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

2. 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

3. 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

4. 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.

5. 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

6. 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

7. 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

8. 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

9. 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%

10. 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

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

12. Somerset Capital Fund Growth In Underlying Funds (Long-Term Positions)
2008
Winchester Convertible
-15.17%
49.17% %
Forest Global
-27.86%
49.65% %
Pimco Emerging
-15.73%
28.14% %
Edgewood
-28.19%
23.63% %

13. 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%

14. 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

15. 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

16. 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 Principals: David Birnie BA, LLB, QC, Wayne Gibson CFP, RFP and Lawrence Winters BA, CFP, RFP