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Berkeley Futures Limited Jackson House, 18 Savile Row London, W1S 3PW

Berkeley Futures Limited Jackson House, 18 Savile Row London, W1S 3PW Email: trade@bfl.co.uk , Call: 020 7758 4777 Web: www.bfl.co.uk Authorised and Regulated by the Financial Services Authority. Berkeley Capital Management Berkeley Capital Management (BCM), a trading name of Berkeley

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Berkeley Futures Limited Jackson House, 18 Savile Row London, W1S 3PW

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  1. Berkeley Futures Limited Jackson House, 18 Savile Row London, W1S 3PW Email: trade@bfl.co.uk, Call: 020 7758 4777 Web: www.bfl.co.uk Authorised and Regulated by the Financial Services Authority

  2. Berkeley Capital Management Berkeley Capital Management (BCM), a trading name of Berkeley Futures Limited established 1986, is designed to offer clients a diversification from traditional fund management by offering : Investments in commodity, equity and index markets Access to SIPP providers Clients total control of their assets Investment in highly liquid and transparent markets Connection to online account information BCM achieves this by offering individual managed accounts

  3. Advantages of Managed Accounts There are several advantages for clients having a managed account, over investing in traditional funds. These include : • Retaining control of assets in an individual client account, segregated from the firms own funds • Full transparency of trades and positions, including daily position summary and daily account valuation • Daily liquidity which enables clients to withdraw money at any time • Avoiding co-investor risk

  4. Berkeley Option Writing Managed Account BCM has developed the Option Writing Managed Account to generate premium using an option writing strategy, which is un-geared, limited to shares in the FTSE 100 and therefore accepts no greater risk than buying the relevant underlying stock.

  5. Example Share ABC is trading at 320p Client writes (sells) 1 Jan 300 put at 10p (assuming the obligation to take delivery of 1,000 shares at 300p, if the holder exercises his right to sell) If ABC is trading above 300p at Jan expiry : The option becomes worthless and premium received is £100 (1 contract x 1000 shares x 10p) If ABC is trading below 300p at Jan expiry : The option would be assigned resulting in a share purchase by the client at an effective price of 290p (300p – 10p premium)* *please note it is possible, albeit unlikely, that the option buyer may exercise his right to sell to the client before the expiry date of the contract.

  6. Effect Should the option ABC not be assigned, the asset manager will repeat the process by writing further put options either in ABC or another relevant stock. If the option is assigned, the client will own the underlying shares. In this instance, the asset manager will write (sell) call options above the current price with the intention of selling the stock at a higher price and receiving premium. The mechanics of this work in exactly the same way as writing puts but with a view to selling shares, at higher levels than the prevailing prices.

  7. Results Account Value as at: 3rd Feb 2006 = £50,000 30th Sep 2011 = £56,800 This represents an increase of 13.60%, net of costs, over five and a half years. In the same period the FTSE has fallen by nearly 11% Please note: The following results have been independently verified by CPA Audit up to and including the figures for 30th September 2011.

  8. Performance of the Berkeley Option Writing Managed Account compared to the FTSE 100

  9. Detailed Results The above results include all returns and fees including commissions, stamp duty, interest and dividends E&OE

  10. Note to investors: The Berkeley Option Writing Managed Account is aimed at investors who are looking to increase the income from their portfolio or feel the market is within a contained trading range. It is not a strong bull market trading strategy. Risk Warning Please note that equities and options are areas of investment in which it is possible to lose money. Investing in any of the products mentioned may not be suitable for you and if you are in any doubt you should consult your financial adviser. Past performance is no guarantee of future results. Berkeley Capital Management is a trading name of Berkeley Futures Limited which is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange and The Futures and Options Association. This communication is identified as a  'Marketing Communication' and has not been prepared in accordance with  the legal requirements designed to promote the independence of independent research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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