Harbour

Holdings Ltd.

Fund Investment Objectives

The objective of the Fund is to generate the highest level of return, assuming above average risk levels during periods of favourable market conditions. During periods of uncertain market conditions, the Fund seeks to preserve capital. The Fund will attempt to realize this investment objective generally through investments in a varied portfolio of common US companies. The Fund normally emphasizes small and mid-cap stocks with a market capitalization usually under USD 2.5bn. In addition, the Fund may invest in preferred stocks and derivative securities, use leverage and sell securities short.