Key Features Document Funds (incorporating the Simplified Prospectus) October 2010 Close FTSE techMARK Fund Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) Close Asset Management (UK) Limited, is authorised and regulated by the Financial Services Authority. The Financial Services Authority is the independent financial services regulator. It requires us, Close Asset Management (UK) Limited, to give you this important information to help you to decide whether our Close FTSE techMARK Fund is right for you. You should read the contents of this document carefully so that you understand what you are buying and then keep it safe for future reference. As we regularly update this document, you should check if this is the latest version by visiting our website www.closeam.com More detailed information is contained in the full Prospectus and the latest Interim and Annual Reports and Accounts. These are available free of charge on request from the Authorised Fund Manager, Close Asset Management (UK) Limited, or on our website www.closeam.com Whilst this document is designed to ensure that you understand the key features of the Close FTSE techMARK Fund before investing, please note that any investment is made on the basis of information contained in the full Prospectus. Important You can find the address to write to us for these documents on page 14. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 1 Contents Page Page The Close FTSE techMARK Fund What are the Fees and Expenses for What are the aims of the Fund? 2 the Fund? How does the Fund work? 2 AFM’s charges 8 Who might invest in the Fund? 2 Other charges and expenses 8 Your commitment 2 Total Expense Ratio (TER) 8 Investment types 2 Portfolio Turnover Rate (PTR) 8 What is the Fund structure? 2 Example of how charges and expenses will affect your investment 9 Risk Explained What will you pay my financial adviser? 9 What are the risks of investing in this Fund? 3 Does the Fund pay an income? 9 General Risks 3 Other Important Questions Specific Risks 4 Conflicts of Interest 10 Frequently Asked Questions What documentation will I receive? 10 What is the Historical Performance of Are there unitholder meetings? 10 the Fund? 5 How do I tell you about any changes in Unit Information my personal details? 10 What type of Units does the Fund offer? 6 How would a complaint be handled? 10 How are Units dealt? 6 Is my investment protected if you become insolvent? 10 Where is the Unit price of the Fund published? 6 What would happen if a bank or building society holding my cash became insolvent? 11 How can I obtain a copy of the Fund’s full Prospectus and any related documents? 6 What happens to my investment on my death? 11 Buying and Selling Units Is the Fund taxed? 11 How do I buy Units in the Fund? 6 How will I be taxed on my investment? 11 Payment Instructions 6 Data Protection 12 What documentation do I need to send? 7 Does Stamp Duty Reserve Tax What happens once I have made my (SDRT) apply? 12 investment? 7 Can I hold my investment in the Fund via What are the minima? 7 an Individual Savings Account (ISA)? 12 How do I invest via a monthly savings What is the EU Savings Directive and scheme? 7 does it apply? 12 What happens if I change my mind? 7 How do I sell Units in the Fund? 7 Other Information 13 Useful Contacts and References How to Contact Us 14 Glossary of Terms 14 Important Throughout the document terms that are printed in blue are defined on pages 14 – 15. Other important notes are shown in a box like this one. 2 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) The Close FTSE techMARK Fund What are the aims of the Fund? Investment types The investment objective of the Fund is to track The Fund’s investment portfolio may include, but is the FTSE techMARK Focus Index performance in not limited to, one or more of the following types of capital terms. investments: G Equities; How does the Fund work? G Derivatives (including Options and Futures); G Units in collective investment schemes*; The Fund aims to achieve its objective by investing G Money market instruments*; principally in shares comprised in the techMARK™ G Deposits*; market for the purpose of tracking the FTSE G Warrants*. techMARK Focus Index as closely as possible. In * We do not currently envisage that the Fund will addition, if stocks and shares needed to replicate invest in these instruments to any material extent. the FTSE techMARK Focus Index are not available, we may employ derivative techniques which have the effect in the short term of Important replicating the FTSE techMARK Focus Index. This list is indicative of the types of investments the Fund may hold and so is not a complete list of all the investments the Who might invest in the Fund? Fund may hold in the future. You can find Typical investors are private individuals who are explanations of these terms on seeking to gain exposure in the growth of stocks in pages 14 – 15. the technology sector. These investors can invest Our investment approach to managing the directly, or via a professional adviser. Fund will vary over time to accommodate As we do not provide investment advice, you changes in markets and/or economic may want to consult a professional adviser. conditions. You can find full details of the Fund’s investment powers in the full Institutional investors may also buy Units in Prospectus. the Fund. Your commitment What is the Fund Structure? There is no fixed term commitment but investment The Fund is: in the Fund should be viewed as a long-term G an authorised unit trust investment and you should aim to invest your G classified as a UCITS Scheme money for at least five years. G authorised by the Financial Services Authority Minimum subscription amounts are detailed on on 26 October 1999 page 7. G the Fund is established as a unit trust under the law of England. English law is the basis of all our dealings with you. When you subscribe for Units in the Fund a contract is entered into between us on the terms of the full Prospectus. This contract shall be governed by and construed in accordance with English Law. The contract will be in English and we will communicate with you in English. The base currency of the Fund is sterling. This means that the Units of the Fund are priced in sterling. The Fund may also invest in other currencies and investments priced in other currencies. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 3 Risk Explained What are the risks of investing in this Fund? All investments carry a degree of risk. This section explains some of the different types of risk associated with investing in this Fund, but this is not an exhaustive list. Some of these risks are general, whilst others apply specifically to a particular type of investment. Important You should read this section carefully and make sure you fully understand it and that you are comfortable it matches your own attitude to risk. If you are in any doubt as to the risks or any other points covered in this document or whether an investment in the Fund is appropriate for you, you should contact an independent financial adviser. Details of all the risks mentioned here may be found in the full Prospectus. General Risks G The value of investments may fall as well as rise. G You may get back less than your original investment. G Past performance is not a reliable indicator of future results. G If the Fund has deposits with an institution which defaults the value of the Fund will be affected. G The Fund may be affected by changes in interest rates and credit quality considerations. G The value of the Fund may be more volatile if it invests in assets which are in limited supply as they may be more difficult to buy or sell. G The tax treatment of your investment will depend upon each unitholder's individual circumstances, and may change over time. G The Fund may hold some investments which are denominated in currencies other than GBP. Exchange rate movements may cause the value of your investment to fall as well as rise. Further details of the risks relating to investment in the Close FTSE techMARK Fund can be found in the full Prospectus. Important to know Our risk management process is designed to take into account the investment objectives and policy of the Fund (you’ll find these in the full Prospectus). It monitors and measures the risk of the Fund’s positions as well as their contribution to the overall risk profile of the Fund. Use of this process assists us in managing risk, including the risks mentioned above. We review this process and the risks themselves regularly. Any changes in the risks will be included in the updates for the full Prospectus and Key Features Documents. Any revisions to the risks of investing in the Fund will be published in the Fund’s most recent report & accounts. (Applies only to report & accounts for periods ending after 31 May, 2009). Note: You might also find it useful to read the Charges section on page 8. 4 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) Specific Risks Long-term investment Segment and index risk exposure You should consider an investment in the Fund as Where the Fund holds a limited range of securities, long-term and you must be willing to accept some group of securities or sector or asset class, the risk to your capital. Because of this, you should not effect of price movements may have a greater invest money in the Fund that you may require in effect on the value of your investment. the short-term. Derivatives risk The value of an individual derivative may fluctuate more than the value of the underlying asset, reference rate or index. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 5 Frequently Asked Questions What is the historical performance of the Fund? Percentage Growth Total Return The Fund aims to track the FTSE techMARK 150 Focus Index performance in Capital Terms. Close FTSE techMARK Fund (MF) The graph to the left shows the historical 125 FTSE techMARK Focus CR (IN) performance of the Fund against the FTSE 100 techMARK Focus Index capital return. 75 Please remember that the performance 50 information set out opposite and below refers 25 to historical performance which does not include the effect of subscription and 0 redemption fees and is for illustrative -25 comparative purposes only. Past performance -50 is not a reliable indicator of future results. The -75 value of Units and the income from them is not guaranteed and can fall as well as rise due -100 to stock market and currency movements. 00 01 02 03 04 05 06 07 08 09 When you sell your holding you may get back Source: Lipper Hindsight, as at 30.10.09. Percentage growth on a bid to bid basis in sterling with net income reinvested. less than you originally invested. Performance of the Fund since launch to end of October 2009 % 48.93 50.97 Close FTSE TechMark Fund 40.65 40.48 FTSE techMARK Focus TR EUR 37.53 38.00 21.66 24.06 12.68 14.81 16.84 11.37 12.73 10.23 0 -33.24 -31.74 -49.29 -48.77 -60.32 -58.57 1999 – 2000 2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005 2005 – 2006 2006 – 2007 2007 – 2008 2008 – 2009 Source: Lipper Hindsight, as at 30.10.09. Percentage growth based on share price movement in sterling with net income reinvested. 6 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) Frequently Asked Questions (continued) Unit Information What type of Units does the Fund offer? The Fund only offers Accumulation Units. How are Units dealt? All Unit dealing is undertaken at the next available price after a deal has been agreed. This is called ‘forward’ pricing. The price for Units is calculated at the Valuation Point on each Business Day. Units are bought and sold using dual pricing. Where is the Unit price of the How can I obtain a copy of the Fund published? Fund’s full Prospectus and any Unit prices are available on our website related documents? Copies of the current full Prospectus and the Trust www.closeam.com Deed may be inspected free of charge on each and Business Day at our offices at 10 Crown Place, London EC2A 4FT. The two most recent annual the Investment Management Association website and half yearly reports for the Fund can be found on our website www.closeam.com www.investmentuk.org Alternatively, please call our helpdesk on For your own copies of the Prospectus and Trust 0870 606 6452 Deed please contact us on Calls to this number are recorded for monitoring purposes. 0800 269 824 Calls to this number are recorded for monitoring purposes. There may be a charge for a copy of the Trust Deed at the discretion of the AFM. Buying and Selling Units How do I buy Units in the Fund? Payment Instructions You can apply for Units in the Fund, in writing or Cheques from a UK bank account should be by telephone on any Business Day forward of the made payable to: next Valuation Point. You may apply in any of the following ways: Close Asset Management (UK) Limited (a) Through your authorised financial adviser. For building society accounts, please make (b) By sending an application form and cheque. the cheque payable to: You can print off our application form from our website www.closeam.com Close Asset Management (UK) Limited Reference [Insert Your Name] (c) By phoning your order to our dealers on 0870 606 6402 between 9am and 5pm on any All cheques must be drawn from a UK Business Day. *Calls to this number are recorded for clearing bank. If a building society cheque is monitoring purposes. used it must be endorsed with the account (d) By fax on 08702 750015. holder’s policy/roll number on the back. If you have any questions or need more information about the Fund, please call us on 0800 269 824*. *Calls to this number are recorded for monitoring purposes. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 7 Buying and Selling Units (continued) What documentation do I need to How do I invest via a monthly send? savings scheme? For all non-telephone purchases, you will need to Simply complete the direct debit form (available complete an application form. from www.closeam.com) and send it with a For all investments we, and/or our Administrator, cheque payable to ‘Close Asset Management (UK) need evidence of your identity and address and the Limited’ for your first monthly contribution. This first source of the funds you are investing. Details of investment may be higher than your subsequent acceptable documents are shown on the monthly contributions and must be drawn from the application form. same bank account from which the monthly direct debits will be taken (refer to page 6 for payment We may validate details of your identity and instructions). address against any database or via a reference agency. Debits to your bank account will be made on or immediately after the 15th of each month. What happens once I have made my investment? What happens if I change my mind? We will send you a trade confirmation after the deal For investments via an authorised has been placed. Monies in settlement need to be financial adviser received by us within four Business Days of the If you received advice on investment in the Fund Dealing Day; this is covered in the trade from your financial adviser, you will receive a notice confirmation. We reserve the right to place deals of your right to cancel your investment. This gives on receipt of cleared funds only. you the right to cancel within 14 days from the date on which the deal took place. Important Important Certificates are not issued so please keep your trade confirmation in a safe place. If you exercise this right you may not get back the full amount you invested if the value of the Units falls before the cancellation notice is received by us. What are the minima? This deduction will not be applied to the first Lump sum investments instalment made into a regular savings scheme. minimum £1,000 and no maximum Additional investments minimum £1,000 and no maximum For direct investments Monthly savings We do not provide investment advice in relation to minimum £100 per month and no maximum an investment in the Fund, so if you dealt directly Minimum redemption request value with us, this is called ‘Execution only’ and no rights minimum £1,000 of cancellation apply. In this case, if you change your mind, you will need to sell your Units back to Minimum holding value us by sending us a repurchase request. minimum £1,000 (unless Units were issued before 1 March 2000) How do I sell Units in the Fund? Minimum subscription amounts are inclusive of the initial charge made by us (see ‘Charges’ on page 8). You may sell your Units on any Business Day but this may not be processed until the next Dealing Minimum subscription and holding amounts may Day. You will need to submit a signed repurchase be reduced or waived at our discretion. request which you can find on our website www.closeam.com. Payment of redemption proceeds will normally be sent within four Business Days following receipt of the correct documents. Redemption proceeds are paid by cheque to the unitholder at the unitholder’s risk. 8 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) What are the Fees and Expenses for the Fund? AFM’s Charges Total Expense Ratio (TER) G The initial charge is 4.75% of the creation price The TER shows the true annual running cost of the of a Unit (this is included within the offer price Fund as a percentage of the Fund’s net assets. of the Unit). This charge may be waived in All UCITS in the UK and Europe publish a TER to whole or in part at our discretion. help you compare the annual running (or operating) G The annual management fee of 1.15% per costs of different funds. annum of the Fund’s net asset value. The TER is calculated annually for the Fund on an G There is a registration fee is £14.75 (plus VAT) historic basis for the last financial period and is per annum per unitholder. disclosed in the annual and half yearly report and the Simplified Prospectus. The following fees and expenses are included Other charges and expenses within the definition of running costs: In addition: G Annual Management Charge (AMC) G the Trustee receives remuneration from the G Trustee Fee Fund and various expenses are paid by G Custody Fee (transaction fee element billed the Fund; separately) G there are costs associated with buying and G Audit Fee selling Units including broker commission and stamp duty (which is currently 0.50% on the G Registrar’s Fee purchase of Units). G FSA Fee Full details of charges and expenses which are G Meetings of unitholders other than those payable out of the property of the Fund are set out convened by the AFM in the full Prospectus. G Report & Accounts – Mailing costs. Charges and expenses are normally taken from the The TER for the Fund was 1.61% for the twelve Fund’s income. These charges and expenses may, month period ended 31 October 2009. The latest however, be taken against capital if there is TERs are available on our website insufficient income to cover them. www.closeam.com. The TER does not include the initial charge and transaction expenses. Portfolio Turnover Rate (PTR) The PTR shows how much the investment manager changes the Fund’s investments in a year. All UK and European UCITS funds publish a PTR to help you compare the levels of transactions in different funds. A PTR of 200% is equivalent to all investments having been replaced once. As there is a cost involved with the buying and selling of these investments, the higher the percentage, the more costs the Fund will have paid. The PTR for the Fund was 57.67% for the 12 month period ended 31 October 2009. The latest PTR figures are available on our website www.closeam.com. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 9 What are the Fees and Expenses for the Fund? (continued) Example of how charges and expenses will affect your investment The effect of charges and expenses on an investment of £1,000 assuming growth of 6% a year is set out below: Investment Effect of What You Might to Date Deductions Get Back At end of year 1 £1,000 £66 £994 At end of year 3 £1,000 £108 £1,083 At end of year 5 £1,000 £159 £1,179 At end of year 10 £1,000 £329 £1,461 The example in the last line in this table shows that over 10 years the effect of charges and expenses would have been £329. Put another way, the deduction of charges and expenses over that period would have the effect of reducing your investment to 3.86% a year (with income re-invested in the Fund). These figures are based on the following assumptions: • an assumed growth rate of 6% a year. This rate is for illustrative purposes only and should not be taken as an assurance or guarantee that this rate will be achieved; • a constant Total Expense Ration (‘TER’) of 1.61% per annum. This TER is the latest TER as set out in the annual audited accounts dated 31 October 2009. However, it should be noted that the TER is subject to change. The table is for illustrative purposes only. The figures are not guaranteed and serve only to demonstrate the potential effect of charges and expenses on an investment in the Fund. What will you pay my financial adviser? The Fund may pay commission to your adviser and they should give you full details of any amounts payable. This will be paid directly to your financial adviser out of the annual management fee disclosed above. Details are also shown on the confirmation of transaction. You may also request details from us. Does the Fund pay an income? The Fund only issues Accumulation Units. The income of the Fund is not expected to be significant and the reinvested net income (if any) is reflected in the price of Units and is not distributed. 10 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) Other Important Questions Conflicts of Interest How would a complaint be handled? If you have a complaint, please write to: We have a Conflicts of Interest Policy in place to manage and control any conflicts The Compliance Officer or potential conflicts that may arise in the Close Asset Management (UK) Limited, day-to-day activities between us and our 10 Crown Place, clients. This policy ensures the fair London EC2A 4FT treatment of clients if a Conflict of Interest Your letter will be acknowledged promptly, and we arises. A copy of our Conflicts of Interest will investigate your complaint as a priority and Policy can be found on our website. report back to you the results of our findings. If a complaint remains unresolved after eight weeks from the date you first contacted us, you may also What documentation will I receive? refer your complaint direct to The Financial When you deal in Units normally you will receive a Ombudsman Service. notice confirming your transaction, normally issued The Financial Ombudsman Service within one Business Day of the Dealing Day. South Quay Plaza, 183 Marsh Wall, Investors in regular savings plans will receive an London E14 9SR acknowledgement confirming the date of the first This will not affect your legal rights. direct debit payment. Is my investment protected if you Important become insolvent? As we do not issue certificates, please make If your cash was held by us pending the sure you keep your trade confirmations and processing of either your initial application for Units statements in a safe place. or the payment of realisation proceeds from the sale of your Units, then you may be entitled to compensation under the UK’s Financial Services Twice a year you will receive: Compensation Scheme (‘FSCS’). Most types of G a valuation statement including details of any investment business, such as that of Close Asset transactions in the preceding six months; Management (UK) Limited, are covered for 100% G a Manager’s Report giving details of the Fund’s of the first £50,000 (for any claims against firms investments and an investment commentary. declared in default after 1st January 2010). These Reports are sent by 28th February or If, however, your cash is held by us in a client 29th February (for the annual accounting period monies account, then your cash is protected in to 31st October) and by the 30th June (for the accordance with the FSA’s client money interim accounting period to 30th April). regulations and so is segregated from our own money. Are there unitholder meetings? Finally, if your cash has been invested in Units in Registered unitholders will be invited to attend and the Fund, it will be held by the Trustee and so will vote at any meetings of unitholders which are held be unaffected in the event of our insolvency. to discuss any fundamental changes for the Fund. The Fund does not hold regular unitholder meetings. Important Further information about compensation How do I tell you about any arrangements is available from: changes in my personal details? The Financial Services Compensation Scheme 7th Floor, Lloyds Chambers, Any change in your personal details, for example, Portsoken Street, London E1 8BN a change of address, should be sent to the Telephone: 020 7892 7300 Administrator and signed by all relevant investors Website: www.fscs.org.uk (see page 14 for address details). Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 11 Other Important Questions (continued) What would happen if a bank or Is the Fund taxed? building society holding cash Dividend income from UK companies became insolvent? Income received by the Fund in the form of If your cash was held by us in a client monies dividends from UK Companies will ordinarily be account maintained at the insolvent bank or exempt from tax. An exemption from United building society, then you may be entitled to Kingdom taxation will ordinarily apply for certain compensation under the FSCS. For claims against dividends from non-UK companies resident in a deposit takers in default, cash accounts are jurisdiction which has a double tax treaty with the covered for 100% of the first £50,000. UK containing a non discrimination article. However, if the Fund has deposits with a bank or Other types of income building society which becomes insolvent, the Fund The Fund is subject to corporation tax at a rate is not entitled to claim under the FSCS and it may equal to the basic rate of income tax (currently lose that deposit in full. This would mean that you 20%) but after deducting allowable expenses may not get back the full value of your investment. (which include management expenses). However, any distributions paid to the Fund’s unitholders will be dividend distributions and will not be a What happens to my investment on deductible expense. my death? Any income (except the exempt dividends from Units in the Fund will form part of your estate on non-UK companies, as described above) derived death. by the Fund from foreign sources will be included We will need a certified copy of your death in its taxable income, but, in calculating the Fund’s certificate and the Grant of Probate or Letters of liability to corporation tax, credit may be available Administration from your executors. Once we have for any foreign taxes (such as foreign withholding received these, we will be able to act on taxes) that the income has borne. instructions from your executors either to sell your holding or re-register it into the names of the Chargeable Gains Executors or Administrators of your estate or a The Fund is exempt from UK tax on capital gains beneficiary under your will or, in the case of joint realised on the disposal of investments held within it. holdings, in the names of the surviving unitholders. How will I be taxed on my investment? Important A UK tax resident may be liable to capital gains tax, or corporation tax (if a company), on chargeable The tax benefits of an ISA will cease from the gains in respect of any gains arising from the sale date of death. or disposal of Units. Important If you are unclear about your tax position you should seek professional advice about the tax treatment of income and/or capital gain of your investment or proposed investment in the Fund. The above is a summary of current tax law and practice, and may change. 12 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) Other Important Questions (continued) Data Protection How will you use my personal information? Personal information about you will be held by us or on our behalf in accordance with the Data Protection Act 1998. Full details of the manner in which your personal data will be used is contained in the full Prospectus. You may also request, at any time, a copy of the personal information we hold about you. Please write to: The Compliance Officer Close Asset Management (UK) Limited 10 Crown Place, London EC2A 4FT We may charge a fee for providing you with this information. If you have appointed a financial adviser to act on your behalf, we will make details of your investment available to them and also send copies of correspondence to them, where appropriate, to enable them to give you advice. Does Stamp Duty Reserve Tax What is the EU Savings Directive (SDRT) apply? and does it apply? Stamp Duty Reserve Tax is chargeable at a rate of This only applies if you are not resident in the UK 0.5% on certain sales or, where relevant, switches or if you move to another prescribed country after and on certain transfers of units in authorised you have invested. The regulations that investment funds such as the Fund. As the AFM of implemented the European Savings Directive the Fund, we are liable for any SDRT payable by require us to obtain additional customer the Fund. A provision for SDRT can be recovered information. If you invest in a fund with a fixed out of the assets of the Fund. We may make an interest or cash content of more that 15% we are SDRT provision of up to 0.5% of the value of any required to obtain either your tax identification individual Unit transfer. Details on how this works is number and tax country code, or your date and set out in the full Prospectus. place of birth, and report these to HM Revenue and Customs. Can I hold my investment in the This may have an impact on your tax position. Fund via an Individual Savings Account (ISA)? Yes. Under current rules, the Fund is eligible for a stocks and shares ISA (subject to the usual restrictions). Please ask us, or your financial adviser, for a copy of our ISA Q&A document and terms and conditions. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 13 Other Information The AFM’s contact details The Fund’s Auditors Authorised Fund Manager (‘AFM’) Ernst & Young LLP Close Asset Management (UK) Limited 1 More London Place 10 Crown Place London London EC2A 4FT SE1 2AF The Directors of the AFM The Fund’s Trustee S C E Dyer, M Andrew, P S Chambers and Citibank International Plc R I Curry. Citigroup Centre Close Asset Management (UK) Limited is Canada Square authorised and regulated by the Financial Services Canary Wharf Authority, is a subsidiary of Close Brothers Group London plc and is a member of the Close Asset E14 5LB Management group. The Trustee is responsible for the safekeeping of The AFM is responsible for managing and all of the scheme property of the Fund. The administering the Fund’s affairs in compliance with Trustee has a duty to take reasonable care to the FSA Rules. It provides investment ensure that the Fund is managed in accordance management services, administrative accounting with the FSA Rules relating to pricing of, and and secretarial services and registrar services to dealing in, Units and the income of the Fund. the Fund. It may delegate or employ agents to perform certain functions. The Fund’s Supervisory Authority Currently it has delegated certain of its functions to Financial Services Authority the following parties:- 25 The North Colonnade Administration: Canary Wharf The AFM has appointed The Bank of New York London Mellon (International) Limited of BNY Mellon House, E14 5HS Ingrave Road, Brentwood, Essex CM15 8TG to Website: www.fsa.gov.uk provide administration services. The UK Financial Services Authority is the Investment Adviser to the AFM: competent supervisory authority which has The AFM has appointed Close Asset Management authorised the Fund. Each of the AFM and the Limited of 10 Crown Place, London EC2A 4FT as Trustee are authorised and regulated by the Investment Adviser. The Investment Adviser is Financial Services Authority. part of the same group of companies as the AFM and is authorised and regulated by the Financial This document is issued in the UK by Close Asset Services Authority. Under the investment advisory Management (UK) Limited and should be read in agreement entered into between the AFM and the conjunction with the relevant documents relating to Investment Adviser, the AFM delegates to the the Fund including the full Prospectus. Investment Adviser its discretionary investment October 2010. management powers to invest the property of the Fund with power to buy, sell or otherwise deal with the property of the Fund in its complete discretion subject to the investment objective and policy of the Fund, the terms of the Trust Deed, the full Prospectus and any other guidelines given to the Investment Adviser by the AFM. Although these powers have been delegated, the AFM’s liability for such delegated functions is unaffected by such delegation. 14 Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) Useful Contacts and References How to Contact Us Glossary of Terms Close Asset Management (UK) Limited This page shows some of the most common 10 Crown Place terms we use throughout this document and London their definitions. You will find them in blue EC2A 4FT throughout the document. Telephone: +44 (0)20 7426 4000 Website: www.closeam.com The Fund Close FTSE techMARK Fund. Important Accumulation Units Any change in your personal details, for The net income of the Fund is automatically added example, a change of address, should be sent to (and retained as part of) the capital property of to the Administrator and signed by all relevant the Fund at the end of each accounting period and investors. is reflected in the price of the Unit. You will not receive any income as dividends. Address of Administrator: Administrator The Bank of New York Mellon (International) Bank of New York Mellon (International) Limited. Limited, BNY Mellon House, Ingrave Road, Brentwood, Essex CM15 8TG. Authorised Fund Manager Also referred to as ‘we’, ‘us’ or the ‘AFM’. The AFM manages the Fund in accordance with the Important Trust, the full Prospectus and the Financial Services Authority’s Collective Investment Schemes For more information about the companies in Sourcebook Rules. the Close Brothers Group and the countries in which it operates please write to us. You may The AFM is responsible for the management of the also request at any time a copy of the Fund's investments (including the exercise of personal information we hold about you, by voting rights) and, if a breach arises, for ensuring writing to: that it is rectified immediately in accordance with the FSA Rules. The Compliance Officer Close Asset Management (UK) Limited Business Day 10 Crown Place Any weekday on which banks are open for London business in England and Wales (i.e. excluding EC2A 4FT public holidays) and excluding 24th and 31st December or any other day notified to unitholders. We may charge a fee for providing you with this information. Collective Investment Scheme A Collective Investment Scheme is an arrangement which enables investors to pool their money for the purpose of investing in a range of assets which may generate an income, capital growth or both. Typically this allows a greater spread of investments than the investors would be able to achieve individually. The Fund is an example of a Collective Investment Scheme. Dealing Day Each Business Day and any other day at the AFM’s discretion as notified to unitholders. Close FTSE techMARK Fund. Key Features Document (incorporating the Simplified Prospectus) 15 Derivatives Trustee These are financial contracts whose value depend Citibank International Plc, Citigroup Centre, on, or is derived from, the value of its underlying Canada Square, Canary Wharf, London E14 5LB. asset, reference rate or index. UCITS Equities Undertaking for Collective Investment in Also called stocks. A security representing Transferable Securities. A type of collective ownership rights in a company. A stockholder is investment scheme that is managed and operated entitled to share in the company’s profits, some of within a uniform legislative framework which has which may be paid out as dividends. been adopted within the EU by Member States. FSA Unit(s) Financial Services Authority. A Unit in the Close FTSE techMARK Fund. FSA Rules Valuation Point The rules and regulations of the FSA. Normally at 12.00 noon UK time, on each Futures Dealing Day. A future is a standardised contract between two Warrant parties to buy and sell a specified asset of A security that entitles the holder to buy units at a standardised quantity and quality at a specified specified price or a fixed date or dates during a future date at a price agreed today (‘futures price’). specified period in the future. Warrants can offer The contracts are traded on futures exchanges. geared exposure to national and international FTSE techMARK Focus Index markets, which in turn may provide a degree of A market segment of the LSE’s main market diversification for the Fund. The value of warrants can designed for companies at the forefront of go up and down much more quickly than the innovative research and product development. This underlying assets in question. index represents the top companies of the FTSE All-Share that fulfill all the relevant eligibility criteria, including the requirement to be under £4 billion by full market capitalisation. Investment Adviser Provides investment advice in relation to the Fund. Money Market Instrument Cash-like instruments that have a similar return to cash. Examples include certificate of deposits and commercial paper. Options A financial derivative that represents a contract sold by one party to another party. The contract offers the buyer the right, but not the obligation, to buy or sell a security or other financial asset at an agreed-upon price during a certain period of time or on a specific date. Prospectus The document which contains information about the Fund as required by the Financial Services Authority’s Collective Investment Schemes Sourcebook Rules. It forms the contract with each unitholder. The Prospectus contains a description of the full investment powers available to the Fund as well as more detailed information which is summarised in this Key Features Document. Trust Deed The Trust deed constituting The Trust and which sets out those matters required to be included by law and regulation.