Key Features of the Jupiter PEP

Transcription

1 Jupiter Undervalued Assets Launched 2 May 2000 Why Launch this now? As recent stock market conditions have shown, investors have been confident to invest in technology, media and telecom stocks at apparently inflated prices. This has thrown up exceptional value in other areas of the market. Jupiter believes that by launching the new fund it can exploit those opportunities. Objective and investment policy 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. Manager Adrian Paterson, Director of Jupiter Asset Management, joined Jupiter in 1993 after graduating from Durham University with Joint Honours in Economics and Politics. Adrian also manages the UK Smaller Companies, the UK Growth Exempt and the Jupiter Primadona Growth Investment Trust plc. Manager philosophy The Manager seeks to invest in companies that he considers to be undervalued. These may occur in the following areas: Companies whose profits are still growing but are less favoured by the market in comparison with new economy stocks. These stocks are, in our opinion, perceived incorrectly. Companies whose share prices/valuations have fallen so far that they have discounted the very worst outlook. Key Features of the Jupiter PEP AIMS The Jupiter PEP ( the Plan ) provides an easy, tax efficient means of buying units in funds managed by Jupiter Unit Trust Managers Limited ( Jupiter ). The unit trusts that you can invest in through the Plan together with their objectives and investment policies are as follows: Jupiter Corporate Bond 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 To invest world-wide in companies which demonstrate a positive commitment to the long term protection of the environment. Jupiter Environmental Opportunities 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 To achieve long term capital growth from investment in companies quoted on a European Stock Exchange. Jupiter European Special Situations 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 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 To achieve long term capital growth through investment in equities of financial sector companies on an international basis. Jupiter 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 To achieve long term capital growth principally through investment in equities on an international basis. Jupiter Global Technology 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 To achieve long term capital growth and income through investing principally in UK equities. Jupiter High Income 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 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 To achieve long term capital growth by investing primarily in North American securities. Jupiter UK Growth To obtain long term capital growth from investment principally in the UK. Jupiter UK Smaller Companies 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 To achieve capital growth by exploiting special situations, investing principally in UK equities considered to be undervalued. Jupiter Undervalued Assets To achieve long term capital growth by investing principally 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. YOUR The Jupiter s ( (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 From 6th April 1999 investors have not been able to contribute new subscriptions to a PEP. You may, however, transfer your existing PEP(s) to/from one Plan Manager to another. You may also continue to switch between the individual s making up your Jupiter PEP and make withdrawls. For details please see later sections of this document. Units in the s are either income units or accumulation units denominated in pounds Sterling apart from the Jupiter Monthly Income which issues both income and accumulation units. Each holder of a unit in a is entitled to participate in the property of the 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 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 s xd date and is therefore retained within the. There are five types of PEP 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 between the Jupiter European Special Situations, the Jupiter UK Smaller Companies and the Jupiter Global Technology. 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 and the Jupiter High Income. Distributions will be made in February, May, June, August, November and December.

2 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, Jupiter UK Growth, Jupiter European and the Jupiter 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 and the Jupiter Financial Opportunities. 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 s offered. There are two methods of investing: 1. Transfer. You may transfer an existing PEP with another PEP Manager to Jupiter. The PEP to be transferred must be cash at the point of transfer. (Transfers are referred to in more detail under How do I invest? ). 2. Dividend Re-Investment. The dividends you receive from your investment can be re-invested to increase your existing holding. (Dividends are referred to in more detail under Distributions ). RISK FACTORS The investments in a 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 treatment of PEPs, may not be maintained and may be subject to future government legislation. Investors who transfer their PEP 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 PEP 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 PEP 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 The 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 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 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 Investors in the 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 What are the advantages of investment in a unit trust through a PEP? The PEP provides a tax efficient means of buying units in a unit trust. Unit trusts: offer a wide spread of investments; are managed by investment professionals who have the facility to research and monitor companies. What are qualifying and non-qualifying PEP unit trusts? A qualifying PEP unit trust must have at least 50% of its assets in UK ordinary and qualifying EU shares. A non-qualifying PEP unit trust must hold at least 50% of its assets in ordinary shares and other listed shares listed on a recognised stock market. In normal circumstances, the permitted level of the investment into a non-qualifying PEP unit trust is restricted to 25% of the transfer value. However, if the transfer has been made from non-qualifying investments you may transfer the whole amount into one or more of Jupiter s non-qualifying funds. If you have any doubts about transferring your existing PEP(s) into one of Jupiters non-qualifying unit trusts you should obtain advice, either from Jupiter or your financial adviser. Who manages the PEP? The Manager of the PEP is Jupiter Unit Trust Managers Limited ( Jupiter ), 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 unit trusts is The Royal Bank of Scotland plc who holds the title to the s 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. How do I invest? Complete the application form and return it to Jupiter with your transfer details. Transfers from another PEP Manager must be cash at the point of transfer. The net amount transferred will normally be invested in the (s) of your choice at the next valuation point following receipt of cleared funds. Should your Plan be transferred to us in a number of separate 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. Dealing in the Plan takes place daily during normal working hours. The s 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. 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 money account, pending allocation. Applications for the Plan may be made direct to Jupiter or through an authorised intermediary at no extra cost to the investor. Jupiter, as Manager of the s, pays a maximum commission rate of 3% to authorised independent financial advisers. Investors into the Jupiter Monthly Income 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 between 1,000 and 4,999, together with any regular savings contributions, will be automatically invested into accumulation units. HOW WILL CHARGES AND EXPENSES AFFECT MY? Jupiter Corporate Bond A management fee equating to 1% per annum of the net assets will be deducted audit fees and FSA fees) which amount to approximately 0.4% p.a. of the net between these two prices is the spread, which is currently a maximum of 5%. This spread includes the initial charge of 4%. Jupiter Ecology audit fees and FSA fees) which amount to approximately 0.19% p.a. of the net between these two prices is the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter Environmental Opportunities A management fee equating to 1.5% per annum of the net assets will be deducted from the. This will be calculated monthly but accrued daily within the price. The 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 ; 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 audit fees and FSA fees) which amount to approximately 0.29% p.a. of the net between these two prices is the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter European Special Situations

3 audit fees and FSA fees) which amount to approximately 0.36% p.a. of the net Jupiter Far Eastern audit fees and FSA fees) which amount to approximately 0.5% p.a. of the net between these two prices is the spread, which is currently 6%. This spread includes the initial charge of 5%. Jupiter Financial Opportunities audit fees and FSA fees) which amount to approximately 0.36% p.a. of the net Jupiter of Investment Trusts A management fee equating to 1.50% per annum of the net assets will be deducted from the. This will be calculated monthly but accrued daily within the price. The will bear other expenses (trustee fees and expenses, registrar fees, audit fees and FSA fees) which amount to approximately 0.77% p.a. of the net assets of the ; 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. The difference between these two prices is the spread, which is currently 6.25%. This spread Jupiter Global Opportunities audit fees and FSA fees) which amount to approximately 0.39% p.a. of the net Jupiter Global Technology price. The will bear other expenses (trustee fees and expenses, registrar fees, audit fees and FSA fees) which amount to approximately 0.39% p.a. of the net assets of the ; 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. The difference between these two prices is the spread, which is currently 6.25%. This spread Jupiter Growth & Income audit fees and FSA fees) which amount to approximately 0.55% p.a. of the net 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 High Income audit fees and FSA fees) which amount to approximately 0.39% p.a. of the net 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 price. The will bear other expenses (trustee fees and expenses, registrar fees, audit fees and FSA fees) which amount to approximately 0.23% p.a. of the net assets of the ; 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 price. The will bear other expenses (trustee fees and expenses, registrar fees, audit fees and FSA fees) which amount to approximately 0.39% p.a. of the net assets of the ; 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 Jupiter North American audit fees and FSA fees) which amount to approximately 0.74% p.a. of the net Jupiter UK Growth audit fees and FSA fees) which amount to approximately 0.36% p.a. of the net within the price. All charges 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 audit fees and FSA fees) which amount to approximately 0.4% p.a. of the net Jupiter UK Special Situations audit fees and FSA fees) which amount to approximately 0.44% p.a. of the net Jupiter Undervalued Assets price. The will bear other expenses (trustee fees and expenses, registrar fees, audit fees and FSA fees) which amount to approximately 0.39% p.a. of the net assets of the ; 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. The difference between these two prices is the spread, which is currently 6.25%. This spread 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. The effect of the above charges and expenses on an investment of 5,000 in a particular, 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. The gross annual yields as used in these calculations and shown below are based on the gross yields as quoted in April 2000 except in respect of the Jupiter Monthly Income, Jupiter Global Technology, Jupiter Environmental Opportunities and Jupiter Undervalued Assets 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 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 and Jupiter High Income, when calculating the return, income is deemed to be reinvested or accumulated. In respect of the Jupiter Corporate Bond and Jupiter Monthly Income the figures reflect income withdrawn and income reinvested/accumulated. The last line of each block in the table in respect of each 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 1 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 , ,590 Income Reinvested , , , % 6.4% Jupiter Corporate Bond , ,600 Income Distributed ,570 4, ,300 3,030 4, % 6.4%

4 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 Ecology , , , , , % 0.0% Jupiter Environmental ,980 Opportunities ,510 (accumulation units) , , , % 0.0% Jupiter European , , , , , % 0.0% Jupiter European Special ,970 Situations ,480 (accumulation units) , , , % 0.0% Jupiter Far Eastern , , , , , % 0.0% Jupiter Financial ,970 Opportunities , , , , % 0.0% Jupiter of ,950 Investment Trusts , , , , , % 0.0% Jupiter Global ,970 Opportunities , , , , % 0.0% Jupiter Global ,970 Technology ,480 (accumulation units) , , , % 0.0% Jupiter Growth ,870 & Income , , , , % 1.7% Jupiter High Income , , ,000 4, ,850 1,960 5, % 3.88% Jupiter Income Trust , , , ,750 1,850 5, % 3.59% Jupiter Monthly Income , ,480 (accumulation units) , , , % 8.0% Jupiter Monthly Income , ,180 4,220 (income units) ,860 3, ,630 3,320 3, % 8.0% Jupiter North American , , , , , , % 0.0% Jupiter UK Growth , , , , , % 1.48% Jupiter UK Smaller ,970 Companies ,480 (accumulation units) , , , % 0.0% Jupiter UK Special ,970 Situations , , , , % 0.0% Jupiter Undervalued ,970 Assets ,480 (accumulation units) , , , % 0.0% The figures contained within table 1 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 Plan. 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. It will be paid out of the charges. If you transfer a Plan 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 FURTHER INFORMATION Charges The effect of our charges is shown in Table 1. Jupiter may increase charges up to the maximum contained in the Trust Deed of each applicable but only after it has given written notice to unitholders and 90 days have elapsed from the date that the Scheme Particulars for the became available. Distributions Distributions or interest distributed/accumulated to PEP 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 the table below. 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. Jupiter has the discretion to re-invest the tax on the same date the net re-investment takes place. In respect of accumulation funds any tax credit reclaimed will be automatically reinvested. Accounting and Payment/Accumulation Dates The following table (table 2) gives interim and annual accounting and payment/ accumulation dates for each. TABLE 2 ACCOUNTING AND PAYMENT/ACCUMULATION DATES Accounting Date Pay/Accumulation Date Interim Annual Interim Annual Jupiter Corporate Bond * 31st Aug 28th Feb 31st Oct 30th Apr Jupiter Ecology 30th Sep 31st Mar 30th Nov 31st May Jupiter European 31st Dec 30th Jun 31st Aug Jupiter European Special Situations ** 31st Jul 31st Jan 31st Mar Jupiter Environmental Opportunities ** 31st Mar 30th Sept 31st May 30th Nov Jupiter Far Eastern 31st Dec 30th Jun 31st Aug Jupiter Financial Opportunities 31st Oct 30th Apr 31st Dec 30th June Jupiter of Investment Trusts 30th Apr 31st Oct 30th June 31st Dec Jupiter Global Opportunities 31st Aug 28th Feb 30th Apr Jupiter Global Technology ** 30th Apr 31st Oct 31st Dec Jupiter Growth & Income 30th Apr 31st Oct 30th June 31st Dec Jupiter High Income 31st Mar 30th Sept 31st May 30th Nov Jupiter Income Trust 30th Jun 31st Dec 31st Aug 28th Feb Jupiter Monthly Income!*** 30th Sep 31st Mar 27th Oct 27th Apr Jupiter North American 31st Jan 31st Jul 30th Sept Jupiter UK Growth 30th Jun 31st Dec 31st Aug 28th Feb Jupiter UK Smaller Companies ** 31st Jul 31st Jan 31st Mar Jupiter UK Special Situations 30th Sept 31st Mar 30th Nov 31st May Jupiter Undervalued Assets "** 31st Aug 28th Feb 31st Oct 30th Apr * Additionally, in respect of the Jupiter Corporate Bond 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 Monthly Income, 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, the first accumulation will on 30th April 2001, for those investors on the register as at 28th February ** Denotes accumulation s only. ***Denotes income and accumulation. A 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 s. How are the buying and selling prices calculated for the s? In order to protect the investor in a, the Manager is allowed to value a on either an offer or bid basis. The Manager may value a on an offer basis when there are more subscriptions than redemptions and a bid basis when a 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 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 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 PEP Investment? You must write to Jupiter with your instructions. In accordance with relevant Inland Revenue requirements faxed instructions cannot be accepted. Third party instructions will also not be accepted. Following the receipt of the written instructions your units will be sold at the next

5 valuation point, 2.00pm. Sales proceeds will normally be dispatched within four business days. Can I switch my investments? You may instruct us to switch the units in your Plan by selling units in one and reinvesting the proceeds in another provided that the receiving is available in the Plan. We will normally effect the redemption transaction and the associated purchase transaction on the day of receipt. The purchase transaction(s) will be transacted at a discounted price. Details of discounts are available from the Manager. If the total holding of a that is being switched has a distribution due this amount may be paid by cheque to the Plan Holder unless otherwise instructed. How is my investment acknowledged? Shortly after the initial purchase you will receive a contract note detailing your investment. Units acquired through the Plan will be registered jointly in the name of Jupiter and yourself, and held on your behalf. All our s 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 Plan during the six month period and a valuation of the investment(s) in the Plan 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 the transfer, so long as you or your investment does not fall within one of the following: A person who the manager would not deem to be a business investor. The transfer 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, together with a form of instruction as to whether you wish the cancellation value to be sent to you or to another PEP manager. If you wish to cancel, the cancellation form must be posted to Jupiter on or before the 14th day following the day on which you received the notice. If you wish to cancel, you are entitled to have the transfer value as received by Jupiter sent to you or another PEP manager, subject to a deduction of the amount, if any, by which the value of your transfer 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 PEP tax status of the investment would be lost. What if something goes wrong am I entitled to compensation? Jupiter will manage the Plan in accordance with the Inland Revenue Regulations for Personal Equity Plans. Investment into the Plan 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 Plan? 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 then complain to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Making a complaint will not prejudice your right to take legal proceedings. What about tax? Taxation of a Unit Trust The individual s available within the Plan 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 on this amount after deduction of allowable expenses. Any dividends from UK companies received will not suffer tax in the 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 will be from interest bearing securities, it is intended that the will distribute any available income as interest. All of Jupiter s other s held within the Plan 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 PEP investor Dividends or interest received/accumulated will be free of tax in the hands of the Plan investor, i.e. they will be received net of tax and the tax credit associated with dividend distributions/accumulations and income tax suffered on interest distributions 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 this will be reduced to nil as from 6th April As far as interest distribution s 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 Plan will not give rise to any chargeable gain or allowable loss in respect of UK capital gains tax, as PEPs are completely tax free regardless of the individual tax status of the investor. There is no requirement for investors to declare any income or gains/losses in an PEP 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 plan charges for your PEP. Only standard unit trust charges as set out on the previous pages apply to your investments. How can I transfer or terminate the Plan? Transfer of your Plan You may transfer your Plan to another Plan Manager, who is approved under the regulations. You may only transfer the whole Plan. If you wish to transfer your Plan, we must receive your signed written instructions from the new Plan Manager. When we receive this written instruction we will sell the investments in your Plan and transfer the cash to your new Plan Manager. We reserve the right to levy a charge in respect of a transfer to another Plan Manager. Termination of your Plan The Plan may be closed by either the Plan investor by giving written notice to Jupiter or by Jupiter giving written notice to the Plan investor. The notice to us will be effective when we receive it. Jupiter is obliged to give you one month s notice. However, if we decide that it is impossible to administer your plan in accordance with the relevant regulations, we can terminate your Plan with immediate effect. Your Plan 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 Plan. The proceeds will normally be paid within five working days. Can I make a partial withdrawal from my Plan? You may make withdrawals from your Plan. If you wish to make a withdrawal, you may do so in writing to Jupiter. The minimum withdrawal is 1,000. The investments remaining in your Plan after the withdrawal must have a minimum value of 1,000. If you do not comply with the minimum we may treat your instructions as an instruction to terminate your Plan. The Manager may choose to waive this minimum. How will I be able to follow the progress of my investment? Unit trust prices and current yields are available from Jupiter and are published daily in the Financial Times and The Daily Telegraph. Two prices are quoted for a : a buying and selling price, otherwise known as offer and bid. 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 Jupiter. Annual and half yearly reports in respect of each you may hold will be dispatched to you each year. The latest copies of the reports are available on request from Jupiter. These will tell you about the s investments held within a portfolio, the performance and prospects for the following period. What are my voting rights? At a meeting of unitholders on a show of hands every holder who is present in person or is present by a representative properly authorised in that regard has one vote. On a poll every holder who is present in person or by proxy has one vote for every complete unit and a further part of one vote proportionate to any fraction of the units, of which he is the holder and a holder entitled to more than one vote need not use all his votes or cast all votes he uses in the same way. In the case of joint holders the vote of the senior who tenders a vote, whether in person or by proxy, is accepted to the exclusion of the votes of the other joint holders and for this purpose seniority is determined by the order in which the names stand in the register of holders. On a poll, votes may be given either personally or by a proxy. A person appointed to act as a proxy need not be a holder. Jupiter is entitled to receive notice of and attend any meeting of unitholders, but is not entitled to vote or be counted in the quorum. However, an associate may be counted in the quorum but may only vote in respect of units it holds as trustee or nominee on behalf of holders, from whom it has received voting instructions. Documents for Inspection Copies of the Scheme Particulars of the underlying s and their annual and half yearly reports can be obtained on request from either Jupiter or the Trustee. Liability Jupiter deals in good faith and with diligence. Jupiter is not liable for any loss you have through a fall in value of investments held in your Plan. You indemnify Jupiter against liabilities incurred by Jupiter in connection with your Plan unless caused by Jupiter s negligence, knowingly breaching the rules of IMRO or by Jupiter breaching the terms and conditions of the Plan. Jupiter accepts no responsibility for any loss or delay caused in the transfer or payment to Jupiter of funds. You must ensure that the transferring Plan Manager complies with the instructions given by Jupiter for transfers. Assignment Jupiter may appoint another company within the Jupiter Group to be the Plan Manager of your Plan, under the terms and conditions of the Plan. If so, Jupiter

6 will give you one month s notice. Any appointed company will be approved to act as a Plan Manager under the Regulations. Changing the Terms of the Plan Jupiter may amend the terms and conditions of the Plan (which is incorporated within theses Key Features) in writing to you. Any amendments will comply with the regulations and the rules of IMRO. Governing Law The terms and conditions of the Plan are governed by English Law. Soft Commission Arrangements Jupiter Asset Management Limited ( JAM ), the investment adviser to Jupiter from time to time has arrangements with brokers, under which the broker provides to or procures for JAM services or other benefits the nature of which are such that their provision results or is designed to result in an improvement in the Manager s performance of providing its services and for which JAM makes no direct payment, but instead recommends that business is transacted with those brokers. Such services include or are likely to include Reuters, Topic and other investment statistical services. Any transactions conducted under these arrangements are done so on a best execution basis. Trade mark Jupiter is the trade mark of Jupiter International Group PLC and registered in the UK and as a Community Trade Mark. Jupiter Unit Trust Managers Ltd is regulated by IMRO and the Personal Investment Authority. Member of AUTIF. A subsidiary of Commerzbank AG, one of Germany s leading banks. The value of an investment in a unit trust and the income from it can go down as well as up, it may be affected by exchange rate variations, and you may not get back the amount invested. Investors into the Jupiter Global Technology should be aware that there are greater risks associated with shares held in this type of fund due to the potential volatility of the market sectors into which the fund invests. The Jupiter Monthly Income will invest in high yielding equity shares (principally the income shares of UK split capital investment trusts), with some fixed interest securities. The value of these underlying investments can fluctuate and the income and capital are not guaranteed, consequently there is a risk of capital erosion. Quoted yields are not guaranteed. Current tax levels and reliefs will depend on your individual circumstances. A 10% tax credit is reclaimable on equity distributions until only if the holding is within an ISA or PEP. A 20% income tax credit will continue to be reclaimable in respect of Cash and Corporate Bond by non tax payers as well as holdings within an ISA or PEP. Past performance is not necessarily a guide to future performance. Up to 100% of the annual management fee is to be taken from capital of Monthly Income, Growth & Income, Income Trust and High Income. This may accordingly restrict capital growth. For your security we may record or randomly monitor all telephone calls. If you are unsure of the suitability of this investment please contact your financial adviser. Copies of the half-yearly and annual reports may be obtained from Jupiter Unit Trust Managers Ltd, 4 Grosvenor Place, London SW1X 7TJ. Scheme particulars and key features documents may also be obtained from that address. Investment does not automatically give you entitlement to compensation under the Investors Compensation Scheme; further information is available from Investors Compensation Scheme or the Financial Services Authority. A Selection of Jupiter Group Awards 2000 Premier Group Investment Awards Money Observer Consumer Finance Awards Best UT Provider (In conjunction with The Guardian & The Observer) Money Observer Unit Trust Management Group of the Year (1st) Management Group of the Year (1st) 1999 UK Manager of the Year-Income Investment Adviser Sherwood Awards for Service Excellence PEPs/ISA Products (1st) Planned Savings Sherwood Awards for Service Excellence PEPs/ISA Service (1st) Planned Savings Sherwood Awards for Service Excellence UT/OEIC Products (1st) Planned Savings Sherwood Awards for Service Excellence UT/OEIC Service (1st) Planned Savings Management Group of the Year (1st) Unit Trust Management Group of the Year (1st) General Investment Trust of the Year (1st) Primadona Gold Investment Provider of the Year (1st) Financial Adviser 1998 Unit Trust PEP Provider of the Year (1st) What PEP Gold Investment Provider of the Year (1st) Financial Adviser Best Overall Unit Trust Company (1st) Money Management s for the Future: Europe (1st) Moneywise s for the Future: International Capital Growth (1st) Moneywise UK & Europe Manager of the Year Money Management Manager of the Year (2nd) PIMS Diversified Investment Trusts (1st) Investment Week 1997 UK & Europe Manager of the Year Money Management UK Equity Income Unit Trust (HC) Income Investment Week UK Equity Growth Unit Trust (C) UK Growth Investment Week 5 Years UK Unit Trusts/OEICs UK Equity Income Sector (1st) Income Planned Savings/S&P Micropal Awards 5 Years UK Unit Trusts/OEICs Survey (1st) Smaller Group Category Planned Savings/S&P Micropal Awards Best Risk Reward (1st) European What PEP Management Group of the Year (HC) Investment Week Best Investment Trust (1st) Moneywise Jupiter Unit Trust Managers Limited, PO Box 14470, London SW1X 7SJ. 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