Contents

1 In toto2 Inside track: Don’t remove the crutches!4 Insight: Equities: United Kingdom, United States, Eurozone, Japan, Rest of world, Emerging Europe6 In view: Bonds7 Incisive: Currencies In lieu: Alternative investments8 Informed: Composite benchmarks

fyiAutumn issueOctober 2009

Andrew PopperSG Hambros Group Chief Investment Officer

SG Hambros

For your investments

EDITORIAL

In the wake of the financial meltdown, triggered byLehman’s collapse a year ago, the vast array ofstimulative measures introduced on a global scale,both fiscal and monetary, have clearly worked, at leastfor now. As a result equity markets have recordedspectacular gains and normal functioning has returnedto most financial markets. Recognising this positiveturnaround does not mean overlooking the still-strongeconomic head winds that raise doubts over longer-termsustainability. Consequently, policymakers will retain the support mechanism consisting of large fiscal spending and relaxed monetary policies.

1

IN TOTO

Recommended asset allocation*

OVERALL UK US EUROZONE JAPAN EMERGING MARKETS

Equities neutral neutral neutral overweight overweight overweight

Government bonds underweight neutral underweight neutral underweight

Investment grade corporate bonds overweight neutral overweight overweight

Alternative investments overweight

*In relation to the SG Hambros benchmark allocation

Changes in major indices (year on year, 30 September 2008 – 30 September 2009)

UK US EUROZONE JAPAN

Equities 4.7% -10.5% -5.4% -10.0% FTSE 100 Dow Jones DJ Euro Stoxx 50 Nikkei

Bonds 11.6% 6.4% 10.6% 3.0%Bloomberg/EFFAS Government Bond (all maturities >1 year) Indicies

Indices are for guidance purposes only. Percentages are based on capital returns in local currencyPast performance should not be seen as an indication of future performance Source: Thomson datastream

Equity markets produced a string of spectacular gains in the third quarter.

The corporate earnings reporting season delivered a large number of positive surprises and there has been a revival of interest in mega mergers and acquisitions (M&As).

Normal conditions have returned to most financial markets and key measures of financial stress have all shown marked signs of improvement.

Although there are still some doubts about long-term sustainability, it is now clear that the vast array of stimulative measures – fiscal and monetary – introduced on a global scale a year ago have been effective.

Our investment strategy is to maintain a medium-to-overweight exposure to the riskier asset classes – equities, corporate bonds and hedge funds – to take advantage of near-term opportunities.

However, if signs of trouble reappear we will be ready to de-risk the investment portfolios again.

Impressive equity markets gains have been nicely complemented by a return to stability in overall financial conditions. Key measures of financial stress – spreads between: LIBOR on the one hand and overnight rates and Treasuries on the other; sovereign and corporate bonds; investment-grade and high-yield bonds – have all displayed major signs of improvement.

In the wake of the financial meltdown, triggered by Lehman’s collapse a year ago, the vast array of stimulative measures introduced on a global scale, both fiscal and monetary, have clearly worked, at least for now. We find ourselves in uncharted waters and no one can foretell the long-term outcome, but what is clear is that for the time being the malignancy in the financial sector has been successfully removed and has not spread to the rest of the economy. In practical terms this means a serious recession, rather than another Great Depression, and a high probability of moderate economic expansion in the year ahead.

Corporate earnings announced during the latest reporting season produced a large number of positive surprises. The overall impression is that corporations have been able to deal better than expected with a recessionary environment by shedding costs and labour and by reducing inventories. One can, of course, quibble about the quality of earnings as they reflect cost-cutting and not solid revenues. This is undoubtedly true, but it still shows that the business sector is generally healthier than expected and well positioned to resume growth as economic conditions improve.

Equity markets continued to surprise through the summer by producing a string of spectacular gains. By the end of the third quarter, many market indices were showing double-digit year-to-date returns, with the strongest advances recorded in emerging markets. Such returns reflect a marked improvement in perceptions about corporate earnings and the economy at large. A recent revival of interest in mega M&As also bodes well for equities.

Don’t remove the crutches!

2

INSIDE TRACK

7%

6%

5%

4%

3%

2%

1%

0%

Key central bank rates (Sept 1999 – Sept 2009)

Source: Thomson DatastreamUSJapan

UKEurozone

1999 2000 2001 2003 2004 2005 20062002 2007 2008

3

Recognising a turnaround in economic conditions and market confidence does not mean overlooking the still-strong economic head winds that raise some doubts over longer-term sustainability. The concern is that the recent revival of the economy has been to a large extent in response to temporary factors such as widespread “cash for clunkers” programmes that gave a one-time boost to the troubled automobile industry.

Most disturbing is the continuation of job losses and resultant increase in unemployment. In many respects unemployment is a lagging indicator telling us more about the past than the future. However, rising unemployment is also a leading indicator anticipating more mortgage and credit cards defaults that may spell trouble for the banks. Weakness in labour markets also explains the failure of the housing markets to stage a meaningful recovery. Last but not least, despite the massive increase in bank reserves, consumer and corporate credit is still difficult to obtain.

Lack of signs of improvement in labour markets and other risks surrounding the recovery have led policymakers to the view that it is much too early to start withdrawing the fiscal and monetary measures that support the economy. The impression is that the patient is able to walk relatively well on crutches, but it is far from clear what would happen if the crutches were removed. So for the moment the message is: keep the crutches! Fiscal and monetary stimuli will remain in place for some time to come.

Investment strategy in current markets needs to take into account the complex reality of marked tangible improvements in economic and financial conditions accompanied by valid concerns about the longer term. This means, in our view, continued medium-to-overweight exposure to the riskier asset classes – equities, corporate bonds and hedge funds – to take advantage of near-term opportunities. It also means a watchful eye for trouble and readiness to de-risk portfolios rapidly when necessary.

The need to maintain support measures in place is forcing the main central banks to continue their uncomfortable navigation between the two monsters of deflation and inflation. Clearly, the immediate risk is still that of deflation. Despite the increase in reserves (monetary base) banks are still reluctant to lend and money supply stubbornly refuses to grow. Some have proposed negative interest rates on bank reserves as a possible remedy. But it is doubtful that this will work. Faced with negative rates banks will (as they are doing already) invest in treasury paper and still refrain from lending.

Quantitative easing (QE) is defined as the willingness of the central banks to buy on a large scale a wide range of assets and, as a result, expand their own balance sheets to unprecedented levels. Especially in the US, the Federal Reserve (Fed) has bought huge amounts of mortgage-backed securities and agency debt (read toxic assets). However, sooner or later, central banks will be faced with the need of withdrawing QE and it is questionable whether their timing will be right.

A new guessing game among market participants is “who will tighten first?” So far very few central banks have shown any intention of doing so and the best bet is that lax monetary conditions and low interest rates will prevail for the foreseeable future. There is a fair chance that due to timidity and technical difficulties they will be slow to act and inflationary pressures will

reappear. For the Fed, reversing QE will mean selling this paper back to the market, which may not prove an easy task. In our view, despite the immediate risk of deflation, investors should consider hedging against inflation with structured products that provide such protection and by holding some gold positions in their portfolio as part of a diversified investment strategy.

Debates about changes in regulation that will reshape and reform the financial industry have continued unabated. In the UK the opposition Conservative party, expected to win the next election, surprised the markets by calling for the abolition of the FSA and the transfer of its functions to the Bank of England and a to-be-created consumer protection agency. Such a reshuffling may have its merits, but it is more important to define what are the responsibilities of the regulators rather than who is going to perform them. The plaque on the door is less of an issue.

The main challenge for policymakers is how to prevent the banks from repeating the sins of the past – taking too much risk and going cap in hand to the government when the bets turn sour. A politically expedient measure is to place curbs on the bonuses paid to bankers. This indeed may be justified, but a more effective approach would be to raise capital requirements for risk taking and increase the cost of capital by withdrawing the assumed government guarantee from the holders of subordinated notes issued by banks.

In the third quarter we continued to shift our asset allocation towards riskier assets such as equities and corporate bonds. Our positive view on equities and investment-grade corporate bonds proved to be correct and our clients’ portfolios registered positive performance. Higher-risk portfolios experienced the best returns due to the strength of equity markets, but returns were good for all strategies with the government stimuli benefiting all assets. Some portfolios lagged benchmarks as due to relatively low exposure to risky cyclical stocks (and higher exposure to more stable defensive sectors).

Our view is that in the next quarter the equity rally may pause or slow down as the current economic rebound seems to be already priced in. Markets may become range-bound, requiring a more selective approach and we may decide to take profits on some equity positions. However, in the next period we will maintain at least a neutral exposure to equities, which we still see as core holdings and many of the portfolios. The tightening of corporate spreads is set to continue in line with liquidity improvement and strong demand from investors, but there is still value embedded in investment-grade corporate bonds and we continue to be overweight in this asset class.

Andrew PopperSG Hambros Group Chief Investment Officer

fyi

4

United StatesOne year after Lehman’s collapse there are convincing signs of a turnaround in the US economy, mainly in response to easier monetary and fiscal policies, including consumer-support initiatives like “cash for clunkers” and mortgage relief programs. House prices are slowly coming out of a trough, and some consumer confidence metrics are rising. Recent Fed reports suggest modest improvements in manufacturing and increases in new orders.

However, other economic data raise doubts about the sustainability of the recovery. Job losses continue in many of the major industry sectors, although the declines have moderated in recent months. Nonfarm payroll employment reports showed that a further 216,000 jobs were lost in August and the unemployment rate rose to 9.7 percent. Consumer credit for July showed further evidence of deleveraging. The 10.4% month-on-month annualised drop in consumer credit was surprisingly large. Additionally, wholesale inventories slipped 1.4% in July as the inventory correction continues.

Other cautionary evidence is seen in the massive rally in the long end of the US yield curve. The recent auction of the 30-year bonds met with good demand, particularly from central banks. The bullish tone in the bond market appears to be at odds with the bullish tone of US equity markets, which is a sign that investors are hedging their bets.

From the lows of March this year, US equity markets have posted their largest ever gains of any 6 month period. The S&P 500 has gained 56%, largely driven by the Financial sector (+141%), Industrials (+71%) and Materials (+71%). Defensive sectors such as Telecoms (+45%), Healthcare and Utilities (+40%) have substantially underperformed. In light of such strong divergence between cyclical and defensive sectors, we believe that some profit taking out of cyclical and into defensive sectors prudent.

The political scene is dominated by heated debates on healthcare reform. However, this seems to be a non-event for equity markets, which anticipate modest changes, i.e. some insurance coverage for non-insured but no state-run healthcare. Also, healthcare reforms may not get passed until 2010. As a result the valuations of the sectors to be affected by healthcare reform have not been significantly impacted.

United KingdomDuring the third quarter the UK equity market continued to build on gains achieved during the second quarter. Investor sentiment remained generally positive through the summer period with the result that the FTSE 100 posted a solid return of 18.2% during the third quarter. Whilst the UK equity market recovery continues to be broadly based, the strongest gains were in the mining and financial sectors as investors played the global economic recovery theme, coupled with expectations of stronger earnings growth in 2010.

Against this positive market backdrop it was not surprising to see defensive sectors underperforming cyclicals although we believe valuations remain attractive in both the pharmaceutical and telecoms sectors. Economic data in the UK has continued to be mixed although recent manufacturing and industrial production data were ahead of expectations. As a result, a growing number of economists believe the UK economy is now in recovery mode with positive GDP growth forecast for next year. Whilst it seems likely that the equity market may suffer from short-term profit taking, we believe the trends will remain positive.

Equities

INSIGHT

Changes in major indices(30 June 2009 – 30 September 2009)

EQUITIES

UK FTSE 100 20.8%US Dow Jones 15.0%Eurozone DJ Euro Stoxx 50 19.6%Japan Nikkei 1.8%

Past performance should not be seen as an indication of future performanceSource: Thomson Datastream

Equity performance of major economies (Sept 2008 – Sept 2009)

Past performance should not be seen as an indicator of future performance

Source: Thomson Datastream

110%

50%

MSCI United KingdomMSCI USA

MSCI EurozoneMSCI Japan

S O N D J F M A M J J A S

20092008

100%

90%

80%

70%

60%

US inflation (year on year % change) (Sept 1999 – Sept 2009)

Source: Thomson Datastream

10

8

0

-2

-4

-6

USA CPIUSA PPI

2000 2001 2002 2003 2004 2005 2006

4

2

2007

6

2008

-8

5

Rest of world

South East Asia Asian markets have continued to rally, fuelled by ample liquidity and improving economic numbers. Given the pace of recovery, we are concerned that there may be potential for some short-term pull back, but we remain positive for the longer term.

Valuations are no longer cheap, but offer the compensation of upward earnings revisions. Investor inflows, positive sentiment and price momentum may add further fuel to the rally, as risk appetite clearly remains. An improvement in export growth remains a key determinant for sustained progress. We have a positive view on South Korea and Taiwan, and remain neutral on the more expensive markets of India and China.

Emerging EuropeThe economies of the main new members of the European Union present contrasting pictures. The Polish economy seems to be doing better than the rest. It still continued to grow in the early part of 2009 and, although it is now slowing down and unemployment is on the rise, it will contract only marginally for the year as a whole. Economic growth is also set to resume in Poland next year. By contrast, in Hungary the economic picture is much bleaker with the GDP expected to decline nearly 7% this year and the recession likely to continue well into 2010. Hungary also has to comply with IMF recommendations requiring tighter monetary policies and fiscal moderation.

The Russian economy, heavily dependent on energy prices, is going through a difficult period and GDP is expected to contract by about 6% this year. The government is trying to implement counter-cyclical measures as fiscal accounts have moved into big deficits. Surpluses on the current account have narrowed significantly and net capital outflows have been recorded.

EurozoneThere is growing evidence to support the view that the economic recovery in Europe is gathering strength, although there are considerable differences in the pace of that recovery between the Eurozone core and Southern Europe. German investor confidence has risen to its highest level in three years following an improvement in factory orders, exports and business confidence. The Spanish economy, on the other hand, is still constrained by high unemployment and the after effects of a collapse in the property market. The European Central Bank (ECB) has upgraded its forecast for Eurozone GDP for 2010 and considers the current level of interest rates to be appropriate to deliver price stability.

European markets have responded well to an improving economic backdrop and although some consolidation is inevitable we do not consider current equity valuations to be excessive. Cyclical sectors have outperformed in 2009 and we would expect to see some catch-up from the more defensive sectors such as consumer staples, healthcare and utilities. European markets remain well placed to benefit from an improvement in the global economy.

JapanThe general election result had a relatively short-lived direct impact on the Nikkei. However, it did lead to an unwelcome strengthening of the Japanese yen against the US dollar. Given the inverse relationship that has apparently linked these two financial indicators we should be impressed by the Japanese equity market’s recent performance. The yen trading back in the low 90s against the dollar will create difficulties for Japan’s export- orientated economy.

However, increased evidence of recovery of the US Economy, still the main destination for Japanese exports, coupled with the strength of equity markets worldwide provided support to Japanese stocks. With the Nikkei at over 10,000 the Japanese market is still above the trading range within which it has been confined for most of the past year, and is consolidating the gains of the past six months. Further progress will, however, be dependent on hard data reinforcing the view that the US and global economic cycle has indeed passed its through.

GDP in the Eurozone (year on year % change) (Jun 1999 – Jun 2009)

Source: Thomson Datastream

6

4

-2

-4

-6

-8

2000 2001 2003 2004 2005 2006

FranceGermany

ItalySpain

2002

2007 2008

2

0

Asia equity markets ex Japan (Sept 2008 – Sept 2009)

Past performance should not be seen as an indicator of future performance

Source: Thomson Datastream

S O N D J F M A M J J A S

80%

90%

140%

130%

70%

60%

50%

MSCI ChinaMSCI Korea

MSCI IndiaMSCI Taiwan

20092008

100%

110%

120%

6

CurrenciesIn the third quarter the US dollar continued to decline against the euro and the yen, while trading in a fairly wide range against sterling. The soft tone of the US currency was primarily a market response to very low US interest rates and enormous deficit spending by the Federal Government. The weakness of the dollar inevitably renewed the debates about its status as the world’s reserve currency of choice. Indeed, according to the IMF, the USD accounts for around 65% of global FX reserves and the main holders of such reserves are unhappy to see their value constantly eroded. In a meeting last summer, the BRIC countries (Brazil, Russia, India and China) called for “a more diversified currency system”. They would like to see the dollar gradually replaced by an internationals reserve currency. Such calls may generate speculation detrimental to the dollar in currency markets, but should be taken with a pinch of salt. Past attempts to create an international reserve currency were not successful and the number of candidates to replace the dollar is limited, to say the least.

Sterling recently experienced a new bout of weakness against the euro. Market participants see the British economy’s prospects of recovery as clearly lagging behind the core Eurozone countries. There is also a widespread perception that the Bank of England will maintain its very accommodative policies much longer than the ECB.

Bonds

IN VIEW

Changes in major indices(30 June 2009 – 30 September 2009)

BONDS Bloomberg/EFFAS Government Bond (all maturities >1 year) Indices

UK 3.2%US 2.2%Eurozone 2.8%Japan 0.7%

Past performance should not be seen as an indication of future performanceSource: Bloomberg

USD relative to other currencies (Jan 2001 – Sept 2009)

Past performance should not be seen as an indicator of future performance

Source: Thomson Datastream

120%

110%

90%

70%

50%

2001 20062002 2003 2004 2005

GBPEUR

JPY

100%

80%

2007

60%

2008

INCISIVE

Global bond markets have moved in tandem in recent months, especially the Anglo-Saxon ones where QE continues to have a major impact. Bond yield curves remain very steep and will remain so until short-term interest rates controlled by central banks start rising. A flattening of the curve is therefore several months – perhaps a year – in the future. Savers faced with low interest rates and the probability they are likely to remain a feature of 2010, are attracted to global bond markets.

The supply of government debt that markets will have to absorb over the next few years remains very large. Furthermore, as the recent declines in the consumer price indices drop out of the inflation calculation, the very subdued headline rates of inflation are likely to become less benign. Thus, we conclude that the recent strength of the global bond market has been driven more by the flow of funds than an assessment of the economic fundamentals.

The spread between corporate bonds and government bonds remains relatively wide although it has narrowed in recent months. We anticipate that this narrowing will continue albeit at a reduced pace. We have in the past exploited this scenario by reducing our holdings of government or supranational bonds and replacing them with higher-yielding corporate debt. We have also recently invested in bond funds which allow us to exploit higher yields yet at an acceptable risk given the diversification afforded by collective investment schemes. Again the funds selected, like the individual bonds populating our portfolios, reflect our cautious approach to investing in bonds of relatively short-dated maturity, around five years.

Multiple yield curves (17 Sept 2009)

Source: Bloomberg

5

2

1

0

-1

3 6 2 15 203

Euro benchmark curveUS Treasury activities

UK Government benchmark

1

4 30

4

3

10765 8

YM

9

7

Alternative investmentsAfter a very difficult 2008, the hedge fund industry emerged leaner and possibly stronger. Benefiting from their renewed nimbleness and ability to react to changes, hedge funds have produced consistent returns in 2009, even while equity markets experienced wild gyrations. The primary drivers of returns for hedge funds have been the normalisation of markets and reduced competition from proprietary trading desks and other hedge funds. The HFRX Global Index is up 10% year-to-date (mid-September).

Normally, hedge funds should be able to profit regardless of market direction. However, this did come under pressure last year as liquidity and therefore rational pricing disappeared. These conditions have greatly improved in 2009, when we have also seen an increase in equity market dispersion between good and bad stocks and a sharp recovery in convertible bonds. The recovery of convertible bonds has been one of the largest return generators for hedge funds this year. Event-driven strategies have also been a substantial driver of returns and the opportunity set continues to improve as M&A interest increases. There are, therefore, many reasons to believe that hedge fund returns will continue to exhibit the attractive risk-adjusted returns for the rest of the year and well into 2010.

Performance of hedge funds relative to equities (Sept 1999 – Sept 2009)

Past performance should not be seen as an indicator of future performance

Source: Bloomberg

–

50%

100%

150%

200%

Credit Suisse/Tremont Hedge Fund IndexMSCI World Index

S 99 S 00 S 01 S 02 S 03 S 04 S 05 S 06 S 07 S 08 S 09

250%

IN LIEU

IN ESSENCE

CommoditiesOverall commodities have recovered like most risky assets as the economic picture has recovered since early in the year. However, unlike equities momentum has slowed of late. In the third quarter oil prices spent most of the period around the $70 a barrel mark. Stronger economic data was supportive, but stocks of oil remain high as consumption has fallen over the last 18 months, andthis has capped prices. Gold, however, had a strong run recently breaking through the $1,000 level. Many investors concerned about the risk of future inflation as governments print money have turned to gold as a potential store of value.

Industrial metals started the quarter strongly as news of economic recovery gathered momentum, but have stalled recently. Lead has been supported by potential regulatory impact on supply. An incident of poisoning by lead from a factory in China has prompted violent reactions and could have a significant impact on supply as most of China’s lead smelting and refining capacity does not comply with environmental health requirements.

Agricultural commodities have been broadly stable of late. The outlook for corn and wheat is bearish as strong supply and high stock levels are likely to dampen prices.

Brent oil vs gold (Sept 2008 – Sept 2009)

Past performance should not be seen as an indicator of future performance

Source: Thomson Datastream

90

100

80

70

60

50

London Brent crude oilGold bullion (R.H. Scale)

O N D J F M A M J J A S

20092008

30

40

1050

700

750

1000

110

950

900

850

800

8

SG Hambros calculates composite benchmarks appropriate for different investor objectives, based upon MSCI Equity indices, Bloomberg/EFFAS Bond Indices, overnight cash rates and HFRI fund of hedge fund indices. The proportions vary according to strategy and are available on request.

The third quarter was very kind to investors of all types. A background of growing signs of economic recovery and the

DATA TO 30 SEPTEMBER 2009 3 MONTHS 6 MONTHS 9 MONTHS 12 MONTHS

STERLING DOMESTICBond portfolio 2.6% 1.5% 0.8% 9.5%Defensive 6.4% 8.0% 5.5% 6.6%Income and growth 9.1% 11.9% 7.4% 7.3%Balanced 12.8% 17.6% 10.5% 6.9%Capital growth 16.1% 23.0% 13.3% 5.7%Aggressive growth 19.1% 27.2% 15.0% 6.4%

STERLING INTERNATIONALBond portfolio 2.6% 1.5% 0.8% 9.5%Defensive 6.5% 8.0% 5.5% 6.9%Income and growth 9.2% 11.8% 7.5% 7.9%Balanced 13.0% 17.3% 10.6% 7.8%Capital growth 16.3% 22.6% 13.4% 6.9%Aggressive growth 19.3% 26.8% 15.1% 7.9%

US DOLLARBond portfolio 1.8% -0.9% -1.9% 5.2%Defensive 5.3% 8.6% 5.7% 2.5%Income and growth 7.5% 14.3% 9.3% 2.3%Balanced 9.9% 20.6% 13.5% 1.3%Capital growth 13.3% 31.6% 21.0% -1.1%Aggressive growth 15.7% 38.0% 24.2% -2.0%

EUROBond portfolio 2.3% 2.8% 3.6% 8.7%Defensive 5.1% 9.1% 7.6% 4.5%Income and growth 7.0% 13.6% 10.1% 2.7%Balanced 8.9% 18.0% 12.7% 1.9%Capital growth 11.6% 25.1% 16.1% -3.0%Aggressive growth 13.7% 29.8% 18.3% -4.1%

Hedge fund returns are estimated based upon HFRI data as of 29 September 2009Past performance should not be seen as an indication of future performance

expectation of interest rates being held low for some time has lead to a renewed desire to put money to work. Equities have been the strongest beneficiaries with major markets typically up 15-20% in the quarter, but bonds (both Government and corporate) and hedge funds have also strengthened. Apart from USD P1, which is still negative on a year-to-date basis, the indices are now all positive for the quarter and year-to-date, with the higher-risk ones up most.

Composite benchmarks

INFORMED

This document is issued by SG Hambros Bank Limited (“SG Hambros”) which is authorised and regulated by the Financial Services Authority. SG Hambros together with its subsidiaries forms the SG Hambros Group. The SG Hambros Group Companies are part of SG Private Banking, the private banking arm of the Société Générale Group. SG is the name of Société Générale Group’s international businesses. Société Générale is authorised by the Banque de France and by the Financial Services Authority and is regulated by the Financial Services Authority for the conduct of UK business.

Rules and regulations made for the protection of investors and/or depositors under the UK Financial Services and Markets Act 2000 will not apply to business conducted at or from offices located outside the UK and investors and/or depositors will not be able to benefit from the provisions of the Financial Services Compensation Scheme.

Legal and regulatory details of the main trading companies in the SG Hambros Group:

SG Hambros Bank Limited (“SG Hambros”)SG Hambros is registered in England and Wales under number 964058. The company’s registered office and principal place of business is at SG House, 41 Tower Hill, London EC3N 4SG. SG Hambros is authorised and regulated by the Financial Services Authority.

SG Hambros Bank & Trust (Bahamas) Limited (“SGH Bahamas”) SGH Bahamas is incorporated under the laws of the Commonwealth of the Bahamas under number 385. The company’s registered office and principal place of business is at SG Hambros Building, West Bay Street, Nassau, Bahamas.

SG (Bahamas) is licensed under the Banks and Trust Companies Regulation Act. The company’s principal activities are trust, banking and fund administration. The paid-up capital and reserves of SG (Bahamas) exceeded US$28 million as at 31 December 2006. Whilst the company’s financial statements are not a matter of public record, copies of the most recent audited financial statements are available on request.

SG Hambros Bank (Channel Islands) Limited (“SGH CI”) SGH CI is registered in Jersey under number 2693. The company’s registered office and principal place of business is at PO Box 78, SG Hambros House, 18 Esplanade, St Helier, Jersey JE4 8PR.

The Guernsey Branch of SGH CI has its principal place of business at PO Box 6, Hambro House, St Julian’s Avenue, St Peter Port, Guernsey GY1 3AE. SG Hambros Bank (Channel Islands) Limited is regulated for banking and investment business by the Jersey Financial Services Commission. The Guernsey branch of SG Hambros Bank (Channel Islands) Limited is regulated for banking and investment business by the Guernsey Financial Services Commission and the Jersey Financial Services Commission.

The paid-up capital and reserves of SG Hambros Bank (Channel Islands) Limited exceeded £166 million at 31 December 2008. Copies of the most recent audited summary financial statements are available on request. There are no investor or depositor compensation schemes in place in Jersey. There is no investor compensation scheme in place in Guernsey.

SG Hambros Bank (Channel Islands) Limited, Guernsey Branch is a participant in the Guernsey Banking Deposit Compensation Scheme; details are available from our office on request.

SG Hambros Bank (Gibraltar) Limited (“SGH Gibraltar”)SGH Gibraltar is registered in Gibraltar under number 1294. The company’s registered office and principal place of business is at Hambro House, 32 Line Wall Road, Gibraltar.

SG Hambros Bank (Gibraltar) Limited is regulated by the Gibraltar Financial Services Commission. The paid-up capital and reserves of SG Hambros Bank (Gibraltar) Limited exceeded £13 million as at 31 December 2006. Copies of the most recent audited financial statements are available on request.

SG Hambros Bank (Gibraltar) Limited is a participant in the Gibraltar Deposit Guarantee Scheme (“the Scheme”) established under the Deposit Guarantee Scheme Ordinance 1997 (“the Ordinance”). Payments under the Scheme are limited to 90% of a depositor’s total deposits which qualify for compensation under the Ordinance subject to a maximum payment to any one depositor of £18,000 (or €20,000 if greater). Further details of the Scheme are available on request or can be found at www.gdgb.gi. The Scheme does not apply to fiduciary deposits.

SG Hambros Bank (Gibraltar) Limited is a participant in the Gibraltar Investor Compensation Scheme. Further details are available on request or can be found at www.gics.gi

The price and value of investments and the income derived from them can go down as well as up and you may not get back the amount you invest. Changes in the rate of exchange may have an adverse effect on the value, price and income of investments in a currency other than your own. Past performance should not be seen as an indication of future performance. Any services and investments referred to may have tax consequences and it is important to bear in mind that we do not provide tax advice. The level of taxation depends on individual circumstances and such levels and bases of taxation can change. You should seek professional tax advice in order to understand any applicable tax consequences.

For more information about SG Hambros, please visit www.sghambros.com

© Copyright the Société Générale Group 2009. All rights reserved. 10/09

FYI/OCT09/GRP

SG Hambros Bank LimitedSG House41 Tower HillLondon EC3N 4SG