RISK FACTORS

Market Fluctuations

Investment in the Fund should be regarded as a long-term investment. There can be no guarantee that the full investment objectives of the Fund will be achieved. The Fund’s investments are subject to normal market fluctuations and the risks inherent in all investments, and although the insurance policies and capital guaranteed products offer certain ‘capital protection’ and possibly also minimum guaranteed returns, there are no assurances that capital gains or constant stable performance and/or dividends, if applicable, will be achieved on a consistent basis, or indeed at all. The minimum recommended period of investment in the Fund is five (5) years. Withdrawal in these first five years, whilst possible, could result in the investors getting less then their initial investment.

Exchange Rate Risk

Currency fluctuations between the base currency of a fund, and the investor’s currency of reference, or the currency of the underlying investments of the Fund, may adversely affect the value of investments and the income derived therefrom.

Specific risks of investments in financial products linked to a ‘with profit’ funds.

Investments in insurance policies linked to ‘with profit funds are exposed to any fluctuations in the relevant insurance markets, and in particular to the performance and financial health of the relevant insurance companies issuing the policies beneficially owned by the Fund, and to the reliability and extent of the protections afforded to the insurance policies invested in by the Fund. The value of any insurance policies linked to ‘with profit’ funds can increase or decrease in line with market value adjustment practice, so the surrender value of such insurance policies can go up as well as down during the life of the policy. There are no guarantees on the performance of the ‘with profit’ funds to which the underlying insurance policies are linked, so it follows that the performance and value of the Fund can go up as well as down.

Specific risks of investment in financial products that provide capital guarantees and are linked to the performance of a clearly defined portfolio/index

Most capital guaranteed financial products are tied up for minimum periods, so withdrawal prior to the expiry of such minimum periods could result in the erosion of a part of the capital protected portion of the product. All indices/portfolios are exposed to normal and exceptional market fluctuations. No past performance of any index/portfolio is a guarantee of future performance, and some indices/portfolios are more susceptible then others to political, sociological, meteorological and economic developments.

Diversification Risks

In view of the nature of the underlying investments of the Fund, in particular the time and liquidity elements of the investments, a low level of diversification of the investments to be made by the Fund is to be considered as an additional risk.

Leverage Risks

The Fund can be leveraged through borrowing up to 1,25 times of its Net Asset Value. Leveraged borrowing can increase the income of the Fund but it can equally increase the losses incurred by the Fund, all of which will reflect on the Net Asset Value of the Fund and on the shares in the Fund. THE EXERCISE OF THE LEVERAGE OPTION AVAILABLE TO THE FUND IS A HIGH RISK/HIGH REWARD OPTION AND CAN SIGNIFICANTLY NEGATIVELY OR POSITIVELY AFFECT THE PERFORMANCE OF THE FUND.

"AUTHORISED INVESTOR RESTRICTION

Investment in this Fund is restricted to Authorised Investors, as defined in the Offering Memorandum. The Offering Memorandum can be accessed on this site under the menu bar 'Documents'."