MULTI MANAGERS FUNDS, MULTIPLE BENEFITS

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1 Y MULTI MANAGERS FUNDS, MULTIPLE BENEFITS ou're probably well aware of the need to diversify across asset classes - cash, fixed interest, property, local or international shares. But have you considered the benefits of diversifying across fund managers? While over the long-term, good fund managers will provide strong returns, in the short term, a degree of volatility is inevitable. The reality is no single fund manager can perform well all the time, in all market conditions. Nor is it feasible to predict which fund manager will be the next to outperform. The solution is to combine a group of distinct, but complementary fund managers in your portfolio, enabling you to reduce the level of volatility and potentially increase your long-term returns. REASON WHY MULTI MANAGER APPROACH Today s market place has created a genuine requirement for a flexible, balanced approach to investing combined with lower risk. A multi manager approach resolves this dilemma. The multi manager approach provides diversity, consistency and a relatively lower risk profile than the selection of individual funds. This coupled with access to a variety of experienced managers suggests that multi manager is the ideal core portfolio holding for any client. The benefit of a multi manager approach is that the client has access to a range of carefully selected funds via one investment vehicle, usually an open-ended investment company (OEIC) or unit trust. Typically these are referred to as Fund of Funds. The multi manager monitors the performance, switching the asset allocation as macro events change or switching funds that under perform. This allows the freedom to change the asset allocation swiftly as a result of changes in economic outlook whilst the underlying managers can concentrate on the stock selection. EASE and SIMPLICITY Over time investments tend to be acquired piecemeal. Switching them into a multi-manager fund can bring balance to your portfolio, save you time and tax, and increase the performance potential. Furthermore, you will be able to easily value your assets in the multi-manager fund by simply multiplying the number of shares you hold to the latest Net Asset Value price.

2 TAX SAVING Within multi-manager funds, the managers can make changes whenever they see fit without having to pay capital gains tax (CGT). You only pay CGT when you sell, if the gain takes you over your annual CGT limit. Of course, gains within an ISA or SIPP are tax free anyway. GREATER DIVERSIFICATION for your INVESTMENT By investing in a multi manager product (fund of funds) the investor would get a balance portfolio with a range of expertly invested funds. So even if the investor had a relatively modest investment amount or a regular monthly amount to invest, they would get diversification across a range of investment funds thereby reducing risk than if the investor were to invest in individual funds otherwise. The continuous search for new managers and constant monitoring and active asset allocation of the existing portfolio is a specialist field. Even those who believe they can create multi manager funds by selecting an investment mix of low correlated managers are unlikely to have the resources or long standing relationship with such managers and therefore lack a complete understanding which is essential to the process. The main advantage of a multi manager approach is the work that goes on behind the scenes. You have the confidence that the manager is completely committed to the research, selection and monitoring of all the fund managers and it is their responsibility to ensure that the investments they make are the correct ones made at the correct time. The manager will ensure that the portfolio is sufficiently diversified and the combination of managers selected will satisfy all investment styles helping to minimise risk whilst producing consistent performance. Wide diversification is only required when investors do not understand what they are doing Warren Buffett COST EFFECTIVE to the INVESTOR Multi manager investment can also prove more cost efficient for clients as they will be able to gain exposure to a number of investment managers without the expenses associated with individual investments. Multi managers are generally able to negotiate lower charges than individuals making this an advantageous investment for your client to include in a portfolio. SKILLS and EXPERTISE are ESSENTIAL The rationale behind the use of specialist managers is they are able to select managers whose skills and expertise match those of the specific investment objective of the multi manager product. By working with external managers they can identify managers who demonstrate excellent risk return profiles which complement the expertise in the field of global asset allocation and enables them to optimise the returns on portfolios far greater than is available via a single manager approach. By selecting managers that are specialists in their sector the multi manager is able to create a competitive edge compared to more conventional fund managers. Merely being invested in the right sector of the market is no longer sufficient, there are different specialists at work in each area and it is important identify the best in their field and this requires an extensive amount of research. The days when specialist fund managers closely tracked ever rising indices are behind us; experience counts and Multi Managers are constantly searching for successful stock pickers who can make money, even if markets are flat or falling.

3 SUMMARY OF BENEFITS lower levels of risk and potential for uncorrelated returns Ideal investment vehicle for regular savings, school fee planning or mortgage repayment. More stable returns via the use of complimentary managers Tax Benefits Reduction of individual fund manager risk Reduces time conducting due diligence on individual managers Efficient administration compared to individual selection of several managers to create a portfolio Access to multiple managers that may not be possible on an individual basis due to initial premium constraints Access to first class managers across various strategies for a relatively modest investment Ease of valuing an investment portfolio EXCELSIOR MULTIMANAGER FUNDS EXCELSIOR OPPORTUNITIES FUND offers a professionally managed Multi Manager Fund with its own clearly defined investment objective and investment returns. Our dedicated multimanager team aims to create value through a rigorous selection process and ongoing monitoring. Our investment philosophy balances two fundamental objectives: performance expectation and risk control. We believe that active fund management can lead to long-term outperformance, while risk can be controlled by the effective use of diversification. That philosophy is supported by three main themes: REPORTING Our rang of Multimanager funds provides investors with access to a diverse portfolio of first-class managers in an easily accessible package. Full portfolio transparency is key. Each fund is valued weekly and the net asset value (NAV) is published weekly FEES Management Fees within a fund will inevitably have an impact on the investment return to the investor. At Excelsior Worldwide we recognize the importance of keeping management fees to the minimum. To ensure there is no double charging in the Funds we manage, we undertake to rebate any fee income we receive from the underlying managers to the funds which is reflected in Net Asset Value of the fund and in so doing should enhance the investment return. Progresses of the funds that they are invested in are published and monthly factsheets are available from our website ( so keeping track of your investment is simple to manage.

4 GREATER DIVERSIFICATION with LOWER RISK A tailored blend of holdings across a range of; asset classes, geographical sectors and investment styles depending on your choice of fund. Each funds aims to maximize investment returns while at all times minimizing the risk. By having diversification across all the above will greatly minimize any downside in a portfolio. Furthermore, each underlying manager which the EXCELSIOR OPPORTUNITIES FUND invests will have its own level of diversification in assets within it thereby increasing the diversification even further. SPECIALIST KNOWLEDGE Finding the optimal asset allocation is made difficult by the variability of asset class returns. History shows that each of these asset classes should, in the long run, provide a premium above inflation, but may produce a loss over shorter periods. The diagram below shows the returns of each asset class, ranked from best to worst, each year: no asset class is a consistent top or bottom performer. RANKED ASSET CLASS RETURNS JANUARY 1991 TO DECEMBER 2009 Source: Bloomberg, Performance based on index returns At Excelsior Worldwide Limited, we believe that it is impossible to consistently predict asset class performance, a belief supported by much academic research and industry experience. If we can t forecast the future returns of asset classes accurately and consistently in the short term, then a strategic asset allocation across all asset classes is the best way to ensure that you will reap the long term rewards of each asset class. Furthermore, no single investment manager consistently leads in every area and finding the right manager is an ever increasing task. Which is why Excelsior Worldwide has a dedicated team to monitor, select and execute to best interest of the funds and the investors? Each manager in the funds portfolio will be used to complement the entire portfolio and will aim to achieve the best possible return on investment.

5 MONITORING The careful monitoring conducted on a regular basis ensures that style drift, personnel changes or unexpected changes in risk are addressed and if appropriate a manager can be replaced. This process allows investors and advisors to forgo the time consuming and confusing process that is required to select managers for each asset class when creating a diversified portfolio. With multi manager as a core portfolio holding it allows investors to be able to make a long term investment decision, secure in the knowledge that the multi manager will proactively be monitoring their portfolio, creating peace of mind and consistency of returns. This ensures that that there are no concerns regarding chasing performance or market timing as we will ensure that the optimal portfolio is created. Today people who hold cash equivalents feel comfortable. They shouldn t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value Warren Buffett CONTACT INFORMATION EXCELSIOR ASSET MANAGEMENT LIMITED, Level 5, Maeva Tower, Bank Street, Cybercity, Ebène, Republic of Mauritius Tel: Tel: / Fax: Website: Contact: enquiries@excelsiorfunds.net DISCLAIMER This information has been prepared by Excelsior Worldwide. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted by Excelsior Worldwide or any of its affiliates for any loss or damage as a result of any reliance on this information. Further information on the Excelsior investment funds are available on the website;