WARRIOR II Fund January 2008 Thames River WARRIOR II Fund - - PowerPoint PPT Presentation

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Thames River

WARRIOR II

Fund

January 2008

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Thames River

WARRIOR II

Fund

(Thames River Alternative Strategies Limited)

Opportunistic Multi-Manager Managed by Ken Kinsey-Quick January 2008

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Contents

Industry Background Thames River Capital Multi Manager Team Investment Philosophy, S trategy and Process Thames River Warrior II Fund

• Core Portfolio
• S

eed Portfolio

• S

pecial S ituations Portfolio S ummary Appendix

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

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After 10 years w e stand before a fork in the path…

LEFT: Institutional (single digit) LEFT: Institutional (single digit) RIGHT: Innovative (double digits) RIGHT: Innovative (double digits)

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Hedge Fund industry performance

Source: CSFB /Tremont Hedge Fund Index

Returns Falling Tighter Risk Management

,Monthly Rate of Return

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Consistent Sharpe Ratio

Source: CSFB/ Tremont Hedge Fund Index

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Thames River Capital

Absolute return orientated integrated asset manager Established January 1998 Assets under management $12.4bn (estimated as at 31.12.07) 160 staff

Staff Assets Under Management

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

15 17 27 36 48 59 80 88 106 160 20 40 60 80 100 120 140 98 99 00 01 02 03 04 05 06 07 The above data includes Nevsky Capital LLP which is an affiliate of Thames River Capital LLP.

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Fund Structure

Team Assets as at 31.12.07

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 $555m $873m $4,367m $102m $2,045m $1,600m $2,857m

ASSETS

MULTI MANAGER

TRADITIONAL

$28m 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 Note: Global Equities are managed by Nevsky Capital LLP, an affiliate of Thames River Capital LLP. TRC assets estimated as at 31.12.07 Global Boutiques Balanced Managed Cautious Managed Distribution Equity Managed Eastern European Global Emerging Mkts European Opps European Abs. Return Emerging Asia Longstone

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Organisational Structure

160 staff* as at 31.12.07

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

Global Equities - 33 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 David Naughtin Dominic Booth Keith Gyles Ryan Hayward Alex Rackwitz Niall O’Connor 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 Samantha Little 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 FUND MANAGEMENT Financial Control - 10 Adrian Johnson Maggie Cowell Mark Denny Abigail Kuti Katherine Gregory Ann-Marie King Michael Woolley Hina Tailor Stephen Basford Petra Fleming 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 Chief Financial Officer Loudon Greenlees Operations - 6 Matthew Orchard Joe Allen Nadia Samuels Marcus Horne Emma Clarke Matthew Grigg Investment Admin - 9 Daniel Stanford Andrew White Michael Baker Matthew Inglis Mark Francis Nuno Vieira Kyle Edwards-Brookes Lucien Najev Jack Mair IT and Application Support - 7 Neil Tunley Craig Pescod Gary Dolan Robert Cockerill Ali Samiei Alex Risby Nicholas McKay Facilities - 1 Jeremy Woolcock Multi-Manager Hedge - 7 Ken Kinsey-Quick Alex Kuiper Bill Muysken James Rous Stan Chaudhry Sheena Wilkinson Christina Wiens Elkington Japan Equities - 5 Huw Llewellyn Mark Fawcett Paul Colaco Brent Smith James Pratt Property - 9 Chris Turner Marcus Phayre-Mudge James Wilkinson Joanne Elliott Karim Pabani Christian Roos George Gay Nicola Williamson Angelique Ello Multi-Manager Traditional - 5 Robert Burdett Gary Potter Anthony Willis Paul Green Kelly Prior SALES Marketing - 7 Michael Warren** Denise Ruegg Belinda Salmon Tamsin Webb Ben Harris Philippa Peel Leo Mansfield Secretarial – 7 Melanie Williams Anne Lamont Helen Stone Natalie Hayes Vanessa Simpson Samantha Fry Odette Miseria Sales - 17 Edward Morse** Matthew Sethard-Wright Martin Weisinger James Young Simon King Dean Kushin James Beddall Sarah Dillon Jason Anderson Paul Moulton Nigel Sillitoe Vanessa Lawley Hendrik Heicks Tom Ormrod Gemma Munford Matthew Stinchcombe Gloria McCleod

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Investment Team

Experienced… Focused… Innovative

8 Investment Professionals

Christina Wiens Elkington Sheena Wilkinson Stan Chaudhry James Rous TBA Bill Muysken Alex Kuiper Ken Kinsey-Quick Management Risk Investment Risk Senior Fund Administrator 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 Innovative Active risk management Dynamic portfolio management

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

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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 Warrior / II Fund

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

Note: targets are not guaranteed

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Thames River Warrior II Fund

Characteristics

No beta to equity or bond markets – pure alpha Dynamic allocation process

• Currency Alpha sub

Currency Alpha sub-

• portfolio (0

portfolio (0-

• 10%

) 10% )

Multi-strategy Multi pronged approach “Rising Stars” focus

Opportunistic absolute return focus Opportunistic absolute return focus

Option on diversified multi-strategy portfolio based on Sentinel

• Leveraged sub

Leveraged sub-

• portfolio (0

portfolio (0-

• 10%

) 10% )

Higher return opportunities, ideal 1-5% allocations Unconventional investments

• Special situations sub

Special situations sub-

• portfolio (0

portfolio (0-

• 50%

) 50% )

Developed by fund manager over 10 year period Flexible to adapt to the investment environment

Robust investment process Robust investment process

Absolute parameters Portfolio volatility < MSCI World Index Relatively lower leveraged managers

Tight risk management Tight risk management

On an absolute basis By managers relative to their style peers Strategic leverage at portfolio level

Moderate leverage Moderate leverage

0-10 managers, ideal 3-5% allocations “Equity” stakes, fee rebates, capacity negotiated

• Seed sub

Seed sub-

• portfolio (0

portfolio (0-

• 33%

) 33% )

5-15 managers, ideal 5-15% allocations 0-33% allocations to any one style

• Core sub

Core sub-

• portfolio (50

portfolio (50-

• 100%

) 100% )

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Core Portfolio (50-100%)

High conviction 5-15% manager positions (Bottom up)

• Top 10 = 75%
• f Warrior (ideally)

High conviction 0-33% strategy weightings (Top down)

• Currently 0%

FI Arbitrage, 30% Equity L/ S Current theme(s)

• ‘ Best idea’ funds

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Seeding Portfolio (0-33%)

New Hedge Fund Performance

Enhanced investment returns through participation in the “new manager outperformance” phenomenon. Empirical evidence has shown that newer hedge funds tend to significantly outperform established hedge funds even when adjusted for survivorship bias.

Source: Development of an Analytical Framework for Hedge Fund Investment

Life of Fund (months) Annual Attrition Rate: 3-4% p.a.

Source: UBS (data from Eurohedge) Return (%)

Time Period

Average Excess Return 6 12 18 24 30 36 2 4 6 8 10 12 14 Cumulative Average Excess Return Closing NAV (Inception = 1,000) 12 48 24 60 36 500 1,000 1,500 2,000 2,500

New Funds

New Funds of ZCM / Hedge Data

Seeding: Risk

Closure rate ≠ failure rate Performance of terminated European Long/Short funds

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Special Situations Portfolio (0-50%)

Higher return opportunities

• e.g. biotech long bias, focused long only

New hedge fund strategies

• e.g. energy, direct lending, structured credit

One-off opportunities

• e.g. energy and commodities, credit

“ Off-piste” strategies

• e.g. carbon trading, factoring, pre-IPO

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95 100 105 110 115 120 125 130 135 140 Dec 03 Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Rebased to $100 Thames River Legion Portfolio SSB 3 Month T Bill + 150bp p.a.

Leveraged Portfolio (0-10%)

Source: Pertrac Dec-03 to Dec-07 Note: Investors in cash are not exposed to capital risk Annualised Return +7.4% Standard Deviation 3.4% Worst Drawdown -2.7% Annualised Return +4.9%

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Thames River Warrior II Summary Portfolio Snapshot

M&G Episode EUR 6.5% GLG Emerging Markets 6.5% BlueCrest Strategic 6.4% Other 43.2% Bennelong Global Special Opps 6.2% SOLA I E 6.7% Force Select 4.7% MPC Pilgrim Select EUR 4.7% Asian CRC 4.8% Paulson Credit Opps II 5.1% Castlerigg Global Select 5.2%

Top Ten Manager Allocation (31 December 2007) Portfolio Allocation (31 December 2007)

Source: TRC, 31.12.07

Seed 1.7% Special Sits 33.5% Core 62.4% Currency 1.2% Leverad 1.3%

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Warrior – Sub Portfolios

End of Quarter Allocations of Sub Portfolios 2003 - 2007

Source: TRC, 31.12.07 Thames River Warrior End of Quarter Sub Portfolio Breakdow ns 2003 – 2007

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 % of fund Core Seed Leveraged Special Situations FX Index

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Warrior Performance

Source: Pertrac; Jan-03 (Ken Kinsey-Quick took over management of the fund) to 31.12.07 (est) Note: Investors in cash are not exposed to capital risk Note: Investors in cash are not exposed to capital risk

100 120 140 160 180 200 220 240 Jan 03 Apr 03 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04 Oct 04 Jan 05 Apr 05 Jul 05 Oct 05 Jan 06 Apr 06 Jul 06 Oct 06 Jan 07 Apr 07 Jul 07 Oct 07 Rebased to $100

Thames River Warrior Fund ($) Annualised Return +14.2% Standard Deviation 5.4% Worst Drawdown -2.9% 2007 +26.98% 2006 +15.7% 2005 +8.3% 2004 +8.2% 2003 +12.7%

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Thames River Warrior Fund

Performance

Source: Investhedge Multi-strategy category, Pertrac

Note: Ken Kinsey-Quick assumed responsibility for the management of the Fund in January 2003 Thames River Warrior Fund Class A ($) Monthly Rolling 1 Year Return vs InvestHedge GMS Universe (646) Jan-2003 to Sep-2007

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Thames River Warrior Fund

Performance

Source: Investhedge Multi-strategy category, Petrac

Note: Ken Kinsey-Quick assumed responsibility for the management of the Fund in January 2003 Thames River Warrior Fund Class A ($) Monthly Rolling 3 Year Return vs InvestHedge Global Multi-Strategy Universe (596) Jan-2003 to Sep-2007

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Thames River Warrior Fund

Performance in negative equity markets

Source: Petrac

Warrior vs MSCI-W (negative months for index)

• 30.00%
• 25.00%
• 20.00%
• 15.00%
• 10.00%
• 5.00%

0.00% 5.00% 10.00%

Jan-03 Feb-03 Mar-03 Mar-04 Apr-04 Jul-04 Jan-05 Mar-05 Apr-05 Oct-05 Feb-06 May-06 Feb-07 Jun-07 Jul-07 Aug-07 Nov-07 Dec-07

Warrior MSCI World (Gross)

Total

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Summary

Experienced team Warrior fund positioned to capture excess returns - Opportunistic four pronged approach 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 Focus Focus Range Range Hedge Hedge Ventures Ventures 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 with 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,

• ne of the first in the industry.

Ken was also involved in the founding and management of 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.

Ken Kinsey- Quick

Head of Multi- Manager

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 CFA and CAIA charterholder.

James Rous

Assistant Fund Manager

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 Derivatives 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 Lieutenant in the Royal Marines. Alex holds a BA (Hons)

• Engineering S

cience (mechanical engineering, specialising in Control 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 Consulting, where he served as Global Head of Manager Research from 1997 to 2003, and Global Head of Research from 2003 onwards. In 2003 he was named European Investment Consultant of the 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

• n

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.

Bill Muysken

Fund Manager

Alex Kuiper

Fund Manager

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Biographies

Multi-Manager Team

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 responsibilit ies 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 st retching back to

• 1987. Christina studied Biology at the

Universidad Autónoma de Madrid. S heena j oined Thames River Capit al 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 two years

as a Research Analyst at Balance S kills Facilitators, specialising in feasibility studies, and has a BA from the University of Cape Town.

Sheena Wilkinson

Research Analyst

Christina Wiens Elkington

Senior Fund Administrator

S tan j oined Thames River Capital in January 2005. Previously he spent ten years at Deloitte & Touche, most recently holding the position

• f

Assistant Director in their Corporate Finance Group (London & New York) where he specialised in due diligence . He holds both Chart ered Accountant (UK) and Certified Public Accountant (US A) qualifications. He has a BSc in Biochemistry (Honours) from the Imperial College of S cience, Technology & Medicine, University of London and is a CAIA chart erholder.

Stan Chaudhry

Due Diligence Manager

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Warrior Fund

Full Return History

Source: Northern Trust International Fund Administration Services (Ireland) Ltd. (NAV per share monthly return calculated net of fees). Data estimated as at 31.12.07. Ken Kinsey-Quick assumed responsibility for the management of the Fund in January 2003.

WARRIOR FUND (CLASS A - US$)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +2.39 +2.84 +1.18 +2.25 +2.29 +2.26 +4.01

• 0.80

+1.54 +6.65

• 0.90

+0.63 +26.98 Fund-06 +4.81 +1.34 +1.57 +2.10

• 1.26
• 1.32
• 0.34

+0.89

• 0.31

+1.35 +2.78 +3.23 +15.67 Fund-05

• 0.25

+1.14

• 0.48
• 0.78

+0.28 +1.35 +2.14 +0.58 +1.71

• 2.33

+2.42 +2.28 +8.24 Fund-04 +1.36 +1.02 +0.44

• 0.41
• 0.93
• 0.06
• 0.06

+0.02 +1.17 +0.76 +2.69 +1.95 +8.18 Fund-03 +0.42 +0.58 +0.22 +1.16 +1.75 +0.82

• 0.45

+0.63 +2.16 +1.14 +1.20 +2.46 +12.74 Fund-02 +0.09

• 0.10

+1.70 +1.65 +1.19

• 3.47
• 1.45
• 0.53
• 0.75
• 1.08

+0.54 +0.25

• 2.06

Fund-01 +1.76

• 1.31
• 1.37

+0.47 +0.18

• 0.51
• 0.90
• 1.00
• 3.51
• 0.66
• 3.26

+2.30

• 7.69

Fund-00 +3.17 +8.82

• 1.14
• 1.65
• 2.19

+2.25

• 0.37

+3.09 +0.16

• 0.91
• 3.90

+3.27 +10.44 Fund-99 +1.04

• 0.69

+3.18 +2.58 +0.13 +2.88 +0.52 +0.58 +1.21 +1.82 +4.15 +1.84 +20.90 Fund-98

• 4.88

+1.10

• 0.14

+1.87 +4.04 +1.78

shaded area represents performance prior to Ken Kinsey-Quick taking over management

Est

WARRIOR FUND (CLASS B - €)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +2.27 +2.66 +1.06 +2.22 +2.12 +2.17 +3.90

• 0.98

+1.39 +6.50

• 1.00

+0.59 +25.19 Fund-06 +4.45 +1.20 +1.36 +1.87

• 1.49
• 1.54
• 0.56

+0.64

• 0.50

+1.17 +2.66 +3.10 +12.89 Fund-05

• 0.26

+1.08

• 0.57
• 0.85

+0.17 +1.28 +2.05 +0.43 +1.62

• 2.51

+2.28 +2.15 +6.97 Fund-04 +1.40 +1.06 +0.51

• 0.34
• 0.88

+0.02 +0.00 +0.06 +1.16 +0.72 +2.56 +1.88 +8.40 Fund-03

• 0.46

+0.64 +1.88 +1.11 +1.13 +2.28 +6.74 Est

WARRIOR FUND (CLASS C - £)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +2.34 +2.83 +1.17 +2.17 +2.34 +2.21 +3.94

• 0.79

+1.56 +6.60

• 0.87

+0.70 +26.81 Fund-06 +4.60 +1.34 +1.54 +1.96

• 1.32
• 1.42
• 0.40

+0.80

• 0.35

+1.28 +2.70 +3.27 +14.74 Fund-05 +0.01 +1.20

• 0.35
• 0.66

+0.41 +1.47 +2.32 +0.63 +1.81

• 2.28

+2.51 +2.29 +9.65 Fund-04 +1.46 +1.15 +0.63

• 0.20
• 0.73

+0.23 +0.19 +0.32 +1.33 +0.92 +2.77 +2.02 +10.51 Fund-03 +0.70

• 0.75

+0.71 +2.11 +1.24 +1.27 +2.42 +7.92 Est

WARRIOR II FUND (CLASS A - US$)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +2.46 +4.55 +1.16 +1.62 +1.53 +1.47 +3.03 +0.20 +1.12 +3.30

• 2.00

+0.31 +20.28 Fund-06 +2.62 +3.02 +5.72 Est

WARRIOR II FUND (CLASS B - €)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +2.49 +4.42 +1.10 +1.55 +1.53 +1.44 +2.94 +0.13 +0.94 +3.20

• 2.04

+0.28 +19.36 Fund-06 +2.52 +3.04 +5.64

WARRIOR II FUND (CLASS C - £)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Fund-07 +2.46 +4.55 +1.16 +1.58 +1.54 +1.45 +2.93 +0.18 +1.20 +3.37

• 2.02

+0.38 +20.31 Fund-06 +2.54 +3.05 +5.67 Est

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Important Notice

Regulatory Information and Risk Warnings

23-Jan-08 Edition: Jan v1.0 Print Date: Compliance Date: 080123

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, European Absolute Return Fund and Emerging Asia 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 Eligible Counterparties, Professional Clients or investors meeting the FSA’s COBS 4.12 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

• f 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

• ffered 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 SPC, Thames River Kingsway Fund Limited, Thames River Kingsway Plus Fund Limited, Nevsky Fund Limited, Thames River Edo Fund Limited, Thames River Longstone 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 (€), Thames River Global Bond Fund ($), European Absolute Return Fund, European Opportunities Fund and Emerging Asia 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 obtain 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. This document is issued by Thames River Capital, which is regulated by the DFSA. This document is issued by Thames River Capital, which is regulated by the DFSA. This document is only made to wholesale investors who are Clients of Thames River Capital as defined by the DFSA. (080116) 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