Common use of Stabilisation Clause in Contracts

Stabilisation. You may enter transactions in newly issued securities in respect of which we are the stabilisation manager and the price of which may have been influenced by measures taken to stabilise it. Stabilisation enables the market price of a security to be maintained artificially during the period when a new issue of securities is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other securities relating to it. The FCA allows stabilisation in order to help counter the fact that when a new issue comes onto the market for the first time, the price can sometimes drop for a time before buyers are found. As long as the stabilisation manager follows FCA Rules (and rules set out in the Market Abuse Regulation), it is entitled to buy back the securities that were previously sold to investors or allotted to institutions which have decided not to keep them. The effect of this may be to keep the price at a higher level than it would otherwise be during the period of stabilisation. The stabilisation rules limit the period when a stabilisation manager may stabilise a new issue, fix the price at which the issue may be stabilised (in the case of shares and warrants, but not bonds) and require disclosure of the fact that a stabilisation manager may be stabilising but not that it is actually doing so. The fact that a new issue, or a related security, is being stabilised should not be taken as any indication of the level of interest from investors, nor of the price at which they are prepared to buy the securities. Emerging Markets You should be aware that there may be potential risks posed by volatile political, legal and commercial conditions in emerging markets which may affect the value of or result in the loss of investments. The quality and reliability of official data published by governments and their agencies in emerging markets might not be equivalent to that available in developed markets. In addition, the absence of developed securities markets as well as potentially underdeveloped banking and telecommunications systems in such countries may give rise to greater custody, settlement, clearing and registration risks. Foreign investment in issuers in emerging markets may be restricted – sometimes such restrictions may not be published and investors may not be readily made aware of them. In such circumstances, there may be restrictions on repatriation of capital or an investment may have to be scaled down to comply with local foreign ownership restrictions. Bonds – Government and Corporate Bonds and Notes, also known as fixed-interest investments, are types of loans where a Government or a company issues a bond to raise money. “Gilt-edged” securities - known as “gilts” - are borrowings made by the UK Government. Bonds are issued by most countries, and by companies (corporate bonds). In return for its loan, the issuer of the bond pays an interest amount to the bond purchaser. This interest amount, which is usually a fixed rate, is typically paid semi-annually or annually to the purchaser, for as long as the purchaser continues to own the bond. Many different types of bonds are available, both simple and complex. Most bonds have a pre-determined final payment date (the “maturity” date) - at which time the company returns a set amount of money to investors that own the bond at that time. Consequently, when purchasing a bond, an investor can usually predict when the investor’s money is likely to be repaid. This is important in making longer term investment decisions. Bond prices tend to have an inverse relationship to interest rates. A bond paying a 7% interest rate is likely to be valued more highly when general interest rates are low than when interest rates are high. The length of time to maturity (repayment) of the bond also affects the price of the bond and how much it may fluctuate (risk). The longer the maturity of the bond the more risky its price tends to be. An increase or decrease in interest rates is likely to have a minor impact on the price of a bond maturing in less than a year. The price of a bond maturing in 30 years is likely to be significantly impacted by an interest rate change. Short term bonds are therefore considered to represent lower risk than longer term bonds. Bonds are generally perceived to be lower risk than shares, although the risk depends on a variety of factors - and it is not the case that all bonds are low risk. Risk factors include: The ability of the lender to repay. If the lender is unable to repay the principal, the investor may sustain a loss of the entire investment. If the lender is unable to pay the interest, the purchaser will no longer receive the annual or semi- annual interest coupon. Generally, Government issued bonds are lower risk than corporate bonds. Bonds are rated according to the ability of the issuer to pay. These ratings are assigned by third party agencies. The price of a bond may fluctuate during its life. If the purchaser sells the bond before the maturity date, the price at which it is sold may be lower than the purchase price, so the purchaser may lose money. The longer the time to maturity, the greater the risk that the price may fluctuate in this way. When a bond is redeemed a purchaser receives cash. The purchaser may wish to find an alternative investment for the cash. If interest rates have fallen since the purchaser originally purchased the bond, the re-invested cash may earn a much lower rate of return. This is known as re-investment risk. Not all bonds are liquid - i.e. it is not always possible to find a buyer for a bond. Bonds are not traded on a market but “over the counter” between one dealer and another. It is not always easy to determine the price of a bond or how easy it is to buy or sell. Generally, investment grade bonds are more liquid and therefore easier to buy or sell. Equities (Shares) Equities represent a part ownership in a company. As such, the owner of a share participates in the fortune of the company - for good or ill. If the company does well, the shares are likely to rise in price, but if the company does badly, the share price is likely to fall. Holders of ordinary shares are the last to be paid in the event of a company becoming insolvent. However, ordinary shareholders also have the potential for good returns provided the company does well and is perceived to be continuing to do well. Some shares pay a dividend, either semi-annually or quarterly. A dividend is an amount of money, determined by the company’s Board of Directors, which is a distribution of the company’s profits. Established, profitable companies tend to pay dividends and have a good record of providing a steady stream of dividend payments. Periods of economic difficulty may, however, interrupt such dividend payment for even the most established equities. Younger, less established companies that are building a business tend to retain their profits for re-investment. These are called “growth” companies as their business strategy is to grow their business rapidly. Shares are available in companies of different sizes, industrial sectors, geographical locations, and on different stock markets. Liquidity is an important risk factor when investing in individual equities and is generally driven by the market capitalisation (total value of issued shares) of the company and current market conditions. Liquidity levels can change rapidly and lack of liquidity often restricts trading in equities with smaller market capitalisations (known as mid cap and small cap). Information on overseas investments is not as readily available to the UK public as for UK companies and the financial pages of the national press give little coverage of the subject. Different time zones also mean that you will not always be able to get a real time price for overseas stocks during the UK trading day. Whether investing directly in overseas markets or through collective investment schemes, currency fluctuations need to be taken into account. A gain or loss made on the performance of a stock can easily be offset by a movement in the currency exchange rate. Alternatively a gain or loss on a stock could be compounded to make an even larger one. Liquidity considerations are similar to UK shares. Dealing/administrative costs tend to be higher than UK shares. Shares are usually perceived to represent greater risk than bonds. The price of individual shares can fluctuate considerably and can appreciate or decline rapidly. Shares can also remain in decline over long time periods. Share prices rise and fall according to the health of the company and general economic and market conditions. Individual share price rises and falls can be significant. Stock market investments tend to be more volatile than investments in most bonds. Shares purchased on the Alternative Investment Market (AIM) (especially those known as ‘xxxxx shares’) carry a higher degree of risk of losing money than other UK shares. This is because the requirements on companies that are listed on AIM are less stringent than those for companies with a full market listing. There is also usually a wider spread between the buying price and the selling price of these shares and if they have to be sold immediately, you may get back less than you paid for them due to a lack of liquidity. The price of these shares may change quickly and they may go down as well as up. It may also be difficult to obtain reliable information about their value or the extent of the risks to which they are exposed. Collective Investment Schemes (commonly known as ‘funds’) A fund is a term that covers different types of structure, normally Open Ended Investment Companies (‘OEICs’ - by far the most common) or Unit Trusts. Funds are arrangements that enable a number of investors to 'pool' their money, in order to gain access to professional fund managers. Investments held by these funds may typically include gilts, bonds and quoted equities, but depending on the type of scheme, may hold higher risk instruments such as property, derivatives, unquoted securities and other complex products. The value of a fund, and the income derived from it, can decrease as well as increase and you may not necessarily get back the amount you originally invested. In addition, funds bear investment management risks, insolvency risks and possibly liquidity risks. You should ensure that you understand the nature of any fund before you invest in it. Investment trusts Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. They will be subject to a combination of the risks associated with shares, bonds and funds in which they are invested. The value of investment trusts, or the income derived from them, can decrease as well as increase and you may not necessarily get back the amount you invested Exchange Traded Funds (ETFs) ETFs are investment funds, traded like shares which hold assets such as shares, commodities or bonds. They normally closely track the performance of a financial index, and as such, their value can go down as well as up and you may get back less than you originally invested. Some ETFs rely on complex investment techniques, or hold riskier underlying assets, to achieve their objectives and therefore you should always ensure you read the documentation provided to ensure you fully understand before you invest the risks you are taking on.

Stabilisation. You The Investment Manager may enter on behalf of the Client effect transactions in newly issued securities in respect investments the prices of which we are may be being stabilised. The Investment Manager or its representatives may from time to time recommend or effect on behalf of the stabilisation manager and Client transactions in securities the price of which may have been influenced by measures taken bids made or transactions effected for the purpose of stabilising the price of those securities. The following explanation of stabilisation should be read carefully. Its purpose is to stabilise itenable the Client to judge whether they wish funds to be invested at all in such securities. If the Client does not wish to authorise the Investment Manager to effect transactions in such securities on their behalf without further reference to themselves this must be advised to the Investment Manager in accordance with clause 11 of the Agreement. Stabilisation enables is a process whereby the market price of a security to be maintained is artificially pegged or fixed during the period when in which a new issue of securities is sold to the public. Stabilisation may take place in the securities of the new issue or in other securities related to the new issue in such a way that the price of the other securities may affect not only the price of the new issue but also the price of other securities relating to itor vice versa. The FCA allows reason stabilisation in order to help counter the fact is permitted is that when a new issue comes onto is brought to market the market for the first time, sudden glut will sometimes force the price can sometimes drop lower for a period of time before buyers are foundfound for the securities on offer. As long as he obeys a strict set of rules, the stabilisation manager follows FCA Rules (and rules set out in ‘stabilising manager’, normally the Market Abuse Regulation)issuing house chiefly responsible for bringing a new issue to market, it is entitled to buy back securities in the securities market that were he has previously sold to investors or allotted to institutions which who were included in the new issue but who have decided not to keep themcontinue participating. The effect of this may be to keep the price at a higher level than it would otherwise be the case during the period of stabilisation. The statutory stabilisation rules limit the period when in which a stabilisation stabilising manager may stabilise a new issue, fix the price at which the issue he may be stabilised stabilise (in the case of shares and warrants, warrants but not bonds) ), and require disclosure of the fact him to disclose that a stabilisation manager he may be stabilising (but not that it is actually doing sohe is) stabilising. The fact that a new issue, issue or a related security, security is being stabilised does not in itself mean that investors are not interested in the issue, but neither should not the existence of transactions in an issue where stabilisation may take place be taken relied upon as any an indication of that investors are interested in the level of interest from investors, nor of new issue or interested in purchasing at the price at which they are prepared to buy the securities. Emerging Markets You should be aware that there may be potential risks posed by volatile political, legal and commercial conditions in emerging markets which may affect the value of or result in the loss of investments. The quality and reliability of official data published by governments and their agencies in emerging markets might not be equivalent to that available in developed markets. In addition, the absence of developed securities markets as well as potentially underdeveloped banking and telecommunications systems in such countries may give rise to greater custody, settlement, clearing and registration risks. Foreign investment in issuers in emerging markets may be restricted – sometimes such restrictions may not be published and investors may not be readily made aware of them. In such circumstances, there may be restrictions on repatriation of capital or an investment may have to be scaled down to comply with local foreign ownership restrictions. Bonds – Government and Corporate Bonds and Notes, also known as fixed-interest investments, are types of loans where a Government or a company issues a bond to raise money. “Gilt-edged” securities - known as “gilts” - are borrowings made by the UK Government. Bonds are issued by most countries, and by companies (corporate bonds). In return for its loan, the issuer of the bond pays an interest amount to the bond purchaser. This interest amount, which is usually a fixed rate, is typically paid semi-annually or annually to the purchaser, for as long as the purchaser continues to own the bond. Many different types of bonds are available, both simple and complex. Most bonds have a pre-determined final payment date (the “maturity” date) - at which time the company returns a set amount of money to investors that own the bond at that time. Consequently, when purchasing a bond, an investor can usually predict when the investor’s money is likely to be repaid. This is important in making longer term investment decisions. Bond prices tend to have an inverse relationship to interest rates. A bond paying a 7% interest rate is likely to be valued more highly when general interest rates are low than when interest rates are high. The length of time to maturity (repayment) of the bond also affects the price of the bond and how much it may fluctuate (risk). The longer the maturity of the bond the more risky its price tends to be. An increase or decrease in interest rates is likely to have a minor impact on the price of a bond maturing in less than a year. The price of a bond maturing in 30 years is likely to be significantly impacted by an interest rate change. Short term bonds are therefore considered to represent lower risk than longer term bonds. Bonds are generally perceived to be lower risk than shares, although the risk depends on a variety of factors - and it is not the case that all bonds are low risk. Risk factors include: The ability of the lender to repay. If the lender is unable to repay the principal, the investor may sustain a loss of the entire investment. If the lender is unable to pay the interest, the purchaser will no longer receive the annual or semi- annual interest coupon. Generally, Government issued bonds are lower risk than corporate bonds. Bonds are rated according to the ability of the issuer to pay. These ratings are assigned by third party agencies. The price of a bond may fluctuate during its life. If the purchaser sells the bond before the maturity date, the price at which it is sold may be lower than the purchase price, so the purchaser may lose money. The longer the time to maturity, the greater the risk that the price may fluctuate in this way. When a bond is redeemed a purchaser receives cash. The purchaser may wish to find an alternative investment for the cash. If interest rates have fallen since the purchaser originally purchased the bond, the re-invested cash may earn a much lower rate of return. This is known as re-investment risk. Not all bonds are liquid - i.e. it is not always possible to find a buyer for a bond. Bonds are not traded on a market but “over the counter” between one dealer and another. It is not always easy to determine the price of a bond or how easy it is to buy or sell. Generally, investment grade bonds are more liquid and therefore easier to buy or sell. Equities (Shares) Equities represent a part ownership in a company. As such, the owner of a share participates in the fortune of the company - for good or ill. If the company does well, the shares are likely to rise in price, but if the company does badly, the share price is likely to fall. Holders of ordinary shares are the last to be paid in the event of a company becoming insolvent. However, ordinary shareholders also have the potential for good returns provided the company does well and is perceived to be continuing to do well. Some shares pay a dividend, either semi-annually or quarterly. A dividend is an amount of money, determined by the company’s Board of Directors, which is a distribution of the company’s profits. Established, profitable companies tend to pay dividends and have a good record of providing a steady stream of dividend payments. Periods of economic difficulty may, however, interrupt such dividend payment for even the most established equities. Younger, less established companies that are building a business tend to retain their profits for re-investment. These are called “growth” companies as their business strategy is to grow their business rapidly. Shares are available in companies of different sizes, industrial sectors, geographical locations, and on different stock markets. Liquidity is an important risk factor when investing in individual equities and is generally driven by the market capitalisation (total value of issued shares) of the company and current market conditions. Liquidity levels can change rapidly and lack of liquidity often restricts trading in equities with smaller market capitalisations (known as mid cap and small cap). Information on overseas investments is not as readily available to the UK public as for UK companies and the financial pages of the national press give little coverage of the subject. Different time zones also mean that you will not always be able to get a real time price for overseas stocks during the UK trading day. Whether investing directly in overseas markets or through collective investment schemes, currency fluctuations need to be taken into account. A gain or loss made on the performance of a stock can easily be offset by a movement in the currency exchange rate. Alternatively a gain or loss on a stock could be compounded to make an even larger one. Liquidity considerations are similar to UK shares. Dealing/administrative costs tend to be higher than UK shares. Shares are usually perceived to represent greater risk than bonds. The price of individual shares can fluctuate considerably and can appreciate or decline rapidly. Shares can also remain in decline over long time periods. Share prices rise and fall according to the health of the company and general economic and market conditions. Individual share price rises and falls can be significant. Stock market investments tend to be more volatile than investments in most bonds. Shares purchased on the Alternative Investment Market (AIM) (especially those known as ‘xxxxx shares’) carry a higher degree of risk of losing money than other UK shares. This is because the requirements on companies that are listed on AIM are less stringent than those for companies with a full market listing. There is also usually a wider spread between the buying price and the selling price of these shares and if they have to be sold immediately, you may get back less than you paid for them due to a lack of liquidity. The price of these shares may change quickly and they may go down as well as up. It may also be difficult to obtain reliable information about their value or the extent of the risks to which they are exposed. Collective Investment Schemes (commonly known as ‘funds’) A fund is a term that covers different types of structure, normally Open Ended Investment Companies (‘OEICs’ - by far the most common) or Unit Trusts. Funds are arrangements that enable a number of investors to 'pool' their money, in order to gain access to professional fund managers. Investments held by these funds may typically include gilts, bonds and quoted equities, but depending on the type of scheme, may hold higher risk instruments such as property, derivatives, unquoted securities and other complex products. The value of a fund, and the income derived from it, can decrease as well as increase and you may not necessarily get back the amount you originally invested. In addition, funds bear investment management risks, insolvency risks and possibly liquidity risks. You should ensure that you understand the nature of any fund before you invest in it. Investment trusts Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. They will be subject to a combination of the risks associated with shares, bonds and funds in which they are invested. The value of investment trusts, or the income derived from them, can decrease as well as increase and you may not necessarily get back the amount you invested Exchange Traded Funds (ETFs) ETFs are investment funds, traded like shares which hold assets such as shares, commodities or bonds. They normally closely track the performance of a financial index, and as such, their value can go down as well as up and you may get back less than you originally invested. Some ETFs rely on complex investment techniques, or hold riskier underlying assets, to achieve their objectives and therefore you should always ensure you read the documentation provided to ensure you fully understand before you invest the risks you transactions are taking onplace.

Stabilisation. You may enter transactions in newly issued securities in respect of which we are the stabilisation manager and the price of which may have been influenced by measures taken to stabilise it. Stabilisation enables the market price of a security to be maintained artificially during the period when a new issue of securities is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other securities relating to it. The FCA allows stabilisation in order to help counter the fact that when a new issue comes onto the market for the first time, the price can sometimes drop for a time before buyers are found. As long as the stabilisation manager follows FCA Rules (and rules set out in the Market Abuse Regulation), it is entitled to buy back the securities that were previously sold to investors or allotted to institutions which have decided not to keep them. The effect of this may be to keep the price at a higher level than it would otherwise be during the period of stabilisation. The stabilisation rules limit the period when a stabilisation manager may stabilise a new issue, fix the price at which the issue may be stabilised (in the case of shares and warrants, but not bonds) and require disclosure of the fact that a stabilisation manager may be stabilising but not that it is actually doing so. The fact that a new issue, or a related security, is being stabilised should not be taken as any indication of the level of interest from investors, nor of the price at which they are prepared to buy the securities. Emerging Markets You should be aware that there may be potential risks posed by volatile political, legal and commercial conditions in emerging markets which may affect the value of or result in the loss of investments. The quality and reliability of official data published by governments and their agencies in emerging markets might not be equivalent to that available in developed markets. In addition, the absence of developed securities markets as well as potentially underdeveloped banking and telecommunications systems in such countries may give rise to greater custody, settlement, clearing and registration risks. Foreign investment in issuers in emerging markets may be restricted – sometimes such restrictions may not be published and investors may not be readily made aware of them. In such circumstances, there may be restrictions on repatriation of capital or an investment may have to be scaled down to comply with local foreign ownership restrictions. Bonds – Government and Corporate Bonds and Notes, also known as fixed-interest investments, are types of loans where a Government or a company issues a bond to raise money. “Gilt-edged” securities - known as “gilts” - are borrowings made by the UK Government. Bonds are issued by most countries, and by companies (corporate bonds). In return for its loan, the issuer of the bond pays an interest amount to the bond purchaser. This interest amount, which is usually a fixed rate, is typically paid semi-annually or annually to the purchaser, for as long as the purchaser continues to own the bond. Many different types of bonds are available, both simple and complex. Most bonds have a pre-determined final payment date (the “maturity” date) - at which time the company returns a set amount of money to investors that own the bond at that time. Consequently, when purchasing a bond, an investor can usually predict when the investor’s money is likely to be repaid. This is important in making longer term investment decisions. Bond prices tend to have an inverse relationship to interest rates. A bond paying a 7% interest rate is likely to be valued more highly when general interest rates are low than when interest rates are high. The length of time to maturity (repayment) of the bond also affects the price of the bond and how much it may fluctuate (risk). The longer the maturity of the bond the more risky its price tends to be. An increase or decrease in interest rates is likely to have a minor impact on the price of a bond maturing in less than a year. The price of a bond maturing in 30 years is likely to be significantly impacted by an interest rate change. Short term bonds are therefore considered to represent lower risk than longer term bonds. Bonds are generally perceived to be lower risk than shares, although the risk depends on a variety of factors - and it is not the case that all bonds are low risk. Risk factors include: The ability of the lender to repay. If the lender is unable to repay the principal, the investor may sustain a loss of the entire investment. If the lender is unable to pay the interest, the purchaser will no longer receive the annual or semi- semi-annual interest coupon. Generally, Government issued bonds are lower risk than corporate bonds. Bonds are rated according to the ability of the issuer to pay. These ratings are assigned by third party agencies. The price of a bond may fluctuate during its life. If the purchaser sells the bond before the maturity date, the price at which it is sold may be lower than the purchase price, so the purchaser may lose money. The longer the time to maturity, the greater the risk that the price may fluctuate in this way. When a bond is redeemed a purchaser receives cash. The purchaser may wish to find an alternative investment for the cash. If interest rates have fallen since the purchaser originally purchased the bond, the re-invested cash may earn a much lower rate of return. This is known as re-investment risk. Not all bonds are liquid - i.e. it is not always possible to find a buyer for a bond. Bonds are not traded on a market but “over the counter” between one dealer and another. It is not always easy to determine the price of a bond or how easy it is to buy or sell. Generally, investment grade bonds are more liquid and therefore easier to buy or sell. Equities (Shares) Equities represent a part ownership in a company. As such, the owner of a share participates in the fortune of the company - for good or ill. If the company does well, the shares are likely to rise in price, but if the company does badly, the share price is likely to fall. Holders of ordinary shares are the last to be paid in the event of a company becoming insolvent. However, ordinary shareholders also have the potential for good returns provided the company does well and is perceived to be continuing to do well. Some shares pay a dividend, either semi-annually or quarterly. A dividend is an amount of money, determined by the company’s Board of Directors, which is a distribution of the company’s profits. Established, profitable companies tend to pay dividends and have a good record of providing a steady stream of dividend payments. Periods of economic difficulty may, however, interrupt such dividend payment for even the most established equities. Younger, less established companies that are building a business tend to retain their profits for re-investment. These are called “growth” companies as their business strategy is to grow their business rapidly. Shares are available in companies of different sizes, industrial sectors, geographical locations, and on different stock markets. Liquidity is an important risk factor when investing in individual equities and is generally driven by the market capitalisation (total value of issued shares) of the company and current market conditions. Liquidity levels can change rapidly and lack of liquidity often restricts trading in equities with smaller market capitalisations (known as mid cap and small cap). Information on overseas investments is not as readily available to the UK public as for UK companies and the financial pages of the national press give little coverage of the subject. Different time zones also mean that you will not always be able to get a real time price for overseas stocks during the UK trading day. Whether investing directly in overseas markets or through collective investment schemes, currency fluctuations need to be taken into account. A gain or loss made on the performance of a stock can easily be offset by a movement in the currency exchange rate. Alternatively a gain or loss on a stock could be compounded to make an even larger one. Liquidity considerations are similar to UK shares. Dealing/administrative costs tend to be higher than UK shares. Shares are usually perceived to represent greater risk than bonds. The price of individual shares can fluctuate considerably and can appreciate or decline rapidly. Shares can also remain in decline over long time periods. Share prices rise and fall according to the health of the company and general economic and market conditions. Individual share price rises and falls can be significant. Stock market investments tend to be more volatile than investments in most bonds. Shares purchased on the Alternative Investment Market (AIM) (especially those known as ‘xxxxx shares’) carry a higher degree of risk of losing money than other UK shares. This is because the requirements on companies that are listed on AIM are less stringent than those for companies with a full market listing. There is also usually a wider spread between the buying price and the selling price of these shares and if they have to be sold immediately, you may get back less than you paid for them due to a lack of liquidity. The price of these shares may change quickly and they may go down as well as up. It may also be difficult to obtain reliable information about their value or the extent of the risks to which they are exposed. Collective Investment Schemes (commonly known as ‘funds’) A fund is a term that covers different types of structure, normally Open Ended Investment Companies (‘OEICs’ - by far the most common) or Unit Trusts. Funds are arrangements that enable a number of investors to 'pool' their money, in order to gain access to professional fund managers. Investments held by these funds may typically include gilts, bonds and quoted equities, but depending on the type of scheme, may hold higher risk instruments such as property, derivatives, unquoted securities and other complex products. The value of a fund, and the income derived from it, can decrease as well as increase and you may not necessarily get back the amount you originally invested. In addition, funds bear investment management risks, insolvency risks and possibly liquidity risks. You should ensure that you understand the nature of any fund before you invest in it. Investment trusts Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. They will be subject to a combination of the risks associated with shares, bonds and funds in which they are invested. The value of investment trusts, or the income derived from them, can decrease as well as increase and you may not necessarily get back the amount you invested Exchange Traded Funds (ETFs) ETFs are investment funds, traded like shares which hold assets such as shares, commodities or bonds. They normally closely track the performance of a financial index, and as such, their value can go down as well as up and you may get back less than you originally invested. Some ETFs rely on complex investment techniques, or hold riskier underlying assets, to achieve their objectives and therefore you should always ensure you read the documentation provided to ensure you fully understand before you invest the risks you are taking on.

Stabilisation. You may enter This statement complies with the rules of the FCA. We or our representatives may, from time to time recommend transactions in newly issued securities in respect of which we are investments to the stabilisation manager and Client, or carry out such transaction on your behalf, where the price of which may have been influenced by measures taken to stabilise it. You should read the explanation below carefully. This is designed to help you understand whether you wish your funds to be invested at all in such investments and, if you do, whether you wish: a) to be consulted before we carry out any such transaction on your behalf; or b) to authorise us to carry out any such transaction on your behalf without first having to consult you. What is stabilisation? Stabilisation enables the market price of a security to be maintained artificially during the period when a new issue of securities is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other securities relating to it. The FCA allows stabilisation in order to help counter the fact that that, when a new issue comes onto the market for the first time, the price can sometimes drop for a time before buyers are found. Stabilisation is carried out by a “stabilisation manager” (normally the firm chiefly responsible for bringing a new issue to market). As long as the stabilisation stabilising manager follows FCA Rules (and rules a strict set out in the Market Abuse Regulation)of rules, it he is entitled to buy back the securities that were previously sold to investors or allotted to institutions which have decided not to keep them. The effect of this may be to keep the price at a higher level than it would otherwise be during the period of stabilisation. The stabilisation rules rules: a) limit the period when a stabilisation manager may stabilise a new issue, ; b) fix the price at which the issue he may be stabilised stabilise (in the case of shares and warrants, warrants but not bonds; and c) and require disclosure of the fact him to disclose that a stabilisation manager he may be stabilising but not that it he is actually doing so. The fact that a new issue, issue or a related security, security is being stabilised should not be taken as any indication of the level of interest from investors, nor of the price at which they are prepared to buy the securities. Emerging Markets You should be aware that there may be potential risks posed by volatile political, legal and commercial conditions in emerging markets which may affect the value of or result in the loss of investments. The quality and reliability of official data published by governments and their agencies in emerging markets might not be equivalent to that available in developed markets. In addition, the absence of developed securities markets as well as potentially underdeveloped banking and telecommunications systems in such countries may give rise to greater custody, settlement, clearing and registration risks. Foreign investment in issuers in emerging markets may be restricted – sometimes such restrictions may not be published and investors may not be readily made aware of them. In such circumstances, there may be restrictions on repatriation of capital or an investment may have to be scaled down to comply with local foreign ownership restrictions. Bonds – Government and Corporate Bonds and Notes, also known as fixed-interest investments, are types of loans where a Government or a company issues a bond to raise money. “Gilt-edged” securities - known as “gilts” - are borrowings made by the UK Government. Bonds are issued by most countries, and by companies (corporate bonds). In return for its loan, the issuer of the bond pays an interest amount to the bond purchaser. This interest amount, which is usually a fixed rate, is typically paid semi-annually or annually to the purchaser, for as long as the purchaser continues to own the bond. Many different types of bonds are available, both simple and complex. Most bonds have a pre-determined final payment date (the “maturity” date) - at which time the company returns a set amount of money to investors that own the bond at that time. Consequently, when purchasing a bond, an investor can usually predict when the investor’s money is likely to be repaid. This is important in making longer term investment decisions. Bond prices tend to have an inverse relationship to interest rates. A bond paying a 7% interest rate is likely to be valued more highly when general interest rates are low than when interest rates are high. The length of time to maturity (repayment) of the bond also affects the price of the bond and how much it may fluctuate (risk). The longer the maturity of the bond the more risky its price tends to be. An increase or decrease in interest rates is likely to have a minor impact on the price of a bond maturing in less than a year. The price of a bond maturing in 30 years is likely to be significantly impacted by an interest rate change. Short term bonds are therefore considered to represent lower risk than longer term bonds. Bonds are generally perceived to be lower risk than shares, although the risk depends on a variety of factors - and it is not the case that all bonds are low risk. Risk factors include: The ability of the lender to repay. If the lender is unable to repay the principal, the investor may sustain a loss of the entire investment. If the lender is unable to pay the interest, the purchaser will no longer receive the annual or semi- annual interest coupon. Generally, Government issued bonds are lower risk than corporate bonds. Bonds are rated according to the ability of the issuer to pay. These ratings are assigned by third party agencies. The price of a bond may fluctuate during its life. If the purchaser sells the bond before the maturity date, the price at which it is sold may be lower than the purchase price, so the purchaser may lose money. The longer the time to maturity, the greater the risk that the price may fluctuate in this way. When a bond is redeemed a purchaser receives cash. The purchaser may wish to find an alternative investment for the cash. If interest rates have fallen since the purchaser originally purchased the bond, the re-invested cash may earn a much lower rate of return. This is known as re-investment risk. Not all bonds are liquid - i.e. it is not always possible to find a buyer for a bond. Bonds are not traded on a market but “over the counter” between one dealer and another. It is not always easy to determine the price of a bond or how easy it is to buy or sell. Generally, investment grade bonds are more liquid and therefore easier to buy or sell. Equities (Shares) Equities represent a part ownership in a company. As such, the owner of a share participates in the fortune of the company - for good or ill. If the company does well, the shares are likely to rise in price, but if the company does badly, the share price is likely to fall. Holders of ordinary shares are the last to be paid in the event of a company becoming insolvent. However, ordinary shareholders also have the potential for good returns provided the company does well and is perceived to be continuing to do well. Some shares pay a dividend, either semi-annually or quarterly. A dividend is an amount of money, determined by the company’s Board of Directors, which is a distribution of the company’s profits. Established, profitable companies tend to pay dividends and have a good record of providing a steady stream of dividend payments. Periods of economic difficulty may, however, interrupt such dividend payment for even the most established equities. Younger, less established companies that are building a business tend to retain their profits for re-investment. These are called “growth” companies as their business strategy is to grow their business rapidly. Shares are available in companies of different sizes, industrial sectors, geographical locations, and on different stock markets. Liquidity is an important risk factor when investing in individual equities and is generally driven by the market capitalisation (total value of issued shares) of the company and current market conditions. Liquidity levels can change rapidly and lack of liquidity often restricts trading in equities with smaller market capitalisations (known as mid cap and small cap). Information on overseas investments is not as readily available to the UK public as for UK companies and the financial pages of the national press give little coverage of the subject. Different time zones also mean that you will not always be able to get a real time price for overseas stocks during the UK trading day. Whether investing directly in overseas markets or through collective investment schemes, currency fluctuations need to be taken into account. A gain or loss made on the performance of a stock can easily be offset by a movement in the currency exchange rate. Alternatively a gain or loss on a stock could be compounded to make an even larger one. Liquidity considerations are similar to UK shares. Dealing/administrative costs tend to be higher than UK shares. Shares are usually perceived to represent greater risk than bonds. The price of individual shares can fluctuate considerably and can appreciate or decline rapidly. Shares can also remain in decline over long time periods. Share prices rise and fall according to the health of the company and general economic and market conditions. Individual share price rises and falls can be significant. Stock market investments tend to be more volatile than investments in most bonds. Shares purchased on the Alternative Investment Market (AIM) (especially those known as ‘xxxxx shares’) carry a higher degree of risk of losing money than other UK shares. This is because the requirements on companies that are listed on AIM are less stringent than those for companies with a full market listing. There is also usually a wider spread between the buying price and the selling price of these shares and if they have to be sold immediately, you may get back less than you paid for them due to a lack of liquidity. The price of these shares may change quickly and they may go down as well as up. It may also be difficult to obtain reliable information about their value or the extent of the risks to which they are exposed. Collective Investment Schemes (commonly known as ‘funds’) A fund is a term that covers different types of structure, normally Open Ended Investment Companies (‘OEICs’ - by far the most common) or Unit Trusts. Funds are arrangements that enable a number of investors to 'pool' their money, in order to gain access to professional fund managers. Investments held by these funds may typically include gilts, bonds and quoted equities, but depending on the type of scheme, may hold higher risk instruments such as property, derivatives, unquoted securities and other complex products. The value of a fund, and the income derived from it, can decrease as well as increase and you may not necessarily get back the amount you originally invested. In addition, funds bear investment management risks, insolvency risks and possibly liquidity risks. You should ensure that you understand the nature of any fund before you invest in it. Investment trusts Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. They will be subject to a combination of the risks associated with shares, bonds and funds in which they are invested. The value of investment trusts, or the income derived from them, can decrease as well as increase and you may not necessarily get back the amount you invested Exchange Traded Funds (ETFs) ETFs are investment funds, traded like shares which hold assets such as shares, commodities or bonds. They normally closely track the performance of a financial index, and as such, their value can go down as well as up and you may get back less than you originally invested. Some ETFs rely on complex investment techniques, or hold riskier underlying assets, to achieve their objectives and therefore you should always ensure you read the documentation provided to ensure you fully understand before you invest the risks you are taking on.

Stabilisation. You may enter This statement complies with the rules of the FCA. We or our representatives may, from time to time recommend transactions in newly issued securities in respect of which we are investments to the stabilisation manager and Client, or carry out such transaction on your behalf, where the price of which may have been influenced by measures taken to stabilise it. You should read the explanation below carefully. This is designed to help you understand whether you wish your funds to be invested at all in such investments and, if you do, whether you wish: a) to be consulted before we carry out any such transaction on your behalf; or b) to authorise us to carry out any such transaction on your behalf without first having to consult you. What is stabilisation? Stabilisation enables the market price of a security to be maintained artificially during the period when a new issue of securities is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other securities relating to it. The FCA allows stabilisation in order to help counter the fact that that, when a new issue comes onto the market for the first time, the price can sometimes drop for a time before buyers are found. Stabilisation is carried out by a “stabilisation manager” (normally the firm chiefly responsible for bringing a new issue to market). As long as the stabilisation stabilising manager follows FCA Rules (and rules a strict set out in the Market Abuse Regulation)of rules, it he is entitled to buy back the securities that were previously sold to investors or allotted to institutions which have decided not to keep them. The effect of this may be to keep the price at a higher level than it would otherwise be during the period of stabilisation. The stabilisation rules rules: a) limit the period when a stabilisation manager may stabilise a new issue, ; b) fix the price at which the issue he may be stabilised stabilise (in the case of shares and warrants, warrants but not bonds; and c) and require disclosure of the fact him to disclose that a stabilisation manager he may be stabilising but not that it he is actually doing so. The fact that a new issue, issue or a related security, security is being stabilised should not be taken as any indication of the level of interest from investors, nor of the price at which they are prepared to buy the securities. Emerging Markets You should be aware that there may be potential risks posed by volatile political, legal and commercial conditions in emerging markets which may affect the value of or result in the loss of investments. The quality and reliability of official data published by governments and their agencies in emerging markets might not be equivalent to that available in developed markets. In addition, the absence of developed securities markets as well as potentially underdeveloped banking and telecommunications systems in such countries may give rise to greater custody, settlement, clearing and registration risks. Foreign investment in issuers in emerging markets may be restricted Schedule 2 – sometimes such restrictions may not be published and investors may not be readily made aware of them. In such circumstances, there may be restrictions on repatriation of capital or an investment may have to be scaled down to comply with local foreign ownership restrictions. Bonds – Government and Corporate Bonds and Notes, also known as fixed-interest investments, are types of loans where a Government or a company issues a bond to raise money. “Gilt-edged” securities - known as “gilts” - are borrowings made by the UK Government. Bonds are issued by most countries, and by companies (corporate bonds). In return for its loan, the issuer of the bond pays an interest amount to the bond purchaser. This interest amount, which is usually a fixed rate, is typically paid semi-annually or annually to the purchaser, for as long as the purchaser continues to own the bond. Many different types of bonds are available, both simple and complex. Most bonds have a pre-determined final payment date (the “maturity” date) - at which time the company returns a set amount of money to investors that own the bond at that time. Consequently, when purchasing a bond, an investor can usually predict when the investor’s money is likely to be repaid. This is important in making longer term investment decisions. Bond prices tend to have an inverse relationship to interest rates. A bond paying a 7% interest rate is likely to be valued more highly when general interest rates are low than when interest rates are high. The length of time to maturity (repayment) of the bond also affects the price of the bond and how much it may fluctuate (risk). The longer the maturity of the bond the more risky its price tends to be. An increase or decrease in interest rates is likely to have a minor impact on the price of a bond maturing in less than a year. The price of a bond maturing in 30 years is likely to be significantly impacted by an interest rate change. Short term bonds are therefore considered to represent lower risk than longer term bonds. Bonds are generally perceived to be lower risk than shares, although the risk depends on a variety of factors - and it is not the case that all bonds are low risk. Risk factors include: The ability of the lender to repay. If the lender is unable to repay the principal, the investor may sustain a loss of the entire investment. If the lender is unable to pay the interest, the purchaser will no longer receive the annual or semi- annual interest coupon. Generally, Government issued bonds are lower risk than corporate bonds. Bonds are rated according to the ability of the issuer to pay. These ratings are assigned by third party agencies. The price of a bond may fluctuate during its life. If the purchaser sells the bond before the maturity date, the price at which it is sold may be lower than the purchase price, so the purchaser may lose money. The longer the time to maturity, the greater the risk that the price may fluctuate in this way. When a bond is redeemed a purchaser receives cash. The purchaser may wish to find an alternative investment for the cash. If interest rates have fallen since the purchaser originally purchased the bond, the re-invested cash may earn a much lower rate of return. This is known as re-investment risk. Not all bonds are liquid - i.e. it is not always possible to find a buyer for a bond. Bonds are not traded on a market but “over the counter” between one dealer and another. It is not always easy to determine the price of a bond or how easy it is to buy or sell. Generally, investment grade bonds are more liquid and therefore easier to buy or sell. Equities (Shares) Equities represent a part ownership in a company. As such, the owner of a share participates in the fortune of the company - for good or ill. If the company does well, the shares are likely to rise in price, but if the company does badly, the share price is likely to fall. Holders of ordinary shares are the last to be paid in the event of a company becoming insolvent. However, ordinary shareholders also have the potential for good returns provided the company does well and is perceived to be continuing to do well. Some shares pay a dividend, either semi-annually or quarterly. A dividend is an amount of money, determined by the company’s Board of Directors, which is a distribution of the company’s profits. Established, profitable companies tend to pay dividends and have a good record of providing a steady stream of dividend payments. Periods of economic difficulty may, however, interrupt such dividend payment for even the most established equities. Younger, less established companies that are building a business tend to retain their profits for re-investment. These are called “growth” companies as their business strategy is to grow their business rapidly. Shares are available in companies of different sizes, industrial sectors, geographical locations, and on different stock markets. Liquidity is an important risk factor when investing in individual equities and is generally driven by the market capitalisation (total value of issued shares) of the company and current market conditions. Liquidity levels can change rapidly and lack of liquidity often restricts trading in equities with smaller market capitalisations (known as mid cap and small cap). Information on overseas investments is not as readily available to the UK public as for UK companies and the financial pages of the national press give little coverage of the subject. Different time zones also mean that you will not always be able to get a real time price for overseas stocks during the UK trading day. Whether investing directly in overseas markets or through collective investment schemes, currency fluctuations need to be taken into account. A gain or loss made on the performance of a stock can easily be offset by a movement in the currency exchange rate. Alternatively a gain or loss on a stock could be compounded to make an even larger one. Liquidity considerations are similar to UK shares. Dealing/administrative costs tend to be higher than UK shares. Shares are usually perceived to represent greater risk than bonds. The price of individual shares can fluctuate considerably and can appreciate or decline rapidly. Shares can also remain in decline over long time periods. Share prices rise and fall according to the health of the company and general economic and market conditions. Individual share price rises and falls can be significant. Stock market investments tend to be more volatile than investments in most bonds. Shares purchased on the Alternative Investment Market (AIM) (especially those known as ‘xxxxx shares’) carry a higher degree of risk of losing money than other UK shares. This is because the requirements on companies that are listed on AIM are less stringent than those for companies with a full market listing. There is also usually a wider spread between the buying price and the selling price of these shares and if they have to be sold immediately, you may get back less than you paid for them due to a lack of liquidity. The price of these shares may change quickly and they may go down as well as up. It may also be difficult to obtain reliable information about their value or the extent of the risks to which they are exposed. Collective Investment Schemes (commonly known as ‘funds’) A fund is a term that covers different types of structure, normally Open Ended Investment Companies (‘OEICs’ - by far the most common) or Unit Trusts. Funds are arrangements that enable a number of investors to 'pool' their money, in order to gain access to professional fund managers. Investments held by these funds may typically include gilts, bonds and quoted equities, but depending on the type of scheme, may hold higher risk instruments such as property, derivatives, unquoted securities and other complex products. The value of a fund, and the income derived from it, can decrease as well as increase and you may not necessarily get back the amount you originally invested. In addition, funds bear investment management risks, insolvency risks and possibly liquidity risks. You should ensure that you understand the nature of any fund before you invest in it. Investment trusts Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. They will be subject to a combination of the risks associated with shares, bonds and funds in which they are invested. The value of investment trusts, or the income derived from them, can decrease as well as increase and you may not necessarily get back the amount you invested Exchange Traded Funds (ETFs) ETFs are investment funds, traded like shares which hold assets such as shares, commodities or bonds. They normally closely track the performance of a financial index, and as such, their value can go down as well as up and you may get back less than you originally invested. Some ETFs rely on complex investment techniques, or hold riskier underlying assets, to achieve their objectives and therefore you should always ensure you read the documentation provided to ensure you fully understand before you invest the risks you are taking on.Defined Terms