CF 7IM Opportunity Funds - Seven Investment Management

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Charges and Expenses What will I pay for my investment? The Fund will have a single price at which the shares are bought and sold back to the ACD. The single price is based on the value of the total assets of the Fund, minus its liabilities. This is known as the Net Asset Value, or NAV, of the Fund. The value of one share is the total NAV divided by the number of shares in issue. This is calculated each Tuesday (or where that is not a business day the preceding business day) and the last business day of each month at 12 noon (London time). Your investment is subject to the following charges: A preliminary charge – Each time you make an investment into the A, B and C share classes the investment incurs a charge of 3%. Each time you make an investment into the D share class the investment incurs a charge of 5%. This is known as an initial charge and is illustrated as a percentage ‘%’ of your investment. How much will advice cost? If your professional adviser is charging a fee they will provide you with details relating to the cost of their advice. Your professional adviser (who may also be an <strong>Investment</strong> Manager of the Fund) may be entitled to initial commission from the ACD. This will be paid by the ACD from the initial charge or other resources. In addition, for as long as you hold your investment your professional adviser may be entitled to receive annual commission from the ACD based on the value of your investment. The commission will not be deducted from your investment. An annual management charge (AMC) – The AMC or ‘periodic charge’ as set out below is taken from the income the Fund. This is illustrated as a percentage ‘%’ of the NAV of the Fund. The AMC applying to each Share Class may (other than the D Share Class) vary between the standard annual management charge (‘Standard AMC’) and the discounted annual management charge (‘Discounted AMC’) depending on the rolling performance of the Fund. The performance of the Fund for this purpose will be based on the price (i.e. the Net Asset Value) of the C Share Class (‘Performance’). Please note that for the D Share Class the Standard AMC will always apply and there is no Discounted AMC. Details of the Standard AMC and the Discounted AMC are set out below. The Performance will first be measured on 31 December 2012 against the price of the C Share Class on the Fund’s launch. Thereafter it will be measured at quarterly intervals on the last business day of each quarter (i.e. 31 March, 30 June, 30 September and 31 December assuming they are business days). The price of the C Share Class as at a quarter end date will be compared against the price of the C Share Class as at the corresponding quarter end date in the previous year. Where Performance is positive over the period (i.e. the price of the C Share Class has increased over the period) the Standard AMC will apply to all Share Classes for the next quarter period. Where Performance is negative (i.e. the price of the C Share Class has decreased or the price is unchanged) the Discounted AMC will apply to A, B and C Share Classes for the next quarter period. The Standard AMC will apply from the date of launch of the Fund (30 January 2012) until 31 December 2012. The first measure of Performance will therefore occur on the last business day of December 2012. Please note that the Performance is based on the price of the C Share Class which has a lower Standard AMC than the A and B Share Classes. It is possible therefore that the Performance of the C Share Class may be positive but the performance of the A and B Share Classes may not be due to the impact of the higher annual management charge applicable to the A and B Share Classes. Therefore, in those circumstances, the Standard AMC will apply for the next quarter to each Share Class even though the performance of those Share Classes may not have been positive. Standard AMC Share Class Class A Class B Class C Class D Discounted AMC Share Class Class A Class B Class C Class D AMC 1.5% 2.0% 1.0% 0.25% AMC 1.25% 1.75% 0.75% 0.25% A redemption or exit charge – The Prospectus contains a provision entitling the ACD to deduct a charge on redemption of shares out of the proceeds of redemption. Currently the ACD makes no such deduction. 8
Charges and Expenses Dilution levy – The actual cost of purchasing, selling or switching underlying investments in the Fund may deviate from the mid-market value used in calculating its share price, due to dealing charges, taxes, and any spread between buying and selling prices of the Fund’s underlying investments. These dealing costs could have an adverse effect on the value of the Fund, known as ‘dilution’. In order to mitigate the effect of dilution the Regulations allow the ACD to make a dilution levy on the purchase, redemption or switch of shares in a fund. A dilution levy is a separate charge of such amount or at such rate as is determined by the ACD to be made for the purpose of reducing the effect of dilution. This amount is not retained by the ACD, but is paid into the Fund. The dilution levy is calculated by reference to the costs of dealing in the underlying investments of the Fund, including any dealing spreads, commission and transfer taxes. The need to charge a dilution levy will depend on the volume of purchases and redemptions. It is not possible to predict accurately whether dilution would occur at any point in time. The ACD’s policy is that it may require a dilution levy on the purchase and redemption of shares if, in its opinion, the existing shareholders (for purchases) or remaining shareholders (for redemptions) might otherwise be adversely affected. For example, the dilution levy may be charged in the following circumstances: where the scheme property of the Fund is in continual decline; on a fund experiencing large levels of net purchases relative to its size; on ‘large deals’ (typically being a purchase or redemption of shares to a size exceeding 5% of the Net Asset Value of the Fund); in any case where the ACD is of the opinion that the interests of existing or remaining shareholders require the imposition of a dilution levy. This policy is intended to mitigate the dilutive effect of Shareholder transactions on the future growth of the Fund. Based on future projections and on its experience of managing the Fund the ACD is unlikely to impose a dilution levy unless it considers that the dealing costs relating to a shareholder transaction are significant and will have a material impact on the Fund. If a dilution levy is required then, based on future projections, the estimated rate of such a levy would be up to 0.75% of the value of the transaction or transactions in question. The ACD, in its absolute discretion, may waive or reduce the dilution levy. The ACD may alter its current dilution policy in accordance with the procedure set out in the Regulations. How do charges and expenses affect your investment? The Reduction in Yield/Effects of Deductions table in the Appendix is an example illustrating growth, and the effects the total charges might have against that growth. These figures are not guaranteed and serve only to demonstrate the effect of charges and expenses on an investment. The effect of deductions on an investment of £5,000, assuming growth of 6% per year, is set out in the Appendix*. What you actually get back will depend on how your investment grows. You could get back more or less than the figures shown. <strong>Investment</strong>s held within an ISA may achieve a higher growth rate than those held outside such products because of their tax benefits. Additionally, inflation may reduce what you can buy in the future with the amount shown. Dealing costs are not included. All figures are estimated. *For Reductions in Yield/Effects of Deduction rates please see Appendix. Are there any other charges? There are other charges associated with the operation of the Fund, such as Depositary fees, custody fees and Registrar fees. Full details of these may be found in the Prospectus. In addition, there are costs associated with buying and selling assets in the Fund, which include broker commissions and government stamp duty. These are reflected in the Portfolio Turnover Rate, discussed in the Appendix. 9
Page 1 and 2: CF 7IM Opportunity Funds Simplified
Page 3 and 4: Introduction Authorised Corporate D
Page 5 and 6: Risk Factors What are the general r
Page 7: Risk Factors Emerging markets Emerg
Page 11 and 12: Your Investment Is this an appropri
Page 13 and 14: Your Investment What happens to my
Page 15 and 16: Appendix TABLES, CHARTS AND GRAPHS
Page 17 and 18: Terms and Conditions 7 Withdrawal,
Page 19 and 20: CF 7IM Opportunity Funds Investment
Page 21 and 22: CF 7IM Opportunity Funds ISA Applic
Page 23 and 24: CF 7IM Opportunity Funds ISA Transf
Page 25: Please fill in the whole form using

CF 7IM Opportunity Funds - Seven Investment Management

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