Source: SVM/Lipper Hindsight, CR - capital return, to last quarter end 30/09/2011. Past performance should not be seen as an indication of future performance. The Board has authorised the Managers to use bank borrowings, allowing increased portfolio investment, and to hedge certain exposures from time to time where the Managers believe this would offer the potential to protect shareholder value. Hedging is typically implemented through Contracts for Difference (CFDs) with UBS Warburg Securities and the total of such exposure is limited to a normal maximum of 15% of the Trust’s Net Asset Value (NAV). CFDs may also be used for the active management of the portfolio (long positions) as an alternative to holding direct company equity exposure.The overall effect of such gearing (that is bank borrowings plus the gross exposure of long positions less any hedging) must not normally exceed 20% of the Trust’s NAV. Additional limits have also been set on individual hedging to assist risk control. Market movements may produce occasional excursions beyond these limits while the Managers take appropriate action. The value of an investment and the income from it may fall as well as rise and investors may not get back the amount originally invested. Investing in smaller companies may increase the volatility of your investment. An Investment Trust is a public limited company, the shares of which are quoted on the London Stock Exchange. Investment Trusts can borrow money, which then can be used to make further investments. In a rising market, this gearing can enhance returns to shareholders. Correspondingly, if the market falls, losses may be greater. Hence, to produce a benefit to shareholders, the level of gearing needs to be carefully judged and monitored. The information in this document does not constitute or contain an offer or invitation for the sale or purchase of any shares in the Fund in any jurisdiction, is not intended to form the basis of any investment decision and does not constitute any recommendation by the Fund, its directors, agents or advisers.