Unicorn UK Income Fund October 2014 Fund Objective To deliver a gross yield at least 10% greater than the yield produced by the FTSE All Share Index. Unicorn Asset Management Limited (Unicorn) is an independent, specialist fund management group, established in July 2000 and majority owned by its directors and employees. Rank Financial Express Rank 1/49 from launch to 30 September 2014 Unicorn focuses on long term, long only, investment in UK quoted companies and aims to achieve superior absolute returns through the application of Fund Commentary The UK Income Fund recorded a total return of -3.8% in September, underperforming the UK traditional, fundamental principles of investment. Equity Income sector total return by -1.9%. Marshalls (+6.5%) made the largest positive contribution to performance during the month as its share price benefitted from continued momentum following the release of a positive trading update at the end of August. There were also notable positive contributions from the stock broking firms; Cenkos Securities (+9.2%) and Numis Corporation (+4.4%). In contrast, UK Mail Group's shares fell by over 20% after the company reported that it had experienced softer than expected trading conditions during the summer months. Despite this setback, we remain confident that prospects for UK Mail remain strong, given the company's opportunity to grow market share in a fast evolving sector. The share price of Low & Bonar (-24.7%) also fell sharply after the company announced a drop in demand from its European civil engineering customers. The Fund's holding in Brammer was sold during the month and a partial disposal was made in Electrocomponents. A number of positions were added to, including Telecom Plus, GLI Finance, Macfarlane Group and Conviviality Retail. Cumulative Performance YTD 1 Year 3 Year 5 Year Since Launch -3.6% 2.7% 77.3% 138.9% 240.0% 91/93 0.9% Sector Average Source: Financial Express (Using bid to bid market value, total return) 90/93 7.4% 4/88 51.5% 1/79 63.6% 1/49 121.3% UK Income Rank Discrete Performance UK Income 2013 2012 2011 2010 2009 40.0% 4/107 33.4% 1/104 -4.9% 62/97 36.8% 1/93 55.9% 1/80 13.5% -3.1% 14.5% 22.7% Rank Sector Average 24.8% Source: Financial Express (Using bid to bid market value, total return) Fund Performance - Since Launch Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the full amount of their original investment. Unicorn UK Income Fund October 2014 Top 10 Holdings Marston's Interserve BBA Aviation Berendsen Premier Farnell 4.6% 4.4% 4.3% 4.2% Sector Breakdown Support Services Other Financial Services Travel & Leisure Industrial Transportation 4.2% 3.9% 3.7% 3.4% Cash Construction & Materials General Industrials Real Estate Investment Trusts 4.6% RPC Group Cineworld Group Electrocomponents Brewin Dolphin Hill & Smith Total 3.1% 40.4% Fund Facts Fund Managers Fund Size Launch Date Fund Sector UK Equity Income 46 10:00 Daily ISAs/JISAs Dividend Dates Available EX-Div: 31/3, 30/9 Sharpe Information Ratio 4.8% 100.0% 1yr Overseas 'O' Retail 'A' Institutional 'B' 2.50% 5.50% 5.50% 1.50% 0.75% 1.50% 3.89% 3.87% 0.37% GB00B00Z1S94 GB00B00Z1R87 GB00BJTMQB29 - Accumulation GB00B9XQFW49 GB00B9XQFY62 GB00BJTMQ909 B00Z1S9 B00Z1R8 BJTMQB2 Sedol Code - Income B9XQFW4 B9XQFY6 BJTMQ90 - Accumulation UNIINKA UNIINKB UNUKIOI Bloomberg - Income UNIINAA UNIINBA UNUKIOA - Accumulation MEX ID - Income U2INA U2INB U2AAAG - Accumulation Initial Investment Beta 8.2% 6.9% 5.3% 5.2% Industrial Engineering Total Initial Charge Annual Charge Historic Yield ISIN Code - Income Payment: 31/5, 30/11 Volatility Alpha 14.8% 11.7% 10.6% 8.6% Share Class Information Fraser Mackersie Simon Moon £607m 24th May 2004 Number of Holdings Pricing Risk Ratios 23.9% 3 yr 9.57 3.57 -4.51 11.85 0.80 0.00 0.59 2.21 -0.89 0.94 U2RTAC £2,500 U2RTAD £100,000 U2AAAB £10,000 How to buy the Fund: The fund is available through a number of distributors including 7IM HL Vantage Alliance Trust James Hay Ascentric/Funds Direct Aviva AXA Elevate Novia Nucleus Pershing Nexus Funds Bestinvest Charles Stanley Direct Transact Skandia Investment Solutions Cofunds Fidelity Funds Network Standard Life Fundzone All figures within this factcheet have been calculated with reference to 30 September 2014 Authorised and regulated by the Financial Conduct Authority. The information should not be construed as an invitation, offer or recommendation to buy or sell investments, shares or securities or to form the basis of a contract to be relied on in any way. Unicorn Asset Management Limited provides no guarantees, representations or warranties regarding the accuracy of this information. No third party liability is accepted by Unicorn Asset Management Limited, its directors and employees, or its affiliates and their directors, in respect of errors and omissions, other than under the duties and liabilities of the Financial Services and Markets Act, 2000. Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the full amount of their original investment. You should not invest unless you are prepared to accept a high degree of risk. Taxation levels, benefits and reliefs may all vary depending on individual circumstances and are subject to change. Investing in smaller companies, including AIM companies, can carry greater risks than those usually associated with large capitalisation companies. Smaller companies are likely to be less established and may not have access to the financial resources available to their larger counterparts. The shares of smaller companies are relatively illiquid and under-researched. Fact sheet issued by: Unicorn Asset Management Limited Preacher’s Court The Charterhouse Charterhouse Square London EC1M 6AU Telephone: 020 7253 0889 Fax: 020 7251 4028 Email: [email protected] Website: www.unicornam.com Dealing Helpline: 0845 026 4287