FIDUCIAN GLOBAL SMALLER COMPANIES & EMERGING MARKETS FUND

The Fiducian Global Smaller Companies & Emerging Markets Fund provides investors with the opportunity to combine investments in companies that are generally of small capitalization in the more developed markets; with investments in companies that are listed on the stock exchanges of the less developed (emerging) markets. Smaller companies in developed and better regulated markets have shown superior long term growth when compared with their larger peers, as they are generally more flexible and operate in market niches that give them greater opportunity to increase profits. Emerging markets funds invest in developing countries and offer investors the opportunity to benefit from the significant growth potential inherent in many of these economies as they raise their standards of living.

It is expected that by diversifying between these two segments of the international share market, investors could be somewhat cushioned against the unexpected volatility and loss of capital that any one country’s market, industry sector or individual shares could generate. However, while this Fund could deliver high returns over the long term, it could also show periods of significant volatility caused by rapid changes in investor sentiment, difficulties in buying and selling shares, regulatory changes by Governments and currency, economic and political developments. In our view, therefore, this Fund appears suited for limited components of an investor’s portfolio that are not needed for cash flow at short notice and can be left to grow despite large fluctuations, for potential long term gain.

Fund Commencement
January 1999

Benchmark and Objective
For this Fund, the relevant market indices are the MSCI World Small Cap Index and the MSCI Emerging Markets Free Index. The objective for each underlying fund is to exceed its relevant benchmark (after fees) over rolling 3-year periods.

Asset Allocation