AVIVA INVESTORS INVESTMENT FUNDS ICVC

Annual Report and Financial Statements

For the year ended 15 October 2015



CONTENTS

Company Information* 2 Report of the Authorised Corporate Director* 3 Manager’s Market Review 4 Aggregated Statement of Total Return 5 Aggregated Statement of Change in Net Assets Attributable to Shareholders 5 Aggregated Balance Sheet 6 Notes to the Aggregated Financial Statements 7 Aviva Investors UK Equity Fund 15 Aviva Investors UK Equity Income Fund 29 Aviva Investors UK Growth Fund 45 Aviva Investors UK Index Tracking Fund 60 Aviva Investors UK Smaller Companies Fund 85 Aviva Investors Cash Fund 100 Aviva Investors Corporate Bond Fund 113 Aviva Investors Distribution Fund 128 Aviva Investors High Yield Bond Fund 145 Aviva Investors Higher Income Plus Fund 161 Aviva Investors Managed High Income Fund 181 Aviva Investors Monthly Income Plus Fund 201 Aviva Investors Strategic Bond Fund 222 Aviva Investors European Equity Fund 239 Aviva Investors International Index Tracking Fund 251 Aviva Investors Global Equity Income Fund 302 Aviva Investors Multi-Strategy Target Return Fund 316 Statement of the Authorised Corporate Director’s Responsibilities* 333 Authorised Corporate Director’s Statement* 333 Statement of the Depositary’s Responsibilities and Depositary’s Report to the Shareholders 334 Independent Auditors’ Report to the Shareholders of Aviva Investors Investment Funds ICVC 335 General Information 337

* These items comprise the Manager’s Report for the purposes of the rules contained in the Collective Investment Schemes Sourcebook (“the Regulations”).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 1 Company Information

COMPANY INFORMATION

AUTHORISED CORPORATE DIRECTOR INVESTMENT MANAGER Aviva Investors UK Fund Services Limited Aviva Investors Global Services Limited No. 1 Poultry No.1 Poultry London, EC2R 8EJ London, EC2R 8EJ Aviva Investors UK Fund Services Limited (the ACD) is a wholly Aviva Investors Global Services Limited is a member of the owned subsidiary of Aviva Investors Holdings Limited, a company Investment Association and is authorised and regulated by the incorporated in the United Kingdom and within the Aviva Financial Conduct Authority. The ultimate parent company of Group of Companies. The ACD is a member of the Investment Aviva Investors Global Services Limited is Aviva Plc. Association and is authorised and regulated by the Financial Conduct Authority. TRUSTEE AND DEPOSITARY DIRECTORS Citibank Europe plc, UK Branch Citigroup Centre T R Orton (resigned 27 February 2015) Canada Square, Canary Wharf P Neville (resigned 30 June 2015) London, E14 5LB I K Buckle On 1 January 2016, the Trustee and Depositary, Citibank E E Potter (resigned 19 October 2015) International Limited, was replaced by Citibank Europe plc, UK J Misselbrook Branch. All legal obligations, personnel and resources of Citibank D Dahan International Limited were transferred to Citibank Europe plc, UK S Ebenston (appointed 17 December 2014) Branch. Citibank Europe plc, UK Branch, has the same substance C Abrahams (appointed 1 July 2015, resigned 31 December 2015) and capability as Citibank International Limited. Citibank Europe plc, UK Branch, is registered at Citigroup Centre, 25 Canada Square, Canary Wharf, London, E14 5LB. Citibank ADMINISTRATOR AND REGISTRAR Europe plc is authorised and regulated by the Central Bank of International Financial Data Services (UK) Limited Ireland, however, the UK branch is subject to Financial Conduct IFDS House Authority (FCA) regulation. St Nicholas Lane Basildon Essex, SS15 5FS INDEPENDENT AUDITORS PricewaterhouseCoopers LLP 7 More London Riverside London, SE1 2RT PricewaterhouseCoopers LLP have been reappointed as auditors of the Company.

2 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Report of the Authorised Corporate Director

REPORT OF THE AUTHORISED CORPORATE DIRECTOR

THE COMPANY CHANGES TO THE PROSPECTUS Aviva Investors Investment Funds ICVC (“the Company”) is an On 13 January 2015 share class 2 (income) shares were launched Open-Ended Investment Company (OEIC) with variable capital on the Aviva Investors Cash Fund. incorporated in England and Wales on 9 September 1998. The On 15 January 2015, as advised in a letter to investors dated property of the Company is entrusted to Citibank Europe plc, UK 12 November 2014, the investors in share class 1 of the Aviva Branch (“the Depositary”). The shareholders are not liable for any Investors Cash Fund were transferred to share class 2 of the same debts of the Company. fund. Share class 1 was then closed. The object of the Company is to invest the scheme property On 15 January 2015, the following changes were made to the in transferable securities, money market instruments, units in Aviva Investors Cash Fund: collective investment schemes, deposits and derivatives and forward transactions in accordance with the COLL Sourcebook – the wording of the investment objective was amended to with the aim of spreading investment risk and giving its remove reference to a ‘high level of income’. shareholders the benefit of the results of the management of – the performance indicator was changed from a gross yield of that property. 0.25% above the Bank of England Base Rate to a gross yield equivalent to the Bank of England Base Rate. The Company has an umbrella structure which means that it – the wording of the Prospectus in accordance with COLL 4.2.5 contains many sub-funds, each with a different investment R (5) (d) was amended to give the ACD the power to convert objective. In the financial statements you will find an investment investors’ shares into an alternative class, without instruction, review for each sub-fund which includes details of the investment where the existing share class is subject to closure. objectives. There are currently 17 sub-funds in the Aviva Investors Investment Funds ICVC. On 16 January 2015 the investors of the Aviva Investors UK Income and Growth Fund voted in favour of the Fund merging into Aviva Investors UK Equity Income Fund, also part of the Aviva Investors Investment Funds ICVC. The merger took place on AUTHORISED STATUS Friday 30 January 2015 and the Aviva Investors UK Income and From 9 September 1998 the Company has been authorised Growth Fund terminated on 14 October 2015. as an Open-Ended Investment Company under Regulation 7 On 30 July 2015 share class 3 (accumulation) was closed on the of the Open-Ended Investment Companies Regulations 1996 Aviva Investors UK Growth Fund. (superseded by Regulation 12 of the Open-Ended Investment Companies Regulations 2001). On 1 October 2015 share class 8 (accumulation) shares were launched on the Aviva Investors Multi-Strategy Target Return Fund. THE FINANCIAL STATEMENTS The Aviva Investors Blue Chip Tracking Fund terminated on 14 October 2015. We are pleased to present the annual financial statements The Aviva Investors Balanced Managed Fund terminated on of the Company for the year ended 15 October 2015. The 14 October 2015. financial statements have been prepared on an aggregated basis including all sub-funds as permitted by the Regulations. As required by the Regulations, information for each of the sub- SIGNIFICANT INFORMATION funds has also been included in these financial statements. On Changes to FCA rules on Delivery Versus Payment (DVP) the following pages we review the performance of each of those exemption from 1 June 2015 sub-funds during the year. We hope that you find our review Client Assets regulations require that we protect money useful and informative. belonging to investors in a dedicated client money account to ensure it is not used for our own account and that it is safe in the unlikely event we become insolvent. Changes have been ANNUAL GENERAL MEETINGS made to the rules we follow to improve the protection given to investors’ money while it is not invested. For money held in The Company will not be holding Annual General Meetings. relation to a direct investment in a collective investment scheme provided by Aviva Investors UK Fund Services Limited, the FCA grant an exemption, known as the Delivery Versus Payment (DVP) exemption, from the regulations requiring protection at all times. We previously made use of this exemption which means that we had three business days to deal with investors’ money in accordance with their instructions before having to transfer it to a protected client money account. From 1 June 2015, the maximum period during which we were allowed to hold investors’ money in a non-client money account under the DVP exemption was reduced from three business days to one business day. We adopted this reduction early and from April 2015 the maximum period that uninvested money was held in non- protected accounts is one business day, unless the investment is settled via a Commercial Settlement System (such as EMX or Clearstream) in which case it will continue to be three business days. For further details please refer to the Prospectus.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 3 Manager’s Market Review

MANAGER’S MARKET REVIEW

EQUITY MARKET REVIEW FIXED INCOME – CORPORATE AND HIGH-YIELD Global equities advanced, boosted by loose monetary policy BONDS and strengthening economic data. European equity markets Sterling corporate bonds posted positive returns, underpinned responded positively as the European Central Bank commenced by a rise in underlying UK government debt, as plummeting its long-awaited asset purchase programme in the spring, while oil prices lowered inflation expectations. Gilt prices rose as the Japanese market was underpinned by the weakness of the UK inflation plunged to its lowest level on record. And bonds yen and lower energy prices, which boosted corporate profits. were further bolstered after the European Central Bank said it But markets fell sharply towards the end of the review period, will begin ‘quantitative easing’. However, credit spreads – the undermined by both mounting worries over China’s economy difference between government and corporate bond yields – and the prospect of a US interest rate hike. The smaller Asia widened as investors grew more concerned about companies’ Pacific markets have struggled as the release of disappointing ability to repay debt amid a surge in global bond issuance. Chinese economic indicators intensified concerns over the Uncertainty generated by ongoing negotiations between Greece regional growth prospects. and its creditors weighed on markets, as did plunging commodity prices and turmoil in emerging markets. November 2015 Source of market data: FactSet, Bloomberg Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities.

4 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Financial Statements

AGGREGATED STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains 4 200,533 73,059

Revenue 5 280,832 266,996

Expenses 6 (40,116) (38,833)

Finance costs: Interest 8 (22) (42)

Net revenue before taxation 240,694 228,121

Taxation 7 (2,235) (1,875)

Net revenue after taxation 238,459 226,246

Total return before distributions 438,992 299,305

Finance costs: Distributions 8 (245,372) (233,107)

Change in net assets attributable to shareholders from investment activities 193,620 66,198

AGGREGATED STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 6,798,203* 6,528,284

Amount transferred from Aviva Investors Blue Chip Tracking Fund – 50,628

Amount transferred to Aviva Investors Multi-asset Fund III – (61,787)

Amount transferred to Aviva Investors UK Index Tracking Fund – (50,628)

Amount transferred from Aviva Investors UK Income & Growth Fund 39,896 –

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 1,255,902 768,794

Amounts payable on cancellation of shares (1,033,249) (479,535)

222,653 289,259

Dilution levy 1,975 485

Stamp duty reserve tax – (323)

Change in net assets attributable to shareholders from investment activities (see above) 193,620 66,198

Retained distribution on accumulation shares 51,186 46,575

Final amount due to investors – (2)

Unclaimed distribution monies 49 26

Closing net assets attributable to shareholders 7,307,582 6,868,715

* The opening net assets do not agree to the closing net assets at 15 October 2014 as the Aviva Investors UK Income & Growth Fund (£70,512), Aviva Investors Blue Chip Tracking Fund and Aviva Investors Balanced Managed Fund are not included in the report due to the Funds being terminated on 14 October 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 5 Financial Statements

AGGREGATED BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 7,179,354 6,712,675

Debtors 7 100,865 99,920

Cash and bank balances 8 176,689 153,875

Total other assets 277,554 253,795

Total assets 7,456,908 6,966,470

LIABILITIES

Investment liabilities (33,093) (15,453)

Creditors 9 (65,897) (29,781)

Bank overdrafts – (21)

Distribution payable on income shares (50,336) (52,500)

Total other liabilities (116,233) (82,302)

Total liabilities (149,326) (97,755)

Net assets attributable to shareholders 7,307,582 6,868,715

6 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS

1 ACCOUNTING POLICIES Revenue received from Collective Investment Schemes (CIS) is recognised when the CIS is quoted ex-dividend. Equalisation a Basis of accounting received as part of the revenue from CIS is deducted from the All the financial statements have been prepared under cost of the investment. the historical cost basis, as modified by the revaluation of investments, and in accordance with the Prospectus, applicable d Treatment of derivatives standards in the UK and with the Statement of Recommended In determining the accounting treatment for derivatives, Practice (SORP 2010) relating to Authorised Funds issued by the consideration is given to the instrument itself and the sub-funds’ Investment Management Association (IMA) in October 2010. objectives for investment in derivative instruments. Where positions are held to protect capital, the returns are treated The financial statements of all sub-funds have been aggregated as capital. Where positions are held to generate revenue, the and thus the financial statements of the Company have been returns are treated as revenue. Where positions generate total presented on an aggregated basis. returns, these returns are apportioned between capital and revenue to properly reflect the nature of the transaction. b Share classes The sub-funds have three types of share classes; retail shares The revenue element in respect of futures is calculated by (classes 1, A, 2*, 4 and 6), institutional shares (classes 2* and R3) reference to the quoted yield of the relevant index compared and shares held by associated undertakings of Aviva Plc (classes to LIBOR. This revenue element will either be revenue or an 3, 5 and 8). Each class bears different charges and consequently expense, depending on whether the position held is “long” or the level of revenue allocated to each share class will differ. Some “short”. share classes consist of accumulation shares only, some consist of Premiums received on options are treated as revenue or capital income shares only, whilst others consist of both accumulation depending on the motives and circumstances of the transaction. and income shares. * For the Aviva Investors Cash Fund only, share class 2 has been e Underwriting commission deemed to be a retail share class, rather than an institutional Underwriting commission is accounted for when the issue share class. underwritten takes place and is normally taken to revenue. Where the Company is required to take up all the shares Share class 1 of the following funds is priced in accordance with underwritten, the commission received is treated as a deduction the CAT standard (Charges, Access, Terms standard). from the cost of the shares taken up. Where the Company is – Aviva Investors UK Equity required to take up a proportion of the shares underwritten, – Aviva Investors UK Equity Income the same proportion of the commission received is treated as a – Aviva Investors UK Growth deduction from the cost of shares taken up and the balance is – Aviva Investors UK Index Tracking taken to revenue. – Aviva Investors Higher Income Plus – Aviva Investors European Equity f Basis of valuation of investments – Aviva Investors Corporate Bond Quoted investments With the exception of the Aviva Investors UK Index Tracking Fund, The quoted investments of the Company have been valued the total charges borne by share class 1 in these funds are limited at bidmarket value at midday on the last working day of the to the ACD’s periodic charge, which will be no more than 1% per accounting period with the exception of Aviva Investors UK Index annum. All other expenses for share class 1 are rebated by the Tracking Fund which was valued at bidmarket value at 5 p.m. ACD. In respect of the Aviva Investors UK Index Tracking Fund, Unquoted and unapproved investments additional expenses may be levied against share class 1, although The unquoted and unapproved investments of the Company the total charges borne by the share class will not exceed 1% per have been valued by the Investment Manager using available annum at any time. information to arrive at an estimated fair value. With the exception of the Aviva Investors UK Index Tracking Suspended securities Fund, share class 1 in these funds has been closed to new Suspended securities have been valued at the suspended market investment from 3 March 2003 and all new retail investments are price per share or valued by the Investment Manager using shown in the share class A. This is not a CAT standard class and available information to arrive at an estimated fair value. hence the total charges borne by the share class may exceed 1%. Delisted securities The expenses of share class A of Aviva Investors UK Index Delisted securities have been valued at nil pence per share. Tracking Fund are limited to the ACD’s periodic charge. All other expenses for this share class are rebated by the ACD. Forward foreign currency contracts The Company’s forward foreign currency positions on the The expenses of share classes 2, 5 and 6 of the Aviva Investors last working day of the accounting period are included in the Multi-Strategy Target Return Fund are limited to the ACD’s portfolio statement as an asset or liability so as to reflect the periodic charge and the registration fee. All other expenses for value of the aggregate positions in each currency. these share classes are rebated by the ACD. Over the counter (OTC) derivatives c Recognition of revenue OTC derivatives are either valued by the relevant counterparty or Dividends are recognised when the investment is quoted by the investment manager using available information to arrive ex-dividend. at an estimated fair value. Interest arising on fixed interest stocks is recognised on an effective yield basis. Deposit interest and other revenues are recognised on an accruals basis.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 7 Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

1 ACCOUNTING POLICIES (continued) 3 FINANCIAL INSTRUMENTS Exchange traded derivatives (ETDs) The Company’s financial instruments, other than derivatives, ETDs are included at the aggregate unrealised market value of comprise securities and other investments, cash balances and the open contracts. debtors and creditors that arise directly from its operations, for example, in respect of sales and purchases awaiting settlement, CIS investments amounts receivable for creations and payable for liquidations, CIS investments are valued at the last sale price available at the and debtors for accrued income. valuation point. The Company also enters into derivative transactions in the g Exchange rates form of forward foreign currency contracts, credit default swaps, Assets and liabilities held in foreign currencies are translated interest rate swaps, equity variance swaps, options and stock at the rate ruling at midday on the last working day of the index futures. The Aviva Investors Multi-Strategy Target Return accounting period for all sub-funds except for the Aviva Investors Fund uses these financial instruments as a cheaper or more liquid UK Index Tracking Fund which is translated at 5 p.m. Income and alternative to other investments, to hedge or reduce overall risk, expenditure items are translated at the rate ruling at the date of or in pursuit of its investment objectives. All other sub-funds the transaction. use these financial instruments for the purposes of efficient portfolio management. In particular, forward foreign currency h Taxation and deferred taxation contracts are used to manage currency risk arising from holdings Provision for Corporation Tax is based at the current rate, as of overseas securities. Stock index futures are used to manage appropriate, on the excess of taxable revenue over allowable market price risk arising from the time lag between funds expenses and takes into account taxation deferred because being receivable or payable by the Company and investment or of timing differences between the treatment of certain items disinvestment in underlying securities. for taxation and accounting purposes. Deferred taxation is provided using the liability method on all timing differences, Interest rate swaps and swaptions are generally held to mitigate and is calculated at the rate at which it is anticipated the timing exposure to interest rate movements which could adversely affect differences will reverse. Deferred tax assets are recognised only the value of bonds held within the fund portfolios. Credit default when, on the basis of available evidence, it is more likely than not swaps are used to manage credit risk through selling protection. that there will be taxable profits in the future against which the Interest and finance charges from interest rate swaps are taken deferred tax asset can be offset. to revenue. The premiums from credit default swaps are taken to i Unclaimed distributions revenue. The gains and losses on interest rate swaps and credit Any distribution remaining unclaimed after a period of six years is default swaps are taken to capital. paid back to the relevant sub-fund and forms part of the capital In accordance with requirements set out in the Collective property of the sub-fund. Investment Schemes Sourcebook of the Financial Conduct Authority, such scheme transactions must be economically 2 DISTRIBUTION POLICIES appropriate, any exposure must be fully covered and the transactions must be entered into with the aim of reducing risk a Distribution policy and/or costs and/or generating additional capital or revenue for Where appropriate the Company will pay any surplus revenue the scheme with no, or an acceptably low level of risk. as a revenue distribution or accumulation to capital. The The Company’s use of financial instruments satisfies these following sub-funds were more than 60% invested in qualifying requirements and no trading in financial instruments is investments and so have proposed interest distributions: undertaken. The Company has exposure to a number of different – Aviva Investors Higher Income Plus Fund risks to varying degrees. The main risks it faces from its financial – Aviva Investors Managed High Income Fund instruments and the Manager’s policies for managing these risks – Aviva Investors Monthly Income Plus Fund are summarised below: – Aviva Investors Distribution Fund – Aviva Investors Corporate Bond Fund a Foreign currency risk – Aviva Investors Cash Fund The sub-funds can be exposed to foreign currency risk as a result – Aviva Investors High Yield Bond Fund of investing in assets denominated in currencies other than – Aviva Investors Strategic Bond Fund Sterling. Where the manager deems it necessary, this exposure to foreign currency fluctuations is mitigated by the use of forward All other sub-funds have proposed dividend distributions. Full foreign currency contracts. Numerical disclosures can be found in details are set out in the distribution tables. the notes to the financial statements for each sub-fund. b Treatment of stock dividends b Interest rate risk The ordinary element of stock dividends is treated as revenue and The value of debt securities may be affected by interest rate forms part of the sub-fund’s distribution. The value of the stock movements or the expectation of such movements in the future. dividend is based on the market value of the shares on the dates Interest receivable on bank deposits or payable on bank overdraft they are quoted ex-dividend. Where an enhancement is offered, positions will be affected by fluctuations in interest rates. The the amount by which the market value of the shares (on the date Manager manages this risk by maintaining a balanced portfolio they are quoted ex-dividend) exceeds the cash dividend is treated with due consideration to interest rate and redemption profiles. as capital. Interest rate risk is also managed by ensuring that deposits mature within a relatively short period. Numerical disclosures c Treatment of management expenses can be found in the notes to the financial statements for each All expenses are charged to revenue on an accruals basis. For the sub-fund. purposes of the distribution, 100% of the ACD’s periodic charge of the Aviva Investors UK Equity Income Fund and the Aviva Investors Global Equity Fund, and 50% of the ACD’s periodic charge of the Aviva Investors Distribution Fund, is deducted from capital.

8 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

3 FINANCIAL INSTRUMENTS (continued) c Market risk The sub-funds’ investment portfolios are exposed to market price fluctuations which are monitored by the Manager in pursuance of the investment objectives and policies of the sub-funds. Adherence to investment and borrowing powers set out in the Instrument of Incorporation and in the Collective Investment Schemes Sourcebook of the Financial Conduct Authority, mitigates the risk of excessive exposure to any particular type of security or issuer. Further information on the investment portfolios is set out in the investment reports and portfolio statements, of the individual sub-funds. d Credit risk The sub-funds restrict their exposure to credit losses on derivative instruments by trading via international Swap and Derivative Association (ISDA) Master Arrangements with each counterparty. e Liquidity risk This is the risk that there is insufficient liquidity which restricts a sub-fund’s investment opportunities or ability to pay liabilities at short notice. This risk is managed by ensuring that overdrafts are monitored and maintained within investment limits and exposure to unquoted or illiquid securities is limited. f Counterparty Risk There is a risk that the Counterparty will not be able to settle its obligations under the agreement. This is mitigated by an assessment of the credit worthiness of the Counterparty, and the use of multiple counterparties to ensure that no more than 20% of the fund value is exposed to one counterparty. Further information on the investment portfolio is set out in the investment reports and portfolio statements.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 9 Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

4 Net capital gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains on investments during the year comprise:

Currency losses (3,967) (3,464)

Derivative contracts gains/(losses) 7,208 (7,420)

Expenses relating to the purchase and sale of investments (116) (93)

Forward currency contracts gains 22,293 15,697

Non-derivative securities gains 175,115 68,339

Net capital gains 200,533 73,059

5 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 407 543

Interest on debt securities 179,736 168,824

Interest on derivatives (1,793) (1,110)

Overseas dividends 22,871 22,121

Property income distributions 392 304

Revenue from offshore funds 2,324 715

Stock dividends 236 421

UK dividends 76,570 75,170

Underwriting commission 89 8

Total revenue 280,832 266,996

10 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

6 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD's periodic charge 37,091 36,117

Registration fees 1,435 1,130

38,526 37,247

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 528 416

Dividend collection charges 6 6

Safe custody fee 565 655

1,099 1,077

Other expenses:

Audit fee* 179 220

Broker fees 1 –

FTSE® Index Tracker Fund licence fee 189 184

Printing & postage expenses 91 118

Professional fees – 1

Statement fees 301 243

761 766

Total expenses 40,386 39,090

Less those expenses rebated by the ACD (270) (257)

Net expenses 40,116 38,833

* The audit fee was £144,526 (2014: £143,813) net of VAT.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 11 Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

7 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Corporation tax 263 10 Overseas tax suffered 1,984 1,865 Overseas tax written back (12) – Total current tax for the year (see note 7.b) 2,235 1,875 b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 240,694 228,121 Corporation tax at 20% 48,139 45,621 Effects of: Movement in excess expenses 3,322 3,532 Non-trade deficit – 8 Overseas dividends not subject to corporation tax (4,489) (3,973) Overseas tax suffered 1,984 1,865 Overseas tax written back (12) – Revenue taxable in different periods (2) (1) Stock dividends not taxable (45) (83) Tax deductible on interest distributions (31,430) (30,068) UK dividends not subject to corporation tax (15,232) (15,019) Tax relief on overseas tax expensed – (7) (45,904) (43,746) Current tax charge (see note 7.a) 2,235 1,875 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no unprovided deferred tax (2014: £nil).

12 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

8 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distributions 78,381 73,900 Distribution for the six months ended 15 April 80,255 79,808 Distribution for the six months ended 15 October Dividend distributions Distribution for the six months ended 15 April 37,723 33,576 Distribution for the six months ended 15 October 48,594 46,995 244,953 234,279 Add: Revenue deducted on cancellation of shares 5,069 2,334 Deduct: Revenue received on issue of shares (4,650) (3,506) Finance costs: Distributions 245,372 233,107 Finance costs: Interest on bank overdrafts 22 42 Total finance costs 245,394 233,149 Reconciliation of net distribution for the year to net revenue after taxation Distributions for the year 245,372 233,107 ACD's periodic charge borne by the capital account (6,842) (6,787) Equalisation on conversions (35) (19) Movement in revenue account – (17) Professional fees borne by the capital account – (3) Revenue deficit transferred to capital (80) (35) Tax relief on capitalised ACD’s periodic charge 45 – Undistributed revenue carried forward (1) – Net revenue after taxation 238,459 226,246

9 Debtors

Year ended Year ended 15.10.15 15.10.14 £000 £000 Accrued revenue 76,625 73,378 Amounts receivable on issue of shares 12,287 5,239 Corporation tax recoverable 69 69 Income tax recoverable 1 825 Overseas tax recoverable 614 893 Sales awaiting settlement 11,269 19,516 Total debtors 100,865 99,920

10 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 33,015 8,311 Cash and bank balances 143,674 114,164 Deposits – 31,400 Cash and bank balances 176,689 153,875

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 13 Notes to the Aggregated Financial Statements

NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

11 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 5,666 5,449 Amounts payable for cancellation of shares 6,166 6,126 Corporation tax payable 263 10 Income tax payable 11,324 – Final amount due to investors – 2 Income tax withheld on distributions 3,139 6,825 Purchases awaiting settlement 39,339 11,369 Total creditors 65,897 29,781

12 Contingent liabilities and commitments The numerical disclosures for contingent liabilities and commitments are shown within each individual sub-fund.

13 Related party transactions The numerical disclosures for Related party transactions are shown within each individual sub-fund.

14 Portfolio transaction costs The numerical disclosures for Portfolio transaction costs are shown within each individual sub-fund.

15 Post balance sheet events Disclosures for post balance sheet events are shown within each individual sub-fund.

14 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

AVIVA INVESTORS UK EQUITY FUND

INVESTMENT OBJECTIVE The outlook for UK equities remains moderately favourable, despite the recent setback. The economic landscape is improving Long term capital appreciation and income. in much of the ‘developed’ world and this should enable companies to continue growing profits and hence dividends. Furthermore, with inflation subdued it looks like global monetary INVESTMENT POLICY policy is set to stay extremely loose. But on a note of caution, we are keeping a close eye on events in China which have the Diversified investment within the UK equity market. Individual potential to sour the global economic situation. security selections will be based on price and long term total return prospects. November 2015

The Fund may invest in any of the following financial instruments Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income in order to achieve its investment objective: transferable reinvested in GBP, with no initial charges applied. Market data – Bloomberg. securities, money market instruments, units in collective Any opinions expressed are those of the fund manager. They should not be viewed as a investment schemes, deposits and derivatives and forward guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not transactions. a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept FUND MANAGER’S REPORT any liability in relation to its Issue, operation and trading. All copyright in the index values and constituent list vests in FTSE. Over the 12 months ended 15 October 2015, the Aviva Investors UK Equity Fund delivered a total return of 12.04 per cent (share Material Portfolio Changes class A), net of fees, compared with an average return of 10.28 Purchases Sales per cent for its peer group, the Investment Association UK All Companies sector. The FTSE® All-Share Index, the Fund’s BCA Marketplace plc Diageo Plc benchmark, returned 8.37 per cent. Worldpay Group plc Capita Plc

Stakes in Sage, Carnival and ITV helped relative performance. Lloyds Banking Group plc BHP Billiton plc Accounting software firm Sage climbed after confirming it was on track to meet 2015 targets due to robust growth in revenues Ashtead Group plc Rio Tinto plc and profits. Shares in Carnival rose after the cruise ship operator GlaxoSmithKline plc AVEVA Group plc upgraded second-quarter earnings partly due to lower-than- expected fuel costs. ITV performed well as investors welcomed Prudential plc Pearson Plc its takeover of Twofour Group, as the acquisition will significantly BG Group plc Melrose Industries plc expand ITV’s programme making. Other contributors included a new position in BCA Marketplace, Europe’s largest second-hand BT Group plc Tesco Plc car auctioneer. The company gave a positive trading update Reckitt Benckiser Group plc Legal & General Group plc during the summer, with encouraging comments from the new Telecom Plus plc De La Rue plc management team on long-term earnings prospects. Energy and mining stocks were under pressure as a slump in oil and metal prices continued. However, stock selection in both sectors was positive largely due to the Fund’s avoidance of oil major Royal Synthetic Risk and Reward Indicator Dutch Shell and mining firm Glencore. Lower risk Higher risk Stagecoach and BBA Aviation were significant detractors. Rail and bus operator Stagecoach struggled after cautioning that profits from its UK and US bus operations would disappoint. Typically lower rewards Typically higher rewards Flight support company BBA Aviation flagged that its ground- 1 2 3 4 6 7 handling business is under pressure and reported lacklustre 5 interim results. The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk Aside from BCA Marketplace, new positions included Fevertree number has been based on the historic volatility of the asset classes appropriate Drinks, a producer of premium tonic water. We trimmed to the Fund. banknote-printer De La Rue and added to pharmaceutical giant – This indicator is based on historical data, calculated using European Union GlaxoSmithKline. rules, and may not be a reliable indication of the future risk profile of the Fund. – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 15 Aviva Investors UK Equity Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 153,796 158,651,400 96.94 Class 1 2010 79.00 65.53

15.10.14 139,746 150,409,203 92.91 2011 83.60 69.31

15.10.15 145,153 141,720,417 102.42 2012 86.15 75.14

Class 2 15.10.13 3,058 2,572,585 118.86 2013 101.84 85.30

15.10.14 13,678 12,010,081 113.89 2014 104.61 89.94

15.10.15 10,537 8,392,714 125.55 2015*** 111.65 97.97

Class 3 15.10.13 60,609 31,516,024 192.31 Class 2 2012** 104.00 98.45

15.10.14 59,406 32,247,711 184.22 2013 124.91 104.69

15.10.15 66,215 32,605,856 203.08 2014 128.33 110.25

Class A 15.10.13 33,949 26,758,468 126.87 2015*** 136.89 120.13

15.10.14 22,347 18,376,015 121.61 Class 3 2010 156.99 130.28

15.10.15 12,973 9,677,153 134.06 2011 166.16 137.86

* Valued at bid market prices. 2012 171.37 149.19

2013 202.31 169.46 Net Asset Value – Accumulation Shares 2014 208.02 178.32 Net asset value* Shares Pence per 2015*** 221.58 194.52 Share class As at £000 in issue share Class A 2010 103.40 85.78 Class 2 15.10.13 4,431 2,120,375 208.97 2011 109.38 90.61 15.10.14 13,821 6,731,818 205.30 2012 112.52 98.36 15.10.15 26,625 11,481,389 231.90 2013 133.11 111.53 * Valued at bid market prices. 2014 136.57 117.74

2015*** 146.02 128.07

* Valued at mid market prices. ** From 20 August 2012 (date of launch). *** Up to 15 October 2015.

Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Share class year (p) (p) Class 2 2010 156.57 128.10

2011 167.41 138.82

2012 177.74 154.83

2013 219.63 179.08

2014 225.65 199.10

2015** 249.04 216.68

* Valued at mid market prices. ** Up to 15 October 2015.

16 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 1.00% 1.00% per calendar year on a payment date basis for an investment made on 4 January 2010. Class 2 0.82% 0.82% Calendar Net revenue Per £1,000 Class 3 0.32% 0.32% Share class year per share (p) invested (£) Class A 1.62% 1.62% Class 2 2010 3.7941 36.29 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual 2011 4.4130 42.21 Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 2012 4.9602 47.44 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 2013 5.3963 51.61

2014 5.1687 49.43

Revenue Record – Income Shares 2015* 5.5506 53.08 * Up to 15 December 2015 (the final distribution payment date). The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January 2010 (20 August 2012 for Share Class 2).

Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Class 1 2010 1.7548 31.45

2011 2.0731 37.16

2012 2.2771 40.81

2013 2.3891 42.82

2014 2.2002 39.43

2015** 2.3205 41.59

Class 2 2012* 0.2676 2.68

2013 3.1878 31.88

2014 2.9222 29.22

2015** 3.0676 30.67

Class 3 2010 4.4335 39.97

2011 5.1647 46.56

2012 5.5940 50.43

2013 5.9666 53.79

2014 5.7228 51.59

2015** 6.0130 54.21

Class A 2010 1.8210 24.93

2011 2.0873 28.57

2012 2.3262 31.84

2013 2.3903 32.72

2014 2.0563 28.15

2015** 2.1911 30.00

* From 20 August 2012 (date of launch). ** Up to 15 December 2015 (the final distribution payment date).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 17 Aviva Investors UK Equity Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Scheme 0.00% (0.48%) Investment Companies 0.00% (0.48%) Equities 98.53% (95.72%) Consumer Discretionary 25.22% (19.67%) Hotels, Restaurants & Leisure 8.01% (6.55%) Carnival plc GBP 176,401 5,820 2.23 Compass Group plc GBP 726,821 7,719 2.95 Merlin Entertainments plc GBP 799,422 2,947 1.13 Restaurant Group plc (The) GBP 631,260 4,444 1.70 20,930 8.01 Media 13.39% (12.24%) Cineworld Group plc GBP 606,139 3,525 1.35 Daily Mail & General Trust plc ‘A’ GBP 475,339 3,556 1.36 ITV plc GBP 3,202,729 7,808 2.99 RELX plc GBP 782,815 8,940 3.42 Sky plc GBP 821,049 8,802 3.37 UBM plc GBP 460,822 2,352 0.90 34,983 13.39 Specialty Retail 3.82% (0.88%) BCA Marketplace plc GBP 4,272,160 7,476 2.86 Sports Direct International plc GBP 384,498 2,505 0.96 9,981 3.82 Consumer Discretionary total 65,894 25.22 Consumer Staples 9.89% (11.33%) Beverages 0.61% (2.57%) Fevertree Drinks plc# GBP 372,926 1,604 0.61 1,604 0.61 Food & Staples Retailing 0.77% (1.95%) Majestic Wine plc# GBP 585,177 2,012 0.77 2,012 0.77 Household Products 3.17% (2.21%) Reckitt Benckiser Group plc GBP 135,535 8,291 3.17 8,291 3.17 Personal Products 2.60% (2.31%) Unilever plc GBP 233,780 6,796 2.60 6,796 2.60 Tobacco 2.74% (2.29%) British American Tobacco plc GBP 84,033 3,185 1.22 Imperial Tobacco Group plc GBP 114,689 3,982 1.52 7,167 2.74 Consumer Staples total 25,870 9.89 Energy 4.31% (4.35%) Oil, Gas & Consumable Fuels 4.31% (4.35%) BG Group plc GBP 621,383 6,717 2.57 BP plc GBP 1,185,866 4,547 1.74 11,264 4.31 Energy total 11,264 4.31

18 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Financials 18.09% (16.56%) Banks 3.90% (3.21%) HSBC Holdings plc GBP 1,297,164 6,695 2.56 Lloyds Banking Group plc GBP 4,712,230 3,504 1.34 10,199 3.90 Capital Markets 7.57% (7.16%) Close Brothers Group plc GBP 288,853 4,136 1.58 Intermediate Capital Group plc GBP 973,476 5,072 1.94 Jupiter Fund Management plc GBP 342,175 1,468 0.56 Rathbone Brothers plc GBP 201,246 4,170 1.59 Schroders plc GBP 179,636 4,967 1.90 19,813 7.57 Diversified Financial Services 0.88% (0.62%) Sherborne Investors Guernsey B Ltd. GBP 2,347,036 2,300 0.88 2,300 0.88 Insurance 5.74% (5.57%) Aviva plc† GBP 739,664 3,425 1.31 Legal & General Group plc GBP 1,295,114 3,183 1.22 Prudential plc GBP 568,458 8,390 3.21 14,998 5.74 Financials total 47,310 18.09 Health Care 5.94% (4.73%) Health Care Equipment & Supplies 2.65% (2.25%) Smith & Nephew plc GBP 611,426 6,921 2.65 6,921 2.65 Pharmaceuticals 3.29% (2.48%) GlaxoSmithKline plc GBP 648,612 8,610 3.29 8,610 3.29 Health Care total 15,531 5.94 Industrials 10.57% (13.00%) Building Products 0.79% (0.53%) Volution Group plc GBP 1,294,438 2,071 0.79 2,071 0.79 Commercial Services & Supplies 1.56% (1.78%) Rentokil Initial plc GBP 2,831,141 4,091 1.56 4,091 1.56 Machinery 1.24% (2.31%) Melrose Industries plc GBP 1,213,573 3,243 1.24 3,243 1.24 Professional Services 1.07% (2.87%) Michael Page International plc GBP 585,501 2,802 1.07 2,802 1.07 Road & Rail 2.14% (2.52%) Northgate plc GBP 454,203 1,881 0.72 Stagecoach Group plc GBP 1,115,697 3,726 1.42 5,607 2.14 Trading Companies & Distributors 1.49% (0.00%) Ashtead Group plc GBP 400,837 3,898 1.49 3,898 1.49 Transportation Infrastructure 2.28% (2.99%) BBA Aviation plc GBP 2,286,550 4,367 1.67 BBA Aviation plc Rights 26/10/2015 GBP 2,743,860 1,591 0.61 5,958 2.28 Industrials total 27,670 10.57 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 19 Aviva Investors UK Equity Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Information Technology 6.22% (4.83%) Electronic Equipment, Instruments & Components 0.00% (0.77%) IT Services 2.39% (0.00%) Worldpay Group plc GBP 2,363,173 6,251 2.39 6,251 2.39 Software 3.83% (4.06%) AVEVA Group plc GBP 8,198 165 0.06 Sage Group plc (The) GBP 1,879,474 9,867 3.77 10,032 3.83 Information Technology total 16,283 6.22 Materials 6.17% (11.00%) Chemicals 2.69% (2.74%) Essentra plc GBP 335,642 2,833 1.08 Johnson Matthey plc GBP 168,068 4,205 1.61 7,038 2.69 Metals & Mining 3.48% (8.26%) BHP Billiton plc GBP 262,278 3,061 1.17 Rio Tinto plc GBP 235,428 6,036 2.31 9,097 3.48 Materials total 16,135 6.17 Telecommunication Services 9.06% (7.82%) Diversified Telecommunication Services 5.68% (4.61%) BT Group plc GBP 2,275,261 9,623 3.68 Inmarsat plc GBP 573,487 5,242 2.00 14,865 5.68 Wireless Telecommunication Services 3.38% (3.21%) Vodafone Group plc GBP 4,292,073 8,837 3.38 8,837 3.38 Telecommunication Services total 23,702 9.06 Utilities 3.06% (2.43%) Multi-Utilities 3.06% (2.43%) Centrica plc GBP 742,464 1,762 0.67 National Grid plc GBP 462,620 4,243 1.62 Telecom Plus plc GBP 171,636 2,001 0.77 8,006 3.06 Utilities total 8,006 3.06

Equities total 257,665 98.53 Liquidity Stocks 2.18% (3.09%) Aviva Investors Sterling Liquidity Fund◊ GBP 5,700,000 5,700 2.18 Liquidity Stocks total 5,700 2.18

Investment assets 263,365 100.71 Net other liabilities (1,862) (0.71) Net assets 261,503 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. # Security traded on another regulated market. † A related party to the Fund. ◊ Investments managed and advised by a related party of the Fund.

20 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains/(losses) 2 25,965 (10,771)

Revenue 3 8,544 8,548

Expenses 4 (2,258) (2,389)

Net revenue before taxation 6,286 6,159

Taxation 5 – –

Net revenue after taxation 6,286 6,159

Total return before distributions 32,251 (4,612)

Finance costs: Distributions 6 (6,291) (6,164)

Change in net assets attributable to shareholders from investment activities 25,960 (10,776)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 248,998 255,843

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 23,469 28,626

Amounts payable on cancellation of shares (37,461) (24,971)

(13,992) 3,655

Stamp duty reserve tax – (14)

Change in net assets attributable to shareholders from investment activities (see above) 25,960 (10,776)

Retained distribution on accumulation shares 532 285

Unclaimed distribution monies 5 5

Closing net assets attributable to shareholders 261,503 248,998

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 21 Aviva Investors UK Equity Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 263,365 247,228

Debtors 7 3,056 439

Cash and bank balances 8 5,129 5,340

Total other assets 8,185 5,779

Total assets 271,550 253,007

LIABILITIES

Creditors 9 (6,474) (660)

Distribution payable on income shares (3,573) (3,349)

Total liabilities (10,047) (4,009)

Net assets attributable to shareholders 261,503 248,998

22 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains/(losses)

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains/(losses) on investments during the year comprise:

Currency losses – (6)

Expenses relating to the purchase and sale of investments (1) (1)

Non-derivative securities gains/(losses) 25,966 (10,764)

Net capital gains/(losses) 25,965 (10,771)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 18 27

Overseas dividends 118 84

UK dividends 8,397 8,437

Underwriting commission 11 –

Total revenue 8,544 8,548

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 2,188 2,317

Registration fees 46 48

2,234 2,365

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 28 28

Safe custody fee 5 5

33 33

Other expenses:

Audit fee* 10 12

Printing & postage expenses 3 4

Statement fees 11 10

24 26

Total expenses 2,291 2,424

Less those expenses rebated by the ACD (33) (35)

Net expenses 2,258 2,389

* The audit fee was £8,241 (2014: £8,200) net of VAT.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 23 Aviva Investors UK Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax written back – – Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 6,286 6,159 Corporation tax at 20% 1,257 1,232 Effects of: Movement in excess expenses 446 473 Overseas dividends not subject to corporation tax (24) (17) UK dividends not subject to corporation tax (1,679) (1,688) (1,257) (1,232) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no unprovided deferred tax (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £42,559,000 (2014: £40,330,000) creating a potential deferred tax asset of £8,512,000 (2014: £8,066,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

24 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 2,341 2,656 Distributions for the six months ended 15 October 3,974 3,547 6,315 6,203 Add: Revenue deducted on cancellation of shares 194 140 Deduct: Revenue received on issue of shares (218) (179) Finance costs: Distributions 6,291 6,164 Reconciliation of distributions for the year to net revenue after taxation Distributions for the year 6,291 6,164 Equalisation on conversions (5) (5) Net revenue after taxation 6,286 6,159 Details of the distributions per share are set out in the distribution tables on page 28.

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 399 316 Amounts receivable on issue of shares 110 123 Sales awaiting settlement 2,547 – Total debtors 3,056 439

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 5,129 5,340 Total Cash and bank balances 5,129 5,340

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 307 314 Amounts payable for cancellation of shares 95 346 Purchases awaiting settlement 6,072 – Total creditors 6,474 660

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 25 Aviva Investors UK Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £277,000 (2014: £288,000) and registration fees was £6,000 (2014: £7,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £2,056,000 (2014: £1,880,000). The amount outstanding at the year end was £1,253,000 (2014: £1,056,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 280,373 171,896 108,477 ACD and related parties (share class 2 Income shares) 513,358 (252,670) 766,028 ACD and related parties (share class 3 Income shares) 32,605,856 358,145 32,247,711 ACD and related parties (share class A Income shares) 7,048 (508,150) 515,198 ACD and related parties (share class 2 Accumulation shares) 1,485,908 1,452,902 33,006 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

12 Shareholder funds The Fund currently has four share classes: Classes 1 and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.70% Class 3: 0.30% Class A: 1.50% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 16. The distributions per share class are given in the distribution tables on page 28. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, none (2014: none) of the net assets of the Fund were denominated in currencies other than sterling.

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 4.14% (2014: 5.24%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

26 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 41,783 68,595 Commissions 36 100 Taxes 150 333 Total purchase costs 186 433 Gross purchases total 41,969 69,028 Analysis of total sale costs Gross sales before transaction costs 49,872 72,423 Commissions (74) (99) Total sale costs (74) (99) Total sales net of transaction costs 49,798 72,324

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 27 Aviva Investors UK Equity Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 1.4687 – 1.4687 1.2607 Group 2 0.5759 0.8928 1.4687 1.2607 Share Class 2 Group 1 1.9175 – 1.9175 1.6576 Group 2 0.7594 1.1581 1.9175 1.6576 Share Class 3 Group 1 3.6400 – 3.6400 3.1804 Group 2 1.6519 1.9881 3.6400 3.1804 Share Class A Group 1 1.4844 – 1.4844 1.2392 Group 2 0.5843 0.9001 1.4844 1.2392

Final distribution Final distribution Net payable paid Accumulation shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 2 Group 1 3.4934 – 3.4934 2.9470 Group 2 0.5686 2.9248 3.4934 2.9470

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.8518 – 0.8518 0.9395 Group 2 0.5316 0.3202 0.8518 0.9395 Share Class 2 Group 1 1.1501 – 1.1501 1.2646 Group 2 0.7152 0.4349 1.1501 1.2646 Share Class 3 Group 1 2.3730 – 2.3730 2.5424 Group 2 1.6894 0.6836 2.3730 2.5424 Share Class A Group 1 0.7067 – 0.7067 0.8171 Group 2 0.3562 0.3505 0.7067 0.8171

Interim distribution Interim distribution Net paid paid Accumulation shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 2 Group 1 2.0572 – 2.0572 2.2217 Group 2 1.3017 0.7555 2.0572 2.2217

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

28 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

AVIVA INVESTORS UK EQUITY INCOME FUND

Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income INVESTMENT OBJECTIVE reinvested in GBP, with no initial charges applied. Market data – Bloomberg. A dividend yield above that obtainable on the FTSE® All-Share Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should Index. not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, INVESTMENT POLICY endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its Issue, operation and trading. All copyright in the index values and Investment principally in UK equities judged to offer high yield, constituent list vests in FTSE. above average prospects of dividend growth and long term capital growth. The Fund may invest in any of the following financial instruments Material Portfolio Changes in order to achieve its investment objective: transferable Purchases Sales securities, money market instruments, units in collective investment schemes, deposits and derivatives and forward Royal Dutch Shell plc 'B' Diageo plc transactions. BCA Marketplace plc RELX plc

BHP Billiton plc HSBC Holdings plc

FUND MANAGER’S REPORT Phoenix Group Holdings XL Group plc Standard Life plc Rio Tinto plc Over the 12 months ended 15 October 2015, the Aviva Investors UK Equity Income Fund delivered a total return of 11.39 per cent Aviva plc Aviva plc (share class A), net of fees, compared with an average return BP plc Standard Life plc of 11.10 per cent for its peer group the Investment Association UK Equity Income sector. The FTSE® All-Share Index, the Fund’s GlaxoSmithKline plc Bunzl plc benchmark, returned 8.37 per cent. Beazley plc BP plc

Accountancy software group Sage and BCA Marketplace, BAE Systems plc BHP Billiton plc Europe’s largest second-hand car auctioneer, were among the largest individual contributors to relative performance. Sage climbed after confirming it was on track to meet 2015 targets due to robust growth in revenues and profits, while BCA Synthetic Risk and Reward Indicator Marketplace gave a positive trading update during the summer, Lower risk Higher risk with encouraging comments from the new management team on the company’s long-term earnings prospects. Media companies also made a positive contribution, notably the Typically lower rewards Typically higher rewards Fund’s stake in Sky. The UK-based satellite, cable, broadband and telephone services firm reported a sharp rise in half-year 1 2 3 4 5 6 7 profits and subsequently announced a price increase for its The Fund has been allocated a risk number based on the historic volatility of sports and family entertainment packages. Holdings in free-to-air its share price. Where insufficient share price information is available, the risk broadcaster ITV and publishing group UBM were also beneficial number has been based on the historic volatility of the asset classes appropriate to the Fund. for relative performance. – This indicator is based on historical data, calculated using European Union Centrica and BBA Aviation were significant detractors. Shares rules, and may not be a reliable indication of the future risk profile of the in Centrica, which owns British Gas, fell after the company’s Fund. profits dropped and it cut its dividend. Flight support company – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. BBA Aviation flagged that its ground-handling business is under pressure and subsequently reported lacklustre interim results. – The level of targeted income is not guaranteed and may not be achieved. – Full information on the risks applicable to the Fund is detailed in the New positions included Phoenix Group, which is a specialist Prospectus. closed life and pension fund consolidator, and Anglo-Dutch oil giant Royal Dutch Shell. In addition, we sold the position in Stagecoach and added to the holding in insurer Legal & General. The outlook for UK equities remains moderately favourable, despite the recent setback. The economic landscape is improving in much of the ‘developed’ world and this should enable companies to continue growing profits and hence dividends. Furthermore, with inflation subdued it looks like global monetary policy is set to stay extremely loose. But on a note of caution, we are keeping a close eye on events in China which have the potential to sour the global economic situation. November 2015

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 29 Aviva Investors UK Equity Income Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Net Asset Value – Accumulation Shares Net asset value* Shares Pence per Net asset value* Shares Pence per Share class As at £000 in issue share Share class As at £000 in issue share Class 1 15.10.13 148,952 181,007,630 82.29 Class 2 15.10.13 46,112 31,716,501 145.39

15.10.14 135,649 173,621,542 78.13 15.10.14 62,634 43,520,970 143.92

15.10.15 138,861 165,866,162 83.72 15.10.15 59,340 36,773,502 161.37

Class 2 15.10.13 66,933 51,144,617 130.87 Class 3 15.10.13 4 1,624 231.83

15.10.14 111,805 89,728,475 124.60 15.10.14 11,643 5,048,287 230.63

15.10.15 125,679 93,854,102 133.91 15.10.15 9,430 3,628,507 259.89

Class 3 15.10.13 561,308 315,520,583 177.90 Class 4 15.10.13 71 60,125 118.76

15.10.14 523,492 307,834,066 170.06 15.10.14 120 102,278 117.20

15.10.15 500,206 272,582,752 183.51 15.10.15 125 95,164 131.35

Class 4 15.10.13 502 436,534 115.10 Class A 15.10.13 5,006 4,069,243 123.01

15.10.14 426 390,078 109.26 15.10.14 5,751 4,761,501 120.79

15.10.15 33,679 28,768,358 117.07 15.10.15 4,678 3,481,733 134.35

Class A 15.10.13 88,298 79,792,513 110.66 * Valued at bid market prices.

15.10.14 54,855 52,488,195 104.51

15.10.15 41,600 37,340,508 111.41

* Valued at bid market prices.

30 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

INVESTMENT PERFORMANCE (CONTINUED)

Share Price Record – Income Shares Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Calendar Highest price* Lowest price* Share class year (p) (p) Share class year (p) (p) Class 1 2010 66.23 55.22 Class 2 2011** 107.49 92.70

2011 69.69 58.64 2012 120.54 102.92

2012 71.74 62.30 2013 151.21 121.59

2013 85.55 71.56 2014 157.03 139.87

2014 87.97 75.88 2015† 171.61 152.40

2015*** 92.07 82.64 Class 3 2010 161.88 132.05

Class 2 2010 104.61 87.13 2011 173.73 146.28

2011 110.24 92.76 2012 191.38 162.98

2012 113.76 98.78 2013 241.37 193.08

2013 136.12 113.61 2014 251.82 224.15

2014 139.98 121.01 2015† 275.85 244.50

2015*** 146.98 131.86 Class 4 2012*** 100.00 100.00

Class 3 2010 140.51 116.80 2013 123.43 100.00

2011 148.40 124.95 2014 127.83 113.91

2012 153.93 133.43 2015† 139.51 124.03

2013 185.21 153.88 Class A 2011** 92.52 79.75

2014 190.61 165.16 2012 102.68 88.08

2015*** 201.09 180.16 2013 127.72 103.54

Class 4 2012** 100.00 100.00 2014 131.65 117.39

2013 119.63 100.00 2015† 143.35 127.68

2014 122.97 106.11 * Valued at mid market prices. ** From 18 July 2011 (date of launch). 2015*** 128.69 115.54 *** From 10 December 2012 (date of launch). † Up to 15 October 2015. Class A 2010 90.41 75.59

2011 94.87 79.76

2012 96.97 84.41

2013 114.89 96.60

2014 118.02 101.50

2015*** 122.79 110.39

* Valued at mid market prices. ** From 10 December 2012 (date of launch). *** Up to 15 October 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 31 Aviva Investors UK Equity Income Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 1.00% 1.00% per calendar year on a payment date basis for an investment made on 4 January 2010 (18 July 2011 for Share Class 2 and Class 2 0.81% 0.81% Share Class A and 10 December 2012 for Share Class 4). Class 3 0.31% 0.31% Calendar Net revenue Per £1,000 Class 4 1.11% 1.11% Share class year per share (p) invested (£)

Class A 1.61% 1.61% Class 2 2011* 1.0621 10.12

* The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges 2012 4.9225 46.90 to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the 2013 5.0707 48.31 year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations 2014 5.6160 53.51 provided previously. 2015** 6.8046 64.83

Class 3 2010 5.8479 41.35 Revenue Record – Income Shares 2011 6.5686 46.44 The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment 2012 7.7969 55.13 made on 4 January 2010 (10 December 2012 for Share Class 4). 2013 8.3122 58.77

Calendar Net revenue Per £1,000 2014 9.2490 65.40 Share class year per share (p) invested (£) 2015*** 11.1936 79.15

Class 1 2010 2.4808 40.97 Class 4 2012** N/A N/A

2011 2.6638 43.99 2013 3.5297 35.30

2012 3.0152 49.80 2014 4.5811 45.81

2013 3.0471 50.32 2015*** 5.5330 55.33

2014 3.2410 53.53 Class A 2011* 4.1917 41.92

2015** 3.7405 61.78 2012 4.2578 42.58

Class 2 2010 3.8972 40.85 2013 4.2836 42.84

2011 4.1341 43.33 2014 4.7296 47.30

2012 4.6741 48.99 2015*** 5.6863 56.86

2013 4.7246 49.52 * From 18 July 2011 (date of launch). ** From 10 December 2012 (date of launch). 2014 5.0122 52.53 *** Up to 15 December 2015 (the final distribution payment date). 2015** 5.8308 61.11

Class 3 2010 5.2260 40.95

2011 5.6469 44.24

2012 6.4299 50.38

2013 6.5463 51.29

2014 7.0045 54.88

2015** 8.1555 63.90

Class 4 2012* N/A N/A

2013 3.4958 34.96

2014 4.3946 43.95

2015** 5.1057 51.06

Class A 2010 3.3905 40.80

2011 3.5618 42.86

2012 3.9940 48.06

2013 3.9954 48.08

2014 4.2141 50.71

2015** 4.8693 58.59

* From 10 December 2012 (date of launch). ** Up to 15 December 2015 (the final distribution payment date).

32 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 4.20% (1.67%) Investment Companies 4.20% (1.67%) Foresight Solar Fund Ltd. GBP 5,000,000 5,038 0.55 Greencoat UK Wind plc Fund GBP 8,728,699 9,754 1.07 P2P Global Investments plc Fund GBP 1,117,263 11,474 1.26 P2P Global Investments plc Fund C GBP 484,120 4,870 0.53 Ranger Direct Lending plc Fund GBP 696,114 7,247 0.79 38,383 4.20 Collective Investment Schemes total 38,383 4.20 Equities 94.39% (96.61%) Consumer Discretionary 17.62% (18.08%) Auto Components 0.00% (1.23%) Distributors 0.58% (0.46%) Headlam Group plc GBP 1,054,324 5,319 0.58 5,319 0.58 Hotels, Restaurants & Leisure 2.70% (3.45%) Compass Group plc GBP 1,371,095 14,561 1.59 Restaurant Group plc (The) GBP 1,437,593 10,121 1.11 24,682 2.70 Household Durables 1.03% (0.00%) DFS Furniture plc GBP 3,243,852 9,423 1.03 9,423 1.03 Media 9.54% (11.66%) Cineworld Group plc GBP 2,125,826 12,362 1.35 ITV plc GBP 4,498,439 10,967 1.20 Pearson plc GBP 1,038,958 12,332 1.35 RELX plc GBP 864,075 9,868 1.08 Sky plc GBP 2,227,214 23,876 2.61 UBM plc GBP 3,477,979 17,755 1.95 87,160 9.54 Specialty Retail 3.77% (1.28%) BCA Marketplace plc GBP 16,138,399 28,242 3.09 GAME Digital plc GBP 3,102,699 6,198 0.68 34,440 3.77 Consumer Discretionary total 161,024 17.62 Consumer Staples 9.42% (12.29%) Beverages 0.00% (2.52%) Food & Staples Retailing 0.52% (2.05%) Majestic Wine plc GBP 1,396,397 4,800 0.52 4,800 0.52 Food Products 0.00% (0.55%) Personal Products 1.69% (2.27%) Unilever plc GBP 529,860 15,403 1.69 15,403 1.69 Tobacco 7.21% (4.90%) British American Tobacco plc GBP 811,890 30,771 3.37 Imperial Tobacco Group plc GBP 1,010,450 35,083 3.84 65,854 7.21 Consumer Staples total 86,057 9.42

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 33 Aviva Investors UK Equity Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Energy 4.76% (3.30%) Oil, Gas & Consumable Fuels 4.76% (3.30%) BP plc GBP 5,738,786 22,005 2.41 Royal Dutch Shell plc ‘B’ GBP 1,192,166 21,441 2.35 43,446 4.76 Energy total 43,446 4.76 Financials 21.47% (20.09%) Banks 0.31% (3.24%) HSBC Holdings plc GBP 545,190 2,814 0.31 2,814 0.31 Capital Markets 7.71% (6.80%) Close Brothers Group plc GBP 1,186,198 16,986 1.86 Intermediate Capital Group plc GBP 4,823,647 25,131 2.75 Jupiter Fund Management plc GBP 1,232,840 5,288 0.58 Rathbone Brothers plc GBP 658,150 13,637 1.49 River & Mercantile Group plc GBP 3,932,522 9,359 1.03 70,401 7.71 Diversified Financial Services 0.33% (0.00%) Sherborne Investors Guernsey B Ltd. GBP 3,115,055 3,053 0.33 3,053 0.33 Insurance 12.72% (10.05%) Aviva plc† GBP 6,947,186 32,165 3.52 Beazley plc GBP 3,018,560 10,474 1.15 Hiscox Ltd. GBP 1,503,677 13,834 1.51 Legal & General Group plc GBP 8,990,153 22,098 2.42 Novae Group plc GBP 604,796 5,241 0.57 Phoenix Group Holdings GBP 1,956,261 15,856 1.74 Prudential plc GBP 1,119,033 16,517 1.81 116,185 12.72 Real Estate Investment Trusts (REITs) 0.40% (0.00%) GCP Student Living plc, REIT ‘C’ GBP 3,527,869 3,704 0.40 3,704 0.40 Real Estate Management & Development 0.00% (0.00%) Financials total 196,157 21.47 Health Care 5.38% (4.44%) Pharmaceuticals 5.38% (4.44%) AstraZeneca plc GBP 316,282 13,039 1.43 GlaxoSmithKline plc GBP 2,718,603 36,089 3.95 49,128 5.38 Health Care total 49,128 5.38 Industrials 7.74% (9.92%) Aerospace & Defense 1.94% (0.00%) BAE Systems plc GBP 1,934,160 8,781 0.96 Cobham plc GBP 3,050,629 8,920 0.98 17,701 1.94 Commercial Services & Supplies 0.08% (0.49%) De La Rue plc GBP 147,510 708 0.08 708 0.08 Machinery 2.70% (2.01%) Melrose Industries plc GBP 5,715,488 15,272 1.67 Weir Group plc (The) GBP 755,812 9,425 1.03 24,697 2.70

34 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Road & Rail 0.57% (2.78%) Northgate plc GBP 1,271,481 5,266 0.57 5,266 0.57 Trading Companies & Distributors 0.00% (1.66%) Transportation Infrastructure 2.45% (2.98%) BBA Aviation plc GBP 8,590,397 16,408 1.80 BBA Aviation plc Rights 26/10/2015 GBP 10,308,476 5,979 0.65 22,387 2.45 Industrials total 70,759 7.74 Information Technology 3.11% (2.50%) Electronic Equipment, Instruments & Components 0.68% (0.00%) Laird plc GBP 1,777,590 6,273 0.68 6,273 0.68 Software 2.43% (2.50%) Sage Group plc (The) GBP 4,223,119 22,171 2.43 22,171 2.43 Information Technology total 28,444 3.11 Materials 8.52% (10.34%) Containers & Packaging 3.58% (2.72%) DS Smith plc GBP 3,597,728 13,254 1.45 Rexam plc GBP 3,590,820 19,391 2.13 32,645 3.58 Metals & Mining 4.94% (7.62%) BHP Billiton plc GBP 2,129,111 24,847 2.72 Rio Tinto plc GBP 792,018 20,307 2.22 45,154 4.94 Materials total 77,799 8.52 Telecommunication Services 10.20% (9.27%) Diversified Telecommunication Services 7.01% (6.12%) BT Group plc GBP 7,286,327 30,817 3.38 Inmarsat plc GBP 2,069,364 18,914 2.07 KCOM Group plc GBP 15,853,224 14,268 1.56 63,999 7.01 Wireless Telecommunication Services 3.19% (3.15%) Vodafone Group plc GBP 14,173,762 29,184 3.19 29,184 3.19 Telecommunication Services total 93,183 10.20

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 35 Aviva Investors UK Equity Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Utilities 6.17% (6.38%) Independent Power and Renewable Electricity Producers 0.60% (1.01%) Infinis Energy plc GBP 4,302,713 5,465 0.60 5,465 0.60 Multi-Utilities 5.57% (5.37%) Centrica plc GBP 11,818,995 28,046 3.07 National Grid plc GBP 2,489,559 22,832 2.50 50,878 5.57 Utilities total 56,343 6.17

Equities total 862,340 94.39 Liquidity Stocks (0.00%; 2014 1.46%)

Investment assets 900,723 98.59 Net other assets 12,875 1.41 Net assets 913,598 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. # Security traded on another regulated market. † A related party to the Fund.

36 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains/(losses) 2 76,903 (40,355)

Revenue 3 42,186 37,250

Expenses 4 (5,928) (5,938)

Net revenue before taxation 36,258 31,312

Taxation 5 (59) –

Net revenue after taxation 36,199 31,312

Total return before distributions 113,102 (9,043)

Finance costs: Distributions 6 (41,706) (36,899)

Change in net assets attributable to shareholders from investment activities 71,396 (45,942)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 906,375 917,186

Movement due to issue and cancellation of shares:

Amount transferred from Aviva Investors UK Income & Growth Fund 39,896 –

Amounts receivable on issue of shares 48,493 148,822

Amounts payable on cancellation of shares (155,856) (116,833)

(107,363) 31,989

Dilution levy 93 326

Stamp duty reserve tax – (201)

Change in net assets attributable to shareholders from investment activities (see above) 71,396 (45,942)

Retained distribution on accumulation shares 3,180 3,017

Unclaimed distribution monies 21 –

Closing net assets attributable to shareholders 913,598 906,375

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 37 Aviva Investors UK Equity Income Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 900,723 903,995

Debtors 7 3,920 2,101

Cash and bank balances 8 30,725 22,609

Total other assets 34,645 24,710

Total assets 935,368 928,705

LIABILITIES

Creditors 9 (2,105) (1,790)

Distribution payable on income shares (19,665) (20,540)

Total liabilities (21,770) (22,330)

Net assets attributable to shareholders 913,598 906,375

38 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains/(losses)

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains/(losses) on investments during the year comprise:

Currency gains 54 1

Expenses relating to the purchase and sale of investments (5) (3)

Non-derivative securities gains/(losses) 76,854 (40,353)

Net capital gains/(losses) 76,903 (40,355)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 53 113

Overseas dividends 5,011 3,047

UK dividends 37,056 34,090

Underwriting commission 66 –

Total revenue 42,186 37,250

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 5,552 5,588

Registration fees 271 240

5,823 5,828

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 46 46

Safe custody fee 17 19

63 65

Other expenses:

Audit fee* 10 11

Printing & postage expenses 12 16

Statement fees 39 38

61 65

Total expenses 5,947 5,958

Less those expenses rebated by the ACD (19) (20)

Net expenses 5,928 5,938

* The audit fee was £8,241 (2014: £8,200) net of VAT.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 39 Aviva Investors UK Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax suffered 59 – Total current tax for the year (see note 5.b) 59 – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 36,258 31,312 Corporation tax at 20% 7,252 6,262 Effects of: Movement in excess expenses 1,103 1,165 Overseas dividends not subject to corporation tax (1,002) (609) Overseas tax suffered 59 – UK dividends not subject to corporation tax (7,353) (6,818) (7,193) (6,262) Current tax charge (see note 5.a) 59 – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no material unprovided deferred tax (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £38,602,000 (2014: £33,088,000) creating a potential deferred tax asset of £7,721,000 (2014: £6,618,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 19,929 14,574 Distributions for the six months ended 15 October 21,327 22,456 41,256 37,030 Add: Revenue deducted on cancellation of shares 1,173 987 Deduct: Revenue received on issue of shares (723) (1,118) Finance costs: Distributions 41,706 36,899 Reconciliation of distributions for the year to net revenue after taxation Distributions for the year 41,706 36,899 ACD's periodic charge borne by the capital account (5,552) (5,588) Equalisation on conversions – 1 Tax relief on capitalised ACD’s periodic charge 45 – Net revenue after taxation 36,199 31,312 Details of the distributions per share are set out in the distribution tables on pages 43 and 44.

40 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 2,513 1,676 Amounts receivable on issue of shares 479 425 Sales awaiting settlement 928 – Total debtors 3,920 2,101

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 30,725 22,609

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 815 809 Amounts payable for cancellation of shares 1,290 981 Total creditors 2,105 1,790

10 Contingent liabilities and commitments The contingent liabilities and commitments at the balance sheet date are as follows:

As at As at 15.10.15 15.10.14 £000 £000 BBA Aviation plc Rights 26/10/2015 13,710 – Total contingent liabilities and commitments 13,710 –

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £700,000 (2014: £700,000) and registration fees was £62,000 (2014: £59,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £24,013,000 (2014: £22,595,000). The amount outstanding at the year end was £12,286,000 (2014: £13,660,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 352,008 (72,751) 424,759 ACD and related parties (share class 2 Income shares) 3,225,069 2,276,496 948,573 ACD and related parties (share class 2 Accumulation shares) 3,408,682 737,973 2,670,709 ACD and related parties (share class 3 Income shares) 272,582,752 (35,251,314) 307,834,066 ACD and related parties (share class 3 Accumulation shares) 3,628,507 (1,419,780) 5,048,287 ACD and related parties (share class A Income shares) 3,244,045 (2,828,850) 6,072,895 ACD and related parties (share class SC A Accumulation shares) – (1,050,797) 1,050,797 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 41 Aviva Investors UK Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has five share classes: Classes 1, 4, and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.70% Class 3: 0.30% Class 4: 1.00% Class A: 1.50% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 30. The distributions per share class are given in the distribution tables on pages 43 and 44. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.51% (2014: none) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 3.36% (2014: 3.95%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 344,574 216,989 Commissions 366 272 Taxes 1,097 827 Total purchase costs 1,463 1,099 Gross purchases total 346,037 218,088 Analysis of total sale costs Gross sales before transaction costs 413,537 181,362 Commissions (575) (224) Total sale costs (575) (224) Total sales net of transaction costs 412,962 181,138

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

42 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Equity Income Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 1.9731 – 1.9731 1.9590 Group 2 1.0537 0.9194 1.9731 1.9590 Share Class 2 Group 1 3.0878 – 3.0878 3.0427 Group 2 1.2553 1.8325 3.0878 3.0427 Share Class 3 Group 1 4.3128 – 4.3128 4.2412 Group 2 1.6358 2.6770 4.3128 4.2412 Share Class 4 Group 1 2.7017 – 2.7017 2.6701 Group 2 1.4537 1.2480 2.7017 2.6701 Share Class A Group 1 2.5746 – 2.5746 2.5573 Group 2 1.1586 1.4160 2.5746 2.5573

Final distribution Final distribution Net payable paid Accumualtion shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 2 Group 1 3.6352 – 3.6352 3.4303 Group 2 1.7784 1.8568 3.6352 3.4303 Share Class 3 Group 1 5.9799 – 5.9799 5.6118 Group 2 5.9799 0.0000 5.9799 5.6118 Share Class 4 Group 1 2.9540 – 2.9540 2.7962 Group 2 2.3413 0.6127 2.9540 2.7962 Share Class A Group 1 3.0333 – 3.0333 2.8854 Group 2 1.4398 1.5935 3.0333 2.8854

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 43 Aviva Investors UK Equity Income Fund

DISTRIBUTION TABLES

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 1.7674 – 1.7674 1.2820 Group 2 1.3573 0.4101 1.7674 1.2820 Share Class 2 Group 1 2.7430 – 2.7430 1.9695 Group 2 1.8998 0.8432 2.7430 1.9695 Share Class 3 Group 1 3.8427 – 3.8427 2.7633 Group 2 2.7574 1.0853 3.8427 2.7633 Share Class 4 Group 1 2.4040 – 2.4040 1.7245 Group 2 1.7094 0.6946 2.4040 1.7245 Share Class A Group 1 2.2947 – 2.2947 1.6568 Group 2 1.6356 0.6591 2.2947 1.6568

Interim distribution Interim distribution Net paid paid Accumualtion shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 2 Group 1 3.1694 – 3.1694 2.1857 Group 2 2.1475 1.0219 3.1694 2.1857 Share Class 3 Group 1 5.2137 – 5.2137 3.6372 Group 2 3.5149 1.6988 5.2137 3.6372 Share Class 4 Group 1 2.5790 – 2.5790 1.7849 Group 2 2.1458 0.4332 2.5790 1.7849 Share Class A Group 1 2.6530 – 2.6530 1.8442 Group 2 1.4969 1.1561 2.6530 1.8442

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

44 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

AVIVA INVESTORS UK GROWTH FUND

Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income INVESTMENT OBJECTIVE reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Long term capital appreciation. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. INVESTMENT POLICY “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, Investment principally in UK equities based on price and endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its Issue, operation and trading. All copyright in the index values and prospects of above average earnings growth. constituent list vests in FTSE. The Fund may invest in any of the following financial instruments in order to achieve its investment objective: transferable securities, money market instruments, units in collective Material Portfolio Changes investment schemes, deposits and derivatives and forward Purchases Sales transactions. BCA Marketplace plc AA plc

Paysafe Group plc (formerly Optimal Payments plc) Paragon Group of Cos. Plc FUND MANAGER’S REPORT Lavendon Group plc BP plc Over the 12 months ended 15 October 2015, the Aviva Investors UK Growth Fund delivered a total return of 9.54 per cent (share Sanne Group plc Northgate plc class A), net of fees, compared with an average return of 10.28 Worldpay Group plc Ultra Electronics Holdings plc per cent for its peer group the Investment Association UK All-Companies sector. The FTSE® All-Share Index, the Fund’s Daily Mail & General Trust plc 'A' Rightmove plc benchmark, returned 8.37 per cent. Merlin Entertainments plc Standard Chartered plc

The Fund’s limited exposure to consumer staples was detrimental Torotrak plc BG Group plc because the sector outperformed, as it often does during periods Ashtead Group plc Babcock International Group plc of market turbulence. SABMiller was a notable detractor. Shares in the beverages group, which is not held in the Fund, rose Zoopla Property Group plc Aviva plc sharply on reports in September that Anheuser-Busch InBev was rumoured to be considering a takeover bid. In a similar vein, the Fund’s lack of exposure to housebuilders such as Barratt Synthetic Risk and Reward Indicator Developments, Persimmon and Taylor Wimpey, which surged following the May general election, was unhelpful. Lower risk Higher risk On a more positive note, a new holding in BCA Marketplace, Europe’s second-largest car auctioneer, was beneficial. The shares Typically lower rewards Typically higher rewards were buoyed by a positive trading update and encouraging comments from the new management team on the company’s 1 2 3 4 5 6 7 long-term growth prospects. The Fund’s holding in accounting The Fund has been allocated a risk number based on the historic volatility of software group Sage climbed after the new CEO reaffirmed its share price. Where insufficient share price information is available, the risk the group’s strategy and 2015 targets, which the market had number has been based on the historic volatility of the asset classes appropriate become nervous on, while cash-and-carry business Booker was to the Fund. another contributor with the acquisition of retail chains, Londis – This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the and Budgens, well received by investors. A cautious approach to Fund. investing in energy and mining stocks was also beneficial as the – The risk and reward category shown is not guaranteed to remain unchanged slump in oil and metal prices continued. and may change over time. The lowest category does not mean ‘risk free’. New positions included Sanne Group, which provides specialist – Full information on the risks applicable to the Fund is detailed in the corporate and fund administration services to the financial Prospectus. services industry, Pinewood, a leading global provider of studio services and premium tonic producer, Fevertree. We sold positions in specialist lender Paragon and retailer Majestic Wine. The outlook for UK equities remains moderately favourable, despite the recent setback. The economic landscape is improving in much of the ‘developed’ world. Furthermore, with inflation subdued it looks like global monetary policy is set to stay extremely loose. However, we are keeping a close eye on the Chinese slowdown which has the potential to sour the global economic situation. November 2015

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 45 Aviva Investors UK Growth Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 3 15.10.13 13,533 6,417,722 210.87 Class 3 2010 176.68 142.30

15.10.14 11,503 5,792,855 198.58 2011 183.84 148.47

15.10.15 11,612 5,376,926 215.96 2012 182.94 158.51

* Valued at bid market prices. 2013 223.45 185.37

2014 228.01 193.06 Net Asset Value – Accumulation Shares 2015** 236.77 211.24 Net asset value* Shares Pence per * Valued at mid market prices. Share class As at £000 in issue share ** Up to 15 October 2015. Class 1 15.10.13 162,291 117,260,475 138.40

15.10.14 142,530 107,678,720 132.37 Share Price Record – Accumulation Shares

15.10.15 142,963 98,089,638 145.75 Calendar Highest price* Lowest price* Share class year (p) (p) Class 2 15.10.13 281 134,924 208.32 Class 1 2010 109.11 86.04 15.10.14 1,799 901,295 199.57 2011 114.26 92.15 15.10.15 3,920 1,780,786 220.14 2012 117.02 100.67 Class 3 15.10.13 4 1,382 253.13 2013 146.46 119.15 15.10.14 3 1,382 243.70 2014 149.27 128.73 15.10.15** N/A N/A N/A 2015** 158.50 141.16 Class A 15.10.13 10,953 8,490,105 129.01 Class 2 2010 163.50 128.70 15.10.14 10,101 8,239,042 122.60 2011 171.35 138.26 15.10.15 9,509 7,087,637 134.16 2012 175.90 151.20 * Valued at bid market prices. ** Share class closed on 30 July 2015. 2013 220.51 179.11

2014 224.82 194.09

2015** 239.22 213.16

Class 3 2010 195.97 153.74

2011 205.91 166.35

2012 212.93 182.52

2013 268.22 216.85

2014 273.70 237.02

2015*** 293.02 261.58

Class A 2010 103.54 82.02

2011 108.07 87.02

2012 109.63 94.67

2013 136.33 111.62

2014 138.79 119.24

2015** 146.26 130.05

* Valued at mid market prices. ** Up to 15 October 2015. *** Up to 30 July 2015 (date of share class closed).

46 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 1.00% 1.00% per calendar year on a payment date basis for an investment made on 4 January 2010. Class 2 0.82% 0.83% Calendar Net revenue Per £1,000 Class 3 0.32% 0.33% Share class year per share (p) invested (£) Class A 1.62% 1.63% Class 1 2010 2.4384 17.90 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual 2011 1.9566 14.36 Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 2012 2.3617 17.33 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 2013 2.5866 18.99

2014 2.0136 14.78

Revenue Record – Income Shares 2015* 1.7942 13.17 The revenue record table below shows the net distribution rates Class 2 2010 4.0219 26.60 per calendar year on a payment date basis for an investment 2011 3.2148 21.26 made on 4 January 2010. 2012 3.8161 25.24

Calendar Net revenue Per £1,000 2013 4.2353 28.01 Share class year per share (p) invested (£) 2014 3.4267 22.66 Class 3 2010 5.0475 55.40 2015* 3.1095 20.56 2011 4.2727 46.90 Class 3 2010 5.4706 33.63 2012 4.8891 53.66 2011 4.8179 29.62 2013 5.3442 58.66 2012 5.5658 34.22 2014 4.5272 49.69 2013 6.2440 38.38 2015* 4.1935 46.03 2014 5.4682 33.62 * Up to 15 December 2015 (the final distribution payment date). 2015** 2.2789 14.01

Class A 2010 1.8655 21.47

2011 1.2291 14.14

2012 1.5879 18.27

2013 1.6771 19.30

2014 1.0451 12.03

2015* 0.7919 9.11

* Up to 15 December 2015 (the final distribution payment date). ** Up to 30 July 2015 (date the share class closed).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 47 Aviva Investors UK Growth Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 2.03% (1.18%) Investment Companies 2.03% (1.18%) Electra Private Equity plc GBP 100,000 3,405 2.03 3,405 2.03 Collective Investment Schemes total 3,405 2.03 Equities 96.71% (97.96%) Consumer Discretionary 16.32% (10.77%) Auto Components 0.81% (0.41%) Torotrak plc GBP 21,723,370 1,358 0.81 1,358 0.81 Hotels, Restaurants & Leisure 6.05% (5.87%) Compass Group plc GBP 393,062 4,175 2.48 Merlin Entertainments plc GBP 881,987 3,252 1.94 Restaurant Group plc (The) GBP 389,674 2,743 1.63 10,170 6.05 Internet & Catalog Retail 0.58% (0.35%) AO World plc GBP 629,357 968 0.58 968 0.58 Media 4.60% (4.14%) Daily Mail & General Trust plc ‘A’ GBP 219,857 1,644 0.98 Euromoney Institutional Investor plc GBP 187,728 1,881 1.12 ITV plc GBP 1,400,464 3,414 2.03 Pinewood Group plc# GBP 187,041 786 0.47 7,725 4.60 Specialty Retail 4.28% (0.00%) BCA Marketplace plc GBP 4,111,988 7,196 4.28 7,196 4.28 Consumer Discretionary total 27,417 16.32 Consumer Staples 3.90% (3.43%) Beverages 1.64% (1.06%) Fevertree Drinks plc# GBP 410,117 1,763 1.05 Stock Spirits Group plc GBP 549,458 996 0.59 2,759 1.64 Food & Staples Retailing 2.26% (2.37%) Booker Group plc GBP 2,133,006 3,793 2.26 3,793 2.26 Consumer Staples total 6,552 3.90 Energy 4.28% (10.13%) Energy Equipment & Services 0.30% (1.23%) Pressure Technologies plc# GBP 291,304 510 0.30 510 0.30 Oil, Gas & Consumable Fuels 3.98% (8.90%) BG Group plc GBP 144,536 1,562 0.93 Cairn Energy plc GBP 1,028,909 1,627 0.97 Faroe Petroleum plc# GBP 1,352,563 980 0.59 Genel Energy plc GBP 175,170 627 0.37 Ithaca Energy, Inc. GBP 750,000 341 0.20 Ophir Energy plc GBP 1,064,402 1,091 0.65 Soco International plc GBP 241,118 448 0.27 6,676 3.98 Energy total 7,186 4.28

48 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Financials 18.09% (18.72%) Banks 3.56% (4.50%) Barclays plc GBP 2,412,203 5,974 3.56 5,974 3.56 Capital Markets 4.98% (2.65%) Jupiter Fund Management plc GBP 628,427 2,695 1.60 River & Mercantile Group plc GBP 1,092,896 2,601 1.55 Sanne Group plc GBP 1,099,041 3,077 1.83 8,373 4.98 Insurance 5.42% (5.94%) Aviva plc† GBP 913,321 4,229 2.52 Prudential plc GBP 330,229 4,874 2.90 9,103 5.42 Real Estate Management & Development 4.13% (4.11%) LSL Property Services plc GBP 498,745 1,672 1.00 Savills plc GBP 261,510 2,240 1.33 ST Modwen Properties plc GBP 703,094 3,031 1.80 6,943 4.13 Thrifts & Mortgage Finance 0.00% (1.52%) Financials total 30,393 18.09 Health Care 11.58% (10.69%) Biotechnology 2.90% (2.07%) Abcam plc# GBP 350,411 2,013 1.20 Circassia Pharmaceuticals plc GBP 1,009,887 2,858 1.70 4,871 2.90 Health Care Equipment & Supplies 1.58% (1.42%) Smith & Nephew plc GBP 235,199 2,662 1.58 2,662 1.58 Health Care Providers & Services 2.87% (2.67%) Synergy Health plc GBP 214,587 4,818 2.87 4,818 2.87 Pharmaceuticals 4.23% (4.53%) BTG plc GBP 659,378 3,732 2.22 Dechra Pharmaceuticals plc GBP 360,832 3,379 2.01 7,111 4.23 Health Care total 19,462 11.58 Industrials 12.66% (18.16%) Aerospace & Defense 1.00% (2.68%) Rolls-Royce Holdings plc GBP 239,769 1,675 1.00 1,675 1.00 Building Products 1.35% (1.06%) Volution Group plc GBP 1,413,838 2,262 1.35 2,262 1.35 Commercial Services & Supplies 4.05% (6.92%) AA plc GBP 617,444 1,692 1.01 Babcock International Group plc GBP 176,821 1,734 1.03 Rentokil Initial plc GBP 2,341,933 3,384 2.01 6,810 4.05 Electrical Equipment 0.24% (0.51%) Flowgroup plc# GBP 2,714,666 407 0.24 407 0.24

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 49 Aviva Investors UK Growth Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Machinery 1.46% (1.78%) Melrose Industries plc GBP 921,149 2,461 1.46 2,461 1.46 Road & Rail 0.00% (1.20%) Trading Companies & Distributors 3.65% (2.26%) Ashtead Group plc GBP 422,366 4,107 2.45 Lavendon Group plc GBP 1,392,474 2,023 1.20 6,130 3.65 Transportation Infrastructure 0.91% (1.75%) BBA Aviation plc GBP 585,546 1,118 0.67 BBA Aviation plc Rights 26/10/2015 GBP 702,655 408 0.24 1,526 0.91 Industrials total 21,271 12.66 Information Technology 17.24% (12.12%) Communications Equipment 0.49% (0.68%) Spirent Communications plc GBP 1,083,524 818 0.49 818 0.49 Electronic Equipment, Instruments & Components 1.53% (1.33%) Microsaic Systems plc# GBP 2,575,895 734 0.44 Microsaic Systems plc^ GBP 500,650 165 0.10 Renishaw plc GBP 87,726 1,674 0.99 2,573 1.53 Internet Software & Services 3.21% (1.86%) blur Group plc# GBP 233,309 70 0.04 Moneysupermarket.com Group plc GBP 1,088,377 3,502 2.08 Progressive Digital Media Group plc# GBP 308,453 771 0.46 Zoopla Property Group plc GBP 481,514 1,058 0.63 5,401 3.21 IT Services 5.75% (1.98%) Innovation Group plc GBP 11,905,026 4,702 2.80 Paysafe Group plc (formerly Optimal Payments plc)# GBP 728,460 2,473 1.47 Worldpay Group plc GBP 939,706 2,486 1.48 9,661 5.75 Semiconductors & Semiconductor Equipment 2.22% (2.06%) ARM Holdings plc GBP 379,345 3,722 2.22 3,722 2.22 Software 4.04% (4.21%) AVEVA Group plc GBP 53,466 1,077 0.64 Fidessa Group plc GBP 127,654 2,373 1.41 Izodia plc^ GBP 4,032,078 – – Sage Group plc (The) GBP 635,696 3,338 1.99 6,788 4.04 Information Technology total 28,963 17.24

50 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Materials 6.45% (7.20%) Chemicals 1.97% (2.59%) Johnson Matthey plc GBP 60,095 1,504 0.89 Victrex plc GBP 101,089 1,810 1.08 3,314 1.97 Containers & Packaging 2.32% (1.53%) RPC Group plc GBP 619,026 3,906 2.32 3,906 2.32 Metals & Mining 2.16% (3.08%) Rio Tinto plc GBP 141,290 3,623 2.16 3,623 2.16 Materials total 10,843 6.45 Telecommunication Services 6.19% (6.74%) Diversified Telecommunication Services 3.83% (3.89%) BT Group plc GBP 1,110,911 4,698 2.80 CityFibre Infrastructure Holdings plc# GBP 2,485,714 1,740 1.03 6,438 3.83 Wireless Telecommunication Services 2.36% (2.85%) Vodafone Group plc GBP 1,920,684 3,955 2.36 3,955 2.36 Telecommunication Services total 10,393 6.19

Equities total 162,480 96.71

Liquidity Stocks 1.19% (0.00%) Aviva Investors Sterling Liquidity Fund◊ GBP 2,000,000 2,000 1.19 Liquidity Stocks total 2,000 1.19

Investment assets 167,885 99.93 Net other assets 119 0.07 Net assets 168,004 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. # Security traded on another regulated market. ^ Unlisted, suspended or delisted security. † A related party to the Fund. ◊ Investments managed and advised by a related party of the Fund.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 51 Aviva Investors UK Growth Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains/(losses) 2 14,848 (9,789)

Revenue 3 3,919 4,485

Expenses 4 (1,753) (1,833)

Net revenue before taxation 2,166 2,652

Taxation 5 – (10)

Net revenue after taxation 2,166 2,642

Total return before distributions 17,014 (7,147)

Finance costs: Distributions 6 (2,167) (2,642)

Change in net assets attributable to shareholders from investment activities 14,847 (9,789)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 165,936 187,062

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 2,967 4,487

Amounts payable on cancellation of shares (17,645) (18,142)

(14,678) (13,655)

Change in net assets attributable to shareholders from investment activities (see above) 14,847 (9,789)

Retained distribution on accumulation shares 1,899 2,318

Closing net assets attributable to shareholders 168,004 165,936

52 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 167,885 164,503

Debtors 7 1,319 239

Cash and bank balances 8 1,821 2,020

Total other assets 3,140 2,259

Total assets 171,025 166,762

LIABILITIES

Creditors 9 (2,895) (676)

Distribution payable on income shares (126) (150)

Total liabilities (3,021) (826)

Net assets attributable to shareholders 168,004 165,936

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 53 Aviva Investors UK Growth Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains/(losses)

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains/(losses) on investments during the year comprise:

Currency losses – (3)

Non-derivative securities gains/(losses) 14,848 (9,786)

Net capital gains/(losses) 14,848 (9,789)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 10 6

Overseas dividends 15 36

Stock dividends 55 32

UK dividends 3,834 4,406

Underwriting commission 5 5

Total revenue 3,919 4,485

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 1,734 1,815

Registration fees 13 12

1,747 1,827

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 19 20

Safe custody fee 3 3

22 23

Other expenses:

Audit fee* 10 11

Printing & postage expenses 2 3

Statement fees 7 7

19 21

Total expenses 1,788 1,871

Less those expenses rebated by the ACD (35) (38)

Net expenses 1,753 1,833

* The audit fee was £8,241 (2013: £8,200) net of VAT.

54 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax suffered – 10 Total current tax for the year (see note 5.b) – 10 b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 2,166 2,652 Corporation tax at 20% 433 530 Effects of: Movement in excess expenses 348 364 Overseas dividends not subject to corporation tax (3) (7) Overseas tax suffered – 10 Stock dividends not taxable (11) (6) UK dividends not subject to corporation tax (767) (881) (433) (520) Current tax charge (see note 5.a) – 10 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no material unprovided deferred tax (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £29,325,000 (2014: £27,586,000) creating a potential deferred tax asset of £5,865,000 (2014: £5,517,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 55 Aviva Investors UK Growth Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 897 1,038 Distributions for the six months ended 15 October 1,232 1,550 2,129 2,588 Add: Revenue deducted on cancellation of shares 47 67 Deduct: Revenue received on issue of shares (9) (13) Finance costs: Distributions 2,167 2,642 Reconciliation of net distribution for the year to net revenue after taxation Distributions for the year 2,167 2,642 Equalisation on conversions (1) – Net revenue after taxation 2,166 2,642 Details of the distributions per share are set out in the distribution tables on page 59.

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 291 228 Amounts receivable on issue of shares – 11 Sales awaiting settlement 1,028 – Total debtors 1,319 239

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 1,821 2,020

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 238 239 Amounts payable for cancellation of shares 201 118 Purchases awaiting settlement 2,456 319 Total creditors 2,895 676

56 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £217,000 (2014: £221,000) and registration fees was £2,000 (2014: £2,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £253,000 (2014: £298,000). The amount outstanding at the year end was £141,000 (2014: £170,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Accumulation shares) 5,379,658 5,217,899 161,759 ACD and related parties (share class 2 Accumulation shares) 98,130,508 98,107,690 22,818 ACD and related parties (share class 3 Income shares) 1,769,871 (4,022,984) 5,792,855 ACD and related parties (share class 3 Accumulation shares) – (1,382) 1,382 ACD and related parties (share class A Accumulation shares) 7,094,512 4,748,515 2,345,997 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

12 Shareholder funds The Fund currently has four share classes: Classes 1 and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.70% Class 3: 0.30% Class A: 1.50% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 46. The distributions per share class are given in the distribution tables on page 59. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, none (2014: none) of the net assets of the Fund were denominated in currencies other than sterling.

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 2.27% (2014: 1.22%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 57 Aviva Investors UK Growth Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 28,299 71,121 Commissions 17 81 Taxes 50 238 Total purchase costs 67 319 Gross purchases total 28,366 71,440 Analysis of total sale costs Gross sales before transaction costs 41,961 79,822 Commissions (46) (112) Total sale costs (46) (112) Total sales net of transaction costs 41,915 79,710

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

58 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Growth Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 3 Group 1 2.3495 – 2.3495 2.5880 Group 2 0.9630 1.3865 2.3495 2.5880

Final distribution Final distribution Net payable paid Accumualtion shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 1.0560 – 1.0560 1.2274 Group 2 0.4465 0.6095 1.0560 1.2274 Share Class 2 Group 1 1.7991 – 1.7991 2.0446 Group 2 0.8586 0.9405 1.7991 2.0446 Share Class 3 Group 1 N/A N/A N/A 3.1379 Group 2 N/A N/A N/A 3.1379 Share Class A Group 1 0.5382 – 0.5382 0.7313 Group 2 0.2382 0.3000 0.5382 0.7313

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 3 Group 1 1.8440 – 1.8440 1.9392 Group 2 1.3707 0.4733 1.8440 1.9392

Interim distribution Interim distribution Net paid paid Accumualtion shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.7382 – 0.7382 0.7862 Group 2 0.5531 0.1851 0.7382 0.7862 Share Class 2 Group 1 1.3104 – 1.3104 1.3821 Group 2 0.7345 0.5759 1.3104 1.3821 Share Class 3 Group 1 2.2789 – 2.2789 2.3303 Group 2 2.2789 0.0000 2.2789 2.3303 Share Class A Group 1 0.2537 – 0.2537 0.3138 Group 2 0.1712 0.0825 0.2537 0.3138

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 59 Aviva Investors UK Index Tracking Fund

AVIVA INVESTORS UK INDEX TRACKING FUND

INVESTMENT OBJECTIVE The outlook for UK equities remains moderately favourable, despite the recent setback. The economic landscape is improving To track the total return (after charges) of the FTSE® All-Share in much of the ‘developed’ world and this should enable Index. companies to continue growing profits and hence dividends. Furthermore, with inflation subdued it looks like global monetary policy is set to stay extremely loose. But on a note of caution, INVESTMENT POLICY we are keeping a close eye on events in China which have the potential to sour the global economic situation. To hold all the stocks and in the same proportion as in the FTSE® All-Share Index, except where prevented by the Financial November 2015 Conduct Authority regulations. Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income The Fund may invest in any of the following financial instruments reinvested in GBP, with no initial charges applied. Market data – Bloomberg. in order to achieve its investment objective: transferable Any opinions expressed are those of the fund manager. They should not be viewed as a securities, money market instruments, units in collective guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not investment schemes, deposits and derivatives and forward a guide to the future. The value of an investment and any income from it can go down as well as transactions. up. Investors may not get back the original amount invested. “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its Issue, operation and trading. All copyright in the index values and FUND MANAGER’S REPORT constituent list vests in FTSE. Over the 12 months ended 15 October 2015, the Aviva Investors UK Index Tracking Fund (share class 1) delivered a total return of 7.30 per cent net of fees. The FTSE® All-Share Index, the Fund’s Material Portfolio Changes benchmark, returned 8.37 per cent. The sector average return Purchases Sales generated by the Fund’s peer group, the Investment Association’s Lloyds Banking Group plc BP plc UK All-Companies sector was 10.28 per cent. HSBC Holdings plc Royal Dutch Shell plc 'A' The effect of Fund charges will be to lower returns so the Fund will not be able to track the index return. Additional divergences Royal Bank of Scotland Group plc HSBC Holdings plc will be caused by timing differences between changes in the TUI AG GlaxoSmithKline plc stocks in the index and changes in the holdings in the Fund and by timing differences between re-investment of income in the Royal Dutch Shell plc 'A' British American Tobacco plc index and the re-investment of distributions in the Fund. AA plc South32 Ltd.

UK shares rose but became increasingly volatile over the summer BP plc XL Group plc months erasing earlier gains. Growing concerns over the slowdown in the Chinese economy and uncertainty over when Glencore plc Royal Dutch Shell plc 'B' the US Federal Reserve will hike interest rates have been the London Stock Exchange Group plc Vodafone Group plc predominant factors that have unsettled investors. UK economic B&M European Value Retail SA AstraZeneca plc indicators have remained broadly positive with wage growth and a strengthening labour market underpinning consumer demand. There was a wide dispersion in sector returns, with technology, Synthetic Risk and Reward Indicator consumer services, consumer goods and telecoms the best performing areas of the UK stock market. Amongst technology Lower risk Higher risk stocks accounting software firm Sage climbed after confirming it was on track to meet 2015 targets. In the consumer services sector media stocks performed well with broadcaster ITV gaining Typically lower rewards Typically higher rewards as investors welcomed its takeover of Twofour Group. In the 1 2 3 4 6 7 consumer goods sector, housebuilders such as Persimmon 5 and Barratt Developments were boosted by an unexpected The Fund has been allocated a risk number based on the historic volatility of Conservative victory in the May general election and the its share price. Where insufficient share price information is available, the risk number has been based on the historic volatility of the asset classes appropriate continuing strength of the property market. In contrast, energy to the Fund. stocks fell back as the collapse in the oil price led investors to – This indicator is based on historical data, calculated using European Union downgrade earnings forecasts. The weakest sector was basic rules, and may not be a reliable indication of the future risk profile of the materials, as the slowdown in Chinese demand for raw materials Fund. led to a further decline in metal prices. As a result, the share – The risk and reward category shown is not guaranteed to remain unchanged price of major mining companies such as Anglo American and and may change over time. The lowest category does not mean ‘risk free’. Glencore fell heavily. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

60 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

INVESTMENT PERFORMANCE

Net Asset Value Ongoing Charges Figure* Net asset value* Shares Pence per Share class 15.10.15 15.10.14 Share class As at £000 in issue share Class 1 0.93%** 0.93% Class 1 15.10.13 96,599 140,449,355 68.78 Class 2 0.23% 0.23% 15.10.14 95,059 145,783,347 65.21 Class 3 (Acc) 0.23% 0.23% 15.10.15 93,049 136,608,216 68.11 Class A (Acc) 1.50% 1.50% Class 2 15.10.13 306 272,017 112.62 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges 15.10.14 3,387 3,173,678 106.73 to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 15.10.15 5,763 5,168,815 111.50 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. Class 3 (Acc) 15.10.13 529,088 290,481,244 182.14 ** Please note that with effect from 8 February 2016, the Annual Management Charge on share 15.10.14 550,768 308,592,250 178.48 class 1 is being reduced from 0.9% to 0.6%. This will reduce the OCF to 0.63%.

15.10.15 581,239 301,445,279 192.82 Class A (Acc) 15.10.13 55,088 66,671,458 82.63 Revenue Record 15.10.14 56,304 70,437,292 79.94 The revenue record table below shows the net distribution rates 15.10.15 62,142 72,875,634 85.27 per calendar year on a payment date basis for an investment made on 4 January 2010 (10 December 2012 for Share Class 2). * Valued at bid market prices. Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Share Price Record Class 1 2010 1.2780 22.95

Calendar Highest price* Lowest price* 2011 1.3699 24.60 Share class year (p) (p) 2012 1.6943 30.43 Class 1 2010 61.60 49.47 2013 1.7549 31.52 2011 62.76 51.38 2014 1.7486 31.40 2012 61.90 54.35 2015** 1.9049 34.21 2013 71.44 62.58 Class 2 2012* N/A N/A 2014 73.16 65.13 2013 3.1009 31.01 2015*** 76.15 64.78 2014 3.6849 36.85 Class 2 2012** 100.86 99.91 2015** 3.9429 39.43 2013 117.05 102.09 Class 3 (Acc) 2010 3.9018 30.00 2014 120.12 106.60 2011 4.3165 33.18 2015*** 125.08 106.32 2012 5.2598 40.44 Class 3 (Acc) 2010 148.00 117.22 2013 5.7393 44.12 2011 152.77 125.29 2014 6.0048 46.16 2012 158.68 136.78 2015** 6.6429 51.07 2013 189.24 160.61 Class A (Acc) 2010 1.0807 17.48 2014 197.08 178.26 2011 1.1699 18.92 2015*** 209.86 180.39 2012 1.5789 25.54 Class A (Acc) 2010 69.56 55.38 2013 1.6299 26.37 2011 71.32 58.32 2014 1.6187 26.18 2012 72.74 63.13 2015** 1.8446 29.83 2013 85.61 73.59 * From 10 December 2012 (date of launch) 2014 88.39 79.84 ** Up to 15 December 2015 (the final distribution payment date). 2015*** 93.26 79.92

* Valued at mid market prices. ** From 10 December 2012 (date of launch). *** Up to 15 October 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 61 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 3.75% (3.52%) Investment Companies 3.75% (3.52%) 3i Infrastructure plc GBP 193,096 330 0.04 Aberdeen Asian Income Fund Ltd. GBP 68,285 114 0.02 Aberdeen Asian Smaller Companies Investment Trust plc GBP 13,686 102 0.01 Aberdeen New Dawn Investment Trust plc GBP 44,009 69 0.01 Aberdeen New Thai Investment Trust plc GBP 7,720 29 – Aberdeen UK Tracker Trust plc GBP 36,941 111 0.01 Aberforth Geared Income Trust plc GBP 39,780 79 0.01 Aberforth Smaller Companies Trust plc GBP 33,935 385 0.05 Advance Developing Markets Fund Ltd. GBP 18,762 75 0.01 Alcentra European Floating Rate Income Fund Ltd. GBP 47,580 49 0.01 Alliance Trust plc GBP 198,925 958 0.12 Allianz Technology Trust plc GBP 7,635 43 0.01 Artemis Alpha Trust plc GBP 15,347 39 0.01 Asian Total Return Investment Co. plc GBP 26,256 49 0.01 BACIT Ltd. Fund GBP 125,856 162 0.02 Baillie Gifford Japan Trust plc (The) GBP 25,331 107 0.01 Baillie Gifford Shin Nippon plc GBP 11,776 46 0.01 Bankers Investment Trust plc (The) GBP 40,556 249 0.03 Baring Emerging Europe Fund plc GBP 8,779 46 0.01 BBGI SICAV SA Fund GBP 154,622 198 0.03 Beta Global Emerging Market Trust plc GBP 12,346 – – BH Global Ltd. Fund GBP 10,867 138 0.02 BH Macro Ltd. Fund GBP 13,275 270 0.04 Biotech Growth Trust plc (The) GBP 24,737 154 0.02 BlackRock Commodities Income Investment Trust plc GBP 31,871 21 – BlackRock Frontiers Investment Trust plc GBP 54,371 55 0.01 BlackRock Greater Europe Investment Trust plc GBP 36,021 86 0.01 BlackRock Income Strategies Trust plc GBP 99,630 135 0.02 BlackRock Latin American Investment Trust plc GBP 14,527 42 0.01 BlackRock New Energy Inv Trust Plc GBP 72,800 – – BlackRock North American Income Trust plc GBP 28,564 31 – BlackRock Smaller Cos. Trust plc GBP 17,288 159 0.02 BlackRock Throgmorton Trust plc GBP 28,395 94 0.01 BlackRock World Mining Trust plc GBP 64,840 156 0.02 Bluecrest Allblue Fund Ltd. GBP 144,816 273 0.03 Bluefield Solar Income Fund Ltd. GBP 98,990 102 0.01 British Empire Securities and General Trust plc GBP 49,715 233 0.03 Brunner Investment Trust plc (The) GBP 11,441 59 0.01 Caledonia Investments Fund plc GBP 11,947 281 0.04 Capital Gearing Trust plc GBP 968 32 – City Merchants High Yield Trust Ltd. GBP 28,758 52 0.01 City of London Investment Trust plc (The) GBP 108,989 423 0.05 CQS New City High Yield Fund Ltd. GBP 125,650 74 0.01 CVC Credit Partners European Opportunities Ltd. Fund GBP 82,630 86 0.01 Dexion Absolute Ltd. Fund GBP 23,950 44 0.01 Diverse Income Trust plc (The) GBP 115,174 106 0.01 Dunedin Income Growth Investment Trust plc GBP 55,260 131 0.02 Dunedin Smaller Companies Investment Trust plc GBP 15,896 32 – DW Catalyst Fund Ltd. GBP 2,204 27 – Ecofin Water & Power Opportunities plc GBP 72,435 86 0.01 Edinburgh Dragon Trust plc GBP 77,001 189 0.03 Edinburgh Investment Trust plc (The) GBP 69,805 486 0.07 Edinburgh Worldwide Investment Trust plc GBP 15,848 70 0.01 Electra Private Equity plc GBP 12,851 440 0.05 EP Global Opportunities Trust plc GBP 19,181 43 0.01 European Investment Trust plc GBP 15,975 115 0.02 F&C Capital & Income Investment Trust plc GBP 30,010 78 0.01 F&C Commercial Property Trust Ltd. GBP 182,956 260 0.03 F&C Global Smaller Companies plc GBP 18,930 181 0.02 F&C Private Equity Trust plc GBP 26,410 59 0.01

62 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Investment Companies 3.75% (3.52%) (continued) Fidelity Asian Values plc Fund GBP 21,341 48 0.01 Fidelity China Special Situations Fund plc GBP 209,047 271 0.04 Fidelity European Values Fund plc GBP 152,700 253 0.03 Fidelity Japanese Values Fund plc GBP 37,408 29 – Fidelity Special Values Fund plc GBP 65,785 131 0.02 Finsbury Growth & Income Trust plc GBP 37,987 218 0.03 Foreign & Colonial Investment Trust plc GBP 203,562 868 0.11 Foresight Solar Fund Ltd. GBP 75,996 77 0.01 Fundsmith Emerging Equities Trust GBP 7,000 67 0.01 Gartmore Irish Growth Fund^ GBP 2,390 – – GCP Infrastructure Investments Fund Ltd. GBP 206,011 252 0.03 Genesis Emerging Markets Fund Ltd. GBP 49,058 232 0.03 Govett Strategic Investment Trust plc GBP 17,530 – – Graphite Enterprise Trust plc GBP 24,929 146 0.02 Greencoat UK Wind Fund plc GBP 165,970 186 0.03 Hansa Trust plc GBP 1,300 10 – Henderson Alternative Strategies Trust plc GBP 20,108 44 0.01 Henderson Diversified Income Fund Ltd. GBP 46,956 42 0.01 Henderson European Focus Trust plc GBP 6,450 64 0.01 Henderson EuroTrust plc GBP 7,405 64 0.01 Henderson Far East Income Fund Ltd. GBP 39,494 115 0.02 Henderson Global Trust plc GBP 14,052 51 0.01 Henderson High Income Trust plc GBP 39,311 69 0.01 Henderson Smaller Companies Investment Trust plc (The) GBP 27,380 180 0.02 Herald Investment Trust plc GBP 28,268 200 0.03 HgCapital Trust plc GBP 12,685 140 0.02 HICL Infrastructure Co. Fund Ltd. GBP 455,657 709 0.10 ICG-Longbow Senior Secured UK Property Debt Investments Ltd. GBP 34,452 36 – Impax Environmental Markets Fund plc GBP 82,821 125 0.02 International Biotechnology Trust Fund plc GBP 16,593 76 0.01 International Public Partnerships Ltd. GBP 301,224 398 0.04 INVESCO Asia Trust plc GBP 31,622 54 0.01 Invesco Income Growth Trust plc GBP 18,959 53 0.01 Invesco Perpetual UK Smaller Companies Investment Trust plc GBP 21,311 81 0.01 John Laing Environmental Assets Group Fund Ltd. GBP 35,460 38 0.01 John Laing Infrastructure Fund Ltd. GBP 251,446 302 0.05 JPMorgan American Investment Trust plc GBP 101,970 267 0.04 JPMorgan Asian Investment Trust plc GBP 35,603 76 0.01 JPMorgan Chinese Investment Trust plc GBP 27,298 45 0.01 JPMorgan Claverhouse Investment Trust plc GBP 19,265 113 0.02 JPMorgan Emerging Markets Investment Trust plc GBP 47,183 263 0.04 JPMorgan Eur Smaller Companies Trust plc GBP 59,860 148 0.02 JPMorgan European Investment Trust plc GBP 31,525 76 0.01 JPMorgan European Investment Trust plc GBP 19,055 24 – JPMorgan Global Convertibles Income Fund Ltd. GBP 75,262 71 0.01 JPMorgan Global Emerging Markets Income Trust plc GBP 102,386 95 0.01 JPMorgan Indian Investment Trust plc GBP 37,838 194 0.03 JPMorgan Japan Smaller Companies Trust plc GBP 13,903 33 – JPMorgan Japanese Investment Trust plc GBP 57,164 151 0.02 JPMorgan Mid Cap Investment Trust plc GBP 8,842 83 0.01 JPMorgan Overseas Investment Trust plc GBP 9,150 93 0.01 JPMorgan Russian Securities Fund plc GBP 18,387 58 0.01 JPMorgan Smaller Companies Investment Trust plc GBP 5,797 52 0.01 Jupiter European Opportunities Trust plc GBP 31,408 164 0.02 Jupiter US Smaller Companies Fund plc GBP 8,727 52 0.01 Keystone Investment Trust plc GBP 4,875 87 0.01 Law Debenture Corp. plc GBP 42,493 217 0.03 LMS Capital Fund plc GBP 54,455 40 0.01 London & St Lawrence Investment Co. plc GBP 7,410 25 – Lowland Investment Co. plc GBP 9,706 127 0.02 Macau Property Opportunities Fund Ltd. GBP 26,030 44 0.01 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 63 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Investment Companies 3.75% (3.52%) (continued) Majedie Investments Fund plc GBP 8,501 22 – Martin Currie Asia Unconstrained Trust plc GBP 14,045 37 – Martin Currie Portfolio Investment Trust plc GBP 45,071 77 0.01 MedicX Fund Ltd. GBP 122,699 101 0.01 Mercantile Investment Trust plc GBP 34,936 580 0.08 Merchants Trust plc (The) GBP 37,457 163 0.02 Middlefield Canadian Income PCC Fund GBP 39,413 30 – Monks Investment Trust plc (The) GBP 78,042 308 0.04 Montanaro European Smaller Cos. Trust plc GBP 6,225 33 – Montanaro UK Smaller Companies Investment Trust plc GBP 12,300 62 0.01 Murray Income Trust plc GBP 24,374 168 0.02 Murray International Trust plc GBP 45,799 393 0.04 NB Global Floating Rate Income Fund Ltd. GBP 438,280 411 0.05 New India Investment Trust plc GBP 20,715 65 0.01 NextEnergy Solar Fund Ltd. GBP 86,590 90 0.01 North American Income Trust plc GBP 13,354 106 0.01 North Atlantic Smaller Cos. Investment Trust plc GBP 3,701 78 0.01 P2P Global Investments Fund plc GBP 16,730 171 0.02 P2P Global Investments Fund plc C GBP 14,300 144 0.02 Pacific Assets Trust plc GBP 38,505 74 0.01 Pacific Horizon Investment Trust plc GBP 29,023 48 0.01 Pantheon International Participations Fund plc GBP 12,216 161 0.02 Perpetual Income and Growth Investment Trust plc GBP 84,855 345 0.05 Personal Assets Trust plc GBP 587 201 0.03 Picton Property Income Ltd. Fund GBP 194,555 139 0.02 Polar Capital Global Financials Trust plc GBP 55,055 57 0.01 Polar Capital Global Healthcare Growth & Income Trust plc GBP 43,305 72 0.01 Polar Capital Technology Trust plc GBP 48,085 265 0.04 Ranger Direct Lending Fund plc GBP 4,830 52 0.01 RIT Capital Partners plc GBP 45,552 703 0.08 Riverstone Energy Ltd. GBP 18,081 156 0.02 Ruffer Investment Co. Ltd. Fund GBP 56,274 118 0.02 Schroder AsiaPacific Fund plc GBP 61,256 161 0.02 Schroder Income Growth Fund plc GBP 22,581 59 0.01 Schroder Japan Growth Fund plc GBP 45,680 66 0.01 Schroder Oriental Income Fund Ltd. GBP 78,671 144 0.02 Schroder UK Growth Fund plc GBP 58,836 91 0.01 Schroder UK Mid Cap Fund plc GBP 11,995 54 0.01 Scottish American Investment Co. plc GBP 47,066 115 0.02 Scottish Investment Trust plc GBP 38,748 230 0.03 Scottish Mortgage Investment Trust plc GBP 454,720 1,111 0.14 Scottish Oriental Smaller Companies Trust plc GBP 11,561 83 0.01 Securities Trust of Scotland Fund plc GBP 42,560 55 0.01 Securities Trust of Scotland Fund plc^ GBP 83,950 – – Sequoia Economic Infrastructure Income Fund Ltd. GBP 53,700 56 0.01 SQN Asset Finance Income Fund Ltd. GBP 54,500 58 0.01 Standard Life Equity Income Trust plc GBP 13,943 62 0.01 Standard Life European Private Equity Trust plc GBP 28,959 62 0.01 Standard Life UK Smaller Co. Trust GBP 26,083 87 0.01 Starwood European Real Estate Finance Ltd. Fund GBP 82,997 86 0.01 Strategic Equity Capital Fund plc GBP 21,340 48 0.01 Temple Bar Investment Trust plc GBP 23,817 260 0.04 Templeton Emerging Markets Investment Trust plc GBP 113,711 503 0.07 TR European Growth Trust plc GBP 17,836 104 0.01 TR Property Investment Trust plc GBP 113,706 337 0.05 Troy Income & Growth Trust plc GBP 84,539 59 0.01 TwentyFour Income Fund Ltd. GBP 94,814 116 0.02 TwentyFour Select Monthly Income Fund Ltd. GBP 51,060 48 0.01 UK Commercial Property Trust Ltd. GBP 218,624 187 0.03 Utilico Emerging Markets Fund Ltd. GBP 78,324 128 0.02 Value and Income Trust plc GBP 17,133 41 0.01

64 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Investment Companies 3.75% (3.52%) VPC Specialty Lending Investments Fund plc GBP 71,600 72 0.01 Witan Investment Trust plc GBP 68,829 524 0.06 Witan Pacific Investment Trust plc GBP 21,930 48 0.01 Woodford Patient Capital Trust plc GBP 286,380 300 0.04 Worldwide Healthcare Trust plc GBP 17,559 291 0.04 27,846 3.75 Collective Investment Schemes total 27,846 3.75 Equities 94.44% (94.35%) Consumer Discretionary 11.64% (9.56%) Auto Components 0.22% (0.24%) GKN plc GBP 589,702 1,654 0.22 1,654 0.22 Distributors 0.21% (0.17%) Connect Group plc GBP 88,337 148 0.02 Headlam Group plc GBP 29,490 149 0.02 Inchcape plc GBP 159,791 1,159 0.16 John Menzies plc GBP 17,798 73 0.01 1,529 0.21 Diversified Consumer Services 0.05% (0.05%) Dignity plc GBP 17,968 405 0.05 405 0.05 Hotels, Restaurants & Leisure 3.21% (2.65%) 888 Holdings plc GBP 50,455 83 0.01 Betfair Group plc GBP 29,174 901 0.12 Bwin Party Digital Entertainment plc GBP 255,502 285 0.04 Carnival plc GBP 65,293 2,190 0.30 Compass Group plc GBP 596,971 6,340 0.84 Domino’s Pizza Group plc GBP 48,420 490 0.07 Enterprise Inns plc GBP 184,559 195 0.03 Fuller Smith & Turner plc ‘A’ GBP 11,474 130 0.02 Greene King plc GBP 109,703 863 0.12 InterContinental Hotels Group plc GBP 84,587 1,956 0.26 J D Wetherspoon plc GBP 31,495 237 0.03 Ladbrokes plc GBP 363,604 376 0.05 Marston’s plc GBP 203,719 316 0.04 Merlin Entertainments plc GBP 252,458 928 0.13 Millennium & Copthorne Hotels plc GBP 42,968 214 0.03 Mitchells & Butlers plc GBP 84,691 280 0.04 Punch Taverns plc GBP 81,060 99 0.01 Rank Group plc GBP 61,659 167 0.02 Restaurant Group plc (The) GBP 72,040 510 0.07 Sportech plc GBP 53,584 31 – SSP Group plc GBP 168,340 486 0.07 Thomas Cook Group plc GBP 549,550 661 0.09 TUI AG GBP 168,626 2,074 0.28 Whitbread plc GBP 64,516 2,966 0.40 William Hill plc GBP 314,104 1,069 0.14 23,847 3.21 Household Durables 1.44% (0.96%) Barratt Developments plc GBP 352,474 2,196 0.30 Bellway plc GBP 43,739 1,067 0.14 Berkeley Group Holdings plc GBP 45,040 1,454 0.20 Bovis Homes Group plc GBP 48,183 475 0.06 Crest Nicholson Holdings plc GBP 87,308 467 0.06 DFS Furniture plc GBP 31,270 93 0.01 Henry Boot plc GBP 32,631 74 0.01

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 65 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Household Durables 1.44% (0.96%) (continued) MJ Gleeson plc GBP 13,065 62 0.01 Persimmon plc GBP 109,443 2,136 0.29 Redrow plc GBP 77,625 341 0.05 Taylor Wimpey plc GBP 1,155,950 2,202 0.30 Vitec Group plc (The) GBP 14,903 90 0.01 10,657 1.44 Internet & Catalog Retail 0.17% (0.16%) AO World plc GBP 64,250 100 0.01 Findel plc GBP 30,128 69 0.01 Home Retail Group plc GBP 299,958 439 0.06 N Brown Group plc GBP 55,924 195 0.03 Ocado Group plc GBP 143,657 486 0.06 1,289 0.17 Leisure Products 0.02% (0.03%) Games Workshop Group plc GBP 10,548 58 0.01 Photo-Me International plc GBP 65,727 105 0.01 163 0.02 Media 3.62% (3.09%) 4imprint Group plc GBP 10,214 132 0.02 Bloomsbury Publishing plc GBP 24,924 42 0.01 Centaur Media plc GBP 46,606 36 – Chime Communications plc^ GBP 28,074 102 0.01 Cineworld Group plc GBP 69,366 398 0.05 Entertainment One Ltd. GBP 82,866 183 0.03 Entertainment One Ltd. Rights 19/10/2015 GBP 36,829 24 – Euromoney Institutional Investor plc GBP 14,337 144 0.02 Huntsworth plc GBP 85,274 31 – Informa plc GBP 232,203 1,344 0.18 ITE Group plc GBP 86,652 125 0.02 ITV plc GBP 1,339,527 3,281 0.44 Johnston Press plc GBP 31,568 24 – Pearson plc GBP 290,937 3,459 0.47 RELX plc GBP 405,015 4,641 0.63 Rightmove plc GBP 32,858 1,182 0.16 Sky plc GBP 375,201 4,026 0.54 STV Group plc GBP 12,410 52 0.01 Trinity Mirror plc GBP 94,408 144 0.02 UBM plc GBP 157,316 802 0.11 UTV Media plc GBP 34,334 59 0.01 WPP plc GBP 469,921 6,635 0.89 26,866 3.62 Multiline Retail 1.13% (0.87%) B&M European Value Retail SA GBP 238,520 768 0.10 Debenhams plc GBP 447,858 367 0.05 Marks & Spencer Group plc GBP 589,019 2,886 0.39 Mothercare plc GBP 57,528 130 0.02 Next plc GBP 52,711 4,037 0.54 Poundland Group plc GBP 64,850 188 0.03 8,376 1.13 Speciality Retail 1.25% (0.99%) Card Factory plc GBP 76,500 268 0.04 Carpetright plc GBP 18,483 98 0.01 Darty plc GBP 142,180 136 0.02 Dixons Carphone plc GBP 358,413 1,541 0.21 Dunelm Group plc GBP 33,081 305 0.04 GAME Digital plc GBP 30,440 61 0.01 Halfords Group plc GBP 72,494 316 0.04 Howden Joinery Group plc GBP 220,788 1,022 0.14

66 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Speciality Retail 1.25% (0.99%) (continued) JD Sports Fashion plc GBP 21,932 210 0.03 Kingfisher plc GBP 834,910 3,000 0.40 Laura Ashley Holdings plc GBP 69,193 19 – Lookers plc GBP 114,211 193 0.03 Moss Bros Group plc GBP 31,130 31 – Pendragon plc GBP 511,086 210 0.03 Pets at Home Group plc GBP 125,360 364 0.05 Sports Direct International plc GBP 91,344 594 0.08 SuperGroup plc GBP 11,583 160 0.02 Topps Tiles plc GBP 51,881 76 0.01 WH Smith plc GBP 40,984 661 0.09 9,265 1.25 Textiles, Apparel & Luxury Goods 0.32% (0.35%) Burberry Group plc GBP 158,522 2,063 0.27 Jimmy Choo plc GBP 39,900 53 0.01 Ted Baker plc GBP 9,313 269 0.04 2,385 0.32 Consumer Discretionary total 86,436 11.64 Consumer Staples 15.14% (13.62%) Beverages 4.30% (3.99%) A.G.Barr plc GBP 31,046 163 0.02 Britvic plc GBP 84,994 583 0.08 Coca-Cola HBC AG GBP 70,192 1,070 0.14 Diageo plc GBP 901,230 16,525 2.22 SABMiller plc GBP 338,263 13,505 1.82 Stock Spirits Group plc GBP 69,019 126 0.02 31,972 4.30 Food & Staples Retailing 1.31% (1.19%) Booker Group plc GBP 576,753 1,015 0.14 Greggs plc GBP 36,095 397 0.05 J Sainsbury plc GBP 505,309 1,326 0.18 McColl’s Retail Group plc GBP 25,490 37 – Tesco plc GBP 2,906,530 5,585 0.76 WM Morrison Supermarkets plc GBP 774,447 1,344 0.18 9,704 1.31 Food Products 0.88% (0.73%) Anglo-Eastern Plantations plc GBP 7,006 40 0.01 Associated British Foods plc GBP 124,693 4,110 0.56 Cranswick plc GBP 17,887 306 0.04 Dairy Crest Group plc GBP 49,009 297 0.04 Devro plc GBP 60,909 182 0.02 Greencore Group plc GBP 144,537 427 0.06 Hilton Food Group plc GBP 17,313 81 0.01 Premier Foods plc GBP 251,460 89 0.01 Tate & Lyle plc GBP 165,787 944 0.13 6,476 0.88 Household Products 1.94% (1.72%) McBride plc GBP 69,562 114 0.02 PZ Cussons plc GBP 109,112 337 0.05 Reckitt Benckiser Group plc GBP 227,474 13,939 1.87 14,390 1.94 Personal Products 1.68% (1.53%) Unilever plc GBP 431,683 12,476 1.68 12,476 1.68

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 67 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Tobacco 5.03% (4.46%) British American Tobacco plc GBP 666,968 25,372 3.42 Imperial Tobacco Group plc GBP 344,722 11,948 1.61 37,320 5.03 Consumer Staples total 112,338 15.14 Energy 11.28% (13.78%) Energy Equipment & Services 0.43% (0.48%) Amec Foster Wheeler plc GBP 139,020 1,123 0.14 Gulf Marine Services plc GBP 46,990 54 0.01 Hunting plc GBP 50,338 223 0.03 John Wood Group plc GBP 130,096 856 0.12 Lamprell plc GBP 87,518 110 0.01 Petrofac Ltd. GBP 92,804 865 0.12 3,231 0.43 Oil, Gas & Consumable Fuels 10.85% (13.30%) BG Group plc GBP 1,217,762 13,152 1.77 BP plc GBP 6,525,596 24,775 3.34 Cairn Energy plc GBP 205,019 322 0.04 EnQuest plc GBP 261,505 82 0.01 Exillon Energy plc GBP 42,162 48 0.01 James Fisher & Sons plc GBP 14,947 141 0.02 Nostrum Oil & Gas plc GBP 21,900 111 0.01 Ophir Energy plc GBP 244,747 249 0.03 Premier Oil plc GBP 183,586 158 0.02 Royal Dutch Shell plc ‘A’ GBP 1,393,766 24,789 3.34 Royal Dutch Shell plc ‘B’ GBP 868,791 15,673 2.11 Soco International plc GBP 79,906 150 0.02 Stobart Group Ltd. GBP 103,163 115 0.02 Tullow Oil plc GBP 323,560 800 0.11 80,565 10.85 Energy total 83,796 11.28 Financials 21.79% (21.41%) Banks 10.42% (11.32%) Aldermore Group plc GBP 49,460 127 0.02 Bank of Georgia Holdings plc GBP 12,236 240 0.03 Barclays plc GBP 5,992,290 14,861 2.00 HSBC Holdings plc GBP 6,983,088 36,243 4.88 Lloyds Banking Group plc GBP 21,854,390 16,308 2.20 Royal Bank of Scotland Group plc GBP 1,128,344 3,681 0.50 Shawbrook Group plc GBP 32,910 108 0.01 Standard Chartered plc GBP 747,008 5,565 0.75 Virgin Money Holdings UK plc GBP 63,630 258 0.03 77,391 10.42 Capital Markets 1.78% (1.54%) 3i Group plc GBP 344,792 1,614 0.23 Aberdeen Asset Management plc GBP 357,349 1,220 0.17 Allied Minds plc GBP 40,720 178 0.02 Ashmore Group plc GBP 138,718 397 0.05 Brewin Dolphin Holdings plc GBP 95,650 248 0.03 City of London Investment Group plc GBP 10,124 33 – Close Brothers Group plc GBP 53,028 759 0.10 F&C UK Real Estate Investment Ltd., REIT GBP 77,452 79 0.01 Hargreaves Lansdown plc GBP 77,582 1,086 0.15 Henderson Group plc GBP 375,351 999 0.13 ICAP plc GBP 190,778 882 0.12 Intermediate Capital Group plc GBP 116,614 604 0.08 Investec plc GBP 181,016 974 0.13

68 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Capital Markets 1.78% (1.54%) (continued) IP Group plc GBP 167,511 386 0.05 Jupiter Fund Management plc GBP 149,326 651 0.09 Liontrust Asset Management plc GBP 12,650 35 – Man Group plc GBP 548,410 872 0.12 Rathbone Brothers plc GBP 16,849 353 0.05 Sanne Group plc GBP 25,750 72 0.01 Schroders plc GBP 40,434 1,133 0.15 Standard Life Investment Property Income Trust plc, REIT GBP 99,037 85 0.01 SVG Capital plc GBP 60,889 288 0.04 Tullett Prebon plc GBP 84,218 287 0.04 13,235 1.78 Consumer Finance 0.27% (0.20%) International Personal Finance plc GBP 82,384 336 0.05 Provident Financial plc GBP 52,307 1,662 0.22 S&U plc GBP 1,122 28 – 2,026 0.27 Diversified Financial Services 0.52% (0.34%) Arrow Global Group plc GBP 52,601 131 0.02 IG Group Holdings plc GBP 129,240 948 0.13 London Stock Exchange Group plc GBP 111,649 2,762 0.37 Utilico Emerging Markets Ltd. GBP 15,664 1 – 3,842 0.52 Insurance 5.88% (5.63%) Admiral Group plc GBP 70,909 1,122 0.15 Amlin plc GBP 177,947 1,172 0.16 Aviva plc† GBP 1,447,534 6,734 0.90 Beazley plc GBP 185,768 645 0.09 Charles Taylor plc GBP 22,992 57 0.01 Chesnara plc GBP 45,540 152 0.02 Direct Line Insurance Group plc GBP 491,991 1,849 0.25 esure Group plc GBP 88,334 211 0.03 Hansard Global plc GBP 24,586 28 – Hiscox Ltd. GBP 101,640 938 0.12 Jardine Lloyd Thompson Group plc GBP 43,499 437 0.06 Just Retirement Group plc GBP 84,800 140 0.02 Lancashire Holdings Ltd. GBP 70,875 489 0.07 Legal & General Group plc GBP 2,124,637 5,222 0.70 Novae Group plc GBP 22,704 198 0.03 Old Mutual plc GBP 1,748,718 3,616 0.49 Partnership Assurance Group plc GBP 51,073 69 0.01 Phoenix Group Holdings GBP 80,401 650 0.09 Prudential plc GBP 913,024 13,569 1.82 RSA Insurance Group plc GBP 363,394 1,474 0.20 Saga plc GBP 211,190 431 0.06 St James’s Place plc GBP 183,526 1,589 0.21 Standard Life plc GBP 699,865 2,860 0.39 43,652 5.88 Real Estate Investment Trusts (REITs) 2.27% (1.82%) Assura plc, REIT GBP 361,007 196 0.03 Big Yellow Group plc, REIT GBP 50,660 354 0.05 British Land Co. plc (The), REIT GBP 361,967 3,068 0.41 Capital & Regional plc, REIT GBP 179,227 118 0.02 Custodian plc, REIT GBP 63,980 68 0.01 Derwent London plc, REIT GBP 35,633 1,293 0.17 Empiric Student Property plc, REIT GBP 108,720 116 0.02 Great Portland Estates plc, REIT GBP 122,360 1,022 0.14 Hammerson plc, REIT GBP 280,624 1,715 0.23 Hansteen Holdings plc, REIT GBP 249,108 299 0.04

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 69 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Real Estate Investment Trusts (REITs) 2.27% (1.82%) (continued) Intu Properties plc, REIT GBP 328,458 1,114 0.15 Land Securities Group plc, REIT GBP 281,494 3,651 0.49 LondonMetric Property plc, REIT GBP 209,401 343 0.05 McKay Securities plc, REIT GBP 30,785 81 0.01 Mucklow A & J Group plc, REIT GBP 16,800 77 0.01 Primary Health Properties plc, REIT GBP 38,282 162 0.02 Redefine International plc, REIT GBP 317,279 168 0.02 Safestore Holdings plc, REIT GBP 74,699 227 0.03 Schroder Real Estate Investment Trust Ltd. GBP 185,532 109 0.01 Segro plc, REIT GBP 265,378 1,136 0.15 Shaftesbury plc, REIT GBP 98,852 873 0.12 Town Centre Securities plc, REIT GBP 8,833 28 – Tritax Big Box plc, REIT GBP 226,870 282 0.04 Workspace Group plc, REIT GBP 41,258 375 0.05 16,875 2.27 Real Estate Management & Development 0.56% (0.49%) Capital & Counties Properties plc GBP 258,507 1,074 0.14 CLS Holdings plc GBP 6,098 110 0.01 Countrywide plc GBP 55,847 262 0.04 Daejan Holdings plc GBP 1,783 108 0.01 Development Securities plc GBP 42,787 109 0.01 Foxtons Group plc GBP 93,522 209 0.03 Grainger plc GBP 146,160 349 0.05 Helical Bar plc GBP 35,523 150 0.02 Kennedy Wilson Europe Real Estate plc GBP 41,878 466 0.06 LSL Property Services plc GBP 29,908 102 0.01 Mountview Estates plc GBP 570 64 0.01 Raven Russia Ltd. GBP 153,738 65 0.01 Savills plc GBP 45,805 392 0.05 ST Modwen Properties plc GBP 64,056 274 0.04 UNITE Group plc (The) GBP 78,927 491 0.07 4,225 0.56 Thrifts & Mortgage Finance 0.09% (0.07%) OneSavings Bank plc GBP 34,150 124 0.02 Paragon Group of Cos. plc (The) GBP 109,541 473 0.06 Real Estate Credit Investments PCC Ltd. GBP 26,460 46 0.01 643 0.09 Financials total 161,889 21.79 Health Care 8.11% (8.19%) Biotechnology 0.08% (0.04%) Circassia Pharmaceuticals plc GBP 65,269 184 0.02 Genus plc GBP 21,543 313 0.05 Oxford Biomedica plc GBP 923,380 67 0.01 564 0.08 Health Care Equipment & Supplies 0.51% (0.44%) Consort Medical plc GBP 17,376 163 0.02 Smith & Nephew plc GBP 320,838 3,628 0.49 3,791 0.51 Health Care Providers & Services 0.25% (0.15%) Al Noor Hospitals Group plc GBP 27,783 328 0.04 Cambian Group plc GBP 31,930 85 0.01 NMC Health plc GBP 23,072 187 0.03 Spire Healthcare Group plc GBP 100,460 389 0.05 Synergy Health plc GBP 20,104 453 0.06 UDG Healthcare plc GBP 87,485 425 0.06 1,867 0.25

70 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Life Sciences Tools & Services 0.01% (0.00%) PureTech Health plc GBP 46,700 68 0.01 68 0.01 Pharmaceuticals 7.26% (7.56%) AstraZeneca plc GBP 451,542 18,604 2.51 BTG plc GBP 135,803 773 0.10 Dechra Pharmaceuticals plc GBP 32,046 301 0.04 GlaxoSmithKline plc GBP 1,739,603 23,153 3.12 Hikma Pharmaceuticals plc GBP 47,890 987 0.13 Indivior plc GBP 229,514 492 0.07 Shire plc GBP 210,331 9,197 1.24 Skyepharma plc GBP 38,080 123 0.02 Vectura Group plc GBP 145,167 240 0.03 53,870 7.26 Health Care total 60,160 8.11 Industrials 8.94% (8.72%) Aerospace & Defense 1.86% (2.13%) Avon Rubber plc GBP 10,199 109 0.01 BAE Systems plc GBP 1,131,717 5,127 0.69 Chemring Group plc GBP 68,201 154 0.02 Cobham plc GBP 407,403 1,191 0.16 Meggitt plc GBP 281,821 1,315 0.18 QinetiQ Group plc GBP 213,875 483 0.07 Rolls-Royce Holdings plc GBP 657,874 4,585 0.62 Senior plc GBP 148,460 393 0.05 Ultra Electronics Holdings plc GBP 24,739 439 0.06 13,796 1.86 Air Freight & Logistics 0.18% (0.14%) Royal Mail plc GBP 275,519 1,247 0.17 UK Mail Group plc GBP 6,591 27 – Wincanton plc GBP 39,417 75 0.01 1,349 0.18 Airlines 0.77% (0.52%) easyJet plc GBP 88,894 1,529 0.20 Flybe Group plc GBP 74,780 64 0.01 International Consolidated Airlines Group SA GBP 655,650 3,842 0.52 Wizz Air Holdings plc GBP 14,600 272 0.04 5,707 0.77 Building Products 0.06% (0.05%) Norcros plc GBP 19,141 37 – Polypipe Group plc GBP 54,760 172 0.02 Tyman plc GBP 60,175 177 0.03 Volution Group plc GBP 24,700 41 0.01 427 0.06 Commercial Services & Supplies 1.24% (1.21%) AA plc GBP 218,093 592 0.08 Aggreko plc GBP 85,368 848 0.11 Babcock International Group plc GBP 179,691 1,751 0.25 Berendsen plc GBP 61,901 638 0.09 Cape plc GBP 41,604 94 0.01 Communisis plc GBP 68,675 37 – De La Rue plc GBP 36,399 174 0.02 Energy Assets Group plc GBP 5,270 27 – G4S plc GBP 555,179 1,372 0.18 HomeServe plc GBP 90,455 376 0.05 Lakehouse plc GBP 24,250 23 – Mears Group plc GBP 35,516 141 0.02 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 71 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Commercial Services & Supplies 1.24% (1.21%) (continued) Mitie Group plc GBP 129,586 413 0.06 PayPoint plc GBP 23,553 233 0.03 Regus plc GBP 227,373 720 0.10 Rentokil Initial plc GBP 643,997 933 0.13 RPS Group plc GBP 79,113 192 0.03 Serco Group plc GBP 390,832 397 0.05 Shanks Group plc GBP 144,477 139 0.02 St Ives plc GBP 43,306 83 0.01 9,183 1.24 Construction & Engineering 0.39% (0.31%) Balfour Beatty plc GBP 246,747 638 0.10 Carillion plc GBP 154,024 475 0.06 Costain Group plc GBP 26,361 101 0.01 Galliford Try plc GBP 29,003 450 0.06 Interserve plc GBP 50,854 304 0.04 John Laing Group plc GBP 49,890 95 0.01 Keller Group plc GBP 25,658 233 0.03 Kier Group plc GBP 33,030 460 0.06 Morgan Sindall Group plc GBP 13,439 101 0.01 Severfield plc GBP 97,886 61 0.01 2,918 0.39 Electrical Equipment 0.07% (0.05%) Dialight plc GBP 11,015 74 0.01 HellermannTyton Group plc GBP 75,098 350 0.05 XP Power Ltd. GBP 4,861 72 0.01 496 0.07 Industrial Conglomerates 0.41% (0.37%) Carr’s Group plc GBP 28,870 44 0.01 DCC plc GBP 31,566 1,570 0.21 Smiths Group plc GBP 140,274 1,433 0.19 3,047 0.41 Machinery 0.74% (0.93%) Bodycote plc GBP 68,539 377 0.05 Fenner plc GBP 69,786 116 0.02 Goodwin plc GBP 970 23 – IMI plc GBP 97,851 976 0.12 Melrose Industries plc GBP 354,075 946 0.13 Morgan Advanced Materials plc GBP 101,362 301 0.04 Porvair plc GBP 12,874 37 – Renold plc GBP 72,989 53 0.01 Rotork plc GBP 309,440 561 0.08 Spirax-Sarco Engineering plc GBP 25,943 765 0.10 Trifast plc GBP 40,590 46 0.01 Vesuvius plc GBP 97,578 358 0.05 Weir Group plc (The) GBP 75,567 938 0.13 5,497 0.74 Marine 0.03% (0.01%) Clarkson plc GBP 8,887 197 0.03 197 0.03 Professional Services 1.43% (1.33%) Capita plc GBP 236,834 2,931 0.40 Exova Group plc GBP 39,060 62 0.01 Experian plc GBP 355,088 3,878 0.52 Hays plc GBP 500,977 693 0.09 Hogg Robinson Group plc GBP 105,492 66 0.01 Intertek Group plc GBP 57,515 1,504 0.20 Michael Page International plc GBP 109,468 527 0.07

72 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Professional Services 1.43% (1.33%) (continued) Ricardo plc GBP 17,971 162 0.02 Robert Walters plc GBP 23,625 99 0.01 SThree plc GBP 41,141 145 0.02 Tribal Group plc GBP 32,922 40 0.01 WS Atkins plc GBP 35,983 493 0.07 10,600 1.43 Road & Rail 0.26% (0.28%) Firstgroup plc GBP 435,115 427 0.06 Go-Ahead Group plc GBP 15,172 370 0.05 National Express Group plc GBP 152,354 414 0.06 Northgate plc GBP 46,858 194 0.03 Stagecoach Group plc GBP 151,597 505 0.06 1,910 0.26 Trading Companies & Distributors 1.43% (1.31%) Ashtead Group plc GBP 180,100 1,737 0.23 Brammer plc GBP 46,980 120 0.02 Bunzl plc GBP 118,802 2,175 0.29 Diploma plc GBP 40,047 266 0.04 Grafton Group plc GBP 77,089 531 0.07 HSS Hire Group plc GBP 19,390 12 – Lavendon Group plc GBP 61,309 91 0.01 SIG plc GBP 201,224 352 0.05 Speedy Hire plc GBP 180,938 72 0.01 Travis Perkins plc GBP 88,331 1,702 0.23 Vp plc GBP 7,109 52 0.01 Wolseley plc GBP 93,139 3,452 0.47 10,562 1.43 Transportation Infrastructure 0.07% (0.08%) BBA Aviation plc GBP 169,139 327 0.04 BBA Aviation plc Rights 26/10/2015 GBP 202,966 122 0.02 Braemar Shipping Services plc GBP 10,005 44 0.01 493 0.07 Industrials total 66,182 8.94 Information Technology 2.39% (1.92%) Communications Equipment 0.09% (0.07%) Pace plc GBP 113,772 420 0.06 Sepura plc GBP 48,702 83 0.01 Spirent Communications plc GBP 220,535 170 0.02 673 0.09 Electronic Equipment, Instruments & Components 0.45% (0.45%) Acal plc GBP 22,570 60 0.01 e2v technologies plc GBP 78,841 187 0.03 Electrocomponents plc GBP 157,291 334 0.05 Halma plc GBP 133,928 980 0.12 Laird plc GBP 94,827 333 0.04 Oxford Instruments plc GBP 19,318 132 0.02 Premier Farnell plc GBP 133,768 150 0.02 Renishaw plc GBP 13,232 269 0.04 Servelec Group plc GBP 24,200 78 0.01 Spectris plc GBP 42,168 723 0.10 TT Electronics plc GBP 57,659 77 0.01 3,323 0.45

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PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Internet Software & Services 0.41% (0.15%) Auto Trader Group plc GBP 254,170 907 0.12 Just Eat plc GBP 149,301 623 0.08 Moneysupermarket.com Group plc GBP 157,026 508 0.07 Telecity Group plc GBP 72,150 792 0.11 Zoopla Property Group plc GBP 83,810 186 0.03 3,016 0.41 IT Services 0.12% (0.10%) Computacenter plc GBP 24,860 187 0.03 FDM Group Holdings plc GBP 30,800 158 0.02 Innovation Group plc GBP 428,190 169 0.02 Kainos Group plc GBP 19,400 48 0.01 NCC Group plc GBP 77,866 208 0.02 Xchanging plc GBP 84,142 140 0.02 910 0.12 Semiconductors & Semiconductor Equipment 0.70% (0.68%) ARM Holdings plc GBP 505,048 4,947 0.66 Imagination Technologies Group plc GBP 87,422 195 0.03 Nanoco Group plc GBP 78,700 50 0.01 5,192 0.70 Software 0.60% (0.46%) AVEVA Group plc GBP 22,989 474 0.06 Fidessa Group plc GBP 13,765 255 0.03 Micro Focus International plc GBP 58,988 718 0.10 Playtech plc GBP 75,030 608 0.09 RM plc GBP 28,540 46 0.01 Sage Group plc (The) GBP 385,372 2,031 0.28 SDL plc GBP 27,870 109 0.01 Sophos Group plc GBP 62,900 144 0.02 4,385 0.60 Technology Hardware, Storage & Peripherals 0.02% (0.01%) Xaar plc GBP 26,975 135 0.02 135 0.02 Information Technology total 17,634 2.39 Materials 6.56% (8.83%) Chemicals 0.76% (0.69%) Alent plc GBP 75,100 376 0.05 Carclo plc GBP 20,634 26 – Croda International plc GBP 48,232 1,339 0.18 Elementis plc GBP 163,060 387 0.05 Essentra plc GBP 92,673 789 0.11 Johnson Matthey plc GBP 73,325 1,830 0.25 Synthomer plc GBP 97,222 311 0.04 Victrex plc GBP 28,825 515 0.07 Zotefoams plc GBP 13,800 48 0.01 5,621 0.76 Construction Materials 0.73% (0.52%) CRH plc GBP 291,555 5,125 0.69 Low & Bonar plc GBP 115,870 77 0.01 Marshalls plc GBP 71,601 249 0.03 5,451 0.73

74 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Containers & Packaging 0.43% (0.33%) British Polythene Industries plc GBP 8,173 59 0.01 DS Smith plc GBP 336,096 1,250 0.17 Rexam plc GBP 250,558 1,338 0.17 RPC Group plc GBP 89,719 565 0.08 3,212 0.43 Metals & Mining 4.38% (7.11%) Acacia Mining plc GBP 55,159 123 0.02 Anglo American plc GBP 467,552 3,164 0.43 Antofagasta plc GBP 126,183 740 0.10 Aquarius Platinum Ltd. GBP 493,980 57 0.01 BHP Billiton plc GBP 755,732 8,653 1.16 Centamin plc GBP 394,666 270 0.04 Evraz plc GBP 171,393 161 0.02 Ferrexpo plc GBP 60,206 24 – Fresnillo plc GBP 60,218 458 0.06 Gem Diamonds Ltd. GBP 39,383 43 0.01 Glencore plc GBP 4,168,298 4,909 0.66 Hill & Smith Holdings plc GBP 28,208 190 0.03 Hochschild Mining plc GBP 59,610 52 0.01 KAZ Minerals plc GBP 94,660 128 0.02 Kenmare Resources plc GBP 1,003,739 19 – Lonmin plc GBP 197,404 72 0.01 Petra Diamonds Ltd. GBP 172,614 163 0.02 Petropavlovsk plc GBP 1,045,430 67 0.01 Polymetal International plc GBP 77,312 457 0.06 Randgold Resources Ltd. GBP 33,222 1,493 0.20 Rio Tinto plc GBP 439,819 11,053 1.48 Vedanta Resources plc GBP 36,480 206 0.03 32,502 4.38 Paper & Forest Products 0.26% (0.18%) Mondi plc GBP 131,403 1,907 0.26 1,907 0.26 Materials total 48,693 6.56 Telecommunication Services 4.74% (4.33%) Diversified Telecommunication Services 2.09% (1.81%) BT Group plc GBP 2,994,627 12,773 1.71 Cable & Wireless Communications plc GBP 1,000,278 563 0.08 Inmarsat plc GBP 160,273 1,468 0.20 KCOM Group plc GBP 179,519 161 0.02 TalkTalk Telecom Group plc GBP 188,025 578 0.08 15,543 2.09 Wireless Telecommunication Services 2.65% (2.52%) Vodafone Group plc GBP 9,505,841 19,687 2.65 19,687 2.65 Telecommunication Services total 35,230 4.74 Utilities 3.85% (3.99%) Electric Utilities 0.74% (0.74%) SSE plc GBP 353,309 5,487 0.74 5,487 0.74 Independent Power and Renewable Electricity Producers 0.09% (0.15%) Drax Group plc GBP 143,971 410 0.05 Infinis Energy plc GBP 33,600 43 0.01 Renewables Infrastructure Group Ltd. (The) GBP 206,852 207 0.03 660 0.09

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 75 Aviva Investors UK Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Multi-Utilities 2.28% (2.45%) Centrica plc GBP 1,778,429 4,227 0.57 National Grid plc GBP 1,349,684 12,420 1.68 Telecom Plus plc GBP 21,749 251 0.03 16,898 2.28 Water Utilities 0.74% (0.65%) Pennon Group plc GBP 147,082 1,200 0.16 Severn Trent plc GBP 85,186 1,900 0.26 United Utilities Group plc GBP 243,955 2,386 0.32 5,486 0.74 Utilities total 28,531 3.85

Equities total 700,889 94.44

Liquidity Stocks 0.07% (0.00%) Aviva Investors Sterling Liquidity Fund◊ GBP 500,000 500 0.07 Liquidity Stocks total 500 0.07

Investment assets 729,235 98.26 Net other assets 12,958 1.74 Net assets 742,193 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. ^ Unlisted, suspended or delisted security. † A related party to the Fund. ◊ Investments managed and advised by a related party of the Fund.

76 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains/(losses) 2 32,192 (38,364)

Revenue 3 27,809 25,511

Expenses 4 (3,264) (3,171)

Finance costs: Interest 6 (16) –

Net revenue before taxation 24,529 22,340

Taxation 5 (189) (115)

Net revenue after taxation 24,340 22,225

Total return before distributions 56,532 (16,139)

Finance costs: Distributions 6 (24,343) (22,228)

Change in net assets attributable to shareholders from investment activities 32,189 (38,367)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 705,518 681,081

Amount transferred from Aviva Investors Blue Chip Tracking Fund – 50,628

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 35,427 27,100

Amounts payable on cancellation of shares (52,353) (34,585)

(16,926) (7,485)

Stamp duty reserve tax – (71)

Change in net assets attributable to shareholders from investment activities (see above) 32,189 (38,367)

Retained distribution on accumulation shares 21,411 19,730

Unclaimed distribution monies 1 2

Closing net assets attributable to shareholders 742,193 705,518

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 77 Aviva Investors UK Index Tracking Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 729,235 690,513

Debtors 7 1,292 1,416

Cash and bank balances 8 14,094 15,760

Total other assets 15,386 17,176

Total assets 744,621 707,689

LIABILITIES

Creditors 9 (869) (652)

Distribution payable on income shares (1,559) (1,519)

Total liabilities (2,428) (2,171)

Net assets attributable to shareholders 742,193 705,518

78 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains/(losses)

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains/(losses) on investments during the year comprise:

Currency losses (6) (12)

Derivative contracts gains – 410

Expenses relating to the purchase and sale of investments (13) (13)

Forward currency contracts losses – (4)

Non-derivative securities gains/(losses) 32,211 (38,745)

Net capital gains/(losses) 32,192 (38,364)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest – 17

Overseas dividends 3,616 3,068

Property income distributions 356 247

Stock dividends 154 368

UK dividends 23,682 21,811

Underwriting commission 1 –

Total revenue 27,809 25,511

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 3,056 2,974

3,056 2,974

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 47 47

Safe custody fee 12 12

59 59

Other expenses:

Audit fee* 11 12

FTSE® Index Tracker Fund licence fee 117 106

Printing & postage expenses 9 11

Statement fees 32 26

169 155

Total expenses 3,284 3,188

Less those expenses rebated by the ACD (20) (17)

Net expenses 3,264 3,171

* The audit fee was £8,550 (2014: £8,508) net of VAT.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax written back 189 115 Total current tax for the year (see note 5.b) 189 115 b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 24,529 22,340 Corporation tax at 20% 4,906 4,468 Effects of: Movement in excess expenses 553 556 Overseas dividends not subject to corporation tax (702) (599) Overseas tax suffered 189 115 Revenue taxable in different periods (2) (1) Stock dividends not taxable (31) (73) UK dividends not subject to corporation tax (4,724) (4,351) (4,717) (4,353) Current tax charge (see note 5.a) 189 115 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no material unprovided deferred tax (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £29,124,000 (2014: £26,361,000) creating a potential deferred tax asset of £5,825,000 (2014: £5,272,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

80 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 10,922 9,856 Distributions for the six months ended 15 October 13,313 12,556 24,235 22,412 Add: Revenue deducted on cancellation of shares 395 281 Deduct: Revenue received on issue of shares (287) (465) Finance costs: Distributions 24,343 22,228 Finance costs: Interest on bank overdrafts 16 – Total finance costs 24,359 22,228 Distributions for the year 24,343 22,228 Equalisation on conversions (3) (3) Net revenue after taxation 24,340 22,225 Details of the distributions per share are set out in the distribution tables on page 84.

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 995 900 Amounts receivable on issue of shares 155 314 Overseas tax recoverable 45 96 Sales awaiting settlement 97 106 Total debtors 1,292 1,416

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 14,094 15,760

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 450 454 Amounts payable for cancellation of shares 419 198 Total creditors 869 652

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £380,000 (2014: £390,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £20,371,000 (2014: £18,880,000). The amount outstanding at the year end was £11,150,000 (2014: £10,522,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 13,982,027 (1,458,633) 15,440,660 ACD and related parties (share class 2 Income shares) 822,908 520,620 302,288 ACD and related parties (share class 3 Accumulation shares) 301,445,279 (7,146,971) 308,592,250 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

12 Shareholder funds The Fund currently has four share classes: Classes 1 and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 0.90% Class 2: 0.20% Class 3: 0.20% Class A: 1.50% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 61. The distributions per share class are given in the distribution tables on page 84. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.02% (2014: 0.02%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 1.96% (2014: 2.23%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate.

82 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 40,349 88,770 Taxes 4 – Other costs 177 187 Total purchase costs 181 187 Gross purchases total 40,530 88,957 Analysis of total sale costs Gross sales before transaction costs 34,443 27,736 Commissions (6) (1) Other costs (1) – Total sale costs (7) (1) Total sales net of transaction costs 34,436 27,735

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

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DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 1.0596 – 1.0596 0.9972 Group 2 0.4727 0.5869 1.0596 0.9972 Share Class 2 Group 1 2.1491 – 2.1491 2.0473 Group 2 0.8434 1.3057 2.1491 2.0473 Share Class 3 (Acc) Group 1 3.6439 – 3.6439 3.3579 Group 2 1.5413 2.1026 3.6439 3.3579 Share Class A (Acc) Group 1 1.0567 – 1.0567 0.9580 Group 2 0.4206 0.6361 1.0567 0.9580

Final distribution Group 1 shares are those shares purchased at or before 5:00pm on 15 April 2015. Group 2 shares are those shares purchased after 5:00pm on 15 April 2015.

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.8453 – 0.8453 0.7514 Group 2 0.5295 0.3158 0.8453 0.7514 Share Class 2 Group 1 1.7938 – 1.7938 1.6376 Group 2 0.7882 1.0056 1.7938 1.6376 Share Class 3 (Acc) Group 1 2.9990 – 2.9990 2.6469 Group 2 1.7835 1.2155 2.9990 2.6469 Share Class A (Acc) Group 1 0.7879 – 0.7879 0.6607 Group 2 0.4857 0.3022 0.7879 0.6607

Interim distribution Group 1 shares are those shares purchased at or before 5:00pm on 15 October 2014. Group 2 shares are those shares purchased after 5:00pm on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

84 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Smaller Companies Fund

AVIVA INVESTORS UK SMALLER COMPANIES FUND

Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income INVESTMENT OBJECTIVE reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Long term capital appreciation. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. INVESTMENT POLICY “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, Investment principally in smaller capitalisation UK equities judged endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its Issue, operation and trading. All copyright in the index values and to offer prospects of above average earnings growth. constituent list vests in FTSE. The Fund may invest in any of the following financial instruments in order to achieve its investment objective: transferable securities, money market instruments, units in collective Material Portfolio Changes investment schemes, deposits and derivatives and forward Purchases Sales transactions. BCA Marketplace plc Kier Group plc

People's Operator Holdings Ltd.(The) Optos plc FUND MANAGER’S REPORT Oxford Pharmascience Group plc Greene King plc Over the 12 months ended 15 October 2015, the Aviva Investors Acal plc KCOM Group plc UK Smaller Companies Fund delivered a total return of 18.91 per Lavendon Group plc Restaurant Group plc (The) cent (share class 1), net of fees, compared with an average return of 19.52 per cent for its peer group the Investment Association Sanne Group plc IDOX plc UK Smaller Companies sector. The FTSE® Small Cap ex IT Index, Ricardo plc Mears Group plc the Fund’s benchmark, returned 20.59 per cent. Next Fifteen Communications Group plc Moneysupermarket.com Group plc The Fund’s holding in vehicle breakdown service AA, a strong contributor since its introduction to the portfolio in June Volex plc AA plc 2014, was detrimental. The company flagged that it would Torotrak plc Oxford Instruments plc need to invest more in its business this year than anticipated, and the shares were subject to profit taking. The Fund’s stake in Flowgroup, the manufacturer of low carbon, high-value electricity boilers, was impacted by an unfavourable ruling from Synthetic Risk and Reward Indicator the European Court of Justice that the current 5 per cent VAT on Lower risk Higher risk energy-saving products in the UK is in breach of European Union laws. We remain supportive of the business’ potential given its technological edge. Typically lower rewards Typically higher rewards On a positive note, the Fund’s holdings in Fevertree Drinks and 1 2 3 4 5 6 7 BCA Marketplace, Europe’s largest second-hand car auctioneer, The Fund has been allocated a risk number based on the historic volatility of helped performance. Fevertree has performed well since the its share price. Where insufficient share price information is available, the risk company’s floatation last year, helped by strong earnings growth number has been based on the historic volatility of the asset classes appropriate and optimism over a series of management initiatives. Shares in to the Fund. BCA were buoyed by a positive trading update and encouraging – This indicator is based on historical data, calculated using European Union comments from the new management team on the company’s rules, and may not be a reliable indication of the future risk profile of the long-term growth prospects. Fund. – The risk and reward category shown is not guaranteed to remain unchanged New positions included access equipment rental company and may change over time. The lowest category does not mean ‘risk free’. Lavendon. Growth in the Middle East, where margins are better, – Full information on the risks applicable to the Fund is detailed in the is outweighing the poor performance of its Belgian business. We Prospectus. also added to the holding in promotional products firm 4Imprint, after the shares had been hit by profit taking. We sold a stake in technology firm Cap-XX after a sharp rise in the share price. Although there are concerns about the outlook for China and emerging markets, prospects for UK equities remain moderately favourable. The likelihood of UK interest rates rising in the near term looks to have diminished and the health of household finances is improving. The Fund continues to be skewed towards smaller companies which should benefit from robust consumer spending. November 2015

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INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 3 15.10.13 64,220 14,366,172 447.02 Class 3 2010 297.56 227.45

15.10.14 36,512 8,336,020 438.00 2011 322.99 268.17

15.10.15 31,729 6,116,663 518.73 2012 355.42 279.39

* Valued at bid market prices. 2013 492.91 359.71

2014 515.30 431.80 Net Asset Value – Accumulation Shares 2015** 543.22 479.10 Net asset value* Shares Pence per * Valued at mid market prices. Share class As at £000 in issue share ** Up to 15 October 2015. Class 1 15.10.13 26,568 10,106,431 262.88

15.10.14 25,280 9,774,723 258.63 Share Price Record – Accumulation Shares 15.10.15 25,746 8,381,205 307.19 Calendar Highest price* Lowest price* Class 2 15.10.13 5,841 1,430,047 408.41 Share class year (p) (p) Class 1 2010 169.03 128.59 15.10.14 9,566 2,368,928 403.83 2011 184.15 152.49 15.10.15 10,673 2,214,079 482.05 2012 206.61 160.64 Class 3 15.10.13 3 650 515.67 2013 289.21 209.09 15.10.14** N/A N/A N/A

* Valued at bid market prices. 2014 301.78 255.00 ** Share class closed on 22 January 2014. 2015** 319.57 282.27

Class 2 2010 260.07 197.58

2011 283.68 235.05

2012 319.74 247.76

2013 449.79 323.58

2014 469.76 398.16

2015** 501.08 441.23

Class 3 2010 321.98 243.67

2011 352.61 292.77

2012 401.96 309.20

2013 568.56 406.81

2014*** 587.80 569.08

* Valued at mid market prices. ** Up to 15 October 2015. *** Up to 22 January 2014 (date share class closed).

Ongoing Charges Figure* Share class 15.10.15 15.10.14 Class 1 1.39% 1.39%

Class 2 0.89% 0.89%

Class 3 0.34% 0.34%

* The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously.

86 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Smaller Companies Fund

INVESTMENT PERFORMANCE (CONTINUED)

Revenue Record – Income Shares Revenue Record – Income Shares The revenue record table below shows the net distribution rates The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment per calendar year on a payment date basis for an investment made on 4 January 2010. made on 4 January 2010.

Calendar Net revenue Per £1,000 Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Share class year per share (p) invested (£) Class 3 2010 5.6036 24.28 Class 1 2010 1.8725 14.47

2011 6.5271 28.28 2011 1.9514 15.08

2012 7.1218 30.86 2012 2.2350 17.27

2013 8.4280 36.52 2013 2.4923 19.26

2014 6.6497 28.81 2014 0.9420 7.28

2015* 6.8924 29.86 2015* 0.9063 7.00

* Up to 15 December 2015 (the final distribution payment date). Class 2 2010 3.3884 17.05

2011 3.6505 18.37

2012 4.2318 21.30

2013 5.6428 28.40

2014 3.6721 18.48

2015* 3.7829 19.04

Class 3 2010 5.9683 24.42

2011 7.0884 29.00

2012 7.9656 32.59

2013 9.5706 39.16

2014** N/A N/A

* Up to 15 December 2015 (the final distribution payment date). ** Up to 22 January 2014 (date share class closed).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 87 Aviva Investors UK Smaller Companies Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Equities 99.97% (101.81%) Consumer Discretionary 22.46% (18.52%) Auto Components 0.82% (0.00%) Torotrak plc GBP 8,928,595 558 0.82 558 0.82 Hotels, Restaurants & Leisure 2.28% (5.44%) Restaurant Group plc (The) GBP 74,135 522 0.77 Sportech plc GBP 1,755,787 1,027 1.51 1,549 2.28 Household Durables 1.14% (1.20%) Vitec Group plc (The) GBP 129,872 774 1.14 774 1.14 Internet & Catalog Retail 0.67% (0.75%) AO World plc GBP 297,799 458 0.67 458 0.67 Media 7.72% (4.91%) 4imprint Group plc GBP 211,893 2,700 3.96 M&C Saatchi plc# GBP 392,406 1,287 1.89 Next Fifteen Communications Group plc# GBP 474,873 954 1.40 Pinewood Group plc# GBP 76,719 322 0.47 5,263 7.72 Specialty Retail 7.72% (4.45%) BCA Marketplace plc GBP 1,124,060 1,967 2.89 Halfords Group plc GBP 186,276 819 1.20 Land of Leather Holdings plc GBP 577,374 – – Topps Tiles plc GBP 1,027,060 1,502 2.20 Vertu Motors plc# GBP 1,439,231 975 1.43 5,263 7.72 Textiles, Apparel & Luxury Goods 2.11% (1.77%) Ted Baker plc GBP 51,608 1,437 2.11 1,437 2.11 Consumer Discretionary total 15,302 22.46 Consumer Staples 3.15% (2.26%) Beverages 2.09% (0.00%) Fevertree Drinks plc# GBP 331,519 1,425 2.09 1,425 2.09 Food & Staples Retailing 1.06% (1.37%) Booker Group plc GBP 407,066 724 1.06 724 1.06 Food Products 0.00% (0.89%) Consumer Staples total 2,149 3.15 Energy 2.60% (5.77%) Energy Equipment & Services 0.36% (1.47%) Pressure Technologies plc# GBP 139,358 244 0.36 244 0.36

88 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Smaller Companies Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Oil, Gas & Consumable Fuels 2.24% (4.30%) Faroe Petroleum plc# GBP 755,305 547 0.80 Ithaca Energy, Inc. GBP 733,486 334 0.49 Ophir Energy plc GBP 397,348 407 0.60 Petroceltic International plc GBP 427,094 237 0.35 1,525 2.24 Energy total 1,769 2.60 Financials 17.14% (16.56%) Banks 1.46% (1.44%) Secure Trust Bank plc# GBP 36,455 994 1.46 994 1.46 Capital Markets 5.11% (3.62%) Brewin Dolphin Holdings plc GBP 454,796 1,170 1.72 River & Mercantile Group plc GBP 459,758 1,094 1.60 Sanne Group plc GBP 435,366 1,219 1.79 3,483 5.11 Diversified Financial Services 0.00% (0.00%) London Scottish Bank plc^ GBP 1,377,986 – – – – Real Estate Investment Trusts (REITs) 1.64% (2.31%) Big Yellow Group plc, REIT GBP 160,099 1,120 1.64 1,120 1.64 Real Estate Management & Development 8.93% (9.19%) Grainger plc GBP 397,216 950 1.39 Helical Bar plc GBP 320,471 1,356 1.99 LSL Property Services plc GBP 169,862 570 0.84 LXB Retail Properties plc# GBP 392,498 353 0.52 Savills plc GBP 76,468 655 0.96 ST Modwen Properties plc GBP 510,246 2,200 3.23 6,084 8.93 Financials total 11,681 17.14 Health Care 18.59% (18.14%) Biotechnology 3.09% (2.54%) Abcam plc# GBP 163,228 938 1.37 Circassia Pharmaceuticals plc GBP 414,040 1,172 1.72 2,110 3.09 Health Care Equipment & Supplies 1.51% (2.96%) Advanced Medical Solutions Group plc# GBP 678,840 1,028 1.51 1,028 1.51 Health Care Providers & Services 5.75% (4.93%) CVS Group plc# GBP 232,711 1,527 2.24 Synergy Health plc GBP 106,564 2,392 3.51 3,919 5.75 Health Care Technology 1.41% (1.23%) EMIS Group plc# GBP 91,689 961 1.41 961 1.41 Life Sciences Tools & Services 0.20% (0.41%) Epistem Holdings plc# GBP 88,993 134 0.20 134 0.20

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PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Pharmaceuticals 6.63% (6.07%) BTG plc GBP 139,474 789 1.16 Dechra Pharmaceuticals plc GBP 128,115 1,200 1.76 Oxford Pharmascience Group plc# GBP 11,810,801 709 1.04 Vectura Group plc GBP 1,101,965 1,820 2.67 4,518 6.63 Health Care total 12,670 18.59 Industrials 8.69% (11.55%) Aerospace & Defense 0.85% (1.34%) Ultra Electronics Holdings plc^ GBP 32,903 581 0.85 581 0.85 Building Products 0.77% (1.21%) Volution Group plc GBP 327,813 525 0.77 525 0.77 Commercial Services & Supplies 2.65% (5.06%) AA plc GBP 660,109 1,809 2.65 1,809 2.65 Construction & Engineering 0.00% (2.38%) Electrical Equipment 1.03% (0.92%) Flowgroup plc# GBP 1,464,316 219 0.32 Volex plc GBP 830,348 484 0.71 703 1.03 Industrial Conglomerates 0.00% (0.00%) Dyson Group GBP 690,837 – – – – Professional Services 2.29% (0.64%) Ricardo plc GBP 121,552 1,090 1.60 Robert Walters plc GBP 111,005 467 0.69 1,557 2.29 Trading Companies & Distributors 1.10% (0.00%) Lavendon Group plc GBP 513,897 746 1.10 746 1.10 Industrials total 5,921 8.69 Information Technology 19.96% (22.56%) Communications Equipment 0.36% (0.51%) Software Radio Technology plc# GBP 1,081,867 243 0.36 243 0.36 Electronic Equipment, Instruments & Components 10.01% (8.47%) Acal plc GBP 899,504 2,314 3.39 Digital Barriers plc# GBP 598,926 282 0.41 e2v technologies plc GBP 870,961 2,056 3.02 Gooch & Housego plc# GBP 128,400 1,067 1.57 Microsaic Systems plc# GBP 979,807 279 0.41 Microsaic Systems plc Warrant 20/10/2015^ GBP 307,149 101 0.15 Servelec Group plc GBP 227,010 726 1.06 6,825 10.01 Internet Software & Services 2.98% (3.72%) blur Group plc# GBP 361,461 108 0.16 Moneysupermarket.com Group plc GBP 214,619 691 1.01 Progressive Digital Media Group plc# GBP 492,204 1,231 1.81 2,030 2.98

90 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Smaller Companies Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets IT Services 5.04% (3.96%) Eagle Eye Solutions Group plc# GBP 260,000 590 0.86 Innovation Group plc GBP 2,592,788 1,024 1.50 NCC Group plc GBP 630,006 1,689 2.48 Ubisense Group plc# GBP 144,231 134 0.20 3,437 5.04 Semiconductors & Semiconductor Equipment 0.00% (0.71%) Software 1.57% (4.46%) AVEVA Group plc GBP 11,536 233 0.34 Fidessa Group plc GBP 40,518 753 1.11 Tungsten Corp. plc# GBP 151,498 81 0.12 1,067 1.57 Technology Hardware, Storage & Peripherals 0.00% (0.73%) Information Technology total 13,602 19.96 Materials 4.41% (3.50%) Chemicals 0.87% (0.96%) Victrex plc GBP 32,906 590 0.87 590 0.87 Containers & Packaging 3.03% (2.10%) RPC Group plc GBP 327,455 2,066 3.03 2,066 3.03 Paper & Forest Products 0.51% (0.44%) Accsys Technologies plc# GBP 520,459 351 0.51 351 0.51 Materials total 3,007 4.41 Telecommunication Services 2.97% (2.95%) Diversified Telecommunication Services 1.23% (2.95%) CityFibre Infrastructure Holdings plc# GBP 1,196,112 837 1.23 837 1.23 Wireless Telecommunication Services 1.74% (0.00%) People’s Operator Holdings Ltd.(The)# GBP 974,505 1,189 1.74 1,189 1.74 Telecommunication Services total 2,026 2.97

Equities total 68,127 99.97

Investment assets 68,127 99.97 Net other assets 21 0.03 Net assets 68,148 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. # Security traded on another regulated market. ^ Unlisted, suspended or delisted security.

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STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains/(losses) 2 12,523 (560)

Revenue 3 1,245 1,570

Expenses 4 (594) (656)

Net revenue before taxation 651 914

Taxation 5 12 –

Net revenue after taxation 663 914

Total return before distributions 13,186 354

Finance costs: Distributions 6 (665) (915)

Change in net assets attributable to shareholders from investment activities 12,521 (561)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 71,358 96,632

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 1,974 7,079

Amounts payable on cancellation of shares (17,956) (32,107)

(15,982) (25,028)

Dilution levy 86 153

Stamp duty reserve tax – (13)

Change in net assets attributable to shareholders from investment activities (see above) 12,521 (561)

Retained distribution on accumulation shares 165 175

Closing net assets attributable to shareholders 68,148 71,358

92 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Smaller Companies Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 68,127 72,653

Debtors 7 507 137

Cash and bank balances 8 108 814

Total other assets 615 951

Total assets 68,742 73,604

LIABILITIES

Creditors 9 (330) (1,916)

Distribution payable on income shares (264) (330)

Total liabilities (594) (2,246)

Net assets attributable to shareholders 68,148 71,358

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NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains/(losses)

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains/(losses) on investments during the year comprise:

Expenses relating to the purchase and sale of investments (4) (6)

Non-derivative securities gains/(losses) 12,527 (554)

Net capital gains/(losses) 12,523 (560)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 1 8

Overseas dividends 6 5

Property income distributions 36 54

UK dividends 1,199 1,500

Underwriting commission 3 3

Total revenue 1,245 1,570

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 533 591

Registration fees 39 38

572 629

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 8 10

Safe custody fee 1 2

9 12

Other expenses:

Audit fee* 10 10

Printing & postage expenses 1 1

Statement fees 2 4

13 15

Total expenses 594 656

* The audit fee was £7,726 (2014: £7,688) net of VAT.

94 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors UK Smaller Companies Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax written back (12) – Total current tax for the year (see note 5.b) (12) – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 651 914 Corporation tax at 20% 130 183 Effects of: Movement in excess expenses 111 118 Overseas dividends not subject to corporation tax (1) (1) Overseas tax written back (12) – UK dividends not subject to corporation tax (240) (300) (142) (183) Current tax charge (see note 5.a) (12) – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £18,058,000 (2014: £17,504,000) creating a potential deferred tax asset of £3,612,000 (2014: £3,501,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 211 337 Distributions for the six months ended 15 October 398 471 609 808 Add: Revenue deducted on cancellation of shares 60 115 Deduct: Revenue received on issue of shares (4) (8) Finance costs: Distributions 665 915 Reconciliation of distributions for the year to net revenue after taxation Distributions for the year 665 915 Equalisation on conversions (2) (1) Net revenue after taxation 663 914 Details of the distributions per share are set out in the distribution tables on page 99.

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 97 135 Amounts receivable on issue of shares 25 2 Sales awaiting settlement 385 – Total debtors 507 137

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 108 814

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 85 90 Amounts payable for cancellation of shares 61 1,636 Purchases awaiting settlement 184 190 Total creditors 330 1,916

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £67,000 (2014: £70,000) and registration fees was £5,000 (2014: £5,000) Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £488,000 (2014: £687,000). The amount outstanding at the year end was £291,000 (2014: £366,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 accumulation shares) 196,740 5,954 190,786 ACD and related parties (share class 2 accumulation shares) 977,096 (438,482) 1,415,578 ACD and related parties (share class 3 income shares) 6,116,663 (2,218,686) 8,335,349 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

12 Shareholder funds The Fund currently has three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.25% Class 2: 0.75% Class 3: 0.30% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 86. The distributions per share class are given in the distribution tables on page 99. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, none (2014: none) of the net assets of the Fund were denominated in currencies other than sterling.

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 0.16% (2014: 1.14%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 13,398 22,956 Commissions 9 19 Taxes 22 52 Total purchase costs 31 71 Gross purchases total 13,429 23,027 Analysis of total sale costs Gross sales before transaction costs 30,534 45,171 Commissions (29) (81) Total sale costs (29) (81) Total sales net of transaction costs 30,505 45,090

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

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DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 3 Group 1 4.3163 – 4.3163 3.9545 Group 2 1.7873 2.5290 4.3163 3.9545

Final distribution Final distribution Net payable paid Accumulation shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.8966 – 0.8966 0.8622 Group 2 0.3964 0.5002 0.8966 0.8622 Share Class 2 Group 1 2.6318 – 2.6318 2.4313 Group 2 1.0401 1.5917 2.6318 2.4313

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 3 Group 1 2.5761 – 2.5761 2.6952 Group 2 0.9869 1.5892 2.5761 2.6952

Interim distribution Interim distribution Net paid paid Accumulation shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.0097 – 0.0097 0.0798 Group 2 0.0061 0.0036 0.0097 0.0798 Share Class 2 Group 1 1.1511 – 1.1511 1.2408 Group 2 0.7695 0.3816 1.1511 1.2408

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 99 Aviva Investors Cash Fund

AVIVA INVESTORS CASH FUND

INVESTMENT OBJECTIVE Material Portfolio Changes To achieve an income combined with a high degree of capital Purchases Sales security. Sumitomo Mitsui Banking Corp. Europe Ltd. 0.54% 12/02/2015 Citibank NA 0.55% 12/11/2014

Sumitomo Mitsui Banking Corp. Europe Ltd. INVESTMENT POLICY Barclays Bank plc 0.83% 25/02/2015 0.54% 12/02/2015 The Fund will invest primarily in short-term cash deposits, near National Bank of Abu Dhabi PJSC 0.55% cash and other money market instruments. In addition, the 20/04/2015 Standard Chartered Bank 0.6% 13/08/2015 Fund may occasionally invest in transferable securities, units Svenska Handelsbanken AB 0.5% in collective investment schemes, and derivatives and forward 22/01/2015 UBS AG 0.58% 21/08/2015 transactions in order to achieve its objective. Abbey National Treasury Services plc 0.56% Nationwide Building Society 0.59% 02/02/2015 06/08/2015

Bank of America NA 0.53% 06/02/2015 Standard Chartered Bank 0.60% 27/04/2015

FUND MANAGER’S REPORT Nationwide Building Society 0.51% Credit Agricole Corporate & Investment Bank Over the 12 months ended 15 October 2015, the Aviva Investors 06/02/2015 SA 0.54% 02/03/2015 Cash Fund (share class 3) delivered a total return of 0.29 per cent, Svenska Handelsbanken AB 0.49% net of fees. The Fund’s peer group, the Investment Association’s UBS AG 0.57% 21/05/2015 22/10/2014 Money Market sector, delivered an average return of 0.18 per Credit Agricole Corporate & Investment Bank cent. SA 0.54% 02/03/2015 ING Bank NV 0.55% 04/11/2014

Sterling money market rates ended the period slightly higher, Abbey National Treasury Services plc 0.58% although they experienced significant volatility in the meantime Natixis 0.57% 07/04/2015 31/10/2014 as demand for ‘safe-haven’ assets increased due to global market turbulence brought on by a prolonged commodity slump, slowing growth in China and an exodus from emerging-market Synthetic Risk and Reward Indicator assets. In the meantime however rates hit all-time depths as inflation fell to new depths, and comments from Bank of England Lower risk Higher risk (BoE) officials led investors to conclude that interest rates will remain on hold for a while longer. Yields plunged after the European Central Bank said it would implement a bond-buying Typically lower rewards Typically higher rewards programme to boost economic growth. A warning in February 1 3 4 5 6 7 2015 by the BoE that interest rates could rise sooner than 2 markets expected gave markets a kick after one policymaker The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk indicated he might soon vote to raise interest rates given the number has been based on the historic volatility of the asset classes appropriate continuing strength of the labour market. However, rates slid to the Fund. lower again towards the end of the period as indications China’s – This indicator is based on historical data, calculated using European Union economy was slowing sharply triggered a plunge in stock prices, rules, and may not be a reliable indication of the future risk profile of the encouraging investors to seek out ‘safe-haven’ assets. The BoE’s Fund. warning that the UK economy was vulnerable to the slowdown – The risk and reward category shown is not guaranteed to remain unchanged in China further boosted money markets. and may change over time. The lowest category does not mean ‘risk free’. – Money market investment values are affected changes in interest rates, and Investors have largely discarded the probability of the Fed hiking the issuer’s creditworthiness. If interest rates go up and or an issuer has their rates in 2015 and according to some sources an initial UK rate credit rating reduced, the value of the Fund’s investments may fall, and vice rise isn’t expected by markets until well into the second half of versa. Whilst capital is relatively safe in a building society account, money market investments may fall in value, and you may get less back than the 2016. We believe this expectation is misplaced given that the UK original amount you invested. continues to post encouraging economic growth, unemployment – Full information on the risks applicable to the Fund is detailed in the is falling and wages are starting to rise. With inflation still near Prospectus. zero, the bank has time to wait, however it could be forced to raise rates ahead of current market expectations if inflation builds in 2016. We believe investors will learn to deal with a slowing Chinese economy. While China is likely to see its slowest rate of growth seen since 1990, this deceleration is an evolutionary process and we don’t believe this is a cause for major concern. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

100 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Cash Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 509 1,036,974 49.10 Class 1 2010 49.15 49.07

15.10.14 236 482,214 49.02 2011 49.21 49.12

15.10.15** N/A N/A N/A 2012 49.21 49.14

Class 2 15.10.15 222 282,212 78.58 2013 49.14 49.09

Class D 15.10.13 10 40,000 24.56 2014 49.08 49.03

15.10.14*** N/A N/A N/A 2015** 49.03 49.03

* Valued at bid market prices. Class 2 2015*** 78.64 78.58 ** Share class closed on 15 January 2015. *** Share class closed on 6 January 2014. Class D 2010 24.57 24.52 2011 24.60 24.55

Net Asset Value – Accumulation Shares 2012 24.61 24.56 2013 24.57 24.56 Net asset value* Shares Pence per Share class As at £000 in issue share 2014† 24.57 24.57

Class 1 15.10.13 5,856 11,249,023 52.06 * Valued at mid market prices. ** Up to 15 January 2015 (date share class closed). 15.10.14 2,994 5,759,834 51.98 *** From 13 January 2015 (date of launch) up to 15 October 2015. 15.10.15** N/A N/A N/A † Up to 6 January 2014 (date share class closed).

Class 2 15.10.13 1,754 2,239,544 78.33 15.10.14 2,247 2,860,839 78.53 Share Price Record – Accumulation Shares 15.10.15 5,780 7,340,046 78.75 Calendar Highest price* Lowest price* Share class year (p) (p) Class 3 15.10.13 67,831 63,552,770 106.73 Class 1 2010 51.86 51.74 15.10.14 65,889 61,570,115 107.02 2011 52.07 51.86 15.10.15 62,808 58,515,492 107.33 2012 52.12 52.06 Class D 15.10.13 11 40,000 26.35 2013 52.11 52.04 15.10.14*** N/A N/A N/A 2014 52.04 51.99 * Valued at bid market prices. ** Share class closed on 15 January 2015. 2015** 51.99 51.99 *** Share class closed on 6 January 2014. Class 2 2010 78.44 77.96

2011 78.97 78.45

2012 79.24 78.11

2013 78.37 78.17

2014 78.57 78.37

2015*** 78.75 78.57

Class 3 2010 105.18 104.50

2011 106.00 105.19

2012 106.49 106.00

2013 106.79 106.49

2014 107.08 106.79

2015*** 107.33 107.08

Class D 2010 26.09 25.98

2011 26.25 26.09

2012 26.32 26.25

2013 26.35 26.32

2014† 26.35 26.35

* Valued at mid market prices. ** Up to 15 January 2015 (date share class closed). *** Up to 15 October 2015. † Up to 6 January 2014 (date share class closed).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 101 Aviva Investors Cash Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 N/A 0.64% per calendar year on a payment date basis for an investment made on 4 January 2010. Class 2 0.19% 0.19% Calendar Net revenue Per £1,000 Class 3 0.17% 0.17% Share class year per share (p) invested (£) * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Class 1 2010 0.0840 1.62 Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 2011 0.1533 2.96 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 2012 0.1134 2.65

2013 0.0000 0.00

Revenue Record – Income Shares 2014 0.0000 0.00 The revenue record table below shows the net distribution rates 2015* 0.0130 0.25 per calendar year on a payment date basis for an investment Class 2 2010 0.3086 3.96 made on 4 January 2010 (13 January 2015 for share class 2). 2011 0.4740 6.08

Calendar Net revenue Per £1,000 2012 0.3956 5.07 Share class year per share (p) invested (£) 2013 0.1657 2.13 Class 1 2010 0.0798 1.62 2014 0.1968 2.52 2011 0.1466 2.98 2015** 0.2443 3.13 2012 0.1028 2.27 Class 3 2010 0.6418 6.14 2013 0.0000 0.00 2011 0.7082 6.78 2014 0.0000 0.00 2012 0.6236 5.97 2015* 0.0129 0.26 2013 0.3214 3.08 Class 2 2015** 0.1710 2.19 2014 0.2855 2.73 Class D 2010 0.0878 3.57 2015** 0.3224 3.09 2011 0.1255 5.11 Class D 2010 0.0928 3.57 2012 0.1186 4.83 2011 0.1286 4.95 2013 0.0478 1.95 2012 0.1091 4.20 2014*** N/A N/A 2013 0.0334 1.29 * Up to 15 January 2015 (date share class closed). ** From 13 January 2015 (date of launch) up to 15 October 2015 (the final distribution payment 2014*** N/A N/A date). *** Up to 6 January 2014 (date share class closed). * Up to 15 January 2015 (date share class closed). ** Up to 15 October 2015 (the final distribution payment date). *** Up to 6 January 2014 (date share class closed).

102 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Cash Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Certificates of Deposit 88.66% (91.08%) United Kingdom 88.66% (91.08%) Abbey National Treasury Services plc 0.58% 02/11/2015 GBP 3,000,000 3,000 4.36 Australia & New Zealand Banking Group Ltd. 0.53% 12/01/2016 GBP 3,000,000 3,000 4.36 Bank of America NA 0.58% 06/11/2015 GBP 3,000,000 3,000 4.36 Bank of Tokyo-Mitsubishi UFJ Ltd. 0.57% 13/11/2015 GBP 3,000,000 3,000 4.36 BNP Paribas SA 0.56% 10/12/2015 GBP 2,000,000 2,000 2.91 Citibank NA 0.58% 02/12/2015 GBP 3,000,000 3,000 4.36 Cooperatieve Centrale Raiffeisen-Boerenleenbank Bank B.A. 0.56% 26/10/2015 GBP 3,000,000 3,000 4.36 Credit Agricole Corporate & Investment Bank SA 0.62% 02/11/2015 GBP 3,000,000 3,000 4.36 Credit Suisse AG 0.75% 29/03/2016 GBP 2,000,000 2,000 2.91 ING Bank NV 0.58% 02/11/2015 GBP 3,000,000 3,000 4.36 National Bank of Abu Dhabi PJSC 0.59% 20/10/2015 GBP 3,000,000 3,000 4.36 Nationwide Building Society 0.64% 04/01/2016 GBP 3,000,000 3,000 4.36 Natixis SA 0.65% 09/02/2016 GBP 3,000,000 3,000 4.36 Nordea Bank Finland plc 0.54% 20/11/2015 GBP 3,000,000 3,000 4.36 Qatar National Bank (London Branch) 0.58% 09/11/2015 GBP 1,000,000 1,000 1.45 Standard Chartered Bank 0.63% 07/01/2016 GBP 2,000,000 2,000 2.91 Standard Chartered Bank 0.73% 18/01/2016 GBP 1,000,000 1,000 1.45 Sumitomo Mitsui Banking Corp. Europe Ltd. 0.59% 12/11/2015 GBP 3,000,000 3,000 4.36 Sumitomo Mitsui Banking Corp. Europe Ltd. 0.63% 04/01/2016 GBP 2,000,000 2,000 2.91 Svenska Handelsbanken AB 0.54% 22/10/2015 GBP 3,000,000 3,000 4.36 Toronto-Dominion Bank (The) 0.55% 22/10/2015 GBP 3,000,000 3,000 4.36 UBS AG 0.65% 07/12/2015 GBP 3,000,000 3,000 4.36 United Overseas Banking Ltd. 0.56% 23/11/2015 GBP 3,000,000 3,000 4.36 61,000 88.66 Certificates of Deposit total 61,000 88.66 Commercial Papers 2.90% (0.00%) United Kingdom 2.90% (0.00%) Qatar National Bank (London Branch) 0.57% 11/01/2016 GBP 2,000,000 1,997 2.90 1,997 2.90 Commercial Papers total 1,997 2.90 Liquidity Stocks 7.41% (8.13%) Aviva Investors Sterling Liquidity Fund◊ GBP 5,100,000 5,100 7.41 Liquidity Stocks total 5,100 7.41

Investment assets 68,097 98.97 Net other assets 713 1.03 Net assets 68,810 100.00

The comparative percentage figures in brackets are as at 15 October 2014. ◊ Investments managed and advised by a related party of the Fund.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 103 Aviva Investors Cash Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital losses 2 (2) (1)

Revenue 3 384 365

Expenses 4 (121) (143)

Net revenue before taxation 263 222

Taxation 5 – –

Net revenue after taxation 263 222

Total return before distributions 261 221

Finance costs: Distributions 6 (264) (228)

Change in net assets attributable to shareholders from investment activities (3) (7)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 71,366 75,971

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 9,529 4,427

Amounts payable on cancellation of shares (12,292) (9,207)

(2,763) (4,780)

Change in net assets attributable to shareholders from investment activities (see above) (3) (7)

Retained distribution on accumulation shares 210 182

Closing net assets attributable to shareholders 68,810 71,366

104 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Cash Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 68,097 70,800

Debtors 7 163 51

Cash and bank balances 8 692 728

Total other assets 855 779

Total assets 68,952 71,579

LIABILITIES

Creditors 9 (142) (213)

Total liabilities (142) (213)

Net assets attributable to shareholders 68,810 71,366

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 105 Aviva Investors Cash Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital losses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital losses on investments during the year comprise:

Expenses relating to the purchase and sale of investments (2) (2)

Non-derivative securities gains – 1

Net capital losses (2) (1)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 20 22

Interest on debt securities 364 343

Total revenue 384 365

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 95 112

Registration fees 1 5

96 117

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 8 8

Safe custody fee 2 3

10 11

Other expenses:

Audit fee* 11 12

Printing & postage expenses – 1

Statement fees 4 2

15 15

Total expenses 121 143

* The audit fee was £8,756 (2014: £8,713) net of VAT.

106 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Cash Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 263 222 Corporation tax at 20% 53 44 Effects of: Tax deductible on interest distributions (53) (44) (53) (44) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £6,000 (2014: £6,000) creating a potential deferred tax asset of £1,000 (2014: £1,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distribution for the three months ended 15 January 61 54 Gross interest distribution for the three months ended 15 April 65 55 Gross interest distribution for the three months ended 15 July 68 57 Gross interest distribution for the three months ended 15 October 69 61 263 227 Add: Revenue deducted on cancellation of shares 4 2 Deduct: Revenue received on issue of shares (3) (1) Finance costs: Distributions 264 228 Reconciliation of distributions for the year to net revenue after taxation Distributions for the year 264 228 Equalisation on conversions (1) (6) Net revenue after taxation 263 222 Details of the distributions per share are set out in the distribution tables on pages 111 and 112.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 107 Aviva Investors Cash Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 65 50 Amounts receivable on issue of shares 98 1 Total debtors 163 51

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Total cash and bank balances 692 728

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 27 27 Amounts payable for cancellation of shares 89 173 Income tax payable 26 13 Total creditors 142 213

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £12,000 (2014: £13,000) and registration fees was £nil (2014: £nil). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £196,000 (2014: £177,000). The amount outstanding at the year end was £52,000 (2014: £48,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Accumulation shares) – (6,095) 6,095 ACD and related parties (share class 2 Accumulation shares) 1,153,437 882,479 270,958 ACD and related parties (share class 3 Accumulation shares) 58,515,492 (3,054,623) 61,570,115 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

108 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Cash Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has two share classes: Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 2: 0.15% Class 3: 0.13% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 101. The distributions per share class are given in the distribution tables on pages 111 and 112. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, none (2014: none) of the net assets of the Fund were denominated in currencies other than sterling.

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 5,792 63,160 – 68,952 Financial Liabilities Sterling – – (142) (142) Total 5,792 63,160 (142) 68,810

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 6,528 65,000 51 71,579 Financial Liabilities Sterling – – (213) (213) Total 6,528 65,000 (162) 71,366 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR. The floating rate on Sterling FRNs is linked to LIBOR.

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 0.60 0.54 0.11 0.12

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 109 Aviva Investors Cash Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £229,486,000 (2014: £291,082,000) and the total sales amounted to £231,500,000 (2014: £294,351,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

110 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Cash Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the three months ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 N/A N/A N/A – N/A 0.0000 Group 2 N/A N/A N/A N/A N/A 0.0000 Share Class 2 Group 1 0.0751 0.0150 0.0601 – 0.0601 N/A Group 2 0.0405 0.0081 0.0324 0.0277 0.0601 N/A

Final distribution Final distribution Gross Income Net payable paid Accumulation shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 N/A N/A N/A – N/A 0.0000 Group 2 N/A N/A N/A N/A N/A 0.0000 Share Class 2 Group 1 0.0758 0.0152 0.0606 – 0.0606 0.0536 Group 2 0.0319 0.0064 0.0255 0.0351 0.0606 0.0536 Share Class 3 Group 1 0.1088 0.0218 0.0870 – 0.0870 0.0774 Group 2 0.0464 0.0093 0.0371 0.0499 0.0870 0.0774

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the three months ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 N/A N/A N/A – N/A 0.0000 Group 2 N/A N/A N/A N/A N/A 0.0000 Share Class 2 Group 1 0.0713 0.0143 0.0570 – 0.0570 N/A Group 2 0.0530 0.0106 0.0424 0.0146 0.0570 N/A

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 N/A N/A N/A – N/A 0.0000 Group 2 N/A N/A N/A N/A N/A 0.0000 Share Class 2 Group 1 0.0713 0.0143 0.0570 – 0.0570 0.0495 Group 2 0.0438 0.0087 0.0350 0.0220 0.0570 0.0495 Share Class 3 Group 1 0.1025 0.0205 0.0820 – 0.0820 0.0720 Group 2 0.0950 0.0190 0.0760 0.0060 0.0820 0.0720

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 111 Aviva Investors Cash Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the three months ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 N/A N/A N/A – N/A 0.0000 Group 2 N/A N/A N/A N/A N/A 0.0000 Share Class 2 Group 1 0.0674 0.0135 0.0539 – 0.0539 N/A Group 2 0.0199 0.0040 0.0159 0.0380 0.0539 N/A

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 N/A N/A N/A – N/A 0.0000 Group 2 N/A N/A N/A N/A N/A 0.0000 Share Class 2 Group 1 0.0924 0.0185 0.0739 – 0.0739 0.0474 Group 2 0.0325 0.0065 0.0260 0.0479 0.0739 0.0474 Share Class 3 Group 1 0.0968 0.0194 0.0774 – 0.0774 0.0689 Group 2 0.0411 0.0082 0.0329 0.0445 0.0774 0.0689

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the three months ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.0161 0.0032 0.0129 – 0.0129 0.0000 Group 2 0.0126 0.0025 0.0101 0.0028 0.0129 0.0000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.0163 0.0033 0.0130 – 0.0130 0.0000 Group 2 0.0158 0.0032 0.0126 0.0004 0.0130 0.0000 Share Class 2 Group 1 0.0660 0.0132 0.0528 – 0.0528 0.0463 Group 2 0.0341 0.0068 0.0273 0.0255 0.0528 0.0463 Share Class 3 Group 1 0.0950 0.0190 0.0760 – 0.0760 0.0672 Group 2 0.0600 0.0120 0.0480 0.0280 0.0760 0.0672

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

112 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

AVIVA INVESTORS CORPORATE BOND FUND

INVESTMENT OBJECTIVE Our outlook for corporate bonds is cautiously optimistic. Valuations appear attractive as credit spreads are at their widest A long term total return above that available on UK Government point in more than two years, which suggests there is some securities. room for them to narrow over the near-term. It is likely that monetary policy will remain supportive in the short to medium- term, and with the Bank of Japan and European Central Bank INVESTMENT POLICY potentially extending current monetary easing, this should alleviate concerns over economic growth, which should further Diversified investment in Sterling denominated debt securities support credit markets. Nevertheless, there are several material issued by governments, supranational institutions and uncertainties clouding markets. Questions about the growth corporates. outlook for emerging markets, and particularly China, following The Fund may invest in any of the following financial instruments recent capital outflows have spooked investors. Furthermore, in order to achieve its investment objective: transferable markets are treading in uncharted waters following years of securities, money market instruments, units in collective unprecedented monetary stimulus. As such our focus remains on investment schemes, deposits and derivatives and forward managing company-specific risks, particularly among issuers with transactions. exposure to emerging markets or commodities, and to those that are candidates for taking more debt onto their balance sheets. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income FUND MANAGER’S REPORT reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Over the 12 months ended 15 October 2015, the Aviva Investors Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should Corporate Bond Fund (share class A) delivered a total return of not be viewed as a recommendation to invest nor buy or sell any securities. Past performance 1.83 per cent, net of fees. The Fund’s peer group, the Investment is not a guide to the future. The value of an investment and any income from it can go down as Association’s Sterling Corporate Bond sector, delivered an well as up. Investors may not get back the original amount invested. average return of 1.58 per cent.

Sterling corporate bonds posted positive returns, underpinned Material Portfolio Changes by a sharp rise in underlying UK government debt as plummeting oil prices helped push UK inflation to its lowest on record, and Purchases Sales as the the European Central Bank began ‘quantitative easing’. UK Treasury 4.50% 07/12/2042 UK Treasury 4.50% 07/12/2042 Demand for gilts also increased due to global market turbulence brought on by a prolonged commodity slump, slowing growth UK Treasury, Reg. S 5.00% 07/03/2025 UK Treasury 4.75% 07/12/2038 in China and an exodus from emerging-market assets which UK Treasury 4.75% 07/12/2038 UK Treasury, Reg. S 5.00% 07/03/2025 parked a flight to ‘safe-haven’ assets. However, credit spreads – UK Treasury 5.00% 07/03/2018 UK Treasury 5.00% 07/03/2018 the difference between government and corporate bond yields – widened as investors grew more concerned about companies’ Veolia Environnement SA 6.13% 29/10/2037 UK Treasury 1.75% 22/01/2017 ability to repay debt amid a surge in global bond issuance. The UK Treasury 4.25% 07/06/2032 UK Treasury 4.25% 07/03/2036 uncertainty generated by the prolonged negotiations between Greece and its creditors also weighed on credit markets. A Telefonica Emisiones SAU 5.45% 08/10/2029 European Investment Bank 5.38% 07/06/2021 scandal over German automaker Volkswagen cheating pollution Sky plc 4.00% 26/11/2029 UK Treasury 4.25% 07/12/2055 emissions tests brought down the automobile sector, while UK mining giant Glencore saw its share price plunge to record lows BMW US Capital LLC 2% 20/11/2019 UK Treasury 4.25% 07/06/2032 as commodity prices plunged. Southern Gas Networks plc 2.50% 03/02/2025 Broadgate Financing plc 4.82% 05/07/2033 Fund outperformance versus its peer group was partially due to holdings of asset-backed securities, which added to portfolio gains throughout the period. A long-standing preference for pub and bar operators such as Mitchells & Butlers further enhanced Synthetic Risk and Reward Indicator performance. Debt backed by revenues from several real estate ventures contributed further to returns, particularly our Lower risk Higher risk stake in the British Land Company, one of the largest property development companies in the UK. Positions in consumer goods Typically lower rewards Typically higher rewards companies also performed well. A stake in Imperial Tobacco was especially beneficial following speculation that Japan Tobacco 1 2 3 4 5 6 7 was considering a bid for the British cigarette maker. Holdings The Fund has been allocated a risk number based on the historic volatility of of debt issued by FirstGroup, the train and bus operator, added its share price. Where insufficient share price information is available, the risk to returns as commercial bus passenger volumes increased number has been based on the historic volatility of the asset classes appropriate and as the company confirmed it would not be reducing fares to the Fund. in light of drastically falling oil prices. Selective positions in – This indicator is based on historical data, calculated using European Union British Sky Broadcasting also added to gains while a stake in rules, and may not be a reliable indication of the future risk profile of the Fund. DirecTV performed well after the acquisition by US broadcasting – The risk and reward category shown is not guaranteed to remain unchanged giant AT&T was completed. Bonds issued by Veolia – a French and may change over time. The lowest category does not mean ‘risk free’. electricity provider – benefitted from the sharp rally in euro – Bond values are affected by changes in interest rates, and the bond issuer’s zone government bonds and further contributed to portfolio creditworthiness. Bonds that produce a higher level of income usually have a gains. Fund performance was undermined by holdings in Tesco greater risk of default. as an accounting scandal and an intense price war between – Full information on the risks applicable to the Fund is detailed in the supermarkets caused the company’s debt to sell off, although Prospectus. bonds recovered from initial losses.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 113 Aviva Investors Corporate Bond Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 66,179 119,324,361 55.46 Class 1 2010 53.69 49.27

15.10.14 62,920 108,084,710 58.21 2011 52.42 50.14

15.10.15 56,864 98,281,995 57.86 2012 56.92 51.32

Class 2 15.10.13 37,746 45,185,388 83.54 2013 58.78 54.84

15.10.14 47,674 54,370,371 87.68 2014 59.84 55.53

15.10.15 58,178 66,758,541 87.15 2015** 61.83 57.60

Class 3 15.10.13 2,197,692 1,996,526,585 110.08 Class 2 2010 80.90 74.26

15.10.14 2,422,872 2,096,953,136 115.54 2011 78.96 75.53

15.10.15 2,061,567 1,795,200,291 114.84 2012 85.78 77.29

Class A 15.10.13 83,737 161,227,492 51.94 2013 88.55 82.62

15.10.14 77,788 142,692,580 54.51 2014 90.15 83.67

15.10.15 67,636 124,836,012 54.18 2015** 93.14 86.75

* Valued at bid market prices. Class 3 2010 106.66 97.90

2011 104.07 99.57 Net Asset Value – Accumulation Shares 2012 113.06 101.86 Net asset value* Shares Pence per 2013 116.69 108.91 Share class As at £000 in issue share 2014 118.85 110.31 Class 3 15.10.13 7,925 5,568,719 142.31 2015** 122.75 114.32 15.10.14 5,202 3,373,862 154.19 Class A 2010 50.26 46.14 15.10.15 4,760 3,014,115 157.93 2011 49.08 46.94 * Valued at bid market prices. 2012 53.29 48.05

2013 55.04 51.33

2014 56.01 51.97

2015** 57.89 53.93

* Valued at mid market prices. ** Up to 15 October 2015.

Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Share class year (p) (p) Class 3 2010 121.89 108.18

2011 123.83 116.04

2012 141.41 122.99

2013 148.43 139.15

2014 158.59 142.61

2015** 165.00 155.53

* Valued at mid market prices. ** Up to 15 October 2015.

114 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 0.80% 0.80% per calendar year on a payment date basis for an investment made on 4 January 2010. Class 2 0.62% 0.62% Calendar Net revenue Per £1,000 Class 3 0.32% 0.32% Share class year per share (p) invested (£) Class A 1.12% 1.12% Class 3 2010 4.9952 46.17 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual 2011 4.8715 45.03 Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 2012 5.0817 46.97 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 2013 4.7147 43.58

2014 4.6977 43.42

Revenue Record – Income Shares 2015* 4.7958 44.33 * Up to 15 December 2015 (the final distribution payment date). The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January 2010.

Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Class 1 2010 2.0245 41.09

2011 1.8861 38.28

2012 1.8856 38.27

2013 1.6480 33.45

2014 1.5811 32.09

2015* 1.5614 31.69

Class 2 2010 3.1873 42.92

2011 2.9023 39.08

2012 2.8898 38.91

2013 2.6354 35.49

2014 2.5192 33.92

2015* 2.4828 33.43

Class 3 2010 4.4461 45.41

2011 4.1510 42.40

2012 4.1652 42.55

2013 3.7214 38.01

2014 3.5904 36.67

2015* 3.5545 36.30

Class A 2010 1.8301 39.66

2011 1.3073 28.33

2012 1.6360 35.46

2013 1.4264 30.91

2014 1.3527 29.32

2015* 1.3203 28.62

* Up to 15 December 2015 (the final distribution payment date).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 115 Aviva Investors Corporate Bond Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Government Bonds 5.38% (11.24%) Germany 1.91% (1.61%) KFW 6.00% 07/12/2028 GBP 30,000,000 42,986 1.91 42,986 1.91 Netherlands 1.95% (0.80%) Bank Nederlandse Gemeenten NV 1.88% 07/12/2018 GBP 20,575,000 20,959 0.93 Deutsche Bahn Finance BV 3.13% 24/07/2026 GBP 21,813,000 22,960 1.02 43,919 1.95 United Kingdom 1.52% (8.83%) UK Treasury 4.00% 07/03/2022 GBP 5,350,000 6,237 0.28 UK Treasury 4.50% 07/12/2042 GBP 20,000,000 27,790 1.24 34,027 1.52 Government Bonds total 120,932 5.38 Corporate Bonds 91.25% (80.15%) Australia 1.60% (0.86%) BHP Billiton Finance Ltd., FRN 0.00% 22/10/2077 GBP 12,000,000 12,228 0.54 Goodman Australia Finance Pty. Ltd., REIT 9.75% 16/07/2018 GBP 20,000,000 23,812 1.06 36,040 1.60 Cayman Islands 3.11% (2.89%) Affinity Water Programme Finance Ltd. 4.50% 31/03/2036 GBP 11,237,000 12,416 0.55 Southern Water Services Finance Ltd. 6.64% 31/03/2026 GBP 7,000,000 9,110 0.41 Thames Water Utilities Cayman Finance Ltd., FRN 5.38% 21/07/2025 GBP 13,410,000 14,048 0.62 Trafford Centre Finance Ltd. (The), Series D2 8.28% 28/10/2022 GBP 8,290,000 10,187 0.45 Yorkshire Water Services Odsal Finance Ltd. 6.45% 28/05/2027 GBP 18,734,000 24,264 1.08 70,025 3.11 France 8.69% (6.56%) AXA SA, FRN 5.45% Perpetual GBP 12,000,000 12,030 0.53 AXA SA, FRN 5.63% 16/01/2054 GBP 24,000,000 24,064 1.07 Electricite de France SA 6.13% 02/06/2034 GBP 30,000,000 36,461 1.62 Electricite de France SA, FRN 6.00% Perpetual GBP 18,000,000 17,940 0.80 Orange SA, FRN 5.88% Perpetual GBP 25,000,000 25,344 1.13 RCI Banque SA 3.25% 25/04/2018 GBP 21,000,000 21,453 0.95 SNCF Reseau 5.50% 01/12/2021 GBP 25,325,000 30,496 1.36 Veolia Environnement SA 6.13% 29/10/2037 GBP 21,800,000 27,711 1.23 195,499 8.69 Germany 0.80% (1.07%) Daimler AG 1.75% 08/11/2017 GBP 17,962,000 17,910 0.80 17,910 0.80 Ireland 0.73% (0.74%) GE Capital UK Funding 4.13% 13/09/2023 GBP 15,000,000 16,394 0.73 Lambay Capital Securities plc 6.25% Perpetual§ GBP 10,000,000 1 – 16,395 0.73 Italy 0.54% (0.48%) Telecom Italia SpA 7.38% 15/12/2017 GBP 11,200,000 12,226 0.54 12,226 0.54 Jersey 5.18% (3.76%) AA Bond Co. Ltd. 6.27% 02/07/2043 GBP 32,239,000 38,593 1.72 CPUK Finance Ltd. 7.24% 28/02/2042 GBP 7,000,000 8,830 0.39 Gatwick Funding Ltd. 4.63% 27/03/2023 GBP 9,600,000 10,227 0.46 Gatwick Funding Ltd. 5.25% 23/01/2026 GBP 4,900,000 5,607 0.25 Heathrow Funding Ltd. 7.13% 14/02/2024 GBP 32,000,000 39,680 1.76 HSBC Bank Capital Funding Sterling 1 LP, FRN 5.84% Perpetual GBP 12,500,000 13,501 0.60 116,438 5.18

116 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Luxembourg 0.69% (0.64%) Nestle Finance International Ltd. 2.25% 30/11/2023 GBP 15,459,000 15,549 0.69 15,549 0.69 Mexico 1.49% (1.32%) America Movil SAB de CV 4.38% 07/08/2041 GBP 23,240,000 23,103 1.03 America Movil SAB de CV, FRN 6.37% 06/09/2073 GBP 10,000,000 10,413 0.46 33,516 1.49 Netherlands 7.83% (7.34%) Allianz Finance II BV 4.50% 13/03/2043 GBP 22,000,000 24,219 1.08 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.63% 13/01/2021 GBP 18,000,000 19,931 0.89 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.63% 23/05/2029 GBP 16,925,000 17,185 0.76 Deutsche Telekom International Finance BV 6.50% 08/04/2022 GBP 5,524,000 6,728 0.30 Enel Finance International NV 5.75% 14/09/2040 GBP 21,500,000 25,093 1.11 ING Bank NV, FRN 6.88% 29/05/2023 GBP 18,000,000 19,729 0.88 Petrobras Global Finance BV 5.38% 01/10/2029 GBP 10,000,000 6,444 0.29 Siemens Financieringsmaatschappij NV 3.75% 10/09/2042 GBP 20,000,000 19,881 0.88 Siemens Financieringsmaatschappij NV, FRN 6.12% 14/09/2066 GBP 19,000,000 19,513 0.87 Volkswagen Financial Services NV 2.75% 02/10/2020 GBP 18,000,000 17,287 0.77 176,010 7.83 Spain 1.13% (0.00%) Telefonica Emisiones SAU 5.45% 08/10/2029 GBP 22,300,000 25,335 1.13 25,335 1.13 Sweden 0.38% (0.50%) Svenska Handelsbanken AB 3.00% 20/11/2020 GBP 8,323,000 8,643 0.38 8,643 0.38 United Kingdom 47.62% (44.57%) Abbey National Treasury Services plc 5.13% 14/04/2021 GBP 23,880,000 27,606 1.23 Aspire Defence Finance plc 4.67% 31/03/2040 GBP 7,182,578 8,146 0.36 Aviva plc, FRN 5.13% 04/06/2050† GBP 20,000,000 18,703 0.83 Aviva plc, FRN 6.88% 20/05/2058† GBP 11,000,000 12,117 0.54 Aviva plc, FRN 5.90% Perpetual† GBP 10,200,000 10,473 0.47 Barclays Bank plc 10.00% 21/05/2021 GBP 25,800,000 33,309 1.48 BL Superstores Finance plc, Series A2 4.48% 04/10/2030 GBP 7,494,457 8,314 0.37 BL Superstores Finance plc, Series B2 5.27% 04/10/2030 GBP 11,801,840 13,018 0.58 British Land Co. plc (The), REIT 5.36% 31/03/2028 GBP 5,300,000 6,079 0.27 British Telecommunications plc 8.50% 07/12/2016 GBP 25,538,000 27,465 1.22 Broadgate Financing plc 5.00% 05/10/2033 GBP 15,750,000 18,546 0.82 Canary Wharf Finance II plc, Series A1 6.46% 22/10/2033 GBP 9,210,438 12,204 0.54 Centrica plc 4.25% 12/09/2044 GBP 15,300,000 14,769 0.66 Daily Mail & General Trust plc 5.75% 07/12/2018 GBP 5,078,000 5,585 0.25 Eastern Power Networks plc 4.75% 30/09/2021 GBP 15,000,000 16,808 0.75 Eversholt Funding plc 6.70% 22/02/2035 GBP 5,585,000 7,260 0.32 Experian Finance plc 4.75% 23/11/2018 GBP 19,150,000 20,756 0.92 F&C Finance plc 9.00% 20/12/2016 GBP 3,906,000 4,184 0.19 Firstgroup plc 8.75% 08/04/2021 GBP 21,000,000 26,223 1.17 GlaxoSmithKline Capital plc 4.25% 18/12/2045 GBP 18,605,000 19,858 0.88 Great Rolling Stock Co. Ltd. (The) 6.50% 05/04/2031 GBP 21,120,000 26,847 1.19 Greene King Finance plc, Series B1 5.70% 15/12/2034 GBP 8,000,000 7,470 0.33 HSBC Holdings plc 6.75% 11/09/2028 GBP 33,000,000 39,655 1.76 Imperial Tobacco Finance plc 9.00% 17/02/2022 GBP 14,000,000 18,630 0.83 Imperial Tobacco Finance plc 8.13% 15/03/2024 GBP 25,000,000 33,109 1.47 Intu Metrocentre Finance plc, REIT 4.13% 06/12/2023 GBP 17,000,000 17,801 0.79 Investec Bank plc 9.63% 17/02/2022 GBP 8,200,000 9,798 0.44 Juturna European Loan Conduit No .16 plc 5.06% 10/08/2033 GBP 25,432,613 29,470 1.31

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 117 Aviva Investors Corporate Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 47.62% (44.57%) (continued) Land Securities Capital Markets plc, FRN 4.87% 07/11/2019 GBP 30,000,000 31,916 1.42 Lloyds Bank plc, FRN 10.75% 16/12/2021 GBP 11,158,000 12,213 0.54 Lloyds Bank plc 7.63% 22/04/2025 GBP 20,700,000 26,221 1.17 Meadowhall Finance plc, Series B 4.99% 12/07/2037 GBP 9,711,146 11,377 0.51 Mitchells & Butlers Finance plc, Series A2 5.57% 15/12/2030 GBP 8,371,747 9,595 0.43 Mitchells & Butlers Finance plc, Series B1 5.97% 15/12/2025 GBP 6,457,050 7,297 0.32 Mitchells & Butlers Finance plc, Series C1 6.47% 15/09/2032 GBP 18,000,000 22,170 0.99 NGG Finance plc, FRN 5.63% 18/06/2073 GBP 11,000,000 11,647 0.52 Notting Hill Housing Trust 3.75% 20/12/2032 GBP 26,000,000 25,956 1.15 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 6,697,000 6,631 0.29 Principality Building Society, FRN 1.59% 08/07/2016 GBP 2,825,000 2,740 0.12 Prudential plc, FRN 11.37% 29/05/2039 GBP 23,450,000 29,575 1.31 Reed Elsevier Investments plc 2.75% 01/08/2019 GBP 20,700,000 21,170 0.94 Royal Bank of Scotland plc (The) 6.88% 17/05/2025 GBP 19,000,000 24,299 1.08 RSA Insurance Group plc, FRN 9.37% 20/05/2039 GBP 29,000,000 33,958 1.51 Segro plc, REIT 6.75% 23/11/2021 GBP 16,575,000 20,253 0.90 Silverstone Master Issuer plc, FRN 5.06% 21/01/2055 GBP 17,000,000 17,607 0.78 Sky Group Finance plc 5.75% 20/10/2017 GBP 7,080,000 7,606 0.34 Sky plc 4.00% 26/11/2029 GBP 18,000,000 18,193 0.81 Southern Gas Networks plc 2.50% 03/02/2025 GBP 22,000,000 21,019 0.93 SSE plc 6.25% 27/08/2038 GBP 5,154,000 6,679 0.30 Stagecoach Group plc 5.75% 16/12/2016 GBP 28,755,000 29,994 1.33 Standard Chartered plc 5.13% 06/06/2034 GBP 18,875,000 16,988 0.76 Standard Chartered plc 4.38% 18/01/2038 GBP 22,000,000 21,087 0.94 Tesco plc 4.88% 24/03/2042 GBP 13,000,000 10,229 0.45 Tesco Property Finance 6 plc 5.41% 13/07/2044 GBP 23,862,938 21,055 0.94 Unilever plc 4.75% 16/06/2017 GBP 22,000,000 23,292 1.04 UNITE USAF II plc 3.92% 30/06/2030 GBP 20,354,000 21,595 0.96 Wellcome Trust Ltd. (The) 4.00% 09/05/2059 GBP 9,168,000 11,148 0.50 Western Power Distribution West Midlands plc 5.75% 16/04/2032 GBP 33,000,000 40,914 1.82 White City Property Finance plc 5.12% 17/04/2035 GBP 10,566,203 12,355 0.55 1,070,982 47.62 United States of America 11.46% (9.42%) Ahold Finance USA LLC 6.50% 14/03/2017 GBP 26,000,000 27,643 1.23 American International Group, Inc. 6.77% 15/11/2017 GBP 31,610,000 34,864 1.55 AT&T, Inc. 4.25% 01/06/2043 GBP 30,000,000 27,643 1.23 Bank of America Corp. 7.75% 30/04/2018 GBP 13,200,000 15,071 0.67 Bank of America Corp. 7.00% 31/07/2028 GBP 8,300,000 11,231 0.50 Citigroup, Inc. 4.50% 03/03/2031 GBP 22,000,000 22,596 1.00 DIRECTV Holdings LLC 4.38% 14/09/2029 GBP 27,000,000 27,557 1.23 Goldman Sachs Group, Inc. (The) 6.13% 14/05/2017 GBP 16,583,000 17,588 0.78 JPMorgan Chase & Co. 1.88% 10/02/2020 GBP 8,879,000 8,712 0.39 JPMorgan Chase & Co. 3.50% 18/12/2026 GBP 17,700,000 18,226 0.81 Metropolitan Life Global Funding I 3.50% 30/09/2026 GBP 8,600,000 9,026 0.40 Verizon Communications, Inc. 4.07% 18/06/2024 GBP 21,000,000 22,326 0.99 Wells Fargo & Co. 3.50% 12/09/2029 GBP 15,000,000 15,244 0.68 257,727 11.46 Corporate Bonds total 2,052,295 91.25 Supranationals 2.45% (3.67%) Supranational 2.45% (3.67%) European Investment Bank 5.00% 15/04/2039 GBP 40,000,000 55,116 2.45 55,116 2.45 Supranationals total 55,116 2.45

118 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Futures (0.03)% ((0.07)%) Long Gilt 29/12/2015 GBP (500) (730) -0.03 Futures total (730) -0.03 Liquidity Stocks 0.00% (3.68%)

Investment assets 2,227,613 99.05 Net other assets 21,392 0.95 Net assets 2,249,005 100.00

All holdings are debt securities denominated in Sterling and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. § Security is currently in default. † A related party to the Fund.

Bond Rating

Market Value £000 % of Net Assets Bonds – Investment grade* 1,977,704 87.93 – Below investment grade 237,928 10.59 – Unrated 12,711 0.56 Debt securities total 2,228,343 99.08

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Counterparty Futures contracts Total 15.10.15 £000 £000

JPMorgan (59,550) (59,550)

Total (59,550) (59,550)

Counterparty Futures contracts Total 15.10.14 £000 £000

JPMorgan 43,962 43,962

Total 43,962 43,962

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 119 Aviva Investors Corporate Bond Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital (losses)/gains 2 (17,062) 123,111

Revenue 3 108,314 108,809

Expenses 4 (9,483) (9,187)

Net revenue before taxation 98,831 99,622

Taxation 5 – –

Net revenue after taxation 98,831 99,622

Total return before distributions 81,769 222,733

Finance costs: Distributions 6 (98,831) (99,622)

Change in net assets attributable to shareholders from investment activities (17,062) 123,111

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 2,616,456 2,393,279

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 136,876 186,731

Amounts payable on cancellation of shares (489,026) (86,930)

(352,150) 99,801

Dilution levy 1,615 –

Change in net assets attributable to shareholders from investment activities (see above) (17,062) 123,111

Retained distribution on accumulation shares 146 261

Unclaimed distribution monies – 4

Closing net assets attributable to shareholders 2,249,005 2,616,456

120 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investments assets 2,228,343 2,583,630

Debtors 7 50,013 55,400

Cash and bank balances 8 14,394 10,213

Total other assets 64,407 65,613

Total assets 2,292,750 2,649,243

LIABILITIES

Investment liabilities (730) (1,886)

Creditors 9 (25,570) (11,012)

Distribution payable on income shares (17,445) (19,889)

Total other liabilities (43,015) (30,901)

Total liabilities (43,745) (32,787)

Net assets attributable to shareholders 2,249,005 2,616,456

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 121 Aviva Investors Corporate Bond Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital (losses)/gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital (losses)/gains on investments during the year comprise:

Currency gains/(losses) 4 (21)

Derivative contracts losses (1,268) (4,551)

Expenses relating to the purchase and sale of investments (4) (5)

Non-derivative securities (losses)/gains (15,794) 127,688

Net capital (losses)/gains (17,062) 123,111

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 139 286

Interest on debt securities 108,632 109,260

Interest on derivatives (457) (737)

Total revenue 108,314 108,809

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 8,885 8,546

Registration fees 130 121

9,015 8,667

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 47 47

Safe custody fee 275 342

322 389

Other expenses:

Audit fee* 11 13

Printing & postage expenses 33 31

Statement fees 113 87

157 131

Total expenses 9,494 9,187

Less those expenses rebated by the ACD (11) –

Net expenses 9,483 9,187

* The audit fee was £8,756 (2014: £8,713) net of VAT.

122 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 98,831 99,622 Corporation tax at 20% 19,766 19,924 Effects of: Tax deductible on interest distributions (19,766) (19,924) (19,766) (19,924) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no material unprovided deferred tax (2014: £nil).

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distribution for the three months ended 15 January 24,789 24,803 Gross interest distribution for the three months ended 15 April 24,734 24,955 Gross interest distribution for the three months ended 15 July 25,130 25,407 Gross interest distribution for the three months ended 15 October 22,363 24,911 97,016 100,076 Add: Revenue deducted on cancellation of shares 2,415 311 Deduct: Revenue received on issue of shares (600) (765) Finance costs: Distributions 98,831 99,622 Reconciliation of distributions for the year to net revenue after taxation Distributions for the year 98,831 99,622 Equalisation on conversions 1 – Undistributed revenue carried forward (1) – Net revenue after taxation 98,831 99,622 Details of the distributions per share are set out in the distribution tables on pages 127 and 128.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 46,210 46,565 Amounts receivable on issue of shares 1,655 767 Sales awaiting settlement 2,148 8,068 Total debtors 50,013 55,400

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 1,885 2,081 Cash and bank balances 12,509 8,132 Total cash and bank balances 14,394 10,213

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 1,235 1,289 Amounts payable for cancellation of shares 466 991 Income tax payable 9,761 5,011 Purchases awaiting settlement 14,108 3,721 Total creditors 25,570 11,012

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £1,076,000 (2014: £1,128,000) and registration fees was £17,000 (2014: £16,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £72,269,000 (2014: £75,637,000). The amount outstanding at the year end was £16,218,000 (2014: £18,817,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 448,734 (64,797) 513,531 ACD and related parties (share class 2 Income shares) 1,610,512 1,286,486 324,026 ACD and related parties (share class 3 Income shares) 1,778,732,353 (318,220,783) 2,096,953,136 ACD and related parties (share class 3 Accumulation shares) 3,014,115 (359,747) 3,373,862 ACD and related parties (share class A Income shares) 31,754,337 (4,065,075) 35,819,412 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

124 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has four share classes: Classes 1 and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 0.80% Class 2: 0.50% Class 3: 0.30% Class A: 1.00% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 114. The distributions per share class are given in the distribution tables on pages 126 and 127. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, none (2014: 0.01%) of the net assets of the Fund were denominated in currencies other than sterling.

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 43,278 2,199,431 50,041 2,292,750 Financial Liabilities Sterling – – (43,745) (43,745) Total 43,278 2,199,431 6,296 2,249,005

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 1,007,204 1,586,638 55,401 2,649,243 Financial Liabilities Sterling – – (32,787) (32,787) Total 1,007,204 1,586,638 22,614 2,616,456 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR or its overseas equivalent.

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 3.61 3.47 14.02 15.2 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £675,357,000 (2014: £930,598,000) and the total sales amounted to £904,274,000 (2014: £802,574,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 125 Aviva Investors Corporate Bond Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the three months ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.4968 0.0994 0.3974 – 0.3974 0.3899 Group 2 0.1788 0.0358 0.1430 0.2544 0.3974 0.3899 Share Class 2 Group 1 0.7900 0.1580 0.6320 – 0.6320 0.6225 Group 2 0.3175 0.0635 0.2540 0.3780 0.6320 0.6225 Share Class 3 Group 1 1.1288 0.2258 0.9030 – 0.9030 0.8896 Group 2 0.4081 0.0816 0.3265 0.5765 0.9030 0.8896 Share Class A Group 1 0.4219 0.0844 0.3375 – 0.3375 0.3324 Group 2 0.2073 0.0415 0.1658 0.1717 0.3375 0.3324

Final distribution Final distribution Gross Income Net payable paid Accumulation shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 3 Group 1 1.5403 0.3081 1.2322 – 1.2322 1.1776 Group 2 0.5283 0.1057 0.4226 0.8096 1.2322 1.1776

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the three months ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 0.4853 0.0971 0.3882 – 0.3882 0.3999 Group 2 0.1708 0.0342 0.1366 0.2516 0.3882 0.3999 Share Class 2 Group 1 0.7719 0.1544 0.6175 – 0.6175 0.6369 Group 2 0.3969 0.0794 0.3175 0.3000 0.6175 0.6369 Share Class 3 Group 1 1.1054 0.2211 0.8843 – 0.8843 0.9068 Group 2 0.5509 0.1102 0.4407 0.4436 0.8843 0.9068 Share Class A Group 1 0.4106 0.0821 0.3285 – 0.3285 0.3426 Group 2 0.1991 0.0398 0.1593 0.1692 0.3285 0.3426

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 3 Group 1 1.4966 0.2993 1.1973 – 1.1973 1.1910 Group 2 0.4955 0.0991 0.3964 0.8009 1.1973 1.1910

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

126 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Corporate Bond Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the three months ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.4804 0.0961 0.3843 – 0.3843 0.3920 Group 2 0.1746 0.0349 0.1397 0.2446 0.3843 0.3920 Share Class 2 Group 1 0.7640 0.1528 0.6112 – 0.6112 0.6242 Group 2 0.3380 0.0676 0.2704 0.3408 0.6112 0.6242 Share Class 3 Group 1 1.0960 0.2192 0.8768 – 0.8768 0.8889 Group 2 0.3616 0.0723 0.2893 0.5875 0.8768 0.8889 Share Class A Group 1 0.4043 0.0809 0.3234 – 0.3234 0.3357 Group 2 0.1826 0.0365 0.1461 0.1773 0.3234 0.3357

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 3 Group 1 1.4731 0.2946 1.1785 – 1.1785 1.1585 Group 2 0.5381 0.1076 0.4305 0.7480 1.1785 1.1585

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the three months ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.4894 0.0979 0.3915 – 0.3915 0.3993 Group 2 0.1750 0.0350 0.1400 0.2515 0.3915 0.3993 Share Class 2 Group 1 0.7776 0.1555 0.6221 – 0.6221 0.6356 Group 2 0.4049 0.0810 0.3239 0.2982 0.6221 0.6356 Share Class 3 Group 1 1.1130 0.2226 0.8904 – 0.8904 0.9051 Group 2 0.5055 0.1011 0.4044 0.4860 0.8904 0.9051 Share Class A Group 1 0.4136 0.0827 0.3309 – 0.3309 0.3420 Group 2 0.2351 0.0470 0.1881 0.1428 0.3309 0.3420

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 3 Group 1 1.4848 0.2970 1.1878 – 1.1878 1.1706 Group 2 0.5025 0.1005 0.4020 0.7858 1.1878 1.1706

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 127 Aviva Investors Distribution Fund

AVIVA INVESTORS DISTRIBUTION FUND

INVESTMENT OBJECTIVE The outlook for UK equities remains moderately favourable, despite the recent setback. The economic landscape is improving A high and growing level of income with prospects for long term in much of the ‘developed’ world and this should enable capital appreciation. companies to continue growing profits and hence dividends. Furthermore, with inflation subdued it looks like global monetary policy is set to stay extremely loose. But on a note of caution, INVESTMENT POLICY we are keeping a close eye on events in China which have the potential to sour the global economic situation. Diversified investment in high yielding UK equities and UK fixed interest securities. Allocations to fixed interest securities, equities Our outlook for corporate bonds is cautiously optimistic. and cash will vary over time. Equity selections will be based on Valuations appear attractive and monetary policy is likely to price and long term total return prospects. remain supportive in the short to medium-term. Nevertheless, doubts about the growth outlook for emerging markets The Fund may invest in any of the following financial instruments following recent capital outflows have spooked investors. As in order to achieve its investment objective: transferable such our focus remains on managing company-specific risks, securities, money market instruments, units in collective particularly among issuers with exposure to emerging markets or investment schemes, deposits and derivatives and forward commodities. transactions. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Market data – Bloomberg. FUND MANAGER’S REPORT Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should Over the 12 months ended 15 October 2015, the Aviva Investors not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as Distribution Fund delivered a total return of 4.62 per cent (share up. Investors may not get back the original amount invested. class 1), net of fees, compared to an average return of 4.13 per cent for its peer group the Investment Association Mixed Investment 20-60% Shares sector. Material Portfolio Changes In relation to the equity portion of the Fund, stakes in Sage and Purchases Sales BCA Marketplace helped relative performance. Accounting software firm Sage climbed after confirming it was on track UK Treasury 4.75% 07/03/2020 UK Treasury 4.75% 07/03/2020 to meet 2015 targets due to robust growth in revenues and UK Treasury 6.00% 07/12/2028 UK Treasury 4.75% 07/12/2038 profits. BCA Marketplace, Europe’s largest second-hand car auctioneer, gave a positive trading update during the summer, UK Treasury 4.75% 07/12/2038 UK Treasury 4.25% 07/03/2036 with encouraging comments from the new management team Volkswagen Financial Services NV 2.00% on long-term earnings prospects. Media companies also made Royal Dutch Shell plc 'B' 23/10/2015 a positive contribution, notably the Fund’s stakes in satellite UK Treasury 4.50% 07/12/2042 HSBC Holdings plc broadcaster Sky and publishing group UBM. A cautious approach to investing in energy and mining stocks was also beneficial UK Treasury 5.00% 07/03/2025 Diageo plc as the slump in oil and metal prices continued. Centrica and UK Treasury 4.25% 07/06/2032 Enel SpA 5.75% 22/06/2037 BBA Aviation were significant detractors. Shares in Centrica, which owns British Gas, fell after the company’s profits dropped Veolia Environnement SA 6.13% 29/10/2037 Gatwick Funding Ltd. 4.63% 27/03/2034 and it cut its dividend. Flight support company BBA Aviation Experian Finance plc 4.75% 23/11/2018 NGG Finance plc, FRN 5.63% 18/06/2073 flagged that its ground-handling business is under pressure and Heathrow Funding Ltd. 7.13% 14/02/2024 Broadgate Financing plc 4.95% 05/04/2031 subsequently reported lacklustre interim results. The bond portion of the Fund produced positive returns as a rally in underlying government debt pushed corporate bond markets Synthetic Risk and Reward Indicator higher. Fund returns were aided further by various positions in asset-backed securities, which included a long-standing stake in Lower risk Higher risk bonds issued by UK pub company Mitchells & Butlers and debt backed by revenues from several real estate ventures. Positions in consumer goods companies also performed well. A stake in Typically lower rewards Typically higher rewards Imperial Tobacco was especially beneficial following speculation that Japan Tobacco was considering a bid for the British 1 2 3 4 5 6 7 cigarette maker. Holdings of debt issued by transport group The Fund has been allocated a risk number based on the historic volatility of FirstGroup also added to gains. Selective positions in British Sky its share price. Where insufficient share price information is available, the risk number has been based on the historic volatility of the asset classes appropriate Broadcasting also did well. Bonds issued by Veolia – a French to the Fund. electricity provider – benefitted from the sharp rally in euro zone – This indicator is based on historical data, calculated using European Union government bonds, adding to portfolio gains. Fund performance rules, and may not be a reliable indication of the future risk profile of the was undermined by holdings in Tesco as an accounting scandal Fund. and an intense price war between supermarkets caused the – The risk and reward category shown is not guaranteed to remain unchanged company’s debt to sell off. and may change over time. The lowest category does not mean ‘risk free’. – Bond values are affected by changes in interest rates, and the bond issuer’s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. – The value of investments will be affected by changes in exchange rates. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

128 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 83,502 44,276,097 188.59 Class 1 2010 166.96 152.00

15.10.14 80,895 42,122,466 192.05 2011 170.16 157.28

15.10.15 74,301 37,953,999 195.76 2012 180.89 162.83

Class 2 15.10.13 5,008 2,581,916 193.99 2013 194.55 180.88

15.10.14 37,331 18,835,532 198.19 2014 199.92 190.62

15.10.15 75,906 37,448,834 202.69 2015*** 208.92 194.76

Class 3 15.10.13 3,615 1,823,746 198.21 Class 2 2010 170.32 154.72

15.10.14 3,435 1,693,915 202.80 2011 173.93 160.89

15.10.15 3,346 1,610,973 207.72 2012 185.69 166.80

Class 4 15.10.13 222 210,487 105.60 2013 199.91 185.70

15.10.14 175 162,100 107.81 2014 206.57 196.28

15.10.15 317 287,848 110.17 2015*** 216.10 201.73

* Valued at bid market prices. Class 3 2010 173.12 157.00

2011 177.07 163.88 Net Asset Value – Accumulation Shares 2012 189.56 170.06 Net asset value* Shares Pence per 2013 204.17 189.58 Share class As at £000 in issue share 2014 211.53 200.65 Class 1 15.10.13 14,617 5,293,826 276.12 2015*** 221.40 206.80 15.10.14 20,722 7,174,185 288.84 Class 4 2012** 100.67 99.93 15.10.15 28,825 9,538,808 302.19 2013 108.85 100.67 * Valued at bid market prices. 2014 112.33 106.83

2015*** 117.49 109.64

* Valued at mid market prices. ** From 10 December 2012 (date of launch). *** Up to 15 October 2015.

Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Share class year (p) (p) Class 1 2010 221.50 196.22

2011 229.62 214.49

2012 257.43 224.62

2013 284.29 257.41

2014 300.67 280.02

2015** 315.89 298.68

* Valued at mid market prices. ** Up to 15 October 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 129 Aviva Investors Distribution Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 1.38% 1.39% per calendar year on a payment date basis for an investment made on 4 January 2010. Class 2 0.73% 0.74% Calendar Net revenue Per £1,000 Class 3 0.33% 0.34% Share class year per share (p) invested (£) Class 4 0.88% 0.89% Class 1 2010 7.7172 39.00 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual 2011 7.5420 38.11 Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 2012 8.2866 41.87 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 2013 7.6491 38.65

2014 7.6698 38.76

Revenue Record – Income Shares 2015* 7.9623 40.24 * Up to 15 December 2015 (the final distribution payment date). The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January 2010 (10 December 2012 for Share Class 4).

Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Class 1 2010 5.9471 38.45

2011 5.6331 36.42

2012 5.9501 38.47

2013 5.3176 34.38

2014 5.1847 33.52

2015** 5.2423 33.90

Class 2 2010 6.4046 40.68

2011 6.1196 38.87

2012 6.4844 41.19

2013 5.9682 37.91

2014 5.8666 37.27

2015** 5.9624 37.88

Class 3 2010 6.7640 42.34

2011 6.6284 41.49

2012 6.9774 43.68

2013 6.4718 40.51

2014 6.4025 40.08

2015** 6.5307 40.88

Class 4 2012* N/A N/A

2013 2.7169 27.17

2014 3.1229 31.23

2015** 3.1739 31.74

* From 10 December 2012 (date of launch). * Up to 15 December 2015 (the final distribution payment date).

130 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 1.04% (0.29%) Guernsey 0.00% (0.13%) United Kingdom 1.04% (0.16%) Greencoat UK Wind plc Fund GBP 454,334 508 0.28 P2P Global Investments plc Fund GBP 59,386 610 0.33 P2P Global Investments plc Fund C GBP 30,286 304 0.17 Ranger Direct Lending plc Fund GBP 45,224 471 0.26 1,893 1.04 Collective Investment Schemes total 1,893 1.04 Equities 32.25% (29.76%) Bermuda 0.55% (1.14%) Hiscox Ltd. GBP 109,229 1,005 0.55 1,005 0.55 Cayman Islands 0.59% (0.00%) Phoenix Group Holdings GBP 133,892 1,085 0.59 1,085 0.59 Guernsey 0.00% (0.73%) Jersey 1.04% (0.29%) Beazley plc GBP 189,204 657 0.36 UBM plc GBP 242,343 1,237 0.68 1,894 1.04 United Kingdom 30.07% (27.60%) AstraZeneca plc GBP 20,012 825 0.45 Aviva plc† GBP 476,642 2,207 1.21 BAE Systems plc GBP 124,920 567 0.31 BBA Aviation plc GBP 587,951 1,123 0.61 BBA Aviation plc Rights 26/10/2015 GBP 705,541 409 0.22 BCA Marketplace plc GBP 937,514 1,641 0.90 BHP Billiton plc GBP 145,722 1,701 0.93 BP plc GBP 400,003 1,534 0.84 British American Tobacco plc GBP 58,299 2,209 1.21 BT Group plc GBP 508,619 2,151 1.18 Centrica plc GBP 813,634 1,931 1.06 Cineworld Group plc GBP 148,098 861 0.47 Close Brothers Group plc GBP 81,384 1,165 0.64 Cobham plc GBP 209,302 612 0.33 Compass Group plc GBP 121,476 1,290 0.71 De La Rue plc GBP 9,487 45 0.02 DFS Furniture plc GBP 189,953 552 0.30 DS Smith plc GBP 260,851 961 0.53 GAME Digital plc GBP 199,347 398 0.22 GCP Student Living plc, REIT ‘C’ GBP 219,568 231 0.13 GlaxoSmithKline plc GBP 187,805 2,493 1.36 Headlam Group plc GBP 50,756 256 0.14 HSBC Holdings plc GBP 34,406 178 0.10 Imperial Tobacco Group plc GBP 69,599 2,416 1.32 Infinis Energy plc GBP 183,572 233 0.13 Inmarsat plc GBP 144,077 1,317 0.72 Intermediate Capital Group plc GBP 329,381 1,716 0.94 ITV plc GBP 307,456 750 0.41 Jupiter Fund Management plc GBP 77,514 332 0.18 KCOM Group plc GBP 1,069,238 962 0.53 Laird plc GBP 127,344 449 0.25 Legal & General Group plc GBP 621,466 1,528 0.84 Majestic Wine plc# GBP 76,086 262 0.14 Melrose Industries plc GBP 370,842 991 0.54 National Grid plc GBP 186,837 1,713 0.94

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 131 Aviva Investors Distribution Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 30.07% (27.60%) (continued) Northgate plc GBP 76,581 317 0.17 Novae Group plc GBP 38,048 330 0.18 Pearson plc GBP 72,077 856 0.47 Prudential plc GBP 88,600 1,308 0.72 Rathbone Brothers plc GBP 40,019 829 0.45 RELX plc GBP 65,168 744 0.41 Restaurant Group plc (The) GBP 89,389 629 0.34 Rexam plc GBP 256,637 1,386 0.76 Rio Tinto plc GBP 54,208 1,390 0.76 River & Mercantile Group plc GBP 247,928 590 0.32 Royal Dutch Shell plc ‘B’ GBP 83,494 1,502 0.82 Sage Group plc (The) GBP 304,645 1,599 0.87 Sky plc GBP 156,593 1,679 0.92 Unilever plc GBP 38,156 1,109 0.61 Vodafone Group plc GBP 981,915 2,022 1.11 Weir Group plc (The) GBP 51,856 647 0.35 54,946 30.07 Equities total 58,930 32.25 Government Bonds 6.47% (2.38%) Germany 0.68% (0.85%) KFW 5.00% 09/06/2036 GBP 900,000 1,242 0.68 1,242 0.68 Netherlands 0.58% (0.00%) Deutsche Bahn Finance BV 3.13% 24/07/2026 GBP 1,000,000 1,052 0.58 1,052 0.58 United Kingdom 5.21% (1.53%) UK Treasury 5.00% 07/03/2025 GBP 800,000 1,034 0.57 UK Treasury 6.00% 07/12/2028 GBP 2,300,000 3,400 1.86 UK Treasury 4.25% 07/06/2032 GBP 519,767 664 0.36 UK Treasury 4.25% 07/03/2036 GBP 400,000 518 0.29 UK Treasury 4.75% 07/12/2038 GBP 1,100,000 1,541 0.84 UK Treasury 4.50% 07/12/2042 GBP 1,700,000 2,362 1.29 9,519 5.21 Government Bonds total 11,813 6.47 Corporate Bonds 54.64% (58.54%) Australia 1.21% (0.00%) BHP Billiton Finance Ltd., FRN 0.00% 22/10/2077 GBP 800,000 815 0.44 Goodman Australia Finance Pty. Ltd. 9.75% 16/07/2018 GBP 1,179,000 1,404 0.77 2,219 1.21 Cayman Islands 1.00% (1.83%) Affinity Water Programme Finance Ltd. 4.50% 31/03/2036 GBP 400,000 442 0.24 Thames Water Utilities Cayman Finance Ltd., FRN 5.38% 21/07/2025 GBP 400,000 419 0.23 THPA Finance Ltd., Series B 8.24% 15/03/2028 GBP 246,000 295 0.16 Yorkshire Water Services Odsal Finance Ltd. 6.45% 28/05/2027 GBP 520,000 673 0.37 1,829 1.00 France 5.45% (4.18%) AXA SA, FRN 5.63% 16/01/2054 GBP 1,100,000 1,103 0.61 Electricite de France SA 6.13% 02/06/2034 GBP 2,200,000 2,674 1.46 Electricite de France SA, FRN 6.00% Perpetual GBP 1,100,000 1,096 0.60 Lafarge SA 10.00% 30/05/2017 GBP 1,100,000 1,226 0.67 Orange SA, FRN 5.88% Perpetual GBP 1,300,000 1,318 0.72 Veolia Environnement SA 6.13% 29/10/2037 GBP 1,200,000 1,525 0.84 Veolia Environnement SA, FRN 4.85% Perpetual GBP 1,000,000 1,007 0.55 9,949 5.45

132 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Ireland 0.70% (0.00%) GE Capital UK Funding 5.13% 24/05/2023 GBP 1,100,000 1,274 0.70 1,274 0.70 Italy 1.21% (1.66%) Enel SpA, FRN 6.62% 15/09/2076 GBP 1,000,000 1,029 0.56 Telecom Italia SpA 5.88% 19/05/2023 GBP 1,100,000 1,181 0.65 2,210 1.21 Jersey 3.96% (3.29%) AA Bond Co. Ltd. 6.27% 02/07/2043 GBP 600,000 718 0.39 AA Bond Co. Ltd. 5.50% 31/07/2043 GBP 779,000 735 0.40 Bank of Scotland Capital Funding LP, FRN 7.75% Perpetual GBP 551,000 629 0.34 Gatwick Funding Ltd. 5.25% 23/01/2026 GBP 1,400,000 1,602 0.88 Heathrow Funding Ltd. 7.13% 14/02/2024 GBP 2,000,000 2,480 1.36 HSBC Bank Capital Funding Sterling 1 LP, FRN 5.84% Perpetual GBP 1,000,000 1,080 0.59 7,244 3.96 Luxembourg 0.37% (0.51%) Nestle Finance International Ltd. 2.25% 30/11/2023 GBP 670,000 674 0.37 674 0.37 Mexico 0.66% (1.29%) America Movil SAB de CV 4.38% 07/08/2041 GBP 1,223,000 1,216 0.66 1,216 0.66 Netherlands 4.70% (5.15%) Allianz Finance II BV 4.50% 13/03/2043 GBP 1,300,000 1,431 0.79 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.63% 23/05/2029 GBP 1,300,000 1,320 0.72 Enel Finance International NV 5.75% 14/09/2040 GBP 1,100,000 1,284 0.70 ING Bank NV, FRN 6.88% 29/05/2023 GBP 700,000 767 0.42 Siemens Financieringsmaatschappij NV 3.75% 10/09/2042 GBP 1,200,000 1,193 0.65 Siemens Financieringsmaatschappij NV, FRN 6.12% 14/09/2066 GBP 1,300,000 1,335 0.73 Volkswagen Financial Services NV 2.75% 02/10/2020 GBP 1,300,000 1,249 0.69 8,579 4.70 Spain 0.75% (0.00%) Telefonica Emisiones SAU 5.45% 08/10/2029 GBP 1,200,000 1,363 0.75 1,363 0.75 Sweden 0.00% (0.73%) United Kingdom 27.07% (32.85%) Abbey National Treasury Services plc 5.13% 14/04/2021 GBP 1,400,000 1,618 0.89 Anglian Water Osprey Financing plc 7.00% 31/01/2018 GBP 900,000 973 0.53 Aviva plc, FRN 6.88% 20/05/2058† GBP 1,200,000 1,322 0.72 Aviva plc, FRN 5.90% Perpetual† GBP 1,100,000 1,129 0.62 Barclays Bank plc 10.00% 21/05/2021 GBP 1,000,000 1,291 0.71 Canary Wharf Finance II plc, Series A1 6.46% 22/10/2033 GBP 307,294 407 0.22 Eastern Power Networks plc 4.75% 30/09/2021 GBP 1,200,000 1,345 0.74 Experian Finance plc 4.75% 23/11/2018 GBP 1,500,000 1,626 0.89 F&C Finance plc 9.00% 20/12/2016 GBP 300,000 321 0.18 Firstgroup plc 6.13% 18/01/2019 GBP 1,275,000 1,397 0.76 GlaxoSmithKline Capital plc 4.25% 18/12/2045 GBP 1,100,000 1,174 0.64 Great Rolling Stock Co. Ltd. (The) 6.50% 05/04/2031 GBP 768,000 976 0.53 Greene King Finance plc, Series B1 5.70% 15/12/2034 GBP 1,394,000 1,302 0.71 HSBC Bank plc, FRN 5.38% 04/11/2030 GBP 1,400,000 1,515 0.83 Imperial Tobacco Finance plc 9.00% 17/02/2022 GBP 799,000 1,063 0.58 Intu Metrocentre Finance plc, REIT 4.13% 06/12/2023 GBP 1,000,000 1,047 0.57 Investec Bank plc 9.63% 17/02/2022 GBP 600,000 717 0.39 Juturna European Loan Conduit No .16 plc 5.06% 10/08/2033 GBP 874,701 1,014 0.56 Kensington Group Ltd., FRN 7.28% 21/12/2015 GBP 400,000 402 0.22 Legal & General Group plc, FRN 10.00% 23/07/2041 GBP 700,000 911 0.50 Lloyds Bank plc 7.63% 22/04/2025 GBP 1,100,000 1,393 0.76 Meadowhall Finance plc, Series B 4.99% 12/07/2037 GBP 878,475 1,029 0.56 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 133 Aviva Investors Distribution Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 27.07% (32.85%) (continued) Mitchells & Butlers Finance plc, Series B1 5.97% 15/12/2025 GBP 465,769 526 0.29 Mitchells & Butlers Finance plc, Series C1 6.47% 15/09/2032 GBP 1,200,000 1,478 0.81 Notting Hill Housing Trust 3.75% 20/12/2032 GBP 1,000,000 998 0.55 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 720,000 713 0.39 Prudential plc, FRN 11.37% 29/05/2039 GBP 991,000 1,250 0.68 Reed Elsevier Investments plc 2.75% 01/08/2019 GBP 1,700,000 1,739 0.95 Royal Bank of Scotland plc (The) 6.88% 17/05/2025 GBP 818,000 1,046 0.57 RSA Insurance Group plc, FRN 9.37% 20/05/2039 GBP 1,100,000 1,288 0.71 Segro plc 6.75% 23/11/2021 GBP 1,000,000 1,222 0.67 Sky Group Finance plc 5.75% 20/10/2017 GBP 1,200,000 1,289 0.71 Sky plc 4.00% 26/11/2029 GBP 1,100,000 1,112 0.61 Southern Gas Networks plc 2.50% 03/02/2025 GBP 1,500,000 1,433 0.78 SSE plc 6.25% 27/08/2038 GBP 486,000 630 0.34 Stagecoach Group plc 5.75% 16/12/2016 GBP 1,300,000 1,356 0.74 Standard Chartered plc 5.13% 06/06/2034 GBP 980,000 882 0.48 Standard Chartered plc 4.38% 18/01/2038 GBP 900,000 863 0.47 Tesco plc 4.88% 24/03/2042 GBP 850,000 669 0.37 Tesco Property Finance 6 plc 5.41% 13/07/2044 GBP 616,459 544 0.30 Tullett Prebon Group Holdings plc 7.04% 06/07/2016 GBP 262,000 266 0.15 Unilever plc 4.75% 16/06/2017 GBP 1,100,000 1,165 0.64 UNITE USAF II plc 3.92% 30/06/2030 GBP 1,068,000 1,133 0.62 Virgin Media Secured Finance plc 5.50% 15/01/2025 GBP 810,000 785 0.43 Wellcome Trust Ltd. (The) 4.00% 09/05/2059 GBP 850,000 1,034 0.57 Western Power Distribution West Midlands plc 5.75% 16/04/2032 GBP 1,300,000 1,612 0.88 White City Property Finance plc 5.12% 17/04/2035 GBP 390,283 456 0.25 49,461 27.07 United States of America 7.56% (7.05%) Ahold Finance USA LLC 6.50% 14/03/2017 GBP 680,000 723 0.40 AT&T, Inc. 4.25% 01/06/2043 GBP 1,400,000 1,290 0.71 Bank of America Corp. 7.75% 30/04/2018 GBP 1,200,000 1,370 0.75 Citigroup, Inc. 4.50% 03/03/2031 GBP 1,200,000 1,233 0.68 DIRECTV Holdings LLC 4.38% 14/09/2029 GBP 1,400,000 1,429 0.78 Goldman Sachs Group, Inc. (The) 6.13% 14/05/2017 GBP 1,290,000 1,368 0.75 JPMorgan Chase & Co. 1.88% 10/02/2020 GBP 1,434,000 1,407 0.77 JPMorgan Chase & Co. 3.50% 18/12/2026 GBP 1,300,000 1,339 0.73 Metropolitan Life Global Funding I 3.50% 30/09/2026 GBP 1,100,000 1,155 0.63 Verizon Communications, Inc. 4.07% 18/06/2024 GBP 1,100,000 1,169 0.64 Wells Fargo & Co. 3.50% 12/09/2029 GBP 1,300,000 1,321 0.72 13,804 7.56 Corporate Bonds total 99,822 54.64 Supranationals 0.75% (0.94%) Supranational 0.75% (0.94%) European Investment Bank 5.00% 15/04/2039 GBP 1,000,000 1,378 0.75 1,378 0.75 Supranationals total 1,378 0.75 Swaps 0.00% (0.00%) Credit Default Swap Buy France Government Bond OAT 4.25% 25/04/2019 20/12/2016 USD 1,100,000 (2) – Swaps total (2) –

Investment assets 173,834 95.15 Net other assets 8,861 4.85 Net assets 182,695 100.00

All holdings are debt securities denominated in Sterling and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. † A related party to the Fund. # Security traded on another regulated market.

134 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Bond Rating

Market Value £000 % of Net Assets Bonds – Investment grade* 95,445 52.26 – Below investment grade 15,638 8.55 – Unrated 1,930 1.05 Debt securities total 113,013 61.86

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Credit default Counterparty swaps Total 15.10.15 £000 £000

Barclays 710 710

Total 710 710

Credit default Counterparty swaps Total 15.10.14 £000 £000

Barclays 691 691

Total 691 691

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 135 Aviva Investors Distribution Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains 2 2,862 2,609

Revenue 3 6,817 5,124

Expenses 4 (1,903) (1,552)

Finance costs: Interest 6 (1) –

Net revenue before taxation 4,913 3,572

Taxation 5 – –

Net revenue after taxation 4,913 3,572

Total return before distributions 7,775 6,181

Finance costs: Distributions 6 (5,758) (4,267)

Change in net assets attributable to shareholders from investment activities 2,017 1,914

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 142,558 106,964

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 46,568 43,064

Amounts payable on cancellation of shares (9,160) (9,869)

37,408 33,195

Stamp duty reserve tax – (14)

Change in net assets attributable to shareholders from investment activities (see above) 2,017 1,914

Retained distribution on accumulation shares 699 488

Unclaimed distribution monies 13 11

Closing net assets attributable to shareholders 182,695 142,558

136 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 173,836 131,029

Debtors 7 3,368 2,620

Cash and bank balances 8 8,403 10,532

Total other assets 11,771 13,152

Total assets 185,607 144,181

LIABILITIES

Investment liabilities (2) (1)

Creditors 9 (1,849) (751)

Distribution payable on income shares (1,061) (871)

Total other liabilities (2,910) (1,622)

Total liabilities (2,912) (1,623)

Net assets attributable to shareholders 182,695 142,558

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 137 Aviva Investors Distribution Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains on investments during the year comprise:

Currency gains/(losses) 4 (1)

Derivative contracts gains/(losses) 19 (6)

Expenses relating to the purchase and sale of investments (6) (4)

Non-derivative securities gains 2,845 2,620

Net capital gains 2,862 2,609

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest – 3

Interest on debt securities 4,375 3,516

Interest on derivatives (2) (2)

Overseas dividends 266 131

UK dividends 2,175 1,476

Underwriting commission 3 –

Total revenue 6,817 5,124

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 1,687 1,389

Registration fees 165 120

1,852 1,509

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 18 14

Safe custody fee 13 11

31 25

Other expenses:

Audit fee* 11 12

Printing & postage expenses 2 2

Statement fees 7 4

20 18

Total expenses 1,903 1,552

* The audit fee was £8,550 (2014: £8,508) net of VAT.

138 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 4,913 3,572 Corporation tax at 20% 983 714 Effects of: Movement in excess expenses 105 – Overseas dividends not subject to corporation tax (53) (26) Tax deductible on interest distributions (602) (397) UK dividends not subject to corporation tax (433) (291) (983) (714) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £11,079,000 (2014: £10,553,000) creating a potential deferred tax asset of £2,216,000 (2014: £2,111,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distribution for the three months ended 15 January 1,093 804 Gross interest distribution for the three months ended 15 April 1,655 1,064 Gross interest distribution for the three months ended 15 July 1,595 1,267 Gross interest distribution for the three months ended 15 October 1,554 1,266 5,897 4,401 Add: Revenue deducted on cancellation of shares 31 31 Deduct: Revenue received on issue of shares (170) (165) Finance costs: Distributions 5,758 4,267 Finance costs: Interest of bank overdrafts 1 – Total finance costs 5,759 4,267 Reconciliation of distributions for the year to net revenue after taxation Distributions for the year 5,758 4,267 ACD's periodic charge borne by the capital account (844) (695) Equalisation on conversions (1) – Net revenue after taxation 4,913 3,572 Details of the distributions per share are set out in the distribution tables on pages 143 and 144. avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 139 Aviva Investors Distribution Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 2,401 1,780 Amounts receivable on issue of shares 744 595 Sales awaiting settlement 223 245 Total debtors 3,368 2,620

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 8,403 10,532

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 274 229 Amounts payable for cancellation of shares 70 35 Income tax payable 544 268 Purchases awaiting settlement 961 219 Total creditors 1,849 751

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £230,000 (2014: £194,000) and registration fees was £23,000 (2014: £18,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £4,745,000 (2014: £357,000). The amount outstanding at the year end was £1,248,000 (2014: £118,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 6,266 (945,007) 951,273 ACD and related parties (share class 2 Income shares) 4,278,071 2,614,689 1,663,382 ACD and related parties (share class 3 Income shares) 1,610,973 (82,942) 1,693,915 ACD and related parties (share class 1 Accumulation shares) 5,089,243 2,451,518 2,637,725 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

140 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has four share classes: Classes 1 and 4 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.25% Class 2: 0.60% Class 3: 0.30% Class 4: 0.75% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 129. The distributions per share class are given in the distribution tables on pages 143 and 144. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.15% (2014: 0.01%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 270 – – 270 US Dollar 10,583 110,563 64,191 185,337 Financial Liabilities Sterling – – (2) (2) US Dollar – – (2,910) (2,910) Total 10,853 110,563 61,279 182,695

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 13,446 85,272 45,463 144,181 Financial Liabilities Sterling – – (1,622) (1,622) US Dollar – – (1) (1) Total 13,446 85,272 43,840 142,558 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR or its overseas equivalent.

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 3.63 3.85 15 17 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 141 Aviva Investors Distribution Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 97,103 73,090 Commissions 41 11 Taxes 148 63 Total purchase costs 189 74 Gross purchases total 97,292 73,164 Analysis of total sale costs Gross sales before transaction costs 56,707 47,597 Commissions (29) (12) Total sale costs (29) (12) Total sales net of transaction costs 56,678 47,585

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

142 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Distribution Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the three months ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 1.6003 0.3201 1.2802 – 1.2802 1.3270 Group 2 0.6965 0.1393 0.5572 0.7230 1.2802 1.3270 Share Class 2 Group 1 1.8246 0.3649 1.4597 – 1.4597 1.5013 Group 2 0.9494 0.1899 0.7595 0.7002 1.4597 1.5013 Share Class 3 Group 1 2.0025 0.4005 1.6020 – 1.6020 1.6388 Group 2 1.3578 0.2716 1.0862 0.5158 1.6020 1.6388 Share Class 4 Group 1 0.9706 0.1941 0.7765 – 0.7765 0.7999 Group 2 0.5670 0.1134 0.4536 0.3229 0.7765 0.7999

Final distribution Final distribution Gross Income Net payable paid Accumulation shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 2.4543 0.4909 1.9634 – 1.9634 1.9829 Group 2 1.1759 0.2352 0.9407 1.0227 1.9634 1.9829

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the three months ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 1.7200 0.3440 1.3760 – 1.3760 1.4488 Group 2 0.6224 0.1245 0.4979 0.8781 1.3760 1.4488 Share Class 2 Group 1 1.9494 0.3899 1.5595 – 1.5595 1.6245 Group 2 0.9069 0.1814 0.7255 0.8340 1.5595 1.6245 Share Class 3 Group 1 2.1303 0.4261 1.7042 – 1.7042 1.7627 Group 2 1.2683 0.2537 1.0146 0.6896 1.7042 1.7627 Share Class 4 Group 1 1.0385 0.2077 0.8308 – 0.8308 0.8651 Group 2 0.8563 0.1713 0.6850 0.1458 0.8308 0.8651

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 2.6196 0.5239 2.0957 – 2.0957 2.1483 Group 2 1.1089 0.2218 0.8871 1.2086 2.0957 2.1483

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 143 Aviva Investors Distribution Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the three months ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 1.8861 0.3772 1.5089 – 1.5089 1.3190 Group 2 1.1738 0.2348 0.9390 0.5699 1.5089 1.3190 Share Class 2 Group 1 2.1211 0.4242 1.6969 – 1.6969 1.4884 Group 2 1.0110 0.2022 0.8088 0.8881 1.6969 1.4884 Share Class 3 Group 1 2.3055 0.4611 1.8444 – 1.8444 1.6206 Group 2 1.7771 0.3554 1.4217 0.4227 1.8444 1.6206 Share Class 4 Group 1 1.1323 0.2265 0.9058 – 0.9058 0.7932 Group 2 0.6205 0.1241 0.4964 0.4094 0.9058 0.7932

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 2.8529 0.5706 2.2823 – 2.2823 1.9427 Group 2 1.5043 0.3009 1.2034 1.0789 2.2823 1.9427

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the three months ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 1.3465 0.2693 1.0772 – 1.0772 1.0899 Group 2 0.6686 0.1337 0.5349 0.5423 1.0772 1.0899 Share Class 2 Group 1 1.5579 0.3116 1.2463 – 1.2463 1.2524 Group 2 0.7638 0.1528 0.6110 0.6353 1.2463 1.2524 Share Class 3 Group 1 1.7251 0.3450 1.3801 – 1.3801 1.3804 Group 2 1.1335 0.2267 0.9068 0.4733 1.3801 1.3804 Share Class 4 Group 1 0.8260 0.1652 0.6608 – 0.6608 0.6647 Group 2 0.2521 0.0504 0.2017 0.4591 0.6608 0.6647

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 2.0261 0.4052 1.6209 – 1.6209 1.5959 Group 2 1.0315 0.2063 0.8252 0.7957 1.6209 1.5959

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

144 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

AVIVA INVESTORS HIGH YIELD BOND FUND

INVESTMENT OBJECTIVE Our outlook for corporate bonds is cautiously optimistic. Valuations appear attractive as credit spreads are at their widest To maximise total return while generating a high level of income point in more than two years, which suggests there is some through investment in a diversified portfolio of fixed interest room for them to narrow over the near-term. It is likely that securities. monetary policy will remain supportive in the short to medium- term, and with the Bank of Japan and European Central Bank potentially extending current monetary easing, this should INVESTMENT POLICY alleviate concerns over economic growth, which should further support credit markets. Nevertheless, there are several material Diversified investment in high yield bonds but also other fixed uncertainties clouding markets. Questions about the growth income assets, such as government bonds and investment grade outlook for emerging markets, and particularly China, following corporates. recent capital outflows have spooked investors. Furthermore, The Fund may invest in any of the following financial instruments markets are treading in uncharted waters following years of in order to achieve its investment objective: transferable securities, unprecedented monetary stimulus. As such our focus remains on money market instruments, units in collective investment managing company-specific risks, particularly among issuers with schemes, deposits and derivatives and forward transactions. exposure to emerging markets or commodities, and to those that are candidates for taking more debt onto their balance sheets. Note: at least 80 per cent of assets will either be in sterling or currency hedged back to sterling. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should FUND MANAGER’S REPORT not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as Over the 12 months ended 15 October 2015, the Aviva Investors well as up. Investors may not get back the original amount invested. High Yield Bond Fund (share class 1) delivered a total return of 4.16 per cent, net of fees. The Fund’s peer group, the Investment Association’s Sterling High Yield sector, generated an average Material Portfolio Changes return of 0.50 per cent. Purchases Sales Sterling high-yield bonds registered positive returns over the period, outperforming both US dollar and euro-denominated Koninklijke KPN NV, FRN 6.88% 14/03/2073 Telecom Italia SpA 6.38% 24/06/2019 debt. Corporate bonds were underpinned by a sharp rise in Telecom Italia SpA 5.88% 19/05/2023 Banque PSA Finance SA 4.00% 24/06/2015 underlying UK government debt as plummeting oil prices helped push UK inflation to its lowest on record, and as the the Chemours Co. (The) 6.13% 15/05/2023 CPUK Finance Ltd. 11.63% 28/02/2018 European Central Bank began ‘quantitative easing’. Demand for Schaeffler Finance BV 3.25% 15/05/2025 AA Bond Co. Ltd. 9.50% 31/07/2019 gilts also increased due to global market turbulence brought on AA Bond Co. Ltd. 5.50% 31/07/2043 Barclays plc, FRN 7.00% Perpetual by a prolonged commodity slump, slowing growth in China and an exodus from emerging-market assets which parked a flight Prudential plc, FRN 11.37% 29/05/2039 Abengoa Finance SAU 6.00% 31/03/2021 to ‘safe-haven’ assets. However, credit spreads – the difference Kirk Beauty One GmbH 8.75% 15/07/2023 UK Treasury 4.50% 07/12/2042 between government and corporate bond yields – widened as investors grew more concerned about companies’ ability to New Look Senior Issuer plc 8.00% Cable Communications Systems NV 7.50% repay debt amid a surge in global bond issuance. The uncertainty 01/07/2023 01/11/2020 generated by the prolonged negotiations between Greece and Crown European Holdings SA 3.38% its creditors also weighed on credit markets. 15/05/2025 Schaeffler Finance BV 6.75% 15/11/2022 The Fund’s strong outperformance versus its peer group was Sprint Corp. 7.25% 15/09/2021 UniCredit SpA, FRN 8.00% Perpetual partially due to holdings of selective financial services companies, including stakes in French banking group Credit Agricole and Barclays Bank. Holdings of Keepmoat, a UK public and private Synthetic Risk and Reward Indicator homebuilder and property services provider, especially aided performance as the companies’ bonds rallied sharply after Lower risk Higher risk it was awarded two contracts to build more than 100 new homes in Nottingham. Bonds from Odeon appreciated sharply after the cinema operator’s owners put the company up for Typically lower rewards Typically higher rewards sale, significantly advanced fund gains. Holdings in a long- 1 2 3 4 5 6 7 standing preference for UK pub and bar operators advanced throughout the period, particularly Spirit which was the subject The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk of a takeover that created the biggest managed pub business. number has been based on the historic volatility of the asset classes appropriate Stakes in European telecommunication companies also enhanced to the Fund. returns, including debt issued by Spain’s Telefonica, Telecom – This indicator is based on historical data, calculated using European Union Italia, Orange and the Dutch KPN, which also benefitted from rules, and may not be a reliable indication of the future risk profile of the a sharp rally in ‘peripheral’ euro zone government debt. The Fund. Fund’s position in Schaeffler did well after the German auto- – The risk and reward category shown is not guaranteed to remain unchanged parts supplier announced it would be launching its initial public and may change over time. The lowest category does not mean ‘risk free’. offering (IPO). A stake in Yioula, a Greek glass manufacturer, also – Bond values are affected by changes in interest rates, and the bond issuer’s creditworthiness. Bonds that produce a higher level of income usually have a ramped up fund gains as the company benefitted from resolution greater risk of default. of the standoff between Greece and its creditors. Holdings – The value of investments will be affected by changes in exchange rates. in luxury car maker Jaguar Land Rover performed strongly – Full information on the risks applicable to the Fund is detailed in the throughout the reporting period. Prospectus. avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 145 Aviva Investors High Yield Bond Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 5,207 7,651,279 68.05 Class 1 2010 66.94 60.85

15.10.14 9,523 13,678,412 69.62 2011 66.91 56.97

15.10.15 7,918 11,344,922 69.79 2012 67.34 59.64

Class 2 15.10.13 692 670,500 103.14 2013 70.21 66.80

15.10.14 14,299 13,552,895 105.51 2014 72.82 70.02

15.10.15 42,179 39,876,562 105.77 2015** 73.43 69.44

Class 3 15.10.13 4 3,000 137.56 Class 2 2010 101.52 92.28

15.10.14** N/A N/A N/A 2011 101.42 86.39

* Valued at bid market prices. 2012 102.14 90.38 ** Share class closed on 22 January 2014. 2013 106.49 101.31

2014 110.45 105.25 Net Asset Value – Accumulation Shares 2015** 111.40 106.26 Net asset value* Shares Pence per Class 3 2010 135.49 123.14 Share class As at £000 in issue share 2011 135.27 115.28 Class 3 15.10.13 57,404 30,305,264 189.42 2012 136.29 120.51 15.10.14 68,539 33,780,521 202.89 2013 142.12 135.20 15.10.15 71,231 33,504,009 212.60 2014*** 143.46 141.76 * Valued at bid market prices. * Valued at mid market prices. ** Up to 15 October 2015. *** Up to 22 January 2014 (date share class closed).

Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Share class year (p) (p) Class 3 2010 154.25 133.33

2011 160.43 138.87

2012 178.06 148.12

2013 195.66 178.18

2014 208.05 195.77

2015** 216.97 207.59

* Valued at mid market prices. ** Up to 15 October 2015.

Ongoing Charges Figure* Share class 15.10.15 15.10.14 Class 1 1.14% 1.14%

Class 2 0.64% 0.64%

Class 3 0.34% 0.34%

* The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously.

146 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

INVESTMENT PERFORMANCE (CONTINUED)

Revenue Record – Income Shares Revenue Record – Accumulation Shares The revenue record table below shows the net distribution rates The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment per calendar year on a payment date basis for an investment made on 4 January 2010. made on 4 January 2010.

Calendar Net revenue Per £1,000 Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Share class year per share (p) invested (£) Class 1 2010 3.5779 58.80 Class 3 2010 9.0125 67.60

2011 3.5807 58.84 2011 9.5152 71.37

2012 3.5338 58.07 2012 9.9853 74.89

2013 3.1470 51.72 2013 9.6458 72.35

2014 2.8180 46.31 2014 9.2714 69.54

2015* 2.7016 44.40 2015* 9.3740 70.31

Class 2 2010 5.7219 62.01 * Up to 15 December 2015 (the final distribution payment date).

2011 5.7254 62.04

2012 5.6653 61.39

2013 5.1804 56.14

2014 4.7070 51.01

2015* 4.5347 49.14

Class 3 2010 8.1289 66.01

2011 8.0700 65.53

2012 7.9678 64.70

2013 7.2832 59.14

2014** 1.8043 14.65

* Up to 15 December 2015 (the final distribution payment date). ** Up to 22 January 2014 (date share class closed).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 147 Aviva Investors High Yield Bond Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Government Bonds 0.39% (0.59%) South Africa 0.39% (0.59%) Transnet SOC Ltd. 13.50% 18/04/2028 ZAR 8,000,000 467 0.39 467 0.39 Government Bonds total 467 0.39 Corporate Bonds 97.05% (93.84%) Australia 1.33% (0.00%) BHP Billiton Finance Ltd., FRN 0.00% 22/10/2077 GBP 769,000 784 0.65 BHP Billiton Finance USA Ltd., FRN 0.00% 19/10/2075 USD 1,267,000 830 0.68 1,614 1.33 Austria 0.70% (1.01%) Telekom Austria AG, FRN 5.63% Perpetual EUR 1,100,000 850 0.70 850 0.70 Canada 1.24% (0.70%) Valeant Pharmaceuticals International, Inc. 4.50% 15/05/2023 EUR 2,250,000 1,504 1.24 1,504 1.24 Cayman Islands 0.99% (0.84%) ERC Ireland Finance Ltd., FRN 6.16% 15/08/2016§ EUR 300,000 – – THPA Finance Ltd., Series B 8.24% 15/03/2028 GBP 1,000,000 1,199 0.99 1,199 0.99 Croatia 0.66% (0.93%) Agrokor dd 9.13% 01/02/2020 EUR 1,000,000 795 0.66 795 0.66 Denmark 1.13% (0.00%) TDC A/S, FRN 3.50% 26/02/2049 EUR 2,000,000 1,376 1.13 1,376 1.13 Finland 0.00% (1.46%) France 14.15% (11.88%) AXA SA, FRN 5.45% Perpetual GBP 550,000 551 0.45 AXA SA, FRN 5.63% 16/01/2054 GBP 600,000 602 0.50 BNP Paribas SA, FRN 5.95% Perpetual GBP 1,000,000 995 0.82 Credit Agricole SA, FRN 7.50% Perpetual GBP 2,000,000 1,941 1.60 Crown European Holdings SA 3.38% 15/05/2025 EUR 2,500,000 1,699 1.40 Electricite de France SA, FRN 6.00% Perpetual GBP 1,300,000 1,296 1.07 GIE PSA Tresorerie 6.00% 19/09/2033 EUR 1,300,000 1,055 0.87 Horizon Holdings I SASU 7.25% 01/08/2023 EUR 1,355,000 1,020 0.84 Lafarge SA 10.00% 30/05/2017 GBP 2,000,000 2,228 1.84 Numericable-SFR SAS 5.38% 15/05/2022 EUR 2,000,000 1,487 1.23 Orange SA, FRN 5.88% Perpetual GBP 1,200,000 1,216 1.00 TOTAL SA, FRN 2.63% Perpetual EUR 1,600,000 1,059 0.87 Veolia Environnement SA, FRN 4.85% Perpetual GBP 2,000,000 2,015 1.66 17,164 14.15 Germany 4.02% (2.84%) Kirk Beauty One GmbH 8.75% 15/07/2023 EUR 2,500,000 1,839 1.51 Paternoster Holding III GmbH 8.50% 15/02/2023 EUR 2,000,000 1,367 1.13 Pfleiderer GmbH 7.88% 01/08/2019 EUR 2,200,000 1,674 1.38 4,880 4.02 Hong Kong 1.20% (0.00%) CITIC Ltd., FRN 8.62% Perpetual USD 2,000,000 1,454 1.20 1,454 1.20 Ireland 1.19% (1.28%) Swiss Reinsurance Co. Ltd., FRN 6.37% 01/09/2024 USD 2,200,000 1,450 1.19 1,450 1.19

148 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Italy 7.85% (6.69%) Assicurazioni Generali SpA, FRN 6.42% Perpetual GBP 1,000,000 1,014 0.83 Enel SpA, FRN 8.75% 24/09/2073 USD 3,450,000 2,584 2.13 Intesa Sanpaolo SpA 6.63% 13/09/2023 EUR 1,750,000 1,563 1.29 Snai SpA 7.63% 15/06/2018 EUR 1,000,000 754 0.62 Telecom Italia SpA 5.88% 19/05/2023 GBP 2,200,000 2,362 1.95 UniCredit SpA, FRN 8.00% Perpetual USD 2,000,000 1,249 1.03 9,526 7.85 Jersey 3.52% (5.59%) AA Bond Co. Ltd. 5.50% 31/07/2043 GBP 2,000,000 1,888 1.56 CPUK Finance Ltd. 7.00% 28/02/2042 GBP 1,200,000 1,207 0.99 Galaxy Finco Ltd. 7.88% 15/11/2021 GBP 1,200,000 1,171 0.97 4,266 3.52 Luxembourg 8.82% (9.94%) Altice Luxembourg SA 7.25% 15/05/2022 EUR 3,200,000 2,269 1.87 Fiat Chrysler Finance Europe 4.75% 15/07/2022 EUR 2,000,000 1,531 1.26 Galapagos Holding SA 7.00% 15/06/2022 EUR 1,750,000 1,168 0.96 HeidelbergCement Finance Luxembourg SA 7.50% 03/04/2020 EUR 1,300,000 1,167 0.96 LSF9 Balta Issuer SA 7.75% 15/09/2022 EUR 1,375,000 1,029 0.85 Telecom Italia Finance SA 7.75% 24/01/2033 EUR 1,250,000 1,192 0.98 Wind Acquisition Finance SA 4.00% 15/07/2020 EUR 1,500,000 1,087 0.90 Wind Acquisition Finance SA 7.00% 23/04/2021 EUR 1,700,000 1,256 1.04 10,699 8.82 Mexico 0.69% (0.92%) America Movil SAB de CV, FRN 6.37% 06/09/2073 GBP 800,000 833 0.69 833 0.69 Netherlands 10.84% (11.57%) Glasstank BV 8.50% 15/05/2019 EUR 3,250,000 2,229 1.84 Grupo Antolin Dutch BV 4.75% 01/04/2021 EUR 2,000,000 1,470 1.21 Koninklijke KPN NV, FRN 6.88% 14/03/2073 GBP 2,250,000 2,326 1.92 OI European Group BV 6.75% 15/09/2020 EUR 1,000,000 846 0.70 Samvardhana Motherson Automotive Systems Group BV 4.13% 15/07/2021 EUR 1,400,000 949 0.78 Schaeffler Finance BV 3.25% 15/05/2025 EUR 2,000,000 1,440 1.18 Telefonica Europe BV, FRN 6.75% Perpetual GBP 3,000,000 3,093 2.55 UPC Holding BV 6.75% 15/03/2023 EUR 1,000,000 802 0.66 13,155 10.84 Poland 0.00% (0.88%) Spain 0.00% (0.63%) Switzerland 0.83% (0.00%) UBS Group AG, FRN 6.87% Perpetual USD 1,600,000 1,012 0.83 1,012 0.83 United Kingdom 35.00% (35.05%) Anglian Water Osprey Financing plc 7.00% 31/01/2018 GBP 1,600,000 1,730 1.43 Care UK Health & Social Care plc, FRN 5.58% 15/07/2019 GBP 1,222,000 1,117 0.92 Cattles Ltd. 7.13% 05/07/2017§ GBP 250,000 6 – Debenhams plc 5.25% 15/07/2021 GBP 2,000,000 1,973 1.63 F&C Finance plc 9.00% 20/12/2016 GBP 576,000 617 0.51 First Hydro Finance plc 9.00% 31/07/2021 GBP 550,000 727 0.60 Greene King Finance plc, Series B1 5.70% 15/12/2034 GBP 1,944,000 1,815 1.50 Heathrow Finance plc 7.13% 01/03/2017 GBP 1,000,000 1,052 0.87 HSBC Holdings plc, FRN 6.37% Perpetual USD 839,000 528 0.43 Imperial Tobacco Finance plc 4.25% 21/07/2025 USD 1,386,000 926 0.76 Infinis plc 7.00% 15/02/2019 GBP 1,000,000 1,011 0.83 Investec Bank plc 9.63% 17/02/2022 GBP 1,300,000 1,553 1.28 Jaguar Land Rover Automotive plc 5.00% 15/02/2022 GBP 2,250,000 2,279 1.88 Kelda Finance No. 3 plc 5.75% 17/02/2020 GBP 600,000 627 0.52

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 149 Aviva Investors High Yield Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 35.00% (35.05%) (continued) Keystone Financing plc 9.50% 15/10/2019 GBP 1,500,000 1,575 1.30 Matalan Finance plc 6.88% 01/06/2019 GBP 1,628,000 1,358 1.12 Mitchells & Butlers Finance plc, FRN, Series D1 2.71% 15/06/2036 GBP 1,734,000 1,543 1.27 Moto Finance plc 6.38% 01/09/2020 GBP 1,100,000 1,113 0.92 New Look Senior Issuer plc 8.00% 01/07/2023 GBP 1,750,000 1,648 1.36 NWEN Finance plc 5.88% 21/06/2021 GBP 1,200,000 1,250 1.03 Odeon & UCI Finco plc 9.00% 01/08/2018 GBP 1,000,000 1,035 0.85 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 1,340,000 1,327 1.09 Principality Building Society, FRN 1.59% 08/07/2016 GBP 1,000,000 970 0.80 Priory Group No. 3 plc 7.00% 15/02/2018 GBP 489,762 504 0.41 Priory Group No. 3 plc 8.88% 15/02/2019 GBP 483,000 499 0.41 Prudential plc, FRN 11.37% 29/05/2039 GBP 1,500,000 1,892 1.56 R&R Pik plc 9.25% 15/05/2018 EUR 750,000 560 0.46 Spirit Issuer plc, FRN 5.47% 28/12/2034 GBP 1,100,000 1,097 0.90 TES Finance plc 6.75% 15/07/2020 GBP 1,500,000 1,415 1.17 Tesco plc 6.13% 24/02/2022 GBP 1,200,000 1,269 1.05 Thames Water Kemble Finance plc 7.75% 01/04/2019 GBP 1,500,000 1,640 1.35 Travis Perkins plc 4.38% 15/09/2021 GBP 1,400,000 1,419 1.17 Virgin Media Secured Finance plc 5.50% 15/01/2025 GBP 2,475,000 2,400 1.98 Virgin Media Secured Finance plc 6.25% 28/03/2029 GBP 1,000,000 999 0.82 William Hill plc 4.25% 05/06/2020 GBP 1,000,000 994 0.82 42,468 35.00 United States of America 2.89% (1.63%) Chemours Co. (The) 6.13% 15/05/2023 EUR 3,333,000 1,773 1.46 Frontier Communications Corp. 8.88% 15/09/2020 USD 500,000 328 0.27 Sprint Corp. 7.25% 15/09/2021 USD 2,500,000 1,405 1.16 3,506 2.89 Corporate Bonds total 117,751 97.05 Swaps (0.01)% ((0.01%)) Credit Default Swap Buy France Government Bond OAT 4.25% 25/04/2019 USD 4,100,000 (7) (0.01) Swaps total (7) (0.01) Forward Currency Contracts 0.05% ((0.45)%) Buy GBP 40,245,291 sell EUR 54,436,000 dated 14/01/2016 (25) (0.02) Buy GBP 11,875,252 Sell USD 18,238,000 dated 14/01/2016 94 0.07 Buy GBP 477,963 sell ZAR 9,917,000 dated 14/01/2016 (3) – Buy USD 17,237 sell ARS 184,000 dated 14/01/2016 – – Forward Currency Contracts total 66 0.05 Futures (0.01)% ((0.16)%) US 10 Year Note 21/12/2015 USD (14) (15) (0.01) Futures total (15) (0.01)

Investment assets 118,262 97.47 Net other assets 3,066 2.53 Net assets 121,328 100.00

All holdings are debt securities denominated in Sterling and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. § Security is currently in default.

150 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Bond Rating

Market Value £000 % of Net Assets Bonds – Investment grade* 16,276 13.42 – Below investment grade 93,295 76.91 – Unrated 8,647 7.11 Debt securities total 118,218 97.44

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.15 £000 £000 £000 £000

Barclays 2,647 – – 2,647

Citibank – (28) – (28)

Société Générale – 94 – 94

JPMorgan – – (1,167) (1,167)

Total 2,647 66 (1,167) 1,546

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.14 £000 £000 £000 £000

Barclays 2,575 (1) – 2,574

Goldman Sachs – 45 – 45

JPMorgan – 2 (3,382) (3,380)

Morgan Stanley – (29) – (29)

Natwest – (3) – (3)

Nomura International – 3 – 3

Royal Bank of Canada – 14 – 14

UBS – (441) – (441)

Total 2,575 (410) (3,382) (1,217)

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 151 Aviva Investors High Yield Bond Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital (losses)/gains 2 (600) 1,000

Revenue 3 6,428 4,816

Expenses 4 (519) (356)

Finance costs: Interest 6 – (9)

Net revenue before taxation 5,909 4,451

Taxation 5 – –

Net revenue after taxation 5,909 4,451

Total return before distributions 5,309 5,451

Finance costs: Distributions 6 (5,910) (4,452)

Change in net assets attributable to shareholders from investment activities (601) 999

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 92,361 63,307

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 42,066 30,303

Amounts payable on cancellation of shares (15,662) (5,257)

26,404 25,046

Change in net assets attributable to shareholders from investment activities (see above) (601) 999

Retained distribution on accumulation shares 3,164 3,009

Closing net assets attributable to shareholders 121,328 92,361

152 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 118,312 87,634

Debtors 7 3,072 3,956

Cash and bank balances 8 4,697 3,318

Total other assets 7,769 7,274

Total assets 126,081 94,908

LIABILITIES

Investment liabilities (50) (990)

Creditors 9 (4,116) (1,307)

Distribution payable on income shares (587) (250)

Total other liabilities (4,703) (1,557)

Total liabilities (4,753) (2,547)

Net assets attributable to shareholders 121,328 92,361

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 153 Aviva Investors High Yield Bond Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital (losses)/gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital (losses)/gains on investments during the year comprise:

Currency losses (666) (407)

Derivative contracts losses (48) (315)

Expenses relating to the purchase and sale of investments (5) (4)

Forward currency contracts gains 2,927 2,234

Non-derivative securities losses (2,808) (508)

Net capital (losses)/gains (600) 1,000

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 10 –

Interest on debt securities 6,466 4,869

Interest on derivatives (48) (53)

Total revenue 6,428 4,816

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 442 309

Registration fees 38 15

480 324

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 12 9

Safe custody fee 11 9

23 18

Other expenses:

Audit fee* 10 11

Printing & postage expenses 1 1

Statement fees 5 2

16 14

Total expenses 519 356

* The audit fee was £8,241 (2014: £8,200) net of VAT.

154 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Corporation tax – – Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 5,909 4,451 Corporation tax at 20% 1,182 890 Effects of: Tax deductible on interest distributions (1,182) (890) (1,182) (890) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil).

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distribution for the three months ended 15 January 1,340 1,056 Gross interest distribution for the three months ended 15 April 1,371 1,084 Gross interest distribution for the three months ended 15 July 1,498 1,168 Gross interest distribution for the three months ended 15 October 1,835 1,289 6,044 4,597 Add: Revenue deducted on cancellation of shares 97 20 Deduct: Revenue received on issue of shares (231) (165) Finance costs: Distributions 5,910 4,452 Finance costs: Interest on bank overdrafts – 9 Total finance costs 5,910 4,461 Reconciliation of net distribution for the year to net revenue after taxation Distributions for the year 5,910 4,452 Equalisation on conversions (1) (1) Net revenue after taxation 5,909 4,451 Details of the distributions per share are set out in the distribution tables on pages 159 and 160.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 2,286 1,608 Amounts receivable on issue of shares 308 719 Sales awaiting settlement 478 1,629 Total debtors 3,072 3,956

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 37 191 Cash and bank balances 4,660 3,127 Total cash and bank balances 4,697 3,318

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 91 66 Amounts payable for cancellation of shares 1,793 29 Income tax withheld on distributions 645 248 Purchases awaiting settlement 1,587 964 Total creditors 4,116 1,307

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £67,000 (2014: £48,000) and registration fees was £7,000 (2014: £3,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £3,266,000 (2014: £3,036,000). The amount outstanding at the year end was £915,000 (2014: £793,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) – 517,497 517,497 ACD and related parties (share class 2 Income shares) 2,763,658 2,015,388 748,270 ACD and related parties (share class 3 Accumulation shares) 33,504,009 (276,512) 33,780,521 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

156 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.50% Class 3: 0.30% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 146. The distributions per share class are given in the distribution tables on pages 159 and 160. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.07% (2014: 0.50%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Net foreign currency assets

Monetary exposure Non monetary exposure Total £000 £000 £000

Currency 15.10.15 15.10.14 15.10.15 15.10.14 15.10.15 15.10.14 Argentine Peso 13 13 (11) (12) 2 1 Australian Dollar – 7 – 5 – 12 Euro 1,513 (26) (1,461) (456) 52 (482) South African Rand 26 31 (14) (8) 12 23 US Dollar 48 91 (26) (111) 22 (20)

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 10,753 60,126 54,246 125,125 Argentine Peso 13 – – 13 Euro 1,287 38,250 786 40,323 South African Rand – 467 26 493 US Dollar 253 11,766 624 12,643 Financial Liabilities Sterling – – (3,885) (3,885) Argentine Peso – – (11) (11) Euro – – (40,271) (40,271) South African Rand – – (481) (481) US Dollar – – (12,621) (12,621) Total 12,306 110,609 (1,587) 121,328

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 157 Aviva Investors High Yield Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 9,576 43,220 79,334 132,130 Argentine Peso 14 – 13 27 Australian Dollar 1,309 – 1,307 2,616 Euro 5,764 23,862 30,801 60,427 South African Rand – 547 582 1,129 US Dollar 761 5,469 6,686 12,916 Financial Liabilities Sterling – – (39,303) (39,303) Argentine Peso – – (26) (26) Australian Dollar – – (2,604) (2,604) Euro – – (60,909) (60,909) South African Rand – – (1,106) (1,106) US Dollar – – (12,936) (12,936) Total 17,424 73,098 1,839 92,361 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR. The floating rate on Euro FRNs is linked to LIBOR. The floating rate on US Dollar FRNs is linked to LIBOR.

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 12.57 6.93 12 10 Euro 11.11 7.32 7 6 South African Rand 10.62 10.35 13 14 US Dollar 13.98 12.46 31 34 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £81,627,000 (2014: £79,418,000) and the total sales amounted to £47,711,000 (2014: £51,967,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

158 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors High Yield Bond Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the three months ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.9464 0.1893 0.7571 – 0.7571 0.6866 Group 2 0.4081 0.0816 0.3265 0.4306 0.7571 0.6866 Share Class 2 Group 1 1.5716 0.3143 1.2573 – 1.2573 1.1514 Group 2 0.6684 0.1337 0.5347 0.7226 1.2573 1.1514

Final distribution Final distribution Gross Income Net payable paid Accumulation shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 3 Group 1 3.2828 0.6566 2.6262 – 2.6262 2.3126 Group 2 1.6023 0.3205 1.2818 1.3444 2.6262 2.3126

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the three months ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 0.7849 0.1570 0.6279 – 0.6279 0.6704 Group 2 0.3248 0.0650 0.2598 0.3681 0.6279 0.6704 Share Class 2 Group 1 1.3265 0.2653 1.0612 – 1.0612 1.1269 Group 2 0.5663 0.1133 0.4530 0.6082 1.0612 1.1269

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 3 Group 1 2.7671 0.5534 2.2137 – 2.2137 2.2406 Group 2 1.5033 0.3007 1.2026 1.0111 2.2137 2.2406

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 159 Aviva Investors High Yield Bond Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the three months ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.7960 0.1592 0.6368 – 0.6368 0.6864 Group 2 0.3776 0.0755 0.3021 0.3347 0.6368 0.6864 Share Class 2 Group 1 1.3439 0.2688 1.0751 – 1.0751 1.1467 Group 2 0.5869 0.1174 0.4695 0.6056 1.0751 1.1467

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 3 Group 1 2.7694 0.5539 2.2155 – 2.2155 2.2483 Group 2 1.4056 0.2811 1.1245 1.0910 2.2155 2.2483

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the three months ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.8498 0.1700 0.6798 – 0.6798 0.7746 Group 2 0.3980 0.0796 0.3184 0.3614 0.6798 0.7746 Share Class 2 Group 1 1.4264 0.2853 1.1411 – 1.1411 1.2820 Group 2 0.6801 0.1360 0.5441 0.5970 1.1411 1.2820 Share Class 3 Group 1 N/A N/A N/A N/A N/A 1.8043 Group 2 N/A N/A N/A N/A N/A 1.8043

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 3 Group 1 2.8983 0.5797 2.3186 – 2.3186 2.4699 Group 2 1.8335 0.3667 1.4668 0.8518 2.3186 2.4699

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

160 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

AVIVA INVESTORS HIGHER INCOME PLUS FUND

INVESTMENT OBJECTIVE Our outlook for corporate bonds is cautiously optimistic. Valuations appear attractive as credit spreads are at their widest A high level of investment income. point in more than two years, which suggests there is some room for them to narrow over the near-term. It is likely that monetary policy will remain supportive in the short to medium- INVESTMENT POLICY term, and with the Bank of Japan and European Central Bank potentially extending current monetary easing, this should Diversified investment in fixed interest securities issued by alleviate concerns over economic growth, which should further corporates, governments and supranational institutions. support credit markets. Nevertheless, there are several material Investment is principally in Sterling denominated securities but uncertainties clouding markets. Questions about the growth the Fund may also invest in global securities issued in a variety of outlook for emerging markets, and particularly China, following currencies. recent capital outflows have spooked investors. Furthermore, The Fund may invest in any of the following financial instruments markets are treading in uncharted waters following years of in order to achieve its investment objective: transferable securities, unprecedented monetary stimulus. As such our focus remains on money market instruments, units in collective investment managing company-specific risks, particularly among issuers with schemes, deposits and derivatives and forward transactions. exposure to emerging markets or commodities, and to those that are candidates for taking more debt onto their balance sheets. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income FUND MANAGER’S REPORT reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Over the 12 months ended 15 October 2015, the Aviva Investors Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should Higher Income Plus Fund (share class A) delivered a total return of not be viewed as a recommendation to invest nor buy or sell any securities. Past performance 1.69 per cent net of fees. The Fund’s peer group, the Investment is not a guide to the future. The value of an investment and any income from it can go down as Association’s Sterling Strategic Bond sector generated an average well as up. Investors may not get back the original amount invested. return of 1.26 per cent.

Sterling corporate bonds posted positive returns, underpinned Material Portfolio Changes by a sharp rise in underlying UK government debt as plummeting oil prices helped push UK inflation to its lowest on record, and Purchases Sales as the the European Central Bank began ‘quantitative easing’. UK Treasury 4.50% 07/12/2042 UK Treasury 4.50% 07/12/2042 Demand for gilts was also boosted by global market turbulence brought on by a prolonged commodity slump, slowing growth UK Treasury 4.75% 07/12/2038 UK Treasury 5.00% 07/03/2025 in China and an exodus from emerging-market assets which Imperial Tobacco Finance plc 4.25% parked a flight to ‘safe-haven’ assets. However, credit spreads – 21/07/2025 CPUK Finance Ltd. 11.63% 28/02/2018 the difference between government and corporate bond yields Bank of Scotland Capital Funding LP, FRN 6.06% – widened as investors grew more concerned about companies’ TOTAL SA, FRN 2.63% Perpetual Perpetual ability to repay debt amid a surge in global bond issuance. The Tesco Property Finance 3 plc 5.74% Goldman Sachs Group, Inc. (The), 6.13% uncertainty generated by the prolonged negotiations between 13/04/2040 14/05/2017 Greece and its creditors also weighed on credit markets. Royal Bank of Scotland NV, FRN 3.42% Fund outperformance versus its peer group was partly due to Apple, Inc. 3.45% 09/02/2045 17/05/2018 the Fund’s defensive positioning which helped protect returns at times of high market turmoil. Stakes in selective financial services Lloyds Bank plc, FRN 10.75% 16/12/2021 AA Bond Co. Ltd. 9.50% 31/07/2019 companies like Barclays Bank also contributed to performance. New Look Secured Issuer plc 6.50% A position in Imperial Tobacco served the Fund well as rumours 01/07/2022 Telecom Italia SpA 6.38% 24/06/2019 of a takeover by the higher-rated Japan Tobacco boosted prices. Enel Finance International NV 5.75% Bonds issued by Veolia – a French electricity provider – benefitted 14/09/2040 SSE plc, FRN 5.45% Perpetual from the sharp rally in euro zone government bonds. Within the Telecom Italia SpA 5.88% 19/05/2023 RCI Banque SA 3.25% 25/04/2018 high-yield segment of the portfolio, our holdings of Keepmoat, a UK public and private homebuilder and property services provider, especially aided outperformance as the companies’ bonds rallied sharply after it was awarded two contracts to build more than 100 new homes in Nottingham. A stake in Yioula, a Greek glass manufacturer, also did well as the company benefitted from resolution of the standoff between Greece and its creditors. High-yield, dollar-denominated securities issued by investment-grade rated Italian energy giant Enel also aided returns while positions in Telecom Italia benefitted from a sharp rally in ‘peripheral’ euro zone government bonds. A stake in Odeon bonds also appreciated after the cinema operator’s owners put the company up for sale. Holdings in luxury car maker Jaguar Land Rover also performed strongly throughout the reporting period. The main detractor from performance was a position in debt issued by Tesco as an accounting scandal and an intense price war between supermarkets caused the company’s bonds to sell off.

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AVIVA INVESTORS HIGHER INCOME PLUS FUND (CONTINUED)

Synthetic Risk and Reward Indicator Lower risk Higher risk

Typically lower rewards Typically higher rewards 1 2 3 4 5 6 7 The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk number has been based on the historic volatility of the asset classes appropriate to the Fund. – This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the Fund. – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. – Bond values are affected by changes in interest rates, and the bond issuer’s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. – The value of investments will be affected by changes in exchange rates. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

162 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Ongoing Charges Figure* Net asset value* Shares Pence per Share class 15.10.15 15.10.14 Share class As at £000 in issue share Class 1 1.00% 1.00% Class 1 15.10.13 277,599 576,608,341 48.14 Class 2 0.63% 0.63% 15.10.14 270,828 539,180,700 50.23 Class 3 0.33% 0.33% 15.10.15 246,880 498,979,977 49.48 Class A 1.38% 1.38% Class 2 15.10.13 3,810 5,257,038 72.47 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges 15.10.14 9,557 12,640,917 75.60 to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 15.10.15 24,502 32,899,506 74.47 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. Class 3 15.10.13 61,975 62,499,707 99.16

15.10.14 59,134 57,159,860 103.45

15.10.15 54,273 53,257,133 101.91 Revenue Record – Income Shares

Class A 15.10.13 31,648 58,814,373 53.81 The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment 15.10.14 32,184 57,327,544 56.14 made on 4 January 2010. 15.10.15 29,527 53,393,926 55.30 Calendar Net revenue Per £1,000 * Valued at bid market prices. Share class year per share (p) invested (£) Class 1 2010 2.0822 48.92

Share Price Record – Income Shares 2011 1.7579 41.30

Calendar Highest price* Lowest price* 2012 1.9303 45.35 Share class year (p) (p) 2013 1.9225 45.17 Class 1 2010 45.97 42.56 2014 1.7536 41.20 2011 45.50 41.00 2015* 1.7610 41.37 2012 48.21 42.38 Class 2 2010 3.2974 51.58 2013 49.92 47.01 2011 2.9081 45.49 2014 50.98 48.73 2012 3.0790 48.16 2015** 52.44 49.53 2013 3.0871 48.29 Class 2 2010 69.13 63.93 2014 2.8781 45.02 2011 68.52 61.71 2015* 2.8432 44.47 2012 72.56 63.75 Class 3 2010 4.6664 53.34 2013 75.04 70.72 2011 4.1987 47.99 2014 76.69 73.37 2012 4.4315 50.65 2015** 78.89 74.43 2013 4.4658 51.04 Class 3 2010 94.61 87.49 2014 4.1827 47.81 2011 93.78 84.46 2015* 4.1209 47.10 2012 99.30 87.24 Class A 2010 2.2160 46.61 2013 102.69 96.78 2011 1.8135 38.15 2014 104.95 100.41 2012 2.0050 42.18 2015** 107.98 101.86 2013 1.9835 41.73 Class A 2010 51.38 47.54 2014 1.7949 37.76 2011 50.81 45.78 2015* 1.8050 37.97 2012 53.88 47.37 * Up to 14 November 2015 (the final distribution payment date). 2013 55.79 52.54

2014 56.97 54.46

2015** 58.57 55.32

* Valued at mid market prices. ** Up to 15 October 2015.

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PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 8.16% (8.21%) Luxembourg 8.16% (8.21%) Aviva Investors – Emerging Markets Bond Fund Class Zqh, Income shares◊ EUR 40,577 28,966 8.16 28,966 8.16 Collective Investment Schemes total 28,966 8.16 Equities 0.35% (0.31%) Ireland 0.35% (0.31%) Independent News & Media plc EUR 10,595,433 1,260 0.35 1,260 0.35 Equities total 1,260 0.35 Government Bonds 3.15% (1.54%) United Kingdom 3.15% (1.54%) UK Treasury 4.75% 07/12/2038 GBP 5,000,000 7,006 1.97 UK Treasury 4.50% 07/12/2042 GBP 3,000,000 4,168 1.18 11,174 3.15 Government Bonds total 11,174 3.15 Corporate Bonds 84.59% (87.13%) Australia 0.60% (0.00%) Goodman Australia Finance Pty. Ltd., REIT 9.75% 16/07/2018 GBP 1,800,000 2,143 0.60 2,143 0.60 Canada 0.66% (0.00%) Valeant Pharmaceuticals International, Inc. 4.50% 15/05/2023 EUR 3,500,000 2,339 0.66 2,339 0.66 Cayman Islands 0.00% (0.00%) ERC Ireland Finance Ltd., FRN 6.16% 15/08/2016§ EUR 2,250,000 – – – – Finland 0.00% (0.12%) France 10.02% (9.88%) AXA SA, FRN 5.63% 16/01/2054 GBP 4,000,000 4,011 1.13 Credit Agricole SA, FRN 7.50% Perpetual GBP 3,000,000 2,911 0.82 Electricite de France SA 6.13% 02/06/2034 GBP 3,800,000 4,618 1.30 Electricite de France SA, FRN 6.00% Perpetual GBP 2,400,000 2,392 0.67 Horizon Holdings I SASU 7.25% 01/08/2023 EUR 2,258,000 1,700 0.48 Lafarge SA 10.00% 30/05/2017 GBP 7,500,000 8,356 2.35 Orange SA, FRN 5.88% Perpetual GBP 3,800,000 3,852 1.09 TOTAL SA, FRN 2.63% Perpetual EUR 5,600,000 3,706 1.04 Veolia Environnement SA, FRN 4.85% Perpetual GBP 4,000,000 4,030 1.14 35,576 10.02 Germany 0.70% (1.43%) Pfleiderer GmbH 7.88% 01/08/2019 EUR 3,250,000 2,473 0.70 2,473 0.70 Italy 2.38% (3.77%) Enel SpA, FRN 8.75% 24/09/2073 USD 7,000,000 5,243 1.47 Telecom Italia SpA 5.88% 19/05/2023 GBP 3,000,000 3,220 0.91 8,463 2.38 Jersey 3.57% (5.91%) AA Bond Co. Ltd. 5.50% 31/07/2043 GBP 2,659,000 2,510 0.71 CPUK Finance Ltd. 7.00% 28/02/2042 GBP 3,000,000 3,018 0.85 Gatwick Funding Ltd. 5.25% 23/01/2026 GBP 3,000,000 3,433 0.96 Heathrow Funding Ltd. 7.13% 14/02/2024 GBP 3,000,000 3,720 1.05 12,681 3.57

164 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Luxembourg 2.12% (4.55%) Altice Luxembourg SA 7.25% 15/05/2022 EUR 6,000,000 4,255 1.20 Galapagos Holding SA 7.00% 15/06/2022 EUR 2,450,000 1,635 0.46 LSF9 Balta Issuer SA 7.75% 15/09/2022 EUR 2,199,000 1,646 0.46 7,536 2.12 Mexico 1.70% (1.67%) America Movil SAB de CV 4.38% 07/08/2041 GBP 4,800,000 4,772 1.35 America Movil SAB de CV, FRN 6.37% 06/09/2073 GBP 1,200,000 1,249 0.35 6,021 1.70 Netherlands 8.02% (7.62%) Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.00% 19/09/2022 GBP 3,300,000 3,569 1.01 Enel Finance International NV 5.75% 14/09/2040 GBP 2,900,000 3,385 0.95 ING Bank NV, FRN 6.88% 29/05/2023 GBP 3,000,000 3,288 0.93 Koninklijke KPN NV, FRN 6.88% 14/03/2073 GBP 2,500,000 2,584 0.73 OI European Group BV 6.75% 15/09/2020 EUR 3,000,000 2,538 0.71 Petrobras Global Finance BV 5.38% 01/10/2029 GBP 2,500,000 1,611 0.45 Samvardhana Motherson Automotive Systems Group BV 4.13% 15/07/2021 EUR 1,578,000 1,070 0.30 Siemens Financieringsmaatschappij NV 3.75% 10/09/2042 GBP 4,300,000 4,275 1.20 Siemens Financieringsmaatschappij NV, FRN 6.12% 14/09/2066 GBP 4,000,000 4,108 1.16 Telefonica Europe BV, FRN 6.75% Perpetual GBP 2,000,000 2,062 0.58 28,490 8.02 Spain 0.00% (0.63%) United Kingdom 46.65% (43.02%) Anglian Water Osprey Financing plc 7.00% 31/01/2018 GBP 4,400,000 4,756 1.34 Aviva plc, FRN 6.88% 20/05/2058† GBP 4,000,000 4,406 1.24 Barclays Bank plc 10.00% 21/05/2021 GBP 3,500,000 4,519 1.27 BHP Billiton Finance Ltd. 6.63% 22/10/2022 GBP 2,500,000 2,547 0.72 Debenhams plc 5.25% 15/07/2021 GBP 3,000,000 2,960 0.83 Eastern Power Networks plc 4.75% 30/09/2021 GBP 3,000,000 3,362 0.95 Eversholt Funding plc 6.70% 22/02/2035 GBP 3,000,000 3,900 1.10 F&C Finance plc 9.00% 20/12/2016 GBP 2,700,000 2,892 0.81 First Hydro Finance plc 9.00% 31/07/2021 GBP 4,000,000 5,285 1.49 Firstgroup plc 6.13% 18/01/2019 GBP 4,000,000 4,381 1.23 GlaxoSmithKline Capital plc 4.25% 18/12/2045 GBP 2,350,000 2,508 0.71 HSBC Holdings plc 6.75% 11/09/2028 GBP 4,000,000 4,807 1.35 Imperial Tobacco Finance plc 9.00% 17/02/2022 GBP 4,000,000 5,323 1.50 Imperial Tobacco Finance plc 4.25% 21/07/2025 USD 4,493,000 3,002 0.85 Infinis plc 7.00% 15/02/2019 GBP 2,000,000 2,023 0.57 Investec Bank plc 9.63% 17/02/2022 GBP 4,000,000 4,780 1.35 Jaguar Land Rover Automotive plc 5.00% 15/02/2022 GBP 4,000,000 4,052 1.14 Juturna European Loan Conduit No .16 plc 5.06% 10/08/2033 GBP 3,682,950 4,268 1.20 Kelda Finance No. 3 plc 5.75% 17/02/2020 GBP 2,800,000 2,924 0.82 Kensington Group Ltd., FRN 7.28% 21/12/2015 GBP 2,900,000 2,914 0.82 Keystone Financing plc 9.50% 15/10/2019 GBP 3,000,000 3,149 0.89 Legal & General Group plc, FRN 10.00% 23/07/2041 GBP 4,000,000 5,204 1.47 Lloyds Bank plc, FRN 10.75% 16/12/2021 GBP 3,200,000 3,502 0.99 Matalan Finance plc 6.88% 01/06/2019 GBP 3,000,000 2,503 0.70 Mitchells & Butlers Finance plc, Series C1 6.47% 15/09/2032 GBP 4,000,000 4,927 1.39 New Look Secured Issuer plc 6.50% 01/07/2022 GBP 3,500,000 3,411 0.96 Newcastle Building Society, FRN 3.85% 23/12/2019 GBP 4,140,000 3,726 1.05 NWEN Finance plc 5.88% 21/06/2021 GBP 2,740,000 2,854 0.80 Odeon & UCI Finco plc 9.00% 01/08/2018 GBP 2,000,000 2,071 0.58 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 5,250,000 5,198 1.46 Principality Building Society, FRN 1.59% 08/07/2016 GBP 2,330,000 2,260 0.64 Priory Group No. 3 plc 7.00% 15/02/2018 GBP 1,671,314 1,718 0.48 Priory Group No. 3 plc 8.88% 15/02/2019 GBP 1,500,000 1,549 0.44 Prudential plc, FRN 11.37% 29/05/2039 GBP 4,000,000 5,045 1.42 RSA Insurance Group plc, FRN 9.37% 20/05/2039 GBP 5,000,000 5,855 1.65

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PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 46.65% (43.02%) (continued) Segro plc, REIT 6.75% 23/11/2021 GBP 4,000,000 4,888 1.38 Spirit Issuer plc, FRN 5.47% 28/12/2034 GBP 4,000,000 3,989 1.12 Standard Chartered plc 4.38% 18/01/2038 GBP 2,500,000 2,396 0.67 Tesco Property Finance 3 plc 5.74% 13/04/2040 GBP 3,835,180 3,491 0.98 Thames Water Kemble Finance plc 7.75% 01/04/2019 GBP 4,000,000 4,373 1.23 Travis Perkins plc 4.38% 15/09/2021 GBP 2,925,000 2,965 0.83 Tullett Prebon Group Holdings plc 7.04% 06/07/2016 GBP 2,294,000 2,331 0.66 Virgin Media Secured Finance plc 5.50% 15/01/2025 GBP 4,050,000 3,928 1.11 Western Power Distribution West Midlands plc 5.75% 16/04/2032 GBP 3,450,000 4,277 1.20 William Hill plc 4.25% 05/06/2020 GBP 4,500,000 4,474 1.26 165,693 46.65 United States of America 8.17% (8.53%) Ahold Finance USA LLC 6.50% 14/03/2017 GBP 4,808,000 5,112 1.44 Apple, Inc. 3.45% 09/02/2045 USD 2,329,000 1,299 0.36 AT&T, Inc. 4.25% 01/06/2043 GBP 5,400,000 4,976 1.40 Chemours Co. (The) 6.13% 15/05/2023 EUR 3,667,000 1,951 0.55 Citigroup, Inc. 4.50% 03/03/2031 GBP 4,000,000 4,108 1.16 DIRECTV Holdings LLC 4.38% 14/09/2029 GBP 3,750,000 3,827 1.08 Frontier Communications Corp. 8.88% 15/09/2020 USD 1,000,000 655 0.18 JPMorgan Chase & Co. 3.50% 18/12/2026 GBP 3,000,000 3,089 0.87 Verizon Communications, Inc. 4.07% 18/06/2024 GBP 3,765,000 4,003 1.13 29,020 8.17 Corporate Bonds total 300,435 84.59 Swaps (0.01)% (0.00%) Credit Default Swap Barclays Bank plc Buy France Government Bond OAT 4.25% 25/04/2019 – 20/12/2016 USD 13,700,000 (23) (0.01) Swaps total (23) (0.01) Forward Currency Contracts 0.02% ((0.10)%) Buy GBP 54,080,073 sell EUR 73,149,000 dated 14/01/2016 (33) (0.01) Buy GBP 12,281,555 sell USD 18,862,000 dated 14/01/2016 96 0.03 Forward Currency Contracts total 63 0.02 Futures (0.02)% (0.00%) US 10 Year Note 21/12/2015 USD (44) (46) (0.02) US Ultra Bond 21/12/2015 USD (13) (8) – Futures total (54) (0.02) Liquidity Stocks 1.74% (0.00%) Aviva Investors Sterling Liquidity Fund◊ GBP 6,200,000 6,200 1.74 Liquidity Stocks total 6,200 1.74

Investment assets 348,021 97.98 Net other assets 7,161 2.02 Net assets 355,182 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. § Security is currently in default. † A related party to the Fund. ◊ Investments managed and advised by a related party of the Fund.

166 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Bond Rating

Market Value £000 % of Net Assets Bonds – Investment grade* 162,283 45.71 – Below investment grade 133,382 37.54 – Unrated 15,944 4.49 Debt securities total 311,609 87.74

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.15 £000 £000 £000 £000

Barclays 8,846 – – 8,846

Citibank – (33) – (33)

JPMorgan – – (5,022) (5,022)

Société Générale – 96 – 96

Total 8,846 63 (5,022) 3,527

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.14 £000 £000 £000 £000

Barclays 8,606 1 – 8,607

Goldman Sachs – 100 – 100

JPMorgan – 2 – 2

Morgan Stanley – 1 – 1

Natwest – (14) – (14)

Nomura International – (70) – (70)

Royal Bank of Canada – 29 – 29

UBS – (404) – (404)

Total 8,606 (355) – 8,251

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 167 Aviva Investors Higher Income Plus Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital (losses)/gains 2 (5,322) 15,962

Revenue 3 21,033 20,462

Expenses 4 (3,396) (3,455)

Net revenue before taxation 17,637 17,007

Taxation 5 – –

Net revenue after taxation 17,637 17,007

Total return before distributions 12,315 32,969

Finance costs: Distributions 6 (17,631) (17,007)

Change in net assets attributable to shareholders from investment activities (5,316) 15,962

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 371,703 375,032

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 19,488 12,441

Amounts payable on cancellation of shares (30,696) (31,733)

(11,208) (19,292)

Change in net assets attributable to shareholders from investment activities (see above) (5,316) 15,962

Unclaimed distribution monies 3 1

Closing net assets attributable to shareholders 355,182 371,703

168 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 348,131 362,196

Debtors 7 8,405 13,746

Cash and bank balances 8 5,648 1,924

Total other assets 14,053 15,670

Total assets 362,184 377,866

LIABILITIES

Investment liabilities (110) (1,309)

Creditors 9 (4,966) (3,353)

Distribution payable on income shares (1,926) (1,501)

Total other liabilities (6,892) (4,854)

Total liabilities (7,002) (6,163)

Net assets attributable to shareholders 355,182 371,703

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NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital (losses)/gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital (losses)/gains on investments during the year comprise:

Currency losses (1,174) (1,241)

Derivative contracts gains/(losses) 437 (34)

Expenses relating to the purchase and sale of investments (2) (1)

Forward currency contracts gains 6,850 6,844

Non-derivative securities (losses)/gains (11,433) 10,394

Net capital (losses)/gains (5,322) 15,962

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 27 (14)

Interest on debt securities 19,388 18,796

Interest on derivatives (23) (20)

Revenue from offshore funds 1,641 1,700

Total revenue 21,033 20,462

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 3,315 3,389

Registration fees 50 38

3,365 3,427

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 37 37

Safe custody fee 39 44

76 81

Other expenses:

Audit fee* 11 10

Printing & postage expenses 5 5

Statement fees 15 13

31 28

Total expenses 3,472 3,536

Less those expenses rebated by the ACD (76) (81)

Net expenses 3,396 3,455

* The audit fee was £8,550 (2014: £8,508) net of VAT.

170 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 17,637 17,007 Corporation tax at 20% 3,527 3,401 Effects of: Tax deductible on interest distributions (3,527) (3,401) (3,527) (3,401) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil).

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distributions for the six months ended 15 April 8,102 8,250 Gross interest distributions for the five months ended 15 September 7,210 6,848 Gross interest distribution for the one month ended 15 October 2,293 1,877 17,605 16,975 Add: Revenue deducted on cancellation of shares 72 62 Deduct: Revenue received on issue of shares (46) (30) Finance costs: Distributions 17,631 17,007 Reconciliation of net distribution for the year to net revenue after taxation Distributions for the year 17,631 17,007 Equalisation on conversions 6 – Net revenue after taxation 17,637 17,007 Details of the distributions per share are set out in the distribution tables on pages 175 to 181.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 6,683 6,919 Amounts receivable on issue of shares 516 671 Sales awaiting settlement 1,206 6,156 Total debtors 8,405 13,746

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 181 – Cash and bank balances 5,467 1,924 Total cash and bank balances 5,648 1,924

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 458 472 Amounts payable for cancellation of shares 630 354 Income tax payable 993 556 Purchases awaiting settlement 2,885 1,971 Total creditors 4,966 3,353

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £417,000 (2014: £434,000) and registration fees was £7,000 (2014: £5,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £2,637,000 (2014: £2,590,000). The amount outstanding at the year end was £480,000 (2014: £261,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 417,351 40,397 376,954 ACD and related parties (share class 2 Income shares) 2,858,161 2,491,124 367,037 ACD and related parties (share class 3 Income shares) 53,257,133 (3,902,727) 57,159,860 ACD and related parties (share class A Income shares) 5,761,648 (1,001,030) 6,762,678 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

172 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has four share classes: Classes 1 and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.50% Class 3: 0.30% Class A: 1.25% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 163. The distributions per share class are given in the distribution tables on pages 175 to 180. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.09% (2014: 0.10%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Net foreign currency assets

Monetary exposure Non monetary exposure Total £000 £000 £000

Currency 15.10.15 15.10.14 15.10.15 15.10.14 15.10.15 15.10.14 Australian Dollar – 24 – 16 – 40 Euro 898 1,242 (576) (1,611) 322 (369) Swiss Franc – 15 – – – 15 US Dollar 2,063 103 (2,063) (168) – (65)

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 32,836 255,796 73,120 361,752 Euro – 23,312 31,090 54,402 US Dollar 1,208 10,199 951 12,358 Financial Liabilities Sterling – – (6,892) (6,892) Euro – – (54,080) (54,080) US Dollar – – (12,358) (12,358) Total 34,044 289,307 31,831 355,182

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 28,208 255,825 176,357 460,390 Australian Dollar 4,187 – 4,185 8,372 Euro 1,341 34,032 104,712 140,085 Swiss Franc 15 – – 15 US Dollar – 7,887 8,475 16,362 Financial Liabilities Sterling – – (88,308) (88,308) Australian Dollar – – (8,332) (8,332) Euro – – (140,454) (140,454) US Dollar – – (16,427) (16,427) Total 33,751 297,744 40,208 371,703 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR or its overseas equivalent.

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 11.07 5.06 14 14 Euro 10.41 7.25 6 6 US Dollar 6.05 7.55 37 59 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £116,557,000 (2014: £182,908,000) and the total sales amounted to £124,144,000 (2014: £199,594,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

174 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the month ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 14 November 2015 14 November 2014 Share Class 1 Group 1 0.3575 0.0715 0.2860 – 0.2860 0.2038 Group 2 0.0284 0.0057 0.0227 0.2633 0.2860 0.2038 Share Class 2 Group 1 0.4006 0.0801 0.3205 – 0.3205 0.2983 Group 2 0.2401 0.0480 0.1921 0.1284 0.3205 0.2983 Share Class 3 Group 1 0.5735 0.1147 0.4588 – 0.4588 0.4285 Group 2 0.0885 0.0177 0.0708 0.3880 0.4588 0.4285 Share Class A Group 1 0.3500 0.0700 0.2800 – 0.2800 0.2090 Group 2 0.1043 0.0209 0.0834 0.1966 0.2800 0.2090

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 September 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 September 2015.

Interim distribution paid in pence per share for the month ended 15 September 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 October 2015 14 October 2014 Share Class 1 Group 1 0.1938 0.0388 0.1550 – 0.1550 0.1450 Group 2 0.0000 0.0000 0.0000 0.1550 0.1550 0.1450 Share Class 2 Group 1 0.3066 0.0613 0.2453 – 0.2453 0.2199 Group 2 0.1550 0.0310 0.1240 0.1213 0.2453 0.2199 Share Class 3 Group 1 0.4469 0.0894 0.3575 – 0.3575 0.3221 Group 2 0.0450 0.0090 0.0360 0.3215 0.3575 0.3221 Share Class A Group 1 0.2000 0.0400 0.1600 – 0.1600 0.1480 Group 2 0.0000 0.0000 0.0000 0.1600 0.1600 0.1480

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 August 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 August 2015.

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DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 August 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 September 2015 14 September 2014 Share Class 1 Group 1 0.1938 0.0388 0.1550 – 0.1550 0.1450 Group 2 0.0000 0.0000 0.0000 0.1550 0.1550 0.1450 Share Class 2 Group 1 0.3600 0.0720 0.2880 – 0.2880 0.2158 Group 2 0.1741 0.0348 0.1393 0.1487 0.2880 0.2158 Share Class 3 Group 1 0.5181 0.1036 0.4145 – 0.4145 0.3160 Group 2 0.1631 0.0326 0.1305 0.2840 0.4145 0.3160 Share Class A Group 1 0.2000 0.0400 0.1600 – 0.1600 0.1480 Group 2 0.0078 0.0015 0.0062 0.1538 0.1600 0.1480

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the month ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 August 2015 14 August 2014 Share Class 1 Group 1 0.1938 0.0388 0.1550 – 0.1550 0.1450 Group 2 0.0000 0.0000 0.0000 0.1550 0.1550 0.1450 Share Class 2 Group 1 0.3378 0.0676 0.2702 – 0.2702 0.2887 Group 2 0.1864 0.0373 0.1491 0.1211 0.2702 0.2887 Share Class 3 Group 1 0.4878 0.0976 0.3902 – 0.3902 0.4168 Group 2 0.0611 0.0122 0.0489 0.3413 0.3902 0.4168 Share Class A Group 1 0.2000 0.0400 0.1600 – 0.1600 0.1480 Group 2 0.0314 0.0063 0.0251 0.1349 0.1600 0.1480

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 June 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 June 2015.

176 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 June 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 July 2015 14 July 2014 Share Class 1 Group 1 0.1938 0.0388 0.1550 – 0.1550 0.1450 Group 2 0.0000 0.0000 0.0000 0.1550 0.1550 0.1450 Share Class 2 Group 1 0.2893 0.0579 0.2314 – 0.2314 0.2006 Group 2 0.1239 0.0248 0.0991 0.1323 0.2314 0.2006 Share Class 3 Group 1 0.4226 0.0845 0.3381 – 0.3381 0.2943 Group 2 0.1131 0.0226 0.0905 0.2476 0.3381 0.2943 Share Class A Group 1 0.2000 0.0400 0.1600 – 0.1600 0.1480 Group 2 0.0189 0.0038 0.0151 0.1449 0.1600 0.1480

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 May 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 May 2015.

Interim distribution paid in pence per share for the month ended 15 May 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 June 2015 14 June 2014 Share Class 1 Group 1 0.1938 0.0388 0.1550 – 0.1550 0.1450 Group 2 0.0000 0.0000 0.0000 0.1550 0.1550 0.1450 Share Class 2 Group 1 0.2891 0.0578 0.2313 – 0.2313 0.2140 Group 2 0.1435 0.0287 0.1148 0.1165 0.2313 0.2140 Share Class 3 Group 1 0.4220 0.0844 0.3376 – 0.3376 0.3130 Group 2 0.0913 0.0183 0.0730 0.2646 0.3376 0.3130 Share Class A Group 1 0.2000 0.0400 0.1600 – 0.1600 0.1480 Group 2 0.0269 0.0054 0.0215 0.1385 0.1600 0.1480

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 177 Aviva Investors Higher Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 May 2015 14 May 2014 Share Class 1 Group 1 0.1875 0.0375 0.1500 – 0.1500 0.1350 Group 2 0.0048 0.0010 0.0038 0.1462 0.1500 0.1350 Share Class 2 Group 1 0.3983 0.0797 0.3186 – 0.3186 0.2922 Group 2 0.1495 0.0299 0.1196 0.1990 0.3186 0.2922 Share Class 3 Group 1 0.5735 0.1147 0.4588 – 0.4588 0.4213 Group 2 0.1408 0.0282 0.1126 0.3462 0.4588 0.4213 Share Class A Group 1 0.1938 0.0388 0.1550 – 0.1550 0.1380 Group 2 0.0000 0.0000 0.0000 0.1550 0.1550 0.1380

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 March 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 March 2015.

Interim distribution paid in pence per share for the month ended 15 March 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 April 2015 14 April 2014 Share Class 1 Group 1 0.1750 0.0350 0.1400 – 0.1400 0.1300 Group 2 0.0650 0.0130 0.0520 0.0880 0.1400 0.1300 Share Class 2 Group 1 0.2540 0.0508 0.2032 – 0.2032 0.2080 Group 2 0.0568 0.0114 0.0454 0.1578 0.2032 0.2080 Share Class 3 Group 1 0.3720 0.0744 0.2976 – 0.2976 0.3034 Group 2 0.0788 0.0158 0.0630 0.2346 0.2976 0.3034 Share Class A Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1330 Group 2 0.0525 0.0105 0.0420 0.1030 0.1450 0.1330

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 February 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 February 2015.

178 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Higher Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 February 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 March 2015 14 March 2014 Share Class 1 Group 1 0.1750 0.0350 0.1400 – 0.1400 0.1475 Group 2 0.0000 0.0000 0.0000 0.1400 0.1400 0.1475 Share Class 2 Group 1 0.2530 0.0506 0.2024 – 0.2024 0.1993 Group 2 0.1191 0.0238 0.0953 0.1071 0.2024 0.1993 Share Class 3 Group 1 0.3713 0.0743 0.2970 – 0.2970 0.2925 Group 2 0.1113 0.0223 0.0890 0.2080 0.2970 0.2925 Share Class A Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1500 Group 2 0.0348 0.0070 0.0278 0.1172 0.1450 0.1500

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the month ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 February 2015 14 February 2014 Share Class 1 Group 1 0.1750 0.0350 0.1400 – 0.1400 0.1500 Group 2 0.0000 0.0000 0.0000 0.1400 0.1400 0.1500 Share Class 2 Group 1 0.3709 0.0742 0.2967 – 0.2967 0.2955 Group 2 0.2204 0.0441 0.1763 0.1204 0.2967 0.2955 Share Class 3 Group 1 0.5340 0.1068 0.4272 – 0.4272 0.4263 Group 2 0.0450 0.0090 0.0360 0.3912 0.4272 0.4263 Share Class A Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1550 Group 2 0.0150 0.0030 0.0120 0.1330 0.1450 0.1550

Interim distribution Group 1 shares are those shares purchased at or before 9am on 15 December 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 December 2014.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 179 Aviva Investors Higher Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 December 2014

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 January 2015 14 January 2014 Share Class 1 Group 1 0.1625 0.0325 0.1300 – 0.1300 0.1323 Group 2 0.0000 0.0000 0.0000 0.1300 0.1300 0.1323 Share Class 2 Group 1 0.2945 0.0589 0.2356 – 0.2356 0.2157 Group 2 0.1771 0.0354 0.1417 0.0939 0.2356 0.2157 Share Class 3 Group 1 0.4295 0.0859 0.3436 – 0.3436 0.3136 Group 2 0.0874 0.0175 0.0699 0.2737 0.3436 0.3136 Share Class A Group 1 0.1688 0.0338 0.1350 – 0.1350 0.1349 Group 2 0.0829 0.0166 0.0663 0.0687 0.1350 0.1349

Interim distribution Group 1 shares are those shares purchased at or before 9am on 15 November 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 November 2014.

Interim distribution paid in pence per share for the month ended 15 November 2014

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 14 December 2014 14 December 2013 Share Class 1 Group 1 0.1625 0.0325 0.1300 – 0.1300 0.1460 Group 2 0.0059 0.0012 0.0047 0.1253 0.1300 0.1460 Share Class 2 Group 1 0.2876 0.0575 0.2301 – 0.2301 0.2384 Group 2 0.1239 0.0248 0.0991 0.1310 0.2301 0.2384 Share Class 3 Group 1 0.4186 0.0837 0.3349 – 0.3349 0.3468 Group 2 0.0843 0.0169 0.0674 0.2675 0.3349 0.3468 Share Class A Group 1 0.1688 0.0338 0.1350 – 0.1350 0.1490 Group 2 0.0789 0.0158 0.0631 0.0719 0.1350 0.1490

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

180 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

AVIVA INVESTORS MANAGED HIGH INCOME FUND

INVESTMENT OBJECTIVE Our outlook for corporate bonds is cautiously optimistic. Valuations appear attractive as credit spreads are at their widest To provide a high level of investment income. point in more than two years, which suggests there is some room for them to narrow over the near-term. It is likely that monetary policy will remain supportive in the short to medium- INVESTMENT POLICY term, and with the Bank of Japan and European Central Bank potentially extending current monetary easing, this should Diversified investment in global fixed interest securities issued in alleviate concerns over economic growth, which should further a variety of currencies by governments, supranational institutions support credit markets. Nevertheless, there are several material and corporates. uncertainties clouding markets. Questions about the growth The Fund may invest in any of the following financial instruments outlook for emerging markets, and particularly China, following in order to achieve its investment objective: transferable securities, recent capital outflows have spooked investors. Furthermore, money market instruments, units in collective investment markets are treading in uncharted waters following years of schemes, deposits and derivatives and forward transactions. unprecedented monetary stimulus. As such our focus remains on managing company-specific risks, particularly among issuers with exposure to emerging markets or commodities, and to those that are candidates for taking more debt onto their balance sheets. FUND MANAGER’S REPORT November 2015 Over the 12 months ended 15 October 2015, the Aviva Investors Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income Managed High Income Fund (share class 1) delivered a total reinvested in GBP, with no initial charges applied. Market data – Bloomberg. return of 0.91 per cent) net of fees. The Fund’s peer group, the Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should Investment Management Association’s (IMA) Sterling Strategic not be viewed as a recommendation to invest nor buy or sell any securities. Past performance Bond sector generated an average return of 1.26 per cent. is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. Sterling corporate bonds posted positive returns, underpinned by a sharp rise in underlying UK government debt as plummeting oil prices helped push UK inflation to its lowest on record, and Material Portfolio Changes as the the European Central Bank began ‘quantitative easing’. Purchases Sales Demand for gilts was also boosted by global market turbulence brought on by a prolonged commodity slump, slowing growth UK Treasury 4.75% 07/12/2038 UK Treasury 4.50% 07/12/2042 in China and an exodus from emerging-market assets which UK Treasury 4.50% 07/12/2042 CPUK Finance Ltd. 11.63% 28/02/2018 parked a flight to ‘safe-haven’ assets. However, credit spreads – the difference between government and corporate bond yields Aviva Investors – Emerging Markets Bond Fund Volkswagen Financial Services NV 2.75% – widened as investors grew more concerned about companies’ Class Zqh, Income shares 02/10/2020 ability to repay debt amid a surge in global bond issuance. The TOTAL SA, FRN 2.63% Perpetual UK Treasury, Reg. S 5.00% 07/03/2025 uncertainty generated by the prolonged negotiations between Apple, Inc. 3.45% 09/02/2045 Allianz SE, FRN 4.82% Perpetual Greece and its creditors also weighed on credit markets. Imperial Tobacco Finance plc 4.25% The Fund registered positive returns but underperformed its 21/07/2025 RCI Banque SA 3.25% 25/04/2018 benchmark. This was partly due to stakes in oil and energy related companies that suffered from the ongoing decline in oil Veolia Environnement SA, FRN 4.85% Perpetual AA Bond Co. Ltd. 9.50% 31/07/2019 and commodity prices. Also detracting from performance was a Prudential plc, FRN 11.37% 29/05/2039 UK Treasury 4.75% 07/12/2038 position in debt issued by Tesco as an accounting scandal and an intense price war between supermarkets caused the company’s Lloyds Bank plc, FRN 10.75% 16/12/2021 SSE plc, FRN 5.45% Perpetual bonds to sell off. Stakes in technology behemoth Apple and US New Look Secured Issuer plc 6.50% telecommunication giant AT&T further undermined returns. 01/07/2022 Williams Partners LP 5.88% 15/04/2021 Positions in selective financial services companies like Barclays Bank offset losses. Holdings of Imperial Tobacco served the Fund well as rumours of a takeover by the higher-rated Japan Synthetic Risk and Reward Indicator Tobacco boosted prices. Bonds issued by Veolia – a French electricity provider – benefitted from the sharp rally in euro Lower risk Higher risk zone government bonds. Within the high-yield segment of the portfolio, our holdings of Keepmoat, a UK public and private Typically lower rewards Typically higher rewards homebuilder and property services provider, especially aided returns as the companies’ bonds rallied sharply after it was 1 2 3 4 5 6 7 awarded two contracts to build more than 100 new homes The Fund has been allocated a risk number based on the historic volatility of in Nottingham. A stake in Yioula, a Greek glass manufacturer, its share price. Where insufficient share price information is available, the risk also did well as the company benefitted from resolution of the number has been based on the historic volatility of the asset classes appropriate standoff between Greece and its creditors. High-yield, dollar- to the Fund. denominated securities issued by investment-grade rated Italian – This indicator is based on historical data, calculated using European Union energy giant Enel also aided returns while positions in Telecom rules, and may not be a reliable indication of the future risk profile of the Italia benefitted from a sharp rally in ‘peripheral’ euro zone Fund. government bonds. A stake in Odeon bonds appreciated after – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. the cinema operator’s owners put the company up for sale. – Bond values are affected by changes in interest rates, and the bond issuer’s Holdings in luxury car maker Jaguar Land Rover also performed creditworthiness. Bonds that produce a higher level of income usually have a strongly throughout the reporting period. greater risk of default. – The value of investments will be affected by changes in exchange rates. – Full information on the risks applicable to the Fund is detailed in the Prospectus. avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 181 Aviva Investors Managed High Income Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 62,799 124,607,339 50.40 Class 1 2010 48.43 44.36

15.10.14 60,990 116,932,422 52.16 2011 48.77 43.37

15.10.15 53,266 104,702,819 50.87 2012 50.77 45.46

Class 2 15.10.13 1,611 2,129,848 75.62 2013 52.67 49.34

15.10.14 5,461 6,978,512 78.26 2014 53.13 51.11

15.10.15 13,537 17,732,794 76.34 2015** 53.96 50.62

Class 3 15.10.13 82,177 80,924,142 101.55 Class 2 2010 72.69 66.45

15.10.14 88,574 84,277,685 105.10 2011 73.27 65.05

15.10.15 88,205 86,042,989 102.51 2012 76.18 68.15

* Valued at bid market prices. 2013 78.87 73.94

2014 79.71 76.71 Net Asset Value – Accumulation Shares 2015** 80.97 75.91 Net asset value* Shares Pence per Class 3 2010 97.63 89.24 Share class As at £000 in issue share 2011 98.41 87.37 Class 3 15.10.13 3 2,457 142.98 2012 102.31 91.54 15.10.14** N/A N/A N/A 2013 105.93 99.31 * Valued at bid market prices. ** Share class closed on 22 January 2014. 2014 107.05 103.02 2015** 108.76 101.95

* Valued at mid market prices. ** Up to 15 October 2015.

Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Share class year (p) (p) Class 3 2010 117.99 102.87

2011 122.44 110.94

2012 138.42 117.87

2013 145.77 137.55

2014** 148.05 146.05

* Valued at mid market prices. ** Up to 22 January 2014 (date share class closed).

Ongoing Charges Figure* Share class 15.10.15 15.10.14 Class 1 1.39% 1.39%

Class 2 0.64% 0.64%

Class 3 0.34% 0.34%

* The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously.

182 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

INVESTMENT PERFORMANCE (CONTINUED)

Revenue Record – Income Shares Revenue Record – Accumulation Shares The revenue record table below shows the net distribution rates The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment per calendar year on a payment date basis for an investment made on 4 January 2010. made on 4 January 2010.

Calendar Net revenue Per £1,000 Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Share class year per share (p) invested (£) Class 1 2010 2.3800 53.62 Class 3 2010 6.2988 61.23

2011 2.0872 47.02 2011 6.4161 62.37

2012 2.0530 46.25 2012 6.4054 62.27

2013 1.9751 44.49 2013 6.6532 64.68

2014 1.7326 39.03 2014* 1.1063 10.75

2015* 1.6398 36.94 * Up to 22 January 2014 (date share class closed).

Class 2 2010 3.8682 58.16

2011 3.6601 55.03

2012 3.4637 52.08

2013 3.4054 52.08

2014 3.0810 46.32

2015* 2.8820 43.33

Class 3 2010 5.3541 59.94

2011 5.1434 57.58

2012 4.8822 54.66

2013 4.8307 54.08

2014 4.3871 49.12

2015* 4.1032 45.94

* Up to 27 November 2015 (the final distribution payment date).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 183 Aviva Investors Managed High Income Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 8.13% (7.81%) Luxembourg 8.13% (7.81%) Aviva Investors – Emerging Markets Bond Fund Class Zqh, Income shares◊ EUR 17,647 12,598 8.13 12,598 8.13 Collective Investment Schemes total 12,598 8.13 Equities 0.10% (0.09%) Ireland 0.10% (0.09%) Independent News & Media PLC EUR 1,284,294 153 0.10 153 0.10 Equities total 153 0.10 Government Bonds 1.81% (1.22%) United Kingdom 1.81% (1.22%) UK Treasury 4.75% 07/12/2038 GBP 2,000,000 2,802 1.81 2,802 1.81 Government Bonds total 2,802 1.81 Corporate Bonds 86.45% (86.03%) Australia 1.88% (1.21%) BHP Billiton Finance Ltd., FRN 0.00% 22/10/2077 GBP 1,100,000 1,121 0.73 Goodman Australia Finance Pty. Ltd., REIT 9.75% 16/07/2018 GBP 1,500,000 1,786 1.15 2,907 1.88 Bermuda 0.61% (0.45%) Aircastle Ltd. 7.63% 15/04/2020 USD 1,000,000 730 0.47 Aircastle Ltd. 5.50% 15/02/2022 USD 330,000 220 0.14 950 0.61 Canada 2.33% (1.72%) ATS Automation Tooling Systems, Inc. 6.50% 15/06/2023 USD 250,000 165 0.11 Eldorado Gold Corp. 6.13% 15/12/2020 USD 845,000 483 0.31 IAMGOLD Corp. 6.75% 01/10/2020 USD 550,000 258 0.17 Reliance Intermediate Holdings LP 6.50% 01/04/2023 USD 750,000 495 0.32 Valeant Pharmaceuticals International, Inc. 5.63% 01/12/2021 USD 1,600,000 1,002 0.64 Valeant Pharmaceuticals International, Inc. 4.50% 15/05/2023 EUR 1,200,000 802 0.52 Valeant Pharmaceuticals International, Inc. 5.88% 15/05/2023 USD 650,000 403 0.26 3,608 2.33 Cayman Islands 1.38% (1.97%) ERC Ireland Finance Ltd., FRN 6.16% 15/08/2016§ EUR 600,000 – – THPA Finance Ltd., Series B 8.24% 15/03/2028 GBP 1,300,000 1,558 1.01 UPCB Finance IV Ltd. 5.38% 15/01/2025 USD 945,000 580 0.37 2,138 1.38 Finland 0.00% (0.12%) France 6.72% (5.78%) AXA SA, FRN 5.63% 16/01/2054 GBP 1,200,000 1,203 0.78 AXA SA, FRN 5.45% Perpetual GBP 750,000 752 0.49 Electricite de France SA, FRN 6.00% Perpetual GBP 1,500,000 1,495 0.96 Horizon Holdings I SASU 7.25% 01/08/2023 EUR 1,129,000 850 0.55 Lafarge SA 10.00% 30/05/2017 GBP 1,250,000 1,393 0.90 Orange SA, FRN 5.88% Perpetual GBP 1,500,000 1,520 0.98 TOTAL SA, FRN 2.63% Perpetual EUR 2,400,000 1,588 1.02 Veolia Environnement SA, FRN 4.85% Perpetual GBP 1,600,000 1,612 1.04 10,413 6.72 Germany 0.00% (1.41%)

184 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Italy 2.02% (2.13%) Enel SpA, FRN 8.75% 24/09/2073 USD 2,750,000 2,060 1.33 Telecom Italia SpA 5.88% 19/05/2023 GBP 1,000,000 1,073 0.69 3,133 2.02 Jersey 2.16% (3.37%) AA Bond Co. Ltd. 5.50% 31/07/2043 GBP 1,191,000 1,124 0.73 CPUK Finance Ltd. 7.00% 28/02/2042 GBP 669,000 673 0.43 Heathrow Funding Ltd. 7.13% 14/02/2024 GBP 1,250,000 1,550 1.00 3,347 2.16 Luxembourg 2.30% (3.65%) Altice Luxembourg SA 7.25% 15/05/2022 EUR 1,600,000 1,135 0.73 Altice Luxembourg SA 7.63% 15/02/2025 USD 665,000 390 0.25 ArcelorMittal 6.25% 01/03/2021 USD 625,000 385 0.25 Intelsat Jackson Holdings SA 6.63% 15/12/2022 USD 405,000 210 0.14 Intelsat Jackson Holdings SA 5.50% 01/08/2023 USD 1,700,000 907 0.58 Wind Acquisition Finance SA 4.75% 15/07/2020 USD 840,000 537 0.35 3,564 2.30 Mexico 1.23% (1.27%) America Movil SAB de CV 4.38% 07/08/2041 GBP 1,400,000 1,392 0.90 America Movil SAB de CV, FRN 6.37% 06/09/2073 GBP 500,000 520 0.33 1,912 1.23 Netherlands 3.56% (6.70%) ING Bank NV, FRN 6.88% 29/05/2023 GBP 1,200,000 1,315 0.85 NXP BV 4.13% 15/06/2020 USD 820,000 532 0.34 Petrobras Global Finance BV 5.38% 01/10/2029 GBP 1,200,000 773 0.50 Siemens Financieringsmaatschappij NV 3.75% 10/09/2042 GBP 1,000,000 994 0.64 Siemens Financieringsmaatschappij NV, FRN 6.12% 14/09/2066 GBP 765,000 786 0.51 UPC Holding BV 6.75% 15/03/2023 EUR 1,400,000 1,123 0.72 5,523 3.56 Sweden 0.00% (0.09%) United Kingdom 27.91% (26.24%) Anglian Water Osprey Financing plc 7.00% 31/01/2018 GBP 1,400,000 1,513 0.98 Aviva plc, FRN 6.88% 20/05/2058† GBP 1,600,000 1,762 1.14 Barclays Bank plc 10.00% 21/05/2021 GBP 1,500,000 1,937 1.25 Eversholt Funding plc 6.70% 22/02/2035 GBP 1,000,000 1,300 0.84 First Hydro Finance plc 9.00% 31/07/2021 GBP 1,400,000 1,850 1.19 Firstgroup plc 6.13% 18/01/2019 GBP 1,450,000 1,588 1.03 GlaxoSmithKline Capital plc 4.25% 18/12/2045 GBP 870,000 929 0.60 Imperial Tobacco Finance plc 9.00% 17/02/2022 GBP 1,500,000 1,996 1.29 Imperial Tobacco Finance plc 4.25% 21/07/2025 USD 1,837,000 1,227 0.79 Investec Bank plc 9.63% 17/02/2022 GBP 1,500,000 1,792 1.16 Jaguar Land Rover Automotive plc 5.00% 15/02/2022 GBP 800,000 810 0.52 Juturna European Loan Conduit No .16 plc 5.06% 10/08/2033 GBP 1,381,106 1,600 1.03 Kelda Finance No. 3 plc 5.75% 17/02/2020 GBP 1,000,000 1,044 0.67 Kensington Group Ltd., FRN 7.28% 21/12/2015 GBP 833,000 837 0.54 Legal & General Group plc, FRN 10.00% 23/07/2041 GBP 1,600,000 2,082 1.34 Lloyds Bank plc, FRN 10.75% 16/12/2021 GBP 1,300,000 1,423 0.92 Mitchells & Butlers Finance plc, Series C1 6.47% 15/09/2032 GBP 1,800,000 2,217 1.43 New Look Secured Issuer plc 6.50% 01/07/2022 GBP 1,500,000 1,462 0.94 Newcastle Building Society, FRN 3.85% 23/12/2019 GBP 1,200,000 1,080 0.70 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 1,500,000 1,485 0.96 Prudential plc, FRN 11.37% 29/05/2039 GBP 1,270,000 1,602 1.03 Royal Bank of Scotland plc (The) 6.88% 17/05/2025 GBP 1,350,000 1,726 1.11 RSA Insurance Group plc, FRN 9.37% 20/05/2039 GBP 2,000,000 2,342 1.51 Standard Chartered plc 4.38% 18/01/2038 GBP 1,000,000 959 0.62 Tesco Property Finance 3 plc 5.74% 13/04/2040 GBP 1,229,224 1,119 0.72 Travis Perkins plc 4.38% 15/09/2021 GBP 800,000 811 0.52

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 185 Aviva Investors Managed High Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 27.91% (26.24%) (continued) Tullett Prebon Group Holdings plc 7.04% 06/07/2016 GBP 655,000 666 0.43 Virgin Media Secured Finance plc 5.50% 15/01/2025 GBP 1,800,000 1,746 1.13 Western Power Distribution West Midlands plc 5.75% 16/04/2032 GBP 1,100,000 1,364 0.88 William Hill plc 4.25% 05/06/2020 GBP 1,000,000 994 0.64 43,263 27.91 United States of America 34.35% (29.92%) Acadia Healthcare Co., Inc. 6.13% 15/03/2021 USD 510,000 344 0.22 Acadia Healthcare Co., Inc. 5.13% 01/07/2022 USD 10,000 6 – AECOM 5.75% 15/10/2022 USD 695,000 456 0.29 AECOM 5.88% 15/10/2024 USD 140,000 92 0.06 Alcoa, Inc. 5.13% 01/10/2024 USD 690,000 436 0.28 Alliance Data Systems Corp. 5.38% 01/08/2022 USD 1,200,000 767 0.50 Ally Financial, Inc. 4.13% 13/02/2022 USD 890,000 567 0.37 AMC Entertainment, Inc. 5.75% 15/06/2025 USD 750,000 482 0.31 American Axle & Manufacturing, Inc. 6.63% 15/10/2022 USD 1,000,000 661 0.43 Antero Resources Corp. 5.13% 01/12/2022 USD 850,000 484 0.31 Apple, Inc. 3.45% 09/02/2045 USD 1,014,000 565 0.37 Argos Merger Sub, Inc. 7.13% 15/03/2023 USD 950,000 637 0.41 Ashland, Inc. 3.88% 15/04/2018 USD 500,000 330 0.21 AT&T, Inc. 4.25% 01/06/2043 GBP 2,100,000 1,935 1.25 Avaya, Inc. 7.00% 01/04/2019 USD 1,900,000 942 0.61 Avis Budget Car Rental LLC 5.13% 01/06/2022 USD 1,185,000 752 0.49 Berry Plastics Corp. 6.00% 15/10/2022 USD 155,000 102 0.07 Building Materials Corp. of America 6.00% 15/10/2025 USD 840,000 561 0.36 Cablevision Systems Corp. 7.75% 15/04/2018 USD 1,500,000 996 0.64 California Resources Corp. 5.00% 15/01/2020 USD 405,000 187 0.12 Calpine Corp. 5.75% 15/01/2025 USD 1,000,000 619 0.40 Case New Holland Industrial, Inc. 7.88% 01/12/2017 USD 600,000 414 0.27 CCO Holdings LLC 7.00% 15/01/2019 USD 214,000 142 0.09 Century Communities, Inc. 6.88% 15/05/2022 USD 30,000 18 0.01 Century Communities, Inc. SNR 6.88% 15/05/2022 USD 825,000 495 0.32 Chemours Co. (The) 6.63% 15/05/2023 USD 1,500,000 714 0.46 Chesapeake Energy Corp. 3.25% 15/03/2016 USD 235,000 150 0.10 CIT Group, Inc. 5.50% 15/02/2019 USD 900,000 613 0.40 Citigroup, Inc. 4.50% 03/03/2031 GBP 1,700,000 1,746 1.13 Clear Channel Worldwide Holdings, Inc. 7.63% 15/03/2020 USD 775,000 485 0.31 CNH Industrial Capital LLC 3.63% 15/04/2018 USD 750,000 480 0.31 CNO Financial Group, Inc. 4.50% 30/05/2020 USD 575,000 384 0.25 Constellis Holdings LLC 9.75% 15/05/2020 USD 915,000 532 0.34 CoreLogic, Inc. 7.25% 01/06/2021 USD 824,000 556 0.36 CyrusOne LP 6.38% 15/11/2022 USD 1,300,000 852 0.55 DaVita HealthCare Partners, Inc. 5.13% 15/07/2024 USD 850,000 548 0.35 DCP Midstream Operating LP 2.50% 01/12/2017 USD 925,000 541 0.35 DISH DBS Corp. 6.75% 01/06/2021 USD 1,000,000 645 0.42 DPL, Inc. 7.25% 15/10/2021 USD 890,000 572 0.37 EP Energy LLC 9.38% 01/05/2020 USD 850,000 467 0.30 FGI Operating Co. LLC 7.88% 01/05/2020 USD 350,000 175 0.11 First Data Corp. 12.63% 15/01/2021 USD 750,000 553 0.36 First Data Corp. 5.38% 15/08/2023 USD 950,000 620 0.40 Fresenius Medical Care US Finance II, Inc. 4.13% 15/10/2020 USD 205,000 132 0.09 Frontier Communications Corp. 6.25% 15/09/2021 USD 425,000 239 0.15 GLP Capital LP 4.88% 01/11/2020 USD 973,000 632 0.41 Goldman Sachs Group, Inc. (The) 6.13% 14/05/2017 GBP 1,500,000 1,591 1.03 Goodyear Tire & Rubber Co. (The) 6.50% 01/03/2021 USD 880,000 599 0.39 Greystar Real Estate Partners LLC 8.25% 01/12/2022 USD 400,000 273 0.18 HCA, Inc. 5.88% 01/05/2023 USD 1,500,000 1,024 0.66 HealthSouth Corp. 5.75% 01/11/2024 USD 910,000 592 0.38 Hertz Corp. (The) 6.75% 15/04/2019 USD 1,200,000 789 0.51 Hologic, Inc. 5.25% 15/07/2022 USD 420,000 278 0.18

186 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 34.35% (29.92%) (continued) Huntsman International LLC 5.13% 15/11/2022 USD 1,000,000 603 0.39 IHS, Inc. 5.00% 01/11/2022 USD 1,280,000 800 0.52 INVISTA Finance LLC 4.25% 15/10/2019 USD 850,000 535 0.35 Iron Mountain, Inc., REIT 6.00% 01/10/2020 USD 555,000 370 0.24 JPMorgan Chase & Co. 3.50% 18/12/2026 GBP 1,300,000 1,339 0.86 Level 3 Financing, Inc. 5.13% 01/05/2023 USD 1,250,000 802 0.52 Live Nation Entertainment, Inc. 5.38% 15/06/2022 USD 1,500,000 966 0.62 MarkWest Energy Partners LP 5.50% 15/02/2023 USD 1,000,000 641 0.41 MGM Resorts International 8.63% 01/02/2019 USD 1,375,000 979 0.63 MSCI, Inc. 5.25% 15/11/2024 USD 815,000 543 0.35 NBTY, Inc. 9.00% 01/10/2018 USD 1,280,000 841 0.54 Neptune Finco Corp. 6.63% 15/10/2025 USD 540,000 358 0.23 Nuance Communications, Inc. 5.38% 15/08/2020 USD 875,000 564 0.36 OneMain Financial Holdings, Inc. 6.75% 15/12/2019 USD 1,290,000 864 0.56 Post Holdings, Inc. 7.38% 15/02/2022 USD 680,000 455 0.29 Potlatch Corp., REIT 7.50% 01/11/2019 USD 715,000 511 0.33 Resolute Forest Products, Inc. 5.88% 15/05/2023 USD 765,000 378 0.24 Rockies Express Pipeline LLC 6.00% 15/01/2019 USD 365,000 238 0.15 RSP Permian, Inc. 6.63% 01/10/2022 USD 400,000 251 0.16 Sabine Pass Liquefaction LLC 5.63% 01/03/2025 USD 1,000,000 601 0.39 Sirius XM Radio, Inc. 6.00% 15/07/2024 USD 800,000 532 0.34 Six Flags Entertainment Corp. 5.25% 15/01/2021 USD 850,000 560 0.36 SM Energy Co. 5.63% 01/06/2025 USD 935,000 537 0.35 Sprint Corp. 7.25% 15/09/2021 USD 500,000 281 0.18 Sprint Corp. 7.13% 15/06/2024 USD 1,400,000 739 0.48 Talen Energy Supply LLC 4.62% 15/07/2019 USD 1,000,000 605 0.39 Targa Resources Partners LP 4.13% 15/11/2019 USD 1,000,000 591 0.38 Tempur Sealy International, Inc. 5.63% 15/10/2023 USD 230,000 152 0.10 Tenet Healthcare Corp. 5.00% 01/03/2019 USD 1,500,000 961 0.62 Tenneco, Inc. 6.88% 15/12/2020 USD 630,000 422 0.27 T-Mobile USA, Inc. 6.63% 15/11/2020 USD 1,350,000 885 0.57 Toll Brothers Finance Corp. 5.88% 15/02/2022 USD 825,000 561 0.36 Tribune Media Co. 5.88% 15/07/2022 USD 760,000 499 0.32 United Rentals North America, Inc. 7.38% 15/05/2020 USD 1,150,000 782 0.50 Univision Communications, Inc. 5.13% 15/02/2025 USD 1,260,000 781 0.50 Vector Group Ltd. 7.75% 15/02/2021 USD 820,000 562 0.36 Westmoreland Coal Co. 8.75% 01/01/2022 USD 1,500,000 797 0.51 ZF North America Capital, Inc. 4.00% 29/04/2020 USD 915,000 585 0.38 53,243 34.35 Corporate Bonds total 134,001 86.45 Swaps 0.00% (0.00%) Credit Default Swap Buy France Government Bond OAT 4.25% 25/04/2019 20/12/2016 USD 3,100,000 (5) – Swaps total (5) – Forward Currency Contracts 0.30% ((2.40)%) Buy GBP 18,365,297 sell EUR 24,841,000 dated 14/01/2016 (11) (0.01) Buy GBP 61,349,174 sell USD 94,220,000 dated 14/01/2016 482 0.31 Forward Currency Contracts total 471 0.30

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 187 Aviva Investors Managed High Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Futures (0.02)% (0.00%) US 10 Year Note 21/12/2015 USD (18) (19) (0.02) US Ultra Bond 21/12/2015 USD (4) (3) – Futures total (22) (0.02)

Investment assets 149,998 96.77 Net other assets 5,010 3.23 Net assets 155,008 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. † A related party to the Fund. ◊ Investments managed and advised by a related party of the Fund. § Security is currently in default.

Bond rating

Market Value £000 % of Net Assets Bonds – Investment grade* 49,393 31.88 – Below investment grade 82,453 53.18 – Unrated 4,957 3.20 Debt securities total 136,803 88.26

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.15 £000 £000 £000 £000

Barclays 2,002 – – 2,002

Citibank – (12) – (12)

JPMorgan – – (1,896) (1,896)

Société Générale Paris Sicovam – 483 – 483

Total 2,002 471 (1,896) 577

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.14 £000 £000 £000 £000

Barclays 1,947 (4) – 1,943

Goldman Sachs – 88 – 88

JPMorgan – 2 – 2

Morgan Stanley – 1 – 1

Natwest (6) (6)

Royal Bank of Canada – 100 – 100

UBS – (3,930) – (3,930)

Total 1,947 (3,749) – (1,802)

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

188 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital (losses)/gains 2 (3,987) 5,099

Revenue 3 8,896 8,537

Expenses 4 (1,174) (1,174)

Finance costs: Interest 6 – (1)

Net revenue before taxation 7,722 7,362

Taxation 5 – –

Net revenue after taxation 7,722 7,362

Total return before distributions 3,735 12,461

Finance costs: Distributions 6 (7,720) (7,362)

Change in net assets attributable to shareholders from investment activities (3,985) 5,099

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 155,025 146,590

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 15,751 15,544

Amounts payable on cancellation of shares (11,788) (12,206)

3,963 3,338

Stamp duty reserve tax – (3)

Change in net assets attributable to shareholders from investment activities (see above) (3,985) 5,099

Unclaimed distribution monies 5 1

Closing net assets attributable to shareholders 155,008 155,025

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 189 Aviva Investors Managed High Income Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 150,036 148,166

Debtors 7 3,772 4,443

Cash and bank balances 8 5,453 9,167

Total other assets 9,225 13,610

Total assets 159,261 161,776

LIABILITIES

Investment liabilities (38) (4,373)

Creditors 9 (3,002) (1,321)

Distribution payable on income shares (1,213) (1,057)

Total other liabilities (4,215) (2,378)

Total liabilities (4,253) (6,751)

Net assets attributable to shareholders 155,008 155,025

190 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital (losses)/gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital (losses)/gains on investments during the year comprise:

Currency losses (775) (805)

Derivative contracts gains/(losses) 195 (7)

Expenses relating to the purchase and sale of investments (8) (6)

Forward currency contracts gains 896 2,658

Non-derivative securities (losses)/gains (4,295) 3,259

Net capital (losses)/gains (3,987) 5,099

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 1 –

Interest on debt securities 8,227 7,875

Interest on derivatives (5) (5)

Overseas dividends 5 –

Revenue from offshore funds 668 667

Total revenue 8,896 8,537

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 1,053 1,055

Registration fees 69 66

1,122 1,121

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 17 17

Safe custody fee 16 19

33 36

Other expenses:

Audit fee* 10 10

Printing & postage expenses 2 2

Statement fees 7 5

19 17

Total expenses 1,174 1,174

* The audit fee was £8,550 (2014: £8,508) net of VAT.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 191 Aviva Investors Managed High Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax suffered – – Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 7,722 7,362 Corporation tax at 20% 1,544 1,472 Effects of: Movement in excess expenses 1 – Overseas dividends not subject to corporation tax (1) – Tax deductible on interest distributions (1,544) (1,472) (1,544) (1,472) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £4,000 (2014: £nil) creating a potential deferred tax asset of £1,000 (2014: £nil). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distributions for the six months ended 15 April 3,694 3,643 Gross interest distributions for the five months ended 15 September 3,166 2,981 Gross interest distribution for the month ended 15 October 862 740 7,722 7,364 Add: Revenue deducted on cancellation of shares 23 24 Deduct: Revenue received on issue of shares (25) (26) Finance costs: Distributions 7,720 7,362 Finance costs: Interest on bank overdrafts – 1 Total finance costs 7,720 7,363 Reconciliation of net distribution for the year to net revenue after taxation Distributions for the year 7,720 7,362 Equalisation on conversions 2 – Net revenue after taxation 7,722 7,362 Details of the distributions per share are set out in the distribution tables on pages 196 to 200.

192 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 2,775 2,831 Amounts receivable on issue of shares 75 224 Sales awaiting settlement 922 1,388 Total debtors 3,772 4,443

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 68 – Cash and bank balances 5,385 9,167 Total cash and bank balances 5,453 9,167

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 163 165 Amounts payable for cancellation of shares 118 200 Income tax withheld on distributions 605 254 Purchases awaiting settlement 2,116 702 Total creditors 3,002 1,321

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees was £9,000 (2014: £9,000) paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £133,000 (2014: £137,000) and registration fees was £9,000 (2014: £9,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £3,906,000 (2014: £3,728,000). The amount outstanding at the year end was £725,000 (2014: £660,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 2,011,657 (1,799,250) 3,810,907 ACD and related parties (share class 2 Income shares) 1,878,141 1,297,004 581,137 ACD and related parties (share class 3 Income shares) 86,040,089 1,606,655 84,433,434 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 193 Aviva Investors Managed High Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.25% Class 2: 0.50% Class 3: 0.30% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 182. The distributions per share class are given in the distribution tables on pages 196 to 200. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.13% (2014: 0.40%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 6,835 69,903 81,453 158,191 Euro – 5,497 13,034 18,531 US Dollar 2,805 57,216 1,751 61,772 Financial Liabilities Sterling – – (3,382) (3,382) Euro – – (18,377) (18,377) US Dollar – – (61,727) (61,727) Total 9,640 132,616 12,752 155,008

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 9,559 70,185 164,509 244,253 Australian Dollar 1,309 – 1,307 2,616 Euro 490 7,173 40,412 48,075 US Dollar 4,191 51,561 59,386 115,138 Financial Liabilities Sterling – – (88,605) (88,605) Australian Dollar – – (2,604) (2,604) Euro – – (48,069) (48,069) US Dollar – – (115,779) (115,779) Total 15,549 128,919 10,557 155,025 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR. The floating rate on Euro FRNs is linked to EURIBOR. The floating rate on US Dollar FRNs is linked to LIBOR.

194 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Euro 9.80 8.62 7 7 Sterling 9.52 4.88 16 15 US Dollar 7.73 6.24 8 8 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £94,880,000 (2014: £104,441,000) and the total sales amounted to £88,174,000 (2014: £101,290,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 195 Aviva Investors Managed High Income Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the month ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 27 November 2015 27 November 2014 Share Class 1 Group 1 0.2998 0.0600 0.2398 – 0.2398 0.1774 Group 2 0.1163 0.0233 0.0930 0.1468 0.2398 0.1774 Share Class 2 Group 1 0.4046 0.0809 0.3237 – 0.3237 0.3052 Group 2 0.2013 0.0403 0.1610 0.1627 0.3237 0.3052 Share Class 3 Group 1 0.5689 0.1138 0.4551 – 0.4551 0.4307 Group 2 0.3795 0.0759 0.3036 0.1515 0.4551 0.4307

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 September 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 September 2015.

Interim distribution paid in pence per share for the month ended 15 September 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 October 2015 27 October 2014 Share Class 1 Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1432 Group 2 0.0298 0.0060 0.0238 0.1212 0.1450 0.1432 Share Class 2 Group 1 0.3203 0.0641 0.2562 – 0.2562 0.2331 Group 2 0.1394 0.0279 0.1115 0.1447 0.2562 0.2331 Share Class 3 Group 1 0.4576 0.0915 0.3661 – 0.3661 0.3345 Group 2 0.2688 0.0538 0.2150 0.1511 0.3661 0.3345

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 August 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 August 2015.

196 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 August 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 September 2015 27 September 2014 Share Class 1 Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1450 Group 2 0.0483 0.0097 0.0386 0.1064 0.1450 0.1450 Share Class 2 Group 1 0.3481 0.0696 0.2785 – 0.2785 0.2344 Group 2 0.1778 0.0356 0.1422 0.1363 0.2785 0.2344 Share Class 3 Group 1 0.4934 0.0987 0.3947 – 0.3947 0.3363 Group 2 0.3221 0.0644 0.2577 0.1370 0.3947 0.3363

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the month ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 August 2015 27 August 2014 Share Class 1 Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1450 Group 2 0.0586 0.0117 0.0469 0.0981 0.1460 0.1450 Share Class 2 Group 1 0.3370 0.0674 0.2696 – 0.2696 0.3050 Group 2 0.1981 0.0396 0.1585 0.1111 0.2696 0.3050 Share Class 3 Group 1 0.4784 0.0957 0.3827 – 0.3827 0.4318 Group 2 0.3524 0.0705 0.2819 0.1008 0.3827 0.4318

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 June 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 June 2015.

Interim distribution paid in pence per share for the month ended 15 June 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 July 2015 27 July 2014 Share Class 1 Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1450 Group 2 0.0450 0.0090 0.0360 0.1090 0.1450 0.1450 Share Class 2 Group 1 0.2948 0.0590 0.2358 – 0.2358 0.2182 Group 2 0.1535 0.0307 0.1228 0.1130 0.2358 0.2182 Share Class 3 Group 1 0.4229 0.0846 0.3383 – 0.3383 0.3132 Group 2 0.2370 0.0474 0.1896 0.1487 0.3383 0.3132

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 May 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 May 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 197 Aviva Investors Managed High Income Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 May 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 June 2015 27 June 2014 Share Class 1 Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1450 Group 2 0.0090 0.0018 0.0072 0.1378 0.1450 0.1450 Share Class 2 Group 1 0.2776 0.0555 0.2221 – 0.2221 0.2332 Group 2 0.1451 0.0290 0.1161 0.1060 0.2221 0.2332 Share Class 3 Group 1 0.3990 0.0798 0.3192 – 0.3192 0.3334 Group 2 0.1699 0.0340 0.1359 0.1833 0.3192 0.3334

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

Interim distribution paid in pence per share for the month ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 May 2015 27 May 2014 Share Class 1 Group 1 0.1813 0.0363 0.1450 – 0.1450 0.1425 Group 2 0.0140 0.0028 0.0112 0.1338 0.1450 0.1425 Share Class 2 Group 1 0.4070 0.0814 0.3256 – 0.3256 0.3116 Group 2 0.1839 0.0368 0.1471 0.1785 0.3256 0.3116 Share Class 3 Group 1 0.5760 0.1152 0.4608 – 0.4608 0.4404 Group 2 0.3424 0.0685 0.2739 0.1869 0.4608 0.4404

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 March 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 March 2015.

Interim distribution paid in pence per share for the month ended 15 March 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 April 2015 27 April 2014 Share Class 1 Group 1 0.1750 0.0350 0.1400 – 0.1400 0.1400 Group 2 0.0544 0.0109 0.0435 0.0965 0.1400 0.1400 Share Class 2 Group 1 0.2806 0.0561 0.2245 – 0.2245 0.2326 Group 2 0.1393 0.0279 0.1114 0.1131 0.2245 0.2326 Share Class 3 Group 1 0.4016 0.0803 0.3213 – 0.3213 0.3316 Group 2 0.2271 0.0454 0.1817 0.1396 0.3213 0.3316

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 February 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 February 2015.

198 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Managed High Income Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 February 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 March 2015 27 March 2014 Share Class 1 Group 1 0.1750 0.0350 0.1400 – 0.1400 0.1500 Group 2 0.0458 0.0092 0.0366 0.1034 0.1400 0.1500 Share Class 2 Group 1 0.2599 0.0520 0.2079 – 0.2079 0.2235 Group 2 0.0973 0.0195 0.0778 0.1301 0.2079 0.2235 Share Class 3 Group 1 0.3741 0.0748 0.2993 – 0.2993 0.3208 Group 2 0.1633 0.0327 0.1306 0.1687 0.2993 0.3208

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the month ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 Febraury 2015 27 February 2014 Share Class 1 Group 1 0.1625 0.0325 0.1300 – 0.1300 0.1500 Group 2 0.0426 0.0085 0.0341 0.0959 0.1300 0.1500 Share Class 2 Group 1 0.3745 0.0749 0.2996 – 0.2996 0.3209 Group 2 0.2561 0.0512 0.2049 0.0947 0.2996 0.3209 Share Class 3 Group 1 0.5299 0.1060 0.4239 – 0.4239 0.4532 Group 2 0.2759 0.0552 0.2207 0.2032 0.4239 0.4532

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 Febraury 2015 27 February 2014 Share Class 3 Group 1 N/A N/A N/A – N/A 0.6437 Group 2 N/A N/A N/A N/A N/A 0.6437

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 December 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 December 2014.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 199 Aviva Investors Managed High Income Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 December 2014

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 January 2015 27 January 2014 Share Class 1 Group 1 0.1500 0.0300 0.1200 – 0.1200 0.1295 Group 2 0.0745 0.0149 0.0596 0.0604 0.1200 0.1295 Share Class 2 Group 1 0.2981 0.0596 0.2385 – 0.2385 0.2299 Group 2 0.1331 0.0266 0.1065 0.1320 0.2385 0.2299 Share Class 3 Group 1 0.4273 0.0855 0.3418 – 0.3418 0.3275 Group 2 0.2161 0.0432 0.1729 0.1689 0.3418 0.3275

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 January 2015 27 January 2014 Share Class 3 Group 1 N/A N/A N/A – N/A 0.4626 Group 2 N/A N/A N/A N/A N/A 0.4626

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 November 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 November 2014.

Interim distribution paid in pence per share for the month ended 15 November 2014

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 December 2014 27 December 2013 Share Class 1 Group 1 0.1500 0.0300 0.1200 – 0.1200 0.1485 Group 2 0.0721 0.0144 0.0577 0.0623 0.1200 0.1485 Share Class 2 Group 1 0.2918 0.0584 0.2334 – 0.2334 0.2621 Group 2 0.1464 0.0293 0.1171 0.1163 0.2334 0.2621 Share Class 3 Group 1 0.4171 0.0834 0.3337 – 0.3337 0.3731 Group 2 0.2245 0.0449 0.1796 0.1541 0.3337 0.3731

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 December 2014 27 December 2013 Share Class 3 Group 1 N/A N/A N/A – N/A 0.5253 Group 2 N/A N/A N/A N/A N/A 0.5253

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

200 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

AVIVA INVESTORS MONTHLY INCOME PLUS FUND

INVESTMENT OBJECTIVE Our outlook for corporate bonds is cautiously optimistic. Valuations appear attractive as credit spreads are at their widest A high income payable monthly and to guard against capital point in more than two years, which suggests there is some erosion. room for them to narrow over the near-term. It is likely that monetary policy will remain supportive in the short to medium- term, and with the Bank of Japan and European Central Bank INVESTMENT POLICY potentially extending current monetary easing, this should alleviate concerns over economic growth, which should further Diversified investment, principally in the UK, in fixed interest support credit markets. Nevertheless, there are several material securities, convertibles, preference shares and high yielding uncertainties clouding markets. Questions about the growth equities. outlook for emerging markets, and particularly China, following The Fund may invest in any of the following financial instruments recent capital outflows have spooked investors. Furthermore, in order to achieve its investment objective: transferable securities, markets are treading in uncharted waters following years of money market instruments, units in collective investment unprecedented monetary stimulus. As such our focus remains on schemes, deposits and derivatives and forward transactions. managing company-specific risks, particularly among issuers with exposure to emerging markets or commodities, and to those that are candidates for taking more debt onto their balance sheets.

FUND MANAGER’S REPORT November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income Over the 12 months ended 15 October 2015, the Aviva Investors reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Monthly Income Plus Fund (share class 1) delivered a total Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should return of 2.23 per cent, net of fees. The Fund’s peer group, the not be viewed as a recommendation to invest nor buy or sell any securities. Past performance Investment Association’s Sterling UK Corporate Bond sector, is not a guide to the future. The value of an investment and any income from it can go down as generated an average return of 1.58 per cent. well as up. Investors may not get back the original amount invested. Sterling corporate bonds posted positive returns, underpinned by a sharp rise in underlying UK government debt as plummeting Material Portfolio Changes oil prices helped push UK inflation to its lowest on record, and as the the European Central Bank began ‘quantitative easing’. Purchases Sales Demand for gilts also increased due to global market turbulence UK Treasury 4.75% 07/12/2038 GLH Hotels Ltd. 10.75% 20/12/2014 brought on by a prolonged commodity slump, slowing growth in China and an exodus from emerging-market assets which UK Treasury 4.75% 07/03/2020 UK Treasury 5.00% 07/03/2025 parked a flight to ‘safe-haven’ assets. However, credit spreads – UK Treasury 4.50% 07/12/2042 UK Treasury 4.75% 07/12/2038 the difference between government and corporate bond yields UK Treasury 5.00% 07/03/2025 European Investment Bank 5.63% 07/06/2032 – widened as investors grew more concerned about companies’ ability to repay debt amid a surge in global bond issuance. The UK Treasury 3.75% 07/09/2021 UK Treasury 4.75% 07/03/2020 uncertainty generated by the prolonged negotiations between Birmingham Airport Finance plc 6.25% Greece and its creditors also weighed on credit markets. A Electricite de France SA 6.13% 02/06/2034 22/02/2021 scandal over German automaker Volkswagen cheating pollution emissions tests brought down the automobile sector, while UK Sky plc 4.00% 26/11/2029 European Investment Bank 6.00% 07/12/2028 mining giant Glencore saw its share price plunge to record lows Veolia Environnement SA 6.13% 29/10/2037 UK Treasury 5.00% 07/03/2018 as commodity prices plunged. Telefonica Emisiones SAU 5.45% 08/10/2029 UK Treasury 3.75% 07/09/2021 Fund outperformance versus its peer group was partially due Apple, Inc. 3.45% 09/02/2045 UK Treasury 4.50% 07/12/2042 to holdings of asset-backed securities, which added to portfolio gains throughout the period. A long-standing preference for pub and bar operators such as Greene King and Mitchells & Butlers further enhanced performance as sales picked up in tandem Synthetic Risk and Reward Indicator with an expanding UK economy. Debt backed by revenues from several real estate ventures contributed further to returns. Lower risk Higher risk Positions in consumer goods companies also performed well. A stake in Imperial Tobacco was especially beneficial following Typically lower rewards Typically higher rewards speculation that Japan Tobacco was considering a bid for the British cigarette maker. Holdings of debt issued by British 1 2 3 4 5 6 7 transport group FirstGroup did well while selective positions The Fund has been allocated a risk number based on the historic volatility of in British Sky Broadcasting also added to gains. Bonds issued its share price. Where insufficient share price information is available, the risk by Veolia – a French electricity provider – benefitted from the number has been based on the historic volatility of the asset classes appropriate sharp rally in euro zone government bonds, adding to portfolio to the Fund. gains. Fund performance was undermined by holdings in Tesco – This indicator is based on historical data, calculated using European Union as an accounting scandal and an intense price war between rules, and may not be a reliable indication of the future risk profile of the Fund. supermarkets caused the company’s debt to sell off. – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. – Bond values are affected by changes in interest rates, and the bond issuer’s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. – The value of investments will be affected by changes in exchange rates. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 201 Aviva Investors Monthly Income Plus Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 163,820 348,109,949 47.06 Class 1 2010 45.34 41.36

15.10.14 157,258 316,149,782 49.74 2011 44.73 41.77

15.10.15 141,302 285,360,703 49.52 2012 48.16 42.66

Class 3 15.10.13 2 4,332 47.02 2013 49.95 46.44

15.10.14** N/A N/A N/A 2014 50.90 47.27

Class R3 15.10.13 1,214 1,193,284 101.71 2015*** 52.80 49.43

15.10.14 3,885 3,613,401 107.51 Class 3 2010 45.29 41.24

15.10.15 10,487 9,798,206 107.02 2011 44.71 41.73

* Valued at bid market prices. 2012 48.12 42.59 ** Share class closed on 22 January 2014. 2013 49.92 46.41

2014† 48.04 47.25 Net Asset Value – Accumulation Shares Class R3 2012** 104.09 99.79 Net asset value* Shares Pence per 2013 107.97 100.38 Share class As at £000 in issue share 2014 110.01 102.20 Class 1 15.10.13 116,428 94,053,447 123.79 2015*** 114.14 106.85 15.10.14 113,346 84,024,608 134.90 * Valued at mid market prices. 15.10.15 105,141 76,164,662 138.04 ** From 20 August 2012 (date of launch). Class 3 15.10.13 12,046 9,051,409 133.09 *** Up to 15 October 2015. † Up to 22 January 2014 (date share class closed). 15.10.14 12,276 8,410,549 145.96

15.10.15 12,278 8,167,578 150.33 Share Price Record – Accumulation Shares Class R3 15.10.13 1,417 1,337,198 105.96 Calendar Highest price* Lowest price* 15.10.14 7,615 6,567,888 115.94 Share class year (p) (p) 15.10.15 15,923 13,367,309 119.12 Class 1 2010 106.40 94.00

* Valued at bid market prices. 2011 108.50 102.05

2012 123.41 105.81

2013 129.31 120.84

2014 138.67 124.99

2015*** 144.16 136.48

Class 3 2010 112.20 98.68

2011 115.31 107.79

2012 132.00 111.79

2013 138.62 129.66

2014 150.21 134.57

2015*** 156.29 148.35

Class R3 2012** 105.30 99.79

2013 110.49 103.31

2014 119.26 107.09

2015*** 124.05 117.63

* Valued at mid market prices. ** From 20 August 2012 (date of launch). *** Up to 15 October 2015.

202 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

INVESTMENT PERFORMANCE (CONTINUED)

Ongoing Charges Figure* Revenue Record – Accumulation Shares Share class 15.10.15 15.10.14 The revenue record table below shows the net distribution rates Class 1 1.13% 1.13% per calendar year on a payment date basis for an investment made on 4 January 2010 (20 August 2012 for Share Class R3). Class 3 0.33% 0.33% Calendar Net revenue Per £1,000 Class R3 0.63% 0.63% Share class year per share (p) invested (£) * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Class 1 2010 4.3472 46.25 Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 2011 4.0444 43.03 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 2012 4.3807 46.60

2013 3.8957 41.44

Revenue Record – Income Shares 2014 3.9335 41.85 The revenue record table below shows the net distribution rates 2015** 3.5315 37.57 per calendar year on a payment date basis for an investment Class 3 2010 4.9880 50.55 made on 4 January 2010 (20 August 2012 for Share Class R3). 2011 5.0861 51.54

Calendar Net revenue Per £1,000 2012 5.3690 54.41 Share class year per share (p) invested (£) 2013 5.0444 51.12 Class 1 2010 1.8817 45.50 2014 5.1814 52.51 2011 1.6805 40.63 2015** 4.7126 47.76 2012 1.7523 42.37 Class R3 2012* 0.8230 8.23 2013 1.5027 36.33 2013 3.7413 37.41 2014 1.4716 35.58 2014 3.8353 38.35 2015** 1.2849 31.07 2015** 3.4788 34.79 Class 3 2010 2.0495 49.70 * From 20 August 2012 (date of launch). 2011 2.0039 48.59 ** Up to 27 November 2015 (the final distribution payment date).

2012 2.0221 49.03

2013 1.7910 43.43

2014*** 0.3178 7.71

Class R3 2012* 0.8214 8.21

2013 3.6617 36.62

2014 3.6131 36.13

2015** 3.1772 31.77

* From 20 August 2012 (date of launch). ** Up to 27 November 2015 (the final distribution payment date). *** Up to 22 January 2014 (date share class closed).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 203 Aviva Investors Monthly Income Plus Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Equities 0.00% (0.00%) United Kingdom 0.00% (0.00%) Whitnash plc Preference 6.50%^ GBP 312,500 – – Whitnash plc Preference 9.00%^ GBP 692,258 – – – – Equities total – – Government Bonds 7.82% (3.45%) Germany 0.97% (1.91%) KFW 5.00% 09/06/2036 GBP 2,000,000 2,760 0.97 2,760 0.97 United Kingdom 6.85% (1.54%) UK Treasury 4.75% 07/03/2020 GBP 4,800,000 5,578 1.96 UK Treasury 6.00% 07/12/2028 GBP 1,900,000 2,808 0.98 UK Treasury 4.75% 07/12/2038 GBP 4,000,000 5,605 1.96 UK Treasury 4.50% 07/12/2042 GBP 4,000,000 5,558 1.95 19,549 6.85 Government Bonds total 22,309 7.82 Corporate Bonds 88.81% (87.83%) Australia 1.69% (1.11%) BHP Billiton Finance Ltd., FRN 0.00% 22/10/2077 GBP 1,700,000 1,732 0.61 Goodman Australia Finance Pty. Ltd. 9.75% 16/07/2018 GBP 2,600,000 3,096 1.08 4,828 1.69 Cayman Islands 3.24% (3.03%) Affinity Water Programme Finance Ltd. 4.50% 31/03/2036 GBP 1,590,000 1,757 0.62 Parmalat Capital Finance 9.38% Perpetual GBP 5,790,000 – – Thames Water Utilities Cayman Finance Ltd., FRN 5.38% 21/07/2025 GBP 2,000,000 2,095 0.73 THPA Finance Ltd., Series B 8.24% 15/03/2028 GBP 4,499,000 5,392 1.89 9,244 3.24 France 9.75% (3.96%) AXA SA, FRN 5.63% 16/01/2054 GBP 3,400,000 3,409 1.20 Credit Agricole SA, FRN 7.50% Perpetual GBP 2,300,000 2,232 0.78 Electricite de France SA 6.13% 02/06/2034 GBP 3,500,000 4,254 1.49 Electricite de France SA, FRN 5.88% Perpetual GBP 2,700,000 2,637 0.92 Lafarge SA 10.00% 30/05/2017 GBP 2,500,000 2,785 0.98 Orange SA, FRN 5.88% Perpetual GBP 3,200,000 3,244 1.14 TOTAL SA, FRN 2.63% Perpetual EUR 4,400,000 2,912 1.02 Veolia Environnement SA 6.13% 29/10/2037 GBP 2,600,000 3,305 1.16 Veolia Environnement SA, FRN 4.85% Perpetual GBP 3,000,000 3,022 1.06 27,800 9.75 Germany 0.00% (0.67%) Ireland 1.86% (0.82%) GE Capital UK Funding 4.13% 13/09/2023 GBP 2,200,000 2,404 0.84 Swiss Reinsurance Co. Ltd., FRN 6.37% 01/09/2024 USD 4,400,000 2,901 1.02 5,305 1.86 Italy 1.96% (0.96%) Enel SpA, FRN 6.62% 15/09/2076 GBP 2,600,000 2,676 0.94 Telecom Italia SpA 5.88% 19/05/2023 GBP 2,700,000 2,899 1.02 5,575 1.96

204 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Jersey 5.94% (5.03%) AA Bond Co. Ltd. 6.27% 02/07/2043 GBP 4,055,000 4,855 1.70 AA Bond Co. Ltd. 5.50% 31/07/2043 GBP 2,016,000 1,903 0.67 Gatwick Funding Ltd. 5.25% 23/01/2026 GBP 2,100,000 2,403 0.84 Heathrow Funding Ltd. 7.13% 14/02/2024 GBP 3,300,000 4,092 1.44 HSBC Bank Capital Funding Sterling 1 LP, FRN 5.84% Perpetual GBP 3,400,000 3,672 1.29 16,925 5.94 Luxembourg 1.23% (1.75%) Nestle Finance International Ltd. 2.25% 30/11/2023 GBP 3,489,000 3,509 1.23 3,509 1.23 Mexico 1.23% (1.30%) America Movil SAB de CV 4.38% 07/08/2041 GBP 3,528,000 3,507 1.23 3,507 1.23 Netherlands 9.50% (9.66%) Allianz Finance II BV 4.50% 13/03/2043 GBP 2,500,000 2,752 0.96 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.00% 19/09/2022 GBP 2,600,000 2,812 0.99 Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.63% 23/05/2029 GBP 1,921,000 1,951 0.68 Deutsche Bahn Finance BV 3.13% 24/07/2026 GBP 3,000,000 3,158 1.11 Enel Finance International NV 5.75% 14/09/2040 GBP 2,300,000 2,684 0.94 ING Bank NV, FRN 6.88% 29/05/2023 GBP 2,800,000 3,069 1.08 Siemens Financieringsmaatschappij NV 3.75% 10/09/2042 GBP 3,200,000 3,181 1.12 Siemens Financieringsmaatschappij NV, FRN 6.12% 14/09/2066 GBP 4,000,000 4,108 1.44 Volkswagen Financial Services NV 2.75% 02/10/2020 GBP 3,500,000 3,361 1.18 27,076 9.50 Spain 1.16% (0.00%) Telefonica Emisiones SAU 5.45% 08/10/2029 GBP 2,900,000 3,295 1.16 3,295 1.16 United Kingdom 40.96% (49.62%) Aggregate Industries Holdings Ltd. 7.25% 31/05/2016 GBP 5,000,000 5,162 1.81 Aviva plc, FRN 5.90% Perpetual† GBP 2,600,000 2,670 0.94 Barclays Bank plc 10.00% 21/05/2021 GBP 3,000,000 3,873 1.36 Canary Wharf Finance II plc, Series A1 6.46% 22/10/2033 GBP 1,116,036 1,479 0.52 Eastern Power Networks plc 4.75% 30/09/2021 GBP 3,000,000 3,362 1.18 F&C Finance plc 9.00% 20/12/2016 GBP 673,000 721 0.25 Firstgroup plc 6.88% 18/09/2024 GBP 2,800,000 3,362 1.18 GlaxoSmithKline Capital plc 4.25% 18/12/2045 GBP 4,000,000 4,269 1.50 Great Rolling Stock Co. Ltd. (The) 6.50% 05/04/2031 GBP 2,784,000 3,539 1.24 Greene King Finance plc, Series B1 5.70% 15/12/2034 GBP 3,982,000 3,718 1.30 HSBC Bank plc, FRN 5.38% 04/11/2030 GBP 3,400,000 3,680 1.29 Imperial Tobacco Finance plc 9.00% 17/02/2022 GBP 3,252,000 4,327 1.52 Imperial Tobacco Finance plc 4.25% 21/07/2025 USD 3,291,000 2,199 0.77 Intu Metrocentre Finance plc, REIT 4.13% 06/12/2023 GBP 3,300,000 3,455 1.21 Juturna European Loan Conduit No .16 plc 5.06% 10/08/2033 GBP 3,406,729 3,948 1.38 Kensington Group Ltd., FRN 7.28% 21/12/2015 GBP 2,600,000 2,612 0.92 Lloyds Bank plc 7.63% 22/04/2025 GBP 2,300,000 2,913 1.02 Meadowhall Finance plc, Series B 4.99% 12/07/2037 GBP 1,804,868 2,115 0.74 Mitchells & Butlers Finance plc, Series C1 6.47% 15/09/2032 GBP 2,600,000 3,202 1.12 Newcastle Building Society, FRN 3.85% 23/12/2019 GBP 2,000,000 1,800 0.63 Notting Hill Housing Trust 3.75% 20/12/2032 GBP 3,200,000 3,195 1.12 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 1,900,000 1,881 0.66 Prudential plc, FRN 11.37% 29/05/2039 GBP 2,900,000 3,657 1.28 Reed Elsevier Investments plc 2.75% 01/08/2019 GBP 3,200,000 3,273 1.15 Royal Bank of Scotland plc (The) 6.88% 17/05/2025 GBP 2,200,000 2,814 0.99

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 205 Aviva Investors Monthly Income Plus Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 40.96% (49.62%) (continued) RSA Insurance Group plc, FRN 9.37% 20/05/2039 GBP 3,300,000 3,864 1.35 Segro plc, REIT 6.75% 23/11/2021 GBP 3,000,000 3,666 1.29 Silverstone Master Issuer plc, FRN 5.06% 21/01/2055 GBP 3,500,000 3,625 1.27 Sky plc 4.00% 26/11/2029 GBP 2,500,000 2,527 0.89 SSE plc 6.25% 27/08/2038 GBP 972,000 1,260 0.44 Standard Chartered plc 5.13% 06/06/2034 GBP 3,018,000 2,716 0.95 Standard Chartered plc 4.38% 18/01/2038 GBP 2,500,000 2,396 0.84 Tesco plc 4.88% 24/03/2042 GBP 3,700,000 2,911 1.02 Tesco Property Finance 3 plc 5.74% 13/04/2040 GBP 1,278,393 1,164 0.41 Thames Water Kemble Finance plc 7.75% 01/04/2019 GBP 2,400,000 2,624 0.92 Travis Perkins plc 4.38% 15/09/2021 GBP 2,218,000 2,248 0.79 Tullett Prebon Group Holdings plc 7.04% 06/07/2016 GBP 1,966,000 1,998 0.70 Virgin Media Secured Finance plc 5.50% 15/01/2025 GBP 2,340,000 2,269 0.80 Wellcome Trust Ltd. (The) 4.00% 09/05/2059 GBP 1,305,000 1,587 0.56 Western Power Distribution West Midlands plc 5.75% 16/04/2032 GBP 3,800,000 4,711 1.65 116,792 40.96 United States of America 10.29% (9.92%) Ahold Finance USA LLC 6.50% 14/03/2017 GBP 2,700,000 2,871 1.01 Apple, Inc. 3.45% 09/02/2045 USD 1,878,000 1,047 0.37 AT&T, Inc. 4.25% 01/06/2043 GBP 3,500,000 3,225 1.13 Bank of America Corp. 7.75% 30/04/2018 GBP 2,400,000 2,740 0.96 Citigroup, Inc. 4.50% 03/03/2031 GBP 4,000,000 4,108 1.44 DIRECTV Holdings LLC 4.38% 14/09/2029 GBP 3,300,000 3,368 1.18 Goldman Sachs Group, Inc. (The) 6.13% 14/05/2017 GBP 3,000,000 3,182 1.11 JPMorgan Chase & Co. 3.50% 18/12/2026 GBP 2,200,000 2,265 0.79 Metropolitan Life Global Funding I 3.50% 30/09/2026 GBP 3,500,000 3,674 1.29 Verizon Communications, Inc. 4.07% 18/06/2024 GBP 2,700,000 2,871 1.01 29,351 10.29 Corporate Bonds total 253,207 88.81 Supranationals 1.79% (4.68%) Supranational 1.79% (4.68%) European Investment Bank 5.00% 15/04/2039 GBP 3,700,000 5,098 1.79 5,098 1.79 Supranationals total 5,098 1.79 Swaps (0.01)% ((0.01)%) Credit Default Swap Buy France Government Bond OAT 4.25% 25/04/2019 20/12/2016 USD 12,400,000 (21) (0.01) Swaps total (21) (0.01) Forward Currency Contracts 0.02% (0.01%) Buy GBP 3,034,144 sell EUR 4,104,000 dated 14/01/2016 (2) – Buy GBP 7,671,577 sell USD 11,782,000 dated 14/01/2016 60 0.02 Forward Currency Contracts total 58 0.02

Futures (0.01)% ((0.08)%) US 10 Year Note 21/12/2015 USD (32) (33) (0.01) US Ultra Bond 21/12/2015 USD (9) (6) – Futures total (39) (0.01)

Investment assets 280,612 98.42 Net other assets 4,519 1.58 Net assets 285,131 100.00

All holdings are debt securities denominated in Sterling and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. ^ Unlisted, suspended or delisted security. † A related party to the Fund.

206 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Bond Rating

Market Value £000 % of Net Assets Bonds – Investment grade* 225,449 79.06 – Below investment grade 49,193 17.26 – Unrated 5,972 2.10 Debt securities total 280,614 98.42

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.15 £000 £000 £000 £000

Barclays 8,007 – – 8,007

JPMorgan – – (3,572) (3,572)

Citibank – (2) – (2)

Société Générale – 60 – 60

Total 8,007 58 (3,572) 4,493

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.14 £000 £000 £000 £000

Barclays 7,789 – – 7,789

Goldman Sachs – 10 – 10

JPMorgan – – (5,636) (5,636)

Royal Bank of Canada – 44 – 44

UBS – 4 – 4

Total 7,789 58 (5,636) 2,211

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 207 Aviva Investors Monthly Income Plus Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital (losses)/gains 2 (1,154) 16,279

Revenue 3 13,499 14,576

Expenses 4 (3,135) (3,196)

Finance costs: Interest 6 (3) –

Net revenue before taxation 10,361 11,380

Taxation 5 – –

Net revenue after taxation 10,361 11,380

Total return before distributions 9,207 27,659

Finance costs: Distributions 6 (10,362) (11,380)

Change in net assets attributable to shareholders from investment activities (1,155) 16,279

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 294,380 294,927

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 12,508 7,767

Amounts payable on cancellation of shares (24,447) (28,684)

(11,939) (20,917)

Change in net assets attributable to shareholders from investment activities (see above) (1,155) 16,279

Compensation receivable 3,844 4,091

Unclaimed distribution monies 1 –

Closing net assets attributable to shareholders 285,131 294,380

208 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 280,674 282,580

Debtors 7 5,796 7,665

Cash and bank balances 8 2,891 6,529

Total other assets 8,687 14,194

Total assets 289,361 296,774

LIABILITIES

Investment liabilities (62) (315)

Creditors 9 (3,394) (1,196)

Distribution payable on income shares (774) (883)

Total other liabilities (4,168) (2,079)

Total liabilities (4,230) (2,394)

Net assets attributable to shareholders 285,131 294,380

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 209 Aviva Investors Monthly Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital (losses)/gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital (losses)/gains on investments during the year comprise:

Currency losses (63) (238)

Derivative contracts gains/(losses) 532 (605)

Expenses relating to the purchase and sale of investments (3) (3)

Forward currency contracts gains 663 973

Non-derivative securities (losses)/gains (2,283) 16,152

Net capital (losses)/gains (1,154) 16,279

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Interest on debt securities 13,608 14,707

Interest on derivatives (109) (131)

Total revenue 13,499 14,576

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 2,766 2,825

Registration fees 282 282

3,048 3,107

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 31 30

Safe custody fee 29 33

60 63

Other expenses:

Audit fee* 11 12

Printing & postage expenses 4 4

Statement fees 12 10

27 26

Total expenses 3,135 3,196

* The audit fee was £9,065 (2014: £9,020) net of VAT.

210 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 10,361 11,380 Corporation tax at 20% 2,072 2,276 Effects of: Tax deductible on interest distributions (2,072) (2,276) – – Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil).

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distributions for the six months ended 15 April 5,147 4,600 Gross interest distributions for the five months ended 15 September 4,246 5,632 Gross interest distribution for the month ended 15 October 952 1,113 10,345 11,345 Add: Revenue deducted on cancellation of shares 37 48 Deduct: Revenue received on issue of shares (20) (13) Finance costs: Distributions 10,362 11,380 Finance costs: Interest 3 – Total finance costs 10,365 11,380 Reconciliation of net distribution for the year to net revenue after taxation Distributions for the year 10,362 11,380 Equalisation on conversions (1) – Net revenue after taxation 10,361 11,380 Details of the distributions per share are set out in the distribution tables on pages 215 to 221.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 211 Aviva Investors Monthly Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 5,086 5,521 Amounts receivable on issue of shares 140 95 Income tax recoverable – 824 Sales awaiting settlement 570 1,225 Total debtors 5,796 7,665

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 129 318 Cash and bank balances 2,762 6,211 Total cash and bank balances 2,891 6,529

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 416 426 Amounts payable for cancellation of shares 210 355 Income tax withheld on distributions 524 – Purchases awaiting settlement 2,244 415 Total creditors 3,394 1,196

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £350,000 (2014: £361,000) and registration fees was £36,000 (2014: £36,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £476,000 (2014: £465,000). The amount outstanding at the year end was £81,000 (2014: £76,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) 60,657 (1,114,904) 1,175,561 ACD and related parties (share class 1 Accumulation shares) 4,242 (473,296) 477,538 ACD and related parties (share class 3 Accumulation shares) 8,167,578 (242,971) 8,410,549 ACD and related parties (share class R3 Income shares) 545,763 507,911 37,852 ACD and related parties (share class R3 Accumulation shares) 933,330 904,247 29,083 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

212 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has three share classes: Classes 1 and R3 (Retail), and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 3: 0.30% Class R3: 0.50% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 202. The distributions per share class are given in the distribution tables on pages 215 to 221. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, (0.01)% (2014: 0.55%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 11,805 261,153 16,400 289,358 Euro – 2,912 69 2,981 US Dollar 1,488 6,147 51 7,686 Financial Liabilities Sterling – – (4,187) (4,187) Euro – – (3,036) (3,036) US Dollar – – (7,671) (7,671) Total 13,293 270,212 1,626 285,131

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 15,384 268,726 19,909 304,019 Euro 455 4,428 7,409 12,292 Financial Liabilities Sterling – – (9,488) (9,488) Euro – – (12,426) (12,426) US Dollar – – (17) (17) Total 15,839 273,154 5,387 294,380 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR. The floating rate on Euro FRNs is linked to EURIBOR. The floating rate on US Dollar FRNs is linked to LIBOR.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 213 Aviva Investors Monthly Income Plus Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 9.75 3.52 16 15 Euro 2.62 8.22 – 7 US Dollar 5.00 – 13 – The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £131,321,000 (2014: £123,665,000) and the total sales amounted to £130,163,000 (2014: £147,343,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

214 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the month ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 27 November 2015 27 November 2014 Share Class 1 Group 1 0.1686 0.0337 0.1349 – 0.1349 0.1516 Group 2 0.0621 0.0124 0.0497 0.0852 0.1349 0.1516 Share Class R3 Group 1 0.4028 0.0806 0.3222 – 0.3222 0.3231 Group 2 0.1990 0.0398 0.1592 0.1630 0.3222 0.3231

Final distribution Final distribution Gross Income Net payable paid Accumulation shares revenue tax revenue Equalisation 27 November 2015 27 November 2014 Share Class 1 Group 1 0.4683 0.0937 0.3746 – 0.3746 0.4091 Group 2 0.1185 0.0237 0.0948 0.2798 0.3746 0.4091 Share Class 3 Group 1 0.5301 0.1060 0.4241 – 0.4241 0.3889 Group 2 0.2948 0.0590 0.2358 0.1883 0.4241 0.3889 Share Class R3 Group 1 0.4453 0.0891 0.3562 – 0.3562 0.3485 Group 2 0.1900 0.0380 0.1520 0.2042 0.3562 0.3485

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 September 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 September 2015.

Interim distribution paid in pence per share for the month ended 15 September 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 October 2015 27 October 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0158 0.0032 0.0126 0.1024 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.0374 0.0075 0.0299 0.2551 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 October 2015 27 October 2014 Share Class 1 Group 1 0.3988 0.0798 0.3190 – 0.3190 0.3236 Group 2 0.1468 0.0294 0.1174 0.2016 0.3190 0.3236 Share Class 3 Group 1 0.5625 0.1125 0.4500 – 0.4500 0.4386 Group 2 0.5094 0.1019 0.4075 0.0425 0.4500 0.4386 Share Class R3 Group 1 0.3943 0.0789 0.3154 – 0.3154 0.3216 Group 2 0.1878 0.0376 0.1502 0.1652 0.3154 0.3216

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 August 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 August 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 215 Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 August 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 September 2015 27 September 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0414 0.0083 0.0331 0.0819 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1461 0.0292 0.1169 0.1681 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 September 2015 27 September 2014 Share Class 1 Group 1 0.3978 0.0796 0.3182 – 0.3182 0.3228 Group 2 0.1640 0.0328 0.1312 0.1870 0.3182 0.3228 Share Class 3 Group 1 0.5199 0.1040 0.4159 – 0.4159 0.4396 Group 2 0.3564 0.0713 0.2851 0.1308 0.4159 0.4396 Share Class R3 Group 1 0.3933 0.0787 0.3146 – 0.3146 0.3207 Group 2 0.1606 0.0321 0.1285 0.1861 0.3146 0.3207

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the month ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 August 2015 27 August 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0510 0.0102 0.0408 0.0742 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1463 0.0293 0.1170 0.1680 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 August 2015 27 August 2014 Share Class 1 Group 1 0.3968 0.0794 0.3174 – 0.3174 0.3220 Group 2 0.1588 0.0318 0.1270 0.1904 0.3174 0.3220 Share Class 3 Group 1 0.5355 0.1071 0.4284 – 0.4284 0.4554 Group 2 0.3863 0.0773 0.3090 0.1194 0.4284 0.4554 Share Class R3 Group 1 0.3921 0.0784 0.3137 – 0.3137 0.3198 Group 2 0.1308 0.0262 0.1046 0.2091 0.3137 0.3198

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 June 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 June 2015.

216 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 June 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 July 2015 27 July 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0756 0.0151 0.0605 0.0545 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1090 0.0218 0.0872 0.1978 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 July 2015 27 July 2014 Share Class 1 Group 1 0.3960 0.0792 0.3168 – 0.3168 0.3212 Group 2 0.1586 0.0317 0.1269 0.1899 0.3168 0.3212 Share Class 3 Group 1 0.5455 0.1091 0.4364 – 0.4364 0.4180 Group 2 0.2143 0.0429 0.1714 0.2650 0.4364 0.4180 Share Class R3 Group 1 0.3911 0.0782 0.3129 – 0.3129 0.3189 Group 2 0.1184 0.0237 0.0947 0.2182 0.3129 0.3189

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 May 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 May 2015.

Interim distribution paid in pence per share for the month ended 15 May 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 June 2015 27 June 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0549 0.0110 0.0439 0.0711 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1284 0.0257 0.1027 0.1823 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 June 2015 27 June 2014 Share Class 1 Group 1 0.3950 0.0790 0.3160 – 0.3160 0.3205 Group 2 0.1836 0.0367 0.1469 0.1691 0.3160 0.3205 Share Class 3 Group 1 0.5250 0.1050 0.4200 – 0.4200 0.4377 Group 2 0.3564 0.0713 0.2851 0.1349 0.4200 0.4377 Share Class R3 Group 1 0.3901 0.0780 0.3121 – 0.3121 0.3180 Group 2 0.1874 0.0375 0.1499 0.1622 0.3121 0.3180

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 217 Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 May 2015 27 May 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0425 0.0085 0.0340 0.0810 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1326 0.0265 0.1061 0.1789 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 May 2015 27 May 2014 Share Class 1 Group 1 0.3941 0.0788 0.3153 – 0.3153 0.3197 Group 2 0.1705 0.0341 0.1364 0.1789 0.3153 0.3197 Share Class 3 Group 1 0.5718 0.1144 0.4574 – 0.4574 0.4541 Group 2 0.4840 0.0968 0.3872 0.0702 0.4574 0.4541 Share Class R3 Group 1 0.3891 0.0778 0.3113 – 0.3113 0.3170 Group 2 0.1481 0.0296 0.1185 0.1928 0.3113 0.3170

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 March 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 March 2015.

Interim distribution paid in pence per share for the month ended 15 March 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 April 2015 27 April 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0273 0.0055 0.0218 0.0932 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1640 0.0328 0.1312 0.1538 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 April 2015 27 April 2014 Share Class 1 Group 1 0.3933 0.0787 0.3146 – 0.3146 0.3188 Group 2 0.1529 0.0306 0.1223 0.1923 0.3146 0.3188 Share Class 3 Group 1 0.5008 0.1002 0.4006 – 0.4006 0.4018 Group 2 0.2164 0.0433 0.1731 0.2275 0.4006 0.4018 Share Class R3 Group 1 0.3881 0.0776 0.3105 – 0.3105 0.3161 Group 2 0.1551 0.0310 0.1241 0.1864 0.3105 0.3161

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 February 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 February 2015.

218 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 February 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 March 2015 27 March 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0571 0.0114 0.0457 0.0693 0.1150 0.1200 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1701 0.0340 0.1361 0.1489 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 March 2015 27 March 2014 Share Class 1 Group 1 0.3924 0.0785 0.3139 – 0.3139 0.3180 Group 2 0.1365 0.0273 0.1092 0.2047 0.3139 0.3180 Share Class 3 Group 1 0.5071 0.1014 0.4057 – 0.4057 0.4138 Group 2 0.3125 0.0625 0.2500 0.1557 0.4057 0.4138 Share Class R3 Group 1 0.3871 0.0774 0.3097 – 0.3097 0.3152 Group 2 0.1463 0.0293 0.1170 0.1927 0.3097 0.3152

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the month ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 February 2015 27 February 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1200 Group 2 0.0278 0.0056 0.0222 0.0928 0.1150 0.1200 Share Class 3 Group 1 N/A N/A N/A – N/A 0.1604 Group 2 N/A N/A N/A N/A N/A 0.1604 Share Class R3 Group 1 0.3563 0.0713 0.2850 – 0.2850 0.3000 Group 2 0.1605 0.0321 0.1284 0.1566 0.2850 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 February 2015 27 February 2014 Share Class 1 Group 1 0.3915 0.0783 0.3132 – 0.3132 0.3173 Group 2 0.0785 0.0157 0.0628 0.2504 0.3132 0.3173 Share Class 3 Group 1 0.5349 0.1070 0.4279 – 0.4279 0.4563 Group 2 0.1871 0.0374 0.1497 0.2782 0.4279 0.4563 Share Class R3 Group 1 0.3861 0.0772 0.3089 – 0.3089 0.3143 Group 2 0.2124 0.0425 0.1699 0.1390 0.3089 0.3143

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 December 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 December 2014.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 219 Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 December 2014

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 January 2015 27 January 2014 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1250 Group 2 0.0744 0.0149 0.0595 0.0555 0.1150 0.1250 Share Class 3 Group 1 N/A N/A N/A – N/A 0.1387 Group 2 N/A N/A N/A N/A N/A 0.1387 Share Class R3 Group 1 0.3625 0.0725 0.2900 – 0.2900 0.3000 Group 2 0.1375 0.0275 0.1100 0.1800 0.2900 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 January 2015 27 January 2014 Share Class 1 Group 1 0.3906 0.0781 0.3125 – 0.3125 0.3296 Group 2 0.1741 0.0348 0.1393 0.1732 0.3125 0.3296 Share Class 3 Group 1 0.5578 0.1116 0.4462 – 0.4462 0.3996 Group 2 0.2464 0.0493 0.1971 0.2491 0.4462 0.3996 Share Class R3 Group 1 0.3919 0.0784 0.3135 – 0.3135 0.3134 Group 2 0.2063 0.0413 0.1650 0.1485 0.3135 0.3134

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 November 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 November 2014.

220 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Monthly Income Plus Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the month ended 15 November 2014

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 27 December 2014 27 December 2013 Share Class 1 Group 1 0.1438 0.0288 0.1150 – 0.1150 0.1250 Group 2 0.0959 0.0192 0.0767 0.0383 0.1150 0.1250 Share Class 3 Group 1 N/A N/A N/A – N/A 0.1574 Group 2 N/A N/A N/A N/A N/A 0.1574 Share Class R3 Group 1 0.3625 0.0725 0.2900 – 0.2900 0.3000 Group 2 0.2414 0.0483 0.1931 0.0969 0.2900 0.3000

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 27 December 2014 27 December 2013 Share Class 1 Group 1 0.3898 0.0780 0.3118 – 0.3118 0.3287 Group 2 0.2174 0.0435 0.1739 0.1379 0.3118 0.3287 Share Class 3 Group 1 0.5338 0.1068 0.4270 – 0.4270 0.4502 Group 2 0.4255 0.0851 0.3404 0.0866 0.4270 0.4502 Share Class R3 Group 1 0.3909 0.0782 0.3127 – 0.3127 0.3125 Group 2 0.1778 0.0356 0.1422 0.1705 0.3127 0.3125

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 221 Aviva Investors Strategic Bond Fund

AVIVA INVESTORS STRATEGIC BOND FUND

INVESTMENT OBJECTIVE Our outlook for corporate bonds is cautiously optimistic. Valuations appear attractive as credit spreads are at their widest To provide a high total return from a diversified portfolio of point in more than two years, which suggests there is some global debt securities. room for them to narrow over the near-term. It is likely that monetary policy will remain supportive in the short to medium- term, and with the Bank of Japan and European Central Bank INVESTMENT POLICY potentially extending current monetary easing, this should alleviate concerns over economic growth, which should further Diversified investment in global fixed interest securities, including support credit markets. Nevertheless, there are several material non-investment grade. uncertainties clouding markets. Questions about the growth The Fund may invest in any of the following financial instruments outlook for emerging markets, and particularly China, following in order to achieve its investment objective: transferable securities, recent capital outflows have spooked investors. Furthermore, money market instruments, units in collective investment markets are treading in uncharted waters following years of schemes, deposits and derivatives and forward transactions. unprecedented monetary stimulus. As such our focus remains on managing company-specific risks, particularly among issuers with Note: at least 80 per cent of assets will either be in sterling or exposure to emerging markets or commodities, and to those that currency hedged back to sterling. are candidates for taking more debt onto their balance sheets. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income FUND MANAGER’S REPORT reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Any opinions expressed are those of the fund manager. They should not be viewed as a Over the 12 months ended 15 October 2015, the Aviva Investors guarantee of a return from an investment in the funds. The content of the commentary should Strategic Bond Fund (share class 1) delivered a total return of not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as 2.31 per cent, net of fees. The Fund’s peer group, the Investment well as up. Investors may not get back the original amount invested. Association’s Sterling Strategic Bond sector generated an average return of 1.26 per cent. Sterling corporate bonds posted positive returns, underpinned by Material Portfolio Changes a sharp rise in underlying UK government debt as plummeting oil Purchases Sales prices helped push UK inflation to its lowest on record, and as the European Central Bank began ‘quantitative easing’. Demand for UK Treasury 3.75% 07/09/2021 UK Treasury 4.75% 07/09/2015 gilts was also boosted by global market turbulence brought on UK Treasury 5.00% 07/03/2018 UK Treasury 4.50% 07/12/2042 by a prolonged commodity slump, slowing growth in China and an exodus from emerging-market assets which parked a flight UK Treasury 1.75% 22/01/2017 UK Treasury 5.00% 07/03/2025 to ‘safe-haven’ assets. However, credit spreads – the difference UK Treasury 4.50% 07/12/2042 Telecom Italia SpA 6.38% 24/06/2019 between government and corporate bond yields – widened UK Treasury 5.00% 07/03/2025 CPUK Finance Ltd. 11.63% 28/02/2018 as investors grew more concerned about companies’ ability to repay debt amid a surge in global bond issuance. The uncertainty Koninklijke KPN NV, FRN 6.88% 14/03/2073 AA Bond Co. Ltd. 9.50% 31/07/2019 generated by the prolonged negotiations between Greece and UK Treasury 4.00% 07/09/2016 SSE plc, FRN 5.45% Perpetual its creditors also weighed on credit markets. Volkswagen Financial Services NV 2.00% Fund outperformance versus its peer group was partly due to UK Treasury 2.00% 22/01/2016 23/10/2015 the Fund’s defensive positioning which helped protect returns at Cable Communications Systems NV 7.50% times of high market turmoil. Stakes in selective financial services AA Bond Co. Ltd. 5.50% 31/07/2043 01/11/2020 companies like Barclays Bank also contributed to performance. A position in Imperial Tobacco served the Fund well as rumours Telecom Italia SpA 5.88% 19/05/2023 Stagecoach Group plc 5.75% 16/12/2016 of a takeover by the higher-rated Japan Tobacco boosted prices. Bonds issued by Veolia– a French electricity provider – benefitted from the sharp rally in euro zone government bonds. Within the high-yield segment of the portfolio, our holdings of Keepmoat, a UK public and private homebuilder and property services provider, especially aided outperformance as the companies’ bonds rallied sharply after it was awarded two contracts to build more than 100 new homes in Nottingham. A stake in Yioula, a Greek glass manufacturer, also did well as the company benefitted from resolution of the standoff between Greece and its creditors. High-yield, dollar-denominated securities issued by investment-grade rated Italian energy giant Enel also aided returns while positions in Telecom Italia benefitted from a sharp rally in ‘peripheral’ euro zone government bonds. A stake in Odeon bonds also appreciated after the cinema operator’s owners put the company up for sale. Holdings in luxury car maker Jaguar Land Rover also performed strongly throughout the reporting period. The main detractor from performance was a position in debt issued by Tesco as an accounting scandal and an intense price war between supermarkets caused the company’s bonds to sell off.

222 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

AVIVA INVESTORS STRATEGIC BOND FUND (CONTINUED)

Synthetic Risk and Reward Indicator Lower risk Higher risk

Typically lower rewards Typically higher rewards 1 2 3 4 5 6 7 The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk number has been based on the historic volatility of the asset classes appropriate to the Fund. – This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the Fund. – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. – Bond values are affected by changes in interest rates, and the bond issuer’s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. – The value of investments will be affected by changes in exchange rates. – Where a third party appointed to manage transactions or ensure the safe keeping of assets fails in their duty a loss may occur. – Financial derivatives may only require a low initial deposit relative to the asset exposure, a relatively small price movement in the underlying asset may result in substantial losses to the Fund. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 223 Aviva Investors Strategic Bond Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13 4,546 6,610,876 68.77 Class 1 2010 66.35 60.62

15.10.14 5,160 7,248,322 71.19 2011 65.57 58.61

15.10.15 4,030 5,692,906 70.80 2012 68.42 60.96

Class 2 15.10.13 33,458 32,312,769 103.54 2013 70.21 67.52

15.10.14 126,663 118,167,935 107.19 2014 72.70 70.22

15.10.15 218,582 205,046,770 106.60 2015** 74.23 70.99

Class 3 15.10.13 4 3,000 138.12 Class 2 2010 100.00 91.34

15.10.14** N/A N/A N/A 2011 98.77 88.32

* Valued at bid market prices. 2012 103.11 91.87 ** Up to 22 January 2014 (date share class closed). 2013 105.80 101.74

2014 109.55 105.83 Net Asset Value – Accumulation Shares 2015** 111.88 106.97 Net asset value* Shares Pence per Class 3 2010 133.45 121.89 Share class As at £000 in issue share 2011 131.73 117.86 Class 3 15.10.13 106,997 60,675,403 176.34 2012 137.59 122.52 15.10.14 119,488 63,171,744 189.15 2013 141.21 135.78 15.10.15 123,722 63,474,817 194.91

* Valued at bid market prices. 2014*** 142.77 141.26 * Valued at mid market prices. ** Up to 15 October 2015. *** Up to 22 January 2014 (date share class closed).

Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* Share class year (p) (p) Class 3 2010 147.23 129.27

2011 150.82 136.49

2012 169.59 143.95

2013 180.26 168.85

2014 192.34 180.32

2015** 199.25 192.32

* Valued at mid market prices. ** Up to 15 October 2015.

Ongoing Charges Figure* Share class 15.10.15 15.10.14 Class 1 1.13% 1.13%

Class 2 0.63% 0.63%

Class 3 0.33% 0.33%

* The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously.

224 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

INVESTMENT PERFORMANCE (CONTINUED)

Revenue Record – Income Shares Revenue Record – Accumulation Shares The revenue record table below shows the net distribution rates The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment per calendar year on a payment date basis for an investment made on 4 January 2010. made on 4 January 2010.

Calendar Net revenue Per £1,000 Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Share class year per share (p) invested (£) Class 1 2010 3.0334 50.04 Class 3 2010 7.5593 58.48

2011 2.5744 42.47 2011 6.8234 52.78

2012 2.7084 44.68 2012 7.4854 57.91

2013 1.9927 32.87 2013 6.1020 47.20

2014 2.0832 34.36 2014 6.6064 51.11

2015* 2.1107 34.82 2015* 6.9417 53.70

Class 2 2010 4.8634 53.25 * Up to 15 December 2015 (the final distribution payment date).

2011 4.1830 45.80

2012 4.3913 48.08

2013 3.4212 37.46

2014 3.5710 39.10

2015* 3.6199 39.63

Class 3 2010 6.9816 57.28

2011 5.9911 49.15

2012 6.2812 51.53

2013 4.9312 40.46

2014** 1.4440 11.85

* Up to 15 December 2015 (the final distribution payment date). ** Up to 22 January 2014 (date share class closed).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 225 Aviva Investors Strategic Bond Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Government Bonds 20.83% (14.80%) South Africa 0.20% (0.33%) Transnet SOC Ltd. 13.50% 18/04/2028 ZAR 12,000,000 701 0.20 701 0.20 United Kingdom 16.80% (10.30%) UK Treasury 2.00% 22/01/2016 GBP 11,000,000 11,045 3.19 UK Treasury 4.00% 07/09/2016 GBP 11,000,000 11,343 3.27 UK Treasury 1.75% 22/01/2017 GBP 12,000,000 12,200 3.52 UK Treasury 5.00% 07/03/2018 GBP 11,000,000 12,176 3.52 UK Treasury 3.75% 07/09/2021 GBP 10,000,000 11,424 3.30 58,188 16.80 United States of America 3.83% (4.17%) US Treasury Inflation Indexed 0.38% 15/07/2023 USD 10,000,000 6,589 1.90 US Treasury Inflation Indexed 0.64% 15/01/2024 USD 10,000,000 6,661 1.93 13,250 3.83 Government Bonds total 72,139 20.83 Corporate Bonds 70.86% (76.49%) Australia 2.72% (0.50%) BHP Billiton Finance Ltd., FRN 0.00% 22/10/2077 GBP 2,179,000 2,220 0.64 BHP Billiton Finance USA Ltd., FRN 0.00% 19/10/2075 USD 3,733,000 2,447 0.71 Goodman Australia Finance Pty. Ltd. 9.75% 16/07/2018 GBP 4,000,000 4,762 1.37 9,429 2.72 Canada 0.87% (0.00%) Valeant Pharmaceuticals International, Inc. 4.50% 15/05/2023 EUR 4,500,000 3,007 0.87 3,007 0.87 Cayman Islands 0.62% (0.53%) ERC Ireland Finance Ltd., FRN 6.16% 15/08/2016§ EUR 450,000 – – THPA Finance Ltd., Series B 8.24% 15/03/2028 GBP 1,805,000 2,163 0.62 2,163 0.62 Finland 0.00% (0.77%) France 10.16% (8.09%) AXA SA, FRN 5.63% 16/01/2054 GBP 5,000,000 5,013 1.45 Credit Agricole SA, FRN 7.50% Perpetual GBP 4,000,000 3,882 1.12 Electricite de France SA, FRN 6.00% Perpetual GBP 5,000,000 4,983 1.44 Horizon Holdings I SASU 7.25% 01/08/2023 EUR 2,258,000 1,700 0.49 Lafarge SA 10.00% 30/05/2017 GBP 3,000,000 3,342 0.97 Orange SA, FRN 5.88% Perpetual GBP 5,000,000 5,069 1.46 RCI Banque SA 3.25% 25/04/2018 GBP 5,100,000 5,210 1.50 TOTAL SA, FRN 2.63% Perpetual EUR 4,500,000 2,978 0.86 Veolia Environnement SA, FRN 4.85% Perpetual GBP 3,000,000 3,022 0.87 35,199 10.16 Germany 1.69% (1.79%) Paternoster Holding III GmbH 8.50% 15/02/2023 EUR 3,000,000 2,050 0.59 Pfleiderer GmbH 7.88% 01/08/2019 EUR 5,000,000 3,805 1.10 5,855 1.69 Hong Kong 0.63% (0.00%) CITIC Ltd., FRN 8.62% Perpetual USD 3,000,000 2,181 0.63 2,181 0.63 Ireland 1.20% (1.04%) Swiss Reinsurance Co. Ltd., FRN 6.37% 01/09/2024 USD 6,300,000 4,154 1.20 4,154 1.20

226 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Italy 3.19% (3.91%) Enel SpA, FRN 8.75% 24/09/2073 USD 9,000,000 6,741 1.95 Telecom Italia SpA 5.88% 19/05/2023 GBP 4,000,000 4,294 1.24 11,035 3.19 Jersey 3.31% (4.86%) AA Bond Co. Ltd. 6.27% 02/07/2043 GBP 3,000,000 3,591 1.04 AA Bond Co. Ltd. 5.50% 31/07/2043 GBP 4,500,000 4,249 1.23 CPUK Finance Ltd. 7.00% 28/02/2042 GBP 2,500,000 2,515 0.72 Galaxy Finco Ltd. 7.88% 15/11/2021 GBP 1,150,000 1,122 0.32 11,477 3.31 Luxembourg 2.13% (6.20%) Altice Luxembourg SA 7.25% 15/05/2022 EUR 6,000,000 4,255 1.23 Galapagos Holding SA 7.00% 15/06/2022 EUR 2,500,000 1,668 0.48 LSF9 Balta Issuer SA 7.75% 15/09/2022 EUR 1,924,000 1,440 0.42 7,363 2.13 Mexico 1.05% (1.26%) America Movil SAB de CV, FRN 6.37% 06/09/2073 GBP 3,500,000 3,644 1.05 3,644 1.05 Netherlands 6.52% (9.36%) Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 4.63% 23/05/2029 GBP 2,500,000 2,538 0.73 Glasstank BV 8.50% 15/05/2019 EUR 6,000,000 4,116 1.19 Koninklijke KPN NV, FRN 6.88% 14/03/2073 GBP 5,000,000 5,169 1.49 Petrobras Global Finance BV 5.38% 01/10/2029 GBP 2,300,000 1,482 0.43 Samvardhana Motherson Automotive Systems Group BV 4.13% 15/07/2021 EUR 1,578,000 1,070 0.31 Telefonica Europe BV, FRN 6.75% Perpetual GBP 6,000,000 6,186 1.79 UPC Holding BV 6.75% 15/03/2023 EUR 2,500,000 2,005 0.58 22,566 6.52 Spain 0.00% (0.62%) Switzerland 0.44% (0.00%) UBS Group AG, FRN 6.87% Perpetual USD 2,400,000 1,518 0.44 1,518 0.44 United Kingdom 30.91% (35.15%) Anglian Water Osprey Financing plc 7.00% 31/01/2018 GBP 3,000,000 3,243 0.94 Aviva plc, FRN 5.13% 04/06/2050† GBP 4,500,000 4,208 1.21 Care UK Health & Social Care plc, FRN 5.58% 15/07/2019 GBP 2,375,000 2,172 0.63 Cattles Ltd. 7.13% 05/07/2017§ GBP 500,000 12 – Debenhams plc 5.25% 15/07/2021 GBP 3,000,000 2,960 0.85 Eversholt Funding plc 6.70% 22/02/2035 GBP 1,900,000 2,470 0.71 F&C Finance plc 9.00% 20/12/2016 GBP 1,840,000 1,971 0.57 First Hydro Finance plc 9.00% 31/07/2021 GBP 1,100,000 1,453 0.42 Firstgroup plc 6.88% 18/09/2024 GBP 3,200,000 3,843 1.11 Greene King Finance plc, Series B1 5.70% 15/12/2034 GBP 5,477,000 5,114 1.48 HSBC Holdings plc 6.75% 11/09/2028 GBP 3,500,000 4,206 1.21 Imperial Tobacco Finance plc 9.00% 17/02/2022 GBP 3,000,000 3,992 1.15 Imperial Tobacco Finance plc 4.25% 21/07/2025 USD 3,893,000 2,601 0.75 Investec Bank plc 9.63% 17/02/2022 GBP 3,000,000 3,585 1.04 Jaguar Land Rover Automotive plc 5.00% 15/02/2022 GBP 2,750,000 2,786 0.80 Keystone Financing plc 9.50% 15/10/2019 GBP 2,500,000 2,624 0.76 Legal & General Group plc, FRN 10.00% 23/07/2041 GBP 4,000,000 5,204 1.50 Lloyds Bank plc, FRN 10.75% 16/12/2021 GBP 4,000,000 4,378 1.26 Lloyds Bank plc 7.63% 22/04/2025 GBP 1,000,000 1,267 0.37 Matalan Finance plc 6.88% 01/06/2019 GBP 3,513,000 2,931 0.85 Mitchells & Butlers Finance plc, FRN, Series D1 2.71% 15/06/2036 GBP 3,600,000 3,204 0.93 New Look Senior Issuer plc 8.00% 01/07/2023 GBP 4,000,000 3,767 1.09 Paragon Group of Cos. plc (The), FRN 3.73% 20/04/2017 GBP 4,000,000 3,960 1.14

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 227 Aviva Investors Strategic Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 30.91% (35.15%) (continued) Principality Building Society, FRN 1.59% 08/07/2016 GBP 1,350,000 1,309 0.38 Priory Group No. 3 plc 8.88% 15/02/2019 GBP 2,500,000 2,582 0.75 Reed Elsevier Investments plc 2.75% 01/08/2019 GBP 5,500,000 5,625 1.62 RSA Insurance Group plc, FRN 9.37% 20/05/2039 GBP 5,500,000 6,440 1.86 Silverstone Master Issuer plc, FRN 5.06% 21/01/2055 GBP 3,000,000 3,107 0.90 Spirit Issuer plc, FRN 5.47% 28/12/2034 GBP 1,900,000 1,895 0.55 Standard Chartered plc 5.13% 06/06/2034 GBP 2,414,000 2,173 0.63 Travis Perkins plc 4.38% 15/09/2021 GBP 2,401,000 2,434 0.70 Virgin Media Secured Finance plc 5.50% 15/01/2025 GBP 6,750,000 6,546 1.89 William Hill plc 4.25% 05/06/2020 GBP 3,000,000 2,982 0.86 107,044 30.91 United States of America 5.42% (2.41%) Apple, Inc. 3.45% 09/02/2045 USD 1,952,000 1,089 0.31 AT&T, Inc. 4.25% 01/06/2043 GBP 3,600,000 3,317 0.96 Chemours Co. (The) 6.13% 15/05/2023 EUR 6,000,000 3,192 0.92 Citigroup, Inc. 4.50% 03/03/2031 GBP 3,000,000 3,081 0.89 DIRECTV Holdings LLC 4.38% 14/09/2029 GBP 4,000,000 4,083 1.18 Frontier Communications Corp. 8.88% 15/09/2020 USD 1,000,000 655 0.19 Sprint Corp. 7.25% 15/09/2021 USD 6,000,000 3,373 0.97 18,790 5.42 Corporate Bonds total 245,425 70.86 Swaps 0.00% (0.00%) Credit Default Swap Buy France Government Bond OAT 4.25% 25/04/2019 20/12/2016 USD 5,600,000 (9) – Swaps total (9) – Forward Currency Contracts 0.08% ((0.50)%) Buy GBP 31,973,848 sell EUR 43,248,000 dated 14/01/2016 (20) (0.01) Buy GBP 37,738,011 sell USD 57,958,000 dated 14/01/2016 297 0.09 Buy GBP 716,968 sell ZAR 14,876,000 dated 14/01/2016 (5) – Buy USD 34,379 sell ARS 367,000 dated 14/01/2016 – – Forward Currency Contracts total 272 0.08 Futures (0.01)% ((0.31)%) US 10 Year Note 21/12/2015 USD (38) (38) (0.01) US Ultra Bond 21/12/2015 USD (9) (4) – Futures total (42) (0.01) Liquidity Stocks 8.57% (3.94%) Aviva Investors Sterling Liquidity Fund◊ GBP 26,200,000 26,200 7.56 Liquidity Stocks total 26,200 7.56

Investment assets 343,985 99.32 Net other assets 2,349 0.68 Net assets 346,334 100.00

All holdings are debt securities denominated in Sterling and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. § Security is currently in default. † A related party to the Fund. ◊ Investments managed and advised by a related party of the Fund.

228 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Bond Rating

Market Value £000 % of Net Assets Bonds – Investment grade* 177,335 51.19 – Below investment grade 127,087 36.71 – Unrated 13,142 3.79 Debt securities total 317,564 91.69

* Investment grade refers to the quality of a company’s credit. A rating of ‘BBB’ or higher is considered an investment grade issue.

Counterparty Exposure

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.15 £000 £000 £000 £000

Barclays 3,616 – – 3,616

Citibank N.A. – (25) – (25)

JPMorgan – – (4,102) (4,102)

Société Générale Paris – 297 – 297

Total 3,616 272 (4,102) (214)

Credit default Forward currency Counterparty swaps contracts Futures contracts Total 15.10.14 £000 £000 £000 £000

Barclays 3,518 (3) – 3,515

JPMorgan – – (18,374) (18,374)

Goldman Sachs – 29 – 29

Morgan Stanley – (45) – (45)

Royal Bank of Canada – 44 – 44

UBS – (1,245) – (1,245)

Total 3,518 (1,243) (18,374) (16,099)

Collateral There is £nil (2014: £nil) collateral held on the above derivatives.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 229 Aviva Investors Strategic Bond Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital (losses)/gains 2 (3,208) 4,849

Revenue 3 15,049 9,237

Expenses 4 (1,629) (915)

Net revenue before taxation 13,420 8,322

Taxation 5 – –

Net revenue after taxation 13,420 8,322

Total return before distributions 10,212 13,171

Finance costs: Distributions 6 (13,420) (8,322)

Change in net assets attributable to shareholders from investment activities (3,208) 4,849

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 251,311 145,005

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 101,831 102,306

Amounts payable on cancellation of shares (8,010) (4,894)

93,821 97,412

Dilution levy 5 –

Change in net assets attributable to shareholders from investment activities (see above) (3,208) 4,849

Retained distribution on accumulation shares 4,405 4,045

Closing net assets attributable to shareholders 346,334 251,311

230 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 344,061 239,937

Debtors 7 6,259 4,498

Cash and bank balances 8 4,889 13,613

Total other assets 11,148 18,111

Total assets 355,209 258,048

LIABILITIES

Investment liabilities (76) (2,638)

Creditors 9 (6,835) (3,085)

Distribution payable on income shares (1,964) (1,014)

Total other liabilities (8,799) (4,099)

Total liabilities (8,875) (6,737)

Net assets attributable to shareholders 346,334 251,311

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 231 Aviva Investors Strategic Bond Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital (losses)/gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital (losses)/gains on investments during the year comprise:

Currency losses (1,070) (600)

Derivative contracts gains/(losses) 249 (1,363)

Expenses relating to the purchase and sale of investments (6) (6)

Forward currency contracts gains 4,347 2,169

Non-derivative securities (losses)/gains (6,728) 4,649

Net capital (losses)/gains (3,208) 4,849

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 19 39

Interest on debt securities 15,295 9,358

Interest on derivatives (314) (160)

UK dividends 49 –

Total revenue 15,049 9,237

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 1,349 772

Registration fees 191 82

1,540 854

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 32 21

Safe custody fee 28 20

60 41

Other expenses:

Audit fee* 10 11

Printing & postage expenses 4 3

Statement fees 15 6

29 20

Total expenses 1,629 915

* The audit fee was £8,241 (2014: £8,200) net of VAT.

232 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Total current tax for the year (see note 5.b) – – b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 13,420 8,322 Corporation tax at 20% 2,684 1,664 Effects of: Tax deductible on interest distributions (2,684) (1,664) (2,684) (1,664) Current tax charge (see note 5.a) – – Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil).

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Gross interest distribution for the three months ended 15 January 3,042 1,462 Gross interest distribution for the three months ended 15 April 3,288 2,070 Gross interest distribution for the three months ended 15 July 3,530 2,688 Gross interest distribution for the three months ended 15 October 3,884 2,503 13,744 8,723 Add: Revenue deducted on cancellation of shares 43 20 Deduct: Revenue received on issue of shares (367) (421) Finance costs: Distributions 13,420 8,322 Details of the distributions per share are set out in the distribution tables on pages 237 and 238.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 233 Aviva Investors Strategic Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 5,287 3,980 Amounts receivable on issue of shares 968 518 Sales awaiting settlement 4 – Total debtors 6,259 4,498

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 145 1,035 Cash and bank balances 4,744 9,878 Deposits – 2,700 Total cash and bank balances 4,889 13,613

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 256 170 Amounts payable for cancellation of shares 19 47 Income tax withheld on distributions 1,365 475 Purchases awaiting settlement 5,195 2,393 Total creditors 6,835 3,085

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £197,000 (2014: £131,000) and registration fees was £29,000 (2014: £16,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £4,545,000 (2014: £4,075,000). The amount outstanding at the year end was £1,209,000 (2014: £999,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Income shares) – (1,005,582) 1,005,582 ACD and related parties (share class 2 Income shares) 5,285,065 4,571,909 713,156 ACD and related parties (share class 3 Accumulation shares) 63,474,817 303,073 63,171,744 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

234 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.50% Class 3: 0.30% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 224. The distributions per share class are given in the distribution tables on pages 237 and 238. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.08% (2014: 0.10%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Global exposure The ACD must ensure that its global exposure relating to the derivative and forward transactions held in the sub-fund does not exceed the net value of the Scheme Property. The global exposure must be calculated on at least a daily basis. Exposure must be calculated taking into account the current value of the underlying assets, the counterparty risk, future market movements and the time available to liquidate the position. For the Aviva Investors Strategic Bond Fund, and ACD uses absolute VAR (Value at Risk). Value at Risk means a measure of the potential loss due to the Company due to market risk. More particularly, Value at Risk measures the potential loss at a given confidence level (probability) over a specific time period under normal market conditions. The ACD has selected these methods as being appropriate, taking into account the investment strategy of the Fund, the types and complexities of the Derivatives and forward transactions used and the proportion of the Scheme Property comprising Derivatives and forward transactions. Specific details of the measures are as follows: Calculation Model: Monte Carlo Asymmetric Stable with skewed T-Copula Confident Level: 99% Holding Period: 1 month Data History: 500 days of daily data Lowest: -1.74% Highest: -1.09% Mean Average: -1.39%

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 41,755 235,029 75,662 352,446 Argentine Peso 25 – – 25 Euro 125 31,285 762 32,172 South African Rand – 700 39 739 US Dollar 1,725 38,009 225 39,959 Financial Liabilities Sterling – – (6,398) (6,398) Argentine Peso – – (22) (22) Euro – – (31,994) (31,994) South African Rand – – (721) (721) US Dollar – – (39,872) (39,872) Total 43,630 305,023 (2,319) 346,334

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 235 Aviva Investors Strategic Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 33,979 159,017 123,832 316,828 Argentine Peso 27 – 27 54 Australian Dollar 2,379 – 2,378 4,757 Euro 2,057 34,740 38,685 75,482 South African Rand – 821 871 1,692 US Dollar – 19,931 20,360 40,291 Financial Liabilities Sterling – – (64,979) (64,979) Argentine Peso – – (51) (51) Australian Dollar – – (4,734) (4,734) Euro – – (76,243) (76,243) South African Rand – – (1,658) (1,658) US Dollar – – (40,128) (40,128) Total 38,442 214,509 (1,640) 251,311 The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR. The floating rate on Euro FRNs is linked to EURIBOR. The floating rate on US Dollar FRNs is linked to LIBOR.

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Sterling 10.55 4.53 12 11 Euro 11.46 8.23 6 6 South African Rand 10.62 10.35 13 13 US Dollar 11.88 3.10 22 22 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs Due to the nature of the investments held, no transaction costs or taxes were incurred on the Fund’s purchases or sales during the current year ended 15 October 2015 (2014: £nil). The total purchases for the year amounted to £236,793,000 (2014: £216,737,000) and the total sales amounted to £140,815,000 (2014: £123,669,000).

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

236 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Strategic Bond Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the three months ended 15 October 2015

Final distribution Final distribution Gross Income Net payable paid Income shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.6911 0.1382 0.5529 – 0.5529 0.4771 Group 2 0.2996 0.0599 0.2397 0.3132 0.5529 0.4771 Share Class 2 Group 1 1.1781 0.2356 0.9425 – 0.9425 0.8286 Group 2 0.5824 0.1165 0.4659 0.4766 0.9425 0.8286

Final distribution Final distribution Gross Income Net payable paid Accumulation shares revenue tax revenue Equalisation 15 December 2015 15 December 2014 Share Class 3 Group 1 2.2826 0.4565 1.8261 – 1.8261 1.5650 Group 2 0.8015 0.1603 0.6412 1.1849 1.8261 1.5650

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the three months ended 15 July 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 0.6583 0.1317 0.5266 – 0.5266 0.4872 Group 2 0.4693 0.0939 0.3754 0.1512 0.5266 0.4872 Share Class 2 Group 1 1.1290 0.2258 0.9032 – 0.9032 0.8422 Group 2 0.5389 0.1078 0.4311 0.4721 0.9032 0.8422

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 September 2015 15 September 2014 Share Class 3 Group 1 2.1741 0.4348 1.7393 – 1.7393 1.5735 Group 2 1.0373 0.2075 0.8298 0.9095 1.7393 1.5735

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 237 Aviva Investors Strategic Bond Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the three months ended 15 April 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.6494 0.1299 0.5195 – 0.5195 0.5212 Group 2 0.3015 0.0603 0.2412 0.2783 0.5195 0.5212 Share Class 2 Group 1 1.1150 0.2230 0.8920 – 0.8920 0.8918 Group 2 0.5439 0.1088 0.4351 0.4569 0.8920 0.8918

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 June 2015 15 June 2014 Share Class 3 Group 1 2.1304 0.4261 1.7043 – 1.7043 1.6422 Group 2 1.2394 0.2479 0.9915 0.7128 1.7043 1.6422

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the three months ended 15 January 2015

Interim distribution Interim distribution Gross Income Net paid paid Income shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.6396 0.1279 0.5117 – 0.5117 0.5977 Group 2 0.3635 0.0727 0.2908 0.2209 0.5117 0.5977 Share Class 2 Group 1 1.1028 0.2206 0.8822 – 0.8822 1.0084 Group 2 0.7316 0.1463 0.5853 0.2969 0.8822 1.0084 Share Class 3 Group 1 N/A N/A N/A N/A N/A 1.4440 Group 2 N/A N/A N/A N/A N/A 1.4440

Interim distribution Interim distribution Gross Income Net paid paid Accumulation shares revenue tax revenue Equalisation 15 March 2015 15 March 2014 Share Class 3 Group 1 2.0900 0.4180 1.6720 – 1.6720 1.8257 Group 2 1.2579 0.2516 1.0063 0.6657 1.6720 1.8257

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

238 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors European Equity Fund

AVIVA INVESTORS EUROPEAN EQUITY FUND

INVESTMENT OBJECTIVE We assess investment opportunities on each company’s individual merits rather than on a market view. Nonetheless Long term capital appreciation. we are cautiously optimistic on the medium-term prospects for European equities. US economic indicators have been reasonably encouraging and the latest survey evidence suggests INVESTMENT POLICY the European outlook is improving too, supported by stimulus from the European Central Bank. This environment should be Diversified investment within and across European equity supportive for European companies. markets. Allocations to individual markets will vary over time. Individual equity selections will be based on price and long term November 2015 total return prospects. Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Market data – Bloomberg. The Fund may invest in any of the following financial instruments Any opinions expressed are those of the fund manager. They should not be viewed as a in order to achieve its investment objective: transferable securities, guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not money market instruments, units in collective investment a guide to the future. The value of an investment and any income from it can go down as well as schemes, deposits and derivatives and forward transactions. up. Investors may not get back the original amount invested. “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its Issue, operation and trading. All copyright in the index values and FUND MANAGER’S REPORT constituent list vests in FTSE. Over the 12 months ended 15 October 2015, the Aviva Investors European Equity Fund delivered a total return of 18.39 per cent (share class A), net of fees, compared to an average return of Material Portfolio Changes 12.43 per cent for its peer group the Investment Association Purchases Sales Europe excluding UK sector. The Fund’s benchmark, the FTSE® Sanofi BNP Paribas SA AW Europe ex UK Index, returned 6.15 per cent. BNP Paribas SA Roche Holding AG Several of the Fund’s holdings in smaller healthcare-related companies, including 4D Pharma, Genmab and Oxford Roche Holding AG ABB Ltd. BioMedica, performed well. Stakes in Irish companies Ryanair and ASML Holding NV ING Groep NV, CVA Paddy Power also helped relative performance. Budget airline Ryanair have benefited from higher passenger numbers over the Bureau Veritas SA Azimut Holding SpA summer as the strength of sterling boosted demand for short- Kone OYJ 'B' Bayerische Motoren Werke AG haul flights amongst UK consumers, while oil price weakness reduced fuel costs. Bookmaker Paddy Power announced a Société Générale SA Volkswagen AG (Non-Voting) Preference merger with UK-based Betfair, creating the world’s largest Biocartis Group NV Genmab A/S online gambling company. The Fund’s holding in Swiss banking- software firm Temenos performed well on strong year-on-year SPIE SA UBS Group AG growth in license revenues. Continental AG Société Générale SA The Fund’s relatively limited exposure to consumer staples was detrimental because this sector outperformed, as it often does during periods of market turbulence. The Fund’s holding Synthetic Risk and Reward Indicator in Coface detracted as the French credit insurance company delivered weaker results than analysts expected due to higher Lower risk Higher risk claims in emerging countries and the loss of a contract with the French state. Typically lower rewards Typically higher rewards There were no large structural changes to the Fund but we have scaled back holdings in healthcare stocks exposed to the 1 2 3 4 5 6 7 adverse pricing outlook in the US notably Sanofi, Novo Nordisk The Fund has been allocated a risk number based on the historic volatility of and Fresenius. We have also further reduced exposure to banks its share price. Where insufficient share price information is available, the risk number has been based on the historic volatility of the asset classes appropriate and insurance companies through selling stakes in ING and to the Fund. BNP. We acquired a new position in semiconductor equipment – This indicator is based on historical data, calculated using European Union supplier ASML and used weakness in the auto sector caused rules, and may not be a reliable indication of the future risk profile of the by the Volkswagen scandal to buy a stake in auto parts maker Fund. Continental. – The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean ‘risk free’. – The value of investments will be affected by changes in exchange rates. – Full information on the risks applicable to the Fund is detailed in the Prospectus.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 239 Aviva Investors European Equity Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Ongoing Charges Figure* Net asset value* Shares Pence per Share class 15.10.15 15.10.14 Share class As at £000 in issue share Class 1 1.00% 1.00% Class 1 (Acc) 15.10.13 115,591 77,873,783 148.43 Class 2 0.85% 0.86% 15.10.14 101,198 70,960,046 142.61 Class 3 0.35% 0.36% 15.10.15 109,092 64,198,426 169.93 Class A 1.65% 1.66% Class 2 (Acc) 15.10.13 1,421 616,988 230.32 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges 15.10.14 2,851 1,286,685 221.61 to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 15.10.15 7,370 2,786,918 264.46 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. Class 3 15.10.13 18,229 7,429,267 245.37

15.10.14 14,697 6,270,711 234.37

15.10.15 16,138 5,822,213 277.18 Revenue Record

Class A (Acc) 15.10.13 15,259 10,300,042 148.14 The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment 15.10.14 12,647 8,943,894 141.40 made on 4 January 2010. 15.10.15 12,335 7,368,603 167.40 Calendar Net revenue Per £1,000 * Valued at bid market prices. Share class year per share (p) invested (£) Class 1 (Acc) 2010 2.0039 17.30

Share Price Record 2011 1.4452 12.48

Calendar Highest price* Lowest price* 2012 1.6458 14.21 Share class year (p) (p) 2013 1.6117 13.92 Class 1 (Acc) 2010 120.90 99.23 2014 0.7553 6.52 2011 129.76 93.79 2015* 1.2322 10.64 2012 123.80 97.36 Class 2 (Acc) 2010 3.5226 19.72 2013 154.22 123.90 2011 2.4838 13.90 2014 160.57 138.31 2012 2.7939 15.64 2015** 183.04 155.24 2013 2.8264 15.82 Class 2 (Acc) 2010 187.01 153.26 2014 1.6227 9.08 2011 200.71 145.16 2015* 2.3923 13.39 2012 191.86 150.84 Class 3 2010* 4.7562 23.44 2013 239.37 192.02 2011 3.7149 18.31 2014 249.29 214.92 2012 4.0318 19.87 2015** 284.64 241.31 2013 4.1725 20.57 Class 3 2010 212.12 172.23 2014 2.9249 14.42 2011 222.95 160.62 2015* 3.8644 19.05 2012 207.16 164.90 Class A (Acc) 2010 1.4269 12.06 2013 255.26 207.35 2011 0.7143 6.03 2014 266.09 227.24 2012 0.9091 7.68 2015** 301.68 255.42 2013 0.7390 6.24 Class A (Acc) 2010 123.38 101.13 2014 0.0000 0.00 2011 131.63 94.90 2015* 0.1001 0.85 2012 124.20 98.07 * Up to 15 December 2015 (the final distribution payment date). 2013 153.72 124.28

2014 159.84 137.14

2015** 180.91 153.69

* Valued at mid market prices. ** Up to 15 October 2015.

240 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors European Equity Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Equities 97.55% (97.52%) Austria 0.00% (0.97%) Belgium 5.08% (2.09%) Ablynx NV EUR 132,420 1,116 0.77 Biocartis Group NV EUR 237,562 2,127 1.47 Bone Therapeutics SA EUR 102,048 1,571 1.08 Celyad EUR 12,694 305 0.21 Ontex Group NV EUR 113,576 2,245 1.55 7,364 5.08 Denmark 7.96% (6.53%) Bavarian Nordic A/S DKK 33,870 846 0.58 Chr Hansen Holding A/S DKK 52,889 1,878 1.30 Genmab A/S DKK 49,694 2,992 2.06 Novo Nordisk A/S ‘B’ DKK 113,298 3,909 2.70 Novozymes A/S ‘B’ DKK 70,707 1,905 1.32 11,530 7.96 Finland 1.69% (0.00%) Kone OYJ ‘B’ EUR 90,266 2,445 1.69 2,445 1.69 France 20.89% (18.02%) Abivax SA EUR 19,465 270 0.19 Amplitude Surgical SAS EUR 358,807 1,195 0.82 BNP Paribas SA EUR 36,859 1,471 1.01 Bureau Veritas SA EUR 164,723 2,411 1.66 Coface SA EUR 198,988 1,134 0.78 Essilor International SA EUR 25,887 2,072 1.43 Legrand SA EUR 82,362 2,869 1.98 OSE Pharma SA EUR 56,605 373 0.26 Pernod Ricard SA EUR 36,526 2,670 1.84 Publicis Groupe SA EUR 57,051 2,638 1.82 Rexel SA EUR 202,485 1,795 1.24 Sanofi EUR 55,774 3,619 2.50 Schneider Electric SE EUR 80,129 3,023 2.09 Sodexo SA EUR 28,543 1,578 1.09 SPIE SA EUR 161,560 1,901 1.31 TxCell SA EUR 32,468 151 0.10 Worldline SA EUR 68,946 1,113 0.77 30,283 20.89 Germany 18.95% (21.01%) Bayer AG EUR 54,546 4,378 3.02 Brenntag AG EUR 50,422 1,836 1.27 Continental AG EUR 13,848 2,053 1.42 Deutsche Boerse AG EUR 60,861 3,513 2.42 Fresenius SE & Co. KGaA EUR 56,281 2,408 1.66 Infineon Technologies AG EUR 220,070 1,787 1.23 Medigene AG EUR 198,460 897 0.62 MorphoSys AG EUR 9,886 412 0.28 SAP SE EUR 163,711 7,808 5.39 United Internet AG EUR 71,142 2,374 1.64 27,466 18.95 Ireland 6.72% (5.81%) Glanbia plc EUR 172,146 2,012 1.39 Kerry Group plc ‘A’ EUR 45,018 2,254 1.55 Malin Corp. plc EUR 108,876 863 0.60 Paddy Power plc EUR 27,944 2,015 1.39 Ryanair Holdings plc EUR 272,721 2,597 1.79 9,741 6.72

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 241 Aviva Investors European Equity Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Italy 3.96% (4.52%) Anima Holding SpA EUR 502,306 3,112 2.15 Cerved Information Solutions SpA EUR 311,492 1,541 1.06 Newron Pharmaceuticals SpA CHF 56,523 1,088 0.75 5,741 3.96 Luxembourg 0.69% (0.53%) Stabilus SA EUR 43,671 1,001 0.69 1,001 0.69 Netherlands 8.43% (5.60%) ASML Holding NV EUR 42,429 2,435 1.68 IMCD Group NV EUR 65,446 1,517 1.05 ING Groep NV, CVA EUR 126,067 1,184 0.82 Intertrust NV EUR 114,207 1,309 0.90 Kiadis Pharma NV EUR 88,147 716 0.49 Unilever NV, CVA EUR 173,616 5,062 3.49 12,223 8.43 Norway 0.07% (1.35%) Nordic Nanovector ASA NOK 90,093 108 0.07 108 0.07 Portugal 0.00% (0.77%) Spain 3.83% (4.25%) Amadeus IT Holding SA ‘A’ EUR 97,146 2,804 1.94 Bankinter SA EUR 541,106 2,744 1.89 5,548 3.83 Sweden 1.37% (0.00%) Coor Service Management Holding AB SEK 532,473 1,280 0.88 Tobii AB SEK 176,000 701 0.49 1,981 1.37 Switzerland 14.25% (20.69%) Basilea Pharmaceutica CHF 11,885 779 0.54 Cie Financiere Richemont SA CHF 57,770 3,230 2.23 Evolva Holding SA CHF 1,703,170 1,284 0.89 Roche Holding AG CHF 47,513 8,185 5.65 Syngenta AG CHF 14,827 2,936 2.02 Temenos Group AG CHF 149,329 4,234 2.92 20,648 14.25 United Kingdom 3.66% (5.38%) 4d pharma plc# GBP 118,418 876 0.60 Advanced Oncotherapy plc# GBP 7,848,474 530 0.37 Avacta Group plc# GBP 26,415,401 370 0.26 ImmuPharma plc# GBP 406,282 122 0.08 Oxford Biomedica plc GBP 11,016,178 822 0.57 Oxford Pharmascience Group plc# GBP 5,178,000 311 0.21 ReNeuron Group plc# GBP 5,507,392 220 0.15 Silence Therapeutics plc# GBP 170,654 371 0.26 Skyepharma plc# GBP 291,645 953 0.66 Verona Pharma plc# GBP 18,701,411 729 0.50 5,304 3.66 Equities total 141,383 97.55

Investment assets 141,383 97.55 Net other assets 3,552 2.45 Net assets 144,935 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. # Security traded on another regulated market.

242 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors European Equity Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains/(losses) 2 23,887 (5,582)

Revenue 3 2,743 2,677

Expenses 4 (1,452) (1,465)

Finance costs: Interest 6 – (28)

Net revenue before taxation 1,291 1,184

Taxation 5 (178) (434)

Net revenue after taxation 1,113 750

Total return before distributions 25,000 (4,832)

Finance costs: Distributions 6 (1,115) (774)

Change in net assets attributable to shareholders from investment activities 23,885 (5,606)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 131,393 150,500

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 3,850 1,985

Amounts payable on cancellation of shares (15,056) (16,043)

(11,206) (14,058)

Change in net assets attributable to shareholders from investment activities (see above) 23,885 (5,606)

Retained distribution on accumulation shares 863 557

Closing net assets attributable to shareholders 144,935 131,393

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 243 Aviva Investors European Equity Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 141,383 128,139

Debtors 7 1,092 1,226

Cash and bank balances 8 4,757 2,870

Total other assets 5,849 4,096

Total assets 147,232 132,235

LIABILITIES

Creditors 9 (2,121) (693)

Distribution payable on income shares (176) (149)

Total liabilities (2,297) (842)

Net assets attributable to shareholders 144,935 131,393

244 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors European Equity Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains/(losses)

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains/(losses) on investments during the year comprise:

Currency losses (483) (106)

Expenses relating to the purchase and sale of investments (3) (3)

Forward currency contracts losses – (1)

Non-derivative securities gains/(losses) 24,373 (5,472)

Net capital gains/(losses) 23,887 (5,582)

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 4 –

Overseas dividends 2,739 2,677

Total revenue 2,743 2,677

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 1,420 1,432

Registration fees 18 17

1,438 1,449

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 16 16

Safe custody fee 26 36

42 52

Other expenses:

Audit fee* 9 10

Printing & postage expenses 2 2

Statement fees 6 6

17 18

Total expenses 1,497 1,519

Less those expenses rebated by the ACD (45) (54)

Net expenses 1,452 1,465

* The audit fee was £7,726 (2014: £7,688) net of VAT.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 245 Aviva Investors European Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax suffered 178 434 Total current tax for the year (see note 5.b) 178 434 b Factors affecting current tax charge The tax assessed for the year is lower (2014: higher) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 1,291 1,184 Corporation tax at 20% 258 237 Effects of: Movement in excess expenses 290 285 Non-trade deficit – 5 Overseas dividends not subject to corporation tax (548) (526) Overseas tax suffered 178 434 Tax relief for overseas tax expensed – (1) (80) 197 Current tax charge (see note 5.a) 178 434 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £8,078,000 (2014: £6,629,000) creating a potential deferred tax asset of £1,616,000 (2014: £1,326,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 56 36 Distributions for the six months ended 15 October 1,035 706 1,091 742 Add: Revenue deducted on cancellation of shares 46 37 Deduct: Revenue received on issue of shares (22) (5) Finance costs: Distributions 1,115 774 Finance costs: Interest on bank overdrafts – 28 Total finance costs 1,115 802 Reconciliations of distributions for the year to net revenue after taxation Distributions for the year 1,115 774 Equalisation on conversions (2) (2) Revenue deficit transferred to capital – (22) Net revenue after taxation 1,113 750 Details of the distributions per share are set out in the distribution tables on page 250.

246 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors European Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 17 – Amounts receivable on issue of shares 33 6 Corporation tax recoverable 69 69 Overseas tax recoverable 321 453 Sales awaiting settlement 652 698 Total debtors 1,092 1,226

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 4,757 2,870

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 206 193 Amounts payable for cancellation of shares 384 303 Purchases awaiting settlement 1,531 197 Total creditors 2,121 693

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £182,000 (2014: £174,000) and registration fees was £18,000 (2014: £17,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £238,000 (2014: £105,000). The amount outstanding at the year end was £186,000 (2014: £69,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Accumulation shares) 98,500 13,608 84,892 ACD and related parties (share class 2 Accumulation shares) 263,496 193,954 69,542 ACD and related parties (share class 3 Income shares) 5,822,213 (448,498) 6,270,711 ACD and related parties (share class A Accumulation shares) 2,383,125 (421,225) 2,804,350 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 247 Aviva Investors European Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has four share classes: Classes 1 and A (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.00% Class 2: 0.70% Class 3: 0.30% Class A: 1.50% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 240. The distributions per share class are given in the distribution tables on page 250. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: £nil).

Currency exposures At the year end date, 95.18% (2014: 92.46%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be significantly affected by currency movements.

Net foreign currency assets

Monetary exposure Non monetary exposure Total £000 £000 £000

Currency 15.10.15 15.10.14 15.10.15 15.10.14 15.10.15 15.10.14 Danish Krone 266 – 11,530 8,576 11,796 8,576 Euro 1,181 1,106 100,724 82,866 101,905 83,972 Norwegian Krone – 1 108 – 108 1 Swedish Krona – 1 – – – 1 Swiss Franc 431 1,097 21,736 27,844 22,167 28,941 US Dollar – – 1,981 – 1,981 –

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date, 3.34% (2014: 2.18%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

248 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors European Equity Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 56,005 63,404 Commissions 63 88 Taxes 37 37 Total purchase costs 100 125 Gross purchases total 56,105 63,529 Analysis of total sale costs Gross sales before transaction costs 67,320 77,147 Commissions (85) (124) Total sale costs (85) (124) Total sales net of transaction costs 67,235 77,023

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 249 Aviva Investors European Equity Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 (Acc) Group 1 1.2322 – 1.2322 0.7553 Group 2 0.1761 1.0561 1.2322 0.7553 Share Class 2 (Acc) Group 1 2.1812 – 2.1812 1.6227 Group 2 0.3577 1.8235 2.1812 1.6227 Share Class 3 Group 1 3.0277 – 3.0277 2.3842 Group 2 0.3090 2.7187 3.0277 2.3842 Share Class A (Acc) Group 1 0.1001 – 0.1001 0.0000 Group 2 0.0000 0.1001 0.1001 0.0000

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 (Acc) Group 1 0.0000 – 0.0000 0.0000 Group 2 0.0000 0.0000 0.0000 0.0000 Share Class 2 (Acc) Group 1 0.2111 – 0.2111 0.0000 Group 2 0.0656 0.1455 0.2111 0.0000 Share Class 3 Group 1 0.8367 – 0.8367 0.5407 Group 2 0.7096 0.1271 0.8367 0.5407 Share Class A (Acc) Group 1 0.0000 – 0.0000 0.0000 Group 2 0.0000 0.0000 0.0000 0.0000

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

250 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

AVIVA INVESTORS INTERNATIONAL INDEX TRACKING FUND

INVESTMENT OBJECTIVE The prospects for international equities remain moderately favourable, despite recent setbacks. The economic landscape To track the total return (after charges) of the FTSE® World is improving in much of the ‘developed’ world and this should (ex UK) Index. enable companies to continue growing profits and hence dividends. Furthermore, with inflation subdued it looks like global monetary policy is set to stay extremely loose. But on a note of INVESTMENT POLICY caution, we are keeping a close eye on the Chinese slowdown which has the potential to sour the global economic outlook. To invest in international equities employing a combination of sampling and full replication strategies across the equity markets November 2015 which comprise the FTSE® World (ex UK) Index. Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Market data – Bloomberg. The Fund may invest in any of the following financial instruments Any opinions expressed are those of the fund manager. They should not be viewed as a in order to achieve its investment objective: transferable securities, guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not money market instruments, units in collective investment a guide to the future. The value of an investment and any income from it can go down as well as schemes, deposits and derivatives and forward transactions. up. Investors may not get back the original amount invested. “FTSE” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under Licence. FTSE does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright in the index values and FUND MANAGER’S REPORT constituent list vests in FTSE. Over the 12 months ended 15 October 2015, the Aviva Investors International Index Tracking Fund (share class 1) delivered a total return of 6.33 per cent net of fees. The Fund’s benchmark, Material Portfolio Changes the FTSE® World ex UK index, returned 9.68 per cent. The Purchases Sales sector average return generated by the Fund’s peer group, the Kinder Morgan, Inc. Apple, Inc. Investment Association’s Global (equity) sector was 8.30 per cent. Skyworks Solutions, Inc. Allergan plc The effect of Fund charges will be to lower returns so the Fund will not be able to totally track the index return. Additional Endo International plc Novartis AG divergences will be caused by timing differences between Vonovia SE Microsoft Corp. changes in the stocks in the index and changes in the holdings in the Fund and by timing differences between the re-investment of Samsung Electronics Co. Ltd. Preference AT&T, Inc. income in the index and the re-investment of distributions in the Under Armour, Inc. A 'A' Exxon Mobil Corp. Fund. Essex Property Trust, Inc., REIT Wells Fargo & Co. Global stock markets rose but became increasingly volatile over the summer months, erasing earlier gains. Growing concerns over Level 3 Communications, Inc. Pfizer, Inc. the slowdown in the Chinese economy, and uncertainty over Banco Santander SA Reynold American, Inc. the timing of US interest rate hikes have been the predominant Recruit Holdings Co.Ltd Covidien plc factors that have unsettled investors. In the US, economic output for the second quarter was revised up, reflecting an upturn in consumer demand as the labour Synthetic Risk and Reward Indicator market continues to strengthen. There has been a proliferation of share buy-back activity amongst US companies although the Lower risk Higher risk impact on share prices has been diluted by lacklustre earnings growth. Typically lower rewards Typically higher rewards European equity markets responded positively as the European Central Bank commenced its long-awaited asset purchase 1 2 3 4 5 6 7 programme in the spring. In early summer, investors became The Fund has been allocated a risk number based on the historic volatility of increasingly preoccupied with the risk of a Greek debt default its share price. Where insufficient share price information is available, the risk although this occurrence was averted as the Greek administration number has been based on the historic volatility of the asset classes appropriate finally agreed to compromise with its European creditors and to the Fund. secured a further bailout. – This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the The Japanese market has been underpinned by the weakness of Fund. the yen and lower energy prices, which has boosted corporate – The risk and reward category shown is not guaranteed to remain unchanged profits. However, domestic economic indicators appear to have and may change over time. The lowest category does not mean ‘risk free’. deteriorated as economic output contracted during the second – The value of investments will be affected by changes in exchange rates. quarter casting doubt on the effectiveness of government – Full information on the risks applicable to the Fund is detailed in the policies to revive growth. The smaller Asia Pacific markets have Prospectus. struggled as the release of disappointing Chinese economic indicators intensified concerns over the regional growth prospects.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 251 Aviva Investors International Index Tracking Fund

INVESTMENT PERFORMANCE

Net Asset Value – Accumulation Shares Ongoing Charges Figure* Net asset value* Shares Pence per Share class 15.10.15 15.10.14 Share class As at £000 in issue share Class 1 0.96%** 0.96% Class 1 15.10.13 107,964 108,263,428 99.72 Class 2 0.26% 0.26% 15.10.14 91,751 88,457,862 103.72 Class 3 0.26% 0.26% 15.10.15 79,707 72,272,560 110.29 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges Class 2 15.10.13 26,569 25,487,007 104.24 to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes 15.10.14 36,240 33,189,797 109.19 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 15.10.15 42,716 36,538,278 116.91 ** Please note that with effect from 8 February 2016, the Annual Management Charge on share Class 3 15.10.13 253,562 125,603,510 201.87 class 1 is being reduced from 0.9% to 0.6%. This will reduce the OCF to 0.66%.

15.10.14 265,108 125,373,077 211.45

15.10.15 274,962 121,448,624 226.40 Revenue Record * Valued at bid market prices. The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January 2010. Share Price Record – Accumulation Shares Calendar Net revenue Per £1,000 Calendar Highest price* Lowest price* Share class year per share (p) invested (£) Share class year (p) (p) Class 1 2010 0.8820 12.35 Class 1 2010 83.03 68.22 2011 1.0837 15.17 2011 85.26 68.98 2012 1.1337 15.87 2012 84.29 75.34 2013 1.1448 16.02 2013 102.31 84.02 2014 1.1544 16.16 2014 113.86 96.36 2015* 1.2271 17.18 2015** 124.70 103.43 Class 2 2010 1.2406 16.93 Class 2 2010 85.51 70.12 2011 1.4856 20.27 2011 88.02 71.25 2012 1.5470 21.11 2012 87.61 78.09 2013 1.8431 25.15 2013 107.02 87.35 2014 1.9711 26.90 2014 119.95 100.95 2015* 2.1440 29.26 2015** 131.72 109.53 Class 3 2010* 2.7467 19.49 Class 3 2010 164.81 134.99 2011 3.2570 23.12 2011 169.86 137.55 2012 3.3891 24.05 2012 169.67 151.03 2013 3.6219 25.71 2013 207.25 169.16 2014 3.8184 27.10 2014 232.29 195.49 2015* 4.1520 29.47 2015** 255.09 212.12 * Up to 15 December 2015 (the final distribution payment date). * Valued at mid market prices. ** Up to 15 October 2015.

252 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Equities 98.85% (98.81%) Australia 2.62% (3.13%) Adelaide Brighton Ltd. AUD 10,140 20 – AGL Energy Ltd. AUD 13,320 101 0.03 ALS Ltd. AUD 7,200 19 – Alumina Ltd. AUD 51,533 30 0.01 Amcor Ltd. AUD 23,404 144 0.04 AMP Ltd. AUD 57,087 155 0.04 Ansell Ltd. AUD 2,533 23 0.01 APA Group AUD 15,780 66 0.02 Aristocrat Leisure Ltd. AUD 9,600 40 0.01 Asciano Ltd. AUD 20,000 75 0.02 ASX Ltd. AUD 3,889 73 0.02 Aurizon Holdings Ltd. AUD 39,880 97 0.02 AusNet Services AUD 33,780 23 0.01 Australia & New Zealand Banking Group Ltd. AUD 54,790 742 0.19 Bank of Queensland Ltd. AUD 6,000 37 0.01 Bendigo & Adelaide Bank Ltd. AUD 7,850 38 0.01 BHP Billiton Ltd. AUD 61,658 735 0.18 BlueScope Steel Ltd. AUD 11,008 21 0.01 Boral Ltd. AUD 15,000 37 0.01 Brambles Ltd. AUD 30,636 146 0.04 Caltex Australia Ltd. AUD 5,140 80 0.02 Challenger Ltd. AUD 9,640 34 0.01 CIMIC Group Ltd. AUD 2,032 25 0.01 Coca-Cola Amatil Ltd. AUD 10,855 47 0.01 Cochlear Ltd. AUD 1,100 44 0.01 Commonwealth Bank of Australia AUD 32,257 1,106 0.28 Computershare Ltd. AUD 10,650 54 0.01 Crown Resorts Ltd. AUD 8,160 45 0.01 CSL Ltd. AUD 8,840 373 0.09 CSR Ltd. AUD 9,183 12 – Dexus Property Group, REIT AUD 15,462 54 0.01 Downer EDI Ltd. AUD 8,460 15 – DuluxGroup Ltd. AUD 7,621 20 – Echo Entertainment Group Ltd. AUD 16,210 38 0.01 Fairfax Media Ltd. AUD 15,110 7 – Federation Centres, REIT AUD 58,981 78 0.02 Flight Centre Travel Group Ltd. AUD 1,440 26 0.01 Fortescue Metals Group Ltd. AUD 32,140 35 0.01 Goodman Group, REIT AUD 34,556 94 0.02 GPT Group (The), REIT AUD 35,580 78 0.02 Harvey Norman Holdings Ltd. AUD 15,870 29 0.01 Healthscope Ltd. AUD 27,390 34 0.01 Iluka Resources Ltd. AUD 8,500 30 0.01 Incitec Pivot Ltd. AUD 31,150 58 0.01 Insurance Australia Group Ltd. AUD 46,700 119 0.03 IOOF Holdings Ltd. AUD 5,010 21 0.01 Lend Lease Group AUD 10,845 68 0.02 Macquarie Atlas Roads Group AUD 9,980 18 – Macquarie Group Ltd. AUD 5,747 221 0.06 Medibank Pvt Ltd. AUD 52,790 62 0.02 Metcash Ltd. AUD 16,080 10 – Mirvac Group, REIT AUD 74,294 60 0.02 National Australia Bank Ltd. AUD 50,119 749 0.19 New Hope Corp. Ltd. AUD 5,220 5 – Newcrest Mining Ltd. AUD 15,042 109 0.03 Nufarm Ltd. AUD 3,800 15 – Orica Ltd. AUD 7,341 58 0.01 Origin Energy Ltd. AUD 34,623 90 0.02 Orora Ltd. AUD 23,404 27 0.01 OZ Minerals Ltd. AUD 6,611 13 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 253 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Australia 2.62% (3.13%) (continued) Perpetual Ltd. AUD 810 16 – Platinum Asset Management Ltd. AUD 4,430 14 – Qantas Airways Ltd. AUD 22,400 41 0.01 QBE Insurance Group Ltd. AUD 25,950 157 0.04 Ramsay Health Care Ltd. AUD 2,530 72 0.02 Recall Holdings Ltd. AUD 6,127 22 0.01 Rio Tinto Ltd. AUD 7,990 205 0.05 Santos Ltd. AUD 18,835 48 0.01 Scentre Group, REIT AUD 96,867 181 0.05 Seek Ltd. AUD 6,770 41 0.01 Seven West Media Ltd. AUD 5,850 2 – Shopping Centres Australasia Property Group, REIT AUD 11,439 10 – Sims Metal Management Ltd. AUD 3,800 18 – Sonic Healthcare Ltd. AUD 7,800 68 0.02 South32 Ltd. AUD 101,388 72 0.02 Stockland, REIT AUD 45,690 82 0.02 Suncorp Group Ltd. AUD 21,665 131 0.03 Sydney Airport AUD 20,979 61 0.02 Tabcorp Holdings Ltd. AUD 14,224 33 0.01 Tatts Group Ltd. AUD 26,720 49 0.01 Telstra Corp. Ltd. AUD 81,880 211 0.05 TPG Telecom Ltd. AUD 6,100 31 0.01 Transurban Group AUD 36,700 173 0.04 Treasury Wine Estates Ltd. AUD 12,408 39 0.01 Wesfarmers Ltd. AUD 21,206 406 0.10 Westfield Corp., REIT AUD 36,730 173 0.04 Westpac Banking Corp.^ AUD 59,173 855 0.22 Whitehaven Coal Ltd. AUD 14,860 7 – Woodside Petroleum Ltd. AUD 12,910 191 0.05 Woolworths Ltd. AUD 24,139 308 0.08 WorleyParsons Ltd. AUD 4,630 16 – 10,416 2.62 Austria 0.08% (0.08%) ANDRITZ AG EUR 1,500 47 0.01 Erste Group Bank AG EUR 6,285 122 0.03 Immoeast AG NPV Rights Perpetual^ EUR 12,600 – – OMV AG EUR 3,210 59 0.02 Raiffeisen Bank International AG EUR 1,270 13 – Vienna Insurance Group AG Wiener Versicherung Gruppe EUR 895 19 0.01 voestalpine AG EUR 2,260 55 0.01 315 0.08 Belgium 0.52% (0.49%) Ageas EUR 3,600 101 0.02 Anheuser-Busch InBev SA EUR 15,330 1,148 0.29 bpost SA EUR 1,910 31 0.01 Colruyt SA EUR 1,400 45 0.01 Delhaize Group EUR 1,984 117 0.03 Groupe Bruxelles Lambert SA EUR 1,492 78 0.02 KBC Groep NV EUR 5,090 205 0.05 Proximus SADP EUR 2,650 57 0.01 Solvay SA EUR 1,150 81 0.02 Telenet Group Holding NV EUR 950 35 0.01 UCB SA EUR 2,160 109 0.03 Umicore SA EUR 2,300 64 0.02 2,071 0.52 Bermuda 0.50% (0.46%) Arch Capital Group Ltd. USD 2,200 107 0.03 Axis Capital Holdings Ltd. USD 1,980 68 0.02 Brightoil Petroleum Holdings Ltd. HKD 43,000 12 –

254 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Bermuda 0.50% (0.46%) (continued) Bunge Ltd. USD 2,720 136 0.03 Cafe de Coral Holdings Ltd. HKD 8,000 18 0.01 Cheung Kong Infrastructure Holdings Ltd. HKD 9,910 58 0.02 Esprit Holdings Ltd. HKD 41,038 23 0.01 Everest Re Group Ltd. USD 840 96 0.02 First Pacific Co. Ltd. HKD 48,150 21 0.01 Freescale Semiconductor Ltd. USD 1,800 44 0.01 Global Brands Group Holding Ltd. HKD 120,600 16 – Goldin Financial Holdings Ltd. HKD 40,000 50 0.01 Great Eagle Holdings Ltd. HKD 6,000 12 – Hongkong Land Holdings Ltd. USD 23,300 113 0.03 Huabao International Holdings Ltd. HKD 38,000 10 – Invesco Ltd. USD 8,130 163 0.04 Jardine Matheson Holdings Ltd. USD 4,800 166 0.04 Jardine Strategic Holdings Ltd. USD 4,200 82 0.02 Johnson Electric Holdings Ltd. HKD 7,000 15 – Kerry Logistics Network Ltd. HKD 20,000 19 0.01 Kerry Properties Ltd. HKD 14,000 26 0.01 Li & Fung Ltd. HKD 120,600 61 0.02 Marvell Technology Group Ltd. USD 8,275 51 0.01 Nabors Industries Ltd. USD 5,510 40 0.01 Noble Group Ltd. SGD 76,000 18 – Norwegian Cruise Line Holdings Ltd. USD 2,700 99 0.03 NWS Holdings Ltd. HKD 22,000 20 0.01 Orient Overseas International Ltd. HKD 5,000 16 – PartnerRe Ltd. USD 990 89 0.02 RenaissanceRe Holdings Ltd. USD 790 55 0.01 Seadrill Ltd. NOK 7,000 34 0.01 Shangri-La Asia Ltd. HKD 30,147 18 0.01 Signet Jewelers Ltd. USD 1,500 136 0.03 VTech Holdings Ltd. HKD 4,000 31 0.01 Yue Yuen Industrial Holdings Ltd. HKD 20,000 45 0.01 1,968 0.50 Brazil 0.68% (1.46%) AES Tiete SA Preference BRL 2,980 7 – Ambev SA BRL 18,511 58 0.02 Ambev SA, ADR USD 75,800 234 0.06 Banco Bradesco SA BRL 9,312 40 0.01 Banco Bradesco SA, ADR Preference USD 54,753 208 0.05 Banco do Brasil SA BRL 13,410 38 0.01 BB Seguridade Participacoes SA BRL 9,200 44 0.01 BM&FBovespa SA – Bolsa de Valores Mercadorias e Futuros BRL 30,000 58 0.02 BR Malls Participacoes SA BRL 9,650 18 – Braskem SA Preference ‘A’ BRL 2,900 9 – BRF SA BRL 16,730 182 0.05 CCR SA BRL 17,420 37 0.01 Centrais Eletricas Brasileiras SA BRL 11,810 11 – Centrais Eletricas Brasileiras SA Preference ‘B’ BRL 4,920 8 – CETIP SA – Mercados Organizados BRL 5,479 32 0.01 Cia Brasileira de Distribuicao Preference BRL 2,900 26 0.01 Cia de Saneamento Basico do Estado de Sao Paulo BRL 6,540 19 0.01 Cia Energetica de Minas Gerais, ADR Preference USD 15,368 19 0.01 Cia Energetica de Sao Paulo Preference ‘B’ BRL 3,410 9 – Cia Paranaense de Energia Preference BRL 2,770 15 – Cia Siderurgica Nacional SA, ADR USD 14,380 11 – Cielo SA BRL 16,336 103 0.03 Cosan SA Industria e Comercio BRL 3,530 13 – CPFL Energia SA BRL 5,882 15 – Duratex SA BRL 5,720 7 – EcoRodovias Infraestrutura e Logistica SA BRL 3,640 4 – EDP – Energias do Brasil SA BRL 4,140 8 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 255 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Brazil 0.68% (1.46%) (continued) Embraer SA, ADR USD 3,500 60 0.02 Fibria Celulose SA BRL 4,050 37 0.01 Gerdau SA, ADR Preference USD 17,300 18 0.01 Hypermarcas SA BRL 9,130 25 0.01 Itau Unibanco Holding SA, ADR Preference USD 59,335 276 0.07 Itausa – Investimentos Itau SA Preference BRL 68,257 87 0.02 JBS SA BRL 16,450 41 0.01 Klabin SA BRL 10,500 40 0.01 Kroton Educacional SA BRL 30,500 46 0.01 Localiza Rent a Car SA BRL 2,900 13 – Lojas Americanas SA Preference BRL 10,750 32 0.01 Lojas Renner SA BRL 13,150 42 0.01 M Dias Branco SA BRL 900 11 – Multiplan Empreendimentos Imobiliarios SA BRL 1,800 13 – Natura Cosmeticos SA BRL 4,600 18 – OI SA, ADR EUR 561 – – Petroleo Brasileiro SA BRL 75,450 123 0.03 Petroleo Brasileiro SA Preference BRL 87,010 118 0.03 Porto Seguro SA BRL 1,840 11 – Raia Drogasil SA BRL 5,000 34 0.01 Telefonica Brasil SA, ADR Preference USD 3,530 22 0.01 Telefonica Brasil SA Preference BRL 780 5 – Tim Participacoes SA, ADR USD 3,775 25 0.01 TOTVS SA BRL 2,800 15 – Tractebel Energia SA BRL 5,650 31 0.01 Ultrapar Participacoes SA BRL 7,980 91 0.02 Usinas Siderurgicas de Minas Gerais SA BRL 4,390 6 – Usinas Siderurgicas de Minas Gerais SA, ADR Preference USD 8,100 5 – Vale SA BRL 26,720 85 0.02 Vale SA, ADR USD 41,140 105 0.03 WEG SA BRL 10,976 30 0.01 2,698 0.68 Canada 3.15% (3.75%) Agnico Eagle Mines Ltd. CAD 3,380 66 0.02 Agrium, Inc. CAD 2,680 168 0.04 Alimentation Couche-Tard, Inc. ‘B’ CAD 7,380 221 0.06 ARC Resources Ltd. CAD 6,100 66 0.02 Bank of Montreal CAD 10,960 409 0.10 Bank of Montreal NPV^ USD 1,438 53 0.01 Bank of Nova Scotia (The) CAD 22,950 685 0.17 Barrick Gold Corp. CAD 23,835 126 0.03 BCE, Inc. CAD 5,454 153 0.04 BlackBerry Ltd. CAD 10,060 47 0.01 Bombardier, Inc. ‘B’ CAD 27,440 23 0.01 Brookfield Asset Management, Inc. ‘A’ CAD 16,706 361 0.09 Cameco Corp. CAD 7,520 69 0.02 Canadian Imperial Bank of Commerce CAD 7,580 372 0.09 Canadian National Railway Co. CAD 13,618 528 0.13 Canadian Natural Resources Ltd. CAD 21,040 327 0.08 Canadian Oil Sands Ltd. CAD 9,390 46 0.01 Canadian Pacific Ltd. Railway CAD 2,785 272 0.07 Canadian Tire Corp. Ltd. ‘A’ CAD 1,650 95 0.02 Canadian Utilities Ltd. ‘A’ CAD 3,340 61 0.02 Cenovus Energy, Inc. CAD 15,232 162 0.04 CGI Group, Inc. ‘A’ CAD 5,410 130 0.03 CI Financial Corp. CAD 4,510 71 0.02 Crescent Point Energy Corp. CAD 7,830 77 0.02 Enbridge, Inc. CAD 16,100 449 0.11 Encana Corp. CAD 14,632 82 0.02 Fairfax Financial Holdings Ltd. CAD 400 129 0.03 Finning International, Inc. CAD 3,270 34 0.01

256 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Canada 3.15% (3.75%) (continued) First Quantum Minerals Ltd. CAD 11,980 45 0.01 Fortis, Inc. CAD 5,250 100 0.03 Franco-Nevada Corp. CAD 2,900 97 0.02 George Weston Ltd. CAD 1,090 60 0.02 Goldcorp, Inc. CAD 15,570 157 0.04 Great-West Lifeco, Inc. CAD 5,430 89 0.02 Husky Energy, Inc. CAD 5,860 67 0.02 IGM Financial, Inc. CAD 1,490 28 0.01 Imperial Oil Ltd. CAD 5,270 119 0.03 Intact Financial Corp. CAD 2,660 122 0.03 Inter Pipeline Ltd. CAD 6,400 83 0.02 Loblaw Cos. Ltd. CAD 4,681 159 0.04 Magna International, Inc. CAD 7,580 245 0.06 Manulife Financial Corp. CAD 37,180 395 0.10 MEG Energy Corp. CAD 3,190 19 – Metro, Inc. CAD 5,010 92 0.02 National Bank of Canada CAD 6,230 127 0.03 Pembina Pipeline Corp. CAD 5,900 105 0.03 Potash Corp. of Saskatchewan, Inc. CAD 16,245 232 0.06 Power Corp. of Canada CAD 6,955 99 0.03 Power Financial Corp. CAD 4,670 73 0.02 Restaurant Brands International, Inc. CAD 2,463 57 0.01 Restaurant Brands International, Inc. USD 2,079 48 0.01 RioCan Real Estate Investment Trust CAD 6,110 78 0.02 Rogers Communications, Inc. ‘B’ CAD 7,350 175 0.04 Royal Bank of Canada CAD 27,080 995 0.25 Saputo, Inc. CAD 4,720 74 0.02 Shaw Communications, Inc. ‘B’ CAD 8,170 108 0.03 Silver Wheaton Corp. CAD 6,760 64 0.02 SNC-Lavalin Group, Inc. CAD 2,890 61 0.02 Sun Life Financial, Inc. CAD 10,750 234 0.06 Suncor Energy, Inc. CAD 27,987 518 0.13 Teck Resources Ltd. ‘B’ CAD 9,360 41 0.01 TELUS Corp. CAD 3,630 77 0.02 Thomson Reuters Corp. CAD 6,550 175 0.04 Toronto-Dominion Bank (The) CAD 35,030 918 0.23 Tourmaline Oil Corp. CAD 3,600 62 0.02 TransCanada Corp. CAD 13,752 311 0.08 Turquoise Hill Resources Ltd. CAD 14,700 29 0.01 Valeant Pharmaceuticals International, Inc. CAD 5,970 685 0.17 12,505 3.15 Cayman Islands 0.34% (0.20%) AAC Technologies Holdings, Inc. HKD 14,000 56 0.01 ASM Pacific Technology Ltd. HKD 3,800 17 0.01 Cheung Kong Property Holdings Ltd. HKD 53,872 254 0.06 China Huarong Energy Co. Ltd. HKD 93,500 3 – China Mengniu Dairy Co. Ltd. HKD 50,000 62 0.02 Chow Tai Fook Jewellery Group Ltd. HKD 21,400 12 – CK Hutchison Holdings Ltd. HKD 53,872 483 0.12 FIH Mobile Ltd. HKD 50,000 16 – Herbalife Ltd. USD 1,750 63 0.02 Hopewell Highway Infrastructure Ltd. HKD 34,650 11 – Hutchison Telecommunications Hong Kong Holdings Ltd. HKD 26,000 6 – Lifestyle International Holdings Ltd. HKD 9,000 8 – MGM China Holdings Ltd. HKD 15,200 15 – New World China Land Ltd. HKD 52,000 22 0.01 Sands China Ltd. HKD 48,800 125 0.03 Semiconductor Manufacturing International Corp. HKD 372,000 23 0.01 Shui On Land Ltd. HKD 76,000 13 – Tingyi Cayman Islands Holding Corp. HKD 43,160 50 0.01 TPK Holding Co. Ltd. TWD 4,887 8 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 257 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Cayman Islands 0.34% (0.20%) (continued) Want Want China Holdings Ltd. HKD 127,000 67 0.02 Wynn Macau Ltd. HKD 20,800 21 0.01 Xinyi Glass Holdings Ltd. HKD 58,000 19 0.01 Xinyi Solar Holdings Ltd. HKD 58,000 17 – 1,371 0.34 Curacao 0.29% (0.37%) Schlumberger Ltd. USD 23,834 1,155 0.29 1,155 0.29 Czech Republic 0.02% (0.03%) CEZ AS CZK 4,110 54 0.01 Komercni banka A/S CZK 290 41 0.01 95 0.02 Denmark 0.71% (0.60%) AP Moeller – Maersk A/S ‘A’ DKK 65 67 0.02 AP Moeller – Maersk A/S ‘B’ DKK 140 149 0.04 Carlsberg A/S ‘B’ DKK 2,020 105 0.03 Chr Hansen Holding A/S DKK 1,870 66 0.02 Coloplast A/S ‘B’ DKK 2,020 93 0.02 Danske Bank A/S DKK 14,630 290 0.07 DSV A/S DKK 3,620 97 0.02 Genmab A/S DKK 500 30 0.01 H Lundbeck A/S DKK 1,130 22 – ISS A/S DKK 2,000 45 0.01 Jyske Bank A/S DKK 1,360 48 0.01 Novo Nordisk A/S ‘B’ DKK 36,600 1,263 0.32 Novozymes A/S ‘B’ DKK 4,380 118 0.03 Pandora A/S DKK 2,150 163 0.04 TDC A/S DKK 14,860 49 0.01 Tryg A/S DKK 2,400 28 0.01 Vestas Wind Systems A/S DKK 4,510 165 0.04 William Demant Holding A/S DKK 500 28 0.01 2,826 0.71 Finland 0.37% (0.34%) Elisa OYJ EUR 3,000 69 0.02 Fortum OYJ EUR 8,540 90 0.02 Kesko OYJ ‘B’ EUR 1,280 32 0.01 Kone OYJ ‘B’ EUR 7,660 207 0.05 Metso OYJ EUR 2,880 46 0.01 Neste OYJ EUR 2,505 41 0.01 Nokia OYJ EUR 71,802 326 0.08 Nokian Renkaat OYJ EUR 2,700 60 0.02 Orion OYJ ‘B’ EUR 1,910 45 0.01 Sampo OYJ ‘A’ EUR 8,900 281 0.07 Stora Enso OYJ ‘R’ EUR 13,092 82 0.02 UPM-Kymmene OYJ EUR 9,966 116 0.03 Wartsila OYJ Abp EUR 3,170 86 0.02 1,481 0.37 France 3.65% (3.51%) Accor SA EUR 3,890 121 0.03 Aeroports de Paris EUR 780 63 0.02 Air Liquide SA EUR 6,644 536 0.13 Alcatel-Lucent EUR 31,982 78 0.02 Alcatel-Lucent, ADR USD 17,658 42 0.01 Alstom SA EUR 4,450 93 0.02 Arkema SA EUR 1,348 63 0.02 Atos SE EUR 1,245 64 0.02 AXA SA EUR 36,385 601 0.15 BioMerieux EUR 180 13 –

258 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets France 3.65% (3.51%) (continued) BNP Paribas SA EUR 18,762 749 0.19 Bollore SA EUR 18,630 61 0.01 Bouygues SA EUR 3,241 81 0.02 Bureau Veritas SA EUR 4,200 61 0.01 Cap Gemini SA EUR 3,140 181 0.05 Carrefour SA EUR 10,470 211 0.05 Casino Guichard Perrachon SA EUR 1,180 49 0.01 Christian Dior SE EUR 1,065 135 0.03 Cie de Saint-Gobain EUR 8,958 259 0.06 Cie Generale des Etablissements Michelin EUR 3,548 224 0.06 CNP Assurances EUR 2,723 25 0.01 Credit Agricole SA EUR 19,258 156 0.04 Danone SA EUR 10,458 453 0.11 Dassault Systemes EUR 2,320 119 0.03 Edenred EUR 4,300 51 0.01 Eiffage SA EUR 800 33 0.01 Electricite de France SA EUR 4,990 65 0.02 Engie SA EUR 27,814 306 0.08 Essilor International SA EUR 3,630 291 0.07 Euler Hermes Group EUR 280 18 – Eurazeo SA EUR 706 31 0.01 Eutelsat Communications SA EUR 2,560 57 0.01 Faurecia EUR 1,160 27 0.01 Fonciere Des Regions, REIT EUR 674 40 0.01 Gecina SA, REIT EUR 400 33 0.01 Groupe Eurotunnel SE EUR 8,990 79 0.02 Hermes International EUR 466 115 0.03 ICADE, REIT EUR 920 44 0.01 Iliad SA EUR 480 63 0.02 Imerys SA EUR 785 35 0.01 Ingenico Group SA EUR 1,040 83 0.02 Ipsen SA EUR 650 25 0.01 JCDecaux SA EUR 1,400 35 0.01 Kering EUR 1,484 168 0.04 Klepierre, REIT EUR 3,404 103 0.03 Lagardere SCA EUR 2,510 47 0.01 Legrand SA EUR 5,310 185 0.05 L’Oreal SA EUR 4,540 559 0.14 LVMH Moet Hennessy Louis Vuitton SE EUR 4,785 567 0.14 Natixis SA EUR 16,730 67 0.02 Numericable-SFR SAS EUR 1,750 56 0.01 Orange SA EUR 36,341 373 0.09 Pernod Ricard SA EUR 3,713 271 0.07 Peugeot SA EUR 6,770 75 0.02 Publicis Groupe SA EUR 3,230 149 0.04 Remy Cointreau SA EUR 490 22 0.01 Renault SA EUR 3,350 195 0.05 Rexel SA EUR 4,270 38 0.01 Safran SA EUR 5,220 260 0.07 Sanofi EUR 21,740 1,411 0.35 Schneider Electric SE EUR 10,488 396 0.10 SCOR SE EUR 2,830 64 0.02 SEB SA EUR 540 34 0.01 Societe BIC SA EUR 530 54 0.01 Société Générale SA EUR 13,955 426 0.11 Societe Television Francaise 1 EUR 2,060 19 – Sodexo SA EUR 1,820 101 0.02 Suez Environnement Co. EUR 5,133 63 0.02 Technip SA EUR 2,105 73 0.02 Thales SA EUR 1,955 89 0.02 TOTAL SA EUR 39,033 1,308 0.33 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 259 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets France 3.65% (3.51%) (continued) Unibail-Rodamco SE, REIT EUR 1,971 345 0.09 Valeo SA EUR 1,380 132 0.03 Vallourec SA EUR 2,260 18 – Veolia Environnement SA EUR 7,638 112 0.03 Vinci SA EUR 8,883 381 0.10 Vivendi SA EUR 22,086 356 0.09 Wendel SA EUR 730 58 0.01 Zodiac Aerospace EUR 4,000 66 0.02 14,510 3.65 Germany 3.38% (3.33%) adidas AG EUR 4,000 229 0.06 Allianz SE EUR 8,193 887 0.22 Axel Springer SE EUR 840 30 0.01 BASF SE EUR 17,500 926 0.23 Bayer AG EUR 15,584 1,251 0.32 Bayerische Motoren Werke AG EUR 6,248 406 0.10 Bayerische Motoren Werke AG Preference EUR 1,020 52 0.01 Beiersdorf AG EUR 1,894 115 0.03 Brenntag AG EUR 3,060 111 0.03 Commerzbank AG EUR 19,193 138 0.04 Continental AG EUR 2,160 320 0.08 Daimler AG EUR 18,357 991 0.25 Deutsche Bank AG EUR 25,970 488 0.12 Deutsche Boerse AG EUR 3,600 208 0.05 Deutsche Lufthansa AG EUR 4,838 48 0.01 Deutsche Post AG EUR 18,160 346 0.09 Deutsche Telekom AG EUR 59,229 656 0.17 Deutsche Wohnen AG EUR 6,594 119 0.03 E.ON SE EUR 36,723 253 0.06 Evonik Industries AG EUR 1,420 32 0.01 Fielmann AG EUR 500 23 0.01 Fraport AG Frankfurt Airport Services Worldwide EUR 750 31 0.01 Fresenius Medical Care AG & Co. KGaA EUR 4,110 221 0.06 Fresenius SE & Co. KGaA EUR 7,635 327 0.08 FUCHS PETROLUB SE EUR 690 18 – FUCHS PETROLUB SE Preference EUR 1,440 43 0.01 GEA Group AG EUR 3,530 94 0.02 Hannover Rueck SE EUR 1,270 85 0.02 HeidelbergCement AG EUR 2,517 119 0.03 Henkel AG & Co. KGaA EUR 2,290 138 0.04 Henkel AG & Co. KGaA Preference EUR 3,420 237 0.06 HOCHTIEF AG EUR 330 19 0.01 HUGO BOSS AG EUR 1,090 83 0.02 Infineon Technologies AG EUR 20,629 168 0.04 K+S AG EUR 3,666 65 0.02 Kabel Deutschland Holding AG EUR 500 43 0.01 LANXESS AG EUR 1,599 53 0.01 Linde AG EUR 3,603 395 0.10 MAN SE EUR 810 56 0.01 Merck KGaA EUR 2,480 140 0.04 METRO AG EUR 2,597 50 0.01 MTU Aero Engines AG EUR 680 38 0.01 Muenchener Rueckversicherungs-Gesellschaft AG EUR 2,824 350 0.09 OSRAM Licht AG EUR 1,660 58 0.02 Porsche Automobil Holding SE Preference EUR 2,937 88 0.02 ProSiebenSat.1 Media SE EUR 4,040 135 0.03 RWE AG EUR 9,755 89 0.02 SAP SE EUR 16,906 806 0.20 Siemens AG EUR 14,748 920 0.23 Suedzucker AG EUR 1,250 15 –

260 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Germany 3.38% (3.33%) (continued) Symrise AG EUR 2,320 96 0.02 Talanx AG EUR 760 15 – Telefonica Deutschland Holding AG EUR 10,880 42 0.01 ThyssenKrupp AG EUR 8,480 110 0.03 United Internet AG EUR 1,870 62 0.02 Volkswagen AG EUR 560 53 0.01 Volkswagen AG Preference EUR 2,952 232 0.06 Vonovia SE EUR 8,760 177 0.05 Wacker Chemie AG EUR 340 18 – Wirecard AG EUR 2,160 69 0.02 Zalando SE EUR 2,010 43 0.01 13,430 3.38 Greece 0.02% (0.04%) Alpha Bank AE EUR 77,220 7 – Hellenic Telecommunications Organization SA EUR 4,988 32 0.01 National Bank of Greece SA EUR 30,620 12 – OPAP SA EUR 4,010 25 0.01 Piraeus Bank SA EUR 40,600 2 – 78 0.02 Guernsey 0.03% (0.02%) Amdocs Ltd. USD 2,950 111 0.03 111 0.03 Hong Kong 0.90% (1.11%) AIA Group Ltd. HKD 228,860 850 0.21 Bank of East Asia Ltd. (The) HKD 18,400 44 0.01 BOC Hong Kong Holdings Ltd. HKD 66,000 141 0.04 Cathay Pacific Airways Ltd. HKD 19,000 24 0.01 Champion REIT HKD 54,000 18 – CLP Holdings Ltd. HKD 29,240 166 0.04 Dah Sing Banking Group Ltd. HKD 7,200 9 – Dah Sing Financial Holdings Ltd. HKD 3,200 12 – Galaxy Entertainment Group Ltd. HKD 41,000 99 0.02 Hang Lung Properties Ltd. HKD 43,000 69 0.02 Hang Seng Bank Ltd. HKD 14,615 172 0.04 Henderson Land Development Co. Ltd. HKD 20,116 83 0.02 Hong Kong & China Gas Co. Ltd. HKD 137,617 175 0.04 Hong Kong Exchanges and Clearing Ltd. HKD 22,100 378 0.10 Hopewell Holdings Ltd. HKD 13,000 31 0.01 Hysan Development Co. Ltd. HKD 12,000 33 0.01 Link REIT, REIT HKD 45,000 171 0.04 Melco International Development Ltd. HKD 22,000 25 0.01 MTR Corp. Ltd. HKD 28,000 80 0.02 New World Development Co. Ltd. HKD 100,400 69 0.02 PCCW Ltd. HKD 78,494 27 0.01 Power Assets Holdings Ltd. HKD 25,122 158 0.04 Shougang Fushan Resources Group Ltd. HKD 60,000 5 – Shun Tak Holdings Ltd. HKD 44,000 12 – Sino Land Co. Ltd. HKD 60,500 64 0.02 SJM Holdings Ltd. HKD 37,000 21 0.01 Sun Art Retail Group Ltd. HKD 44,000 23 0.01 Sun Hung Kai Properties Ltd. HKD 31,081 269 0.07 Swire Pacific Ltd. ‘A’ HKD 12,160 93 0.02 Swire Properties Ltd. HKD 23,212 44 0.01 Techtronic Industries Co. Ltd. HKD 23,000 52 0.01 Television Broadcasts Ltd. HKD 6,000 14 – Wharf Holdings Ltd. (The) HKD 26,175 101 0.03 Wheelock & Co. Ltd. HKD 17,000 50 0.01 3,582 0.90

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 261 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Hungary 0.03% (0.03%) Magyar Telekom Telecommunications plc HUF 8,890 8 – MOL Hungarian Oil & Gas plc HUF 900 28 0.01 OTP Bank PLC HUF 3,800 52 0.01 Richter Gedeon Nyrt HUF 3,100 35 0.01 123 0.03 Indonesia 0.00% (0.00%) Bank Dagang Nasional Indonesia Tbk. PT^ IDR 126 – – Bank Indonesia Raya Tbk. PT^ IDR 100 – – – – Ireland 1.49% (1.23%) Accenture plc ‘A’ USD 11,980 792 0.20 Alkermes plc USD 2,500 96 0.02 Allegion plc USD 1,933 73 0.02 Allergan plc USD 7,400 1,287 0.32 Anglo Irish Bank Corp. Ltd.^ EUR 16,820 – – Bank of Ireland EUR 516,580 134 0.03 Eaton Corp. plc USD 8,797 300 0.08 Endo International plc USD 3,950 166 0.04 Glanbia plc EUR 3,320 39 0.01 Ingersoll-Rand plc USD 5,121 177 0.05 James Hardie Industries plc AUD 8,440 69 0.02 Jazz Pharmaceuticals plc USD 1,000 86 0.02 Kerry Group plc ‘A’ EUR 2,520 126 0.03 Mallinckrodt plc USD 2,200 93 0.02 Medtronic plc USD 26,643 1,242 0.31 Pentair plc USD 3,601 129 0.03 Perrigo Co. plc USD 2,632 273 0.07 Ryanair Holdings plc EUR 10,314 98 0.03 Seagate Technology plc USD 5,760 178 0.05 Smurfit Kappa Group PLC EUR 4,630 81 0.02 Tyco International plc USD 7,913 184 0.05 Weatherford International plc USD 14,292 91 0.02 Willis Group Holdings plc USD 3,320 89 0.02 XL Group plc USD 5,190 121 0.03 5,924 1.49 Isle of Man 0.01% (0.02%) Genting Singapore plc SGD 120,000 43 0.01 43 0.01 Israel 0.31% (0.29%) Azrieli Group ILS 710 18 – Bank Hapoalim BM ILS 18,660 64 0.02 Bank Leumi Le-Israel BM ILS 24,940 63 0.02 Bezeq The Israeli Telecommunication Corp. Ltd. ILS 42,590 55 0.01 Check Point Software Technologies Ltd. USD 2,590 131 0.03 Delek Group Ltd. ILS 90 14 – Elbit Systems Ltd. ILS 430 21 0.01 Gazit-Globe Ltd. ILS 1,510 10 – Israel Chemicals Ltd. ILS 9,710 35 0.01 Israel Corp. Ltd. (The) ILS 50 8 – Israel Discount Bank Ltd. ‘A’ ILS 14,670 18 0.01 Mizrahi Tefahot Bank Ltd. ILS 2,370 19 0.01 NICE-Systems Ltd. ILS 1,000 36 0.01 Oil Refineries Ltd. ILS 18,990 5 – Osem Investments Ltd. ILS 870 11 – Paz Oil Co. Ltd. ILS 60 6 – Strauss Group Ltd. ILS 620 6 –

262 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Israel 0.31% (0.29%) (continued) Teva Pharmaceutical Industries Ltd. ILS 2,070 79 0.02 Teva Pharmaceutical Industries Ltd., ADR USD 17,035 642 0.16 Tower Semiconductor Ltd. ILS 117 1 – 1,242 0.31 Italy 0.96% (0.87%) Assicurazioni Generali SpA EUR 23,843 286 0.07 Atlantia SpA EUR 9,036 164 0.04 Banca Monte dei Paschi di Siena SpA EUR 46,310 56 0.01 Banco Popolare SC EUR 6,559 67 0.02 Davide Campari-Milano SpA EUR 6,200 34 0.01 Enel Green Power SpA EUR 38,350 50 0.01 Enel SpA EUR 129,614 393 0.10 Eni SpA EUR 47,004 540 0.14 EXOR SpA EUR 1,913 60 0.01 Finmeccanica SpA EUR 7,418 65 0.02 Intesa Sanpaolo SpA EUR 229,323 545 0.14 Intesa Sanpaolo SpA Di Risp EUR 17,770 38 0.01 Luxottica Group SpA EUR 3,680 170 0.04 Mediaset SpA EUR 18,450 60 0.01 Mediobanca SpA EUR 9,773 64 0.02 Mediolanum SpA EUR 4,590 24 0.01 Parmalat SpA EUR 6,990 12 – Pirelli & C. SpA EUR 6,885 76 0.02 Prada SpA HKD 10,200 27 0.01 Prysmian SpA EUR 4,070 57 0.01 Saipem SpA EUR 5,030 32 0.01 Snam SpA EUR 41,921 140 0.04 Telecom Italia SpA EUR 210,481 161 0.04 Telecom Italia SpA Di Risp EUR 115,540 74 0.02 Terna Rete Elettrica Nazionale SpA EUR 28,760 93 0.02 UniCredit SpA EUR 92,002 394 0.10 Unione di Banche Italiane SCpA EUR 17,286 87 0.02 UnipolSai SpA EUR 19,740 31 0.01 3,800 0.96 Japan 9.53% (8.96%) 77 Bank Ltd. (The) JPY 7,000 25 0.01 ABC-Mart, Inc. JPY 400 15 – Acom Co. Ltd. JPY 9,200 32 0.01 Advantest Corp. JPY 3,120 17 – Aeon Co. Ltd. JPY 11,400 113 0.03 AEON Financial Service Co. Ltd. JPY 1,800 27 0.01 Aeon Mall Co. Ltd. JPY 2,090 22 0.01 Aiful Corp. JPY 5,800 15 – Air Water, Inc. JPY 3,000 31 0.01 Aisin Seiki Co. Ltd. JPY 3,600 87 0.02 Ajinomoto Co., Inc. JPY 10,000 138 0.03 Alfresa Holdings Corp. JPY 3,500 41 0.01 Alps Electric Co. Ltd. JPY 3,000 54 0.01 Amada Holdings Co. Ltd. JPY 7,000 39 0.01 ANA Holdings, Inc. JPY 23,000 43 0.01 Aoyama Trading Co. Ltd. JPY 1,000 23 0.01 Aozora Bank Ltd. JPY 25,000 59 0.01 Asahi Glass Co. Ltd. JPY 19,000 75 0.02 Asahi Group Holdings Ltd. JPY 7,100 142 0.04 Asahi Intecc Co. Ltd. JPY 900 21 0.01 Asahi Kasei Corp. JPY 26,000 112 0.03 Asics Corp. JPY 3,200 55 0.01

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 263 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Astellas Pharma, Inc. JPY 40,900 355 0.09 Autobacs Seven Co. Ltd. JPY 1,800 20 0.01 Awa Bank Ltd. (The) JPY 4,000 15 – Azbil Corp. JPY 1,500 23 0.01 Bandai Namco Holdings, Inc. JPY 4,000 65 0.02 Bank of Kyoto Ltd. (The) JPY 7,450 49 0.01 Bank of Yokohama Ltd. (The) JPY 22,000 88 0.02 Benesse Holdings, Inc. JPY 1,500 26 0.01 Bridgestone Corp. JPY 12,100 283 0.07 Brother Industries Ltd. JPY 5,300 44 0.01 Calbee, Inc. JPY 1,200 25 0.01 Calsonic Kansei Corp. JPY 2,000 10 – Canon Marketing Japan, Inc. JPY 1,155 12 – Canon, Inc. JPY 20,050 402 0.10 Capcom Co. Ltd. JPY 1,100 14 – Casio Computer Co. Ltd. JPY 4,400 52 0.01 Central Japan Railway Co. JPY 3,400 379 0.10 Century Tokyo Leasing Corp. JPY 900 19 – Chiba Bank Ltd. (The) JPY 14,000 64 0.02 Chiyoda Corp. JPY 4,000 20 0.01 Chubu Electric Power Co., Inc. JPY 13,910 142 0.04 Chugai Pharmaceutical Co. Ltd. JPY 4,230 88 0.02 Chugoku Bank Ltd. (The) JPY 4,000 37 0.01 Chugoku Electric Power Co., Inc. (The) JPY 6,280 61 0.02 Citizen Holdings Co. Ltd. JPY 5,000 23 0.01 Coca-Cola West Co. Ltd. JPY 1,200 14 – COMSYS Holdings Corp. JPY 2,400 20 0.01 Cosmo Energy Holdings Co. Ltd. JPY 1,200 11 – Cosmos Pharmaceutical Corp. JPY 100 8 – Credit Saison Co. Ltd. JPY 3,600 48 0.01 CyberAgent, Inc. JPY 900 24 0.01 Dai Nippon Printing Co. Ltd. JPY 13,000 85 0.02 Daicel Corp. JPY 6,000 50 0.01 Daido Steel Co. Ltd. JPY 6,000 14 – Daihatsu Motor Co. Ltd. JPY 4,000 32 0.01 Dai-ichi Life Insurance Co. Ltd. (The) JPY 20,000 215 0.05 Daiichi Sankyo Co. Ltd. JPY 12,736 156 0.04 Daikin Industries Ltd. JPY 5,100 210 0.05 Daishi Bank Ltd. (The) JPY 6,000 18 – Daito Trust Construction Co. Ltd. JPY 1,400 98 0.02 Daiwa House Industry Co. Ltd. JPY 12,200 203 0.05 Daiwa Securities Group, Inc. JPY 32,000 144 0.04 DeNA Co. Ltd. JPY 2,400 30 0.01 Denka Co. Ltd. JPY 9,000 26 0.01 Denso Corp. JPY 9,100 273 0.07 Dentsu, Inc. JPY 4,200 152 0.04 DIC Corp. JPY 16,000 27 0.01 Disco Corp. JPY 400 22 0.01 DMG Mori Co. Ltd. JPY 2,000 17 – Don Quijote Holdings Co. Ltd. JPY 2,400 58 0.01 Dowa Holdings Co. Ltd. JPY 4,400 25 0.01 East Japan Railway Co. JPY 7,300 436 0.11 Ebara Corp. JPY 9,000 24 0.01 Eisai Co. Ltd. JPY 5,200 198 0.05 Electric Power Development Co. Ltd. JPY 3,240 69 0.02 Exedy Corp. JPY 500 8 – Ezaki Glico Co. Ltd. JPY 1,000 29 0.01 FamilyMart Co. Ltd. JPY 1,397 40 0.01 FANUC Corp. JPY 3,700 396 0.10 Fast Retailing Co. Ltd. JPY 1,000 234 0.06 FP Corp. JPY 600 15 –

264 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Fuji Electric Co. Ltd. JPY 10,000 26 0.01 Fuji Heavy Industries Ltd. JPY 11,800 288 0.07 Fuji Media Holdings, Inc. JPY 800 6 – FUJIFILM Holdings Corp. JPY 8,200 204 0.05 Fujikura Ltd. JPY 7,000 21 0.01 Fujitsu Ltd. JPY 36,000 111 0.03 Fukuoka Financial Group, Inc. JPY 16,525 54 0.01 Fukuyama Transporting Co. Ltd. JPY 4,000 15 – Furukawa Electric Co. Ltd. JPY 10,000 12 – Glory Ltd. JPY 1,200 20 0.01 Gree, Inc. JPY 1,800 6 – GS Yuasa Corp. JPY 7,000 20 0.01 Gunma Bank Ltd. (The) JPY 9,000 37 0.01 H2O Retailing Corp. JPY 1,000 13 – Hachijuni Bank Ltd. (The) JPY 8,000 35 0.01 Hakuhodo DY Holdings, Inc. JPY 5,600 36 0.01 Hamamatsu Photonics KK JPY 2,600 40 0.01 Hankyu Hanshin Holdings, Inc. JPY 24,000 98 0.02 Haseko Corp. JPY 6,000 46 0.01 Heiwa Corp. JPY 1,000 12 – Hikari Tsushin, Inc. JPY 300 14 – Hino Motors Ltd. JPY 5,000 35 0.01 Hirose Electric Co. Ltd. JPY 630 49 0.01 Hiroshima Bank Ltd. (The) JPY 11,000 39 0.01 Hisamitsu Pharmaceutical Co., Inc. JPY 1,600 38 0.01 Hitachi Capital Corp. JPY 800 14 – Hitachi Chemical Co. Ltd. JPY 2,000 20 0.01 Hitachi Co.nstruction Machinery Co. Ltd. JPY 1,800 18 – Hitachi High-Technologies Corp. JPY 1,350 21 0.01 Hitachi Ltd. JPY 88,400 322 0.08 Hitachi Metals Ltd. JPY 4,000 35 0.01 Hitachi Transport System Ltd. JPY 800 9 – Hokkaido Electric Power Co., Inc. JPY 3,760 26 0.01 Hokkoku Bank Ltd. (The) JPY 8,000 21 0.01 Hokuhoku Financial Group, Inc. JPY 27,000 39 0.01 Hokuriku Electric Power Co. JPY 3,760 35 0.01 Honda Motor Co. Ltd. JPY 34,200 714 0.18 Hoshizaki Electric Co. Ltd. JPY 800 37 0.01 House Foods Group, Inc. JPY 1,100 12 – Hoya Corp. JPY 7,800 186 0.05 Hulic Co. Ltd. JPY 5,700 35 0.01 Hyakugo Bank Ltd. (The) JPY 5,000 15 – Hyakujushi Bank Ltd. (The) JPY 5,000 12 – Ibiden Co. Ltd. JPY 2,400 22 0.01 Idemitsu Kosan Co. Ltd. JPY 2,000 22 0.01 IHI Corp. JPY 29,000 56 0.01 Iida Group Holdings Co. Ltd. JPY 3,100 36 0.01 Inpex Corp. JPY 17,300 113 0.03 Isetan Mitsukoshi Holdings Ltd. JPY 7,320 75 0.02 Isuzu Motors Ltd. JPY 11,200 83 0.02 Ito En Ltd. JPY 1,400 19 – ITOCHU Corp. JPY 28,300 228 0.06 Itochu Techno-Solutions Corp. JPY 1,000 15 – Iyo Bank Ltd. (The) JPY 6,000 43 0.01 Izumi Co. Ltd. JPY 800 20 0.01 J Front Retailing Co. Ltd. JPY 4,200 44 0.01 Jafco Co. Ltd. JPY 700 20 0.01 Japan Airlines Co. Ltd. JPY 1,800 42 0.01 Japan Airport Terminal Co. Ltd. JPY 1,100 34 0.01 Japan Exchange Group, Inc. JPY 11,000 114 0.03 Japan Petroleum Exploration Co. Ltd. JPY 600 12 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 265 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Japan Steel Works Ltd. (The) JPY 6,000 14 – Japan Tobacco, Inc. JPY 19,500 432 0.11 JFE Holdings, Inc. JPY 9,775 98 0.02 JGC Corp. JPY 4,000 40 0.01 Joyo Bank Ltd. (The) JPY 14,000 47 0.01 JSR Corp. JPY 4,100 42 0.01 JTEKT Corp. JPY 4,500 47 0.01 Juroku Bank Ltd. (The) JPY 7,000 20 0.01 JX Holdings, Inc. JPY 45,548 119 0.03 Kagome Co. Ltd. JPY 2,100 23 0.01 Kajima Corp. JPY 18,000 68 0.02 Kakaku.com, Inc. JPY 2,400 27 0.01 Kaken Pharmaceutical Co. Ltd. JPY 500 24 0.01 Kamigumi Co. Ltd. JPY 5,000 27 0.01 Kandenko Co. Ltd. JPY 2,000 9 – Kaneka Corp. JPY 7,000 37 0.01 Kansai Electric Power Co., Inc. (The) JPY 13,800 111 0.03 Kansai Paint Co. Ltd. JPY 4,000 38 0.01 Kao Corp. JPY 9,400 291 0.07 Kawasaki Heavy Industries Ltd. JPY 31,000 79 0.02 Kawasaki Kisen Kaisha Ltd. JPY 14,000 21 0.01 KDDI Corp. JPY 35,550 517 0.13 Keihan Electric Railway Co. Ltd. JPY 11,000 49 0.01 Keikyu Corp. JPY 10,210 54 0.01 Keio Corp. JPY 12,000 60 0.02 Keisei Electric Railway Co. Ltd. JPY 5,000 37 0.01 Keiyo Bank Ltd. (The) JPY 5,000 17 – Kewpie Corp. JPY 2,200 31 0.01 Keyence Corp. JPY 900 281 0.07 Kikkoman Corp. JPY 3,100 59 0.02 Kinden Corp. JPY 2,420 21 0.01 Kintetsu Group Holdings Co. Ltd. JPY 36,157 89 0.02 Kirin Holdings Co. Ltd. JPY 16,000 143 0.04 Kissei Pharmaceutical Co. Ltd. JPY 1,000 16 – Kobayashi Pharmaceutical Co. Ltd. JPY 500 24 0.01 Kobe Steel Ltd. JPY 52,000 43 0.01 Koito Manufacturing Co. Ltd. JPY 2,000 46 0.01 Komatsu Ltd. JPY 18,200 190 0.05 Komeri Co. Ltd. JPY 900 13 – Konami Holdings Corp. JPY 2,100 31 0.01 Konica Minolta, Inc. JPY 8,784 65 0.02 Kose Corp. JPY 500 31 0.01 K’s Holdings Corp. JPY 1,000 23 0.01 Kubota Corp. JPY 21,000 201 0.05 Kuraray Co. Ltd. JPY 6,600 54 0.01 Kurita Water Industries Ltd. JPY 2,400 37 0.01 Kyocera Corp. JPY 5,680 176 0.04 KYORIN Holdings, Inc. JPY 1,100 12 – Kyowa Hakko Kirin Co. Ltd. JPY 5,000 50 0.01 Kyushu Electric Power Co., Inc. JPY 9,370 72 0.02 Kyushu Financial Group, Inc. JPY 7,330 36 0.01 Lawson, Inc. JPY 1,400 69 0.02 Lintec Corp. JPY 800 12 – Lion Corp. JPY 5,000 31 0.01 LIXIL Group Corp. JPY 4,872 68 0.02 M3, Inc. JPY 4,000 52 0.01 Mabuchi Motor Co. Ltd. JPY 1,000 30 0.01 Maeda Road Co.nstruction Co. Ltd. JPY 1,000 12 – Makita Corp. JPY 2,500 91 0.02 Marubeni Corp. JPY 34,000 125 0.03 Marui Group Co. Ltd. JPY 5,000 41 0.01

266 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Maruichi Steel Tube Ltd. JPY 1,400 23 0.01 Matsui Securities Co. Ltd. JPY 2,400 14 – Matsumotokiyoshi Holdings Co. Ltd. JPY 800 23 0.01 Mazda Motor Corp. JPY 10,500 131 0.03 Medipal Holdings Corp. JPY 3,500 37 0.01 MEIJI Holdings Co. Ltd. JPY 2,336 112 0.03 Minebea Co. Ltd. JPY 6,000 44 0.01 Miraca Holdings, Inc. JPY 1,200 33 0.01 MISUMI Group, Inc. JPY 5,400 43 0.01 Mitsubishi Corp. JPY 25,900 308 0.08 Mitsubishi Chemical Holdings Corp. JPY 25,300 95 0.02 Mitsubishi Electric Corp. JPY 38,000 253 0.06 Mitsubishi Estate Co. Ltd. JPY 24,000 334 0.08 Mitsubishi Gas Chemical Co., Inc. JPY 9,000 31 0.01 Mitsubishi Heavy Industries Ltd. JPY 61,000 199 0.05 Mitsubishi Logistics Corp. JPY 3,000 26 0.01 Mitsubishi Materials Corp. JPY 25,000 57 0.01 Mitsubishi Motors Corp. JPY 12,300 65 0.02 Mitsubishi Shokuhin Co. Ltd. JPY 300 5 – Mitsubishi Tanabe Pharma Corp. JPY 4,500 50 0.01 Mitsubishi UFJ Financial Group, Inc. JPY 261,496 1,058 0.27 Mitsubishi UFJ Lease & Finance Co. Ltd. JPY 10,200 32 0.01 Mitsui & Co. Ltd. JPY 33,000 268 0.07 Mitsui Chemicals, Inc. JPY 19,000 46 0.01 Mitsui Engineering & Shipbuilding Co. Ltd. JPY 12,000 13 – Mitsui Fudosan Co. Ltd. JPY 18,000 328 0.08 Mitsui Mining & Smelting Co. Ltd. JPY 13,000 18 – Mitsui OSK Lines Ltd. JPY 22,714 38 0.01 Mizuho Financial Group, Inc. JPY 471,780 597 0.15 Mochida Pharmaceutical Co. Ltd. JPY 400 15 – MS&AD Insurance Group Holdings, Inc. JPY 9,744 179 0.05 Murata Manufacturing Co. Ltd. JPY 3,500 295 0.07 Musashino Bank Ltd. (The) JPY 700 17 – Nabtesco Corp. JPY 2,000 26 0.01 Nagase & Co. Ltd. JPY 2,500 20 0.01 Nagoya Railroad Co. Ltd. JPY 18,000 48 0.01 Nankai Electric Railway Co. Ltd. JPY 10,000 35 0.01 NEC Corp. JPY 50,000 107 0.03 Nexon Co. Ltd. JPY 2,100 18 – NGK Insulators Ltd. JPY 5,000 64 0.02 NGK Spark Plug Co. Ltd. JPY 4,000 64 0.02 NH Foods Ltd. JPY 4,000 53 0.01 NHK Spring Co. Ltd. JPY 4,000 26 0.01 Nichirei Corp. JPY 6,000 25 0.01 Nidec Corp. JPY 4,336 201 0.05 Nikon Corp. JPY 7,100 58 0.01 Nintendo Co. Ltd. JPY 2,000 240 0.06 Nippo Corp. JPY 1,000 12 – Nippon Electric Glass Co. Ltd. JPY 6,600 21 0.01 Nippon Express Co. Ltd. JPY 14,000 46 0.01 Nippon Kayaku Co. Ltd. JPY 4,000 26 0.01 Nippon Paint Holdings Co. Ltd. JPY 3,500 47 0.01 Nippon Paper Industries Co. Ltd. JPY 2,000 23 0.01 Nippon Shinyaku Co. Ltd. JPY 1,000 25 0.01 Nippon Shokubai Co. Ltd. JPY 600 29 0.01 Nippon Steel & Sumitomo Metal Corp. JPY 15,300 200 0.05 Nippon Telegraph & Telephone Corp. JPY 9,700 228 0.06 Nippon Television Holdings, Inc. JPY 800 9 – Nippon Yusen KK JPY 33,000 56 0.01 Nipro Corp. JPY 1,700 12 – Nishi-Nippon City Bank Ltd. (The) JPY 16,000 30 0.01 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 267 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Nishi-Nippon Railroad Co. Ltd. JPY 6,000 20 0.01 Nissan Chemical Industries Ltd. JPY 2,800 43 0.01 Nissan Motor Co. Ltd. JPY 44,100 288 0.07 Nisshin Seifun Group, Inc. JPY 5,390 50 0.01 Nisshin Steel Co. Ltd. JPY 1,400 9 – Nisshinbo Holdings, Inc. JPY 3,000 25 0.01 Nissin Foods Holdings Co. Ltd. JPY 1,400 42 0.01 Nitori Holdings Co. Ltd. JPY 1,200 62 0.02 Nitto Denko Corp. JPY 3,100 132 0.03 NOK Corp. JPY 2,200 33 0.01 Nomura Holdings, Inc. JPY 64,180 256 0.06 Nomura Real Estate Holdings, Inc. JPY 2,400 32 0.01 Nomura Research Institute Ltd. JPY 2,200 56 0.01 North Pacific Bank Ltd. JPY 6,400 16 – NS Solutions Corp. JPY 300 8 – NSK Ltd. JPY 9,100 65 0.02 NTN Corp. JPY 11,000 34 0.01 NTT Data Corp. JPY 2,600 83 0.02 NTT DOCOMO, Inc. JPY 25,500 297 0.07 NTT Urban Development Corp. JPY 3,000 19 – Obayashi Corp. JPY 14,000 85 0.02 Obic Co. Ltd. JPY 1,100 34 0.01 Odakyu Electric Railway Co. Ltd. JPY 12,300 76 0.02 Oji Holdings Corp. JPY 19,166 62 0.02 OKUMA Corp. JPY 3,000 14 – Olympus Corp. JPY 6,000 124 0.03 Omron Corp. JPY 3,900 83 0.02 Ono Pharmaceutical Co. Ltd. JPY 1,700 134 0.03 Onward Holdings Co. Ltd. JPY 3,000 12 – Oracle Corp. Japan JPY 500 14 – Orient Corp. JPY 7,000 9 – Oriental Land Co. Ltd. JPY 3,600 132 0.03 ORIX Corp. JPY 24,800 232 0.06 Osaka Gas Co. Ltd. JPY 39,000 101 0.03 Otsuka Corp. JPY 900 29 0.01 Otsuka Holdings Co. Ltd. JPY 7,300 151 0.04 PanaHome Corp. JPY 1,000 4 – Panasonic Corp. JPY 40,913 289 0.07 Park24 Co. Ltd. JPY 2,400 31 0.01 Pigeon Corp. JPY 2,100 35 0.01 Pola Orbis Holdings, Inc. JPY 400 16 – Rakuten, Inc. JPY 14,900 134 0.03 Recruit Holdings Co. Ltd. JPY 6,400 130 0.03 Rengo Co. Ltd. JPY 4,000 12 – Resona Holdings, Inc. JPY 42,900 146 0.04 Ricoh Co. Ltd. JPY 14,000 100 0.03 Rinnai Corp. JPY 800 42 0.01 Rohm Co. Ltd. JPY 1,900 59 0.02 Rohto Pharmaceutical Co. Ltd. JPY 2,000 21 0.01 Ryohin Keikaku Co. Ltd. JPY 400 53 0.01 San-In Godo Bank Ltd. (The) JPY 3,000 18 – Sankyo Co. Ltd. JPY 900 22 0.01 Sanrio Co. Ltd. JPY 1,100 19 – Santen Pharmaceutical Co. Ltd. JPY 8,000 70 0.02 Sapporo Holdings Ltd. JPY 3,000 8 – Sawai Pharmaceutical Co. Ltd. JPY 600 25 0.01 SBI Holdings, Inc. JPY 4,000 31 0.01 SCREEN Holdings Co. Ltd. JPY 4,000 14 – SCSK Corp. JPY 900 22 0.01 Secom Co. Ltd. JPY 3,600 149 0.04 Sega Sammy Holdings, Inc. JPY 4,040 28 0.01

268 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Seibu Holdings, Inc. JPY 2,900 37 0.01 Seiko Epson Corp. JPY 5,400 58 0.01 Seino Holdings Co. Ltd. JPY 3,000 22 0.01 Sekisui Chemical Co. Ltd. JPY 7,000 50 0.01 Sekisui House Ltd. JPY 11,000 119 0.03 Senshu Ikeda Holdings, Inc. JPY 5,880 17 – Seven & i Holdings Co. Ltd. JPY 14,660 435 0.11 Seven Bank Ltd. JPY 13,200 38 0.01 Sharp Corp. JPY 32,000 25 0.01 Shiga Bank Ltd. (The) JPY 5,000 16 – Shikoku Electric Power Co., Inc. JPY 3,280 37 0.01 Shimachu Co. Ltd. JPY 800 12 – Shimadzu Corp. JPY 5,000 45 0.01 Shimamura Co. Ltd. JPY 600 46 0.01 Shimano, Inc. JPY 1,500 150 0.04 Shimizu Corp. JPY 11,000 63 0.02 Shin-Etsu Chemical Co. Ltd. JPY 7,750 282 0.07 Shinsei Bank Ltd. JPY 20,000 27 0.01 Shionogi & Co. Ltd. JPY 5,600 130 0.03 Shiseido Co. Ltd. JPY 7,900 119 0.03 Shizuoka Bank Ltd. (The) JPY 11,000 72 0.02 Shochiku Co. Ltd. JPY 2,000 12 – Showa Denko KK JPY 30,000 24 0.01 Showa Shell Sekiyu KK JPY 3,900 22 0.01 SKY Perfect JSAT Holdings, Inc. JPY 3,000 10 – SMC Corp. JPY 1,100 172 0.04 SoftBank Group Corp. JPY 17,400 596 0.15 Sohgo Security Services Co. Ltd. JPY 1,000 30 0.01 Sojitz Corp. JPY 27,000 37 0.01 Sompo Japan Nipponkoa Holdings, Inc. JPY 7,400 147 0.04 Sony Corp. JPY 23,900 415 0.10 Sony Financial Holdings, Inc. JPY 3,300 38 0.01 Sotetsu Holdings, Inc. JPY 7,000 26 0.01 Square Enix Holdings Co. Ltd. JPY 1,000 17 – Stanley Electric Co. Ltd. JPY 2,600 37 0.01 Sugi Holdings Co. Ltd. JPY 700 22 0.01 Sumco Corp. JPY 2,200 14 – Sumitomo Corp. JPY 22,700 158 0.04 Sumitomo Chemical Co. Ltd. JPY 29,000 108 0.03 Sumitomo Dainippon Pharma Co. Ltd. JPY 3,100 22 0.01 Sumitomo Electric Industries Ltd. JPY 14,600 132 0.03 Sumitomo Forestry Co. Ltd. JPY 2,500 19 – Sumitomo Heavy Industries Ltd. JPY 11,000 33 0.01 Sumitomo Metal Mining Co. Ltd. JPY 10,000 83 0.02 Sumitomo Mitsui Financial Group, Inc. JPY 24,800 625 0.16 Sumitomo Mitsui Trust Holdings, Inc. JPY 69,080 168 0.04 Sumitomo Osaka Cement Co. Ltd. JPY 8,000 20 0.01 Sumitomo Real Estate Sales Co. Ltd. JPY 340 6 – Sumitomo Realty & Development Co. Ltd. JPY 8,000 174 0.04 Sumitomo Rubber Industries Ltd. JPY 3,600 34 0.01 Sundrug Co. Ltd. JPY 700 24 0.01 Suntory Beverage & Food Ltd. JPY 1,900 48 0.01 Suruga Bank Ltd. JPY 4,000 50 0.01 Suzuken Co. Ltd. JPY 1,600 36 0.01 Suzuki Motor Corp. JPY 8,000 171 0.04 Sysmex Corp. JPY 2,700 95 0.02 T&D Holdings, Inc. JPY 11,800 96 0.02 Taiheiyo Cement Corp. JPY 24,000 50 0.01 Taisei Corp. JPY 21,000 93 0.02 Taisho Pharmaceutical Holdings Co. Ltd. JPY 900 35 0.01 Taiyo Nippon Sanso Corp. JPY 2,700 18 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 269 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Taiyo Yuden Co. Ltd. JPY 2,600 22 0.01 Takara Holdings, Inc. JPY 5,000 21 0.01 Takashimaya Co. Ltd. JPY 5,000 28 0.01 Takeda Pharmaceutical Co. Ltd. JPY 14,500 442 0.11 TDK Corp. JPY 2,500 96 0.02 Teijin Ltd. JPY 20,000 43 0.01 Temp Holdings Co. Ltd. JPY 900 27 0.01 Terumo Corp. JPY 6,400 116 0.03 THK Co. Ltd. JPY 2,800 32 0.01 Tobu Railway Co. Ltd. JPY 21,000 63 0.02 Toda Corp. JPY 6,000 19 – Toho Co. Ltd. JPY 2,220 36 0.01 Toho Gas Co. Ltd. JPY 10,000 40 0.01 Tohoku Electric Power Co., Inc. JPY 9,662 91 0.02 Tokai Rika Co. Ltd. JPY 800 12 – Tokio Marine Holdings, Inc. JPY 13,200 321 0.08 Tokyo Broadcasting System Holdings, Inc. JPY 800 7 – Tokyo Electric Power Co., Inc. JPY 29,500 135 0.03 Tokyo Electron Ltd. JPY 3,200 109 0.03 Tokyo Gas Co. Ltd. JPY 46,000 150 0.04 Tokyo Tatemono Co. Ltd. JPY 4,500 38 0.01 Tokyu Corp. JPY 22,000 114 0.03 Tokyu Fudosan Holdings Corp. JPY 10,400 47 0.01 TonenGeneral Sekiyu KK JPY 5,111 35 0.01 Toppan Printing Co. Ltd. JPY 10,000 56 0.01 Toray Industries, Inc. JPY 29,000 162 0.04 Toshiba Corp. JPY 74,000 136 0.03 Toshiba TEC Corp. JPY 2,000 5 – Tosoh Corp. JPY 12,000 41 0.01 TOTO Ltd. JPY 2,750 58 0.01 Toyo Seikan Group Holdings Ltd. JPY 3,100 36 0.01 Toyo Suisan Kaisha Ltd. JPY 2,000 48 0.01 Toyo Tire & Rubber Co. Ltd. JPY 1,900 26 0.01 Toyobo Co. Ltd. JPY 18,000 17 – Toyoda Gosei Co. Ltd. JPY 1,100 16 – Toyota Boshoku Corp. JPY 1,500 20 0.01 Toyota Industries Corp. JPY 3,100 102 0.03 Toyota Motor Corp. JPY 50,100 1,982 0.50 Toyota Tsusho Corp. JPY 4,600 69 0.02 Trend Micro, Inc. JPY 2,000 48 0.01 Tsumura & Co. JPY 1,100 17 – Tsuruha Holdings, Inc. JPY 400 22 0.01 TV Asahi Holdings Corp. JPY 400 4 – Ube Industries Ltd. JPY 20,000 25 0.01 Unicharm Corp. JPY 6,400 78 0.02 UNY Group Holdings Co. Ltd. JPY 2,900 11 – Ushio, Inc. JPY 2,200 18 – USS Co. Ltd. JPY 4,500 49 0.01 Wacoal Holdings Corp. JPY 2,000 16 – West Japan Railway Co. JPY 3,500 153 0.04 Yahoo Japan Corp. JPY 27,200 72 0.02 Yakult Honsha Co. Ltd. JPY 1,900 62 0.02 Yamada Denki Co. Ltd. JPY 13,100 40 0.01 Yamaguchi Financial Group, Inc. JPY 5,000 39 0.01 Yamaha Corp. JPY 3,600 55 0.01 Yamaha Motor Co. Ltd. JPY 5,000 75 0.02 Yamato Holdings Co. Ltd. JPY 7,000 96 0.02 Yamato Kogyo Co. Ltd. JPY 1,000 15 – Yamazaki Baking Co. Ltd. JPY 3,000 31 0.01 Yaskawa Electric Corp. JPY 5,000 35 0.01 Yokogawa Electric Corp. JPY 5,100 35 0.01

270 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Japan 9.53% (8.96%) (continued) Yokohama Rubber Co. Ltd. (The) JPY 2,500 31 0.01 Zenkoku Hosho Co. Ltd. JPY 1,300 29 0.01 Zeon Corp. JPY 3,000 17 – 37,882 9.53 Jersey 0.07% (0.06%) Delphi Automotive plc USD 5,600 290 0.07 290 0.07 Liberia 0.04% (0.03%) Royal Caribbean Cruises Ltd. USD 2,910 164 0.04 164 0.04 Luxembourg 0.11% (0.14%) ArcelorMittal EUR 19,963 85 0.02 L’Occitane International SA HKD 9,000 13 – RTL Group SA EUR 740 40 0.01 Samsonite International SA HKD 26,400 55 0.02 SES SA EUR 5,810 123 0.03 Subsea 7 SA NOK 6,570 36 0.01 Tenaris SA EUR 9,050 83 0.02 435 0.11 Malaysia 0.41% (0.52%) AirAsia Bhd. MYR 40,800 9 – Alliance Financial Group Bhd. MYR 22,300 13 – AMMB Holdings Bhd. MYR 43,300 34 0.01 Astro Malaysia Holdings Bhd. MYR 30,400 14 – Axiata Group Bhd. MYR 80,500 81 0.02 Berjaya Sports Toto Bhd. MYR 23,174 11 – British American Tobacco Malaysia Bhd. MYR 3,100 31 0.01 Bumi Armada Bhd. MYR 34,600 5 – CIMB Group Holdings Bhd. MYR 86,900 68 0.02 DiGi.Com Bhd. MYR 75,300 68 0.02 Felda Global Ventures Holdings Bhd. MYR 21,200 6 – Gamuda Bhd. MYR 44,400 32 0.01 Genting Bhd. MYR 53,100 62 0.01 Genting Malaysia Bhd. MYR 56,700 40 0.01 Hong Leong Bank Bhd. MYR 10,860 24 0.01 IHH Healthcare Bhd. MYR 48,100 48 0.01 IJM Corp. Bhd. MYR 48,200 25 0.01 IOI Corp. Bhd. MYR 93,000 63 0.02 IOI Properties Group Bhd. MYR 31,000 11 – Kuala Lumpur Kepong Bhd. MYR 10,300 37 0.01 Lafarge Malaysia Bhd. MYR 9,200 13 – Malayan Banking Bhd. MYR 86,800 117 0.03 Maxis Bhd. MYR 43,500 47 0.01 MISC Bhd. MYR 29,700 41 0.01 MMC Corp. Bhd. MYR 26,500 10 – Petronas Chemicals Group Bhd. MYR 61,400 62 0.02 Petronas Dagangan Bhd. MYR 6,500 24 0.01 Petronas Gas Bhd. MYR 15,300 54 0.01 PPB Group Bhd. MYR 11,500 28 0.01 Public Bank Bhd. MYR 64,730 189 0.05 RHB Capital Bhd. MYR 14,500 14 – SapuraKencana Petroleum Bhd. MYR 74,100 25 0.01 Sime Darby Bhd. MYR 62,600 84 0.02 SP Setia Bhd. Group MYR 11,700 6 – Telekom Malaysia Bhd. MYR 23,300 25 0.01 Tenaga Nasional Bhd. MYR 67,600 135 0.03 UEM Sunrise Bhd. MYR 26,500 5 – UMW Holdings Bhd. MYR 18,900 25 0.01

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 271 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Malaysia 0.41% (0.52%) YTL Corp. Bhd. MYR 109,400 26 0.01 YTL Power International Bhd. MYR 65,520 16 – 1,628 0.41 Malta 0.01% (0.01%) BGP Holdings NPV^ EUR 196,800 – – Brait SE ZAR 6,490 48 0.01 48 0.01 Mauritius 0.01% (0.01%) Golden Agri-Resources Ltd. SGD 129,178 23 0.01 23 0.01 Mexico 0.54% (0.63%) Alfa SAB de CV ‘A’ MXN 50,070 71 0.02 Alsea SAB de CV MXN 10,000 21 0.01 America Movil SAB de CV MXN 550,708 308 0.08 Arca Continental SAB de CV MXN 5,500 21 0.01 Cemex SAB de CV, ADR USD 23,265 119 0.03 Coca-Cola Femsa SAB de CV MXN 6,810 32 0.01 El Puerto de Liverpool SAB de CV ‘C1’ MXN 3,800 35 0.01 Fibra Uno Administracion SA de CV, REIT MXN 45,300 65 0.02 Fomento Economico Mexicano SAB de CV MXN 41,650 254 0.06 Gentera SAB de CV MXN 40,000 45 0.01 Gruma SAB de CV ‘B’ MXN 3,200 32 0.01 Grupo Aeroportuario del Pacifico SAB de CV ‘B’ MXN 6,600 39 0.01 Grupo Aeroportuario del Sureste SAB de CV ‘B’ MXN 4,500 47 0.01 Grupo Bimbo SAB de CV MXN 46,400 80 0.02 Grupo Carso SAB de CV MXN 13,250 42 0.01 Grupo Comercial Chedraui SA de CV MXN 10,000 18 – Grupo Elektra SAB DE CV MXN 1,390 18 – Grupo Financiero Banorte SAB de CV ‘O’ MXN 45,900 154 0.04 Grupo Financiero Inbursa SAB de CV ‘O’ MXN 38,550 51 0.01 Grupo Financiero Santander Mexico SAB de CV ‘B’ MXN 33,030 34 0.01 Grupo Mexico SAB de CV MXN 74,639 130 0.03 Grupo Televisa SAB MXN 49,950 172 0.04 Industrias Penoles SAB de CV MXN 3,140 31 0.01 Kimberly-Clark de Mexico SAB de CV ‘A’ MXN 23,750 36 0.01 Mexichem SAB de CV MXN 22,412 40 0.01 Minera Frisco SAB de CV MXN 14,640 6 – OHL Mexico SAB de CV MXN 12,700 12 – Organizacion Soriana SAB de CV ‘B’ MXN 7,100 10 – Promotora y Operadora de Infraestructura SAB de CV MXN 4,000 31 0.01 Wal-Mart de Mexico SAB de CV MXN 114,570 186 0.05 2,140 0.54 Netherlands 1.60% (1.46%) Aegon NV EUR 33,491 134 0.03 AerCap Holdings NV USD 3,200 82 0.02 Airbus Group SE EUR 10,830 439 0.11 Akzo Nobel NV EUR 4,272 190 0.05 Altice NV ‘A’ EUR 5,400 79 0.02 Altice NV ‘B’ EUR 1,800 27 0.01 ASML Holding NV EUR 6,024 346 0.09 Boskalis Westminster EUR 1,630 50 0.01 Chicago Bridge & Iron Co. NV USD 1,900 53 0.01 CNH Industrial NV EUR 18,081 83 0.02 Core Laboratories NV USD 700 54 0.01 Fiat Chrysler Automobiles NV EUR 16,800 176 0.05 Gemalto NV EUR 1,690 76 0.02 GrandVision NV EUR 1,000 17 – Heineken NV EUR 4,348 246 0.06

272 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Netherlands 1.60% (1.46%) (continued) Heineken Holding NV EUR 1,960 98 0.03 ING Groep NV, CVA EUR 73,022 686 0.17 Koninklijke Ahold NV EUR 16,231 210 0.05 Koninklijke DSM NV EUR 3,480 118 0.03 Koninklijke KPN NV EUR 63,563 146 0.04 Koninklijke Philips NV EUR 16,832 277 0.07 Koninklijke Vopak NV EUR 1,100 29 0.01 LyondellBasell Industries NV ‘A’ USD 7,440 452 0.11 Mobileye NV USD 3,420 107 0.03 Mylan NV USD 7,313 199 0.05 NN Group NV EUR 3,140 64 0.02 NXP Semiconductors NV USD 4,740 280 0.07 OCI NV EUR 1,640 29 0.01 QIAGEN NV EUR 4,910 80 0.02 Randstad Holding NV EUR 2,070 78 0.02 RELX NV EUR 19,020 206 0.05 Sensata Technologies Holding NV USD 3,200 95 0.02 STMicroelectronics NV EUR 14,359 68 0.02 TNT Express NV EUR 7,892 39 0.01 Unilever NV, CVA EUR 29,427 858 0.22 Wolters Kluwer NV EUR 6,060 128 0.03 Yandex NV ‘A’ USD 4,600 40 0.01 6,339 1.60 New Zealand 0.07% (0.07%) Auckland International Airport Ltd. NZD 21,024 46 0.01 Contact Energy Ltd. NZD 6,992 16 0.01 Fisher & Paykel Healthcare Corp. Ltd. NZD 10,500 34 0.01 Fletcher Building Ltd. NZD 13,140 42 0.01 Kiwi Property Group Ltd., REIT NZD 15,800 9 – Ryman Healthcare Ltd. NZD 8,270 27 0.01 SKY Network Television Ltd. NZD 3,760 9 – SKYCITY Entertainment Group Ltd. NZD 11,026 19 0.01 Spark New Zealand Ltd. NZD 36,857 51 0.01 Vector Ltd. NZD 6,520 9 – Warehouse Group Ltd. (The) NZD 3,030 4 – 266 0.07 Norway 0.24% (0.26%) DNB ASA NOK 20,246 189 0.05 Gjensidige Forsikring ASA NOK 4,280 39 0.01 Marine Harvest ASA NOK 6,040 52 0.01 Norsk Hydro ASA NOK 27,085 70 0.02 Orkla ASA NOK 15,405 82 0.02 Schibsted ASA ‘A’ NOK 1,000 23 0.01 Schibsted ASA ‘B’ NOK 1,000 22 0.01 Statoil ASA NOK 19,293 215 0.05 Telenor ASA NOK 12,519 161 0.04 Yara International ASA NOK 3,226 90 0.02 943 0.24 Panama 0.06% (0.05%) Carnival Corp. USD 7,920 247 0.06 247 0.06 Papua New Guinea 0.02% (0.03%) Oil Search Ltd. AUD 22,470 79 0.02 79 0.02 Poland 0.16% (0.17%) Alior Bank SA PLN 2,000 29 0.01 Bank Handlowy w Warszawie SA PLN 840 13 – Bank Pekao SA PLN 2,540 68 0.02 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 273 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Poland 0.16% (0.17%) (continued) Bank Zachodni WBK SA PLN 550 31 0.01 Enea SA PLN 2,880 7 – Getin Noble Bank SA PLN 22,683 4 – KGHM Polska Miedz SA PLN 2,880 48 0.01 LPP SA PLN 30 39 0.01 mBank SA PLN 270 18 0.01 Orange Polska SA PLN 12,800 17 0.01 PGE Polska Grupa Energetyczna SA PLN 14,500 36 0.01 Polski Koncern Naftowy Orlen SA PLN 7,030 80 0.02 Polskie Gornictwo Naftowe i Gazownictwo SA PLN 34,550 41 0.01 Powszechna Kasa Oszczednosci Bank Polski SA PLN 17,400 94 0.02 Powszechny Zaklad Ubezpieczen SA PLN 1,240 84 0.02 Synthos SA PLN 10,130 7 – Tauron Polska Energia SA PLN 28,560 16 – 632 0.16 Portugal 0.05% (0.06%) Banco Comercial Portugues SA EUR 716,760 30 0.01 Banco Espirito Santo SA^ EUR 55,927 5 – EDP – Energias de Portugal SA EUR 36,980 92 0.02 Galp Energia SGPS SA EUR 7,620 55 0.01 Jeronimo Martins SGPS SA EUR 4,060 37 0.01 219 0.05 Singapore 0.63% (0.67%) Ascendas Real Estate Investment Trust SGD 45,000 51 0.01 Avago Technologies Ltd. USD 4,840 367 0.09 CapitaLand Ltd. SGD 51,425 74 0.02 CapitaLand Commercial Trust Ltd., REIT SGD 40,178 26 0.01 CapitaLand Mall Trust, REIT SGD 51,000 48 0.01 City Developments Ltd. SGD 11,249 44 0.01 ComfortDelGro Corp. Ltd. SGD 40,000 56 0.02 COSCO Corp. Singapore Ltd.^ SGD 19,000 3 – DBS Group Holdings Ltd. SGD 33,132 274 0.07 Flextronics International Ltd. USD 12,044 87 0.02 Global Logistic Properties Ltd. SGD 45,000 48 0.01 Hutchison Port Holdings Trust ‘U’ USD 86,000 31 0.01 Indofood Agri Resources Ltd. SGD 10,000 3 – Jardine Cycle & Carriage Ltd. SGD 2,222 34 0.01 Keppel Corp. Ltd. SGD 26,390 91 0.02 M1 Ltd. SGD 8,000 11 – Neptune Orient Lines Ltd. SGD 22,000 11 – Oversea-Chinese Banking Corp. Ltd. SGD 58,151 254 0.06 Sembcorp Industries Ltd. SGD 18,514 34 0.01 Sembcorp Marine Ltd. SGD 18,000 22 0.01 SIA Engineering Co. Ltd. SGD 4,000 7 – Singapore Airlines Ltd. SGD 11,373 59 0.02 Singapore Exchange Ltd. SGD 15,600 55 0.01 Singapore Post Ltd. SGD 31,000 26 0.01 Singapore Press Holdings Ltd. SGD 30,531 56 0.01 Singapore Technologies Engineering Ltd. SGD 29,300 44 0.01 Singapore Telecommunications Ltd. SGD 139,372 254 0.06 SMRT Corp. Ltd. SGD 16,000 10 – StarHub Ltd. SGD 11,290 19 0.01 Suntec Real Estate Investment Trust SGD 41,000 32 0.01 United Overseas Bank Ltd. SGD 22,580 212 0.05 UOL Group Ltd. SGD 8,808 28 0.01 Venture Corp. Ltd. SGD 4,700 18 0.01 Wilmar International Ltd. SGD 42,000 58 0.02 Wing Tai Holdings Ltd. SGD 11,000 9 –

274 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Singapore 0.63% (0.67%) (continued) Yangzijiang Shipbuilding Holdings Ltd. SGD 40,000 23 0.01 Yanlord Land Group Ltd. SGD 11,000 6 – 2,485 0.63 South Africa 0.95% (0.99%) Adcock Ingram Holdings Ltd. ZAR 2,808 8 – Adcock Ingram Holdings Ltd. Warrant 26/07/2019 ZAR 153 – – AECI Ltd. ZAR 2,550 11 – African Bank Investments Ltd.^ ZAR 28,373 – – African Rainbow Minerals Ltd. ZAR 1,830 6 – Anglo American Platinum Ltd. ZAR 1,689 23 0.01 AngloGold Ashanti Ltd. ZAR 7,342 48 0.01 Aspen Pharmacare Holdings Ltd. ZAR 6,090 93 0.02 Assore Ltd. ZAR 830 4 – AVI Ltd. ZAR 6,710 28 0.01 Barclays Africa Group Ltd. ZAR 6,890 59 0.02 Barloworld Ltd. ZAR 4,420 17 0.01 Bidvest Group Ltd. (The) ZAR 5,367 91 0.02 Capital Property Fund Ltd., REIT ZAR 34,910 28 0.01 Capitec Bank Holdings Ltd. ZAR 935 26 0.01 Clicks Group Ltd. ZAR 5,390 26 0.01 Coronation Fund Managers Ltd. ZAR 4,710 17 – DataTec Ltd. ZAR 3,740 11 – Discovery Ltd. ZAR 8,249 57 0.02 Exxaro Resources Ltd. ZAR 2,770 9 – FirstRand Ltd. ZAR 58,870 142 0.04 Foschini Group Ltd. (The) ZAR 5,000 36 0.01 Gold Fields Ltd. ZAR 14,059 29 0.01 Grindrod Ltd. ZAR 8,930 7 – Growthpoint Properties Ltd., REIT ZAR 37,460 47 0.01 Hyprop Investments Ltd., REIT ZAR 4,630 28 0.01 Impala Platinum Holdings Ltd. ZAR 10,432 24 0.01 Imperial Holdings Ltd. ZAR 4,030 36 0.01 Investec Ltd. ZAR 4,120 22 0.01 JSE Ltd. ZAR 1,700 11 – Kumba Iron Ore Ltd. ZAR 1,420 6 – Liberty Holdings Ltd. ZAR 2,840 18 0.01 Life Healthcare Group Holdings Ltd. ZAR 20,550 39 0.01 Massmart Holdings Ltd. ZAR 2,450 15 – Mediclinic International Ltd. ZAR 9,272 53 0.01 MMI Holdings Ltd. ZAR 22,700 28 0.01 Mondi Ltd. ZAR 2,310 34 0.01 Mr Price Group Ltd. ZAR 3,000 31 0.01 MTN Group Ltd. ZAR 34,518 314 0.08 Nampak Ltd. ZAR 13,680 16 – Naspers Ltd. ‘N’ ZAR 7,658 726 0.18 Nedbank Group Ltd. 03/05/2004 ZAR 3,810 43 0.01 Netcare Ltd. ZAR 28,070 53 0.01 Northam Platinum Ltd. ZAR 5,570 9 – Omnia Holdings Ltd. ZAR 2,000 15 – Pick n Pay Holdings Ltd. ZAR 5,150 7 – Pick n Pay Stores Ltd. ZAR 4,690 15 – Pioneer Foods Group Ltd. ZAR 2,480 25 0.01 PPC Ltd. ZAR 9,066 8 – Redefine Properties Ltd., REIT ZAR 78,881 45 0.01 Remgro Ltd. ZAR 9,760 132 0.03 Resilient Property, Income Fund Ltd., REIT ZAR 4,640 27 0.01 Reunert Ltd. ZAR 3,940 13 – RMB Holdings Ltd. ZAR 14,810 49 0.01

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 275 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets South Africa 0.95% (0.99%) (continued) Sanlam Ltd. ZAR 38,120 120 0.03 Santam Ltd. ZAR 930 10 – Sappi Ltd. ZAR 10,300 25 0.01 Sasol Ltd. ZAR 11,040 234 0.06 Shoprite Holdings Ltd. ZAR 8,750 67 0.02 Sibanye Gold Ltd. ZAR 14,059 17 – SPAR Group Ltd. (The) ZAR 3,321 32 0.01 Standard Bank Group Ltd. ZAR 24,288 174 0.04 Steinhoff International Holdings Ltd. ZAR 43,091 176 0.05 Sun International Ltd. ZAR 2,180 10 – Telkom SA SOC Ltd. ZAR 8,000 28 0.01 Tiger Brands Ltd. ZAR 2,743 45 0.01 Tongaat Hulett Ltd. ZAR 2,070 13 – Truworths International Ltd. ZAR 9,270 41 0.01 Vodacom Group Ltd. ZAR 6,600 46 0.01 Woolworths Holdings Ltd. ZAR 17,885 90 0.02 3,793 0.95 South Korea 1.78% (1.76%) AMOREPACIFIC Corp. KRW 600 126 0.03 AMOREPACIFIC Corp. KRW 600 54 0.01 BNK Financial Group, Inc. KRW 5,208 41 0.01 Celltrion, Inc. KRW 1,734 71 0.02 CJ CheilJedang Corp. KRW 190 41 0.01 CJ Corp. KRW 280 43 0.01 Coway Co. Ltd. KRW 1,080 54 0.01 Daelim Industrial Co. Ltd. KRW 700 30 0.01 Daewoo Engineering & Construction Co. Ltd. KRW 2,400 10 – Daewoo International Corp. KRW 910 12 – Daewoo Securities Co. Ltd. KRW 4,762 34 0.01 Daewoo Shipbuilding & Marine Engineering Co. Ltd. KRW 1,520 6 – Kakao Corp. KRW 290 19 0.01 DGB Financial Group, Inc. KRW 3,191 19 – Dongbu Insurance Co. Ltd. KRW 950 35 0.01 Doosan Corp. KRW 170 11 – Doosan Heavy Industries & Construction Co. Ltd. KRW 1,200 15 – Doosan Infracore Co. Ltd. KRW 1,640 6 – E-Mart Co. Ltd. KRW 399 51 0.01 GS Engineering & Construction Corp. KRW 1,455 22 0.01 GS Holdings Corp. KRW 1,010 29 0.01 Hana Financial Group, Inc. KRW 5,707 91 0.02 Hanjin Shipping Co. Ltd. KRW 2,034 6 – Hankook Tire Co. Ltd. KRW 1,334 33 0.01 Hanwha Chemical Corp. KRW 1,520 19 0.01 Hanwha Corp. KRW 1,600 37 0.01 Hanwha Life Insurance Co. Ltd. KRW 5,090 24 0.01 Hanwha Techwin Co. Ltd. KRW 1,020 19 0.01 Hotel Shilla Co. Ltd. KRW 620 37 0.01 Hyosung Corp. KRW 750 52 0.01 Hyundai Development Co-Engineering & Construction KRW 1,260 45 0.01 Hyundai Engineering & Construction Co. Ltd. KRW 1,600 35 0.01 Hyundai Glovis Co. Ltd. KRW 320 42 0.01 Hyundai Heavy Industries Co. Ltd. KRW 890 55 0.01 Hyundai Marine & Fire Insurance Co. Ltd. KRW 1,320 24 0.01 Hyundai Merchant Marine Co. Ltd. KRW 2,073 9 – Hyundai Mipo Dockyard Co. Ltd. KRW 300 13 – Hyundai Mobis Co. Ltd. KRW 1,200 164 0.04 Hyundai Motor Co. KRW 3,100 289 0.07 Hyundai Motor Co. Preference KRW 440 27 0.01 Hyundai Motor Co. 2nd Preference KRW 690 43 0.01 Hyundai Steel Co. KRW 920 30 0.01 Hyundai Wia Corp. KRW 380 29 0.01

276 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets South Korea 1.78% (1.76%) (continued) Industrial Bank of Korea KRW 3,500 29 0.01 Kangwon Land, Inc. KRW 2,290 56 0.01 KB Financial Group, Inc., ADR USD 7,408 146 0.04 KCC Corp. KRW 110 28 0.01 Kia Motors Corp. KRW 5,220 162 0.04 Korea Aerospace Industries Ltd. KRW 950 41 0.01 Korea Electric Power Corp., ADR USD 9,860 140 0.04 Korea Gas Corp. KRW 500 12 – Korea Investment Holdings Co. Ltd. KRW 1,190 41 0.01 Korea Zinc Co. Ltd. KRW 210 64 0.02 KT Corp., ADR USD 7,000 60 0.02 KT&G Corp. KRW 2,440 155 0.04 Kumho Petrochemical Co. Ltd. KRW 450 17 – LG Corp. KRW 1,660 61 0.02 LG Chem Ltd. KRW 849 140 0.04 LG Display Co. Ltd. KRW 4,550 62 0.02 LG Electronics, Inc., GDR Preference EUR 12,140 80 0.02 LG Hausys Ltd. KRW 190 19 – LG Household & Health Care Ltd. KRW 170 85 0.02 Lotte Chemical Corp. KRW 340 53 0.01 Lotte Confectionery Co. Ltd. KRW 20 24 0.01 Lotte Shopping Co. Ltd. KRW 200 30 0.01 LS Corp. KRW 400 9 – NAVER Corp. KRW 541 177 0.04 NCSoft Corp. KRW 350 39 0.01 NH Investment & Securities Co. Ltd. KRW 2,920 18 – OCI Co. Ltd. KRW 300 15 – Orion Corp. KRW 90 52 0.01 POSCO, ADR USD 5,960 154 0.04 S-1 Corp. KRW 570 31 0.01 Samsung C&T Corp. KRW 1,381 126 0.03 Samsung Electro-Mechanics Co. Ltd. 14/06/1999 KRW 1,070 39 0.01 Samsung Electronics Co. Ltd. KRW 40 29 0.01 Samsung Electronics Co. Ltd., GDR USD 4,106 1,491 0.38 Samsung Electronics Co. Ltd. Preference KRW 370 215 0.05 Samsung Engineering Co. Ltd. KRW 600 11 – Samsung Fire & Marine Insurance Co. Ltd. KRW 780 134 0.03 Samsung Heavy Industries Co. Ltd. KRW 2,430 20 0.01 Samsung Life Insurance Co. Ltd. KRW 1,230 72 0.02 Samsung SDI Co. Ltd. KRW 1,217 77 0.02 Samsung SDS Co. Ltd. KRW 540 92 0.02 Samsung Securities Co. Ltd. KRW 1,219 33 0.01 Shinhan Financial Group Co. Ltd. KRW 225 5 – Shinhan Financial Group Co. Ltd., ADR USD 9,000 214 0.05 Shinsegae Co. Ltd. KRW 261 35 0.01 SK Holdings Co. Ltd. KRW 674 103 0.03 SK Hynix, Inc. KRW 2,350 50 0.01 SK Hynix, Inc., GDR USD 8,000 169 0.04 SK Innovation Co. Ltd. KRW 1,329 87 0.02 SK Networks Co. Ltd. KRW 1,480 6 – SK Telecom Co. Ltd., ADR USD 7,250 117 0.03 S-Oil Corp. KRW 840 33 0.01 Woori Bank KRW 4,950 28 0.01 Yuhan Corp. KRW 217 31 0.01 7,069 1.78 Spain 1.34% (1.43%) Abertis Infraestructuras 02/06/2006 EUR 9,345 105 0.03 Acciona SA EUR 360 19 – Acerinox SA EUR 1,561 11 – ACS Actividades de Construccion y Servicios SA EUR 2,889 62 0.02 Aena SA EUR 1,240 94 0.02 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 277 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Spain 1.34% (1.43%) (continued) Amadeus IT Holding SA ‘A’ EUR 7,870 227 0.06 Banco Bilbao Vizcaya Argentaria SA EUR 116,097 678 0.17 Banco Bilbao Vizcaya Argentaria SA Rights 19/10/2015 EUR 116,097 7 – Banco de Sabadell SA EUR 84,472 122 0.03 Banco Popular Espanol SA EUR 29,646 82 0.02 Banco Santander SA EUR 268,408 1,001 0.25 Bankia SA EUR 87,120 77 0.02 Bankinter SA EUR 11,698 59 0.02 CaixaBank SA EUR 48,259 134 0.03 Corp. Financiera Alba SA EUR 340 10 – Distribuidora Internacional de Alimentacion SA EUR 11,960 51 0.01 EDP Renovaveis SA EUR 5,610 26 0.01 Enagas SA EUR 3,940 77 0.02 Endesa SA EUR 6,090 87 0.02 Ferrovial SA EUR 7,280 120 0.03 Gas Natural SDG SA EUR 6,176 88 0.02 Grifols SA EUR 3,620 103 0.03 Grifols SA Preference ‘A’ EUR 2,460 52 0.01 Iberdrola SA EUR 107,462 490 0.12 Industria de Diseno Textil SA EUR 21,550 489 0.12 Mapfre SA EUR 20,317 38 0.01 Mediaset Espana Comunicacion SA EUR 2,885 22 0.01 Red Electrica Corp. SA EUR 2,050 116 0.03 Repsol SA EUR 20,740 182 0.05 Telefonica SA EUR 82,131 673 0.17 Zardoya Otis SA EUR 3,315 26 0.01 5,328 1.34 Sweden 1.13% (1.15%) Alfa Laval AB SEK 6,070 67 0.02 Assa Abloy AB ‘B’ SEK 18,855 228 0.06 Atlas Copco AB ‘A’ SEK 12,074 199 0.05 Atlas Copco AB ‘B’ SEK 7,520 115 0.03 Boliden AB SEK 5,560 68 0.02 Electrolux AB SEK 4,200 81 0.02 Getinge AB ‘B’ SEK 3,680 56 0.01 Hennes & Mauritz AB ‘B’ SEK 16,260 406 0.10 Hexagon AB ‘B’ SEK 5,380 112 0.03 Husqvarna AB ‘A’ SEK 1,710 7 – Husqvarna AB ‘B’ SEK 8,550 38 0.01 Industrivarden AB ‘A’ SEK 3,900 51 0.01 Industrivarden AB ‘C’ SEK 2,270 27 0.01 Investment AB Kinnevik ‘B’ SEK 4,010 80 0.02 Investor AB ‘B’ SEK 8,470 203 0.05 Lundin Petroleum AB SEK 4,950 49 0.01 Meda AB ‘A’ SEK 5,220 48 0.01 Nordea Bank AB SEK 59,456 449 0.11 Sandvik AB SEK 21,590 130 0.03 Securitas AB ‘B’ SEK 6,170 51 0.01 Skandinaviska Enskilda Banken AB ‘A’ SEK 27,494 196 0.05 Skanska AB ‘B’ SEK 7,590 96 0.02 SKF AB ‘B’ SEK 7,860 98 0.03 Svenska Cellulosa AB SCA ‘B’ SEK 10,997 196 0.05 Svenska Handelsbanken AB ‘A’ SEK 28,038 271 0.07 Swedbank AB ‘A’ SEK 20,327 306 0.08 Swedish Match AB SEK 4,020 81 0.02 Tele2 AB ‘B’ SEK 6,240 37 0.01 Telefonaktiebolaget LM Ericsson ‘B’ SEK 58,014 394 0.10 TeliaSonera AB SEK 50,638 164 0.04 Volvo AB ‘B’ SEK 30,485 205 0.05 4,509 1.13

278 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Switzerland 3.84% (3.78%) ABB Ltd. CHF 43,139 514 0.13 ACE Ltd. USD 6,180 421 0.11 Actelion Ltd. CHF 1,870 150 0.04 Adecco SA CHF 2,460 121 0.03 Aryzta AG CHF 1,820 57 0.01 Baloise Holding AG CHF 900 68 0.02 Banque Cantonale Vaudoise CHF 60 24 0.01 Barry Callebaut AG CHF 40 31 0.01 Chocoladefabriken Lindt & Spruengli AG CHF 2 96 0.02 Chocoladefabriken Lindt & Spruengli AG Participating Certificate CHF 20 79 0.02 Cie Financiere Richemont SA CHF 9,680 541 0.14 Clariant AG CHF 5,320 62 0.02 Credit Suisse Group AG CHF 30,204 485 0.12 DKSH Holding AG CHF 520 21 0.01 Dufry AG CHF 500 41 0.01 EMS-Chemie Holding AG CHF 150 38 0.01 Galenica AG CHF 100 90 0.02 GAM Holding AG CHF 3,530 41 0.01 Garmin Ltd. USD 2,230 53 0.01 Geberit AG CHF 740 157 0.04 Givaudan SA CHF 164 190 0.05 Julius Baer Group Ltd. CHF 4,178 130 0.03 Kuehne + Nagel International AG CHF 1,010 91 0.02 LafargeHolcim Ltd. CHF 8,152 296 0.07 Lonza Group AG CHF 1,040 93 0.02 Nestle SA CHF 59,360 3,021 0.76 Novartis AG CHF 40,326 2,419 0.61 Pargesa Holding SA CHF 740 30 0.01 Partners Group Holding AG CHF 370 83 0.02 PSP Swiss Property AG CHF 790 44 0.01 Roche Holding AG CHF 13,340 2,298 0.58 Roche Holding AG (BR) CHF 520 90 0.02 Schindler Holding CHF 420 42 0.01 Schindler Holding AG CHF 880 87 0.02 SGS SA CHF 100 121 0.03 Sika AG CHF 40 84 0.02 Sonova Holding AG CHF 1,040 89 0.02 Sulzer AG CHF 470 32 0.01 Swatch Group AG (The) CHF 960 50 0.01 Swatch Group AG (The) (BR) CHF 595 158 0.04 Swiss Life Holding AG CHF 583 89 0.02 Swiss Prime Site AG CHF 1,275 64 0.02 Swiss Re AG CHF 6,487 374 0.09 Swisscom AG CHF 470 153 0.04 Syngenta AG CHF 1,710 339 0.09 TE Connectivity Ltd. USD 7,753 310 0.08 Transocean Ltd.^ CHF 6,880 71 0.02 UBS Group AG CHF 66,927 852 0.21 Zurich Insurance Group AG CHF 2,787 474 0.12 15,264 3.84 Taiwan 1.39% (1.46%) Acer, Inc., GDR USD 10,685 15 – Advanced Semiconductor Engineering, Inc. TWD 122,323 92 0.02 Advantech Co. Ltd. TWD 6,795 31 0.01 Asia Cement Corp. TWD 36,491 25 0.01 Asustek Co.mputer, Inc., GDR USD 2,906 87 0.02 AU Optronics Corp., ADR USD 16,221 34 0.01 Capital Securities Corp. TWD 46,000 9 – Catcher Technology Co. Ltd. TWD 14,111 97 0.02 Cathay Financial Holding Co. Ltd., GDR USD 15,659 144 0.04 Cathay Real Estate Development Co. Ltd. TWD 24,000 7 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 279 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Taiwan 1.39% (1.46%) (continued) Chang Hwa Commercial Bank Ltd. TWD 59,521 20 0.01 Cheng Shin Rubber Industry Co. Ltd. TWD 27,733 34 0.01 Cheng Uei Precision Industry Co. Ltd. TWD 7,000 7 – Chicony Electronics Co. Ltd. TWD 10,245 17 – China Airlines Ltd. TWD 45,000 10 – China Development Financial Holding Corp. TWD 272,107 49 0.01 China Motor Corp. TWD 14,000 7 – China Steel Corp., GDR USD 11,495 98 0.03 Chunghwa Telecom Co. Ltd., ADR USD 8,324 165 0.04 Compal Electronics, Inc., GDR USD 12,616 26 0.01 CTBC Financial Holding Co. Ltd. TWD 305,043 111 0.03 Delta Electronics, Inc. TWD 40,898 131 0.03 E.Sun Financial Holding Co. Ltd. TWD 144,081 57 0.01 Eclat Textile Co. Ltd. TWD 4,000 36 0.01 Epistar Corp. TWD 17,000 9 – Eternal Materials Co. Ltd. TWD 15,450 9 – Eva Airways Corp. TWD 32,000 12 – Evergreen Marine Corp. Taiwan Ltd. TWD 37,772 11 – Far Eastern New Century Corp. TWD 76,683 47 0.01 Far EasTone Telecommunications Co. Ltd. TWD 31,000 44 0.01 Feng Hsin Iron & Steel Co. TWD 9,000 7 – Feng TAY Enterprise Co. Ltd. TWD 6,000 22 0.01 First Financial Holding Co. Ltd. TWD 142,030 44 0.01 Formosa Chemicals & Fibre Corp. TWD 84,005 125 0.03 Formosa Petrochemical Corp. TWD 37,000 60 0.02 Formosa Plastics Corp. TWD 93,746 143 0.04 Formosa Taffeta Co. Ltd. TWD 25,000 16 – Foxconn Technology Co. Ltd. TWD 21,180 39 0.01 Fubon Financial Holding Co. Ltd., GDR USD 13,674 143 0.04 Giant Manufacturing Co. Ltd. TWD 4,000 19 0.01 Hermes Microvision, Inc. TWD 1,000 23 0.01 Hon Hai Precision Industry Co. Ltd. TWD 5,174 9 – Hon Hai Precision Industry Co. Ltd., GDR USD 131,640 481 0.12 Hotai Motor Co. Ltd. TWD 8,000 62 0.02 HTC Corp. TWD 15,348 22 0.01 Hua Nan Financial Holdings Co. Ltd. TWD 137,087 43 0.01 Innolux Corp. TWD 167,428 38 0.01 Inotera Memories, Inc. TWD 51,000 25 0.01 Inventec Corp. TWD 71,000 26 0.01 Largan Precision Co. Ltd. TWD 2,000 103 0.03 Lite-On Technology Corp. TWD 50,234 33 0.01 Macronix International TWD 67,196 6 – MediaTek, Inc. TWD 25,326 140 0.04 Mega Financial Holding Co. Ltd. TWD 179,251 82 0.02 Nan Ya Plastics Corp. TWD 108,591 142 0.04 Novatek Microelectronics Corp. TWD 9,000 21 0.01 Oriental Union Chemical Corp. TWD 13,000 6 – Pegatron Corp., GDR USD 6,425 54 0.01 Pou Chen Corp. TWD 50,000 48 0.01 President Chain Store Corp. TWD 11,000 48 0.01 President Securities Corp. TWD 19,000 5 – Quanta Computer, Inc. TWD 54,000 63 0.02 Realtek Semiconductor Corp., GDR USD 2,521 14 – Shin Kong Financial Holding Co. Ltd. TWD 139,276 22 0.01 Siliconware Precision Industries Co. Ltd. TWD 19,247 16 – SinoPac Financial Holdings Co. Ltd. TWD 148,129 32 0.01 Synnex Technology International Corp. TWD 33,000 23 0.01 Taishin Financial Holding Co. Ltd. TWD 130,648 33 0.01 Taiwan Business Bank TWD 52,529 9 – Taiwan Cement Corp. TWD 53,901 40 0.01 Taiwan Co.operative Financial Holding Co. Ltd. TWD 96,917 28 0.01

280 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Taiwan 1.39% (1.46%) (continued) Taiwan Fertilizer Co. Ltd. TWD 15,000 12 – Taiwan Glass Industry Corp. TWD 26,665 7 – Taiwan Mobile Co. Ltd. TWD 34,000 69 0.02 Taiwan Secom Co. Ltd. TWD 7,105 13 – Taiwan Semiconductor Manufacturing Co. Ltd., ADR USD 90,643 1,307 0.33 Teco Electric and Machinery Co. Ltd. TWD 36,000 19 0.01 Transcend Information, Inc. TWD 10,000 17 – U-Ming Marine Transport Corp. TWD 10,000 7 – Unimicron Technology Corp. TWD 33,000 10 – Uni-President Enterprises Corp. TWD 91,791 105 0.03 United Microelectronics Corp., ADR USD 50,007 61 0.02 Vanguard International Semiconductor Corp. TWD 15,000 13 – Walsin Lihwa Corp. TWD 72,000 11 – Wan Hai Lines Ltd. TWD 22,000 10 – Wistron Corp. TWD 51,113 18 – Yang Ming Marine Transport Corp. TWD 27,000 5 – YFY, Inc. TWD 32,000 7 – Yuanta Financial Holding Co. Ltd. TWD 204,427 52 0.01 Yulon Motor Co. Ltd. TWD 17,000 11 – 5,510 1.39 Thailand 0.26% (0.30%) Advanced Info Service PCL THB 23,400 100 0.03 Airports of Thailand PCL THB 8,700 48 0.01 Bangkok Bank PCL THB 9,400 29 0.01 Bangkok Dusit Medical Services PCL ‘F’ THB 62,000 22 0.01 Banpu PCL THB 40,000 18 0.01 Big C Supercenter PCL THB 13,000 48 0.01 Charoen Pokphand Foods PCL THB 61,100 24 0.01 CP ALL PCL THB 136,800 124 0.03 Electricity Generating PCL THB 4,700 14 – Finance One Public Co. Ltd. USD 6,000 – – Glow Energy PCL THB 11,600 20 0.01 Indorama Ventures PCL THB 28,700 13 – Intouch Holdings PCL, NVDR THB 29,300 40 0.01 IRPC PCL THB 199,000 15 – Kasikornbank PCL THB 23,000 80 0.02 Krung Thai Bank PCL THB 69,500 23 0.01 Land & Houses PCL THB 60,700 10 – PTT Exploration & Production PCL THB 25,789 35 0.01 PTT Global Chemical PCL THB 32,600 36 0.01 PTT PCL THB 16,400 80 0.02 Siam Cement PCL (The) THB 5,900 52 0.01 Siam Commercial Bank PCL (The) THB 50,000 133 0.03 Thai Oil PCL THB 16,100 16 – TMB Bank PCL THB 439,000 21 0.01 Total Access Co.mmunication PCL, NVDR THB 14,400 15 – 1,016 0.26 Turkey 0.16% (0.18%) Akbank TAS TRY 46,920 80 0.02 Anadolu Efes Biracilik Ve Malt Sanayii AS TRY 2,970 16 0.01 Arcelik AS TRY 4,400 16 – BIM Birlesik Magazalar AS TRY 3,260 42 0.01 Coca-Cola Icecek AS TRY 1,500 13 – Emlak Konut Gayrimenkul Yatirim Ortakligi AS, REIT TRY 16,000 10 – Enka Insaat ve Sanayi AS TRY 10,119 12 – Eregli Demir ve Celik Fabrikalari TAS TRY 38,027 35 0.01 Ford Otomotiv Sanayi AS TRY 1,520 11 – Haci Omer Sabanci Holding AS TRY 16,100 34 0.01 KOC Holding AS TRY 13,927 40 0.01 Koza Altin Isletmeleri AS TRY 580 3 – avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 281 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Turkey 0.16% (0.18%) (continued) Tofas Turk Otomobil Fabrikasi AS TRY 3,260 14 – Tupras Turkiye Petrol Rafinerileri AS TRY 2,180 36 0.01 Turk Hava Yollari AO TRY 14,191 28 0.01 Turk Telekomunikasyon AS TRY 11,410 17 0.01 Turkcell Iletisim Hizmetleri AS TRY 15,970 41 0.01 Turkiye Garanti Bankasi AS TRY 41,420 71 0.02 Turkiye Halk Bankasi AS TRY 12,610 32 0.01 Turkiye Is Bankasi ‘C’ TRY 25,880 29 0.01 Turkiye Sise ve Cam Fabrikalari AS TRY 11,891 8 – Turkiye Vakiflar Bankasi TAO ‘D’ TRY 24,860 24 0.01 Yapi ve Kredi Bankasi AS TRY 16,670 14 – 626 0.16 United Kingdom 0.27% (0.23%) Aon plc USD 5,445 317 0.08 Ensco plc ‘A’ USD 4,700 51 0.01 International Game Technology plc USD 1,045 11 – Liberty Global plc USD 11,715 322 0.08 Liberty Global plc ‘A’ USD 4,922 142 0.04 Liberty Global LiLAC ‘A’ USD 245 6 – Liberty Global LiLAC ‘C’ USD 616 14 – Nielsen Holdings plc USD 6,060 183 0.05 Noble Corp. plc USD 4,840 38 0.01 1,084 0.27 United States of America 54.09% (53.00%) 3M Co. USD 11,700 1,121 0.28 Abbott Laboratories USD 28,240 742 0.19 AbbVie, Inc. USD 32,310 1,125 0.28 Activision Blizzard, Inc. USD 12,520 267 0.07 Adobe Systems, Inc. USD 9,580 518 0.13 ADT Corp. (The) USD 3,521 76 0.02 Advance Auto Parts, Inc. USD 1,390 168 0.04 AES Corp. USD 12,425 85 0.02 Aetna, Inc. USD 6,689 480 0.12 Affiliated Managers Group, Inc. USD 1,000 110 0.03 Aflac, Inc. USD 7,920 306 0.08 Agilent Technologies, Inc. USD 6,619 150 0.04 Air Products & Chemicals, Inc. USD 4,040 361 0.09 Airgas, Inc. USD 1,100 66 0.02 Akamai Technologies, Inc. USD 3,400 154 0.04 Alcoa, Inc. USD 23,592 151 0.04 Alexion Pharmaceuticals, Inc. USD 4,280 422 0.11 Alleghany Corp. USD 330 103 0.03 Allegheny Technologies, Inc. USD 1,990 23 0.01 Alliance Data Systems Corp. USD 1,160 207 0.05 Alliant Energy Corp. USD 2,225 86 0.02 Allstate Corp. (The) USD 7,490 289 0.07 Ally Financial, Inc. USD 7,940 105 0.03 Alnylam Pharmaceuticals, Inc. USD 1,400 72 0.02 Alphabet, Inc. ‘A’ USD 5,420 2,381 0.60 Alphabet, Inc. ‘C’ USD 5,435 2,284 0.57 Altera Corp. USD 5,700 194 0.05 Altria Group, Inc. USD 36,880 1,370 0.34 Amazon.com, Inc. USD 7,150 2,515 0.63 Ameren Corp. USD 4,630 130 0.03 American Airlines Group, Inc. USD 3,200 90 0.02 American Capital Agency Corp., REIT USD 6,610 82 0.02 American Electric Power Co., Inc. USD 8,870 333 0.08 American Express Co. USD 16,380 806 0.20 American International Group, Inc. USD 24,358 913 0.23 American Tower Corp., REIT USD 8,040 483 0.12

282 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) American Water Works Co., Inc. USD 3,400 125 0.03 Ameriprise Financial, Inc. USD 3,262 227 0.06 AmerisourceBergen Corp. USD 4,110 247 0.06 AMETEK, Inc. USD 4,770 167 0.04 Amgen, Inc. USD 14,234 1,358 0.34 Amphenol Corp. ‘A’ USD 5,850 196 0.05 Anadarko Petroleum Corp. USD 9,802 453 0.11 Analog Devices, Inc. USD 5,940 234 0.06 Annaly Capital Management, Inc., REIT USD 19,110 126 0.03 ANSYS, Inc. USD 1,600 93 0.02 Antero Resources Corp. USD 1,100 17 – Anthem, Inc. USD 4,979 461 0.12 Apache Corp. USD 7,145 211 0.05 Apple, Inc. USD 108,080 7,691 1.94 Applied Materials, Inc. USD 22,750 227 0.06 Archer-Daniels-Midland Co. USD 11,858 344 0.09 Arrow Electronics, Inc. USD 1,790 68 0.02 Arthur J Gallagher & Co. USD 3,320 91 0.02 Ashland, Inc. USD 1,240 84 0.02 Assurant, Inc. USD 1,440 74 0.02 AT&T, Inc. USD 116,847 2,509 0.63 Autodesk, Inc. USD 4,340 144 0.04 Autoliv, Inc. USD 1,490 108 0.03 Automatic Data Processing, Inc. USD 8,900 489 0.12 AutoNation, Inc. USD 1,380 53 0.01 AutoZone, Inc. USD 530 250 0.06 AvalonBay Communities, Inc., REIT USD 2,323 267 0.07 Avery Dennison Corp. USD 1,750 66 0.02 Avnet, Inc. USD 2,780 82 0.02 Baker Hughes, Inc. USD 8,264 294 0.07 Ball Corp. USD 2,490 107 0.03 Bank of America Corp. USD 197,829 1,998 0.50 Bank of New York Mellon Corp. (The) USD 21,093 535 0.13 Baxalta, Inc. USD 10,210 204 0.05 Baxter International, Inc. USD 10,210 218 0.05 BB&T Corp. USD 14,822 342 0.09 B/E Aerospace, Inc. USD 2,100 61 0.02 Becton Dickinson and Co. USD 4,035 354 0.09 Bed Bath & Beyond, Inc. USD 3,300 122 0.03 Bemis Co., Inc. USD 1,980 53 0.01 Ben Franklin Retail Stores, Inc.^ USD 50 – – Berkshire Hathaway, Inc. ‘A’ USD 9 1,143 0.29 Berkshire Hathaway, Inc. ‘B’ USD 21,850 1,851 0.47 Best Buy Co., Inc. USD 5,530 124 0.03 Biogen, Inc. USD 4,400 729 0.18 BioMarin Pharmaceutical, Inc. USD 2,900 194 0.05 BlackRock, Inc. USD 2,380 496 0.12 Boeing Co. (The) USD 11,670 1,011 0.25 BorgWarner, Inc. USD 4,280 120 0.03 Boston Properties, Inc., REIT USD 2,910 225 0.06 Boston Scientific Corp. USD 25,781 277 0.07 Bristol-Myers Squibb Co. USD 31,370 1,257 0.32 Broadcom Corp. ‘A’ USD 10,085 332 0.08 Broadridge Financial Solutions, Inc. USD 2,370 86 0.02 Brown & Brown, Inc. USD 2,390 48 0.01 Brown-Forman Corp. ‘B’ USD 2,342 160 0.04 CA, Inc. USD 6,817 126 0.03 Cablevision Systems Corp. ‘A’ USD 3,720 79 0.02 Cabot Oil & Gas Corp. USD 8,080 120 0.03 Calpine Corp. USD 5,980 63 0.02 Cameron International Corp. USD 3,610 154 0.04 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 283 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Campbell Soup Co. USD 3,430 110 0.03 Capital One Financial Corp. USD 9,295 435 0.11 Cardinal Health, Inc. USD 6,255 317 0.08 Care Capital Properties, Inc., REIT USD 1,462 32 0.01 CarMax, Inc. USD 4,040 148 0.04 Caterpillar, Inc. USD 11,470 524 0.13 CBRE Group, Inc. ‘A’ USD 5,550 120 0.03 CBS Corp., (Non-Voting) ‘B’ USD 8,366 229 0.06 CDK Global, Inc. USD 3,203 101 0.03 Celanese Corp. USD 3,000 123 0.03 Celgene Corp. USD 14,860 1,091 0.27 Centene Corp. USD 2,100 77 0.02 CenterPoint Energy, Inc. USD 8,089 95 0.02 CenturyLink, Inc. USD 11,101 188 0.05 Cerner Corp. USD 5,500 229 0.06 CF Industries Holdings, Inc. USD 4,400 149 0.04 CH Robinson Worldwide, Inc. USD 2,690 123 0.03 Charles Schwab Corp. (The) USD 21,575 387 0.10 Charter Communications, Inc. ‘A’ USD 1,270 150 0.04 Chemours Co. (The) USD 3,459 16 – Cheniere Energy, Inc. USD 4,480 142 0.04 Chesapeake Energy Corp. USD 13,410 71 0.02 Chevron Corp. USD 35,750 2,071 0.52 Chipotle Mexican Grill, Inc. USD 600 279 0.07 Chubb Corp. (The) USD 4,340 350 0.09 Church & Dwight Co., Inc. USD 2,470 139 0.03 Cigna Corp. USD 4,870 432 0.11 Cimarex Energy Co. USD 1,650 128 0.03 Cincinnati Financial Corp. USD 2,779 100 0.03 Cintas Corp. USD 1,780 104 0.03 Cisco Systems, Inc. USD 96,385 1,731 0.44 CIT Group, Inc. USD 3,290 87 0.02 Citigroup, Inc. USD 57,045 1,868 0.47 Citizens Financial Group, Inc. USD 7,690 114 0.03 Citrix Systems, Inc. USD 3,050 145 0.04 City National Corp. USD 800 46 0.01 Clorox Co. (The) USD 2,560 199 0.05 CME Group, Inc. USD 6,150 347 0.09 CMS Energy Corp. USD 5,300 122 0.03 CNA Financial Corp. USD 500 11 – Coach, Inc. USD 5,540 110 0.03 Cobalt International Energy, Inc. USD 6,700 34 0.01 Coca-Cola Co. (The) USD 78,320 2,108 0.53 Coca-Cola Enterprises, Inc. USD 4,300 139 0.03 Cognizant Technology Solutions Corp. ‘A’ USD 11,660 487 0.12 Colfax Corp. USD 2,100 36 0.01 Colgate-Palmolive Co. USD 16,870 716 0.18 Columbia Pipeline Group, Inc. USD 6,072 83 0.02 Comcast Corp. ‘A’ USD 40,463 1,566 0.39 Comcast Corp. ‘A’ Spl USD 7,264 284 0.07 Comerica, Inc. USD 3,400 91 0.02 Commerce Bancshares, Inc. USD 1,907 54 0.01 Communications Sales & Leasing, Inc., REIT USD 2,184 27 0.01 Computer Sciences Corp. USD 2,540 105 0.03 ConAgra Foods, Inc. USD 7,950 209 0.05 Concho Resources, Inc. USD 1,980 148 0.04 ConocoPhillips USD 23,303 835 0.21 CONSOL Energy, Inc. USD 4,410 32 0.01 Consolidated Edison, Inc. USD 5,480 232 0.06 Constellation Brands, Inc. ‘A’ USD 3,060 264 0.07 Continental Resources, Inc. USD 1,790 40 0.01

284 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Corning, Inc. USD 23,990 263 0.07 Costco Wholesale Corp. USD 8,402 813 0.20 CR Bard, Inc. USD 1,450 175 0.04 Crown Castle International Corp., REIT USD 6,340 329 0.08 CSX Corp. USD 18,920 332 0.08 Cummins, Inc. USD 3,390 239 0.06 CVS Health Corp. USD 21,190 1,374 0.35 Danaher Corp. USD 10,880 620 0.16 Darden Restaurants, Inc. USD 2,580 106 0.03 DaVita HealthCare Partners, Inc. USD 4,160 197 0.05 Deere & Co. USD 5,710 281 0.07 Delta Air Lines, Inc. USD 4,070 128 0.03 DENTSPLY International, Inc. USD 2,700 98 0.02 Devon Energy Corp. USD 7,930 229 0.06 Diamond Offshore Drilling, Inc. USD 1,400 18 – Digital Realty Trust, Inc., REIT USD 2,420 110 0.03 Discover Financial Services USD 8,250 291 0.07 Discovery Communications, Inc. ‘A’ USD 2,603 48 0.01 Discovery Communications, Inc. ‘C’ USD 4,979 85 0.02 DISH Network Corp. ‘A’ USD 4,100 161 0.04 Dollar General Corp. USD 5,330 224 0.06 Dollar Tree, Inc. USD 4,204 167 0.04 Dominion Resources, Inc. USD 11,296 526 0.13 Dover Corp. USD 2,970 114 0.03 Dow Chemical Co. (The) USD 21,939 667 0.17 DR Horton, Inc. USD 5,680 107 0.03 Dr Pepper Snapple Group, Inc. USD 3,730 199 0.05 DST Systems, Inc. USD 620 45 0.01 DTE Energy Co. USD 3,385 179 0.05 Duke Energy Corp. USD 13,077 611 0.15 Duke Realty Corp., REIT USD 6,150 81 0.02 Dun & Bradstreet Corp. (The) USD 780 55 0.01 Eastman Chemical Co. USD 2,840 129 0.03 eBay, Inc. USD 20,800 322 0.08 Ecolab, Inc. USD 4,980 390 0.10 Edgewell Personal Care Co. USD 1,220 66 0.02 Edison International USD 6,180 255 0.06 Edwards Lifesciences Corp. USD 2,090 195 0.05 EI du Pont de Nemours & Co. USD 17,099 623 0.16 Electronic Arts, Inc. USD 5,580 254 0.06 Eli Lilly & Co. USD 18,650 954 0.24 EMC Corp. USD 37,010 648 0.16 Emerson Electric Co. USD 12,640 378 0.10 Energizer Holdings, Inc. USD 1,220 33 0.01 Entergy Corp. USD 3,410 149 0.04 EOG Resources, Inc. USD 10,330 572 0.14 EQT Corp. USD 2,855 138 0.03 Equifax, Inc. USD 2,370 159 0.04 Equinix, Inc., REIT USD 1,023 181 0.05 Equity Residential, REIT USD 6,430 317 0.08 Essex Property Trust, Inc., REIT USD 1,300 190 0.05 Estee Lauder Cos., Inc. (The) ‘A’ USD 4,200 225 0.06 Eversource Energy USD 6,217 206 0.05 Exelon Corp. USD 16,311 320 0.08 Expedia, Inc. USD 2,080 164 0.04 Expeditors International of Washington, Inc. USD 3,590 116 0.03 Express Scripts Holding Co. USD 12,777 687 0.17 Exxon Mobil Corp. USD 79,497 4,115 1.04 F5 Networks, Inc. USD 1,350 102 0.03 Facebook, Inc. ‘A’ USD 40,490 2,459 0.62 Fastenal Co. USD 5,060 124 0.03 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 285 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Federal Realty Investment Trust, REIT USD 1,320 119 0.03 FedEx Corp. USD 5,070 493 0.12 Fidelity National Information Services, Inc. USD 5,364 240 0.06 Fifth Third Bancorp USD 15,319 183 0.05 First Horizon National Corp. USD 91,087 – – First Republic Bank USD 2,700 109 0.03 First Solar, Inc. USD 1,350 45 0.01 FirstEnergy Corp. USD 8,315 174 0.04 Fiserv, Inc. USD 4,520 265 0.07 FleetCor Technologies, Inc. USD 1,400 131 0.03 Flowserve Corp. USD 2,780 79 0.02 Fluor Corp. USD 2,785 84 0.02 FMC Corp. USD 2,630 65 0.02 FMC Technologies, Inc. USD 4,600 101 0.03 FNF Group USD 5,500 127 0.03 Foot Locker, Inc. USD 2,910 129 0.03 Ford Motor Co. USD 73,464 712 0.18 Fortune Brands Home & Security, Inc. USD 3,035 93 0.02 Fossil Group, Inc. USD 910 33 0.01 Franklin Resources, Inc. USD 7,710 187 0.05 Freeport-McMoRan, Inc. ‘B’ USD 20,297 171 0.04 Frontier Communications Corp. USD 17,330 57 0.01 GameStop Corp. ‘A’ USD 2,390 66 0.02 Gannett Co., Inc. USD 2,295 22 0.01 Gap, Inc. (The) USD 4,490 77 0.02 General Dynamics Corp. USD 5,710 514 0.13 General Electric Co. USD 190,150 3,386 0.85 General Growth Properties, Inc., REIT USD 9,560 165 0.04 General Mills, Inc. USD 11,270 408 0.10 General Motors Co. USD 28,090 605 0.15 Gentex Corp. USD 5,520 56 0.01 Genuine Parts Co. USD 3,020 163 0.04 Genworth Financial, Inc. ‘A’ USD 9,780 33 0.01 Gilead Sciences, Inc. USD 27,930 1,773 0.45 Goldman Sachs Group, Inc. (The) USD 7,820 905 0.23 H&R Block, Inc. USD 5,230 117 0.03 Halliburton Co. USD 16,460 411 0.10 Hanesbrands, Inc. USD 7,700 143 0.04 Harley-Davidson, Inc. USD 3,940 138 0.03 Harman International Industries, Inc. USD 1,100 73 0.02 Harris Corp. USD 2,180 107 0.03 Hartford Financial Services Group, Inc. (The) USD 7,780 230 0.06 Hasbro, Inc. USD 1,980 94 0.02 HCA Holdings, Inc. USD 6,060 297 0.07 HCP, Inc., REIT USD 9,170 227 0.06 Helmerich & Payne, Inc. USD 1,500 56 0.01 Henry Schein, Inc. USD 1,670 152 0.04 Hershey Co. (The) USD 3,000 183 0.05 Hertz Global Holdings, Inc. USD 9,190 116 0.03 Hess Corp. USD 4,850 189 0.05 Hewlett-Packard Co. USD 33,973 645 0.16 Hilton Worldwide Holdings, Inc. USD 10,000 158 0.04 HollyFrontier Corp. USD 3,550 112 0.03 Hologic, Inc. USD 5,300 126 0.03 Home Depot, Inc. (The) USD 24,700 1,918 0.48 Honeywell International, Inc. USD 14,595 926 0.23 Hormel Foods Corp. USD 2,740 114 0.03 Hospitality Properties Trust, REIT USD 3,370 61 0.02 Host Hotels & Resorts, Inc., REIT USD 15,122 169 0.04 Hudson City Bancorp, Inc. USD 9,225 58 0.01 Humana, Inc. USD 2,810 331 0.08

286 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Huntington Bancshares, Inc. USD 15,087 103 0.03 IAC USD 1,460 66 0.02 IHS, Inc. ‘A’ USD 1,200 91 0.02 Illinois Tool Works, Inc. USD 6,186 339 0.09 Illumina, Inc. USD 2,780 259 0.07 IMS Health Holdings, Inc. USD 3,000 56 0.01 Incyte Corp. USD 2,700 185 0.05 Intel Corp. USD 89,760 1,901 0.48 Intercontinental Exchange, Inc. USD 2,154 319 0.08 International Business Machines Corp. USD 18,655 1,806 0.45 International Flavors & Fragrances, Inc. USD 1,540 109 0.03 International Paper Co. USD 7,955 216 0.05 Interpublic Group of Cos., Inc. (The) USD 8,460 114 0.03 Intuit, Inc. USD 4,935 288 0.07 Intuitive Surgical, Inc. USD 710 208 0.05 Iron Mountain, Inc., REIT USD 4,149 84 0.02 Jabil Circuit, Inc. USD 3,980 59 0.01 Jacobs Engineering Group, Inc. USD 2,440 64 0.02 Jarden Corp. USD 3,800 125 0.03 JB Hunt Transport Services, Inc. USD 1,680 81 0.02 JM Smucker Co. (The) USD 2,210 170 0.04 Johnson & Johnson USD 52,052 3,178 0.80 Johnson Controls, Inc. USD 12,380 349 0.09 Joy Global, Inc. USD 2,010 22 0.01 JPMorgan Chase & Co. USD 70,244 2,721 0.68 Juniper Networks, Inc. USD 7,505 143 0.04 Kansas City Southern USD 2,130 133 0.03 Kellogg Co. USD 4,720 209 0.05 Keurig Green Mountain, Inc. USD 2,270 79 0.02 KeyCorp USD 16,040 132 0.03 Keysight Technologies, Inc. USD 3,309 69 0.02 Kimberly-Clark Corp. USD 6,882 510 0.13 Kimco Realty Corp., REIT USD 7,820 128 0.03 Kinder Morgan, Inc. USD 35,147 720 0.18 KLA-Tencor Corp. USD 3,220 109 0.03 Kohl’s Corp. USD 3,920 114 0.03 Kraft Heinz Co. (The) USD 11,208 534 0.13 Kroger Co. (The) USD 17,740 416 0.10 L Brands, Inc. USD 4,108 253 0.06 L-3 Communications Holdings, Inc. USD 1,520 107 0.03 Laboratory Corp. of America Holdings USD 1,710 123 0.03 Lam Research Corp. USD 3,015 131 0.03 Las Vegas Sands Corp. USD 7,580 235 0.06 Lear Corp. USD 1,400 104 0.03 Legg Mason, Inc. USD 2,120 59 0.01 Leggett & Platt, Inc. USD 2,660 74 0.02 Lennar Corp. ‘A’ USD 3,100 98 0.02 Leucadia National Corp. USD 6,380 83 0.02 Level 3 Communications, Inc. USD 5,450 160 0.04 Liberty Broadband Corp. ‘A’ USD 471 17 – Liberty Broadband Corp. ‘C’ USD 1,226 43 0.01 Liberty Interactive Corp. QVC Group ‘A’ USD 8,816 155 0.04 Liberty Media Corp. ‘A’ USD 1,885 46 0.01 Liberty Media Corp. ‘C’ USD 3,770 91 0.02 Liberty Property Trust, REIT USD 3,430 74 0.02 Liberty Ventures USD 2,557 68 0.02 Lincoln National Corp. USD 4,792 150 0.04 Linear Technology Corp. USD 4,300 121 0.03 LinkedIn Corp. ‘A’ USD 2,210 278 0.07 LKQ Corp. USD 5,400 97 0.02 Lockheed Martin Corp. USD 5,881 790 0.20 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 287 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Loews Corp. USD 5,708 131 0.03 Lowe’s Cos., Inc. USD 17,780 827 0.21 lululemon athletica, Inc. USD 2,120 71 0.02 M&T Bank Corp. USD 2,310 173 0.04 Macerich Co. (The), REIT USD 2,834 147 0.04 Macy’s, Inc. USD 6,596 212 0.05 ManpowerGroup, Inc. USD 1,570 87 0.02 Marathon Oil Corp. USD 12,809 156 0.04 Marathon Petroleum Corp. USD 10,094 317 0.08 Markel Corp. USD 260 136 0.03 Marriott International, Inc. ‘A’ USD 3,926 188 0.05 Marriott International, Inc. ‘A’^ USD 92,449 – – Marsh & McLennan Cos., Inc. USD 10,400 354 0.09 Martin Marietta Materials, Inc. USD 1,300 127 0.03 Masco Corp. USD 6,390 108 0.03 MasterCard, Inc. ‘A’ USD 18,850 1,156 0.29 Mattel, Inc. USD 6,572 96 0.02 Maxim Integrated Products, Inc. USD 5,650 140 0.04 McCormick & Co., Inc., (Non-Voting) ‘G’ USD 2,300 121 0.03 McDonald’s Corp. USD 17,750 1,179 0.30 McGraw Hill Financial, Inc. USD 5,190 305 0.08 McKesson Corp. USD 4,356 534 0.13 MDU Resources Group, Inc. USD 3,590 44 0.01 Mead Johnson Nutrition Co. USD 3,920 181 0.05 Medivation, Inc. USD 2,800 76 0.02 Merck & Co., Inc. USD 53,643 1,716 0.43 MetLife, Inc. USD 17,150 523 0.13 Mettler-Toledo International, Inc. USD 500 91 0.02 MGM Resorts International USD 7,070 97 0.02 Microchip Technology, Inc. USD 3,650 111 0.03 Micron Technology, Inc. USD 21,140 257 0.06 Microsoft Corp. USD 136,420 4,111 1.03 Mohawk Industries, Inc. USD 1,210 149 0.04 Molson Coors Brewing Co. ‘B’ USD 2,704 150 0.04 Mondelez International, Inc. ‘A’ USD 30,756 888 0.22 Monsanto Co. USD 8,960 522 0.13 Monster Beverage Corp. USD 2,840 236 0.06 Moody’s Corp. USD 3,820 241 0.06 Morgan Stanley USD 26,650 560 0.14 Mosaic Co. (The) USD 6,620 151 0.04 Motorola Solutions, Inc. USD 3,275 145 0.04 Murphy Oil Corp. USD 3,390 63 0.02 National Oilwell Varco, Inc. USD 7,350 187 0.05 Navient Corp. USD 7,360 56 0.01 NCR Corp. USD 3,036 48 0.01 NetApp, Inc. USD 5,685 124 0.03 Netflix, Inc. USD 7,610 541 0.14 New York Community Bancorp, Inc. USD 7,563 89 0.02 Newell Rubbermaid, Inc. USD 5,071 139 0.03 Newfield Exploration Co. USD 2,425 60 0.02 Newmont Mining Corp. USD 9,449 119 0.03 News Corp. ‘B’ USD 2,158 20 0.01 NextEra Energy, Inc. USD 8,315 542 0.14 NIKE, Inc. ‘B’ USD 10,630 864 0.22 NiSource, Inc. USD 6,072 75 0.02 Noble Energy, Inc. USD 7,160 161 0.04 Nordstrom, Inc. USD 2,740 118 0.03 Norfolk Southern Corp. USD 5,640 285 0.07 Northern Trust Corp. USD 4,620 202 0.05 Northrop Grumman Corp. USD 3,562 400 0.10 NRG Energy, Inc. USD 6,300 62 0.02

288 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Nuance Communications, Inc. USD 4,370 48 0.01 Nucor Corp. USD 6,210 166 0.04 NVIDIA Corp. USD 9,860 174 0.04 NVR, Inc. USD 80 80 0.02 Occidental Petroleum Corp. USD 14,405 687 0.17 Oceaneering International, Inc. USD 1,500 45 0.01 Old Republic International Corp. USD 5,077 54 0.01 Omnicom Group, Inc. USD 4,610 211 0.05 ONEOK, Inc. USD 4,000 98 0.02 Oracle Corp. USD 62,299 1,499 0.38 O’Reilly Automotive, Inc. USD 1,960 313 0.08 Owens-Illinois, Inc. USD 2,500 38 0.01 PACCAR, Inc. USD 6,855 236 0.06 Palo Alto Networks, Inc. USD 800 85 0.02 Parker-Hannifin Corp. USD 2,592 171 0.04 Patterson Cos., Inc. USD 1,690 49 0.01 Paychex, Inc. USD 6,275 201 0.05 PayPal Holdings, Inc. USD 20,800 457 0.12 People’s United Financial, Inc. USD 6,565 65 0.02 Pepco Holdings, Inc. USD 4,360 74 0.02 PepsiCo, Inc. USD 28,029 1,764 0.44 Pfizer, Inc. USD 116,156 2,477 0.62 PG&E Corp. USD 9,030 308 0.08 Philip Morris International, Inc. USD 29,740 1,622 0.41 Phillips 66 USD 10,331 550 0.14 Pinnacle West Capital Corp. USD 2,070 87 0.02 Pioneer Natural Resources Co. USD 2,815 242 0.06 Plum Creek Timber Co., Inc., REIT USD 3,540 94 0.02 PNC Financial Services Group, Inc. (The) USD 9,759 543 0.14 Polaris Industries, Inc. USD 1,000 77 0.02 PPG Industries, Inc. USD 5,100 321 0.08 PPL Corp. USD 12,815 279 0.07 Praxair, Inc. USD 5,380 379 0.10 Precision Castparts Corp. USD 2,610 389 0.10 Priceline Group, Inc. (The) USD 960 812 0.20 Principal Financial Group, Inc. USD 5,830 180 0.05 Procter & Gamble Co. (The) USD 51,402 2,463 0.62 Progressive Corp. (The) USD 10,960 223 0.06 Prologis, Inc., REIT USD 10,107 267 0.07 Prudential Financial, Inc. USD 8,600 425 0.11 Public Service Enterprise Group, Inc. USD 9,610 265 0.07 Public Storage, REIT USD 2,750 385 0.10 PulteGroup, Inc. USD 5,480 67 0.02 PVH Corp. USD 1,500 97 0.02 QEP Resources, Inc. USD 3,240 33 0.01 Qorvo, Inc. USD 2,700 81 0.02 QUALCOMM, Inc. USD 29,960 1,134 0.29 Quest Diagnostics, Inc. USD 2,920 117 0.03 Questar Corp. USD 3,810 50 0.01 Quintiles Transnational Holdings, Inc. USD 1,700 76 0.02 Rackspace Hosting, Inc. USD 2,200 37 0.01 Ralph Lauren Corp. USD 1,180 90 0.02 Range Resources Corp. USD 3,090 68 0.02 Rayonier, Inc., REIT USD 2,500 37 0.01 Raytheon Co. USD 5,867 416 0.10 Realty, Inc.ome Corp., REIT USD 3,980 123 0.03 Red Hat, Inc. USD 3,470 168 0.04 Regency Centers Corp., REIT USD 1,700 71 0.02 Regeneron Pharmaceuticals, Inc. USD 1,540 506 0.13 Regions Financial Corp. USD 25,344 144 0.04 Republic Services, Inc. USD 5,460 151 0.04 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 289 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Reynolds American, Inc. USD 15,782 469 0.12 Robert Half International, Inc. USD 2,430 82 0.02 Rockwell Automation, Inc. USD 2,370 159 0.04 Rockwell Collins, Inc. USD 2,510 134 0.03 Roper Technologies, Inc. USD 1,940 217 0.05 Ross Stores, Inc. USD 8,000 251 0.06 Ryder System, Inc. USD 980 45 0.01 Safeway, Inc.^ USD 4,630 – – Safeway, Inc. Casa Ley^ USD 4,630 3 – salesforce.com, Inc. USD 11,380 555 0.14 SanDisk Corp. USD 3,960 176 0.04 Santander Consumer USA Holdings, Inc. USD 2,100 28 0.01 SBA Co.mmunications Corp. ‘A’ USD 2,300 162 0.04 SCANA Corp. USD 2,560 93 0.02 Scripps Networks Interactive, Inc. ‘A’ USD 1,570 56 0.01 Sealed Air Corp. USD 3,992 125 0.03 SEI Investments Co. USD 2,510 79 0.02 Sempra Energy USD 4,774 306 0.08 ServiceNow, Inc. USD 900 43 0.01 Sherwin-Williams Co. (The) USD 1,440 225 0.06 Sigma-Aldrich Corp. USD 2,040 184 0.05 Simon Property Group, Inc., REIT USD 5,747 720 0.18 Sirius XM Holdings, Inc. USD 50,440 128 0.03 Skyworks Solutions, Inc. USD 3,550 178 0.04 SL Green Realty Corp., REIT USD 1,930 142 0.04 SLM Corp. USD 8,910 39 0.01 Snap-on, Inc. USD 1,100 113 0.03 Southern Co. (The) USD 17,505 515 0.13 Southern Copper Corp. USD 3,351 64 0.02 Southwest Airlines Co. USD 3,122 82 0.02 Southwestern Energy Co. USD 6,840 55 0.01 Spectra Energy Corp. USD 12,629 236 0.06 Splunk, Inc. USD 1,400 50 0.01 Sprint Corp. USD 15,006 41 0.01 St Jude Medical, Inc. USD 5,530 235 0.06 Stanley Black & Decker, Inc. USD 2,907 185 0.05 Staples, Inc. USD 12,160 98 0.02 Starbucks Corp. USD 26,780 1,017 0.26 Starwood Hotels & Resorts Worldwide, Inc. USD 3,242 141 0.04 State Street Corp. USD 7,859 338 0.09 Stericycle, Inc. USD 1,640 156 0.04 Stryker Corp. USD 5,510 345 0.09 SunTrust Banks, Inc. USD 9,761 243 0.06 Symantec Corp. USD 13,695 182 0.05 Synchrony Financial USD 2,500 51 0.01 Synopsys, Inc. USD 2,840 87 0.02 Sysco Corp. USD 11,170 292 0.07 T Rowe Price Group, Inc. USD 4,660 208 0.05 Talen Energy Corp. USD 1,600 10 – Target Corp. USD 12,180 599 0.15 TD Ameritrade Holding Corp. USD 4,350 87 0.02 TECO Energy, Inc. USD 4,300 74 0.02 TEGNA, Inc. USD 4,590 74 0.02 Teradata Corp. USD 3,226 59 0.01 Tesla Motors, Inc. USD 1,720 241 0.06 Tesoro Corp. USD 2,200 141 0.04 Texas Instruments, Inc. USD 19,450 661 0.17 Textron, Inc. USD 5,270 136 0.03 Thermo Fisher Scientific, Inc. USD 7,580 606 0.15 Tiffany & Co. USD 2,440 124 0.03 Time Warner Cable, Inc. USD 5,315 638 0.16

290 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Time Warner, Inc. USD 15,283 701 0.18 TJX Cos., Inc. (The) USD 12,900 598 0.15 T-Mobile US, Inc. USD 5,060 129 0.03 Toll Brothers, Inc. USD 3,120 72 0.02 TopBuild Corp. USD 710 14 – Torchmark Corp. USD 2,427 89 0.02 Total System Services, Inc. USD 2,992 93 0.02 Towers Watson & Co. ‘A’ USD 1,400 110 0.03 Tractor Supply Co. USD 1,960 107 0.03 TransDigm Group, Inc. USD 920 125 0.03 Travelers Cos., Inc. (The) USD 5,802 385 0.10 Trimble Navigation Ltd. USD 4,800 55 0.01 TripAdvisor, Inc. USD 1,980 107 0.03 Twenty-First Century Fox, Inc. ‘A’ USD 31,720 512 0.13 Twenty-First Century Fox, Inc. ‘B’ USD 8,632 160 0.04 Twitter, Inc. USD 8,000 152 0.04 Tyson Foods, Inc. ‘A’ USD 5,570 159 0.04 Ulta Salon Cosmetics & Fragrance, Inc. USD 1,200 123 0.03 Under Armour, Inc. A ‘A’ USD 3,400 214 0.05 Union Pacific Corp. USD 16,264 975 0.25 United Continental Holdings, Inc. USD 1,600 59 0.01 United Parcel Service, Inc. ‘B’ USD 13,090 869 0.22 United Rentals, Inc. USD 1,600 73 0.02 United Technologies Corp. USD 15,706 934 0.24 UnitedHealth Group, Inc. USD 18,114 1,427 0.36 Universal Health Services, Inc. ‘B’ USD 1,720 140 0.04 Unum Group USD 4,916 103 0.03 Urban Outfitters, Inc. USD 1,750 34 0.01 US Bancorp USD 33,781 883 0.22 Valero Energy Corp. USD 9,618 381 0.10 Varian Medical Systems, Inc. USD 2,050 100 0.03 Ventas, Inc., REIT USD 5,850 211 0.05 VEREIT, Inc. USD 17,400 92 0.02 VeriSign, Inc. USD 2,265 109 0.03 Verisk Analytics, Inc. USD 2,770 141 0.04 Verizon Communications, Inc. USD 77,154 2,192 0.55 Vertex Pharmaceuticals, Inc. USD 4,720 345 0.09 VF Corp. USD 6,420 291 0.07 Viacom, Inc. ‘B’ USD 6,786 206 0.05 Visa, Inc. ‘A’ USD 37,170 1,779 0.45 VMware, Inc. ‘A’ USD 1,460 64 0.02 Vornado Realty Trust, REIT USD 3,331 205 0.05 Voya Financial, Inc. USD 4,350 109 0.03 Vulcan Materials Co. USD 2,470 143 0.04 Wabtec Corp. USD 1,500 89 0.02 Walgreens Boots Alliance, Inc. USD 16,700 906 0.23 Wal-Mart Stores, Inc. USD 30,380 1,177 0.30 Walt Disney Co. (The) USD 32,140 2,194 0.55 Waste Management, Inc. USD 8,675 294 0.07 Waters Corp. USD 1,540 117 0.03 WEC Energy Group, Inc. USD 6,090 205 0.05 Weingarten Realty Investors, REIT USD 2,610 58 0.01 Wells Fargo & Co. USD 97,988 3,258 0.82 Welltower, Inc., REIT USD 6,670 292 0.07 Western Digital Corp. USD 4,200 226 0.06 Western Union Co. (The) USD 10,360 125 0.03 Westlake Chemical Corp. USD 800 31 0.01 WestRock Co. USD 4,934 178 0.04 Weyerhaeuser Co., REIT USD 10,514 195 0.05 Whirlpool Corp. USD 1,510 148 0.04 Whiting Petroleum Corp. USD 3,900 50 0.01 avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 291 Aviva Investors International Index Tracking Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 54.09% (53.00%) (continued) Whole Foods Market, Inc. USD 6,280 133 0.03 Williams Cos., Inc. (The) USD 13,740 363 0.09 Workday, Inc. ‘A’ USD 2,100 102 0.03 WR Berkley Corp. USD 2,090 74 0.02 WW Grainger, Inc. USD 1,080 154 0.04 Wyndham Worldwide Corp. USD 2,307 115 0.03 Wynn Resorts Ltd. USD 1,630 76 0.02 Xcel Energy, Inc. USD 9,680 225 0.06 Xerox Corp. USD 20,090 131 0.03 Xilinx, Inc. USD 5,080 149 0.04 Xylem, Inc. USD 3,655 80 0.02 Yahoo!, Inc. USD 16,830 349 0.09 Yum! Brands, Inc. USD 8,360 370 0.09 Zimmer Biomet Holdings, Inc. USD 3,348 206 0.05 Zions Bancorporation USD 3,420 61 0.02 Zoetis, Inc. USD 9,480 259 0.07 214,954 54.09 Virgin Islands, British 0.03% (0.04%) Michael Kors Holdings Ltd. USD 3,700 100 0.03 100 0.03 Equities total 392,817 98.85 Supranational 0.01% (0.01%) BTG Pactual Group BRL 5,130 25 0.01 25 0.01 Supranationals total 25 0.01

Investment assets 392,842 98.86 Net other assets 4,543 1.14 Net assets 397,385 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. ^ Unlisted, suspended or delisted security.

292 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains 2 21,995 11,142

Revenue 3 9,900 9,355

Expenses 4 (1,686) (1,721)

Finance costs: Interest 6 – (4)

Net revenue before taxation 8,214 7,630

Taxation 5 (1,403) (1,088)

Net revenue after taxation 6,811 6,542

Total return before distributions 28,806 17,684

Finance costs: Distributions 6 (6,827) (6,552)

Change in net assets attributable to shareholders from investment activities 21,979 11,132

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 393,099 388,095

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 27,488 23,339

Amounts payable on cancellation of shares (51,939) (35,964)

(24,451) (12,625)

Change in net assets attributable to shareholders from investment activities (see above) 21,979 11,132

Retained distribution on accumulation shares 6,758 6,497

Closing net assets attributable to shareholders 397,385 393,099

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 293 Aviva Investors International Index Tracking Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 392,842 388,462

Debtors 7 1,094 992

Cash and bank balances 8 3,980 4180

Total other assets 5,074 5,172

Total assets 397,916 393,634

LIABILITIES

Creditors 9 (531) (535)

Total liabilities (531) (535)

Net assets attributable to shareholders 397,385 393,099

294 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains on investments during the year comprise:

Currency losses (47) (53)

Expenses relating to the purchase and sale of investments (47) (20)

Forward currency contracts gains 4 –

Non-derivative securities gains 22,085 11,215

Net capital gains 21,995 11,142

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 5 –

Interest on debt securities – (13)

Overseas dividends 9,854 9,336

Stock dividends 27 15

UK dividends 14 17

Total revenue 9,900 9,355

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 1,465 1,491

1,465 1,491

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 40 38

Dividend collection charges 6 6

Safe custody fee 68 82

114 126

Other expenses:

Audit fee* 11 10

FTSE® Index Tracker Fund licence fee 72 72

Printing & postage expenses 6 6

Statement fees 18 16

107 104

Total expenses 1,686 1,721

* The audit fee was £8,550 (2014: £8,508) net of VAT.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 295 Aviva Investors International Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax suffered 1,403 1,088 Total current tax for the year (see note 5.b) 1,403 1,088 b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 8,214 7,630 Corporation tax at 20% 1,643 1,526 Effects of: Movement in excess expenses 266 276 Non-trade deficit set against current year income – 3 Overseas dividends not subject to corporation tax (1,903) (1,793) Overseas tax suffered 1,403 1,088 Stock dividends not taxable (3) (3) Tax relief for overseas tax expensed – (6) UK dividends not subject to corporation tax (3) (3) (240) (438) Current tax charge (see note 5.a) 1,403 1,088 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £9,032,000 (2014: £7,702,000) creating a potential deferred tax asset of £1,806,000 (2014: £1,540,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

296 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the six months ended 15 April 2,804 2,816 Distributions for the six months ended 15 October 3,954 3,681 6,758 6,497 Add: Revenue deducted on cancellation of shares 176 139 Deduct: Revenue received on issue of shares (107) (84) Finance costs: Distributions 6,827 6,552 Finance costs: Interest on bank overdrafts – 4 Total finance costs 6,827 6,556 Reconciliations of distributions for the year to net revenue after taxation Distributions for the year 6,827 6,552 Equalisation on conversions (16) (7) Professional fees borne by the capital account – (3) Net revenue after taxation 6,811 6,542 Details of the distributions per share are set out in the distribution tables on page 301.

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 576 544 Amounts receivable on issue of shares 213 185 Income tax recoverable 1 1 Overseas tax recoverable 223 261 Sales awaiting settlement 81 – Total debtors 1,094 992

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 3,980 4,180

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 235 249 Amounts payable for cancellation of shares 296 286 Total creditors 531 535

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10 Contingent liabilities and commitments The contingent liabilities and commitments at the balance sheet date are as follows:

As at As at 15.10.15 15.10.14 £000 £000 Banco Popular Espanol Sa (Nil Paid Rights) – 25 Immoeast (Nil Paid Rights) – 10 Total contingent liabilities and commitments – 35

11 Related party transactions ACD periodic charges paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £174,000 (2014: £193,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £5,144,000 (2014: £4,851,000). The amount outstanding at the year end was £2,975,000 (2014: £2,734,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class SC 1 shares) 2,967,430 (478,767) 3,446,197 ACD and related parties (share class SC 2 shares) 1,269,628 396,510 873,118 ACD and related parties (share class SC 3 shares) 121,448,624 (3,924,453) 125,373,077 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

12 Shareholder funds The Fund currently has three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 0.90% Class 2: 0.20% Class 3: 0.20% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 252. The distributions per share class are given in the distribution tables on page 301. All the share classes have the same rights on winding up.

298 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 99.29% (2014: 99.21%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Net foreign currency assets

Monetary exposure Non monetary exposure Total £000 £000 £000

Currency 15.10.15 15.10.14 15.10.15 15.10.14 15.10.15 15.10.14 Australian Dollar 107 132 10,564 12,526 10,671 12,658 Brazilian Real 39 8 1,740 3,812 1,779 3,820 Canadian Dollar 44 42 12,285 14,512 12,329 14,554 Czech Koruna 1 2 95 109 96 111 Danish Krone 37 2 2,826 2,379 2,863 2,381 Euro 92 89 47,155 45,280 47,247 45,369 Hong Kong Dollar 7 49 5,448 5,663 5,455 5,712 Hungarian Forint – – 123 107 123 107 Israeli New Shekels 62 20 469 481 531 501 Japanese Yen 334 378 37,882 35,228 38,216 35,606 Malaysian Ringgit 8 9 1,628 2,028 1,636 2,037 Mexican Peso 5 8 2,021 2,334 2,026 2,342 New Zealand Dollar 5 7 266 276 271 283 Norwegian Krone 25 15 1,013 1,182 1,038 1,197 Polish Zloty 37 9 632 680 669 689 Singapore Dollar 11 10 2,084 2,399 2,095 2,409 South African Rand 21 18 3,841 3,900 3,862 3,918 South Korean Won 1 – 4,498 4,177 4,499 4,177 Swedish Krona 20 12 4,509 4,513 4,529 4,525 Swiss Franc 131 211 14,354 14,048 14,485 14,259 Taiwan Dollar 207 116 2,889 3,247 3,096 3,363 Thailand Baht – – 1,016 1,186 1,016 1,186 Turkish Lira 3 6 626 726 629 732 US Dollar 557 369 234,878 227,669 235,435 228,038

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 1.00% (2014: 1.06%) of the net assets of the Fund were interest bearing.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 299 Aviva Investors International Index Tracking Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 12,386 10,981 Commissions 3 2 Taxes 1 2 Total purchase costs 4 4 Gross purchases total 12,390 10,985 Analysis of total sale costs Gross sales before transaction costs 30,077 16,030 Commissions (7) (3) Taxes (2) (1) Total sale costs (9) (4) Total sales net of transaction costs 30,068 16,026

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

300 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors International Index Tracking Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the six months ended 15 October 2015

Final distribution Final distribution Net payable paid revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.7774 – 0.7774 0.6912 Group 2 0.2122 0.5652 0.7774 0.6912 Share Class 2 Group 1 1.2483 – 1.2483 1.1124 Group 2 0.5471 0.7012 1.2483 1.1124 Share Class 3 Group 1 2.4174 – 2.4174 2.1541 Group 2 1.2968 1.1206 2.4174 2.1541

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

Interim distribution paid in pence per share for the six months ended 15 April 2015

Interim distribution Interim distribution Net paid paid revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.4497 – 0.4497 0.4632 Group 2 0.3650 0.0847 0.4497 0.4632 Share Class 2 Group 1 0.8957 – 0.8957 0.8587 Group 2 0.5010 0.3947 0.8957 0.8587 Share Class 3 Group 1 1.7346 – 1.7346 1.6643 Group 2 1.1185 0.6161 1.7346 1.6643

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 301 Aviva Investors Global Equity Income Fund

AVIVA INVESTORS GLOBAL EQUITY INCOME FUND

INVESTMENT OBJECTIVE The prospects for global equities remain moderately favourable, despite recent setbacks. The economic landscape is improving in To provide an annualised income yield at least one and a quarter much of the ‘developed’ world and this should enable companies times that of the annual income yield obtainable on the MSCI to continue growing profits and hence dividends. Furthermore, World Index (GBP), with the potential for capital growth. Income with inflation subdued it looks like global monetary policy should on the Fund will be paid quarterly. The income aim is a 12 month remain extremely loose. However, we are keeping a close eye on rolling target and is before the deduction of charges and after the Chinese slowdown which has the potential to sour the global the deduction of tax for a UK basic rate income taxpayer. For the economic outlook. purposes of measuring the income aim the annual income yield of the Index will also be calculated on a 12 month rolling basis. November 2015 Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Market data – Bloomberg. Any opinions expressed are those of the fund manager. They should not be viewed as a INVESTMENT POLICY guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell stocks. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as The Fund aims to achieve the investment objective by investing up. Investors may not get back the original amount invested. principally in global equities judged to offer above average dividend yields with prospects of dividend growth and the potential for long term capital growth. The Fund may also invest Material Portfolio Changes in other transferable securities, collective investment schemes, money market instruments, deposits, cash, near cash, derivatives Purchases Sales and forward transactions. Telenor ASA Apple, Inc.

Ford Motor Co. Astellas Pharma, Inc. FUND MANAGER’S REPORT Allianz SE Altria Group, Inc. Gilead Sciences, Inc. Amgen, Inc. Over the 12 months ended 15 October 2015, the Aviva Investors Global Equity Income Fund (share class 1) returned 9.65 per Cisco Systems, Inc. ConocoPhillips cent over the reporting period, in comparison with a sector ConocoPhillips Boeing Co. (The) average return of 6.27 per cent for the Investment Association Global Equity Income sector. The MSCI World Index, the Fund’s Danske Bank A/S Coca-Cola Co. (The) benchmark, returned 10.98 per cent. Prudential plc QUALCOMM, Inc.

Stock selection in the healthcare sector detracted from Deutsche Telekom AG CME Group, Inc. performance, notably the Fund’s holdings in GlaxoSmithKline and Japanese group Astellas Pharmaceutical. Both stocks L Brands, Inc. Home Depot, Inc. (The) declined on concerns over their drugs pipeline with Glaxo weaker on the prevailing view that earnings remain too dependent on established drugs such as asthma treatment Advair. Synthetic Risk and Reward Indicator In the energy sector, the Fund’s holding in US oil producer Lower risk Higher risk Conoco Phillips weakened on lower crude prices, despite the company’s second-quarter earnings exceeding consensus forecasts. However, the Fund’s stake in US oil refining group Typically lower rewards Typically higher rewards Marathon Petroleum performed well as the lower oil price has widened profit margins. 1 2 3 4 5 6 7 Amongst consumer stocks the Fund’s holdings in US retailers The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk Home Depot and L Brands, which operates nearly 3000 outlets number has been based on the historic volatility of the asset classes appropriate worldwide including lingerie chain La Senza, contributed as both to the Fund. companies upgraded their full-year earnings forecasts. – This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the We added a holding in US IT network equipment provider Fund. Cisco Systems, where profit margins have rebounded with the – The risk and reward category shown is not guaranteed to remain unchanged prospect of enhanced returns to shareholders in the form of and may change over time. The lowest category does not mean ‘risk free’. dividend growth and share buybacks. We also initiated a position – The value of investments will be affected by changes in exchange rates. in German media company Prosieben, the country’s market – Full information on the risks applicable to the Fund is detailed in the leader in TV advertising. The company has an attractive array of Prospectus. digital assets, such as video-on-demand platforms, as well as an e-commerce portfolio which is a key growth driver. We sold our position in beverages group Coca Cola as concerns over rising obesity have weakened sales volumes in carbonated soft drinks, particularly in the US.

302 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares Share Price Record – Income Shares Net asset value* Shares Pence per Calendar Highest price* Lowest price* Share class As at £000 in issue share Share class year (p) (p) Class 1 15.10.13** 23 22,624 100.81 Class 1 2013** 105.76 96.15

15.10.14 71 70,447 101.10 2014 110.68 96.16

15.10.15 154 142,307 108.06 2015*** 123.57 101.61

Class 2 15.10.13** 2 2,000 101.20 Class 2 2013** 105.84 96.28

15.10.14 30 29,208 102.27 2014 112.07 96.76

15.10.15 330 299,965 110.15 2015*** 125.47 103.46

Class 3 15.10.13 215 227,062 94.48 Class 3 2010 81.62 66.19

15.10.14 189 197,171 95.56 2011 85.10 65.96

15.10.15 165 159,451 103.28 2012 86.99 75.22

* Valued at bid market prices. 2013 98.59 84.79 ** From 12 April 2013 (date of launch). 2014 104.76 90.52

2015*** 117.46 96.97 Net Asset Value – Accumulation Shares * Valued at mid market prices. Net asset value* Shares Pence per ** From 12 April 2013 (date of launch). Share class As at £000 in issue share *** Up to 15 October 2015. Class 1 15.10.13 23,182 24,851,502 93.29

15.10.14 22,281 23,123,586 96.36 Share Price Record – Accumulation Shares Calendar Highest price* Lowest price* 15.10.15 22,494 21,290,636 105.66 Share class year (p) (p) Class 2 15.10.13 81 80,120 100.65 Class 1 2010 80.00 64.86 15.10.14 534 509,383 104.75 2011 83.39 64.36 15.10.15 1,856 1,603,500 115.73 2012 84.92 73.63 Class 3 15.10.13** 38,781 40,235,615 96.39 2013 96.37 82.85 15.10.14 40,483 40,178,068 100.76 2014 105.51 89.55 15.10.15 2 1,682 111.88 2015*** 118.34 98.86 * Valued at bid market prices. ** From 12 April 2013 (date of launch). Class 2 2010 84.88 68.68 2011 89.36 68.55

2012 90.67 78.53

2013 104.05 88.86

2014 114.80 96.84

2015*** 129.13 108.18

Class 3 2013** 99.68 90.07

2014 110.48 92.86

2015*** 124.49 104.50

* Valued at mid market prices. ** From 12 April 2013 (date of launch). *** Up to 15 October 2015.

Ongoing Charges Figure* Share class 15.10.15 15.10.14 Class 1 1.66% 1.65%

Class 2 0.91% 0.90%

Class 3 0.46% 0.45%

* The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 303 Aviva Investors Global Equity Income Fund

INVESTMENT PERFORMANCE (CONTINUED)

Revenue Record – Income Shares Revenue Record – Accumulation Shares The revenue record table below shows the net distribution rates The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment per calendar year on a payment date basis for an investment made on 4 January 2010 (12 April 2013 for Share Class 1 and made on 4 January 2010 (12 April 2013 for share class 3). Share Class 2). Calendar Net revenue Per £1,000 Calendar Net revenue Per £1,000 Share class year per share (p) invested (£) Share class year per share (p) invested (£) Class 1 2010 0.0000 0.00 Class 1 2013* 1.7102 17.10 2011 0.0000 0.00 2014 2.9749 29.75 2012 0.0000 0.00 2015** 2.9048 29.05 2013 2.0701 29.62 Class 2 2013* 1.6915 16.92 2014 2.7842 39.84 2014 2.9614 29.61 2015** 2.7941 39.98 2015** 2.9514 29.51 Class 2 2010 0.2339 3.17 Class 3 2010 0.6526 9.17 2011 0.3042 4.12 2011 0.8481 11.92 2012 0.3091 4.19 2012 0.8488 11.93 2013 2.5635 34.74 2013 2.5680 36.08 2014 3.0160 40.87 2014 3.1384 44.10 2015** 3.0505 41.33 2015** 2.8666 40.28 Class 3 2013* 1.6630 16.63 * From 12 April 2013 (date of launch). ** Up to 15 December 2015 (the final distribution payment date). 2014 2.9929 29.93 2015** 3.0986 30.99

* From 12 April 2013 (date of launch). ** Up to 15 December 2015 (the final distribution payment date).

304 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Equities 95.81% (96.51%) Australia 2.40% (2.44%) Australia & New Zealand Banking Group Ltd. AUD 44,378 601 2.40 601 2.40 Canada 1.60% (2.54%) Nortel Networks Corp.^ CAD 170 – – Toronto-Dominion Bank (The) CAD 15,214 399 1.60 399 1.60 Curacao 2.19% (2.80%) Schlumberger Ltd. USD 11,271 546 2.19 546 2.19 Denmark 2.84% (0.00%) Danske Bank A/S DKK 35,872 711 2.84 711 2.84 Finland 1.55% (0.00%) Kone OYJ ‘B’ EUR 14,288 387 1.55 387 1.55 France 2.35% (1.45%) Vinci SA EUR 13,730 588 2.35 588 2.35 Germany 9.13% (5.91%) Allianz SE EUR 4,433 480 1.92 BASF SE EUR 8,416 445 1.78 Deutsche Telekom AG EUR 50,299 557 2.23 ProSiebenSat.1 Media SE EUR 10,095 338 1.35 Siemens AG EUR 7,428 463 1.85 2,283 9.13 Italy 0.00% (2.04%) Japan 5.33% (9.82%) Daito Trust Construction Co. Ltd. JPY 6,900 484 1.93 Sumitomo Mitsui Financial Group, Inc. JPY 17,000 429 1.72 Toyota Motor Corp. JPY 10,600 419 1.68 1,332 5.33 Netherlands 4.62% (2.84%) Koninklijke Ahold NV EUR 33,551 435 1.74 LyondellBasell Industries NV ‘A’ USD 11,866 721 2.88 1,156 4.62 Norway 2.50% (0.00%) Telenor ASA NOK 48,438 624 2.50 624 2.50 Singapore 0.00% (1.76%) Switzerland 3.02% (2.63%) Roche Holding AG CHF 4,391 756 3.02 756 3.02 United Kingdom 9.94% (11.08%) GlaxoSmithKline plc GBP 36,984 491 1.96 Legal & General Group plc GBP 268,742 660 2.64 Prudential plc GBP 42,736 631 2.52 Unilever plc GBP 24,207 704 2.82 2,486 9.94

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 305 Aviva Investors Global Equity Income Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United States of America 48.34% (51.20%) Altria Group, Inc. USD 21,583 802 3.21 Amgen, Inc. USD 6,930 661 2.64 Apple, Inc. USD 14,593 1,038 4.15 AT&T, Inc. USD 24,241 520 2.08 Boeing Co. (The) USD 8,057 698 2.79 Cisco Systems, Inc. USD 29,410 528 2.11 Ford Motor Co. USD 60,464 586 2.35 Gilead Sciences, Inc. USD 7,989 507 2.03 Home Depot, Inc. (The) USD 9,635 748 2.99 Honeywell International, Inc. USD 11,834 751 3.00 JPMorgan Chase & Co. USD 16,130 625 2.50 L Brands, Inc. USD 9,376 577 2.31 Marathon Petroleum Corp. USD 16,708 524 2.10 McDonald’s Corp. USD 9,820 652 2.61 Microsoft Corp. USD 20,567 620 2.48 Pfizer, Inc. USD 32,372 690 2.76 Texas Instruments, Inc. USD 18,023 613 2.45 Time Warner, Inc. USD 11,944 548 2.19 Union Pacific Corp. USD 6,599 396 1.59 12,084 48.34 Equities total 23,953 95.81

Investment assets 23,953 95.81 Net other assets 1,048 4.19 Net assets 25,001 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. ^ Unlisted, suspended or delisted security.

306 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains 2 8,852 1,112

Revenue 3 1,303 2,145

Expenses 4 (494) (555)

Net revenue before taxation 809 1,590

Taxation 5 (150) (215)

Net revenue after taxation 659 1,375

Total return before distributions 9,511 2,487

Finance costs: Distributions 6 (1,105) (1,879)

Change in net assets attributable to shareholders from investment activities 8,406 608

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 63,588 62,284

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 3,663 3,747

Amounts payable on cancellation of shares (51,626) (4,916)

(47,963) (1,169)

Dilution levy 103 –

Stamp duty reserve tax – (1)

Change in net assets attributable to shareholders from investment activities (see above) 8,406 608

Retained distribution on accumulation shares 867 1,866

Closing net assets attributable to shareholders 25,001 63,588

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 307 Aviva Investors Global Equity Income Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 23,953 61,371

Debtors 7 63 269

Cash and bank balances 8 1,076 2,337

Total other assets 1,139 2,606

Total assets 25,092 63,977

LIABILITIES

Creditors 9 (88) (387)

Distribution payable on income shares (3) (2)

Total liabilities (91) (389)

Net assets attributable to shareholders 25,001 63,588

308 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains

Year ended Year ended 15.10.15 15.10.14 £000 £000

Net capital gains on investments during the year comprise:

Currency (losses)/gains (82) 19

Derivative contracts losses – (51)

Expenses relating to the purchase and sale of investments (5) (1)

Forward currency contracts losses (2) –

Non-derivative securities gains 8,941 1,145

Net capital gains 8,852 1,112

3 Revenue

Year ended Year ended 15.10.15 15.10.14 £000 £000

Bank and deposit interest 1 3

Overseas dividends 1,138 1,857

UK dividends 164 285

Total revenue 1,303 2,145

4 Expenses

Year ended Year ended 15.10.15 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD’s periodic charge 446 504

Registration fees 25 1

471 505

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 5 7

Safe custody fee 5 8

10 15

Other expenses:

Audit fee* 10 10

Printing & postage expenses – 23

Statement fees 3 2

13 35

Total expenses 494 555

* The audit fee was £7,726 (2014: £7,688) net of VAT.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Year ended 15.10.15 15.10.14 £000 £000 Overseas tax suffered 150 215 Total current tax for the year (see note 5.b) 150 215 b Factors affecting current tax charge The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%). The differences are explained below:

Year ended Year ended 15.10.15 15.10.14 £000 £000 Net revenue before taxation 809 1,590 Corporation tax at 20% 162 318 Effects of: Movement in excess expenses 99 104 Overseas dividends not subject to corporation tax (228) (364) Overseas tax suffered 150 215 UK dividends not subject to corporation tax (33) (58) (12) (103) Current tax charge (see note 5.a) 150 215 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There is no material unprovided deferred tax (2014: £nil). After claiming relief against accrued income taxable on receipt, the Fund has unrelieved excess expenses of £4,560,000 (2014: £4,067,000) creating a potential deferred tax asset of £912,000 (2014: £813,000). It is unlikely that the Fund will generate taxable profits in the future to utilise these amounts and therefore no deferred tax asset has been recognised in the current or prior year.

310 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Finance costs Distributions and interest

Year ended Year ended 15.10.15 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the three months ended 15 January 336 400 Distributions for the three months ended 15 April 227 496 Distributions for the three months ended 31 July 198 505 Distributions for the three months ended 15 October 120 473 881 1,874 Add: Revenue deducted on cancellation of shares 233 21 Deduct: Revenue received on issue of shares (9) (16) Finance costs: Distributions 1,105 1,879 Reconciliations of distributions for the year to net revenue after taxation Distributions for the year 1,105 1,879 ACD’s periodic charge borne by the capital account (446) (504) Net revenue after taxation 659 1,375 Details of the distributions per share are set out in the distribution tables on pages 314 and 315.

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 34 127 Amounts receivable on issue of shares 4 83 Overseas tax recoverable 25 59 Total debtors 63 269

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Cash and bank balances 1,076 2,337

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 63 83 Amounts payable for cancellation of shares 25 26 Purchases awaiting settlement – 278 Total creditors 88 387

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £46,000 (2014: £67,000) and registration fees were £3,000 (2014: £3,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £236,000 (2014: £1,211,000). The amount outstanding at the year end was £3,300 (2014: £309,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Any fee payable to Aviva Investors Global Services Limited is paid by the ACD. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class 1 Accumulation shares) 4,800 (319,760) 324,560 ACD and related parties (share class 2 Income shares) 1,324 1,324 – ACD and related parties (share class 2 Accumulation shares) 425,827 404,585 21,242 ACD and related parties (share class 3 Income shares) 159,451 (37,720) 197,171 ACD and related parties (share class 3 Accumulation shares) 1,682 (40,176,386) 40,178,068 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

12 Shareholder funds The Fund currently has three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 3 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 1: 1.50% Class 2: 0.75% Class 3: 0.40% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 303. The distributions per share class are given in the distribution tables on pages 314 and 315. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 86.12% (2014: 85.96%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be significantly affected by currency movements.

Net foreign currency assets

Monetary exposure Non monetary exposure Total £000 £000 £000

Currency 15.10.15 15.10.14 15.10.15 15.10.14 15.10.15 15.10.14 Australian Dollar – (2) 601 1,553 601 1,551 Canadian Dollar 7 12 399 1,613 406 1,625 Danish Krone – – 711 – 711 – Euro 12 28 3,693 5,976 3,705 6,004 Japanese Yen 17 75 1,332 6,235 1,349 6,310 Norwegian Krone 2 – 624 – 626 – Singapore Dollar – 1 – 1,119 – 1,120 Swiss Franc 11 25 756 1,674 767 1,699 US Dollar 14 188 13,351 36,163 13,365 36,351

312 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Interest rate risk profile of financial assets and financial liabilities The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. At the year end date 4.30% (2014: 3.68%) of the net assets of the Fund were interest bearing. The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

14 Portfolio transaction costs

Year ended Year ended 15.10.15 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 15,004 13,858 Commissions 24 24 Taxes 5 13 Total purchase costs 29 37 Gross purchases total 15,033 13,895 Analysis of total sale costs Gross sales before transaction costs 61,415 15,256 Commissions (28) – Taxes (1) – Total sale costs (29) – Total sales net of transaction costs 61,386 15,256

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 313 Aviva Investors Global Equity Income Fund

DISTRIBUTION TABLES

Final distribution payable in pence per share for the three months ended 15 October 2015

Final distribution Final distribution Net payable paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.5238 – 0.5238 0.7412 Group 2 0.1862 0.3376 0.5238 0.7412 Share Class 2 Group 1 0.5337 – 0.5337 0.7473 Group 2 0.2770 0.2567 0.5337 0.7473 Share Class 3 Group 1 0.5259 – 0.5259 0.7252 Group 2 0.1431 0.3828 0.5259 0.7252

Final distribution Final distribution Net payable paid Accumulation shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 1 Group 1 0.5097 – 0.5097 0.7017 Group 2 0.1696 0.3401 0.5097 0.7017 Share Class 2 Group 1 0.5582 – 0.5582 0.7622 Group 2 0.4372 0.1210 0.5582 0.7622 Share Class 3 Group 1 0.5828 – 0.5828 0.7586 Group 2 0.5828 0.0000 0.5828 0.7586

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 July 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 July 2015.

Interim distribution paid in pence per share for the three months ended 15 July 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 0.8715 – 0.8715 0.8029 Group 2 0.2091 0.6624 0.8715 0.8029 Share Class 2 Group 1 0.8855 – 0.8855 0.8101 Group 2 0.5243 0.3612 0.8855 0.8101 Share Class 3 Group 1 0.8567 – 0.8567 0.7626 Group 2 0.3843 0.4724 0.8567 0.7626

Interim distribution Interim distribution Net paid paid Accumulation shares revenue Equalisation 15 September 2015 15 September 2014 Share Class 1 Group 1 0.8415 – 0.8415 0.7539 Group 2 0.2811 0.5604 0.8415 0.7539 Share Class 2 Group 1 0.9193 – 0.9193 0.8173 Group 2 0.5940 0.3253 0.9193 0.8173 Share Class 3 Group 1 0.9336 – 0.9336 0.8091 Group 2 0.9336 0.0000 0.9336 0.8091

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 April 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 April 2015.

314 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Global Equity Income Fund

DISTRIBUTION TABLES (CONTINUED)

Interim distribution paid in pence per share for the three months ended 15 April 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 1.0017 – 1.0017 0.7948 Group 2 0.4342 0.5675 1.0017 0.7948 Share Class 2 Group 1 1.0176 – 1.0176 0.7855 Group 2 0.6618 0.3558 1.0176 0.7855 Share Class 3 Group 1 0.9781 – 0.9781 1.1258 Group 2 0.9329 0.0452 0.9781 1.1258

Interim distribution Interim distribution Net paid paid Accumulation shares revenue Equalisation 15 June 2015 15 June 2014 Share Class 1 Group 1 0.9592 – 0.9592 0.7398 Group 2 0.5657 0.3935 0.9592 0.7398 Share Class 2 Group 1 1.0461 – 1.0461 0.8006 Group 2 0.4970 0.5491 1.0461 0.8006 Share Class 3 Group 1 1.0484 – 1.0484 0.7916 Group 2 0.8993 0.1491 1.0484 0.7916

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 January 2015. Group 2 shares are those shares purchased after 12:00 noon on 15 January 2015.

Interim distribution paid in pence per share for the three months ended 15 January 2015

Interim distribution Interim distribution Net paid paid Income shares revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.5078 – 0.5078 0.6360 Group 2 0.1383 0.3695 0.5078 0.6360 Share Class 2 Group 1 0.5146 – 0.5146 0.6185 Group 2 0.2870 0.2276 0.5146 0.6185 Share Class 3 Group 1 0.5059 – 0.5059 0.5248 Group 2 0.1396 0.3663 0.5059 0.5248

Interim distribution Interim distribution Net paid paid Accumulation shares revenue Equalisation 15 March 2015 15 March 2014 Share Class 1 Group 1 0.4837 – 0.4837 0.5888 Group 2 0.1990 0.2847 0.4837 0.5888 Share Class 2 Group 1 0.5269 – 0.5269 0.6359 Group 2 0.2868 0.2401 0.5269 0.6359 Share Class 3 Group 1 0.5338 – 0.5338 0.6336 Group 2 0.2927 0.2411 0.5338 0.6336

Interim distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 315 Aviva Investors Multi-Strategy Target Return Fund

AVIVA INVESTORS MULTI-STRATEGY TARGET RETURN FUND

INVESTMENT OBJECTIVE And equity strategies added further value, especially the Fund’s exposure to Chinese, US and Japanese stocks. To deliver a positive return over rolling three year periods regardless of the prevailing stock market environment. The Fund On the downside, an equity strategy which relies on US large- aims to generate a positive return, on average 5% per annum cap stocks outperforming smaller companies’ shares weighed above the Bank of England Base Rate before the deduction of on performance, as did another that is looking for the shares charges, over rolling three year periods. In seeking to target this of US technology companies to outperform those of European level of return the Fund also aims to manage volatility to a target peers. And within fixed income, a position that would benefit of less than half the volatility of global equities, measured over if the market priced in higher long-term UK interest rates also the same rolling three year periods. These aims, however, are not detracted from performance. guaranteed and it may not always be possible to achieve positive November 2015 returns or to achieve the target level of volatility over rolling three Sources: Fund and peer group performance figures – Lipper, mid to mid basis with net income year periods, or over any period of investment. Consequently, reinvested in GBP, with no initial charges applied. Market data – Bloomberg. investors’ capital is at risk. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell securities. Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. INVESTMENT POLICY In aiming to achieve the investment objective the Fund may invest globally in any of the following financial instruments: transferable Material Portfolio Changes securities, money market instruments, fixed interest securities, Purchases Sales units in collective investment schemes, derivatives, forwards and deposits. Italy Buoni Poliennali Del Tesoro 5.00% 01/09/2040 Unilver plc 0.52% 06/08/2015 The Fund will make significant use of derivative instruments including: futures, options, swaps, swaptions and forwards. Standard Chartered Bank 0.64% 03/12/2015 Nordea Bank Finland plc 0.55% 02/09/2015 The Fund may take both long and synthetic short positions and ING Bank NV 0.58% 02/11/2015 Nationwide Building Society 0.59% 02/09/2015 derivative usage may include but is not limited to derivatives Cooperatieve Centrale Raiffeisen- on interest rates, inflation rates, bonds, credit, equity, financial Boerenleenbank Bank B.A. 0.60% Oversea-Chinese Banking Corp. 0.52% indices, volatility, dividend payments and currencies. Derivatives 16/11/2015 09/09/2015 usage may be for the purposes of hedging, efficient portfolio Bank of Tokyo-Mitsubishi UFJ Ltd. 0.56% management, or investment purposes and may be exchange 06/11/2015 DNB Bank ASA 0.55% 09/08/2015 traded or traded off exchange through market counterparties. The use of derivative instruments as part of the investment policy UBS AG 0.65% 07/12/2015 Citibank NA 0.56% 05/06/2015 will mean that the Fund may, from time to time, have substantial Toronto-Dominion Bank (The) 0.55% holdings in liquid assets including deposits and money market 22/10/2015 UBS AG 0.53% 06/08/2015 instruments. Nordea Bank Finland plc 0.55% 02/09/2015 Citibank NA 0.57% 02/09/2015

Nationwide Building Society 0.59% 02/09/2015 Svenska Handelsbanken AB 0.55% 23/09/2015 FUND MANAGER’S REPORT Oversea-Chinese Banking Corp. 0.52% Credit Suisse AG (London Branch) 0.55% Over the 12 months ended 15 October 2015, the Aviva Investors 09/09/2015 31/07/2015 Multi-Strategy Target Return Fund (share class 6) returned 7.55 per cent over the period. The Fund’s peer group – the Investment Association’s Targeted Absolute Return sector – delivered a Synthetic Risk and Reward Indicator average return of 5.50 per cent. Lower risk Higher risk ‘Long’ positions in the US dollar against various other currencies – but most notably the euro, Australian dollar and sterling – provided a sizeable boost to performance. Other strategies Typically lower rewards Typically higher rewards which are looking for yields to fall in a number of countries’ bond markets also made a healthy contribution to performance as did 1 2 3 4 5 6 7 stakes in various equity markets. The Fund has been allocated a risk number based on the historic volatility of its share price. Where insufficient share price information is available, the risk The US dollar climbed sharply over the review period against number has been based on the historic volatility of the asset classes appropriate many currencies. They included sterling, which fell from to the Fund. overvalued levels, and the euro as the European Central Bank – This indicator is based on historical data, calculated using European Union (ECB) began ‘quantitative easing’. This was of major benefit to rules, and may not be a reliable indication of the future risk profile of the the Fund which was positioned to take advantage of widening Fund. interest-rate differentials between the US and Europe. A long – The risk and reward category shown is not guaranteed to remain unchanged position in the Indian rupee against the euro was also profitable. and may change over time. The lowest category does not mean ‘risk free’. – Full information on the risks applicable to the Fund is detailed in the Within fixed income, strategies positioned to benefit from Prospectus. falling yields in the South Korean, Australian and Italian markets delivered healthy returns.

316 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

INVESTMENT PERFORMANCE

Net Asset Value – Accumulation Shares Ongoing Charges Figure* Net asset value* Shares Pence per Share class 15.10.15 15.10.14 Share class As at £000 in issue share Class 2 0.85% 0.85% Class 2 15.10.14 6,928 6,885,148 100.63 Class 3 0.13% 0.23% 15.10.15 168,885 155,745,487 108.44 Class 5 0.80% 0.80% Class 3 15.10.14 108,950 108,123,851 100.76 Class 6 1.10% 1.10% 15.10.15 619,921 567,723,812 109.19 Class 8 0.59% – Class 5 15.10.14 449 446,305 100.57 * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges 15.10.15 32,593 30,063,180 108.42 to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes Class 6 15.10.14 451 448,435 100.57 transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. 15.10.15 1,880 1,738,593 108.15

Class 8 15.10.15 43 38,894 109.18 * Valued at bid market prices. Revenue Record – Accumulation Shares The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment Share Price Record – Accumulation Shares made on 1 July 2014 (11 July 2014 for Share Class 5 and Calendar Highest price* Lowest price* 1 October 2015 for Share Class 8). Share class year (p) (p) Calendar Net revenue Per £1,000 Class 2 2014** 104.75 99.77 Share class year per share (p) invested (£) 2015† 110.57 105.11 Class 2 2014 0.0000 0.00 Class 3 2014** 105.01 99.78 2015* 0.0000 0.00 2015† 111.02 105.37 Class 3 2014 0.0495 0.50 Class 5 2014† 104.71 99.78 2015* 0.5360 5.36 2015† 110.53 105.06 Class 5 2014 0.0000 0.00 Class 6 2014** 104.65 99.77 2015* 0.0000 0.00 2015† 110.39 105.00 Class 5 2014 0.0000 0.00 Class 8 2015†† 109.75 109.12 2015* 0.0000 0.00 * Valued at mid market prices. Class 8 2015** 0.5243 4.79 ** From 1 July 2014 (date of launch). *** From 11 July 2014 (date of launch). * Up to 15 December 2015 (the final distribution payment date). † Up to 15 October 2015. ** From 1 October 2015 (date of launch) up to 15 December 2015 (the final distribution †† From 1 October 2015 (date of launch) to 15 October 2015. payment date).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 317 Aviva Investors Multi-Strategy Target Return Fund

PORTFOLIO STATEMENT As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Collective Investment Schemes 4.18% (1.50%) Ireland 1.13% (0.52%) BlackRock iShares II plc – iShares MSCI Turkey Fund GBP 545,622 9,319 1.13 9,319 1.13 Luxembourg 0.97% (0.98%) Aviva Investors – Emerging Europe Equity Fund Class Zy Accumulation shares◊ GBP 8,143 8,003 0.97 8,003 0.97 United States of America 2.08% (0.00%) Consumer Discretionary Select Sector SPDR Fund USD 339,000 17,069 2.08 17,069 2.08 Collective Investment Schemes total 34,391 4.18 Government Bonds 9.08% (7.28%) Brazil 0.00% (5.28%) Italy 6.45% (0.00%) Italy Buoni Poliennali Del Tesoro 5.00% 01/09/2040 EUR 50,678,000 53,102 6.45 53,102 6.45 United States of America 2.63% (2.00%) GNMA, FRN, Series 2012-114 ‘Z’ 2.78% 16/08/2054 USD 6,093,847 3,377 0.41 GNMA, FRN, Series 2013-33 ‘Z’ 2.56% 16/04/2054 USD 4,244,692 2,198 0.27 GNMA, FRN, Series 2013-158 ‘Z’ 3.06% 16/12/2054 USD 4,326,645 2,523 0.30 GNMA, FRN, Series 2015-22 ‘Z’ 3.30% 16/03/2055 USD 7,760,873 4,432 0.54 GNMA, FRN, Series 2015-73 ‘Z’ 3.49% 16/12/2056 USD 10,887,576 7,077 0.86 GNMA, FRN, Series 2015-115 ‘Z’ 3.00% 16/07/2057 USD 3,659,125 2,039 0.25 21,646 2.63 Government Bonds total 74,748 9.08 Certificates of Deposit 71.90% (54.39%) United Kingdom 71.90% (54.39%) Abbey National Treasury Services plc 0.58% 04/01/2016 GBP 15,000,000 15,000 1.82 ABN AMRO Bank NV 0.63% 15/02/2016 GBP 15,000,000 15,000 1.82 Bank of America NA 0.56% 16/10/2015 GBP 10,000,000 10,000 1.21 Bank of America NA 0.58% 05/11/2015 GBP 15,000,000 15,000 1.82 Bank of Tokyo-Mitsubishi UFJ Ltd. 0.56% 06/11/2015 GBP 30,000,000 30,000 3.64 Banque Federative Du Credit Mutuel SA 0.60% 04/01/2016 GBP 15,000,000 15,000 1.82 Citibank NA 0.58% 13/11/2015 GBP 15,000,000 15,000 1.82 Citibank NA 0.58% 02/12/2015 GBP 20,000,000 20,000 2.43 Cooperatieve Centrale Raiffeisen-Boerenleenbank Bank B.A. 0.60% 16/11/2015 GBP 30,000,000 30,001 3.64 Credit Agricole Corporate & Investment Bank SA 0.62% 21/12/2015 GBP 5,000,000 5,001 0.61 Credit Suisse AG 0.74% 11/03/2016 GBP 20,000,000 19,998 2.43 DNB Bank ASA 0.58% 04/01/2016 GBP 10,000,000 10,000 1.21 DNB Bank ASA 0.60% 18/01/2016 GBP 20,000,000 20,000 2.43 Industrial & Commercial Bank of China 0.60% 11/12/2015 GBP 25,000,000 24,998 3.04 ING Bank NV 0.58% 02/11/2015 GBP 35,000,000 35,000 4.25 National Australia Bank Ltd. 0.54% 20/10/2015 GBP 7,000,000 7,000 0.85 National Bank of Abu Dhabi PJSC 0.68% 28/01/2016 GBP 5,000,000 5,000 0.61 National Bank of Abu Dhabi PJSC 0.65% 05/02/2016 GBP 15,000,000 15,000 1.82 National Bank of Abu Dhabi PJSC 0.90% 06/06/2016 GBP 10,000,000 10,000 1.22 Nationwide Building Society 0.60% 13/11/2015 GBP 10,000,000 10,000 1.21 Nationwide Building Society 0.60% 02/12/2015 GBP 25,000,000 25,000 3.04 Natixis SA 0.59% 17/11/2015 GBP 5,000,000 5,000 0.61 Natixis SA 0.65% 09/02/2016 GBP 12,000,000 12,000 1.46 Nordea Bank Finland plc 0.54% 20/11/2015 GBP 5,000,000 5,000 0.61 Nordea Bank Finland plc 0.53% 04/12/2015 GBP 15,000,000 15,000 1.82 Qatar National Bank (London Branch) 11/11/2015 GBP 15,000,000 14,994 1.82 Skandinaviska Enskilda Banken AB 0.70% 25/02/2016 GBP 20,000,000 20,000 2.43 Skandinaviska Enskilda Banken AB 0.66% 14/03/2016 GBP 15,000,000 15,000 1.82

318 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets United Kingdom 71.90% (54.39%) (continued) Standard Chartered Bank 0.64% 03/12/2015 GBP 35,000,000 35,000 4.25 Standard Chartered Bank 0.73% 10/02/2016 GBP 2,000,000 2,000 0.24 Sumitomo Mitsui Banking Corp. Europe Ltd. 0.58% 30/10/2015 GBP 6,000,000 6,000 0.73 Sumitomo Mitsui Banking Corp. Europe Ltd. 0.59% 03/12/2015 GBP 10,000,000 10,001 1.22 Sumitomo Mitsui Banking Corp. Europe Ltd. 0.58% 04/01/2016 GBP 15,000,000 15,000 1.82 Svenska Handelsbanken AB 0.54% 23/12/2015 GBP 5,000,000 5,000 0.61 Svenska Handelsbanken AB 0.54% 07/01/2016 GBP 10,000,000 10,000 1.21 Toronto-Dominion Bank (The) 0.55% 22/10/2015 GBP 25,000,000 25,000 3.04 Toronto-Dominion Bank (The) 0.55% 09/11/2015 GBP 5,000,000 5,000 0.61 UBS AG 0.65% 07/12/2015 GBP 30,000,000 30,000 3.64 United Overseas Banking Ltd. 0.54% 11/11/2015 GBP 5,000,000 5,000 0.61 United Overseas Banking Ltd. 0.55% 14/12/2015 GBP 5,000,000 5,000 0.61 591,993 71.90 Certificates of Deposit total 591,993 71.90 Commercial Papers 2.43% (0.00%) United Kingdom 2.43% (0.00%) Swedbank AB 23/12/2015 GBP 20,000,000 19,977 2.43 19,977 2.43 Commercial Papers total 19,977 2.43 Swaps 1.14% (0.39%) Equity Total Return Swap J.P. Morgan Securities plc Pay USJPTAXBI1.I Equity Index Receive floating LIBOR 3 month 04/10/2016 USD 12,293,827 (988) -0.12 Equity Variance Swap BNP Paribas SA EURO STOXX 50 Index 15/12/2017 EUR 36,773,200 403 0.05 Equity Variance Swap BNP Paribas SA USAA S&P 500 Index 15/12/2017 USD 46,067,400 (73) -0.01 Equity Variance Swap Citigroup Global Markets Ltd. KOSPI 200 Index 10/12/2015 KRW 49,837,540,100 (632) -0.08 Equity Variance Swap Citigroup Global Markets Ltd. USAA S&P 500 Index 18/12/2015 USD 42,676,500 692 0.08 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 15/12/2017 EUR 73,635,200 913 0.11 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 15/12/2017 EUR 74,154,500 812 0.10 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 15/12/2017 EUR 49,657,600 797 0.10 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 15/12/2017 EUR 72,056,700 443 0.05 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 16/06/2017 EUR 404,846,500 3,934 0.48 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 16/12/2016 EUR 31,744,100 193 0.02 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 16/12/2016 EUR 28,626,000 (436) -0.05 Equity Variance Swap Société Générale SA EURO STOXX 50 Index 17/06/2016 EUR 199,243,700 (1,987) -0.24 Equity Variance Swap Société Générale SA KOSPI 200 Index 08/12/2016 KRW 30,072,650,000 (147) -0.02 Equity Variance Swap Société Générale SA KOSPI 200 Index 10/12/2015 KRW 5,279,854,900 (73) -0.01 Equity Variance Swap Société Générale SA KOSPI 200 Index 10/12/2015 KRW 63,559,705,200 (784) -0.10 Equity Variance Swap Société Générale SA USAA S&P 500 Index 15/12/2017 USD 88,041,100 200 0.02 Equity Variance Swap Société Générale SA USAA S&P 500 Index 15/12/2017 USD 92,134,800 (146) -0.02 Equity Variance Swap Société Générale SA USAA S&P 500 Index 15/12/2017 USD 93,181,800 (245) -0.03 Equity Variance Swap Société Générale SA USAA S&P 500 Index 16/12/2016 USD 41,917,800 383 0.05 Equity Variance Swap Société Générale SA USAA S&P 500 Index 16/12/2016 USD 24,620,000 209 0.03 Equity Variance Swap Société Générale SA USAA S&P 500 Index 18/12/2015 USD 53,775,700 784 0.10 Equity Variance Swap Société Générale SA USAA S&P 500 Index 18/12/2015 USD 4,550,000 67 0.01 Inflation Rate Swap Citigroup Global Markets Ltd. Pay fixed 2.10% Receive floating USCPI 1 month 27/05/2025 USD 11,900,000 (269) -0.03 Inflation Rate Swap Citigroup Global Markets Ltd. Pay fixed 2.14% Receive floating USCPI 1 month 04/05/2025 USD 18,400,000 (464) -0.06 Inflation Rate Swap Citigroup Global Markets Ltd. Pay floating USCPI 1 month Receive fixed 1.86% 27/05/2020 USD 11,900,000 170 0.02 Inflation Rate Swap Citigroup Global Markets Ltd. Pay floating USCPI 1 month Receive fixed 1.92% 04/05/2020 USD 18,400,000 294 0.04 Inflation Rate Swap Goldman Sachs, Inc. Pay fixed 2.10% Receive floating USCPI 1 month 23/06/2025 USD 6,600,000 (139) -0.02 Inflation Rate Swap Goldman Sachs, Inc. Pay floating USCPI 1 month Receive fixed 1.84% 23/06/2020 USD 6,600,000 81 0.01 Inflation Rate Swap Merill Lynch Co., Inc. Pay fixed 2.09% Receive floating USCPI 1 month 22/04/2025 USD 38,183,731 (841) -0.10

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 319 Aviva Investors Multi-Strategy Target Return Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Swaps 1.14% (0.39%) (continued) Inflation Rate Swap Merill Lynch Co., Inc. Pay floating USCPI 1 month Receive fixed 1.87% 22/04/2020 USD 38,183,731 534 0.07 Inflation Rate Swap Mongan Stanley & Co., International plc Pay fixed 1.84% Receive floating USCPI 1 month 19/08/2025 USD 10,660,000 (59) -0.01 Inflation Rate Swap Mongan Stanley & Co., International plc Pay fixed 2.09% Receive floating USCPI 1 month 22/04/2025 USD 44,316,269 (976) -0.12 Inflation Rate Swap Mongan Stanley & Co., International plc Pay floating USCPI 1 month Receive fixed 1.48% 19/08/2020 USD 10,660,000 24 – Inflation Rate Swap Mongan Stanley & Co., International plc Pay floating USCPI 1 month Receive fixed 1.87% 22/04/2020 USD 44,316,269 620 0.08 Interest Rate Swap Citigroup Global Markets Ltd. Pay fixed 0.82% Receive floating EURIBOR 6 Month 27/04/2046 EUR 19,500,000 2,653 0.32 Interest Rate Swap Citigroup Global Markets Ltd. Pay fixed 1.06% Receive floating EURIBOR 6 Month 05/05/2046 EUR 9,314,000 851 0.10 Interest Rate Swap Citigroup Global Markets Ltd. Pay fixed 1.42% Receive floating EURIBOR 6 Month 26/05/2046 EUR 6,600,000 181 0.02 Interest Rate Swap Citigroup Global Markets Ltd. Pay floating BBR 6 month Receive fixed 3.49% 01/05/2025 AUD 27,000,000 72 0.01 Interest Rate Swap Citigroup Global Markets Ltd. Pay floating BBR 6 month Receive fixed 3.89% 15/05/2025 AUD 99,592,944 1,037 0.13 Interest Rate Swap Citigroup Global Markets Ltd. Pay floating BBR 6 month Receive fixed 3.95% 08/07/2025 AUD 19,225,131 214 0.03 Interest Rate Swap Citigroup Global Markets Ltd. Pay floating EURIBOR 6 month Receive fixed 0.60% 27/04/2026 EUR 52,500,000 (1,703) -0.21 Interest Rate Swap Citigroup Global Markets Ltd. Pay floating EURIBOR 6 month Receive fixed 0.75% 05/05/2026 EUR 28,500,000 (608) -0.07 Interest Rate Swap Citigroup Global Markets Ltd. Pay floating EURIBOR 6 month Receive fixed 1.09% 26/05/2026 EUR 17,000,000 33 – Interest Rate Swap Goldman Sachs, Inc. Pay fixed 1.87% Receive floating EURIBOR 6 Month 30/06/2046 EUR 3,400,000 (189) -0.02 Interest Rate Swap Goldman Sachs, Inc. Pay floating BBR 6 month Receive fixed 3.65% 18/08/2025 AUD 15,250,000 76 0.01 Interest Rate Swap Goldman Sachs, Inc. Pay floating EURIBOR 6 month Receive fixed 1.34% 23/05/2046 EUR 7,100,000 (292) -0.04 Interest Rate Swap Goldman Sachs, Inc. Pay floating EURIBOR 6 month Receive fixed 1.38% 20/07/2026 EUR 4,900,000 102 0.01 Interest Rate Swap HSBC Holdings plc Pay fixed 1.50% Receive floating EURIBOR 6 Month 18/05/2046 EUR 7,969,819 99 0.01 Interest Rate Swap HSBC Holdings plc Pay floating BBR 6 month Receive fixed 4.46% 08/09/2024 AUD 6,250,000 154 0.02 Interest Rate Swap J.P. Morgan Securities plc Pay floating BBR 6 month Receive fixed 3.82% 25/05/2025 AUD 25,850,000 231 0.03 Interest Rate Swap J.P. Morgan Securities plc Pay floating BBR 6 month Receive fixed 3.87% 15/05/2025 AUD 83,907,056 836 0.10 Interest Rate Swap J.P. Morgan Securities plc Pay floating BBR 6 month Receive fixed 4.69% 02/07/2024 AUD 23,600,000 716 0.09 Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 6.29% 17/02/2021 MXN 685,000,000 18 – Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 6.32% 02/04/2021 MXN 124,000,000 (3) – Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 6.59% 26/04/2021 MXN 800,000,000 156 0.02 Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 6.70% 26/07/2021 MXN 195,000,000 27 – Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 6.71% 17/05/2021 MXN 470,000,000 128 0.02 Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 6.77% 13/07/2021 MXN 222,000,000 51 0.01 Interest Rate Swap J.P. Morgan Securities plc Pay floating TIIE 4 weeks Receive fixed 7.14% 03/06/2021 MXN 180,000,000 118 0.01 Interest Rate Swap Mongan Stanley & Co., International plc Pay fixed 0.82% Receive floating URIBOR 6 Month 27/04/2046 EUR 19,500,000 2,657 0.32

320 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Swaps 1.14% (0.39%) (continued) Interest Rate Swap Mongan Stanley & Co., International plc Pay fixed 1.51% Receive floating EURIBOR 6 Month 18/05/2046 EUR 5,650,000 60 0.01 Interest Rate Swap Mongan Stanley & Co., International plc Pay fixed 1.85% Receive floating EURIBOR 6 Month 13/06/2046 EUR 3,300,000 (174) -0.02 Interest Rate Swap Mongan Stanley & Co., International plc Pay floating EURIBOR 6 month Receive fixed 0.60% 27/04/2026 EUR 52,500,000 (1,703) -0.21 Interest Rate Swap Mongan Stanley & Co., International plc Pay floating EURIBOR 6 month Receive fixed 1.17% 18/05/2026 EUR 5,000,000 41 0.01 Interest Rate Swap UBS AG Pay fixed 1.69% Receive floating EURIBOR 6 Month 09/06/2046 EUR 3,245,614 (71) -0.01 Interest Rate Swap UBS AG Pay floating EURIBOR 6 month Receive fixed 1.40% 27/06/2026 EUR 10,702,041 246 0.03 Interest RateSwap Deutsche Bank AG Pay floating TIIE 4 weeks Receive fixed 5.79% 22/01/2021 MXN 750,000,000 (319) -0.04 Interest RateSwap Deutsche Bank AG Pay floating TIIE 4 weeks Receive fixed 6.44% 11/02/2021 MXN 171,000,000 32 – Interest RateSwap Deutsche Bank AG Pay floating TIIE 4 weeks Receive fixed 6.65% 02/12/2020 MXN 590,722,222 309 0.04 Interest RateSwap Deutsche Bank AG Pay floating TIIE 4 weeks Receive fixed 6.80% 10/08/2021 MXN 209,000,000 44 0.01 Swaps total 9,374 1.14 Swaptions 1.25% (1.12%) Interest Rate Swap Mongan Stanley & Co., International plc Pay fixed 3.60% Receive floating LIBOR 6 month, Call, 3.6, 29/01/2045 GBP 27,800,000 1,044 0.13 Interest Rate Swap Mongan Stanley & Co., International plc Pay fixed 3.60% Receive floating LIBOR 6 month, Call, 3.6, 25/02/2045 GBP 26,000,000 975 0.12 Interest Rate Swap J.P. Morgan Securities plc Pay fixed 3.60% Receive floating LIBOR 6 month, Call, 3.6, 29/04/2045 GBP 8,900,000 344 0.04 Interest Rate Swap J.P. Morgan Securities plc Pay fixed 3.60% Receive floating LIBOR 6 month, Call, 3.6, 22/05/2045 GBP 6,460,000 241 0.03 Interest Rate Swap HSBC Holdings plc Pay fixed 3.60% Receive floating LIBOR 6 month, Call, 3.6, 01/07/2045 GBP 3,700,000 138 0.02 Interest Rate Swap HSBC Holdings plc Pay fixed 3.60% Receive floating LIBOR 6 month, Call, 3.6, 19/08/2045 GBP 6,300,000 234 0.03 Interest Rate Swap Citigroup Global Markets Ltd. Pay fixed 3.60% Citigroup Global Markets Ltd. Receive floating LIBOR 6 month, Call, 3.6, 07/10/2045 GBP 2,000,000 74 0.01 Interest Rate Swap Goldman Sachs, Inc. Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 13/03/2045 USD 67,100,000 2,053 0.25 Interest Rate Swap J.P. Morgan Securities plc Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 11/04/2045 USD 3,660,000 112 0.01 Interest Rate Swap Goldman Sachs, Inc. Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 23/04/2045 USD 81,000,000 2,471 0.30 Interest Rate Swap J.P. Morgan Securities plc Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 02/05/2045 USD 39,000,000 1,189 0.14 Interest Rate Swap J.P. Morgan Securities plc Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 24/05/2045 USD 22,630,000 689 0.08 Interest Rate Swap Goldman Sachs, Inc. Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 21/06/2045 USD 11,000,000 334 0.04 Interest Rate Swap HSBC Holdings plc Pay fixed 3.85% Receive floating LIBOR 3 month, Call, 3.85, 16/08/2045 USD 12,100,000 367 0.04 Interest Rate Swap Mongan Stanley & Co., International plc Pay fixed 3.85% Receive floating LIBOR 6 month, Call, 3.85, 27/03/2045 USD 1,500,000 48 0.01 Swaptions total 10,313 1.25 Options 1.79% (0.91%) EURO STOXX 50 Index, Call, 4,000, 20/12/2019 EUR 2,380 3,208 0.39 EURO STOXX 50 Index, Call, 4,400, 20/12/2019 EUR 3,129 2,839 0.35 Foreign Exchange EUR/CNH, Call, 6.766, 22/08/2016 USD 310,950,000 2,309 0.28 Foreign Exchange EUR/CNH, Call, 7.307, 22/08/2016 USD (310,950,000) (1,166) (0.14) Foreign Exchange EUR/USD, Call, 1.3, 06/02/2020 EUR (13,330,000) (521) (0.06) Foreign Exchange EUR/USD, Call, 1.3, 06/02/2020 EUR (15,000,000) (587) (0.07) Foreign Exchange EUR/USD, Call, 1.2, 16/03/2020 EUR (3,540,000) (236) (0.03) Foreign Exchange EUR/USD, Call, 1.2, 10/04/2020 EUR (2,250,000) (153) (0.02) Foreign Exchange EUR/USD, Call, 1.2, 29/04/2020 EUR (9,700,000) (666) (0.08) Foreign Exchange EUR/USD, Call, 1.2, 21/05/2020 EUR (4,630,000) (322) (0.04) Foreign Exchange EUR/USD, Call, 1.2, 30/06/2020 EUR (2,600,000) (185) (0.02)

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 321 Aviva Investors Multi-Strategy Target Return Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Market Value Investment Currency Holding £000 % of Net Assets Options 1.79% (0.91%) (continued) Foreign Exchange EUR/USD, Call, 1.2, 30/06/2020 EUR (2,700,000) (192) (0.02) Foreign Exchange USD/EUR, Put, 1.17, 06/02/2020 EUR 22,500,000 1,131 0.14 Foreign Exchange USD/EUR, Put, 1.17, 06/02/2020 EUR 20,000,000 1,005 0.12 Foreign Exchange USD/EUR, Put, 1.07, 16/03/2020 EUR 5,310,000 152 0.02 Foreign Exchange USD/EUR, Put, 1.07, 10/04/2020 EUR 3,370,000 97 0.01 Foreign Exchange USD/EUR, Put, 1.07, 29/04/2020 EUR 14,500,000 420 0.05 Foreign Exchange USD/EUR, Put, 1.07, 21/05/2020 EUR 6,990,000 204 0.02 Foreign Exchange USD/EUR, Put, 1.07, 30/06/2020 EUR 4,200,000 124 0.02 Foreign Exchange USD/EUR, Put, 1.07, 30/06/2020 EUR 3,800,000 112 0.01 Foreign Exchange USD/INR, Call, 74, 18/05/2016 USD 58,500,000 232 0.03 Foreign Exchange USD/INR, Call, 74, 18/05/2016 USD 5,800,000 23 – Foreign Exchange USD/INR, Call, 64, 18/05/2016 USD (5,800,000) (196) (0.02) Foreign Exchange USD/INR, Call, 64, 18/05/2016 USD (58,500,000) (1,982) (0.24) Foreign Exchange USD/INR, Call, 74, 21/06/2016 USD 3,550,000 19 – Foreign Exchange USD/INR, Call, 64, 21/06/2016 USD (3,550,000) (133) (0.02) Foreign Exchange USD/INR, Call, 74, 04/08/2016 USD 3,000,000 22 – Foreign Exchange USD/INR, Call, 64, 04/08/2016 USD (3,000,000) (127) (0.02) Foreign Exchange USD/INR, Call, 74, 19/08/2016 USD 3,750,000 30 – Foreign Exchange USD/INR, Call, 64, 19/08/2016 USD (3,750,000) (165) (0.02) Foreign Exchange USD/JPY, Call, 108.18, 02/10/2020 USD 122,500,000 6,961 0.85 iShares FTSE® A50 China Index, Call, 17.5, 30/12/2015 HKD 644,983,938 40 0.01 iShares FTSE® A50 China Index, Call, 17.5, 30/12/2015 HKD 3,585 15 – iShares FTSE® A50 China Index, Call, 20, 30/12/2015 HKD (3,585) (15) – iShares FTSE® A50 China Index, Call, 20, 30/12/2015 HKD (644,983,938) (17) – Nikkei 225, Call, 24,000, 09/12/2016 JPY 818 1,027 0.12 Nikkei 225 (SMX), Call, 27,000, 09/12/2016 JPY 4,578 1,187 0.14 XLY, Call, 86, 15/01/2016 USD 41,712 283 0.03 Options total 14,777 1.79 Forward Currency Contracts (0.40)% (0.49%) Buy EUR 7,000,000 sell GBP 5,198,921 dated 18/12/2015 (37) – Buy GBP 8,173,893 sell EUR 11,000,000 dated 18/12/2015 (173) (0.01) Buy GBP 7,886,809 sell USD 12,000,000 dated 18/12/2015 261 0.02 Buy JPY 2,857,782,454 sell USD 23,794,034 dated 18/12/2015 217 0.03 Buy USD 62,238,000 sell AUD 87,744,799 dated 18/12/2015 (1,142) (0.14) Buy USD 23,794,034 sell JPY 2,858,658,074 dated 18/12/2015 (222) (0.03) Buy USD 62,238,738 sell MXN 1,050,428,077 dated 18/12/2015 (902) (0.11) Buy USD 61,500,000 sell SGD 87,757,425 dated 18/12/2015 (1,326) (0.16) Forward Currency Contracts total (3,324) (0.40) Futures (0.48)% ((1.38)%) DAX Index 18/12/2015 EUR 138 (174) (0.02) EURO STOXX 50 Index 18/12/2015 EUR 1,794 408 0.05 Euro-BTP 08/12/2015 EUR (1,014) (3,020) (0.37) FTSE® 100 Index 18/12/2015 GBP (675) (1,852) (0.22) Korea 10 Year Bond 15/12/2015 KRW 715 774 0.09 Nasdaq 100 Emini Index 18/12/2015 USD 288 621 0.08 Russell 2000 Mini Index 18/12/2015 USD (991) (1,420) (0.17) S&P 500 Emini Index 18/12/2015 USD 1,262 2,422 0.29 STOXX 600 Technology Index 18/12/2015 EUR (1,382) (714) (0.09) US 2 Year Note 31/12/2015 USD (3,088) (968) (0.12) Futures total (3,923) (0.48)

Investment assets 748,326 90.89 Net other assets 74,996 9.11 Net assets 823,322 100.00

All holdings are ordinary shares or stock units and admitted to official stock exchange unless otherwise stated. The comparative percentage figures in brackets are as at 15 October 2014. ◊ Investments managed and advised by a related party of the Fund.

322 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

PORTFOLIO STATEMENT (CONTINUED) As at 15 October 2015

Counterparty Exposure

Forward currency Counterparty Swaps Options contracts Futures Total 15.10.15 £000 £000 £000 £000 £000

BNP Paribas 56,876 336,061 (1,540) – 391,397

Citibank 262,591 7,200 (1,031) – 268,760

Deutsche Bank 67,723 – – – 67,723

Goldman Sachs 27,098 401,195 63 – 428,356

HSBC 8,827 66,130 (1) – 74,956

JPMorgan 176,394 219,288 93 (480,634) (84,859)

Merrill Lynch 49,392 – – – 49,392

Morgan Stanley 134,411 197,415 – – 331,826

Nomura – 8,574,909 (817) – 8,574,092

Société Générale 1,001,967 (133,898) (91) – 867,978

Standard Chartered Bank – 43,657 – – 43,657

UBS 10,271 20,251 – 33,465 63,987

Total 1,795,550 9,732,208 (3,324) (447,169) 11,077,265

Forward currency Counterparty Swaps Options contracts Futures Total 15.10.14 £000 £000 £000 £000 £000

Barclays 32,193 – – – 32,193

BNP Paribas 4,891 533 – – 5,424

Citibank 20,240 – – – 20,240

Deutsche Bank – 274 125 – 399

Goldman Sachs – (104) 87 – (17)

HSBC 3,444 – (10) – 3,434

JPMorgan 24,963 778 – (10,757) 14,984

Nomura – – 379 – 379

Société Générale – – (23) – (23)

UBS – 879 – 19,767 20,646

Total 85,731 2,360 558 9,010 97,659

Collateral There is £48,161,000 (2014: £3,356,000) of collateral held on the above derivatives in the form of cash.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 323 Aviva Investors Multi-Strategy Target Return Fund

STATEMENT OF TOTAL RETURN For the year ended 15 October 2015

Year ended Period from 15.10.15 01.07.14 to 15.10.14 Notes £000 £000 £000 £000

Income

Net capital gains 2 11,841 243

Revenue 3 2,763 114

Expenses 4 (1,327) (64)

Finance costs: Interest 6 (2) –

Net revenue before taxation 1,434 50

Taxation 5 (268) (10)

Net revenue after taxation 1,166 40

Total return before distributions 13,007 283

Finance costs: Distributions 6 (1,257) (44)

Change in net assets attributable to shareholders from investment activities 11,750 239

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS For the year ended 15 October 2015

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000 £000 £000

Opening net assets attributable to shareholders 116,778 –

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 723,954 116,479

Amounts payable on cancellation of shares (32,276) –

691,678 116,479

Dilution levy 73 6

Change in net assets attributable to shareholders from investment activities (see above) 11,750 239

Retained distribution on accumulation shares 3,043 54

Closing net assets attributable to shareholders 823,322 116,778

324 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

BALANCE SHEET As at 15 October 2015

As at As at 15.10.15 15.10.14 Notes £000 £000 £000 £000

ASSETS

Investment assets 780,351 79,470

Debtors 7 7,674 570

Cash and bank balances 8 67,932 40,743

Total other assets 75,606 41,313

Total assets 855,957 120,783

LIABILITIES

Investment liabilities (32,025) (3,941)

Bank overdrafts – (6)

Creditors 9 (610) (58)

Total other liabilities (610) (64)

Total liabilities (32,635) (4,005)

Net assets attributable to shareholders 823,322 116,778

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 325 Aviva Investors Multi-Strategy Target Return Fund

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policies Please see pages 7 to 9 for accounting basis and policies.

2 Net capital gains

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000

Net capital gains on investments during the year comprise:

Currency gains 337 28

Derivative contracts gains/(losses) 7,092 (1,045)

Expenses relating to the purchase and sale of investments (2) (4)

Forward currency contracts gains 6,608 964

Non-derivative securities (losses)/gains (2,194) 300

Net capital gains 11,841 243

3 Revenue

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000

Bank and deposit interest 99 17

Interest on debt securities 3,381 99

Interest on derivatives (835) (2)

Overseas dividends 103 –

Revenue from offshore funds 15 –

Total revenue 2,763 114

4 Expenses

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000

Payable to the Authorised Corporate Director (“ACD”), associates of the ACD or agents of either of them:

ACD's periodic charge 1,105 34

Registration fees 97 1

1,202 35

Payable to the Depositary, associates of the Depositary or agents of either of them:

Depositary’s fee 117 8

Safe custody fee 15 4

132 12

Other expenses:

Audit fee* 13 13

Broker fees 1 –

Printing & postage expenses 5 2

Professional fees – 1

Statement fees 5 2

24 18

Total expenses 1,358 65

Less those expenses rebated by the ACD (31) (1)

Net expenses 1,327 64

* The audit fee was £10,816 (2014: £10,763) net of VAT.

326 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Taxation a Analysis of tax charge

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000 Corporation tax 263 10 Overseas tax suffered 5 – Total current tax for the year (see note 5.b) 268 10 b Factors affecting current tax charge The tax assessed for the year is lower than (2014: equal to) the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%).

The differences are explained below:

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000 Net revenue before taxation 1,434 50 Corporation tax at 20% 287 10 Effects of: Overseas dividends not subject to corporation tax (24) – Overseas tax suffered 5 – (19) – Current tax charge (see note 5.a) 268 10 Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. c Deferred tax There was no provision for deferred tax at the balance sheet date (2014: £nil).

6 Finance costs Distributions and interest

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000 The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: Distributions for the year/period ended 15 October 3,043 54 3,043 54 Add: Revenue deducted on cancellation of shares 23 – Deduct: Revenue received on issue of shares (1,809) (10) Finance costs: Distributions 1,257 44 Finance costs: Interest on bank overdrafts 2 – Total finance costs 1,259 44 Reconciliations of distributions for the year to net revenue after taxation Distributions for the year 1,257 44 Equalisation on conversions (12) – Revenue deficit transferred to capital (79) (4) Net revenue after taxation 1,166 40 Details of the distributions per share are set out in the distribution table on page 332.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 327 Aviva Investors Multi-Strategy Target Return Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7 Debtors

As at As at 15.10.15 15.10.14 £000 £000 Accrued revenue 910 70 Amounts receivable on issue of shares 6,764 500 Total debtors 7,674 570

8 Cash and bank balances

As at As at 15.10.15 15.10.14 £000 £000 Amounts held at futures clearing house and brokers 30,570 4,686 Cash and bank balances 37,362 7,357 Deposits – 28,700 Total cash and bank balances 67,932 40,743

9 Creditors

As at As at 15.10.15 15.10.14 £000 £000 Accrued expenses 347 48 Corporation tax payable 263 10 Total creditors 610 58

10 Contingent liabilities and commitments There were no contingent liabilities or commitments at the year end (2014: £nil).

11 Related party transactions ACD periodic charges and registration fees paid to Aviva Investors UK Fund Services Limited (“the ACD”) are shown in note 4 and details of shares issued and cancelled by the Manager are shown in the statement of change in net assets attributable to shareholders. The balance due to the ACD at the year end in respect of ACD periodic charges was £273,000 (2014: £18,000) and registration fees was £26,000 (2014: £3,000). Any balance due from the ACD in respect of issues is shown in note 7. Any balance due to the ACD in respect of cancellations is shown in note 9. Distributions payable to the ACD and related parties of the ACD during the year amounted to £3,043,000 (2014: £54,000). The amount outstanding at the year end was £3,043,000 (2014: £54,000). Related parties of the ACD are deemed to be all companies under the control of Aviva Plc. This will include companies which hold shares in the Fund on behalf of other external investors. All investments managed and advised by Aviva Investors Global Services Limited or associated with the Aviva Group are marked on the portfolio statement. Holdings at the year end and movements during the year are as follows:

Holdings at Holdings at 15.10.15 Movement 15.10.14 (shares) (shares) (shares) ACD and related parties (share class SC 2 shares) 23,939,771 20,860,918 3,078,853 ACD and related parties (share class SC 3 shares) 567,723,812 459,599,961 108,123,851 ACD and related parties (share class SC 5 shares) 11,774,649 11,347,187 427,462 The ACD and related parties of the ACD are ineligible to vote at any general meeting.

328 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

12 Shareholder funds The Fund currently has five share classes: Class 6 (Retail), Classes 2 and 5 (Institutional) and Classes 3 and 8 (Associated undertakings of Aviva Plc). The annual management charges are as follows: Class 2: 0.75% Class 3: 0.10% Class 5: 0.70% Class 6: 1.00% Class 8: 0.56% The net asset value per share class, the net asset value per share and the number of shares in the class are shown on page 317. The distributions per share class are given in the distribution table on page 332. All the share classes have the same rights on winding up.

13 Derivatives and other financial instruments The policies applied in the management of financial instruments are set out on pages 7 to 9.

Fair value of financial assets and financial liabilities There is no significant difference between the carrying values of the financial assets and liabilities and their fair values (2014: nil).

Currency exposures At the year end date, 0.67% (2014: 11.03%) of the net assets of the Fund were denominated in currencies other than sterling with the effect that the balance sheet and total return can be affected by currency movements.

Net foreign currency assets

Monetary exposure Non monetary exposure Total £000 £000 £000

Currency 15.10.15 15.10.14 15.10.15 15.10.14 15.10.15 15.10.14 Australian Dollar – – (38,077) 384 (38,077) 384 Brazilian Real – – – 90 – 90 Canadian Dollar – – – (11,470) – (11,470) Euro 21,647 2,609 (50,465) (8,015) (28,818) (5,406) Hong Kong Dollar 268 – 23 – 291 – Japanese Yen – – 2,209 (1,792) 2,209 (1,792) Korean Won 4,254 328 (862) 182 3,392 510 Mexican Peso – – (40,611) – (40,611) – Singapore Dollar – – (41,118) – (41,118) – US Dollar 9,483 1,245 127,758 29,315 137,241 30,560

Global exposure The ACD must ensure that its global exposure relating to the derivative and forward transactions held in the sub-fund does not exceed the net value of the Scheme Property. The global exposure must be calculated on at least a daily basis. Exposure must be calculated taking into account the current value of the underlying assets, the counterparty risk, future market movements and the time available to liquidate the position. For the Aviva Investors Multi-Strategy Target Return Fund, and ACD uses absolute VAR (Value at Risk). Value at Risk means a measure of the potential loss due to the Company due to market risk. More particularly, Value at Risk measures the potential loss at a given confidence level (probability) over a specific time period under normal market conditions. The ACD has selected these methods as being appropriate, taking into account the investment strategy of the Fund, the types and complexities of the Derivatives and forward transactions used and the proportion of the Scheme Property comprising Derivatives and forward transactions. Specific details of the measures are as follows: Calculation Model: Monte Carlo Asymmetric Stable with skewed T-Copula Confident Level: 99% Holding Period: 1 month Data History: 500 days of daily data Lowest: -3.45% Highest: -1.24% Mean Average: -2.29%

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 329 Aviva Investors Multi-Strategy Target Return Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Interest rate risk profile of financial assets and financial liabilities The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2015 was:

Currency Floating Rate Fixed Rate None Total 15.10.15 £000 £000 £000 £000 Financial Assets Sterling 644,568 – 194,947 839,515 Australian Dollar – – 3,337 3,337 Euro 21,421 53,101 28,365 102,887 Hong Kong Dollar 268 – 55 323 Japanese Yen – – 17,826 17,826 Korean Won 4,254 – 774 5,028 Mexican Peso – – 883 883 US Dollar 9,392 21,646 174,745 205,783 Financial Liabilities Sterling – – (10,704) (10,704) Australian Dollar – – (41,412) (41,412) Euro – – (131,705) (131,705) Hong Kong Dollar – – (32) (32) Japanese Yen – – (15,617) (15,617) Korean Won – – (1,636) (1,636) Mexican Peso – – (41,494) (41,494) Singapore Dollar – – (41,118) (41,118) US Dollar – – (68,542) (68,542) Total 679,903 74,747 68,672 823,322

The interest rate profile of the Fund’s financial assets and liabilities at 15 October 2014 was:

Currency Floating Rate Fixed Rate None Total 15.10.14 £000 £000 £000 £000 Financial Assets Sterling 100,055 – 13,371 113,426 Australian Dollar – – 384 384 Brazilian Real – 6,169 – 6,169 Euro 2,609 – 1,229 3,838 Japanese Yen – – 638 638 Korean Won 328 – 182 510 US Dollar 1,252 2,339 35,927 39,518 Financial Liabilities Sterling – – (9,524) (9,524) Brazilian Real – – (6,079) (6,079) Canadian Dollar – – (11,470) (11,470) Euro – – (9,244) (9,244) Japanese Yen – – (2,430) (2,430) US Dollar (6) – (8,952) (8,958) Total 104,238 8,508 4,032 116,778

The floating rate on bank balances is linked to the Depositary’s base rate. The floating rate on deposits is linked to LIBOR.

330 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Aviva Investors Multi-Strategy Target Return Fund

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Fixed rate financial assets weighted Fixed rate financial assets weighted average interest rate average period for which rate is fixed % Years

15.10.15 15.10.14 15.10.15 15.10.14 Euro 2.66 – 25 – Brazilian Real – – – 4 US Dollar 3.43 3.42 40 40 The portfolio includes bonds which have no fixed redemption dates. In order to calculate the weighted average period for which the rate is fixed, it has been assumed that these bonds will be held for at least as long as the longest-dated bond held in the portfolio.

14 Portfolio transaction costs

Year ended Period from 15.10.15 01.07.14 to 15.10.14 £000 £000 £000 £000 Analysis of total purchase costs Purchases in year before transaction costs 1,697,344 124,015 Commissions 7 – Total purchase costs 7 – Gross purchases total 1,697,351 124,015 Analysis of total sale costs Gross sales before transaction costs 1,047,734 50,529 Total sales net of transaction costs 1,047,734 50,529

15 Post balance sheet events There are no post balance sheet events which require adjustment or disclosure at the year end (2014: nil).

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 331 Aviva Investors Multi-Strategy Target Return Fund

DISTRIBUTION TABLE

Final distribution payable in pence per share for the year ended 15 October 2015

Final distribution Final distribution Net payabe paid Income shares revenue Equalisation 15 December 2015 15 December 2014 Share Class 2 Group 1 0.0000 – 0.0000 0.0000 Group 2 0.0000 0.0000 0.0000 0.0000 Share Class 3 Group 1 0.5360 – 0.5360 0.0495 Group 2 0.1785 0.3575 0.5360 0.0495 Share Class 5 Group 1 0.0000 – 0.0000 0.0000 Group 2 0.0000 0.0000 0.0000 0.0000 Share Class 6 Group 1 0.0000 – 0.0000 0.0000 Group 2 0.0000 0.0000 0.0000 0.0000 Share Class 8 Group 1 0.5243 – 0.5243 0.0000 Group 2 0.5243 0.0000 0.5243 0.0000

Final distribution Group 1 shares are those shares purchased at or before 12:00 noon on 15 October 2014. Group 2 shares are those shares purchased after 12:00 noon on 15 October 2014.

Equalisation Equalisation applies only to Group 2 shares, in other words shares purchased during the relevant period. It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to the holders of these shares as return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

332 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Statement of the Authorised Corporate Director’s Responsibilities and Authorised Corporate Director’s Statement

STATEMENT OF THE AUTHORISED CORPORATE DIRECTOR’S RESPONSIBILITIES

The Collective Investment Schemes Sourcebook of the Financial The ACD is required to keep proper accounting records and to Conduct Authority requires the Authorised Corporate Director manage the Company in accordance with the Regulations and (ACD) to prepare financial statements for each accounting period the Instrument of Incorporation. which give a true and fair view of the financial position of the The ACD is responsible for taking reasonable steps for the Company at the period end and of the net income and net gains prevention and detection of fraud and other irregularities. or losses on the scheme property of the Company for the period then ended. In preparing the financial statements the ACD is required to: – follow applicable accounting standards; – make judgements and estimates that are reasonable and prudent; – select suitable accounting policies and then apply them consistently; – prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in operation for the foreseeable future; and – comply with the Instrument of Incorporation and the Statement of Recommended Practice for Authorised Funds.

AUTHORISED CORPORATE DIRECTOR’S STATEMENT

We hereby approve the Report and Financial Statements of Aviva Investors Investment Funds ICVC for the year ended 15 October 2015 on behalf of Aviva Investors UK Fund Services Limited in accordance with the requirements of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority.

I Buckle Director

S Ebensten Director 4 February 2016

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 333 Statement of the Depositary’s Responsibilities and Depositary’s Report to the Shareholders

STATEMENT OF THE DEPOSITARY’S RESPONSIBILITIES

The Depositary is responsible for the safe keeping of all the property of the company (other than tangible moveable property) which is entrusted to it and for the collection of income that arises from that property. It is the duty of the Depositary to take reasonable care to ensure that the Company is managed by the Authorised Corporate Director in accordance with the Financial Conduct Authority’s Collective Investment Scheme sourcebook (“the COLL Sourcebook”), the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (“the OEIC Regulations”) and the Company’s Instrument of Incorporation and Prospectus, as appropriate, in relation to the pricing of, and dealings in, shares in the Company; the application of income of the Company; and the investment and borrowing powers of the Company.

DEPOSITARY’S REPORT TO THE SHAREHOLDERS

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Company, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Authorised Corporate Director: (i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s shares and the application of the Company’s income in accordance with the COLL Sourcebook, as appropriate, and, where applicable, the OEIC Regulations and the Company’s Instrument of Incorporation and Prospectus; and (ii) has observed the investment and borrowing powers and restrictions applicable to the Company. Citibank Europe plc, UK Branch London 4 February 2016

334 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com Independent Auditors’ Report to the Members of Aviva Investors investment Funds ICVC

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF AVIVA INVESTORS INVESTMENT FUNDS ICVC

REPORT ON THE FINANCIAL STATEMENTS WHAT AN AUDIT OF FINANCIAL STATEMENTS INVOLVES We conducted our audit in accordance with International OUR OPINION Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). In our opinion the financial statements, defined below: An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give – give a true and fair view of the financial position of the reasonable assurance that the financial statements are free from Company and each of the sub-funds as at 15 October 2015 material misstatement, whether caused by fraud or error. This and of the net revenue and the net capital gains/(losses) of the includes an assessment of: scheme property of the Company and each of the sub-funds for the year then ended; and – whether the accounting policies are appropriate to the Company’s and each of the Company’s sub-funds circumstances – have been properly prepared in accordance with United and have been consistently applied and adequately disclosed; Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practice for Authorised Funds, the – the reasonableness of significant accounting estimates made by Collective Investment Schemes sourcebook and the Instrument the Authorised Corporate Director; and of Incorporation. – the overall presentation of the financial statements. This opinion is to be read in the context of what we say in the In addition, we read all the financial and non-financial remainder of this report. information in the Annual Report and Financial Statements (the “Annual Report”) to identify material inconsistencies with the WHAT WE HAVE AUDITED audited financial statements and to identify any information The financial statements of Aviva Investors Investment Funds that is apparently materially incorrect based on, or materially ICVC (the “Company”), which are prepared by Aviva Investors inconsistent with, the knowledge acquired by us in the course UK Fund Services Limited (the “Authorised Corporate Director”), of performing the audit. If we become aware of any apparent comprise: material misstatements or inconsistencies we consider the – the aggregated balance sheet of the Company as at 15 October implications for our report. 2015; – the aggregated statement of total return of the Company for the year then ended; OPINIONS ON MATTERS PRESCRIBED BY THE – the aggregated statement of change in net assets attributable COLLECTIVE INVESTMENT SCHEMES SOURCEBOOK to shareholders of the Company for the year then ended; In our opinion: – the balance sheets as at 15 October 2015 together with the – we have obtained all the information and explanations we statements of total return and statements of changes in net consider necessary for the purposes of the audit; and assets attributable to shareholders for each of the Company’s sub-funds; – the information given in the Authorised Corporate Director’s Report for the financial year for which the financial statements – the notes to the Company’s financial statements and each are prepared is consistent with the financial statements. of the Company’s sub-funds’, which include a summary of significant accounting policies and other explanatory information; and OTHER MATTERS ON WHICH WE ARE REQUIRED – the distribution tables TO REPORT BY EXCEPTION The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting PROPRIETY OF ACCOUNTING RECORDS AND INFORMATION Standards (United Kingdom Generally Accepted Accounting AND EXPLANATIONS RECEIVED Practice), the Statement of Recommended Practice ‘Financial Under the Collective Investment Schemes sourcebook we are Statements of Authorised Funds’ issued by the Investment required to report to you if, in our opinion: Association (the “Statement of Recommended Practice for Authorised Funds”), the Collective Investment Schemes – proper accounting records have not been kept; or sourcebook and the Instrument of Incorporation. – the financial statements are not in agreement with the In applying the financial reporting framework, the Authorised accounting records and returns. Corporate Director has made a number of subjective judgements, We have no exceptions to report arising from this responsibility. for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF AVIVA INVESTORS INVESTMENT FUNDS ICVC (CONTINUED)

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

OUR RESPONSIBILITIES AND THOSE OF THE AUTHORISED CORPORATE DIRECTOR As explained more fully in the Statement of Authorised Corporate Director’s Responsibilities Statement set out on page 333, the Authorised Corporate Director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook as required by paragraph 67(2) of the Open-Ended Investment Companies Regulations 2001 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 4 February 2016

(a) The maintenance and integrity of the Aviva Investors website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. (b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

336 Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 | avivainvestors.com General Information

GENERAL INFORMATION

Investments in Aviva Investors Investment Funds ICVC are intended to be medium to long term investments and should not be considered as a short term investment. Past performance is not a guide to the future. The value of an investment in the funds and the revenue from it may go down as well as up, and you may not get back the original amount invested. Where funds are invested abroad, the value of your investment may rise and fall purely on account of movement in exchange rates. Please refer to the Prospectus (which is available on the internet at www.avivainvestors.com or from the ACD on request) for a full description of the risks involved when investing in the sub-funds. Any future returns and opinions expressed are those of the Investment Manager and should not be relied upon as indicating any guarantee of return from investment in the funds. The performance figure given for each fund (source: Aviva Investors) is based on midday values (with the exception of Aviva Investors UK Index Tracking Fund which is based on 5 p.m. values). The performance figure given for each comparative index (source: Lipper) is based on close of business values. Hence any over/under performance may be adversely or favourably affected by this time difference. The information contained within this document should not be construed as a recommendation to purchase or sell stocks. Publication of Prices Information on the prices of Shares will be available by calling 0800 051 2003 or on the internet at www.avivainvestors.com. Calls may be recorded for training or monitoring purposes. Calls are free from landlines and mobiles.

avivainvestors.com | Aviva Investors Investment Funds ICVC Annual Report and Financial Statements for the year ended 15 October 2015 337 Aviva Investors UK Fund Services Limited. Registered in England No. 1973412. Authorised and regulated by the Financial Conduct Authority. FCA Registered No. 119310. Registered address: No. 1 Poultry, London EC2R 8EJ. An Aviva company.