Aviva Alternative Funds – Alpha Optimum ("Alpha Optimum") is the first sub-fund within the Aviva Alternative Funds umbrella structure.

Alpha Optimum is a fund of hedge funds aiming to produce returns that are independent of the movements of the equity or fixed income markets.The fund is designed for sophisticated investors who do not require inmediate access to their investment and who fully understand and are willing to assume the risks involved in the Fund's investment strategy. The Managers seek to create a high, risk-adjusted rate of return by assembling a portfolio of investments in the underlying funds qualifying as hedge funds that have a proven history of generating excess returns on a risk-adjusted basis ('Alpha'). The Portfolio Manager will utilise derivative securities, if required, to reduce systematic risk and create a high Alpha, low Beta (relationship to market movements) and low volatility portfolio that has a low correlation to financial market movements. All non-Euro currency exposures will be hedged into Euro.

This is a Fund of Hedge Funds designed to produce returns that are independent of the movements of the Equity or Fixed Income market.

Launched on 30 June 2003

A SICAV fund domiciled in Luxembourg

2 Share Classes

• I Class – only available to institutional investors
• P Class – available to institutional investors and non-institutional investors – no eligibility requirements except for the minimum investments and holding requirements stated in prospectus.

Key Points

• Target funds are selected for demonstrable repeatable alpha with an understandable edge
• All net market exposure is identified at target fund level and hedged using a derivatives overlay
• Target fund data analysed for low cross-correlation which results in a diversified portfolio – asset allocation is the result of analysis, not the start of it
• Multiple layers of risk control.

Investment Advisor

• Portfolio Manager – Benchmark Plus
• Founded in 2003 Based in Tacoma, USA
• Regulated by US Securities Exchange Commission
• Directors and Staff
• Robert Ferguson,
• Principal Scott Franzblau,
• Principal Neil Chelo, Senior Analyst
• Rex Merchant, CFO
• Jeremy Gollehon, Junior Analyst
• Frank Casey, Director of Marketing

Performance

• All performance figures, and general information on the fund which is updated monthly can be found on the factsheets which are updated monthly and are available on the Aviva Funds Choice webpage as a link.

This is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. Information regarding the scheme is therefore intended only for intermediate customers and those to whom the scheme can be promoted under the Act. As this is an unregulated collective investment scheme all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme will not be available. Information regarding the scheme should not be regarded as constituting an offer to invest.