VT WoodHill Foundation Absolute Return Fund

VT WoodHill Foundation Absolute Return Fund Introducer Appointed Representative: http://www.valu-trac.com/woodhill Martin Henderson o. +44 (0) 1343 880217 e. martinh@valu-trac.com Michael Bedford o. +44 (0) 1225 938483 e. mike.bedford@woodhillam.co.uk Valu-Trac Investment Management Limited Authorised and regulated by the Financial Conduct Authority (FCA), registration number 145168. This status can be checked with the FCA on 0845 730 0104, or on the FCA website Registered with the CFTC and the NFA as a CTA/CPO Registered in England No: 2428648

Introduction WoodHill Asset Management LLP (WoodHill) is acting as an Introducer Appointed Representative to Valu-Trac Investment Management Limited (Valu-Trac) for work exclusively in connection with the VT WoodHill Foundation Absolute Return Fund (VT WoodHill Fund). 30 million seed capital Open to subscriptions WoodHill is a new company run by Paul Wood and Mike Bedford. Applying for FCA authorization to conduct regulated financial service activities in the UK Paul Wood, CIO, over 25 years of long-only and hedge fund experience Proven track-record of new investment product design Mike Bedford, CEO, over 25 years of equity analysis, sales, IR and corporate strategy Proven track-record of building new investment businesses 2

Founding logic The fund s strategy is to avoid substantial losses. It will aim to participate in a rising market and hedge when the market is at risk. It will only buy financially strong companies that generate economic returns. It will not use forecasts or any market research No third party research used. Proprietary investment research process. It will act with conviction. Management costs are competitive no performance fee. 3

What is the strategy? From day one, the fund will buy a portfolio of between 25 and 40 large capitalisation shares from within the UK equity market. They are selected for strong fundamentals, including a low level of borrowings and earnings growth. The size of each stake in the portfolio is based on after tax profit. A simple stop-loss is applied to each share to further reduce risk. From time to time, using historical market data and selected economic indicators to gauge whether the market is at risk, the fund uses UK-market index futures to protect the full value of the fund. 4

Back-testing the strategy We back-tested the strategy from the beginning of 2008, covering a wide variety of market conditions. The core portfolio is the UK equity market. For clarity, we will call the back-tested fund the Test Fund. Hypothetical simulations are not necessarily indicative of future results. 5

How has the Test Fund performed? Using back tested data from 2008; Volatility is relatively low. The largest monthly drawdown over the past five years was -4% compared to -13% for the UK equity market. Low correlation coefficient with the UK equity market. Since 2008, the CC index is 0.43. Good average returns. The average annual return for the past five years was 10% compared to 2% for the UK equity market index (CAGR was 12%). Returns are protected. Measured in months, the longest losing streak was -4.2% over five months. Hypothetical simulations are not necessarily indicative of future results. 6

How has the Test Fund performed? Back testing from 2008 to present covering an enormous diversity of market conditions 200 180 160 140 120 100 80 Fund Test Fund UK equity mkt. 2008 3% -31% 2009 20% 22% 2010 22% 9% 2011-1% -6% 2012 6% 6% 2013 13% 14% 2014* 3% 1% 60 40 UK equity mkt. avge 10% 2% cagr 12% 1% 31-Dec-07 30-Jun-08 31-Dec-08 30-Jun-09 31-Dec-09 30-Jun-10 31-Dec-10 30-Jun-11 31-Dec-11 30-Jun-12 31-Dec-12 30-Jun-13 31-Dec-13 * To 30th May 2014 Source: Google Finance Hypothetical simulations are not necessarily indicative of future results. 7

How has the Test Fund performed? UK equity mkt. Test Fund* Index return 5% 85% CAGR^ 1% 12% Maximum drawdown 46% 9% Sharpe ratio# 0.82 Volatility 16% 8% Time fully hedged n/a 57% Dividend yield 3.0% 1.7%~ Hypothetical simulations are not necessarily indicative of future results. * Excludes TER costs of about 1.2% per annum ^ to 2013 ~approx. #3.5% Rf 8

How does it do this? Test Fund strategy By combining an active hedging strategy with a UK equity market portfolio. Two* distinct positions will be held at any one time: 1. Fully invested UK equity market portfolio (100% long) 2. Fully hedged UK equity market portfolio (Neutral) * Cash may be held in lieu of equity, dependent on screening process 9

Active hedging strategy Hedging is triggered when the risk/reward in the market is unfavourable. The signals indicating an unfavourable market environment are fixed in nature and provide the quantitative background for the unique empirically-based investment management methodology. 10

An example of the back tested hedging process 2008 120 110 Fund 1 Note the low turnover of the fund 100 90 80 70 0 = net zero 1= 100% long 60 50 40 UK equity mkt. 0 Source: Google Finance Hypothetical simulations are not necessarily indicative of future results. 11

VT WoodHill Foundation Absolute Return Fund (VT WoodHill Fund) ISIN: GB00BMTRT641 SEDOL: BMTRT64 Bloomberg: VTWARNI LN

Stock selection for equity portfolio The VT WoodHill Fund includes an equity screening process for the core portfolio. The equity portfolio will be relatively concentrated with around twenty five to forty names. In-house research focused entirely on fundamental accounting items. Stock selection analysis will concentrate on value, growth and financial stability. If there are no equities that can meet this criteria, cash is the alternative. 13

1 unit =100GBp 101.0 The VT WoodHill Fund Launch date 2 nd June 2014 Fund 100.0 99.0 98.0 UK equity mkt. 97.0 25-Jul-14 23-Jul-14 21-Jul-14 19-Jul-14 17-Jul-14 15-Jul-14 13-Jul-14 11-Jul-14 09-Jul-14 07-Jul-14 05-Jul-14 03-Jul-14 01-Jul-14 29-Jun-14 27-Jun-14 25-Jun-14 23-Jun-14 21-Jun-14 19-Jun-14 17-Jun-14 15-Jun-14 13-Jun-14 11-Jun-14 09-Jun-14 07-Jun-14 05-Jun-14 03-Jun-14 01-Jun-14 30-May-14 Source: Valu-Trac, Google Finance Historical prices are not necessarily indicative of future results. 14

Stock selection for equity portfolio Criteria for inclusion in the portfolio are as follows: UK-listed companies Total debt / equity less than 100% Return on equity above 7% (or notably above corporate financing costs)* A positive record of earnings growth Minimum market capitalization of 1bn with adequate liquidity relevant to the portfolio size. No individual sector will ever account for more than 20% of the portfolio. Stock must be trading above its stop loss. * The minimum acceptable return on equity will change, increase when or if interest rates and consequently the cost of equity increases. 15

An example of the stop-loss method 1600 1500 1400 1300 Share price Petrofac share price (GBp) When the share price is above the stoploss, it may be included in the equity portfolio. 1200 1100 1000 Stop loss Source: Google Finance Hypothetical simulations are not necessarily indicative of future results. 16

Stock selection for equity portfolio The result of the selection criteria is to ensure that all stocks that get into the portfolio must be financially solid, profitable and growing. The stocks are then weighted based on six monthly after tax profit to produce a diverse portfolio that emphasizes growth at a reasonable valuation. For the 18 th July 2014, the current metrics of the portfolio* were as follows; The portfolio contains 29 companies Average weighted market capitalization 39.4bn Trailing PER 13.5x Dividend yield 2.6% * The names and weighting of the holdings in this portfolio are shown in the appendix. 17

Risk control The stock screening process means that the fund will only be invested in companies that are financially strong. Cash will be employed if no equities screen successfully. Stop losses are in place for every individual equity and hedged position. For the equity portfolio, only large and liquid stocks will be considered. Small discretionary flexibility around buying/selling time frame. This is not a hedge fund and there is no use of gearing. Daily trading. 18

VT WoodHill Fund The investment product is called the VT WoodHill Foundation Absolute Return Fund. It is a UK equity-based OEIC product with a 1% annual management fee. Assets under Management of 30.014m (as of 18/7/14). The fund is a UCITS scheme. ACD: Depositary: Custodian: Auditors: Lawyers: Investment Manager: Valu-Trac Investment Management Ltd. National Westminster Bank Plc Bank of New York Mellon SA/NV Johnston Carmichael LLP Dickson Minto WS Valu-Trac Investment Management Ltd. 19

VT WoodHill Foundation Absolute Return Fund Introducer Appointed Representative: http://www.valu-trac.com/woodhill Martin Henderson o. +44 (0) 1343 880217 e. martinh@valu-trac.com Michael Bedford o. +44 (0) 1225 938483 e. mike.bedford@woodhillam.co.uk Valu-Trac Investment Management Limited Authorised and regulated by the Financial Conduct Authority (FCA), registration number 145168. This status can be checked with the FCA on 0845 730 0104, or on the FCA website Registered with the CFTC and the NFA as a CTA/CPO Registered in England No: 2428648

Appendix 21

Paul Wood Background of principals for WoodHill Age 47 Over twenty years of professional investment experience in developed and emerging market equities, commodities, fixed income and currency Investment manager at Morgan Grenfell Partner at $2bn hedge fund Everest Capital (Bermuda and Miami) Partner and investment manager at $8bn hedge fund Sloane Robinson (London) Excellent active management performance record (details available on request) Inventor of, and first patent filed for Fundamental Indexation (patent sold to Research Affiliates this is now a +$70bn AUM business) 1 st Class Hons Degree from the London School of Economics References available on request 22

Background of principals for WoodHill Michael Bedford Chief Executive Officer Age 51 Over twenty five years of professional investment experience (analysis and sales) in emerging market equities (South Africa) and commodities. Director of Barnard Jacobs Mellet (South Africa and UK), Head of non-sa equity sales, Head of Mining Research. Senior Vice President Anglogold Ashanti, Strategy, Planning and Investor Relations (South Africa) Upper second honours degree Mining (ACSM), Chartered Financial Analyst References available on request 23

Martin Henderson Director Investment Management and Research Valu-Trac Investment Management Limited Age 45 Joined Valu-Trac in 1991 after graduating from Edinburgh University with a BSc Hons in Computer Science Responsible for Valu-Trac s fund management and quantitative investment research including developing the Stock Research and Equity Asset Allocation models. Manager of EQT Valu-Trac Equity Income Generation Fund based in Australia Experience in delivering customized stock portfolios based on proprietary research for Europe ex UK and US mandates to Local Government Pension Funds 24

VT WoodHill Fund 18 th July 2014 BHP BLT.L 6.00% BAE BAES.L 1.60% BP BP.L 7.00% Derwent London DLN.L 0.80% Reckitt Benckiser Group RB.L 7.00% Hammerson HMSO.L 1.60% Unilever ULVR.L 7.00% Bunzl BNZL.L 1.30% Prudential plc PRU.L 5.90% Old Mutual OML.L 1.30% AstraZeneca plc AZN.L 5.10% Smith & Nephew SN.L 1.30% HSBC HSBA.L 4.90% London Stock Exchange LSE.L 1.00% Glencore GLEN.L 3.80% Aberdeen AM ADN.L 0.80% SAB SAB.L 3.30% Schroders SDR.L 0.70% Standard Chartered STAN.L 3.30% St. James's Place SJP.L 0.70% Aviva AV.L 2.90% Standard Life SL.L 0.70% Compass Group CPG.L 2.90% Weir WEIR.L 0.70% BT BT.L 2.90% WPP WPP.L 1.80% Legal & General LGEN.L 2.20% Whitbread WTB.L 0.70% Associated British Foods ABF.L 2.10% cash 18.60% short sept ftse 100 future 81.40% 25

How has the Test Fund performed? Back tested three distinct periods; 1. 2008 Lehman s bankruptcy, financial market turmoil 2. 2009 to 2011 Quantitative easing, risk on, risk off trading 3. 2012 to June 2014 Slowing emerging market, improving developed market growth Hypothetical simulations are not necessarily indicative of future results. 26

How has the Test Fund performed? Back testing in 2008 Lehman s bankruptcy, financial market turmoil 120 110 Fund 100 90 80 70 60 50 40 UK equity mkt. 31-Dec-08 30-Nov-08 31-Oct-08 30-Sep-08 31-Aug-08 31-Jul-08 30-Jun-08 31-May-08 30-Apr-08 31-Mar-08 29-Feb-08 31-Jan-08 31-Dec-07 Hypothetical simulations are not necessarily indicative of future results. Source: Google Finance 27

How has the Test Fund performed? Back testing 2009 to 2011 Quantitative easing, risk on, risk off trading 160 140 Fund 120 100 80 UK equity mkt. 60 40 02-Sep-11 02-May-11 02-Jan-11 02-Sep-10 02-May-10 02-Jan-10 02-Sep-09 02-May-09 02-Jan-09 Source: Google Finance Hypothetical simulations are not necessarily indicative of future results. 28

How has the Test Fund performed? Back testing 2012 to 30th May 2014 Slowing emerging market, improving G7 growth 125 120 Fund 115 110 105 100 95 UK equity mkt. 90 85 80 04-May-14 04-Jan-14 04-Sep-13 04-May-13 04-Jan-13 04-Sep-12 04-May-12 04-Jan-12 Source: Google Finance Hypothetical simulations are not necessarily indicative of future results. 29

Warning and Disclaimer The information in this Report is presented by Valu-Trac using all reasonable skill, care and diligence and has been obtained from or is based on third party sources believed to be reliable but is not guaranteed as to its accuracy, completeness or timeliness, nor is it a complete statement or summary of any securities, markets or developments referred to. The information within this Report should not be regarded by recipients as a substitute for the exercise of their own judgement. The information in this Report has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient and is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. In the absence of detailed information about you, your circumstances or your investment portfolio, the information does not in any way constitute investment advice. If you have any doubt about any of the information presented, please consult your stockbroker, accountant, bank manager or other independent financial advisor. Value of investments can fall as well as rise and you may not get back the amount you have invested. Income from an investment may fluctuate in money terms. If the investment involves exposure to a currency other than that in which acquisitions of the investments are invited, changes in the rates of exchange may cause the value of the investment to go up or down. Past performance is not necessarily a guide to future performance. The performance record of Valu-Trac s monthly allocations are shown hypothetically in Local Currency terms. The hypothetical performance measurements are illustrative only and offer no guarantee of future performance, profitable or unprofitable, actual or theoretical. Since hypothetical performance measurements do not represent actual trading they may not reflect the impact that material economic or market factors might have made on a portfolio manager s decisions were the portfolio manager actually managing a client s money. Any opinions expressed in this Report are subject to change without notice and Valu-Trac is not under any obligation to update or keep current the information contained herein. Sources for all tables and graphs herein are Valu-Trac unless otherwise indicated. The information provided is "as is" without any express or implied warranty of any kind including warranties of merchantability, non-infringement of intellectual property, or fitness for any purpose. Because some jurisdictions prohibit the exclusion or limitation of liability for consequential or incidental damages, the above limitation may not apply to you. Users are therefore warned not to rely exclusively on the comments or conclusions within the Report but to carry out their own due diligence before making their own decisions. Unless otherwise stated Equity Market price indices used within this publication are sourced or derived from data supplied by MSCI Inc 2014. Valu-Trac Investment Management Limited and its affiliated companies, employees of Valu-Trac Investment Management Limited and its affiliated companies, or individuals connected to them, may have or have had interests of long or short positions in, and may at any time make purchases and/or sales as principal or agent in, the relevant securities or related financial instruments discussed in this Report. 2014 Valu-Trac Investment Management Limited. Authorised and regulated by the Financial Conduct Authority (FCA), registration number 145168. This status can be checked with the FCA on 0845 730 0104 or on the FCA website (UK). All rights reserved. No part of this Report may be reproduced or distributed in any manner without the written permission of Valu-Trac Investment Management Limited. Valu-Trac is a registered trademark. 30