Fund Investment Objective:

The Portfolio's investment objective is to generate stable, predictable periodic distributions to its investors, through investing the Portfolio's assets in Senior Life Settlement insurance policies ("Life Settlements") issued by investment grade insurance companies located in the United States, U.S. Treasury obligations, and other investment pools that invest in Life Settlements.  The Portfolio's Shares will be listed on the BSX as soon as practicable following the initial offering of shares and will not be offered or traded on any other exchange.

The Portfolio generally seeks to generate a gross return of 20% per annum through investing and trading Life Settlements and U.S. Treasury Obligations.  The Portfolio will generally seek to pay a dividend which is 3% higher than the return on 10-year U.S. Treasury Notes.  The minimum dividend expected to be paid by the Fund is 4% per annum for each of the first 3 years.  Dividends paid out by the Portfolio may be higher or lower depending on the Portfolio's yearly performance.  At least 90% of the Portfolio's assets are expected to be invested in Life Settlements and U.S. Treasury Obligations.

The Life Insurance Policies

The Portfolio generally expects to invest in Life Settlements that are issued by insurance companies rated "A-" or better by A.M. Best or "BBB-" or better by Standard & Poor's.  The Portfolio expects to purchase policies with life expectancies ranging from 12 months to more than 10 years, although the Portfolio has not adopted any maximum life expectancy limits.  The Portfolio will not be forced to sell an insurance policy that has been purchased from an insurance company that has been downgraded after the Portfolio has made such a purchase.  All Life Settlements that the Portfolio purchases will be issued and administered in the United States.

U.S. Treasury Obligations

The Fund will invest in U.S. Treasury Obligations (such as Treasury bills, notes and bonds, which differ only in their interest rates, maturities and times of issuance) which are supported by the full faith and credit of the United States.

There are no limitations on the Portfolio's ability to utilize borrowing, leverage, derivatives or other financial techniques.  The Investment Manager expects that up to 20% of the Portfolio's assets may be invested in Life Settlements issued by any one single insurance company.      

Bloomberg Ticker: APAPPIN KY

The BSX Listing was cancelled, effective 27 October, 2011, under the BSX Regulations, Section I, Chapter 2, Regulation 2.24(1) & (4), namely for non-payment of listing fees; failure to submit financial reports; failure to appoint a replacement Listing Sponsor.