Innisfree Funds do charge an interest rate of 9% that is tax deductible in Sweden. The Innisfree ³interest² is then passed through Luxembourg, without any tax in Luxembourg as it is used a conduit vehicle only, to the UK. We use Luxembourg entirely for the purpose of moving our investment return back to the UK in the most efficient form within the Double Tax Treaties that exist between the Swedish, Luxembourg and the UK Governments.

In the UK, Innisfree Funds, which are all UK resident and domiciled, prepare and submit tax returns on behalf of all of the investors in our funds. The investors are all liable for that tax in the UK and all of our investors pay the tax that is due.

Innisfree has no offshore holding companies that hold interests in our funds and all of our funds are UK tax compliant.

The partners of our funds are disclosed by type and geography on our website (www.innisfree.co.uk). Our investors are in the main international pension funds and insurance companies, many of them are household names too.

We have had some family offices in some of our previous funds and some of these family offices have been located in low tax jurisdictions. We currently have no family offices in any of our four long term funds.

Innisfree has never been part of any criticism by any tax authorities for any of our tax arrangements. Indeed, Innisfree has always operated with the highest standards of disclosure and probity. This is a particular requirement of our investor group who would not tolerate Innisfree behaving in any other manner.

I hope that this is helpful

Regards

Tim Pearson