Simplified Prospectus


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Simplified Prospectus

  1. 1. The Financial Services Authority (FSA) is the UK’s independent financial services regulator. It requires us, Practical investment Fund Management Company Limited, to give you this important information to help you decide whether this product is right for you. You should read this document carefully so that you understand what you are buying, and keep it safe for future reference. Simplified Prospectus Issued 15 July 2009 1
  2. 2. Contents Contact us 3 About this document 4 Glossary 5 Fund details 8 Risks 9 How much tax will I pay? 11 What costs are associated with my investment? 12 Advice – how much does it cost? 13 How do I invest? 13 About the investment 17 Additional information 18 Fund information summary 21 2
  3. 3. Contact us Please use the details below to ask for literature, buy or sell investments over the telephone or if you wish to complain to us. If you wish to write to us: Consistent Unit Trust Management Company Limited PO Box 10117 Chelmsford Essex CM1 9JB If you wish to ring us: Helpline: 0845 026 4281 9am – 5.30pm Monday to Friday We may record your telephone conversations with us. This gives you additional security, and can help resolve complaints or disputes. By fax: 0845 280 2234 If you wish to contact us electronically: Email: Website: You can use our email address for general correspondence and complaints. You must make any requests to make material changes to your account (such as a change of address) in writing, accompanied by a signature. 3
  4. 4. About this document This Simplified Prospectus gives you key information about the Practical investment Fund (which we refer to as the ‘Fund’). You should read it as well as the Fund Information Summary towards the back of this brochure where you will find specific information on the Fund. Please make sure you are comfortable with the contents before deciding to invest. We would also recommend that you read the Full Prospectus (which gives finer detail and more technical information) and the annual and interim reports (which are regular progress and accounting reports for the Fund). You can get this information free of charge through your financial adviser or by using our contact details on the previous page. We issued this Simplified Prospectus as at 15 July 2009 and we update it at least once a year. We supply the documentation and communications for your investment in English. Investment risk and performance of this Fund can change over time. You can get up-to- date information from our website,, or by calling our Helpline on 0845 026 4281. Please note that you should not interpret anything in this Simplified Prospectus as financial advice. 4
  5. 5. Glossary Collective investment schemes A general term encompassing authorised unit trusts, common investment funds, OEICs and investment trusts. Credit ratings An assessment of a bond’s security, given by an independent ratings company such as Standard & Poor’s. The highest rating is AAA, and the lowest is D. Bonds rated between AAA and BBB – are known as investment grade bonds and are considered more secure. Bonds with a lower rating are considered less secure. Derivatives Derivatives are investments, whose value depends on the changes in an underlying asset or security. The stock is not physically held but there is a contract based on a number of predictions in time or price in the future. Duration A measure of the extent to which the value of a bond will be affected by changes in interest rates expressed as a number of years. As a general rule, the greater the value of duration, the greater the price volatility which results from interest rate movements. Forward transactions These are transactions where the buyer and seller agree on a price now for a delivery of a commodity at a later date. Gilts, gilt edged securities and index linked gilts Gilts is an abbreviated name for fixed interest securities such as gilt edged securities or index linked securities issued by the UK Government. 5
  6. 6. Hedging A transaction involving derivatives, with the aim of reducing a particular financial risk, for example exchange rate risk. Investment grade bonds Bonds issued by a company that has a higher credit rating, and so are considered more secure. Money-market instruments Short-term debt instruments, usually running for a year or less. Examples of these include Treasury bills. These are issued by the Treasury and represent a promise to repay a set sum of money on a specified date in the future. Pay dates Income is paid or accumulated on these dates. Securities An investment instrument such as shares or bonds, issued by a corporation, government or other organisation which offers evidence of debt or equity. Stamp Duty Reserve Tax (SDRT) HM Treasury requires up to 0.5% SDRT to be applied on transactions in units in a fund rather than it being charged to the individual investor. SDRT is only payable on funds that invest in UK shares. It is the current policy to meet the cost of SDRT directly from the Fund’s assets, however, there may be exceptions to this, and the policy could change in the future. Further information can be found in the full Prospectus. Sub-investment grade bonds These tend to be issued by a company that has a lower credit rating and so have a greater possibility of failing to make their repayments. (See also: Credit Rating) 6
  7. 7. Transferable securities These are securities which can be freely traded on a market. UCITS Undertakings for the Collective Investment in Transferable Securities - UCITS funds can be marketed within all countries that are a part of the European Union, provided that the fund and fund managers are registered within the European Union. Unit trust A unit trust is a type of investment product that offers indirect investment in securities and other assets. Your money is pooled with that of other investors who choose to invest in the same fund. Funds will use this money to buy investments, such as stocks and shares, as selected by the Investment Adviser for the fund in line with the objectives of that fund. The value of your units in the fund is directly related to the underlying value of these investments. Because the investments are spread, the risk may be lower than investing in a small number of company shares. XD dates (ex-dividend) The dates by which you have to hold units in a fund in order to be entitled to the next income payment from that fund. Yield A measure of return from interest or dividend income expressed as a percentage of an asset’s price. 7
  8. 8. Fund details The Practical investment Fund is a collective investment scheme (unit trust) and is authorised and regulated by the Financial Services Authority (FSA). It is also established as a ‘UCITS Scheme’ which means it satisfies certain EU requirements and can therefore be marketed within other EU states. The Fund was authorised on 30 September 1964. The base currency of the Fund (the currency in which the Fund is valued and in which units are bought or sold) is pounds sterling. Investment information What are the aims of a unit trust? A unit trust is a fund into which you can invest. It is a way of combining your money with other investors’ money to create a bigger “pool” for investment. We then invest this money and professionally manage it on everyone’s behalf. Different funds have different aims and objectives for their investors. The investment aims for this particular Fund might not suit your own particular aims. We offer different funds to suit different investment aims which you can find out about by contacting us for literature or by speaking to your financial adviser. What are the aims of this Fund? This Fund is designed to provide investors with above average capital growth and increasing income from investment in a wide spread of UK and dollar denominated investment trusts, ordinary shares and other selected investments. The above is a brief summary. You can find the full investment objectives and policy of the Fund in the Fund Information Summary section. We suggest you speak to your financial adviser to decide if this Fund is suitable for you. Your commitment What is the profile of a typical investor? Generally, this Fund would be appropriate for you to consider if you are prepared to risk your money on the stock market and are prepared to invest for at least 5 to 10 years. It would not be suitable for you if you are not prepared to take any risk with your capital or if you are likely to want to cash in your investment within 5 years. 8
  9. 9. Risks What are the general risks associated with this Fund? Any investment in stock market funds involves risk. Some of these risks are general, which means that they apply to all funds. Others are specific, which means that they apply to individual funds. Before you decide to invest, it is important to understand the Fund’s investment objective and the risks involved. Details of risks can also be found in the Full Prospectus: • The value of this Fund and the income from it is not guaranteed and may fall as well as rise. You may get back less than you originally invested. What you get back may depend on: a) Investment performance which is not guaranteed. Past performance is no guarantee of future performance; b) the effect of an initial charge. If you sell your investment after a short period you may not get back what you originally invested, even if the price of your investment has not fallen. • The entire market of a particular asset class or geographical region may fall, having a greater effect on funds heavily invested in that asset class or region. • Governments may change the tax rules which affect you or the funds in which you have invested. • Inflation will reduce what you could buy in the future. • There may be a risk of a loss where the assets of the Fund are held in custody that could result from insolvency, negligence or fraudulent action of the custodian or sub-custodian. 9
  10. 10. What are the specific risks associated with this Fund? (A) Overseas investments The Fund invests in overseas markets or holds currencies other than sterling, which means currency exchange rate movements may cause the value of your investment to fall as well as rise. (B) Credit and fixed interest securities Credit and fixed interest securities are the debts of governments or companies, generally in the form of bonds. These securities are particularly affected by trends in interest rates and inflation. If interest rates go up, the value of the security may fall, and vice versa. Inflation will reduce the real value of the security. However, any changes in value are generally likely to be less than those of investments in shares. The value of these securities will fall if the issuer is unable to repay their debt or have had their credit rating reduced. Generally, the higher the perceived credit risk of the issuer, the higher the rate of interest. High yield bonds with lower credit ratings (also known as sub-investment grade bonds) are potentially more risky (higher credit risk) than investment grade bonds. (C) Investment Trusts • The Fund may invest in investment trusts. These are public limited companies quoted on the London Stock Exchange. The price of their shares depends on supply and demand and is not necessarily the same as the value of the underlying assets per share. It may be higher ‘at a premium’ or lower ‘at a discount to net asset value’. The discount and premium varies continuously and represents an additional measure of risk and reward. Investment trusts can borrow money, which can then be used to make further investments. In a rising market, this can enhance returns to shareholders. However if the market falls, losses will also be multiplied. • Investment trusts may invest in hedge funds, structured products and quoted private equity funds as long as they are allowed by the FSA regulations. These types of investments may carry the risk of derivative investment. (D) Derivatives Derivatives may be used by the Fund to reduce risk (hedge) and to efficiently manage the investment portfolio. Derivative transactions do involve some risk in terms of their price volatility and in the event of counterparties not meeting their obligations. However, we apply risk monitoring controls to ensure that there is no significant increase in the Fund’s risk profile. (E) Charges deducted from capital The Manager receives a periodic charge for managing the Fund. If this charge is taken from the Fund’s capital this will increase the amount of income available for distribution but will constrain capital growth. 10
  11. 11. How much tax will I pay? Your tax rate and whether you are eligible for any tax relief depends on your own personal circumstances and is likely to vary over time. The information below is based on our understanding of HM Revenue & Customs (HMRC) practice. It summarises the position of investors who are UK resident and please note that there may be other taxes that apply to the investment. We recommend that you take professional advice particularly if you are taxed outside the UK. Capital Gains Tax (CGT) If your total gains from all investments subject to CGT do not exceed the annual exemption (£10,100 for the 2009/2010 tax year) you will not pay any CGT. Any gains you have made and realised in a tax year (such as the encashing of an investment) which are over this exemption will be taxed at a single CGT rate of 18%. Income tax Distributions of income generated by the Fund are treated as income for tax purposes. This income is categorised as Dividend Distribution for tax purposes. If you are a starting or basic rate taxpayer, you will have no further income tax liability. We have shown below the tax treatment for starting, basic rate, and higher rate tax payers. • Dividend distributions Dividend distributions to individual investors carry a tax credit at a rate of 10%. If you are a basic or starting rate taxpayer, you will not have any further tax liability. If you are a higher rate taxpayer you will be liable to income tax on the grossed up dividend income at the rate of 32.5% but can offset the 10% tax credit against this. In short this means you will normally be liable to additional income tax at a rate of 25% of the net income you receive from the Fund. It is not possible for investors to reclaim any amount in respect of the tax credit. Corporate investors should refer to the tax voucher we issue, as this will give a detailed income analysis. 11
  12. 12. What costs are associated with my investment? The costs of running the Fund are summarised into a single figure, the ‘Total Expense Ratio’ (TER). This is the overall cost shown as a percentage of the value of the assets of the Fund. It is made up of the annual management charge plus SDRT and “other charges” which we explain below. The TER can help you compare the annual operating expenses of different funds. The charges are: Initial charge We make an initial charge when you invest. This charge is already reflected in the buying (offer) price at which you invest. Therefore the buying (offer) price is higher than the selling (bid) price for this Fund. Please refer to the Fund Information Summary for details of the initial charge. Bid-offer spread The Fund is ‘dual priced’, i.e. it has a buying (offer) and a selling (bid) price. The difference is known as the ‘spread’ and reflects the underlying dealing expenses and the initial charge. As a result, the offer price is normally higher than the bid price. The maximum spread will change daily depending on market fluctuations. Annual management charge (AMC) The AMC is an annual charge that we take out of the Fund. Please refer to the Fund Information Summary for details of the AMC. Stamp Duty Reserve Tax (SDRT) SDRT is a transaction tax of 0.5% which is normally paid for by funds which invest in UK shares. Further information can be found within the Glossary and the Full Prospectus. Other charges The Fund pays expenses that are taken into account when calculating the price of units in the Fund. These expenses include external services involved in the running and management of the Fund and you can find more detail within the Full Prospectus. We normally take these fees from the Fund’s income and will only take them from capital if there is not enough income available to cover them. We have summarised the charges and expenses for the Fund in the Fund Information Summary section. 12
  13. 13. Dealing costs and Portfolio Turnover Rate (‘PTR’) The PTR represents the percentage of the Fund’s portfolio that is bought and sold over a 12 month period. Buying and selling within a Fund incurs a dealing cost so the higher the PTR the higher the dealing costs paid for by the Fund. However, active management may mean that changing investments increases the performance of a Fund to outweigh these costs. We show the PTR for this Fund in the Fund Information Summary section. Advice – how much does it cost? Your financial adviser will give you details about the cost of this advice. The amount will depend on the size of your investment. It will normally be paid for out of the charges of the Fund unless you have a different arrangement with your financial adviser. After you have invested, we will send you details of the payment and any services and benefits which may be provided to your financial adviser in connection with your investment. This will be included on the contract note. How do I invest? You can invest a lump sum or save on a monthly basis. Minimum investment limits Investment limits Practical investment Fund Minimum lump sum investment £1,000 Additional lump sum investment £500 Regular investment (monthly) £50 Minimum switch amount* £1,000 Minimum partial redemption* £500 Minimum balance £1,000 *Subject to the minimum balance limit. 13
  14. 14. How your money is invested Your investment will be used to buy units in the Fund. Where applicable, we will deduct an initial charge (which is a percentage of your investment) from the money you invest. You can find details of the initial charge in the Fund Information Summary section. We will buy units on a “forward pricing” basis, which means that for all applications received, we will invest your money using the unit prices we calculate at the next valuation point, which is each business day at 12 noon. Orders are transacted at the next available valuation point after receipt of your instruction. No interest will be paid prior to investment. Payment for unit purchases must be received by the Manager not later than the day following the valuation point. Units that have not been paid for will not be sold. Ways you can invest By post Provide us your investment instructions in writing. Then either: • post it to us at the following address: Practical investment Funds Management Ltd Dealing Department Phoenix Fund Services (UK) Limited Springfield Lodge Colchester Road Chelmsford Essex CM2 5PW Tel: +44 (0)845 0264 281 or • send it to your financial adviser. You must send the appropriate payment and identity information we may need with your application to invest (please see page 15 for requirements). Please send a personal cheque to pay for your investment made payable to Practical investment Fund Management with your instructions. Please check the minimum investment limits for the Fund in the table above. Investing by telephone If you wish to invest a lump sum, you can invest by calling us on 0845 026 4281. We will explain over the telephone how you pay for your investment. 14
  15. 15. Can I make regular savings? We offer a savings plan allowing you to make monthly payments directly into the fund and accumulate your unit holdings over a period of time. By making regular savings you may benefit from ‘pound cost averaging’, buying more units when prices are low and fewer units when prices are high. On opening a savings plan we need your first contribution to be made by cheque. We will collect subsequent savings plan contributions by direct debit on the 6th day of each month, and will make the investments at the next valuation point. The Monthly Saving Plan allows you to save as little as £50 per month. We will acknowledge investments made via a savings plan in writing. There is no minimum term for savings plan participation and you can suspend or stop contributions by giving written instructions. UK anti-money laundering requirements To comply with Money Laundering Regulations, we may require you to supply evidence of identity and address. We may validate these details against any database (public or other) to which we may have access. We will retain a record if such an enquiry is made. If you do not want your details validated against a database, please tell us at the time you apply. How do we confirm your investment? We send you a contract note which will tell you your customer number, the number of units you have bought, the amount you invested and the unit price. We send you a contract note for any subsequent investments or switches you make. It’s very important to keep all contract notes safe, because we do not issue unit certificates. Your evidence of ownership is through us entering you on the unitholder register. Can I change my mind? Although you are always entitled to change your mind, if you invest directly into the Fund using our telephone dealing service or by postal application you will not be entitled to cancellation rights. Depending on the service you receive from your financial adviser, if you have invested via a financial adviser you may be entitled to cancellation rights within 14 days of us receiving your notification of cancellation if you return your cancellation instruction to us within this period. We will then return your investment to you less any fall in value your investment experienced in the interim. 15
  16. 16. How do I switch between funds? You can switch your money to another of our Funds as your investment requirements change. When we receive your instructions to switch, we will sell your units in the Fund at the “bid” price and buy shares or units in your chosen alternative Fund. We do not currently charge for switching between our Funds, but reserve the right to do so. A switch of investment from one fund to another will be regarded as potentially liable to tax by HMRC, and could give rise to a CGT liability if your annual allowance has already been used. Your financial adviser will be pleased to provide you with details of the options open to you. If you wish to switch your investments, please call us or write to us with your instructions using the contact details at the front of this Simplified Prospectus. Are there any restrictions on dealing and switching? We have a regulatory responsibility and a duty of care to prevent “late trading” and “market timing” practices carried out by investors or potential investors in our Funds. These practices, in general, aim to exploit time differences and price inefficiencies within stock markets and units of Funds. We have put in place procedures to prevent this and to monitor the activities of suspected market timers and arbitrageurs. We are also obliged to declare all such suspicious cases to the FSA and to the Trustee. We may also cancel or suspend orders, including switches between Funds, in such circumstances. You can find more information within the Full Prospectus. How do I sell my investment? You can sell all or part of your investment at any time. There is no withdrawal charge for doing this. The minimum amount for partial withdrawals is £500. After you have made the withdrawal, the remaining value must be at least £1,000 in the Fund. Your financial adviser will be pleased to provide you with details of the options open to you. If you wish to sell your unit trust investment, please call or write to us using the contact details at the front of this Simplified Prospectus. 16
  17. 17. About the investment Does my investment pay an income? This depends on whether the units you purchase are income or accumulation: Income units The income will be paid into your nominated bank or building society account on the Fund’s income payment date. We have shown the payment dates in the Fund Information Summary section. Accumulation units For these units we reinvest all the income to maximise growth potential, increasing the value of units held. Please see the Fund Information Summary section which shows when income is accumulated. How can I find out how my investment is doing? You can check the latest unit prices of the Fund by: • Visiting; • calling our Customer Services Team on 0845 0264 281 for details of the current prices, estimated yields and valuations; • viewing the Financial Times. Please note that these prices are historical and are not the prices at which you would be able to buy or sell units. We will buy and sell units in the Fund on a “forward pricing” basis, which means we will use the prices we calculate at the next valuation point, which is normally 12 noon on each business day. We show the past performance of the Fund in the Fund Information Summary section. Every six months we send you: • A copy of the annual or half-yearly Short Report for the Fund. This will provide up- to-date details of your Fund and a commentary from the fund manager about the Fund’s performance. We send these to you by 31 October and 30 April each year. • We will send you tax vouchers giving income details for each distribution or accumulation of income made during the tax year. 17
  18. 18. Additional Information What type of investor you are You will be categorised as a ‘retail client’ under FSA Rules. This means that you will have the maximum amount of protection available under the relevant rules. Manager Consistent Unit Trust Management Company Limited is the promoter of the Fund, the investment adviser and the Manager of the Fund. Our registered address is: 2nd Floor 50 Gresham Street London EC2Y 7AY Trustee The Trustee is the third party independent custodian of the assets held by the Fund. The Trustee’s address is: BNY Mellon Trust @ Depositary (UK) Ltd 160 Queen Victoria Street London EC4V 4LA Auditor The Auditor ensures all of the Fund’s accounts are in order. The Auditor’s address is: Shipleys LLP 10 Orange Street Haymarket London WC2H 7DQ 18
  19. 19. Administrator The Administrator carries out the day to day administration of your account. The Administrator’s address is: Phoenix Fund Services (UK) Limited (Authorised and regulated by the Financial Services Authority) Springfield Lodge Colchester Road Chelmsford Essex CM2 5PW Telephone: 0845 0264 281 (local call rates) Complaints If you have any queries or complaints about the operation of the Fund please address them in the first instance to the Manager or the Trustee. In the unlikely event that you do not receive a satisfactory response you may direct complaints to: Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Making a complaint will not prejudice your right to take legal proceedings. FSA contact details We and the fund are authorised and regulated by the Financial Services Authority (FSA). The FSA can be contacted at: 25 The North Colonnade Canary Wharf London E14 5HS From UK: 0845 606 1234 (local call rates) From Overseas: +44 20 7066 1000 Website: 19
  20. 20. Compensation arrangements We are covered by the Financial Services 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 the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000. With effect from 1 January 2010 the limit will be 100% of £50,000. These levels of compensation are set by the Government and can change. This is the maximum compensation. Further information about compensation arrangements is available from the Financial Services Compensation Scheme at the following address: Financial Services Compensation Scheme 7th Floor Lloyds Chambers Portsoken Street London E1 8BN United Kingdom Telephone: 020 7892 7300 Disability Discrimination Act If you require a copy of this brochure in large text format, braille or on audiotape, please telephone us on 0845 300 0479. Full Prospectus/Report & Accounts You can ask for free copies of the latest Full Prospectus and annual and half yearly Reports & Accounts (short and/or long form) by contacting us using the contact details at the beginning of this Simplified Prospectus. You can also visit our website for this information. 20
  21. 21. Fund information summary This section contains important information which you should read and understand before making an investment. You should keep it for future reference. You can cross-reference to the Simplified Prospectus for further explanations of the terms used below. Investment objective & policy This Fund is designed to provide investors with above average capital growth and increasing income from investment in a wide spread of UK and dollar denominated investment trusts, ordinary shares and other selected investments. The Fund will invest mainly in a broad base of investment trusts which satisfy the Managers’ criteria of sound long term performance, a satisfactory discount to net asset value (see paragraph c on page 10 page) and income growth potential. The Managers will attempt to minimise risks through diversification and may also use other hedging mechanisms. The amount of cash held within the Fund will normally not exceed 10% of the total value of the Fund, but this level can be increased if the Managers believe it appropriate. For full details of the Fund’s investment objective and policy please read the Full Prospectus. Fund risk profile By investing in a fund which invests primarily in investment trusts shares you are likely to be looking for an investment which will generate capital growth with growing income. You are willing to accept that such investment has higher risk than other investments, such as bonds, that your investment will fall and rise in value and that you could get back less than you invest. You are comfortable that the Fund will invest in shares of investment trusts which can also increase risk as explained on page 10. Specific risk warnings (Please see page 10 for details of these specific risks) (A) Overseas investments (B) Credit and fixed interest securities (C) Investment Trusts (D) Derivatives (E) Charges deducted from capital Fund facts Income distribution Dividend type Income pay dates 31 October, 30 April Initial charge 1.0% 21
  22. 22. Total Expense Ratio 1.18% Portfolio Turnover 31.7% Rate Effects of Deductions / Reduction in Yield as at 15 September 2008 The following tables illustrate the effect of charges and expenses on an investment. These figures are not guaranteed. Investments held within an ISA may achieve a higher growth rate because of their tax benefits. Lump sum investment of £1,000 in income units Investment to Effect of deductions to What you might get At end of year Income (£) date (£) date (£) back (£) 1 1,000 65 44 995 3 1,000 99 138 1,092 5 1,000 140 241 1,198 10 1,000 280 544 1,511 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to £280. Putting it another way, this would have the same effect as bringing investment growth from 6% a year down to 4.2% The above table assumes that no withdrawals are made and that income is paid out. Lump sum investment of £1,000 in accumulation units Investment to date Effect of deductions What you might At end of year (£) to date (£) get back (£) 1 1,000 68 1,041 3 1,000 113 1,250 5 1,000 176 1,501 10 1,000 439 2,371 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to £439. Putting it another way, this would have the same effect as bringing investment growth from 6% a year down to 4.2% The above table assumes that no withdrawals are made and that income is accumulated. Regular investment of £50 per month Effect of Investment to date What you might At end of year deductions to date (£) get back (£) (£) 1 600 34 599 3 1,800 137 1,975 5 3,000 305 3,627 22
  23. 23. 10 6,000 1,166 9,357 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to £1,166. Putting it another way, this would have the same effect as bringing investment growth from 6% a year down to 5.1% The above table assumes that no withdrawals are made and that income is accumulated. Past Performance as at 31 December 2008 Please note that past performance is not a guide to future performance. The graph below displays annual performance which is the gains or losses made by the Fund for each complete calendar year. We also show a cumulative performance chart (gains or losses over the entire period) for a maximum of ten years, or as many complete calendar years that are available. The historical performance information is net of UK tax and does not include the effect of subscription charges. Annual performance 40 30 20 10 Percentage Growth 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 -10 -20 -30 -40 Practical Investment Fund Acc FTSE All Share Percentage annual performance, accumulation units. Source: Practical investment Fund Management Company Limited. Basis buy to buy with net income reinvested, in sterling terms. Cumulative performance 100 80 60 Percentage Growth 40 20 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 -20 -40 -60 Practical Investment Fund Acc FTSE All Share Index 23
  24. 24. Percentage cumulative performance, accumulation units. Source: Practical investment Fund Management Company Limited. Basis buy to buy with net income reinvested, in sterling terms. Issued by Practical investment Fund Management Company Limited. Practical investment Fund Management Company Limited is authorised and regulated by the Financial Services Authority. Practical investment Fund Management Company Limited Registered Office: 2nd Floor, 50 Gresham Street, London EC2Y 7AY.Registered in England No. 2145528. 24