RISK

Among the risks we wish to call to the particular attention of prospective investors in the KIS Asia Long Short Fund ('the Fund') are the following;

(1) Hedge funds such as the KIS Asia Long Short Fund are speculative in nature and entail substantial risks;

(2) The investments of the fund may be subject to sudden and large falls in price or value and there could be a large loss upon realisation of a holders investment which could equal the total amount invested;

(3) The use of a single adviser could mean a lack of diversification and consequently, higher risk, and may depend upon the services of key personnel, and if certain or all of them become unavailable, the Fund may prematurely terminate;

(4) An investment in the Fund is illiquid and there is no secondary market for the sale of interests in the Fund and none is expected to develop;

(5) There may be restrictions on the transferring of interets in the Fund;

(6) The investment manager will receive performance-based compensation, which may result in riskier investments, and the Funds' fees may offset trading profits;

(7) The Funds are subject to certain conflicts of interests;

(8) Certain securities and instruments in which the Funds may invest can be highly volatile;

(9) The Fund may be leveraged;

(10) A substantial portion of the trades executed for the Fund may take place on non-Australian exchanges;