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For the year ended 30 September 2015

Annual Report and Financial Statements

A V I V A I N V E S T O R SP R O P E R T Y F U N D S I C V C

avivainvestors.com | Aviva Investors Property Funds ICVC Annual Report and Financial Statements for the year ended 30 September 2015

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CONTENTS

Company Information* 2

Report of the Authorised Corporate Director* 3

Aggregated Statement of Total Return 4

Aggregated Statement of Change in Net Assets Attributable to Shareholders 4

Aggregated Balance Sheet 5

Aggregated Cash Flow Statement 6

Notes to the Aggregated Financial Statements 7

Aviva Investors Asia Pacific Property Fund 15

Aviva Investors European Property Fund 37

Statement of the Authorised Corporate Director’s Responsibilities* 58

Authorised Corporate Director’s Statement* 58

Statement of the Depositary’s Responsibilities and Depositary’s Report to the Shareholders 59

Independent Property Valuers’ Reports to the Shareholders 60

Independent Auditors’ Report to the Members of Aviva Investors Property Funds ICVC 61

General Information 63

* These items comprise the Authorised Corporate Director’s Report for the purposes of the rules contained in the Collective Investment Scheme Sourcebook (“the Regulations”).

Aviva Investors Property Funds ICVC Annual Report and Financial Statements for the year ended 30 September 2015 | avivainvestors.com

Company Information

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AUTHORISED CORPORATE DIRECTORAviva Investors UK Fund Services LimitedNo. 1 PoultryLondon, EC2R 8EJ

Aviva Investors UK Fund Services Limited (the ACD) is a wholly owned subsidiary of Aviva Investors Holdings Limited, a company incorporated in the United Kingdom and within the Aviva Group of Companies. The ACD is a member of the Investment Association and is authorised and regulated by the Financial Conduct Authority.

The ACD is authorised as an Alternative Investment Fund Manager (“AIFM”) under the Alternative Investment Fund Managers Directive (“AIFMD”).

DIRECTORST R Orton (resigned 27 February 2015)P Neville (resigned 30 June 2015)I K BuckleE E Potter (resigned 19 October 2015)J MisselbrookD DahanS Ebenston (appointed 17 December 2014)C Abrahams (appointed 1 July 2015, resigned 31 December 2015)

ADMINISTRATOR AND REGISTRARInternational Financial Data Services (UK) LimitedIFDS HouseSt Nicholas LaneBasildonEssex, SS15 5FS

INVESTMENT MANAGERAviva Investors Global Services LimitedNo.1 PoultryLondon, EC2R 8EJ

Aviva Investors Global Services Limited is a member of the Investment Association and is authorised and regulated by the Financial Conduct Authority. The ultimate parent company of Aviva Investors Global Services Limited is Aviva Plc.

The Investment Manager has appointed JPMorgan Asset Management Real Assets (Singapore) Pte. Ltd. to provide investment advisory services in relation to the Aviva Investors Asia Pacific Property Fund:

JPMorgan Asset Management Real Assets (Singapore) Pte. Ltd.186 Robinson Road# 17-01Singapore 068912

DEPOSITARYCitibank Europe plc, UK BranchCitigroup CentreCanada SquareCanary WharfLondon, E14 5LB

The Depositary is authorised by the Central Bank of Ireland as a depositary but in respect of its services as a depositary in Great Britain, the Depositary is authorised and regulated by the Financial Conduct Authority.

On 1 January 2016, the Depositary, Citibank International Limited, was replaced by Citibank Europe plc, UK Branch. All legal obligations, personnel and resources of Citibank International Limited were transferred to Citibank Europe plc, UK Branch. Citibank Europe plc, UK Branch, has the same substance and capability as Citibank International Limited.

INDEPENDENT AUDITORSPricewaterhouseCoopers LLP7 More London RiversideLondon, SE1 2RT

PricewaterhouseCoopers LLP have been reappointed as auditors of the Company.

INDEPENDENT PROPERTY VALUERS (FOR THE AVIVA INVESTORS ASIA PACIFIC PROPERTY FUND ONLY)Jones Lang LaSalle Property Consultants Pte Limited9 Raffles Place#39-00 Republic Plaza Singapore 048619

INDEPENDENT PROPERTY VALUERS (FOR THE AVIVA INVESTORS EUROPEAN PROPERTY FUND ONLY)CBRE LimitedSt Martin’s Court10 Paternoster RowLondon, EC4M 7HP

With effect from 23 December 2015, the independent property valuer for the Aviva Investors Property Fund was changed to CBRE Limited. Prior to this date, the independent property valuer was Jones Lang LaSalle Limited.

COMPANY INFORMATION


Report of the Authorised Corporate Director

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THE COMPANYAviva Investors Property Funds ICVC (“the Company”) is an Open-Ended Investment Company (OEIC) with variable capital incorporated in England and Wales since 2 May 2008. The property of the Company is entrusted to Citibank Europe plc, UK Branch (“the Depositary”). The shareholders are not liable for any debts of the Company.

The object of the Company is to invest the scheme property in transferable securities, money market instruments, units in collective investment schemes, deposits, cash, near cash, derivative instruments and forward transactions, immovables (directly or indirectly) and gold with the aim of spreading investment risk and giving its shareholders the benefit of the results of the management of that property.

The Company has an umbrella structure which means that it may contain more than one sub-fund, each with a different investment objective. There are currently two sub-funds in the Aviva Investors Property Funds ICVC; the Aviva Investors Asia Pacific Property Fund and the Aviva Investors European Property Fund. In the financial statements you will find an investment review for each sub-fund which includes details of the investment objectives.

AUTHORISED STATUSFrom 2 May 2008 the Company was authorised as an Open-Ended Investment Company under Regulation 12 of the Open-Ended Investment Companies Regulations 2001.

THE FINANCIAL STATEMENTSWe are pleased to present the annual financial statements of the Company for the year ended 30 September 2015. The 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-funds has also been included in these financial statements. On the following pages we review the performance of each of those sub-funds during the period. We hope that you find our review useful and informative.

ANNUAL GENERAL MEETINGSThe Company will not be holding any Annual General Meetings.

SIGNIFICANT INFORMATION As advised in a letter to investors dated 20 July 2015, dealing in the Aviva Investors Asia Pacific Property Fund was suspended after the midday valuation on 20 July 2015. The two largest investors in the Fund (representing over 75% of the Fund’s value) advised the ACD that they wished to withdraw their investment in full. This would have required the sale of the majority of properties in the Fund with adverse consequences for

the diversity of investments and economies of scale achievable by the Fund. It was decided that it was in the best interests of all the investors to close the Fund. Following the suspension of dealing and the investor notification, the Fund commenced termination on 21 August 2015. As advised in the investor letter, proceeds will be returned to the investors (or switched into other Aviva Investors funds, depending on investors’ instructions) in stages as properties are sold and cash becomes available. The first redemption payment (or switch) was made to investors on 7 September 2015 and the second redemption payment (or switch) is due to be made in the quarter ending 31 March 2016.

As advised in a letter to investors dated 8 December 2015, dealing in the Aviva Investors European Property Fund was suspended after the midday valuation on 8 December 2015. The Fund has been experiencing challenges over the past few years in relation to net outflows, liquidity, risk and performance. In addition to this, the largest investor in the Fund (representing c71% of the Fund’s value) advised the ACD that they wished to withdraw their investment in full. This would have required the sale of the majority of properties in the Fund with adverse consequences for the diversity of investments and economies of scale achievable by the Fund. It was decided that it was in the best interests of all the investors to close the Fund. Following the suspension of dealing and the investor notification, the Fund will commence termination on 21 January 2016. As advised in the investor letter, proceeds will be returned to the investors (or switched into other Aviva Investors funds, depending on investors’ instructions) in stages as properties are sold and cash becomes available. The first redemption payment (or switch) is due to be made in the quarter ending 31 March 2016.

CHANGES TO FCA RULES ON DELIVERY VERSUS PAYMENT (DVP) EXEMPTION FROM 1 JUNE 2015The FCA’s Client Assets regulations require that we protect money 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 made to the rules we follow to improve the protection given to investors’ money while it is not invested. For money held in 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.

REPORT OF THE AUTHORISED CORPORATE DIRECTOR


Financial Statements

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AGGREGATED STATEMENT OF TOTAL RETURNFor the year ended 30 September 2015

Notes

Year ended30.09.15

£000

Year ended30.09.14

£000

Income

Net capital losses 4 (28,091) (31,470)

Revenue 5 28,999 32,256

Expenses 6 (17,924) (19,157)

Finance costs: Interest 8 (44) (40)

Net revenue before taxation 11,031 13,059

Taxation 7 (1,090) (1,147)

Net revenue after taxation 9,941 11,912

Total return before distributions (18,150) (19,558)

Finance costs: Distributions 8 (12,610) (15,161)

Change in net assets attributable to shareholders from investment activities (30,760) (34,719)

AGGREGATED STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERSFor the year ended 30 September 2015

Year ended30.09.15

£000

Year ended30.09.14

£000

Opening net assets attributable to shareholders 410,379 510,270

Movement due to issue and cancellation of shares:

Amounts receivable on issue of shares 1,417 10,988

Amounts payable on cancellation of shares (33,955) (80,838)

(32,538) (69,850)

Change in net assets attributable to shareholders from investment activities (see above) (30,760) (34,719)

Retained distribution on accumulation shares 4,227 4,678

Closing net assets attributable to shareholders 351,308 410,379



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AGGREGATED BALANCE SHEETAs at 30 September 2015

Notes

As at30.09.15

£000

As at30.09.14

£000

Assets:

Investment assets 306,286 329,174

Debtors 9 9,048 14,224

Cash equivalents 22,072 52,308

Cash and bank balances 44,179 35,636

Total other assets 75,299 102,168

Total assets 381,585 431,342

Liabilities:

Creditors 10 (27,907) (16,902)

Distribution payable on income shares (2,370) (4,061)

Total liabilities (30,277) (20,963)

Net assets attributable to shareholders 351,308 410,379



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AGGREGATED CASH FLOW STATEMENTFor the year ended 30 September 2015

Notes

Year ended30.09.15

£000

Year ended30.09.14

£000

Net cash inflow from operating activities 14 20,174 14,036

Servicing of finance

Distributions paid (7,060) (6,813)

(7,060) (6,813)

Taxation

Taxation paid (1,968) (2,380)

(1,968) (2,380)

Financial investments

Purchases of investments (6,071) (2,846)

Sales of investments 16,740 69,637

Fees paid from capital (2,723) (3,296)

Miscellaneous charges (2) (1)

7,674 63,494

Financing

Amounts received on issue of shares 1,415 10,987

Amounts paid on cancellation of shares (34,041) (78,617)

Exchange rate movement (7,887) (1,461)

(40,513) (69,091)

Decrease in cash in the year 13 (21,693) (754)

Net cash at the start of the year 13 87,944 88,698

Net cash at the end of the year 13 66,251 87,944


Notes to the Aggregated Financial Statements

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NOTES TO THE AGGREGATED FINANCIAL STATEMENTS

1 ACCOUNTING POLICIES

a Basis of accountingThe financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Prospectus, applicable standards in the UK Generally Accepted Accounting Practice and with the Statement of Recommended Practice relating to Authorised Funds issued by the Investment Management Association in October 2010 (SORP 2010).

The Authorised Corporate Director intends to terminate the Asia Pacific Property Fund and European Property Fund within one year of the date of approval of the financial statements and therefore the financial statements of these Funds have been prepared on a basis other than going concern. In applying this basis of preparation, the assets and liabilities of these Funds continue to be stated at their fair values which materially equate to their realisable values. No adjustments were necessary in the Funds’ financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities.

b ConsolidationConsolidated Financial Statements have been prepared in accordance with FRS 2 ‘Accounting for Subsidiary Undertakings’. The Consolidated Statement of Total Return, Consolidated Statement of Change in Net Assets Attributable to Shareholders, Consolidated Portfolio Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement include the financial statements of each sub-fund and its subsidiary undertakings. Intra-group transactions are eliminated fully on consolidation. The consolidated financial statements of each sub-fund are presented as aggregated financial statements of the Company.

c Share classesThe sub-funds have two types of share classes; retail shares (classes A and R) and institutional shares (class I). Each class bears different charges and consequently the level of income allocated to each share class will differ. Share class R consists of income shares only. Share classes A and I consist of both income and accumulation shares. Some shares classes are priced in currencies other than Sterling.

d Recognition of revenueInterest arising on fixed interest stocks is accounted for on an effective yield basis. Any effective yield arising on intra-group balances is eliminated on consolidation. Rental revenue, deposit interest, and other revenue are all accounted for on the accruals basis. Dividends are accounted for when the investment is quoted ex-dividend. Ordinary scrip dividends are treated as revenue and are included in the distribution.

The cost of any up front lease incentives offered is recognised as a reduction in rental income and allocated over the shorter of the lease term or the period until the first rent review date. Any amount reported in the balance sheet as ‘accrued rent receivable’ is also deducted from the fair value of the properties.

Service charge income and expenses are included in rental revenue and other property operating expenses respectively.

e Basis of valuation of investments(a) The property-related assets of the Company have been valued

at bid-market value at midday on the last business day of the accounting year.

(b) Direct properties have been valued at open market value on the last business day of the accounting year by an independent valuer, who holds a recognised and relevant professional qualification and who has recent experience in the location and category of the investment property being valued. Movements in the open market value are recognised in the Statement of Total Return.

f Property purchases and salesProperty purchases and sales are recognised on completion of the purchase or sale.

g Exchange ratesAssets and liabilities held in foreign currencies are translated at the rate ruling at midday on the last business day of the accounting year. Revenue and expenditure items are translated at the rate ruling at the date of the transaction.

h Taxation and deferred taxationProvision for Corporation Tax is based at the current rate, as appropriate, on the excess of taxable revenue over allowable expenses and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred taxation is provided using the liability method on all timing differences expected to be realised by the Company, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in the future against which the deferred tax asset can be offset.

i Cash flow statementIn accordance with the requirements of FRS 1 (Revised) and the IMA SORP 2010, a consolidated cash flow statement and an individual fund cash flow statement has been provided for each of the sub-funds.

j Cash and cash equivalentsCash and cash equivalents include restricted cash which comprises cash deposits which have restrictions governing their use. This includes cash held by the SPVs (Special Purpose Vehicles) which cannot be moved to or used by the sub-fund and also cash for the distribution outlay and capital expenditure.

2 DISTRIBUTION POLICIES

a Distribution policyWhere appropriate any surplus net revenue after taxation arising from the consolidated financial statements of each sub-fund will be paid as a revenue distribution or accumulation to capital. Accordingly at any time there may be excess net revenue in each sub-fund which cannot be distributed.

The sub-funds are more than 60% invested in qualifying investments and have proposed an interest distribution. Full details of the distributions are set out in the distribution tables.



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NOTES TO THE AGGREGATED FINANCIAL STATEMENTS (CONTINUED)

2 DISTRIBUTION POLICIES (CONTINUED)b Treatment of management expensesAll expenses, with the exception of fund set-up costs, the purchase and sale of investments and stamp duty reserve tax, are charged against revenue. For the purposes of the distribution, the ACD’s periodic charge of the Aviva Investors Asia Pacific Property Fund is charged to capital. Where management expenses are borne by capital they are not deducted in determining the distribution. To take account of the relief obtained in respect of charging the ACD’s periodic charge of the Aviva Investors Asia Pacific Property Fund to capital, a notional tax charge is deducted from the revenue account and a corresponding tax credit is added to the capital account.

As the Aviva Investors Asia Pacific Property Fund is being closed, the estimated costs of selling the properties and for closing the sub-fund have been charged to capital and are separately disclosed within Creditors on page 30.

c Treatment of development and acquisition expenses In accordance with Generally Accepted Accounting Practice in the UK, development and acquisition expenses have been treated as costs of purchasing property investments and are accordingly treated as capital.

3 FINANCIAL INSTRUMENTSThe Company’s financial instruments comprise investment properties, securities, bank balances, deposits and debtors and creditors that arise directly from its operations, for example, in respect of sales and purchases awaiting settlement, amounts receivable for issues and payable for cancellations, and debtors for accrued revenue.

The Company’s use of financial instruments satisfies these requirements and no trading in financial instruments is undertaken.

The Company has exposure to a number of different risks to varying degrees. The main risks it faces from its financial instruments and the Manager’s policies for managing these risks are summarised below:

a Foreign currency riskThe sub-funds can be exposed to foreign currency risk as a result of investing in assets denominated in currencies other than Sterling. Where the Manager deems it necessary, this exposure to foreign currency fluctuations is mitigated by the use of forward foreign currency contracts. Numerical disclosures can be found in the notes to the financial statements for each sub-fund.

b Interest rate riskThe value of debt securities may be affected by interest rate movements or the expectation of such movements in the future. Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates. The Manager manages this risk by maintaining a balanced portfolio with due consideration to interest rate risk and redemption profiles. Interest rate risk is also managed by ensuring that deposits mature within a relatively short period. Numerical disclosures can be found in the notes to the financial statements for each sub-fund.

c Market riskThe 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 guidelines and the 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.

There is an additional risk that a property might be sold for a different value to the Independent Valuer’s valuation, due to market conditions being different to the valuer’s assumptions. The Manager ensures that the valuer is independent, holds a recognised and relevant professional qualification and has recent experience in the location and category of the investment property being valued. Further information on the investment portfolios is set out in the investment reports and portfolio statements, of the individual sub-funds.

d Liquidity riskThis 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. In line with standard industry practice for valuing property funds, the sub-funds can switch between a bid price basis and an offer price basis. Where sub-funds are invested in property, investors may not be able to switch or cash in their investment when they want because property in the sub-fund may not always be readily saleable. If this is the case the Manager may suspend dealing in the sub-fund. As noted on page 3, dealing in both funds has been suspended due to the largest investors wishing to redeem their holdings.

e Yields riskIn terms of yields available from investments in direct property, if sufficient revenues are not generated to meet the operating expenses from the properties there is a risk that the Company’s revenue can be affected. The yield from the property may be affected by tenant failure or availability of supply in the sector or microlocation. Similarly should expenditure be required which is nonrecoverable from the tenant due to default or because a property is void, this will also impact on the yield.

Risk to yields as a result of tenant failure or default is managed by targeting a property portfolio broadly spread across sectors and across the relevant specified region of the sub-fund and with a broad tenant profile.

The sub-funds’ current and potential risks are assessed through a quantitative and qualitative process known as IMMMR (Identify Measure Manage Monitor and Report). This process incorporates the following measures: Tracking Error, Volatility, VaR, leverage (Gross/Netted), Geographic Concentration, Covenant Scores (Cove Lite), Duration, Spread Duration, Number of Days to Liquidate (Aviva Proprietary Model), Monthly Trading as % of NAV, % NAV Cash, Curve Positions (Steepener/Flatteneer/Butterfly).

Further information on the investment portfolio is set out in the investment reports and portfolio statements.



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4 Net capital losses

Year ended30.09.15

£000

Year ended30.09.14

£000

The net capital losses on investments during the year comprise:

Currency (losses)/gains on other capital items (623) 1,504

Direct property losses (27,577) (33,542)

Expenses relating to the purchase and sale of investments (4) (1)

Forward currency contracts gains 29 16

Non-derivative securities gains 84 553

Net capital losses* (28,091) (31,470)

* Total realised losses for the year were £15,422,000 (2014: gains £9,320,000) and the movement in unrealised losses was £12,669,000 (2014: losses £40,790,000). Included in the unrealised losses for the year were unrealised gains/(losses) recognised in previous periods.

5 Revenue

Year ended30.09.15

£000

Year ended30.09.14

£000

Bank and deposit interest 90 298

Other income 329 10

Overseas dividends 384 1,034

Rental revenue 28,196 30,914

Total revenue 28,999 32,256



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6 Expenses

Year ended30.09.15

£000

Year ended30.09.14

£000

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

ACD’s periodic charge 4,401 5,419

Registration fees 379 466

4,780 5,885

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

Depositary’s fee 147 164

Safe custody fee 6 6

153 170

Other expenses:

Administrative expenses 757 927

Audit fee 410 521

Electricity 651 768

Insurance 402 433

Legal & Professional fees 483 552

Maintenance costs 1,242 1,204

Other expenses 2 11

Other fees 1,640 1,411

Other property operating expenses 4,460 3,832

Printing & postage expenses 5 17

Property management fees 1,214 1,621

Property taxes 1,618 1,682

Statement fees 15 16

Water rates 92 107

12,991 13,102

Total expenses 17,924 19,157



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7 Taxationa Analysis of tax charge

Year ended30.09.15

£000

Year ended30.09.14

£000

Overseas tax suffered 1,220 1,315

Overseas tax written back (147) –

Total current tax for year (see note 7.b) 1,073 1,315

Deferred tax 17 (168)

Total deferred tax for year (see note 7.c) 17 (168)

Total tax charge 1,090 1,147

b Factors affecting current tax chargeThe 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 ended30.09.15

£000

Year ended30.09.14

£000

Net revenue before taxation 11,031 13,059

Corporation tax at 20% 2,206 2,612

Effects of:

Expenses not deductible for tax purposes 5 2

Overseas dividends not subject to corporation tax (77) (207)

Overseas tax suffered 1,220 1,315

Overseas tax written back (147) –

Tax deductible interest distributions (2,134) (2,407)

(1,133) (1,297)

Current tax charge (see note 7.a) 1,073 1,315

Authorised Investment Funds are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation.

c Deferred tax

Year ended30.09.15

£000

Year ended30.09.14

£000

The deferred tax asset is made up as follows:

Asset at start of year (100) 68

Charge/(credit) for the year (see note 7.a) 17 (168)

Asset at end of year (83) (100)



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8 Finance costsDistributions and interest

Year ended30.09.15

£000

Year ended30.09.14

£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 six months ended 31 March 7,522 6,591

Gross interest distribution for the six months ended 30 September 5,088 8,570

12,610 15,161

Add: Revenue deducted on cancellation of shares – –

Deduct: Revenue received on issue of shares – –

Finance costs: Distributions 12,610 15,161

Finance costs: Interest on bank overdrafts 44 40

Total finance costs 12,654 15,201

Reconciliation of net distribution for the year to net revenue after taxation

Distributions for the year 12,610 15,161

ACD periodic charge borne by the capital account (2,660) (3,248)

Equalisation on conversions (9) (1)

Net revenue after taxation 9,941 11,912

9 Debtors

As at30.09.15

£000

As at30.09.14

£000

Accrued revenue 351 1,292

Amounts due from Aviva Investors International Property Fund* 1,333 3,451

Deferred tax debtor 83 100

Other debtors 3,230 4,859

Overseas tax recoverable 21 211

Prepaid expenses 1,579 1,712

VAT recoverable 2,451 2,599

Total debtors 9,048 14,224

* Aviva Investors International Property Fund (AIIPF) was closed on 21 January 2011 and all of its assets transferred to the Company. AIIPF is in the process of being wound up. The proceeds of this winding up exercise are recorded as Amounts due from Aviva Investors International Property Fund until final settlement.



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10 Creditors

As at30.09.15

£000

As at30.09.14

£000

Accrued expenses 4,603 2,486

Amounts payable for cancellation of shares – 2,326

Deferred income 849 1,369

Income tax payable 1,229 1,654

Other creditors 2,068 1,076

Overseas tax provision 349 471

Refundable rent deposits 1,551 1,569

Trade creditors 458 381

VAT payable 2,595 2,884

Withholding tax payable 3,322 2,686

Total creditors 17,024 16,902

11 Portfolio transaction costsThe numerical disclosures for portfolio transaction costs are shown within each individual Fund.

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



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13 Reconciliation of movement in net cash

£000

Cash and cash equivalents:

As at 30.09.14 87,944

Cashflows (21,693)

As at 30.09.15 66,251

14 Reconciliation of net revenue before taxation to net cash inflow from operating activities

Year ended30.09.15

£000

Year ended30.09.14

£000

Total return before distributions (18,150) (19,559)

Net capital losses 28,091 31,470

Taxation 1,090 1,148

ACD periodic charges paid from capital 2,660 3,248

Net revenue before finance costs and taxation 13,691 16,307

Decrease/(increase) in debtors (excluding capital items) 83 (372)

Increase/(decrease) in creditors (excluding capital items) 6,400 (1,899)

Net cash inflow from operating activities 20,174 14,036

15 Post balance sheet eventsAsia Pacific Property FundAll of the properties of the Fund are under offer, awaiting completion. As advised in the investor letter advising of the suspension, proceeds will be returned to investors in stages as properties are sold and cash becomes available.

European Property FundAfter the midday valuation on 8 December 2015, dealing in the Fund was suspended and the investors were informed of the ACD’s intention to close the Fund. The real estate securities were sold on 9 December 2015 and the properties were marketed for sale in January 2016.

16 Remuneration PolicyAs noted last year, the ACD was authorised as an AIFM on 22 July 2014 and from that date was subject to the AIFM Remuneration Code and the Guidelines. The AIFMD remuneration regime only applies to full performance periods and will first apply to the first full performance period after the firm becomes authorised. Last year’s financial statements incorrectly referred to the performance period being the Aviva Investors Property Funds ICVC year end instead of the AIFM’s year end (31 December). The period from 22 July 2014 (the date of authorisation) to 31 December 2014 (the year end of the AIFM) does not represent a full performance period for the AIFM. The first full performance period for the AIFM will be the period from 1 January 2015 to 31 December 2015 and as such no remuneration disclosure has been included in these financial statements. Remuneration disclosure will be included in the financial statements from the year ended 30 September 2016 onwards.


Aviva Investors Asia Pacific Property Fund

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INVESTMENT OBJECTIVETo seek income and long term capital appreciation.

INVESTMENT APPROACHTo invest principally in immovable property, with an emphasis on commercial property, and/or property related transferable securities the issuers of which are domiciled in, or have significant operations or interests in, the Asia Pacific region or Australasia. The Fund may also invest in units in regulated and unregulated collective investment schemes, money market instruments, deposits, cash and near cash or derivatives. Derivatives may be used for the purposes of efficient portfolio management.

The Fund may hold its immovable property through intermediate holding vehicles. In such instances, the Fund’s direct holdings will generally be debentures, or other permitted debt and debt instruments and securities of subsidiary entities of the Company, the ACD or their respective Associates. These subsidiaries may in turn invest in immovable property via intermediate holding vehicles appropriate for the jurisdiction in which the immovable property is located.

In order to allow the payment of interest distributions, the Fund intends to hold at least 60% of its assets in debentures, or other permitted debt and debt instruments of subsidiaries and cash, or other such combination and proportions of assets as would enable it to make interest distributions and to facilitate efficient management of the Fund or for other purposes which may reasonably be regarded as ancillary to the investment objective of the Fund.

FUND MANAGER’S REPORT

FUND PROFILE AND PORTFOLIO REVIEWThe total assets of the Fund as at 30 September 2015 were c.£152.8 million including accumulated income. The asset split was 96.7% in direct property, 0.2% in unrestricted cash and 3.1% in restricted cash. The current liquidity buffer is below the fund manager’s target level and the fund manager is in the process of disposing of all the assets in the portfolio. Dealing in the Fund was suspended on 20 July 2015 and is in the process of being closed.

The Fund’s direct property vacancy rate is currently 2.4% which is an improvement on the year ended 30 September 2014 vacancy rate of 4.8%. The significant increase in occupancy rate was a result of the successful asset enhancement initiative the manager carried out in Sussex St in Sydney as well as leasing up efforts for Shore City in Auckland. Our leasing up efforts also improved the asset capital returns and also the Fund’s distribution yield.

Over the year ended 30 September 2015, the EUR share class returned 1.14% while the GBP and USD share classes returned -4.09% and -9.91% respectively. These share classes returns were mainly driven by negative capital returns and also currency deprecation of Asian currencies against sterling and US dollars.

As mentioned in our monthly bulletins, fund returns continue to be negatively impacted by currency volatility. We believe real estate is a long-term hold asset class, and the Fund’s ultimate goal is to create value through real estate fundamentals, rather than currency movements.

AVIVA INVESTORS ASIA PACIFIC PROPERTY FUND



16

FUND MANAGER’S REPORT (CONTINUED)

PROSPECTS FOR ASIA PACIFIC REAL ESTATEThe outlook for the Asia Pacific (APAC) economy softened in anticipation of the interest rate normalisation cycle in the U.S. However, slower growth does not equate to no growth. The overall APAC economic growth is estimated at 4.1% for the full year of 2015, according to Oxford Economics. The region’s economic growth is expected to be much higher than that of the U.S. and Europe. Most importantly, major countries in APAC are rebalancing their economies. In our view, the rebalancing is necessary and positive, as it will ultimately provide a more stable investment environment, particularly for core real estate.

The leasing market was mixed in the recent quarter reflecting differing lengths and stages of real estate market cycles among real estate markets within the region. Demand for industrial space remained stable and solid in 2015 primarily driven by 3PLs and e-commerce, while demand for office and retail varied by market. Tokyo and Hong Kong, Shanghai and Beijing office markets led growth among APAC core markets, with signs of recovery emerging in Sydney and Melbourne office markets. However, the Perth and Singapore office look set to experience more downward pressure drag by localised issues. New Zealand office and retail markets remain healthy, but appear to have peaked recently. Singapore retail is showing signs of weakness.

Capital values continued to grow at a faster pace than that of rental values in APAC core markets. The strong capital value trend was primarily driven by robust investor appetite. This is especially apparent for core stabilised prime assets with strong income-producing characteristics. Total transaction volume in APAC was US$ 56 billion during 1H 2015, which was modestly higher compared to 1H 2014 according to Jones Lang LaSalle. In local currency terms, the transaction volume would have been higher than in USD terms, as currencies have weakened in key markets such as Australia and Japan. Going forward, we expect investor interests to remain strong for APAC real estate, particularly for prime assets. Despite yields being pushed lower, net operating income (NOI) in most APAC markets is still below their historical peaks, which provides more room for potential NOI growth. Additionally, debt availability remains ample. All of these trends are expected to lead to continuing liquidity in the capital market and increasing investor demand for the region’s real estate properties.

In general, real estate continues to offer good value relative to other asset classes. We continue to favour logistics and non-discretionary retail in APAC for defensive strategies.

November 2015

Unless stated otherwise any opinions expressed are those of Aviva Investors Global Services Limited. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.

AVIVA INVESTORS ASIA PACIFIC PROPERTY FUND (CONTINUED)

CONSOLIDATED MATERIAL PORTFOLIO CHANGESThere were no purchases or sales of property during the period.

FUND MATERIAL PORTFOLIO CHANGESThere were only 2 purchases and 1 sale during the period.

Purchases

Castlereagh Equity 3

Sussex Street Interest Bearing Loan 2

Sales

Uchikanda Interest Bearing Loan 2



17

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares

Share class As atNet asset value*

£000Shares

in issuePer share in

class currency

Class A (GBP) 30.09.13 122,647 157,357,007 77.94p

30.09.14 92,402 126,076,443 73.29p

30.09.15 69,618 102,624,344 67.84p

Class A (USD) 30.09.13 556 984,903 91.16c

30.09.14 89 169,822 84.78c

30.09.15 76 157,596 73.77c

Class I (GBP) 30.09.13 7,673 9,012,592 85.14p

30.09.14 10,353 12,820,820 80.75p

30.09.15 7,393 9,864,942 74.94p

* Valued at bid market prices. The net asset value of income shares will exclude any distributions paid/payable to investors.

Net Asset Value – Accumulation Shares


£000Shares


class currency

Class A (GBP) 30.09.13 94,980 92,787,469 102.36p

30.09.14 83,376 84,033,289 99.22p

30.09.15 73,105 77,397,221 94.45p

Class A (EUR) 30.09.13 1,765 537,063 393.27c

30.09.14 1,189 373,229 409.18c

30.09.15 454 149,787 410.84c

Class A (USD) 30.09.13 2,020 842,382 387.39c

30.09.14 1,329 571,755 376.10c

30.09.15 638 288,383 336.30c

Class I (GBP) 30.09.13 1,848 1,603,210 115.26p

30.09.14 2,535 2,251,311 112.60p

30.09.15 1,484 1,373,813 107.98p

* Valued at bid market prices.



18

Share Price Record – Income Shares

Share classCalendaryear

Highest offer price*

Lowest bidprice**

Class A (GBP) 2010 81.20p 67.80p

2011 90.21p 73.78p

2012 99.24p 84.51p

2013 95.16p 73.93p

2014 80.86p 69.86p

2015*** 76.44p 62.31p

Class A (USD) 2011† 106.97c 98.22c

2012 111.64c 94.83c

2013 104.17c 87.15c

2014 97.03c 77.65c

2015*** 83.12c 69.53c

Class I (GBP) 2010 85.28p 71.05p

2011 98.19p 77.53p

2012 100.14p 90.77p

2013 97.25p 80.93p

2014 84.81p 77.14p

2015*** 80.53p 68.74p

* These prices include revenue and initial charge.** These prices include revenue.† From 14 November 2011 (date of launch).*** Up to 30 September 2015.With effect from 21 July 2015, the Fund has issued bid prices only.

Share Price Record – Accumulation Shares


Highest offerprice*

Lowest bidprice**

Class A (GBP) 2011†† 121.32p 90.85p

2012 123.67p 108.15p

2013 121.80p 97.11p

2014 107.41p 94.58p

2015*** 103.48p 85.95p

Class A (EUR) 2011††† 466.42c 334.93c

2012 489.62c 424.66c

2013 460.89c 372.05c

2014 430.35c 375.30c

2015*** 457.75c 383.78c

Class A (USD) 2011††† 451.09c 345.97c

2012 455.79c 390.92c

2013 437.88c 367.52c

2014 420.73c 344.43c

2015*** 368.70c 314.04c

Class I (GBP) 2010† 113.00p 94.68p

2011 128.19p 102.73p

2012 130.71p 121.02p

2013 129.65p 109.55p

2014 116.08p 107.44p

2015*** 112.20p 98.13p

* These prices include revenue and initial charge.** These prices include revenue.† From 10 August 2010 (date of launch).†† From 10 January 2011 (date of launch).††† From 24 January 2011 (date of launch).*** Up to 30 September 2015.With effect from 21 July 2015, the Fund has issued bid prices only.

Ongoing Charges Figure*Share class 30.09.15 30.09.14

Class A (GBP) 2.48% 2.31%

Class A (EUR) 2.48% 2.31%

Class A (USD) 2.48% 2.31%

Class I (GBP) 1.68% 1.51%

* 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.



19

Revenue Record – Income Shares

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 (14 November 2011 for share class A (USD)).


Net revenue per share

Per 1,000 invested in class currency

Class A (GBP) 2010 1.3493p £18.66

2011 1.3424p £18.56

2012 2.3339p £32.27

2013 2.2100p £30.56

2014 2.2640p £31.31

2015* 1.9834p £27.43

Class A (USD) 2011† 0.0000c $0.00

2012 2.6582c $26.58

2013 0.7230c $7.23

2014 3.6825c $36.83

2015* 2.0569c $20.57

Class I (GBP) 2010 1.6917p £22.30

2011 1.9278p £25.42

2012 1.9556p £25.78

2013 1.3972p £18.42

2014 2.4837p £32.74

2015* 2.6198p £34.53

† From 14 November 2011 (date of launch).* Up to 30 November 2015 (the final distribution payment date).

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 made on the respective launch date of each share class.




Class A (GBP) 2011†† 0.7931p £7.93

2012 2.7849p £27.85

2013 2.7151p £27.15

2014 2.9406p £29.41

2015* 2.6326p £26.33

Class A (EUR) 2011††† 6.5499c €17.64

2012 9.0342c €24.33

2013 9.9228c €26.72

2014 12.4630c €33.56

2015* 17.0050c €45.80

Class A (USD) 2011††† 5.7503c $15.25

2012 11.2473c $29.82

2013 9.7591c $97.59

2014 11.6822c $116.82

2015* 11.9313c $119.31

Class I (GBP) 2010† 0.0718p £0.72

2011 2.4902p £24.90

2012 3.0355p £30.36

2013 2.5977p £25.98

2014 4.5517p £45.52

2015* 2.7783p £27.78

† From 10 August 2010 (date of launch).†† From 10 January 2011 (date of launch).††† From 24 January 2011 (date of launch).* Up to 30 November 2015 (the final distribution payment date).



20

CONSOLIDATED PORTFOLIO STATEMENTAs at 30 September 2015

Investment CurrencyMarket Value

£000 % of Net Assets

Direct properties 96.69% (81.32%)Market value up to £7,000,000 0.00% (0.00%)

Market value between £7,000,000 and £14,000,000 21.91% (22.61%)6 Cowper Wharf Road, Wooloomooloo Bay Wharf, Sydney AUDMitsui Building, 1-8-1 Uchikanda, Chiyoda-ku, Tokyo JPY64 Castlereagh Street, Sydney AUDTotal market value between £7,000,000 and £14,000,000 33,473 21.91

Market value between £14,000,000 and £21,000,000 21.92% (20.64%)Kanda Matsunagacho Building, 4-1 Kanda Matsunagacho, Chiyoda-ku, Tokyo JPYShinyamashita Building, 2-19 Shinyamashita 1 chome, Naka-ku, Yokohama-shi JPYTotal market value between £14,000,000 and £21,000,000 33,489 21.92

Market value between £21,000,000 and £28,000,000 29.76% (0.00%)160 Sussex Street, Sydney AUDAlinta Plaza, 12-14 The Esplanade, Perth AUDTotal market value between £21,000,000 and £28,000,000 45,468 29.76

Market value between £28,000,000 and £35,000,000 0.00% (16.91%)

Market value over £35,000,000 23.10% (21.16%)Shore City Shopping Centre, Auckland NZDTotal market value over £35,000,000 35,284 23.10

Total direct properties 147,714 96.69

Investment assets 147,714 96.69Net other assets 5,054 3.31Net assets 152,768 100.00

The comparative percentage figures in brackets are as at 30 September 2014.



21

FUND PORTFOLIO STATEMENTAs at 30 September 2015

Investment Currency HoldingMarket Value


Australia 44.42% (39.51%)AAPF Investment Holding ZCP 18/11/2020 § AUD 1,400,000 – –Castlereagh Equity § AUD 6,010 3 –Castlereagh Equity 2 § AUD 18,615,994 8,546 5.59Castlereagh Equity 3 § AUD 750,000 347 0.23Castlereagh Perpetual § AUD 34,057 3,677 2.41Finger Wharf Equity § AUD 4,415 2 –Finger Wharf Interest Bearing Loan § AUD 13,009,500 5,970 3.91Finger Wharf Profit Participating Loan 12/06/2018 § AUD 4,332,085 3,772 2.47La Trobe Interest Bearing Loan § AUD 28,711 13 0.01NSIP Australia Interest Bearing Loan § AUD 2 – –Olderfleet Interest Bearing Loan § AUD 1,716,655 1,063 0.70Pioneer Clarence Equity § AUD 1,249,077 – –Pioneer Clarence Interest Bearing Loan 2 18/11/2020 § AUD 2,900,000 409 0.27Pioneer Clarence Profit Participating Loan 12/06/2018 § AUD 1,925,821 – –Pioneer Esplanade Equity § AUD 2,286,794 – –Pioneer Esplanade Interest Bearing Loan 18/11/2020 § AUD 46,374,750 21,827 14.29Pioneer Esplanade Profit Participating Loan 12/06/2018 § AUD 12,958,494 1,510 0.99Sussex Street Equity § AUD 6,010 3 –Sussex Street Interest Bearing Loan § AUD 31,014,117 14,234 9.32Sussex Street Interest Bearing Loan 2 § AUD 3,905,000 1,807 1.18Sussex Street Profit Participating Loan § AUD 34,057 4,661 3.05Australia total 67,844 44.42

Japan 27.25% (19.67%)Kanda Equity § JPY 467,815 – –Kanda Interest Bearing Loan § JPY 882,588,455 4,829 3.16Kanda Interest Bearing Loan 2 § JPY 1,093,591,778 5,481 3.59Kanda Profit Participating Loan § JPY 2,650,949 2,722 1.78NSIP Interest Bearing Loan § JPY 1 – –NSIP Investment ZCP Interest Bearing Loan 06/12/2020 § JPY 14,692,856 73 0.05NSIP Master Lessee Interest Bearing Loan § JPY 611,118 – –NSIP Master Lessee Interest Bearing Loan 2 § JPY 360,650 – –Uchikanda Equity § JPY 467,815 3 –Uchikanda Interest Bearing Loan § JPY 1,009,102,426 1,144 0.75Uchikanda Interest Bearing Loan 2 § JPY 991,560,954 6,021 3.94Uchikanda Profit Participating Loan § JPY 2,650,949 2,542 1.66Yamashita Equity § JPY 126,234,768 691 0.45Yamashita Lessee Interest Bearing Loan 2 § JPY 2,454,183,000 13,333 8.73Yamashita Profit Participating Loan § JPY 715,326,232 4,801 3.14Japan total 41,640 27.25

Luxembourg 0.06% (0.29%)Asia Pacific Investment Holdings SARL § GBP 830 89 0.06Luxembourg total 89 0.06



22

FUND PORTFOLIO STATEMENT (CONTINUED)As at 30 September 2015

New Zealand 21.13% (19.45%)Shore City Equity § NZD 8,925,803 802 0.52Shore Interest Bearing Loan § NZD 50,570,580 21,064 13.79Shore Profit Participating Loan § NZD 24,787,922 10,412 6.82New Zealand total 32,278 21.13

Singapore 1.77% (1.42%)Asia Pacific Investment Holdings Pte Ltd § GBP 73,600 2,704 1.77Pioneer Panda Profit Participating Loan 12/06/2018 § SGD 1 – –Singapore total 2,704 1.77

United Kingdom 0.56% (0.45%)Commerce Point Profit Participating Loan 18/11/2020 § GBP 857,032 859 0.56United Kingdom total 859 0.56


§ All holdings are unquoted securities.The comparative percentage figures in brackets are as at 30 September 2014.





23

ConsolidatedAviva Investors

Asia Pacific Property Fund

Notes

Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Income

Net capital losses 2 (11,518) (9,482) (11,518) (9,482)

Revenue 3 14,058 15,499 6,959 8,858

Expenses 4 (9,624) (10,121) (2,965) (3,570)

Finance costs: Interest 6 (9) (10) (2) (1)

Net revenue before taxation 4,425 5,368 3,992 5,287

Taxation 5 (1,220) (1,206) (787) (1,125)

Net revenue after taxation 3,205 4,162 3,205 4,162

Total return before distributions (8,313) (5,320) (8,313) (5,320)

Finance costs: Distributions 6 (5,871) (7,411) (5,871) (7,411)

Change in net assets attributable to shareholders from investment activities (14,184) (12,731) (14,184) (12,731)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERSFor the year ended 30 September 2015



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Opening net assets attributable to shareholders 191,273 231,489 191,273 231,489


Amounts receivable on issue of shares – – – –

Amounts payable on cancellation of shares (26,551) (30,169) (26,551) (30,169)

(26,551) (30,169) (26,551) (30,169)

Change in net assets attributable to shareholders from investment activities (see above) (14,184) (12,731) (14,184) (12,731)

Retained distribution on accumulation shares 2,230 2,684 2,230 2,684

Closing net assets attributable to shareholders 152,768 191,273 152,768 191,273

STATEMENT OF TOTAL RETURNFor the year ended 30 September 2015



24

BALANCE SHEETAs at 30 September 2015



Notes

As at30.09.15

£000

As at30.09.14

£000

As at30.09.15

£000

As at30.09.14

£000

Assets:

Investment assets 147,714 155,544 145,414 154,525

Debtors 7 3,957 7,472 9,859 11,128

Cash equivalents 303 30,203 303 30,203

Cash and bank balances 13,177 9,705 949 876

Total other assets 17,437 47,380 11,111 42,207

Total assets 165,151 202,924 156,525 196,732

Liabilities:

Creditors 8 (11,659) (9,690) (3,033) (3,498)

Distribution payable on income shares (724) (1,961) (724) (1,961)

Total liabilities (12,383) (11,651) (3,757) (5,459)

Net assets attributable to shareholders 152,768 191,273 152,768 191,273



25



Notes

Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Net cash inflow from operating activities 11 12,202 5,612 3,683 6,794


Distributions paid (3,672) (2,331) (3,672) (2,331)

(3,672) (2,331) (3,672) (2,331)

Taxation

Taxation paid (426) (572) (82) (290)

(426) (572) (82) (290)


Purchases of investments – – (1,994) (45,029)

Sales of investments – 38,941 1,702 87,879

Fees paid from capital (2,723) (3,296) (2,723) (3,296)

(2,723) 35,645 (3,015) 39,554

Financing – –

Amounts paid on cancellation of shares (26,551) (27,930) (26,551) (27,930)

Exchange rate movement (5,258) 1,727 (190) (622)

(31,809) (26,203) (26,741) (28,552)

(Decrease)/increase in cash in the year 10 (26,428) 12,151 (29,827) 15,175

Net cash at the start of the year 10 39,908 27,757 31,079 15,904

Net cash at the end of the year 10 13,480 39,908 1,252 31,079

CASH FLOW STATEMENTFor the year ended 30 September 2015



26

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policiesPlease see pages 7 and 8 for accounting basis and policies.




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Currency (losses)/gains on other capital items (82) 1,294 – –

Direct property losses (11,446) (10,773) – –

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

Forward currency contracts gains/(losses) 12 (3) 12 (3)

Non-derivative securities losses – – (9,484) (9,479)

Notional dealing costs – – (2.044) –

Net capital losses* (11,518) (9,482) (11,518) (9,482)

* Total realised losses for the year were £733,000 (2014: gains £5,371,000) and the movement in unrealised losses was £10,785,000 (2014: losses £14,853,000). Included in the unrealised losses for the year were unrealised gains/(losses) recognised in previous periods.

3 Revenue



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Bank and deposit interest 90 184 25 91

Interest on debt securities – – 6,899 8,589

Other income – – 35 –

Overseas dividends – 178 – 178

Rental revenue 13,968 15,137 – –

Total revenue 14,058 15,499 6,959 8,858



27

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

4 Expenses



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

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

ACD’s periodic charge 2,660 3,248 2,660 3,248

Registration fees 171 209 172 209

2,831 3,457 2,832 3,457

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

Depositary’s fees 67 74 67 74

Safe custody fee 1 – 1 –

68 74 68 74

Other expenses:

Administrative expenses 264 329 – –

Audit fee* 190 240 16 14

Electricity 402 499 – –

Insurance 246 287 – –

Legal & Professional fees 121 83 46 9

Maintenance costs 447 480 – –

Other fees 680 541 – –

Other property operating expenses 2,977 2,564 – –

Printing & postage expenses (4) 10 (4) 10

Property management fees 336 437 – –

Property taxes 980 1,032 – –

Statement fees 7 6 7 6

Water rates 79 82 – –

6,725 6,590 65 39

Total expenses 9,624 10,121 2,965 3,570

* The audit fee was £265,000 (2014: £248,000) net of VAT.



28




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Overseas tax 1,220 1,206 787 1,125

Total current tax for year (see note 5.b) 1,220 1,206 787 1,125

b Factors affecting current tax chargeThe tax assessed for the year is higher (2014: higher) than the standard rate of corporation tax in the UK for an Authorised Investment Fund (20%) (2014: 20%).




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Corporation tax at 20% 885 1,074 798 1,057

Effects of:

Expenses not deductible for tax purposes – 2 – 2

Overseas dividends not subject to corporation tax – (36) – (36)

Overseas tax suffered 1,220 1,206 787 1,125

Tax deductible interest distributions (885) (1,040) (798) (1,023)

335 132 (11) 68

Current tax charge for the year (see note 5.a) 1,220 1,206 787 1,125


C Deferred taxThere was no provision for deferred tax at the balance sheet date (2014: £nil).




29




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Gross interest distribution for the six months ended 31 March 4,046 2,884 4,046 2,884

Gross interest distribution for the six months ended 30 September 1,825 4,527 1,825 4,527

5,871 7,411 5,871 7,411

Add: Revenue deducted on cancellation of shares – – – –

Deduct: Revenue received on issue of shares – – – –

Finance costs: Distributions 5,871 7,411 5,871 7,411

Finance costs: Interest on bank overdrafts 9 10 2 1

Total finance costs 5,880 7,421 5,873 7,412

Reconciliation of distributions for the year to net revenue after taxation

Distributions for the year 5,871 7,411 5,871 7,411

ACD periodic charge borne by the capital account (2,660) (3,248) (2,660) (3,248)

Equalisation on conversions (6) (1) (6) (1)


Details of the distributions per share are set out in the distribution tables on pages 35 and 36.

7 Debtors



As at30.09.15

£000

As at30.09.14

£000

As at30.09.15

£000

As at30.09.14

£000

Accrued revenue 1 8 8,689 7,833

Amounts due from Aviva Investors International Property Fund* 1,170 3,117 1,170 3,117

Other debtors 2,321 3,313 – –

Overseas tax recoverable – 178 – 178

Prepaid expenses 358 536 – –

VAT recoverable 107 320 – –

Total debtors 3,957 7,472 9,859 11,128

* Aviva Investors International Property Fund (AIIPF) was terminated on 21 January 2011 and all of its assets transferred to the Company. AIIPF is in the process of being wound up. The proceeds of this winding up exercise are recorded as Amounts due from Aviva Investors International Property Fund until final settlement.




30

8 Creditors



As at30.09.15

£000

As at30.09.14

£000

As at30.09.15

£000

As at30.09.14

£000

Accrued expenses 3,642 1,642 2,317 358

Amounts payable for cancellation of shares – 2,239 – 2,239

Deferred income 325 264 – –

Income tax payable 665 879 716 901

Other creditors 1,912 30 – –

Refundable rent deposits 1,457 1,444 – –

VAT payable 336 506 – –

Withholding tax payable 3,322 2,686 – –

Total creditors 11,659 9,690 3,033 3,498



Consolidated£000

Aviva InvestorsAsia Pacific Property Fund

£000


As at 30.09.14 39,908 31,079

Cashflows (26,428) (29,827)

As at 30.09.15 13,480 1,252




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Net capital losses 11,518 9,482 11,518 9,482

Taxation 1,220 1,206 787 1,125

ACD fees paid from capital 2,660 3,248 2,660 3,248

Amortisation charged on intra-group loan – – (264) (247)

Net revenue before finance costs and taxation 7,085 8,616 6,388 8,288

(Increase)/decrease in debtors (excluding capital items) (1,390) 79 (856) 122

Increase/(decrease) in creditors (excluding capital items) 6,507 (3,083) (1,849) (1,616)

Net cash inflow from operating activities 12,202 5,612 3,683 6,794




31

12 Related party transactionsManagement 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 management charges was £208,000 (2014: £269,000) and registration fees was £42,000 (2014: £46,000). 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 8.

Distributions payable to the ACD and related parties of the ACD during the year amounted to £3,580,000 (2014: £4,076,000). The amount outstanding at the year end was £1,122,000 (2014: £2,533,000). 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 Ltd is paid by the ACD.

Holdings at the year end and movements during the year are as follows:

Holdings at30.09.15(shares)

Movement(shares)


ACD and related parties (share class A (GBP) income) 69,724,780 (2,917,899) 72,642,679

ACD and related parties (share class I (GBP) income) 982,120 472,869 509,251

ACD and related parties (share class A (GBP) accumulation) 76,463,653 (5,947,039) 82,410,692

ACD and related parties (share class A (EUR) accumulation) – (197) 197

ACD and related parties (share class I (GBP) accumulation) 25,523 (6,043) 31,566

The ACD and related parties of the ACD are ineligible to vote at any general meeting.

13 Shareholder fundsThe Fund currently has 2 share classes: Class A (Retail) and Class I (Institutional). The annual management charges are as follows:

Class A: 1.60%Class I: 0.80%

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 17. The distributions per share class are given in the distribution tables on pages 35 and 36. All the share classes have the same rights on winding up.




32

14 Derivatives and other financial instrumentsThe policies applied in the management of financial instruments are set out on page 8.

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

Currency exposuresAt the year end date, 98.73% (2014: 83.84%) of the net assets of the Company were denominated in currencies other than sterling with the effect that the balance sheet and total return can be significantly affected by currency movements.

At the year end date, 100.47% (2014: 81.95%) 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.

Currency

Net foreign currency assets

Consolidated Aviva Investors Asia Pacific Property Fund

Non monetary exposure

£000

Monetaryexposure

£000Total£000


£000

Monetaryexposure

£000Total£000

30.09.15 30.09.15 30.09.15 30.09.15 30.09.15 30.09.15

Australian Dollar 67,450 587 68,037 67,844 (810) 67,034

Japanese Yen 45,047 1,280 46,327 41,640 5,433 47,073

New Zealand Dollar 35,285 992 36,277 32,278 2,504 34,782

Singapore Dollar – 187 187 – 211 211

Currency




£000

Monetaryexposure

£000Total£000


£000

Monetaryexposure

£000Total£000

30.09.14 30.09.14 30.09.14 30.09.14 30.09.14 30.09.14

Australian Dollar 74,731 1,268 75,999 75,570 (1,415) 74,155

Japanese Yen 40,420 1,960 42,380 37,620 4,971 42,591

New Zealand Dollar 40,473 1,321 41,794 37,205 2,571 39,776

Singapore Dollar – 198 198 – 222 222




33

14 Derivatives and other financial instruments (continued)Interest rate risk profile of financial assets and financial liabilities (continued)The interest rate profile of the financial assets and liabilities at 30 September 2015 was:

Currency


FloatingRate£000

FixedRate£000

None

£000

Total

£000

FloatingRate£000

FixedRate£000

None

£000

Total

£000

Financial Assets

Sterling 4,356 – 898 5,254 1,928 – 5,497 7,425

Australian Dollar 2,748 – 65,492 68,240 13,620 54,217 – 67,837

Japanese Yen 4,253 67 42,141 46,461 10,066 30,881 6,126 47,073

New Zealand Dollar 1,941 – 34,442 36,383 31,476 – 3,306 34,782

Singapore Dollar 182 – 5 187 182 – 29 211

Financial Liabilities

Sterling – – (3,757) (3,757) – – (3,757) (3,757)

Australian Dollar – – – – – – (803) (803)

Total 13,480 67 139,221 152,768 57,272 85,098 10,398 152,768

The interest rate profile of the financial assets and liabilities at 30 September 2014 was:

Currency


FloatingRate£000

FixedRate£000

None£000

Total£000

FloatingRate£000

FixedRate£000

None£000

Total£000

Financial Assets

Sterling 31,716 – 4,644 36,360 31,925 – 8,063 39,988

Australian Dollar 2,829 – 73,170 75,999 12,911 61,854 804 75,569

Japanese Yen 3,557 81 38,742 42,380 5,500 31,410 5,681 42,591

New Zealand Dollar 1,791 – 40,004 41,795 36,050 – 3,726 39,776

Singapore Dollar 14 – 184 198 14 – 208 222


Sterling – – (5,459) (5,459) – – (5,459) (5,459)

Australian Dollar – – – – – – (1,414) (1,414)

Total 39,907 81 151,285 191,273 86,400 93,264 11,609 191,273

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 where applicable.


Fixed rate financial assets weightedaverage interest rate

%

Fixed rate financial assets weighted average period for which rate is fixed

Years

Currency 30.09.15 30.09.14 30.09.15 30.09.14

Australian Dollar 9.05 9.05 5 6

Japanese Yen 1.86 1.88 4 5




34

15 Portfolio transaction costs



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Analysis of total purchase costs

Purchases in year before transaction costs 1,994 45,029 1,994 45,029

Commissions – – – –

Taxes – – – –

Total purchase costs – – – –

Gross purchases total 1,994 45,029 1,994 45,029

Analysis of total sale costs

Gross sales before transaction costs 1,702 87,879 1,702 87,879

Commissions – – – –

Taxes – – – –

Total sale costs – – – –

Total sales net of transaction costs 1,702 87,879 1,702 87,879

16 Post balance sheet eventsAll of the properties of the Fund are under offer, awaiting completion. As advised in the investor letter advising of the suspension, proceeds will be returned to investors in stages as properties are sold and cash becomes available.




35

DISTRIBUTION TABLES

Final distribution payable in pence/cents per share for the six months ended 30 September 2015

Income shares Gross revenue Income taxNet

revenue Equalisation

Final distributionpayable

30 November2015

Final distributionpaid

30 November2014

Class A (GBP) Group 1 0.7966p 0.1593p 0.6373p – 0.6373p 1.3967p

Group 2 0.5388p 0.1078p 0.4310p 0.2063p 0.6373p 1.3967p

Class A (USD) Group 1 0.8639c 0.1728c 0.6911c – 0.6911c 1.4986c

Group 2 0.8639c 0.1728c 0.6911c 0.0000c 0.6911c 1.4986c

Class I (GBP) Group 1 0.8798p 0.1760p 0.7038p – 0.7038p 1.5480p

Group 2 0.5758p 0.1152p 0.4606p 0.2432p 0.7038p 1.5480p

Accumulation shares Gross revenue Income taxNet



30 November2015


30 November2014


Group 2 0.7236p 0.1447p 0.5789p 0.2977p 0.8766p 1.8314p

Class A (EUR) Group 1 4.7653c 0.9531c 3.8122c – 3.8122c 8.0228c

Group 2 3.2355c 0.6471c 2.5884c 1.2238c 3.8122c 8.0228c


Group 2 2.4386c 0.4877c 1.9509c 1.1697c 3.1206c 6.9208c


Group 2 0.9555p 0.1911p 0.7644p 0.2351p 0.9995p 3.2883p

Final DistributionGroup 1 shares are those shares purchased at or before 12:00 noon on 31 March 2015.Group 2 shares are those shares purchased after 12:00 noon on 31 March 2015.



36

Interim distribution paid in pence/cents per share for the six months ended 31 March 2015



Interim distribution

paid31 May 2015


paid31 May 2014


Group 2 1.0636p 0.2127p 0.8509p 0.4952p 1.3461p 0.8673p


Group 2 1.7073c 0.3415c 1.3658c 0.0000c 1.3658c 2.1839c


Group 2 0.9905p 0.1981p 0.7924p 1.1236p 1.9160p 0.9357p




paid31 May 2015


paid31 May 2014


Group 2 1.5679p 0.3136p 1.2543p 0.5017p 1.7560p 1.1092p


Group 2 13.8599c 2.7720c 11.0879c 2.1049c 13.1928c 4.4402c


Group 2 8.7586c 1.7517c 7.0069c 1.8038c 8.8107c 4.7614c


Group 2 0.9541p 0.1908p 0.7633p 1.0155p 1.7788p 1.2634p

Interim DistributionGroup 1 shares are those shares purchased at or before 12:00 noon on 30 September 2014.Group 2 shares are those shares purchased after 12:00 noon on 30 September 2014.

DISTRIBUTION TABLES (CONTINUED)


Aviva Investors European Property Fund

37

INVESTMENT OBJECTIVETo seek income and long term capital appreciation through real estate investment in the European Economic Area (excluding the UK) and Switzerland.

INVESTMENT APPROACHTo invest principally in commercial immovable real estate, together with real estate related listed securities, whose investments and activities are principally based within the European Economic Area (excluding the UK) and Switzerland. The Fund may also invest in units in regulated and unregulated collective investment schemes, money market instruments, deposits, cash and near cash and derivatives. Derivatives may be used for the purposes of Efficient Portfolio Management.

The Fund may hold its immovable property through intermediate holding vehicles. In such instances, the Fund’s direct holdings will generally be debentures, or other permitted debt and debt instruments and securities of subsidiary entities of the Company, the ACD or their respective Associates. These subsidiaries may in turn invest in immovable property via intermediate holding vehicles appropriate for the jurisdiction in which the immovable property is located.

In order to allow the payment of interest distributions, the Fund intends to hold at least 60% of its assets in debentures, or other permitted debt and debt instruments of subsidiaries and cash, or such other combination and proportions of assets as would enable it to make interest distributions and to facilitate efficient management of the Fund or for other purposes which may reasonably be regarded as ancillary to the investment objective of the Fund.

FUND MANAGER’S REPORT

FUND PROFILE AND PORTFOLIO REVIEWTotal assets under management as at 30 September 2015 were £198.5 million, which includes 13 properties invested across 7 countries. The net initial yield on the underlying properties in the Fund is currently 7.0%. At the end of September 2015, the total unrestricted cash position for the Fund stood at approximately 14.5%. With just over 6% of the Fund being invested in real estate securities, the Fund had a total liquidity position of just under 21%. The fund manager’s aim is to typically maintain a liquidity level, including both unrestricted cash and real estate securities, of approximately 15 to 20%. Dealing in the Fund was suspended on 8 December 2015 and the Fund is in the process of being closed.

The fund portfolio remains geographically diversified across 7 countries, with a clear focus on the core European countries (France, Germany, Sweden and Finland) with 80.1% of direct property assets in total. Only one property (representing 2.2% of the property portfolio) is invested within the weaker peripheral southern European countries. The portfolio is diversified across the real estate sectors, with 10.5% by capital value in retail warehousing, 26.9% in retail, 19.5% in offices and 43.1% in industrial properties. The near-term focus for the Fund continues to be to manage income and continue to reduce vacancy across the portfolio.

The Fund’s listed real estate securities portfolio remains concentrated in the more liquid and defensive securities (including Unibail, Eurocommercial Property, and Klepierre) with only limited exposure to peripheral European countries in their portfolios. Such companies provide pan-European exposure to the property market, primarily in the retail and office sectors. They combine a high dividend yield with good liquidity and we expect them to be more resilient than their smaller, less liquid peers during periods of higher equity market volatility.

REAL ESTATE MARKET REVIEW AND OUTLOOKThe Eurozone saw modest (quarter-on-quarter) economic growth of 0.4 per cent in the second quarter, much in line with the preceding three months. Like other core markets, Germany’s economy remains subdued, but some peripheral markets such as Spain and Ireland are seeing more rapid growth and are expected to outperform their peers over the next five years. Although we expect Europe’s fragile recovery to continue, it is subject to a number of risks including the Greek debt crisis and a China-led slowdown in global growth. The European Commission’s economic-sentiment index improved markedly in the second quarter of 2015. Enhanced sentiment resulted from improvements in confidence in industry, services and, to a lesser extent, retail trade.

European office markets are seeing steady improvement in occupier demand. In many European markets, the strong occupier demand and lack of development has resulted in tight office supply, declining vacancy rates and rising rents. Meanwhile, European (ex UK) investment volumes grew by 30% on last year. The Nordics, Germany and Spain in particular attracted strong investor interest. CBRE’s Eurozone prime office yield index contracted by an impressive 27 bps in the third quarter of 2015, compared to 13 bps in the first quarter.

Eurozone consumers’ are becoming more upbeat about their personal finances and retail trade confidence is growing across the region. Eurozone retail rents continue to outperform both the office and industrial sector. According to CBRE’s prime retail rent index, Eurozone retail rents posted a year-on-year growth of 6.5% in the second quarter of 2015. Dublin, Madrid and Barcelona growth surpassed 8%. Investment volumes in the European (ex UK) retail sector amounted to €12 bn in Q2 2015, representing an annual increase of 39%. CBRE’s Eurozone prime retail yield index contracted by 5 bps in the third quarter, below the 13 bps compression recorded in the second quarter of 2015.

The Markit Eurozone PMI slipped slightly from 54.3 in August to 53.9 in September (according to the preliminary reading). While France saw a pick-up, the growth slowed in Germany and in the rest of the region. However, the industrial property markets are progressing. After falling/static rents for thirteen consecutive quarters, industrial rents finally picked up in the second quarter of 2015 – recording a modest y-o-y growth of 1.1%. Meanwhile, investment demand for industrial and logistics property has remained robust, reflected by a compression of 32 bps in prime yields (in Q3-15). Industrial investment volumes in Europe (ex UK) recorded an annual decrease of 20% in Q3 2015. This is most likely a result of lack of product rather than lack of demand.

AVIVA INVESTORS EUROPEAN PROPERTY FUND



38

FUND MANAGER’S REPORT (CONTINUED)

REAL ESTATE MARKET REVIEW AND OUTLOOK (CONTINUED)We believe that sustained economic recovery and lack of high quality space will continue to underpin near term rental growth across all three sectors. However, we continue to closely monitor the economic growth. We believe that Europe is poorly positioned to deal with another economic downturn. Unemployment rates remain stubbornly high while growth is being driven more by consumption than by industrial production.

Since the start of 2015, the rate of decline in property yields has accelerated. This reflects European real estate’s attractiveness against other income producing assets, as well as relatively robust income security and growth prospects. With government bond yields set to remain low, the large spread offered by real estate will be maintained for some time to come.

November 2015

Please note that this investment commentary was written in November 2015, prior to the suspension of dealing in the Fund on 8 December 2015.

Unless stated otherwise any opinions expressed are those of Aviva Investors Global Services Limited. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.

AVIVA INVESTORS EUROPEAN PROPERTY FUND (CONTINUED)

CONSOLIDATED MATERIAL PORTFOLIO CHANGESThere were no purchases of property and only 1 sale during the period.

Sales

Busitel II, 2-74, Orlyplein, Amstersdam, The Netherlands

FUND MATERIAL PORTFOLIO CHANGESThere were only 8 purchases during the period.

Purchases

Katowice Holding ZCP Perpetual

Vanta Financing

Entra ASA

Pandox

Wereldhave

Westgrund

Hibernia REIT

Sales

Busitel II Financing ZCP Perpetual

Katowice Financing

Entra ASA

Kadan Interest Free Loan

Unibail-Rodamco

Kadan Financing ZCP Perpetual

Rue D'Anjou 0% CPEC

Katowice Holding ZCP Perpetual

Westgrund

LAR Espana Real Estate SOCIMI REIT



39

INVESTMENT PERFORMANCE

Net Asset Value – Income Shares


£000Shares


class currency

Class A (GBP) 30.09.13 2,244 1,926,905 116.46p

30.09.14 2,046 1,914,307 106.89p

30.09.15 1,872 1,894,707 98.82p

Class A (EUR) 30.09.13 70 70,470 119.28c

30.09.14 59 64,677 117.52c

30.09.15 55 64,677 114.59c

Class R (GBP) 30.09.13 24,000 20,706,217 115.90p

30.09.14 16,116 15,159,815 106.31p

30.09.15 11,338 11,541,762 98.23p

Class I (GBP) 30.09.13 171,492 147,700,822 116.11p

30.09.14 120,142 112,808,209 106.50p

30.09.15 112,563 114,339,887 98.45p

Class I (EUR) 30.09.13 78 79,300 117.81c

30.09.14** – – –

* Valued at bid market prices. The net asset value of income shares will exclude any distributions paid/payable to investors.** Share class closed on 22 January 2014.

Net Asset Value – Accumulation Shares


£000Shares


class currency

Class A (EUR) 30.09.13 9,978 7,964,109 149.92c

30.09.14 9,283 7,909,109 150.79c

30.09.15 8,762 7,909,109 150.12c

Class A (USD) 30.09.13 186 82,650 363.95c

30.09.14 174 82,650 341.51c

30.09.15 165 82,650 302.80c

Class I (EUR) 30.09.13 70,733 53,938,703 156.92c

30.09.14 71,286 57,682,411 158.77c

30.09.15 63,785 54,352,130 159.04c

* Valued at bid market prices.



40

Share Price Record – Income Shares


Highest offerprice*

Lowest bidprice**

Class A (GBP) 2010† 128.60p 114.00p

2011 135.30p 114.80p

2012 125.10p 109.30p

2013 129.80p 112.60p

2014 121.10p 106.04p

2015*** 112.45p 94.60p

Class A (EUR) 2010† 124.60c 115.20c

2011 132.30c 115.70c

2012 127.90c 117.90c

2013 127.10c 116.90c

2014 124.66c 115.39c

2015*** 124.76c 114.73c

Class R (GBP) 2010† 128.80p 114.20p

2011 135.00p 114.80p

2012 124.80p 109.00p

2013 129.30p 112.10p

2014 120.53p 105.39p

2015*** 111.82p 94.08p

Class I (GBP) 2010† 128.00p 113.60p

2011 128.00p 114.40p

2012 118.60p 109.00p

2013 123.20p 112.40p

2014 115.22p 105.81p

2015*** 106.90p 94.41p

Class I (EUR) 2010† 134.90c 124.60c

2011 136.50c 125.40c

2012 131.70c 127.50c

2013 130.50c 115.40c

2014†† 117.46c 116.30c

* These prices include revenue and initial charge.** These prices include revenue.† From 18 October 2010 (date of launch).†† Up to 22 January 2014 (date share class closed).*** Up to 30 September 2015.

Share Price Record – Accumulation Shares


Highest offerprice*

Lowest bidprice**

Class A (EUR) 2010† 147.80c 136.60c

2011 156.90c 137.30c

2012 155.50c 142.90c

2013 157.40c 145.90c

2014 158.16c 145.79c

2015*** 160.06c 148.77c

Class A (USD) 2011†† 400.50c 325.80c

2012 360.90c 311.40c

2013 387.88c 336.20c

2014 389.62c 326.76c

2015*** 341.73c 287.00c

Class I (EUR) 2010† 152.20c 140.60c

2011 154.00c 141.40c

2012 153.50c 147.90c

2013 156.10c 151.90c

2014 158.80c 152.91c

2015*** 161.03c 157.30c

* These prices include revenue and initial charge.** These prices include revenue.† From 18 October 2010 (date of launch).†† From 24 January 2011 (date of launch).*** Up to 30 September 2015.

Ongoing Charges Figure*Share class 30.09.15 30.09.14

Class A (GBP) 2.63% 2.52%

Class A (EUR) 2.63% 2.52%

Class A (USD) 2.63% 2.52%

Class R (GBP) 2.63% 2.52%

Class I (GBP) 1.88% 1.77%

* 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.



41

Revenue Record – Income Shares





Class A (GBP) 2010† 0.0000p £0.00

2011 1.7208p £13.00

2012 2.3128p £17.47

2013 2.8351p £21.42

2014 2.2403p £16.92

2015* 2.1007p £15.87

Class A (EUR) 2010† 0.0000c €0.00

2011 1.8462c €14.22

2012 2.3203c €17.87

2013 2.8004c €21.57

2014 2.4413c €18.80

2015* 2.4570c €18.92

Class R (GBP) 2010† 0.0000p £0.00

2011 1.9433p £14.62

2012 2.4946p £18.81

2013 2.8669p £21.57

2014 2.3138p £17.41

2015* 2.1221p £15.97

Class I (GBP) 2010† 0.0000p £0.00

2011 2.1583p £17.19

2012 2.9337p £23.36

2013 3.4753p £27.68

2014 2.9673p £23.63

2015* 2.7098p £21.58

Class I (EUR) 2010† 0.0000c €0.00

2011 2.7655c €20.68

2012 3.4199c €25.56

2013 14.5864c €109.07

2014†† 0.0000c €0.00

† From 18 October 2010 (date of launch).†† Up to 22 January 2014 (date share class closed).* Up to 30 November 2015 (the final distribution payment date).

Revenue Record – Accumulation Shares





Class A (EUR) 2010† 0.0000c €0.00

2011 2.4223c €15.71

2012 2.9601c €19.22

2013 3.4930c €22.65

2014 2.9685c €19.25

2015* 3.1699c €20.56

Class A (USD) 2011†† 5.0085c $13.11

2012 8.5072c $22.28

2013 8.3736c $21.92

2014 6.9855c $18.28

2015* 6.2449c $16.35

Class I (EUR) 2010† 0.0000c €0.00

2011 3.2037c €21.24

2012 4.1292c €27.38

2013 4.4530c €29.52

2014 4.0756c €27.02

2015* 4.4500c €29.50

† From 18 October 2010 (date of launch).†† From 24 January 2011 (date of launch).* Up to 30 November 2015 (the final distribution payment date).



42

CONSOLIDATED PORTFOLIO STATEMENTAs at 30 September 2015



Direct Properties 73.54% (75.04%)Market Value up to £7,500,000 10.20% (14.62%)Edificio Amper, 3, Marconi, Tres Cantos, Madrid, Spain EURZAC de la Crau, 13300 Salon de Provence, France EURPrumysolva Zona Nove Pole, Karvina, Czech Republic EURAvenue de St Mathurin, ZA de Merlemont, 60000 Allonne, France EURTotal market value up to £7,500,000 20,245 10.20

Market Value between £7,500,000 and £15,000,000 27.06% (26.40%)Logistics Property, 1, Gretlade, Sehnde, Germany EURPoland Rockwell Automation, ul. Roździeńska 49, Katowice, Poland EURIndustrial Zone Kadaň, Královskývrch 1990, Kadaň, Czech Republic EURZamdorfer Strasse 88, 81677, Munich, Germany EURMegaron B, 17-19, Dynamostrasse, Germany EURTotal market value between £7,500,000 and £15,000,000 53,731 27.06

Market Value between £15,000,000 and £22,500,000 24.21% (22.35%)Birsta Syd Retail Warehousing Scheme, Sundsvall, Sweden SEKKonigsteiner Strasse 9-13/Emmerich-Josef-Strasse 21-25, Frankfurt am Main, Germany EURManttaalitie 5-7, 01530 Vantaa, Finland EURTotal market value between £15,000,000 and £22,500,000 48,063 24.21

Market Value over £22,500,000 12.07% (11.67%)City Carrée, 1 Albert-Schweitzer-Strasse, Salzgitter, Germany EURTotal market value over £22,500,000 23,970 12.07

Total direct properties 146,009 73.54

Real Estate Securities 6.33% (6.71%)Alstria Office REIT EUR 64,004 554 0.28Castellum SEK 53,717 497 0.25Citycon EUR 314,890 516 0.26Entra ASA NOK 11,203 59 0.03Eurocommercial EUR 28,000 803 0.40Fonciere des Regions EUR 13,738 784 0.40Gecina EUR 9,668 774 0.39Hibernia REIT EUR 2,378,661 2,206 1.11Hufvudstaden ‘A’ SEK 66,869 578 0.29Klepierre EUR 37,186 1,110 0.56LAR Espana Real Estate SOCIMI REIT EUR 131,034 836 0.42Leg Immobilien EUR 8,931 491 0.25OCM German Real Estate EUR 24,952 82 0.04Pandox SEK 73,573 698 0.35Unibail-Rodamco EUR 7,152 1,228 0.62Wereldhave EUR 35,505 1,347 0.68Real Estate Securities total 12,563 6.33


The comparative percentage figures in brackets are as at 30 September 2014.



43

FUND PORTFOLIO STATEMENTAs at 30 September 2015



Czech Republic 7.41% (8.07%)Kadan Capex Interest Bearing Loan § EUR 4,000,000 2,406 1.21Kadan Equity ZCP Perpetual § EUR 32,100 – 0.00Kadan Financing ZCP Perpetual § EUR 7,916,552 5,700 2.87Kadan Holding ZCP Perpetual § EUR 181,765 – –Kadan Interest Free Loan § EUR 1,926,053 – –Karvina Equity Perpetual § EUR 19,250 – –Karvina Financing Perpetual § EUR 9,955,142 6,608 3.33Karvina Holding Perpetual § EUR 62,666 – –Czech Republic total 14,714 7.41

Finland 8.76% (7.67%)Citycon 314,890 516 0.26Vantaa Equity ZCP Perpetual § EUR 1,297,375 – –Vantaa Financing § EUR 21,127,559 14,837 7.47Vantaa Holding § EUR 7,260,915 2,033 1.03Finland total 17,386 8.76

France 7.35% (7.62%)Fonciere des Regions EUR 13,738 784 0.39Galileo Equity Perpetual § EUR 1,510,675 – –Galileo Financing Perpetual § EUR 25,987,897 10,710 5.39Galileo Holding ZCP Perpetual § EUR 8,422,276 – –Gecina EUR 9,668 774 0.39Klepierre EUR 37,186 1,110 0.56Unibail-Rodamco EUR 7,152 1,228 0.62France total 14,606 7.35

Germany 37.09% (36.60%)Alstria Office REIT EUR 64,004 554 0.28Gretlade Equity ZCP Perpetual § EUR 444,825 – –Gretlade Financing ZCP Perpetual § EUR 16,105,136 9,339 4.70Gretlade Holding ZCP Perpetual § EUR 2,415,770 – –Hochst Equity ZCP § EUR 999,400 – –Hochst Financing Perpetual § EUR 15,545,950 11,476 5.78Hochst Holding Perpetual § EUR 5,663,168 4,179 2.11Leg Immobilien EUR 8,931 491 0.25Megaron B Equity ZCP Perpetual § EUR 1,092,750 – –Megaron B Financing Perpetual § EUR 12,081,087 8,498 4.28Megaron B Holding § EUR 6,154,340 4,227 2.13Munich Equity ZCP Perpetual § EUR 43,825 – –Munich Financing § EUR 15,704,042 11,447 5.77Munich Holding ZCP Perpetual § EUR 247,988 – –OCM German Real Estate EUR 24,952 82 0.04Salzgitter Equity 12/06/2020 § EUR 1,603,525 – –Salzgitter Financing Perpetual § EUR 24,943,450 18,251 9.19Salzgitter Holding 12/06/2020 § EUR 9,086,543 5,086 2.56Germany total 73,630 37.09

Ireland 1.11% (0.00%)Hibernia REIT EUR 2,378,661 2,206 1.11Ireland total 2,206 1.11

Luxembourg 2.05% (0.91%)European Property Holdings SARL § EUR 208,871 4,077 2.05Luxembourg total 4,077 2.05



44

FUND PORTFOLIO STATEMENT (CONTINUED)As at 30 September 2015



Netherlands 1.08% (4.41%)Busitel II Equity ZCP Perpetual § EUR 1,408,725 – –Busitel II Holding Perpetual § EUR 7,982,690 – –Eurocommercial EUR 28,000 803 0.40Wereldhave EUR 35,505 1,347 0.68Netherlands total 2,150 1.08

Norway 0.03% (0.00%)Entra ASA NOK 11,203 59 0.03Norway total 59 0.03

Poland 4.1% (3.94%)Katowice Equity ZCP Perpetual § EUR 531,525 392 0.20Katowice Financing § EUR 6,150,558 4,367 2.20Katowice Holding ZCP Perpetual § EUR 2,297,060 3,375 1.70Poland total 8,134 4.10

Spain 2.14% (3.40%)LAR Espana Real Estate SOCIMI REIT § EUR 131,034 836 0.42Tres Cantos Equity ZCP Perpetual § EUR 822,950 – –Tres Cantos Financing ZCP Perpetual § EUR 18,204,000 3,410 1.72Tres Cantos Holding ZCP Perpetual § EUR 4,663,270 – –Spain total 4,246 2.14

Sweden 8.21% (8.10%)Castellum SEK 53,717 497 0.25Hufvudstaden ‘A’ SEK 66,869 578 0.29Kista 0% CPEC § SEK 923,700 138 0.07Kista Equity Perpetual § SEK 1,175 1 –Kista Financing Perpetual § SEK 133,639 20 0.01Pandox SEK 73,573 698 0.35Sundsvall Equity § EUR 759,154 – –Sundsvall Financing ZCP Perpetual § SEK 185,635,830 14,370 7.24Sundsvall Holding Perpetual § SEK 55,856,727 – –Sweden total 16,302 8.21


§ All holdings are unquoted securities.The comparative percentage figures in brackets are as at 30 September 2014.



45


European Property Fund

Notes

Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Income

Net capital losses 2 (16,573) (21,988) (16,573) (21,988)

Revenue 3 14,941 16,757 8,937 10,512

Expenses 4 (8,300) (9,036) (2,122) (2,636)

Finance costs: Interest 6 (35) (30) (5) (7)


Taxation 5 130 58 (74) (120)



Finance costs: Distributions 6 (6,739) (7,749) (6,739) (7,749)

Change in net assets attributable to shareholders from investment activities (16,576) (21,988) (16,576) (21,988)

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERSFor the year ended 30 September 2015



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Opening net assets attributable to shareholders 219,106 278,781 219,106 278,781


Amounts receivable on issue of shares 1,417 10,988 1,417 10,988

Amounts payable on cancellation of shares (7,404) (50,669) (7,404) (50,669)

(5,987) (39,681) (5,987) (39,681)

Change in net assets attributable to shareholders from investment activities (see above) (16,576) (21,988) (16,576) (21,988)

Retained distribution on accumulation shares 1,997 1,994 1,997 1,994

Closing net assets attributable to shareholders 198,540 219,106 198,540 219,106

STATEMENT OF TOTAL RETURNFor the year ended 30 September 2015



46

BALANCE SHEETAs at 30 September 2015



Notes

As at30.09.15

£000

As at30.09.14

£000

As at30.09.15

£000

As at30.09.14

£000

Assets:

Investment assets 158,572 173,630 157,510 176,870

Debtors 7 5,091 6,752 12,997 15,822

Cash equivalents 21,769 22,105 21,769 22,105

Cash and bank balances 31,002 25,931 8,801 7,564

Total other assets 57,862 54,788 43,567 45,491

Total assets 216,434 228,418 201,077 222,361

Liabilities:

Creditors 8 (16,248) (7,212) (891) (1,155)

Distribution payable on income shares (1,646) (2,100) (1,646) (2,100)

Total liabilities (17,894) (9,312) (2,537) (3,255)

Net assets attributable to shareholders 198,540 219,106 198,540 219,106



47



Notes

Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Net cash inflow from operating activities 11 7,972 8,424 9,485 7,132


Distributions paid (3,388) (4,482) (3,388) (4,482)

(3,388) (4,482) (3,388) (4,482)

Taxation

Taxation paid (1,542) (1,808) (1,662) (1,720)

(1,542) (1,808) (1,662) (1,720)


Purchases of investments (6,071) (2,846) (7,833) (1,562)

Sales of investments 16,470 30,696 11,434 31,704

Miscellaneous charges (2) (1) (2) (1)

10,397 27,849 3,599 30,141

Financing

Amounts received on issue of shares 1,415 10,987 1,415 10,987

Amounts paid on cancellation of shares (7,490) (50,687) (7,490) (50,687)

Exchange rate movement (2,629) (3,188) (1,058) (3,447)

(8,704) (42,888) (7,133) (43,147)

Increase/(decrease) in cash in the year 10 4,735 (12,905) 901 (12,076)

Net cash at the start of the year 10 48,036 60,941 29,669 41,745

Net cash at the end of the year 10 52,771 48,036 30,570 29,669

CASH FLOW STATEMENTFor the year ended 30 September 2015



48

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting basis and policiesPlease see pages 7 and 8 for accounting basis and policies.




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Currency (losses)/gains on other capital items (541) 210 – –

Direct property losses (16,131) (22,769) – –

Expenses relating to the purchase and sale of investments (2) (1) (2) (1)

Forward currency contracts gains 17 19 17 19

Non-derivative securities gains/(losses) 84 553 (16,588) (22,006)

Net capital losses* (16,573) (21,988) (16,573) (21,988)

* Total realised losses for the year were £14,689,000 (2014: gains £3,949,000) and the movement in unrealised losses was £1,884,000 (2014: losses £25,937,000). Included in the realised gains for the year were unrealised gains/(losses) recognised in previous periods.

3 Revenue



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Bank and deposit interest – 114 – –

Interest on debt securities – – 8,553 9,655

Other income 329 10 – 1

Overseas dividends 384 856 384 856

Rental revenue 14,228 15,777 – –

Total revenue 14,941 16,757 8,937 10,512



49


4 Expenses



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

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

ACD’s periodic charge 1,741 2,171 1,741 2,171

Registration fees 208 257 208 257

1,949 2,428 1,949 2,428

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

Depositary’s fee 80 90 80 90

Safe custody fee 5 6 5 6

85 96 85 96

Other expenses:

Administrative expenses 493 598 – –

Audit fee* 220 281 17 12

Electricity 249 269 – –

Insurance 156 146 – –

Legal & Professional fees 362 469 53 72

Maintenance costs 795 724 – –

Other expenses 2 11 1 11

Other fees 960 870 – –

Other property operating expenses 1,483 1,268 – –

Printing & postage expenses 9 7 9 7

Property management fees 878 1,184 – –

Property taxes 638 650 – –

Statement fees 8 10 8 10

Water rates 13 25 – –

6,266 6,512 88 112

Total expenses 8,300 9,036 2,122 2,636

* The audit fee was £284,000 (2014: £281,000) net of VAT.



50




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Overseas tax suffered – 110 74 120

Overseas tax written back (147) – – –

Total current tax for year (see note 5.b) (147) 110 74 120

Deferred tax 17 (168) – –

Total deferred tax for year (see note 5.c) 17 (168) – –

Total tax for the year (130) (58) 74 120

b Factors affecting current tax chargeThe 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%).




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Corporation tax at 20% 1,321 1,538 1,362 1,574

Effects of:

Expenses not deductible for tax purposes 5 – 5 –

Overseas dividends not subject to corporation tax (77) (171) (77) (171)

Overseas tax suffered – 109 74 120

Overseas tax written back (147) – – –

Tax deductible interest distributions (1,249) (1,367) (1,290) (1,403)

(1,468) (1,429) (1,288) (1,454)

Current tax charge for the year (see note 5.a) (147) 109 74 120


c Deferred tax



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

The deferred tax asset is made up as follows:

Asset at start of year (100) 68 – –

Charge/(credit) for the year (see note 5.a) 17 (168) – –

Asset at end of year (83) (100) – –




51




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Gross interest distribution for the six months ended 31 March 3,476 3,707 3,476 3,707

Gross interest distribution for the six months ended 30 September 3,263 4,043 3,263 4,043

6,739 7,750 6,739 7,750

Add: Revenue deducted on cancellation of shares – – – –

Deduct: Revenue received on issue of shares – (1) – (1)

Finance costs: Distributions 6,739 7,749 6,739 7,749

Finance costs: Interest on bank overdrafts 35 30 5 7

Total finance costs 6,774 7,779 6,744 7,756

Reconciliation of distributions for the year to net revenue after taxation

Distributions for the year 6,739 7,749 6,739 7,749

Equalisation on conversions (3) – (3) –


Details of the distributions per share are set out in the distribution tables on pages 56 and 57.

7 Debtors



As at30.09.15

£000

As at30.09.14

£000

As at30.09.15

£000

As at30.09.14

£000

Accrued revenue 350 1,284 12,813 15,455

Amounts due from Aviva Investors International Property Fund* 163 334 163 334

Deferred tax debtor 83 100 – –

Other debtors 909 1,546 – –

Overseas tax recoverable 21 33 21 33

Prepaid expenses 1,221 1,176 – –

VAT recoverable 2,344 2,279 – –

Total debtors 5,091 6,752 12,997 15,822

* Aviva Investors International Property Fund (AIIPF) was terminated on 21 January 2011 and all of its assets transferred to the Company. AIIPF is in the process of being wound up. The proceeds of this winding up exercise are recorded as Amounts due from Aviva Investors International Property Fund until final settlement.




52

8 Creditors



As at30.09.15

£000

As at30.09.14

£000

As at30.09.15

£000

As at30.09.14

£000

Accrued expenses 868 844 342 307

Amounts payable for cancellation of shares – 87 – 87

Deferred income 9,932 1,105 – –

Income tax payable 564 775 549 761

Other creditors 108 1,046 – –

Overseas tax provision 1,965 471 – –

Refundable rent deposits 94 125 – –

Trade creditors 458 381 – –

VAT payable 2,259 2,378 – –

Total creditors 16,248 7,212 891 1,155



Consolidated£000

Aviva InvestorsEuropean Property Fund

£000


As at 30.09.14 48,036 29,669

Cashflows 4,735 901

As at 30.09.15 52,771 30,570




Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000


Net capital losses 16,573 21,988 16,573 21,988

Taxation (130) (58) 74 120

Decrease/(increase) in debtors (excluding capital items) 1,472 (451) 2,654 (686)

(Decrease)/increase in creditors (excluding capital items) (107) 1,184 21 (51)

Net cash inflow from operating activities 7,972 8,424 9,485 7,132




53

12 Related party transactionsManagement 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 management charges was £150,000 (2014: £167,000) and registration fees was £18,000 (2014: £20,000). 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 8.

Distributions payable to the ACD and related parties of the ACD during the year amounted to £3,391,000 (2014: £5,326,000). The amount outstanding at the year end was £1,647,000 (2014: £2,779,000). 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 Ltd is paid by the ACD.

Holdings at the year end and movements during the year are as follows:


Movement(shares)


ACD and related parties (share class A (GBP) income) 1,827,132 – 1,827,132

ACD and related parties (share class R (GBP) income) 6,685,119 (1,289,711) 7,974,830

ACD and related parties (share class I (GBP) income) 112,383,043 913,346 111,469,697

ACD and related parties (share class A (EUR) accumulation) 7,056,017 18,550 7,037,467

ACD and related parties (share class I (EUR) accumulation) – (39,393,241) 39,393,241

The ACD and related parties of the ACD are ineligible to vote at any general meeting.

13 Shareholder fundsThe Fund currently has 3 share classes: Classes A and R (Retail) and Class I (Institutional). The annual management charges are as follows:

Class A: 1.50%Class R: 1.50%Class I: 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 39. The distributions per share class are given in the distribution tables on pages 56 and 57. All the share classes have the same rights on winding up.




54

14 Derivatives and other financial instrumentsThe policies applied in the management of financial instruments are set out on page 8.

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

Currency exposuresAt the year end date, 101.18% (2014: 100.47%) of the net assets of the Company were denominated in currencies other than sterling with the effect that the balance sheet and total return can be significantly affected by currency movements.

At the year end date, 101.18% (2014: 100.47%) 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.

Currency


Consolidated Aviva Investors European Property Fund


£000

Monetaryexposure

£000Total£000


£000

Monetaryexposure

£000Total£000

30.09.15 30.09.15 30.09.15 30.09.15 30.09.15 30.09.15

Euro 143,364 40,386 183,750 141,149 41,912 183,061

Norwegian Krone 59 – 59 59 – 59

Swedish Krona 17,390 (313) 17,077 16,302 1,464 17,766

Currency




£000

Monetaryexposure

£000Total£000


£000

Monetaryexposure

£000Total£000

30.09.14 30.09.14 30.09.14 30.09.14 30.09.14 30.09.14

Euro 172,978 41,914 214,892 159,114 39,176 198,290

Swedish Krona 2,884 2,361 5,245 17,756 4,091 21,847

The interest rate profile of the financial assets and liabilities at 30 September 2015 was:

Currency


FloatingRate£000

FixedRate£000

None£000

Total£000

FloatingRate£000

FixedRate£000

None£000

Total£000

Financial Assets

Sterling 189 – 2 191 189 – 2 191

Euro 42,863 154 140,733 183,750 91,167 69,631 22,263 183,061

Norwegian Krone – – 59 59 – – 59 59

Swedish Krona 438 – 16,639 17,077 159 14,370 3,237 17,766


Sterling – – (2,537) (2,537) – – (2,537) (2,537)

Total 43,490 154 154,896 198,540 91,515 84,001 23,024 198,540




55

14 Derivatives and other financial instruments (continued)Interest rate risk profile of financial assets and financial liabilities (continued)The interest rate profile of the financial assets and liabilities at 30 September 2014 was:

Currency


FloatingRate£000

FixedRate£000

None£000

Total£000

FloatingRate£000

FixedRate£000

None£000

Total£000

Financial Assets

Sterling 2,258 – – 2,258 2,258 – – 2,258

Euro 43,174 168 171,550 214,892 97,446 78,452 22,392 198,290

Swedish Krona 2,604 – 2,641 5,245 3,409 15,792 2,646 21,847


Sterling – – (3,289) (3,289) – – (3,289) (3,289)

Euro – – – – – – – –

Swedish Krona – – – – – – – –

Total 48,036 168 170,902 219,106 103,113 94,244 21,749 219,106

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 where applicable.


Fixed rate financial assets weightedaverage interest rate

%

Fixed rate financial assets weighted average period for which rate is fixed

Years

Currency 30.09.15 30.09.14 30.09.15 30.09.14

Euro 6.38 6.37 5 6

Swedish Krona 4.76 4.76 8 9

15 Portfolio transaction costs



Year ended30.09.15

£000

Year ended30.09.14

£000

Year ended30.09.15

£000

Year ended30.09.14

£000

Analysis of total purchase costs

Purchases in year before transaction costs 7,889 1,335 7,889 1,335

Commissions 2 1 2 1

Taxes 20 – 20 –

Total purchase costs 22 1 22 1

Gross purchases total 7,911 1,336 7,911 1,336

Analysis of total sale costs

Gross sales before transaction costs 11,541 31,734 11,541 31,734

Commissions (2) (30) (2) (30)

Taxes – – – –

Total sale costs (2) (30) (2) (30)

Total sales net of transaction costs 11,539 31,704 11,539 31,704

16 Post balance sheet eventsAfter the midday valuation on 8 December 2015, dealing in the Fund was suspended and the investors were informed of the ACD’s intention to close the Fund. The indirect property holdings were sold on 9 December 2015 and the properties were marketed for sale in January 2016.




56

DISTRIBUTION TABLES

Final distribution payable in pence/cents per share for the six months ended 30 September 2015




30 November2015


30 November2014


Group 2 0.6318p 0.1264p 0.5054p 0.5158p 1.0212p 1.2468p


Group 2 1.4804c 0.2961c 1.1843c 0.0000c 1.1843c 1.3710c

Class R (GBP) Group 1 1.3278p 0.2656p 1.0622p – 1.0622p 1.2933p

Group 2 0.6614p 0.1323p 0.5291p 0.5331p 1.0622p 1.2933p

Class I (EUR) Group 1 1.6438p 0.3288p 1.3150p – 1.3150p 1.6660p

Group 2 0.8991p 0.1798p 0.7193p 0.5957p 1.3150p 1.6660p




30 November2015


30 November2014


Group 2 1.4883c 0.2977c 1.1906c 0.3448c 1.5354c 1.7391c


Group 2 2.0529c 0.4106c 1.6423c 1.4460c 3.0883c 3.9385c

Class I (EUR) Group 1 2.6996c 0.5399c 2.1597c – 2.1597c 2.2839c

Group 2 1.4945c 0.2989c 1.1956c 0.9641c 2.1597c 2.2839c

Final DistributionGroup 1 shares are those shares purchased at or before 12:00 noon on 31 March 2015.Group 2 shares are those shares purchased after 12:00 noon on 31 March 2015.



57

Interim distribution paid in pence/cents per share for the six months ended 31 March 2015




paid31 May 2015


paid31 May 2014


Group 2 0.4420p 0.0884p 0.3536p 0.7259p 1.0795p 0.9935p


Group 2 0.6703c 0.1341c 0.5362c 0.7365c 1.2727c 1.0703c

Class R (GBP) Group 1 1.3249p 0.2650p 1.0599p – 1.0599p 1.0205p

Group 2 0.3088p 0.0618p 0.2470p 0.8129p 1.0599p 1.0205p

Class I (EUR) Group 1 1.7435p 0.3487p 1.3948p – 1.3948p 1.3013p

Group 2 0.5951p 0.1190p 0.4761p 0.9187p 1.3948p 1.3013p




paid31 May 2015


paid31 May 2014


Group 2 0.8688c 0.1738c 0.6950c 0.9395c 1.6345c 1.2294c


Group 2 1.2851c 0.2570c 1.0281c 2.1285c 3.1566c 3.0470c

Class I (EUR) Group 1 2.8629c 0.5726c 2.2903c – 2.2903c 1.7917c

Group 2 2.2913c 0.4583c 1.8330c 0.4573c 2.2903c 1.7917c

Interim DistributionGroup 1 shares are those shares purchased at or before 12:00 noon on 30 September 2014.Group 2 shares are those shares purchased after 12:00 noon on 30 September 2014.

DISTRIBUTION TABLES (CONTINUED)


Statement of the Authorised Corporate Director’s Responsibilities and Authorised Corporate Director’s Statement

58

The Collective Investment Schemes Sourcebook of the Financial Conduct Authority requires the Authorised Corporate Director (ACD) to prepare financial statements for each accounting period which give a true and fair view of the financial position of the Company at the period end and of the net income and net gains or losses on the scheme property of the Company for the year 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.

We hereby approve the Report and Financial Statements of Aviva Investors Property Funds ICVC for the year ended 30 September 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 BuckleDirector

S EbenstonDirector27 January 2016

STATEMENT OF THE AUTHORISED CORPORATE DIRECTOR’S RESPONSIBILITIES

AUTHORISED CORPORATE DIRECTOR’S STATEMENT

The ACD is required to keep proper accounting records and to manage the Company in accordance with the Regulations and the Instrument of Incorporation.

The ACD is responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities.


Statement of the Depositary’s Responsibilities and Depositary’s Report to the Shareholders

59

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 Services 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.

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 BranchLondon27 January 2016

STATEMENT OF THE DEPOSITARY’S RESPONSIBILITIES

DEPOSITARY’S REPORT TO THE SHAREHOLDERS


Independent Property Valuers’ ReportS To The Shareholders

60

We confirm that we have valued the immovables of Aviva Investors Asia Pacific Property Funds ICVC as at 30 September 2015 in accordance with the regulations and Statements of Asset Valuation and Guidance notes published by the Royal Institution of Chartered Surveyors. The reported figure represents the sum of the market values of those individual immovables.

Each property is inspected by us at the time of purchase and subsequently at least once each year. We are of the opinion that, as at 30 September 2015, the market value of all the immovables of Aviva Investors Property Funds ICVC at respective countries were 145,750,000 Australian Dollars, 7,700,000,000 Japanese Yen and 84,000,000 New Zealand Dollars.

The valuation of each immovable is considered individually and excludes any additional value which might arise by the aggregation of the entire portfolio or a group of properties for sale to one purchaser. No allowance has been made for any expenses of realisation or for any liability for taxation which might arise on disposal.

Jones Lang LaSalle Property Consultants P.L.Licenced Appraisers, Singapore27 January 2016

INDEPENDENT PROPERTY VALUERS’ REPORTS TO THE SHAREHOLDERS

We confirm that we have valued the immovables of Aviva Investors European Property Funds ICVC as at 30 September 2015 in accordance with the regulations and RICS Valuation – Professional Standards, March 2012 published by the Royal Institution of Chartered Surveyors. The reported figure represents the sum of the market values of those individual immovables.

Each property is inspected by us at the time of purchase and subsequently at least once each year. We are of the opinion that, as at 30 September 2015, the market value of the immovables of Aviva Investors Property Funds ICVC were 179,850,000 Euros and 199,000,000 Swedish Krona.

The valuation of each immovable is considered individually and excludes any additional value which might arise by the aggregation of the entire portfolio or a group of properties for sale to one purchaser. No allowance has been made for any expenses of realisation or for any liability for taxation which might arise on disposal.

Jones Lang LaSalle LimitedLondon27 January 2016


Independent Auditors’ Report to the Members of Aviva Investors Property Funds ICVC

61

REPORT ON THE FINANCIAL STATEMENTS

OUR OPINIONIn our opinion the financial statements, defined below:

– give a true and fair view of the financial position of the Company and each of the sub-funds as at 30 September 2015 and of the net revenue and the net capital losses of the scheme property of the Company and each of the sub-funds for the year then ended; and

– have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practice for Authorised Funds, the Collective Investment Schemes sourcebook and the Instrument of Incorporation.

This opinion is to be read in the context of what we say in the remainder of this report.

EMPHASIS OF MATTER – BASIS OF PREPARATIONIn forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in note 1 to the financial statements concerning the basis of accounting for the Aviva Investors Asia Pacific Property Fund and the Aviva Investors European Property Fund, for which the Authorised Corporate Director has confirmed their intention to terminate within one year of the date of approval of the financial statements. Accordingly, the going concern basis of accounting is no longer appropriate and the financial statements for these Funds have been prepared on a basis other than going concern as described in note 1 to the financial statements. No adjustments were necessary in the Funds’ financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities.

WHAT WE HAVE AUDITEDThe financial statements of Aviva Investors Property Funds ICVC (the “Company”), which are prepared by Aviva Investors UK Fund Services Limited (the “Authorised Corporate Director”), comprise:

– the aggregated balance sheet of the Company as at 30 September 2015;

– the aggregated statement of total return of the Company for the year then ended;

– the aggregated statement of change in net assets attributable to shareholders of the Company for the year then ended;

– the aggregated cash flow statement of the Company for the year then ended;

– the balance sheets as at 30 September 2015 together with the statements of total return and statements of changes in net assets attributable to shareholders and cash flow statements for each of the Company’s sub-funds;

– the notes to the Company’s financial statements and each of the Company’s sub-funds’, which include a summary of significant accounting policies and other explanatory information; and

– the distribution tables

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’ issued by the Investment Management Association (the “Statement of Recommended Practice for Authorised Funds”), the Collective Investment Schemes sourcebook and the Instrument of Incorporation.

In applying the financial reporting framework, the Authorised Corporate Director has made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

WHAT AN AUDIT OF FINANCIAL STATEMENTS INVOLVES We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:

– whether the accounting policies are appropriate to the Company’s and each of the Company’s sub-funds circumstances and have been consistently applied and adequately disclosed;

– the reasonableness of significant accounting estimates made by the Authorised Corporate Director; and

– the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Annual Report and Financial Statements (the “Annual Report”) to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

OPINIONS ON MATTERS PRESCRIBED BY THE COLLECTIVE INVESTMENT SCHEMES SOURCEBOOKIn our opinion:

– we have obtained all the information and explanations we consider necessary for the purposes of the audit; and

– the information given in the Authorised Corporate Director’s Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

OTHER MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

PROPRIETY OF ACCOUNTING RECORDS AND INFORMATION AND EXPLANATIONS RECEIVEDUnder the Collective Investment Schemes sourcebook we are required to report to you if, in our opinion:

– proper accounting records have not been kept; or

– the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF AVIVA INVESTORS PROPERTY FUNDS ICVC


Independent Auditors’ Report to the Members of Aviva Investors Property Funds ICVC

62

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF AVIVA INVESTORS PROPERTY FUNDS ICVC (CONTINUED)

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

OUR RESPONSIBILITIES AND THOSE OF THE AUTHORISED FUND MANAGERAs explained more fully in the Statement of Authorised Corporate Director’s Responsibilities Statement set out on page 58, 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 LLPChartered Accountants and Statutory AuditorsLondon27 January 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.


General Information

63

Investments in Aviva Investors Property 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 Key Investor Information Document (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 information contained within this document should not be construed as a recommendation to purchase or sell stocks.

The value of capital and revenue will fluctuate as property values and rental income rise and fall and the value of dividends, Government and other public securities and units in collective investment schemes change.

Property valuations are a matter of opinion and all properties are valued monthly by an independent valuer. Market conditions may mean certain property valuations are not easily realisable. Investors may not be able to switch or cash in their investment when they want because property in the Fund may not be readily saleable. If this is the case, we may defer a request to cash in shares. Dealing in the Aviva Investors Asia Pacific Property Fund and the Aviva Investors European Property Fund is suspended and the Funds are in the process of being closed.

Publication of PricesInformation on the prices of Shares will be available by calling 0800 051 2003 or on the internet at www.avivainvestors.com. Calls to this number may be recorded for training or monitoring purposes. Calls are free from landlines and mobiles.

GENERAL INFORMATION

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.

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