SIMPLIFIED PROSPECTUS. Conseq Invest plc. Conseq Invest Conservative Bond Fund. 10 February 2009

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1 SIMPLIFIED PROSPECTUS Conseq Invest plc Conseq Invest Conservative Bond Fund 10 February 2009 This Simplified Prospectus contains key information in relation to Conseq Invest public limited company (the Company ), which is an open-ended investment company with variable capital incorporated and structured as an umbrella fund with segregated liability between sub-funds, in on 28 June 2000 and authorised on 30 August 2000 by the Irish Financial Services Regulatory Authority (the Financial Regulator ), under the European Communities (UCITS) Regulations, 2003, as amended. This Simplified Prospectus relates specifically to the Conseq Invest Conservative Bond Fund (the Conservative Bond Fund ) which was approved by the Financial Regulator on 19 December The base currency of the Conservative Bond Fund is the Czech Crown. There are three other funds of the Company available for investment, namely the Conseq Invest Bond Fund, the Conseq Invest Equity Fund and the Conseq New Europe Bond Fund. Potential investors are advised to read the prospectus dated 25 February 2008, the Conservative Bond Fund supplement dated 25 February 2008 and any supplement thereto (the Full Prospectus ) before making an investment decision. The rights and duties of the investor as well as the investor s legal relationship with the Company are laid down in the Full Prospectus. (Words in this document have the same meaning as given to them in the Full Prospectus). Investment Objective: Investment Policy: The Conservative Bond Fund s investment objective is to provide investors with current income and a stable value over the medium term by investing in CZK denominated negotiable fixed-income securities. The Conservative Bond Fund will seek to achieve its investment objective by investing normally at least 90% of its net assets in a portfolio of investment grade, transferable, fixed income securities and short term debt securities traded on Regulated Markets principally in the Czech Republic and other European countries which will be either fixed or variable rate, including but not limited to: commercial paper, government obligations, supranational bonds, asset and mortgage-backed securities, certificates of deposit, floating rate notes and short and medium term obligations. The Conservative Bond Fund may use certain financial derivative instruments including options and currency forwards to hedge against market and exchange rate risk. Risk Profile: The value of investments may fall as well as rise, and investors may not receive the amount invested. A complete description of risk factors is set out in the Full Prospectus. The Conservative Bond Fund will invest in emerging markets. Investing in emerging markets involves certain risk and special considerations not typically associated with investing in other more established economies or securities markets. Such risks may include (a) the risk of nationalisation or expropriation of assets or confiscatory taxation; (b) social, economic and political uncertainty including war;

2 (c) price fluctuations, less liquidity and smaller capitalisation of securities markets; (d) currency exchange rate fluctuations; (e) high rates of inflation; (f) controls on foreign investment and limitations on repatriation of invested capital and on the ability to exchange local currencies for the Czech Crown; (g) differences in auditing and financial reporting standards which may result in the unavailability of material information about issuers; (h) less extensive regulation of the securities markets; (i) longer settlement periods for securities transactions; (j) less developed corporate laws regarding fiduciary duties of officers and directors and the protection of investors; and (k) as the Conservative Bond Fund may invest in markets where custodial and/or settlement systems are not fully developed, the assets of the Conservative Bond Fund which are traded in such markets and which have been entrusted to sub-custodians, in circumstances where the use of such sub-custodians is necessary, may be exposed to risk in circumstances whereby the Custodian will have no liability. The Directors will seek to minimise the volatility of the Net Asset Value of each of the Funds. However, prospective investors should be aware that investments are subject to normal market fluctuations and other risks inherent in investing in securities. Depending on an investor s currency of reference, currency fluctuations between that currency and the base currency of the Funds may adversely affect the value of an investment in the Funds. Where a Share Class of a Fund is denominated in a currency other than the base currency of the Fund, the Company will attempt to minimise the effect of currency fluctuations between that currency and the Funds base currency through the use of hedging; however the result cannot be guaranteed. Performance Data: Conservative Bond Fund Perform ance ,00% Class A Class D Benchmark Annual Performance 4,00% 3,00% 2,00% 1,00% 0,00% Average Annual Return Past 3 years Class A 1,65% 2.15% Class D 1,65% 2.15% As at 30 June of the Financial year Since Inception* Please note that past performance is not necessarily a guide to the future performance of the Conservative Bond Fund. The performance data above does not include subscription and redemption charges. *The inception date for Class A and Class D was 15 January

3 Profile of a Typical Investor: Distribution Policy: Suitable for investors seeking current income and a stable value for their investments in a short or mid term time horizon with a very low level of volatility. A Class: This Share Class will accumulate all income and gains and does not intend to pay dividends. D Class: Dividends will be declared on the Friday of each week, or the next available Business Day, that will be determined with the objective of distributing the majority of the Net Revenue, if any, attributable to this Share Class. Dividends will be reinvested automatically on the Dealing Day immediately subsequent to the Dividend record day unless otherwise directed by the Shareholder. Fees and Expenses: Shareholder Expenses Subscription Fee up to 5% Redemption Fee None Switching Fee None Annual Operating Expenses Investment Management Fee: Performance Fee Custodian: Trustee Fee Administrator: 0.65% per annum of the NAV 12% of increase over Benchmark Return up to 0.35% per annum of the NAV up to 0.05% per annum of the NAV 0.20% per annum of the NAV Out of pocket expenses of the Investment Manager, Custodian and Administrator are also paid out of the assets of the Conservative Bond Fund. Total Expense Ratio 0.97% (as at 30 June 2008) Portfolio Turnover Rate 70.52% (as at 30 June 2008) Total Expense Ratio and Portfolio Turnover Rate figures for previous years are available at Taxation: The Company is resident in for tax purposes and is not subject to Irish taxation charges on income or capital gains. No Irish stamp duty is payable on the issue, redemption or transfer of Shares in the Company. Shareholders and potential investors should consult with their professional advisors in relation to the tax treatment of their holdings in the Company. 3

4 Publication of Share Price: How to Buy/Sell Units/Shares: The NAV per Share shall be made public at the offices of the Administrator during normal business hours and will be published daily by the Investment Manager on the website and weekly by the Investment Manager in the Czech newspaper Hospodárské Noviny. You can buy, sell and switch Shares on any Dealing Day directly from the Administrator: Citibank Europe plc 1 North Wall Quay Fax: Or Conseq Investment Management, a.s. Burzovní palác Rybná 682/14 Prague 1 The Czech Republic Fax: (Hours of business 9am to 5pm (Irish time) Mon Fri) The following minimum subscription, minimum subsequent subscription and minimum holding limits apply: Minimum Subscription Subsequent Subscription Minimum Holdings A Class CZK 10,000 CZK2,000 CZK 10,000 D Class CZK 500,000 CZK 50,000 CZK 500,000 Additional Important Information: Directors of the Company: Registered Office: Promoter and Investment Manager: Custodian: Sárka Brychcínová Alan T. Jeffers David McCabe Richard Siuda Jan Vedral First Floor, Fitzwilton House, Wilton Place, Dublin 2, Conseq Investment Management, a.s. Citibank International plc Branch 1 North Wall Quay 4

5 Administrator, Registrar and Transfer Agent: Legal Advisors as to Irish Law: Company Secretary: Auditors: Citibank Europe plc William Fry Wilton Secretarial Limited PricewaterhouseCoopers Chartered Accountants One Spencer Dock North Wall Quay Additional information and copies of the Full Prospectus, the latest annual and half yearly reports may be obtained (free of charge) from: Citibank Europe plc or Conseq Investment Management, a.s. 1 North Wall Quay Burzovní palác Rybná 682/14 Prague 1 The Czech Republic 5