Var5 Fund

A key aspect of the strategy is a scientific and mathematical approach to investment. The manager believes that the behavior of the international security market is not 100% random and that there are statistically predictable movements, which can be identified and acted upon.

Central to identifying these movements is rigorous research. The Investment Advisor has established an extensive database of prices for the major international securities markets and has tested its trading theories using proprietary technology, statistical and mathematical research processes.

The trading strategy adopted by the Investment Advisor is dynamic and involves the structuring of investments in futures (managed futures), options and bonds strategies in order to minimize the drawdown.

Primarily, the structured trading strategies will have expiry dates of approximately one month, however where the
opportunities arise, the Investment Advisor may make short-term structured investments with expiry scenarios of
days or possibly hours. The Investment Advisor adopts an
extremely technical and analytical approach to
determining the investment strategies.

In period of high volatility (such as October 2008 till March 2009, May 2010 or August 2011), the fund will tend to have the same number of long/short options.