The CMI High Income Fund PLC Addendum to the Scheme Particulars dated April 2012 Please replace the relevant sections with the following: Page 1 Share Prices Offer and Redemption Prices of Shares are based on the Net Asset Value of Shares which is calculated at least once on every Dealing Day on an offer or bid price basis as appropriate. For further details please see sections 10 and 11. Share Prices are published daily on our websites at www.offshore.clericalmedical.com. It should be noted that the price of shares and the income from them may go down as well as up. Page 3 Charges The price at which Shares may be purchased from the Manager include a preliminary charge by the manager. The current charge is 5% and the maximum charge is 8.5% of the Creation Charge of such Shares. In addition the Fund will bear its own management and other fees and administration costs (as to which, please refer to Section 10) How will charges and expenses affect my investment? Main Bullet Point 4 We, the Manager, charge for managing and investing in the Fund. We take our charges partly from you investment(s) and partly from the value of the Fund. The table below shows how the current charges might affect what you might get back. Please refer to pages 8 & 9 of the Scheme Particulars for details of the charges..
Page 4 Biographies of the IOM Board of Directors of CMI Fund Managers (IOM) Limited Nigel Rothery Appointed in March 2012, Nigel joined the Group in 1985, and has worked in various senior roles within Group Audit, Insurance and Retail before being appointed as an Executive Director. Nigel is a member of the Chartered Institute of Internal Auditors. David Schuster (Non-executive Director) Appointed as an Executive Director in January 1993, David became a Non-Executive Director in September 2006 following his retirement as General Manager of the CMI Group of Companies. David joined Clerical Medical in 1973 and held a number of senior executive positions before being appointed General Manager of the Isle of Man business in 2004. David is a Fellow of the Association of Chartered Certified Accountants, past Chairman of the Manx Insurance Association and past Deputy Chairman of the Association of International Life Offices. David Walkden (Chairman) Appointed in July 2012, David has been with the Group for 26 years and is currently the Operations Director Insurance Division, Lloyds Banking Group. He is a Director of Scottish Widows plc and a number of other Companies in the Group including the Chairman of Heidelberger Lebensversicherung AG and Clerical Medical International Holdings BV. Prior to this David led the Integration Programme across the Insurance Division following the Lloyds acquisition of HBOS in 2009. David's other roles have included Operations Director of the Insurance and Investment Division of HBOS, Director Group Programmes, Procurement and Property and Operations Director Retail Banking Division. Jacques Bezuidenhout Appointed as Finance Director in April 2013, Jacques joined the Group in 2005 and has worked in various reporting and technical roles in Insurance and Group Finance before being appointed Head of the Reporting Service Centre within Insurance Finance in 2012. Jacques is a member of the South African Institute of Chartered Accountants. William Juan Clarke Appointed in March 2012, Juan joined Clerical Medical in 1991 and has worked in various senior roles before being appointed Executive Director. Juan is a Chartered Fellow of the Chartered Institute for Securities and Investment. Juan was appointed as Managing Director of the CMI Group of Companies on 21 January 2013. Peter Clucas (Non-executive Director) Appointed in December 2010, Peter is a Director of Cains Advocates Limited, a law firm with offices in Douglas, London and Singapore and winner of the Queens Award for Enterprise International trade 2009. Peter has been with Cains since 1990 and is also a non-practising English solicitor. Peter has extensive experience in all aspects of commercial dispute resolution work and specialises in antimoney laundering legal compliance. He is a Member of the International Compliance Association. Dr. William Hastings (Non-executive Director) Appointed in June 2012, Bill comes with a background in Insurance and Risk Management. Formerly an Academic, he was appointed Chief Executive to the Insurance and Pensions Authority in 1987 from which position he is now retired. Page 4
The Fund 1.2 The Directors of the Fund are: J L Bezuidenhout (appointed on 16 April 2013) W J Clarke P B Clucas* W J Hastings* N P Rothery D M Schuster* D J Walkden (Chairman) * denotes Non-executive Director 2.2 The Directors of the Manager are: J L Bezuidenhout (appointed on 16 April 2013) W J Clarke P B Clucas* W J Hastings* N P Rothery D M Schuster* D J Walkden (Chairman) * denotes Non-executive Director 3 The Fiduciary Custodian Barclays Private Bank & Trust (Isle of Man) Limited (the Fiduciary Custodian) was incorporated in the Isle of Man as a private company limited by shares on 2 October 1959, company number 1478, having its registered office at 3 rd Floor Barclays House, Victoria Street, Douglas Isle of Man IM1 2 LE. The Fiduciary Custodian is a wholly owned subsidiary of Barclays Bank PLC, a company incorporated in England. The Fiduciary Custodian has an authorised and fully paid up share capital of 5,000,000. The principal business of the Fiduciary Custodian is the provision of corporate and personal financial services. The Fiduciary Custodian is an Authorised Person as defined in the Collective Investment Schemes Act 2008 by virtue of holding an appropriate licence under Section 7 of the Financial Services Act 2008. Page 6 8.5 Historical Performance Comparative table as at 31 March 2013 Prices 01.10.2007 to 30.09.2008 01.10.2008 to 30.09.2009 01.10.2009 to 30.09.2010 01.10.2010 to 30.09.2011 01.10.2011 to 30.09.2012 01.10.2012 to 31.03.2013 Highest Offer 52.49 49.71 52.68 52.35 55.26 56.33 Lowest Bid 44.60 38.79 45.49 46.52 47.25 51.35 Net Income distributed per share** (p) 2.42 2.42 2.11 1.98 1.99 0.97
Fund Value 30.09.2008 30.09.2009 30.09.2010* 30.09.2011 30.09.2012 31.03.2013 Net Asset Value 47,874,725 47,446,029 48,403,027 44,599,046 46,439,386 46,789,109 Shares in Issue 108,289,260 103,167,120 98,877,910 93,919,490 90,188,760 89,093,450 Cancellation Price per Share 44.21 45.99 48.95 47.49 51.49 52.52 * In accordance with these Regulations, the Fund complies with the Statement of Recommended Practice ("SORP") for Authorised Funds issued by the Investment Management Association ("IMA") in October 2010 and effective from 1 July 2011. In accordance with these Regulations, the Annual and Interim Report has been reformatted and comparatives restated, to comply with the requirements of the SORP. Interest on debt securities has been recognised using the effective interest rate method. The restatement of comparatives did not change the net assets attributable to participating shareholders. ** Net allocation is based on average shares during the year. Page 12 12.4 Taxation 12.4.1 The Fund is registered in the Isle of Man and the control and management of the Fund will be exercised in such a way that the Fund should be resident in the Isle of Man for taxation purposes. Accordingly the Fund will be liable for Manx Income Tax (the rate is currently zero) on profits after deduction of dividends and expenses payable. The policy of the Fund is to pursue a full distribution of profits. 12.4.3 An offshore fund is defined in section 355 of the Taxation (International and Other Provisions) Act 2010. The rules for taxation of the returns to UK investors holding interests in offshore funds are set out in The Offshore Funds (Tax) Regulations 2009. The provisions of the Act as regards reporting status (previously distributor status) are detailed but it is the intention of the Directors to manage the affairs of the Fund so as to maintain HMRC reporting status. The Fund entered the reporting fund regime on 1 October 2010. May 2013
CMI Fund Managers (IOM) Limited, Clerical Medical House, Victoria Road, Douglas, Isle of Man IM99 1LT, British Isles. Registered in the Isle of Man, Registered No. 40572. Telephone: +44 (0)1624 638888. Fax: +44 (0)1624 625900. CMI Fund Managers (IOM) Limited is licensed by the Financial Supervision Commission of the Isle of Man. Approved by Clerical Medical Financial Services Limited, 33 Old Broad Street, London EC2N 1HZ, United Kingdom. Registered in England, Registered No. 2114901. Clerical Medical Financial Services Limited is authorised and regulated by the Financial Conduct Authority whose rules and regulations are made under the Financial Services and Markets Act 2000 for the protection of investors and apply only to investment business conducted in, or from, the UK.