Change of Manager of the Canada Life Funds for
Unit Trust, ISA and PEP

Following an in depth review of our Unit Trust, ISA and PEP operation we believe we can improve the service we offer investors by changing the current method of operation. Capita is now the authorised unit trust manager and is responsible for all operations including communication with investors. Capita are authorised and regulated by the Financial Services Authority

The investment management of the funds continues to be carried out by Canada Life. We have an effective track record in the investment management of the funds and as far as this aspect is concerned there will be no change apart from the fund names which will be shown with a “CF” prefix from 29 November 2004 to reflect the change.

Capita Group plc is a FTSE 100 company with over 22,000 staff in the UK. The Capita Financial Group is responsible for fund management and administration services to the financial sector with responsibility for almost £9bn of funds under management. Capita Financial Managers have a wealth of experience in running their own range of funds and on behalf of other unit trust, OEIC, PEP and ISA managers.

We have agreed with Capita that the range of funds offered by Canada Life will continue to
be run on the same basis, and policyholders terms and conditions will be unaffected.

Following the transfer of business Capita sent policyholders an opening statement detailing their holding as at 29 November.

It is our belief that the changes outlined above, combining the strength of two major companies, are in the long term interests of unit holders and will further improve the service that we have endeavoured to provide in the past.

There is no need for policyholders to take any specific action, however, should they have any questions they can contact our Operations on 01707 422100, between 9am and 5pm, Monday to Friday, or alternatively contact their Independent Financial Adviser. If policyholders do not currently have an IFA, details of IFAs in your area can be obtained by calling 0800 085 3250 or by logging on to the IFA Promotions websitre: www.unbiased.co.uk.

The administration of your investment is at Capita Financial who are based in Aldgate, London. The new telephone number to call for your valuation enquiries and dealing instructions is 0845 606 6180 or www.capita.co.uk.