Doing Business with Fidelity FundsNetwork

Transcription

1 THIS DOCUMENT SHOULD BE READ ALONG WITH THE FIDELITY CLIENT TERMS Doing Business with Fidelity FundsNetwork Incorporating the Key Features of the Fidelity FundsNetwork ISA and Investment Fund Account For individual investors with an adviser FundsNetwork ISA Fund Name Lump Sum Invesco Perpetual High Income Inc 1,880 Lazard Global Equity Income Inc 1,880 M&G Global Dividend Inc 1,880 Newton Global Higher Income Fund 1,880 Schroder Asian Income Fund Inc 1,880 Threadneedle Global Equity Income Inc 1,880 Total 11,280 Monthly Savings Plan 1

2 Your personal ISA projection Below is a summary of your investment choices and an indication of what you might get back after ten years. Remember, these figures are not guaranteed and are only given as an example. The rest of your personal illustration can be found in the 'Effects of charges' section in this document. About your ISA projection We provide you with a growth scenario for the funds you have chosen which show how much your investments would be worth after 10 years if your plan grows by each of the rates shown. In the growth scenario each fund is given a low, medium and higher rate to allow you to make an assessment of the potential for growth in differing market conditions. The figures shown are only examples and are not guaranteed, they are not minimum or maximum amounts. What you get back will depend on how your investments grow. You could get back more or less than this. We have assumed any Monthly Savings Plan (MSP) contributions are based on the Monthly Savings Plan duration you specified. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. Lump sum and MSP contributions are detailed in whole pounds even though pence may have been specified within your contributions. For this reason contribution amounts may not exactly equal actual investment amounts. The final value will depend on the future movements in share prices, which can go down as well as up, whether the income is reinvested in the plan, and the effect of the charges which may vary applicable to the plan. For each fund we allocate a growth rate based on our expectations of their respective growth potential. Our expectations are predominantly set by the types of asset class that make up each fund and their respective weightings. Generally we expect the cash asset class to grow at a lower rate than bond assets, which, in turn, we expect to grow at a lower rate than equities. What your investment may be worth after 10 years Fund Name Lump Sum Total MSP At the end of Year 10 Growth Projections at 5.00% 7.00% 9.00% Invesco Perpetual High Income Inc 1, ,880 2,580 3,120 3,750 Lazard Global Equity Income Inc 1, ,880 2,610 3,150 3,790 M&G Global Dividend Inc 1, ,880 2,560 3,100 3,730 Newton Global Higher Income Fund 1, ,880 2,600 3,140 3,780 Schroder Asian Income Fund Inc 1, ,880 2,580 3,120 3,750 Threadneedle Global Equity Income Inc 1, ,880 2,580 3,120 3,760 Total 11, ,280 15,510 18,750 22,560 2

3 What's included in this document Aims 4 Your commitment 4 Risk factors 5 Charges and expenses 5 Answering your questions 8 Investing with Fidelity FundsNetwork 8 Additional investor information 11 Cancellation rights, compensation scheme, complaints handling 12 Taxation 13 Fund dealing cut-off times 15 Effect of charges 17 Fund information 20 Contact us 33 Helping you understand financial terms Whilst we have tried to avoid technical language in this guide you may come across some unfamiliar terms. A summary document defining what these terms are can be found on our website: Helping you navigate your way through this document We use a number of symbols to help you navigate your way through this document. Each symbol that appears in this document tells you where you can find further information or if you should speak with your adviser. Refer to another document. All our documents are available from your adviser. Alternatively these can be found on our website or you can request these by writing to us. Refer to another section in this document for further detail. Important information The Financial Services Authority (FSA) is the independent financial services regulator. It requires us to give you this important information to help you decide whether our ISA and / or Investment Fund Account is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. Please note that we are not required to assess whether or not our products and services are suitable for you. Therefore, you do not benefit from the protection of the rules of the Financial Services Authority on assessing suitability or appropriateness. If you have received a recommendation from your adviser they will be responsible for the suitability of the recommendation. The information in this document is correct as at July About Fidelity FundsNetwork As your adviser may have discussed with you, Fidelity FundsNetwork is operated and backed by Fidelity Worldwide Investment. Fidelity is one of the UK's largest investment companies, which means you have the reassurance of knowing your investments are being administered by an independent and financially strong organisation. Launched in 2000, Fidelity FundsNetwork was one of the pioneers in the development of investment platforms. Since then, we have grown strongly and have continuously enhanced our product range and services. We now: serve over 1 million customers who have their investments with us look after 37.5 billion on behalf of our customers* offer over 1,200 funds from more than 70 leading fund managers have a comprehensive selection of accounts, including ISAs, Investment Fund Accounts, a pension and investment bonds *Source: Fidelity Worldwide Investment as at 31 March Visit our website for more information. If you do not have access to the internet, you can write to us using the contact details provided later on. Talk to your adviser. 3

4 Aims We, Fidelity FundsNetwork, provide a service that allows individual investors access to UK, regional and global stock markets through our available range of funds to invest in. Individual investors using this service should be looking to invest over the medium to long term, which we define as five years or more. Our service provides access to more than 1,200 funds from over 70 providers. You can find the aims of individual funds in their Key Investor Information Document (KIID) or Fund Specific Information document which can be obtained by visiting or by writing to us. You can find contact details at the end of this document. We also give you the option to: Manage your investments in one place; Switch between funds; Receive an income from your investments. In addition, you can choose to transfer or re-register your other fund holdings to us. Please note in some instances re-registration and transfer may not be possible. Please contact your financial adviser for further information. See the 'Re-registration - What you need to know' Document for further details which your adviser can provide with. Alternatively you can fund this document on our website at Type of Accounts Available You can invest in our fund range by opening an Investment Fund Account, ISA or Junior ISA. Investment Fund Account The Investment Fund Account gives you access to our range of funds. There is no limit on the amount you can invest in the Investment Fund Account. ISA and Junior ISA You can invest in two types of ISA or Junior ISA with us: A Stocks and Shares ISA which allows you to make tax efficient investments in our range of funds. A Cash ISA which allows you to save tax efficiently in cash. ISA Cash Park For more information about the amounts you can invest in your ISA or Junior ISA each year, please see the 'Answering your questions' section. Our Stocks and Shares ISA also allows you to hold your money in cash temporarily through our ISA Cash Park facility. This aims to provide your money with a temporary shelter in times of market volatility, while also allowing it to continue benefiting from the tax advantages of an ISA or Junior ISA. For more information, please see our 'Answering your questions' section. Type of funds available We offer three types of funds for you to invest in: Unit Trusts, UK Open-Ended Investment Companies (OEICs), and offshore funds. Unit Trusts: These onshore funds allow private investors to pool their contributions with others to form a fund. This fund is divided into units of equal value, and investors purchase units in the fund. The price of these units can go up and down. UK OEICs: These onshore funds are similar to Unit Trusts but they are constituted as companies, which means the fund is divided into shares rather than units. Investors purchase shares in the company, and the price of the shares can go up and down. Offshore funds: Offshore funds are similar to UK funds, but are based outside the UK and are subject to local legislation and tax regimes. As a subset of offshore funds, we offer a range of exchange traded products: These are investment instruments that track the performance of an underlying asset or an asset index. Currently under the exchange traded products umbrella we offer you a range of Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). Please note that the Fidelity FundsNetwork service proposition for ETFs and ETCs differs from the standard market offering. Please refer to other sections of this document for additional information. Your commitment We ask you to invest an initial lump sum of at least 1,000 in each fund you choose (with the exception of the ones listed below). Additional lump sum investments can normally be made from 250 per fund. The following funds have a lower minimum of 500 for the initial lump sum: all the funds in Fidelity's MoneyBuilder range, Standard Life Global Advantage, Virgin Income Trust and Virgin UK Index Tracking Trust. Most of Fidelity's offshore funds have a higher minimum of 1,500 for the initial lump sum and 500 for any additional lump sums when you invest in an Investment Fund Account. The Fidelity Portfolio Selector (FPS) funds have a higher minimum of 4,000 for the initial lump sum. We ask you to invest for regular monthly savings, at least 25 in each fund, 50 per monthly savings plan application (with the exception of the funds listed below) Fidelity Offshore funds have a higher monthly minimum of 50 for regular monthly savings. The minimum regular monthly saving amount is 50 in each fund for a Junior ISA. You will need to tell us if you change your address. If you move abroad, we may need to place restrictions on your account in accordance with regulations. These restrictions could affect your ability to make additional investments or switch funds within your account. Please see the Fidelity Client Terms to find out more. These can be found at the end of this document or on our website 4

5 Risk factors Any investment carries risks. We refer to these as 'risks applicable to all funds'. There are also some risks that are specific to certain funds. You should read all these warnings before making any investment decisions. Risks applicable to all funds You should be aware of the following risks which relate to all the funds available on Fidelity. Value of investing: The value of investments and any income can fall, so you could get back less than you invested. Investments are long term: Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve. Returns are not guaranteed: What you receive when you sell your investment is not guaranteed. It depends on how your investments perform and the charges. Inflation: Inflation will reduce the real value of your investments in future. If your investment grows by less than the rate of inflation it will have less buying power in the future. Taxation and tax relief: Levels of taxation and tax relief are subject to change. Market risk: External factors can cause an entire asset class to fall in value - in other words the value of all shares or bonds could fall at the same time. Regular deductions: If you make regular withdrawals from your investment or sell units to pay for your adviser's remuneration, this will reduce your capital over time if the fund's growth does not compensate future withdrawals. Risks specific to certain funds For risk information specific to individual funds please refer to the 'Fund Information' section. More detailed information is available in the Fund Prospectus which you can obtain from the relevant fund manager. Charges and Expenses There are charges for using the Fidelity FundsNetwork service. Additionally there are charges applied for the investments you hold and charges you agree with your adviser. The section titled 'Our service charges' explains the fees incurred when investing on the platform. Please refer to the Fund Specific Information document where available or the KIID for the specific charges for your chosen investments. Please note ETFs and ETCs follow a different charging structure which is detailed below. Please contact us if you need further details explained in this section. Fund charges When you make an investment on the Fidelity FundsNetwork platform there are three main parties involved, in addition to you as the investor. There is Fidelity - the provider of the investment services platform which provides access to the funds you can choose to invest in; there are the fund managers of the funds you choose to invest in; and there is your financial adviser. The charges listed in this section are those you will typically pay to the parties named above. See the Contact us section to find out how you can get in touch with us. You may also be able to find out more about charges by contacting your adviser. Initial charge This charge is determined by the fund manager of the fund(s) you choose to invest in. They use a range of methods explained below to value their funds. When you invest with Fidelity FundsNetwork, you will pay this charge to us. You can find the initial charge specific to your investment in the KIID (or FSI) of your chosen fund(s). Please note that the actual initial charge you pay us could be lower than that stated in the relevant KIID (or FSI) as we may offer discounts on the charges stated by the fund manager. Please refer to the section on "Our Service Charges" for further details of the initial charge. Dual priced funds: Dual priced funds have two different prices, a price you buy at (known as the offer price) and a price you sell at (known as the bid price). This is a charge for joining the fund and will be a percentage of the total amount invested. When you buy units within a dual priced fund you will pay the "offer" price. When you sell units they will be sold at the "bid" price. The difference between bid and offer prices also includes the initial charge, so the offer price, which you buy at, is normally higher than the bid price. We refer to any spread over and above the fund's initial charge as the "additional bid-offer spread". The size of the spread will differ between funds. Funds investing in asset classes with higher dealing costs (e.g. commercial property, certain corporate bonds, smaller companies or emerging markets) will tend to have larger spreads. The size of the spread changes daily as the difference between the buying and selling prices of the underlying assets change. To find out whether the fund you are investing in may have an additional bid-offer spread applied you can visit (dual priced funds will show a price under both Buy and Sell) or by writing to us. For actual details of the bid-offer spread you should refer to the fund s KIID where available or the fund provider s Full Prospectus. Single swinging priced funds: Single swinging pricing is where a fund has one price at which you buy and sell shares on any given day. The single price quoted daily can be swung higher or lower at the discretion of the fund manager in order to counteract the effect of dealing costs on the fund. This swing can also be referred to as a dilution adjustment. Dilution Levy: Instead of operating a swinging single price, some fund managers will use a single price for buying and selling units in the fund but will levy an additional charge on investors. This is to protect existing investors from the costs (charges and taxes) of buying and selling assets that the fund is invested in. Exchange Traded Product Dealing Fee (ETF Dealing Fee) Dealing fee for ETFs and ETCs: As ETFs and ETCs are traded on the London Stock Exchange a dealing fee of 0.1% applies every time an ETF or ETC is bought or sold. This includes regular monthly investments, any reinvestments of dividends, withdrawals and switches. In addition this also applies to any lump sum investments. This is a charge levied by the broker for trading these instruments and is built into the price achieved. This charge is deducted directly by the broker at the time of the trade. A detailed breakdown of this charge is shown on your contract notes. 5

6 More detailed information is available in the Fund Prospectus which you can obtain from the relevant fund provider. Ongoing Annual management charge (AMC): This is an ongoing charge that contributes to the management of the fund and associated administration costs. The charge depends on the funds you have invested in and is taken as a percentage of your fund holdings. More detailed information is available in the Fund Prospectus which you can obtain from the relevant fund provider. Additional expenses: Fund managers may charge an additional expense to cover costs such as fees for registrars, auditors and regulators. Please note that some funds may display the AMC and additional expenses as the Total Expense Ratio (TER). For funds with a KIID, charges information is disclosed differently as ongoing charges will represent the annualised ratio of total costs relating to the fund s assets. Total Expense Ratios (TERs) and Other expenses are supplied to us periodically by fund providers; however it is possible for them to change materially during the intervening period if performance fees have been applied. The most up-to-date charges can be obtained directly from the fund provider. Please note for ETFs and ETCs the underlying providers will deduct an AMC and other expenses, which in total is known as the TER. This TER number varies based on the strategy and is levied by the underlying provider within the strategy. Performance fee (or charge): Some funds are subject to a performance fee, which is taken from the fund by the fund manager in addition to the annual management charge when the fund exceeds pre-defined performance targets. The fee is shown as an annual percentage (from 10% to 20%), of any returns the fund achieves above that performance target. The preceding year's performance fees may be included within TERs and ongoing charges where applicable. Typically the performance target will relate to the fund outperforming a target rate or benchmark, however the precise calculation method will vary depending on the fund. For some funds a performance fee may apply even if the fund falls in value. The 'Fund Information' section shows which funds charge performance fees. It is important that you understand how this charge will apply to your chosen fund. We strongly recommend that you refer to the Fund Prospectus for further information on how a performance fee is calculated. Our service charges Initial charge The initial charge on your investment contributes to the cost of setting up your investment. This fee will vary and depends on the fund you choose and whether you have a financial adviser. In cases where we are providing a service to you directly (i.e. there is no financial adviser involved) the amount retained by us ranges from 0% up to 5.5% of the value of your investment. In circumstances where you have a financial adviser this fee ranges from 0% to 2.5% of the value of your initial investment. Please note, you do not have to pay this charge if you choose to pay an Account Fee. See below for further information. Ongoing Service Fee: A percentage based annual charge is paid to us by you in return for providing custodian, administrative and support activities associated with your investment. These activities include the safeguarding of your holding, servicing transactions, the provision of reporting and statements, and access to our call centre. For most funds, our service fee is included in the fund manager's AMC and we receive it directly from that fund manager. If it is not included in the AMC, totally or partially, we will collect the full or the outstanding amount from the holdings within your account by unit deduction. Typically the unit deduction will be taken from the largest holding in your account. A service fee of 0.25% is payable outside the AMC on all Exchange traded products, ETFs and ETCs. The rate of the Service Fee depends upon the type of fund you choose, the annual management charge applied and whether you have a financial adviser. In circumstances where you have a financial adviser, the Service Fee is typically 0.25% per year of the fund value. For further information regarding what your adviser receives please see the relevant section below. In cases where Fidelity FundsNetwork is providing a service to you directly (i.e. there is no financial adviser involved), the Service Fee is typically up to 0.75% per year. The maximum Service Fee will be no more than 1% per year. For example, if you are a direct client and invested 10,000 and the fund value did not change we would typically charge a Service Fee of 75 per year. If you have an adviser we would typically charge a Service Fee of 25 per year. Please speak to your adviser for further details of how they will charge for their services. Fund manager registration fee: We receive a quarterly fund registration fee from fund managers in respect of each fund offered on Fidelity FundsNetwork. This is to cover certain running costs. Those funds with lower running costs may typically be charged 100 per fund, per quarter. Those funds with higher running costs may be charged up to 250 per fund, per quarter. As part of our agreement with each fund manager we also provide a limited range of optional administration services available at an additional cost. These costs are incurred and charged as and when those services are used (e.g. mailing investors about funds' name or objectives changes). Full details of what fund providers pay us is available on request. ISA Cash Park: Each year we receive an annualised rate of 0.4% of the value of any holdings you have in the ISA Cash Park from the Royal Bank of Scotland. Transactional Switching: If you are switching between funds rather than making a new investment, you will normally pay a switching fee of 0.25% instead of the initial charge. This will also be the case if you are moving money from the ISA Cash Park into a fund. For Exchange Traded Products the dealing charge of 0.1% will also apply in addition to the switching fee. If you are switching into a fund with no initial charge, then there will be no switching fee. For investment fund accounts, if you are switching from a fund with no initial charge then when you first switch into a fund that does have one you will pay the initial charge rather than the switching fee. If initial commission is paid to your adviser then this will be deducted from your investment in addition to the switching fee. 6

7 Exit charge: We do not currently charge you for cashing in the majority of funds you hold with us, or for transferring or re-registering your assets away from us. We may introduce this charge in the future. Note that exchange traded products are subject to an ETF Dealing Fee when they are sold. Foreign exchange service charges: Foreign exchange transactions required to handle client purchases/redemptions may be aggregated and will be carried out by Fidelity's central treasury department. Fidelity will make a service charge for these transactions as described below. This charge will be incorporated into the exchange rate provided. Transaction per fund rate: Up to $50,000: 1% $50,000 to $150,000: 0.5% Over $150,000: 0.25% Account Fee Investors who work with an adviser can choose to pay an Account Fee. This means you will not have to pay any platform initial charges for investments submitted online into Investment Fund Accounts and ISAs. There will also be no switching fees as long as the switches are submitted online. Note however that dealing charges on exchange traded products will still apply. In addition, there will be no initial charges on ISA transfers that are made using our application form. This is because ISA transfers cannot currently be submitted online. The current cost of the Account Fee is 45 per year and this is fixed until June Please note that annual management charges will still apply. For dual priced funds there maybe an additional bid-offer spread. For more information about the Account Fee, including details of how and when it is paid, please speak with your adviser. Adviser charges Initial Initial commission: Where you have agreed to pay a commission to your adviser, we will make this payment from the initial charge that is applied when you make your investment. Ongoing Ongoing commission: Where you have agreed to pay commission to your adviser for the ongoing management of your funds, we will make this payment out of the Annual management charge of the fund. You will not have to pay anything extra to cover it. Adviser Ongoing Fee: If you agree to pay your adviser an ongoing fee, the ongoing commission that would normally have been paid to your adviser will be offset against the agreed fee. Details of any initial and ongoing charges you have agreed with your adviser are shown in the 'Effect of charges' section. 7

8 Answering your questions Investing with Fidelity FundsNetwork Can I invest through Fidelity FundsNetwork? Yes, if you are resident in the UK and aged 18 years or over. Please note this age limit includes our Cash ISA. Investment into a Junior ISA can be made on behalf of UK resident children who are under the age of 18 who do not have a Child Trust Fund. How much can I invest? Investment Fund Accounts There is no maximum amount you can invest in our Investment Fund Accounts but there are minimum levels. ISAs These are outlined in the 'Your commitment' section. The ISA limit for the 2012/2013 tax year is 11,280. You can invest the whole amount in a Stocks and Shares ISA, or up to 5,640 in a Cash ISA with the balance (up to 11,280) in a Stocks and Shares ISA. Tax years run from the 6th April to 5th April the following year. Once you have fully used your ISA allowance, any withdrawals you make cannot be reinvested back into your ISA until the next tax year. You may open both a Stocks and Shares ISA and Cash ISA with one provider or with two different providers. However, if you choose to use two providers, it is your responsibility to ensure you keep within the annual limits. Junior ISAs Junior ISA limit for the 2012/2013 tax year is 3,600. You can choose how you split the investment amount between the Stocks and Shares ISA and the Cash ISA although the maximum amount invested between both the Stocks and Shares ISA and the Cash ISA cannot exceed 3,600 in any one tax year. How can I open an account? Investment Fund Accounts, ISAs and Junior ISAs Your first investment can usually be made by post, by phone, or online at and will be made on your behalf if working with an adviser. However, you cannot invest over the phone in Fidelity's range of offshore funds outside an ISA. If you open an Investment Fund Account by phone or online, you must sign the registration document which accompanies your confirmation note and return it to us. Until we receive this document, you will not be able to cash in your investment or switch it to another fund. You can also open an account by transferring an existing ISA to Fidelity FundsNetwork, however this service is not currently available for Junior ISAs. How can I pay? Investing online When you invest a lump sum online, you can pay for your investments straight away by using your debit card. Alternatively, a cheque can be sent, but we will not be able to open your investment until it has cleared. Please see the section below for more details about paying by cheque. You can also set up monthly savings plans online which will be done on your behalf if working with an adviser. All you have to do is provide your bank account details and we will tell you when the Direct Debit has been set up and the date we will collect your payment each month. You can increase, decrease (subject to minimum levels) or stop your monthly contributions at any time. Instructions will be processed within 5 days of being received, but may not take effect until after the next collection date for the monthly savings plan. All online investments must be made in sterling. Investing by phone or post You can pay for your lump sum investments by cheque or debit card. Please see the section below for more details about paying by cheque. If you want to open a monthly savings plan by post, you will need to complete the direct debit mandate section of the application form. We will tell you when the Direct Debit has been set up and the date we will collect your payment each month. If you want to open a monthly savings plan by post, you will need to complete the direct debit mandate section of the application form, which will be done on your behalf if working with an adviser. We will tell you when the Direct Debit has been set up and the date we will collect your payment each month. Please speak to your adviser if you would like to set up a monthly savings plan for an existing investment. Alternatively, you can find relevant forms online at You can increase, decrease (subject to minimum levels) or stop your monthly contributions at any time. Instructions will be processed within 5 days of being received, but may not take effect until after the next collection date for the monthly savings plan. Phone and postal applications for Fidelity's offshore funds can be made in currencies other than sterling. If you want to do this, you will need to make payment by bank transfer net of all bank charges. We can provide details of the bank account to use on request. Paying by cheque Please contact your adviser or turn to the 'Contact us' section to find out how you can get in touch with us Personal cheques should be made payable to Fidelity. The account name on the cheque must be the same name as the person who is making the investment - we do not accept third-party cheques on any investments, unless they are submitted under a power of attorney or as payment for investment into a Junior ISA. Banker's drafts or building society cheques must be endorsed by the bank or building society with its stamp, and your name and address must be on the back of the cheque. What types of offshore funds are available? Société d'investissement À Capital Variable (SICAV): A type of open-ended investment fund (OEIC) common in Western Europe. These funds are subject to local regulations. This can also include various ETFs. Irish domiciled OEICs and Unit Trusts: Types of Investment funds, including open-ended investment funds, which are subject to Irish regulations. This can also include various ETFs. ETFs: A type of open-ended collective investment schemes that are listed on stock exchanges. ETFs are bought and sold like ordinary stocks through brokers or financial advisers. The underlying assets can be either "physical" (such as company shares) or "synthetic" (in which case the 8

9 assets are complex financial instruments, usually issued by an investment bank). The assets are often held by a custodian. ETCs: A type of debt securities designed to track a specified commodity such as precious metals and futures. ETCs invest in or track a commodity or basket of commodities. Like ETFs, the underlying assets can be either physical or synthetic. There are a range of unique characteristics and risks associated with ETFs and ETCs which investors should understand before investing. Exchange traded products can generate further revenue by lending holdings to other institutions. The other institution will pay for the loan and part of this payment will be made into the exchange traded products and part retained by the ETF product provider. If the other institution were to fail, and the exchange traded product is unable to recover its holdings, investors would suffer a loss. Exchange traded products have policies which attempt to reduce this possible risk (e.g. by spreading stock lending across several institutions). ETFs and ETCs aim to replicate the performance of an index or commodity. However, there are certain factors that need to be taken into account that would lead to a deviation from the performance of the underlying index or commodity. This difference is often referred to as tracking error. A tracking error can work both to an investor's detriment or advantage. Usually it works against investors as factors such as charges would detract from the returns generated and lead to underperformance compared to the index. There are several other factors that could lead to tracking errors and, while not exhaustive, some of these may be: Charges - The ETF or ETC providers will levy an annual charge for managing the exchange traded product. These charges will detract from performance and would lead to a deviation away from the index or commodity price. Cash holdings - ETFs and ETCs may hold small cash buffers within the fund. These could be held to help liquidity or could be dividend payments that have been received as cash. These cash holdings would not be exposed to the underlying asset and will thus lead to performance deviations. Unlike charges, the impact of cash holdings can be both negative or positive depending on the return generated by the underlying asset class. Index changes - index providers (e.g. FTSE, or Dow Jones) will periodically make changes to the underlying index constituents. This change has to be reflected by an ETF provider. As this change is reactive the timing difference could lead to potential performance deviation. Optimisation approach - As an index is a broad market replication, it can at times include securities that are difficult to obtain or deal in. This tends to occur more in emerging markets or less liquid markets. Optimisation is a technique for building an index-based portfolio using only a subset of the securities in the index. This will lead to performance varying from the full index. Fidelity FundsNetwork at present only offers ETFs and ETCs traded on the London Stock Exchange. However, many of the indices an ETF might track are open outside the London Stock Exchange hours. As a result, the ETF is trading during periods when the underlying index is closed. This can result in a disparity between the daily performance of the ETF and the index being tracked. Please note that at present Fidelity FundsNetwork does not offer any ETCs or ETFs that make use of synthetic instruments. For additional information on ETFs and ETCs please refer to the provider's prospectus. Also please note that the Fidelity FundsNetwork service proposition for ETFs and ETCs differs from the standard market offering. Please refer to other sections of this document for additional information. In view of their complexity, it is recommended that you seek financial advice before investing in ETFs and ETCs. What about tax? UK residents are subject to the UK Income taxation regime. All UK funds are subject to the UK taxation regime. All offshore funds are subject to their local tax regimes, and returns to UK residents are subject to the UK taxation regime. You can find detailed tax information in the 'Taxation' section. Investment Fund Accounts You may be required to declare income or any capital gains on your self assessment tax return. Any sale of units (or ETFs and ETCs), including switches, could trigger a capital gains liability. Income distributions are paid net of basic rate tax. If you are a basic rate taxpayer, you will have nothing further to pay. If you are a higher rate or additional rate taxpayer, you may be liable to additional income tax. Dividends are paid net of a 10% tax credit. If you are a basic rate taxpayer, you will have nothing further to pay. If you are a higher rate or additional rate taxpayer, you may be liable to additional income tax. Offshore funds (including ETFs and ETCs) are subject to local tax rules, but UK tax applies to the gains and income you receive from the funds. The tax you may have to pay is dependent on the status of the fund under UK taxation law. If you require further information on the tax treatment of these funds, please contact us or speak with your adviser. ISAs and Junior ISAs You do not have to pay tax on income or any capital gains arising from your ISA investments. This means you do not need to declare your ISA investments on your tax return. Interest distributions are paid net of basic rate tax. We will reclaim this on your behalf and apply it to your ISA. Dividend distributions are paid net of a 10% tax credit and this is not reclaimable. Interest on money held in a Stocks and Shares ISA including ISA Cash Park is paid net of 20% HMRC interest charge which is not reclaimable. Higher rate tax payers are not liable for any additional charge. A Junior ISA is not liable to this flat rate charge. What price will I get when I buy or sell units/shares? For most funds, we will carry out your instructions on the day we receive them, as long as they arrive before the dealing cut-off time. Unless shown in the 'Fund dealing cut-off' section, funds are priced at 12 noon and the dealing cut-off is 11am. (Please note that if your adviser is using our automated bulk dealing or rebalancing service, or Unit Trust/OEIC to ISA switching facility, different cut-off times will apply. Your adviser can provide you with more information about this.) Fund prices are set on a forward-pricing basis which means the price is determined at the next valuation point and you will not know in advance 9

10 the exact price you will pay/receive. As the value of the fund can move up or down this affects the price of each unit or share. The price may also take into account trading costs. Please note that in the event of a fund pricing more frequently than once a day, we will only use the provider's main valuation point. Deals received after the relevant cut-off point will get the next available price. We may apply an early cut-off time on certain public holidays such as Christmas Eve and New Year's Eve where this is imposed by fund managers. Any deals received after a revised cut-off will receive the next available price. For offshore funds, additional public holidays in a fund's country of registration may affect your ability to place deals on those days. Please note that Fidelity offshore funds (whether held in or outside the ISA wrapper) can be dealt on a UK Bank Holiday. However, any other third party offshore fund offered by other fund managers on Fidelity FundsNetwork will not be dealt on a UK Bank Holiday. For ETFs and ETCs: All ETFs and ETCs currently offered through Fidelity FundsNetwork trade via a third party broker on the London Stock Exchange. While the underlying ETFs and ETCs price in real time, Fidelity FundsNetwork will aggregate all deals and only trade once a day. More detail on dealing cut-off times and pricing points can be found in the section 'Fund Dealing cut-off times'. Please note regardless of the time you submit your trade before the daily dealing cut off time, the price that you get is determined by the price the third party broker achieves when they place Fidelity FundsNetwork's aggregate daily trade, along with dealing costs. You can find the dealing times for each fund in the section 'Fund Dealing cut-off times'. Where can I find the latest prices? You can check fund prices by visiting Your adviser will also be able to help, and many fund prices are published in the financial press. Will I receive an income from my investments? Investment Fund Accounts Funds that pay income do so either as dividends or interest. You can choose to have this income paid to you or reinvested back into your account. If you choose to receive the income, you will need to complete an income mandate form. We will make payment within ten days of receiving monies from the fund manager. Before the income is paid out, it is held in a cash account and you will not receive any interest on it. Payments are made by Direct Credit to your nominated bank/ building society account. You can find out how often your chosen fund pays out an income by reading the Fund Prospectus. Alternatively you can contact us or speak with your adviser. ISAs and Junior ISAs Dividends and interest from all the funds in your ISA are brought together every month and paid out as a single amount. This means that if you hold the same fund inside and outside an ISA, you may receive the income payments on different days. What's more, if your funds pay income less frequently than once a month, you will only receive ISA income payments in the months that we have dividends or interest to pay out to you. Any income accrued in a Junior ISA will be re-invested as income accrued can not be withdrawn until the account holder has reached the age of 18. Before income is paid out from your ISA, it is held in a cash account and you will not receive any interest on it. What if I need some of the money held in my investments? If you require money from your investments on a regular basis, we offer a service called a monthly withdrawal plan. To take out a monthly withdrawal plan you or your adviser will need to submit the relevant application form to us. Investment Fund Accounts You can cash in all or part of your investment at any time without paying an exit penalty. ISA and Junior ISAs If you cash in all or part of your investment, you will not pay any exit fee - but you will lose that part of your ISA allowance. No withdrawals can be made from a Junior ISA until the account holder has reached the age of 18. What documentation will I receive after I invest? For lump sum investments, you will be sent a confirmation note showing details of your investment. We do not issue share certificates, so you should keep this safe as a record of your transaction. If you set up a monthly savings plan, you will receive a letter confirming that the plan has been set up and telling you the monthly collection date. We will not send you confirmation of each monthly investment after that, although full details will appear on your statements. We will also send you a statement and valuation at least once a year. This will be posted to you, unless you choose to receive your documents online through our website. Please visit to find out more. How can I find out how my investments are doing? Your adviser will be able to provide you with details of your investments. You can also sign up to our online account management service where you can view an up-to-date valuation of your holdings. Alternatively, you can ask us to send you a valuation by post. See the 'Contact us' section to find out how you can get in touch with us. Will my adviser receive any other payments? We may provide your adviser with non-monetary benefits, such as training, marketing literature, conferences, IT facilities and invitations to business-related events. We can provide you with full details of actual benefits provided upon request. Some advisers have a financial interest in certain funds and/or fund managers. Where this is the case, your adviser will provide you with details. 10

11 Will Fidelity FundsNetwork receive any other payments? Additionally Fidelity FundsNetwork may receive non-monetary benefits from third parties, such as invitations to business-related events. We can provide you with full details of the benefits received from the provider of your chosen funds on request. ISA transfers An ISA transfer involves the sale of the original holding with the previous provider and purchase of the new holding with the new provider within the ISA wrapper. The right to cancel only applies to the purchase of the holding with the new provider. The sale of the original holding with the previous provider will still continue. If you are cancelling a transfer to us from another ISA manager, you must confirm whether: You require a cheque payable to your previous ISA manager or another ISA manager. You are responsible for passing the cheque on to the ISA manager. You wish the money to be paid to you. If you select this option, you will lose all future tax benefits associated with the sum. It cannot be reinstated into an ISA, though you can still invest it if you have any ISA allowance remaining in the tax year. You would like to invest the proceeds into a different fund (please provide fund code and fund name). Additional investor information Can I switch from one fund to another? Yes. You can switch from one fund to another within the account you hold. There may be a charge associated with any switches you make. See the 'Charges and expenses' section for more information. How can I cash in my investment? You can cash in all or part of your investment at any time without paying an exit penalty. We will carry out your instructions on the day we receive them, as long as this is before the dealing cut-off time. However this may be affected by public holidays both in the UK and, for offshore funds, in the country of registration. Please note that Fidelity offshore funds (whether held in or outside the ISA wrapper) can be dealt on a UK Bank Holiday. However, any other third party offshore fund offered by other fund managers on Fidelity FundsNetwork will not be dealt on a UK Bank Holiday. Payment is normally by direct credit to your personal bank or building society, unless prior agreement has been obtained from us for a cheque payment. If you are redeeming an ISA, we will not proceed with the transaction until the method of payment has been confirmed and full bank details have been provided. No withdrawals can be made from a Junior ISA until the account holder has reached the age of 18. If a monthly saving collection takes place while processing your request, we will require a new instruction to sell the remaining amount. If you place your instruction over the telephone, we will need to send you a renunciation form and the process will not begin until you have signed it and returned it to us. If you are investing on a monthly basis, please give us at least five business days to cancel your direct debit. Payment will be made to you once proceeds are received by Fidelity from the relevant fund provider (if you are cashing in an investment in a non-fidelity product) or from the custodian (in the case of a Fidelity product). Fidelity may also pay you an amount equal to the expected sale proceeds in advance of receiving them, in which event the proceeds will be due and payable to you at the time of payment by Fidelity. If Fidelity does so, then (i) the proceeds will be recovered by Fidelity on receipt from the provider/custodian; and (ii) you agree that if the provider/custodian fails to pay the proceeds to Fidelity then you will repay Fidelity the amount paid to you in advance. Can I take regular withdrawals from my investments? You can arrange to take regular withdrawals from your investments on a monthly, quarterly, semi-annual or annual basis. Payment will be made to your bank account within seven business days of the specified withdrawal dates. No regular withdrawals can be made from a Junior ISA. Can I hold cash in a Stocks and Shares ISA? You cannot invest in cash funds within a Stocks and Shares ISA. However, you may temporarily hold cash within a Stocks and Shares ISA in the ISA Cash Park service for an ISA or Junior ISA. The ISA Cash Park is not available within a Cash ISA. What is the ISA Cash Park? The ISA Cash Park service is designed to provide you with a temporary shelter in times of market volatility, or a way to secure your ISA allowance for the current tax year until you have selected suitable investments. Cash can only be held in a Stocks and Shares ISA for the purpose of investing in qualifying stocks and shares investments, so the ISA Cash Park should not be seen as a longer term investment choice. HMRC may require us to return the cash to you if you do not invest it. This would mean you would lose that proportion of your ISA allowance and the tax benefits associated with it. The minimum initial lump sum investment in the ISA Cash Park is 1,000. You cannot set up a monthly savings plan into ISA Cash Park. Money within the ISA Cash Park will be held by The Royal Bank of Scotland on behalf of Fidelity. If we receive your instruction before midday, we will place the deal into the ISA Cash Park that day. If we receive it after midday, the deal will be placed on the following day. You will start to earn interest on the fourth business day after a deal is placed into the ISA Cash Park. Interest is accrued daily and paid monthly. For the latest interest rates, please visit You will continue to earn interest up to the day that a deal is placed to move money out of the ISA Cash Park. Fidelity will retain some of the interest earned, typically at a rate of 0.4% of the balance. This rate may be higher depending on the total amount deposited with The Royal Bank of Scotland. We can provide you with full details on request. 11

12 ISA Cash Park - how do I apply? If you are investing online or over the phone, please follow the normal process to invest in the ISA Cash Park. If you are investing by application form, simply write CAPA in the Fund Code column and ISA Cash Park in the Fund Name column of the ISA application form. You can invest in ISA eligible funds at the same time as investing in the ISA Cash Park. The total investment cannot exceed the overall limit of 11,280 for an ISA in the 2012/2013 tax year and 3,600 for a Junior ISA. You can only use the ISA Cash Park to hold money temporarily until you have made your investment decision. Can I change my Cash ISA to a Stocks and Shares ISA? Yes. You can transfer money held in a Cash ISA to a Stocks and Shares ISA by completing the relevant application form and returning it to us. Please note that if you choose to transfer money from a Cash ISA to a Stocks and Shares ISA, you will not be able to move the money back to a Cash ISA at a later date. Can I change my Stocks and Shares ISA to a Cash ISA? No. You cannot transfer money held in a Stocks and Shares ISA to a Cash ISA. Can I move funds held in an Investment Fund Account into an ISA? Yes. Fidelity FundsNetwork offer an OEIC to ISA transfer service for moving existing Investment Fund Account holdings held on Fidelity FundsNetwork into a Stocks and Shares ISA. Please be aware that if you use this service you will be out of the market for up to 3 business days. This is because holdings in your Investment Account are sold and the proceeds are used to buy holdings in your ISA. If you do not already have an ISA with us for the current tax year, you will also need to complete an ISA application form. A switching charge may apply, as outlined in the 'Charges and expenses' section. You can find more details about this service on our website or by calling our contact centre. Can I cancel my investment? You may cancel your investment if you are a resident of the United Kingdom (which doesn't include the Channel Islands or the Isle of Man) and you make a new investment or fund switch as a result of receiving investment advice. Fidelity FundsNetwork does not give investment advice. As some advisers operate on an execution-only basis, we will assume that you have not received advice from anyone, unless you tell us that you have. You have 14 days to cancel your investment, which starts when the deal is placed. If you decide to cancel an ISA within this period, you will not lose your ISA allowance. If you invest through our monthly savings plan, or use our phasing option for lump sum investments (which gradually invests your money for you over a six-month period), the right to cancel will only apply when you start the savings plan or make your initial lump sum investment. If you decide to cancel your investment, we will repay your money minus any fall in the value of your investment. For higher-risk funds, a fall could be substantial. You will have to repay any amounts already paid to you under the contract. If you decide not to cancel, you will still be able to withdraw your money whenever you want. However, we will not refund any charges you have paid. Please note that in the event that a Junior ISA is cancelled or voided, the original monies will be returned directly to the child by cheque. How do I cancel my investment? If you want to cancel, you should write to: Cancellations Department, Fidelity Worldwide Investment, Oakhill House, 130 Tonbridge Road, Hildenborough, Kent TN11 9DZ, giving details of the investment that you would like to cancel. You must include the deal/transaction reference as specified on your confirmation of transaction. Please consult your adviser for more information. New investments If your investment was made by debit card, cancellation monies will be refunded back to the same card. All other cancellation payments will be made by electronic transfer to bank details you have provided or by cheque, payable to yourself. Switches A switch involves the sale of an original holding and purchase of a new holding. The right to cancel only applies to the purchase of the new holding. The sale of the original holding will still take place. If you cancel a switch relating to an Investment Fund Account, we will return the proceeds of your original investment back to you. If you cancel a switch relating to an ISA, you ll need to tell us whether you want us to: Invest the proceeds into a different fund (please provide fund code and fund name) Return the proceeds to you. This means you will lose the tax benefits of the investment and some or all of your ISA allowance. If your instruction does not specify one of these options, we will place the money into our ISA Cash Park until you contact us. Please see above for more detail on our ISA Cash Park. What happens if Fidelity FundsNetwork becomes insolvent? Financial Administration Services Limited, who operates the Fidelity FundsNetwork service, is covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if we are unable to meet our financial obligations, but this will depend on the type of investment you made and the circumstances of the claim. Investments in offshore funds, including ETFs and ETCs, are not covered by the FSCS. The maximum compensation is 50,000 per claimant. For further information please refer to the FSCS website or contact FSCS on What happens if The Royal Bank of Scotland plc becomes insolvent? Money paid into the ISA Cash Park will be deposited with The Royal Bank of Scotland plc (RBS) by Financial Administration Services Limited. RBS is a member of the FSCS, and money paid into the ISA Cash Park is a protected deposit for the purposes of this Scheme. If RBS were to fail, the FSCS can pay compensation up to a limit of 85,000 to each eligible claimant. 12

13 Please speak to your adviser for more information. The compensation limit of 85,000 applies to all the accounts that the eligible claimant holds with RBS (whether they are a single or joint account holder). This means that if RBS were to fail and the eligible claimant had deposits exceeding 85,000 with RBS, the amount over 85,000 would not be covered by the Scheme. For further information about compensation arrangements, please refer to the FSCS website How do I make a complaint? If you would like to make a complaint, you should write to us. We can give you full details of the procedure we have set up for dealing with complaints. Alternatively, you may wish to make a complaint through your adviser. If you are not satisfied with our response, you can take your complaint to the Financial Ombudsman Service (FOS). See the 'Contact us' section to find out how you can get in touch with us. What is my customer category? The FSA requires us to put our customers into groups so that we can treat them according to their level of knowledge about investments. These groups are: retail client professional client eligible counterparty We treat all customers who invest in the products described in this document as retail clients. It gives you the greatest level of protection under the regulations and ensures you get full information about your investments. Taxation Fund taxation All returns from the funds (including ETFs and ETCs) are net of any taxes they are required to pay on the investments they undertake. In addition the taxation of funds will be subject to local tax legislation. The fund (including ETFs and ETCs) will pay any taxes it is required to out of the fund and there are no additional taxes taken from returns to investors, except as detailed below. UK OEICs and Authorised Unit Trusts Funds will each be subject to corporation tax at 20% on the net chargeable income after deducting allowable expenses. However dividends from UK companies are received with a 10% notional tax credit and no further tax is payable by the fund on that income. Most foreign dividends are not subject to UK tax. Gains on the disposal of investments are not subject to tax. UK Stamp Duty Reserve Tax (SDRT) is chargeable on the value of surrenders and transfers in the fund at a rate of up to 0.5%. Offshore Funds (including ETFs and ETCs) Luxembourg domiciled funds Funds are not subject to tax in Luxembourg on income or gains on the disposal of investments. Funds are subject to the taxe d'abonnement at a rate of 0.05% per year (0.01% for cash and currency funds; nill for ETFs) based on the Net Asset Value of the fund. Irish domiciled funds In general, funds are not subject to Irish tax on their relevant income or gains. Payments to Irish resident, or ordinarily tax resident, investors are subject to Irish dividend withholding tax. Payments from Irish domiciled ETFs are not subject to Irish dividend withholding tax, but Irish resident, or ordinary resident, investors are required to pay Irish taxes in lieu of the withholding tax they would otherwise have suffered. Commodity ETFs (ETCs) In general ETCs are not subject to any taxes on income or capital gains in the jurisdictions in which they are domiciled. Investor taxation The following information applies to UK residents only and is based on UK tax legislation as at April UK OEICS and Authorised Unit Trusts Where income is paid it will be as either as a dividend or as interest depending on the type of fund. These income distributions are subject to income tax and your position is the same whether your distribution is re-invested or paid to you. Where a fund pays dividend distributions these are accompanied by a notional 10% tax credit If you are a basic-rate tax payer, you will not have any further tax to pay on dividend distributions. If you don't pay tax you cannot reclaim the tax credit on dividend income. If you are a higher-rate and/or additional rate taxpayer you will be liable to further tax on the grossed up dividend, depending on your individual circumstances. Where a fund pays interest distributions these are paid after a deduction of 20% UK income tax. If you are a basic-rate tax payer there is nothing further to pay on interest distributions. If you don't pay tax you can reclaim the tax deducted on interest distributions from HMRC. If you are a higher-rate or additional rate tax payer you maybe liable for additional amounts of UK income tax depending on your individual circumstances. You may be liable to capital gains tax on the sale of your shares if your net chargeable gain exceeds the annual exempt amount, which for 2012 / 2013 is 10,600. Offshore Funds Reporting / non-reporting funds Distributions from offshore funds (whether reporting funds or not) are subject to different tax treatments in the hands of investors according to whether the fund is treated as paying a dividend or interest distribution during the accounting period to which the distribution relates. If the proportion of the assets of the fund invested in debt-related securities (e.g. bonds and other instruments which generate a return in the form of interest ) was less than 60% throughout the accounting period, distributions are deemed to be paid net in the same way as UK dividends i.e. with a notional 10% tax credit. 13

14 If you are a basic-rate tax payer, you will not have any further tax to pay on dividend distributions. If you don't pay tax you cannot reclaim the tax credit on dividend income. If you are a higher-rate and/or additional rate taxpayer you will be liable to further tax on the grossed up dividend, depending on your individual circumstances. Where a fund has invested more than 60% of its assets in 'debt-related securities'. If you don't pay UK tax no UK tax will be payable. If you are a basic-rate tax payer, you will be liable for 20% UK income tax on the distribution. If you are a higher-rate and/or additional rate taxpayer you will be liable to pay 20% UK income tax on the distribution and, depending on your individual circumstances, you maybe liable for additional amounts of UK income tax. If you have shares in a fund (including ETFs and ETCs) which has submitted an election to HMRC to be treated as a 'reporting fund' you will be subject to tax on the greater of any actual cash distribution received or the 'total reportable income' attributable to your holding for the relevant accounting period. Any amount in excess of the actual cash distribution will be taxed on the same basis as any cash distribution made by the fund. If you sell shares in an offshore fund which has elected to be treated as a 'reporting fund', the same capital gains rules apply as for UK OEICs and Unit Trusts (with a deduction for any amounts already taxed as 'reportable income'). If you hold shares in non-reporting funds, you will be subject to income tax only to the extent that you receive cash distributions from the fund. However, if you sell shares in a fund which has not elected to be treated as a 'reporting fund', the gain will be liable to corporation or income tax as an offshore income gain rather than to capital gains tax. Losses on funds which have not elected for 'reporting status' cannot be taken into account to offset such gains. If you fall within the charge to UK corporation tax you will generally be exempt from tax on foreign dividends. However, if the fund making the distribution fails the qualifying investments test for the relevant accounting period, the distribution will be treated as interest income in the hands of corporate investors and subject to tax accordingly. Please note as currently ETFs and ETCs are treated as offshore funds for UK tax purposes in the hands of the end investors the information above will also apply to them. However, the UK tax treatment of ETCs in particular may be subject to change, which could affect your investment in the future, and the position outlined here is based on information provided by the ETC issuers. An alternative approach by HMRC to that outlined by the ETC issuers could result in returns from trading ETCs in particular being subject to income tax rather than capital gains tax. The ongoing tax liabilities are determined by both your individual circumstances and the continued status of the offshore fund or exchange traded investment. If you are unsure of your tax liabilities you should consult a qualified tax advisor. It should be noted that even in the UK, not all tax laws and regulations treat ETCs as offshore funds, in particular for the purposes of the ISA regulations and the EU Savings Directive, and some differences may arise as a result in relation to information provided to tax authorities under those regulations. If you are uncertain about the tax implications of offshore investment you should speak to your adviser. 14

15 Fund dealing cut-off times Unless shown in the table below, funds are priced at 12 noon and the dealing cut-off time is 11am. Fund Pricing time Dealing cut-off Allianz Dynamic Growth fund 11.59pm 4.00pm ** Architas MA Passive Dynamic Fund, Architas MA Passive Growth Fund, Architas MA Passive Reserve Fund noon 11.00am Architas Multi-Manager Diversified Protector 70, Architas Multi-Manager Diversified Protector noon 3.30pm previous day * All other Architas funds 8.00am 4.00pm previous day * Aviva Investors Multi-asset Fund I, Aviva Investors Multi-asset Fund II, Aviva Investors Multi-asset Fund III, Aviva Investors Multi-asset Fund IV, Aviva Investors Multi-asset Fund V 2.00pm 1.00pm ** Aviva Investors Balanced Fund of Funds, Cautious Fund of Funds and Growth Fund of Funds 9.00am 4.00pm previous day * Aviva Investors Diversified Assets Fund, Diversified Strategy Fund and UK Index Tracking Fund. 5.00pm 4.00pm ** Baillie Gifford (all funds) 10.00am 4.00pm previous day * Barclays High Income Portfolio Class A, Barclays Income Plus Portfolio CL A Inc, Barclays Income Plus Portfolio CL A Acc Barclays US Alpha Fund B Inc, Barclays Europe (ex-uk) Alpha A Inc, Barclays Europe (ex-uk) Alpha B Inc, Barclays Sterling Bond B Inc, Barclays UK Lower Cap Fund B Inc, Barclays US Alpha Fund A Inc, Barclays UK Alpha Fund B Inc, Barclays UK Alpha Fund A Inc, Barclays UK Lower Cap Fd A Inc Barclays Wealth Global Markets 1 CL B Inc, Barclays Wealth Global Markets 1 CL B Acc, Barclays Wealth Global markets 2 CL B Inc, Barclays Wealth Global Markets 2 CL B Acc, Barclays Wealth Global markets 3 CL B Inc, Barclays Wealth Global Markets 3 CL B Acc,Barclays Wealth Global Markets 4 CL B Acc, Barclays Wealth Global Markets 5 CL B Acc noon 4.00pm previous day* 1.00am 4.00pm previous day * 11.00pm 1.00pm ** City Financial Strategic Gilt Fund 10.00am 4.00pm previous day * Close Escalator am 4.00pm previous day * Close (all other funds) noon 4.00pm previous day * Exchange Traded Products 3.00pm *** 1.30pm ** F & C US Smaller Companies, F & C North American Fund noon 5.00pm previous day * Fidelity - OEICs, unit trusts and recognised offshore currency funds. Exception: where an investment into Fidelity Cash Fund is paid for by cheque, instructions received before the dealing cut-off will get the next business day's price noon noon Fidelity SICAV funds - including those offered within an ISA Exceptions - those funds listed below, including when offered within an ISA Fidelity ASEAN, Asian Aggressive, Asian Bond, Asian High Yield, Asia Pacific Dividend, Asia Pacific Property, Asian Special Situations, Australia, China Focus, China RMB Bond, Euro Cash, Euro Stoxx 50, Greater China, India Focus, Indonesia, Japan, Japan Advantage, Japan Dividend Growth, Japan Smaller Companies, Korea, Malaysia, Pacific, Smaller Companies, Singapore, South East Asia, Taiwan, Thailand, US Dollar Cash 5.00pm 5.00pm 5.00pm noon Franklin Templeton - offshore (all funds) 9.00pm 4.00pm Henderson Multi-Manager Active, Henderson Multi-Manager Managed 4.00pm 3.00pm ** Ignis MultiManager funds 10.40pm 2.00pm ** Ignis UK Property Fund 2.00pm 1.00pm ** J O Hambro Capital Management - Continental European, European, European Select Value, Japan, UK Growth L&G Global 100 Index, Global Health & Pharmaceuticals Index, Global Technology Index, International Index, North American and US Index Trusts am 4.00pm previous day * 3.00pm 2.00pm ** Octopus UK Absolute Equity 7.00am 4.00pm previous day * Octopus (All other funds) 10.00am 4.00pm previous day * Pictet Premium Brands P 4.30pm # 1.00pm previous day * Pictet Timber P Inc, Pictet Water P Inc, Pictet Japanese Equity Selection P Inc 3.00pm # 1.00pm previous day * Pictet Environmental Megatrend P Inc, Pictet Global Megatrend Selection P Inc 5.00pm # 11.00am previous day * Pictet Emerging Local Currency Debt P Inc 5.00pm # 1.00pm previous day * Pictet Russian Equities P Inc 1.00pm # 11.00am previous day * 15

16 Fund Pricing time Dealing cut-off Pimco - offshore (all funds) noon 4.00pm previous day * Prudential Defensive Portfolio, Cautious Portfolio, Cautious Growth Portfolio, Balanced Portfolio and Adventurous Portfolio noon 4.00pm previous day * PSigma Dynamic Multi Asset Fund Acc 8.00am 4.00pm previous day * Russell (all funds) 7.00am 4.00pm previous day * Scottish Widows High Income Bond Fund 2.00pm 11.00am Scottish Widows Share Classes HIFML noon 4.00pm previous day * Scottish Widows (all other funds) 8.00am 4.00pm previous day * Standard Life (all funds) 7.30am 4.00pm previous day * Smith & Williamson Enterprise E Inc, Smith & Williamson Sht-Dtd Cor Bd Inc 11.59pm 4.00pm SWIP High Yield Bond Fund 2.00pm 1.00pm ** SWIP European Corporate Bond, European, Global, Global SRI, Japanese, North American, Pan-European Smaller Companies, UK Smaller Companies. Threadneedle European ex UK Growth Fund, Threadneedle Managed Portfolio 3 Inc, Threadneedle Managed Portfolio 4 Acc, Threadneedle Managed Portfolio 5 Acc, Threadneedle Managed Portfolio 6 Acc, Threadneedle Managed Portfolio 7 Acc, Threadneedle UK Corporate Bond Fund Inc, Threadneedle UK Equity Income Fund Inc, Threadneedle UK Growth Fund Acc, Threadneedle UK Property Fund II Acc, Threadneedle UK Property Fund II Inc 8.00am 4.00pm previous day * 2.00pm 1.00pm ** TM Darwin Multi Asset Fund Acc, TM Darwin Multi Asset Fund Inc noon 4.00pm previous day * UBS Global Emerging Markets Equity Fund 2.00pm 1.00pm ** Virgin (all funds) 5.00pm 4.00pm ** Williams De Broe - offshore (all funds) 5.00pm 3.00pm * For deals received by fax, or for redemptions placed via the web, the dealing cut-off time for these funds is noon on the previous day. ** For deals received by fax, or for redemptions placed via the web, the dealing cut-off time for these funds is noon. *** For Exchange Traded Products, the actual pricing time may vary as deals are traded on a stock exchange by an executing broker. # These are quoted latest times and have been rounded to the closest hour as Pictet price their funds as the relevant markets close as opposed to a fixed point. 16

17 The effect of charges on your ISA The tables below give you an overall view of the effect of charges on your fund choices. This is for illustration purposes only. Please note that if an additional bid/offer spread is applied to your investment, it will not be factored into the illustration below. Therefore for such investments you will get back less than is shown in the 'What you might get back' column. Remember, these figures are not guaranteed and are only given as an example to help explain the effect of charges and expenses on an investment in each fund. For each fund we allocate a growth rate based on our expectations of their respective growth potential. Our expectations are predominantly set by the types of asset class that make up each fund and their respective weightings. Generally we expect the cash asset class to grow at a lower rate than bond assets, which, in turn, we expect to grow at a lower rate than equities. Please note, if you have selected income to be paid out and the income yield is greater than the growth rate the projection will reduce the value of your investment accordingly. Invesco Perpetual High Income Inc Initial charge inside ISA (lump sum) 0.00% Annual Management Charge 1.50% Other expenses 0.19% Service Fee included in AMC Lump sum 1,880 Monthly Savings Plan N/A At end of year Investment Income reinvested Effect of charges What you might get back at 7.00% 1 1, , , , , , ,880 1, ,120 In this example the charges would have the effect of bringing the illustrated investment growth down from 7.00% to 5.21%. Lazard Global Equity Income Inc Initial charge inside ISA (lump sum) 0.00% Annual Management Charge 1.50% Other expenses 0.09% Service Fee included in AMC Lump sum 1,880 Monthly Savings Plan N/A At end of year Investment Income reinvested Effect of charges What you might get back at 7.00% 1 1, , , , , , ,880 1, ,150 In this example the charges would have the effect of bringing the illustrated investment growth down from 7.00% to 5.31%. M&G Global Dividend Inc Initial charge inside ISA (lump sum) 0.00% Annual Management Charge 1.50% Other expenses 0.26% Service Fee included in AMC Lump sum 1,880 Monthly Savings Plan N/A At end of year Investment Income reinvested Effect of charges What you might get back at 7.00% 1 1, , , , , , , ,100 In this example the charges would have the effect of bringing the illustrated investment growth down from 7.00% to 5.13%. 17

18 Newton Global Higher Income Fund Initial charge inside ISA (lump sum) 0.00% Annual Management Charge 1.50% Other expenses 0.13% Service Fee included in AMC Lump sum 1,880 Monthly Savings Plan N/A At end of year Investment Income reinvested Effect of charges What you might get back at 7.00% 1 1, , , , , , ,880 1, ,140 In this example the charges would have the effect of bringing the illustrated investment growth down from 7.00% to 5.27%. Schroder Asian Income Fund Inc Initial charge inside ISA (lump sum) 0.00% Annual Management Charge 1.50% Other expenses 0.20% Service Fee included in AMC Lump sum 1,880 Monthly Savings Plan N/A At end of year Investment Income reinvested Effect of charges What you might get back at 7.00% 1 1, , , , , , ,880 1, ,120 In this example the charges would have the effect of bringing the illustrated investment growth down from 7.00% to 5.20%. Threadneedle Global Equity Income Inc Initial charge inside ISA (lump sum) 0.00% Annual Management Charge 1.50% Other expenses 0.18% Service Fee included in AMC Lump sum 1,880 Monthly Savings Plan N/A At end of year Investment Income reinvested Effect of charges What you might get back at 7.00% 1 1, , , , , , ,880 1, ,120 In this example the charges would have the effect of bringing the illustrated investment growth down from 7.00% to 5.22%. 18

19 Adviser charges on your ISA Initial commission The initial commission paid to your adviser is deducted from the fund manager's initial charge. The initial commission you will pay to your adviser is illustrated below. Fund Initial Commission Rate Amount Invested in year 1 Initial Commission Paid Invesco Perpetual High Income Inc 0.00% 1, Lazard Global Equity Income Inc 0.00% 1, M&G Global Dividend Inc 0.00% 1, Newton Global Higher Income Fund 0.00% 1, Schroder Asian Income Fund Inc 0.00% 1, Threadneedle Global Equity Income Inc 0.00% 1, Total 0.00 Ongoing commission The ongoing commission paid to your adviser is paid out of the distribution fee we receive from the fund manager. This is deducted from the annual management charge and you will not have to pay any extra to cover it. The actual amount paid to your adviser will vary with the performance of the fund. In the illustration below we provide an example of what your adviser will receive if there is no investment growth in the first year, and also what your adviser will receive if your investment doubles in value in the first year. Fund Ongoing Commission 0% growth in year 1 100% growth in year 1 Invesco Perpetual High Income Inc 0.50% Lazard Global Equity Income Inc 0.50% M&G Global Dividend Inc 0.50% Newton Global Higher Income Fund 0.50% Schroder Asian Income Fund Inc 0.50% Threadneedle Global Equity Income Inc 0.50% Total

20 Fund information We provide with the essential information you need to know about the fund either in our 'Fund Information' section where you will find a 'Fund Table' or a Key Investor Information Document (KIID). Please see below for further details. Fund Tables The fund tables provide key information about each fund, such as the fund's objectives and risks. Information about charges can be found in the 'Charges and expenses' section. The actual charges that will apply to your investments can be found in the 'Effects of charges' section. If a performance fee (or charge) is applied to the fund, this information will be detailed in the KIID and in the Fund Table under "Risk factors". Key Investor Information Document (KIID) The KIID is a short document containing the essential characteristics of an investment fund to help you understand the nature and the risks of investing. This will include the fund objectives, risk factors, charges, and performance history. The charges could be different from the charges you pay when investing through Fidelity FundsNetwork. Where a charge appears in the 'Effect of charges' section and in the KIID, the charges stated in the 'Effects of charges' section are the charges that will apply to your investment. More detailed information is available in the Fund Prospectus which you can obtain from the relevant fund provider. 20

21 Key Investor Information This document provides you with key investor information about this Fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this Fund. You are advised to read it so you can make an informed decision about whether to invest. The Invesco Perpetual High Income Fund (the Fund), a sub-fund of the Invesco Perpetual UK Investment Series ICVC. Share Class: income (ISIN: GB ). This Fund is managed by Invesco Fund Managers Limited, part of the Invesco Group. Objectives and Investment Policy The objective of the Fund is to achieve a high level of income together with capital growth The Fund invests primarily in shares of UK companies but may include some international investments The Fund is actively managed within its objectives and is not constrained by a benchmark You can buy, sell and switch shares in the Fund on any UK business day Any income is paid bi-annually Recommendation: The Fund may not be appropriate if you plan to withdraw your money within 5 years Risk and Reward Profile Lower risk Typically lower rewards Higher risk Typically higher rewards The risk category above is not a measure of capital loss or gains, but of how significant the rises and falls in the Share Class price have been historically. For example a share class whose price has experienced significant rises and falls will be in a higher risk category, whereas, a share class whose price has experienced less significant rises and falls will be in a lower risk category. As the Share Class risk category has been calculated using historical data, it may not be a reliable indication of the Share Class future risk profile. Please note that the Share Class risk category may change in the future and is not guaranteed. The lowest risk category does not mean a risk free investment. The Share Class is in risk category 6 as its price has experienced very significant rises and falls historically. Other risks The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and you may not get back the full amount invested. Over time, inflation may erode the value of investments. As one of the key objectives of the Fund is to provide income, the annual management charge is taken from capital rather than income. This can erode capital and reduce the potential for capital growth. Investments in the Fund may include financial derivative instruments. Such instruments may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; therefore their use may result in greater fluctuations of the Net Asset Value of the Fund. The Manager will ensure that the use of derivatives within the Fund does not materially alter the overall risk profile of the Fund. The Fund s performance may be adversely affected by variations in the relative strength of world currencies or if Sterling strengthens against those currencies. A more detailed description of risk factors that apply to this Fund is set out in Appendix 1, Section H of the Prospectus.

22 Charges The charges you pay are used to pay the costs of running the Fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. One-off charges taken before or after you invest Entry charge 5.00% Exit charge None Any charges shown are the maximum that might be taken out of your money before it is invested. Charges taken from the Fund over a year Ongoing charges 1.69% Charges taken from the Fund under certain specific conditions Performance fee None The entry charge shown is a maximum figure. In some cases you might pay less you can find this out from your financial adviser or distributor. The ongoing charges figure is based on expenses for the year ending 31 December This figure may vary from year to year and excludes portfolio transaction costs. If you switch funds within the Invesco Perpetual range you will be charged a maximum 1% entry charge on your new fund. For more information about charges, please see Appendix 1, sections E and F of the Fund s prospectus, which is available at Past Performance The Fund was launched on 6 February This Share Class was launched on 6 February % growth Performance figures are calculated in Sterling on a mid price basis and include net reinvested income. The calculation incorporates the annual management charge and all other Fund expenses but excludes the entry charge. The base currency of the Fund is Sterling. Past performance is not a guide to future returns Practical Information Depositary: Citibank International plc The UK tax regime may have an impact on your personal tax position You can check the latest prices for the Fund in The Financial Times or on our website - You are entitled to switch from this Fund to another fund on request, subject to a switching charge Invesco Fund Managers Limited may be held liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the Prospectus for the Fund The Fund has its own specific portfolio of assets and liabilities. However, where debts arise from other sub-funds within the same Investment Series creditors may look to this Fund s assets for payment The following share classes are available for the Fund: Accumulation, Income, Accumulation (No Trail) and Income (No Trail). For further details, or to receive a free copy in English of the Full Prospectus and the latest Annual or Interim Short Report, please contact us at: Invesco Perpetual, Perpetual Park, Henley-on-Thames, Oxfordshire RG9 1HH, UK Telephone Facsimile This Fund is authorised in the United Kingdom and regulated by the Financial Services Authority Invesco Fund Managers Limited is authorised in the United Kingdom and regulated by the Financial Services Authority This Key Investor Information is accurate as at 9 August b/PDF/090812

23 Key Investor Information Document This document provides you with key investor information about this Fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this Fund. You are advised to read it so you can make an informed decision about whether to invest. Lazard Global Equity Income Fund Income Shares Lazard Global Equity Income Fund is a sub-fund of Lazard Investment Funds (the "UCITS") Objectives and Investment Policy Lazard Global Equity Income Fund (the Fund ) aims to achieve capital growth by investing in shares of companies based around the globe, including in the emerging world. The Fund has discretion as to the global company shares it can hold and aims to out-perform the MSCI World Index. The Fund invests mainly in shares of large or medium sized global companies which pay above average dividends or whose dividends are expected to grow at a faster than average rate. The Fund invests mainly in shares of companies with good management structures and attractive financial data, and which sell Risk and Reward Profile ISIN GB00B24DPY79 Lazard Fund Managers Ltd, part of the Lazard group for low prices relative to the financial strength of the companies (i.e. are undervalued) and can be readily bought and sold in the markets. Any distributions that are paid to you will normally be reinvested to buy further shares unless you have elected to receive payment in cash. You can sell your shares back to the Fund on any day normally treated as a business day in United Kingdom. Recommendation: This Fund may not be appropriate for investors who plan to withdraw their money within the short to medium term. Lower Risk Higher Risk Typically Lower Rewards Typically Higher Rewards The risk and reward category is calculated using historical data and may not be a reliable indicator of the Funds future risk profile. The risk and reward category may shift over time and is not a target or guarantee. The lowest category (ie category 1) does not mean "risk free". The Fund appears in the higher risk category on the risk and reward indicator. This is because the Fund invests primarily in shares, whose values tend to have higher price fluctuations. The returns from your investment may be affected by changes in the exchange rate between the Fund's base currency, and the currency of the Fund's investments, your share class and where you live. High yielding assets may carry a greater risk of capital values falling or have limited prospects of capital growth or recovery. The securities markets may be less developed in emerging markets and there is a greater risk that the Fund may experience delays in buying, selling and claiming ownership of its investments. Emerging markets may also have less developed political, economic and legal systems and there is a higher risk that the Fund may not get back its money. The annual management charge is deducted from the capital of the Fund. This will increase the income from the Fund but may constrain or erode potential for capital growth. There is no capital guarantee or protection of the value of the Fund. The value of your investment and the income from it can go down as well as up and you may not get back the amount you invested. See "Risk Factors" in the UCITS Prospectus for more information about risks. This Fund is authorised in UK and regulated by Financial Services Authority. Lazard Fund Managers Ltd, part of the Lazard group is authorised in UK and regulated by Financial Services Authority. This key investor information is accurate as at 28 June Page 1/2

24 Lazard Global Equity Income Fund Income Shares Lazard Global Equity Income Fund is a sub-fund of Lazard Investment Funds (the "UCITS") Charges The charges you pay are used to pay the costs of running the Fund, including marketing and distributing costs. These charges reduce the potential growth of your investment. One-off charges taken before or after you invest. Entry charge 3.75% Exit charge N/A This is the maximum that might be taken out of your money before it is invested and before proceeds of your investment are paid out. Charges taken from the Fund over a year Ongoing charges 1.57% Charges taken from the Fund under certain specific conditions Performance fee Past Performance N/A The entry and exit charges shown are maximum figures in some cases you may pay less. You can find out the actual charges from your financial advisor. The ongoing charges figure is based on expenses for the year ending 30 September 2011 and does not include any performance fee or portfolio transaction costs incurred where we buy or sell assets for the Fund. Entry or exit charges paid by the Fund when buying or selling units in another fund are included. This figure may vary from year to year. Please see "Fees and Expenses", "Dealing Charges" and "Other Dealing Information" in the UCITS Prospectus for more information about charges. You may switch between sub-funds of the UCITS. A fee may be payable. This will not exceed the amount of the initial charges of the Fund that you are switching into. The graph shows annual performance calculated in GBP for each full calendar year since the share class has been in issue. The Fund's launch date was: 29/10/2007 Past performance is not a reliable guide to future performance. The past performance shown in the chart takes account of all charges except the Fund's entry charge Lazard Global Equity Income Fund Income Shares MSCI ACWI GR USD Practical Information The UCITS' depositary is State Street Trustees Limited. The Fund is one of a number of a sub-funds of the UCITS. Each sub-fund has its own specific portfolio of assets and its own liabilities. However, a creditor may look to all the assets of all the sub-funds of LIF for payment, regardless of which sub-fund owes money to the creditor. See "Company Structure" in the Prospectus for further information. You may switch between sub-funds of the UCITS. A fee may be payable. This will not exceed the amount of the initial charges of the Fund that you are switching into. See "Switching" in the Prospectus. Further information about the Fund may be obtained from the Prospectus and annual and half-yearly Report and Accounts, all of which are prepared for the UCITS as a whole and which are available free of charge in English from Lazard Asset Management Limited, 50 Stratton Street, London W1J 8LL or in English at The Fund is subject to the tax legislation in the UK. This may have an impact on your personal tax position. The latest share price is published at and in the Financial Times. Lazard Fund Managers Limited may be held liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the UCITS Prospectus. This Fund is authorised in UK and regulated by Financial Services Authority. Lazard Fund Managers Ltd, part of the Lazard group is authorised in UK and regulated by Financial Services Authority. This key investor information is accurate as at 28 June Page 2/2

25 Key Investor Information This document provides you with key investor information about this Fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this Fund. You are advised to read it so you can make an informed decision about whether to invest. M&G Global Dividend Fund Sterling Class A - Income shares ISIN no. GB00B39R2M86 Sterling Class A - Accumulation shares ISIN no. GB00B39R2L79 Managed by M&G Securities Limited, which is part of the Prudential Group Objective and investment policy Objective Income and growth. Investment policy At least 70% of investment is in shares of companies from anywhere in the world. The Fund may invest in derivatives [financial instruments whose value is linked to the expected future price movements of an underlying asset]. You can buy and sell shares in the Fund on any business day. Provided we receive your instruction before 12 noon, shares will be bought at that day s price. This Fund allows the fund manager to make discretionary choices when deciding which investments should be held in the Fund. These investment decisions will always be made within the constraints of the Fund s objective and investment policy. If you hold income shares, any income from the Fund may be paid out to you. If you hold accumulation shares, any income from the Fund will be rolled up into the value of your investment. In addition to the charges set out in the charges section, the Fund will incur portfolio transaction costs which are paid from the assets of the Fund. These tend to be higher when investing outside Europe. Risk and reward profile Low risk Typically lower rewards High risk Typically higher rewards The above risk number is based on the rate at which the value of the Fund has moved up and down in the past. This risk number is based on simulated historical data and may not be a reliable indicator of the future risk profile of the Fund. The risk number shown is not guaranteed and may change over time. 4 The lowest risk number does not mean risk free. The Fund has the above risk number because of the effect of the following risks: The value of stockmarket investments, and the income from them, will fluctuate. This will cause the Fund price to fall as well as rise and you may not get back the original amount you invested. Any investment in international companies means that currency exchange rate fluctuations will have an impact on the Fund Emerging markets - The Fund can invest in emerging markets which tend to have larger price fluctuations than more developed countries. The Fund may encounter difficulties when buying and selling these investments or converting the proceeds of a sale or any income earned back into the base currency of the Fund. The Fund invests in the shares of companies that pay dividends. In certain market conditions companies may reduce or even suspend paying dividends until conditions improve. This will impact the level of income distributed by the Fund UK K1 GLOD GBP A EN UK

26 Charges Past performance One-off charges taken before or after you invest Entry charge 4.00% Exit charge 0.00% This is the maximum that might be taken out of your money before it is invested. Charges taken from the Fund over a year Ongoing charge 1.68% Charges taken from the Fund under certain specific conditions % (5.0) (2.4) Fund Performance fee None The entry and exit charges shown are the maximum figures, and in some cases, you may pay less. You can find out the specific charges which apply to your investment by contacting your financial adviser, distributor, or by contacting us using the details given in the practical information section. The ongoing charge is based on expenses for the year ending 31 March. This figure may vary from year to year. It excludes performance fees and portfolio transaction costs (except in the case of an entry / exit charge paid by the Fund when buying and selling shares in another fund). The ongoing charge is taken from investments held in the Fund s portfolio and not from the income these investments produce. The deduction of this charge may reduce the potential growth of your investment. The charges shown in the table are used to pay the costs of running the Fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. Past performance is not a guide to future performance. The past performance calculation does not take into account the entry and exit charges but does take into account the ongoing charge, as shown in the Charges section. The Fund launched on 18 July 2008 and the share class launched on 18 July Past performance is calculated using Sterling Class A Shares. For more information on charges, please refer to the relevant sections of the Prospectus which can be found by visiting Practical information The depositary is National Westminster Bank plc. For further information about this Fund, please visit where you can obtain a copy of the Prospectus, Instrument of Incorporation, and latest annual or interim Investment Report and Financial Statements in English, free of charge. Our website also provides other information not contained in the above documents such as share prices. This Fund is subject to UK tax laws, which may have an impact on your personal tax position. Please speak to an advisor for further information. M&G Securities Limited may be held liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the Prospectus for the Fund. You can switch your investment at any time. For further information on switching, please contact us by calling M&G Customer Relations on Other share classes may exist for the Fund as set out in the relevant Prospectus UK K1 GLOD GBP A EN UK Both this Fund and M&G Securities Limited are authorised in the UK and regulated by the Financial Services Authority (FSA). This key investor information is accurate as at 18 June 2012.

27 Key investor information This document provides you with key investor information about this Fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this Fund. You are advised to read it so you can make an informed decision about whether to invest. Newton Global Higher Income Fund Sterling Income Shares (ISIN: GB00B0MY6T00) a sub-fund of BNY Mellon Investment Funds This Fund is managed by BNY Mellon Fund Managers Limited OBJECTIVES AND INVESTMENT POLICY Investment manager The investment manager is Newton Investment Management Limited, part of The Bank of New York Mellon Corporation. Objective Increasing income and capital growth over the long term by investing in shares (i.e. equities) and similar investments of companies listed or located throughout the world. Policy The Fund will: invest anywhere in the world; invest in company shares and similar investments; invest in companies of all sizes (e.g. small, medium and large companies) and in any industry (e.g. pharmaceuticals, financials, etc); invest in company shares targeting higher than average dividends (dividends are the proportion of company profits paid out to shareholders) and with good prospects for growth; typically invest in fewer than 60 company shares; and limit investment in other mutual funds to 10%. The Fund may: invest in derivatives (i.e. financial contracts whose value is linked to the expected price movements of an underlying investment) with the aim of reducing the overall costs and/or risks of the Fund. Recommendation: the Fund may not be appropriate for investors who plan to withdraw their money within five years. Treatment of income: income from investments will be paid to shareholders quarterly on or before 28 February, 31 May, 31 August and 30 November. Dealing: you can buy and sell your shares in the Fund between 9:00 and 17:00 (UK time) on each working day in the UK. Instructions received before 12:00 will receive the price quoted on that day. The minimum initial investment for this share class is GBP 1,000. RISK AND REWARD PROFILE Lower risk Potentially lower reward Higher risk Potentially higher reward We have calculated the risk and reward category, as shown above, using a method of calculation derived from EU rules. It is based on the rate at which the value of the Fund has moved up and down in the past (i.e. volatility) and is not a guide to the future risk and reward category of the Fund. The category shown is not a target or guarantee and may shift over time. Even the lowest category 1 does not mean a risk-free investment. Funds in category 6 have in the past shown relatively high volatility. With a fund of category 6, you have a relatively high risk of losing money but your chance for gains is also relatively high. The following risks may not be fully captured by the risk and reward indicator: There is no guarantee that the Fund will achieve its objective. This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund. The Fund may use derivatives to reduce costs and/or the overall risk of the Fund (i.e. Efficient Portfolio Management (EPM)). Derivatives involve a level of risk, however, for EPM, they should not increase the overall riskiness of the Fund. The Fund may invest in emerging markets. These markets have additional risks due to less developed market practices. A fall in the value of a single investment may have a significant impact on the value of the Fund because it typically invests in a limited number of investments. The Fund may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations. The Fund takes its charges from the capital of the Fund. Investors should be aware that there is potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges. Capital erosion may have the effect of reducing the level of income generated. A complete description of risk factors is set out in the Prospectus in the section entitled "Risk Factors".

28 CHARGES The charges cover the costs of running the Fund, including the costs of marketing and selling. These charges reduce the potential growth of your investment. One-off charges taken before or after you invest Entry charge 4.00% Exit charge None This is the maximum that might be taken out of your money before it is invested and before the proceeds of your investment are paid out. Charges taken from the Fund over a year Ongoing charge 1.63% Charges taken from the Fund under certain specific conditions Performance fee None The entry charge shown is a maximum figure but you may pay less. The actual entry charge can be obtained from your financial adviser or distributor. The ongoing charge is based on expenses calculated on 31st December This may vary from year to year. It excludes performance fees and portfolio transaction costs, except in the case of an entry/exit charge paid when buying or selling units in another mutual fund. More information about charges is available in the Prospectus. PAST PERFORMANCE % Newton Global Higher Income Fund Sterling Income Shares (GB00B0MY6T00) The chart includes all charges except entry charges. The Fund was launched on 30 November This share class was launched on 30 November Performance of this share class is calculated in sterling. Past performance is not a guide to future performance Fund % PRACTICAL INFORMATION Documents: The Fund is a sub-fund (part) of BNY Mellon Investment Funds ("BNY MIF"). Copies of the Prospectus, annual and semi-annual reports for BNY MIF may be obtained free of charge from or from BNY Mellon Asset Management International Ltd, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. These documents are available in English and certain other languages. Share price: The latest share price and other information, including how to buy or sell shares, are available from the website and address given above. Other share classes are offered by the Fund as set out in the Prospectus. Switching: Investors may switch shares in the Fund for shares in other sub-funds of BNY MIF provided they satisfy the criteria applicable to investment in other sub-funds. Further information on switching is contained in the Prospectus. Liability statement: BNY Mellon Fund Managers Limited may be held liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the Prospectus for the Fund. Depositary: National Westminster Bank plc. Tax: The tax legislation of the Fund's domicile may have an impact on your personal tax position. For further details, please speak to an adviser. This Fund is authorised in the United Kingdom and regulated by the Financial Services Authority. BNY Mellon Fund Managers Limited is authorised in the United Kingdom and regulated by the Financial Services Authority. This key investor information is accurate as at 25 June 2012

29 Key Investor Information This document provides you with key investor information about this fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this fund. You are advised to read it so you can make an informed decision about whether to invest. Schroder Asian Income Fund an Authorised Unit Trust of Schroder Unit Trusts Limited Class A Income (GB ) This fund is managed by Schroder Unit Trusts Limited, which is a member of the Schroders Group. Objectives and Investment Policy Objectives The fund aims to provide capital growth and income. Investment Policy At least 80% of the fund will be invested in shares of companies in the Asia Pacific region (excluding Japan, but including Australia and New Zealand) offering attractive dividend opportunities. The fund has no bias to any particular country or industry. The fund aims to generate stable long-term returns through a combination of capital growth and income streams typically at a lower level of volatility than the market. Income now represents a substantial portion of total long-term equity returns from Asia (excluding Japan), and we invest in the shares of companies in this region that we believe will benefit from this trend. The fund may also invest in other financial instruments and hold cash on deposit. Derivatives may be used to reduce risk or manage the fund more efficiently. Benchmark This share class is managed with reference to the MSCI AC Pacific ex Japan (NDR) financial index. The manager invests on a discretionary basis and is not limited to investing in accordance with the composition of this benchmark. Dealing Frequency Daily. Distribution Policy This unit class pays income received from the fund's investments to you half yearly. Risk and Reward Profile Lower risk Potentially lower reward Higher risk Potentially higher reward A fund in the lowest category does not mean a risk-free investment The risk and reward indicator The risk category was calculated using simulated historical performance data and may not be a reliable indicator of the fund's future risk profile. The fund's risk category is not guaranteed to remain fixed and may change over time. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. Other particular risks Operational risk / third parties: The fund's operations depend on third parties and it may suffer disruption or loss in the event of their failure.

30 Schroder Unit Trusts Limited Schroder Asian Income Fund Charges One-off charges taken before or after you invest Entry charge 3.25% Exit charge None This is the maximum that might be taken out of your money before it is invested. Charges taken from the fund over a year Ongoing Charge 1.71% Charges taken from the fund under certain specific conditions Performance fee None The charges you pay are used to pay the costs of running the fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. The entry and exit charges shown are maximum figures and in some cases you might pay less. You can find out the actual entry and exit charges from your financial advisor. The ongoing charges figure is based on the last year's expenses for the year ending January 2012 and may vary from year to year. Please see the prospectus for more details about the charges. Past Performance % A Income (GB ) MSCI AC Pacific ex Japan (NDR) Performance achieved during this period was achieved in circumstances that no longer apply. The fund's objectives and investment policy were changed in The fund was managed with reference to the MSCI AC Pacific (Japan at 10%) index until December Past performance is not a guide to future performance and may not be repeated. The value of investments may go down as well as up and you may not get back the amount you originally invested. The chart shows performance in British pound after the ongoing charges and the portfolio transaction costs have been paid. Entry and exit charges are excluded from calculations of past performance. The fund was launched on 19 February Practical Information Trustee: J. P. Morgan Trustee and Depository Company Ltd. Further Information: You can get further information about this fund, including the prospectus, latest annual report, any subsequent half-yearly reports and the latest price of units from and from Schroder Investments Limited, PO Box 1102, Chelmsford, Essex, CM99 2XX, England, telephone They are in English, free of charge. Tax Legislation: The fund is subject to tax in the United Kingdom, which may have an impact on your personal tax position as an investor. Liability: Schroder Unit Trusts Ltd may be held liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the fund's prospectus. Switches: Subject to conditions, you may apply to switch your investment into another unit class within this fund or in another Schroder fund. Please see the prospectus for more details. Glossary: You can find an explanation of some of the terms used in this document at This fund is authorised in the United Kingdom and regulated by the Financial Services Authority (FSA). This key investor information is accurate as at 14 May 2012.

31 Page 1 of 2. Key Investor Information This document provides you with key investor information about this fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this fund. You are advised to read it so you can make an informed decision about whether to invest. Global Equity Income Fund (the "Fund") Class 1 GBP Income Shares, GB00B1Z2MW38 a sub-fund of Threadneedle Specialist Investment Funds ICVC (the "Company"). This sub-fund is managed by Threadneedle Investment Services Limited (the "Management Company"). Objectives and investment policy The aim of the Fund is to provide income with the potential to grow the amount you invested as well. The Fund invests at least two-thirds of its assets in shares of companies worldwide. Any income the Fund generates will be paid out to your bank account. You can buy and sell shares in the Fund on any day that is a working day in London. You can find more detail on the objectives and investment policy of the Fund in the Investment Objectives, Policies and Other Details of the Funds section of the Prospectus. As part of the investment process, the Fund will make reference to the MSCI All Country World Index. Risk and reward profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk The Fund is in this specific category because historically it has shown a high level of volatility (how much the value of the Fund went up and down compared to other categories). The lowest category does not mean a risk-free investment. Where investments are made in assets that are denominated in foreign currency, changes in exchange rates may affect the value of the investments. All the risks currently identified as being applicable to the Fund are set out in the Risk Factors section of the Prospectus.

32 Page 2 of 2. Charges The charges you pay are used to pay the costs of running the Fund, including the costs of marketing and distributing it. These charges reduce the potential growth of your investment. One-off charges taken before or after you invest Entry charge 3.75% Exit charge 0.00% These are the maximum charges that we might take out of your money before it is invested and before we pay out the sale proceeds of your investment. In some cases, you might pay less and you should speak to your financial adviser about this. The ongoing charge is based on the last year s expenses for the year ending 2011 and may vary from year to year. It excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another fund). The ongoing charges figure is calculated as at All or part of the fees and expenses of the company may be charged against capital instead of against income. Charges taken from the Fund over a year Ongoing charge 1.73% Charges taken from the Fund under specific conditions Performance fee NONE Past Performance % You should be aware that past performance is not a guide to future performance. The Fund was launched on 27/06/ The share class was launched on 27/06/ Performance is calculated in GBP. All charges and fees, except any entry, exit and switching charge, have been included within the performance. -5 * MSCI AC WORLD INDEX Fund Index * Source: FE 2012 Practical information The Depositary of the Company is JP Morgan Trustee and Depositary Company Limited. You can obtain further information regarding the Fund, the Company, its Prospectus, latest annual reports and any subsequent half-yearly reports free of charge from the Management Company. The documents are available in English, French, German, Portuguese, Italian, Spanish and Dutch (no Dutch Prospectus). You can obtain other practical information, including current share prices, at threadneedle.com. The tax legislation of the United Kingdom may have an impact on your personal tax position. Threadneedle Investment Services Limited may be held liable solely on the basis of any statement contained in this document that is misleading, inaccurate or inconsistent with the relevant parts of the Prospectus for the UCITS. This document describes a fund of the Company. The Prospectus, annual and half-yearly reports are prepared for the entire Company. The Company is comprised of multiple funds, each of which is allocated a distinct pool of assets and liabilities. Although these funds are segregated, it is possible for the assets of the Fund to be used to pay the debts of other funds in the Company. You can exchange your shares for shares of other funds of the Company, as and when available. Information as to how to exercise this right is in the Switching section of the Prospectus. Only one share class of the Fund, Class 1 GBP Income Shares, which has been selected as representative of other share classes, has been described. Details of share classes represented by this document and available in your country can be found at threadneedle.com. This Fund is authorised in the United Kingdom, and regulated by the Financial Services Authority. Threadneedle Investment Services Limited is authorised in the United Kingdom, and regulated by the Financial Services Authority. *ADP6 V1. GB This Key Investor Information is accurate as at 21/02/2012.