Distressed Focus Fund October 2007 Thames River Distressed Focus - - PowerPoint PPT Presentation

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Thames River

Distressed Focus

Fund

October 2007

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Thames River

Distressed Focus

Fund

(Thames River Alternative Strategies Limited)

Distressed Focused Multi-Manager Managed by Ken Kinsey-Quick October 2007

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Contents

Industry Background Thames River Capital Multi Manager Team Investment Philosophy, S trategy and Process Thames River Distressed Focus Fund S ummary Appendix

• Full multi-manager product range
• Full multi-manager team biographies

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Distressed Market Environment

The global credit environment is weakening significantly Default rates are at record lows, but are predicted to rise (Figure 1) LBO activity and re-leveraging of balance sheets will contribute to this, even if there is not a significant economic downturn S ince 1997 sub-CCC new issuance has increased dramatically; historically there has been a strong lagged correlation between issuance quality and default rates Withdrawal of liquidity from markets being seen at present will mean that many companies (especially weaker ones) will not be able to refinance Increased defaults present opportunities for distressed debt managers and, historically, rising defaults have preceded outsize returns for these managers (Figure 2)

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Moody’s Trailing 12 Month US High Yield Default Rate

8.7% 10.5% 4.6% 3.3% 1.8% 3.2% 1.4% 1.4% 1.7% 4.0% 4.7% 8.3% 7.3% 3.0% 1.0% 2.6% 0.8% 2.0% 4.5% 5.5% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Forecast

Source: Moody’s Investor Service, JP Morgan, Lehman Brothers Fixed Income Research, Basso Capital Management

Figure 1

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HFRI Distressed Securities Index Performance 1990 to 2006

Source: Pertrac 19/02/07

Figure 2

6.4% 35.7% 25.2% 32.5% 3.8% 19.7% 20.8% 15.3%

• 4.2%

16.9% 2.8% 13.3% 5.3% 29.6% 18.9% 8.3% 15.8% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

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Opportunity

Talented managers are raising capital now in anticipation of an increased opportunity set Experienced managers are setting up funds focused on Europe and on Asia In the meantime, managers are positioning themselves defensively (senior in the capital structure) and are being ‘ paid to wait’ Furthermore, although there have been no recent headline-grabbing ‘ fallen angels’ , many smaller managers have unearthed good ‘ under the radar’ trades Multi-manager approach offers an opportunity to allocate to managers differentiated by:

• geographical focus
• stage of the bankruptcy process focus
• market cap focus
• investment style

The key is to get in early and wait for the cycle to turn, while having access to differentiated opportunities in the meantime

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Performance of various indices

MSCI World S&P 500 HFRI Composite HFRI Distressed Lehman Aggregate Bond Index

0% 2% 4% 6% 8% 10% 12% 14% 16% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Risk Return

Source: Pertrac 16/02/07

Risk / Return January 1990 to December 2006

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Thames River Capital

Absolute return orientated integrated asset manager Established January 1998 Assets under management $11.9bn (as at 28.09.07) 147 staff

Staff Assets Under Management

2,000 4,000 6,000 8,000 10,000 12,000 14,000 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 US Dollars (Million)

15 17 27 36 48 59 80 88 106 147 20 40 60 80 100 120 140 98 99 00 01 02 03 04 05 06 07

The above data include Emerging Market Equity team, Nevsky Capital LLP which is an affiliate of Thames River Capital LLP.

Assets Under Mangement Staff

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Fund Structure

Team Assets as at 28 September 2007

Hillside Apex High Income Nevsky Edo Japan Hedge+

HEDGE FUNDS CLOSED ENDED FUNDS

GLOBAL FIXED EUROPEAN EQUITIES GLOBAL EQUITIES JAPAN EQUITIES MULTI MANAGER

HEDGE

PROPERTY GLOBAL CREDIT

TEAMS

€ Global Bond £ Global Bond $ Global Bond

UCITS III / LONG ONLY FUNDS

European $538m $1,133m $3,588m $104m $1,530m $1,950m $3,050m

ASSETS

NEW FUNDS MULTI MANAGER

TRADITIONAL

Property Growth & Income Kingsway Tybourne Warrior Sentinel Equity Focus Distressed Focus Hedge Ventures Warrior II

2X Currency Alpha 1X Currency Alpha

Kingsway Plus TRPIT Sigma Emerging Asia 2 Nov 2007 Longstone Hedge 1 Dec 2007‡ Global Equities are managed by Nevsky Capital LLP, an affiliate of Thames River Capital LLP. TRC assets data to 28.09.07 Global Boutiques† Balanced Managed† Cautious Managed† Distribution† Equity Managed† Eastern European Global Emerging Mkts European Opps† European Abs. Return†

† Assets n/a - funds launched 01.10.07 ‡ Subject to regulatory approval

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Organisational Structure

146 staff* as at 28 September 2007

Note: (x) denotes years of relevant experience

Sales - 15 Edward Morse Matthew Sethard-Wright Martin Weisinger James Young Simon King Dean Kushin Sarah Dillon James Beddall Jason Anderson Paul Moulton Vanessa Lawley Hendrik Heicks Tom Ormrod Gemma Munford Matthew Stinchcombe Marketing - 6 Michael Warren Denise Ruegg Belinda Salmon Amy Zillmann Tamsin Webb Ben Harris Secretarial - 7 Melanie Williams Anne Lamont Odette Miseria Helen Stone Natalie Hayes Vanessa Simpson Samantha Fry SALES Global Equities - 27 Martin Taylor Nick Barnes Gavin Corr Howard Thomas Katie Blacklock John Davitte Michael Sell Stephen Barrett Clare Hindley Thomas Giles Ian Smith James Richards Yuri Maslov Henry Cobbe Chun-Hou Tan Marc Franklin Joris Nathanson Ben Joseph Alex Kwok James Coats Amanda Cooke Simon Williams Dominic St George Geoff Bamber Rohit Goel William Kirby Warren Turner Multi-Manager Hedge - 8 Ken Kinsey-Quick Alex Kuiper Bill Muysken Nicolas Karageorgis James Rous Stan Chaudhry Sheena Wilkinson Christina Wiens Elkington Japan Equities - 5 Huw Llewellyn Mark Fawcett Paul Colaco Brent Smith James Pratt Global Credit - 15 Michael Mabbutt Bernt Tallaksen Mehrdad Noorani Chris Currington Stefan Benedetti Rodney Thomas Zafar Zohidov Amy Xie Frank Engels Nikolaus Siegfried Sonal Desai Michelle Lynch Rob Leahy Malene Garfield-Davies Simon Holmes European Equities - 10 Tony Zucker John Ferrario Chris Wright Marco Bianchi Jeff Thomson Nicolas Ziegelasch Thomas Brown Jonathan Parsons Jonathan Callow Phil Heady Global Fixed - 3 Paul Thursby Peter Geikie-Cobb Helen Pike Property - 8 Chris Turner Marcus Phayre-Mudge James Wilkinson Joanne Elliott Karim Pabani Christian Roos George Gay Nicola Williamson FUND MANAGEMENT Operations - 5 Matthew Orchard Joe Allen Nadia Samuels Marcus Horne Emma Clarke Investment Admin - 8 Daniel Stanford Andrew White Michael Baker Matthew Inglis Mark Francis Nuno Vieira Kyle Edwards-Brookes Lucien Najev Financial Control - 8 Adrian Johnson Maggie Cowell Mark Denny Abigail Kuti Katherine Gregory Ann-Marie King Michael Woolley Hina Tailor IT and Application Support - 6 Neil Tunley Craig Pescod Gary Dolan Robert Cockerill Ali Samiei Alex Risby Legal - 2 Rosalind Smyth Jason Collison Compliance and Risk - 3 Innes Smith James Tappenden Claudine Edwards ADMINISTRATION AND CONTROL Chief Executive CHARLIE PORTER Executive Team CCARO Toby Hampden-Acton COO Jeremy Charles CFO Loudon Greenlees Facilities - 1 Jeremy Woolcock Multi-Manager Traditional - 5 Robert Burdett Gary Potter Anthony Willis Paul Green Kelly Prior

*Staff count includes Nevsky Capital LLP, an affiliate of Thames River Capital LLP

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Investment Team

Experienced… Focused… Innovative

8 Investment Professionals

Christina Wiens Elkington Sheena Wilkinson Stan Chaudhry James Rous Nicolas Karageorgis Bill Muysken Alex Kuiper Ken Kinsey-Quick Management Risk Investment Risk Administration Risk Process/Compliance Risk Operational Risk Opportunity Risk Management Risk Head of Multi-Manager

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Investment Philosophy

Simple

Primary Objective: Capital Preservation (i.e. don’t lose money)

Note: there is no assurance that the investment objectives will be achieved and capital is not guaranteed.

Secondary Objective: Capital Appreciation (i.e. make money)

Investment Philosophy Investment Philosophy Investment Strategy Investment Strategy Investment Process Investment Process

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Investment Strategy

Adaptable

Investment Philosophy Investment Philosophy Investment Strategy Investment Strategy Investment Process Investment Process

Innovative Active risk management Dynamic portfolio management

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Portfolio Due Diligence Detailed Analysis: Qualitative Detailed Analysis: Quantitative Watch List Screening: Qualitative Screening: Quantitative Information Sources (6,000+ managers)

Investment Process

Robust

Investment Philosophy Investment Philosophy Investment Strategy Investment Strategy Investment Process Investment Process

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Thames River Distressed Focus Fund

Targets

<10% Target max. drawdown no losing 12 months Target loss period 5 - 10% standard deviation Target risk 10%+ p.a. (net) Target return

Note: targets are not guaranteed

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Thames River Distressed Focus

Characteristics

5-20% target allocation Focused portfolio developed by fund manager over 10 year period flexible to adapt to the investment environment Robust investment process absolute parameters portfolio volatility < MSCI World Index Tight risk management

• n an absolute basis

by managers relative to their style peers strategic leverage at portfolio level Moderate leverage global distressed multi-strategy Distressed absolute return style focus

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Thames River Distressed Focus Fund

Summary Portfolio Snapshot

Credit (1) 3.2% Distressed (6) 62.4% Equity L/S (1) 6.3% Event Driven (2) 23.2% Other (1) 4.9% Total 100.0%

Core Holdings Strategy Allocation

Above data as at 1 October 2007 *Estimate - Above data as a 28 Sep 2007 Note: YTD figures relate to underlying managers and may not have been held in the portfolio for this period.

Performance and Portfolio Statistics

Statistics are since inception and based on latest $ estimated valuation (September 07) Source: Northern Trust International Fund Administration Services (Ireland) Ltd. (NAV per share monthly return calculated net of fees) Strategy Month % YTD % Cerberus Distressed n/av +15.70% Davidson Kempner DO* Distressed +0.96% +7.90% Paulson Advantage Plus* Event Driven +1.69% +116.18% Contrarian Emerging Markets* Distressed +4.39% +0.88% Contrarian Equity Equity L/S

• 2.68%
• 8.75%

Annualised Return +11.8% Volatility (Standard Deviation)

• 3.5%

Worst Draw dow n

• 1.60

Sharpe Ratio (3.07%) 2.38 Sortino Ratio (MAR = 0%) 11.28

DISTRESSED FOCUS FUND (CLASS A - US$)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-06 +1.30 +2.33 +0.93 +1.39 +1.65 +3.82 +2.69

• 0.90

+0.77 +14.82 Fund-06 +2.21 +0.00 +1.91 +1.58 +0.62

• 0.38

+0.02 +0.85 +0.20 +2.66 +1.62 +1.45 +13.46 Fund-04 +0.11 +1.03 +0.14

• 0.98

+0.04 +1.14 +1.74 +0.72 +0.77

• 1.57
• 0.04

+0.64 +3.76 Fund-04 +1.72 +0.50 +0.07 +0.38

• 0.03

+1.02 +0.00 +0.46 +1.18 +0.89 +2.41 +1.62 +10.68 Fund-03 +0.61 +0.93 +1.58 +1.47 +0.95 +1.47 +7.21 Est

DISTRESSED FOCUS FUND (CLASS B - €)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +1.18 +2.16 +0.78 +1.22 +1.59 +3.73 +2.52

• 0.99

+0.67 +13.54 Fund-06 +2.01

• 0.15

+1.71 +1.37 +0.39

• 0.59
• 0.13

+0.65 +0.04 +2.46 +1.42 +1.32 +10.97 Fund-05 +0.19 +0.98 +0.06

• 1.04
• 0.06

+1.08 +1.64 +0.57 +0.66

• 1.74
• 0.24

+0.48 +2.56 Fund-04 +1.81 +0.54 +0.16 +0.46 +0.01 +1.09 +0.06 +0.49 +1.19 +0.89 +2.30 +1.55 +11.04 Fund-03 +0.70 +1.05 +1.46 +1.55 +0.90 +1.47 +7.34 Est

DISTRESSED FOCUS FUND (CLASS C - £)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +1.27 +2.32 +0.92 +1.32 +1.71 +3.76 +2.66

• 0.85

+0.85 +14.77 Fund-06 +2.11

• 0.01

+1.90 +1.43 +0.55

• 0.44
• 0.07

+0.76 +0.18 +2.52 +1.53 +1.44 +12.51 Fund-05 +0.36 +1.13 +0.31

• 0.85

+0.19 +1.24 +1.89 +0.76 +0.83

• 1.51
• 0.03

+0.65 +5.04 Fund-04 +1.83 +0.62 +0.32 +0.63 +0.14 +1.29 +0.19 +0.71 +1.39 +1.06 +2.48 +1.78 +13.14 Fund-03 +0.80 +1.12 +1.59 +1.61 +1.10 +1.55 +8.02 Est

DISTRESSED FOCUS FUND (CLASS D - SEK)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +1.14 +2.18 +0.76 +1.13 +1.59 +3.61 +2.38

• 1.02

+0.62 +13.02 Fund-06 +1.96

• 0.18

+1.68 +1.33 +0.34

• 0.64
• 0.15

+0.55

• 0.04

+2.38 +1.35 +1.27 +10.25 Fund-05 +0.18 +0.97 +0.07

• 1.06
• 0.06

+1.10 +1.62 +0.53 +0.63

• 1.81
• 0.27

+0.40 +2.27 Fund-04 +1.87 +0.57 +0.20 +0.52 +0.00 +1.10 +0.07 +0.47 +1.16 +0.85 +2.27 +1.55 +11.13 Fund-03 +1.04 +1.41 +2.46 Est

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Thames River Distressed Focus

Correlations

0.73 HFRI Fund Weighted Composite Index 0.03 Lehman Aggregate Bond Index 0.38 MSCI The World Index – gross 0.39 S&P 500 Total Return Index

Source: Pertrac 15/02/07

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Summary

Experienced team Distressed debt managers have achieved strong risk adj usted performance Historically this has been achieved with low correlation to equity and credit markets Managers are rewarded for taking event risk rather than market risk, by acting as liquidity providers to forced sellers Investment process - is robust Thames River Capital - established with quality infrastructure

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Appendices

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Thames River Multi-Manager Funds

Complete Range

Managed Managed Accounts Accounts Specialist Specialist Funds Funds Principal Principal Funds Funds Structured Structured Products Products Listed Listed Funds Funds

Risk

Sentinel Sentinel Sentinel Focus Range Focus Focus Range Range Hedge Ventures Hedge Hedge Ventures Ventures Warrior / Hedge+ Warrior / Warrior / Hedge+ Hedge+

Return

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Biographies

Multi-Manager Team

Ken j oined Thames River Capital in January 2003. He has over a decade of experience in hedge funds wit h an established track record. He was most recently Chief Investment Officer at Coronation International in London. At the end of 1999, Ken founded Redwood Investment, which was later acquired by Coronation Fund Managers. Prior to that he spent six years as an Investment Manager at Ifabanque in Paris, co- manager of the well known Haussmann Holdings Fund, one of the first in the

• industry. Ken was also involved in the

founding and management

• f

the Challenger funds. The flagship Challenger US Fund, was ranked No.1 by TAS S

• ver

the 3 year period prior to his departure from Ifabanque. He also held positions at CCF Foster & Braithwaite and Blue Circle Pension Investments in London. He has a BComm from the University of Cape Town and holds charters for both the CFA and CAIA. Alex j oined Thames River Capital in S eptember 2001. He was most recently at JP Morgan in London where he developed tactical software for the risk management system used by their Exotic Fixed Income Derivates desk to hedge complex derivative portfolios. Prior to that he held positions in the finance and information technology industries after a short period training as a 2nd Lieut enant in the Royal Marines. Alex holds a BA (Hons) - Engineering S cience (mechanical engineering, specialising in Cont rol Theory) from University College, Oxford and is a CFA charterholder. Bill j oined Thames River Capital in February 2007. Previously he spent 14 years with Mercer Investment Consult ing, where he served as Global Head of Manager Research from 1997 to 2003, and Global Head of Research from 2003

• nwards. In 2003 he was named European

Investment Consultant of t he Year by Global Money Management. During his time at Mercer Bill gained over a decade

• f experience in researching currency and

global macro managers, and advised clients based in 20 different countries. Prior to that Bill spent seven years working for the Australian Government in Canberra, where he was a senior policy advisor on pensions, investment and related issues. Prior to that he spent four years with Prudential Assurance in S ydney as an actuarial analyst. Bill holds a BA in Actuarial S tudies from Macquarie University, and is a Fellow of both the Institute of Actuaries and the Institute of Actuaries of Australia.

Ken Kinsey-Quick HEAD OF MULTI-MANAGER Alex Kuiper Fund Manager Bill Muysken Fund Manager

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Biographies

Multi-Manager Team

Nicolas j oined Thames River Capital in October 2005. He was previously responsible for risk at S pyre Asset Management (fund of hedge funds of the Abbey group) where he developed the risk models, systems and reports. Given his quantitative background, he also took

• n t he role of Quantitative Hedge Funds
• Analyst. Prior to S

pyre, he spent four years at Lehman Brothers, Equity Derivatives and Quantit ative Research. Nicolas holds a Master

• f

Business Administration from the MIT S loan S chool

• f Management (1999), a Licence and

DES S (post-graduate) in Applied Mathematics from Universite Paris-IX Dauphine Paris (1995) and a graduat e degree from Ecole S uperieure de Commerce de Paris (1993). James j oined Thames River Capital in S eptember 2006. Previously he spent two years as an investment manager at PS

• lve

Alternative Investments where he was responsible for hedge fund research, strategy analysis and portfolio management . Prior to that, he served as an officer in the Coldstream Guards for eight years. James has an MA in Philosophy, Politics and Economics and an MBA (with Distinction), both from the University of Oxford. He is a CAIA charterholder and is awaiting the award

• f his CFA charter, having passed all

three levels

• f

the examination programme. S tan j oined Thames River Capital in January 2005. Previously he spent t en years at Deloitt e & Touche, most recent ly holding the position of Assistant Director in their Corporate Finance Group (London & New York) where he specialised in due diligence . He holds bot h Chartered Accountant (UK) and Certified Public Accountant (US A) qualifications. He has a BS c in Biochemistry (Honours) from the Imperial College of S cience, Technology & Medicine, University of London and is a CAIA charterholder.

Nicolas Karageorgis Risk Manager / Assistant Fund Manager James Rous Assistant Fund Manager Stan Chaudhry Due Diligence Manager

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Biographies

Multi-Manager Team

S heena j oined Thames River Capital in S eptember 2000. S he was previously a Claims Assessor for Investors Compensation S cheme Ltd for two years. Prior to that she spent t wo years as a Research Analyst at Balance S kills Facilitators, specialising in feasibility studies, and has a BA from the University

• f Cape Town.

Christina j oined the multi-manager team in May 2004 after having worked for a European hedge fund, Temple Lock, since S eptember 2001. Her responsibilities there included all support functions for the fund and manager, including risk management , financial record-keeping & reporting and trade reconciliation. Prior to Temple Lock, Christina held various senior administrative roles in a wide variety of industries stretching back to

• 1987. Christina studied Biology at the

Universidad Autónoma de Madrid.

Sheena Wilkinson Research Analyst Christina Wiens Elkington Portfolio Management & Administration

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Important Notice

Regulatory Information and Risk Warnings

16-Nov-07 Edition: Oct Final (1) Print Date: Compliance Date: This document is issued for information only by Thames River Capital LLP (“Thames River”) in respect of the funds named below and their relevant sub-funds save for Nevsky Fund Limited and Traditional Funds plc - Eastern European Fund, Global Emerging Markets Fund, European Opportunities Fund and European Absolute Return Fund, which are issued by Nevsky Capital LLP (“Nevsky Capital”). Thames River and Nevsky Capital are both authorised and regulated by the Financial Services Authority (“FSA”). Content relating to unregulated collective investment schemes is only directed at investors meeting the FSA’s Annex 5 categories. It must not be relied upon by non-qualifying persons. It does not constitute an offer by Thames River or Nevsky Capital to enter into any contract/agreement nor is it a solicitation to buy or sell any investment. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. The contents of this document are based upon sources of information believed to be reliable, however, save to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to its accuracy or completeness and, Thames River and Nevsky Capital, their members, officers and employees of the managing member do not accept any liability or responsibility in respect of the information or any views expressed herein. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. This document is not aimed at persons who are residents of any country, including the United States of America ("USA") and South Africa, where the Funds referred to herein are not registered or approved for marketing and/or sale or in which the dissemination of information on the Funds or services is not permitted. This document should not be distributed to any third party without the express approval of Thames River and has been designed for a professional audience only. Funds referred to herein are neither registered under the Securities Act 1933 of the USA, nor are they registered under the Investment Company Act of 1940. Consequently, they cannot be offered for sale or be sold in the USA, its territories, possessions or protectorates under its jurisdiction, nor to nationals, citizens or residents in any of those areas. This document should be read in conjunction with the Prospectus of the relevant fund that will exclusively form the basis of any application and an investment should not be contemplated until the risks of investment and tax implications have been considered fully. Thames River Hillside Apex Fund Segregated Portfolio, Thames River Kingsway Fund Segregated Portfolio, Thames River Kingsway Plus Fund Limited, Nevsky Fund Limited, Thames River Edo Fund Limited, Thames River Sentinel Fund, Thames River Warrior Fund, Thames River Warrior II Fund, Thames River Equity Focus Fund, Thames River Distressed Focus Fund, Thames River 1X Currency Alpha Fund, Thames River Hedge Ventures Limited, Thames River 2X Currency Alpha Fund Limited, Thames River Property Growth & Income Fund Limited and Thames River Tybourne Fund Limited are unregulated collective investment schemes which are not recognised schemes under s.264 of the Financial Services and Markets Act 2000. Thames River Hedge+ is a cell of Thames River Multi Hedge PCC Limited, listed on the London and Channel Islands Stock Exchanges. The Thames River European Fund, Thames River High Income Fund, Eastern European Fund, Thames River Japan Fund, Global Emerging Markets Fund, Thames River Global Bond Fund (£), Thames River Global Bond Fund (€) and Thames River Global Bond Fund ($) are sub-funds of Traditional Funds plc, an open-ended investment company with segregated liability between sub-funds incorporated in Ireland, authorised by the Irish Financial Services Regulatory Authority and listed on the Irish Stock Exchange. This company is a recognised collective investment scheme under s.264 of the Financial Services and Markets Act. TR Property Investment Trust plc is a UK investment trust listed on the London Stock Exchange. Many of the protections provided by the United Kingdom regulatory structure may not apply to investments in these funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. Past performance is not necessarily a guide to future performance. Values may fall as well as rise and you may not get back the amount you invested. Income from investments may fluctuate. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. The unregulated schemes and TR Property Investment Trust plc are permitted to and use gearing as an investment

• strategy. The effect of such gearing is that movements in the price of the schemes will be more volatile than the movements in the prices of their underlying investments. You should
• btain professional advice on taxation where appropriate before proceeding with any investment. You should be aware that investments in higher yielding bonds issued by borrowers with

lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth. Fund charges may be applied in whole or part to capital, which may result in capital erosion. You should be aware of the additional risks associated with investment in emerging and developing markets. The prices of some investments may be extremely volatile. With the exception of TR Property Investment Trust plc and Thames River Hedge+, the funds are not traded on an exchange or recognised market and in common with some of their investments may not be readily realisable. This factor can make it difficult to obtain independent verification of the investment value and the extent of the risks to which they are exposed. (070925) Potential investors should follow the links below for information on any current side letters relating to the schemes. http://w w w .thamesriver.co.uk/dow nloads/disclosures.htm http://w w w .nevskycapital.com/dow nloads/disclosures.htm Notice to Investors: Please note Paying Agents/Representatives for the following countries have been appointed by Traditional Funds plc in accordance with local requirements: Germany, Austria, Switzerland, Malta, Luxembourg, Netherlands. Local language versions of the Traditional Funds plc prospectus and simplified prospectus are available from their offices. For a full list of Paying Agents’ details, please follow the follow ing links: http://w w w .thamesriver.co.uk/pdf/paying_agents.pdf http://w w w .nevskycapital.com/pdf/paying_agents.pdf