Managed Portfolios from OBSR December 2012

Managed Portfolios from OBSR December 2012 WHAT ARE THE MANAGED PORTFOLIOS FROM OBSR? The Managed Portfolios from OBSR are a range of five funds designed to actively target and maintain different levels of risk to suit investors with different risk and return requirements. By consistently targeting defined levels of risk, advisers are more easily able to identify which strategy may be appropriate for an Investor s appetite for risk and investment objectives. INVESTMENT PROCESS Barrie & Hibbert provide SMARTfund Administration with risk analysis on the five strategies allowing them to set the Strategic Asset Allocation to target defined levels of volatility over the medium term which can be matched to an investor s appetite for risk. OBSR then selects the funds which they believe are the most appropriate, given the intended risk and return profile of the SMARTfunds and the current market trends OBSR ADVISORY SERVICES LTD (MORNINGSTAR OBSR) Morningstar OBSR's research philosophy and approach is not only longestablished but is also developing over time in order that it remains robust and relevant in an ever changing industry. Morningstar OBSR's research is respected by fund managers, product providers and professional intermediaries alike, with Morningstar OBSR Analyst Ratings widely acknowledged as an independent mark of quality. Morningstar OBSR's philosophy is grounded in the belief that a qualitative approach is critical to providing forward-looking research and opinions. Morningstar OBSR believes that a qualitative understanding of a manager, gained through face-to-face meetings, is the only way to understand how a fund is managed, what it sets out to achieve and the prospects of those objectives being met in the future. It also provides a meaningful framework to assess historical trends and returns. BARRIE & HIBBERT Barrie & Hibbert s primary focus is the identification, quantification and management of financial risk in savings and investment products, institutional portfolios and life and pensions balance sheets. FUND DETAILS Fund Manager SMARTfund Administration Ltd Manager s Details 6 Broad Street Place London EC2M 7JH Investment Adviser OBSR Advisory Services Ltd Depositary/Trustee HSBC Investment Adviser Start Date November 2008 Fund Launch Date November 2008 Fund Currency GBP Fund Sector Unclassified Fund Type Authorised Unit Trust Minimum Initial 3,000 Minimum Additional 500 ( 250 for regular payments) Minimum Withdrawal 1,000 ( 40 for regular withdrawals) Pricing Method Forward Pricing Times 17.30 Dealing Frequency Daily Distribution Policy Monthly INVESTMENT OPPORTUNITIES Unit Trust ISA SIPP (via 3 rd party links) Offshore Bonds (via 3 rd party links) The Managed Portfolios from OBSR are available within a wide range of Life and Pension products, both onshore and offshore. For full details of where our range of SMARTfunds is available please visit www.smartfund.co.uk. CONTACT US If you would like to find out about how to invest into these funds please contact us at:- Telephone: 0844 801 0700 Website: www.smartfund.co.uk Email: sales@praemium.com Collectively their staff of leading academics, quantitative analysts, actuaries and software engineers offer a depth and breadth of expertise combined with an unrivalled track record of experience in implementing risk solution for financial institutions around the world. Their asset and product modelling capability has been developed over the last 13 years resulting in Barrie & Hibbert becoming a global market leader in stochastic asset modelling services. SMARTfund Administration Ltd (6016828) is registered in England at 6 Broad Street Place, EC2M 7JH and is authorised and regulated by the Financial Services Authority under ref. 463566. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by the Investment Adviser and/or Manager. The investment service may not be suitable for all Investors and if you have any doubts you should contact your Financial Adviser. The full prospectus for this fund is available on request or at www.smartfund.co.uk. ph: 0844 801 0700

Managed Portfolios from OBSR December 2012 FUND OVERVIEW (PROVIDED BY OBSR) PERFORMANCE (INCEPTION TO 30 NOVEMBER 2012) The three months to the end of November were broadly positive for investors, underpinned initially by proactive central bank measures to address, many of the, the global debt and growth crises, and subsequently by signs of a pick-up in economic growth in the US and China. Heartened by these developments and their potential to reduce the risk of a significantly adverse outcome, investors returned to more volatile assets such as equities and higher-yielding bonds. Nevertheless, after a particularly strong initial rally in September, the extent of the strength was constrained by shorter-term concerns such as the impact of scheduled fiscal consolidation in the US and Greece s requirement for further bail-out funds. Meanwhile, government bond yields remained anchored at low levels as a result of the continuing existence of such issues and ongoing expectations that interest rates in the US, UK and eurozone will remain at low levels for a considerable period of time; this meant that they delivered reasonably flat returns despite growing optimism towards the health of the global economy. 65.0% 55.0% 45.0% 35.0% 25.0% 15.0% 5.0% -5.0% SMARTfund Aggressive Growth OBSR SMARTfund Growth OBSR SMARTfund Balanced OBSR SMARTfund Cautious OBSR SMARTfund Defensive OBSR Capital markets have enjoyed a period of strength over the first eleven months of 2012 but, despite existence of shorter-term risks to further strength, we believe that the steps taken over 2012 to avert imminent economic or market crisis are yet to be fully reflected in equity and credit valuations. Although we are mindful that the ongoing dynamic of debt reduction in the developed world is likely to lead to below-trend economic growth rates that are vulnerable to intermittent shocks, creating the potential for further bouts of market weakness, equities may be attractive to investors willing and able to tolerate periods of volatility and willing to take a longer-term view. In fixed income, it may be increasingly important to be discerning in bond and fund selection given that the strong performance from corporate bonds is unlikely to be repeated at lower starting yields and there is growing potential for bouts of weakness exacerbated by poor liquidity. Nevertheless, strong corporate balance sheets and reasonably wide credit spreads are still likely to inspire superior corporate bond returns to those available on government bonds. -15.0% Q3 2011 Q3 2012* Q3 2010 Q3 2011* Q3 2009 Q3 2010* Q3 2008 Q3 2009* Q3 2007 Q3 2008* Aggressive Growth 13.2% -9.4% 10.3% - - Growth 12.0% -3.4% 8.6% - - Balanced 11.6% -2.0% 8.5% - - Cautious 9.1% -2.1% 6.3% - - Defensive 6.4% -2.2% 3.5% - - *percentage growth for the 12 month period up to the end of the full quarter The performance figures above are based on the total investor returns from a notional unit issued on the date of inception of the sub-fund, with an initial capital value the same as the minimum investment amount for that fund. The notional unit is based on an AMC of 1.00% including zero (0%) Adviser Charging and therefore reflects performance after all other expenses that would be included in the TER. PAST PERFORMANCE SHOULD NOT BE SEEN AS A GUIDE TO FUTURE PERFORMANCE SMARTfund Administration Ltd (6016828) is registered in England at 6 Broad Street Place, EC2M 7JH and is authorised and regulated by the Financial Services Authority under ref. 463566. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by the Investment Adviser and/or Manager. The investment service may not be suitable for all Investors and if you have any doubts you should contact your Financial Adviser. The full prospectus for this fund is available on request or at www.smartfund.co.uk. ph: 0844 801 0700

SMARTfund Defensive OBSR December 2012 INVESTMENT OBJECTIVE To generate returns through capital growth and income with lower risk of capital loss. INVESTMENT POLICY To achieve the investment objective, the Sub-Fund will invest in a diversified portfolio of funds and other permitted investments that have a similarly diversified character. The portfolio will be comprised predominantly of Cash and Fixed Interest Securities funds but will include some funds that have exposure to equities and property. SUB-FUND DETAILS Fund Manager Investment Adviser SMARTfund Administration Ltd OBSR Advisory Services Ltd Fund Inception 03 November 2008 Fund Type Initial Charge Authorised Unit Trust 0.5% + Adviser Charging* Switching Charge 0% Exit Charge 0% Annual Management Charge 1% + Adviser Charging*% *Adviser Charging: the amount of remuneration that the Investor agrees with their Adviser that the Manager will pay the Adviser for advice provided. RISK PROFILE This fund s risk profile is low. ASSET ALLOCATION (AT 30 NOVEMBER 2012) Cash & Equivalents 36.4% Cash & Equivalents Emerging Equity 2.0% Asia ex Japan Equity 1.0% Japan Equity 1.9% Euro Equity 1.1% US Equity 6.9% UK Equity 7.2% Property 8.6% Absolute 7.9% Corporate Bond 27.0% Absolute Corporate Bond Property UK Equity US Equity Euro Equity Japan Equity Asia ex Japan Equity Emerging Equity HOLDINGS (AT 30 NOVEMBER 2012) Asset Class Security Weighting (%) Cash & Equivalents Fidelity Cash Fund 11.65 BlackRock Cash Fund 11.64 Legal & General Cash Trust 11.64 Cash 1.47 Absolute Insight Absolute UK Equity Market Neutral 7.92 Corporate Bond Fidelity MoneyBuilder Income 10.95 M&G Strategic Corporate Bond 8.92 Invesco Perpetual Corporate Bond 7.14 Property M&G Property Portfolio 4.81 Threadneedle UK Property Trust 3.78 UK Equity BlackRock UK Fund 3.99 JO Hambro UK Equity Fund 3.18 US Equity Threadneedle American Fund 3.93 Schroder US Mid Cap 2.92 Euro Equity Cazenove European Fund 1.10 Japan Equity Schroder Tokyo Fund 1.90 Asia ex Japan Equity Investec Asia ex Japan Fund 1.04 Emerging Equity First State Global Emerging Markets Leaders Fund 2.02 The actual investment held by the fund at any other date may differ. Once invested, both Adviser and Investor can logon to the SMARTfund Platform to view an up-to-date list of notionally allocated holdings.

SMARTfund Defensive OBSR December 2012 PERFORMANCE (INCEPTION TO 30 NOVEMBER 2012) Defensive Strategy Composite Benchmark Cash Percentage Growth Inception to 30.11.2012 22.8% 16.5% 7.1% Annualised volatility of investor returns since inception Inception to 30.11.2012 4.1% 5.8% 0.1% 65.0% 55.0% 45.0% 35.0% PAST PERFORMANCE SHOULD NOT BE SEEN AS A GUIDE TO FUTURE PERFORMANCE The performance and volatility figures above are based on the total investor returns from a notional unit issued on the date of inception of the sub-fund, with an initial capital value the same as the minimum investment amount for that fund. The notional unit is based on the AMC including zero (0%) Adviser Charging and therefore reflects performance after all other expenses that would be included in the TER. The composite benchmark is a composite of the following ETFs: ishares GBP Corporate Bond (representing Corporate Bonds), ishares FTSE EPRA/NAREIT UK PTY (representing Property), LYXOR ETF FTSE ALL SHARE (representing UK Equity), ishares S&P 500 (representing US Equity), ishares MSCI Europe ex-uk (representing European Equity), ishares MSCI JAPAN (representing Japan Equity), ishares MSCI Emerging Market (representing Emerging Market Equity), ishares MSCI Pacific ex-japan Idx (representing Asia ex Japan Equity) and the British Bankers Association - LIBOR 12 Month GBP (representing Cash). Each of these ETFs has been selected to represent an average market sector performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the fund. The percentage of the composite formed by each ETF is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 12 Month GBP rate. All data has been obtained from the Telekurs data exchange. *Performance data does not exist before the 03 Nov 2008 as the fund had not launched 25.0% 15.0% 5.0% -5.0% -15.0% FUND COMMENTARY (PROVIDED BY OBSR) The Defensive Portfolio delivered a positive return over the three months to the end of November, with fund selection making a relatively neutral contribution to performance in aggregate relative to the relevant IMA sectors. With the exception of cash, the highest sector weighting in the overall strategic asset allocation was to corporate bonds, which again delivered positive performance over the period as credit spreads tightened significantly. In equities, the high weighting in US equities relative to continental Europe was much more of a headwind as Europe rebounded strongly from its relative weakness over the previous 12-18 months. In the UK commercial property market, capital values continued to fall amid the challenging economic environment and the potential for high supply should banks release their involuntarily-acquired holdings of lower-quality property. The rate of capital value declines has, however, slowed and the outlook for commercial property may be improving given the attractive headline yield available on the asset class. It should, however, be noted that it is difficult to access this opportunity fully in a daily-dealing mutual fund format. From a fund selection perspective, one of the key contributors to performance over the quarter was the decision to hold part of the high cash allocation in the Absolute Insight UK Equity Market Neutral fund, which was able to exploit falling correlations between stocks. The corporate bond fund blend also delivered robust performance. The Invesco Perpetual Corporate Bond fund benefited from its high weighting in financials and offset weaker relative performance from Fidelity MoneyBuilder income and M&G Strategic Corporate Bond funds. The UK equity fund blend was the main detractor from performance over the period despite significant strength from JOHCM UK Equity Income, which benefited from its mid-cap bias and holdings in cheaper mid-cap stocks with sensitivity to UK economic growth, which they rightly expected to pick up. The position in BlackRock UK detracted materially from performance, held back in part by its bias towards growth companies during a quarter led by a rebound in stocks and sectors that had underperformed over the previous twelve months, notably banks. To take into account an updating of the strategic asset allocation, the portfolio s weightings changed significantly at the end of the quarter.. The most notable changes are a significant decrease in the cash weighting and a meaningful new allocation to short-dated corporate bonds. Given the small universe of short-dated corporate bond funds and the fact that none are managed against the BofAML Corporate & Collateralised 1-5 Year index modelled by Barrie & Hibbert, we have recommended populating this part of the portfolio as far as possible with an exchange traded fund (ETF), the ishares Markit iboxx Corporate Bond 1-5 fund. For regulatory reasons, however, this fund cannot fulfil the entire 46.5% allocation to the sector and we have therefore complemented it with two actively managed funds: Threadneedle Short-Dated Corporate Bond and AXA Sterling Credit Short Duration Bond. As a result of the significantly lower cash weighting, we are no longer recommending holding the Absolute Insight UK Equity Market Neutral fund, even though it has performed very well since it was added in early 2010

SMARTfund Cautious OBSR December 2012 INVESTMENT OBJECTIVE To provide a balance of income and capital growth over the medium to long term. INVESTMENT POLICY To achieve the investment objective, the Sub-Fund will invest in a diversified portfolio of funds and other permitted investments that have a similarly diversified character. The portfolio will be comprised predominantly of Cash, Fixed Interest Securities, Equities and Property funds. RISK PROFILE SUB-FUND DETAILS Fund Manager Investment Adviser SMARTfund Administration Ltd OBSR Advisory Services Ltd Fund Inception 03 November 2008 Fund Type Initial Charge Authorised Unit Trust 0.5% + Adviser Charging* Switching Charge 0% Exit Charge 0% Annual Management Charge 1% + Adviser Charging*% *Adviser Charging: the amount of remuneration that the Investor agrees with their Adviser that the Manager will pay the Adviser for advice provided. This fund s risk profile is low to medium. ASSET ALLOCATION (AT 30 NOVEMBER 2012) Emerging Equity 3.0% Asia ex Japan Equity 2.1% Japan Equity 2.8% Euro Equity 1.1% US Equity 9.7% Cash & Equivalents 14.3% UK Equity 10.1% Property 11.4% Absolute 7.8% Corporate Bond 37.7% Cash & Equivalents Absolute Corporate Bond Property UK Equity US Equity Euro Equity Japan Equity Asia ex Japan Equity Emerging Equity HOLDINGS (AT 30 NOVEMBER 2012) Asset Class Security Weighting (%) Cash & Equivalents Fidelity Cash Fund 6.72 Legal & General Cash Trust 5.76 Cash 1.80 Absolute Insight Absolute UK Equity Market Neutral 7.85 Corporate Bond Fidelity MoneyBuilder Income 14.79 M&G Strategic Corporate Bond 11.78 Invesco Perpetual Corporate Bond 11.12 Property M&G Property Portfolio 6.68 Threadneedle UK Property Trust 4.68 UK Equity BlackRock UK Fund 5.93 JO Hambro UK Equity Fund 4.20 US Equity Threadneedle American Fund 5.83 Schroder US Mid Cap 3.86 Euro Equity Cazenove European Fund 1.09 Japan Equity Schroder Tokyo Fund 2.83 Asia ex Japan Equity Investec Asia ex Japan Fund 2.06 Emerging Equity First State Global Emerging Markets Leaders Fund 3.00 The actual investment held by the fund at any other date may differ. Once invested, both Adviser and Investor can logon to the SMARTfund Platform to view an up-to-date list of notionally allocated holdings.

SMARTfund Cautious OBSR December 2012 PERFORMANCE (INCEPTION TO 30 NOVEMBER 2012) SMARTfund Cautious OBSR Percentage Growth Cautious Strategy Composite Benchmark Cash Inception to 30.11.2012 33.2% 20.9% 7.1% 65.0% 55.0% SMARTfund Cautious OBSR Annualised volatility of investor returns since inception Inception to 30.11.2012 5.3% 8.2% 0.1% PAST PERFORMANCE SHOULD NOT BE SEEN AS A GUIDE TO FUTURE PERFORMANCE The performance and volatility figures above are based on the total investor returns from a notional unit issued on the date of inception of the sub-fund, with an initial capital value the same as the minimum investment amount for that fund. The notional unit i s based on the AMC including zero (0%) Adviser Charging and therefore reflects performance after all other expenses that would be included in the TER. The composite benchmark is a composite of the following ETFs: ishares GBP Corporate Bond (representing Corporate Bonds), ishares FTSE EPRA/NAREIT UK PTY (representing Property), LYXOR ETF FTSE ALL SHARE (representing UK Equity), ishares S&P 500 (representing US Equity), ishares MSCI Europe ex-uk (representing European Equity), ishares MSCI JAPAN (representing Japan Equity), ishares MSCI Emerging Market (representing Emerging Market Equity), ishares MSCI Pacific ex-japan Idx (representing Asia ex Japan Equity) and the British Bankers Association - LIBOR 12 Month GBP (representing Cash). Each of these ETFs has been selected to represent an average market sector performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the fund. The percentage of the composite formed by each ETF is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 12 Month GBP rate. All data has been obtained from the Telekurs data exchange. *Performance data does not exist before the 03 Nov 2008 as the fund had not launched 45.0% 35.0% 25.0% 15.0% 5.0% -5.0% -15.0% FUND COMMENTARY (PROVIDED BY OBSR) The Cautious Portfolio delivered a positive return over the three months to the end of November, with fund selection making a relatively neutral contribution to performance in aggregate relative to the relevant IMA sectors. The highest sector weighting in the overall strategic asset allocation was to corporate bonds, which again delivered positive performance over the period as credit spreads tightened significantly. In equities, the high weighting in US equities relative to continental Europe was much more of a headwind as Europe rebounded strongly from its relative weakness over the previous 12-18 months. In the UK commercial property market, capital values continued to fall amid the challenging economic environment and the potential for high supply should banks release their involuntarily-acquired holdings of lower-quality property. The rate of capital value declines has, however, slowed and the outlook for commercial property may be improving given the attractive headline yield available on the asset class. It should, however, be noted that it is difficult to access this opportunity fully in a daily-dealing mutual fund format. From a fund selection perspective, one of the key contributors to performance over the quarter was the decision to hold part of the high cash allocation in the Absolute Insight UK Equity Market Neutral fund, which was able to exploit falling correlations between stocks. The corporate bond fund blend also delivered robust performance. The Invesco Perpetual Corporate Bond fund benefited from its high weighting in financials and offset weaker relative performance from Fidelity MoneyBuilder income and M&G Strategic Corporate Bond. The UK equity fund blend was the main detractor from performance over the period despite significant strength from JOHCM UK Equity Income, which benefited from its mid-cap bias and holdings in cheaper mid-cap stocks with sensitivity to UK economic growth, which they rightly expected to pick up. The position in BlackRock UK detracted materially from performance, held back in part by its bias towards growth companies during a quarter led by a rebound in stocks and sectors that had underperformed over the previous twelve months, notably banks. To take into account an updating of the strategic asset allocation, the portfolio s weightings changed significantly at the end of the quarter. The most notable changes are a significant decrease in the cash weighting and a meaningful new allocation to short-dated corporate bonds. Given the small universe of short-dated corporate bond funds and the fact that none are managed against the BofAML Corporate & Collateralised 1-5 Year index modelled by Barrie & Hibbert, we have recommended populating this part of the portfolio with an exchange traded fund (ETF), the ishares Markit iboxx Corporate Bond 1-5 fund. We have also recommended adding Kames Investment Grade Bond to the corporate bond fund allocation to increase its diversification. As a result of the significantly lower cash weighting, we are no longer recommending holding the Absolute Insight UK Equity Market Neutral fund, even though it has performed very well since it was added in early 2010.

SMARTfund Balanced OBSR December 2012 INVESTMENT OBJECTIVE To provide a balance of income and capital growth over the medium to long term. INVESTMENT POLICY To achieve the investment objectives, the Sub-Fund will invest in a diversified portfolio of funds and other permitted investments that have a similarly diversified character. The portfolio will be comprised predominantly of Cash, Fixed Interest Securities, Equities and Property funds. The allocation of the portfolio will be approximately balanced between, on the one hand, funds investing in growth assets, such as shares and property, to provide the potential for capital growth and, on the other, funds investing in defensive assets such as fixed interest securities and cash. SUB-FUND DETAILS Fund Manager Investment Adviser SMARTfund Administration Ltd OBSR Advisory Services Ltd Fund Inception 03 November 2008 Fund Type Initial Charge Authorised Unit Trust 0.5% + Adviser Charging* Switching Charge 0% Exit Charge 0% Annual Management Charge 1% + Adviser Charging*% *Adviser Charging: the amount of remuneration that the Investor agrees with their Adviser that the Manager will pay the Adviser for advice provided. RISK PROFILE This fund s risk profile is medium. ASSET ALLOCATION (AT 30 NOVEMBER 2012) Cash & Equivalents 1.1% Emerging Equity 4.0% Asia ex Japan Equity 2.1% Japan Equity 3.8% Euro Equity 2.2% US Equity 12.7% UK Equity 13.1% Property 14.2% Corporate Bond 46.8% Cash & Equivalents Corporate Bond Property UK Equity US Equity Euro Equity Japan Equity Asia ex Japan Equity Emerging Equity HOLDINGS (AT 30 NOVEMBER 2012) Asset Class Security Weighting (%) Cash & Equivalents Cash 1.10 Corporate Bond Fidelity MoneyBuilder Income 14.84 M&G Strategic Corporate Bond 13.78 Invesco Perpetual Corporate Bond 13.18 Henderson Strategic Bond 4.97 Property M&G Property Portfolio 8.61 Threadneedle UK Property Trust 5.64 UK Equity BlackRock UK Fund 4.95 JO Hambro UK Equity Fund 4.22 AXA Framlington UK Opportunities Fund 3.93 US Equity Threadneedle American Fund 5.86 Schroder US Mid Cap 3.88 M&G American Fund 2.96 Euro Equity Cazenove European Fund 2.19 Japan Equity Schroder Tokyo Fund 3.79 Asia ex Japan Equity Investec Asia ex Japan Fund 2.06 Emerging Equity First State Global Emerging Markets Leaders Fund 4.01 The actual investment held by the fund at any other date may differ. Once invested, both Adviser and Investor can logon to the SMARTfund Platform to view an up-to-date list of notionally allocated holdings.

SMARTfund Balanced OBSR December 2012 PERFORMANCE (INCEPTION TO 30 NOVEMBER 2012) SMARTfund Balanced OBSR Percentage Growth Balanced Strategy Composite Benchmark Cash Inception to 30.11.2012 42.5% 24.6% 7.1% 65.0% 55.0% SMARTfund Balanced OBSR Annualised volatility of investor returns since inception Inception to 30.11.2012 6.8% 10.6% 0.1% PAST PERFORMANCE SHOULD NOT BE SEEN AS A GUIDE TO FUTURE PERFORMANCE The performance and volatility figures above are based on the total investor returns from a notional unit issued on the date of inception of the sub-fund, with an initial capital value the same as the minimum investment amount for that fund. The notional unit is based on the AMC including zero (0%) Adviser Charging and therefore reflects performance after all other expenses that would be included in the TER. The composite benchmark is a composite of the following ETFs: ishares GBP Corporate Bond (representing Corporate Bonds), ishares FTSE EPRA/NAREIT UK PTY (representing Property), LYXOR ETF FTSE ALL SHARE (representing UK Equity), ishares S&P 500 (representing US Equity), ishares MSCI Europe ex-uk (representing European Equity), ishares MSCI JAPAN (representing Japan Equity), ishares MSCI Emerging Market (representing Emerging Market Equity) and the ishares MSCI Pacific ex-japan Idx (representing Asia ex Japan Equity). Each of these ETFs has been selected to represent an average market sector performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the fund. The percentage of the composite formed by each ETF is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 12 Month GBP rate. All data has been obtained from the Telekurs data exchange. *Performance data does not exist before the 03 Nov 2008 as the fund had not launched 45.0% 35.0% 25.0% 15.0% 5.0% -5.0% -15.0% FUND COMMENTARY (PROVIDED BY OBSR) The Balanced Portfolio delivered a positive return over the three months to the end of November, although fund selection detracted slightly from performance in aggregate relative to the relevant IMA sectors. The highest sector weighting in the asset allocation was to corporate bonds, which again delivered positive performance over the period as credit spreads tightened significantly. In equities, the high weighting in US equities relative to continental Europe was much more of a headwind as Europe rebounded strongly from its relative weakness over the previous 12-18 months. In the UK commercial property market, capital values continued to fall amid the challenging economic environment and the potential for high supply should banks release their involuntarily-acquired holdings of lower-quality property. The rate of capital value declines has, however, slowed and the outlook for commercial property may be improving given the attractive headline yield available on the asset class. It should, however, be noted that it is difficult to access this opportunity fully in a daily-dealing mutual fund format. From a fund selection perspective, the corporate bond fund blend was a modest contributor to performance over the quarter; Invesco Perpetual Corporate Bond and, to a lesser degree, Henderson Strategic Bond benefited from their high weightings in financials and offset weaker relative performance from Fidelity MoneyBuilder income and M&G Strategic Corporate Bond. The US equity fund allocation also outperformed, driven in particular by M&G American. The UK equity fund blend was the main detractor from performance over the period despite significant strength from JOHCM UK Equity Income, which benefited from its mid-cap bias and holdings in cheaper mid-cap stocks with sensitivity to UK economic growth, which they rightly expected to pick up. Both AXA Framlington UK Select Opportunities and BlackRock UK detracted materially from performance, held back in part by their biases towards growth companies during a quarter led by a rebound in stocks and sectors that had underperformed over the previous twelve months, notably banks. To take into account an updating of the strategic asset allocation, the portfolio s weightings changed at the end of the quarter. The most notable changes are smaller weightings in corporate bonds and property to accommodate a new position in short-dated corporate bonds. Given the small universe of shortdated corporate bond funds and the fact that none are managed against the BofAML Corporate & Collateralised 1-5 Year index modelled by Barrie & Hibbert, we have recommended populating this part of the portfolio with an exchange traded fund (ETF), the ishares Markit iboxx Corporate Bond 1-5 fund. We have also recommended adding the Kames Investment Grade Bond fund to the corporate bond fund blend to increase its diversification.

SMARTfund Growth OBSR December 2012 INVESTMENT OBJECTIVE To provide long term capital growth with less fluctuation of returns than high growth investment options. INVESTMENT POLICY To achieve the investment objectives, the Sub-Fund will invest in a diversified portfolio of funds and other permitted investments that have a similarly diversified character. The investments will be selected to achieve a mix of growth and defensive assets. A greater proportion of the portfolio will be allocated to funds investing in growth assets, such as shares and property and infrastructure securities, to provide the potential for capital growth than to funds investing in defensive assets such as fixed interest and cash. SUB-FUND DETAILS Fund Manager SMARTfund Administration Ltd Investment Adviser OBSR Advisory Services Ltd Fund Inception 03 November 2008 Fund Type Authorised Unit Trust Initial Charge 0.5% + Adviser Charging* Switching Charge 0% Exit Charge 0% Annual Management Charge 1% + Adviser Charging*% *Adviser Charging: the amount of remuneration that the Investor agrees with their Adviser that the Manager will pay the Adviser for advice provided. RISK PROFILE This fund s risk profile medium to high. ASSET ALLOCATION (AT 30 NOVEMBER 2012) Cash & Equivalents 1.8% Emerging Equity 7.9% Asia ex Japan Equity 5.1% Japan Equity 4.7% Euro Equity 6.4% US Equity 17.3% Corporate Bond 23.7% UK Equity 19.0% Property 14.1% Cash & Equivalents Corporate Bond Property UK Equity US Equity Euro Equity Japan Equity Asia ex Japan Equity Emerging Equity HOLDINGS (AT 30 NOVEMBER 2012) Asset Class Security Weighting (%) Cash & Equivalents Cash 1.80 Corporate Bond M&G Strategic Corporate Bond 11.71 Invesco Perpetual Corporate Bond 7.04 Henderson Strategic Bond 4.94 Property M&G Property Portfolio 8.53 Threadneedle UK Property Trust 5.59 UK Equity BlackRock UK Fund 7.86 JO Hambro UK Equity Fund 6.28 AXA Framlington UK Opportunities Fund 4.87 US Equity Threadneedle American Fund 6.77 Schroder US Mid Cap 5.76 AXA Framlington American Growth 4.76 Euro Equity Cazenove European Fund 3.25 Jupiter European Special Situations 3.13 Japan Equity Schroder Tokyo Fund 4.69 Asia ex Japan Equity Fidelity South East Asia Fund 3.02 Investec Asia ex Japan Fund 2.04 Emerging Equity First State Global Emerging Markets Leaders Fund 3.98 M&G Global Emerging Markets Fund 3.95 The actual investment held by the fund at any other date may differ. Once invested, both Adviser and Investor can logon to the SMARTfund Platform to view an up-to-date list of notionally allocated holdings.

SMARTfund Growth OBSR December 2012 PERFORMANCE (INCEPTION TO 30 NOVEMBER 2012) Percentage Growth Growth Strategy Composite Benchmark Cash Inception to 30.11.2012 47.6% 31.5% 7.1% Annualised volatility of investor returns since inception Inception to 30.11.2012 10.9% 14.9% 0.1% PAST PERFORMANCE SHOULD NOT BE SEEN AS A GUIDE TO FUTURE PERFORMANCE The performance and volatility figures above are based on the total investor returns from a notional unit issued on the date of inception of the sub-fund, with an initial capital value the same as the minimum investment amount for that fund. The notional unit is based on the AMC including zero (0%) Adviser Charging and therefore reflects performance after all other expenses that would be included in the TER. The composite benchmark is a composite of the following ETFs: ishares GBP Corporate Bond (representing Corporate Bonds), ishares FTSE EPRA/NAREIT UK PTY (representing Property), LYXOR F ALL LYXOR ETF FTSE ALL SHARE (representing UK Equity), ishares S&P 500 (representing US Equity), ishares MSCI Europe ex-uk (representing European Equity), ishares MSCI JAPAN (representing Japan Equity), ishares MSCI Emerging Market (representing Emerging Market Equity) and ishares MSCI Pacific ex- Japan Idx (representing Asia ex Japan Equity). Each of these ETFs has been selected to represent an average market sector performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the fund. The percentage of the composite formed by each ETF is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 12 Month GBP rate. All data has been obtained from the Telekurs data exchange. *Performance data does not exist before the 03 Nov 2008 as the fund had not launched

SMARTfund Aggressive Growth OBSR December 2012 INVESTMENT OBJECTIVE To provide a long term capital growth by investing in growth assets. INVESTMENT POLICY To achieve the investment objectives, the Sub-Fund will invest in a diversified portfolio of funds and other permitted investments that have a similarly diversified character. The investments will be selected to achieve a mix of growth and defensive assets. A greater proportion of the portfolio will be allocated to funds investing in growth assets, such as shares and property and infrastructure securities, to provide the potential for capital growth than to funds investing in defensive assets such as fixed interest and cash. SUB-FUND DETAILS Fund Manager SMARTfund Administration Ltd Investment Adviser OBSR Advisory Services Ltd Fund Inception 03 November 2008 Fund Type Authorised Unit Trust Initial Charge 0.5% + Adviser Charging* Switching Charge 0% Exit Charge 0% Annual Management Charge 1% + Adviser Charging*% *Adviser Charging: the amount of remuneration that the Investor agrees with their Adviser that the Manager will pay the Adviser for advice provided. RISK PROFILE This fund s risk profile is high. ASSET ALLOCATION (AT 30 NOVEMBER 2012) US Equity 23.4% Cash & Equivalents UK Equity UK Equity 21.0% Euro Equity 21.7% US Equity Euro Equity Cash & Equivalents 0.9% Japan Equity 4.5% Japan Equity Asia ex Japan Equity Emerging Equity 18.5% Asia ex Japan Equity 10.0% Emerging Equity HOLDINGS (AT 30 NOVEMBER 2012) Asset Class Security Weighting (%) Cash & Equivalents Cash 0.90 UK Equity BlackRock UK Fund 7.79 JO Hambro UK Equity Fund 7.33 AXA Framlington UK Opportunities Fund 5.83 US Equity Threadneedle American Fund 9.53 Schroder US Mid Cap 7.42 AXA Framlington American Growth 6.45 Euro Equity Jupiter European Special Situations 8.46 Cazenove European Fund 7.75 Blackrock European Dynamic Fund 5.47 Japan Equity Schroder Tokyo Fund 4.55 Asia ex Japan Equity Investec Asia ex Japan Fund 7.13 Aberdeen Asia-Pacific Fund 5.04 Emerging Equity Threadneedle Latin American Fund 6.17 Schroders Asian Alpha Plus Fund 5.35 Jupiter Emerging European Opportunities Fund 4.86 The actual investment held by the fund at any other date may differ. Once invested, both Adviser and Investor can logon to the SMARTfund Platform to view an up-to-date list of notionally allocated holdings.

SMARTfund Aggressive Growth OBSR December 2012 PERFORMANCE (INCEPTION TO 30 NOVEMBER 2012) Aggressive Growth Strategy Composite Benchmark Cash Percentage Growth Inception to 30.11.2012 53.0% 45.1% 7.1% Annualised volatility of investor returns since inception Inception to 30.11.2012 17.7% 20.6% 0.1% PAST PERFORMANCE SHOULD NOT BE SEEN AS A GUIDE TO FUTURE PERFORMANCE The performance and volatility figures above are based on the total investor returns from a notional unit issued on the date of inception of the sub-fund, with an initial capital value the same as the minimum investment amount for that fund. The notional unit is based on the AMC including zero (0%) Adviser Charging and therefore reflects performance after all other expenses that would be included in the TER. The composite benchmark is a composite of the following ETFs: LYXOR F ALL LYXOR ETF FTSE ALL SHARE (representing UK Equity), ishares S&P 500 (representing US Equity), ishares MSCI Europe ex-uk (representing European Equity), ishares MSCI JAPAN (representing Japan Equity), ishares MSCI Emerging Market (representing Emerging Market Equity) and ishares MSCI Pacific ex-japan Idx (representing Asia ex Japan Equity). Each of these ETFs has been selected to represent an average market sector performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the fund. The percentage of the composite formed by each ETF is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 12 Month GBP rate. All data has been obtained from the Telekurs data exchange. *Performance data does not exist before the 03 Nov 2008 as the fund had not launched FUND COMMENTARY (PROVIDED BY OBSR) The Aggressive Growth Portfolio delivered a positive return over the three months to the end of November, although fund selection detracted from performance in aggregate relative to the relevant IMA sectors. The fund s asset allocation focused solely on equities over the period. This was helpful over the period as that asset class was supported by a notable uptick in investor risk appetite; moreover, the large positions in Emerging Market and continental European equities was help ful as they were supported by improved investor sentiment. Nevertheless, the high weightings in the US weighed on returns as the region underperformed the rebound in other, riskier regions. From a fund selection perspective, the UK equity fund blend was the main detractor from performance over the period despite significant strength from JOHCM UK Equity Income, which benefited from its mid-cap bias and holdings in cheaper mid-cap stocks with sensitivity to UK economic growth, which they rightly expected to pick up. Both AXA Framlington UK Select Opportunities and BlackRock UK detracted materially from performance, held back in part by their biases towards growth companies during a quarter led by a rebound in stocks and sectors that had underperformed over the previous twelve months, notably banks. The US equity allocation also underperformed, held back in particular by AXA Framlington American Growth as its growth bias, including a large weighting in technolog9(l)-13(59a( )-1173BT)4(24 330.41 Tm573BT)4(24 %)] T9(w)8(e)-247ighti oretur.359a( )-1173BT2,-6( )] TJETB4(S)-5(e)-24(