Key Features of the Jupiter ISA

Transcription

1 Key Features of the Jupiter ISA Tax Year 2000/2001 AIMS The Jupiter Individual Savings Account (ISA) provides an easy tax efficient means of buying units in the authorised unit trusts managed by Jupiter Unit Trust Managers Limited ( Jupiter ). The Jupiter Funds available within the Jupiter ISA, together with their objectives and investment policy, are as follows: Jupiter Corporate Bond Fund To achieve high income and the opportunity for capital growth, primarily through investment in fixed interest securities, as well as convertibles and preference shares, with the potential for international exposure. Jupiter Ecology Fund To invest world-wide in companies which demonstrate a positive commitment to the long term protection of the environment. Jupiter Environmental Opportunities Fund To achieve long term capital growth from a portfolio primarily invested in UK equities considered by the Manager to be responding positively to and profiting from the challenges of environmental sustainability or are making a positive commitment to social well being. Jupiter European Fund To achieve long term capital growth from investment in companies quoted on a European Stock Exchange. Jupiter European Special Situations Fund To achieve long term capital growth by exploiting special situations by investing principally in European equities, in investments considered to be undervalued. Jupiter Far Eastern Fund To achieve long term capital growth by investing directly or indirectly in Asian and Pacific Basin markets primarily in companies with interest in Asia and the Pacific Basin including Japan. Jupiter Financial Opportunities Fund To achieve long term capital growth through investment in equities of financial sector companies on an international basis. Jupiter Fund of Investment Trusts ( JFIT ) To achieve long term capital growth through investment principally in investment trusts and other closed end investment companies listed on the London Stock Exchange. Jupiter Global Opportunities Fund To achieve long term capital growth principally through investment in equities on an international basis. Jupiter Global Technology Fund To achieve long term capital growth through investing principally in equities on an international basis, in a wide range of companies which are either active in, or benefit from the technology, media or telecoms industries. Jupiter Growth & Income Fund To achieve long term capital growth and income through investing principally in UK equities. Jupiter High Income Fund To achieve a high and rising income with capital growth from investment principally in UK equities and convertibles. Jupiter Income Trust To invest principally in the United Kingdom to achieve a high and growing income. Jupiter Monthly Income Fund To achieve a high level of sustainable income with prospects of capital growth through investing primarily in the UK principally in equities via various classes of investment trust securities with some exposure to fixed interest securities. Jupiter North American Fund To achieve long term capital growth by investing primarily in North American securities. Jupiter UK Growth Fund To obtain long term capital growth from investment principally in UK equities. Jupiter UK Smaller Companies Fund To achieve long term capital growth by investing primarily in UK smaller companies by investing in high quality smaller companies which the Manager believes to have significant growth potential over the medium to long term. Jupiter UK Special Situations Fund To achieve capital growth by exploiting special situations, investing principally in UK equities considered to be undervalued. Jupiter Undervalued Assets Fund To achieve long term capital growth by investing in companies which the manager believes have recovery potential and considers to be undervalued, primarily in UK equities with the potential for some overseas exposure. Jupiter Cash Fund To achieve a high level of income combined with a high degree of security. YOUR INVESTMENT The Jupiter Funds ( Fund(s) ) are authorised unit trusts schemes under the Financial Services Act 1986 and are constituted by trust deeds. They are securities funds as defined by Financial Services (Regulated Schemes) Regulations 1991 and wider range investments under the Trustee Investments Act 1961, with the exception of the Jupiter Cash Fund which is a money market fund and narrower range investment. Units in the Funds are either income units or accumulation units denominated in pounds Sterling, apart from the Jupiter Monthly Income Fund which issues both income and accumulation units. Each holder of a unit in a Fund is entitled to participate in the property of the Fund and the income thereof. In respect of income units, the net income available for distribution, if any, is taken out of price of units at the Fund s xd date and either distributed to unitholders or used to purchase further units, depending on their preference. In respect of accumulation units, the net income available for distribution, if any, is not taken out of the price of units at the Fund s xd date and is therefore retained within the Fund. There are five types of ISA option: Dynamic Growth The aim of the Option is to achieve long term capital growth through investing in equities on an international basis, with an emphasis on investing in stocks within potential high growth industries. To achieve this your initial investment will be split equally between the Jupiter European Special Situations Fund, the Jupiter UK Smaller Companies Fund and the Jupiter Global Technology Fund. Investors should be aware that there are greater risks associated with shares held in this option due to the potential volatility of the market sectors into which the funds within the option invests. Income The aim of the Option is to achieve a high and rising income with capital growth. To achieve this your initial investment would be divided equally between the Jupiter Income Trust, Jupiter Growth & Income Fund and the Jupiter High Income Fund. Distributions will be made in February, May, June, August, November and December. Growth The aim of the Option is to provide investors with a diversified growth portfolio in UK, European and international investments. To achieve this your initial investment would be split 25% in each of the following Jupiter UK Special Situations Fund, Jupiter UK Growth Fund, Jupiter European Fund and the Jupiter Fund of Investment Trusts. International The aim of the Option is to achieve capital growth through investment in a concentrated international portfolio, providing investment in international equities including the financial and property sectors. To achieve this your initial investment will be divided equally between the Jupiter Global Opportunities Fund and the Jupiter Financial Opportunities Fund. Pick Your Own The aim of this Option is to provide you with the opportunity to select your own asset allocation. You may select any number of the Jupiter Funds offered. There are five methods of investing: 1. Lump Sum investment. For investors wishing to make a lump sum investment, the minimum amount is 1,000 apart from investors wishing to receive monthly income from the Jupiter Monthly Income Fund where the minimum is 5,000. The maximum amount is set out in the tables overleaf. 2. Regular Monthly Savings. You may contribute regular amounts each month for investment in the Fund(s) of your choice. The minimum amount is 50 per month. The maximum amount is set out in the tables overleaf. 3. Dividend Re-Investment. The dividends you receive from your investment can be re-invested to increase your existing holding without counting towards your annual subscription limit. (Dividends are referred to in more detail under Distributions.) 4. Transfer. You may transfer an existing ISA from another ISA manager to Jupiter. The ISA to be transferred must be in cash at the point of transfer. (Transfers are referred to in more detail under How do I invest ). 5. Maturing TESSAs. You may transfer the capital element of your maturing TESSA to the cash component of the Jupiter Maxi ISA. This will not count towards your annual subscription. This means you are free to subscribe for the Jupiter ISA in line with above limits. TESSAs are referred to in more detail under Transfer of maturing TESSAs. RISK FACTORS Risks applicable to all Jupiter Funds The investments in a Fund s portfolio are subject to normal stock market fluctuation and other risks inherent in all investments. There can be no assurance that capital appreciation will occur in the early years as initial charges are levied on your initial investment and are not made uniformly throughout the life of the investment. You should therefore regard your investment as long term. Some charges (e.g. management fees) may be charged to capital. In such circumstances the income and the quoted yield will be boosted but the capital growth will be restrained. The value of investments, and the income from them may go down as well as up and an investor may not be able to realise the full amount of the original investment. Quoted yields are for illustrative purposes only and are not guaranteed. Past performance is not necessarily a guide to future performance. Changes in exchange rates between currencies may cause the value of your investment to increase or diminish. The risk is greater in relation to investment in emerging market countries which may experience political and economic changes. Investors should be aware that the current favourable tax treatment of ISAs may not be maintained and may be subject to future government legislation. Investors who transfer their ISA to Jupiter should be aware that there are risks associated with taking advantage of their cancellation option (if available to them). You may not get back the value of the transfer as received from the previous plan manager if the price of units falls between the date of investment and the date the cancellation notice is received by Jupiter. The ISA tax status of the investment may be lost if Jupiter is instructed to return the proceeds directly to you. Investors should also be aware that there is a potential for loss of income and growth, following a rise in markets, whilst the ISA transfer remains pending, awaiting instruction. For full details, refer to the section What cancellation rights do I have? Additional risks specific to Jupiter Monthly Income Fund The Fund invests mainly in a range of income shares of split capital investment trusts. Split capital trusts are, in general, more highly geared than conventional investment trusts and have, by definition, a wind-up date. There can be no guarantee that predetermined payment prices of shares in split capital trusts on wind-up dates will be achieved. The ultimate repayment price of these shares depends on the value of the underlying holdings. However, the Manager of the Fund will hold and actively switch between income shares to not only provide a high level of income, but collectively provide you with the best prospect of capital security. Up to 20% of the portfolio may be held in higher yielding bonds. These have an

2 increased risk of capital erosion due to a higher possibility of default by the bond issuer. Changing market conditions and interest rate levels can also have a larger impact on the values of high yielding bonds than on other bonds. Due to the overall structure of the portfolio, the level of monthly income payments will not be constant and will fluctuate. Additional risks specific to Jupiter Global Technology Fund Investors in the Fund should be aware that there are greater risks associated with the shares held in this type of fund, due to the potential volatility of the market sectors in which the fund invests. PRINCIPAL FEATURES How do ISAs work? Background to ISAs From 6th April 1999 you have not been able to subscribe to a Personal Equity Plan (PEP) or open a new Tax Exempt Special Savings Account (TESSA). To replace them the government introduced Individual Savings Accounts (ISAs or Accounts). The Accounts were set up under The Individual Savings Accounts Regulations 1998 (Statutory Instrument 1998 number 1870, as amended from time to time). There are three types of ISA: MAXI ISA MINI ISA TESSA ONLY ISA Maxi ISAs may be invested in: an investment component (made up of stocks and shares) a cash component an insurance component. A Maxi ISA must include the investment component, and may include a cash and/or insurance component. Investors need not subscribe to each component, and can only invest with one Maxi ISA manager in a tax year. Once an investor has invested in a Maxi ISA they cannot invest in individual Mini ISAs in the same tax year. Mini ISAs may be invested individually in: an investment component (made up of stocks and shares) a cash component an insurance component An investor can invest with up to three different Mini ISA managers in a tax year. The main reason why a distinction has been made between Maxis and Minis is to enable investors the facility to either place the whole of their annual contribution into an ISA with one ISA manager (Maxi) or to subscribe with different ISA managers for individual components (Minis). The one-isa-a-tax-year rule In each tax year, subject to certain limits, investors may subscribe to: one Maxi ISA, or one of each of the individual Mini ISAs The Jupiter ISA The Investment component of your ISA can be made up of any of the Jupiter Funds as listed, excluding the Jupiter Cash Fund. The cash component of the Jupiter ISA comprises the Jupiter Cash Fund only. The Jupiter ISA does not contain an insurance component. Maxi & Mini ISAs Jupiter offers the investment and cash components of a Maxi ISA should you choose to have one ISA manager. Jupiter also offers Mini ISAs with single components for investment and cash should you choose to have separate managers in a financial year. CAT standards The Jupiter ISA does not aim to meet the CAT standard (Charges, Access and Terms). A CAT standard ISA does not necessarily mean it is suitable for your circumstances or that the product is the best performing in the market. Our aim is to achieve the best possible investment returns. For further information on the CAT standard you should consult your financial adviser. For maturing TESSA holders Jupiter do not offer a TESSA only ISA, however investors can transfer the capital element of their maturing TESSA into the Jupiter Cash Fund. The capital element of such a transfer will not count towards the subscription limits. Transfers of maturing TESSAs are referred to in more detail later. How much can I invest? With the exception of investment in income units in the Jupiter Monthly Income Fund, the minimum lump sum investment amount is 1,000 into either the Jupiter Maxi ISA or the Jupiter Mini ISAs. Alternatively you can contribute regular amounts each month, the total minimum amount being 50 per month. See Table 1 for the subscription details: TABLE 1 Maxi ISA Mini ISA Tax year 2000/2001 Lump Sum Regular Savings Lump Sum Regular Savings Total Investment Up to 7,000 Up to 583 per Up to 3,000 Up to 250 per month month Cash Up to 3,000 Up to 250 per Up to 3,000 Up to 250 per month month Note: The maximum total subscription into the Jupiter Maxi ISA is 7,000 for the tax year 2000/2001. The maximum total subscription into Jupiter Mini ISAs is 6,000 for the tax year 2000/2001. Subscription can only be made into the investment and cash components through the Jupiter ISA. An insurance component is not provided within the Jupiter ISA. The amounts specified may be subject to regulatory change from year to year. Investors into the Jupiter Monthly Income Fund should note that if they wish to receive monthly income they must invest in income units and the initial investment must be for a minimum of 5,000. Investors who wish to take advantage of this facility must complete the Income Payment box on the application form as income can only be paid directly into a bank account. Lump sum investments into the Jupiter Monthly Income Fund between 1,000 and 4,999, together with any regular savings contributions, will be automatically invested into accumulation units. How do I invest? Applications in Writing Complete the application form and return it to Jupiter with your cheque for the amount you wish to invest and/or complete the direct debit form if you wish to contribute regular monthly amounts. You may, if you wish, pay by Switch/Delta card by completing the appropriate box on the application form. Missing information from your application must be supplied to us within 30 days. Failure to do so may lead to your application being voided. Telephone Applications You can make applications over the telephone, providing you are applying for your own Jupiter ISA. Jupiter will require your full name, permanent residential address, National Insurance number and date of birth. You must also make it clear if the investment is to be made into the Jupiter Maxi ISA or into an individual Jupiter Mini ISA. Telephone applications can only be accepted if investors pay with a Switch/Delta card. On receipt of a non written application, Jupiter will send a copy of a written declaration to the investor which will confirm all the details provided by the investor in the application. The investor has 30 calendar days from the date the declaration is sent to notify Jupiter of any corrections. Failure to do so within the 30 days may lead to your plan being revised or voided. General An initial application for units in the Account should be for a minimum value of 1,000 if it is a lump sum, however investors into the Jupiter Monthly Income Fund should refer to the section How much can I invest? Any subsequent investment must be for a minimum of 500. Applications for the Account may be made direct to Jupiter or through an authorised intermediary at no extra cost to the investor. Jupiter pays a maximum commission rate of 3% to authorised Independent Financial Advisers, apart from investors in the Jupiter Cash Fund, where no commission is paid. Dealing in the Account takes place daily during normal working hours. The Funds are valued at 2.00pm and are dealt on a forward pricing basis, i.e. at the next buying price quoted after receipt of instructions to purchase units. Applications for investment into the Account received before 2.00pm each dealing day will be effected on that day at the price calculated at the valuation point. Applications received after 2.00pm will be effected at the valuation point on the following dealing day. If, for any reason, your lump sum investment cannot be dealt within the above timescales, your subscription will either be returned to you or retained in a non interest bearing client account, pending allocation. Contributions into the monthly savings plan may be in addition to, or instead of, a lump sum contribution. The minimum monthly contribution is 50 and it must be paid by direct debit. We will collect your monthly contribution from your bank or building society account on the last business day of each month. If a completed direct debit is received after the 15th of the month, the first payment will be requested on the last working day of the following month. We will normally invest your contribution to your monthly savings plan on the day of receipt. Direct debit amendments or cancellations for the next collection date must be received before the 20th of that month. Instructions received after the 20th will be effective for the following month s collection. Transfer in If you wish to transfer to Jupiter an ISA taken out with another ISA manager in the current 2000/01 tax year, you must transfer the whole amount. The transfer will be placed into a Jupiter Maxi or Jupiter Mini ISA depending on the original investment type. If you wish to transfer to Jupiter, part or the whole of an ISA taken out with another ISA manager in the previous tax year, the transfer will only be placed into the Jupiter Maxi ISA regardless of whether the original investment was made into a Maxi or Mini ISA with your previous ISA manager. Regardless of the tax year in which the original investment was made, your transfer must be for cash at the point of transfer and can only be made into the same investment component or cash component. The net amount transferred will normally be invested in the Fund(s) of your choice at the next valuation point following receipt of cleared funds. Should your account be transferred to us in a number of specific payments each such payment shall be invested at the next valuation point following receipt of cleared funds. Amounts under 20 will not be accepted and will be returned to the previous manager. If you wish to transfer an ISA to Jupiter, please complete the attached application form and return it to us. Transfer of maturing TESSAs You may transfer the capital element deposited (not the interest) of your maturing TESSA to the cash component of the Jupiter ISA within 6 months of the TESSA maturity date. This transfer will not count towards your annual subscription, and means you are free to subscribe to the Jupiter ISA in line with above limits. Investors can transfer to the cash component of the Jupiter ISA, amounts up to the value of the maturity certificate in more than one payment provided payments are made within six months of maturity of your TESSA. Investors wishing to take advantage of this facility should complete a TESSA transfer application form specifically for this purpose. Investors should obtain a maturity certificate from their TESSA operator and send it with a cheque and completed application form to Jupiter. Jupiter will not process the application unless it is received with a cheque and maturity certificate. Who manages the ISA? The Manager of the Jupiter ISA is Jupiter Unit Trust Managers Limited, a wholly owned subsidiary of Jupiter International Group PLC. Jupiter International Group PLC (a subsidiary of Commerzbank AG one of Germany s leading banks) is an international investment management group with offices in Hong Kong, Bermuda and London. Jupiter Unit Trust Managers Limited is regulated by the Investment Management Regulatory Organisation Limited ( IMRO ) and the Personal Investment Authority and is a member of AUTIF. The Trustee of the Funds is the Royal Bank of Scotland plc who holds the Title to the Funds investments on behalf of the unitholders. The Royal Bank of Scotland plc was incorporated in Scotland as a public limited company on 31st October Its ultimate holding company is The Royal Bank of Scotland Group plc, a company incorporated in Scotland. The Royal Bank of Scotland plc is regulated by the Personal Investment Authority and is also regulated by IMRO and the Securities and Futures Authority.

3 HOW WILL CHARGES AND EXPENSES AFFECT MY INVESTMENT? Jupiter Corporate Bond Fund A management fee equating to 1% per annum of the net assets will be deducted from FSA fees) which amount to approximately 0.4% p.a. of the net assets of the Fund; which is currently a maximum of 5%. This spread includes the initial charge of 4%. Jupiter Ecology Fund and FSA fees) which amount to approximately 0.19% p.a. of the net assets of the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter Environmental Opportunities Fund Fund will bear other expenses (trustee fees and expenses, registrar fees, audit fees and FSA fees) which amount to approximately 0.19% p.a. of the net assets of the Fund; these are paid when due, although they are accrued daily within the price. All charges and expenses are charged to income. The rate of expenses is reduced by any tax relief available. Units are purchased at the buying price and redeemed at the selling price. The difference between these two prices is the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter European Fund and FSA fees) which amount to approximately 0.29% p.a. of the net assets of the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter European Special Situations Fund and FSA fees) which amount to approximately 0.36% p.a. of the net assets of the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Far Eastern Fund and FSA fees) which amount to approximately 0.5% p.a. of the net assets of the Fund; which is currently 6%. This spread includes the initial charge of 5%. Jupiter Financial Opportunities Fund and FSA fees) which amount to approximately 0.36% p.a. of the net assets of the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Fund of Investment Trusts and FSA fees) which amount to approximately 0.77% p.a. of the net assets of the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Global Opportunities Fund and FSA fees) which amount to approximately 0.39% p.a. of the net assets of the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Global Technology Fund and FSA fees) which amount to approximately 0.39% p.a. of the net assets of the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Growth & Income Fund and FSA fees) which amount to approximately 0.55% p.a. of the net assets of the Fund; these are paid when due, although they are accrued daily within the price. Where appropriate, charges and expenses are charged to income, however, management fees may be charged to capital. Units are purchased at the buying price spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter High Income Fund FSA fees) which amount to approximately 0.39% p.a. of the net assets of the Fund; these are paid when due, although they are accrued daily within the price. Where appropriate, charges and expenses are charged to income, however, management fees may be charged to capital. Units are purchased at the buying price and redeemed at the selling price. The difference between these two prices is the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Income Trust FSA fees) which amount to approximately 0.23% p.a. of the net assets of the Fund; these are paid when due, although they are accrued daily within the price. Where appropriate, charges and expenses are charged to income, however, management fees may be charged to capital. Units are purchased at the buying price and redeemed at the selling price. The difference between these two prices is the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter Monthly Income Fund FSA fees) which amount to approximately 0.39% p.a. of the net assets of the Fund; these are paid when due, although they are accrued daily within the price. Where appropriate, charges and expenses are charged to income, however, management fees may be charged to capital. Units are purchased at the buying price and redeemed at the selling price. The difference between these two prices is the spread, which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter North American Fund FSA fees) which amount to approximately 0.74% p.a. of the net assets of the Fund; which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter UK Growth Fund FSA fees) which amount to approximately 0.36% p.a. of the net assets of the Fund; and expenses are charged to income. Units purchased at the buying price and redeemed at the selling price. The difference between these two prices is the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter UK Smaller Companies Fund FSA fees) which amount to approximately 0.4% p.a. of the net assets of the Fund; which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter UK Special Situations Fund FSA fees) which amount to approximately 0.44% p.a. of the net assets of the Fund; which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Undervalued Assets Fund FSA fees) which amount to approximately 0.39% p.a. of the net assets of the Fund; which is currently 6.25%. This spread includes the initial charge of 5.25%. Jupiter Cash Fund A management fee equating to 0.5% per annum of the net assets will be deducted from Fund will bear other expenses (trustee fees and expenses, audit fees and FSA fees) which amount to approximately 0.20% p.a. of the net assets of the Fund; these are paid when due, although they are accrued daily within the price. All charges and expenses are charged to income. Units are purchased at the buying price and redeemed at the selling price. There is no initial charge or spread in respect to this Fund. The buying and selling prices are published daily in the Financial Times and The Daily Telegraph but you should note that these relate to the previous day s dealing. For Funds, other than the Jupiter Cash Fund, the effect of the above charges and expenses on an investment of 5,000 in a particular Fund, assuming growth of 7% a year and distributed or reinvested income, is set out below. The growth rate is not guaranteed, it is purely used for the purposes of demonstrating the effect of charges and expenses on an investment of 5,000 into a particular Fund. The gross annual yields as used in these calculations and shown below are based on the gross yields as quoted

4 in April 2000 except in respect of the Jupiter Monthly Income Fund, Jupiter Global Technology Fund, Jupiter Environmental Opportunities Fund and Jupiter Undervalued Assets Fund which are based on estimates at launch. Where the gross yields are shown as nil it either reflects an actual nil projected yield or in Jupiter s opinion they are immaterial for the purposes of this exercise. The yield for each Fund is shown daily in the Financial Times or is available, on request, from the Manager. As with the growth rate the quoted yields are not guaranteed. With the exception of the Jupiter Income Trust, Jupiter Growth & Income Fund and Jupiter High Income Fund, when calculating the return, income is deemed to be reinvested or accumulated. In respect of the Jupiter Corporate Bond Fund and Jupiter Monthly Income Fund the figures reflect income withdrawn and income reinvested/accumulated. The last line of each block in the table in respect of each Fund shows the financial effect of total charges and expenses over 10 years. The column entitled Annual Investment Growth after Charges shows the effect these charges have in bringing down the illustrated investment growth from 7%. For example, if you invested in the Jupiter Income Trust, the last line of the table shows that over 10 years the effect of total charges and expenses could amount to 1,750. Putting it another way, if the growth rate were to be 7%, which is in no way guaranteed, this would have the effect of reducing this growth rate to 4.5% a year. TABLE 2 Fund At End Effect of Income to What you Annual Gross of Year Deductions Date might Investment Annual to Date get back Growth after Yield Charges Jupiter Corporate Bond ,050 Fund ,590 Income Reinvested , , , % 6.4% Jupiter Corporate Bond ,730 Fund ,600 Income Distributed ,570 4, ,300 3,030 4, % 6.4% Jupiter Ecology Fund , , , , , % 0.0% Jupiter Environmental ,980 Opportunities Fund ,510 (accumulation units) , , , % 0.0% Jupiter European Fund , , , , , % 0.0% Jupiter European Special ,970 Situations Fund ,480 (accumulation units) , , , % 0.0% Jupiter Far Eastern Fund , , , , , % 0.0% Jupiter Financial ,970 Opportunities Fund , , , , % 0.0% Jupiter Fund of ,950 Investment Trusts , , , , , % 0.0% Jupiter Global ,970 Opportunities Fund , , , , % 0.0% Jupiter Global ,970 Technology Fund ,480 (accumulation units) , , , % 0.0% Jupiter Growth ,870 & Income Fund , , , , % 1.7% Jupiter High Income ,770 Fund , ,000 4, ,850 1,960 5, % 3.88% Jupiter Income Trust , , , ,750 1,850 5, % 3.59% Jupiter Monthly Income ,970 Fund ,480 (accumulation units) , , , % 8.0% Jupiter Monthly Income ,550 Fund ,180 4,220 (income units) ,860 3, ,630 3,320 3, % 8.0% Jupiter North American ,950 Fund , , , , , % 0.0% Jupiter UK Growth ,980 Fund , , , , % 1.48% Jupiter UK Smaller ,970 Companies Fund ,480 (accumulation units) , , , % 0.0% Jupiter UK Special ,970 Situations Fund , , , , % 0.0% Jupiter Undervalued ,970 Assets Fund ,480 (accumulation units) , , , % 0.0% In respect of Jupiter Cash Fund the effect of charges on an investment of 1,000 assuming a growth rate of 6% a year, including accumulated income, is set out in Table 3. TABLE 3 Fund At End Effect of What you Annual Gross of Year Deductions might Investment Annual to Date get back Growth after Yield Charges Jupiter Cash Fund ,050 (accumulation units) , , , % 5.2% The last line of Table 3 shows that over 10 years the effect of total charges and expenses could amount to 120. Putting it another way, if the growth rate were to be 6% which is no way guaranteed, this would have the effect of reducing this growth rate to 5.3% a year. The figures contained within Tables 2 and 3 are not guaranteed. They are based on notional rates of growth, which may not be achieved and serve only to illustrate the effect of charges and expenses on the value of the investment. HOW MUCH WILL ADVICE COST? Jupiter and its staff are not permitted to advise you on the suitability or otherwise of investing in the Account. You may take the advice of an authorised Independent Financial Adviser who will give you details about the cost of the advice. The amount will depend on the size and frequency of your investment or investments and in the case of regular savings, the period for which you make them. It will be paid out of the charges. If you apply for a transfer on the advice of an authorised Independent Financial Adviser, Jupiter will usually pay them commission up to a maximum of 3% of all application monies and may pay renewal commission, based on 0.5% of the value of units each year. The renewal commission is funded by the Manager from the annual management fee charged to the underlying Fund. However, no initial or renewal commission is paid in respect of investment into the Jupiter Cash Fund. FURTHER INFORMATION Charges The effect of our charges is shown in tables 2 and 3. Jupiter may increase charges up to the maximum contained in the Trust Deed of each applicable Fund but only after it has given written notice to unitholders and 90 days have elapsed from the date that the Scheme Particulars for the Fund became available. Distributions Distributions or interest distributed/accumulated to ISA investors will be free of tax, i.e. they will be received net of tax and the associated tax credit or income tax deducted from such distributions/accumulations will be reclaimed on behalf of the investors. See also What about tax. Income, if any, net of tax will normally be distributed/accumulated each year on the dates as indicated in Table 4. In respect of any tax credits or income tax reclaimed on behalf of the investor Jupiter has the discretion to pay this to investors at the same time as the net payment is made. Investors, other than in respect of accumulation Funds, may reinvest their income through the purchase of further units. Such income will be reinvested on the payment day based on the offer price calculated at the valuation point on that day. Reclaimed tax credits or income tax will be reinvested on receipt. However Jupiter has the discretion to reinvest the tax on the same as date as the net reinvestment takes place. In respect of accumulation Funds any tax credits or income tax reclaimed will be automatically reinvested. Accounting and Payment/Accumulation Dates Table 4 below, gives interim and annual accounting and payment/accumulation dates for each Fund. TABLE 4 ACCOUNTING AND PAYMENT/ACCUMULATION DATES Fund Accounting Date Pay/Accumulation Date Interim Annual Interim Annual Jupiter Corporate Bond Fund* 31st Aug 28th Feb 31st Oct 30th Apr Jupiter Ecology Fund 30th Sep 31st Mar 30th Nov 31st May Jupiter European Fund 31st Dec 30th Jun 31st Aug Jupiter European Special Situations Fund ** 31st Jul 31st Jan 31st Mar Jupiter Environmental Opportunities Fund ** 31st Mar 30th Sept 31st May 30th Nov Jupiter Far Eastern Fund 31st Dec 30th Jun 31st Aug Jupiter Financial Opportunities Fund 31st Oct 30th Apr 31st Dec 30th June Jupiter Fund of Investment Trusts 30th Apr 31st Oct 30th June 31st Dec Jupiter Global Opportunities Fund 31st Aug 28th Feb 30th Apr Jupiter Global Technology Fund** 30th Apr 31st Oct 31st Dec Jupiter Growth & Income Fund 30th Apr 31st Oct 30th June 31st Dec Jupiter High Income Fund 31st Mar 30th Sept 31st May 30th Nov Jupiter Income Trust 30th Jun 31st Dec 31st Aug 28th Feb Jupiter Monthly Income Fund!*** 30th Sep 31st Mar 27th Oct 27th Apr Jupiter North American Fund 31st Jan 31st Jul 30th Sept Jupiter UK Growth Fund 30th Jun 31st Dec 31st Aug 28th Feb Jupiter UK Smaller Companies Fund** 31st Jul 31st Jan 31st Mar Jupiter UK Special Situations Fund 30th Sept 31st Mar 30th Nov 31st May Jupiter Undervalued Assets Fund"** 31st Aug 28th Feb 31st Oct 30th Apr Jupiter Cash Fund ** 31st Jan 31st Jul 21st Feb 21st Aug * Additionally, in respect of the Jupiter Corporate Bond Fund two further payments will be made on 31st July and 31st January each year to unitholders on the register at 31st May and 30th November respectively. Additionally, in respect of the Jupiter Cash Fund, income is accumulated on 21st May and 21st November each year to unitholders on the register at 30th April and 31st October respectively.

5 ! Additionally, in respect of the Jupiter Monthly Income Fund, income will be distributed or accumulated on 27th day of each month to those on the register as at the previous month end date. " In respect of the Jupiter Undervalued Assets Fund, the first accumulation will on 30th April 2001, for those investors on the register as at 28th February ** Denotes accumulation Funds only. ***Denotes income and accumulation Fund. A Fund s xd date, where a subsequent pay date is shown, is the first valuation point after the Accounting Date referred to above. This does not apply to accumulation Funds. How are the buying and selling prices calculated for the Funds? In order to protect the investor in a Fund, the Manager is allowed to value a Fund on either an offer or bid basis. The Manager may value a Fund on an offer basis when there are more subscriptions than redemptions and a bid basis when a Fund is receiving net redemptions. The offer/buying price is the one at which you can buy units, and the bid/selling price (which is the lower) is the one at which you can sell your units back to the Manager. Offer Price/Bid Price Offer Basis. An offer basis value is calculated by valuing the investment portfolio using the applicable offer price (the price at which a Fund would buy further shares in that Company) of each security adding to the value of the portfolio a fiscal charge (this charge represents buying costs, brokerage/transfer stamp), uninvested cash and net accrued income. The value is then divided by the number of units in issue to obtain the creation price (the price at which new units are issued to the Manager by the Trustees). The initial charge is then added to the creation price. The resulting sum is rounded down to two decimal places the offer price. The quoted spread is then applied to the offer price and rounded down to two decimal places, calculating the bid price. Bid Price/Offer Price Bid Basis. A bid basis value is calculated by valuing the investment portfolio using the applicable bid price (the price at which the Fund would sell the security) of each security deducting from the value of the portfolio a fiscal charge representing the charges associated in selling a security and adding uninvested cash and accrued income. The value is then divided by the number of units in issue and rounded up to obtain the cancellation price (the price at which the manager cancels units) and the bid price. The offer price is derived by applying the quoted spread to this price and rounded up to two decimal places. How do I sell my ISA Investment? You can telephone or write to Jupiter with your instructions. Units may be redeemed on any day between normal working hours. Requests for redemptions received by the Manager before 2.00pm will be redeemed at the redemption price for the units calculated at the 2.00pm valuation point. A contract note will be issued to confirm the transaction. Redemption proceeds will normally be paid within four business days of the Manager receiving written instructions from the account holder. In the case of telephone instructions the receipt of a completed form of renunciation, which is issued with the contract note. If compliance with redemption instructions results in a total registered holding of less than 1,000 in the Account the Manager reserves the right to effect or procure redemption of all of the remaining units of the unitholder at the relevant redemption price per unit. In respect of income units of the Monthly Income Fund, where as a result of a repurchase, the value of the remaining units falls below 5,000, the Manager reserves the right to convert them to accumulation units. In the event of a client wishing to sell a holding with an active direct debit in operation, the registered units will be sold directly upon receipt of the instruction to sell. Any units arising from a direct debit collection initiated prior to the instruction to sell but which have not been registered at the time the instruction is given will be sold upon registration at the prevailing bid price at that day s valuation point. Can I switch my investments? You may instruct us to switch the Funds within the investment component of your Jupiter ISA by selling units in one Fund and reinvesting the proceeds in another Fund provided that the receiving Fund is available in the ISA at a discounted price. We will normally effect the redemption transaction and the associated purchase transaction on the day of receipt of your instruction. Details of the discounts are available from the manager. If the total holding of a Fund that is being switched has a distribution due this amount may be paid by cheque to the Account Holder unless otherwise instructed. Under current legislation, you may not switch between components of an ISA. Can I exchange my existing Jupiter PEP into the Jupiter ISA? Under current legislation this is not permitted. Can I exchange my unitholding from a Jupiter Fund to the Jupiter ISA? You can exchange your holding(s) in a Jupiter Fund into the Account. Your units in the Fund(s) will be sold at the bid price at the valuation point following receipt of your instruction. The proceeds will be invested through the Account at the offer price calculated at the valuation point on the following business day. A discount will be applied. Details of discounts are available from the Manager. If the total holding of a Fund following the exchange transaction is under 250, this may be redeemed and forwarded to the unitholder at the manager s discretion. Can I exchange my current shareholding in another company for a Jupiter managed ISA? No. How is my investment acknowledged? Shortly after the initial purchase you will receive a contract note detailing your investment. All our Funds are uncertificated. Therefore, ownership of units is evidenced by an entry on the share register. A statement is prepared as at 5th April and 5th October each year which includes details of the units purchased or sold within the Account during the six month period and a valuation of the investment(s) in the Account at the statement date. Statements will be sent to you within 25 business days of the statement date. What cancellation rights do I have? You may have the right to change your mind about your investment, so long as you or your investment does not fall within one of the following: A person who the manager would deem to be a Business Investor. The investment is an execution only transaction. The investment is in response to an off the page advertisement whereby you have been in receipt of full details of the investment. If you have the right to change your mind you will be sent a cancellation form. If you wish to withdraw, you must send the cancellation form to Jupiter, and you must post it on or before the 14th day after the day on which you received the notice. If you wish to withdraw, you are entitled to have repaid to you any money you have paid Jupiter, subject to a deduction of the amount (if any) by which the value of your investment has fallen at the time at which your cancellation form is received by Jupiter. If the instruction as to where the transfer value is to be sent is not received by Jupiter at the same time as the receipt of the cancellation notice, Jupiter will hold the transfer monies in a non interest bearing client money account, pending receipt of instructions. Investors should be aware that, if they require the transfer value to be returned to themselves, then the ISA tax status of the investment would be lost. What if something goes wrong am I entitled to compensation? Jupiter will manage the Account in accordance with the Regulations for Individual Savings Accounts. Investment into the Account does not automatically give you entitlement to compensation under the Investors Compensation Scheme. However, if you make a valid claim against Jupiter in respect of units we buy and sell and we are unable to meet our liabilities, you may be entitled to redress from the Investors Compensation Scheme. Further information is available from the Investors Compensation Scheme or the Financial Services Authority at 25 The North Colonnade, Canary Wharf, London E14 5HS. What do I do if I have a complaint about the Account? If you wish to complain about any aspect of the service you have received, please contact Jupiter. If your complaint is not dealt with to your satisfaction you can complain to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Making a complaint will not service prejudice your right to take legal proceedings. What about tax? Taxation of a Fund The individual Funds available within the Jupiter ISA are taxed as if they were a UK company, except that they do not suffer UK tax on capital gains. Unfranked income received (i.e. income other than dividend income from UK companies) will attract corporation tax after deduction of allowable expenses. Any dividends from UK companies received will not suffer tax in the Fund as it suffers UK tax at source. The current rate of corporation tax for authorised unit trusts is 20%. As most of the income of the Jupiter Corporate Bond Fund and the Jupiter Cash Fund will be from interest bearing instruments, it is intended that the Funds will distribute/accumulate any available income as interest. All of Jupiter s other Funds held within the ISA distribute/accumulate income as normal dividend distributions. As from 6th February 2000, stamp duty on the transfer of units is abolished and a new Stamp Duty Reserve Tax (SDRT) arises at a maximum rate of 0.5% of the redemption value of units. Although Jupiter has the power to impose SDRT at the time of the unit transaction it is not Jupiter s policy to impose the charge to unitholders at that point. Instead, the SDRT will be charged by the Trustee to the funds. However in certain circumstances Jupiter does reserve the right at the time of dealing to charge to unitholders. The SDRT is either reduced or does not apply if a fund holds overseas investments or certain other classes of securities which themselves do not suffer UK stamp duty on acquisition. Taxation of the ISA investor Dividends or interest received/accumulated will be free of tax in the hands of the ISA investor, i.e. they will be received net of tax. The tax credit associated with dividend distributions/accumulations and income tax suffered on interest distributions/accumulations will be reclaimed by Jupiter on behalf of the investor. From 6th April 1999 the rate of tax credits associated with dividend distributions/ accumulations has been 10% and will be reduced to nil as from 6th April As far as interest distribution Funds are concerned income tax at the rate of 20% will continue to be deducted, however investors should be aware that there is no guarantee that this will continue and legislation may be introduced which affects the position. The subsequent sale of any units held within the Account will not give rise to any chargeable gain or allowable loss in respect of UK capital gains tax, as ISAs are completely tax free regardless of the individual tax status of the investor. There is no requirement for investors to declare any income, gains or losses in an ISA on their tax return, unless subscriptions have been made void. The foregoing is based on Jupiter s understanding of current law and practice and could alter as a result of future legislation. Any investor in doubt regarding their tax position should take professional advice. What is the cost? There are no Account charges for your ISA. Only standard Fund charges as set out above apply to your investments. How can I transfer or terminate my Account? Transfer of your Account If you have taken out an ISA with Jupiter in the current 2000/01 tax year and wish to transfer it to another ISA manager, you may only transfer the whole account. If you have taken out an ISA with Jupiter in the 1999/00 tax year and wish to transfer to another ISA manager you may transfer the whole or part of the account. Transfers may only be made to another ISA manager who is approved under the Regulations. If you wish to transfer your Account, we must receive written instructions from the new ISA manager. When we receive this written instruction we will sell the investments in your Account and transfer the cash to your new ISA manager. We reserve the right to levy a charge in respect of a transfer to another ISA manager. Termination of your Account The Account may be closed by the Account investor giving notice to Jupiter or by Jupiter giving notice to the Account investor. The notice to us will be effective upon receipt. Jupiter is obliged to give you one month s notice. However, if we decide that it is impossible to administer your Account in accordance with the relevant Regulations, we can terminate your Account with immediate effect. Your Account will also terminate automatically if it becomes void under the Regulations. In the event of termination all transactions already initiated will be completed. In the event of a termination we will sell the investments in your Account. The proceeds will normally be paid within five working days.