"Ten Plus"

High Interest Deposit Income Fund

The world's only high-interest deposit income fund. The goal is to provide a high stable income, based on eurocurrency Certificates of Deposits. The target yield exceeds 10% annually, hence the name. This provides a superior alternative to volatile high-yield bond funds which often produce loss periods and 5-year benchmarks only marginally higher than LIBOR.

Objective of fund Key benefits of fund Advantages of high-interest deposits vs. High-yield bonds Comparison with high yield benchmarks Target market Fund charges Expected performance How risky is the fund? How is risk managed? Back-testing performance

Objective:

The "high interest deposit income fund" seeks a substantial level of current income by investing in a portfolio of eurocurrency deposits with banks that are rated below investment grade or unrated. High income and price stability is the major objective. Capital appreciation is not an objective. The Fund generally maintains deposits with maturities between 3 - 10 years, paying interest at least annually. To provide medium-term liquidity, around 10% of the fund is deposited on less than one-year terms. The fund should :- provide double digit income yield superior to long-term high-yield bond benchmarks with lower volatility than other fixed income funds

Key benefits of the fund
Income substantially higher than Libor Superior 5-year performance over high yield bond funds Absolute returns irrespective of market conditions Stable performance Expected assistance for default when bank is State controlled or subsidiary of major international bank Higher sharp ratio than any fund

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Deposit Fund Charges Management fee 1.5% p.a. Other expenses 0.3%

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Expected annual Performance USD EUR / GBP Deposit Investment Returns 15.3% 12.9% Less expenses (0.3%) (0.3%) Management fee (1.5%) (1.5%) Expected fund net performance 13.5% 11.1%

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Back testing performance Performance over the past 5 years has been identical to current performance.

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How risky is the fund? The vast majority of the fund is placed with banks with a international credit rating of "BB or better. The lowest rated bank will be "B". Three major risks of fixed income funds are: Default - Our criteria for selecting banks favors those that are State controlled, or subsidiaries of internationally renowned banks due to expected assistance in case of financial difficulties. Convexity Potential loss if sold early. This is not applicable to deposits. Duration Change in interim value if interest rates move. This does not apply to the fund as fixed term deposits do not change interest.

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Risk Management: There are only four events that could negatively impact expected performance: Economic default by bank - Our criteria for selecting banks favors those that are State controlled, or subsidiaries of internationally renowned banks due to expected assistance in case of financial difficulties. Sovereign default - If the state suspends all repayments of foreign debt by any entity within the country, this is most likely only a temporary event. The fund does not envisage investing in any country where sovereign default is likely. Reduction in global deposit rates - Variability in performance is reduced by placing the bulk of the assets in long-term deposits, which provide absolute stable yields, especially compared to bonds. Currency risk - this is avoided as all deposits are placed into the same currency denomination of the fund.

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