond Fund Global Government Bond Fund Sterling Bond Fund Sterling Government Bond Fund Sterling Index Linked Bond Fund Asian Local Currency Short Duration Bond Fund Select Euro High Yield Bond Fund European Equity (ex-uk) Fund North American Equity Fund Japanese Equity Fund (unhedged) Japanese Equity Fund (hedged) Asia Pacific Equity Fund Asian Smaller Companies Fund Emerging Markets Equity Fund Latin American Equity Fund Foundation Growth Fund UK Enhanced Equity Fund European Equity Enhanced Index Fund North American Equity Enhanced Index Fund World Equity Enhanced Index Fund Corporate Bond Fund Maximum +/10% relative to benchmark weightings. Diversified Growth Fund 0-20% Open unit classes 1 A B E F Management Fee 0% 0% 0.725% 0.50% 0.60% SEDOL ISIN GB GB GB GB GB Stakeholder Yes No No No No A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. 10 aberdeen-asset.com

11 Multi-Asset Funds Aberdeen Life Multi-Asset (inc Property) Fund Fund objective: To achieve long-term returns from a diversified portfolio of assets. The fund will normally include an allocation to property assets. Multi-Asset Internal target A : To outperform the benchmark by 1% per annum over the long term. Launch date: 30 June 2000 Previous fund name: Mixed Fund Unit-linked fund of funds The fund is a fund of funds and there are currently no dilution adjustments at the top fund level. Dealing in the underlying funds may attract 40% - FTSE All Share UK 35% - MSCI ACWI ex UK Index 15% - One month GBP LIBOR + 4% 10% - iboxx Sterling Eligible investments: Investment Ranges: UK Growth Fund Global (ex UK) Equity Fund Life Diversified Growth Fund Diversified Growth Fund Liquidity Fund (Lux) Sterling Fund Global Bond Fund Global Government Bond Fund Sterling Bond Fund Sterling Government Bond Fund Sterling Index Linked Bond Fund Asian Local Currency Short Duration Bond Fund Select Euro High Yield Bond Fund Aberdeen Life UK Property Fund European Equity (ex-uk) Fund North American Equity Fund Japanese Equity Fund (unhedged) Japanese Equity Fund (hedged) Asia Pacific Equity Fund Asian Smaller Companies Fund Emerging Markets Equity Fund Latin American Equity Fund Foundation Growth Fund UK Enhanced Equity Fund European Equity Enhanced Index Fund North American Equity Enhanced Index Fund World Equity Enhanced Index Fund Corporate Bond Fund Maximum +/10% relative to benchmark weightings. Diversified Growth Fund 0-20% Open unit classes A C N/A Management Fee 0% 0.50% - SEDOL B4LDZB1 - ISIN GB GB00B4LDZB10 - Stakeholder No No - Bond Funds Aberdeen Life Sterling Bond Fund portfolio, the majority of which is invested in sterling denominated investment grade debt and debt related securites. The fund may also include some exposure to overseas interest rates and currencies. UK Fixed Income Internal target A : To outperform the benchmark by 0.75% per annum over the long term. Launch date: 2 October 1998 Previous fund name: Bond Fund Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract BofA Merrill Lynch Sterling Broad Market Index Eligible investments: Sterling Bond Fund % Liquidity Fund (Lux) Sterling Fund 0-2% Open unit classes 1 A D N/A Management Fee 0% 0% 0.35% - SEDOL ISIN GB GB GB Stakeholder Yes No No - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. aberdeen-asset.com 11

12 UNIT-LINKED FUND RANGE CONTINUED Bond Funds Aberdeen Life Sterling Credit Bond Fund portfolio, the majority of which invests in sterling denominated non-government investment grade debt and debt related securities. The fund may also include some exposure to overseas interest rates and currencies. UK Fixed Income Internal target A : To outperform the benchmark by 0.75% per annum over the long term. Launch date: 11 March 2004 Previous fund name: Sterling Credit Fund Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract BofA Merrill Lynch Sterling Non Gilts Index Eligible investments: Corporate Bond Fund % Liquidity Fund (LUX) Sterling Fund 0-2% Open unit classes A E N/A N/A Management Fee 0% 0.30% - - SEDOL B00GB48 B4Y8ML2 - - ISIN GB00B00GB482 GB00B4Y8ML Stakeholder No No - - Bond Funds Aberdeen Life Sterling Index Linked Bond Fund portfolio, the majority of which invests in sterling denominated index linked investment grade debt and debt related securities. The fund may also include some exposure to overseas interest rates and currencies. UK Fixed Income Internal target A : To outperform the benchmark by 0.5% per annum over the long term. Launch date: 24 November 2000 Previous fund name: Index Linked Bond Fund Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract FTSE-A Over 5 Years Index Linked Gilts Index Eligible investments: Sterling Index Linked Bond Fund % Liquidity Fund (LUX) Sterling Fund 0-2% Open unit classes D E N/A N/A N/A Management Fee 0.35% 0.30% SEDOL B4501K ISIN GB GB00B4501K Stakeholder No No A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. 12 aberdeen-asset.com

13 Bond Funds Aberdeen Life Sterling Long Dated Credit Bond Fund portfolio, the majority of which invests in long dated sterling denominated nongovernment investment grade debt and debt related securities. The fund may also include some exposure to overseas interest rates and currencies. UK Fixed Income Internal target A : To outperform the benchmark by 0.75% per annum over the long term Launch date: 11 October 2000 Previous fund name: Long Dated Corporate Bond Fund Unit-linked feeder fund Eligible investments: The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract BofA Merrill Lynch Sterling Non Gilts Over 10 Years Index Sterling Long Dated Corporate Bond Fund % Liquidity Fund (Lux) Sterling Fund 0-2% Open unit classes D N/A N/A N/A N/A Management Fee 0.35% SEDOL B0322T ISIN GB00B0322T Stakeholder No Bond Funds Aberdeen Life Sterling Long Dated Government Bond Fund portfolio, the majority of which invests in long dated sterling denominated government investment grade debt and debt related securities. The fund may also include some exposure to overseas interest rates and currencies. UK Fixed Income Internal target A : To outperform the benchmark by 0.75% per annum over the long term. Launch date: 24 November 2000 Previous fund name: UK Long Dated Sterling Bond Fund Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract FTSE-A Over 15 Year Gilts Index Eligible investments: Sterling Long Dated Govt Bond Fund % Liquidity Fund (Lux) Sterling Fund 0-2% Open unit classes 1 D E N/A N/A Management Fee 0% 0.35% 0.30% - - SEDOL B7KV ISIN GB GB GB00B7KV Stakeholder Yes No No - - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. aberdeen-asset.com 13

14 UNIT-LINKED FUND RANGE CONTINUED Property Fund Aberdeen Life UK Property Fund portfolio, the majority of which invest in a balanced commercial property portfolio. Direct Property Internal target A : To provide rolling three year returns that are consistently above the median return in the CAPS Property sector. Launch date: 3 November 2014 Previous fund name: N/A Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract dilution adjustments. ABI UK Direct Property Sector Weighted Average Eligible investments: Aberdeen UK Property Fund % Liquidity Fund (Lux) Sterling Fund 0-2% Open unit classes B A N/A N/A N/A Management Fee 0.40% 0% SEDOL BRTL4J9 BSTL ISIN GB00BRTL4J94 GB00BSTL Stakeholder No No Cash Fund Aberdeen Life Cash Fund portfolio, by investing in cash deposits, money market instruments and collective investment schemes. Money Markets Internal target A : To match or exceed the benchmark. Launch date: 2 October 1998 Previous fund name: N/A Unit-linked feeder fund The fund is a feeder fund and there are currently no dilution adjustments at fund level. Dealing in the underlying fund may attract dilution adjustments. 7 day LIBID Eligible investments: Cash Fund % Liquidity Fund (Lux) Sterling Fund 0-5% Open unit classes D N/A N/A Management Fee 0.15% - - SEDOL ISIN GB Stakeholder No - - A This is an internal performance target which the Investment Manager aims to achieve as at the date of this document. This target is not based on past performance, may be subject to change and cannot be guaranteed. Investors should always refer to the investment objective and restrictions as stated in the latest prospectus. 14 aberdeen-asset.com

15 General Investment Guidelines Derivatives The current policy of the Board of Aberdeen Life is that derivatives, quasi-derivatives and forward foreign currency contracts are not permitted for use in Aberdeen Life unit-linked funds. This does not affect their use in the underlying funds into which Aberdeen Life funds feed. Warrants Not more than 5% of the value of the property of a unit-linked fund shall consist of warrants and these must be listed on a regulated market. Warrants can be held only if it is reasonably foreseeable that the right to subscribe conferred by such warrants could be exercised by the fund without contravening the investment restrictions. Under no circumstances may warrants be used for purposes of gearing a unit-linked fund. Stock Lending Aberdeen Life does not currently permit stock lending within its unit-linked funds. However, stock lending may take place in the underlying funds into which Aberdeen Life funds feed. Underwriting / Sub-underwriting Underwriting occurs during a rights issue, whereby an Aberdeen fund manager would like to (sub) underwrite all / part of the rights issue on behalf of a unit-linked. The fund would receive a fee (eg 1% of the value of the rights issue that the fund underwrites). In return, the fund will be required to purchase all / part of the shares that have not been taken up by the market. Rights issues normally involve shares being issued at a discounted price. Regulations (INSPRU 3.2.6R-7R and ) normally permit Aberdeen Life to enter into (sub) underwriting transactions under normal market practices when it reasonably appears to the manager to be economically appropriate to do so, with a view to generating additional income for a unit-linked fund with no, or an acceptable degree of, risk. However, if the total holding in the security will become 10% or more of the fund, after the rights issue and underwriting, then prior approval must be obtained from the Chief Executive Officer. Ability to realise and price assets All securities held should be capable of being realisable in the short term. All assets held should be such that the value of the relevant internal linked fund can be determined fairly and accurately to meet the requirements of COBS R All investments must comply with the permitted links requirements of COBS 21.3 Cash Management Aberdeen Life s directly invested funds and funds of funds can normally hold up to 5% in cash. All the other funds (feeder funds) can only hold up to 2% cash. Cash is normally invested in the Aberdeen Liquidity Fund (LUX) Sterling Fund. Borrowing Borrowing must not be used to gear or leverage a unit-linked fund unless a) the borrowing is on a temporary basis and for small amounts, no greater than than 2% of the value of the unit-linked fund; or b) the borrowing is authorised by the Board The Board should be advised of any borrowings above the 2% limit. Regulations governing the borrowing and gearing of a unit-linked fund are included in INSPRU Regulations governing gearing of unit-linked funds are included in COBS Unlisted Securities Subject to other guidelines, no more than 5% of any one fund should be invested in unlisted securities. Collective Investment Schemes An unlimited proportion of a unit-linked fund can be invested in units of collective investment schemes and an unlimited proportion of the units in issue in individual collective investment schemes provided those schemes satisfy the requirements for a UCITS. Any collective investment schemes held must be single priced to meet the Stakeholder Pensions Regulations. If the fund invests in units or shares of other Aberdeen managed funds then zero charge units or shares will normally be purchased to avoid double charging of management fees. If fee paying units or shares are purchased, then the management fee must be rebated to the fund. No holdings may be purchased in collective investment schemes that are not managed by Aberdeen without the approval of the Aberdeen Life Chief Executive Officer and Actuarial Function Holder. Exposure to the Aberdeen Group Other than investments in authorised collective investment schemes managed by a company within the Aberdeen Group or accruals of monies owed by any company within the Aberdeen Group, Aberdeen Life shall not invest in shares or debt of Aberdeen Asset Management plc. The concerns here relate to the conflicts of interest issue of COBS R and also the Companies Act issues that arise if a subsidiary owns shares in its parent. aberdeen-asset.com 15

16 Eligible Securities Markets Funds may currently buy and sell securities on the following markets: Country EU or EEA State Australia Brazil Canada China Hong Kong India Indonesia Israel Japan Korea (South) Malaysia Mexico New Zealand Peru Philippines Russia Singapore South Africa Sri Lanka Switzerland Taiwan Thailand Turkey USA Other Markets Exchange Name All securities markets established in an EU or EEA State on which transferable securities admitted to official listing are dealt or traded Australian Stock Exchange BM&FBOVESPA TMX Group TSX Venture Exchange Shanghai Stock Exchange Shenzen Stock Exchange Hong Kong Stock Exchange Global Enterprise Market (GEM) Bombay Stock Exchange National Stock Exchange Jakarta Stock Exchange Tel-Aviv Stock Exchange Tokyo Stock Exchange JASDAQ Korean Stock Exchange KOSDAQ Bursa Malaysia Bolsa Mexicana de Valores New Zealand Stock Exchange Bolsa de Valores de Lima Philippines Stock Exchange Moscow Interbank Currency Exchange Russian Trading System Singapore Exchange JSE Securities Exchange Colombo Stock Exchange SIX Swiss Exchange Taiwan Stock Exchange Gre Tai Securities Market Stock Exchange of Thailand Istanbul Stock Exchange New York Stock Exchange NYSE Amex NASDAQ OTC Market in US Government Securities International Capital Markets Association (ICMA) 16 aberdeen-asset.com

17 Additional Expenses The Total Expense Ratios for Aberdeen Life funds consist of the Annual Management Charge applicable to each share class and any associated additional expenses. They are reviewed periodically and updated after each year end. Additonal expenses currently include third party costs associated with the following services; fund administration, custody, transfer agency. Expenses from underlying funds held are also included on a look-through basis. Aberdeen Life has a number of funds which include a designated Stakeholder unit class. To ensure all Stakeholder clients are correctly treated, including those investing via a reinsurance agreement, Aberdeen Life rebates all additional expenses back to stakeholder shareclasses. Further information on the current level of additional expenses for each fund is available on our website. aberdeen-asset.com 17

18 Underlying Funds A Summary of the funds managed by Aberdeen which may be held as investments in one or more of Aberdeen Life s unit-linked funds. Domicile Umbrella Fund Name Shareclass SEDOL ISIN UK Aberdeen Life Global (ex UK) Equity Fund A GB UK Equity Fund A GB UK Smaller Companies Fund A GB Diversified Growth Fund A B4RN0X2 GB00B4RN0XZ0 UK Property Fund B BRTL4J9 GB00BRTL4J94 North American Equity Fund Class A GB Emerging Markets Fund Class 1 B1C6T27 GB00B1C6T274 UK Direct Property Aberdeen UK Property Fund Z Acc BTLX1KT GB00BTLX1K76 UK Aberdeen Investment Funds Emerging Markets Equity Fund Z Acc B1CDBB1 GB00B1CDBB12 Cash Fund Z Gross Acc B3L0Q90 GB00B3L0Q908 Latin American Equity Fund I Acc B4R0SD9 GB00B4R0SD95 Foundation Growth Fund Class B NET ACC B76B9Y2 GB00B76B9Y24 UK Enhanced Equity Fund Class B NET ACC BDZRCP5 GB00BDZRCP55 European Equity Enhanced Index Fund Class B - Acc BRJL7X4 GB00BRJL7X45 North American Equity Enhanced Index Fund Class B - Acc BRJL819 GB00BRJL8192 World Equity Enhanced Index Fund Class B - Acc BRJL7Z6 GB00BRJL7Z68 UK Aberdeen Funds Diversified Growth Fund Z Acc B62J6F3 GB00B62J6F31 Sterling Bond Fund Z Acc BWK2720 GB00BWK27202 Corporate Bond Fund Z Acc BWK26P6 GB00BWK26P62 Sterling Government Bond Fund Z Acc BZ1JWR1 GB00BZ1JWR13 Sterling Index-Linked Bond Fund Z Acc BWK2775 GB00BWK2775 Sterling Long Dated Corporate Bond Fund Z Acc BZ4BR13 GB00BZ4BR130 Sterling Long Dated Government Bond Fund Z Acc BZ4BR57 GB00BZ4BR577 Luxembourg Aberdeen Global Asian Local Currency Short Duration Bond Fund I (GBP) - 1 Inc B4LR0X0 LU Select Euro High Yield Bond Fund A (GBP) - 2 Acc B4SYZN9 LU European Equity (ex-uk) Fund Class D B0L1249 LU Japanese Equity Fund (unhedged) Class D B0L10D4 LU Japanese Equity Fund (hedged) Class X BBL54J7 LU Asia Pacific Equity Fund Class D B0L0Z25 LU Asian Smaller Companies Fund Class D B0L11L9 LU Luxembourg Aberdeen Global II Global Bond Fund Z - 2 Acc B1YCML3 LU Global Government Bond Fund Z - 2 Acc B1YCMZ7 LU Luxembourg Aberdeen Liquidity Fund (Lux) Liquidity Fund (Lux) Sterling Fund Z - 1 Inc B3NH0G4 LU aberdeen-asset.com

19 Terminated Funds 2015 UK Direct Property Fund - 11 September Asia Pacific Equity Fund - 31 January European Equity Growth Fund 21 August 2013 Japan Equity Fund 21 August 2013 Managed Distribution Fund 21 August 2013 Pension Converter Fund 1 February Subsidiary Bond Fund (suspended) 1 November 2012 European Equity High Yield Bond Fund 26 September 2012 Broad Fixed Interest Fund 26 September 2012 UK Equity Mid Cap Fund 26 September 2012 UK Equity Income Fund 26 September 2012 Sterling Bond Fund 17 April 2012 UK Opportunities Fund 23 March 2012 UK Property Fund 17 February None 2010 None 2009 None 2008 None 2007 Cautious Fund - January International Equity Fund - November 2006 Gilts Fund - April 2006 aberdeen-asset.com 19

20 The value of investments and the income from them can go down as well as up and your clients may get back less than the amount invested. The information provided in this Document relates to the products and services of Aberdeen Asset Management Life and Pensions Limited (Aberdeen Life). Aberdeen Asset Management Life and Pensions Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom. Registered in England and Wales Registered Office: Bow Bells House, 1 Bread Street, London EC4M 9HH. Issued July /16