Sarasin ISA and PEP Transfer

Transcription

1 Sarasin ISA and PEP Transfer Key Features of the Sarasin ISA and PEP Transfer as at August 2007

2 YOUR INVESTMENT Your investment will buy shares in your chosen Sarasin fund. Your investment will be pooled with all the other investors assets and managed in accordance with the investment objectives of your chosen fund(s). The minimum lump sum investment is 1,000 per fund, including ISA and PEP transfers. The minimum level for subsequent subscriptions is 250. As an alternative to investing a lump sum, you may invest a minimum of 100 a month into any one of the funds. You can start and stop investing whenever you wish, providing the remaining value of your investment is above the minimum investment level of 1,000. There is no minimum investment period, though we would recommend that you view your investment as a medium to long term one (i.e. 5 to 10 years). The following funds are available within the Sarasin ISA and Sarasin PEP: 1. Sarasin EquiSar Global Thematic Fund (UK OEIC sub-fund) 2. Sarasin GlobalSar IIID Fund (UK OEIC sub-fund) 3. Sarasin EquiSar IIID Fund (UK OEIC sub-fund) 4. Sarasin Real Estate Equity IIID Fund (UK OEIC sub-fund) 5. Sarasin International Equity Income Fund (UK OEIC sub-fund) 6. Sarasin UK Equity Income Fund (UK OEIC sub-fund) 7. Sarasin CI Real Estate Equity (GBP) (Guernsey Unit Trust) 8. Sarasin CI Income Portfolio (Guernsey Unit Trust) RISK FACTORS Investors should bear in mind that all investment carries risk and in particular should be aware of the following: Past performance is not a guide to the future. The value of shares and the income derived from them can go down as well as up and as a result the investor may not get back the amount originally invested. This can be as a result of market movements and also of variations in the exchange rates between currencies. In certain circumstances, in order to reduce or eliminate risk arising from fluctuations in interest or exchange rates and in the price of investments, the fund manager may enter into transactions in futures and options. The value of these investments may vary markedly. By holding these futures and options there is a risk of capital depreciation of certain assets, but also the potential for their capital appreciation. The levels of relief from taxation will depend upon individual circumstances. Please note current tax levels and reliefs may change (for example the favourable tax treatment of ISAs and PEPs) and their value will depend on the investor s individual circumstances. If you exercise your right to cancel your investment, you should note that whilst you will not have to pay the initial charges, you may not get back the amount you invested if the share price has fallen since you invested. There may be exit charges and other costs associated with transferring your existing ISA or PEP into the Sarasin ISA or PEP. The transfer will entail your current holdings being liquidated and transferred as cash and there is a potential for a loss of income or growth should there be a rise in the market during the transfer process. Transfers into the Sarasin ISA or PEP are subject to an initial charge of up to 5%. In relation to the sub-funds of the UK OEIC, although each sub-fund is 2 9. Sarasin CI GlobalSar Sterling (Guernsey Unit Trust) 10. Sarasin CI EquiSar Sterling (Guernsey Unit Trust) 11. Sarasin BondSar EUR (LuxembourgSICAV sub-fund) 12. Sarasin EmergingSar - Global (Luxembourg SICAV sub-fund) 13. Sarasin EmergingSar - Asia (Luxembourg SICAV sub-fund) 14. Sarasin GlobalSar (EUR) (LuxembourgSICAV sub-fund) 15. Sarasin EquiSar - Global (LuxembourgSICAV sub-fund) 16. Sarasin OekoSar Equity - Global (LuxembourgSICAV sub-fund) 17. Sarasin OekoSar Portfolio (LuxembourgSICAV sub-fund) 18. Sarasin Real Estate Equity - Global (LuxembourgSICAV sub-fund) (DISTRIBUTION & ACCUMULATION SHARE CLASSES AVAILABLE) 19. Sarasin Sustainable Equity - Global (LuxembourgSICAV sub-fund) 1 to 6 are sub-funds of Sarasin ICVC, a UK OEIC that is authorised by the FSA. Accumulation and Income shares are available for these. 7 to 10 are FSA recognised Guernsey Unit Trusts. Accumulation and Income shares are available for these. Fund 11 to 19 are sub-funds of Sarasin fonds SICAV which is recognised by the FSA. responsible for meeting its own liabilities, the Authorised Corporate Director ( ACD ) of the OEIC may reallocate the income and expenses of sub-funds within the OEIC in a manner which is fair to all the OEIC s investors if any subfund is unable to meet its liabilities. You will not however, be liable for the debts of the OEIC, nor will you be required to make any further payment to the OEIC in respect of fully paid Shares in the OEIC held by you. It should be noted that in respect of the following, the charges, costs and expenses attributable to the relevant Fund may be charged to its capital account in the following proportions which may constrain capital growth: 100% - Sarasin International Equity Income Fund & Sarasin UK Equity Income Fund 80% - Sarasin GlobalSar IIID Fund (from 2 nd May 2006), Sarasin Sterling Bond Fund, Sarasin CI GlobalSar Sterling, Sarasin CI Real Estate Equity (GBP) and Sarasin CI Income Portfolio 60% - Sarasin EquiSar IIID Fund, Sarasin Real Estate Equity IIID Fund, Sarasin EquiSar Global Thematic Fund and Sarasin CI EquiSar Sterling In relation to Sarasin EmergingSar, it should be noted that frequent political and social unrest in emerging markets and resulting high inflation and interest rates may lead to sharp swings in foreign currency markets and stock markets. There is also an inherent risk in the smaller size of many emerging markets, especially since this means restricted liquidity. Further risks to bear in mind are restrictions on non-uk residents making currency transactions or investments. It is therefore important that investments are made with a long-term view. In the case of the newer funds where their assumed size is not reached immediately, the proportion of charges and expenses allocated to the investment may be higher and the value of the investment may be reduced as a consequence.

3 AIM OF THE FUNDS The full investment objective of each Fund can be found in the Prospectus. 1. Sarasin EquiSar Global Thematic Fund The objective of the Fund is to seek capital growth through investment in a broad portfolio of international stocks (and on occasion in convertible or straight bonds). The ACD will identify core themes that it considers offer attractive long term investment opportunities to shareholders and the Fund will be invested in accordance with these themes. The themes will be kept under review by the ACD and will change from time to time. There will be no restriction by geographical or industrial sector. It is the intention of the ACD that the majority of the holdings within the Fund will be of large and medium size stocks. 2. Sarasin GlobalSar IIID Fund The Fund seeks to provide a real return to shareholders over the medium term. It is intended that the Fund will invest in a broad, diversified and global portfolio of investments. The Fund will also seek to avoid market set backs by using a variety of protective measures. 3. Sarasin EquiSar IIID Fund The Fund seeks to achieve a real return to shareholders over the long term. It is intended that the Fund will invest either directly or indirectly in a broad portfolio of global securities that satisfy one or more investment themes that the ACD expects to be key drivers of corporate profitability and investment performance. 4. Sarasin Real Estate Equity IIID Fund The Fund seeks to achieve a real return to shareholders over the long term. It is intended that the Fund will invest principally directly or indirectly in a broad portfolio of global real estate-related investments which the ACD expects will generate corporate profitability and investment performance. 5. Sarasin International Equity Income Fund Sarasin International Equity Income Fund seeks to achieve a consistently attractive level of income and in addition seeks long-term capital appreciation. It is intended that the Fund will invest in a portfolio of international securities that satisfy one or more investment themes that are expected to be key drivers of corporate profitability, investment performance and yield. 6. Sarasin UK Equity Income Fund Sarasin UK Equity Income Fund seeks to achieve a consistently attractive level of income and in addition seeks long-term capital appreciation. It is intended that the Fund will invest in a portfolio of UK securities that satisfy one or more investment themes that are expected to be key drivers of corporate profitability, investment performance and yield. 7. Sarasin CI Real Estate Equity (GBP) The Fund seeks to achieve long-term capital growth by investing in worldwide quoted equities and shares of companies that are linked to the property market. These companies are involved in land development or earn income from letting land or properties. Further investments will be made into closed ended property funds such as REITs (Real Estate Trusts) or other comparable companies managing properties. The Fund can also invest in other indirect investments within the property sector. 8. Sarasin CI Income Portfolio The investment objective of the Fund is to achieve a consistently attractive level of income coupled with long term capital appreciation, whilst aiming to preserve the value of capital over the longer term. The portfolio will be invested predominantly in fixed interest securities with the remainder in a mix of global equities, convertible bonds and cash. 9. Sarasin CI GlobalSar Sterling The seek to achieve long term capital growth and income generation with a lower risk profile than pure stockmarket alternatives by investment on a global basis. This is achieved with a broadly diversified global fund covering all the world s principal stock, bond and currency markets, enabling access to an entire world wide balanced portfolio with a single investment product. 10. Sarasin CI EquiSar Sterling The Fund seeks to achieve long term capital growth and income generation through investment in a broad portfolio of international stocks (and on occasion convertible or straight bonds). There will be no inherent bias towards the securities of any one country or region and the Manager will be free to allocate funds to whichever markets they regard as holding the best long term investment opportunities. It is the intention of the Managers that the bulk of the positions held in the Fund should be large and medium capitalisation stocks. However, there will also be holdings in some smaller stocks where they appear to hold particular growth opportunities. Subject to exceptional market conditions the Fund will aim to hold only minimal cash balances. 11. Sarasin BondSar EUR The aim of the Fund is to achieve a high and regular income as well as a balanced spread of risk. Assets of the Fund shall be invested solely in high quality Euro-denominated international bonds, convertible and options bonds, as well as fixed interest or variable interest debt-securities (including zero coupon bonds) denominated in Euro. High-quality bonds describes those instruments that have a rating of at least A (or equivalent) from a recognised rating agency. 12. Sarasin EmergingSar - Global The assets of the Sarasin EmergingSar Global subfund are invested in shares of companies domiciled in emerging markets, in listed country and regional funds and listed index certificates and index futures as well as warrants on index certificates of emerging markets. Emerging markets include the developing countries of Asia, Latin America, Eastern Europe and Africa. The aim is to have a constantly weighted portfolio comprising countries based on the arithmetical average of the country weighting in the MSCI Emerging Markets Index and on an absolute equal weighting of the investment countries. The countries not included in this index must not exceed a total of 15% of the fund s net assets. 13. Sarasin EmergingSar - Asia The assets of the Sarasin EmergingSar Asia subfund are invested in listed shares of companies domiciled in Asian emerging markets, in listed country and regional funds and listed index certificates and index futures as well as warrants on index certificates of Asian emerging markets. Emerging markets means the so-called developing countries. The aim is to have a constantly weighted portfolio comprising approximately 10 countries based on the 3

4 arithmetical average of the country weighting in the MSCI Emerging Markets Asia Index and on an absolute equal weighting of the countries of investment. The countries not included in this index must not exceed 15% of the fund s net assets. 14. Sarasin GlobalSar (EUR) The Fund seeks to achieve long-term capital growth with lower risk than pure equity funds. The Fund spreads the risk by actively moving between cash, bonds and equities. The result is a dynamic portfolio of high quality assets diversified across most of the major international markets, currencies and industries. The reference currency of the Fund is Euro. The Fund s aim is therefore to optimise investment performance in Euro. 15. EquiSar - Global The investment objective of Sarasin EquiSar is to achieve long-term capital growth by investing worldwide in equities. The bulk of investments are concentrated in liquid investments of companies with a market capitalisation in excess of EUR 1 billion. There is no prescription as to the geographic diversification of investments. s are allocated to the markets and sectors that are considered to provide the most attractive total yield in the long term. The Fund may also invest up to 15% of its net assets in convertible bonds or warrants, fixed- interest or floating-rate securities (including zero bonds) and other interest-bearing instruments as defined in the Directive of the Council of the European Union on the taxation of investment income. Liquid assets are permitted within the 15% restriction. 16. Sarasin OekoSar Equity - Global The assets of the Sarasin OekoSar Equity Global subfund are invested in securities of companies that show long-term commitment above and beyond national and international standards (including: standards relating to fair labour relations promoted by the International Labour Organisation; ISO standards; the principles of ethical and sustainable behaviour promoted amongst companies by the UN-sponsored Global Compact) and make a substantial contribution in environmental and social terms, whether indirectly or directly, to a variety of stakeholder groups (including employees, clients and society). As such, its core investments are in forwardlooking themes, sectors and activities, such as clean energy, efficient resource management, healthcare, water, sustainable consumption, sustainable mobility, services and innovative management systems. The focus of investments is on cuttingedge small and mid caps. 17. Sarasin OekoSar Portfolio The Fund invests globally in a broadly diversified selection of equity, fixedincome and variable-income securities. Its balanced portfolio is invested in companies and organisations that contribute to sustainable development. They distinguish themselves through their strategic focus on environmentally friendly, eco-efficient management and proactive relations with stakeholder groups (employees, customers, financial backers, shareholders, publicsector bodies etc.). The fund invests in market leaders who aim to capitalize on the concept of sustainable development. It does not invest in the tobacco, pornography, defence, nuclear energy, car, aircraft, chlorine or agrochemical industries. Sarasin OekoSar Portfolio is intended as a core investment for investors who wish to support environmentally friendly businesses without foregoing attractive returns. 16. Sarasin Real Estate Equity - Global (Distribution and Accumulation Share Classes Available): The Fund aims to achieve long-term capital growth by investing in the listed securities and participation certificates of companies whose activities are concentrated mainly in the property sector. This includes companies whose activity involves the acquisition, development and use of land, or companies that own land and buildings as a vehicle for generating income. This also includes closed REITs (Real Estate Trusts) or other comparable property management companies. In addition, other indirect forms of investment in real estate are possible as well. s are made on a global basis. Closed REITs or similar property management companies must be regulated by the supervisory authority of one of the following countries, and be traded on the relevant local stock market: OECD countries, as well as Hong Kong and Singapore. It should be noted that when investing in closed funds, the investor also indirectly incurs costs levied by these companies, such as management fees and charges. The subfund can also invest in convertible bonds and warrant-linked bonds, as long as a conversion or subscription right exists for investments that are compatible with the subfund s investment policy. s in interestbearing instruments as defined in the Directive of the Council of the European Union on the taxation of investment income, are limited to 15% (including cash) of the fund s net assets. The reference currency of the subfund is the euro. This means that the fund manager seeks to optimise investment performance in euro terms. 17. Sarasin Sustainable Equity - Global The Fund invests globally in a broadly diversified selection of equities. Its portfolio is invested in companies that contribute to sustainable development. They distinguish themselves through their strategic focus on environmentally friendly, eco-efficient management and proactive relations with stakeholder groups (employees, customers, financial backers, shareholders, publicsector bodies etc.). The Fund invests in market leaders who aim to capitalize on the concept of sustainable development. It does not invest in the tobacco, pornography, defence, nuclear energy, car, aircraft, chlorine or agrochemical industries. Sarasin ValueSar Equity is intended as a core investment for investors seeking a vehicle that prioritises environmentally friendly business, but also offers long-term growth potential. 4

5 SARASIN ISA An Individual Savings Account (ISA) is a tax-efficient way of saving. You can invest in either a Maxi ISA or a Mini ISA, but not both in the same tax year. Maxi ISA A Maxi ISA has a single Account Manager who is able to accept the whole subscription (currently 7,000 lump sum investment or 583 regular monthly savings per tax year). A Maxi ISA can have up to two components (stocks and shares and cash) A Maxi ISA must be made up of the stocks and shares component, and need not include the cash component. Mini ISA The Sarasin Mini ISA is made up of only one component (stocks and shares only). You can hold up to two mini ISAs with up to two different Managers in the same tax year, provided each mini ISA invests in a different type of investment (that is stocks/shares and/or cash) Please note You cannot open both a Maxi and Mini ISA in the same tax year. You can invest a lump sum or save a monthly amount. The amount you invest will depend on whether you opt for a Maxi or Mini ISA. You cannot transfer from a Mini to a Maxi ISA (or vice versa) in the same tax year. You cannot open two Mini ISAs that invest in the same component in the same tax year. The Sarasin ISA only offers the Stocks and Shares component of either the Maxi or Mini ISA. Sarasin Maxi ISA The minimum investment amount is 1,000 lump sum or 100 per month. The maximum investment amount is currently 7,000 lump sum (or 583 per month) per tax year. You can start or stop saving whenever you wish providing the remaining investment amount is 1,000. Sarasin Mini ISA The minimum investment amount is 1,000 lump sum or 100 per month. The maximum investment amount is currently 4,000 lump sum (or per month) per tax year (2005/6 onwards). You can start or stop saving whenever you wish providing the remaining investment amount is 1,000. You may select any number of the Sarasin on offer in this document to include within your ISA. There is no minimum investment period for the Sarasin ISA, though we would recommend that you view your investment as medium to long term (i.e. 5 to 10 years). DESCRIPTION OF THE INVESTMENT Q. Does the Sarasin ISA meet the Government s CAT Standards? A. CAT standards are a set of voluntary standards for Charges, Access and Terms that were introduced by the Government. A CAT standard ISA does not necessarily guarantee it will be the cheapest, best performing or more suitable. We believe it is in your best interest to seek the advice of a professional financial adviser before investing to determine the most suitable ISA for you. The charges levied by Sarasin make provision for financial adviser remuneration. Sarasin does not offer a CAT standard ISA. Q. Who can invest in an ISA? A. Anyone who is aged 18 or over and resident in the UK for tax purposes, or a Crown Employee serving overseas, can invest. ISAs cannot be held jointly, by companies, trustees or for children. Q. How do I invest? A. Lump Sum Please complete the application form and send it with a cheque made payable to Sarasin Ltd. to 50 Bank Street, Canary Wharf, London, E14 5NT. (correspondence address). Shares are purchased on a set dealing day, which is every business day. Please note all ISA subscriptions must be made in. All applications and cheques must be received by 5pm on the dealing day. Contract notes are sent within 48 hours of the dealing day. Regular Monthly Payments You should send a cheque for the first instalment from the Bank account that the Direct Debits will originate from. If you are unable to send a cheque please provide a recent bank statement instead. The statement should not be more than three months old. You should complete the application form and Direct Debit mandate and send it with a cheque for the first instalment to Sarasin Ltd., 50 Bank Street, Canary Wharf, London, E14 5NT (correspondence address). This will allow us to collect your monthly contribution on the 7th calendar day (or next business day) of each month. Shares will be created and paid for in accordance with the normal four working day settlement period and allocated ten days after. Shares are purchased using the prices of the 7th calendar day (or next business day) of each month. Purchases will only be credited to the account if your monthly contribution is successfully collected. Please note that you should allow time for your bank to set up your mandate before your first contribution is collected. Q. What forms of identification do I need to provide? A. When you invest with Sarasin, transactions in shares in our funds will be subject to Anti Money Laundering provisions of the European Council Directive 91/308/EEC, the rules set out in the UK FSA Sourcebook on Money Laundering, Criminal Justice Act 1993, the UK Money Laundering Regulations 1993, the Guidance Notes for the Financial Sector published by the Joint Money Laundering Steering Group (and all directives, regulations and guidance notes issued in substitution thereof or in amendment or addition thereto). This means that the Manager will therefore require verification of identity and address from any person applying for shares including, any Applicant for business who: (a) tenders payment by way of a cheque on an account in the name of a person or persons other than themselves, or if a building society cheque then must have investors name stated, or 5

6 (b) appears to the Manager to be acting on behalf of some other person. The Manager will have the right to request identification evidence from all parties to the transaction. The Manager may also use electronic checking systems to verify identity and other relevant data. The Manager may not proceed with the processing of the application if the supporting documentation is not provided to the Manager. The Manager does not have to provide a reason for any rejected application. Please note that redemption proceeds, income distributions and cash withdrawals will only be made payable to the Applicant and not to any other third party. Q. Can I choose to reinvest income? A. If you wish the income to be retained within the Sarasin OEIC sub-funds, you should purchase accumulation shares. Alternatively if you would like to receive income from the you should purchase income shares. For the Sarasin SICAV subfunds only distribution shares are available, however, if you wish to reinvest the distribution paid you may notify us of this requirement. It should be noted for the Sarasin Real Estate Equity (EUR) Accumulation B shares, the income is rolled up within the Fund and not available for distribution. As a consequence this share class does not have Distributor status. If a share class does not have distributor status, disposals of shares/units are charged to tax as income to reflect the fact that the increased value of the holding will derive to a significant extent from accumulated income. Shareholders should ascertain from their Financial Adviser, the consequences to them of acquiring, holding, redeeming, transferring, selling or converting shares under UK taxation laws. If you are in any doubt as to the tax implications of holding investments please consult your Financial Adviser or Tax Adviser. Q. How will I be paid my income? A. All the OEIC sub-funds and Guernsey Unit Trusts pay dividends twice a year except for the Sarasin International Equity Income Fund, Sarasin UK Equity Income Fund and Sarasin CI Income Portfolio which pay quarterly. The Luxembourg SICAV sub-funds pay dividends annually. Income is paid net for the OEIC sub-funds and gross for the Guernsey Unit Trusts and Luxembourg SICAV sub-funds by cheque to the address specified on the application form when the original investment was made or directly to the bank account details that are specified on your Mandate Application Form. Dividends for the OEIC sub-funds are normally paid on 28th February (or 29th February if there is a leap year) and 31st August (30th November and 31st May for quarterly paying ). Dividends for the Guernsey Unit Trusts are normally paid on 17th Jan and 17th July (17th April and 17th Sept for quarterly paying ). Dividends for the SICAV sub-funds are normally paid at the end of January. Q. Can I switch my investment between funds? A. Switches between the Sarasin do not incur a charge and can be made without losing your tax free benefits. A switch can be arranged upon written request. Q. What documentation will I receive? A. For lump sum investments you will be sent a contract note showing the number of shares allocated to you every time you invest and you will receive a six monthly statement. For regular savings you will receive an initial confirmation and further details of your monthly investments will be shown on your six monthly statement. Q. How do I sell my investment? A. Any investment within the may be redeemed at any time by written request. You may redeem part of the holding or the entire holding (providing the amount remaining is not less than 1,000). The shares will be sold at the next valuation point following receipt of your dealing instruction and proceeds will usually be paid after 4 working days providing all the necessary documents have been received. Please note that redemption proceeds will only be made payable to the Applicant and not to any other third party. TRANSFERRING AN ISA OR PEP TO SARASIN Q. How do I transfer my existing PEP or ISA? A. Please complete the appropriate PEP or ISA Transfer Form and send it to Sarasin Ltd, 50 Bank Street, Canary Wharf, London, E14 5NT (correspondence address). We will contact your existing PEP or ISA Manager and arrange to transfer your investment directly into the Sarasin fund(s) of your choice. Providing your existing ISA or PEP is transferred directly to Sarasin you will not lose your tax benefits. Q. What documentation will I be sent on my Sarasin PEP or ISA? A. We will send you a letter acknowledging receipt of your Transfer Form, followed by confirmation that the transfer is complete. You will also receive a six monthly statement. Q. What forms of identification do I need to provide? A. When you invest with Sarasin, transactions in shares in our funds will be subject to Anti Money Laundering provisions of the European Council Directive 91/308/EEC, the rules set out in the UK FSA Sourcebook on Money Laundering, Criminal Justice Act 1993, the UK Money Laundering Regulations 1993, the Guidance Notes for the Financial Sector published by the Joint Money Laundering Steering Group (and all directives, 6 (c) (d) regulations and guidance notes issued in substitution thereof or in amendment or addition thereto). This means that Sarasin will therefore require verification of identity and address from any person applying for shares including, any Applicant for business who: tenders payment by way of a cheque on an account in the name of a person or persons other than themselves, or appears to Sarasin to be acting on behalf of some other person. Sarasin will require identification evidence from all parties to the transaction. We may also use electronic checking systems to verify identity and other relevant data. Sarasin may not proceed with the processing of the application if the supporting documentation is not provided to Sarasin. Sarasin does not have to provide a reason for any rejected application. Please note that redemption proceeds, income distributions and cash withdrawals will only be made payable to the Applicant and not to any other third party.

7 HOW WILL CHARGES AND EXPENSES AFFECT MY INVESTMENT Annual Management Charge UK OEIC Sub- 1. Sarasin EquiSar Global Thematic 1.50% (A shares) 2. Sarasin GlobalSar IIID Fund 1.00% (C shares) 3. Sarasin EquiSar IIID Fund 1.25% (A shares) 4. Sarasin Real Estate Equity IIID Fund 1.25% (A shares) 5. Sarasin International Equity Income 1.50% (A shares) 6. Sarasin UK Equity Income Fund 1.50% (A shares) Guernsey Unit Trusts 7. Sarasin CI Real Estate Equity (GBP) 1.50% 8. Sarasin CI Income Portfolio 1.25% 9. Sarasin CI GlobalSar Sterling 1.50% 10. Sarasin CI EquiSar Sterling 1.50% Annual Management Charge Luxembourg SICAV 11. Sarasin BondSar Euro 0.90% 12. Sarasin EmergingSar 1.50% plus a performance-related fee (1) 13. Sarasin GlobalSar (EUR) 1.50% 14. Sarasin EquiSar SICAV 1.50% 15. Sarasin OekoSar Portfolio 1.75% 16. Sarasin Real Estate Equity (EUR) 1.50% 17. Sarasin Sustainable Equity 1.75% (1) The performance-related fee amounts to 15% of annual appreciation in excess of 6% up to December 31, 2000 and 12% p.a. thereafter. HOW WILL CHARGES AND EXPENSES AFFECT MY INVESTMENT? There is an initial charge for the of up to 5% except for Sarasin CI Income Portfolio which is 4% and BondSar Euro which is 3.5% but there is no redemption fee. The Manager s annual management fee for each fund is stated on page 6. In addition there are a number of fees and expenses that are deducted from the value of the. These include the Depositary fees, custodian fees, registrar s fees, audit fees and regulatory fees, which are deducted when they become due. All figures are based on information correct as at for the UK sub-funds of Sarasin ICVC (except for Sarasin UK Equity Income Fund & Sarasin Real Estate Equity IIID Fund which are as at ) and the Guernsey Unit Trusts and for the subfunds of Sarasin fonds SICAV. Dealing costs are not included. It should be noted that in respect of the following, the charges, costs and expenses attributable to the relevant Fund may be charged to its capital account in the following proportions which may constrain capital growth: 100% - Sarasin International Equity Income Fund, Sarasin UK Equity Income Fund 80% - Sarasin GlobalSar IIID Fund (from 2 nd May 2006), Sarasin Sterling Bond Fund, Sarasin CI GlobalSar Sterling, Sarasin CI Real Estate Equity (GBP) and Sarasin CI Income Portfolio 60% - Sarasin EquiSar IIID Fund, Sarasin Real Estate Equity IIID Fund, Sarasin EquiSar Global Thematic Fund and Sarasin CI EquiSar Sterling Pricing: For the UK OEIC subfunds and Luxembourg SICAV subfunds a share of any class has a single mid market price. This is calculated by taking the proportion of the value of the scheme property that is attributable to a share class, including cash and debtors, deducting the amount of any liabilities and dividing by the number of shares of that class in issue. An initial charge is added to the purchase price. In certain circumstances a dilution levy may be applied at the discretion of the ACD to purchases or sales. This charge is added to the funds to offset the effects of trading on a single, mid price basis. For the Guernsey Unit Trusts there is a buying price and a selling price (bid/offer) and the difference between them is called the spread. The latest prices are available from the Financial Times under the Managed Section. ISA: The effect of charges on a lump sum investment of 1,000 and a regular savings investment of 100 per month into an ISA assuming a growth of 7% a year, is set out below. PEP transfer: The effect of charges on a lump sum investment of 1,000 assuming a growth of 7% a year, is set out below. These figures are not guaranteed and serve only to demonstrate the effect of charges and expenses on an investment. These figures are not minimum or maximum amounts. What you get back depends on how the investment grows. You could get back more or less than this. All investment managers use the same rates of growth for illustrations but their charges vary. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. If the shares or shares in which you invest are denominated in a currency other than Sterling the investment return could be affected by fluctuations in exchange rates. Sarasin EquiSar Global Thematic Fund (A shares - lump sum) Initial Charge 5%, Annual and Administration Charges 1.72%, Gross Income Yield 0.18% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,573 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 389 for income shares and 394 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.63% for distribution shares and to 4.63% for accumulation shares. 7

8 Sarasin GlobalSar IIID Fund (A shares - lump sum) Initial Charge 5%, Annual and Administration Charges 1.83%, Gross Income Yield 2.28% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,556 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 379 for income shares and 411 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.46% for distribution shares and to 4.52% for accumulation shares. Sarasin EquiSar IIID Fund (A shares - lump sum) Initial Charge 5%, Annual and Administration Charges 1.88%, Gross Income Yield 0.14% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,548 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 417 for income shares and 419 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.46% for distribution shares and to 4.47% for accumulation shares. Sarasin Real Estate Equity IIID Fund (A shares - lump sum) Initial Charge 5%, Annual and Administration Charges 1.57%, Gross Income Yield 2.00% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , , ,597 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 345 for income shares and 370 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.74% for distribution shares and to 4.79% for accumulation shares. Sarasin International Equity Income Fund (A shares - lump sum) Initial Charge 5%, Annual and Administration Charges 1.87%, Gross Income Yield 2.18% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,550 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 386 for income shares and 417 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.42% for distribution shares and to 4.48% for accumulation shares. Sarasin UK Equity Income Fund (A shares - lump sum) Initial Charge 5%, Annual and Administration Charges 1.82%, Gross Income Yield 4.00% At End Effect of Income to What you might Effect of What you might 1 1, , , ,557 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 315 for income shares and 410 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.29% for distribution shares and to 4.53% for accumulation shares. 8

9 Sarasin CI Real Estate Equity (GBP) (lump sum) Initial Charge 5%, Annual and Administration Charges 1.87%, Gross Income Yield 2.68% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,550 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 379 for income shares and 417 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.41% for distribution shares and to 4.48% for accumulation shares. Sarasin CI Income Portfolio (lump sum) Initial Charge 4%, Annual and Administration Charges 1.62%, Gross Income Yield 4.04% At End Effect of Income to What you might Effect of What you might 1 1, , , , ,589 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 329 for income shares and 378 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.63% for distribution shares and to 4.74% for accumulation shares. Sarasin CI GlobalSar Sterling Fund (lump sum) Initial Charge 5%, Annual and Administration Charges 1.87%, Gross Income Yield 2.28% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,550 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 385 for income shares and 417 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.42% for distribution shares and to 4.48% for accumulation shares. Sarasin CI EquiSar Sterling Global Thematic Fund (lump sum) Initial Charge 5%, Annual and Administration Charges 1.87%, Gross Income Yield 0.70% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,550 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 407 for income shares and 417 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.46% for distribution shares and to 4.48% for accumulation shares. Sarasin BondSar EUR (lump sum) Initial Charge 3.5%, Annual and Administration Charges 1.27%, Gross Income Yield 3.10% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,211 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 265. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 5.22%. 9

10 Sarasin EmergingSar - Global (lump sum) Initial Charge 5%, Annual and Administration Charges 1.78%, Gross Income Yield 0.0% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,564 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 403. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.57%. Sarasin EmergingSar - Asia (lump sum) Initial Charge 5%, Annual and Administration Charges 1.85%, Gross Income Yield 0.0% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,484 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 414. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.50%. Sarasin GlobalSar (EUR) (lump sum) Initial Charge 5%, Annual and Administration Charges 1.82%, Gross Income Yield 2.30% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,221 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 377. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.47%. Sarasin EquiSar - Global (lump sum) Initial Charge 5%, Annual and Administration Charges 1.78%, Gross Income Yield 0.20% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,531 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 400. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.57%. Sarasin OekoSar Equity - Global (lump sum) Initial Charge 5%, Annual and Administration Charges 2.30%, Gross Income Yield 0.0% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,484 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 483. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.03%. 10

11 Sarasin OekoSar Portfolio (lump sum) Initial Charge 5%, Annual and Administration Charges 2.04%, Gross Income Yield 0.50% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,445 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 435. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.28%. Sarasin Real Estate Equity - Global (lump sum) Initial Charge 5%, Annual and Administration Charges 1.97%, Gross Income Yield 0.0% At End Effect of Income to What you might Effect of What you might 1 1, , , , , , ,545 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 387 for income shares and 422 for accumulation shares. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.38% for distribution shares and to 4.45% for accumulation shares. Sarasin Sustainable Equity - Global (lump sum) Initial Charge 5%, Annual and Administration Charges 2.09%, Gross Income Yield 0.0% Distribution shares At End Effect of Income to What you might of Year to Date deductions to date Date get back* 1 1, , , ,516 The last line in the table shows that over 10 years the effect of the total charges and expenses could amount to 451. Putting it another way this would have the same effect as reducing the investment growth from 7% a year down to 4.25%. HOW MUCH WILL ANY ADVICE COST? Your adviser will give you details about the cost. The amount will depend on the size of your investment and the length of the time that you hold the investment. It will be paid for out of the charges. Currently, Sarasin pay initial commission to certain intermediaries, which is paid for out of the initial charge. In certain circumstances we also pay a renewal commission, which is paid quarterly and is based on the value of the shares held within your account. Renewal commission is paid for out of the Manager s annual fee. 11

12 FURTHER INFORMATION 1. Sarasin Limited will act as the appointed PEP/ISA Manager. Sarasin has appointed Northern Trust International Fund Administation (UK) Limited as administrator of the Sarasin PEP and ISA. The service provided is an execution only dealing service in UK OEICs, Guernsey Unit Trusts and SICAV. We do not provide advice. If you need advice you should contact an Independent Financial Adviser. 2. The latest prices and yields are published daily in the Financial Times under the Authorised section and on the Sarasin website 3. Shares are purchased and sold following acceptance of your written instructions. The prices of shares are calculated every day based on the prices at the close of business on the previous day (the valuation point) for all funds with the exception of the UK OEIC sub-funds and the Guernsey Unit Trusts which are valued at midnight. Sarasin adopts a forward pricing policy, which means that the price at which shares are bought or sold is determined at the valuation point after your deal is placed. 4. Currently any gains made on your ISA investment are entirely free of income tax and capital gains tax. As of 6 April 2004, you are no longer able to reclaim the 10% tax credit on dividend distributions. However, income tax deducted at source from interest on bond investments remains at 20% and can be reclaimed in full. Sarasin will make these tax reclaims for you. Please note however, that we are unable to reclaim tax credits attached to foreign income dividends or any equalisation distributed as income. 5. In certain circumstances a dilution levy may be applied at the discretion of the ACD to purchases or sales of the Sarasin UK OEIC sub-funds. This charge is added to the funds to offset the effects of trading on a single, mid price basis and to safeguard the long term interests of existing shareholders. Full details on this policy are available in the Sarasin ICVC Prospectus. 6. You may have the right to cancel your investment, but only if you have received advice from Sarasin Management Ltd. or another Authorised Person (e.g. a financial adviser). For regular savings investments you will receive notice of your right to cancel the entire instruction required by law after receipt of your application form and direct debit instruction. For lump sum investments, you will receive a cancellation notice each time you invest and your application is accepted. You will have 14 days from the day of your receipt of the completed cancellation notice in which to cancel your investment. Cancellation will be made at the price of the next dealing point after we receive your cancellation notice. You should note that if you exercise your right to cancel, the value of your investments could fall between investment and cancellation. In the case of higher risk funds, such a fall in value could be substantial. In such instances you will receive less than you had originally invested. 7. Any subscription where an Application Form or dealing instructions are not received after 24 hours is held in a client money account. Where we are awaiting the appropriate renunciation documents for redemptions, the redemption proceeds are held in an account with the Royal Bank of Scotland until the necessary documentation is received. In both cases the monies will not receive interest. 8. If you wish to make a complaint regarding your ISA or PEP investment, you can write to Sarasin Limited at Juxon House, 100 St. Paul's Churchyard, London, EC4M 8BU, Tel: or your complaint to compliance@sarasin.co.uk. Complaints by eligible complainants which we cannot settle, may be referred to the Financial Ombudsman Service. More details about Sarasin s complaints procedure and the Financial Ombudsman Services are available from Sarasin at the above address. 9. We are covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Most types of investment business are covered for 100% of the first 30,000 and 90% of the next 20,000 so the maximum compensation is 48,000. Further information about compensation arragements is available from the Financial Services Compensation Scheme. DATA PROTECTION Sarasin is committed to maintain your personal data in accordance with the requirements of data protection/data privacy legislation and will take all reasonable steps to ensure that your personal data is kept secure against any unauthorised user. All information obtained from or about you will be processed by Sarasin, whose server may be located with the parent company in Switzerland, its associated companies and, if applicable, to your designated financial adviser. This transfer is necessary to allow us to administer the service for which you have applied or may apply for in the future. than those already indicated, without your permission or unless required by law. We may also use the information held about you, to tell you about our other products and services that may be of interest to you, by mail. However, if you do not wish to receive such information at the time, you will have the opportunity to opt out from receiving such information when you complete our application form. Your data may be held on computer or in any other secured filing method and it may be transferred by electronic media including the internet. Your information will be held in confidence and not passed to any company, other 12