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Important update if you have clients who have recently invested in cash or similar funds

Over the last year or so, the global economy has experienced a great deal of turmoil. One of the key changes has been the severe reduction in bank interest rates. This means that the returns for certain funds (for example, deposit funds) are likely to be lower than the projected rates in illustrations.

Following new information received from independent research carried out by Barrie & Hibbert we are now able to revise our position on illustration projection rates. We have reviewed our list of funds where standard projection rates may overstate the potential return to include risk rated 1 funds only (previously, we included risk rated 2 funds).

We’re currently looking into ways we can best reflect the recent low rates of return in the illustrations we provide.

However, in the short term, we’re providing you with a leaflet to give to new customers warning them that for certain funds, the projection rates in their illustrations are higher than the returns they are likely to receive in the current economic climate. Please ensure you include this flyer with all illustrations.

From the week commencing 16^th November 2009 we will be writing to customers who have invested in any of the affected funds since 1st September 2009. This follows on from the mailing to customers who invested from 1^st December 2008 to 31^st August 2009.

If you have any questions about this, please speak to your Aviva Consultant

The affected funds are as follows:

New Contract

Aviva Deposit

Existing Contract

Aviva AM Deposit (NU) - Life

Aviva Building Society (CU) - Pensions

Aviva Building Society (GA) Series 1 – Pensions

Aviva Building Society S9 - Pensions

Aviva Cash (CU)-Life

Aviva Cash Deposit (GA)-Life                              

Aviva Cash Deposit (GA) Series 1 – Pensions

Aviva Cash Deposit (GA) Series 2 - Pensions      

Aviva Deposit (NU)-Life                          

Aviva Deposit (NU) – Pensions

Aviva Deposit (NU) Series 3 - Pensions               

Aviva Deposit (PM) - Pensions                           

Aviva MF Deposit (NU) - Life

Aviva RP Deposit (NU) – Pensions

Aviva Secure Growth (CGU) Series 2 - Life          

Aviva Secure Growth (CGU) - Life                       

Aviva Secure Growth (CGU) – Pensions

Aviva Secure Growth (CU) – Pensions

Aviva ULP Deposit (NU) – Pensions

Aviva YP Secure Growth (CGU) – Pensions