Utilico Emerging Markets

The Company focuses on the undeveloped and developing markets of Asia, Latin America, Emerging Europe and Africa but has the flexibility to invest in markets world-wide. The Company generally seeks to invest in emerging market countries where the Directors believe that there are positive investment attributes such as political stability, economic development, an acceptable legal framework and an encouraging aptitude to foreign investment. The Company has the flexibility to invest in shares, bonds, convertibles and other types of securities, including non-investment grade bonds and to invest in unlisted securities. The Company may also use derivative instruments such as American Depositary Receipts, promissory notes, foreign currency hedges, interest rate hedges, contracts for difference, financial futures, call and put options and warrants and similar instruments for investment purposes and efficient portfolio management, including protecting the Company's portfolio and balance sheet from major corrections and reducing, transferring or eliminating investment risks in its investments. In accordance with the Company's investment policy, the Investment Manager abides by the following investment restrictions: Investment Restrictions Unquoted and untraded investments (excluding the Company's subsidiary UEM (Mauritius) and the Company's investment in a segregated account of GERP, an unquoted Bermuda segregated accounts company), must not exceed 10 per cent. of Gross Assets at the time of investment; No single investment may exceed 20 per cent. of Gross Assets at the time of investment; Investments other than in infrastructure, utility and related companies (including GERP) must not exceed 20 per cent. of Gross Assets at the time of investment; Investments in a single country must not exceed 50 per cent. of Gross Assets at the time of investment; Not more than 10 per cent. in aggregate of the value of the total assets of the Company at the time the investment is made will be invested in other closed-ended investment funds which are listed on the Official List (except to the extent that those investment funds have stated investment policies to invest no more than 15 per cent. of their total assets in other investment companies which are listed on the Official List); and Regardless of the investment policy of other closed-ended investment funds listed on the Official List and which are invested in by the Company, the Company shall not invest in such funds more than 15 per cent. in aggregate of the value of the total assets of the Company at the time the investment is made.