Aberdeen Investment Funds ICVC

Transcription

1 Aberdeen Investment Funds ICVC Prospectus July 2010 ECONOMIC INFORMATION This document is important. If you are in any doubt as to the meaning of any information in this document, you should consult your stockbroker, solicitor, accountant or independent financial adviser. This document constitutes the Prospectus for Aberdeen Investment Funds ICVC and has been prepared in accordance with the COLL sourcebook. Copies of this Prospectus have been sent to the FSA and the Depositary. This Prospectus is intended for distribution in the United Kingdom. Its distribution may be restricted in other countries. It does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so, or to anyone to whom it is unlawful to make such an offer or solicitation. The contents of this Prospectus do not constitute advice on legal, taxation, investment or any other matters. Intending investors should inform themselves about and observe the legal requirements within their own countries for the acquisition of shares of the Company and any taxation or exchange control legislation affecting them personally, including the obtaining of any requisite governmental or other consents and the observation of any other formalities.

2 Contents Summary 1 Directory 2 Definitions 3 Constitution 4 Shares in the Company 5 Investments Objectives and Policies and other details of the Funds 6 Management and Administration - The Authorised Corporate Director ( ACD ) 35 - The Investment Advisers and Sub-Advisers 35 - The Depositary 36 - Valuation and Pricing 36 - Sale, Redemption and Exchange of Shares 39 - Distributions 42 Charges and Expenses - Fees and Expenses of the Authorised Corporate Director 44 - Fees and Expenses of the Depositary 46 - Other Payments of the Company 46 - Taxation 47 Investment and Borrowing Powers 49 General - Reports and Accounts 66 - Voting 66 - Transfer of Shares 67 - Winding up of the Company and Termination of Funds 67 - Other Information 67 APPENDIX I - Eligible Securities Markets 70 APPENDIX II - Eligible Derivatives Markets 74 APPENDIX III - Share Classes 75 APPENDIX IV - Directors of the ACD 76

3 Summary FUNDS The following Funds are available: Aberdeen American Equity Fund (previously Aberdeen American Growth Fund) Aberdeen Asia Pacific and Japan Fund Aberdeen Asia Pacific Fund Aberdeen Asian Bond Fund A Aberdeen Cash Fund Aberdeen Corporate Bond Fund Aberdeen Emerging Market Bond Fund A Aberdeen Emerging Markets Fund Aberdeen Ethical World Fund Aberdeen European Equity Fund (previously Aberdeen European Growth Fund) Aberdeen European Frontiers Fund Aberdeen European Smaller Companies Fund Aberdeen High Yield Bond Fund A Aberdeen Income Fund A Aberdeen Japan Growth Fund Aberdeen Managed Distribution Fund Aberdeen Monthly Income Fund A Aberdeen Multi-Asset Fund Aberdeen Property Share Fund Aberdeen Responsible UK Equity Fund Aberdeen UK Equity Fund (previously Aberdeen UK Growth Fund) Aberdeen UK Equity Income Fund Aberdeen UK Equity Extra Income Fund B Aberdeen UK Gilts Fund A Aberdeen UK Mid-Cap Fund Aberdeen UK Smaller Companies Fund (previously Aberdeen UK Emerging Companies Fund) Aberdeen World Equity Fund Aberdeen World Growth and Income Fund A These funds will be launched at a future date to be confirmed by the ACD B Not available Details of these Funds, including their investment objectives and policies are given on pages Dealing Days: Dealing days for all Funds are any business day. All Funds have a valuation point of 12 noon. Prices: Buying and selling prices of the shares are available on the Aberdeen website at or by calling Customer Services on The Company s annual accounting date is 31 July. Interim income payment dates vary by Fund and are included in the Fund details on pages Aberdeen Investment Funds ICVC Prospectus July

4 Directory Authorised Corporate Director Aberdeen Unit Trust Managers Limited Head Office: 10 Queens Terrace Aberdeen AB10 1YG Registered Office: Bow Bells House 1 Bread Street London EC4M 9HH Depositary The Royal Bank of Scotland plc Trustee & Depositary Services 36 St Andrew Square Edinburgh EH2 2YB Legal Advisers Eversheds LLP One Wood Street London EC2V 7WS Auditors KPMG Audit PLC Saltire Court 20 Castle Terrace Edinburgh EH1 2EG Registrar International Financial Data Services (UK) Limited IFDS House St. Nicholas Lane Basildon Essex SS16 5FS (the register of shareholders can be inspected at this address) 2 Aberdeen Investment Funds ICVC Prospectus July 2010

5 Definitions In this Prospectus, unless the context otherwise requires, the following expressions shall have the meanings assigned to them: Authorised Corporate Director or ACD Class COLL sourcebook The Company Dealing Day Debt and debt-related securities Depositary Equity and Equity-Related securities Aberdeen Unit Trust Managers Limited or such other person as may be appointed to provide the services of Authorised Corporate Director. In relation to a Fund or Funds means all of the shares in a particular Fund or (as the context requires) a particular class or classes of shares in one Fund. The Collective Investment Schemes Sourcebook forming part of the FSA Handbook of Rules and Guidance. Aberdeen Investment Funds ICVC. Any day in which banks in London are open for business. Includes but is not limited to convertible and non-convertible corporate debt securities, preferred securities, fixed and floating rate bonds, zero-coupon and discount bonds, debentures, certificates of deposit, bankers acceptances, bills of exchange, commercial paper and treasury bills. The Royal Bank of Scotland plc or such other person as may be appointed as Depositary. Includes but is not limited to equities, depository receipts, convertible securities, preferred shares, equity linked notes (debt securities linked to the performance of an equity) warrants and bonds convertible into common or preferred shares. OEIC Regulations The Open-Ended Investment Companies Regulations FSA Fund or Funds Hedging Instrument of Incorporation Investment grade Net Asset Value or NAV The Financial Services Authority. A sub-fund of the Company to which specific assets and liabilities of the Company are allocated and whose property is pooled separately from that of the other subfunds and which is managed in accordance with the investment objective applicable to that sub-fund. The use of derivative transactions (which the ACD reasonably believes to be economically appropriate and to be fully covered) to reduce risk and cost to the Company and to generate additional capital or income with no, or with an acceptably low level of risk; The Instrument of Incorporation on the basis of which the Company is incorporated. An investment grade security is a security with a credit rating of at least A-3/P-3 (short term) or BBB/Baa3 (long term) as rated by Standard & Poor s Corporation or Moody s Investor Services, or, if unrated, after due consideration by the Investment Adviser deemed to be of an equivalent or lesser risk. The value of the scheme property of the Company or as appropriate, of any Fund less the liabilities of the Company (or of the Fund concerned) as calculated in accordance with the Company s Instrument of Incorporation. ECONOMIC INFORMATION This document is important. If you are in any doubt as to the meaning of any information in this document, you should consult your stockbroker, solicitor, accountant or independent financial adviser. This document constitutes the Prospectus for Aberdeen Investment Funds ICVC and has been prepared in accordance with the COLL sourcebook. Copies of this Prospectus have been sent to the FSA and the Depositary. This Prospectus is intended for distribution in the United Kingdom. Its distribution may be restricted in other countries. It does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so, or to anyone to whom it is unlawful to make such an offer or solicitation. The contents of this Prospectus do not constitute advice on legal, taxation, investment or any other matters. Intending investors should inform themselves about and observe the legal requirements within their own countries for the acquisition of shares of the Company and any taxation or exchange control legislation affecting them personally, including the obtaining of any requisite governmental or other consents and the observation of any other formalities. Aberdeen Investment Funds ICVC Prospectus July

6 Constitution Aberdeen Investment Funds ICVC is an investment company with variable capital incorporated under the OEIC Regulations. The Company is incorporated in Scotland with registered number SI1 and its head office is at 10 Queens Terrace, Aberdeen, AB10 1YG. The Company is structured as a UCITS scheme and an umbrella company for the purposes of the OEIC Regulations. The purpose of this structure is to give investors access to a series of Funds with differing objectives, within the flexibility of one single corporate structure. Different Funds may be established from time to time by the ACD with the approval of the FSA and the agreement of the Depositary. Each Fund will issue its own series of shares representing an interest in that Fund s portfolio of assets. On the establishment of a new Fund or Share Class an updated prospectus will be prepared setting out the relevant information concerning the new Fund. Each Fund of the Company would belong to the type of UCITS scheme if it were itself an investment company with variable capital in respect of which an authorisation order made by the FSA was in force. The Company qualifies as an Undertaking for Collective Investment in Transferable Securities ( UCITS ) within the meaning of an EEC Directive on that subject of 1985 (85/611/EC) (as amended). The Company currently offers, or intends to offer, shares linked to the following Funds: Aberdeen American Equity Fund (previously Aberdeen American Growth Fund) Aberdeen Asia Pacific and Japan Fund Aberdeen Asia Pacific Fund Aberdeen Asian Bond Fund A Aberdeen Cash Fund Aberdeen Corporate Bond Fund Aberdeen Emerging Market Bond Fund A Aberdeen Emerging Markets Fund Aberdeen Ethical World Fund Aberdeen European Equity Fund (previously Aberdeen European Growth Fund) Aberdeen European Frontiers Fund Aberdeen European Smaller Companies Fund Aberdeen High Yield Bond Fund A Aberdeen Income Fund A Aberdeen Japan Growth Fund A These funds will be launched at a future date to be confirmed by the ACD Aberdeen Managed Distribution Fund Aberdeen Monthly Income Fund A Aberdeen Multi-Asset Fund Aberdeen Property Share Fund Aberdeen Responsible UK Equity Fund Aberdeen UK Equity Fund (previously Aberdeen UK Growth Fund) Aberdeen UK Equity Income Fund Aberdeen UK Gilts Fund A Aberdeen UK Mid-Cap Fund Aberdeen UK Smaller Companies Fund (previously Aberdeen UK Emerging Companies Fund) Aberdeen World Equity Fund Aberdeen World Growth and Income Fund Details of the investment objectives and policies of each of the Funds are set out on pages On the introduction of any new Fund or class of shares, a revised prospectus will be prepared setting out the relevant details of that Fund or class. The assets of each Fund will be treated as separate from those of every other Fund and will be invested in accordance with the investment objective and investment policy applicable to that Fund. Each Fund has credited to it the proceeds of all shares linked to it, together with the assets in which such proceeds are invested or reinvested and all income, earnings, profits or assets deriving from such investments. Each Fund will be charged with the liabilities, expenses, costs and charges of the Company attributable to that Fund and within a Fund, the charges will be allocated between classes of shares in accordance with the terms of issue of the shares of those classes. Any assets, liabilities, expenses, costs or charges not attributable to a particular Fund may be allocated by the ACD in a manner which is fair to the shareholders generally but they will normally be allocated to all Funds pro rata to the value of the net assets of the relevant Funds. However the assets of each Fund are not ring-fenced. A creditor of the Company may look to all the assets of the Company for payment regardless of the Fund in respect of which that creditor s debt has arisen. Assets may be re-allocated to and from other Funds if it is necessary to do so to satisfy any creditor proceeding against the Company. The holders of shares linked to a Fund are entitled to receive (or have accumulated) the net income derived from the Fund and to redeem their shares at a price linked to the value of the property of the Fund. Shareholders do not have any proprietary interest in the underlying assets of the Fund. The base currency for the Company is pounds sterling. The base currency of individual Funds, if different from sterling, is stated on pages The maximum size of the Company s capital is 20 billion and the minimum size is 1. The Company is authorised by an order made by the FSA with effect from 23 December The operation of the Company is governed by the OEIC Regulations, the COLL Sourcebook, the Company s Instrument of Incorporation and the Prospectus. This Prospectus is dated and valid with effect from 21 July Aberdeen Investment Funds ICVC Prospectus July 2010

7 Shares in the Company Each Fund may issue one or more different classes of shares. Funds may have up to three share classes, characterised by their criteria for subscription and charging structures. Charging structures are specified on pages Appendix III provides details of the Share Classes in issue and available as at the date of this prospectus. For up to date details of the Share Classes available for each Fund, please refer to The minimum subscription limits, and the minimum holdings, for each class are set out below. Class A shares have a minimum initial investment of 500 for lump sum investment with a minimum subsequent investment of 100. Regular savers will have minimum permitted investments of 50 per month with an obligation to make a minimum investment of 500. Other than in respect of regular savers the minimum holding of Class A shares shall be 500 although this may be waived or varied by the ACD at its sole discretion. Class I shares have a minimum initial investment of 1,000,000. All I shares have a minimum subsequent investment of 10,000. Class I shares are available to pension funds, charities, other tax exempt investors and investors with a formal written agreement with a company within the same group of companies as the ACD. The minimum holding of Class I shares shall be 1,000,000. These minima and the requirement to enter into a formal written agreement may be waived or varied by the ACD at its sole discretion. Class Z shares have a minimum initial investment of 1,000,000 for lump sum investment with a minimum subsequent investment of 10,000. Class Z shares are available to investors with a formal written agreement with a company within the same group of companies as the ACD. The minimum holding of Class Z shares shall be 1,000,000. These minima and the requirement to enter into a formal written agreement may be waived or varied by the ACD at its sole discretion. In addition, each class of shares may be further differentiated into net income shares and net accumulation shares. Class Z Gross shares have a minimum initial investment of 1,000,000 for lump sum investment with a minimum subsequent investment of 10,000. Class Z Gross shares are available to investors with a suitable written agreement with a company within the same group of companies as the ACD and who have completed the necessary tax eligibility declarations. Where a Fund has more than one class of shares and different charging structures for each class, monies may be deducted from classes in unequal proportions. In these circumstances, the proportionate interests of the classes within a Fund will be adjusted accordingly. Holders of net income shares will receive distributions of income. Holders of net accumulation shares do not receive payment of income. Any income arising in respect of an accumulation share is automatically accumulated and added to the assets of the Fund and is reflected in the price of each accumulation share. No initial charge is levied on this accumulation. Tax vouchers for both income and accumulation shares will be issued in respect of distributions made. Where both income and accumulation shares are in existence in relation to a Fund, the income of the Fund is allocated in accordance with the proportionate interest in the Fund attributable to each income and accumulation share. Holders of net income or accumulation shares will be entitled to UK tax credits in respect of income distributions. The tax credit will satisfy the lower rate liability to tax on the distribution for UK taxpayers. Aberdeen Investment Funds ICVC Prospectus July

8 Investment Objectives, Policies and Other Details of the Funds The investment objective, and policy where applicable, of each Fund is set out below. The base currency of each Fund is Pounds Sterling. All funds are categorised as UCITS schemes. ABERDEEN AMERICAN EQUITY FUND (Previously Aberdeen American Growth Fund) Investment objective and policy: The Fund aims to achieve capital growth from a portfolio of North American securities. Share classes in issue: Share classes available for investment: Income: Initial issue of shares: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated six-monthly as at 31 January and 31 July (final), with the appropriate distributions or allocations made within 3 months of these dates. Shares were first issued pursuant to a Scheme of Arrangement with Aberdeen American Equity Fund (then named Aberdeen American Growth Fund), a sub-fund of Aberdeen Investments I in respect of which Aberdeen Unit Trust Managers Limited was the ACD, on 7 April CALENDAR YEAR PERFORMANCE Year to 31/12/09 Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper,Basis: Total Return, NAV to NAV, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of five years. On 7 April 2006 Aberdeen American Growth Fund, a sub-fund of Aberdeen Investments I ICVC, converted into Aberdeen American Equity Fund (then named Aberdeen American Growth Fund), a new sub-fund of Aberdeen Investment Funds ICVC. On 21 April 2006 Aberdeen North American Unit Trust merged into Aberdeen American Equity Fund (then named Aberdeen American Growth Fund). The ongoing fund continues to have a similar investment objective to the historic funds. The historic performance figures are those of Aberdeen North American Unit Trust (launched February 1982), since its investment objective mirrors that of the new fund. Risk warnings appropriate to the Aberdeen American Equity Fund (previously Aberdeen American Growth Fund) The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Movements in exchange rates can impact on both the level of income received and the capital value of your investment. If the currency of your country of residence strengthens against the currency in which the underlying investments of the Fund are made, the value of your investment will reduce and vice versa. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s income account. If insufficient income is generated by the Fund to cover the annual management charge, the balance will be deducted from the Fund s capital and to that extent will constrain capital growth. Derivatives may be used to hedge against various risks as permitted by the regulations but may not be used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. Exposure to a single country market increases potential volatility. 6 Aberdeen Investment Funds ICVC Prospectus July 2010

9 ABERDEEN ASIA PACIFIC AND JAPAN FUND Investment objective and policy: The objective of the Fund is to achieve capital growth by investing in countries of the Asia Pacific region, including Japan. Share classes in issue: Share classes available for investment: Income: Initial issue of shares: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated annually as at 31 July with the appropriate allocation made within 3 months of this date. Shares were first issued pursuant to a scheme of arrangement with Aberdeen Asia Pacific Unit Trust, an authorised unit trust, in respect of which Aberdeen Unit Trust Managers Limited was the manager, on 21 April CALENDAR YEAR PERFORMANCE Year to 31/12/09 Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper,Basis: Total Return, NAV to NAV, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of five years. On 21 April 2006 Aberdeen Asia Pacific Unit Trust converted into Aberdeen Asia Pacific & Japan Fund, a new sub-fund of Aberdeen Investment Funds ICVC. The ongoing fund has a similar investment objective to the historic fund. The historic performance figures are those of Aberdeen Asia Pacific Unit Trust. Risk warnings appropriate to the Aberdeen Asia Pacific and Japan Fund The Fund invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. In some circumstances the underlying investments may become illiquid which may constrain the Investment Adviser s ability to realise some or all of the portfolio. The registration and settlement arrangements in emerging markets may be less developed than in more mature markets so the operational risks of investing are higher. Political risks and adverse economic circumstances are more likely to arise putting the value of your investment at risk. The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Movements in exchange rates can impact on both the level of income received and the capital value of your investment. If the currency of your country of residence strengthens against the currency in which the underlying investments of the Fund are made, the value of your investment will reduce and vice versa. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s income account. If insufficient income is generated by the Fund to cover the annual management charge, the balance will be deducted from the Fund s capital and to that extent will constrain capital growth. Derivatives may be used to hedge against various risks as permitted by the regulations but may not be used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. Aberdeen Investment Funds ICVC Prospectus July

10 Investment Objectives, Policies and Other Details of the Funds continued ABERDEEN ASIA PACIFIC FUND Investment objective and policy: The objective of the Fund is to achieve capital growth by investing in the countries of the Asia Pacific region excluding Japan Share classes in issue: Share classes available for investment: Income: Initial issue of shares: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated annually as at 31 July with the appropriate allocation made within 3 months of this date. Shares were issued pursuant to a scheme of arrangement with Aberdeen Asian Growth Fund, a sub-fund of Aberdeen Investments II managed by the ACD, on 7 April 2006 and a scheme of arrangement with Far East Emerging Economies Unit Trust, a unit trust, also managed by the ACD, on 21 April CALENDAR YEAR PERFORMANCE Year to 31/12/09 Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper,Basis: Total Return, NAV to NAV,, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of five years. On 7 April 2006 Aberdeen Asian Growth Fund, a sub-fund of Aberdeen Investments II ICVC merged into Aberdeen Asia Pacific Fund, a new sub-fund of Aberdeen Investment Funds ICVC. On 21 April 2006 Aberdeen Far East Emerging Economies Unit Trust converted into Aberdeen Asia Pacific Fund. The ongoing fund has a similar investment objective to the historic funds. The historic performance figures are those of Aberdeen Far East Emerging Economies Unit Trust. Risk warnings appropriate to the Aberdeen Asia Pacific Fund The Fund invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. In some circumstances the underlying investments may become illiquid which may constrain the ACD s ability to realise some or all of the portfolio. The registration and settlement arrangements in emerging markets may be less developed than in more mature markets so the operational risks of investing are higher. Political risks and adverse economic circumstances are more likely to arise putting the value of your investment at risk. The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Movements in exchange rates can impact on both the level of income received and the capital value of your investment. If the currency of your country of residence strengthens against the currency in which the underlying investments of the Fund are made, the value of your investment will reduce and vice versa. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s income account. If insufficient income is generated by the Fund to cover the annual management charge, the balance will be deducted from the Fund s capital and to that extent will constrain capital growth. Derivatives may be used to hedge against various risks as permitted by the regulations but may not be used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. 8 Aberdeen Investment Funds ICVC Prospectus July 2010

11 ABERDEEN ASIAN BOND FUND A Investment objective: The Fund seeks to achieve an attractive level of total return. Investment policy: The Fund will be primarily invested in Investment grade and non-investment grade Debt and debt-related securities of Asian issuers which are listed or traded on an eligible market or OTC market and which are issued by governments, supranational institutions or government-related bodies that are domiciled in Asian countries; and/or, Debt and debt-related securities issued by companies that have their registered office in an Asian country; and/or, issued by companies which have substantial business activities in an Asian country; and/or, issued by holding companies that have a substantial proportion of their assets in Asian companies. The Fund may use financial derivatives instruments for investment purposes and/or efficient portfolio management. The Fund may use derivative instruments to create short and/or long positions in currencies other than the base currency. The Fund may hold up to 10 of a single issue if the respective bonds are issued by a government, supranational institution or government-related body. The Fund may also invest in other transferable securities, money market instruments, cash, near cash, deposits, shares in collective investment schemes (including other funds managed by the investment adviser or its associates) and derivatives. Share classes in issue: Share classes available for investment: Income: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated six-monthly as at 31 January and 31 July (final), with the appropriate distributions or allocations made within 3 months of these dates. Further details of permitted derivatives transactions are provided in the Investment & Borrowing Powers section in pages 49 to 65. Risk warnings appropriate to the Aberdeen Asian Bond Fund Investors should note that the Fund is permitted to invest in non-investment grade securities. Investment in such securities involves greater price volatility and risk of loss of principal and income that investment in securities of a higher Investment grade quality. The performance of the Fund may be strongly influenced by movement in FX rates because currency positions held by the Fund may not correspond with the securities positions held. The Fund invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. In some circumstances the underlying investments may become illiquid which may constrain the ACD s ability to realise some or all of the portfolio. The registration and settlement arrangements in emerging markets may be less developed than in more mature markets so the operational risks of investing are higher. Political risks and adverse economic circumstances are more likely to arise putting the value of your investment at risk. The value of a bond will fall in the event of the default or reduced credit rating of the issuer. Unlike income from a single bond, the level of income from the Fund is not fixed and may fluctuate. The underlying investments are subject to interest rate risk and credit risk. Where long-term interest rate rise, the capital value of bonds is likely to fall and vice versa. Credit risk reflects the ability of the bond issuer to meet its obligations to pay interest on a bond and return the capital on redemption date. The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s capital account. The deduction of this charge from capital may constrain the Fund s future growth or lead to an erosion of capital. Charging the annual management charge to the capital account reduces the Fund s capital and increases the distributable income by a similar amount. The Fund may invest in derivatives for investment purposes which may, in certain circumstances, increase the volatility of the Fund. Derivatives may be used to hedge against various risks. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. A This Fund will be launched at a future date to be confirmed by the ACD. Aberdeen Investment Funds ICVC Prospectus July

12 Investment Objectives, Policies and Other Details of the Funds continued ABERDEEN CASH FUND Investment objective and policy: The investment objective of Aberdeen Cash Fund is to produce an attractive level of income commensurate with security principally by investing in cash deposits and money market instruments. The Fund may also invest in transferable securities and in collective investment schemes, including those managed by the ACD or companies related to the ACD. Share classes in issue: Share classes available for investment: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income: Income will be calculated quarterly as at 31 January, 30 April, 31 July (final) and 31 October, with the appropriate distributions or allocations made within 3 months of these dates. Initial issue of shares: CALENDAR YEAR PERFORMANCE Year to 31/12/09 Shares were first issued pursuant to a Scheme of Arrangement with Aberdeen Cash Fund and Aberdeen Deposit Fund, both unit trusts managed by the ACD, on 17 November Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper, Basis: Total Return, NAV to NAV, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of five years. However, it should be noted that the performance information reflects that of Aberdeen Deposit Fund, which merged into the Aberdeen Cash Fund, a sub-fund of Aberdeen Investments ICVC, on 17 November Risk warnings appropriate to the Aberdeen Cash Fund The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. As the values of the instruments are based on a marked to market basis, there is the possibility that the value of the capital of the Fund may fall over short periods of time. As a result, short term investors may get back less than the value of their initial investment. Exposure to a single country market increases potential volatility. Past performance is not a guide to the future. Derivatives may be used to hedge against various risks as permitted by the regulations but may not be used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential gains. The annual management charge for the Fund will be charged to the Fund s income account. If insufficient income is generated by the Fund to cover the annual management charge, the balance will be deducted from the Fund s capital and to that extent will constrain capital growth. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. 10 Aberdeen Investment Funds ICVC Prospectus July 2010

13 ABERDEEN CORPORATE BOND FUND Investment objective: The investment objective is to aim to produce an attractive level of income primarily through investment in a portfolio of Investment grade debt, non-investment grade debt and debt-related securities. The Fund may also invest in derivatives, including forwards, and in collective investment schemes, including those managed by the ACD or companies related to the ACD. Investment policy: The investment policy is to invest in debt and debt-related securities issued by companies listed or incorporated anywhere in the world. However, the majority of the Fund will generally be either denominated in, or hedged back to, sterling (or, subsequent to UK participation in any future stage of European Monetary Union, to the euro). Non-UK interest rate risk will also generally be hedged out. Where appropriate the Fund may invest a substantial proportion of its net asset value in UK gilts or other government issued bonds and may at any time hold an appropriate percentage of cash. From time to time the Fund may also take some positions in non-sterling currencies through the use of derivatives. Share classes in issue: Share classes available for investment: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income: Income will be calculated quarterly as at 31 January, 30 April, 31 July (final) and 31 October, with the appropriate distributions or allocations made within 3 months of these dates. Initial issue of shares: CALENDAR YEAR PERFORMANCE Year to 31/12/09 Shares were first issued pursuant to a Scheme of Arrangement with Aberdeen Corporate Bond Fund, a sub-fund of Aberdeen Investments V, Aberdeen Corporate Bond Plus Fund, a sub-fund of Aberdeen Investments II, in respect of both of which Aberdeen Unit Trust Managers Limited was ACD and, Aberdeen Gilt Income Unit Trust, in respect of which Aberdeen Unit Trust Managers Limited was the manager, on 23 March Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper, Basis: Total Return, NAV to NAV, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of four years. The fund was created as a sub-fund of Aberdeen Investments ICVC on 23 March 2007 by the conversion of Aberdeen Gilt Income Unit Trust and its merger with Aberdeen Corporate Bond Fund and Aberdeen Corporate Bond Plus Fund. Historic performance is that of Aberdeen Corporate Bond Fund launched 9 March 2004, Risk warnings appropriate to the Aberdeen Corporate Bond Fund Investors should note that the Fund is permitted to invest in non-investment grade securities. Investment in such securities involves greater price volatility and risk of loss of principal and income than investment in securities of a higher investment grade quality. The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s capital account. The deduction of this charge from capital may constrain the Fund s future growth or lead to an erosion of capital. Charging the annual management charge to the capital account reduces the Fund s capital and increases the distributable income by a similar amount. The Fund may invest in derivatives for investment purposes which may, in certain circumstances, increase the volatility of the Fund. Derivatives may also be used to hedge against various risks. The use of derivatives for hedging may, in a rising market, restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. Aberdeen Investment Funds ICVC Prospectus July

14 Investment Objectives, Policies and Other Details of the Funds continued ABERDEEN EMERGING MARKET BOND FUND A Investment objective: The investment objective is to provide an attractive level of income and long-term capital return. Investment Policy The investment policy is to invest primarily in fixed interest securities which are issued by corporations with their registered office in, and/or government related bodies domiciled in an emerging market country. The Fund may also invest in other transferable securities, money market instruments, cash, near cash, deposits, shares in collective investment schemes (including other funds managed by the investment adviser or its associates) and derivatives. The Fund may use financial derivatives instruments for investment purposes and/or efficient portfolio management. The Fund may use derivative instruments to created short and/or long positions in currencies other than the base currency. Note: For the purposes of this Fund, emerging market means any country that is included in the MSCI Emerging Markets Index or composite thereof (or any successor index or index substituted at the ACD s discretion,) or any country classified by the World Bank as a low to upper middle income country. Share classes in issue: Please refer to Appendix III. Share classes available for investment: Income: For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated monthly as at the last calendar day with the appropriate distributions or allocations made on the last business day of the following month. Further details of permitted derivatives transactions are provided in the Investment & Borrowing Powers section in pages 49 to 65. Risk warnings appropriate to the Aberdeen Emerging Market Bond Fund The Fund invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. In some circumstances the underlying investments may become illiquid which may constrain the ACD s ability to realise some of the portfolio. The registration and settlement arrangements in emerging markets may be less developed than in more mature markets so the operational risks of investing are higher. Political risks and adverse economic circumstances are more likely to arise putting the value of your investment at risk. The performance of the Fund may be strongly influenced by movement in FX rates because currency positions held by the Fund may not correspond with the securities positions held. The value of a bond will fall in the event of the default or reduced credit rating of the issuer. Unlike income from a single bond, the level of income from the Fund is not fixed and may fluctuate. The underlying investments are subject to interest rate risk and credit risk. Where long-term interest rate rise, the capital value of bonds is likely to fall and vice versa. Credit risk reflects the ability of the bond issuer to meet its obligations to pay interest on a bond and return the capital on redemption date. The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s capital account. The deduction of this charge from capital may constrain the Fund s future growth or lead to an erosion of capital. Charging the annual management charge to the capital account reduces the Fund s capital and increases the distributable income by a similar amount. The Fund may invest in derivatives for investment purposes which may, in certain circumstances, increase the volatility of the Fund. Derivatives may be used to hedge against various risks. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. A This Fund will be launched at a future date to be confirmed by the ACD. 12 Aberdeen Investment Funds ICVC Prospectus July 2010

15 ABERDEEN EMERGING MARKETS FUND Investment objective and policy: The Fund aims to provide long term capital growth from direct or indirect investment in emerging stock markets worldwide or companies with significant activities in emerging markets. Share classes in issue: Share classes available for investment: Income: Initial issue of shares: Please refer to Appendix III. For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated annually as at 31 July with the appropriate allocation made within 3 months of this date. Shares were first issued pursuant to the various Schemes of Arrangement for the amalgamation of three former authorised unit trusts, Aberdeen Emerging Markets Unit Trust, Aberdeen Frontier Markets Unit Trust and Aberdeen Latin American Unit Trust, on 24 July CALENDAR YEAR PERFORMANCE Year to 31/12/09 Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper, Basis: Total Return, NAV to NAV, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of five years. However, it should be noted that the early performance information reflects that of Aberdeen Emerging Markets Unit Trust from which the fund was converted in July Risk warnings appropriate to the Aberdeen Emerging Markets Fund The Fund invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. In some circumstances the underlying investments may become illiquid which may constrain the ACD s ability to realise some or all of the portfolio. The registration and settlement arrangements in emerging markets may be less developed than in more mature markets so the operational risks of investing are higher. Political risks and adverse economic circumstances are more likely to arise putting the value of your investment at risk. The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Movements in exchange rates can impact on both the level of income received and the capital value of your investment. If the currency of your country of residence strengthens against the currency in which the underlying investments of the Fund are made, the value of your investment will reduce and vice versa. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s income account. If insufficient income is generated by the Fund to cover the annual management charge, the balance will be deducted from the Fund s capital and to that extent will constrain capital growth. Derivatives may be used to hedge against various risks as permitted by the regulations but may not be used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. Aberdeen Investment Funds ICVC Prospectus July

16 Investment Objectives, Policies and Other Details of the Funds continued ABERDEEN ETHICAL WORLD FUND Investment objective: To achieve long-term capital growth. Investment policy: The objective will be achieved through investment in a portfolio of international quality investments chosen on the basis of ethical ( socially responsible ) criteria. These criteria include the environment, employee relations, product quality and international operations. The fund may also invest in fixed interest securities. Share classes in issue: Share classes available for investment: Income: Please refer to Appendix III. Initial issue of shares: Shares were first issued in May For up to date details of the share classes available for investment in this Fund, please refer to Income will be calculated six-monthly as at 31 January and 31 July (final), with the appropriate distributions or allocations made within 3 months of these dates. Aberdeen Unit Trust Managers Limited as ACD will be responsible for all aspects of the investment management of the fund including the appropriateness of investments measured against both positive and negative ethical criteria. In carrying out this function Aberdeen Unit Trust Managers Limited will use investment managers of its associated companies, drawn from each geographic team, and who have particular experience of socially responsible investment. CALENDAR YEAR PERFORMANCE Year to 31/12/09 Year to 31/12/08 Year to 29/12/07 Year to 29/12/06 Year to 31/12/ Source: Lipper, Total Return NAV to NAV, UK Net Income Reinvested The above performance figures are based on NAV to NAV prices. These performance figures are presented as a matter of historical record. Performance is determined by many factors, not just the skill of the ACD or Investment Adviser, including the general direction and volatility of markets and may not be repeatable. Past performance is not a guide to future rates of return. The latest performance figures may be obtained from the ACD and at Performance information is shown for a period of five years. Risk warnings appropriate to the Aberdeen Ethical World Fund The value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Movements in exchange rates can impact on both the level of income received and the capital value of your investment. If the currency of your country of residence strengthens against the currency in which the underlying investments of the Fund are made, the value of your investment will reduce and vice versa. Past performance is not a guide to the future. The annual management charge for the Fund will be charged to the Fund s income account. If insufficient income is generated by the Fund to cover the annual management charge, the balance will be deducted from the Fund s capital and to that extent will constrain capital growth. Derivatives may be used to hedge against various risks as permitted by the regulations but may not be used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential gains. When cancellation rights apply, and you exercise them, you may not get back the full amount you invested if the share price falls before we receive written confirmation that you wish to cancel the contract. 14 Aberdeen Investment Funds ICVC Prospectus July 2010