EQUITIES FIXED INCOME PROPERTY Aberdeen Multi-Manager Portfolio Fund Simplified Prospectus March 2010 The Financial Services Authority (FSA) is the UK s independent financial services regulator. It requires us, Aberdeen Unit Trust Managers Limited, to give you this important information to help you decide whether the Aberdeen Multi-Manager Portfolio Fund is right for you.
Contact Details WHAT ARE ABERDEEN S CONTACT DETAILS? Aberdeen Unit Trust Managers Limited (The Manager) Freepost RLTZ-CKGZ-ESTA PO Box 9029 Chelmsford CM99 2WJ Investors Please contact our Customer Services Department Telephone: 0845 300 2890 Fax: 0870 888 3036 E-mail: customer.services@aberdeen-asset.com Website: www.aberdeen-asset.co.uk Financial Advisers Please contact our Broker Desk Telephone: 0800 592 48 E-mail: broker.desk@aberdeen-asset.com Dealing lines OEIC/ISA Applications Tel: 0800 833 580 Fax: 0870 888 3036 Telephone calls may be recorded. HOW DO I CONTACT THE FINANCIAL SERVICES AUTHORITY? Aberdeen Unit Trust Managers is authorised and regulated by the Financial Services Authority in the United Kingdom. The FSA can be contacted at: 25 The North Colonnade, Canary Wharf, London, E14 5HS From UK: 0845 606 1234 (local call rates) Website: www.fsa.gov.uk EMAIL SERVICES To receive regular information on Aberdeen s UK fund range, please register for our email services at: www.aberdeen-asset.com/email This Simplified Prospectus is an important document which you should read and understand prior to making an investment. Please retain it for future reference.
Contents 2 Simplified Prospectus of the Aberdeen Multi-Manager Portfolio Fund 3 Aims 5 Your investment 5 Risk factors 7 Questions and Answers 14 Further Information 20 Fund Performance 24 Terms and Conditions for Direct Investors 27 Aberdeen Multi-Manager Individual Savings Account Terms and Conditions 38 Application Checklist App 1 Aberdeen Multi-Manager Unit Trust application form App 2 Aberdeen MuIti-Manager ISA investments and ISA transfer application form App 3 Aberdeen MuIti-Manager ISA transfer form App 4 Direct Debit form
Simplified Prospectus of the Aberdeen Multi-Manager Portfolio Fund This document has been designed to help you make sure that you have considered this most important information before you make your investment decision. Please make sure that you have read it carefully. The Financial Services Authority is the independent financial services regulator in the UK. It requires us, Aberdeen Unit Trust Managers Limited, to give you this important information to help you decide whether our Aberdeen Multi-Manager Portfolio Fund 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. Aberdeen Unit Trust Managers Limited is authorised and regulated by the Financial Services Authority in the United Kingdom ( FSA ) and its registration number is 121803. The principal business of Aberdeen Unit Trust Managers Limited is the management and administration of Collective Investment Schemes. This Simplified Prospectus, together with the Terms and Conditions for Direct Investors and ISA investors, form the basis of your agreement with us. These items are, and all future communications will be, produced in English and shall be governed in accordance with English Law and we and you agree that the English Courts will have exclusive jurisdiction in respect of any dispute between us. Before you invest, you should: n Make sure that you have selected a Portfolio(s) that has an aim which will help you achieve what you want with your money. n Consider the risks that you will be taking when you invest in a Portfolio(s) whose capital return is not guaranteed. n Make sure that you understand how charges might affect your investment over the longer term. n Consult an appropriately authorised and regulated financial adviser ( FA ) if you are in any doubt that the investment is suitable for you. Aberdeen Unit Trust Managers Limited is the Manager of the Fund. This Simplified Prospectus relates to investments into the Aberdeen Multi- Manager Portfolio Fund, sub funds of a Non-UCITS Retail Scheme, authorised by the Financial Services Authority ( FSA ). 2 Aberdeen Multi Manager Portfolio Fund, March 2010
Its aims The aim of your Aberdeen Multi-Manager investment will depend on which Aberdeen Multi-Manager Portfolio you have decided to invest in. Aberdeen Multi-Manager Balanced Managed Fund The investment objective of the Fund is to achieve capital growth and reasonable income. Investment will be primarily in shares or units of collective investment schemes. Up to 85% of the Fund will be invested in collective investment schemes which invest mainly in equities or which pursue a strategy mainly linked to equity investment. The Fund may also invest directly in transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager Cautious Managed Fund The investment objective of the Fund is to achieve income and capital growth by the adoption of a cautious investment approach. Investment will be primarily in shares or units of collective investment schemes. Up to 60% of the Fund will be invested in collective investment schemes which invest mainly in equities or which pursue a strategy mainly linked to equity investment. The Fund may also invest in other collective investment schemes including those which invest in fixed income holdings. The Fund may also invest directly in transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager Constellation Fund The investment objective of the Fund is to achieve capital growth. Investment will be primarily in shares or units of collective investment schemes managed by companies judged to be boutique in nature. The Fund may also invest directly in other collective investment schemes and transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager Emerging Markets Portfolio The investment objective of the Fund is to achieve capital growth. Investment will be primarily in shares or units of collective investment schemes investing directly or indirectly mainly in emerging economies around the world. The Fund may also invest directly in other collective investment schemes and transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager Equity Managed Fund The investment objective of the Fund is to achieve capital growth. Investment will be primarily in shares or units of collective investment schemes which invest mainly in equities or which pursue a strategy mainly linked to equity investment. The Fund may also invest directly in transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager Ethical Portfolio The investment objective of the Fund is to achieve capital growth. Investment will be primarily in shares or units of collective investment schemes investing in companies in any geographic area or sector which have an ethical, socially responsible or environmental consideration in their stock selection process. The Fund may also invest directly in transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager International Growth Fund The investment objective of the Fund is to achieve capital growth. Investment will be primarily in shares or units of collective investment schemes investing in companies in any geographic area or sector. The Fund may also invest directly in other collective investment schemes and transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi Manager Portfolio Fund, March 2010 3
Aberdeen Multi-Manager Multi Asset Distribution Fund The investment objective of the Fund is to generate income payable quarterly and long term capital growth. Investments will be mainly in shares or units of collective investment schemes investing (directly or indirectly) in equities or fixed interest securities or pursuing an absolute return objective in any geographical area or sector. The Fund may include an indirect exposure to property with any geographical or sector focus. The Fund may also invest in other collective investment schemes (including unregulated schemes) and directly in transferable securities, money market instruments, near cash, cash and deposits. The Fund may also invest in derivatives for the purpose of delivering its investment objective. Aberdeen Multi-Manager Multi Asset Growth Fund The investment objective of the Fund is to generate long term capital growth Investment will be mainly in shares or units of collective investment schemes investing (directly or indirectly) in equities or fixed interest securities or pursuing an absolute return objective in any geographical area or sector. The Fund may include an indirect exposure to property with any geographic or sector focus. The Fund may also invest in other collective investment schemes (including unregulated schemes) and directly in transferable securities, money market instruments, near cash, cash and deposits. The Fund may also invest in derivatives for the purpose of delivering its investment objective. Aberdeen Multi-Manager Sterling Bond Portfolio The investment objective of the Fund is to achieve a reasonable income. Investment will be primarily in shares or units of collective investment schemes investing directly or indirectly mainly in Sterling linked fixed interest securities. The Fund may also invest directly in other collective investment schemes and transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager UK Growth Portfolio The investment objective of the Fund is to achieve capital growth. Investment will be primarily in shares or units of collective investment schemes investing directly or indirectly mainly in the UK. The Fund may also invest in other collective investment schemes and directly in transferable securities, money market instruments, near cash, cash and deposits. Aberdeen Multi-Manager UK Income Portfolio The investment objective of the Fund is to achieve a combination of income and capital growth. Investment will be primarily in shares or units of collective investment schemes investing directly or indirectly mainly in the UK. The Fund may also invest directly in other collective investment schemes and transferable securities, money market instruments, near cash, cash and deposits. 4 Aberdeen Multi Manager Portfolio Fund, March 2010
Your investment Unit trust and ISA investors You may invest an initial lump sum of 1,000 per Portfolio or in a Aberdeen ISA, and you may top up your holding with cash sums of 100 whenever you wish. You may of course sell your units at any time, but please bear in mind that the minimum sale is 100. If you take out a regular savings plan you can invest a minimum amount of 100 per month per Portfolio. We will acknowledge your initial investment and provide details of subsequent investments in your six monthly statements. ISA transfers Important - Risk factors Since the value of your existing ISA(s) can only be calculated at the time of transfer by your existing account manager(s), you should ensure that you have specified the percentage of your ISA(s) to be invested in your chosen Portfolio(s). The minimum investment per Portfolio is 1,000. GENERAL RISK FACTORS TO CONSIDER WHEN INVESTING IN THESE FUNDS Any stock market investment involves risk. Some of these risks are general, which means that they apply to all investments. Others are specific, which means that they apply to individual funds. Before you decide to invest, it is important to understand these risks. If you are unsure, please consult your financial adviser. Market risk The value of units and the income from them can go down as well as up. Performance risk Past performance is not a guide to the future. Inflation risk Inflation will, over time, reduce the spending power of your investments. Derivatives for hedging purposes The majority of the funds of the Aberdeen Multi-Manager Portfolio Fund are permitted to use derivatives to hedge against various risks as permitted by the regulations. The use of derivatives for hedging in a rising market may restrict potential gains. Tax The value of tax benefits depends on individual circumstances and the favourable tax treatment for ISAs may not be maintained. WHAT ARE THE SPECIFIC RISKS ASSOCIATED WITH THESE FUNDS? The Aberdeen Multi-Manager funds have different investment objectives, which define their areas of investment. The fund specific risks highlighted below may also apply to your investment. (A) Exchange Rates Funds investing overseas can be affected by changes in exchange rates which may cause the value of your investment to decrease or increase. Aberdeen Multi Manager Portfolio Fund, March 2010 5
In particular, this risk applies to the following funds: Aberdeen Multi-Manager Balanced Managed Fund Aberdeen Multi-Manager Cautious Managed Fund Aberdeen Multi-Manager Constellation Fund Aberdeen Multi-Manager Emerging Markets Portfolio Aberdeen Multi-Manager Ethical Portfolio Aberdeen Multi-Manager International Growth Fund Aberdeen Multi-Manager Multi Asset Distribution Fund Aberdeen Multi-Manager Multi Asset Growth Fund (B) Bond and Fixed Interest Funds With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments. Where long term interest rates rise, the capital value of units is likely to fall, and vice versa. In addition to the interest rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is usually higher with bonds classified as sub-investment grade. These may produce a higher level of income but at a higher risk than investments in investment grade bonds. In turn, this may have an adverse impact on funds that invest in such bonds. In particular, these risks apply to the following funds: Aberdeen Multi-Manager Balanced Managed Fund Aberdeen Multi-Manager Cautious Managed Fund Aberdeen Multi-Manager Ethical Portfolio Aberdeen Multi-Manager Multi Asset Distribution Fund Aberdeen Multi-Manager Multi Asset Growth Fund Aberdeen Multi-Manager Sterling Bond Portfolio (C) Charges taken from capital Certain funds treat the generation of income as a higher priority than capital growth; such funds may deduct their annual management charge from your capital. This will increase the amount of income available but at the expense of capital growth. In particular, this risk applies to the following funds: Aberdeen Multi-Manager Cautious Managed Portfolio Aberdeen Multi-Manager UK Income Portfolio Aberdeen Multi-Manager Multi Asset Distribution Portfolio Aberdeen Multi-Manager Sterling Bond Portfolio (D) Emerging markets Emerging markets tend to be more volatile and illiquid than more mature markets and therefore your investment is at greater risk. Political risks and adverse economic circumstances are more likely to arise, putting the value of your investment at risk. In particular, this risk applies to the following funds: Aberdeen Multi-Manager Balanced Managed Fund Aberdeen Multi-Manager Constellation Fund Aberdeen Multi-Manager Emerging Markets Portfolio Aberdeen Multi-Manager International Growth Fund Aberdeen Multi-Manager Multi Asset Growth Fund (E) Specialist sectors/small markets Funds which invest in small markets or specialist sectors of industry are likely to be more volatile than more diversified funds. 6 Aberdeen Multi Manager Portfolio Fund, March 2010
In particular, this risk applies to the following funds: Aberdeen Multi-Manager Constellation Fund Aberdeen Multi-Manager Ethical Portfolio (F) Specialist geographical funds If a fund is a specialist country-specific or geographical region fund, the investment carries greater risk than a fund diversified across more countries. In particular, this risk applies to the following funds: Aberdeen Multi-Manager UK Growth Portfolio Aberdeen Multi-Manager UK Income Portfolio (G) Derivatives for investment purposes Questions and Answers Some funds are permitted to invest in derivatives for investment purposes, which may, in certain circumstances, increase the volatility of the funds. In particular, this risk applies to the following funds: Aberdeen Multi-Manager Multi Asset Distribution Fund Full details of all risks can be found in the Prospectus. What is a fund of funds? A fund of funds unit trust is a form of collective investment where investors money is pooled, but instead of being directly invested in shares and securities, the professional managers invest in other unit trust/open ended investment companies ( OEIC ) products which in turn invest in shares and securities. How should I choose which Portfolio(s) to invest in? To decide which Portfolio(s) to invest in you must define your investment objectives and decide whether you want your investment to provide income or capital growth, how much risk you are willing to take and what sort of return you expect to make on your investment. Aberdeen Unit Trust Managers Limited and its staff are not permitted to advise you on the suitability or otherwise of investing in a Portfolio. If you are in any doubt that the investment is suitable for you and wish to obtain personal advice you should consult a financial adviser. You may have to pay for this advice. Do the initial and annual charges include the charges for the underlying investments? The initial charge and annual management charge are applied by us for the provision of each Aberdeen Multi-Manager Fund. In addition, each Fund will incur certain other costs and expenses which include, for example, audit fees and Financial Services Authority fees as well as the charges applied by the funds in which we invest. We are typically able to negotiate a discount on investment in to the underlying funds and the benefit of these terms is passed directly to our investors. Aberdeen Multi Manager Portfolio Fund, March 2010 7
What are the risks? Unit trust investors ISA investors Please read carefully the section headed Risk factors, please note in particular investment risks impacting the value of units and income; currency risk; emerging markets and bond volatility. What is a unit trust? A unit trust is a form of collective investment. Investors money is pooled and invested in shares and securities by professional managers. It is a way of participating indirectly in investment in the stockmarket. Rather than owning shares in individual companies, the investor owns units in a unit trust which itself has a wide range of holdings. How do I invest? You can invest in an Aberdeen Multi-Manager Portfolio unit trust by post or over the telephone. Investments by post should be sent to Aberdeen Unit Trust Managers Limited, Freepost RLTZ-CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. To invest over the telephone, please call our dealers on 0800 833 580. What is an individual savings account ( ISA )? An ISA is a way of saving money without having to pay personal tax on any profit made, income or interest received. The account itself is like a basket in which you can put different types of investments. Within government regulations, an investor may subscribe to two different types of ISA, a Stocks and Shares ISA and a Cash ISA. We do not offer a Cash ISA. An investor can hold a Stocks and Shares ISA with Aberdeen as well as a Cash ISA with a different ISA manager. Investors can transfer between different ISA managers. Do I have to choose Aberdeen for all my ISA investments? Yes, if you choose only to invest in the Stocks and Shares ISA. You may, however, choose to invest in a Cash ISA with another provider. Should you wish to invest in the Stocks and Shares ISA only you may invest up to 7,200* per annum. Should you wish to invest in both the stocks and shares and the cash component of an ISA you may invest a total of 7,200* per annum with a maximum of 3,600* per annum to cash. * If you are aged 50 or over on or before 5 April 2010, the overall ISA subscription limit is 10,200 per tax year. From 6 April 2010, the overall ISA subscription limit for all eligible investors increases to 10,200. How do I invest? You can invest in an Aberdeen Multi-Manager Portfolio ISA by post or over the telephone. Investments by post should be sent to ABERDEEN UNIT TRUST MANAGERS LIMITED, Freepost RLTZ-CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. To invest over the telephone, please call our dealers on 0800 833 580. For a telephone ISA, Aberdeen will send you a Declaration Form confirming the information you have provided. This Declaration Form does not have to be signed by you or returned to Aberdeen. However, please inform Aberdeen of any discrepancies within 30 days. 8 Aberdeen Multi Manager Portfolio Fund, March 2010
Who can invest in an ISA? Anyone aged 18 or over and resident in the UK for tax purposes, or persons deemed to be Crown Employees Serving Overseas or their spouses/civil partners. Persons aged 16 or over and resident in the UK for tax purposes, or persons deemed to be Crown Employees Serving Overseas or their spouses may invest in the cash element of an ISA. For whom are ISAs suitable? Anyone who can afford to set aside money, perhaps for a rainy day or for some long term savings objective. You should think carefully about the risks before deciding which type of ISA is right for you. An ISA investing in stockmarkets may be able to offer higher returns in the long term, but there is no guarantee of what you might get back and you could get back less than you paid in. Please make sure you read and understand the sections headed What are the risk factors affecting the Funds in this document. How much can I invest in a Stocks and Shares ISA? The following table illustrates the maximum limits: ISA Per Tax Year Stocks and Shares 7,200 (or 10,200*) or Cash 3,600 (or 5,100*) Stocks and Shares 3,600 (or 5,100*) The sum of investment to cash and stocks and shares cannot exceed 7,200 (or 10,200*) *Anyone eligible to invest in an ISA who was born on or before 5 April 1960 (i.e. who will be aged 50 or over during the 2009/10 tax year) can invest up to 10,200 per tax year. Up to 5,100 of this limit can be invested in a Cash ISA. This higher limit applies to all eligible ISA investors with effect from 6 April 2010. A tax year runs from 6 April one year to 5 April the next. For example, the 2010/2011 tax year runs from 6 April 2010 to 5 April 2011. Is there a maximum I can invest? Untill the 5 April 2010, the maximum investment permitted into a Stocks and Shares ISA is 7,200* per tax year. Where an investor subscribes to a cash ISA with another ISA manager, in conjunction with a Stocks and Shares ISA, their annual aggregate ISA must not exceed the overall subscription limit of 7,200 * If you are aged 50 or over on or before 5 April 2010, the overall ISA subscription limit is 10,200 per tax year. New ISA Subscription limits from 6 April 2010 From the beginning of the 2010/11 tax year, the overall ISA subscription limit for all eligible investors increases to 10,200. Can I transfer a Cash ISA to Aberdeen? As a change to the ISA rules effective from 6 April 2008, you may now transfer previous years Cash ISAs to a Stocks and Shares ISA without affecting your annual ISA allowance. If you transfer a Cash ISA into a Stocks and Shares ISA, you should be aware that you will not be able to subsequently transfer your ISA back to a Cash ISA. Aberdeen Multi Manager Portfolio Fund, March 2010 9
All investors Can I transfer previous years ISAs to Aberdeen? The ISA rules allow you to transfer proceeds from an existing ISA into the Aberdeen ISA. This is invested in a Aberdeen Fund(s) without paying tax on the gains. This means any income you receive from investments in the ISA and any capital gains you make if you sell the ISA are not currently subject to a personal tax liability. Is there a maximum I can transfer? No. You can transfer all your ISA holdings from previous tax years if you wish. Will I pay tax on my ISA? No. There is no personal liability to income tax or capital gains tax under your ISA. Prevailing tax levels and relief are liable to change and their value will depend on your individual circumstances. The favourable tax treatment for ISAs may not be maintained. From 6 April 1999 the tax credits reclaimed from HM Revenue & Customs on dividend distributions were reduced from 20% to 10% and were withdrawn completely from 5 April 2004. Interest distributions currently continue to benefit from a reclaimable tax credit of 20%. What happens to my investment? Your money is invested to buy units in your chosen Portfolio(s). What happens if I change my mind? When you invest with us we will send you a unit trust contract note/isa acknowledgement letter. If you have received advice from a financial adviser, you will have the right to cancel within 14 days of receiving from us a notice of your right to cancel. You cannot claim full reimbursement if the purchase price of your investment falls before we receive written confirmation that you wish to cancel. An amount equivalent to the fall in the price of the units will be deducted. If you are transferring an ISA to us from a previous manager you must be aware that if you exercise your right to cancel your account or plan you will lose all the tax benefits attached to your account or plan. These cannot be replaced. How will I know what my investment is worth? Every six months as at 5 April and 5 October you will be sent a statement showing the value of your investment. You will also receive annual and half yearly reports on the Portfolio(s) you have invested in. The prices and distribution yields of all the Portfolios are available from our website at www.aberdeen-asset.co.uk or by contacting the Customer Services team on 0845 300 2890. 10 Aberdeen Multi Manager Portfolio Fund, March 2010
Can I withdraw regular amounts from my Portfolio? Yes. By choosing the regular withdrawal facility you can receive a fixed payment either monthly, quarterly, half yearly or yearly. The minimum amount you may draw from each Portfolio is 100 per withdrawal and the arrangement is to be automated. To raise your required amount of fixed monthly payments we will sell units from your Portfolio(s) and credit the proceeds to your bank account on the first business day of the relevant month. The sale of units will be transacted four business days earlier. You should note that the sale of units may result in the long term erosion of the amount originally invested. You may increase, decrease or stop regular withdrawals by writing to us at Aberdeen Unit Trust Managers Limited, Freepost RLTZ-CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. If you have invested in an ISA you should be aware that once you have subscribed the maximum in a tax year, any amounts withdrawn under the regular withdrawal facility cannot be replaced. For unit trust investors the sale of units will be treated as a disposal for capital gains tax purposes. Can I cash in my investment? Unit trust investors To sell part or all of your holding, you may send instructions by fax (0870 888 3036), in writing or by telephoning our Dealing Department (0800 833 580). ISA investors To sell part or all of your holding, you may send instructions by fax (0870 888 3036), in writing or by telephoning our Dealing Department (0800 833 580). All investors If you are cashing in part of your investment, please bear in mind that the minimum sale is 100. A cheque for the cash in value of your investment will normally be sent to you within five business days following receipt of correctly completed renunciation. How long do I have to hold my investment? There is no obligatory length of time. You are not locked in to an Aberdeen investment. However, we do recommend that you should aim to hold your investment for at least five years. The Portfolio(s) aim to produce long term above average performance. Can I reinvest income? Yes. Please tick the Accumulation units box on the application form. Any income will be accrued in the price of your units. Can I receive income? Yes. Please tick the Income units box on the application form. Payment will be made direct to your bank or building society account. If reinvestment of distributions is requested, the investment will be switched from Income units to the equivalent Accumulation units at no cost to you. If your bank or building society account details have not been supplied with the Application, then the investment will be made in the Accumulation units of the same fund. Distributions cannot otherwise be reinvested. Aberdeen Multi Manager Portfolio Fund, March 2010 11
How do I notify Aberdeen of a change of personal details? All notifications of a change of address (on an account in a single name only) can be accepted by telephone or fax. For any other change of personal details, or for accounts held in more than one name, details must be sent to us accompanied by all appropriate signatures. How much will any advice cost? Your financial adviser will give you details about the cost. The amount will depend on the size of your investment. A financial adviser will typically be remunerated via a fee paid directly by you or via commission. If the financial adviser is paid by commission they may receive a percentage of the initial charge and a percentage of the annual management charge. How will the charges and expenses affect my investment? Units are purchased at the buying price and redeemed at the selling price. The difference between the two is called the spread which includes the initial charge. The buying and selling prices are available from our website at www.aberdeen-asset.co.uk but you should note that these prices relate to the previous day s dealing. The initial spread, initial charge and annual management charge of each Portfolio are shown below. Portfolio Initial spread Initial charge TER Annual management charge PTR Aberdeen Multi-Manager Balanced Managed Portfolio 4.2% 4% 2.47% 1.5% 128.62% Aberdeen Multi-Manager Cautious Managed Portfolio 4.2% 4% 2.31% 1.5% 97.61% Aberdeen Multi-Manager Constellation Portfolio 4.2% 4% 2.46% 1.5% 138.75% Aberdeen Multi-Manager Emerging Markets Portfolio 4.2% 4% 2.97% 1.5% 25.95% Aberdeen Multi-Manager Equity Managed Portfolio 4.2% 4% 2.54% 1.5% 125.32% Aberdeen Multi-Manager Ethical Portfolio 4.2% 4% 2.55% 1.5% 78.65% Aberdeen Multi-Manager International Growth Portfolio 4.2% 4% 2.53% 1.5% 135.71% Aberdeen Multi-Manager Multi Asset Distribution Portfolio 4.2% 4% 2.22% 1.5% 146.02% Aberdeen Multi-Manager Multi Asset Growth Portfolio 4.2% 4% 2.54% 1.5% 114.32% Aberdeen Multi-Manager Sterling Bond Portfolio 4.2% 4% 2.24% 1.5% 118.94% Aberdeen Multi-Manager UK Growth Portfolio 4.2% 4% 2.61% 1.5% 168.03% Aberdeen Multi-Manager UK Income Portfolio 4.2% 4% 2.31% 1.5% 84.56% Stocklending agreements The Company may, with the agreement of the Depositary, participate in stocklending arrangements to generate revenue for the Fund. Collateral to cover against the risk of failure to redeliver stock will always be required. A fee may be payable from the revenue generated to a stocklending agent, which may be an associated company of Aberdeen Unit Trust Managers Limited. There is an annual management charge on each Portfolio to cover the ongoing management and administration of the Portfolio. This does not include dealing costs. The annual management charge is reflected in the daily price of units and is paid to the Manager monthly in arrears. The annual management charge on the Aberdeen Multi-Manager Cautious Managed Portfolio, UK Income Portfolio, Multi Asset Distribution Portfolio and Sterling Bond Portfolio is taken from the capital of the Portfolio. For all other Multi-Manager funds it is taken from the income of the Portfolio. Total Expense Ratio (TER) The TER is the true annual running cost of the fund as it is the sum of the annual management charge and other expenses. Dealing costs are not included. The TER can help you compare the annual operating expenses of different funds. The AMC and the TER for each Fund are shown above. All of the above charges and expenses will normally be taken from the fund s income although some funds take charges from capital. 12 Aberdeen Multi Manager Portfolio Fund, March 2010
Underlying fund charges The Funds invest in other authorised collective investment schemes and these funds will also have charges, which will indirectly affect your investment. These are preliminary and annual management charges. The underlying funds will also incur additional attributable expenses similar to those mentioned above. Portfolio Turnover Rate (PTR) The PTR represents the percentage of the fund s portfolio that is bought and sold over a 12 month period. If the PTR is high, the costs incurred may have a higher impact on your investment. At the same time, active management may mean that changing investments increases the performance of the fund sufficiently to outweigh these costs. The PTR of each fund is quoted in the table above. Unit trust investors The effect on an investment of 1,000 assuming growth of 6% a year is set out overleaf. Investments held within an ISA may achieve a higher growth rate than those held outside such products because of their tax benefits. All figures are as at 18 February 2010. These figures are examples and are not guaranteed and serve only to demonstrate the effect of charges and expenses on an investment. Aberdeen Multi-Manager Constellation Portfolio Initial spread 4.2%. Annual and administration charges 2.46% (includes annual management charge of 1.5%, and other expenses such as trustee, custody, audit, register and sub-register fees, charges applied to the underlying funds and FSA fees. Income Units Accumulation Units At end Investment Effect of Income to What you Effect of What you of year to date deductions date might get deductions might get to date back at 6% to date back at 6% 1 1,000 69 0 990 69 990 3 1,000 131 0 1,050 131 1,050 5 1,000 204 0 1,130 204 1,130 10 1,000 449 0 1,340 449 1,340 The last line in the table above shows that over ten years, the effect of the total charges and expenses could amount to 449 for income units and 449 for accumulation units. Putting it another way, this would have the same effect as bringing your investment growth from 6% a year down to 2.97% a year for income units and from 6% a year down to 2.97% a year for accumulation units. For the other Portfolios we have set out below what the figure would be for the reduction in growth from 6% a year having taken account of the charges applicable to the Portfolio. Portfolio Income Units Accumulation Units Aberdeen Multi-Manager Balanced Managed Portfolio 2.95% 2.96% Aberdeen Multi-Manager Cautious Managed Portfolio 3.05% 3.13% Aberdeen Multi-Manager Emerging Markets Portfolio 2.45% 2.45% Aberdeen Multi-Manager Equity Managed Portfolio 2.89% 2.89% Aberdeen Multi-Manager Ethical Portfolio 2.88% 2.88% Aberdeen Multi-Manager International Growth Portfolio 2.90% 2.90% Aberdeen Multi-Manager Multi Asset Distribution Portfolio 3.06% 3.22% Aberdeen Multi-Manager Multi Asset Growth Portfolio 2.89% 2.89% Aberdeen Multi-Manager Sterling Bond Portfolio 3.06% 3.20% Aberdeen Multi-Manager UK Growth Portfolio 2.81% 2.82% Aberdeen Multi-Manager UK Income Portfolio 3.02% 3.13% Aberdeen Multi Manager Portfolio Fund, March 2010 13
Further information Unit trust investors ISA investors Information about your investment You will receive a unit trust contract note/isa acknowledgement letter giving details of the investment into your chosen Portfolio(s). You will then receive a Short Report every six months giving details of the Portfolio(s) you have invested in. Certificates We do not issue certificates. Information on the value of your investment You will receive a six monthly statement as at 5 April and 5 October telling you the value of your investment. The prices and yields of the Portfolio(s) are listed on our website at www.aberdeen-asset.co.uk. Dividend income The Portfolios will distribute any income twice yearly on 30 June and 31 December, except for the Multi Asset Distribution Portfolio which distributes income quarterly on 30 March, 30 June, 30 September and 31 December. Valuations Valuations for the Aberdeen Multi-Manager Portfolio Funds are carried out both on an offer price basis, from which the price of any units created by the Trustee will be derived and a bid price basis, from which the price of any units cancelled by the Trustee will be derived. If you have chosen Accumulation units, any income will accrue in the Portfolio(s) and will be reflected in the price of your units. If you have chosen Income units any income generated will be automatically credited to your bank/building society account. Applications may be made by post or over the telephone. If you wish to take out a regular savings plan please complete and return the application form and Direct Debit Form, together with a cheque for the first month s contribution. If you have chosen Accumulation units, any income and tax recovered will accrue in the Portfolio(s) and will be reflected in the price of your units. If you have chosen Income units any income and tax recovered will be automatically credited to your bank/building society account. You may at any time change your income instructions by writing to us or faxing us. Applications must be made in writing, using the application form at the back of this brochure, and must be accompanied by payment in full. If you wish to take out a regular savings plan please complete and return the application form and Direct Debit Form, together with a cheque for the first month s contribution. 14 Aberdeen Multi Manager Portfolio Fund, March 2010
All investors The Portfolio(s) are valued at 12 midday each business day (valuation point). When you invest the price you pay will be the buying price to be calculated at the next valuation point, i.e. if your application is accepted after 12 midday, the price you buy units at will be the price calculated on the following business day at 12 midday. If you want to sell all or part of your investment, we will sell units at the selling price to be calculated at the next valuation point after receiving your instructions to sell all or part of your investment. Instructions to sell a unit trust holding may be given in writing to us at the address below or by telephoning our dealers on 0800 833 580. You may also fax us on 0870 888 3036. Instructions to sell an ISA holding must be given to us in writing at; Aberdeen Unit Trust Managers Limited, Freepost RLTZ-CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. You may also fax us on 0870 888 3036. Form of renunciation When selling units, we reserve the right not to release the realisation proceeds until four business days after receipt of a duly completed Form of Renunciation. An instruction to sell may be accepted by telephone or fax, but will require written confirmation or completion of a Form of Renunciation signed by all holders, provided that: The instruction is given by the unitholder or servicing agent on the account; For an ISA investment, the proceeds do not exceed 9,400 per unitholder per Valuation Point; The cheque in settlement is made payable to the unitholder and issued to the registered address; The registered address has not been amended within the last 30 days; Client/Agent verification is completed successfully. Other dealing information Money laundering Applications will be subject to the United Kingdom s verification of identity requirements, which are contained in the Criminal Justice Act 1993, the Money Laundering Regulations 2007, the Proceeds of Crime Act 2002, and the Joint Money Laundering Steering Group Guidance Notes for the Financial Sector (jointly the Regulations ). To comply with the Regulations, we may need to request additional evidence of identity from you. We may use a credit reference agency who will record that an enquiry has been made. We reserve the right to refrain from investing your money and to withhold any repayment of capital until adequate evidence of identity under the Regulations has been provided. The Trustee The Trustee is: The Royal Bank of Scotland plc, whose head office is 36 St Andrew Square, Edinburgh EH2 2YB. The Registrar The Registrar is International Financial Data Services (UK) Limited, whose head office is IFDS House, St Nicholas Lane, Basildon, Essex SS16 5FS. Aberdeen Multi Manager Portfolio Fund, March 2010 15
Complaints and queries Please write to us with any complaints and queries or for any other information about the funds at: Complaints Department, Aberdeen Unit Trust Managers Ltd, 10 Queen s Terrace, Aberdeen, AB10 1YG. A copy of our complaints procedure is available free of charge from the above address upon request. If you feel that we have failed to deal with any complaint properly, you may contact the Financial Ombudsman Service at South Quay Plaza, 183 Marsh Wall, London E14 9SR. In the event of our default you may be entitled to compensation under the Investors Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Most types of investment business are covered for 100% of 50,000. A statement summarising the Scheme is available on request. Selling your investments If you sell your investment the proceeds of the sale will be released within five business days following receipt of correctly completed renunciation. Investing in a Aberdeen Multi-Manager Portfolio Prior to you investing we are required under the regulations of the FSA to offer you a copy of the Portfolio s Prospectus and the latest annual Report and Accounts and/ or Short Report. If you wish to receive copies of these documents, please telephone 0845 300 2890. They are available free of charge. Client money Where, under the FSA Regulations, we are obliged to hold any money on your behalf, we will do so in an account on which no interest will be paid. Allocated but unclaimed client money If a distribution remains unclaimed for a period of six years after it has become due, it will be forfeited and will return to the relevant fund in accordance with the FSA Rules. Yield The gross yield is the expected annual income before tax but after any expenses have been deducted. The net yield is the expected annual income after basic rate tax and expenses have been deducted. Both yields are expressed as a percentage of the buying price. Transfers You may transfer your ISA at any time to another ISA manager by writing to us. We will make the transfer upon receipt of satisfactory written evidence that the ISA manager to whom it is to be transferred is approved in line with the ISA Regulations. Aberdeen Unit Trust Managers Limited does not make a charge for this. 16 Aberdeen Multi Manager Portfolio Fund, March 2010
Switching funds Unit trust investors ISA investors Tax liabilities You can sell some or all of your units, or switch the proceeds from one Portfolio to another. We will accept instructions by telephone, fax or in writing. Switches will be processed through your servicing Financial Adviser, if relevant, unless otherwise stated. For switches which are effected through a Financial Adviser, a charge of up to 3% may be levied to cover the amount of commission paid to your Financial Adviser. The minimum investment limits will apply to both new and existing holdings should you wish to switch part of your investment only into a new Portfolio. Requests to switch between Portfolios should be made either by telephone/fax or in writing to the Manager, Aberdeen Unit Trust Managers Limited, Freepost RLTZ-CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. Telephone 0800 833 580 Fax 0870 888 3036. When switching to a different Portfolio, the sale of units will be treated as a disposal for capital gains tax purposes. Requests to switch between income and accumulation unit types should be made by telephone, fax or in writing to the Manager. On switches to a different unit type there is currently no charge, and this is not treated as a disposal for capital gains tax purposes. Requests to switch between Portfolios should be made either by telephone/fax in writing to the Manager, Aberdeen Unit Trust Managers Limited, Freepost RLTZ- CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. Telephone 0800 833 580. Fax 0870 888 3036. When switching to a different Portfolio the sale of units will not be treated as a disposal for capital gains tax purposes. Your ISA is exempt from capital gains tax. We will sell the units from one Portfolio and reinvest the proceeds into the other Portfolio(s). Where applicable a discount may be given and this will be shown on your transaction confirmation as a discount to the initial charge. Stamp duty reserve tax The stamp duty reserve tax ( SDRT ) regime for unit trusts was implemented on 6 February 2000 and replaced the stamp duty regime that had previously prevailed. Aberdeen Multi Manager Portfolio Fund, March 2010 17
Unit trust investors Each Portfolio is liable to pay SDRT at the rate of 0.5% of the value of units in a Portfolio that are surrendered to the Manager and certain other transfers of units in the unit trust. The amount of SDRT for which the Portfolio is liable may be reduced depending on the number of units issued and units surrendered in the week the surrender occurs and in the following week. It can also be reduced to the extent that the Portfolio holds units in funds invested in assets such as foreign securities, UK gilts or UK bonds during the two week period. This will eliminate the liability where a Portfolio is invested entirely in funds holding exempt investments. The Manager has decided that any SDRT payable will usually be paid out of each of the Portfolios and will not be charged to investors purchasing or surrendering units, or switching between Funds. Where a large deal (exceeding 15,000) takes place a charge in respect of SDRT may be made should the Manager feel that not to do so would impact materially on the performance of the Portfolio. The Manager considers that paying SDRT out of a Portfolio will not generally have a significant effect on its performance. Most transfers of units from one unitholder to another will be exempt from SDRT. Unitholders transferring units should complete a stock transfer form in the normal way including any appropriate certificate of the type required for exemption from stamp duty. Where there is no appropriate certificate, evidence of an exemption from SDRT should be submitted with the transfer. In this case, the Manager reserves the right to refuse to register a transfer of units unless all documentation required to provide evidence of exemption from SDRT has been received. In other cases, the Manager intends to recover the cost of SDRT by way of a separate charge to the unitholder at the time of transfer as a provision against SDRT liability. The Manager will advise the purchaser of the amount of the SDRT provision, which amount must be paid before the transfer of units is registered. If SDRT is payable, you will be required to pay any charge before your transfer is registered. The Registrar will, upon receipt of your transfer request, calculate the amount of any SDRT liability and advise you in writing. You should then send a cheque in settlement of the liability by return to the Registrar in order that your transfer may be processed. Income The Aberdeen Multi-Manager Sterling Bond Portfolio will pay interest distributions net of income tax at 20%. For the other Aberdeen Multi-Manager Portfolios, UK dividend income will be paid net of tax but will carry a tax credit of 10% of the gross dividend. There will be no further UK income tax to pay if you are a starting or basic rate taxpayer. If you are a higher rate taxpayer you will be required to pay additional tax on the income received. Non taxpayers will be able to reclaim the income tax deducted from the interest distributions. Capital gains You may be liable for capital gains tax when you sell all or some of your units if the gain and other gains in the relevant tax year exceed the annual exemption. This will include switching where units are sold and the proceeds invested in a different Portfolio. Prevailing tax levels and relief are liable to change and their value will depend on your individual circumstances. If you are unclear as to your tax position you should seek professional advice, or contact your local tax office. 18 Aberdeen Multi Manager Portfolio Fund, March 2010
Data Protection The personal data you provide will be held by Aberdeen Unit Trust Managers Limited. Information may be provided to other carefully selected organisations including companies within the Aberdeen Group to enable us to provide the product(s) for which you apply, for the prevention of money laundering or for tracking or analysing the performance of the business of Aberdeen Unit Trust Managers Limited or any associated company. The use of your personal data is covered by the registration of Aberdeen Unit Trust Managers Limited under the Data Protection Act 1998 ( the Act ). Under the terms of the Act you have the right, upon payment of the appropriate fee, to obtain a copy of personal data relating to you. Conflict of interest We operate under a conflicts of interest policy designed to identify and manage any conflicts inherent in our business and our relationship with our investors. A summary of our conflicts of interest policy, explaining the scenarios where conflicts of interest may arise and how we will deal with these, is available on request. Telephone recordings For your own protection, telephone conversations may be recorded. Other information We are required to offer you copies of the latest annual Report and Accounts and/or Short Report. The Portfolio Prospectus and any other information on the Company and its Funds are also available from Aberdeen Unit Trust Managers Limited free of charge. Our address and telephone number is Freepost RLTZ-CKGZ-ESTA, PO Box 9029, Chelmsford CM99 2WJ. Telephone 0845 300 2890. Instructions for direct and ISA investment may be given via fax, except for a new application which must be made by postal application or over the telephone. As a fax is not a secure method of communication, you agree to indemnify Aberdeen Unit Trust Managers Limited against all costs, losses, claims or expenses which may be incurred by, or made against Aberdeen Unit Trust Managers Limited due to a falsified, duplicated or illegible fax. For an ISA application taken out via telephone, Aberdeen will send you a Declaration Form confirming the information you have provided. This Declaration Form does not have to be signed by you or returned to Aberdeen. However, please inform Aberdeen of any discrepancies within 30 days. Please note Aberdeen Unit Trust Managers Limited will not enter into email correspondence regarding any investment or proposed investment with us. Aberdeen Unit Trust Managers Limited is authorised and regulated by the Financial Services Authority in the United Kingdom and sells only its own open ended investment company, unit trust and ISA products. The Simplified Prospectus document is subject to change from time to time. You should check the date below to make sure you have an up to date copy. If it is over 12 months old, please call Aberdeen Unit Trust Managers Limited for a new version. March 2010 Aberdeen Multi Manager Portfolio Fund, March 2010 19