The stock exchanges are at early stages of development and therefore it may not be possible, in the short term, to invest all of the Fund's assets in equity securities. The Fund may therefore invest temporarily in fixed income securities. The Fund is also aggressively pursuing the concept of local investors swapping shares held in public companies for the more diversified portfolio of the Fund.

The companies in which the Fund is investing have one or more of the following characteristics:

1. The company's product(s) must be well established in the local and or regional markets.
2. The price of the company's shares are attractively price as measured by their Price to Earnings & Price to Book Value Ratios compared with Industry Averages.
3. The company is recording high rates of growth in revenues and profits.
4. The company is in a solid position of sustainable export earnings.
5. The company's shares are depressed following a period of unusual or temporarily poor results.

The length of the investment period will depend on the growth in the Fund's assets and the growth in the activity in the regional markets. In the absence of availability of suitable equity investments, the Fund will invest in short term debt securities of sovereign and corporate issuers.

Because the stock markets of the Caribbean lack liquidity, the Fund managers will seek to invest a larger than normal percentage (maximum 25% up to a limit of US$7 million) of the Fund's assets into investments that can be liquidated at any time. The objective of the Fund is growth and long term capital appreciation, therefore, investments may be made from time to time in the international funds managed by Perpetual which will allow for easy liquidation at any time to meet any foreign currency redemptions.

Since most of the Caribbean companies are quite small by international standards, the Fund could easily become a significant shareholder. It will not however acquire more than 10% of the voting shares of any one company. The Fund will not invest in the shares or fixed income securities of Cave Shepherd & Co Limited.

The Fund will act strictly as a portfolio investor and will not take legal and or management control or seek directorships in any of the companies in which it invests.