Aspiring  UK  Smaller  Companies  Portfolio Portfolio  Objective Seeks  to  provide  long  term  capital  appreciation  by  investing  in  a  concentrated  portfolio  of  smaller   companies  which  have  become  undervalued  compared  to  their  long  term  earnings  potential.  

Investment  Policy  and  Restrictions • All  the  assets  (excluding  cash)  will  be  invested  in  equities  of  smaller  companies  which  are   undervalued  according  to  financial  measurements  of  either  intrinsic  worth  or  long  term  business   prospects.   • Obscure,  low  growth,  boring,  and  disappointing  stocks  with  low  analyst  coverage  regularly   attract  unreflective  sellers  which  often  leads  to  them  being  oversold  i.e.  They  can  be  purchased   at  a  discount  to  their  intrinsic  value.  This  investment  approach  seeks  to  exploit  this  phenomenon   whilst  also  looking  for  evidence  of  a  positive  change  in  either  the  company  or  the  environment   in  which  they  operate  which  could  prompt  a  re  rating.   • All  investments  also  require  a  margin  of  safety  such  as  a  discount  to  intrinsic  value,  or  robust   defensible  earnings.  In  focusing  on  smaller  unloved  companies  with  a  margin  of  safety,  the   portfolio  seeks  to  create  an  asymmetric  risk  return  profile.   • The  portfolio  will  not  be  managed  with  regard  to  any  benchmark,  although  the  Numis Smaller   Companies  Index  will  be  used  as  a  reference.  Note  that  given  the  portfolio  will  be  highly   concentrated  in  nature,  the  benchmark  should  not  be  used  too  closely  as  a  guide. • The  portfolio  cannot  initiate  in  a  position  with  a  market  capitalization  of  greater  than  £700m,   however  it  may  have  up  to  20%  of  the  assets  of  the  portfolio  in  companies  with  a  market   capitalization  greater  than  this  number  due  to  share  price  appreciation.   • At  least  80%  of  the  assets  of  the  portfolio  (excluding  cash)  must  be  invested  in  UK  listed   securities,  although  the  portfolio  has  the  ability  to  be  100%  invested  in  cash,  as  well  as  the   ability  to  invest  in  any  geography,  sector  or  industry.  The  portfolio  may  consequently  be   particularly  exposed  to  specific  sectors  or  industries  depending  on  where  investment   opportunities  are  found.   • Dividend  income  allocation  and  portfolio  weighting  will  be  at  the  discretion  of  the  manager,   although  no  more  than  20%  is  permitted  in  a  single  security.  This  will  be  imposed  once  the   portfolio  has  a  total  of  10  positions.   • The  portfolio  has  a  buy  and  hold  philosophy,  and  will  operates  with  a  5-­‐year  investment  horizon.   • Portfolio  performance  will  be  judged  on  a  money  weighted  basis  and  will  be  net  of  trading  fees.   It  will  be  published  once  a  month  within  a  week  of  the  last  trading  day  of  the  month. • Derivatives  will  not  be  used.