ANNUAL REPORT 2005.qxd - Herald

HERALD INVESTMENT FUND PLCThe Herald Worldwide FundSTATEMENT OF CUSTODIAN’S RESPONSIBILITIES for the year ended 31 December 2007The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2003 (asamended), ("the Regulations"), require the Custodian to take reasonable care so as to ensure that the Fund is managed inaccordance with the Regulations and Memorandum and Articles of Association. In particular, the Custodian must:• satisfy itself on a continuing basis on reasonable grounds and report that the Manager has managed the Companyin accordance with the limitations imposed on the investment and borrowing powers of the Company by theRegulations and Memorandum and Articles of Association;• take into its custody or under its control, all the assets of the Company and hold them in trust for the Shareholdersin accordance with the Regulations and Memorandum and Articles of Association; and• satisfy itself that the valuation of the Shares of the Company and that the sale, issue, repurchase and redemption ofShares of the Company are being carried out in accordance with the Regulations and Memorandum and Articles ofAssociation.12