Aberdeen UK OEIC Fund Range - Aberdeen Asset Management

Important - Risk factors
GENERAL RISK FACTORS TO CONSIDER WHEN
INVESTING IN THESE FUNDS
• Any stock market investment involves risk. Some of these risks
are general, which means that they apply to all investments.
Others are specific, which means that they apply to individual
funds. Before you decide to invest, it is important to
understand these risks. If you are unsure, please consult your
financial adviser.
Market risk
• The value of shares and the income from them can go down as
well as up.
Performance risk
• Past performance is not a guide to the future.
Inflation risk
• Inflation will, over time, reduce the spending power of your
investments.
Derivatives for hedging purposes
• The majority of the funds of the Aberdeen OEIC are permitted
to use derivates to hedge against various risks as permitted by
the regulations. The use of derivatives for hedging in a rising
market may restrict potential gains.
Tax
• The value of tax benefits depends on individual circumstances
and the favourable tax treatment for ISAs may not be
maintained. If you are a basic rate tax payer and you do
not anticipate any liability of Capital Gains Tax, you should
consider if the advantages of an ISA investment justify the
additional management cost/charges incurred.
WHAT ARE THE SPECIFIC RISKS ASSOCIATED WITH
THESE FUNDS
The Aberdeen OEIC funds have different investment objectives,
which define their areas of investment. The fund specific risks
highlighted below may also apply to your investment.
(A) Exchange Rates
Funds investing overseas can be affected by changes in
exchange rates which may cause the value of your investment
to decrease or increase.
In particular, this risk applies to the following funds:
Aberdeen American Equity Fund
Aberdeen Asia Pacific Fund
Aberdeen Asia Pacific & Japan Fund
Aberdeen Corporate Bond Fund
Aberdeen Emerging Markets Fund
Aberdeen Ethical World Fund
Aberdeen European Growth Fund
Aberdeen European Opportunities Fund
Aberdeen European Smaller Companies Fund
Aberdeen Japan Growth Fund
Aberdeen Managed Distribution Fund
Aberdeen Multi-Asset Fund
Aberdeen Property Share Fund
Aberdeen World Equity Fund
(B) Bond and Fixed Interest Funds
With funds investing in bonds there is a risk that interest rate
fluctuations could affect the capital value of investments.
Where long term interest rates rise, the capital value of shares
is likely to fall, and vice versa. In addition to the interest
rate risk, bond investments are also exposed to credit risk
reflecting the ability of the borrower (i.e. bond issuer) to meet
its obligations (i.e. pay the interest on a bond and return the
capital on the redemption date). The risk of this happening is
usually higher with bonds classified as ‘sub-investment grade’.
These may produce a higher level of income but at a higher
risk than investments in ‘investment grade’ bonds. In turn,
this may have an adverse impact on funds that invest in such
bonds.
In particular, these risks apply to the following funds:
Aberdeen Cash Fund
Aberdeen Corporate Bond Fund
(C) Charges taken from capital
Certain funds treat the generation of income as a higher
priority than capital growth; such funds may deduct their
management charge from your capital. This will increase the
amount of income available but at the expense of capital
growth.
4 Aberdeen UK OEIC Fund Range Simplified Prospectus, July 2009