Q1. Why Scottish International Fund Managers?

A. Scottish International Fund Managers (SIFM) has established itself as a key provider of capital protected investment products. Based in the Isle of Man, SIFM offers a range of innovative sub-funds within an open-ended investment, known as The Scottish Capital Protected Fund plc.

Q2. What are the advantages of investing offshore?

A. The Scottish Capital Protected Fund plc is based in the Isle of Man. This means that the investment grows free from taxation - and the investment is tax-efficient in many other respects. Please note however, that the value of tax benefits depends on individual circumstances and can change. UK investors may be liable to tax on withdrawals from the fund, which would have the effect of reducing the returns shown in any past performance information.

Q3. Why the Isle of Man?

A. The Isle of Man is an offshore centre with an outstanding reputation for investor protection, due to the comprehensive legislation enforced by the Isle of Man Government Financial Supervision Commission which provides an unparalleled level of investor security.

Q4. What is The Scottish Capital Protected Fund plc?

A. The Scottish Capital Protected Fund plc is an offshore umbrella fund providing returns linked to the performance of the world's major stock markets and allows investors to determine their level of capital protection each quarter. Anyone (excluding Isle of Man and US residents) aged over 18 years can invest and the investment may be held in US dollars, sterling or euro. Investments may be made by individuals (either on their own or with someone else), companies or trustees. The investment should be viewed as a medium to long-term commitment.

Q5. What sub-funds are available under The Scottish Capital Protected Fund plc?

A. At present, the sub-fund range includes:

Protected Multi Index sub-funds – these innovative sub-funds enable investors to benefit from the growth potential of a portfolio diversified between the world’s four largest markets by capitalisation, the UK (FTSE 100), the US (S&P 500), Japan (Nikkei 225) and Europe (EURO STOXX 50).

Protected Europe Index sub-funds – allows investors to share in the potential growth of some of Europe’s strongest companies as measured by the EURO STOXX 50 index.

Protected UK Index sub-funds – these funds enable investors to share in the potential growth of the FTSE 100 index.

Protected US Index sub-funds – share in the growth potential of the US stock market as measured by the S&P 500 – which includes some of the world’s largest corporations.

Protected Japan Index sub-funds – share in the growth potential of the Japanese stock market as measured by the Nikkei 225 index, with a defined level of capital protection.

Protected Deposit Bonus sub-funds - paying a predetermined bonus each quarter in which neither the FTSE 100 or S&P 500 indices fall.

protected.com - share in the growth potential of technology as measured by the Nasdaq-100 stock market.

Protected With Bonus sub-funds - a range of funds offering 95% capital protection each quarter (and, from December 2002, funds with 100% capital protection each quarter) along with predetermined bonuses linked to major global stock market indices. There are five funds based on a single index:

• UK - based on the FTSE 100
• US - based on the S&P 500
• Japan - based on the Nikkei 225
• Europe - based on the EURO STOXX 50
• protected.com - based on the Nasdaq-100

There are also two diversified funds:

• Multi Index - linked to the UK, US, Japan and Europe
• Worldwide - linked to all five of the above indices

Protected Cash Bonus sub-funds - this is a managed fund of bank and building society deposits providing complete capital security and a competitive rate of return.

Q6. What are the charges?

A. There is an initial charge of 7% deducted from your investment.

The sub-funds are also subject to an annual management charge equal to 1.25% of the value of your investment each year.

Q6. What is the minimum investment?

A. The minimum investment is USD 8,000, GBP 5,000 or EUR 8,000 and there is no maximum. Additional investments of at least USD 4,000, GBP 2,000 or EUR 4,000 may be made at any time.