Halifax Special Situations Fund F

To achieve capital growth by investment in UK companies. These companies can be large, medium or small. The Fund is actively managed by the Fund Manager who chooses investments with the aim of outperforming the FTSE All-Share Index by 3% per annum on a rolling 3 year basis, before deduction of fees. At least 80% of the Fund will invest in shares of large, medium and small sized UK companies. Up to 10% of the Fund may be invested in shares of other companies anywhere in the world. The Fund invests in shares of companies which, in the Fund Manager’s opinion, are considered to be undervalued by the market, such as those which are trading at a lower value than expected from their financial status. The Fund also aims to take advantage of opportunities, for example those created by management changes, company recovery situations and market valuation anomalies. The Fund Manager is limited in the extent to which positions can vary to those of the Index. The limits help to provide a balance between the spread of assets within the fund and risk management. They also provide a balance between the amount the Fund can vary from the Index and providing the Fund Manager with flexibility to seek to outperform the Index. As a result the Fund’s performance may differ substantially from the Index. The FTSE All-Share Index has been selected as an appropriate benchmark as it provides a representation of the returns of securities in the UK equity market. Investors should aim to hold their investment in the Fund for the medium to long term (at least five to ten years). Any Income received by the Fund is retained in the Fund and has the effect of increasing the share price. Derivatives and stock lending may be used for the purpose of managing the Fund in a way that is designed to reduce risk or cost and/or generate extra income or growth (often referred to as efficient portfolio management). Shares can usually be bought and sold on any working day.