Prospectus Of Clerical Medical Open Ended Investment Company ...

(e)
Concentration of investments
A Fund could be subject to significant losses if it holds a large position in a particular
region that declines in value or is otherwise adversely affected. A Fund may be more
vulnerable to particular geographic, economic, political, regulatory or other
developments than would a more diversified investment.
(f)
Currency Exchange Rates
Depending on an investor's currency of reference, rises and falls in the value of
currency may adversely affect the value of an investment.
(g)
Inflation
As Shares in the Funds should be viewed as medium to long term investments the
impact of inflation on any growth in the Funds must be considered. The impact of
inflation is to reduce the value of such growth in real terms.
(h)
Investor Taxation
Tax regulations, concessions and accounting rules are not guaranteed and can
change at any time. Their value to a shareholder will depend on individual
circumstances.
(i)
Deferred Redemptions
In times of high redemption, to protect the interests of continuing shareholders, the
ACD may defer redemptions at a particular Valuation Point to the next Valuation Point
where requested redemptions exceed a specified percentage of a fund’s value. This
will allow the ACD to match the sale of scheme property to the level of redemption,
thereby reducing the impact of dilution on the Fund. Requests for redemption in
these circumstances will be treated on a pro rata basis to ensure the consistent
treatment of all shareholders. At the next such Valuation Point all deals relating to an
earlier Valuation Point will be completed before those relating to the later Valuation
Point are considered.
(j)
Suspension of Dealings in Shares
Investors are reminded that in certain circumstances their right to sell Shares (which
also includes switches) may be suspended (see "Suspension of Dealings" section ).
(k)
Liabilities of the Company and the Funds
Under the OEIC Regulations, the assets of each Fund can only be used to meet the
liabilities of, or claims against, that Fund. Whilst the provisions of the OEIC
Regulations provide for segregated liability between funds, the concept of
38