Our ref: PLATFORM/BST/A381/4/Sample

15 December 2015

Sample Copy

Dear (Salutation)

Account number: 000000000

Aviva Investors Asia Pacific Property – fund suspension and closure

I am writing to you because you are an investor in the Aviva Investors Asia Pacific Property fund, which has been suspended by the fund manager, Aviva Investors UK Fund Services Limited (“Aviva”), and will be closed.

Why is the fund closing?

The Aviva Investors Asia Pacific Property fund holds eight properties. The two largest investors in the fund have given notice that they wish to withdraw their investments in the fund in full. As this represents over 75% of the current fund value, Aviva will need to sell the majority of the properties in the fund, and they have decided to sell all the assets and close the fund once the sales are complete.

Why was the fund suspended?

In order to ensure the fair and equal treatment of all investors throughout the closure process, Aviva suspended all dealing in the fund on 20 July 2015 so that no further units could be purchased or sold. Please accept my apologies that we didn’t write to you about this sooner, this was due to our ongoing discussions with the fund manager and HMRC.

Suspending dealing enables the properties of the fund to be sold in an orderly manner which will help to maximise the sales values achieved. Furthermore, suspension of dealing ensures that, regardless of the size of their holding in the fund, all investors, including the two largest, will have access to the proceeds of their investments at the same time.

Do I need to take any action?

Aviva is negotiating the sale of the properties but it is difficult for them to forecast how long the process will take. One property has been sold already, but Aviva expects it to take 12 – 24 months for all the properties to be sold and the proceeds of the investments to be paid out.

Aviva will aim to maximise the sale price of the fund’s properties whilst being mindful of the need to return the proceeds of investment as quickly as possible. Having concluded the sale of one of the properties, Aviva has sent us the first of a series of payments. We have allocated the payment to your pension according to your individual holding in the fund, and reduced the number of units you hold by XXX units. The monetary amount these units represent, £XXXX, has been placed in the default fund, BlackRock Cash.

The objectives of the BlackRock Cash fund and the Aviva Investors Asia Pacific Property fund are enclosed for you to compare. The BlackRock Cash fund may not be suitable for your long-term investment needs. Please speak to your financial adviser before making any investment decisions and, if you want to switch away from the BlackRock Cash Fund, please provide us with switch instructions.

As we receive further payments from Aviva, we will add these to your pension, reducing the number of units you hold in the fund, and we will write to tell you what we have done.

Additional information

How will valuations be affected?

It is impossible to know what impact the suspension of the fund and sale of its properties will have on the value of the fund, and your investment could go down or up in value. Aviva will still price the fund each day, and the value of your remaining units will be included in the overall value of your investment.

Will I be able to switch out of the fund or take income withdrawals from it?

As it is not possible to sell units in the fund, you will be unable to switch, or make withdrawals from it. If you are receiving income payments from your investment, these will be unaffected because we will raise the amount by selling units from the other funds you hold.

Will I be able to transfer my uncrystallised account to another provider?

It will depend whether your new provider will be able accept the transfer in multiple instalments. The first instalment will include the monetary value of all units apart from the Aviva fund and the monetary value of the Aviva units will be sent on once all properties have been sold.

Will I be able to transfer my crystallised account to another provider?

You cannot transfer your crystallised pension to another provider until the fund closure is complete as we are unable to split crystallised arrangements.

Will I be able to increase my holding in the fund?

As it is not possible to buy units in the fund, you will be unable to top it up. If you are currently making regular direct debit payments, any part of your direct debit payment that is currently allocated to the fund will be allocated to the BlackRock Cash fund. If you want to switch away from BlackRock Cash or redirect to an alternative fund(s) please provide us with new instructions.

What will happen if I am using the rebalancing option?

If you currently use the rebalancing option the arrangement will have been cancelled and cannot be restarted until the Aviva Investors Asia Pacific Property fund has closed.

Will I have to pay any additional costs for the fund suspension and closure?

There are costs involved in winding up the associated legal structures within the fund and auditors’ and tax advice fees which will be incurred in the closure. These costs will be borne by the fund and Aviva expects the cost to be 0.23% of the fund’s value as at 30 June 2015.

If you have any questions about this letter please contact your financial adviser in the first instance. For any other questions you can call our Customer Contact Centre on freephone 0808 171 2626 or email us at , but please remember we are not authorised to give you any investment advice.

Yours sincerely

Anthony Scammell

Head of Customer Experience

Fund objectives

BlackRock Cash
To achieve a competitive rate of interest for unitholders, consistent with preservation of principal (capital) and liquidity, principally from a portfolio of cash, deposits, and money-market instruments. These types of investments may be issued by both UK and non-UK issuers, but shall be denominated in Sterling. The fund will be actively managed. The fund is not recommended for investors seeking long-term capital growth.
The fund invests in bonds or money market instruments (including deposits with banks or other financial institutions). The yield and/or value of the fund will fluctuate as interest rates change. There is a possibility of default, reducing capital values.
Aviva Investors Asia Pacific Property
To seek income and long term capital appreciation by investing principally in immovable property, with an emphasis on commercial property, and/or property related transferable securities the issuers of which are domiciled in, or have significant operations or interests in the Asia Pacific region and Australasia.
Investments in emerging markets tend to be volatile and are usually considered to carry a greater degree of risk than investments in established markets. This relates to dealing, settlement and custody practices, the possibility of political or economic instability, and developing legal, fiscal and regulatory structures.
The fund invests into a relatively small number of assets, or into individual countries or a specific market sector. Such concentrated portfolios give rise to more risk than where investments are spread across a larger number of assets, countries or market sectors.
The fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the fund may therefore rise and fall as a result of exchange rate fluctuations.
The fund invests in bonds or money market instruments (including deposits with banks or other financial institutions). The yield and/or value of the fund will fluctuate as interest rates change. There is a possibility of default, reducing capital values.
The value of property is generally a matter of a valuer's opinion rather than fact. In addition, property investments may not be readily saleable, which could lead to constraints on your ability to sell or switch from the fund.
Part, or all, of the fund management charge is charged against the capital of the fund, rather than the income, which could reduce the potential for future growth.