Investment Fund Guide
A focus on world class investments

Contents

1. Introduction to Scottish Provident International
2. Investment Pedigree
3. Assessing Your Options
4. Finding the right solution
5. Fund Risk Ratings
6. Award Winning Performance
7. Managed Fund Range
8. Equity Fund Range
9. Specialist Fund Range
10. Bond Fund Range
11. Deposit Fund Range
12. Safeguard Funds
13. Important Notes

Introduction to Scottish Provident International

When planning for the future, today's discerning international investor will be looking for a company which has a proven investment track record and sound financial backing.

With Scottish Provident International, you can invest with confidence knowing that it is a wholly owned subsidiary of Abbey National plc, one of the top 6 banks** in the UK by market capitalisation, whilst the Abbey National Group serves some 15 million customers in the UK and overseas.

Scottish Provident International operates from the Isle of Man. Since it was established in 199 1, the company has enjoyed a period of strong growth, with funds under management in excess of £ 1 billion*.

Scottish Provident International is committed to providing both individual and corporate clients with an innovative range of investment, savings, retirement and protection solutions. Success has been built upon a continued commitment to investment excellence, innovative product design and providing clients and their advisers with the highest quality service.

As a base for international financial services, the Isle of Man provides a well established tax efficient financial centre with a reputation for security, confidentiality and political stability. Strict supervision of the activities of the insurance companies is exercised by the Isle of Man Government and comprehensive compensation arrangements are in place to further safeguard the interests of the international investor.

* Funds under management as at 1 st January 200 1.

** Source: Corporate Affairs - Abbey National plc, Baker St, London

Investment Pedigree

Scottish Provident International's name is established around the world for consistent investment performance spearheaded by its award winning range of managed funds*.

The company has carefully selected a range of equity, specialist, bond, deposit and risk rated managed funds to meet the needs and attitudes of clients around the world based on our fund management strengths in geographical areas.

Funds can be accessed through Scottish Provident International's range of international investment products. This allows clients to tailor investment strategies to suit their attitude whilst maintaining the flexibility to adjust these strategies when circumstances may change. Whatever a client's situation, the combination of Scottish Provident International's flexible products and fund range can provide the investment solution.

Scottish Provident International benefits from the investment expertise of Aberdeen Asset Management Limited.

The investment philosophy and approach of Aberdeen Asset Managers focuses on achieving "growth at a reasonable price". The stock selection criteria targets companies, on reasonable or low valuations, that are likely to deliver above average growth in earnings and dividends, over the long term.

The resources of Aberdeen deliver a strong presence in all of the key economic markets of the world. This global spread provides regional expertise, superior market knowledge and research to deliver consistent investment performance. This complements the global representation of Scottish Provident International to provide dedicated support in all key regions in which the company operates.

* Standard & Poor's Micropal Awards 2000, 1998, 1997, 1996 and 1995.

Assessing Your Options

The world of investment can present exciting and rewarding opportunities for international investors. However, we appreciate that selecting the most appropriate investments may appear to be a complicated process.

There is no definitive answer to structuring an investment portfolio - it is really a question of selecting those investments which meet the investor's own needs and requirements over the short, medium and longterm. The flexibility to review those investments as needs change is also essential.

Investors around the globe all face a similar dilemma, how to achieve optimum growth together with the comfort of knowing the initial investment and growth are secure. Unfortunately, as with many things in life, the perfect situation is difficult to achieve, and a suitable compromise needs to be made between security and the potential to maximise growth.

Security
For security, one of the best places to invest would be in a large deposit taking institution. Putting money there, the investor would be safe in the knowledge that both capital and any growth are secure. Unfortunately, this security can have a price in terms of lower investment returns. This may be even lower in real terms when the

effect of inflation is taken into consideration. Deposit based investments are suitable for money which is required in the short-term. But what about long-term performance?

Performance
To achieve higher levels of growth over the longer term, asset backed investments such as stocks and shares can provide the solution. These types of investment have consistently outperformed deposit based investments over the medium to long-term.* However, it must be recognised that potential higher investment returns are achieved as a result of investing in higher risk investments.

Solution
The solution, therefore, is to reach a balance between the potential growth and security of investment - whilst at the same time considering the investor's short and longer term financial needs. This compromise can vary from investor to investor as different individuals will have different attitudes to risk and reward. It is, therefore, necessary for each investor to be able to choose from a wide variety of investments which offer varying degrees of investment risk and potential returns. The fund range offered enables a suitable portfolio to be structured.

* Source: Standard & Poor's Micropal.

Finding the right solution

When building up a portfolio, it can be wise to spread the investment over a variety of funds - some which offer the required level of security and others which offer greater growth potential, creating the preferred balance between risk and reward.

As personal needs change or new investment opportunities arise, it is important for clients and advisers to be able to easily review the portfolio to ensure that the investor's objectives are still being met. With all of our plans, investors can easily switch between Scottish Provident International funds. Depending on which plan is selected, investors can switch up to 12 or 24 times per year free of charge.

To help the investor decide which fund or funds are most suitable for them, Scottish Provident International has given each fund a risklreward rating.

The funds have been allocated a rating of between one and five. Rating one relates to the more secure funds. Rating five covers the funds which offer the potential for the highest returns in our fund range, but at the same time have the highest degree of investment risk.

The risk reward rating is designed to give an indication of the weighting of each Scottish Provident International fund relative to the other funds we offer. It should not, however, be used in isolation as the investor's personal

circumstances need to be taken into consideration. Other factors such as investment term are also important.

For investors who prefer to leave it to the professionals, there is a range of Managed Funds graded adventurous, balanced and cautious. These funds may also be used as the core holding of a portfolio around which a range of other funds with different risk ratings can be added to build up the desired investment mix. For investors who have a particular interest in specific areas, the Scottish Provident International Equity and Specialist Funds provide a wide range of attractive investment opportunities.

Fund Risk Ratings

• Deposit (Sterling, US Dollar, Euro)    Low risk
  Building Society Deposit
  
  
• Cautious Managed   Low/Medium risk
  North American Bond
  European Bond
  UK Bonds
  Far Eastern Bond
  World Bond
  Safeguard
  
  
• Balanced Managed    Medium risk
  UK Blue Chip
  High Yield Bond
  
  
• Adventurous Managed    Medium/high risk
  UK Equity
  North American Equity
  European Equity
  japan Growth
  World Equity
  UK Mid Cap
  
  
• China Opportunities    High risk
  Far East (excluding Japan)
  Global Technology
  European Technology
  Global Emerging Markets
  India
  

The above risk ratings have been set by Scottish Provident International, having taken due account of the asset mix of each fund.

The risk ratings apply to investments made in the base currency of the funds and do not take into account any exchange rate fluctuations.

Award Winning Performance

The Managed Funds have consistently delivered award winning performance.

2000 Standard & Poor's Investment Funds
Performance Awards*
2nd over 1 and 5 years
Internationally Marketed Funds in Best Asset
Allocation Manager Category

1998 Standard & Poor's Micropal Awards*
3rd over 3 and 5 years
Cautious Managed (£) in Global Defensive Sector

3rd over 5 years
Balanced Managed (£) in Global Neutral Sector

1997 Standard & Poor's Micropal Awards*
1st over 3 years
Balanced Managed in Global Neutral Sector
1st over 5 years
Cautious Managed in Global Defensive Sector
1st over 5 years
Balanced Managed in Global Neutral Sector
1st over 5 years
Adventurous Managed (£) in Global Dynamic Sector

1996 Standard & Poor's Micropal Awards*
1st over 3 years
Balanced Managed (£) in Global Mixed Sector
1st over 5 years
Adventurous Managed (£) in Global Mixed Sector

1995 Standard & Poor's Micropal Awards*
1st over 3 years
Best mixed/balanced manager

There are two series of risk & reward graded Managed Funds.

Series 1 - This range of funds, launched in September 1991, is available on all plans except the International Investment Portfolio.

Series 2 -The Series 2 funds, launched June 1996, are only available on the International Investment Portfolio and the Technology Bond. These products are no longer available from Scottish Provident International, however, existing investors may use these funds. The underlying charge on the Series 2 funds is lower than that on the Series 1 funds, reflecting the costs associated with offering different products features and benefits and distributing products in certain geographical markets.

Both series of funds share the same investment objectives and strategies and hold the same assets.

The unit prices of both series of funds are published daily in the Financial Times.

* Based upon Series I Managed Funds in overseas territories sector.

Managed Fund Range

For investors wishing to gain exposure to a well diversified portfolio of funds, the Scottish Provident International Managed Funds offer a convenient solution. A managed fund is essentially a 'fund of funds' and our Managed Funds invest primarily into a selection of our own internal range of equity and bond funds.

The Managed Funds are classified by currency (US Dollar and Sterling) and by risk type, namely Cautious, Balanced and Adventurous. By categorising the funds in this way, investors can choose the managed fund which best reflects their attitude to risk. The Cautious funds, as their name suggests, tend to have a greater bias towards cash and bonds; the Adventurous funds are more equity orientated.

Our investment advisers to the Managed Funds are Aberdeen Asset Managers Limited, whose Managed Funds Committee meets frequently to discuss global asset allocation and investment strategy. The subsequent advice arising from these meetings determines exposure to the various world markets, in accordance with risk profile and investment objective of the particular Managed Fund.

Cautious Managed Funds
Investment Objective - These funds aim to provide a degree of capital security with scope for long term capital appreciation. Accordingly, these funds are designed for those investors who have a conservative attitude to risk.

Investment Strategy - The funds typically have a strong bias towards government and corporate bonds (both UK and international) and cash. Equity investment tends to focus on the major stockmarkets of the US, UK and Europe, with very limited exposure to the developing markets of Far East Asia and Latin America. The bondlequity mix will vary over time according to the Adviser's view of the investment markets but will at all times retain its low risk stance.

Balanced Managed Funds
Investment Objective - The Balanced Managed Funds combine bond funds with a larger proportion of equity funds with the objective of long term capital growth. Because of the greater focus on equity investment, these funds are slightly higher risk than their Cautious counterparts but still spread risk efficiently through a well diversified portfolio of assets.

Investment Strategy - The funds' broad mix of investment assets is designed to reduce the risks inherent in any one market. However, the Sterling Balanced Fund will retain a core holding in the UK Equity market while its US Dollar counterpart will maintain a greater bias towards the US Equity market. In both funds, the holdings are complemented by global equities, along with international bonds, with a higher level of exposure to the Far East and emerging markets.

Global asset allocation and weightings will change depending on our Advisers' view of prevailing world markets, while maintaining the funds' overall risk profile.

Adventurous Managed Funds
Investment Objective - These funds are designed for investors who are prepared to accept a higher degree of risk in return for the potential of greater capital appreciation. There is a mix of the main international equity funds.

Investment Strategy -The funds are geared towards long term capital growth. Equity investment will typically focus on the stockmarkets of the US, UK and Europe, with a significant proportion of the fund dedicated to the risker markets of japan, Far East and the developing world economies such as India, Latin America and Eastern Europe.

With a higher proportion of equity funds (and therefore a higher degree of risk), the Adventurous Managed Funds are actively managed to take full advantage of global investment opportunities as they arise.

Managed Fund Benchmarks
The Scottish Provident International Managed Funds are measured against named benchmarks, the Lipper Life Office Benchmark. This has selected classifications defined in accordance with the guidelines set down by the Association of British Insurers.

This has two purposes.
• It allows a fund to be constructed that can easily be compared to its peers. A strong comparison for performance measurement.
  
• Formalises investment strategy by providing the fund managers with a clear asset allocation model.
  
  
  • Sterling
    Cautious Managed Fund
    Cautious Managed Fund Sector
    Maximum 60% Equities inc convertibles
    Minimum 50% of Fund Value in Sterling Assets
    
    
    Balanced Managed Fund
    Balanced Managed Fund Sector
    Maximum 85% Equities inc convertibles
    Minimum 50% of Fund Value Sterling Assets
    
    Adventurous Managed Fund
    International Fund Sector
    Maximum 100% Equities
    Bias towards Sterling
    
    
    
  • Dollar
    Cautious Managed Fund
    Cautious Managed Fund Sector
    Maximum 60% Equities inc convertibles
    Minimum 50% of Fund Value in Dollar Assets
    
    
    Balanced Managed Fund
    Balanced Managed Fund Sector
    Maximum 85% Equities inc convertibles
    Minimum 50% of Fund Value in Dollar Assets
    
    Adventurous Managed Fund
    International Fund Sector
    Maximum 100% Equities
    Bias towards US Dollar
    

Equity Fund Range

World Equity Fund (USD) (Medium/high risk)
Investment Objective - The fund aims for capital appreciation from an internationally diversified portfolio of equities, mainly in the USA, the UK, Europe and the Far East.

Investment Strategy - The fund, while investing in the world's major stockmarkets, maintains a diverse geographic spread of investments including holdings in a number of emerging countries. This asset spread is based on the Morgan Stanley International Capital Index (MSCI World).

In the leading markets such as the USA, japan and Europe, individual country portfolios are relatively well diversified although emphasis is placed on themes in each market such as cyclical or interest rate sensitive stocks. In the emerging markets it is most likely that investment will concentrate on blue chip stocks.

North American Equity Fund (M) (Medium/high risk)
Investment Objective -The fund aims for capital growth from a portfolio of North American equities and invests in the USA - the world's largest economy with its strong tradition of free enterprise - and Canada with its wealth of energy and natural resources. The fund may also invest in Latin American markets.

Investment Strategy -The core philosophy of the fund is to invest in established companies, predominantly in the USA but also in Canada and Latin America. The fund

adviser will seek out companies whose product range, area of operation or management focus mark them out as having significantly above average potential.

As a result, individual stock selection is the key rather than a top-down emphasis on industries. Asset allocation is approximately 70% large cap, 20% small cap opportunity and 10% technology stocks.

European Equity Fund (EUR) (Medium/high risk)
Investment Objective - The fund aims for capital appreciation and invests, directly or otherwise, in a broad spread of European securities. This will include a selection of investments from the many different stock markets and will include companies of all sizes.

Investment Strategy - The fund is invested primarily in the major European stockmarkets, with selective exposure in a number of the smaller and emerging markets across the region.

The fund is well diversified and has exposure to a broad range of sectors offering potential for above average capital growth. The focus is on appropriate themes, such as defensive, interest sensitive or cyclical stocks, according to the underlying economic backdrop in each country. In the smaller markets, and particularly in the emerging markets, the fund concentrates on specific stock ideas.

UK Equity Fund (GBP) (Medium/high risk)
Investment Objective - The fund aims for long-term capital growth through investment, directly or otherwise, in a portfolio of UK companies. The balance between large 'blue chip', medium sized and smaller companies will reflect the investment climate and of their respective growth prospects.

Investment Strategy -The core philosophy of the fund is to seek out strong management in a broad selection of companies which offer excellent growth prospects for profits, earnings and dividends.

The portfolio is concentrated in a relatively small number of holdings so that the benefits of careful stock selection can be ultimately reflected in both superior income and capital performance.

Involvement at an early stage of a company's growth is desirable, hence the portfolio has a naturally heavy bias towards smaller/medium sized capitalisation stocks. However, a number of larger FTSE 100 stocks also fits this criteria of above-average growth, hence these are included in the fund.

UK Blue Chip Fund (GBP) (Medium risk)
Investment Objective - To provide an above average return by investing chiefly in a portfolio of well known UK companies, primarily constituents of the FTSE 100 Index and other companies considered to be 'blue chip'.

Investment Strategy -The underlying theme will be 'bottom up' and will place great importance upon stock selection whilst being aware of macro or' top down' influences.

The portfolio will maintain a relatively small number of companies, with the majority of the portfolio's value held in the 20 largest holdings, in order to benefit from good stock selection.

Although the fund will look for the solid and reliable qualities of blue chip companies, this does not mean that exciting and interesting opportunities cannot be found. In order to capitalise on such opportunities, up to 25% of the fund's value may be invested in constituents of the FTSE 250 Share Index. The lower capitalisation of such companies does not prevent them from having the attributes of a blue chip company and the aim is to select those that will display excellent earnings and dividend growth over the long-term.

Japan Growth Fund (USD) (Medium/high risk)
Investment Objective -The fund aims for capital growth by investing in Japanese equities.

Investment Strategy -The fund will invest in companies quoted on the 1st and 2nd sections of the Japanese Stockmarkets. The fund uses a 'bottom up' approach to stock selection, focusing on companies with positive earnings growth in order to achieve superior long-term performance.

Far East (excluding japan) Fund (USD) (High risk)
Investment Objective - Aims for capital growth by investing in a range of Asian and Pacific markets excluding japan.

Investment Strategy -The strategy of the fund is centred on the growth of the South East Asia and Pacific Rim areas. Thus the fund has a geographic diversification in an area of high volatility which is a key element in reducing single country risk.

Specialist Fund Range

Global Technology Fund (USD) (High risk)
Investment Objective - Aims for above average longterm capital growth from an international portfolio of equities involved in high technology industries, often at the frontiers of science. The USA is the prime area of investment, but japan and the UK are also important.

Investment Strategy -Technology is the key to improving productivity and to companies remaining competitive.

The strategy seeks to have a diversified portfolio across the main technology sub-sectors. The portfolio will be balanced between blue chip and smalllmedium sized company equities.

European Technology Fund (EUR) (High risk)
Investment Objective - The fund's investment objective is to maximise total return from investment in technology related companies which are either incorporated in Europe or whose securities are listed on a European Stock Exchange. The Fund may also invest in other technology related companies which derive significant profits from European operations. The base currency of the Fund is Euro.

Investment Strategy - Within this parameter the fund will have no pre-set sector or country weightings and will operate a highly concentrated portfolio. It will be a bottom up stock picking fund with a thematic overlay. The fund's adviser will be very alert to opportunities provided by takeover candidates and restructuring stories.

China Opportunities Fund (M) (High risk)
Investment Objective - Aims for capital growth by investing in companies which are domiciled in China or either invest in or trade with China.

As the stockmarkets in China develop, the fund will increasingly invest directly in companies which are domiciled in China.

Investment Strategy - The strategy of the fund is to use a process of stock selection which focuses on the positive growth prospects and the opening up of opportunities within China. Diversification is sought mainly throughout the Pacific Rim region in companies which either invest or trade with China, in order to reduce the element of risk normally associated with single countries at the development stage. In addition liquidity is considered a priority.

India Fund (USD) (High risk)
Investment Objective - The fund aims for capital appreciation through a spread of investments, directly and indirectly, in India.

Investment Strategy - A flexible approach to investment parameters is taken, in order to optimise growth potential and minimise risks typical of emerging market investment, specifically in relation to liquidity and settlement. The fund invests in Indian securities, global depository receipts and investment companies which derive significant revenue or profit from India.

Global Emerging Markets Fund (USD) (High risk)
Investment Objective - The fund aims to secure long term capital growth through investment in the smaller and emerging countries of the world.

Investment Strategy - Investments will be predominantly in key emerging markets. These include Asian Pacific and Latin American regions. In addition, there will be exposure to Eastern Europe, Africa and the Middle East.

The fund will seek to achieve above average returns through investment in a selection of investment funds. The asset allocation will ensure a consistent diversification across the main markets exploiting the opportunities available.

UK Mid Cap Fund (GBP) (Medium/high risk)
Investment Objective -The fund aims to maximise total equity return from equity investment, predominantly in the components of the FT-SE Mid 250 Index, although the advisers may select other UK listed equities which they believe will offer exceptional scope for appreciation.

Investment Strategy - Typically the fund will invest in an exciting combination of established, well run companies, alongside growing companies who have passed the point of being fledgling businesses. It will include newer technology based companies and companies with potential to enter the FT-SE 100.

Bond Fund Range

North American Bond Fund (USD) (Low/Medium risk)
Investment Objective - The fund aims to produce a steady rate of return over the medium to long-term from North American fixed interest markets.

Investment Strategy - The fund will invest primarily in the fixed interest markets of the USA, but a proportion may also be held in Canada.

World Bond Fund (USD) (Low/Medium risk)
Investment Objective - The fund aims to produce a steady rate of return over the medium to long-term from global fixed interest markets.

Investment Strategy - The fund will invest in fixed interest securities in the leading bond markets of the world including the UK, the rest of Europe, North America and the Far East. A proportion of the fund may also be invested in the 'emerging' bond markets around the globe.

The main strategy of the fund is to identify long-term movements in economic trends and position the fund so as to take maximum advantage of the different trends in interest rates in the economies of the world.

European Bond Fund (EUR) (Low/Medium risk)
Investment Objective - The fund aims to produce a steady rate of return over the medium to long-term from the European fixed interest markets.

Investment Strategy - The fund will invest, directly or otherwise, in the bond markets of Europe. The emphasis will be on the major markets including Germany and France, but the smaller markets within Europe such as those of the Scandinavian countries, may also be included whenever they are believed to offer attractive returns.

Far Eastern Bond Fund (USD) (Low/Medium risk)
Investment Objective - The fund aims to produce a steady rate of return over the medium to long-term from Far Eastern fixed interest markets.

Investment Strategy - The fund will invest in the bond markets of the 'Pacific Rim' countries, principally japan.

UK Bond Fund (GBP) (Low/Medium risk)
Investment Objective - The fund aims to produce a steady rate of return over the medium to long-term from the UK fixed interest market.

Investment Strategy - The fund will invest primarily in British Government securities known as gilts. However, other fixed interest securities, including corporate bonds will be used.

High Yield Bond Fund (GBP) (Medium risk)
Investment Objective -The fund aims to generate a high level of income from world-wide investment and in any economic sector, through a portfolio of high yielding international fixed interest securities.

Investment Strategy - The fund holds a diversified portfolio of securities with an emphasis on corporate bonds. The fund is actively managed. A value based approach to investment is employed focusing on high yield instruments. Whilst aiming for high income the fund also provides scope for capital growth through investing in convertibles, which provide equity-like exposure. The fund is non-distributing and all income is accumulated and reflected in the unit price.

Deposit Fund Range

Building Society Deposit Fund (GBP) (Low risk)
Investment Objective -The fund aims to provide steady capital appreciation within a secure environment over the medium to long-term.

Investment Strategy - The fund invests in offshore Building Societies - financial institutions which offer secure investment returns. The fund will invest in deposit taking institutions, predominantly building societies, although banks will also be used. Holdings will be principally offshore. The fund may invest in longer dated accounts offering higher rates of interest as well as instant access accounts. Interest accumulated within the fund enhances the unit price.

Deposit Fund (GBP, USD or EUR) (Low risk)
Scottish Provident International also offers three Deposit Funds which aim to offer a return in line with available money market interest rates.

These Deposit Funds offer the security of cash and other short-term financial instruments, such as certificates of deposit.

The three funds are:

• Dollar Deposit Fund (USD) - Invests in US Dollar denominated instruments.
• Sterling Deposit Fund (GBP) - Invests in Sterling denominated instruments.
• Euro Deposit Fund (EUR) - This fund currently invests in Euro denominated instruments.

Safeguard Funds

Investment objective - The Safeguard Funds aim to outperform the returns on deposit based investments whilst providing potential index linked growth. In doing so, Safeguard Funds protect your investment when markets fall.

Investment Strategy - The funds provide a choice of returns linked to the worlds three major stock markets: UK, US and japan. The funds are designed to participate in the performance of the relevant market index. However, they do not track the index.

Four times each year a fixed minimum bid price is set for a date three months later. For the UK and US funds, this fixed minimum price is always 97.75% of the bid price at the start of the quarter. This means that, no matter how the market performs, the value of investments will not have fallen more than 2.25% after the following three months. By resetting the protection level every three months, the fund benefits in two ways: there is a continuing limit to possible fails in value; and there is protection, or 'lock-in', of accumulated profits.

UK Safeguard Fund (GBP) (Low/Medium risk)
This fund relates to the FTSE 100 and has a 97.75% protection level.

US Safeguard Fund (USD) (Low/Medium risk)
This fund relates to the S&P500(r) and has a 97.75% protection level.

Important Notes

Aberdeen Asset Managers Ltd, a wholly owned subsidiary of Aberdeen Asset Management PLC, are investment advisers to Scottish Provident International.

It is important to know that unit prices reflect the value of the underlying assets of the funds. These can go down as well as up. Past performance is not necessarily a guide to future performance. Where a fund invests in overseas securities, the unit price may also rise and fall purely on account of exchange rate fluctuations.

Some policies are not available in certain jurisdictions such as South Africa, Hong Kong or the United States or its territories*. Nor is any policy being offered to citizens in the US or its territories*. If you become resident or a citizen in some jurisdictions, some aspects of a policy may have to be curtailed or modified to maintain compliance with local regulations. For example, if you purchase a policy and later become resident in the United States or its territories*, there will be restrictions placed on your policy while you are resident there. These include the inability to switch the funds placed with the Company among the investment options as otherwise permitted under the policy and the inability to make additional investments, which may affect the continued provision of any protection benefits.

Scottish Provident International is supervised by the Isle of Man Insurance and Pensions Authority. As a Scottish Provident International policyholder, the investor receives the protection of the Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991. The company reserves the right to adjust the returns from investments to cater for any levy or charge made against the company under these regulations or similar legislation.

Holders of policies issued by the company will not be protected by the UK Policyholders Protection Act 1975 if the company should be unable to meet its liabilities to them.

For the purposes of Section 57 of the UK Financial Services Act 1986, this document has been approved by Scottish Mutual Assurance plc, which is regulated by the Personal Investment Authority.

This leaflet should be read in conjunction with the appropriate Plan Brochure and Information Guide, which contain full details of the charges and are available from your adviser or Scottish Provident International.

"S&P 500(r)", "Standard & Poor's 500", and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Scottish Provident International Life Assurance Limited. The Products are not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard and Poor's makes no representation regarding the advisability of investing in the Product.

* United States territories refers to Puerto Rico, US Virgin Islands, Northern Mariana Islands, Guam, American Samoa, Wake Island and the Trust Territory (a group of islands in the South Pacific including the Marshall Islands).