Selecting companies based on their individual attributes (this management style is known as taking a bottom-up approach), with a diversified portfolio of primarily smaller and micro-sized companies. The fund does not follow any particular market index.

The stock selection process uses a ‘traffic-light’ process:

• Does the company have prospects for rising turnover?
• Does the management team of a company make decisions we feel will build real intrinsic value?
• How much financial flexibility is there in the balance sheet?
• Are there low expectations in the company’s share price?

• The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested.
• Investment in the securities of smaller and/or medium sized companies can involve greater risk than may be associated with investment in larger, more established companies. The market for securities in smaller companies may be less liquid than securities in larger companies. This can mean that the Investment Manager may not always be able to buy and sell securities in smaller and/or medium size companies.
• The Fund does not use derivatives extensively, although it may use them in an attempt to reduce risk, reduce costs and to generate additional income. Investing in derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions. Derivatives may expose the Fund to credit risks of counterparties, who may not meet payment obligations. The use of derivatives may result in the fund being leveraged (where economic exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will magnify losses.