0 Matrix Alternative Investment Strategies Fund Limited Financial Statements for the Period Ended 30 June 2009

MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED

UNAUDITED SEMI-ANNUAL FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009

TABLE OF CONTENTS

Directory 2 - 3

Investment Manager s Report Matrix Bastion Fund 4 - 11 Matrix Conservative Approach Strategy Fund 12 - 15 Matrix Horizon Fund 16 - 19 Matrix New Horizon Fund 20 - 24 Matrix Event Driven (formerly MAX) Fund 25 - 33 Matrix Asset Based Fund 34 - 37 Matrix Asset Based 2 Fund 38 - 42 Matrix Asian Property Income Fund 43 - 46

Schedules of Investments Matrix Bastion Fund 47 Matrix Conservative Approach Strategy Fund 48 - 51 Matrix Horizon Fund 52 Matrix New Horizon Fund 53 Matrix Event Driven (formerly MAX) Fund 54 - 57 Matrix Asset Based Fund 58 Matrix Asset Based 2 Fund 59 Matrix Asian Property Income Fund 60

Statement of Net Assets Attributable to Redeemable Participating Shareholders 61 - 64

Statement of Operations 65 - 66

Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders 67 - 68

Statement of Cashflows 69 - 70

Notes to the Financial Statements 71 - 92

1 DIRECTORY

DIRECTORS MANAGER Bridget Guerin Matrix (Bermuda) Limited Mike Kirby* Canon s Court Olivier Maumus* 22 Victoria Street James Keyes * Hamilton HM12 Bermuda

REGISTERED OFFICE SECRETARY Washington Mall I Sharon Suess 3RD Floor Citi Hedge Fund Services, Ltd Reid Street Washington Mall 1 Hamilton HM 11 3rd Floor Bermuda Reid Street Hamilton HM 11 Bermuda

ADMINISTRATOR (up to 28 February 2009) DISTRIBUTOR Citi Fund Services (Ireland), Limited Matrix Money Management Limited 1 North Wall Quay One Vine Street Dublin 1 London W1J 0AH Ireland UK

ADMINISTRATOR, REGISTRAR AND TRANSFER AGENT (From 1 March 2009) SUB- ADMINISTRATOR (From 1 March 2009) CACEIS (Bermuda) Limited CACEIS Fastnet Ireland Limited William House One Custom House Plaza 20 Reid Street International Financial Services Centre Hamilton HM 11 Dublin 1 Bermuda Ireland

INVESTMENT MANAGER INVESTMENT MANAGER For Matrix Bastion Fund & Matrix Asset For Matrix Event Driven Fund & Matrix New Based Fund: Horizon Fund: Gottex Asset Management Sarl Matrix Money Management Limited Avenue de Rhodanie 48 One Vine Street 1007 Lausanne London Switzerland W1J 0AH

INVESTMENT MANAGER INVESTMENT MANAGER For Matrix Conservative Approach Strategy For Matrix Horizon Fund: Fund Lyster Watson Mangement, Inc. Collingham Capital Management LLP 888 Seventh Avenue 150 Brompton Road 40th Floor London SW3 1HX New York, NY 10019 UK USA

*Independent Directors

All Directors are non-executive

2 DIRECTORY (continued)

INVESTMENT MANAGER INVESTMENT MANAGER For Matrix Asian Property Income Fund: For Matrix Asset Based 2 Fund: ARA Strategic Capital I Pte. Limited Stillwater Capital Partners Inc 9 Temasek Boulevard 41 Madison Avenue #09-01 Suntec Tower Two 29th Floor, New York Singapore 038989 New York 10010

INDEPENDENT AUDITORS SPONSOR AT IRISH STOCK EXCHANGE PricewaterhouseCoopers NCB Stockbrokers Limited Chartered Accountants & Registered Auditors 3 George s Dock One Spencer Dock International Financial Services Centre North Wall Quay Dublin 1 Dublin 1 Ireland Ireland

CUSTODIAN LEGAL ADVISORS CACEIS Bank Luxembourg Dublin Branch As to Bermuda law: One Custom House Plaza Appleby International Financial Services Centre Canon s Court Dublin 1 22 Victoria Street Ireland Hamilton HM12 Bermuda SEGREGATED ACCOUNTS REPRESENTATIVE Appleby Management (Bermuda) Limited Argyle House 41 A Cedar Avenue Hamilton HM12 Bermuda

3 MATRIX BASTION FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The Institutional Shares of the Matrix Bastion Fund returned 5.05% over the first half of 2009. The Matrix Bastion Fund holds shares in the sterling shares of the Gottex Market Neutral Fund and the sterling shares of the Gottex Market Neutral Plus Fund. The investment objective of both of these funds is to generate consistent returns over the medium term with low correlation to major stock and fixed income market indices. Such returns are expected to be associated with a low degree of risk.

Market Review Quarter 1 of 2009 was characterized by the continued release of negative economic news that increasingly reinforced the severity of the global recession, combined with varying degrees of government intervention aimed at supporting markets. Global equity markets retested their lows of Quarter 4 2008, but rallied significantly through the second half of March following the powerful use of quantitative easing. The rally extended across markets, and lasted until June when market participants became more guarded about the pace of the global recovery. Hedge funds performed well for the first half of 2009, marginally underperforming equities despite an equity rally in excess of 40% from the lows recorded on 9th March 2009.

Financials lead equity markets down in both January and February. In January, it was learned that Bank of America needed additional government funding to absorb the losses on the assets it acquired from Merrill Lynch, and Citigroup received yet more support from the FDIC. The UK government increased its stake in Royal Bank of Scotland, while the Irish government took control of Anglo Irish Bank. Commerzbank received a capital injection from the German government, which received a 25% equity stake in return. Deutsche Bank surprised the market with a 3.9 billion loss, largely attributed to credit trading. The financial stresses in Eastern Europe came into focus in February, as market participants were concerned by the potential knock-on effect of these problems on the Western European banking sector. However, some US banks announced that they were profitable for the first two months of the year in March, and the US congress also suggested changes to accounting practices aimed at loosening accounting treatment of available for sale securities ('mark-to-market'). The announced purchase of up to USD 300 billion of Treasuries by the US Federal Reserve (the Fed ), and the Public Private Investment Program ( PPIP ) aimed at removing toxic assets from banks balance sheets, gave financials a further boost, and they lead an equity market rally on improved market sentiment. The MSCI World Index (Gross, USD) finished negative for Quarter 1 2009 (-11.78%) despite returning 7.60% in March, somehow defying the gravitational pull of poor global economic statistics.

The US Treasury market entered into a bear steepening move in January, which continued through February as the spectre of increased supply slightly outweighed the dire economic data. However, treasuries rallied in March at the Fed s announcement to purchase USD 300 billion of treasuries (quantitative easing), and the yield on 2-year Treasuries fell from 97 bps to 80 bps, leaving it only marginally higher than at the start of the year. Corporate credit rallied from the beginning of the year until mid-February, before spreads widened amidst an abrupt pullback of liquidity. The spread on the 5-year CDX.IG (an index of credit default swaps) moved from 199 bps to 225 bps in February. However, these moves were reversed in March, as the spread on the 5-year CDX.IG fell back to 196 bps.

The convertible bond market was able to recover significantly during Quarter 1 2009, even as Treasury yields rose. The new issue market reopened in January, and the convertible bond market was supported by the entry of long-only buyers chasing attractive yields versus straight corporate bonds. This allowed valuations to recover, while also providing the market with some liquidity. Equity sensitive convertibles performed poorly through January and February, but the recovery in equities provided a supportive backdrop in March. A return to some kind of normalcy in the market is

4 demonstrated by the divergence in performance of the higher grade names versus the names on the lowest rung of the high yield market, due to bankruptcy fears. The Gottex Market Neutral Funds ( MN Funds ) remain overweight Convertible Arbitrage, and the strategy contributed strongly to the performance of the MN funds during Quarter 1 2009. This is discussed in more detail below.

US government initiatives, such as TALF, caused some liquidity to return to the markets for Mortgage-Backed Securities ( MBS ) and Asset-Based Securities ( ABS ). In March, the Fed also increased its planned purchases of Agency MBS to USD 1.25 trillion (from USD 500 billion) and Agency debt to USD 200 billion (from USD 100 billion). The MBS managers within the MN Funds focus on the agency space, and they generally performed well during Quarter 1 2009.

Government announcements were less dramatic in Quarter 2 2009. For the first time in months, the US government did not roll out a major new program. Toward the end of Quarter 2 2009, the Federal Open Market Committee ( FOMC ) announced that it would continue its buying program. The increase in yields was supportive of model valuations, although this was somewhat offset by the increase in fixed income volatility during June. The impact of the recent government programs remains limited, and the back-up in Treasury yields has kept mortgage rates above where they were when these programs were introduced.

In the mortgage markets, pass-through securities consistently outperformed Treasuries throughout Quarter 2 2009, which we believe was due to government buying. The FOMC announced in late June that it would continue its buying program; market participants had fretted that the US Federal Reserve ( the Fed ) would shift to a higher mix of Treasuries as opposed to mortgages. The increase in yields was supportive of model valuations, although this was somewhat offset by the increase in fixed income volatility during the month. The expectations for future prepayments have come down to a more normal level, due to the fact that prices of mortgage derivatives , the more highly structured Mortgage-Backed Securities ( MBS ) that are the domain of hedge funds, have appreciated quite strongly over the last few months. Despite this, we remain positive on the MBS Strategy because option-adjusted spreads remain wide and the current low Libor rates are conducive to high levels of carry.

The Asset Backed Securities ( ABS ) markets have recently demonstrated mixed results. Toward the end of Quarter 2 2009, the ABS securities demonstrated significantly range-bound results. Market participants began to conclude that the US government is reluctant to extend its Term Asset- Backed Securities Loan Facility ( TALF ) program beyond its current scope, and that Residential Mortgage-Backed Securities ( RMBS ) in particular may never make it into the program. On the other hand, we feel that private sector financing options are making a comeback, particularly the Resecuritized Real Estate Mortgage Investment Conduit ( re-REMIC ), where a small number of senior RMBS bonds are bundled and carved into a simple two-tranche structure. Initiatives such as this, as well as the Public Private Investment Program ( PPIP ) program that was launched in July, will help put a floor under asset prices. Many of the RMBS and Commercial Mortgage-Backed Securities ( CMBS ) sectors have rallied by far less than the corporate credit markets since March, and we believe that they may offer better overall value at this point, albeit at the expense of inferior liquidity.

The convertible bond market retained its pace of recovery in Q2 2009. Strength was especially apparent in June, although the pace of spread tightening did not match that of previous months. Issuance was quite strong once again, and there were a number of company buybacks as well.

Review of Performance against the Objective The Gottex Market Neutral products investment objective is to generate consistent returns over the medium term with a low degree of correlation to major stock and fixed income market indices. Such returns are expected to be associated with a low degree of risk.

The HFRI FoF Conservative Index posted a return of 4.66% for the first half of 2009, while the HFRI FoF Composite Index was up by 5.27%. The Gottex Market Neutral ( MN ) Fund Class B (USD, NL) was up by 4.90% over the same period, while the Market Neutral Plus ( MN Plus ) Fund (USD, NL) was up by 6.69%. Matrix Bastion Fund MN Plus Bastion MN Class F MN Plus MN Class F GBP Fund % of GBP % of Monthly Monthly Monthly Portfolio Portfolio Return Return Return Jan-09 53.08% 46.92% 0.87% 1.35% 1.10% Feb-09 52.96% 47.04% 0.37% 0.45% 0.41% Mar-09 52.94% 47.06% -0.20% -0.16% -0.18% Apr-09 52.93% 47.07% 0.28% 1.04% 0.64% May-09 52.74% 47.26% 1.91% 2.15% 2.02% Jun-09 52.68% 47.32% 1.22% 1.44% 1.33% Total Return 4.52% 6.43% 5.42% Table 1: Performance Statistics (Gottex MN Funds & Bastion Fund) exclusive of fees

Review of Strategies Used The largest increase to a single strategy for both MN Funds was to Mortgage-Backed Securities ( MBS ), and this is discussed in more detail below. The second largest strategy increase for both funds was to Fundamental MN Equity, as we added a new fund (Venus Relative Value) to each MN portfolio in April 2009. The third largest strategy increase for MN was to Credit Arbitrage, as we seek to profit from the normalisation of the spread relationship between cash bonds and synthetics. For MN Plus, the third largest increase came in Convertible Arbitrage, as our positions grew organically due to the strong performance of our managers in this space.

The largest reduction in a strategy allocation for MN (and the third largest for MN Plus) came in Asset-Based Lending ( ABL ). The MN Fund began the year with a higher allocation to ABL, which explains the larger decrease. During the first half of 2009, we have diverted money away from ABL in favour of other opportunities, particularly in more liquid strategies. The largest reduction in a strategy allocation for MN Plus (and the second largest for MN) was Long-Short Credit. Both MN Funds began 2009 overweight Long-Short Credit, and more recently the upside to this strategy has been reduced. Therefore, we have trimmed our exposure to Long-Short Credit. The second largest strategy reduction for MN Plus was in Options Arbitrage. The MN Plus Fund began 2009 overweight Options Arbitrage, but during the first half of 2009 the need for this level of protection has diminished. Implied volatility has fallen significantly since the beginning of the year, but we will maintain a reasonable allocation to Options Arbitrage because of the good downside protection the managers in this space provide. However, it no longer needs to be a 10% allocation. The third largest strategy reduction for the MN Fund was in Event-Driven Equity, which was caused by funds liquidating and returning cash, as well as the poor performance of certain legacy positions.

The best performing strategy during the first half of 2009 for both MN Funds was Convertible Arbitrage. The MN Funds went overweight Convertible Arbitrage at the beginning of the year, and this has been a good trade as our managers have been able to realize strong gamma profits due to the recovery in the value of convertible bonds. We feel that much of the easy money has now been made in this space, but the return of liquidity has reduced the risk versus the beginning of the year. Therefore, on a risk adjusted basis the return profile for our managers remains high. The second best performing strategy in both MN Funds (and best weighted performance) was MBS. Our managers are currently focused on inverse interest-only ( IIO ) bonds, which benefit from low short- term interest rates, and higher long-term rates (i.e the current situation). Our managers are betting that short-term rates will remain low (we feel central banks are committed to stimulating), while long- term rates will be high (due to inflation concerns etc). Given our views, we feel it will remain a good environment for IIOs, and it is a strategy we are likely to add to over the coming months. The third best performing strategy in both MN Funds was Long-Short Credit. This remains a large allocation

within each portfolio, and has benefited from the tightening of credit spreads through the first half of the year.

The only negative performing strategy within the MN Fund during the first half of 2009 was Event- Driven Equity, as some legacy positions were a drag on performance. These positions are returning cash, and will become an increasingly smaller part of the portfolio. Asset- Based Lending was a marginally negative strategy for MN Plus, again due to some legacy positions that are slowly rolling off. Finally, Options Arbitrage was negative for the first half of 2009, as implied volatility fell significantly.

Table 1: H1 2009 MN Fund Strategy Evolution % Change over Gottex MN Fund Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 period R elative Value 51.25% 48.22% 50.69% 48.55% 45.23% 48.16% 50.02% -1.2 3 % Convertible Arbitrage 11.47% 10.99% 11.73% 11.78% 9.39% 10.92% 11.44% -0.02% Options Arbitrage 7.36% 6.49% 7.15% 6.85% 6.44% 7.01% 6.58% -0.77% M BS Strategies 5.36% 5.24% 5.62% 5.54% 6.10% 6.98% 8.07% 2.71% Fixed Income Arb. 0.38% 0.41% 0.38% 0.28% 0.19% 0.20% 0.20% -0.18% Credit Arbitrage 4.19% 4.78% 4.81% 4.53% 5.40% 5.47% 5.27% 1.08% Other Relative Value 0.48% 0.50% 0.57% 0.54% 1.08% 1.11% 1.07% 0.59% Long Short Credit 14.83% 14.24% 14.48% 13.35% 10.81% 10.10% 10.38% -4.46% Asset-Backed Securities 7.18% 5.58% 5.94% 5.69% 5.83% 6.37% 7.01% -0.17% Closed-End Funds Arbitrage ------Event D riven 30.35% 24.45% 22.45% 21.06% 19.54% 21.46% 23.11% -7 .2 4 % M erger Arbitrage 4.29% 3.37% 3.37% 3.16% 2.98% 2.90% 3.71% -0.58% Distressed Securities 6.24% 4.61% 5.26% 4.86% 4.23% 4.91% 5.18% -1.06% Asset-Based Lending 14.52% 12.10% 10.10% 9.41% 8.58% 9.15% 9.95% -4.57% Private Placement Arbitrage 0.36% 0.40% 0.48% 0.41% 0.64% 0.47% 0.36% -0.01% Capital Structure Arbitrage 4.94% 3.97% 3.23% 3.21% 3.12% 4.03% 3.92% -1.03% H edged Equities 14.09% 9.45% 10.13% 10.62% 10.79% 12.11% 12.99% -1.10 % Quantitative M N Equity 1.59% 1.82% 1.84% 1.76% 1.56% 1.84% 1.56% -0.03% Fundamental M N Equity 3.85% 1.96% 1.86% 1.94% 2.94% 4.05% 4.94% 1.09% Long Short Equity 1.57% 1.44% 1.79% 1.78% 1.37% 1.10% 1.12% -0.45% Event-Driven Equity 7.08% 4.24% 4.64% 5.14% 4.91% 5.13% 5.37% -1.71% Dedicated Short Bias ------T rading 1.39% 1.38% 1.39% 1.39% 1.56% 1.59% 1.63% 0.25% Future Strategies 1.17% 1.14% 1.21% 1.24% 1.42% 1.45% 1.51% 0.34% M acro Strategies 0.22% 0.25% 0.18% 0.15% 0.14% 0.14% 0.13% -0.10% Other 2.93% 2.10% 2.16% 2.12% 2.05% 2.18% 2.26% -0 .6 6 % C ash 0.00% 14.39% 13.18% 16.26% 20.83% 14.50% 9.99% 9.99%

Table 2: H1 2009 MN Plus Fund Strategy Evolution % Change over Gottex MN Plus Fund Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 period R elative Value 54.29% 45.94% 46.93% 49.64% 48.99% 50.36% 51.22% 3.07% Convertible Arbitrage 11.55% 9.15% 10.05% 11.80% 11.03% 12.04% 12.30% 0.75% Options Arbitrage 10.41% 8.40% 8.18% 8.04% 7.89% 7.86% 7.85% -2.56% M BS Strategies 6.91% 6.02% 6.27% 7.70% 8.40% 8.32% 8.91% 2.00% Fixed Income Arb. 0.55% 0.50% 0.40% 0.30% 0.19% 0.19% 0.23% -0.32% Credit Arbitrage 4.64% 4.55% 4.20% 4.00% 4.25% 4.26% 3.91% -0.73% Other Relative Value 0.85% 0.78% 0.79% 0.67% 1.04% 1.03% 1.16% 0.31% Long Short Credit 13.67% 12.06% 12.29% 12.25% 9.96% 10.06% 10.64% -3.03% Asset-Backed Securities 5.72% 4.49% 4.75% 4.88% 6.20% 6.55% 6.18% 0.47% Closed-End Funds Arbitrage 0.05% 0.05% 0.04% 0.04% Event D riven 25.39% 20.89% 20.97% 20.81% 19.07% 20.37% 22.62% -2 .7 7 % M erger Arbitrage 4.77% 4.73% 4.67% 4.95% 4.41% 4.20% 4.19% -0.59% Distressed Securities 5.56% 4.68% 5.36% 5.11% 3.97% 4.80% 5.19% -0.37% Asset-Based Lending 10.87% 8.49% 8.09% 7.69% 7.35% 7.83% 9.68% -1.19% Private Placement Arbitrage 0.34% 0.30% 0.29% 0.24% 0.38% 0.31% 0.31% -0.03% Capital Structure Arbitrage 3.84% 2.69% 2.56% 2.81% 2.95% 3.24% 3.25% -0.60% H edged Equities 16.45% 11.53% 12.14% 13.97% 13.56% 13.86% 15.06% -1.3 9 % Quantitative M N Equity 4.30% 2.57% 2.51% 2.91% 2.95% 3.20% 3.20% -1.10% Fundamental M N Equity 4.40% 2.62% 3.28% 3.69% 3.85% 4.20% 5.37% 0.96% Long Short Equity 1.33% 1.28% 1.43% 1.45% 1.20% 0.89% 0.89% -0.44% Event-Driven Equity 6.43% 5.06% 4.93% 5.92% 5.55% 5.56% 5.61% -0.82% Dedicated Short Bias ------T rading 0.82% 1.23% 1.18% 1.35% 1.84% 1.80% 1.91% 1.09% Future Strategies 1.25% 1.03% 1.02% 1.20% 1.63% 1.60% 1.66% 0.41% M acro Strategies 0.23% 0.20% 0.16% 0.15% 0.21% 0.20% 0.25% 0.02% Other 2.39% 2.41% 2.45% 2.48% 2.41% 2.45% 2.37% -0 .0 2 % C ash 1.38% 18.01% 16.33% 11.75% 14.14% 11.16% 6.83% 5.45%

Table 3: H1 2009 MN Fund Gross Performance Strategy Attribution Summary Class B (USD, NL) Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Total For Period Rank Gross Return Contribution 1.05% 0.71% -0 .2 6 % 0.38% 2.25% 1.32% 5.56% R elative Value 0.78% 0.54% -0.22% 0.57% 1.51% 1.02% 4.27% Convertible Arbitrage 0.47% 0.32% 0.17% 0.35% 0.51% 0.38% 2.23% 1 Options Arbitrage 0.01% 0.03% 0.00% 0.05% 0.00% -0.03% 0.06% 15 M BS Strategies 0.15% 0.11% 0.03% 0.21% 0.36% 0.32% 1.19% 2 Fixed Income Arb. 0.02% 0.01% 0.00% 0.00% 0.01% 0.00% 0.04% 16 Credit Arbitrage -0.03% 0.15% -0.03% -0.04% 0.12% -0.02% 0.16% 7 Other Relative Value 0.01% 0.01% 0.00% -0.03% 0.06% -0.01% 0.03% 18 Long - Short Credit 0.15% -0.08% -0.37% 0.03% 0.37% 0.30% 0.39% 3 Asset-Backed Securities 0.01% -0.02% -0.02% -0.01% 0.08% 0.07% 0.11% 11 Closed-End Fund Arbitrage ------Event D riven 0.12% 0.11% -0.03% -0.01% 0.38% 0.25% 0.82% M erger Arbitrage 0.05% 0.02% 0.02% -0.01% 0.04% 0.06% 0.18% 6 Distressed Securities 0.11% -0.02% -0.04% 0.06% 0.18% 0.09% 0.37% 4 Asset-Based Lending 0.03% 0.05% -0.02% -0.10% 0.09% 0.07% 0.13% 9 Private Placement Arbitrage 0.01% 0.01% 0.00% 0.01% 0.01% 0.01% 0.04% 17 Capital Structure Arbitrage -0.07% 0.04% 0.01% 0.03% 0.06% 0.03% 0.10% 12 H edged Equities 0.11% 0.04% -0.03% -0.19% 0.30% 0.03% 0.26% Quantitative M N Equity 0.06% 0.03% 0.01% 0.06% 0.11% 0.05% 0.33% 5 Fundamental M N Equity 0.00% -0.01% 0.02% 0.04% 0.06% 0.02% 0.14% 8 Long - Short Equity 0.09% 0.03% -0.03% -0.05% 0.05% 0.03% 0.12% 10 Event - Driven Equity -0.04% -0.01% -0.04% -0.24% 0.08% -0.07% -0.32% 20 Dedicated Short Bias ------T rading 0.02% 0.01% 0.00% 0.01% 0.05% 0.01% 0.10% Futures Strategies 0.02% 0.01% 0.00% 0.01% 0.05% 0.01% 0.10% 13 M acro Strategies 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 19 Other 0.02% 0.01% 0.02% 0.01% 0.01% 0.01% 0.07% 14 C ash ------

8 Table 4: H1 2009 MN Plus Fund Gross Performance Strategy Attribution Summary (USD, NL) Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Total For Period Rank Gross Return Contribution 1.42% 0.62% -0 .0 7 % 0.92% 2.51% 1.55% 7.14% R elative Value 0.99% 0.49% 0.03% 0.96% 1.78% 1.16% 5.52% Convertible Arbitrage 0.42% 0.25% 0.21% 0.47% 0.59% 0.41% 2.37% 1 Options Arbitrage 0.01% -0.01% -0.02% 0.04% -0.01% -0.05% -0.04% 20 M BS Strategies 0.22% 0.14% 0.06% 0.33% 0.52% 0.38% 1.67% 2 Fixed Income Arb. 0.02% 0.01% 0.00% 0.00% 0.01% 0.00% 0.04% 14 Credit Arbitrage 0.02% 0.14% 0.00% 0.00% 0.15% 0.04% 0.35% 5 Other Relative Value 0.01% 0.01% -0.01% -0.03% 0.05% -0.01% 0.03% 15 Long - Short Credit 0.26% -0.03% -0.23% 0.13% 0.42% 0.30% 0.85% 3 Asset-Backed Securities 0.02% -0.01% 0.01% 0.02% 0.05% 0.08% 0.16% 8 Closed-End Fund Arbitrage - - - 0.00% 0.00% 0.00% 0.00% 17 Event D riven 0.17% 0.09% -0.03% 0.05% 0.39% 0.30% 0.98% M erger Arbitrage 0.08% 0.02% 0.04% 0.01% 0.05% 0.06% 0.26% 7 Distressed Securities 0.14% -0.01% -0.02% 0.07% 0.19% 0.10% 0.47% 4 Asset-Based Lending -0.07% 0.03% -0.07% -0.09% 0.07% 0.08% -0.04% 21 Private Placement Arbitrage 0.00% 0.00% 0.00% 0.01% 0.00% 0.00% 0.02% 16 Capital Structure Arbitrage 0.02% 0.05% 0.02% 0.05% 0.09% 0.05% 0.28% 6 H edged Equities 0.22% 0.02% -0.08% -0.10% 0.27% 0.07% 0.39% Quantitative M N Equity 0.01% -0.01% -0.04% 0.07% 0.05% 0.04% 0.13% 9 Fundamental M N Equity 0.03% 0.02% -0.03% 0.02% 0.05% 0.04% 0.13% 10 Long - Short Equity 0.09% 0.02% -0.02% -0.03% 0.04% 0.02% 0.13% 11 Event - Driven Equity 0.10% -0.01% 0.00% -0.16% 0.13% -0.05% 0.00% 18 Dedicated Short Bias ------T rading 0.02% 0.01% -0.01% 0.01% 0.06% 0.01% 0.10% Futures Strategies 0.01% 0.01% 0.00% 0.01% 0.06% 0.01% 0.10% 12 M acro Strategies 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 19 Other 0.02% 0.01% 0.02% 0.01% 0.01% 0.01% 0.08% 13 C ash ------

Outlook Despite the continued macroeconomic headwinds, we have a positive outlook for many of our typical relative value hedge fund strategies. Most markets are functioning quite normally. Higher levels of volatility, as well as increased participation from long-only investors, have created a very supportive set of conditions for hedged trading strategies which we expect to last for several more months. We are adjusting our allocations accordingly as well as reducing our cash position following a sharp decline in redemptions.

March marked a bottom in the valuations of several asset classes, as well as the introduction of the much-used green shoots metaphor by Fed Chairman Bernanke. Having enjoyed three months of a rally, some commentators are pointing to the weeds that are growing in the economy s midst. Early July data is showing that the employment picture remains weak, and that consumers remain under pressure. The US housing market remains plagued by high inventories, and government programs are having only a limited impact. In the next couple of weeks, we will receive more report cards on the economy in the form of Quarter 2 and half year earnings announcements. We previously commented that the rally may have gotten ahead of itself, and June performance revealed that others worried about this as well.

Relative value hedge funds turned in a strong month; we continue to have a constructive view on the outlook for these strategies, and we believe that the supportive environment may continue for some time. Convertible Arbitrage and MBS Strategies have been the leading lights of our Fund, but we are adding to Fixed Income Arbitrage as well as equity-related arbitrage strategies. Within corporate credit, we are starting to engage in the distressed debt strategy. We are finding high quality prospect managers, despite the inevitable thinning of the ranks that has occurred, and managers are now more flexible when discussing investment terms. Finally, we believe that our managers have worked through the vast majority of the legacy issues of 2008, and with the implementation of our own restructuring plans, we feel that the Fund is well positioned to capitalize on its return potential over the next few months.

Market Neutral Funds Liquidity

The liquidity of the MN Funds continue to improve, and we are currently focused on redirecting capital away from less liquid strategies (like ABL) and into more liquid strategies. For example, we have recently approved (and began funding as of 1st August 2009) a Closed End Fund Arbitrage manager, a Quantitative MN Equity manager, a Fixed Income Arbitrage manager, a European Merger Arbitrage manager, and an Asian Equity Arbitrage manager. Each of these managers offer monthly liquidity.

For more information on the projected impaired liquidity of the MN Funds, please refer to the charts below; 50% Gate Liquidating Suspended SidePocket

40% d n u

F 30% l a r t u e N t e k r a M

f 20% o %

10%

0% 0 8 8 8 8 9 9 9 9 0 0 8 8 8 8 8 8 8 9 9 9 9 9 9 9 0 8 9 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 ------t l r r t r r t r y y v c y v c c e b b n n g p n n g p l c c p u a p a p a a a o e o e e n e e a u u e a u u e J u e A O A O J J J J u F M F M M A S N D J A S N D D M M S J

35% Gate Liquidating Suspended SidePocket 30%

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k 15% r a M f o % 10%

0% - 0 8 8 8 8 8 8 8 9 9 9 9 9 9 9 0 8 8 8 8 8 9 9 9 9 9 0 e 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 n ------t l t t r r r r r v c y v c c y y u n n g p n n g p b b l c c p u a p a p a J o e o e e a a a u u e a u u e e e J u e O O A A J J J J M M M F F A S N D J A S N D D M M S

Gottex Asset Management Sarl August 2009

11 MATRIX CONSERVATIVE APPROACH STRATEGY FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The Institutional Sterling Shares of the Matrix Conservative Approach Strategy Fund (CAS) returned 5.03% in the first half of 2009. CAS is managed by Lyster Watson and aims to provide annual returns of LIBOR plus 4% to 6%.

Market Overview January June 2009

What a difference six months and several trillion dollars of government intervention in markets makes! Reports of the demise of capitalism as we know it appear to have been somewhat overdone. That said, we find ourselves in the summer of 2009 in a calmer but still changed economic and financial environment from that we have known for much of the past 25 years or more.

At the time of our last semi-annual review, nationalization of most large banks in the US and the UK appeared to be a highly probable outcome of the crisis that overwhelmed global markets in the final half of 2008. Since then, several US recipients of public assistance have purchased their freedom from their creditors' regulatory prison and posted record profits. A few notable exceptions, most notably Citigroup, remain in intensive care, but the focus has clearly shifted from emergency care and triage to regulation and legislation. Absent a return to crisis mode, those battles appear likely to run considerably longer than the ones just past with considerably less sturm und drang.

Central bankers, who were clearly asleep at the switch through much of 2007 and early 2008, deserve credit for much of the recovery. Given their reckless behaviour during the rising action of the crisis, however, their strong performance in the wake of the climax deserves little more than a better late than never. After several months when it appeared that many bonds would never trade again, the liquidity Convertible Bonds provided to the financial markets broke the logjam in the debt markets. As bonds began to trade again, hedge funds imprisoned in the credit markets last year regained the flexibility to trade their portfolios. Market makers, their ranks thinned by the crisis, (RIP Bear Stearns, Lehman Brothers, Wachovia, Washington Mutual, Northern Rock, Merrill Lynch, AIG), re-discovered the lucrative pleasures of wide bid-offer spreads. Indeed fixed income trading provided the lion's share of the large profits banks posted in Q2 2009. Long lunches with cigars and port to finish should follow apace.

As liquidity returned to the credit markets, those hedge fund strategies most hurt in 2008, Convertible Bond Arbitrage, Credit, Distressed, and to a lesser extent, Fixed Income Relative Value posted extraordinary gains. Ironically, those managers who could not or would not liquidate their positions in Q4 2008 and Q1 2009, and who in many instances angered their investors by refusing to do so, have posted the largest gains. In contrast, equity managers who never stopped meeting their investors' redemption requests have missed most of what has become a rally of historic proportions. Their scepticism about the resilience of the real economy has kept them on the sidelines until recently.

Review of Performance against the Objective: January June 2009

For the period from January through June 2009, the Matrix CAS portfolio produced a net return of 5.03%. This compares favourably with returns on broad indices of bond and stock markets in the same period. Such indices include the S&P 500 (-30.86%), the FTSE 100 (-27.73%), and the MSCI Europe Index (-35.98%).

12 Versus the portfolio benchmark of Sterling Libor plus 4% on an annual basis, the fund has performed extremely well in 2009. For the first six months of the year, 3 month GBP Libor averaged 1.73%. The Matrix CAS return of 5.03% exceeds that by 3.30%, well above the 2% target.

Review of Strategies

Convertible Bond Arbitrage Within the universe of all hedge funds, Convertible Bond Arbitrage (CBA) has outperformed all others this year, primarily because it had the most ground to recover to get back to its previous high water mark. Within the Matrix CAS portfolio a combination of three managers generated a gross return of 16.2% through June. Only about a third of those gains came from the recovery in credit markets because two of the three funds in the CAS portfolio are among those CBA managers who minimize their exposure to credit risk. At the start of the year, the portfolio had a target allocation to CBA of 0% but was unable to achieve it because of lockups and restrictions on redeeming from one fund. Now that the environment has turned favourable for the strategy, the portfolio will maintain a 5% allocation. The favourable forecast represents a combination of the improved credit environment and increase in issuance by higher quality borrowers.

Credit Strategies Credit Strategies have contributed 12.8% on a gross basis this year but all of the return represents a partial recovery of the losses of 2008. Slightly less than 10% of the fund is invested in Credit Strategies because of lockups and withdrawal restrictions that have prevented it from dropping to its official target of 0%. The fund retains its commitment to that target despite its positive contribution. As lockups and restrictions on withdrawals expire, the fund will eliminate exposure to this strategy because of the lessons of 2008. To succeed in a normal environment, i.e. one in which credit spreads do not narrow by 1,000 basis points in six months, managers must be able to hedge their positions, and add leverage to the fund. In the current environment, neither is possible. Correlations between high yield debt and CDS contracts related to such debt are weak and unpredictable. Short selling of such issues is difficult and expensive. Dealers remain wary of financing risky debt positions. As a result, this strategy has changed from a truly hedged one to a long biased one dominated by the direction of the credit markets. As such, it no longer fits the return objectives of the Matrix CAS fund.

Distressed Investment The Distressed Investment component of the fund has contributed 39.6% on a gross basis in 2009. Much of this has come from the correction in the credit markets, but an increasing amount comes from the growing universe of investment opportunities in companies filing for Chapter 11 in the US or their equivalents in other countries. Because of the inherent illiquidity of this strategy, the target allocation remains 10%, but the portfolio is using only 3% of that allocation while the Credit Strategies portion remains above its 0% target.

Emerging Markets At 3.3%, the EM portion of the fund is slightly below its 5% target. It has returned 34.9% on a gross basis in 2009. The EM markets have benefited from both improvements in the credit markets and from the stronger than expected recoveries in their economies, led by China and Brazil. The managers intend to raise this strategy to its full target allocation as soon as the Credit Strategies allocation falls to its target. Because of the common sensitivity to credit markets, the fund has kept the combined exposure of Credit Strategies, Distressed Investment, and Emerging Markets at approximately its combined target of 15% (0% + 10% + 5%) throughout the year.

Event Driven Event Driven managers added a gross return of 10.3% in the January to June period. Their 9% allocation is just shy of their 10% target in this portfolio. Event Driven managers have found opportunities in both a steady flow of M&A deals occurring as healthy firms take advantage of the distress of some of their competitors to acquire them, and from trading opportunities in the

distressed investment market. They have also profited from the recovery in the value of some financial shares.

Fixed Income Arbitrage Fixed Income Arbitrage, another strategy with a 0% allocation target, remains in the portfolio because of lockups and restrictions on withdrawals. These will expire by the end of Q3 2009. In the January to June period, they returned 6.1% on a gross basis. The two managers who earned the most were also profitable in 2008 and remain in business. The other two funds that went into liquidation in 2008 are close to completing their liquidations and have made only a small positive contribution in 2009. Opportunities in this strategy remain almost non-existent in the traditional relative value space as dealers remain reluctant to extend credit for leverage, or to provide the kind of liquidity that strategy requires. As a result, those funds that remain in this strategy have for the most part transformed themselves into Relative Value Macro funds that take partially hedged directional positions with time frames determined by the timing of macroeconomic events rather than by convergence to contract expiration or a bond maturity. For a fund with the liquidity profile of the Matrix CAS fund, this is not a particularly appealing strategy.

Long/Short Equities Happily, Long/Short Equities reached only 12.4% of their total target allocation of 35% by the end of June, because most Long/Short Equity managers, both in and outside the Matrix CAS portfolio failed to take advantage of the rally in global equity markets that began in March 2009. Because they retained their liquidity throughout 2008, few managers entered 2009 with stale positions that simply rose in value with markets. Most Long/Short Equity managers base their investment decisions on fundamental analysis of micro and macroeconomic events. As a result, most failed to anticipate the strong rally in the equity markets and maintained low exposures to markets on both a gross and net basis. They did not lose money in the January early March period because of this, and they failed to make money in the remaining 3 ½ months for the same reason.

Macro Strategies The sole discretionary Macro manager in the fund accounts for only 2.6% of it, just over half the 5% target for this strategy. It earned 14.4% on a gross basis through the end of June primarily because it identified the bullish trend on both debt and equity markets as they began, and positioned itself accordingly. This is precisely the kind of trading we expect of discretionary Macro managers, but because of the inherent risks in such trading; we maintain low allocations to such managers.

Managed Futures Unlike in 2008, Managed Futures funds have performed poorly in 2009 because of the lack of trends in commodity prices and in foreign exchange. The Managed Futures (MF fund) fund in the Matrix CAS portfolio did return 4.2% on a gross basis in the first half despite the poor trading environment for that strategy. At 2.3%, Matrix CAS was well below its 15% target for the year in the first half of 2009, but it has moved aggressively toward that target in Q3 in this strategy. The liquidity of Managed Futures funds fits the profile of the Matrix CAS fund well.

Quantitative Strategies Quantitative Strategies lost 11% on a gross basis in the first half of 2009 primarily because of the contrast between the weak fundamentals of the global economy and the strong performance of debt and equity markets. It has a 5% target in the Matrix CAS fund and remains attractive because it offers good liquidity to investors.

Volatility Arbitrage Volatility Arbitrage in the Matrix CAS fund declined 4.6% on a gross basis from January to June. At 11.1% it is slightly above its 10% target. One of the two managers in this strategy in Matrix CAS performed well by anticipating the decline in equity volatility and by taking advantage of the decline in the number of dealers to offer liquidity to other buyers and sellers of options in all markets. The other performed poorly because it maintained a long bias toward volatility because of its assessment

14 that the markets remained vulnerable to additional economic shocks. Volatility Arbitrage remains an attractive and liquid strategy in an environment that remains uncertain despite its recent improvement.

Outlook for the Second Half of 2009 Markets entered the second half of 2009 in buoyant states. Equity markets continue a historic rally that began in early March and credit markets have regained some of the liquidity they lacked in the final half of 2008 and early 2009. Hedge fund managers focused on economic fundamentals remain mystified by the strength of the recovery. They appear to have failed to recognize that credit remains expensive despite the great narrowing of credit spreads, and that investors may be purchasing equities as much for liquidity as for upside potential. The recent indications of modest improvements in fundamental economic conditions may also validate markets' historic roles as forecasters of economic conditions.

Despite the strength of the rallies in debt and equity markets, interest rates remain well above their levels preceding Lehman Brothers' bankruptcy last year, and equity prices remain well below their levels prior to the same event. Given the abatement of sheer panic in the financial markets, it does not seem totally unreasonable to expect markets to tend back to the levels that obtained before the panic began.

With additional gains likely to be less dramatic than those that occurred in the first half of 2009, it appears likely that performance in the second half of the year will migrate from the credit sectors that gained the most in the first half to the equity-focused funds that have just begun to participate in the recovery play.

Lyster Watson Management Inc September 2009

MATRIX HORIZON FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The institutional sterling shares of the Matrix Horizon fund returned -1.94% over the first half of 2009. The Horizon fund invests in the shares of the Class Matrix Shares (renamed Class J Shares on August 6, 2008) of the Collingham Investment Fund and the three side pocket (designated) share classes issued by the Collingham Investment Fund in Q4 2008, and has an objective to achieve consistently high annual returns in Sterling terms with low volatility.

In January 2009 a decision was made by the Directors of Matrix Alternative Investment Strategies Fund to close the Matrix Horizon Fund because they were unhappy with the performance of its underlying investment in the Collingham Investment Fund. Shareholders were given the option of receiving cash or re-investing it in the Matrix New Horizon Fund. Collingham Investment Fund has applied a 5% per month gate to the Matrix Horizon Fund s investment in the Collingham Investment Fund.

2009 Market Review (period from January 2009 to June 2009)

After a decline of 40% in 2008, equity markets managed to bottom out in March 2009 and produced an incredible rally in Q2. The first half of 2009 had two faces with fear continuing to dominate in Q1 and hope/ greed dominating in Q2. The MSCI World index ended the period up 7.5% after being down 11% at the end of Q1.

The first quarter of 2009 was really a continuation of the themes observed in 2008 although there were already some signs of stabilisation such as (1) a good performance in credit markets which ended the quarter tighter both in investment grade and high yield and (2) signs of decoupling of Emerging Markets that managed to end the quarter in positive territory.

The investors mood in the second quarter was different and it was driven by the hope that recovery from the worst recession since the 1930s had begun helped by the fiscal and monetary stimuli implemented by the fiscal and monetary authorities around the world.

The following themes were reflected in hedge funds portfolios in Q2:

1) Global Inventory restocking. Given the strong de-stocking we had witnessed in 2008 there was hope amongst investors that the restocking phase might be equally strong. Many indicators suggest that the economy appears to have stabilized: order books are firming up, auto production is slowly ramping up, unemployment claims have slowed their freefall and capital markets are once again open. Given all the above it is inevitable that suppliers will have to start building inventories again to meet current manufacturing demand.

2) Bank recapitalisation. The largest banks in the United States underwent a regulator-mandated evaluation called the Supervisory Capital Assessment Program, also known as Stress Test . The event became the catalyst for a coordinated re-capitalization of the US banking system. Since then, US banks managed to get access to the capital market both by injecting new capital and by issuing new bonds.

3) Asia Decoupling. The economic out-performance of the Chinese economy was strong and was driven by the huge fiscal stimulus implemented by the authorities and the massive growth in bank lending; in the first six months of this year Chinese banks have issued loans that are the equivalent of 25% of the country s GDP. The out-performance in the economy was reflected in the out- performance of the equity markets with the Shanghai Composite up an astonishing 49% in the first half of 2009. The Emerging Market complex rallied massively too with the MSCI Emerging Markets index up 34%

Credit was certainly a winning strategy for 2009. All indices rallied hard since the beginning of March ending the first half of 2009 with investment grade indices tighter by 65 bps and 73 bps in Europe and in the US respectively. The performance in high yield was of course more pronounced with a rally of 316 bps in Europe and 652 bps in the US. Emerging Markets credit index rallied 327 bps.

We reckon one of the triggers that sparked the rally was the exuberant new issue pipeline that was very well absorbed by the market especially in investment grade paper with real money and mutual funds happy to buy paper at a discount to the secondary market.

Defaults are rising as expected, but the projected peak has fallen. Ratings trends, while still clearly negative, have also stopped accelerating to the downside. Moody s now expect 12% of US speculative grade 12m-trailing defaults to peak at 12.7% in November (or 15.6% in their pessimistic scenario), down from 14% expected earlier in the year.

In commodities, the energy complex was very volatile during the course of the first half of the year with a very large trading range. Oil traded from $55 in January, down to $45 in February and up to $71 at the end of June (+4% YTD). In this complex Natural Gas was the loser with a negative performance of -37% for the period driven by inventory concerns. Gold ended the period up 4.5% as many market participants believe that the precious commodity could perform in both a deflationary and reflationary environment. Equity Markets Credit Markets June 2009 YTD end June June 2009 YTD end June Regional Indices Investment Grade Indecies MSCI World 0.73% + 7.56% Itraxx Main Europe 5y 9 65 S&P + 0.02% + 1.78% CDX.IG US 5y 8 73 FTSE 100 3.82% 4.17% High Yield Indicies MSCI Europe 2.48% + 5.16% Itraxx Xover Europe 5y 12 316 MSCI EM 1.53% + 34.26% CDX HY 5y 90 652 Global Sector Indices Emerging Markets Energy 5.31% + 4.92% CDX.EM + 6 327 Materials 4.34% + 19.46% Industrial 1.35% + 0.48% Consumer Discretionary + 0.08% + 11.17% Commodities Consumer Cyclicals + 0.91% 0.65% June 2009 YTD end June Healthcare + 2.09% 2.85% S&P GSCI Index Spot + 0.57% + 6.55% Financials 1.23% + 5.75% OIL + 4.20% + 26.25% Technology + 2.86% + 20.80% NATURAL GAS 3.11% 37.40% Telecoms + 1.06% 6.46% GOLD 5.40% + 4.51% Utilities + 0.35% 8.89% PLATINUM 1.36% 23.77% US Style Indices SILVER 13.02% + 20.14% Value 0.95% 5.40% COPPER + 3.11% + 58.66% Growth + 1.48% + 11.19% ALUMINIUM + 5.90% + 17.66% Small cap + 1.34% + 1.77% Large cap + 0.06% + 2.97%

Strategy Review for 2009 From January to June (gross contribution)

1) We had a painful experience in 2008 with hedge funds investing in illiquid strategies like credit long/short, distressed and convertible arbitrage trapping investors through instruments like gates, side pockets and liquidating special purpose vehicles (SPVs). As a result we took a drastic decision to exit those strategies as we concluded that whilst there is alpha to be extracted from those strategies, the illiquidity was not suitable for our fund of funds given our investment terms. All these strategies rebounded very strongly in 2009. The Fund still has exposure albeit decreasing in the illiquid strategies via gated investments and restricted investments in liquidating SPVs structures established by some hedge fund managers to manage redemptions from their funds. However a common feature has been that that these gated and restricted investments have significantly underperformed their continuing parallel funds. This was another source of underperformance but should not be a significant factor going forward as we receive cash back from the gated and restricted investments.

2) As a by-product of our decision to remove illiquid strategies the liquid strategies portion including CTAs and macro funds represented a larger percentage of our fund. These strategies have underperformed the illiquid strategies so far in 2009.

3) We remain sceptical about a rapid economic recovery as we felt that equity markets would trend sideways or lower with a possibility of some short-lived bear market rallies. As a result we kept our exposure to both the Global Macro and the Emerging Markets Horseman funds. These funds extract alpha more at an industry and country level than at a stock level. The track record of these funds is exceptional including 2008. Both funds remain net short and have cost us around 2.5% so far this year. We still have confidence in these funds but for risk management purposes we reduced our exposure to these funds.

4) Our Fund has always been managed to extract alpha from hedge funds and to minimize unwanted beta. The rally in equities and credit that started in March was beta driven and it is not surprising that we did not capture the rally as we are not meant to do so.

Long/Short Equity (-30bps) Long short equity represented a sizable segment of our portfolio during the first half of 2009, averaging over 12% through the period. As equity markets rallied aggressively since March 2009 this segment suffered due to the fundamentally bearish view of one of our managers who managed to return stellar performances in previous years but did not anticipate the short covering rally in 2009 and did not change his portfolio accordingly.

The other fund in this strategy produced good returns. This fund adopts a top/down bottom/up approach to investing.

Macro (+95bps) The Macro Strategy generated 95 basis points and we continue to see opportunities in this strategy for the rest of the year. The average allocation was 15% of AUM. We currently invest in 4 funds.

The commodity focussed fund that we added last year was able to continue to generate positive performance this year correctly implementing directional views and relative value strategies. At the end of June we trimmed our exposure to this manager to a level consistent with the overall risk of the portfolio.

The second largest manager in this sector produced good performance too whereas the other two funds produced negative performances. The negative performance of the first of these was due to bad timing the equity and interest rate markets. The second fund is still focusing on unwinding the remaining illiquid assets in the side pockets.

As we move into the second part of 2009, we believe that global macro could be a valuable source of returns, with major macro themes dominating the investment landscape.

Systems Trading (+33bps) The one fund in this area managed to outperform its peers in 2009 and produce a positive return whereas the majority of other CTAs performed poorly. We are currently redeeming out of this fund with the intent to reallocate to other more liquid funds in this space. After a 2008 with several and persistent trends in commodities, equities, FX and interest rates the first part of 2009 showed limited trends developing thus far; we strongly believe that trends will occur in the future once a clearer picture of the world has developed.

Emerging Markets (-80bps) Emerging Markets was a disappointing strategy for us in 2009. We reduced our exposure from 5.5% of AUM in January to 2.5% at the end of June. Both our managers performed poorly. The first one was short emerging market equities, a trade that was very profitable in 2008 but did very poorly this year. The manager tactically trimmed its negative bias especially in Q2 but still remains fundamentally bearish. The second manager is liquidating its credit portfolio due to redemption pressure and was not able to enjoy the credit rally the market experienced.

18 Distressed/HY (-22bps) Our managers were not able to participate in the rally in credit and distressed as they were focusing on liquidating positions due to redemption pressure. We believe that this asset class is not suitable for fund of hedge funds with monthly and/or quarterly liquidity and thus we are exiting the strategy where and when possible.

Event Driven/Merger Arb (-21bps) The one fund that we hold in this space was caught in the collapse of its prime broker Lehman, and the fund subsequently gated. Since then the manager has focused on unwinding positions and working to regain control of the assets held at Lehman. In the first half of 2009 the manager returned around 40% of the investment and is confident of returning another sizable amount in the second half of the year.

Multi-Strategy (+134bps) Multi-Strategy has represented the largest segment of our portfolio in 2009, averaging 20% of AUM thought the first half of 2009. We started the year with 7 funds and reduced the position to 6 at the end of the period. The funds that were active in the Convertibles, Credit L/S and Relative Value strategies managed to produce good returns whereas funds that were long volatility produced negative returns due to the drop in volatility across the board. We like the combination of being long credit risk and long volatility as a hedge and we are confident that the strategy will continue to generate good returns in both bear and bull markets.

Although we exited hedge funds focused purely on credit, convertibles and distressed, we maintained some exposure to these strategies via Multi-Strategy funds where they represent a small portion of the portfolio.

Credit Long/Short (-3bps) During the course of 2008 we took the decision to redeem out of the asset class due to the illiquid nature of this market. We have redeemed in full from 3 managers but are left with some residual exposure to one credit fund as the fund gated redemptions and issued a SPV to reflect the illiquidity of their holdings. The manager since the beginning of the year has been focusing on liquidating the remaining assets in the SPV and has managed to return around 40% of the investment.

Equity Market neutral (0bps) We currently have no exposure to this strategy.

Capital Structure Arbitrage (0bps) We currently have no exposure to this strategy.

Outlook for 2009 Although we are seeing some positive signs of recovery, we still remain sceptical about the current rally in the market. We still think that investors continue to see the investment glass as more than half full. Although we are still confident in our managers that currently run a bearish view on the market, for risk management purposes, we have been reducing our exposure to these funds.

Collingham Capital Management LLP August 2009

Post Period End Event In September 2009 Collingham Investment Fund ( CIF ) informed the Directors of Matrix Alternative Investment Strategies Fund that CIF would cease investment operations and would realise liquid assets and return the proceeds to Shareholders as soon as possible. It is expected that the Matrix Horizon Fund will receive its share of the available cash around six weeks after 31 December 2009. Those funds that cannot be readily realised will be managed to ensure disposal of these assets as soon as possible.

19 MATRIX NEW HORIZON FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The Institutional Shares of the Matrix New Horizon Fund returned +0.43% over the first half of 2009. The Fund was launched on 1st April 2009. The Fund aims to achieve high annualised returns with low volatility and low correlation to broad equity indices over a market cycle.

MARKET REVIEW H1 2009 The first half of 2009 can be described as a half of two halves. The global economy entered 2009 in the grip of a recession of historic proportions. Despite unprecedented policy support which sought to break the negative spiral, many market participants drew parallels between the current crisis and the Great Depression of the 1930s. The tide turned suddenly and abruptly in the middle of March, as investors finally considered the possibility that the worst of the financial crisis was over.

The year opened with equity prices in the main developed countries slipping 8% in January, as market participants saw the re-emergence of uncertainties surrounding the outlook for the banking sector. Indeed, as the negative impact of the real economy fed through, it became increasingly apparent that there would be additional and inevitable write-downs in the pipeline for banks. There was anticipation of more aggressive sets of policies from the Obama administration, which took over at the end of the month. January saw additional rate cuts by the Bank of England and the ECB. One positive market development in January was the decoupling of credit markets from equities. Whilst equities fell 8%, credit markets rallied and left the S&P/ LTSA Leverage Loan Index up 7.40% in the month.

The destruction of wealth continued at a rapid pace in February. This was underscored by extremely negative economic news and data releases which overwhelmingly pointed to ongoing severe contraction across the G7. The US labour market continued to suffer with the unemployment rate nearing 8%. The BoE cut rates by another 50bps to 1%, making it clear that a significant amount of monetary policy stimulus was still needed. As interest rate cuts had been nearly exhausted, this policy stimulus would have to take the form of quantitative easing.

On a more positive note, the negative sentiment towards hedge funds appeared to be receding in March as several of the better quality funds saw their investors withdraw their redemption requests. This alleviated the pressure on hedge funds to liquidate further positions.

Global equity markets continued the rally in April which had begun in mid-March. Markets appeared to be undergoing a significant transition away from being driven primarily by financial stress and deleveraging to a phase in which they are primarily driven by the evolving underlying economic cycle. In response to the reduction in systemic risks, financial conditions also eased, with credit spreads narrowing across the board

The Global Macro backdrop continued to improve throughout the month of May. We saw a continuation of positive surprises in forward looking indicators. Improvements in global PMI s and a rebound in consumer confidence led the green shoots argument, albeit with plenty of doubters about. Both bullish and bearish camps had strong arguments to support their views. The impact of fiscal stimulus was increasingly being felt, and offsetting the negative drags from deleveraging and business cutbacks. The beginnings of a global economic recovery were in fact increasingly evident in Asia.

Review of Performance against Objective The fund launched in April and had sufficient assets for us to begin making investments in May. Therefore we began building the portfolio towards our target portfolio and that process is pretty much complete as we enter September. The New Horizon fund has a relatively broad mandate, but

it is likely that we will keep directional long exposure to equities low in order to minimize the correlation to this asset class.

With new funds, it is necessary to build the portfolios over a period of a few months and this therefore led to performance of 0.43% compared to the HFR FOF Diversified index, which had a strong performance of 4.1% from April to June, with May up 2.84% (one of the best months ever for hedge funds).

However, July and August have proved to be good months for the Fund (1.65% combined) now that it is over 80% invested and this level of returns is more what should be expected going forward.

Review of Strategies Used The tables below show the allocation by broad and sub strategy as at June 30. Where a fund is engaged in more than one strategy, our system allows splitting the allocation to provide greater detail.

Cash As can be seen, the fund had a high level of cash due to the phasing in of investments as described earlier. As of 1st September, the cash is less than 20%. The fund will not be leveraged and our top priority is to maintain liquidity and therefore a normal cash range will likely be in the 5% - 10% range.

Strategy (contribution)

Global Macro (+1bps) Funds Added Funds Redeemed Comac Global Macro None Brevan Howard Master We have added macro funds due to their ability to make money in different environments. They provide good transparency and good liquidity as they are generally trading the most liquid markets. Comac is managed by an ex Soros trader and places trades that have low risk but high upside. Brevan Howard is the largest European hedge fund and has a large team of traders making small bets, it is akin to a bank s proprietary trading desk.

Fundamental Credit Long/Short (+39bps) Funds Added Funds Redeemed Claren Road Master None King Street Capital Due to the dislocations created in 2008, credit markets offer outstanding opportunities to make money if you have the appropriate credit expertise. The funds in this strategy maintain a long/short profile and were able to make money in 2008. Claren Road is based in the US and is managed by ex Citigroup traders, their edge is in picking underpriced long positions versus overpriced short positions. King Street is one of the largest credit funds and is considered the best in class. They have a large infrastructure to support in depth credit analysis.

Distressed/Restructuring (+9bps) Funds Added Funds Redeemed Gruss Global Investors None We expect the default rate to increase and hedge funds are uniquely placed to benefit from this. By analyzing the company s assets versus the bond price, it is possible to buy the assets very cheaply and sell them within 12-18 months time. Gruss is roughly 50% in credit restructurings and 50% in equities (therefore it will appear twice in this report). They are one of the longest established event driven funds and they have made consistent money without ever using leverage.

22 Event Driven Credit (+9bps) Funds Added Funds Redeemed JCAM None As companies feel the need to restructure or raise capital, there will often be an event that will change the value of their credit bonds. Therefore, these funds can make money by correctly analyzing the impact of these events. JCAM is managed by a complete ex Moore Capital team and is performing well, the fund takes long and short positions depending on the opportunity.

Emerging Market Credit (+8bps) Funds Added Funds Redeemed Finisterre Sovereign None Debt In 2008, Emerging Market (EM) credit was sold aggressively as hedge funds and banks tried to reduce risk. This led to both EM sovereign debt and EM corporate credits becoming mis-priced given the strong fundamentals of these governments/companies. Finisterre is one of only a few EM hedge funds remaining and is therefore able to find trade ideas with little competition. The fund is performing very strongly in 2009 and is up 36% to the end of August.

Systematic Short Term (+3bps) Funds Added Funds Redeemed Niederhoffer Diversified None CTA funds performed exceptionally well in 2008 as their systems told them to be short equities. However, most do not cope well with turning points in the markets as they are too slow to change direction and have struggled in 2009. Niederhoffer has faster models than most and has therefore been able to cope with the rebound in equities since March 9th.

Event Driven Equity (-3bps) Funds Added Funds Redeemed Paulson Advantage Fund None Gruss Global Investors We have added this strategy because whilst there are fewer merger deals, the ones that exist are of high quality and offer higher than usual returns. Paulson is one of the largest hedge funds in the world who became famous for making billions from predicting the US housing meltdown. Due to their size they play an important role in the merger deals. Gruss has on average a 50% exposure to equity events.

Credit Relative Value (-10bps) Funds Added Funds Redeemed Ionic Capital None We have added this strategy because it can make money from mis-pricings that occur within a company s capital structure. For example, bonds will move out of the line with the equivalent CDS contract, therefore giving the opportunity to make money with no credit risk. Ionic capital is one of the best in this field and made 20% returns in 2008. However, the fund does better when markets are volatile and since April volatility has declined dramatically and therefore the fund was marginally down.

23 Outlook Looking forward, we believe that the global economy has already passed a major inflection point. Growth prospects in the near-term have been reinforced by the inventory dynamics and the continued progress in stabilizing the financial system. In the medium-term, the sustainability of the recovery hinges on a recovery in consumption rather than simply production. We believe that many market participants are underestimating the dynamism of the global economy.

We are particularly optimistic about Emerging Markets, which we strongly believe can decouple and outperform G10. Those EM countries which are not impaired by the financial crisis will be driven by their idiosyncratic structural and cyclical factors. We particularly favour the EM countries that have either successfully engineered a return to growth based on domestic demand, or are exporters of the commodities that a growing global economy needs.

We continue to favour funds with exposure to Corporate Credit and Emerging Markets as the risky assets of choice, whilst keeping a lower exposure to equities. We believe that these markets became the most dislocated during the events of 2008 and therefore offer good opportunities to make money from both the long and short side. Credit funds (such as Claren Road and King Street) continue to make steady returns from both sides of their portfolios. Macro funds in general have not benefited from the post March rally as they still believe (either through their systems or their analysis) that the underlying economic fundamentals do not warrant such a large reversal in the price of equities. However, we still believe that macro funds are beneficial to the portfolio as they provide good defensive attributes and offer excellent liquidity.

Matrix Money Management Limited September 2009

MATRIX EVENT DRIVEN FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

Restructuring This fund was formerly called the Matrix MAX Fund and was managed by MAXAM Capital. Matrix Money Management took over the investment management of this fund as from 1st January 2009. On the 1st April 2009 it was restructured. Therefore this report will be broken into 2 parts; a review of the MAX fund in Q1 and a review of the restructured parts of the Event Driven Fund for Q2. The key points of the restructuring are as follows:

The Fund created a Designated Share Class to contain underlying funds which are illiquid due to them locking or winding up The Fund s portfolio was split into Continuation Share Classes (for those Shareholders wanting to remain in the Fund) and Redemption Share Classes (for those Shareholders wanting to redeem their shares) The Investment Strategy of the Continuation Share Classes was changed to pursue Event Driven strategies. To reflect the change in Investment Strategy, the name of the Fund was changed from the Matrix MAX Fund to the Matrix Event Driven Fund The redemption terms of the Continuation Share Classes were changed from Monthly to Calendar Quarterly

The change of Investment Manager and the subsequent restructuring makes this report more complicated. Therefore the report will contain the following reviews: MAX Fund Q1 Event Driven Continuation Class Q2 Event Driven Redemption Class Q2 Event Driven Sidepocket Class Q2

MARKET REVIEW H1 2009

The first half of 2009 can be described as a half of two halves. The global economy entered 2009 in the grip of a recession of historic proportions. Despite unprecedented policy support which sought to break the negative spiral, many market participants drew parallels between the current crisis and the Great Depression of the 1930s. The tide turned suddenly and abruptly in the middle of March, as investors finally considered the possibility that the worst of the financial crisis was over.

MATRIX MAX FUND Q1 Review of Performance against Objective Managed previously by MAXAM Capital Management, the Matrix MAX Fund was launched to provide access to seasoned hedge fund managers, which were often closed or had minimums of $5 million or more, and other managers which had demonstrated solid investment skills. The Board accepted the resignation of MAXAM as investment manager of the Matrix Event Driven Fund (formerly the Matrix MAX Fund) at the end of 2008. From 1 January 2009 the Fund has been managed by the Matrix Investment Team.

The Institutional Sterling Shares of the Matrix MAX Fund returned -1.06% over the first quarter of 2009, this compares to the HFR FOF Diversified index, which had a performance of +0.93% over the same period.

The currency hedge was removed in 2008 due to liquidity reasons. However, this made little impact on the fund during the first quarter as the GBP/USD traded in a tight range between 1.43 and 1.45.

Review of Strategies Used Having taken over the portfolio, we looked at each holding in order to determine which funds to keep, which to redeem and which ones would need to be placed in a side pocket. At the end of March, the allocation was as following: Keeping 59% Redeeming 30% Side pocket 11%

We did not add any new funds during the 1st quarter.

Classification (contribution)

Keeping (+158bps) Those funds which we had decided to keep because they are Event Driven with a suitable profile and a good opportunity set performed well in the first quarter.

Total Contribution by Fund Status Jan-09 Feb-09 Mar-09 Contribution Icahn Fund Ltd Keeping 0.30% -0.18% 0.24% 0.36% King Street Capital Ltd Keeping 0.28% 0.11% 0.06% 0.45% Paulson Advantage Fund Ltd. Keeping 0.68% -0.08% 0.16% 0.76% Scoggin Worldwide Fund Keeping 0.11% -0.09% -0.03% 0.00%

Icahn is an activist fund that buys large stakes in companies in order to effect change. They were able to produce good returns in the first quarter because they had stock index hedges to protect them from further moves down in equity markets. Their long positions (such as Motorola) were able to out-perform the broader market.

King Street is one of the largest credit funds and is considered the best in class. They have a large infrastructure to support in depth credit analysis and run a balanced book of both long and short positions. They were able to profit in the first quarter from the rebound in the credit markets.

Paulson is one of the largest hedge funds in the world who became famous for making billions from predicting the US housing meltdown. Due to their size they play an important role in the merger deals. They were able to make money in the first quarter by remaining net short the equity markets, particularly financials.

Scoggin is a US based credit manager who looks for specific events that will impact the prices of corporate bonds. Their first quarter performance was pretty flat, but they have gone on to produce very strong returns since then.

Redeeming (-83bps) Those funds which we had decided to redeem because they are not Event Driven or have poor risk management performed poorly in the first quarter.

Total Contribution by Fund Status Jan-09 Feb-09 Mar-09 Contribution AG Super Fund Redeeming -0.00% -0.00% 0.00% -0.00% Artradis Barracuda Fund Redeeming -0.06% 0.12% 0.00% 0.06% Blenheim Global Markets Fund Redeeming 0.14% 0.14% Cerberus International Fund Redeeming 0.03% -0.09% 0.00% -0.05% Cevian Capital Fund Redeeming -0.21% -0.12% 0.11% -0.22% Hermitage Global Fund Redeeming -0.13% -0.09% 0.03% -0.19% Marathon Overseas Fund Redeeming 0.11% 0.17% 0.01% 0.29% Marathon Special Opportunity Fund Redeeming 0.02% -0.19% -0.38% -0.54% The Children s Investment Fund Redeeming -0.25% 0.03% -0.09% -0.31%

AG Super Fund was a residual position and had no material impact on the fund.

Artradis Barracuda is a volatility fund based in Singapore, whilst it performed well in 2008, the strategy does not fit. It was redeemed at the end of January.

Blenheim is a systematic commodity fund which performed poorly in the second half of 2008 and was redeemed at the end of January 2009.

Cerberus is essentially a private equity fund which can choose to invest in distressed debt. The long only nature of the fund caused it to perform poorly and its holdings are generally illiquid.

Cevian is a Nordic based activist fund (akin to Icahn) who run a very concentrated book of control positions. The fund has a long bias.

Hermitage is an Emerging Market (EM) equity fund with a focus in the Middle East. Returns have been very poor.

Marathon Overseas is a long/short credit fund with a heavy allocation in emerging markets. The long bias to credit helped them to make money in the first quarter.

Marathon Special Opportunity is similar to the overseas fund but is almost entirely invested in the US markets. They lost money by deciding to go short the credit markets just as they began to rally. They have since corrected this position however.

TCI is managed by Chris Hohn and is an activist fund. Despite him reducing his exposure, his investments continued to perform badly and he exited several large positions, causing losses.

Side pocket (-142bps) Those funds which are in the process of liquidating or have suspended redemptions were placed into the side pocket class as of 1st April. They performed extremely poorly in the 1st quarter.

Total Contribution by Fund Status Jan-09 Feb-09 Mar-09 Contribution DB Zwirn Special Opportunities Fund Liquidating -0.14% -0.15% -0.15% -0.44% Global Opportunities (GO) Fund Liquidating 0.12% -0.20% 0.00% -0.07% Highland Crusader Fund Liquidating -0.12% -0.45% -0.14% -0.72% Maxam EM Investable Index Liquidating -0.01% -0.00% 0.02% 0.01% RAB Special Situations Fund Liquidating -0.01% -0.04% -0.16% -0.21%

DB Zwirn was involved in direct lending to smaller companies. When the fund received large redemptions the manager was forced to put the fund into liquidation. Fortress Group is taking over the management of the liquidation as from May 1st.

Global Opportunities is an equity fund which is gradually selling off its positions in order to pay back investors. We have received fairly regular payments so far.

Highland Crusader is a credit fund which was forced to unwind its leverage at the worst time and therefore the fund has been marked down considerably both in 2008 and the 1st quarter of 2009.

MAXAM EM was created to replicate a basket of emerging markets funds, redemptions have been placed into the underlying funds and we are expecting a further payment soon.

RAB Special Situations is managed by Phillip Richards and had positions in small cap equities which it was unable to sell. The fund was down in the first quarter mainly due to the portion of private equity positions. The fund is paying back in 2011.

MATRIX Event Driven Continuing Class Q2 Review of Performance against Objective The Matrix Event Driven Continuing Class returned +1.23% in the 2nd quarter of 2009. This compares to a +4.15% return for the HFR FOF Diversified Index. Whilst the underlying funds performed well during the quarter, the class underperformed mostly due to the sharp appreciation of the pound versus the USD. We reinstated the hedge during April, but it wasn t quick enough to fully protect the class. The pound appreciated 4% in the first 2 days of April, 9% in May alone and 15% in the 2nd quarter as a whole. The FX loss was approximately 3%.

Review of Strategies Used Redemptions were placed for the quarter end of June as such they still appear in this report. As at 30 June, the strategy allocation was as follows:

Strategy (contribution)

Activism (+181bps) Funds Added Funds Redeemed None None Activist funds had a very strong quarter with both Icahn and Cevian performing strongly. The market rally helped, but even given this, their control positions made a strong rebound from the underperformance in 2008.

Distressed/Restructuring (+206bps) Funds Added Funds Redeemed Gruss Global Investors None We expect the default rate to increase and hedge funds are uniquely placed to benefit from this. By analyzing the company s assets versus the bond price, it is possible to buy the assets very cheaply and sell them within 12-18 months time. Gruss is roughly 50% in credit restructurings and 50% in equities (therefore it will appear twice in this report). Marathon Special Opps was up over 10% and Scoggin was up 24% over the 3 months. The returns came from a strong rally in the credit markets.

29 Fundamental Credit Long/Short (+75bps) Funds Added Funds Redeemed None None King Street is one of the largest credit funds and is considered the best in class. They have a large infrastructure to support in depth credit analysis. The fund returned over 5% during the quarter and made a large contribution as it is the largest holding in the fund.

Emerging Markets (+5bps) Funds Added Funds Redeemed None None Marathon Overseas was negative in the period which is a bad performance relative to their peers. Hermitage was up close to 10% as it benefited from the rally in EM equity markets.

Event Driven Equity (+7bps) Funds Added Funds Redeemed Gruss Global Investors None We like this strategy because whilst there are fewer merger deals, the ones that exist are of high quality and offer higher than usual returns. Paulson is one of the largest hedge funds in the world who became famous for making billions from predicting the US housing meltdown. Due to their size they play an important role in the merger deals. They had a small performance due to their short positions. Gruss has on average a 50% exposure to equity events.

Event Driven Credit (+7bps) Funds Added Funds Redeemed JCAM None As companies feel the need to restructure or raise capital, there will often be an event that will change the value of their credit bonds. Therefore, these funds can make money by correctly analyzing the impact of these events. JCAM is managed by a complete ex Moore Capital team and is performing well, the fund takes long and short positions depending on the opportunity.

Merger Arbitrage (+1bps) Funds Added Funds Redeemed None None We do not own a fund that exclusively does Merger Arb, however Paulson and Gruss will enter positions as and when they find attractive opportunities.

MATRIX Event Driven Redeeming Class Q2 Review of Performance against Objective The MATRIX Event Driven Redeeming Class returned -8.92% in the 2nd quarter of 2009. This compares to a +4.15% return for the HFR FOF Diversified Index. Whilst the underlying funds performed well during the quarter, the class underperformed mostly due to the sharp appreciation of the pound versus the USD as the share class is not currency hedged. The pound appreciated 4% in the first 2 days of April, 9% in May alone and 15% in the 2nd quarter as a whole. The FX loss was approximately 13.7%.

Proceeds from the underlying funds will be generated as quickly as possible and redemption requests have been submitted to all of the Funds in the table below.

The expected timetable for redemptions is as follows.

Review of Strategies Used Redemptions were placed for the quarter end of June as such they still appear in this report. As at 30 June, the strategy allocation was as follows:

Strategy (contribution)

Activism (+226bps) Funds Added Funds Redeemed None None Activist funds had a very strong quarter with both Icahn and Cevian performing strongly. The market rally helped, but even given this, their control positions made a strong rebound from the underperformance in 2008.

Distressed/Restructuring (+250bps) Funds Added Funds Redeemed None None We expect the default rate to increase and hedge funds are uniquely placed to benefit from this. By analyzing the company s assets versus the bond price, it is possible to buy the assets very cheaply and sell them within 12-18 months time. Marathon Special Opps was up over 10% and Scoggin was up 24% over the 3 months. The returns came from a strong rally in the credit markets.

Emerging Markets (+10bps) Funds Added Funds Redeemed None None Marathon Overseas was negative in the period which is a bad performance relative to their peers. Hermitage was up close to 10% as it benefited from the rally in EM equity markets.

Event Driven Equity (+14bps) Funds Added Funds Redeemed None Paulson Paulson was partially redeemed in order to generate cash. The remainder was redeemed as at 31 July 2009.

Merger Arbitrage (+2bps) Funds Added Funds Redeemed None None We do not own a fund that exclusively does Merger Arb, however Paulson enters positions as and when they find attractive opportunities.

Fundamental Credit Long/Short (+20bps) Funds Added Funds Redeemed None King Street King Street was redeemed in order to generate cash.

MATRIX Event Driven Side Pocket Class Q2 Review of Performance against Objective The Matrix Event Driven Side Pocket Class returned -5.61% in the 2nd quarter of 2009. This compares to a +4.15% return for the HFR FOF Diversified Index. Whilst the underlying funds were overall positive during the quarter, the class underperformed mostly due to the sharp appreciation of the pound versus the USD as the share class was not hedged until there was enough liquidity to support a hedge. The pound appreciated 4% in the first 2 days of April, 9% in May alone and 15% in the 2nd quarter as a whole. The FX loss was approximately 9%.

Review of Strategies Used The list of funds placed into the side pocket and their proportion of the class is detailed below.

Fund Status DB Zwirn is in the process of being fully liquidated. This in many cases means waiting for loans to be re-paid or mature. DB Zwirn as a company began to run out of resources to continue to manage

32 the liquidation and therefore Fortress Group has been elected to take over the liquidation. They are incentivized to maximize the value of the loans and should provide better information than DB Zwirn. The timing of distributions is unknown.

Highland Crusader is left with direct loans and private equity positions. Whilst the fund has cash available to distribute, there is currently a legal battle over who owns the cash. They have appointed a mediator and we are staying in touch with the working groups. The timing of distributions is unknown.

RAB Special Situations continues to provide timely performance estimates and letters. We would expect to receive money at the end of the 3 year lock which is in September 2011.

MAXAM Investable Index has made payments and there is currently about 25% of the original amount outstanding. We are going to hear shortly about the status of the residual amount.

Scoggin Worldwide is a sidepocket of the main fund and they expect this to be liquidated by the end of the year.

Global Opportunities have made regular payments to us and have a couple of residual holdings left to sell before releasing the rest of the money.

King Street is an intentional sidepocket of the fund which MAXAM agreed to invest in. This was not created due to redemptions, but contains the more illiquid investments of the fund.

Outlook Looking forward, we believe that the global economy has already passed a major inflection point. Growth prospects in the near-term have been reinforced by the inventory dynamics and the continued progress in stabilizing the financial system. In the medium-term, the sustainability of the recovery hinges on a recovery in consumption rather than simply production. We believe that many market participants are underestimating the dynamism of the global economy.

We believe that there are really compelling investment ideas in the event driven space, both in corporate bonds and equities. These opportunities are being created by the need for companies to re-organise or restructure their financial capital structures. These actions may be voluntary or may be forced upon them in the event of bankruptcy. Combining this with the fact that many market participants have left this space, leaves a plentiful opportunity set for those that remain.

We especially believe that there is an enormous opportunity with events taking place in the credit markets, such as defaults. Despite the rally at the credit index level, there remains a myriad of opportunities to buy cheap credits at low prices, whilst also being able to short expensive credits at high prices. Event driven funds continue to make steady returns by investing in opportunities that have a definite event to force the return. Whilst the number of Merger deals is low, the quality and the return potential is very high. Therefore these deals offer attractive risk/return possibilities without the need for leverage.

We are confident about the future returns for the Continuing class as the changes we are making have more and more impact. As the liquidity of the portfolio has improved, we are able to be fully hedged with respect to the currency and therefore the unfortunate losses suffered in the 2nd quarter won t be repeated.

Matrix Money Management Limited September 2009

MATRIX ASSET BASED FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The Institutional Shares of Matrix Asset Based Fund returned -37.74% over the first half of 2009. The Matrix Asset Based Fund invests exclusively in the Shares of the Gottex Asset Focussed Fund which aims to generate consistent returns with a low degree of risk and a low degree of market correlation.

Market Review Q1 2009 was characterized by the continued release of negative economic news that increasingly reinforced the severity of the global recession, combined with varying degrees of government intervention aimed at supporting markets.

US government initiatives, such as TALF, caused some liquidity to return to the markets, particularly for Mortgage-Backed Securities ( MBS ) and Asset-Based Securities ( ABS ). In March, the Fed also increased its planned purchases of Agency MBS to USD 1.25 trillion (from USD 500 billion) and Agency debt to USD 200 billion (from USD 100 billion). Government announcements were less dramatic in Q2 2009. For the first time in months, the US government did not roll out a major new program. Toward the end of Q2 2009, the Federal Open Market Committee ( FOMC ) announced that it would continue its buying program. The impact of the recent government programs remains limited, and the back-up in Treasury yields has kept mortgage rates above where they were when these programs were introduced.

With an improvement in market sentiment corporate credit markets rallied especially from late March right through to the end of June 2009 in the levered loan market for example, the Credit Suisse Leveraged Loan Index is up 27.10% year to date through June 2009 with the average price rising to 76.47, from a low of 62.25 at the end of 2008. The trailing 12 month institutional leveraged loan default rate has however increased 7.67% in June compared to in December 2008.

The ABS markets have recently demonstrated mixed results. Toward the end of Q2 2009, the ABS demonstrated significantly range-bound results. Market participants began to conclude that the US government is reluctant to extend its Term Asset-Backed Securities Loan Facility ( TALF ) program beyond its current scope, and that Residential Mortgage-Backed Securities ( RMBS ) in particular may never make it into the program. On the other hand, we feel that private sector financing options are making a comeback, particularly the Resecuritized Real Estate Mortgage Investment Conduit ( re-REMIC ). Initiatives such as this, as well as the Public Private Investment Program ( PPIP ) program that was launched in July, will help put a floor under asset prices. Many of the RMBS and Commercial Mortgage-Backed Securities ( CMBS ) sectors have rallied by far less than the corporate credit markets since March, and we believe that they may offer better overall value at this point, albeit at the expense of inferior liquidity.

Despite improvements in liquidity in the public markets, liquidity remains constrained in the asset- based sector. The life insurance market remains closed, with an abundance of supply and little to no debt or equity financing on offer. The commercial real estate market remains at a standstill although a lot of markdowns have already been taken. Surveys of bank loan officers suggest that lending standards will remain tight at least until the second half of 2010 - to produce any sustainable momentum, banks must clear legacy positions to free up capacity for new lending. Additionally a survey by S&P of 134 CLO managers revealed that 30% believe that the peak in leveraged loan defaults will be in Q4 2009 with another 45% believing that defaults will peak in the first half of 2010.

Review of Performance against the Objective

Table 1: Performance Statistics

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jan - Jun 2009 Matrix Asset Focused Fund USD -16.27% -4.78% -16.25% -9.26% 15.26% -1.38% -31.12% Matrix Asset Focused Fund GBP -15.34% -3.32% -16.17% -12.30% 4.01% -3.32% -39.50%

All returns presented in this report are net of all fees and expenses. Past performance is not indicative of future results.

The Gottex Matrix Asset Focused Fund USD ( Fund ) returned -31.12% for the period January June 2009. Gross returns were at the unlevered portfolio level were estimated at approximately -5% (before leverage and fees) translating into a substantially lower net return reflecting the higher leverage ratio this is attributable to the NAV declines seen since the start of the deleveraging process in October which has outpaced the absolute pay downs in leverage over the same period. As a result, leverage as of June 30 was approximately 5.5x (which is significantly higher than the legal maximum of 1.67x as outlined in the Fund s Prospectus.

Like the final quarter of 2008, performance over the first quarter of 2009 remained lacklustre although the magnitude of losses has moderated somewhat. Significant improvements in market sentiment from March onwards translated into strong gains for listed equities and credit and helped a number of the funds in the portfolio which had taken heavy mark-to-market losses previously, resulting in positive performance for the fund for the second quarter.

Strategy Review The table below shows the % allocation at month-end for the period:

Table 2: Strategy Evolution Summary

Strategy Allocation December-08 January-09 February-09 March-09 April-09 May-09 June-09 Change Asset Based Lending 45.47% 46.69% 41.37% 45.07% 45.32% 47.52% 47.53% 2.06% AR / PO Finance 3.34% 3.33% 2.86% 3.58% 3.30% 3.25% 3.27% -0.07% Trade Finance 3.02% 3.03% 3.51% 3.13% 3.31% 3.30% 3.35% 0.34% Equipment Leasing 0.10% 0.09% 0.11% 0.10% 0.10% 0.10% 0.10% 0.00% Corporate Lending 26.64% 27.15% 24.50% 23.17% 22.83% 25.32% 25.24% -1.41% Real Estate Finance 5.08% 5.35% 3.69% 6.35% 6.55% 6.49% 6.44% 1.36% Consumer Finance 1.28% 1.49% 1.75% 1.87% 1.94% 1.87% 1.90% 0.62% Insurance 6.01% 6.25% 4.95% 6.87% 7.30% 7.19% 7.23% 1.22% Asset Based Investing 43.49% 42.32% 43.72% 41.38% 41.86% 40.15% 40.25% -3.24% Real Estate 9.51% 9.91% 10.75% 8.92% 9.03% 8.95% 8.84% -0.67% Receivable Pools 8.45% 8.58% 9.42% 8.39% 8.51% 8.34% 8.39% -0.06% Leasing 6.03% 5.74% 6.99% 6.34% 6.69% 6.58% 6.70% 0.67% Energy 2.78% 2.86% 2.49% 3.35% 3.19% 3.02% 3.01% 0.23% Agriculture 1.79% 1.85% 2.17% 1.94% 2.06% 2.07% 2.12% 0.34% Infrastructure 0.27% 0.28% 0.16% 0.00% 0.00% 0.00% 0.00% -0.27% Insurance 14.66% 13.11% 11.74% 12.44% 12.39% 11.19% 11.19% -3.47% Asset Backed Securities 5.19% 4.85% 6.02% 4.61% 4.12% 3.83% 3.79% -1.40% Cash 5.85% 6.13% 8.89% 8.94% 8.70% 8.51% 8.43% 2.58% Allocation as of end of month.

The strategies above have been selected by Gottex Fund Management. All opinions expressed constitute judgment as of the date of this report and may change at any time. Contributions and allocations may not sum to one due to rounding.

Changes to strategy allocations over the period are driven by manager returns, Gottex Pricing Committee ( GPC ) reserves and to a lesser extent redemption proceeds received as opposed to specific strategy targets.

The largest change to strategy allocations over the period was a decrease in ABI Insurance largely as a result of negative performance reported in the life insurance funds (discussed under Strategy Attribution Summary) and to a lesser extent redemption proceeds received from a fund with both life and non-life exposure. The allocation to Corporate Lending also fell reflecting mainly mark-to-market losses particularly in the first quarter (although somewhat offset by mark-to-market gains and reversal of GPC reserves in the second quarter). Significant redemption proceeds also contributed to the decrease with over 50% of all cash received over the period coming from Corporate Lending funds or from funds with a significant allocation to the sector. The allocation to ABS fell also; again negative performance was the biggest contributor, primarily from two multi-strategy funds with some CLO exposure. Redemption proceeds were also received from the only remaining ABS fund in the portfolio.

Cash held at the hedge fund level increased by nearly 3% as a result of the unwinding or sale of underlying positions. We continue to push underlying funds to release cash to us, this could be cash arising from asset sales/loan maturities as well as cash held for other purposes such as FX hedging.

Table 2: Strategy Attribution Summary (USD)

January to % of Gross Return Contribution January-09 February-09 March-09 April-09 May-09 June-09 June 2009 Contribution T otal (Gross, before leverage) -268.3 -106.7 -141.4 11.2 433.1 -23.2 -516.5 100.0% Asset Based Lending -96.1 -86.4 -44.4 21.4 362.5 8.6 165.5 -32.0% AR / PO Finance 0.3 -0.6 -0.5 -48.5 1.5 0.0 -47.8 9.3% Trade Finance -5.5 -6.6 -8.6 -3.1 18.9 -0.1 -5.0 1.0% Equipment Leasing -0.1 0.0 -0.4 -0.3 0.0 0.0 -0.8 0.2% Corporate Lending -80.3 -78.1 -19.1 78.3 331.7 17.1 249.6 -48.3% Real Estate Finance -5.2 -0.4 -12.3 -3.7 8.2 -9.3 -22.7 4.4% Consumer Finance -3.4 0.6 0.6 0.8 1.7 1.0 1.4 -0.3% Insurance -1.9 -1.3 -4.2 -2.1 0.5 -0.1 -9.2 1.8% Asset Based Investing -165.6 -18.8 -81.9 -13.2 63.6 -27.3 -243.1 47.1% Real Estate -33.8 -4.8 -39.5 -5.3 21.2 -20.0 -82.2 15.9% Receivable Pools -18.9 -9.8 -19.7 -5.3 23.1 -5.4 -36.0 7.0% Leasing -66.0 4.4 -6.7 0.7 5.1 1.9 -60.7 11.8% Insurance -16.7 -4.3 -6.3 -1.5 3.9 -2.5 -27.4 5.3% Energy -14.0 -0.1 -5.7 0.1 0.2 -1.3 -20.8 4.0% Agriculture -3.0 -4.0 -4.0 -1.9 9.9 0.0 -3.0 0.6% Infrastructure -13.1 0.0 0.0 0.1 0.2 0.0 -13.0 2.5% Asset Backed Securities -6.6 -1.5 -15.2 3.0 7.0 -4.5 -17.7 3.4% Cash ------Note: before prior months adjustments and leverage on the portfolio level

The strategies on this page have been selected by Gottex Fund Management. All opinions expressed constitute judgment as of the date of this report and may change at any time. Contributions and allocations may not sum to one due to rounding.

Like the final quarter of 2008, performance over the first half of 2009 remains negative although the magnitude of losses has moderated somewhat.

Corporate Lending was the biggest detractor to performance over the first quarter driven by continued weakness in valuations on corporate loans. With the improvements in the public credit that began in March, Corporate Lending went from the biggest detractor in the first quarter to the largest contributor in the second quarter, reversing some of the mark-to-market losses taken previously. The attribution analysis also includes the reversal of certain GPC reserves on two Corporate Lending funds in May 2009.

ABI Real Estate (and Real Estate strategies in general) was also a significant contributor to negative performance with several funds active in this strategy posting large negative returns as a result of

36 lower appraisals received from third party valuations. Real estate (primarily commercial) continues to be under significant pressure in the US and Europe although substantial writedowns have already been taken in ABL and ABI positions in this strategy.

The negative contribution noted from AR/PO Finance reflect additional GPC reserves for the funds with exposure to the purchase order inventory financing business of Petters based on updated recovery assumptions. Reserves stand at 93% for Palm Beach Offshore and Lancelot and 83% for Stewardship.

In the Insurance sector, the lengthening of life expectancies ( LE ) announced by the major LE providers in late 2008 has caused a number of funds to review their life books with additional markdowns as a result. Two specific managers in this sector remain in a very precarious position as financing to fund premiums has all but dried up and the prices for policies in the secondary market have dropped precipitously. We are working closely with both managers to try to come up with a solution to avoid having policies or loans against policies in their portfolio drop further in value.

We believe it s important to highlight that this attribution is on the unlevered portfolio level, and therefore does not include the impact of leverage and fees. As mentioned above, the leverage ratio at the end of June stands at approximately 5.5x.

Outlook June saw a pause in the rally that began in March, as the market began to express concerns that the rally in asset prices exceeded the improvements in the fundamental economy. The June pause proved to be short lived however and by late July it seemed that investors were more fearful of underperformance in a rally than of another correction. Some asset classes that looked compellingly cheap at the start of the year are only mildly attractive now, particularly given the clouds that remain on the horizon.

It is also clear that the US consumer is in retrenchment mode. An adjustment from the excesses of the last decade seems appropriate, but given that consumption has represented as much as 70% of US GDP in recent years, it is difficult to see how the US can return to normal growth rates for some time.

In the corporate lending segment corporate defaults have likely not peaked - an S&P survey of 134 CLO managers revealed that 30% believe the peak will be the 4Q 2009, with another 45% believing that leveraged loan defaults will peak in the first half of 2010.

Despite improvements in liquidity in the public markets, liquidity remains constrained in the asset- based sector. The life insurance market remains closed, with an abundance of supply and little to no debt or equity financing on offer. The commercial real estate market remains at a standstill although a lot of markdowns have already been taken. Finally, idiosyncratic events plague a number of funds. Surveys of bank loan officers suggest that lending standards will remain tight at least until the second half of 2010. To produce any sustainable momentum, banks must clear legacy positions to free up capacity for new lending. Additionally, demand for loans continued to be weak.

The dearth of financing alternatives for borrowers means that payoffs remain elusive. However, we have been on target with cash collections, and we continue to work with our managers on realization efforts.

Gottex Fund Management Sarl August 2009

37 MATRIX ASSET BASED 2 FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The Institutional Sterling Shares of the Matrix Asset Based 2 Fund returned -23.34%, including the side-pocket which was created in October 2008, for the six months ended 30 June 2009. The Matrix Asset Based 2 Fund invests exclusively in Shares in the Stillwater Matrix Fund whose investment objective is to achieve consistent returns over the medium term with low correlation to major stock and fixed income market indices by investing in a portfolio of underlying funds that employ Asset Backed Investment Strategies.

Six Month Ended 30 June 2009 Market Review The business environment in the U.S. over the past six months has been extremely challenging. All of the underlying Managers have lived through the harsh realities of the current economic climate. The challenging liquidity and funding position experienced during the last quarter of 2008 and into 2009 across the entire asset based financing sector has affected a majority of the Fund s Managers and consequently, the Stillwater Matrix Fund itself. Additionally, the issuance by AVS and 21st Services of modifications to their respective life expectancy tables had a negative impact on the life insurance portion of the portfolio.

Analyzing recent events affecting the markets, such as President Obama s $787 billion economic stimulus package combined with bank rescue plans and other initiatives, leads many market participants to believe the credit markets could stabilize by year-end.

The ABL sector continues to experience stress, along with the greater economy. Even as we witness pockets of recovery and a slight stabilization, there still remains a select group of Managers that are expected to continue to report negative performance for the near future. Write-downs within specific asset classes can be expected to continue, especially in the real estate sector as well as the insurance premium finance product. Corporate lending and entertainment lending have also experienced stress in 2009. These specialties continue to suffer from a lack of a secondary market and lenders unwillingness to re-finance current positions.

Please note that the analysis below is for the Stillwater Matrix Fund USD share class in which the Matrix Asset Based 2 Fund invests.

Review of Performance against the Objective The Stillwater Matrix Fund s investment objective is to generate consistent returns over the medium term with low volatility and correlation to major stock and fixed income market indices. Such returns were expected to be associated with a low degree of risk. The Fund was not able to achieve its objectives in the first six months of 2009, with the US Dollar share class generating a negative return of 10.78%. The move from positive to negative returns for the underlying funds in the Stillwater Matrix Fund was largely caused by Managers being forced to write-down the value of their collateral as well as the rise in the number of borrowers either defaulting or being late on paying the interest payments on their loans. The Sterling Shares also suffered from the value of sterling appreciating against the US Dollar by 14.6% from 30 January 2009 when the Sterling and Euro shares became unhedged, to the end of the period.

In these market conditions, several of our Managers are now creating workout groups that will focus on foreclosures, asset management and sales. Our Managers continue to be focused and involved with every borrower to try to ensure that the loans that they have made can be repaid or rescheduled. Managers speak to borrowers frequently and ensure that all taxes, insurance and liens are paid on time to assist in the successful repayment of their loans.

Liquidity has been negatively affected by the market conditions that developed during the second half of 2008. Managers have historically been able to sell performing loans at par or greater in order to meet redemptions, but now the market, where it exists at all, is only searching for a discount of original value. Additionally, many of the underlying funds in which the Stillwater Matrix Fund invests had substantial investments from funds of hedge funds, which like the Stillwater Matrix Fund had leverage which was called in by the leverage providers during the last quarter of 2008. This has resulted in many of the underlying funds having to meet unprecedented levels of redemption requests. Many of these funds have had to apply gates and suspensions of redemptions while they try to generate cash from loans that are being repaid to meet their redemption requests.

Review of Strategies Used by the Stillwater Matrix Fund Diversification is imperative for the Fund and thus our portfolio is split into eight strategies. By June 30, 2009 the fund had 47 non side-pocket Managers that originate and underwrite all the loans in their respective strategies. The strategies are Trade Finance, Entertainment, Senior Secured Lending with Warrants, Insurance, Multi-Strategy, Legal/Litigation Backed Lending, Corporate Lending, and Real Estate Lending. The 2009 contribution to performance by strategy and the December 31, 2008 and June 30, 2009 allocations to each strategy were as follows:

Approximate Contribution to 2009 Strategy Breakdown 12/31/2008 06/30/2009 Performance Trade Finance 6.90% 6.51% 0.25% Entertainment 9.51% 10.86% -1.31% Sr Secured with Warrants 5.48% 6.56% 0.10% Insurance Finance 5.17% 3.20% -0.77% Multi-Strategy 40.74% 38.96% -6.88% Legal/Litigation Backed 0.97% 1.18% 0.08% Corporate Lending 23.94% 25.55% 0.58% Real Estate Lending 7.29% 7.18% -2.85% Total 100.00% 100.00% -10.78%

Trade Finance Trade Finance comprised 6.51% of the Fund as of June 2009, a decrease from 6.90% in 2008. The Fund now has a total of four Managers (not including the side-pocketed managers) which contributed positive 0.25% to performance overall. These funds purchase trade accounts receivables or promissory notes issued by corporate entities for working capital or trade finance purposes. Such debts are typically less than 2 years with the majority between 3 and 18 months. The funds will have a security interest in the underlying collateral being financed.

Three of the funds in this sector; Lancelot, Stewardship and Palm Beach, were all exposed to Petters Group, a leading US purchase order financing company. In September 2008, the activities of the Petters Group were exposed as being fraudulent. Stillwater Matrix Fund and the Matrix Asset Based 2 Fund created a side-pocket for these funds in October 2008. In December 2008, following the disposal of some of the Petters Group assets for less than had been expected, the funds were written down to 10% of their original value, resulting in the negative 8.50% performance for the Trade Finance sector in 2008, including the side-pocket exposure. No further write-downs have been made in 2009.

Entertainment Lending Entertainment Lending comprised 10.86% of the Fund as of June 2009, an increase from 9.51% in 2008. The Fund now has a total of four Managers which contributed negative 1.31% to performance overall. These funds provide asset based financing to Film & TV production markets or middle market distributors of entertainment content such as film libraries, music catalogues and electronic

39 game licenses. Even though the sector is generally viewed as recession-proof, it was not able to avoid the general global slowdown and experienced losses in the first half of 2009.

Senior Secured with Warrants Senior Secured with Warrants comprised 6.56% of the Fund as of June 2009, an increase from 5.48% at the end of 2008. The Fund now has a total of three Managers and contributed positive 0.10% to performance overall. These funds lend money to promising emerging growth and small- cap public companies, typically through senior-secured asset-backed convertible debentures. The Funds receive interest on the loan as well as warrants that convert into freely tradable common stock. The performance in this sector is due to a combination of it s equity exposure via warrants and asset write-downs. As the warrant portion of the portfolio is marked at the current value of the underlying stock, the asset value of this collateral generally increased along with the overall equity markets in the second quarter of 2009. Additionally, asset values such as real estate, inventory, equipment, etc. that comprised the collateral on the transactions were written-down as their appraised values decreased.

Insurance Finance Insurance Finance comprised 3.20% of the Fund as of June 2009, a decrease from 5.17% at the end of 2008. The Fund began 2009 with two Managers in this sector which together contributed negative 0.77% to performance overall. One of the managers, Securis Fund, was fully redeemed in April 2009, reducing the dollar exposure in this sector. The negative performance in this sector is due to write downs in the Insurance Premium Finance (IPF) and Life Settlement markets as a result of two actuarial companies (AVS and 21st Services) increasing their life expectancy expectations. This change had a negative impact on the life insurance portion of the underlying Manager s portfolio. These increases in life expectancy estimates suggest that market participants will factor in longer premium payment periods, which in turn lowers the value of related collateral. Additionally a lack of liquidity in the secondary market has resulted in any remaining buyers demanding greater discounts on the collateral, further reducing their values The Multi Strategy managers in the Fund have approximately 5% of their assets exposed to Insurance Finance.

Multi-Strategy Multi-Strategy comprised 38.96% of the Fund as of June 2009, a decrease from 40.74% at the end of 2008. The Fund now has a total of eighteen Managers and contributed negative 6.88% to performance overall. Multi-Strategy ABL Funds originate, underwrite, and service secured asset backed loans to a variety of borrowers across multiple strategies including accounts receivable, factoring, leasing, insurance, real estate, instalment sale contracts, energy, commodity finance, consumer credit receivables, and other collateral. Many funds take advantage of markets that are underserved by traditional sources of financing either due to the small size of the loans (ranging from $100,000 to $10,000,000) or the unique needs of the borrower (short time horizon due to opportunistic purchase). The underperformance in this sector is primarily due to the real estate lending and insurance portions of these funds as well as general defaults and asset write-downs as a result of the continuing global recession. Additionally, the Funds witnessed conservative approaches by auditors and third party valuation experts to their underlying collateral which resulted in unrealized mark-to-market losses in 2009.

Legal Claims / Litigation Backed Legal Claims / Litigation Backed Lending comprised 1.18% of the Fund as of June 2009, an increase from 0.97% at the end of 2008. The Fund now has one Manager which contributed 0.08% to performance overall. This Fund purchases legal settlements from lawyers who provide contingent fee legal services. It also provides revolving lines of credit for working capital to personal injury or contingency-only law firms. This sector continued to perform well during the first half of 2009 with little negative performance exposure to the global credit crisis.

40 Corporate Lending Corporate Lending comprised 25.55% of the Fund as of June 2009, an increase from 23.94% at the end of 2008. The Fund now has a total of ten Managers and contributed positive 0.58% to performance overall. One Manager (Third Eye Capital) was fully redeemed in 2009, reducing the dollar exposure to this sector. These funds lend on a senior secured basis to private and public middle market companies in need of short term financing. These funds are in a senior secured position and utilize fundamental bottom-up credit research analysis to invest. Collateral may include plant, equipment, buildings, patents, receivables, infrastructure, enterprise value, etc. The Mangers in this sector performed better than their peers by avoiding excessive real estate exposure and concentrating on low LTV transactions to well performing companies. Overall, the impact to the global recession has not affected this sector as greatly as other products.

Real Estate Lending Real Estate Lending comprised 7.18% of the Fund as of June 2009, a decrease from 7.29% at the end of 2008. The Fund now has six Managers and contributed negative 2.85% to performance overall. These funds source, originate, self-underwrite and service short term commercial real estate bridge loans. Lending terms are typically 6 to 24 months and are secured by first position trust deeds on real estate, assignment of rents and personal guarantees. Loans may be made for raw land, new construction, acquisition development, rehabilitation and property improvements. The negative performance in this sector is due the significant global real estate devaluation and lack of refinancing or secondary markets for all real estate products.

KBC Leverage Provider to the Stillwater Matrix Fund We have placed redemption notices for all of the funds in Stillwater Matrix. In the fourth quarter of 2008, the Fund s leverage facility provider, KBC Financial Products ( KBC ), informed Stillwater of its desire to cancel the facility and requested its repayment in full. 2008 began with the leverage facility equalling $52 million and capital equalling $53 million (0.98 to 1) for a total Fund AUM of $105 million and ended 2008 with the leverage facility equalling $168 million and capital equalling $204 million (.82 to 1) for a total AUM of $372 million.

As of the end of June 2009, the leverage facility equals approximately $130.5 million and capital including all side-pockets equalling approximately $173.7 million (0.75 to 1) for a total Fund AUM including side-pockets of approximately $304.2 million. We anticipate that it will take approximately 9 to 15 months to repay KBC in full.

For the foreseeable future, the Fund will not be in a position to meet redemption requests given the current illiquid nature of the Fund s underlying Managers and the need to repay the leverage facility prior to fulfilling any redemption requests by investors. Stillwater continue to work with the fund s lender to ensure an orderly manner in which to pay-down the leverage facility and are currently in discussions with alternative lenders to replace the current provider to allow redemption requests to be met in a timely manner.

Performance Outlook for 2009 The Fund s performance outlook remains uncertain. Economies worldwide are in the midst of a long term, far reaching de-leveraging process that is likely to continue to negatively affect the Fund. Some of our Managers have continued to write down the value of their collateral throughout the first half of 2009 which has resulted in continued negative monthly returns. As the year progresses, we are hopeful that these write-downs will subside and returns will improve.

Investor Liquidity Outlook for 2009 For the foreseeable future, the Fund will not be in a position to meet redemption requests or to place a sterling currency hedge given the current illiquid nature of the Fund s underlying Managers and the need to repay the leverage facility prior to fulfilling any redemption requests by investors. We anticipate that it will take approximately 9 to 15 months to repay KBC in full. We continue to work with our lender to ensure an orderly manner in which to pay-down the leverage facility and are currently in discussions with alternative lenders to replace the current provider to allow redemption requests to be met in a timely manner.

To recap, we anticipate the second half of 2009 to see:

An easing of the write downs of loans from underlying Managers as global markets begin to stabilize; and Continuation of the repayment of the Fund s leverage facility.

Stillwater remains committed to its long term goal of producing consistent returns with relatively low correlation to public debt and equity markets and to other hedge fund strategies.

Stillwater Capital September 2009

MATRIX ASIAN PROPERTY INCOME FUND INVESTMENT MANAGER S REPORT FOR THE PERIOD ENDED 30 JUNE 2009

The Institutional Sterling Shares of the Matrix Asian Property Income Fund returned 8.80% during the half year from January to the end of June 2009 inclusive of a dividend of 4.28p paid on 30 June 2009. The Matrix Asian Property Income Fund invests exclusively in Class B Shares in the ARA Asian Asset Income Fund. The ARA Asian Asset Income Fund is managed by ARA Strategic Capital 1 Pte Ltd and aims to generate superior long term returns by investing in a diversified portfolio of listed and unlisted equity securities in asset backed sectors which have the potential for growing levels of rent from the assets plus capital growth, in the Asia-Pacific region. The portfolio will have a key focus on real estate investment trusts, infrastructure and utility securities.

Market Review After a scary start in the first quarter, the first half of 2009 brought back much cheer to the Asian Equities market. Asian equities benefited from revived investors appetite for risk which saw regional indices recuperating part of their earlier losses suffered in 2008. The MSCI Asia Pacific Index returned +15% for the first six months of 2009.

Asian REITs (which are leveraged trust vehicles owning real estate investment assets) generated well deserved recovery performance with a return in investors confidence in the sector. The UBS SREIT index posted an encouraging return of +26% and the Bloomberg Asia REIT index returned +17% for the first half period of 2009.

2009 confronted the Asian REITs market with a challenge dubbed the 3-Rs: Refinancing, Recapitalization and Revaluation. Areas of concern were highlighted in the REITs balance sheet stability in the face of large potential NAV reductions and large scale debt refinancing requirements. A tight credit environment added to the concern with credit rating downgrades emerging. Moody s downgraded two SREITS (Ascendas REIT as well as Macarthurcook Industrial REIT). As we had expected, the Asian banks rose to the Refinancing Challenge of maturing REIT CMBS and loans, albeit at a higher spread than previously. The table below illustrates some of these.

Selected Debt Refinancings Suntec REIT Debt refinancing of S$ 820m CDL Hospitality Trust Debt refinancing of S$ 300m Fraser Commercial Trust Debt refinancing of S$ 675m

The rally (some coined it a Bear rally) in Equities in the second quarter of the year also provided some respite to the REITs financing conundrum. An improved investor s risk appetite, buying into the green shoots story, helped set the stage for a stream of successful recapitalizations easing the financing overhang that haunted the asset class earlier in the year. However, in general, these recapitalizations replaced debt with equity resulting in marginal dilution in distributions per unit. The following is a summary of the refinancing activities this year, some of which are held in our portfolio:

Ascendas Reit Private placement of S$292M / Pref offering of S$108M Capitamall Trust 9 for 10 Rights issue, raised S$1.2B Capitacommercial Trust 1 for 1 Rights issue, raised S$1.57B Champion Reit Distibution reinvestment / Buy-back of Convt Bonds First ship Lease Trust Distibution reinvestment / Voluntary debt repayment Fraser Commercial Trust 3 for 1 Rights issue, raised S$213.9M Starhill Global Reit 1 for 1 Rights issue, raised S$337.3M Fortune Reit 1 for 1 Rights issue, raised HK$1,889M

On the back of these successful recapitalization stories, the sector also witnessed positive share price re-ratings as returning liquidity found its way back into the stronger balance sheet names. However, evidence shows that even with the recent rally, the REITs sector is still trading at substantial discount to NAV and is at historically wide yield spreads of +/- 500bps to the Risk Free rate while this may indicate that the market expects NAV and rental declines, our own view is that this Revaluation Challenge is exaggerated by the market and provides a selective buying opportunity. In fact, this revaluation fear allows room for potential further re-ratings of the sector in the second half of 2009 as REITs conquer this last challenge.

Review of Performance against the Objective The ARA Asian Asset Income Fund (Class B US $ shares) returned +26% for the first six months of 2009. The Fund met its income objective delivering a dividend of USD3.80 per share to its investors (equivalent to an annualized yield of c.17.8%) for the same period in 2009. The Fund delivered its return and income objectives with a relatively lower volatility compared to some its closest benchmarks. The UBS SREIT index ran an annualized volatility of 39% and the Bloomberg Asia REIT index managed an annualized volatility of 32% compared to an annualized volatility of 25% posted by the Fund for the same period.

The Sterling Shares of the Matrix Asian Property Income Fund, which have been unhedged since November 2008, suffered from the value of sterling appreciating against the US Dollar by 12.72% over the period.

The Fund aims to continue to deliver its objectives while minimizing the un-predictability aspect of its returns.

Review of Strategies Used

The Fund maintained an average net long exposure of about 80% over the first half of the year, this was complimented with an average short (hedged) exposure of 20% over the same period. Long exposures were gradually increased in the second quarter along with the change to a more upbeat mood in the financial markets. The fund also deployed more capital after a round of successful reorganizations of the REITs sector balance sheets. Exposures were also increased tactically for yield capture to take advantage of the ex-dates of various positions throughout the months

Notwithstanding the bullish mood in equities market, we remained adamant that adequate portfolio insurance continues to be an integral part of the Fund s portfolio construction. We remained hedged through shorts on Index Futures as well as Index Put Option structures. Looking back over the last six months, the hedge book may have appeared to be a drag to the Fund s performance. However, our hedging has been very effective during this period in moderating negative NAV performance in down months. Furthermore, we are still mindful of continued fundamental weakness in the global economy and will continue to fortify the Fund s portfolio defences for the next six months.

Geographical Breakdown Sector Breakdown

Outlook for rest of 2009 The Asian REIT, infrastructure, and utilities sectors have enjoyed a strong rebound during the first half of 2009 with some follow through into the beginning of the third quarter. This rebound in prices has in large part reflected the removal of the Armageddon Scenario from the Global Capital Markets and the ability of our investment universe to demonstrate its ability to Refinance and Recapitalize its collective balance sheet. We enter the second half of 2009 in a more confident position than we have seen in some time, but as always major new challenges present themselves. In our case, the three key issues facing our asset class are the timing and degree of renewed economic growth in Asia, the potential return of severe equity market volatility and the renewal of substantial participation in our asset class from global investment funds.

The renewal and sustainability of Asian economic growth primarily affects our asset class as a prime driver of an upward turn in the commercial property rental cycle which in turn drives higher capital values. As discussed earlier, revaluation concern is the final fundamental issue facing our market. This is particularly acute in the prime office market where rentals and values have shown substantial cyclicality over the last 10 years. In our view, a return to sustainable economic growth in Asia is likely over the next 18 months and should generate sufficient tenant demand to begin a new upward cycle in rentals. If our view holds, then both top line rental income performance for our REITs and current asset valuations should be sustainable and confirmed by the market as we complete 2009 and move into 2010. Since Asian REITs are trading at approximately 30% discount to NAV seeing off the lingering fear of Revaluation will be positive for our fund performance.

The Asian equity market is driven at the margin by the flow of funds into and out of our market by global equity investors. The Global panic last year post Lehman s resulted in massive withdrawal of liquidity from Asia and the resultant severe drop in prices. Likewise, the return of global investors in late March and May has driven the recovery of prices. This dependence on global investors to set prices at the margin is likely to continue. Therefore, we will continue to see short term volatility in prices driven by events in the global capital markets that may have very little correlation to the fundamental value we see in our investments. Therefore, we will maintain a prudent hedging policy designed to reduce the volatility and correlation with the global equity markets.

The flip side of Asia s dependence on global investor flows is that renewed attention to our asset class from global investors could see a substantial positive rerating of the share prices of our investments. At this juncture, our REIT portfolio is still trading at a spread of approximately 600 bps above the Singapore Risk Free Rate even after the Second Quarter rebound in prices. The historical norm for REITs spreads in 250 300 bps above the Risk Free Rate. Renewed global investor interest in our sector potentially driven by a confirmation of economic growth in the region could easily drive up share prices for our REITs by 25 50%. We will remain vigilant for such a renewal of investor flows and position the fund accordingly. As we wait for any renewed flow of investor funds to our market, we are still generating a strong long book of portfolio yields of approximately 9-10% primarily from retail REITs and infrastructure which is highly sustainable in our view. On the back of this, and with judicious use of leverage and active trading around dividend ex dates, we are confident of delivering on our dividend guidance for the second half of 2009.

ARA Strategic Capital June 2009

Post Period End Event The Matrix Asian Property Income Fund moved its holdings from the B Shares of the ARA Asian Asset Income Fund into the new sterling hedged D Shares of the Fund on 1st October 2009. From this date, investors in the Sterling shares of the Matrix Asian Property Income Fund should have their holdings once again hedged against movements in the US dollar/sterling exchange rate.

MATRIX BASTION FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net GBP Asset Value Investments British Virgin Islands 137,386 Gottex Market Neutral Plus Funds SPC GBP Non Levered Portfolio 13,324,313 51.88% 101,356 Gottex Value Added Fund Ltd. Market Neutral Class F 11,992,434 46.69%

Total Financial assets at fair value through profit or loss 25,316,747 98.58%

Other assets in excess of liabilities 365,868 1.42%

Net Assets Attributable to Holders of Redeemable Shares 25,682,615 100.00%

MATRIX BASTION FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net GBP Asset Value

Investments British Virgin Islands 137,386 Gottex Market Neutral Plus Funds SPC GBP Non Levered Portfolio 11,268,409 46.10% 101,356 Gottex Value Added Fund Ltd. Market Neutral Class F 12,747,595 52.15%

Total Financial assets at fair value through profit or loss 24,016,004 98.25%

Other assets in excess of liabilities 427,441 1.75%

Net Assets Attributable to Holders of Redeemable Shares 24,443,445 100.00%

MATRIX CONSERVATIVE APPROACH STRATEGY FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009 Holding Securities Fair Value % of Net Asset US$ Value Bermuda 23,130 Cura Fixed Income Arbitrage Fund Ltd 3 464,205 9.53% 1 New Generation Turnaround Fund (Bermuda) LP* 1 046,923 2.88% 4 511,128 12.41%

British Virgin Islands 8,065 Bennelong Asia Pacific Multistrategy Equity Fund Class E USD 910,645 2.51% 1,064 Hard Assets 2X Fund Ltd. Class B Series 6 1,086,904 2.99% 5,351 Winton Futures Fund Ltd. Lead Series 812,955 2.24% 2,810,504 7.73% Cayman Islands 1,306 Agamas Continuem Fund B 2008 2 597,390 1.64% 261 Agamas Continuem Fund B 2008 3 123,114 0.34% 1,783 Amber Fund (Cayman) Ltd. Class R-3 Series 1 170,267 0.47% 74 Aslan Capital Offshore Fund Ltd- Class B Series 04/2008 684,178 1.88% Bear Stearns High Grade Structured Credit Strategies Enhanced 3,166 Leverage (Overseas) Ltd. 633,168 1.74% 13,500 Blue Mountain Credit Alternatives Fund, Ltd. -Class Q -Series 08/2008 1,404,984 3.87% Brigade Leveraged Capital Structure Offshore Ltd. Class A Sub Class 1 1,511 Series 2008-08 1,542,288 4.24% 1,000 Capstone Vol (Offshore) Ltd. Class B Series 0508 920,827 2.53% 1,272 Ferox Fund Ltd. Class D1 USD Non New Issues 210,266 0.58% 6,198 Finisterre Global Opportunity Fund Class B-2 Series 13 1,176,538 3.24% 1,436 Inflective Convertible Opportunity Fund 1 Ltd. Class A Series 6 1,454,217 4.00% 11,839 Libra Europe Fund Ltd. USD Class 1,515,395 4.17% 6,478 Paulson Advantage Plus Limited Class A 3,031,592 8.34% 3,739 TCS Capital International Ltd., Class D Series 1 194,665 0.54% 81.23 Third Point Offshore Fund Ltd. Class S Series 1 - Sidepocket 7,439 0.02% 10,000 Third Wave Global Macro Offshore Fund Ltd. 02-08 741,121 2.04% 4,000 Third Wave Global Macro Offshore Fund Ltd. 05-08 298,782 0.82% 4,016 TT Mid Cap Europe Long Short Fund Ltd. Class B USD 757,419 2.08% 3,000 Vicis Capital Fund (International) Class A Series 310 3,088,544 8.50% 588 Wexford Offshore Catalyst Fund Ltd. 955,708 2.63% 1,500 Wolverine Convertible Arbitrage Fund Ltd. Class B Series 208 DM 1,445,874 3.98% 1,000 Wolverine Convertible Arbitrage Fund Ltd. Class B Series 308 DM 961,618 2.65% 21,915,393 60.31% Ireland 10,731 MKP Opportunity Offshore Ltd. Class A Series B 2008 2,507,958 6.90% 2,507,958 6.90%

Total Financial assets at fair value through profit or loss 31,744,983 87.36%

Unrealised loss on forward currency contracts (51,606) (0.14%) Total Financial liabilities at fair value through profit or loss ( 51,606) (0.14%)

Other Assets in excess of liabilities 4,645,667 12.78%

Net Assets Attributable to Holders of Redeemable Shares 36,339,044 100.00% * Represents an investment in a partnership structure

Forward Currency Contracts, Open as at 30 June 2009

Currency Settle Unrealised Currency Amount Currency Amount Market Value Bought Bought Sold Sold USD Date Gain/(Loss) GBP 16,200,000 USD 26,731,106 26,679,500 31/07/2009 (51,606)

Total (51,606)

The Counterparty for the above Forward Contract is Caceis Bank Luxembourg

MATRIX CONSERVATIVE APPROACH STRATEGY FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008 Holding Securities Fair Value % of Net US$ Asset Value

Bermuda 1,362 Concordia Capital Class H 1,490,579 3.56% 10,000 Cura Fixed Income Arbitrage Fund Ltd. 30 1,147,406 2.74% 20,000 Cura Fixed Income Arbitrage Fund Ltd. 31 2,113,271 5.05% 1 New Generation Turnaround Fund (Bermuda) LP* 792,200 1.90% 5,543,456 13.25%

British Virgin Islands 8,065 Bennelong Asia Pacific Multistrategy Equity Fund Class E USD 903,468 2.16% 1,345 Hard Assets 2X Fund Ltd. Class B Series 6 1,196,358 2.86% 1,045 Winton Futures Fund Ltd. Lead Series 766,478 1.83% 2,866,304 6.85%

Cayman Islands 2,500 Agamas Continuem Fund B 2008 2 1,159,452 2.77% 500 Agamas Continuem Fund B 2008 3 238,948 0.57% 2,683 Amber Fund (Cayman) Ltd. Class R-3 Series 1 291,507 0.70% 100 Aslan Capital Offshore Fund Ltd- Class B Series 04/2008 1,079,405 2.58% 10,542 Atticus European Ltd.Class 1-R 913,419 2.18% 2,401 Atticus European Ltd. Class M-I-R Series 04-07 152,776 0.37% 3,166 Bear Stearns High Grade Structured Credit Strategies Enhanced Leverage (Overseas) Ltd. 619,238 1.48% 15,000 Blue Mountain Credit Alternatives Fund, Ltd. -Class Q -Series 08/2008 1,313,274 3.14% 1,500 Brigade Leveraged Capital Structure Offshore Ltd. Class A Sub Class 1 Series 2008-08 1,217,683 2.91% 1,000 Capstone Vol (Offshore) Ltd. Class B Series 0508 863,547 2.06% 3,415 Ferox Fund Ltd. Class D1 USD Non New Issues 267,569 0.64% 10,000 Finisterre Global Opportunity Fund Class B-2 Series 13 854,138 2.04% 973 Good Hope International Ltd. -Class A2 1,072,311 2.56% 1,228 III Relative Value/Macro Fund Ltd. Class A 676,620 1.62% 1,436 Inflective Convertible Opportunity Fund 1 Ltd. Class A Series 6 1,424,881 3.41% 11,839 Libra Europe Fund Ltd. USD Class 1,481,823 3.54% 9,757 Paulson Advantage Plus Limited Class A 4,077,024 9.74% 19,299 TCS Capital International Ltd., Class B Series 1 1,480,169 3.54% 3,739 TCS Capital International Ltd., Class D Series 1 237,989 0.57% 170 Third Point Offshore Fund Ltd. Class S Series 1 - Sidepocket 11,866 0.03% 10,000 Third Wave Global Macro Offshore Fund Ltd. 02-08 835,400 2.00% 4,000 Third Wave Global Macro Offshore Fund Ltd. 05-08 336,800 0.80% 4,016 TT Mid Cap Europe Long Short Fund Ltd. Class B USD 749,908 1.79% 3,000 Vicis Capital Fund (International) Class A Series 310 3,325,320 7.95% 588 Wexford Offshore Catalyst Fund Ltd. 836,074 2.00% 1,500 Wolverine Convertible Arbitrage Fund Ltd. Class B Series 208 DM 1,137,740 2.72% 1,000 Wolverine Convertible Arbitrage Fund Ltd. Class B Series 308 DM 756,680 1.81% 27,411,561 65.52% * Represents an investment in a partnership structure

Holding Securities Fair Value % of Net USD Asset Value

Ireland 25,000 MKP Opportunity Offshore Ltd. Class A Series B 2008 2,769,542 6.62% 5,000 MKP Opportunity Offshore Ltd. Class A Series C 2008 545,986 1.31% 3,315,528 7.93%

Total Financial assets at fair value through profit or loss 39,136,849 93.55%

Unrealised loss on forward currency contracts (742,782) (1.78)%

Total Financial liabilities at fair value through profit or loss (742,782) (1.78) %

Other assets in excess of liabilities 3,443,551 8.23%

Net Assets Attributable to Holders of Redeemable Shares 41,837,618 100.00%

Forward Currency Contracts, Open as at 31 December 2008

Caceis Bank Luxembourg Currency Currency Amount Currency Amount Market Value Settle Unrealised Bought Bought Sold Sold USD Date Gain/(Loss) GBP 27,400,000 USD 40,091,680 39,348,898 30/01/09 (742,782)

Total (742,782)

The counterparty for the above forward contract CACEIS Bank Luxembourg.

MATRIX HORIZON FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net GBP Asset Value

253,978 Collingham Investment Fund - Class J Shares 25,636,340 65.87% 63,252 Collingham Invest FD- Designated Invest SHS Series 11/08 GBP 4,013,731 10.31% 11,825 Collingham Invest FD- Designated Invest SHS Series 10/08 GBP 848,360 2.18% 86,063 Collingham Invest FD- Designated Invest SHS Series 12/08 GBP 8,137,929 20.91%

Total Financial assets at fair value through profit or loss 38,636,360 99.28%

Other assets in excess of liabilities 280,407 0.72%

Net Assets Attributable to Holders of Redeemable Shares 38,916,767 100.00%

MATRIX HORIZON FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net GBP Asset Value

423,296 Collingham Investment Fund - Class J Shares 42,595,225 71.27% 63,252 Collingham Invest FD- Designated Invest SHS Series 11/08 GBP 4,054,068 6.78% 16,457 Collingham Invest FD- Designated Invest SHS Series 10/08 GBP 1,298,989 2.17% 99,303 Collingham Invest FD- Designated Invest SHS Series 12/08 GBP 9,233,732 15.45%

Total Financial assets at fair value through profit or loss 57,182,014 95.67%

Other assets in excess of liabilities 2,588,329 4.33%

Net Assets Attributable to Holders of Redeemable Shares 59,770,343 100.00%

MATRIX NEW HORIZON FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net USD Asset Value

2,629.35 Brevan Howard Fund Ltd 816,769 6.18% 1,238.95 King Street Capital 518,330 3.92% 6,881.92 Comac Global Macro 985,929 7.46% 2,162.39 Paulson Advantage Ltd 742,780 5.62% 382.94 Roy G Niederhoffer 504,433 3.82% 500.00 Ionic Capital Int Ltd 487,487 3.69% 500.00 Gruss Global Investors 512,426 3.88% 5,000.00 Finisterre Sovereign 510,116 3.86% 500.00 Claren Road Credit Ltd 529,751 4.01% 17.85 King Street Capital 1,780 0.01% 500.00 JCAM Global Fund Ltd 511,545 3.87%

6,121,346 46.33%

Unrealised gain on Forward Foreign Exchange 124 434 0.94%

Total Financial assets at fair value through profit or loss 6,245,780 47.27%

Other assets in excess of liabilities 6,966,642 52.73%

Net Assets Attributable to Holders of Redeemable Shares 13,212,422 100.00%

Forward Foreign Exchange Contracts at 30 June 2009

Currency Currency Amount Currency Amount Market Value Settle Unrealised Bought Bought Sold Sold USD Date Gain/(Loss) GBP 7,000,000 USD 11,310,250 11,528,179 02/07/2009 217,929 GBP 7,000,000 USD 11,623,539 11,528,179 04/08/2009 (95,360) USD 1,000,000 GBP 998,135 1,000,000 02/07/2009 1,865 Total 124,434

The counterparty for the above forward contracts is Caceis Bank Luxembourg

MATRIX EVENT DRIVEN FUND (Formerly MATRIX MAX FUND) SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net GBP Asset Value

Bahamas 8.0307 Cerberus International Ltd. Class A 2,756,809 6.98% 1 500.00 JCAM GLOBAL FUND LTD -E- S.2 06/09 931,841 2.36% 3,688,650 9.34% Bermuda 194.07 Maxam Absolute Return Fund Ltd. - 0.00% 914.95 Maxam Eurekahdg Index Emerging Market 284,728 0.72% 24.61 SageCrest Ltd. Series A - 0.00% 2.33 SageCrest Ltd. Series B - 0.00% 1.65 SageCrest Ltd. Series C - 0.00% 2.61 SageCrest Ltd. Series E - 0.00% 1.62 SageCrest Ltd. Series F 0.00% 31.64 Highland Crus II -D- S.12 in Liquidation 128,297 0.32% 6.75 Highland Crus II -D- S.06 in Liquidation 26,447 0.07% 14.91 Highland Crus II -D- S.09 in Liquidation 60,297 0.15% 72.17 Highland Crus II -D- S.06A in Liquidation 288,106 0.73% 87.44 Highland Crus II -E- S.1 in Liquidation 355,604 0.90% 13.86 Highland Crus II -D- S.11 in Liquidation 54,765 0.14% 1,198,244 3.03%

British Virgin Islands 67.00 AG Super Fund International Ltd. Class GG Series 1 33,764 0.09% 82.41 AG Super Fund International Ltd. Class GG Series 2 40,470 0.10% 66.82 AG Super Fund International Ltd. Class GG Series 3 32,173 0.08% 106,407 0.27%

Cayman Islands 14,166.53 Cevian Capital II Ltd. USD Class C1 Rest July' 06 542,031 1.37% 14,166.53 Cevian K II Ltd. Class C1 Series Oct 07 545,489 1.38% 2 324.37 D.B. Zwirm Special Opportunities Fund Class B 1,036,880 2.63% 1 500.00 Gruss Global Investors -C- S.05/09 RES 933,447 2.36% 18,978.35 Hermitage Global Class B USD 876,846 2.22% 345.66 Hermitage Global Class B Special Sit 12,704 0.03% 2 519.78 Icahn Fund Ltd. Class B Series 1 1,777,696 4.50% 800.00 Icahn Fund Ltd. Class B Series 3 369,736 0.94% 500.00 Icahn Fund Ltd. Class B Series 5 230,669 0.58% 400.00 Icahn Fund Ltd. Class B Series 6 178,526 0.45% 250.00 Icahn Fund Ltd. Class B Series 7 109,390 0.28% 500.00 Icahn Fund Ltd. Class B Series 11 223,556 0.57% 500.00 Icahn Fund Ltd. Class B Series 14 214,402 0.54% 500.00 Icahn Fund Ltd. Class B Series 15 228,383 0.58% 750.00 Icahn Fund Ltd. Class B Series 17 340,443 0.86% 17,689.76 King St Capital Class A Series 2 4,493,779 11.38% 564.89 King St Capital Class S Series 4 38,561 0.10% 18.52 King St Capital Class S Series 7 1,091 0.00% 1 064.58 King St Capital Class S Series 9 69,715 0.18%

Holding Securities Fair Value % of Net GBP Asset Value

Cayman Islands 21.87 King St Capital Class S Series 10 639 0.00% 15.97 King St Capital Class S Series 11 932 0.00% 256.98 King St Capital Class S Series 13 15,564 0.04% 24,818.44 Marathon Overseas Fund Ltd. Class B2 2,807,456 7.11% 8 448.23 Marathon Special Opportunity Fund Ltd Class E1 2,485,178 6.29% 91.59 Marathon Special Opportunity Fund Ltd Sidepocket 2 459,698 1.16% 45.31 Marathon Special Opportunity Fund Ltd Sidepocket 4 222,070 0.56% 21.28 Marathon Special Opportunity Fund Ltd Sidepocket 6 113,864 0.29% 115.00 Marathon Special Opportunity Fund Ltd -A- S. 31/03/09 LIQ 18,094 0.05% 303.00 Marathon Special Opportunity Fund Ltd -D- 63,155 0.16% 15,974.17 Paulson Advantage Ltd.- Class A 3,331,826 8.44% 1 204.01 RAB Special Situations Fund Limited, USD Class 719,417 1.82% 2 270.70 Scoggin Worldwide Investors Ltd. Class R Series 107 1,491,993 3.78% 466.87 Scoggin Worldwide Investors Ltd. Class R Series 1107 273,587 0.69% 466.87 Scoggin Worldwide Investors Ltd. Class R Series 308 276,426 0.70% 280.12 Scoggin Worldwide Investors Ltd. Class R Series 807 166,703 0.42% 439.51 Scoggin Worldwide Investors Ltd.Res 180,683 0.46% 40,601.59 The Childrens Investment Fund Class C2 March 06 2,202,553 5.58% 7,053,184 68.51%

Netherland 7,267 Global Opportunities Fund 164,006 0.42%

164,006 0.42% Forward Foreign Exchange Contracts GBP/ USD 02/07/09 546,326 1.38% GBP/ USD 04/08/09 (277,514) (0.70%) 268,812 0.68%

Total Financial assets at fair value through profit or loss 32,479,303 82.26%

Total Financial assets at fair value through profit or loss

Other assets in excess of liabilities 7,006,249 17.74%

Net Assets Attributable to Holders of Redeemable Shares 39,485,552 100.00%

Forward Foreign Exchange Contracts at 30 June 2009 Currency Currency Amount Currency Amount Market Value Settle Unrealised Bought Bought Sold Sold GBP Date Gain/(Loss) GBP 25,000,000 USD 24,527,399 25,000,000 02/07/2009 472,601 GBP 3,900,000 USD 3,826,275 3,900,000 02/07/2009 73,725 GBP 29,000,000 USD 29,239,082 28,999,205 04/08/2009 (239,878) GBP 4,459,875 USD 4,587,511 4,549,875) 04/08/2009 (37,636) Total 268,812

The counterparty for the above forward currency contracts is Caceis Bank Luxembourg

MATRIX EVENT DRIVEN FUND (Formerly MATRIX MAX FUND) SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net GBP Asset Value Investments

Bahamas 8 Cerberus International Ltd. Class A 3,101,874 6.31% 3,101,874 6.31%

Bermuda 194 Maxam Absolute Return Fund Ltd. - 0.00% 25 SageCrest Ltd. Series A - 0.00% 2 SageCrest Ltd. Series B - 0.00% 2 SageCrest Ltd. Series C - 0.00% 3 SageCrest Ltd. Series E - 0.00% 2 SageCrest Ltd. Series F - 0.00% - 0.00%

British Virgin Islands 500 AG Super Fund International Ltd. Class GG Series 1 293,837 0.60% 615 AG Super Fund International Ltd. Class GG Series 2 352,241 0.72% 500 AG Super Fund International Ltd. Class GG Series 3 280,745 0.57% 7,907 The Andromeda Global Credit Fund Ltd. Class 2 Series B Non 1,011,178 2.06% Voting 1,938,001 3.95%

Cayman Islands 132 Arience Capital Offshore Fund Ltd. Series 13 Class E - 2/3 63,011 0.13% 300 Arience Capital Offshore Fund Ltd. Series 14 Class E 2/4 150,877 0.31% 203,142 Artradis Barracuda (Non -U.S.Feeder) Fund - Voting Shares 3,236,624 6.59% 305 Blemheim Class A-1 1,794,395 3.65% 54,167 Cevian Capital II Ltd. USD Class C1 Series Jan 08 2,252,219 4.59% 14,167 Cevian Capital II Ltd. USD Class C1 Series Oct 07 586,088 1.19% 14,167 Cevian Capital II Ltd. USD Class C1 Series Jul 07 589,831 1.20% 1,009 Clovis Capital Partners (Cayman) Ltd. Class B Series 1A 1,192,157 2.43% 500 Clovis Capital Partners (Cayman) Ltd. Class B Series 5A 270,086 0.55% 300 Clovis Capital Partners (Cayman) Ltd. Class B Series 6A 167,195 0.34% 915 Emerging Markets Investible Index Segregated Portfolio 568,954 1.16% 19,324 Hermitage Global Class B USD 1,022,394 2.08% 2,520 Icahn Fund Ltd. Class B Series 1 1,725,734 3.51% 800 Icahn Fund Ltd. Class B Series 3 358,926 0.73% 500 Icahn Fund Ltd. Class B Series 5 223,925 0.46% 400 Icahn Fund Ltd. Class B Series 6 173,307 0.35% 250 Icahn Fund Ltd. Class B Series 7 106,192 0.22% 500 Icahn Fund Ltd. Class B Series 11 217,020 0.44% 500 Icahn Fund Ltd. Class B Series 14 208,133 0.42% 500 Icahn Fund Ltd. Class B Series 15 221,706 0.46% 750 Icahn Fund Ltd. Class B Series 17 329,146 0.67%

SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net GBP Asset Value Cayman Islands (continued)

21,483 King St Capital Class A Series 2 5,738,999 11.68% 19 King St Capital Class S Series 7 1,259 0.00% 1,065 King St Capital Class S Series 9 80,424 0.16% 22 King St Capital Class S Series 10 737 0.00% 16 King St Capital Class S Series 11 1,076 0.00% 449 King St Capital Class S Series 12 40,742 0.08% 24,818 Marathon Overseas Fund Ltd. Class B2 3,146,780 6.41% 9,706 Marathon Special Opportunity Fund Ltd Class E1 3,013,173 6.13% 92 Marathon Special Opportunity Fund Ltd Sidepocket 2 551,882 1.12% 45 Marathon Special Opportunity Fund Ltd Sidepocket 4 290,843 0.59% 21 Marathon Special Opportunity Fund Ltd Sidepocket 6 148,078 0.30% 27,306 Paulson Advantage Ltd.- Class A 6,038,167 12.29% 1,204 RAB Special Situations Fund Limited, USD Class 852,449 1.74% 6,205 Scoggin Worldwide Investors Ltd. Class R Series 107 3,638,488 7.41% 500 Scoggin Worldwide Investors Ltd. Class R Series 1107 261,488 0.53% 500 Scoggin Worldwide Investors Ltd. Class R Series 308 264,202 0.54% 300 Scoggin Worldwide Investors Ltd. Class R Series 807 159,332 0.32% 40,602 The Childrens Investment Fund Class C2 March 06 2,705,170 5.51% 2,324 D.B. Zwirm Special Opportunities Fund Limited 1,385,611 2.82% 43,776,820 89.11%

Netherlands 7,267 Global Opportunities Fund 1,623,859 3.30% 1,623,859 3.30%

Total Financial assets at fair value through profit or loss 50,440,554 102.67%

Liabilities in excess of other assets (1,313,169) (2.67) %

Net Assets Attributable to Holders of Redeemable Shares 49,127,385 100.00%

MATRIX ASSET BASED FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net GBP Asset Value

Investments

336,734 Gottex Matrix Asset Focused Fund Ltd. GBP Class 6,081,416 92.22%

Total Financial assets at fair value through profit or loss 6,081,416 92.22%

Other assets in excess of liabilities 513,103 7.78%

Net Assets Attributable to Holders of Redeemable Shares 6,594,519 100.00%

MATRIX ASSET BASED FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net GBP Asset Value

Investments

336,734 Gottex Matrix Asset Focused Fund Ltd. GBP Class 8,963,859 94.14%

Total Financial assets at fair value through profit or loss 8,963,859 94.14%

Other assets in excess of liabilities 558,464 5.86%

Net Assets Attributable to Holders of Redeemable Shares 9,522,323 100.00%

MATRIX ASSET BASED 2 FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net USD Asset Value

Investments 1,813,408 Stillwater Matrix Segregated Portfolio Fund MAT0807 162,068,660 99.45% Matrix Asset Based 2 Sidepocket holding 184,790 Stillwater Matrix Segregated Portfolio Fund MAT0807 SP 5,237,900 3.21%

Total Financial assets at fair value through profit or loss 167,306,560 102.67%

Liabilities in excess of other assets (4,348,792) (2.67) %

Net Assets Attributable to Holders of Redeemable 162,957,768 100.00% Shares

MATRIX ASSET BASED 2 FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net USD Asset Value

Investments 1,813,408 Stillwater Matrix Segregated Portfolio Fund MAT0807 181,658,166 100.60% Matrix Asset Based 2 Sidepocket holding 184,790 Stillwater Matrix Segregated Portfolio Fund MAT0807 SP 5,237,901 2.90%

Total Financial assets at fair value through profit or loss 186,896,067 103.50%

Minority Interest (2,449,788) (1.36) %

Liabilities in excess of other assets (3,863,104) (2.14) %

Net Assets Attributable to Holders of Redeemable Shares 180,583,175 100.00%

MATRIX ASIAN PROPERTY INCOME FUND SCHEDULE OF INVESTMENTS AS AT 30 JUNE 2009

Holding Securities Fair Value % of Net USD Asset Value

291,976 ARA Asian Asset Income Fund Class B 13,154,117 135.15%

Total Financial assets at fair value through profit or loss 13,154,117 135.17%

Liabilities in excess of other assets (3,421,175) (35.15%)

Net Assets Attributable to Holders of Redeemable Shares 9,732,942 100.00%

MATRIX ASIAN PROPERTY INCOME FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2008

Holding Securities Fair Value % of Net USD Asset Value

Investments

291,976 ARA Asian Asset Income Fund Class B 11,323,863 135.54%

Total Financial assets at fair value through profit or loss 11,323,863 135.54%

Liabilities in excess of other assets (2,969,318) (35.54) %

Net Assets Attributable to Holders of Redeemable Shares 8,354,545 100.00%

60 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009

STATEMENT OF NET ASSETS ATTRIBUTABLE TO REDEEMABLE PARTICIPATING SHAREHOLDERS AS AT 30 JUNE 2009

Matrix Matrix Conservative Conservative Matrix Matrix Approach Approach Matrix Matrix *Matrix TOTAL TOTAL Bastion Fund Bastion Fund Strategy Fund Strategy Fund Horizon Fund Horizon Fund New Horizon Fund as at 30 as at 31 as at 30 as at 31 as at 30 as at 31 as at 30 as at 31 as at 30 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09 Note GBP GBP GBP GBP US$ US$ GBP GBP GBP ASSETS Bank balances 4 22 056 894 18 184 040 422 595 587 328 6 425 259 3 212 117 2 274 121 7 504 830 6 750 553 Dividend income receivable 673 703 812 512 ------Due from shareholders 115 482 60 813 755 - 3 098 - - - 110 882 Financial assets at fair value through profit and loss 2 237 612 535 302 671 147 25 316 747 24 016 004 31 744 983 39 136 849 38 636 360 57 182 014 6 245 780 Receivable from sale of investments 4 987 366 13 461 973 - 2 500 000 96 465 1 751 968 2 847 343 2 823 020 21 867 Prepaid investment purchases ------Other assets 455 527 3 857 063 - 823 - 8 761 1 867 2 573 121 455 TOTAL ASSETS 265 901 507 339 047 548 25 740 097 27 104 155 38 269 805 44 109 695 43 759 691 67 512 437 13 250 537

LIABILITIES Deferred compensation - 2 793 640 ------Short Term Loan 16 5 382 253 6 032 691 - - - 718 701 - - - Bank overdraft 4 331 316 3 032 099 - - 545 638 - - - - Subscriptions received in advance 331 404 1 451 140 - 10 541 - - - 59 795 - Payable on securities sold 15 604 ------Due to shareholders 7 776 793 18 313 279 - 2 597 765 1 102 970 549 297 4 699 388 7 495 565 3 020 Distributions payable 1 343 435 812 512 ------Financial liabilities at fair value through profit or loss 2 31 335 516 753 - - 51 606 742 782 - - - Management fees payable 3 447 118 521 533 23 310 23 370 163 037 198 597 83 384 129 526 19 449 Performance fee payable 3 98 997 ------Sundry payables and accrued expenses 7 458 263 455 684 34 172 29 034 67 510 62 700 60 152 57 208 15 646 LIABILITIES (EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES) 16 216 518 33 929 331 57 482 2 660 710 1 930 761 2 272 077 4 842 924 7 742 094 38 115

Adjustment for Minority Interest - (1 704 318) ------

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES 249 684 989 303 413 899 25 682 615 24 443 445 36 339 044 41 837 618 38 916 767 59 770 343 13 212 422

The notes on page 71 to 92 form a part of these Financial Statements

MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009

STATEMENT OF NET ASSETS ATTRIBUTABLE TO REDEEMABLE PARTICIPATING SHAREHOLDERS AS AT 30 JUNE 2009 (CONTINUED) Matrix Matrix Conservative Conservative Matrix Matrix Approach Approach Matrix Matrix *Matrix Bastion Fund Bastion Fund Strategy Fund Strategy Fund Horizon Fund Horizon Fund New Horizon Fund as at 30 as at 31 as at 30 as at 31 as at 30 as at 31 as at 30 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09

Shares in Issue - Retail GBP Class 10 254 496 10 254 253 5 891 105 7 081 960 20 834 315 31 195 089 6 251 260 Shares in Issue - Institutional GBP Class 12 576 176 12 551 431 9 235 706 14 431 238 10 324 602 16 439 954 1 743 761 Shares in Issue - Privet GBP Class - - 458 726 458 726 - - - Shares in Issue - Retail USD Class - - 463 012 551 443 - - - Shares in Issue - USD Class ------Shares in Issue - Institutional USD Class - - 853 163 870 281 - - - Shares in Issue - Distributor GBP Class 1 258 901 1 259 215 1 585 126 1 716 698 268 403 432 545 - Shares in Issue - Retail Euro Class ------Shares in Issue - Institutional Euro Class ------Shares in Issue - Continuing Retail GBP Class ------Shares in Issue - Continuing Institutional GBP Class ------Shares in Issue - Redeeming Retail GBP Class ------Shares in Issue - Redeeming Institutional GBP Class ------Shares in Issue - GBP Sidepocket ------Shares in Issue - USD Sidepocket ------Shares in Issue - Euro Sidepocket ------

Net Asset Value Per Share - Retail GBP Class 1.06 1.01 1.24 1.19 1.23 1.24 1.65 Net Asset Value Per Share - Institutional GBP Class 1.10 1.04 1.28 1.22 1.26 1.26 1.65 Net Asset Value Per Share - Privet GBP Class - - 1.24 1.18 - - - Net Asset Value Per Share - Retail USD Class - - 1.19 1.13 - - - Net Asset Value Per Share - USD Class ------Net Asset Value Per Share - Institutional USD Class - - 1.22 1.16 - - - Net Asset Value Per Share - Distributor GBP Class 0.83 0.79 0.86 0.81 0.83 0.83 - Net Asset Value Per Share - Retail Euro Class ------Net Asset Value Per Share - Institutional Euro Class ------Net Asset Value Per Share - Continuing Retail GBP Class ------Net Asset Value Per Share - Continuing Institutional GBP Class ------Net Asset Value Per Share - Redeeming Retail GBP Class ------Net Asset Value Per Share - Redeeming Institutional GBP Class ------Net Asset Value Per Share - GBP Sidepocket ------Net Asset Value Per Share - USD Sidepocket ------Net Asset Value Per Share - Euro Sidepocket ------

The notes on page 71 to 92 form a part of these Financial Statements

62 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009

STATEMENT OF NET ASSETS ATTRIBUTABLE TO REDEEMABLE PARTICIPATING SHAREHOLDERS AS AT 30 JUNE 2009 (CONTINUED)

Matrix Matrix Asset Based Matrix Matrix ***Matrix ****Matrix Matrix Matrix Matrix Asset Based Fund 2 Asian Property Asian Property **Matrix Emerging Markets Event Driven Fund Max Fund Asset Based Fund Asset Based Fund Fund 2 (consolidated)(a) Income Fund Income Fund Orbit Fund Index Fund as at 30 as at 31 as at 30 as at 31 as at 30 as at 31 as at 30 as at 31 as at 31 as at 31 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09 Dec-08 Jun-09 Dec-08 Dec-08 Dec-08 Note GBP GBP GBP GBP US$ US$ US$ US$ GBP US$ ASSETS Bank balances 4 7 832 833 133 593 27 836 66 731 1 103 623 10 271 670 292 091 283 844 31 415 405 350 Dividend income receivable ------1 109 510 1 167 905 - - Due from shareholders 1 964 - - - - 87 412 - - - - Financial assets at fair value through profit and loss 2 32 479 303 50 440 554 6 081 416 8 963 859 167 306 560 182 497 051 13 154 117 11 323 863 - - Receivable from sale of investments 44 548 2 709 688 2 015 034 2 190 506 - - - - 350 000 2 400 338 Prepaid investment purchases ------Other assets 295 714 - 3 536 5 531 29 421 5 490 179 24 851 32 375 - - TOTAL ASSETS 40 654 362 53 283 835 8 127 822 11 226 627 168 439 604 198 346 312 14 580 569 12 807 987 381 415 2 805 688

LIABILITIES Deferred compensation - - - - - 4 015 581 - - - - Short Term Loan - - - - 5 240 798 4 790 413 3 623 141 3 162 283 - - Bank overdraft 4 - 33 282 - 20 962 - 4 280 373 - - - - Subscriptions received in advance - - - - - 1 967 700 - 17 069 - - Payable on securities sold 15 604 ------Due to shareholders 922 852 3 904 405 1 481 801 1 630 694 - - - - 369 855 2 778 279 Distributions payable ------1 109 510 1 167 905 - - Financial liabilities at fair value through profit or loss 2 - 158 218 ------Management fees payable 3 137 621 - 12 279 16 046 41 684 51 675 25 413 22 571 840 5 342 Performance fee payable 3 - 60 545 ------Sundry payables and accrued expenses 7 92 733 - 39 223 36 602 199 354 207 607 89 563 83 614 10 720 22 067

LIABILITIES (EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES) 1 168 810 4 156 450 1 533 303 1 704 304 5 481 836 15 313 349 4 847 627 4 453 442 381 415 2 805 688

Adjustment for Minority Interest - - - - - (2 449 788) - - - -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES 39 485 552 49 127 385 6 594 519 9 522 323 162 957 768 180 583 175 9 732 942 8 354 545 - -

The notes on page 71 to 92 form a part of these Financial Statements

63 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009

STATEMENT OF NET ASSETS ATTRIBUTABLE TO REDEEMABLE PARTICIPATING SHAREHOLDERS AS AT 30 JUNE 2009 (CONTINUED)

Shares in Issue - Retail GBP Class - 30 614 248 25 172 734 25 172 734 31 401 518 30 725 851 7 472 649 7 447 884 - - Shares in Issue - Institutional GBP Class - 29 027 186 9 107 481 9 107 481 82 011 067 80 204 284 6 535 530 6 403 023 - - Shares in Issue - Privet GBP Class ------Shares in Issue - Retail USD Class - - - - 11 848 000 4 538 728 - - - - Shares in Issue - USD Class ------2 650 074 2 650 074 - - Shares in Issue - Institutional USD Class - - 532 701 532 701 1 842 485 7 499 987 - - - - Shares in Issue - Distributor GBP Class - 1 557 423 ------Shares in Issue - Retail Euro Class - - - - 948 879 948 878 - - - - Shares in Issue - Institutional Euro Class - - - - 510 745 510 745 - - - - Shares in Issue - Continuing Retail GBP Class 16 061 511 ------Shares in Issue - Continuing Institutional GBP Class 15 470 035 ------Shares in Issue - Redeeming Retail GBP Class 1 733 982 ------Shares in Issue - Redeeming Institutional GBP Class 1 901 512 Shares in Issue - GBP Sidepocket 4 575 413 - - - 10 547 085 10 537 109 - - - - Shares in Issue - USD Sidepocket - - - - 1 151 067 1 167 485 - - - - Shares in Issue - Euro Sidepocket - - - - 111 705 111 705 - - - -

Net Asset Value Per Share - Retail GBP Class - 0.80 0.19 0.31 0.78 1.03 0.37 0.37 - - Net Asset Value Per Share - Institutional GBP Class - 0.81 0.19 0.31 0.79 1.04 0.38 0.37 - - Net Asset Value Per Share - Privet GBP Class ------Net Asset Value Per Share - Retail USD Class - - - - 0.80 0.89 - - - - Net Asset Value Per Share - USD Class - - - - - 0.42 0.37 - - Net Asset Value Per Share - Institutional USD Class - - 0.18 0.25 0.80 0.90 - - - - Net Asset Value Per Share - Distributor GBP Class - 0.70 ------Net Asset Value Per Share - Retail Euro Class - - - - 0.73 0.90 - - - - Net Asset Value Per Share - Institutional Euro Class - - - - 0.73 0.90 - - - - Net Asset Value Per Share - Continuing Retail GBP Class 1.01 ------Net Asset Value Per Share - Continuing Institutional GBP Class 1.01 ------Net Asset Value Per Share - Redeeming Retail GBP Class 0.91 ------Net Asset Value Per Share - Redeeming Institutional GBP Class 0.91 ------Net Asset Value Per Share - GBP Sidepocket 0.94 - - - 0.18 0.21 - - - - Net Asset Value Per Share - USD Sidepocket - - - - 0.18 0.18 - - - - Net Asset Value Per Share - Euro Sidepocket - - - - 0.16 0.16 - - - -

* Matrix New Horizon Fund was launched on 1 April 2009 ** Matrix Orbit Fund was terminated on 30 November 2008 *** Matrix Emerging Markets Index Fund was terminated on 31 December 2008 **** Matrix Event Driven Fund formerly Matrix Max Fund (a) Stated figures are consolidated balances of Matrix Asset Based 2 Fund plus Stillwater Fund.

The notes on page 71 to 92 form a part of these Financial Statements

64 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009

STATEMENT OF OPERATIONS FOR THE PERIOD ENDED 30 JUNE 2009

Matrix Matrix Conservative Conservative Matrix Matrix Approach Approach Matrix Matrix *Matrix TOTAL TOTAL Bastion Fund Bastion Fund Strategy Fund Strategy Fund Horizon Fund Horizon Fund New Horizon Fund 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 2009 2008 2009 2008 2009 2008 2009 2008 2009 Note GBP GBP GBP GBP US$ US$ GBP GBP GBP INCOME Deposit interest 2 653 754 258 933 172 21 541 350 436 102 883 8 506 23 419 3 360 Dividend income 2 894 216 566 775 - - 233 470 15 059 - - - Other net changes in fair value of financial assets and financial liabilities at fair value through profit or loss 6 (10 289 018) 261 506 1 297 180 360 974 6 429 932 (26 581) 206 360 2 663 575 1 566 674 TOTAL INVESTMENT INCOME (8 741 048) 1 087 214 1 297 352 382 515 7 013 838 91 361 214 866 2 686 994 1 570 034

EXPENSES Audit fees 40 097 43 755 4 041 4 670 8 360 16 331 4 328 4 087 6 500 Administration fees 3 209 707 169 796 20 463 17 806 36 463 45 110 37 643 39 563 3 044 Custodian fees 3 33 538 46 825 3 543 3 323 7 060 11 308 4 022 3 838 481 Directors' fees and expenses 3 43 474 28 699 4 106 3 101 5 749 7 542 7 822 7 024 635 Performance Fee 3 - 285 185 ------Management fees 3 864 165 2 097 217 45 853 68 091 299 982 504 750 188 824 325 428 19 449 Other expenses 183 058 204 612 6 274 0 27 526 67 407 14 941 12 996 6 304 TOTAL OPERATING EXPENSES 1 374 039 2 876 089 84 280 96 991 385 140 652 448 257 579 392 936 36 413

NET INCOME (10 115 087) (1 788 875) 1 213 072 285 524 6 628 698 (561 087) (42 713) 2 294 058 1 533 621

FINANCE COSTS Interest Expense ------Distributions to redeemable participating shareholders 2 (738 761) (995 066) ------Adjustment for Minority Interest ------

INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (10 853 848) (2 783 941) 1 213 072 285 524 6 628 698 (561 087) (42 713) 2 294 058 1 533 621

Gains and losses arise solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Operations

The notes on page 71 to 92 form a part of these Financial Statements

65 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2008

STATEMENT OF OPERATIONS FOR THE PERIOD ENDED 30 JUNE 2009 (CONTINUED)

Matrix Matrix Matrix Matrix Matrix Matrix ***Matrix ****Matrix Matrix Asset Based Asset Based Asset Based Asset Based Asian Property Asian Property **Matrix Emerging Markets Event Driven Fund Max Fund Fund Fund Fund 2 Fund 2 Income Fund Income Fund Orbit Fund Index Fund 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 31 Dec 2009 2008 2009 2008 2009 2008 2009 2008 2008 2008 Note GBP GBP GBP GBP US$ US$ US$ US$ GBP US$ INCOME Deposit interest 2 373 219 119 576 17 724 2 339 15 160 43 386 11 026 1 903 17 124 593 Dividend income 2 1 105 - - - - 1 109 510 1 107 949 - - Other net changes in fair value of financial assets and financial liabilities - - - at fair value through profit or loss 6 (789 639) (5 393 187) (2 908 519) (206 706) (22 334 255) 8 454 929 1 394 817 (2 830 989) 57 846 (80 289) TOTAL INVESTMENT INCOME (416 420) (5 272 506) (2 890 795) (204 367) (22 319 095) 8 498 315 2 515 353 (1 721 137) 74 970 (79 696)

EXPENSES Audit fees 5 807 7 767 5 367 4 114 6 229 8 178 6 519 6 952 4 889 4 727 Administration fees 3 31 811 36 546 4 434 20 184 121 511 39 152 10 705 16 069 4 169 1 966 Custodian fees 3 8 273 18 092 3 995 3 393 6 600 7 752 6 200 7 384 3 348 3 000 Directors' fees and expenses 3 6 996 7 119 1 929 3 646 26 088 4 820 1 183 2 680 200 64 Performance Fee 3 - - - - - 565 046 - - - 1 123 Management fees 3 305 933 607 315 10 099 - 105 355 1 464 776 36 216 81 506 5 671 4 209 Other expenses 22 536 42 134 11 185 7 975 102 838 154 136 52 587 35 579 2 133 2 786 TOTAL OPERATING EXPENSES 381 356 718 973 37 009 39 312 368 621 2 243 860 113 410 150 170 20 410 17 875

NET INCOME (797 776) (5 991 479) (2 927 804) (243 679) (22 687 716) 6 254 455 2 401 943 (1 871 307) 54 560 (97 571)

FINANCE COSTS Interest Expense ------Distributions to redeemable participating shareholders 2 ------(1 109 510) (1 975 474) - -

Adjustment for Minority Interest ------

INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (797 776) (5 991 479) (2 927 804) (243 679) (22 687 716) 6 254 455 1 292 433 (3 846 781) 54 560 (97 571)

Gains and losses arise solely from continuing operations. There were no gains or losses other than those dealt with in the Statement of Operations

The notes on page 71 to 92 form a part of these Financial Statements

66 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO REDEEMABLE PARTICIPATING SHAREHOLDERS FOR THE PERIOD ENDED 30 JUNE 2009

Matrix Bastion Fund Matrix Conservative Approach Strategy Fund Total Total GBP US$ Net assets at 1 January 2008 34 193 630 Net assets at 1 January 2008 78 154 003

Decrease in net assets as a result of operations 277 068 Decrease in net assets as a result of operations (561 087)

Shares issued during the period 4 734 126 Shares issued during the period 1 327 824

Shares redeemed during the period -2 463 238 Shares redeemed during the period (5 608 659)

Balance as at 30 June 2008 36 741 586 Balance as at 30 June 2008 73 312 081

Net Assets at 1 January 2009 24 443 445 Net Assets at 1 January 2009 41 837 618

Increase in net assets as a result of operations 1 213 072 Increase in net assets as a result of operations 6 628 698

Shares issued during the period 26 411 Shares issued during the period 125 999

Shares redeemed during the period (313) Shares redeemed during the period (12 253 271)

Balance as at 30 June 2009 25 682 615 Balance as at 30 June 2009 36 339 044

Matrix Horizon Fund Total *Matrix New Horizon Fund Total GBP GBP Net assets at 1 January 2008 80 491 968 Net assets at 1 January 2008 -

Decrease in net assets as a result of operations 2 294 058 Increase in net assets as a result of operations -

Shares issued during the period 18 810 234 Shares issued during the period -

Shares redeemed during the period (7 271 427) Shares redeemed during the period -

Balance as at 30 June 2008 94 324 833 Balance as at 30 June 2008 -

Net Assets at 1 January 2009 59 770 343 Net Assets at 1 January 2009 -

Decrease in net assets as a result of operations (42 713) Decrease in net assets as a result of operations 1 533 621

Shares issued during the period 135 319 Shares issued during the period 11 681 759

Shares redeemed during the period (20 946 182) Shares redeemed during the period (2 958)

Balance as at 30 June 2009 38 916 767 Balance as at 30 June 2009 13 212 422

The notes on page 71 to 92 form a part of these Financial Statements

67 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO REDEEMABLE PARTICIPATING SHAREHOLDERS FOR THE PERIOD ENDED 30 JUNE 2009 (CONTINUED)

Matrix Event Driven Fund (Formally Matrix Max Fund) Total Matrix Asset Based Fund Total GBP GBP Net assets at 1 January 2008 78 372 721 Net assets at 1 January 2008 39 899 760

Decrease in net assets as a result of operations (5 991 479) Decrease in net assets as a result of operations (299 146)

Shares issued during the period 15 029 240 Shares issued during the period 3 515 667

Shares redeemed during the period (9 603 336) Shares redeemed during the period (1 617 311)

Balance as at 30 June 2008 77 807 146 Balance as at 30 June 2008 41 498 970

Net Assets at 1 January 2009 49 127 385 Net Assets at 1 January 2009 9 522 323

Decrease in net assets as a result of operations (797 776) Decrease in net assets as a result of operations (2 927 804)

Shares issued during the period 1 411 786 Shares issued during the period -

Shares redeemed during the period (10 255 843) Shares redeemed during the period -

Balance as at 30 June 2009 39 485 552 Balance as at 30 June 2009 6 594 519

Matrix Asset Based 2 Fund Total Matrix Asian Property Income Fund Total USD USD Net assets at 1 January 2008 40 888 716 Balance as at 1 January 2008 23 464 725

Decrease in net assets as a result of operations 6 254 455 Decrease in net assets as a result of operations (3 846 781)

Shares issued during the period 143 724 218 Shares issued during the period 3 897 354

Shares redeemed during the period (36 134 508) Shares redeemed during the period (262 591)

Balance as at 30 June 2008 154 732 881 Balance as at 30 June 2008 23 252 707

Net Assets at 1 January 2009 180 583 175 Net Assets at 1 January 2009 8 354 545

Decrease in net assets as a result of operations (22 687 716) Increase in net assets as a result of operations 1 292 433

Shares issued during the period 12 167 421 Shares issued during the period 150 780

Shares redeemed during the period (7 105 112) Shares redeemed during the period (64 816)

Balance as at 30 June 2009 162 957 768 Balance as at 30 June 2009 9 732 942

*Matrix New Horizon Fund was launched on 1 April 2009

The notes on page 71 to 92 form a part of these Financial Statements

68 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED

STATEMENT OF CASHFLOWS FOR THE PERIOD ENDED 30 JUNE 2009

Matrix Matrix Conservative Conservative Matrix Matrix Approach Approach Matrix Matrix *Matrix TOTAL TOTAL Bastion Fund Bastion Fund Strategy Fund Strategy Fund Horizon Fund Horizon Fund New Horizon Fund 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 2009 2008 2009 2008 2009 2008 2009 2008 2009 GBP GBP GBP GBP US$ US$ GBP GBP GBP

CASH FLOWS FROM OPERATING ACTIVITIES Purchase of financial assets and settlement of financial liabilities (90 336 620) (149 496 024) - (957 000) (10 642 812) (62 761 446) (72 297 367) (11 255 000) (5 974 856) Proceeds from sale of investments (including realised gains/(losses)) 134 220 956 75 938 826 2 500 000 400 000 25 428 935 63 358 310 91 025 058 380 000 1 152 490 Income received 1 578 965 1 271 511 172 21 541 592 668 137 292 9 212 23 416 3 360 Operating expenses paid (1 370 888) (1 799 898) (81 942) (91 256) (415 890) (589 751) (300 777) (337 421) (1 318)

NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES 44 092 413 (74 085 585) 2 418 230 (626 715) 14 962 902 144 405 18 436 126 (11 189 005) (4 820 324)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on issue of shares 21 343 906 134 766 086 15 115 3 710 795 122 901 1 371 390 75 524 17 288 950 11 570 877 Paid on the redemption of shares (52 290 893) (43 301 005) (2 598 078) (3 463 238) (11 699 598) (8 055 592) (23 742 359) (7 271 427) - Dividend distribution (777 643) (1 169 893) - (17 832) - (95 418) - (29 020) - Increase/(decrease) in short term loans and other debt 128 203 - - - (718 701) - - - -

Net cash inflow from financing activities (31 596 427) 90 295 188 (2 582 963) 229 725 (12 295 398) (6 779 620) (23 666 835) 9 988 503 11 570 877

NET INCREASE IN CASH AND CASH EQUIVALENTS 12 495 986 16 209 603 (164 733) (396 990) 2 667 504 (6 635 215) (5 230 709) (1 200 502) 6 750 553

Cash and cash equivalents at 1 January 9 719 872 9 951 273 587 328 1 013 413 3 212 117 11 826 853 7 504 830 1 829 734 -

Notional exchange adjustment (see note 13) (490 280) (7 686) ------

Cash and cash equivalents 30 June 2009 21 725 578 26 153 190 422 595 616 423 5 879 621 5 191 638 2 274 121 629 232 6 750 553

The notes on page 71 to 92 form a part of these Financial Statements

69 MATRIX ALTERNATIVE INVESTMENT STRATEGIES FUND LIMITED

STATEMENT OF CASHFLOWS FOR THE PERIOD ENDED 30 JUNE 2009 (CONTINUED)

Matrix Matrix Matrix Matrix Matrix Matrix ***Matrix Matrix Matrix Asset Based Asset Based Asset Based Asset Based Asian Property Asian Property **Matrix Emerging Markets Event Driven Fund Max Fund Fund Fund Fund 2 Fund 2 Income Fund Income Fund Orbit Fund Index Fund 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 2009 2008 2009 2008 2009 2008 2009 2008 2008 2008 GBP GBP GBP GBP US$ US$ US$ US$ GBP US$

CASH FLOWS FROM OPERATING ACTIVITIES Purchase of financial assets and settlement of financial liabilities (4 977 941) (10 410 774) - (1 384 557) (2 744 749) (175 491 822) (427 914) (3 276 073) (2 070 000) (3 490 000) Proceeds from sale of investments (including realised gains/(losses)) 24 574 800 7 241 350 149 396 - - 71 067 610 - 8 564 190 000 22 794 Income received 354 914 113 073 19 720 2 339 17 990 43 386 1 178 932 1 990 649 17 124 593 Operating expenses paid (391 677) (716 197) (38 155) (86 363) (316 052) (353 452) (104 619) (129 834) (13 438) (29 228)

NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES 19 560 096 (3 772 548) 130 961 (1 468 581) (3 042 811) (104 734 278) 646 399 (1 406 694) (1 876 314) (3 495 841)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on issue of shares 1 409 821 15 483 337 - 13 596 176 12 167 421 154 170 315 133 711 2 965 152 2 182 846 5 285 767 Paid on the redemption of shares (13 237 395) (8 049 008) (148 893) (1 617 311) (7 105 112) (36 134 508) (64 816) (262 591) (285 918) (442 393) Dividend distribution - (67 424) - - - - (1 167 905) (1 975 474) (12 488) - Increase/(decrease) in short term loans and other debt - - - - 450 385 - 460 858 - - -

Net cash inflow from financing activities (11 827 574) 7 366 905 (148 893) 11 978 865 5 512 694 118 035 807 (638 152) 727 087 1 884 440 4 843 374

NET INCREASE IN CASH AND CASH EQUIVALENTS 7 732 522 3 594 357 (17 933) 10 510 284 2 469 883 13 301 529 8 247 (679 607) 8 126 1 347 533

Cash and cash equivalents at 1 January 100 311 580 371 45 769 103 024 (1 366 260) 247 805 283 844 699 740 7 386 -

Notional exchange adjustment (see note 13) ------

Cash and cash equivalents 30 June 2009 7 832 833 4 174 728 27 836 10 613 308 1 103 623 13 549 334 292 091 20 133 15 512 1 347 533

* Matrix New Horizon Fund was launched on 1 April 2009 ** Matrix Orbit Fund was terminated on 30 November 2008 *** Matrix Emerging Markets Index Fund was terminated on 31 December 2008 (a) Stated figures are consolidated balances of Matrix Asset Based 2 Fund plus Stillwater Fund.

The notes on page 71 to 92 form a part of these Financial Statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2009 1. Organisation

Matrix Alternative Investment Strategies Fund Limited (the Company ) is an exempted company incorporated with limited liability in Bermuda as a mutual fund Company. The Company offers investors a choice between several classes of share in a number of Sub-Funds. Shares are issued either as Sterling Shares, US Dollar Shares or Euro Shares and will be redeemed in Sterling, US Dollar or Euro respectively. At the date of this report the Company had 8 active Sub-Funds, the Matrix Conservative Approach Strategy Fund and the Matrix Event Driven Fund (formerly Matrix MAX Fund) which offers six classes of shares, the Matrix Bastion Fund, the Matrix Horizon Fund, the Matrix Asset Based Fund, and the Matrix Asian Property Income Fund which offer three classes of shares each, the Matrix Asset Based 2 Fund which offers six classes of shares and Matrix New Horizon Fund which offers two classes of shares. The investment objective of the Gottex Value Added Fund Market Neutral and the Gottex Market Neutral Plus Fund, in which the Matrix Bastion Fund invests, is to generate consistent returns over the medium term with low correlation to major stock and fixed income market indices. Such returns are expected to be associated with a low degree of risk. The investment objective of the Matrix Conservative Approach Strategy Fund is to provide annual returns of LIBOR plus 4% to 6% with a level of volatility that is similar to the FTSE Brit Govt 5-15 year Gilt Index by investing in a carefully selected portfolio of hedge funds that have a low correlation with each other across a broad spread of strategies and market styles. The Matrix Conservative Approach Strategy Fund may enter into forward foreign exchange contracts to protect the exposure of Sterling class shareholders to the net assets of the Sub-Fund, which are substantially denominated in US Dollars. Note that these forward foreign exchange contracts are solely for the benefit of the Sterling class shareholders. While the Company will attempt to hedge against currency exposure, there can be no guarantee that the value of the Sterling class shareholders will not be affected by the value of Sterling relative to the US Dollar. Open forward Foreign Exchange Contracts at 30 June 2009 and as at 31 December 2008 are listed in the Schedule of Investments. The investment objective of the Class J Shares of the Collingham Investment Fund, in which the Matrix Horizon Fund invests, is to achieve consistently high annual returns in Sterling terms with low volatility through investing in a carefully selected hedge fund portfolio consisting of a minimum of 15 hedge funds diversified across different investment styles and strategies and managed by what Collingham regards as high quality investment managers. The investment objective of the Matrix New Horizon Fund is to achieve consistently high annual returns with low volatility and low correlation to broad equity indices. More generally, the Matrix New Horizon Fund may invest in listed and unlisted and rated and unrated investments. The investment objective of the Matrix Event Driven Fund is to provide consistently high returns over a market cycle by investing in a range of absolute return funds that seek to generate steady positive monthly returns. The Fund will invest in a minimum of twelve underlying absolute return funds whose fund managers realise returns both from market inefficiencies, as well as from directional market moves. The investment objective of the Matrix Asset Based Fund is to achieve consistent returns with a low degree of risk and a low degree of market correlation. More generally, the Matrix Asset Based Fund may invest in listed and unlisted and unrated investments. The investment objective of the Stillwater Matrix Fund into which the Matrix Asset Based 2 Fund invests, is to achieve capital appreciation and consistent returns over the medium term with low correlation to major stock and fixed income market indices by investing in a portfolio of underlying funds that employ asset backed investment strategies.

The investment objective of the ARA Master Fund (and hence the ARA Asian Asset Income Fund into which the Matrix Asian Property Income Fund invests), is to generate superior long-term returns by investing in a diversified portfolio of listed and unlisted equity securities in asset-backed sectors which have the potential for growing levels of rent from the assets plus capital growth, in the Asia- Pacific region. These sectors can be characterised by investments with a highly definable asset base and rental income, including a wide range of property assets and infrastructure assets such as power distribution networks or road networks. The ARA Master Fund aims to deliver a 14-16 percent annual total return. It intends to deliver a high cash yield to investors from income received from the underlying assets of the ARA Master Fund, which during the initial stages of the ARA Master Fund is estimated to be 7-8 percent.

2. Principal accounting policies

The principal accounting policies adopted in the preparation of these Financial Statements are set out below.

Basis of preparation

Accounting convention

The accompanying Financial Statements have been prepared in accordance with International Financial Reporting Standards. The Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss. The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

All references to net assets throughout this document refer to net assets attributable to holders of redeemable participating shares unless otherwise stated.

The Statement of Net Assets Attributable to Redeemable Participating Shareholders presents assets and liabilities in decreasing order of liquidity and does not distinguish between current and non-current items.

Foreign currency translation

(a) Functional and presentation currency Items included in the Company s financial statements are measured using the currency of the primary economic environment in which it operates. The US Dollar is the functional and presentation currency of the Matrix Conservative Approach Strategy Fund, the Matrix Asset Based 2 Fund and the Matrix Asian Property Income Fund, while Sterling is the functional and presentation currency of the Matrix Bastion Fund, the Matrix Horizon Fund, the Matrix Event Driven Fund, the Matrix Asset Based Fund and the Matrix New Horizon Fund. Sterling is the presentation currency of the Company as a whole.

Transactions in foreign currencies, which occurred during the year, are translated into the Functional Currency using exchange rates prevailing on the transaction date. Assets and liabilities in foreign currencies are translated into the functional currencies at the rates prevailing at the period end date. Profits and losses on foreign currency translations are recognised in the Statement of Operations.

For the purpose of combining the financial statements of the Sub-Funds, the amounts in the Statement of Net Assets Attributable to Redeemable Participating Shareholders have been translated to Sterling at the exchange rate ruling at 30 June 2009. The amounts in the Statement of Operations, the Statement of Changes in Net Assets and the Cash Flow Statement have been translated to Sterling at the average exchange rate for the period from 1 January 2009 to 30 June 2009. The method of translation has no effect on the Net Asset Value per share attributable to the individual Sub-Funds.

Income

Dividends are credited to the Statement of Operations on ex-dividend date. Dividend income is shown gross of any non-recoverable withholding taxes, which is disclosed separately in the Statement of Operations, and net of any tax credits. Bank interest income is accounted for on an effective interest basis.

Cash and Cash equivalents

Cash and cash equivalents include cash in hand, demand deposits, other short term highly liquid investments with original maturities of three months or less and bank overdrafts. Cash and cash equivalents will be valued at their face value with interest accrued (if any) to the relevant Dealing Day.

Distributions Payable to Redeemable Participating Shareholders

The Directors may declare a dividend in respect of such Classes of Sub-Funds at any time in the future if they consider it appropriate to do so. It is envisaged that distributions will be made bi- annually to holders of the Distributor Class and the Distributor Institutional Class Shares of the Sub- Funds. To the extent that a dividend may be declared, it will be paid in compliance with any applicable laws and Irish Stock Exchange requirements. Distributions paid to redeemable participating shareholders are recognised in the Statement of Operations as a Finance Cost when declared.

Financial assets and liabilities at fair value through profit and loss

The Company has designated its investments as financial assets and liabilities at fair value through profit or loss category and consequently they are measured at fair value with all changes recognised in the Statement of Operations.

Purchases and sales of investments are recognised on trade date the date on which the Company commits to purchase or sell the asset. Investments are initially recognised at fair value and are derecognised when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all risks and rewards of ownership.

Realised gains and losses are calculated on an average cost basis.

Gains and losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are included in the Statement of Operations in the period in which they arise.

Valuation of investments Investments in open-ended underlying funds are valued at fair value using the latest available unaudited net asset value on the relevant valuation day as reported or provided by or on behalf of such underlying funds.

On 30 June 2009 investments totalling GBP 237,889,944 (95.28%) of the net asset value of the Company (December 2008: GBP 302,671,147 99.76%) were valued in this manner.

Forward foreign exchange contracts Certain Sub-Funds may enter into forward foreign exchange contracts. The Matrix Conservative Approach Strategy Fund, the Matrix Event Driven Fund, the Matrix Asset Based 2 Fund, and the Matrix Asian Property Income Fund may enter into forward foreign exchange contracts to protect the exposure of Sterling class shareholders to the investments of the Sub-Fund which are denominated in US Dollars. Note that these forward foreign exchange contracts are solely for the benefit of the Sterling class shareholders. While the Sub-Funds will attempt to hedge against currency exposure, there can be no guarantee that the value of the Sterling class shareholders will not be affected by the value of Sterling relative to the US Dollar. Open forward Foreign Exchange Contracts as at 30 June 2009 and 31 December 2008 are listed on the Schedule of Investments. As from 30 January 2009, the Matrix Asset Based 2 Fund ceased to put on a sterling currency hedge. This currency hedge will be replaced when there is sufficient liquidity within the Fund to do so. During the period, the Matrix Asian Property Income Fund was unhedged due to a lack of liquidity. As from 1st October 2009, the Matrix Asian Property Income Fund has switched its shareholding from US$ Shares of the ARA Asian Asset Income Fund into the hedged Sterling Shares. From this date a US $ currency hedge has been placed on behalf of the US $ Share Classes of the Matrix Asian Property Income Fund.

All forward foreign exchange contracts are fair valued using forward exchange rates prevailing at the relevant valuation date for the remaining period to maturity and any resulting unrealised gains are recorded as assets and unrealised losses as liabilities in the Statement of Net Assets Attributable to Redeemable Participating Shares. Realised gains and losses are recorded in the Statement of Operations at the time the forward foreign exchange contracts settle. In relation to class specific forward foreign exchange contracts the realised and unrealised gains and losses and transaction costs are allocated solely to those share classes.

Consolidation Principles At 31 December 2008, the primary statements and related notes of Matrix Asset Based 2 Fund were consolidated with the Stillwater Matrix Segregated Portfolio Fund, as it held more than 50% of the outstanding voting rights. At 30 June 2009, Matrix Asset Based 2 Fund still had a greater than 50% holding, however a consolidation was not done due to a lack of detailed financial data. This is a departure from IAS 34.

Redeemable participating shares Redeemable participating shares are redeemable at the shareholder s option and are classified as financial liabilities.

The participating shares can be put back to the Sub-Fund at any time for cash equal to a proportionate share of the Sub-Funds net asset value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercised its right to put the share back to the Sub-Fund.

Share capital

Founder shares are not redeemable, do not participate in the net income or dividends of the Sub- Fund and are classified as equity, as per the Sub-Funds articles of association.

3. Fees and expenses

Management and Performance fees

The Manager, Matrix (Bermuda) Limited, will receive from the Sub-Funds a management fee in respect of each class of Shares in each Sub-Fund (whether denominated in Sterling or US Dollar).

The annual management fee in respect of each class of Shares is as follows: Matrix Conservative *Matrix *Matrix Approach *Matrix Horizon Matrix Event Asset Based Bastion Fund Strategy Fund Fund Driven Fund Fund Annual Annual Fee Annual Fee Annual Fee Annual Fee** Fee Retail Class 1.80% 1.75% 1.90% 1.75% 1.60% Institutional Class 1.40% 1.35% 1.50% 1.35% 1.20% Privet Class N/A 1.70% N/A N/A N/A Distributor Class 1.40% 1.35% 1.50% 1.35% N/A

*Matrix Asian *Matrix Asset Property Matrix New Based 2 Fund Income Fund Horizon Fund Annual Fee Annual Fee Annual Fee Retail Class 1.90% 2.00% 1.90% Institutional Class 1.50% 1.50% 1.50% US$ Class N/A 2.00% N/A Retail $ Class N/A N/A N/A Institutional Dollar Class N/A N/A N/A Privet Class N/A N/A N/A Distributor Class N/A N/A N/A

* these fees are inclusive of the underlying management fees of Gottex Market Neutral Fund/ Gottex Market Neutral Plus Fund, Collingham Investment Fund, the Gottex Matrix Asset Focused Fund, the Stillwater Matrix Fund and the ARA Asia Asset Income Fund.

The Class F Shares of the Gottex Market Neutral Fund in which the Matrix Bastion Fund invests attracted a monthly management fee of 1/12 of 1.2% of their net asset value from 1 Jan 09 until 1 June 2009 and then a monthly management fee of 1/12 of 0.75% of their net asset value from 1 June 2009 until the end of the period, plus an incentive fee equal to 10% of any new net appreciation in the Net Asset Value per share of the Gottex Market Neutral Fund multiplied by the average number of shares outstanding in the Gottex Market Neutral Fund over the relevant half year period, subject to a high water mark. No performance fees were charged in the period.

The Unlevered Sterling Shares of the Gottex Market Neutral Plus Fund, in which the Matrix Bastion Fund also invests attracted a monthly management fee of 1/12 of 1.2% of their net asset value from 1 January 09 until 1 March 2009 and then a monthly management fee of 1/12 of 0.75% of their net asset value from 1 March 2009 until the end of the period, plus an incentive fee equal to 10% of any new net appreciation in the Net Asset Value per share of the Gottex Market Neutral Plus Fund multiplied by the average number of shares outstanding in the Gottex Market Neutral Plus Fund over the relevant half year period, subject to a highwater mark. No performance fees were charged in the period.

In addition, an annual management fee of 0.6% per annum will be charged at the level of the Matrix Bastion Fund on the Retail Class Shares and of 0.2% on the Institutional Class Shares and the Distributor Institutional Class Shares. From 1st June 2009, these fees were increased to 1.05% and 0.65% respectively.

The Class J Shares and the Designated Investment Shares of the Collingham Investment Fund, in which the Matrix Horizon Fund invests, attract a management fee of 1/12 of 1% of the aggregate net asset value of the Class J Shares and Designated Investment Shares at the relevant month end. In addition, the Class J Shares also attract an incentive fee equal to 10% of the increase in the net asset value from the previous monthly reference date subject to a high water mark. No performance fees were charged during the period. In addition, an annual management fee of 0.9% per annum will be charged at the level of the Matrix Horizon Fund on the Retail Class Shares and of 0.5% on the Institutional Class Shares and the Distributor Institutional Class Shares.

The Gottex Matrix Asset Focused Fund, in which the Matrix Asset Based Fund invests, attracts a monthly management fee equal to 1/12th of 1.2% of the Gottex Fund Net Asset Value as of the last business day of each calendar month. In addition the Gottex Fund will be charged an incentive fee, equal to 10% of any new net appreciation subject to a high water mark, multiplied by the average number of shares outstanding over the calculation period. In addition, an annual management fee of 0.4% will be charged at the level of the Matrix Asset Based Fund on the Retail Class Shares. No performance fees were charged during the period.

The Stillwater Matrix Fund, in which the Matrix Asset Based 2 Fund invests, attracted a monthly management fee equal to 0.125% per month (approximately 1.5% annually) of the Stillwater Matrix Fund NAV, which is inclusive of leverage (prior to calculation of the incentive fee) attributable to the outstanding shares of such series and Class of the Stillwater Matrix Fund at the beginning of each month. In addition the Stillwater Matrix Fund will be charged a quarterly incentive fee, equal to 10% of any new net appreciation, subject to a high water mark. In addition, an annual management fee of 0.4% will be charged at the level of the Matrix Asset Based 2 Fund on the Retail Sterling Class Shares. No performance fees were charged during the period.

The ARA Master Fund, in which the Matrix Asian Property Income Fund invests, through the ARA Fund, attracted an annual management fee equivalent to 1/12th of 1.0% on a monthly basis of the ARA Master Fund NAV as of the last business day of each calendar month. In addition the ARA Master Fund will be charged an incentive fee, equal to 15% of the net realised and unrealised appreciation in the threshold return per share of shares at the end of the relevant performance period, multiplied by the average number of shares of the relevant class in issue as at each valuation point during the relevant performance period. No performance fees were charged during the period. In addition to this annual management fee, an annual management fee of 1.0% will be charged at the level of the Matrix Asian Property Income Fund on the Retail Class Sterling Shares, 0.5% on the the Institutional Class Sterling Shares and 1.0% on the US$ Class Shares.

The annual management fee for each Sub-Fund, which will be payable monthly in arrears, will be calculated and accrued monthly as at each valuation day based on the net asset value of the relevant class of Shares. The Manager may from time to time and at its absolute discretion decide to rebate to some or all investors or to their intermediaries all or part of the management fee. Hedging fees The Manager will receive from the Matrix Conservative Approach Strategy (CAS) Fund a passive currency hedging fee, which will be accrued and payable monthly in arrears, for its services in arranging currency hedging transactions in respect of the Sterling Shares in the Matrix Conservative Approach Strategy (CAS) Fund. Such a fee will be calculated on the basis of the Net Asset Value of the assets attributable to the Sterling Shares of the Matrix CAS Fund, at the rate of 0.025% on all assets. No currency hedging fee will be charged in periods where no hedge is in place.

The Manager will receive from the Matrix Asset Based 2 Fund a passive currency hedging fee, which will be accrued and payable monthly in arrears, for its services in arranging currency hedging transactions in respect of the Sterling Shares in the Matrix Asset Based 2 Fund. Such fee will be calculated on the basis of the net asset value of the assets attributable to the Sterling Shares of the Matrix Asset Based 2 Fund, at the rate of 0.04% on assets up to the first USD50,000,000, 0.06% on assets of between USD50,000,001 and USD100,000,000 and will be capped at 0.065% on assets above USD100,000,000. No currency hedging fee will be charged in periods where no currency hedge is in place. Matrix Alternative Asset Management has been retained by the Matrix Asian Property Income Fund to give currency hedging services. The Sub-Fund is subject to an annual fee of GBP 14,000 for this service. No currency hedging fee will be charged in periods where no currency hedge is in place. The Manager will be entitled to receive a Performance Fee out of the assets of the Matrix Conservative Approach Strategy Fund. Subject to the loss carryforward provision, for each calendar year, the Matrix Conservative Approach Strategy Fund shall pay the Manager a Performance Fee equal to the sum of 5% of net profits for such year attributable to each Share Class in excess of a non cumulative rate of return equal to the one year LIBOR rate reset annually as of the first Business Day of the calendar year. The Annual Management Fee will be deducted before computing the net profit or net loss of each Share.

The Performance Fee shall be accrued monthly and paid quarterly. The currency underlying the one year LIBOR rate used to determine the Performance Fee for each Share shall correspond with the base currency of such Share. No performance fees were charged during the period.

The Manager will be entitled to receive a performance fee out of the assets of the Matrix Event Driven Fund. The performance fee will be calculated in respect of each one month period ending on the Valuation Day respectively in each month (a Calculation Period ). For each Calculation Period, the performance fee in respect of each Share Class will be equal to 5% of the appreciation in the net asset value per share during that Calculation Period above the base net asset value per share. The base net asset value per share is the greater of the net asset value per share at the time of issue of that share and the highest net asset value per share achieved as at the end of any previous Calculation Period (if any) during which such Share was in issue. The performance fee in respect of each Calculation Period will be calculated by reference to the net asset value before the deduction of any accrued performance fees. The performance fee will normally be payable to the Manager in arrears within 14 days of the end of each Calculation Period. The performance fee will be calculated on a share class by share class basis so that each share is charged a performance fee which equates precisely with that share's performance.

This method of calculation is intended to ensure so far as possible that (i) any performance fee paid to the Manager is charged only to those shares which have appreciated in value and (ii) all shares of the same class have the same net asset value per share. No performance fees were charged during the period. The Investment Manager will also be entitled to receive a performance fee out of the assets of the Share Classes of the Matrix New Horizon Fund. The Performance Fee will be calculated in respect of each one month period ending on the Valuation Day (a Calculation Period ). For each Calculation Period, the Performance Fee in respect of each Share Class will be equal to 10% of the appreciation in the Net Asset Value per Share during that Calculation Period above the base Net Asset Value per Share. The base Net Asset Value per Share is the greater of the Net Asset Value per Share at the time of issue of that Share and the highest Net Asset Value per Share achieved as at the end of any previous Calculation Period (if any) during which such Share was in issue. The Performance Fee in respect of each Calculation Period will be calculated by reference to the Net Asset Value before deduction for any accrued Performance Fees. The Performance Fee will normally be payable to the Manager in arrears within 14 days of the end of each Calculation Period. The Performance Fee will be calculated on a Share Class by Share Class basis so that each Share is charged a Performance Fee which equates precisely with that Share s performance.

This method of calculation is intended to ensure so far as possible that (i) any Performance Fee paid to the Investment Manager is charged only to those Shares which have appreciated in value and (ii) all Shares of the same Class have the same Net Asset Value per Share. No performance fees were charged during the period.

Details of the Management fee and performance fee accrued and payable during the period are disclosed in the Statement of Net Assets Attributable to Redeemable Participating Shareholders and Statement of Operations.

Administration fees

From 1 January 2009 to 28 Feb 2009, Citi Fund Services (Ireland), Limited charged a basic annual fee of 15 basis point on the first US$ 1,000 million of assets under management in the Company, and 6 basis points on assets of US$ 1,000m and over. The above fees included one share class per Sub-Fund. Any additional share classes were charged at the rate of US$ 5,850 per share class per annum. The Base Annual Fee was subject to an annual minimum fee equal to US$ 100,000 (US$ 40,000 for the Asset Based Fund) multiplied by the sum of the number of sub-funds of Matrix Alternative Investment Strategies Fund Limited and Matrix Structured Products (excluding Matrix Ascension Plans). The minimum charge was only charged in months where the base annual fees of all the Funds and all the sub funds of Matrix Structured Products and Matrix Alternative Investment Strategies Fund Limited were below the annual minimum fee. Base annual fees were charged to each fund in proportion to its share of total net assets of the Company.

On 1 March 2009, CACEIS (Bermuda) Limited (the Administrator ) replaced Citi Fund Services (Ireland) Limited as the Administrator. The Administrator will charge an annual fee of 10.5 basis points on the first US$500 million of the collective assets held by the combined assets of Matrix Alternative Investment Strategies Fund Ltd, Matrix Alternative Investment Strategies Fund II Ltd and Matrix Structured Products Ltd (not including the Matrix Ascension Plans), 8 basis points on assets of between US$500 million and US$750 million and 6 basis points on assets of US$750 million and above. The above fees include one share class per Sub Fund. Any additional share classes will be charged at the rate of US$5,850 per share class per annum. These fees will be pro rated across the Sub Funds according to the size of each Sub Fund at each Valuation Day and subject to a complex minimum fee of US$25,230 per Sub Fund in Matrix Alternative Investment Strategies Fund Ltd, Matrix Alternative Investment Strategies Fund II Ltd and Matrix Structured Products Ltd (not including the Matrix Ascension Plans) per annum.

Out of pocket expenses incurred on behalf of the Company including the costs of communication with Shareholders, postage, printing and publication of prices, Directors fees and expenses of correspondent bank charges will be charged to the Company.

The Company shall pay the Corporate Secretary, Citi Hedge Fund Services a fee payable annually of EUR 7,500 for the provision of company secretarial services and the registered office.

Custodian fees

CACEIS Bank Luxembourg Dublin Branch (the Custodian ) charges a basic custody fee of US$ 1,000 per month for undertaking the custody arrangement for the Matrix Asset Based Fund, the Matrix Asset Based 2 Fund and the Matrix Asian Property Income Fund, the Matrix Horizon Fund and the Matrix Bastion Fund. The Custodian charged a custody fee of 3 basis points on Matrix Conservative Approach Strategy Fund, the Matrix New Horizon Fund and the Matrix Event Driven Fund.

In addition all Sub-Funds are charged a US $67 per portfolio transaction fee and US$ 27 per cash transaction. Any out of pockets expenses incurred on behalf of a Sub-Fund will be charged to the Sub-Fund.

Directors fees

Directors are entitled to remuneration for their services and the total of such remuneration for the current year is GBP£43,474 (2008:GBP£28,699). The Directors are also reimbursed for expenses properly incurred by them in attending meetings of the Board of Directors or in connection with the business of the Fund.

4. Bank balances and overdrafts

All cash amounts at 30 June 2009 are held with CACEIS Bank Luxembourg.

5. Share Capital

The Company had an authorised share capital of (i) GBP 50,050 divided into 50 Sterling Founder Shares of a par value of GBP 1.00 each and 500,000,000 Sterling Shares of a par value of GBP 0.0001 each and (ii) USD10,050 divided into 50 USD Founder Shares of a par value of USD1.00 each and 100,000,000 ordinary shares of a par value of USD0.0001 each. Fifty Sterling Founder Shares and fifty US Dollar Founder Shares have been allotted and issued to the Manager at par and are fully paid. The Founder Shares carry no rights to dividends and on a winding up rank only for the return of the capital paid up thereon after the return of the capital paid up on the ordinary redeemable participating shares. Founder Shares are not redeemable.

Redeemable participating shares are redeemable at the shareholder s option and are classified as financial liabilities.

The redeemable participating shares can be put back to the Sub-Fund at any time for cash equal to a proportionate share of the particular Sub-Fund s net asset value. Each redeemable participating share is carried at the redemption amount that is payable at the period end date if the shareholder exercised its right to put the share back to the Sub-Fund.

The following table outlines the number of shares subscribed during the period ended 30 June 2009 and during the period ended 30 June 2008. Matrix Matrix Conservative Matrix Matrix Conservative Approach Matrix Matrix Bastion Bastion Approach Strategy Horizon Horizon Fund Fund Strategy Fund Fund Fund Fund June 2009 June 2008 June 2009 June 2008 June 2009 June 2008 Subscriptions Retail GBP Class 243 1,321,341 15,699 190,575 58,615 9,760,903 Institutional GBP Class 24,746 2,153,194 - 245,010 46,923 2,909,120 Privet GBP Class ------Retail USD Class ------Institutional USD Class - - 85,405 - - - Distributor GBP Class 239,684 - 28,744 - 100,727 24,988 3,714,219 101,104 464,329 105,538 12,770,750

Matrix Event Matrix Event Driven Driven Matrix Matrix Matrix New Matrix (Formerly (formerly Asset Asset Horizon Event Driven MAX) MAX) Based Based Fund Fund Fund Fund Fund Fund June 2009 April 2009 - Jan 2009 - June 2008 June June June 2009 Mar 2009 2009 2008 Subscriptions Retail GBP Class 6,253,091 18,630,785 1,108,639 7,242,182 - 2,676,150 Institutional GBP Class 1,743,761 18,299,650 615,665 6,036,409 - 713,040 Privet GBP Class ------Retail USD Class ------USD Class ------Institutional USD Class ------Distributor GBP Class - - 22,558 410,163 - - Distributor USD Class - - - - - 36,496 GBP Class Side Pocket - 4,575,413 - - - - USD Class Side Pocket ------EURO Class Side Pocket 7,996,852 41,505,848 1,746,863 13,688,754 - 3,425,686

Matrix Matrix Matrix Asian Asian Asset Matrix Asset Property Property Based 2 Based 2 Income Income Fund Fund Fund Fund June 2009 June 2008 June 2009 June 2008 Subscriptions Retail GBP Class 1,921,890 25,167,893 144,431 2,001,012 Institutional GBP Class 1,854,208 41,532,257 132,506 257,959 Privet GBP Class - - - Retail USD Class 7,625,275 - - - USD Class - - - - Institutional USD Class - - - - Retail EURO Class 1 - - - Institutional EURO Class - - - - Distributor GBP Class - - - - GBP Class Side Pocket 9,976 - - - USD Class Side Pocket - - - - EURO Class Side Pocket - - - - 11,411,350 66,700,150 276,937 2,258,971

The following table outlines the number of shares redeemed during period ended 30 June 2009 and the period ended 30 June 2008.

Matrix Conservativ Matrix Matrix Matrix e Approach Conservative Matrix Matrix Bastion Bastion Strategy Approach Horizon Horizon Fund Fund Fund Strategy Fund Fund Fund June 2009 June 2008 June 2009 June 2008 June 2009 June 2008 Redemptions Retail GBP Class - 717,190 1,206,554 772,409 10,419,389 2,865,211 Institutional GBP Class - 1,814,813 5,195,532 982,402 6,162,276 2,029,377 Privet GBP Class ------Retail USD Class - - 88,431 - - - Institutional USD Class - - 102,523 - - - Distributor GBP Class 315 188,324 131,572 290,812 164,142 13,060 315 2,720,327 6,724,612 2,045,623 16,745,806 4,907,648

Matrix Matrix Event Driven Event Driven Matrix Matrix New Matrix (Formerly (Formerly Asset Matrix Horizon Event Driven MAX) MAX) Based Asset Based Fund Fund Fund Fund Fund Fund April 2009 - Jan 2009 - June 2009 June 2009 March 2009 June 2008 June 2009 June 2008 Redemptions Retail GBP Class 1,831 842,948 32,979,322 2,662,466 - 1,558,663 Institutional GBP Class - 929,938 30,843,359 5,956,168 - 24,000 Privet GBP Class ------Retail USD Class ------USD Class ------Institutional USD Class - - - - - 1,978 Distributor GBP Class - - 1,582,863 155,157 - - 1,831 1,772,886 65,405,544 8,773,791 - 1,584,641

Matrix Matrix Asian Asset Matrix Asset Matrix Asian Property Based 2 Based 2 Property Income Fund Fund Income Fund Fund June 2009 June 2008 June 2009 June 2008 Redemptions Retail GBP Class 1,246,224 15,817,869 119,666 111,100 Institutional GBP Class 47,425 805,971 - 32,863 Privet GBP Class - - - - Retail USD Class 316,003 - - - USD Class - - - - Institutional USD Class 5,657,502 - - - Retail EURO Class - - - - Institutional EURO Class - - - - Distributor GBP Class - - - - GBP Class Side Pocket - - - - USD Class Side Pocket 16,417 - - - EURO Class Side Pocket - - - 7,283,571 16,623,840 119,666 143,963

6. Net changes in fair value of financial assets and liabilities at fair value through profit or loss

Matrix Matrix Conservative Conservative Approach Approach Matrix Matrix Strategy Strategy Bastion Fund Bastion Fund Fund Fund June 2009 June 2008 June 2009 June 2008 GBP GBP US$ US$ Net realised gain (loss) on - Investments 99 40,333 (4,349,761) 6,801,523 - Forward foreign exchange contracts - - 6,082,558 (2,517,695) Net realised and unrealised gain/(loss) on foreign exchange (3,662) - (2,321,244) 2,726,355 Net change in unrealised appreciation/(depreciation) on: - Investments 1,300,743 320,641 (6,327,202) (9,730,265) - Forward foreign exchange contracts - - 691,177 2,693,501 Total 1,297,180 360,974 6,429,932 (26,581)

Matrix Matrix New Matrix Horizon Horizon Horizon Fund Fund Fund June 2009 June 2008 June 2009 GBP GBP USD Net realised gain (loss) on: - Investments (4,049,978) - 14,156 - Forward foreign exchange contracts - - 591,943 Net realised and unrealised gain/(loss) on foreign exchange (2,022) - 687,867

Net change in unrealised appreciation/(depreciation) on: - - Investments 4,258,360 2,663,575 148,274 - Forward foreign exchange contracts - - 124,434 Total 206,360 2,663,575 1,566,674

Matrix Event Matrix Driven Event Driven Matrix Asset Matrix Asset Fund Fund Based Fund Based Fund June 2009 June 2008 June 2009 June 2008 GBP GBP GBP GBP Net realised gain (loss) on: - Investments (5,534,527) 1,179,800 - - - Forward foreign exchange contracts 2,927,826 501,638 - - Net realised and unrealised gain/(loss) on foreign exchange (773,521) (652,848) (26,076) -

Net change in unrealised appreciation/(depreciation) on: - Investments 2,321,771 (7,063,119) (2,882,443) (206,706) - Forward foreign exchange contracts 268,812 641,342 - - Total (789,639) (5,393,187) (2,908,519) (206,706)

Matrix Asian Matrix Asian Property Matrix Asset Matrix Asset Property Income Based Fund 2 Based Fund Income Fund Fund June 2009 2 June 2008 June 2009 June 2008 US$ US$ US$ US$ Net realised gain (loss) on: - Investments - (694,500) - 9,126 - Forward foreign exchange contracts (1,455,043) 680,340 - 186,976 Net realised and unrealised gain/(loss) on foreign exchange (1,289,706) 1,220,557 (483,922) (187,537)

Net change in unrealised appreciation/(depreciation) on: - Investments (19,589,506) (7,139,495) 1,878,739 (3,048,973) - Forward foreign exchange contracts - 109,037 - 209,419 Total (22,334,255) 8,454,929 1,394,817 (2,830,989)

7. Sundry payables and accrued expenses

TOTAL TOTAL June 2009 Dec 2008 GBP GBP Audit fees 113,943 91,082 Directors fees 11,636 8,615 Custodian fees 32,280 30,000 Other accruals 149,959 198,538 Administration fees 150,445 127,449

458,263 455,684

8. Taxation

At the present time no income, profit or capital gains taxes are levied in Bermuda and, accordingly, no provision for such taxes has been recorded by the Company. The Company has received from the Minister of Finance of Bermuda under the provisions of the Exempted Undertaking Tax Provision Act 1966, as amended, an undertaking that, in the event of there being enacted in Bermuda, any legislation imposing tax computed on profits or income, or computed on any capital assets, gains or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not until 28 March 2016 be applicable to the Sub-Fund or to any of its operations or to the Shares, debentures or other obligations of the Company except insofar as such tax applies to persons ordinarily resident in Bermuda and holding such Shares, debentures or other obligations of the Company or to land in Bermuda leased to the Company.

9. Derivatives and other financial instruments

Financial assets & liabilities The majority of the Company s assets are investments in other collective funds, which neither pay interest nor have a maturity date (see Schedules of Investments on pages 47 to 60). The Company has no material financial liabilities at 30 June 2009 or 31 December 2008.

Fair value All the financial assets and liabilities of the Company are held at fair value at 30 June 2009 and at 31 December 2008. Gains and losses on financial assets and financial liabilities held at fair value through profit or loss are included in the Statement of Operations on pages 63 to 64 and are detailed in note 6.

In accordance with IFRS 7, this note details the way in which each of the Sub-Funds of the Company manage risks associated with their investments. The Prospectus for the Company and the Supplements for each Sub-Fund set out a comprehensive disclosure of the risks that the Company and each specific Sub-Fund faces and readers of these financial statements should therefore refer to the Prospectus and the relevant Supplements to ensure they have a full understanding of the risks. Purely for the purposes of these financial statements and to facilitate compliance with accounting standards, the main risks as defined by the IFRS 7 are as follows:

Market Risk

This risk is comprised of three types of risk; Price Risk, Currency Risk and Interest Rate Risk.

Price Risk

Market price risk arises mainly from uncertainty about future prices of investments held, which are classified as financial assets at fair value through profit or loss. It represents the potential loss each Sub-Fund might suffer, through their holding in underlying hedge funds in the face of price movements. Each Sub-Fund invests in funds which are subject to valuation risk due to the manner in which the Sub-Fund s target investments are themselves valued.

Each of the Sub-Funds (as detailed in the table below) bears the risk of the prices of their holdings in hedge funds or funds of hedge funds moving on a monthly basis.

Sub-Fund Nature of Underlying Investment(s) Gottex Market Neutral Fund and Gottex Market Neutral Plus Bastion Fund Fund Conservative Approach Strategy A portfolio of approximately 29 individual underlying hedge Fund funds Horizon Fund Collingham Investment Fund New Horizon Fund A portfolio of approximately 11 underlying hedge funds Event Driven Fund A portfolio of approximately 21 underlying hedge funds Asian Property Income Fund ARA Asian Asset Income Fund

The asset based Sub-Funds (as detailed in the table below) are invested indirectly in underlying funds in the asset based lending or asset based investing space where the large majority of positions cannot be priced using market data since the transactions are private loans to entities, collateralized by soft or hard assets or the actual purchase of the underlying asset. In these cases, the underlying fund would typically follow an accrual methodology to mark-to-market its positions, unless there is transaction impairment, in which case a reserve would be taken against the transaction.

Asset Based Fund Gottex Matrix Asset Focused Fund Asset Based 2 Fund Stillwater Matrix Segregated Portfolio Fund

The schedule of investments included on pages 47 to 60 sets out the details, values and holdings of each Sub-Fund, which therefore represents the maximum market risk. The Statement of Operations on pages 63 and 64 shows the net gains/(losses) on financial assets and liabilities for each Sub- Fund for both this and comparative accounting periods.

The investment managers of each of the Sub-Funds review the positions and gains and losses on a monthly basis to monitor the underlying risks. The portfolio of investments for the Matrix Conservative Approach Strategies Fund, the Matrix New Horizon Fund and the Matrix Event Driven Fund and the underlying portfolio of investments for the Gottex Market Neutral Fund, the Gottex Market Neutral Plus Fund, the Collingham Investment Fund, the ARA Asian Income Fund, the Gottex Matrix Asset Focused Fund and the Stillwater Matrix Fund, are presented by the relevant investment managers to the board at their meetings which are held three times a year.

Market Price Risk Sensitivity Analysis

All of the Sub-Funds invest with the objective of achieving absolute returns. None of the portfolios are invested in line with or in consideration of the constituents of any index. As a result the Directors believe that it is potentially meaningless to compare the return achieved in any of the portfolios against an index. However for the purposes of complying with IFRS 7 the following analysis has been prepared.

The following table lists reasonably possible movements of the underlying funds or index, and their impact to the respective Matrix Fund.

Reasonable Reasonable % Impact % movement Impact on movement in on in underlying Matrix underlying Matrix Matrix Fund Underlying Fund Fund Fund Fund Fund June 2009 June 2009 Dec 2008 Dec 2008 Gottex Market Neutral Fund and Gottex Market Bastion Fund Neutral Plus Fund 20% 20% 20% 20% Collingham Investment Horizon Fund Fund 20% 20% 20% 20% Gottex Matrix Asset Asset Based Fund Focused Fund 30% 30% 80% 80% Asset Based 2 Fund Stillwater Matrix Fund 20% 20% 15% 15% Asian Property ARA Asian Asset Income Income Fund Fund 20% 20% 20% 20%

The Conservative Approach Strategy Fund had an average beta during the period of 0.66 to the Credit Suisse/Tremont Blue Chip Index (Dec 2008: 0.62) therefore a 10% increase or decrease in the index might be expected to increase the net assets of the fund by 6.56% (Dec 2008: 6.22%)

The Event Driven Fund had an average beta during the year of 0.27 to the Credit Suisse/Tremont Blue Chip Index (Dec 2008: 0.59) therefore a 10% increase or decrease in the index might by expected to increase the net assets of the fund by 2.65% (Dec 2008: 5.92%).

The New Horizon Fund had an average beta from launch, 1 April 2009, to 30 June 2009 of 0.06 to the Credit Suisse/Tremont Blue Chip Index therefore a 10% increase or decrease in the index might by expected to increase the net assets of the fund by 0.59%.

Limitations of sensitivity analysis The above analysis is included for the purposes of IFRS 7 only and is not used by management in managing risk. The analysis is based on historical data and cannot take account of the fact that future market price movements, correlations between markets and levels of market liquidity in conditions of market stress may bear no relation to historical patterns. The market price risk information is a relative estimate of risk rather than a precise and accurate number. The market price information represents a hypothetical outcome and is not intended to be predictive. Future market conditions could vary significantly from those experienced in the past.

Currency Risk

Currency Risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Currency risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The net asset values per share of the Sub-Funds of the Company are computed in US Dollars, Sterling and Euro whereas the investments of the Sub-Funds may be acquired, valued and disposed of in other currencies. The US Dollar, Sterling and Euro value of the investments of the Company designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currency.

The Matrix Conservative Approach Strategy Fund, Matrix Asian Property Income Fund, and the Matrix Asset Based 2 Fund utilises currency hedging to hedge non base currency class exposure. The Matrix Asset Based 2 Fund suspended its currency hedge on 10 February 2009 and the Matrix Asian Property Income Fund was unhedged throughout the period.

The Event Driven Fund which is denominated in GBP invests in underlying funds which are denominated in USD and EURO. This exposure to currency risk is minimized by the use of currency hedging techniques. As at 31 December 2008, no such currency hedging was utilised but was reinstated in May 2009. At 30 June 2009, the continuation and side-pocket share classes are fully hedged.

The underlying funds that the Sub-Funds invest in may have exposure to currency risks, which are managed at the level of the underlying fund.

Currency Risk Analysis

The following sets out the total exposure to foreign currency risk, possible currency movements and the impact of a movement of the size indicated on the net assets of the Event Driven Fund based on the total foreign currency exposure of the Event Driven Fund at the portfolio level as at 30 June 2009 and as at 31 December 2008.

As at 30 June 2009 % Impact to Net movement Net Amount Exposure in Assets Fund Currency in GBP Hedging GBP GBP Currency GBP Event Driven Fund USD 66,834,887 (62,180,270) 4,654,617 10% 465,462 EUR 528,360 - 528,360 10% 52,836

% Impact to Open Net movement Net Amount Forward Exposure in Assets Fund Currency in USD Contract USD USD Currency USD Conservative Approach Strategy Fund GBP 7,722,038 26,731,106 34,453,144 10% 3,445,314

% Impact to Open Net movement Net Amount Forward Exposure in Assets Fund Currency in USD Contract USD USD Currency USD New Horizon Fund GBP 2,619,095 10,407,475 13,026,570 10% 1,302,657

As at 31 December 2008 % Impact to Net movement Net Amount Exposure in Assets Fund Currency in GBP Hedging GBP GBP Currency GBP Event Driven Fund USD 53,282,818 - 53,282,818 10% 5,328,282 EUR 1,438 - 1,438 10% 144

Limitations of sensitivity analysis The above analysis is included for the purposes of IFRS 7 only and is not used by management in managing risk. This currency risk sensitivity analysis is based on an estimate of the NAV impact, assuming a 10% movement in exchange rates. The analysis is based on historical data and cannot take account of the fact that future exchange rate movements and the portfolio of each Sub-Fund may bear no relation to historical patterns.

Interest Rate Risk

Interest rate risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The value of investments in interest rate bearing securities may be subject to price volatility due to changes in interest rates. Holding all other variables constant, an increase in interest rates will generally reduce the value of fixed rate debt securities that are issued and outstanding, while a decline in interest rates will generally increase the value of such debt securities.

The Sub-Funds of the Company do not invest directly in interest bearing instruments other than cash balances, which bear interest at a floating rate. However the underlying funds that the Sub- Funds invest in may have exposure to interest rate risks which are managed at the level of the underlying fund.

Credit Risk

The Sub-Funds of the Company will be exposed to credit risk on parties with whom they trade and will also bear the risk of settlement defaults.

Credit risk arising from receivables from underlying portfolio Sub-Funds relates to redemption or transactions awaiting settlement. Risk relating to unsettled receivables is considered small due to the short settlement period involved and the due diligence performed on the portfolio companies. The maximum exposure related to unsettled trades equals the amounts shown in the Statement of Net Assets attributable to holders of redeemable shares.

As part of their due diligence process the investment managers of each Sub-Fund spend significant time and resources evaluating and rating each underlying fund before any investment is made. This process includes an assessment of the entire business and the external counterparties used by each underlying fund (auditor, administrator, prime broker) to ensure that they are reputable and financially stable organizations.

The assets and cash are held in a segregated account with CACEIS Bank Luxembourg, Dublin Branch. These assets would be ring fenced in the event of bankruptcy proceedings affecting CACEIS Bank Luxembourg.

Liquidity Risk

The main liability of each of the Sub-Funds is the redemption of any shares that investors may wish to sell. In addition there is a risk associated with the ability to redeem out of the underlying funds in order to meet those redemptions.

Each Sub-Fund is governed by the liquidity restrictions as stated in the relevant supplement, which limits the amount of capital that can be invested in funds with lock ups that do not match the liquidity terms of the relevant Sub-Funds.

Each Sub-Fund has its own gate which limits the amounts of shares that can be sold by investors at any one time as shown in the table below.

Fund Gate Monthly Quarterly Bastion 5% per share class Yes Conservative Approach Strategy 10% per share class Yes Horizon n/a n/a In Wind Up Event Driven Fund 5% per share class Yes (from 1 April 2009) Event Driven Side Pocket n/a n/a Illiquid Assets Asian Property Income Fund 20% per share class Yes (following lock up period) Asset Based Fund n/a n/a In Wind Up Asset Based 2 Fund 20% per share class Yes (Currently Suspended) Asset Based 2 Side Pocket n/a n/a Illiquid Assets New Horizon 5% per share class Yes

Each Sub-Fund also has the ability to suspend redemptions in circumstances where it is not possible to redeem from the Underlying investments or where redemptions from Underlying investments are being used to pay down a Fund s borrowing.

During 2008, Bastion Fund suspended redemptions from 12 November 2008 as a result of the two Underlying Funds in which it invests suspending redemptions. This suspension was lifted in June 2009. Conservative Approach Strategy Fund suspended redemptions from 1 December 2008 in order to raise liquidity from the Underlying Funds in an orderly manner. This suspension was lifted on 1st April 2009 and normal redemption terms have been applied. The Matrix Asset Based 2 Fund did not employ a gate in 2008 but has suspended redemptions from 31 March 2009 as it attempts to repay its lender from the redemption proceeds it receives from its Underlying Investments. This Fund is likely to remain suspended for 12 to 18 months. The Matrix Horizon Fund and the Matrix Asset Based Fund are both winding up and will repay their respective shareholders as and when they receive proceeds from the sale of their Underlying Investments. The investment by Matrix Asian Property Income Fund in ARA Fund is subject to a lock up which expires in August 2010. The Matrix Asian Property Income Fund is therefore also subject to a lock up which also expires in August 2010.

The board reviews the liquidity profiles of each underlying Sub-Fund at each board meeting with the aim of ensuring that the liquidity profile will be sufficient to meet the expected investor redemption requests.

The Matrix Asset Based 2 Fund and the Stillwater Matrix Fund, in which the Matrix Asset Based 2 Fund invests created a side-pocket in October 2008. Details of the value of the Stillwater side pocket are included in the schedule of investments on page 59. The Net Asset Value per share of the Matrix Asset Based 2 side pocket share classes are included on page 64.

For the foreseeable future, the Stillwater Matrix Fund will not be in a position to meet redemption requests given the current illiquid nature of the Fund s underlying Managers and the need to repay the leverage facility prior to fulfilling any redemption requests by investors. This in turn makes it impossible for the Directors of Matrix Asset Based 2 to consider redemption requests until such time as redemptions in the Stillwater Matrix Fund are resumed.

As a result of the re-structuring of the Matrix MAX Fund on 1 April 2009, a side-pocket share class was created in the new structure. The Net Asset Value per share of the Matrix Event Driven side pocket share class are included on page 62.

All other financial liabilities of the Sub-Funds are payable within 2 months.

Each Sub-Fund has the ability to incur borrowings to meet redemptions requests. No such borrowings were incurred during the period ended 30 June 2009.

10. Related parties

Bridget Guerin, Olivier Maumus and James Keyes are Directors of the Company and of the Manager. Bridget Guerin is a Director of the Distributor. Fees paid to the Manager are detailed in note 3.

11. Directors interests

30 June 2009 Matrix Horizon Fund Bridget Guerin 14,211.54 Institutional GBP Class Benoit Guerin (Spouse of 13,150.57 Institutional GBP Class Director) Matrix Event Driven Fund Bridget Guerin 15,346.18 Institutional GBP Class Benoit Guerin (Spouse of 26,870.53 Institutional GBP Class Director)

31 December 2008 Matrix Horizon Fund Bridget Guerin 20,802.42 Institutional GBP Class Benoit Guerin (Spouse of 19,249.41 Institutional GBP Class Director) Matrix Event Driven Fund Bridget Guerin 19,087.287 Institutional GBP Class Benoit Guerin (Spouse of 33,421.054 Institutional GBP Class Director)

12. Cross Liability

The assets of each Sub-Fund may be exposed to the liabilities of other Sub-Funds within the Company. At 30 June 2009 and at 31 December 2008 the Directors are not aware of any such existing or contingent liability.

13. Translation to Presentation Currency

For the purpose of combining the financial statements of the Sub-Funds, the amounts in the Statement of Net Assets Attributable to Redeemable Participating Shareholders have been translated to Sterling at the exchange rate ruling at 30 June 2009. The amounts in the Statement of Operations have been translated to Sterling at the average exchange rate for the period 1 January 2009 to 30 June 2009. The method of translation has no effect on the Net Asset Value per share attributable to the individual Sub-Funds.

The opening value of cash and cash equivalents has been restated at the exchange rate ruling at 30 June 2009. The resulting movement of GBP490,280 (June 2008 £7,686) is due to the movement in exchange rates between 31 December 2008 and 30 June 2009.

14. Exchange Rates The following exchange rate was used to translate assets and liabilities into Sterling at 30 June 2009. Euro 1.1741 US Dollars 1.6469

The following exchange rate was used to translate assets and liabilities into Sterling at 31 December 2008. Euro 1.0342 US Dollars 1.4374

The following exchange rate was used to translate amounts in the Statement of Operations and the Statement of Cashflows into the reporting currency (Sterling) as of 30 June 2009. US Dollars 1.5019 The following exchange rate was used to translate amounts in the Statement of Operations and the Statement of Cashflows into the reporting currency (Sterling) as of 31 December 2008. US Dollars 1.8393

15. Accounting Period

The financial statements are for the period ended 30 June 2009.

The comparative figures of the Statement of Net Assets Attributable to Redeemable Participating Shareholders are for the year ended 31 December 2008. The comparative figures for the Statement of Operations, Statement of Cash Flows and Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are the period ended 30 June 2008.

16. Short Term Loans

During 2008 Matrix Securities Limited ( the Lender) entered into a number of agreements with Matrix Alternative Investment Strategies Fund Limited (the Borrower ) to lend money to the Borrower to enable some of the sub-funds of the Borrower to meet its obligations in relation to currency hedging transactions it has entered into. The Borrower and Lender entered into agreement which set out the terms on which each of the loan facilities were made available and continues to be made available to the Borrower. Interest on the principal amount of the each loan shall accrue at the rate of 2.5% per annum above LIBOR, such interest to accrue on a day to day basis in respect of the principal amount outstanding and shall be payable monthly in arrears on the last Business Day of each month. The Borrower has entered into security documents with the Lender in relation to each of the loans which creates fixed and floating security over the assets which is subordinate to the security granted to the Custodian under the Custodian Agreement.

Please refer to the Statement of Net Assets Attributable Shareholders for details of the loan balances outstanding as at 30 June 2009 and 31 December 2008. The Company has neither received nor given collateral during the period.

17. Other disclosures

Neither the Company nor the Manager have entered into any soft commission arrangements with respect to the Funds.

18. Significant events during the period

From 1 January 2009, Bank of Ireland has been replaced as the Custodian of the Company by CACEIS Bank Luxembourg and from 1 March 2009 Citi Fund Services (Ireland), Limited has been replaced as the Administrator of the Company by CACEIS (Bermuda) Limited.

The Board decided to close and wind up the Matrix Horizon Fund from 31 January 2009. Shareholders were given two options, either to receive cash as and when redemption proceeds are received from the underlying Collingham Investment Fund or to have their proceeds re-invested in shares of the New Horizon Fund.

MAXAM Capital Management LLC resigned as Investment Managers of the Matrix MAX Fund (now Matrix Event Driven Fund) on 31 December 2008 and Matrix Money Management Limited were appointed in their place under an Investment Management Agreement dated 1 January 2009.

The Matrix MAX Fund was restructured and renamed the Matrix Event Driven Fund on 1 April 2009. The restructuring involved the creation of a side pocket holding approx 11% of the funds assets on 31 March 2009 and subsequently the creation of Continuing and Redeeming Share Classes. Shareholders were given the choice of moving their holdings into one of the two classes the result of this was that 85% of shareholders elected for the Continuation Share Class and 15% the Redeeming Share Class.

The Event Driven Fund is being managed by Matrix Money Management Limited with a new investment objective and with calendar quarterly redemptions as opposed to the original monthly redemptions. The new investment objective is to provide consistently high returns over a market cycle by investing in a range of absolute return funds that seek to capitalise on the opportunities presented by the global economic environment, the dislocations in the financial markets and specific corporate events.

Shareholders in the Redemption Share Class will receive cash from their holdings in the Event Driven Fund as and when they are received from the Underlying Funds. The Matrix New Horizon Fund was launched on 1 April 2009. This fund is a multi strategy fund of alternative investment funds managed by Matrix Money Management Limited.

19. Post Balance Sheet Events

The Matrix Asian Property Income Fund s investments in the ARA Asian Income Fund were transferred on 1 October 2009 from the US Dollar Class B Shares to the Sterling Class D Shares. The Fund s Sterling Share Classes will therefore be effectively hedged against Sterling / US Dollar FX fluctuations at the ARA Asian Asset Income Fund level going forward.

From 1 October the Fund will commence currency hedging arrangements to ensure that the US Dollar Class Shares are hedged against US Dollar / Sterling FX fluctuations.

20. Approval of the Financial Statements

The Financial Statements were approved by the Board of Directors on 21 October 2009.