DESCRIPTION

RETAIL HEDGE FUND

Exposure Limits

Where a retail hedge fund invests in other portfolios,

(a)

investment in any one portfolio may not exceed 75% of the market value of the portfolio;

(b)

it may invest in participatory interests issued by a fund of funds only if that fund consisting of other portfolios is domiciled and regulated outside the Republic and where the fund consisting of other portfolios is not invested in another fund consisting of other portfolios or feeder fund;

(c)

it may invest in participatory interests issued by a feeder fund only if the feeder fund holds assets outside the Republic of at least eighty five per cent of the value of the feeder fund

Due Diligence

A due diligence should be conducted by the manager before and Due Diligence during the period of the investment, in respect of underlying hedge funds that the portfolios intends or is invested in.