Somerset Capital Fund SICAV plc An Overview - December 2010 Licenced by the Malta Financial Services Authority as a Professional Investor Fund

Somerset Capital Fund A Review A Fund of nine institutional funds Three categories Core Capital (30% equity/70% interest related) Strategic Allocation (60% equity/40% interest related) Global Opportunities (90% equity/10% interest related) All nine funds are present in each category in differing allocations

Somerset Capital Fund Important Features of the Fund Domiciled in Malta, a Member of the E.U. Strong Regulatory Environment Treaty Relationships with Canada, the U.S. and other countries No taxable event until units are sold Risk level can be tailored to investor profile Rigorous rebalancing reduces volatility

Somerset Capital Fund Performance Summary The objective is to achieve the highest return for the lowest volatility for each of the risk classes All three Somerset Funds scored in the top 2% percent of the Morningstar Universe of 26,900 funds. To analyze our performance we compared the five year annual rate of return in combination with the five year volatility as of August 31, 2010.

Somerset Capital Fund Interest Related Funds Pimco Unconstrained Bond Fund A sister to the TOTAL Return Bond Fund managed by Bill Gross Pimco Emerging Market Debt Sovereign and Corporate Debt from Emerging Markets Winchester Convertible Plus Corporate debt and convertible debentures Forest Global Convertible Fund Convertible Arbitrage

Somerset Capital Fund Equity Related Funds Edgewood US Large Cap Growth 22 growth stocks including Apple and RIM Nevsky Capital London-based fund specialising in global equity opportunities run by Martin Taylor Schroders Emerging Opportunities Investments in emerged and emerging markets Schroders Gold and Metals Schroders Global Energy Renaissance Emerging Markets

Somerset Capital Fund Criteria for underlying fund selection Must be easily and quickly liquidated Fund must be greater than $50 million We must meet regularly with the key investment managers We will not purchase individual equities or private placements

Somerset Capital Fund Strategy Long term growth objective (minimum five (5) years) Risk mitigation by rebalancing underlying fund positions Each fund has a target allocation If the allocation is exceeded, units are sold If the allocation is under-weight, units are purchased We cannot time the market

Somerset Capital Fund Investment Committee Target Allocations – Strategic Allocation Fund – December 2010 Investment Fund Target Winchester Convertible 12.5% Forest Global Pimco Unconstrained 11.0% Pimco Emerging 4.0% Nevsky 13.0% Edgewood 16.0% Schroders Energy 5.0% Schroders GEMO 10.0% Schroders Gold & Metal 15.0%

Somerset Capital Fund Management Investment Focus Equities Three Themes – gold, metals and energy, emerged and emerging markets and large cap growth Non-Equities Convertible arbitrage, convertible debentures, and domestic and international bond funds

Somerset Capital Fund Performance Category 2008 2009 2010 Core Capital 2009 2010 Core Capital -15.10% 24.36% 7.98% Strategic Allocation -36.94% 27.68% 8.37% Global Opportunities -42.40% 31.80% 9.12% Dow Jones -33.80% 18.82% 11.02 % S&P 500 -38.48% 23.45% 12.10%

Somerset Capital Fund Growth In Underlying Funds (Long-Term Positions) 2008 2009 2010 Winchester Convertible -15.17% 49.17% 17.93% Forest Global -27.86% 49.65% 4.87% Pimco Emerging -15.73% 28.14% 12.25% Edgewood -28.19% 23.63% 15.03%

Somerset Capital Fund Growth In Underlying Funds (New Acquisitions) 2009 2010 Schroders GEM 55.64% 14.96% Schroders Energy 53.16% 21.03% Nevsky 28.76% 12.45% Pimco Bond Schroders Metals 1.62% 5.73% 15.9%

Somerset Capital Fund Our Outlook Strong emerged and emerging market growth Slow North American recovery due to continuing weakness in the U.S. economy and lack of consumer spending Continuing low inflation Gold, metals and energy prices will remain strong and provide a buffer against economic shocks One strong growth possibility will be U.S. large cap growth stocks now trading at the lowest multiples ever

Somerset Capital Fund Is Now A Good Time To Invest? Yes – but there is no perfect time Ensure your objectives are realistic Consider gradually staging-in purchases using our money market fund Ignore the media sensationalism AND FINALLY, apply the lost art of common sense

Somerset Capital Fund SICAV plc Licenced by the Malta Financial Services Authority as a Professional Investor Fund 7th Floor, 2 Airways House, High Street, Sliema SLM1549 MALTA www.somersetfunds.com Principals: David Birnie BA, LLB, QC, Wayne Gibson CFP, RFP and Lawrence Winters BA, CFP, RFP