Objectives and Approach

The investment strategy of the Fund is deemed by the Directors of the Fund to be capacity constrained. Buying Shares in the Fund (or converting shares from another fund) is capped at a daily limit of EUR 5 million (or the equivalent thereof) per investor until further notice except at the discretion of the Directors of the Fund (you can still sell your Shares daily without limit). The Fund aims to provide long term capital growth (including income) on your investment through the use of an extension strategy, meaning that, in addition to having up to 100% of the Fund’s assets exposed to equity securities (e.g. shares) via long positions and/or synthetic long positions, the intention is to enter into synthetic short positions, to achieve additional investment exposure. The investment adviser (IA) will use the proceeds from these to buy additional synthetic long positions (broadly in the same proportion as the short positions it holds). Through a long position the Fund aims to profit by choosing assets that will rise in value. A short position is the sale of an asset which the Fund does not physically own with the aim of buying it later at a lower price to secure a profit. The Fund seeks to gain at least 70% of any investment exposure to equity securities and other equity-related (E-R) securities, of companies domiciled in, or the main business of which is in, Europe (including former Soviet Union countries) and, when determined appropriate, fixed income (FI) securities (such as bonds), money market instruments (MMIs) (i.e. debt securities with short-term maturities), deposits and cash. The E-R securities include financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used to help achieve the Fund’s investment objective and.the IA intends to generate market leverage via FDIs (i.e. where the Fund gains market exposure in excess of the value of its assets). A significant portion of the Fund’s assets may be invested in total return swaps and contracts for difference. The FI securities and MMIs may be issued by governments, government agencies, companies and supranationals (e.g. the International Bank for Reconstruction and Development) and may be investment grade (i.e. meet a specified level of credit worthiness), non-investment grade or unrated at the time of purchase. At least 50% of the Fund’s investment exposure will be too small and mid capitalisation companies (i.e. companies which, at the time of purchase, form the bottom 30% by market capitalisation of European exchanges). Market capitalisation is the share price of the company multiplied by the number of shares issued. The Fund is actively managed and the IA has discretion to select the Fund’s investments. In doing so, the IA will refer to the S&P Europe BMI Index (the “Index”) when constructing the Fund’s portfolio, and also for risk management purposes to ensure that the active risk (i.e. degree of deviation from the index) taken by the Fund remains appropriate given the Fund’s investment objective and policy. The IA is not bound by the components or weighting of the Index when selecting investments. The IA may also use its discretion to invest in securities not included in the Index in order to take advantage of specific investment opportunities. However, the geographical scope of the investment objective may have the effect of limiting the extent to which the portfolio holdings will deviate from the Index. The Index should be used by shareholders to compare the performance of the Fund. Recommendation: This Fund may not be appropriate for short-term investment.