A distribution rate is declared on 30 May and 30 November each year. The distribution rates are as follows:

*Distributions are payments made from the fund twice yearly. They are paid out to investors if they elected to take 'natural' income from the fund and so hold 'distributor units' in this fund. They are based on the income generated by the underlying assets such as dividends from equities, interest from corporate bonds and rent from property. Generally not all 'natural income' is distributed at each distribution date in order to help achieve the expectation to distribute income at least in line with inflation for the first five years (until mid 2008). This income is not guaranteed, may go down as well as up and past performance is not a guide to the future. Please see your original Key Features for more details.

How to calculate income
The number of units held in this fund will be shown on the investor's Policy Schedule. To calculate the amount of income due on a given distribution date, simply multiply the number of units held by the 'distribution pence per unit' on the given date. For example, an investor may hold 20,000 distributor units in the Distribution (Rising Income) Fund. On 30/11/04 a distribution of 1.79p per unit will give - 20,000 x 0.0179p = £358.00 which will be used to provide a natural income.