Newton ISA Key Features

Transcription

1 Newton Fund Managers Limited Newton ISA Key Features Including Terms & Conditions The ISA Range of Funds American Balanced Continental European Equity & Bond Global Innovation Growth Higher Income High Yield Bond Income International Bond International Growth Japan Managed Oriental Pan-European

2 1 Newton ISA Key Features What is an ISA? ISA stands for an Individual Savings Account. It is a tax-efficient way of saving and, within certain limits, you can choose to save your money in a combination of up to three different components as follows: stocks and shares; cash; and life insurance. The right ISA for you will clearly depend on your personal circumstances. You have a basic choice of whether to invest in either a Maxi or a Mini ISA, but not both, in the same tax year. In other words, if you invest in a Maxi ISA you will not be able to purchase an ISA from another company for the rest of the tax year. A Maxi ISA A Maxi ISA is managed by one manager and provides you with the opportunity to invest up to 7,000 per year in up to three different investment components as follows: Cash Up to 3,000 Life Insurance Up to 1,000 A Mini ISA You can take out 3 Mini ISAs (one for each of the investment components) with up to 3 different managers. If you choose to take out a Mini ISA you should be aware that your investment limit in your stocks and shares component will be limited as follows: Cash Up to 3,000 Life Insurance Up to 1,000 Stocks and Shares Up to 3,000 Newton are investment specialists and fund management is our business. The Newton ISA therefore will offer you the opportunity to invest in the stocks and shares component. It does not offer the cash or the life insurance component. This Key Features Document relates to the Newton ISA fund range and aims to provide you with the information you need to consider before making your investment decision. If you need any further information please call our Client Services Executives free on Stocks and Shares Up to 7,000

3 2 Newton ISA Key Features Newton ISA Key Features Aims Each of the Newton funds has a different objective which can be found within the fund details section later in this document. Your investment For both a Newton Maxi ISA and Mini ISA a minimum of 1,000 is required for lump sum investment. The minimum additional lump sum contribution into an existing investment is 250. Certificates are not issued in respect of your investment. If you wish to invest on a regular basis the minimum amount required is 50 a month per fund with the maximum being in a Maxi ISA and in a Mini ISA. A maximum of 7,000 per year can be invested in a Newton Maxi ISA per person. A maximum of 3,000 can be invested in a Newton Mini ISA per tax year per person. You can subscribe to a Maxi ISA or a Mini ISA but not both in the same tax year. Risk factors Please remember that ISAs should not be regarded as short term investments and should normally be held for at least five years. The value of your investments, and the income from them, can fall as well as rise and you may not get back the original amount invested. Past performance is not necessarily a guide to the future. ISAs are free of all personal taxes. The levels and bases of, and reliefs from, taxation may change. Tax reliefs referred to are those currently available and their value depends on the circumstances of the individual investor. The favourable tax treatment of ISAs may not be maintained and could be subject to change in the future. The tax credit on dividend distributions from UK equities is currently 10% and will be withdrawn in A 20% tax credit applies to income received as interest distributions. The value of overseas securities will be influenced by the rate of exchange which is used to convert them back into sterling. Additional risks associated with emerging market investments may include dealing difficulties, settlement and custody practices. Investment in technology-related stocks can be more volatile than investments in more established companies. Above average price movements can be expected. Where withdrawals (as for the Newton Equity & Bond Fund), or charges (as for the Newton Balanced Fund, Newton Equity & Bond Fund, Newton Higher Income Fund and the Newton High Yield Bond Fund) are taken from the capital of a fund, you should be aware that there is a potential for future capital erosion. If you exercise your right to cancel your investment, you should note that whilst you will not have to pay the initial charges, you may not get back the amount you invested if the share price has fallen since you invested.

4 3 Newton ISA Key Features Your questions answered 1 Who can open an ISA? Anyone aged 18 or over and ordinarily resident in the UK for tax purposes. 2 What are the tax advantages of opening a Newton ISA? No income tax No capital gains tax 10% tax credit on dividend distributions from UK equities until 5 April % tax credit on income received as interest distributions 3 How much can I invest in a Newton ISA? You can invest 7,000 in a Newton Maxi ISA or 3,000 in a Newton Mini ISA. 4 What if I wish to maximise my allowance in stocks and shares? A Maxi ISA would be a more suitable choice as a Mini ISA would restrict your annual contribution in the stocks and shares component to 3, What are CAT standards? They are a set of voluntary standards for Charges, Access and Terms introduced by the Government for certain kinds of ISA. A CAT standard ISA does not necessarily guarantee it will be the best performing, cheapest or most suitable product for you. The most suitable ISA for you will depend upon your own personal circumstances. Newton does not offer a CAT standard ISA. 6 How do I invest in a Newton ISA? You can invest through your Independent Financial Adviser or by calling us directly on and we will provide you with an Application Form to complete. You can invest in the following ways: Cheque: Your cheque should be made payable to Newton Fund Managers Limited. Direct Debit: If you wish to save on a regular monthly basis, simply complete the Direct Debit Mandate Section on the Application Form. Lump sums can also be added to a Regular Savings Plan. Share Exchange: You can easily transfer the value of any shares you hold into a Newton ISA via our Share Exchange Scheme. ISA Transfers: You can transfer your existing stocks and shares ISA into a Newton ISA fund of your choice. 7 Is it easy to access my money? Yes, you can access your money at any time and in the following ways: a) Taking an Income: You can have an income paid directly into your bank account by completing the Direct Credit Mandate Section on the Application Form. b) Withdrawals: You can easily withdraw part or all of your money at any time subject to a minimum of 250. Upon receipt of your written instruction a cheque will be sent to you within 4 business days. If you cash in your entire investment after the cancellation period you will not be allowed to open another ISA until the next tax year. To keep your ISA open, you must leave a minimum of 1,000 invested. 8 Can I switch funds? Yes, you can switch from your existing fund into another Newton ISA fund at a discount to the standard fund charges and without losing your tax-free benefits. 9 What details will I receive on my ISA? You will receive a statement of your ISA every six months. Up to date valuations are available from our Client Services Executives between 9am and 5pm, Monday to Friday, free on What other details do I need to provide? For legal reasons we need to validate your details when you invest in an ISA. You should present a cheque or Direct Debit Mandate drawn on a bank or building society account in your name. Otherwise we may need to contact you to obtain alternative proof of identity.

5 4 Newton ISA Key Features How will charges and expenses affect my investment? Each time you invest in a Newton fund, there is a one off initial charge of 4%. The annual management charge of up to 1.5% and other annual expenses of up to 0.36% covering Depositary s fees, registration, regulation and custody fees are deducted from the fund itself. A reduced initial charge is payable where income is reinvested to buy additional shares. Newton do not levy an additional charge for the management of an ISA. How much will any advice cost? Your Independent Financial Adviser will give you details about the costs. The amount will depend on the size and performance of your investment and, in the case of regular savings, the period over which you make them. The costs of your Independent Financial Adviser will be paid for out of the fund charges but do not represent an additional cost. These charges are deducted from the income of the funds with the exception of the Newton Balanced Fund, Newton Equity & Bond Fund, Newton Higher Income Fund and the Newton High Yield Bond Fund where charges are deducted from the capital of the funds. Details of all the relevant charges for your chosen fund can be found on the following pages. All calculations are based on the assumption that income is reinvested.

6 American Fund Aim: To achieve capital growth from a portfolio of US securities. (Distribution Payment Months Oct) fees of up to 0.29%. (Estimated net yield 0.00%) 1 1, , , , ,570 and expenses could amount to 389. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.67% a year. 1 1, , , , , , ,000 2,240 14,900 and expenses could amount to 2,240. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.31% a year. Balanced Fund Aim: To achieve a balance between capital growth and income from a portfolio of UK and international securities. (Distribution Payment Months Aug/Feb) fees of up to 0.36%. (Estimated net yield 0.08%) 1 1, , , , ,560 and expenses could amount to 400. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.55% a year. 1 1, , , , , , ,000 2,340 14,800 and expenses could amount to 2,300. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.18% a year. Continental European Fund Aim: To achieve capital growth from a portfolio of European securities. (Distribution Payment Months Oct) fees of up to 0.18%. (Estimated net yield 0.00%) ISA The effect of charges and expenses on lump sum and monthly savings 1 1, , , , ,590 and expenses could amount to 371. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.79% a year. 1 1, , , , , , ,000 2,150 15,000 and expenses could amount to 2,150. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.43% a year. Equity & Bond Fund Aim: To achieve income and capital growth from a portfolio of equities and fixed interest securities. (Distribution Payment Months Aug/Nov/Feb/May) fees of up to 0.27%. (Estimated net yield 3.31%) 1 1, , , , ,560 and expenses could amount to 401. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.59% a year. 1 1, , , , , , ,000 2,310 14,800 and expenses could amount to 2,310. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.23% a year.

7 Global Innovation Fund Aim: To achieve long-term capital growth through investment in a portfolio of companies involved in technology, telecommunications, media and e-business. (Distribution Payment Months Oct) fees of up to 0.23%. (Estimated net yield 0.00%) 1 1, , , , ,580 and expenses could amount to 379. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.74% a year. 1 1, , , , , , ,000 2,190 15,000 and expenses could amount to 2,190. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.38% a year. Growth Fund Aim: To secure long term capital growth. The fund will invest principally in the UK with a small exposure to international equity and bond markets. (Distribution Payment Months Sep/Feb) Initial charge 4%, annual management charge 1.25% and other annual fees of up to 0.13%. (Estimated net yield 0.56%) 1 1, , , , ,640 and expenses could amount to 325. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 5.08% a year. 1 1, , , , , , ,000 1,920 15,200 and expenses could amount to 1,920. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.73% a year. Higher Income Fund Aim: To achieve increasing distributions on a calendar year basis with long-term capital growth. (Distribution Payment Months Aug/Feb) Initial charge 4%, annual management charge 1.25% and other annual fees of up to 0.12%. (Estimated net yield 3.75%) 1 1, , , , ,620 and expenses could amount to 340. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.99% a year. 1 1, , , , , , ,000 1,990 15,200 and expenses could amount to 1,990. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.63% a year. High Yield Bond Fund Aim: To provide a high yield from a portfolio of mainly fixed interest securities including gilt-edged stocks, international issues and preference shares. (Distribution Payment Monthly) Initial charge 4%, annual management charge 1.0% and other annual fees of up to 0.19%. (Estimated gross yield 7.15%) 1 1, , , , ,640 and expenses could amount to 327. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 5.07% a year. 1 1, , , , , , ,000 1,930 15,270 and expenses could amount to 1,930. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.71% a year.

8 Income Fund Aim: To achieve capital growth and income from a portfolio of predominantly UK equities. (Distribution Payment Months Aug/Nov/Feb/May) Initial charge 4%, annual management charge 1.25% and other annual fees of up to 0.14%. (Estimated net yield 1.50%) ISA The effect of charges and expenses on lump sum and monthly savings 1 1, , , , ,630 and expenses could amount to 331. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 5.04% a year. 1 1, , , , , , ,000 1,940 15,200 and expenses could amount to 1,940. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.69% a year. International Bond Fund Aim: To maximise the total return from income and capital growth in the world bond markets. (Distribution Payment Months Aug/Feb) Initial charge 4%, annual management charge 1.0% and other annual fees of up to 0.10%. (Estimated gross yield 4.48%) 1 1, , , , ,660 and expenses could amount to 299. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 5.25% a year. 1 1, , , , , , ,000 1,790 15,400 and expenses could amount to 1,790. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.89% a year. International Growth Fund Aim: To achieve capital growth from a portfolio of International securities. (Distribution Payment Months Oct) Japan Fund Aim: To achieve capital growth from a portfolio of Japanese securities. (Distribution Payment Months Oct) fees of up to 0.12%. (Estimated net yield 0.00%) 1 1, , , , ,600 and expenses could amount to 361. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.85% a year. 1 1, , , , , , ,000 2,100 15,000 and expenses could amount to 2,100. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.49% a year. fees of up to 0.14%. (Estimated net yield 0.00%) 1 1, , , , ,600 and expenses could amount to 364. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.83% a year. 1 1, , , , , , ,000 2,120 15,000 and expenses could amount to 2,120. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.47% a year.

9 Managed Fund Aim: To achieve capital growth and income from a portfolio of UK, EC and international securities. (Distribution Payment Months Sep/Feb) fees of up to 0.12%. (Estimated net yield 0.72%) ISA The effect of charges and expenses on lump sum and monthly savings 1 1, , , , ,600 and expenses could amount to 364. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.83% a year. 1 1, , , , , , ,000 2,120 15,000 and expenses could amount to 2,120. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.47% a year. Oriental Fund Aim: To achieve capital growth by investing in Asian and Pacific markets including Australia and New Zealand but excluding Japan. (Distribution Payment Months Oct) fees of up to 0.26%. (Estimated net yield 0.00%) 1 1, , , , ,580 and expenses could amount to 384. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.70% a year. 1 1, , , , , , ,000 2,220 14,900 and expenses could amount to 2,220. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.34% a year. Pan-European Fund Aim: To provide capital growth from a portfolio of European, including UK, equities. (Distribution Payment Months Oct) fees of up to 0.35%. (Estimated net yield 0.00%) 1 1, , , , ,560 and expenses could amount to 398. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.61% a year. 1 1, , , , , , ,000 2,290 14,900 and expenses could amount to 2,290. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 4.25% a year. All figures correct to 04/01/00

10 9 Newton ISA Key Features Further information 1 Newton Fund Managers Limited will act as the appointed ISA Manager and will manage your investment and claim all tax relating to your ISA on your behalf. 2 Share prices and distribution yields are published daily in the Financial Times, The Times and The Daily Telegraph. 3 Shares are purchased and sold following receipt of your instructions. In certain circumstances, a dilution levy may be applied to purchases or sales. This charge is added to the fund to offset the effects of trading on a single, mid price basis. Newton deal on a forward pricing basis. That is, the price ruling at the valuation point on the next day following receipt of your instructions. The prices are based on the value of the underlying assets which are valued at 12 noon daily. 4 If you invest through an Independent Financial Adviser you may be issued with a Cancellation Notice. This gives you the right to cancel your investment within 14 days. These rights do not apply to investments made directly. 5 When you take out a Newton ISA your investment will be acknowledged in writing and a statement detailing the progress of your investment will be issued on a sixmonthly basis. 6 There is no UK tax payable on income received or any capital gain made by your ISA. 7 Tax deducted from the income prior to receipt will be reclaimed on your behalf. Note, however, it is not possible for the manager to reclaim tax in respect of a tax credit attached to a foreign income dividend or any equalisations distributed as income. 8 Shares may be sold on any normal business day simply by writing to Newton Fund Managers Limited. Proceeds will be sent within 4 business days of receipt of your confirmed written instructions. 9 Sterling Income Shares All Newton ISA funds offer income shares only. With income shares, income will be automatically reinvested to maximise your investment and further shares will be purchased at a discount. If you wish income to be paid to you directly, complete the Direct Credit Mandate Section on the Application Form. 10 At your request, we will transfer your Newton ISA to another manager. This procedure can take up to four weeks. You may terminate the ISA by writing to us and we will send you a cheque within 4 business days. Please remember, if you cash in your entire investment after the cancellation period, you will not be allowed to open another ISA until the next tax year. 11 The Authorised Corporate Director (in effect, the manager) of the OEIC is Newton Fund Managers Limited, 71 Queen Victoria Street, London EC4V 4DR. The Depositary of the OEIC is: Chase Manhattan Trustees Limited, 125 London Wall, London EC2Y 5AJ. 12 Copies of the Prospectus and the latest annual and half yearly reports for all funds can be obtained by contacting Newton Fund Managers Limited, 2 Festival Square, Edinburgh EH3 9SU. 13 If you wish to complain about any aspect of the service you have received please contact the Compliance Officer, Newton Fund Managers Limited, 71 Queen Victoria Street, London EC4V 4DR. If your complaint is not dealt with to your satisfaction, you can then complain directly to the Office of the Investment Ombudsman, 6 Frederick s Place, London EC2R 8BT or the Personal Investment Authority Limited Ombudsman, Hertsmere House, Hertsmere Road, London E14 4AB. Making a complaint will not prejudice your right to take legal proceedings. Information on compensation arrangements is also available on request. Other information More details are available in the "ISA Terms & Conditions" attached. If you require further assistance please call our Client Services Executives free on Please notify us in writing as soon as possible of any change to your personal details.

11 Terms & Conditions 1 The ISA Manager The ISA Manager is Newton Fund Managers Limited, a company registered in England and Wales, registered number , whose registered office is at 71 Queen Victoria Street, London EC4V 4DR. Newton Fund Managers Limited is regulated by the Personal Investment Authority and IMRO in the conduct of its investment business. 2 Definitions Account Investor - shall mean an individual who subscribes to a Newton ISA. Application Form - shall mean the application form in respect of the Newton ISA. Associates - shall mean associates as defined in section 52 of the Companies Act Brochure - shall mean the brochure providing information on the ISA as amended from time to time. FSA - shall mean the Financial Services Authority Limited. Fund - means an authorised sub-fund of the OEIC managed by Newton Fund Managers Limited. IMRO - shall mean the Investment Management Regulatory Organisation Limited. ISA - shall mean the Account Investor s Mini Individual Savings Account or Maxi Individual Savings Account as shown on the Application Form. Newton ISA - shall mean the ISA managed by the ISA Manager. OEIC - shall mean an Open-Ended Investment Company called Newton Investment Funds. PIA - shall mean the Personal Investment Authority Limited. Regulations - shall mean the Individual Savings Account Regulations 1998 as amended from time to time. Rules - shall mean the rules of IMRO, PIA and/or FSA or any successive body, as applicable, as from time to time amended or replaced. References to any statutory provisions or to any regulations made thereunder include any modification or re-enactment thereof. Words and phrases defined in the Rules bear the same meaning in the Terms & Conditions unless the context requires otherwise. Shares - shall mean shares in the Fund. Terms & Conditions - shall mean these Terms & Conditions together with the Application Form. 3 Investment Guidelines and Restrictions Subject to any restrictions on investments in authorised Funds provided by the Regulations and the Rules, the ISA Manager will invest in Shares selected by the Account Investor in the Application Form. Direct equities or cash may not be held within the Newton ISA. 4 Investment Objective The investment objective of the ISA is to invest in Shares in accordance with the Terms & Conditions. 5 Non-Discretionary Management The ISA Manager shall manage the ISA on a non-discretionary basis. 6 Beneficial Ownership 6.1 All investments held in the ISA shall be registered in the name of the Account Investor. 6.2 All Funds are non-certificated and therefore no certificate will be issued for Shares held within the ISA. 6.3 The ISA Manager may not lend the documents of title relating to the ISA or any underlying investment to any third party or borrow money for the Account Investor against the security of such documents of title. 7 Subscriptions All subscriptions will be fully invested in Shares on behalf of the Account Investor and no cash will be held within the ISA. 8 Charges and Expenses 8.1 At the time of investment, the ISA Manager will levy a one-off initial charge on Shares in the ISA. Details of the initial charge payable are available from the ISA Manager on request or may be found in the Key Features Document. 8.2 The highest annual management charge currently payable is 1.5% per annum, while the maximum charge permitted is 2.5%. Details of the management charges payable are available from the ISA Manager on request or can be found in the Key Features Document. 8.3 Charges may be amended by the ISA Manager subject to giving the Account Investor three months written notice of any proposed increase. 8.4 The ISA Manager as Authorised Corporate Director ( ACD ) of the Fund will also receive any other expenses and charges which are properly paid out of the property of the Fund in question to the ACD in accordance with legal and regulatory requirements whether in its capacity as ACD thereof or otherwise. 8.5 The ISA Manager shall be entitled to deduct from the ISA all costs incurred in connection with any withdrawal, assignment or termination of the ISA or any related asset transfer or part thereof including, but not limited to, brokerage and/or commission (details of which will be provided on request). 8.6 The Account Investor will indemnify the ISA Manager and any nominee who is an Associate of the ISA Manager against any expense or liability of any kind suffered by the ISA Manager or such nominee in connection with the establishment, administration and closure of the ISA, except to the extent caused by the negligence, wilful default or fraud of the ISA Manager or such nominee, and except to the extent prohibited by the Rules, the Financial Services Act 1986 and any regulations made thereunder. 8.7 Fund distributions (including related tax credits) from the ISA will be paid out on the relevant Fund pay date. Unless the Account Investor otherwise elects, distribution income (including related tax credits) from the ISA will be automatically reinvested to purchase further Shares. Shares will be allocated at the mid price ruling approximately 14 days before the distribution date, and a discounted initial charge will be added. 8.8 The fees and charges detailed in these Terms & Conditions shall not be supplemented or abated by any other remuneration receivable by the ISA Manager (or to its knowledge by an Associate) in connection with any transactions effected by the ISA Manager with or for the ISA. 9 Commission Payments to Authorised Intermediaries The ISA Manager reserves the right to pay commission to authorised intermediaries, including its Associates. Such commission will be disclosed on the contract note supplied to the Account Investor. This commission is paid out of the Fund charges. 10 Investment Details 10.1 Investors may only subscribe by cheque, direct debit or telegraphic transfer. The limit for future years may be changed by the Inland Revenue. A charge of will be levied on all telephone transfer subscriptions Shares will be purchased or sold on the next ISA dealing day following acceptance by the ISA Manager of the Application Form or receipt of written sale instructions or receipt of subscription monies as appropriate. A contract note will be despatched within 24 hours of processing the Application Form or sale instructions Copies of the prospectus of the Fund (the Prospectus ) are available from the ISA Manager by writing to Newton Fund Managers Limited, FREEPOST, 2 Festival Square, Edinburgh EH3 0EE Shares will be purchased by the ISA Manager on behalf of the Account Investor at the mid price determined by the ISA Manager, as ACD of the Fund. The initial charge will be added. 11 General 11.1 The Account Investor will provide the ISA Manager with all information that the ISA Manager may reasonably require to enable the ISA Manager to carry out its duties hereunder, and undertakes to inform the ISA Manager of any changes in the information given in the Application Form in respect of the ISA or if any of the declarations contained in the Application Form in respect of the ISA ceases to be true. The Account Investor will immediately inform the ISA Manager if he/she ceases to be eligible to contribute to or to hold the ISA The ISA Manager may at any time vary the Terms & Conditions without notice to the Account Investor where such variation is required by the Board of the Inland Revenue or by reason of any amendment to the Regulations or the Rules and in any other case the ISA Manager may vary the Terms & Conditions by written notice to the Account Investor provided that no such variation shall result in the ISA ceasing to qualify under the Regulations. Any such variation of which written notice is required shall take effect on the 30th day following the despatch of such notice to the Account Investor pursuant to clause 17.2 hereof. 12 ISA Manager Appointment 12.1 The ISA Manager is appointed to administer the ISA in accordance with the Regulations, the Terms & Conditions, the Brochure and any applicable Rules. In the case of any inconsistency between the Terms & Conditions and the provisions of the Regulations, the latter shall prevail. In the case of any inconsistency between the provisions of the Terms & Conditions and the Brochure, the former shall prevail. Nothing in the Brochure shall be deemed to restrict any of the ISA Manager s powers or discretions hereunder unless otherwise expressly stated The appointment of the ISA Manager shall take effect on the date on which the ISA Manager receives the duly completed Application Form and a cheque, telegraphic transfer or a duly completed Direct Debit form for an amount which is not less than the minimum and not more than the maximum subscription (as stipulated in the Application Form) or, at the ISA Manager s discretion, such other date as may be permitted under the Rules (the Effective Date ). The Account Investor warrants that cheques will be honoured on first presentation. The Terms & Conditions shall come into force on the Effective Date The ISA Manager is entitled to act as a principal in transactions for the ISA. 13 Rights of the Account Investor 13.1 If requested in writing by the Account Investor, the ISA Manager will (subject to any provisions made by or under the Regulations or any other enactment) make arrangements to enable the Account Investor to attend meetings of the Fund comprised in the ISA which the holder of Shares is entitled to attend and to exercise the voting rights conferred by the holding of the Shares at such meetings, and to receive, in addition to the documents referred to in paragraph 13.2 below, any other information issued by the Fund to holders of Shares The ISA Manager shall arrange for the Account Investor to receive a copy of the annual report and accounts issued by the Fund in which Shares are held under the ISA The ISA Manager reserves the right to make a charge for making arrangements pursuant to paragraph 13.1 of this clause of such amount or amounts as it shall from time to time notify to the Account Investor. 14 Statements and Valuations 14.1 The ISA Manager will provide the Account Investor with a valuation at least twice yearly The ISA Manager will supply to the Account Investor a statement at least twice yearly showing details of all sales and purchases effected for the ISA since the date of the previous statement and that statement shall contain details of any income received and rights conferred in respect of the Shares comprised in the ISA. 15 Withdrawals, Assignment and Termination by the Account Investor 15.1 Subject to the Regulations and to the settlement of outstanding investment transaction(s), any tax liabilities, charges and expenses, the Account Investor may withdraw part or all of the investments by giving written instructions to the ISA Manager. Partial withdrawals may be made subject to the stated minimum of 250 and the ISA Manager may in its absolute discretion refuse to accept a part withdrawal instruction if by doing so the residual value of the investments remaining in the ISA would be less than 1, At the request of the Account Investor, and within such time as shall be agreed by the ISA Manager, the ISA may be transferred to another ISA manager approved under the Regulations The Account Investor may terminate the ISA by giving written notice to the ISA Manager. Such notice will take effect immediately upon receipt by the ISA Manager but shall be without prejudice to the completion of transactions already initiated, and subject thereto the ISA Manager will transfer the proceeds of sale of the investments plus any residual distributions and related tax credits that become the property of the ISA to the Account Investor unless the Account Investor shall otherwise direct. 16 Delegation and Assignment 16.1 The ISA Manager shall only delegate any of its functions or responsibilities arising under the Terms & Conditions to a person whom the ISA Manager is satisfied is competent to perform those functions or responsibilities The ISA Manager may assign any of its rights or obligations under the Terms & Conditions to any of its Associates. 17 Termination by the ISA Manager and non-satisfaction of the Regulations 17.1 Subject to the Regulations, the ISA Manager may terminate the ISA at any time by giving written notice to the Account Investor. Such notice will take effect on the 30th day following the despatch of such notice to the Account Investor but shall be without prejudice to the completion of transactions already initiated and subject thereto the ISA Manager shall pay or transfer the investments to the Account Investor unless the Account Investor shall otherwise direct The ISA Manager shall notify the Account Investor if by reason of any failure to satisfy the provisions of the Regulations, the ISA has or will become void. As soon as practicable thereafter the ISA Manager shall transfer the investments to the Account Investor subject to such deductions (if any) as the ISA Manager may require to meet tax or other liabilities in connection with the ISA. 18 In the Event of Death ISA tax exemptions cease on the Account Investor s death. The ISA Manager should be informed promptly of such an event. Once the Grant of Probate, Letters of Administration or equivalent documentation has been issued or such other formalities as the ISA Manager may specify have been completed, and satisfactory evidence provided to the ISA Manager, the proceeds of the Shares and other residual cash will be transferred to the Account Investor s personal representative(s). The ISA Manager will deduct and repay to the Inland Revenue any tax reclaimed on distributions paid from the ISA after the date of death. 19 Tax Relief Claims The ISA Manager will, in accordance with the Regulations, make reclaims, conduct appeals and agree on behalf of the Account Investor, liabilities for and reliefs from, tax in respect of the ISA. The Account Investor authorises the ISA Manager to provide the Inland Revenue with all applicable details of the ISA. 20 National Insurance Number The Account Investor must supply a National Insurance Number, if available, on the Application Form. This can be obtained from the Account Investor s employer, tax return, pay slip, P45, P60 or from the tax office. If the Account Investor has retired it may be found on the front cover of a pension book. 21 Liability 21.1 The ISA Manager will not be liable for errors of judgement made in good faith nor for the acts, omissions or defaults of agents or custodians or their employees, nor for strikes, interruption of power supplies, machinery failure or causes beyond the ISA Manager s control The ISA Manager will be liable only for errors, acts or omissions arising from the negligence, wilful default or fraud of the ISA Manager or its Associates but nothing under this clause shall exclude the ISA Manager s liability for any breach of the Regulations or the Rules The performance of any unitised investment is dependent upon the underlying investment market to which it is linked. These markets are subject to price fluctuations, so that no particular result can be guaranteed. The value of, and income from, any investment in the stock market may fall as well as rise and the Account Investor may not get back the amount originally invested. The value of overseas securities will be influenced by the rate of exchange which is used to convert them back into sterling. 22 Complaints 22.1 Any complaints the Account Investor may have in respect of the ISA Manager s conduct, or in respect of any service provided under the Terms & Conditions, should be addressed to the Compliance Officer, Newton Fund Managers Limited, 71 Queen Victoria Street, London EC4V 4DR In addition, the Account Investor has the right to complain directly to the Office of the Investment Ombudsman, 6 Frederick s Place, London EC2R 8BT or the Personal Investment Authority Limited Ombudsman, Hertsmere House, Hertsmere Road, London E14 4AB A statement describing the Account Investor s rights to compensation in the event of the ISA Manager s inability to meet any liability to the Account Investor under the Terms & Conditions is available on request. 23 Notices 23.1 All notices and all other communications by the Account Investor to the ISA Manager must be in writing, and delivered or sent by post to the ISA Department, Newton Fund Managers Limited, FREEPOST, 2 Festival Square, Edinburgh EH3 0EE, or such address as the ISA Manager may specify. Instructions may not be acknowledged by the ISA Manager All statements, notices (which must be in writing) and other documents to be sent by the ISA Manager to the Account Investor shall be sent to the Account Investor s address stated on the Application Form or such address as the Account Investor may subsequently specify by notice in writing to the ISA Manager. 24 Proper Law The Terms & Conditions will be governed by English law and the parties hereby submit to the non-exclusive jurisdiction of the English courts.

12 Newton Fund Managers Limited 71 Queen Victoria Street London EC4V 4DR Tel: Fax: e mail: information@newton.co.uk web: A Mellon Asset Management Company Registered in England No Registered office: as address Regulated by the Personal Investment Authority and IMRO A member of AUTIF ISA/500 03/00

13 MAXI ISA Application 1 Your Personal Details This section is compulsory (BLOCK CAPITALS PLEASE) Title: Surname: IFA Details/Special Instructions Full Forename(s): Permanent Residential Address: GM2 ISA Link (gm2) Postcode: Daytime Tel No: Date of birth Do you have a National Insurance Number? Yes No National Insurance Number Nil Inital Commission (You will find this on your payslip, P45, P60, DHSS or Pension Book) I apply to subscribe for the tax year ending 5 April 2001 (and, for regular savings, each subsequent tax year until further notice). Ref. No. F16142 (For official use only) 2 Your Choice of Investment Please enter the amount you wish to save in each fund and your total investment in the boxes below. Note: Remember you CANNOT invest in BOTH a Maxi and a Mini ISA in the same tax year. Maxi ISA (Total annual investment 7,000) Lump Sum Monthly Payment 1 Min 1,000 per fund Min 50 per fund Lump Sum Monthly Payment 1 Min 1,000 Min 50 per fund American Income Balanced International Bond Continental European International Growth Equity & Bond Japan Global Innovation Managed Growth Oriental High Yield Bond Pan-European Higher Income Your Total Investment Notes: Income will automatically be re-invested to maximise your investment unless Section 4 overleaf is completed. 1 For monthly contributions in a regular savings plan, please ensure you complete the Direct Debit Mandate (Section 3 below). PLEASE ENSURE THAT YOU SIGN AND DATE THE DECLARATION OVERLEAF 3 Instruction to your Bank or Building Society to pay Direct Debits Please complete parts A to D to instruct your Bank OR Building Society to make payments directly from your account Newton Fund Managers Limited, FREEPOST, 2 Festival Square, Edinburgh EH3 0EE. A. Full name and postal address of your Bank or Building Society: Building Society The Manager, Account No Building Society Collection Account No Postcode B. Name(s) of Account Holder(s) Originator s Identification Number Originator s Reference (leave blank) D. Instruction to your Bank or Building Society and signature(s) Please pay Newton Fund Managers Limited Direct Debits from the account detailed on this instruction, subject to the safeguards assured by the Direct Debit Guarantee (see overleaf). I understand that this instruction may remain with Newton Fund Managers Limited, and if so, details will be passed electronically to my Bank or Building Society. C. Bank Account No. Signature Date Bank Sort Code Signature Date

14 4 Do you want to receive income from your investment? Income will be automatically reinvested if this Section is not completed. Please pay the income to my Bank/Building Society account as follows: Bank/Building Society: Bank Sort Code Address: Name(s) of Account Holder(s) Postcode: Bank Account No. Building Society Account No Building Society Collection Account No 5 Declaration (Please read this Section carefully before signing and dating the Declaration.) I declare that All subscriptions made, and to be made, belong to me; I am over 18 years of age; I have not subscribed and will not subscribe to another ISA other than a TESSA-only ISA in the same year that I subscribe to this MAXI ISA; and I am resident and ordinarily resident in the United Kingdom for tax purposes or, if not so resident, perform duties which, by virtue of Section 132 (4)(a) of the Income and Corporation Taxes Act 1988 (Crown employees serving overseas), are treated as being performed in the United Kingdom, and will inform Newton Fund Managers Limited if I cease to be so resident and ordinarily resident or to perform such duties. I authorise Newton Fund Managers Limited To hold my cash subscription, ISA investments, interest, dividends and any other rights or proceeds in respect of those investments and any other cash; To make on my behalf any claims to relief from tax in respect of ISA investments; and On my written request to transfer or pay to me, as the case may be, ISA investments, interest, dividends, rights or other proceeds in respect of such investments or any cash. I have read the Key Features Document and agree to the ISA Terms & Conditions. I declare that this Application Form has been completed to the best of my knowledge. Signature Date Please send your completed Application Form and cheque (where applicable) made payable to Newton Fund Managers Limited to: ISA Department, Newton Fund Managers Limited, FREEPOST, 2 Festival Square, Edinburgh EH3 0EE Data Protection Act Newton Fund Managers Limited is a data controller within the meaning of the Data Protection Act The Account Investor hereby consents to such use by Newton of the personal information given under this Agreement as may be reasonably necessary in providing investment services to the Account Investor and in updating its customer records. Such information may also be used by Newton and its Associates to advise the Account Investor of other products or services unless the Account Investor informs Newton otherwise in writing. Newton Fund Managers Limited. Regulated by the Personal Investment Authority and IMRO. A Member of AUTIF. A Mellon Asset Management Company MAXISA/454B-03/00 The Direct Debit Guarantee This guarantee is offered by all banks and building societies that take part in the direct debit scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society. If the amounts to be paid or the payment dates change, Newton Fund Managers Limited will notify you in writing before the new collection is made. If an error is made by Newton Fund Managers Limited or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid. You can cancel a direct debit at any time by writing to your bank or building society. Please also send a copy of the letter to Newton Fund Managers Limited.

15 MINI ISA Application 1 Your Personal Details This section is compulsory (BLOCK CAPITALS PLEASE) Title: Full Forename(s): Surname: IFA Details/Special Instructions Permanent Residential Address: GM2 ISA Link (gm2) Postcode: Daytime Tel No: Date of birth Do you have a National Insurance Number? Yes No Nil Initial Commission National Insurance Number (You will find this on your payslip, P45, P60, DHSS or Pension Book) Ref. No. F16142 (For official use only) I apply to subscribe for the tax year ending 5 April 2001 (and, for regular savings, each subsequent tax year until further notice). 2 Your Choice of Investment Please enter the amount you wish to save in each fund and your total investment in the boxes below. Note: Remember you CANNOT invest in BOTH a Maxi and a Mini ISA in the same tax year. Mini ISA (Total annual investment 3,000) Lump Sum Monthly Payment 1 Min 1,000 per fund Min 50 per fund Lump Sum Monthly Payment 1 Min 1,000 per fund Min 50 per fund American Income Balanced International Bond Continental European International Growth Equity & Bond Japan Global Innovation Managed Growth Oriental High Yield Bond Pan-European Higher Income Your Total Investment Notes: Income will automatically be re-invested to maximise your investment unless Section 4 overleaf is completed. 1 For monthly contributions in a regular savings plan, please ensure you complete the Direct Debit Mandate (Section 3 below). PLEASE ENSURE THAT YOU SIGN AND DATE THE DECLARATION OVERLEAF 3 Instruction to your Bank or Building Society to pay Direct Debits Please complete parts A to D to instruct your Bank OR Building Society to make payments directly from your account Newton Fund Managers Limited, FREEPOST, 2 Festival Square, Edinburgh EH3 0EE. A. Full name and postal address of your Bank or Building Society: Building Society The Manager, Account No Building Society Collection Account No Postcode B. Name(s) of Account Holder(s) Originator s Identification Number Originator s Reference (leave blank) D. Instruction to your Bank or Building Society and signature(s) Please pay Newton Fund Managers Limited Direct Debits from the account detailed on this instruction, subject to the safeguards assured by the Direct Debit Guarantee (see overleaf). I understand that this instruction may remain with Newton Fund Managers Limited, and if so, details will be passed electronically to my Bank or Building Society. C. Bank Account No. Signature Date Bank Sort Code Signature Date

16 4 Do you want to receive income from your investment? Income will be automatically reinvested if this Section is not completed. Please pay the income to my Bank/Building Society account as follows: Bank/Building Society: Bank Sort Code Address: Name(s) of Account Holder(s) Postcode: Bank Account No. Building Society Account No Building Society Collection Account No 5 Declaration (Please read this Section carefully before signing and dating the Declaration.) I declare that All subscriptions made, and to be made, belong to me; I am over 18 years of age; I have not subscribed and will not subscribe to a Maxi ISA or another stocks and shares Mini ISA in the same year that I subscribe to this Mini ISA; and I am resident and ordinarily resident in the United Kingdom for tax purposes or, if not so resident, perform duties which, by virtue of Section 132 (4)(a) of the Income and Corporation Taxes Act 1988 (Crown employees serving overseas), are treated as being performed in the United Kingdom, and will inform Newton Fund Managers Limited if I cease to be so resident and ordinarily resident or to perform such duties. I authorise Newton Fund Managers Limited To hold my cash subscription, ISA investments, interest, dividends and any other rights or proceeds in respect of those investments and any other cash; To make on my behalf any claims to relief from tax in respect of ISA investments; and On my written request to transfer or pay to me, as the case may be, ISA investments, interest, dividends, rights or other proceeds in respect of such investments or any cash. I have read the Key Features Document and agree to the ISA Terms & Conditions. I declare that this Application Form has been completed to the best of my knowledge. Signature Date Please send your completed Application Form and cheque (where applicable) made payable to Newton Fund Managers Limited to: ISA Department, Newton Fund Managers Limited, FREEPOST, 2 Festival Square, Edinburgh EH3 0EE Data Protection Act Newton Fund Managers Limited is a data controller within the meaning of the Data Protection Act The Account Investor hereby consents to such use by Newton of the personal information given under this Agreement as may be reasonably necessary in providing investment services to the Account Investor and in updating its customer records. Such information may also be used by Newton and its Associates to advise the Account Investor of other products or services unless the Account Investor informs Newton otherwise in writing. Newton Fund Managers Limited. Regulated by the Personal Investment Authority and IMRO. A Member of AUTIF. A Mellon Asset Management Company MINISA/455B-03/00 The Direct Debit Guarantee This guarantee is offered by all banks and building societies that take part in the direct debit scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society. If the amounts to be paid or the payment dates change, Newton Fund Managers Limited will notify you in writing before the new collection is made. If an error is made by Newton Fund Managers Limited or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid. You can cancel a direct debit at any time by writing to your bank or building society. Please also send a copy of the letter to Newton Fund Managers Limited.