ANNUAL REPORT 2005.qxd - Herald

HERALD INVESTMENT FUND PLCThe Herald Worldwide FundDIRECTORS' REPORT for the year ended 31 December 2007The Directors present herewith the Annual Report and audited Financial Statements for the year ended 31 December 2007.Statement of Directors' ResponsibilitiesThe Directors are responsible for preparing the Annual Report and Financial Statements in accordance with Irish Law andGenerally Accepted Accounting Practice in Ireland including the accounting standards issued by the Accounting StandardsBoard and published by the Institute of Chartered Accountants in Ireland.Irish company law requires the Directors to prepare Financial Statements for each financial year which give a true and fair viewof the state of affairs of the Company and of the profit and loss of the Company for that period. In preparing these FinancialStatements, the Directors are required to:• select suitable accounting policies and then apply them consistently;• make judgements and estimates that are reasonable and prudent; and• prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company willcontinue in business.The Directors confirm that they have complied with the above requirements in preparing the financial statements.The Directors are responsible for keeping proper books of account which disclose with reasonable accuracy at any time thefinancial position of the Company and to enable them to ensure that the Financial Statements comply with the CompaniesActs 1963 to 2006 and the European Communities (Undertakings for Collective Investments in Transferable Securities)Regulations 2003 (as amended). They are also responsible for safeguarding the assets of the Company and hence for takingreasonable steps for the prevention and detection of fraud and other irregularities.The Directors are also responsible for preparing a Directors' Report that complies with the requirements of the Companies Acts1963 to 2006.Principal Activities and Future DevelopmentsThe Company has been approved by the Irish Financial Regulator as an investment company pursuant to Part XIII of theCompanies Act, 1990.The objective of the Fund is to seek to achieve capital growth by investing principally in securities of issuers in the technology,communications and multi-media sectors which in the view of the Investment Manager offer potential growth in excess of theaverage.Risk Management objectives and policiesThe main risks arising from the Company's financial instruments are market, currency, interest rate, price, liquidity andcounterparty credit risks as given in the notes to these accounts.Events since the year endThere have been no significant events affecting the Company since the year end.Results and DividendsThe results and dividends for the year are set out in the profit and loss account on page 16.Directors and SecretaryThe Directors who held office during the year under review were:Alan Jeffers, Chairman (Irish)William Backhouse LVO (British)David Boyle DL (British)Adrian Waters (Irish)10