Aviva InvestorsA strong range spanning our diverse UK equity capability

ContentsThe strength to make a difference 1

Why go into stocks and shares? 2

In the current market you need a distinctive approach 3

Aviva Investors UK Equity team 4

How to invest 5

Our range offers a striking outlook 7

Absolute return investing 8

Funds which aim for growth 9

Funds which aim for growth 10

Funds which aim for income and growth 11

Funds which aim for income and growth 12

Risks – important information 13

Making your investment 15

Equity markets have delivered strong gains since their lows of March 2009. Ongoing debt problems across peripheral Europe continues to threaten the economic recovery. However, this has been balanced by a strong

recovery in corporate profitability and a superior growth outlook across many Asian and Emerging markets. In the UK, economic growth remains relatively subdued whilst the consumer faces a multitude of headwinds with the government earmarking on some tough austerity measures in order to tackle the nations’ debt. With equity markets having rallied strongly since the lows of March 2009, many investors may question the extent of further equity market gains. Particularly as the outlook for the UK economy remains finely balanced against a background of ongoing deleveraging and the government’s widespread austerity measures. However in aggregate equity valuations do not look expensive and, combined with an attractive dividend yield, offer a compelling longer-term alternative to less riskier assets, such as government bonds and cash.

Looking across the market we continue to find a number of attractive investment opportunities across a broad range of stocks and sectors. It is worth noting that the UK equity market is far less dependent on the domestic economy to drive earnings than it once was, with many companies fortunes tied to some of the stronger growing

emerging economies. This combined with the potential for companies to enhance earnings through restructuring, cost cutting and mergers and acquisitions, as well as being tied to the recovering fortunes of the UK economy, throw up many attractive ideas for active stock pickers.

The Aviva Investors UK Equity Team offers a diverse range of investment solutions ranging from UK equity income to UK absolute return funds. The team comprises 11 investment professionals who leverage a shared philosophy and research process to generate a broad range of investment ideas. Individual managers are given freedom to create true best ideas portfolios whilst adhering to fund-specific guidelines and sensible diversification of investment risks. The team is backed by Aviva Investors’ wider resources, and is able to leverage the expertise of specialist risk management, derivative and corporate governance functions.

David Lis Head of UK Equities

As at May 2011

Powerful resources that stand the test of time

Aviva Investors is the global asset management business of Aviva, providing investment solutions to meet your needs.

1 Aviva Investors

A global name you can trust

Aviva currently operates in 28 countries across the world, providing investments, savings and insurance to around 53 million customers and has £379 billion of funds under management. Aviva’s aim is to deliver prosperity and peace of mind to its customers.*

Aviva Investors is one of the UK’s leading providers of investment solutions and a significant force in global asset management, offering customers the benefits that come from the experience and expertise of managing assets worldwide across virtually every investment class. Aviva Investors has more than 1,390 employees, including some 449 investment professionals in 22 locations around the world. Our focus and commitment continue to be on understanding your needs in this rapidly changing market, and providing investment solutions to meet those needs – both now and in the future.†

Why Aviva Investors for UK equity?

With more than £22.1 billion of assets under management in UK equities alone,** Aviva Investors has a significant presence in the UK equities market, with a highly talented fund management and research team. We offer a variety of equity products that embrace a spectrum of investment approaches and styles, all of which are characterised by our high-conviction mentality. Our scale gives us an advantage in terms of our access to senior management of the companies we invest in and our ability to positively support their boards by encouraging their strategic development. The result is a broad range of products which aim to deliver strong and consistent returns through active portfolio management. Investing in equities can provide the potential for higher returns over the long term, but such returns will be subject to greater rises and falls than investing in lower-risk assets. Investors may not get back the original amount invested.

**Data as at 30 December 2010.

The strength to make a difference

* Source: Aviva as at 31 December 2009.† Data as at 31 December 2010.

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Why go into stocks and shares?

To many people, investing in stocks and shares seems a risky option, and a bank or building society account seems a safer bet. Although these provide a safer option, investing in equities can help you achieve your long-term investment goals.

  Interest rates on savings accounts fluctuate and could fall below inflation

  Equities can benefit from two sources of growth – dividend income and the potential increase in individual share prices

  Equities potentially give better returns than cash deposits over the longer term, so helping to preserve values in real terms

  Equities form part of a well-diversified portfolio. Historically they have proven to be one of the best ways to grow capital and protect it from inflation over the long term.

What about volatility?Stock market investments can be expected to fluctuate in value, as recent market conditions have shown. Over the long term however, such conditions can potentially give fund managers an opportunity to find undervalued stocks, allowing clients to benefit from greater growth potential than cash deposits. As equities carry a higher level of risk than cash, investors can expect greater levels of volatility with such investments.

Equity investment over the long term

When you invest in UK equities you own a share in a range of UK companies. While the value of equities go up and down, long-term investors in them have historically seen better returns than those who put their money into a savings account. And with UK interest rates near to all-time lows, potential returns from savings accounts have been much reduced.

Nothing can ever be 100 per cent guaranteed, but over the long term, UK equity-based investments have performed well. Unlike a bank or building society savings account where initial capital is safe, the value of an equities investment can go down as well as up and is not guaranteed.

Our investment solutions offer the potential for better returns than deposit accounts, but with less risk than investing directly in the stock market. They also provide more certainty about what you might get back than if you invest directly in the stock market.

While UK deposit accounts are relatively safe, your investment in a fund is at risk and you could get back significantly less than you invested. Also, interest is paid on money in a deposit account and access may be easier.

We all know we should be saving or investing for our future. Whether it’s for retirement, school fees or just for a rainy day, we need to be putting some money away.

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In the current market you need a distinctive approach

Investing to win

Our guiding principle is to encourage investing to win, rather than investing not to lose.

We believe in conviction; instead of striving to match benchmarks such as the FTSE® All-Share Index, we back the expert and considered judgement of our fund managers. Our managers have absolute conviction in their stock choices, which enables them to take large holdings in the companies they judge to have outstanding potential. Each manager has individual discretion and accountability for their portfolio of investments, yet all are underpinned by our common ethos.

We don’t follow the herd

We don’t invest in something just because everyone else is. For us, contrarian investing is about the skill of a fund manager to identify and capitalise upon opportunities where the real value of an investment differs significantly from its perceived value.

We believe we can consistently deliver out-performance by identifying these opportunities and exploiting them. We rigorously test our views and encourage debate within the UK Equity Team around the real value attributed to a company relative to consensus expectations.

The UK Equity Team believe in conviction, in backing the judgement of our fund managers. Having the commitment to back our beliefs, we can use the findings of our investment research, analysis and expertise to the fullest effect.

“FTSE®” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE® International Limited (“FTSE®”) under Licence. FTSE® does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright in the index values and constituent list vests in FTSE®.

UK equity funds 4

Aviva Investors UK Equity Team

Moving ahead with the right approach

At Aviva Investors we pride ourselves on bringing together talented teams of fund managers that rank up there with the best in the world, and our UK Equity Team is no exception.

We are proud to have one of the most talented and experienced UK equity teams in the industry today. Our UK team is headed by David Lis and comprises 12 highly talented and experienced investment professionals, boasting an average of 14 years, experience in the investment industry. This gives us significant strength and depth, allowing the team to leverage off the insight and perspectives of a broad range of investment professionals. It also means we offer our clients a wide range of investment products designed to deliver outstanding performance over the longer term. We give our fund managers total control over their portfolios so they can back their insight with conviction.

Our team’s expertise and experience is complemented by being part of one of the UK’s largest fund management organisations. The strength of our presence in the UK equity market gives our UK Equity Team regular access to senior management of some of the FTSE® 100’s highest profile companies. Moreover, the team benefits from the significant internal resources at their disposal. For instance, our specialist Portfolio Risk Management Team works closely with fund managers to ensure any risks in their portfolios are aligned with their latest market views and convictions around individual investment opportunities.

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How to invest

ICVCs

Investing in an ICVC (Investment Company with Variable Capital) potentially allows you, if the ICVC contains a number of sub funds, to put your money in a range of funds. ICVCs are often also called OEICs (Open-Ended Investment Companies).

When investing in an ICVC or OEIC, your money is combined with that of other investors. This pool of money is invested by an experienced fund manager.

Investing in an ICVC is one of the easiest ways for you to access the stock market, as the fund manager invests the pooled money in different ways depending on investment objectives. This means you own shares in the ICVC, not the underlying companies. ICVCs offer the potential for growth or income, depending on the funds you choose to invest in.

Aviva Investors’ range of UK equity funds can be accessed through Aviva Investors ICVCs. The minimum initial lump sum investment is £1,000. The minimum additional lump sum is £250 or £50 a month via direct debit.

For details on how to obtain more information, please refer to the ‘Any questions?’ section on the inside back cover.

ISAs

ISAs (Individual Saving Accounts) are a great way to invest efficiently. Many investors looking to make the most of their money while minimising their tax liability consider them a ‘must have’. There are two types of ISAs: Cash ISAs and Stocks & Shares ISAs.

The annual ISA investment allowance for the 2011/2012 tax year is £10,680. Up to £5,340 of that allowance can be saved in a Cash ISA with one provider. The remainder of the £10,680 can be invested in a Stocks & Shares ISA with either the same or another provider. Alternatively, the full £10,680 can be invested in a Stocks & Shares ISA with one provider.

Governments may change the tax rules applicable to your funds, and may withdraw or amend tax advantages available through ISA investment.

The Aviva Investors, UK equity funds are available through a range of investment products, some of which are explained in the following paragraphs.

For tax yearAviva Investors Investment ISA 2011/12Minimum initial investment £500

Minimum additional lump sum £250

Minimum regular monthly payment £50

Maximum, annual investment £10,680

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If you use your full ISA allowance and then choose to withdraw some money, you can’t add it back during the same tax year. The Aviva Investors UK equity funds are available within the Aviva Investors Investment ISA, which is a Stocks & Shares ISA.

To invest in the Aviva Investors Investment ISA:

  You can make a minimum initial investment of £500. After this the minimum single payment is £250 up to your ISA limit

  You can make regular monthly contributions of £50 minimum or more via direct debit, up to your ISA limit

  You can transfer any Stocks & Shares ISA you may have with an existing provider of £500 value or more to the Aviva Investors Investment ISA.

Investment term

Although we recommend that you invest for the next five years or more, there isn’t a fixed term and you can cash in your investment at any time. However, you may get back less than you originally invested.

Unlike a bank or building society savings account, where initial capital is safe, the value of an investment in equities can go down as well as up and is not guaranteed. You may not get back what you put in.

Full details of these products and our funds can be found in our Simplified Prospectuses which are available from us free of charge. Simply call us on 0800 051 2003* or visit our website www.aviainvestors.co.uk

* Calls are free from a BT landline. Costs may vary from mobiles and other networks.

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Aviva Investors offers a wide range of UK equity

funds which benefit from our highly focused

approach. We provide a range of investment

options designed to meet the needs of our clients.

The following pages give more detail on our UK equity fund range.

Absolute return investing

Absolute return funds may be suitable for people who are looking for investments that aim to provide an absolute return, that provides a positive return (above zero) regardless of prevailing market conditions.

Investing for growth

Growth funds may be a good choice if you’re looking to build up a nest egg over the long term and less worried about earning a regular income.

Investing for income and growth

There is potential to increase your income at the same time as growing a lump sum.

Our range offers a striking outlook

For full details on our funds’ investment policies and objectives please refer to the Simplified Prospectuses. You can request a copy by calling us on 0800 051 2003. Alternatively an electronic copy can be downloaded from our website www.avivainvestors.co.uk.

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Fund manager – Julius Lipner Julius joined the investment industry in 1999. He joined Aviva Investors in January 2009. Previously, he worked at Magnetar Capital, a $11-billion multi-strategy hedge fund, where he ran a long-short equity mandate. Prior to this he was a fund

manager at Mercury Asset Management (now Blackrock).

Julius holds a first class BA (Hons) degree in Economics and an MPhil from Oxford. He is a member of the Institute of Investment Management and Research (IIMR) and is a Chartered Financial Analyst.

Aviva Investors UK Absolute Return Fund

Investment objective To deliver a positive absolute return regardless of the prevailing stockmarket environment, by taking both long and synthetic short positions.

Is this Fund for me? The Fund may be suitable for people who are looking for an investment which aims to provide a positive return (above zero) regardless of prevailing market conditions, are looking for investment growth and are considering investing medium to long-term.

The Aviva Investors UK Absolute Return Fund focuses on identifying how companies’ earnings will rise or fall at different times during economic cycles. The fund manager takes “long” and “short” positions to profit from these changes. The portfolio uses a fundamental stock picking approach and aims to deliver consistent positive returns in all market environments.

Absolute Return Investing

Long and short positions explained

Most investment decisions involve buying an asset in the expectation that its price will rise. This kind of transaction is calling “going long”, and is the way that most fund managers invested until recent times. But it is also possible to make a profit if you expect the price of an asset to fall. This is called going short or short selling. Short positions are made using derivatives.

It involves selling an asset which you do not own (say you borrow it), waiting for the price of the asset to decline and then buying back the asset at a lower price. Your gain or loss will be the difference between the higher price you sold it at and the lower price you bought it back for.

The Aviva Investors UK Absolute Returns Fund aims to deliver absolute returns (more than zero) each year, regardless of the prevailing stock market environment. However, absolute return performance is not guaranteed and over the short term it may experience periods of negative return and consequently may not achieve its objective.

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Aviva Investors UK Focus Fund

Investment objectiveLong-term capital appreciation through selective investment.

The fund manager uses a disciplined risk aware approach to construct the fund portfolio. The fund aims to provide capital appreciation in the long term through investment principally in UK equities based on price and above average earnings growth.

Is this Fund right for me?The Fund may be suitable for people who want to aim for investment growth. Investors should be able to invest for the medium to long-term.

Fund Manager – Trevor Green Trevor joined Aviva Investors in May 2011. He previously worked at Henderson Global Investors where he was most recently co-manager of the Henderson Managed Distribution Fund. Prior to this he worked for New Star Asset Management, RCM (UK) Ltd,

Credit Suisse Asset Management and Capel Cure Myers. Trevor has a BA (Hons) degree in Business Studies from Aberdeen University.

Aviva Investors UK Growth Fund

Investment objectiveLong-term capital appreciation.

The Fund uses a fundamental stock-picking approach to seek out opportunities across the market which offer solid long-term organic growth potential.

Is this Fund right for me?This Fund may be suitable for investors wishing to grow the value of their money by investing in the UK stock market. Investors should be able to invest for the medium to long-term.

Fund Managers – Robin West and Toby BelsonRobin joined Aviva Investors in 2004 as a fund manager in the UK Equity Team. He joined from Oriel Securities where he worked as a small companies analyst. He previously spent eight years as a smaller companies fund manager at Invesco and five years at KPMG

working on audit and special assignments. Robin has a MA in Natural Sciences from Cambridge University. He is an Associate of the Institute of Chartered Accountants (ACA), and a Chartered Financial Analyst (CFA).

Toby joined Aviva Investors in 2004. Previously, Toby worked at NPI Asset Management and Henderson Global Investors where he worked as an analyst on the award-winning NPI Global Care Managed Pension fund. Before entering the City, Toby spent several years working at

Nortel Telecom and BT. Toby holds a BSc in Geography from the University of Bristol and an MSc in Environment and Business from Imperial College, London.

Funds which aim for growth

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Aviva Investors UK Smaller Companies Fund

Investment objective Long-term capital appreciation.

This Fund invests in smaller companies shares which are judged to offer attractive returns over the longer term. The team places great emphasis on understanding business models and engaging with management to find the success stories of tomorrow.

Is this Fund right for me?The Fund may be suitable for people who want to aim for investment growth by investing in smaller company shares. Investors should be able to invest for the medium to long-term.

Fund Managers – Toby Belson and Robin WestToby joined Aviva Investors in 2004. Previously, Toby worked at NPI Asset Management and Henderson Global Investors where he worked as an analyst on the award-winning NPI Global Care Managed Pension Fund. Before entering the City, Toby spent several years working at

Nortel Telecom and BT. Toby holds a BSc in Geography from the University of Bristol and an MSc in Environment and Business from Imperial College, London.

Robin joined Aviva Investors in 2004 as a fund manager in the UK Equity Team. He joined from Oriel Securities where he worked as a small companies analyst. He previously spent eight years as a smaller companies fund manager at Invesco and five years at KPMG

working on audit and special assignments. Robin has a MA in Natural Sciences from Cambridge University. He is an Associate of the Institute of Chartered Accountants (ACA), and a Chartered Financial Analyst (CFA).

Funds which aim for growth

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Aviva Investors UK Equity Income Fund

Investment objective A dividend yield above that obtainable on the FTSE® All-Share Index.

The Aviva Investors UK Equity Income Fund is constructed with a clear focus on companies with attractive capital return potential and sustainable above market yields. Ideas are generated through fundamental research and the end result is a concentrated high conviction (40-75 stocks) portfolio with a yield target of 120% of the FTSE® All – Share Index.

Is this Fund right for me?This Fund may be suitable for investors who want a mix of income and growth from their investment. Investors should be able to invest for the medium to long-term.

Fund Manager – Chris Murphy Chris took over as the manager of these funds in April 2009. He joined Aviva Investors in June 2006. Chris previously worked as a fund manager at Framlington Investment Management, managing income and then growth

portfolios, concentrating on retail funds. Prior to this, he was a UK equity analyst at James Capel and UK equity

analyst at Lehman Brothers. Chris holds a BSc (Honours) in Physics from University College, Cardiff and is an associate member of the Institute of Investment Management and Research (IIMR).

Chris Murphy runs a well-diversified portfolio offering an attractive risk/return profile. He aims to provide capital appreciation and an income level above that of the average UK stock market investment (as measured by the FTSE® All-Share Index) by investing in high yielding UK shares.

Aviva Investors UK Equity Fund

Investment objective

Long-term capital appreciation and income.

Chris Murphy hunts out under-valued companies to deliver a high conviction portfolio. There is no single investment approach which is applied, although Chris believes that most value can be added at the smaller end of the market which is often under analysed.

Is this Fund right for me?The Fund may be suitable for people who want to aim for growth and income by investing in UK equities. Investors should be able to invest for the medium to long-term.

Funds which aim for income and growth

“FTSE®” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE® International Limited (“FTSE®”) under Licence. FTSE® does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright in the index values and constituent list vests in FTSE®.

UK equity funds 12

Aviva Investors UK Income & Growth Fund

Investment objective Long-term capital appreciation and income.

The Fund aims to provide long-term appreciation and income through investing in a diversified range of shares in the UK equity market. Graham believes in concentrated active management and his investment style can be best described as pragmatic and long-term. He invests across market capitalisations but consistently places emphasis on opportunities across three broad areas; long-term quality franchises, points of change and absolute value. The result is a concentrated portfolio with relatively low turnover.

Is this Fund right for me?This Fund may be suitable for investors who are looking for a mix of income and growth from their investment. Investors should be able to invest for the medium to long-term.

Fund Manager – Graham Elliott-ShircoreGraham joined Aviva Investors in 2005 as a graduate before joining the UK Equity team on a permanent basis. In addition to managing the Aviva Investors UK Income & Growth Fund, Graham manages segregated institutional mandates as well as having

analyst responsibility for the industrials sector. Graham holds a BA (Hons.) in Business Administration from the University of Bath and is also a Chartered Financial Analyst.

Funds which aim for income and growth

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Risks – important information

  The value of an investment in a fund and any income from it can go down as well as up. You may not get back the original amount invested.

  Funds that invest in equities can provide higher returns over the long term, but such returns will be subject to greater rises and falls than investing in lower-risk assets.

  Funds that exhibit concentrated portfolios can be subject to greater rises and falls than a more diversified portfolio.

Where funds invest in smaller companies   Investment in smaller companies may be less liquid than in larger companies and price swings may be greater than in larger companies. Therefore, they are generally a higher risk investment than larger companies.

Aviva Investors UK Absolute Return Fund only   Derivatives and forward transactions may be used in this Fund to increase performance as well as offset risk (hedge). Using derivatives to increase performance may lead to a greater swing in the price of shares in the Fund. We use disciplined portfolio and risk management techniques to manage these risks.

  The Aviva Investors UK Absolute Returns Fund aims to deliver absolute returns (more than zero) each year, regardless of the prevailing stock market environment. However, absolute return performance is not guaranteed and over the short term it may experience periods of negative return and consequently may not achieve its objective.

  As the Fund aims to take a broadly neutral stance towards market direction (beta), fund performance will generally not be exposed to the full extent of any equity market falls or gain.

Before you invest, you should consider and understand the risks of investing in the funds. Comprehensive information on the funds and the risks associated with investing can be found in the Full Prospectus or the Simplified Prospectus.

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The opinions expressed are based on Aviva Investors internal forecasts and should not be relied upon as indicating any guarantee of return from an investment in any funds.

You can request copies by calling 0800 051 2003*. Simplified Prospectuses can also be downloaded from our website www.avivainvestors.co.uk

We always recommend that you speak to your financial adviser before making any investment decisions. They can take into account your personal circumstances when discussing financial objectives and how best to achieve them.

Aviva Investors can only provide information about our own investment funds. Please note that in providing this information we are not making an investment recommendation, and no advice has been provided. If you are in any doubt as to whether these investment funds are suitable for you and you wish to seek financial advice, you should contact your financial adviser. If you do not have a financial adviser, you can call ‘The Personal Finance Society’ on 020 8530 0852. Alternatively, visit them at www.thepfs.org. You can also visit www.unbiased.co.uk

* Telephone calls may be recorded for training and monitoring purposes. calls are free from a BT landline. Call charges may vary from mobiles and other networks.

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Making your investment

To invest simply follow these steps:

1. Read the Simplified Prospectus and ISA Terms & Conditions for ISA Investments for the fund (if you do not already have one, you’ll find details on how to order one on the next page).

2. If you would like to discuss your individual requirements, contact your financial adviser.

3. Decide if you want to make regular payments or invest a lump sum.

4. Select how you want to invest – through an ISA or directly into the fund, through an ICVC (see pages 5 and 6 for more details about ISAs and ICVCs).

5. Fill in the appropriate application form.

6. Send it, together with your payment, to: Aviva Investors UK Funds Ltd, PO Box 10410, Chelmsford, CM99 2AY.

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Any questions?

For more information on the Aviva Investors fund range call us today on 0800 051 2003*

*Telephone calls may be recorded for training and monitoring purposes. Calls are free from a BT landline. Call charges may vary from mobiles and other networks.

Visit www.avivainvestors.co.uk

Email us at helpdesk@aviva.co.uk

We want to make sure you fi nd our literature clear and easy to follow, so we’d welcome your feedback. If you think we could improve this information, please email your comments to clarity@avivainvestors.com

Contact us at Aviva Investors, PO Box 10410, Chelmsford, CM99 2AY.

Aviva Investors is a business name of Aviva Investors UK Funds Limited, the ISA Manager and Aviva Investors UK Fund Services Limited, the Authorised Fund Manager. Registered in England Nos.2503054 and 1973412 respectively. Authorised and regulated by the Financial Services Authority. FSA Registered Nos. 147088 and 119310 respectively. Registered addresses: No.1 Poultry, London EC2R 8EJ. Both are Aviva companies. www.avivainvestors.co.uk

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