Investment policy and objective clarification of the underlying fund of P73 Aviva Investors UK Property

Investment policy and objective of the underlying fund of P73 Aviva Investors UK Property before the Effective Date

Investment policy and objective of the underlying fund of P73 Aviva Investors UK Property from the Effective Date

Investment objective

To obtain returns via income and capital appreciation.

Investment policy

The underlying fund will invest solely in the Aviva Investors UK Property Fund with the exception of cash balances which may also be held for the purposes of maintaining sufficient liquidity to enable the underlying fund to meet its commitments, such as expenses and redemptions.

Investment objective

The underlying fund aims to provide a combination of income and growth over the long term (5 years or more), through exposure to UK property.

Investment policy

The underlying fund will be invested solely in the Aviva Investors UK Property Fund (the “Master Fund”) other than cash and deposits, which will only be held to ensure that the underlying fund can meet its payment obligations.

Master Fund Strategy and Environmental, Social and Governance (“ESG”) factors:

The underlying fund aims to achieve similar investment returns to the Master Fund. However, returns may be different as a result of the cash and deposits held by the underlying fund.

The Master Fund is structured as a Property Authorised Investment Fund and will invest at least 70% of its assets in UK Property in normal market conditions. The Master Fund’s strategy, including its consideration of ESG factors, is set out below:

The Master Fund is actively managed and the Investment Manager aims to use detailed analysis, expertise and relationships to drive income and growth for investors, rather than relying on property market movements alone. This will include making decisions such as actively managing property transactions, redeveloping properties and the negotiation of leases.

ESG factors are integrated into the due diligence performed before purchasing assets for the Master Fund, and throughout the life of the investment, with the intention of reducing risk, protecting value, and delivering enhanced income and growth. This includes engagement with the occupiers of properties to reduce energy consumption and waste, and to increase community engagement. Identification of ESG risks does not preclude investment in or the continued holding of an asset, as our ability to mitigate risks through active management of assets is also taken into account, and the Investment Manager retains discretion over the investments that are selected for the Master Fund.