Changes to the underlying fund of P73 Aviva Investors UK Property

06 May 2016

We have been notified by Aviva Investors UK Fund Services Limited (the “Company”) of changes to the underlying fund into which P73 Aviva Investors UK Property invests.  The Company has informed us of the decision to convert the underlying fund into a Property Authorised Investment Fund (“PAIF”) structure.

As life companies are restricted on the amount that can be invested directly into a PAIF structure, Aviva Investors have created a feeder fund which will enable direct exposure to the PAIF – the Aviva Investors UK Property Feeder Acc Fund.

The changes are summarised below:

  • Fund structure change of the underlying fund 15 July 2016
  • Non Dealing/Suspension 14 July 2016 to 18 July 2016 to facilitate the fund change
  • Name Change, effective 15 July 2016
  • Additional risk disclosures, effective 15 July 2016

To facilitate the change, dealing on both the underlying fund and P73 Aviva Investors UK Property will be temporarily suspended from 14 July to 18 July 2016. Instructions received after the cut off time on Wednesday 13 July 2016 will not transact until the next available dealing date of Monday 18 July 2016.

The underlying fund name is changing and therefore the Friends Provident International fund name will also change with effect from the same date, which is detailed in the table below:

Fund name and code before 15 July 2016 Fund name and code from 15 July 2016
Aviva Investors UK Property Aviva Investors UK Property Feeder

The additional key risk disclosures highlighted by the Company following the restructure are summarised below:

  • Availability of Immoveable Property Investments – Property transactions contemplated by the fund is competitive and involves a high degree of uncertainty.
  • Investments in Unregulated Collective Investment Schemes are permitted.
  • Exchange Traded Derivative Transactions – Suspension of these instruments would make it impossible for the fund to liquidate such positions.
  • Over the Counter Counterparty Derivatives are permitted, and can have limited liquidity together with higher price volatility.
  • Investments in Smaller Companies are permitted and can be less liquid than larger companies.

Full details of all the risks can be found in the underlying fund’s literature.

Further information can be found in the client letter, which has been sent out to policyholders invested in this fund.

Should you have any questions regarding these changes, please contact International Funds & Investments.