Aberdeen UK Property Fund (Aberdeen PAIF) Aberdeen UK Property Feeder Unit Trust. Supplementary Information Document (SID) 7 March 2016

Transcription

1 Aberdeen UK Property Fund (Aberdeen PAIF) Aberdeen UK Property Feeder Unit Trust Supplementary Information Document (SID) 7 March 2016

2 Contact Details ABOUT OUR WEBSITE Our website contains a wealth of information on our funds and investment approach, including Key Investor Information for all of the funds available for investment. You can invest online and access fund performance and pricing information. aberdeen-asset.co.uk HOW TO CONTACT US Aberdeen Fund Managers Limited Freepost RTEU-YTET-HCAA PO Box 9029 Chelmsford CM99 2WJ Investors: Please contact our Customer Services Department Telephone: Fax: customer.services@aberdeen-asset.com Financial Intermediaries: Please contact our Broker Desk Telephone: broker.desk@aberdeen-asset.com Dealing lines Tel: Fax: Telephone calls may be recorded.

3 Contents Introduction 02 Information About Investing In The Funds 04 Taxation 06 Additional Investor Information 07 aberdeen-asset.co.uk 01

4 Introduction SCOPE This document is for use by investors dealing directly with us as well as by clients of financial intermediaries. Financial intermediaries can include financial advisers and broker/ dealer services. ABOUT THIS DOCUMENT This Supplementary Information Document (SID) contains useful and practical information about investing in both the Aberdeen UK Property Fund (Aberdeen PAIF) and the Aberdeen UK Property Feeder Unit Trust. The Aberdeen PAIF is an OEIC and the Feeder Fund is a Unit Trust. Both these Funds are classified as a Non-UCITS Retail Scheme (NURS) and are FCA authorised. For the Aberdeen PAIF we also offer you the opportunity to invest directly or through an Individual Savings Account ( ISA ). You should read this SID together with the Key Investor Information document (the KIID ) for the fund that you wish to invest in. For further information about the Funds, please refer to the relevant Prospectus, which can be obtained by contacting us. All information contained within this document was correct at the time of publication. However, we strongly recommend that you visit aberdeen-asset.co.uk for further information as the very latest information will always be available there. Please note that you should not interpret anything in this SID as financial advice. WHAT IS A KIID? The KIID provides you with important fund information that you need to consider carefully in order to make an informed investment decision. When you invest with us, we will ask you to confirm that you have received the latest KIID for each fund that you have chosen. The KIID includes information on investment objectives, risks, past performance and other practical information. HOW DO I GET ADVICE? We don t offer advice on our funds and products. We recommend that you seek financial advice prior to making any investment decision. If you do not currently have a financial adviser, details of authorised financial advisers in your area can be found at (in the Consumers section) or HOW MUCH WILL ANY ADVICE COST? If you have been given investment advice from a financial adviser, your adviser will give you details about the cost. Charges will differ depending on the service provided and your investment. Your intermediary will inform you of the amounts involved. These funds may be suitable for investors who: are looking to achieve income and capital appreciation over the longer term are looking for exposure into direct property, property related investments, cash and cash like investments want to hold their investment between three and six years. These funds may not be suitable for investors who: do not want any risk to their capital direct property investment is not risk-free do not want the possibility of times when there may be restricted access to their capital in exceptional circumstances when the fund is suspended do not want potentially volatile levels of income. IMPORTANT RISK WARNING Investment into property can result in exposure to highly illiquid assets that may take some time to sell or result in receipt of lower than expected proceeds in order to sell the asset quickly. Given the nature of the investment, there may also be instances when the fund needs to suspend its pricing and dealing, resulting in a period of time whereby investors will not be able to have access to their capital. HOW CAN I GET FURTHER INFORMATION? For more information relating to these Funds please contact us (details are listed inside the front cover) or your financial adviser. All documentation, including the Prospectus, annual or half-yearly report and accounts and application forms, are available from our website and our Customer Services Department. From our website you can also register to receive our latest fund manager presentations, market outlooks and Aberdeen s monthly fund factsheets. 02 PAIF and Feeder Supplementary Information Document (SID) 7 March 2016

5 THE PROPERTY AUTHORISED INVESTMENT FUND (PAIF) Typically, a property fund will derive its income from various sources, including rental income and interest. All the income is distributed to investors periodically as one aggregated payment treated as a dividend distribution. This contrasts with the position for the Aberdeen PAIF. Although the Aberdeen PAIF makes one aggregated income payment each distribution period, it is required to divide its income into up to three separate streams for UK tax purposes (and this breakdown will be shown on each tax voucher): a property income stream, which mainly comprises rental income, known as property income distributions; a small interest income stream, which consists of any interest earned on property securities such as property bonds or on cash deposits, known as PAIF distributions (interest); and an additional income stream which will include such items as notional capital allowances and investment management fees charged to capital, known as PAIF distributions (dividends). The identification of the various streams of income allows each of them to be treated differently for tax purposes. Property income distributions and PAIF distributions (interest) will be paid net of basic rate tax (currently 20%). The tax on both of these income streams will be reclaimable by many non-tax payers (and can be paid gross to certain eligible investors). Any other income will be paid free of withholding tax. THE FEEDER FUND The Feeder Fund (Aberdeen UK Property Feeder Unit Trust) is a fund that invests solely in a master fund, in this case the Aberdeen PAIF (Aberdeen UK Property Fund). The Feeder Fund will not itself qualify as a PAIF. It is intended for those investors who would not qualify to invest directly in the Aberdeen PAIF as a result of the rules governing PAIFs; or who are currently unable to access the Aberdeen PAIF for other reasons, such as administrative and operational issues. The Feeder Fund s sole investment will be shares in the Aberdeen PAIF. To the extent that the Feeder Fund is not fully invested in the Aberdeen PAIF, it will hold its remaining assets in cash for liquidity purposes. It is anticipated that there should be a close (but not exact) correlation between the investment returns from units in the Feeder Fund and those of the corresponding shares in the Aberdeen PAIF. SHOULD I INVEST IN THE ABERDEEN PAIF OR THE FEEDER FUND? Although there may not be any tax advantage for certain investors from investing in the Aberdeen PAIF, this fund will be the main investment vehicle for investors. The Aberdeen UK Property Feeder Unit Trust is being created solely for investors who are either not eligible or not equipped to invest directly in the Aberdeen UK Property Fund (Aberdeen PAIF). Additional rate tax payers should consult a tax adviser. AM I ELIGIBLE TO INVEST IN THE PAIF? Certain investors may not be eligible to invest in a PAIF. This is because under HMRC rules corporate investors are not permitted to hold over 10% of a PAIF s net asset value. In order to try to ensure breaches of this provision are avoided, we are imposing a lower maximum holding limit of 8 % of the value of the Aberdeen PAIF and we require any corporate investor exceeding this level to reduce their holding to 7% (or less) of the value of the Aberdeen PAIF. Please note that if you acquire 8% or more of the net asset value of the Aberdeen UK Property Fund (Aberdeen PAIF) we will reduce your holding to below 8% of the net asset value, by immediately moving the excess amount to the relevant unit class of the Aberdeen UK Property Feeder Unit Trust. Furthermore, some investors who would benefit from receiving PAIF distributions gross may not initially be able to do so because, for instance, their holdings are held on a fund platform which does not yet have the functionality to hold PAIF shares. This applies to ISA clients and individual Unit Trust clients where each such type of investor holds their investment through a fund platform. ADDITIONAL RATE TAX PAYERS SHOULD SEEK TAX ADVICE The Feeder Fund will not have PAIF status (and therefore corporate body restrictions do not apply in the Feeder Fund) and does not report on separate income streams. The Feeder Fund is, therefore, available to all investors; including those who are unable to invest directly in the Aberdeen UK Property Fund (Aberdeen PAIF). INCOME PAYMENT DATES Fund Aberdeen UK Property Fund (Aberdeen PAIF) Aberdeen UK Property Feeder Unit Trust Income Payment Dates 28 February, 31 May, 31 August and 30 November 28 February, 31 May, 31 August and 30 November aberdeen-asset.co.uk 03

6 Information about Investing in the Funds MINIMUM AND MAXIMUM INVESTMENT LEVELS You may buy and sell units in the Funds on any day which is a working day in London, subject to the investment limits outlined in the table below: Name Share / unit class Minimum initial investment Minimum subsequent investment Minimum regular monthly saving Aberdeen UK Property Fund (the Aberdeen PAIF) Class A Shares Class I Shares Aberdeen UK Property Feeder Unit Trust Class A Units Class I Units N/A N/A HOW DO I INVEST? Investments can be made either by a lump sum payment or, for Aberdeen PAIF investors, a Regular Savings Scheme is available. Please remember that we will ask you to confirm that you have received the latest KIID for your chosen fund when you apply. Investments can be made by completing the relevant application form and returning it with the appropriate remittance to Aberdeen Fund Managers Limited or to your financial adviser. We will only accept cheques drawn on an account of a UK Bank/Building Society denominated in sterling. Direct investments of up to 25,000 may be made by telephoning our Dealing Line between 9am and 5pm Monday to Friday. Payment by debit card is accepted. Please note that credit cards are not accepted. ISA Investors (Aberdeen PAIF only) Aberdeen only offers a Stocks and Shares ISA. Anyone aged 18 or over may invest in a Stocks and Shares ISA, provided they are resident in the UK for tax purposes. This includes people performing duties as Crown employees serving overseas and paid out of the public revenue of the United Kingdom (typically a serving member of the armed forces or a diplomat), as well as those married to or in a civil partnership with them. ISAs may not be taken out in joint names. EXCHANGES BETWEEN THE ABERDEEN PAIF AND THE FEEDER FUND Investors can exchange their investment between the Aberdeen PAIF and the Feeder Fund and vice-versa by completing an Exchange Form. An exchange will be made on receipt of a completed Exchange Form, located within each fund s application form pack. Any requests received not completed on an exchange form will not be accepted. REGULAR SAVERS (ABERDEEN PAIF ONLY) Investments can be made monthly by direct debit enabling you to spread your investment payments through the year. Monthly contributions to purchase units / shares are collected on the 1st day of each month (or the next Business Day, should the 1st fall on a Saturday, Sunday or public holiday). HOW MUCH WILL IT COST TO INVEST? Please refer to the Charges section of the KIID. The following notes may also help you. These Funds do not carry an initial charge and the costs of running the Funds are summarised into a single figure, the Ongoing Charges Figure. This is the overall cost shown as a percentage of the value of the assets of the fund. It is made up of the annual management charge and other charges. It does not include the cost of buying and selling stocks for the Funds. The Ongoing Charges Figure can help you compare the annual operating expenses of different Funds. WHAT IF I CHANGE MY MIND? If you received advice from a financial adviser in respect of your investment you will receive a notice of your right to cancel your investment and you will have 14 days from the dealing date to exercise your rights. You may not get a full refund of your money if the value of your investment has fallen between the date your money was invested and the date we receive the cancellation notice. 04 PAIF and Feeder Supplementary Information Document (SID) 7 March 2016

7 WHAT DOCUMENTATION WILL I RECEIVE? The Funds are non-certificated which means that certificates are not issued. Following investment you will receive: Contract Note (lump sum investments only). Acknowledgment of first monthly payment (Aberdeen PAIF Regular Saving Scheme only). 6 Monthly Statements for the periods ending 5 April and 5 October. Tax certificates (if appropriate). Annual and Interim Report and Accounts. Annuals are sent within four months of 31 December, which is the annual accounting date. Interims are sent within two months of 30 June, which is the interim accounting date. Declaration Form For a telephone ISA, Aberdeen will send you a Declaration Form confirming the information you have provided. This Declaration Form does not have to be signed by you or returned to Aberdeen. However, please inform Aberdeen of any discrepancies within 30 days. WHAT HAPPENS TO MY ABERDEEN PAIF ISA BENEFITS WHEN I DIE? When you die, your surviving spouse or civil partner will be able to claim an additional, one-off ISA allowance, subject to certain criteria. This entitlement applies in respect of ISA investors who died on or after 3 December Please contact us if you require further information. DOES MY INVESTMENT PAY INCOME, AND IF SO HOW? If you choose accumulation units / shares, any income generated from your fund will not be paid out to you but will be rolled up into the value of the fund. If you invest in income units / shares, any income will be paid to your bank or building society account. WHERE CAN I FIND THE LATEST FUND PRICES? Fund prices are available on the Aberdeen website at aberdeen-asset.co.uk HOW DO I TRANSFER AN ISA TO ABERDEEN (ABERDEEN PAIF ONLY)? Applications for ISA transfers should be made in writing to us using the Aberdeen Property Fund UK (Aberdeen PAIF) ISA Transfer application form. The cash proceeds of your transferred ISA will be invested in the Aberdeen PAIF. ISA transfer proceeds will be invested at the price on the daywe receive the proceeds. If you wish to transfer an investment currently held through a third party please contact our Customer Services department. You can transfer either a Cash ISA or a Stocks and Shares ISA to an Aberdeen Stocks and Shares ISA. You can transfer your current year s subscription in whole and/or previous year s investments in whole or in part, at any time. The date of transfer is the date agreed between the Plan Managers, although you may specify a period in which the transfer should take place. aberdeen-asset.co.uk 05

8 Taxation HOW MUCH TAX WILL I PAY? The rates of, and any relief from, taxation depend on your own personal circumstances and where you are investing. Aberdeen does not offer tax advice and we recommend that you take professional advice based on your individual circumstances, particularly if you are subject to tax in a jurisdiction other than the UK. If you are a UK investor, you may be subject to Capital Gains Tax (CGT). If your overall gains from all investments do not exceed the annual Capital Gains Tax (CGT) exemption level you will not pay any CGT. If you are a UK investor, you are subject to income tax on any income distributions paid by any fund. Any investments you may hold in an ISA are not liable to further income tax and there is no CGT to pay if you sell or switch your ISA. Please visit HMRC s website at for further information and for the latest tax rates and exemption limits. Please also refer to the Taxation section in the Prospectus for further information. WHAT INFORMATION DO I NEED TO PROVIDE ABOUT MY TAX RESIDENCY? If you are investing in the Funds outside an ISA, tax regulations require you to advise us of all countries in which you are resident for tax purposes. We will ask you to provide this information as part of your application to invest and you must complete the relevant section in the Application Form as well as signing the declaration. 06 PAIF and Feeder Supplementary Information Document (SID) 7 March 2016

9 Additional Investor Information WHAT IF I HAVE A COMPLAINT? If you need to complain about any aspect of our service, you should write to the Complaints Team, Aberdeen Fund Managers Limited, 10 Queen s Terrace, Aberdeen, AB10 1YG, who will initiate our formal complaints procedure. If you prefer, you may call the Complaints Team on or complaints@ aberdeen-asset.com in the first instance. A leaflet detailing our complaints procedure is available on request. If the complaint is not resolved by us to your satisfaction then you may take your complaint to the Financial Ombudsman Service. In order to contact the Financial Ombudsman Service or obtain details of the compensation scheme you should write to The Financial Ombudsman Service, Exchange Tower, London, E14 9SR or telephone or POWER OF ATTORNEY Applications made under a Power of Attorney must be made in writing. For details of the documentation we require, please contact us (details are listed inside the front cover) or your financial adviser. TELEPHONE CALLS We may record telephone conversations to offer you additional security, resolve complaints and improve our service standards. Conversations may also be monitored for staff training purposes. WHAT IF YOU CANNOT AFFORD TO PAY ME ANY COMPENSATION DUE? We are covered by the Financial Services Compensation Scheme, which means if we become insolvent, you may be entitled to compensation. The level of compensation will depend on the type of business and the circumstances of your claim. Currently, investments are covered for 100% of the first 50,000. Details are available from the FSCS Helpline on or and on the FSCS website: aberdeen-asset.co.uk 07

10 Issued by Aberdeen Fund Managers Limited. Registered Office: Bow Bells House, 1 Bread Street, London EC4M 9HH. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. A member of the Aberdeen Asset Management group of companies.

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