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The WAY Group | Press Release: 4th August 2010 | For immediate distribution

New era in fund management heralded with launch of triumvirate of funds* designed to benefit investors by linking charges to PERFORMANCE.

Win-win for investors - Freestyle Growth Fund boasts radical charging structure - no performance, no fund manager charge.

THREE new investment funds are launched by WAY Fund Managers this month.

The funds promise both a radical departure from traditional fund management charging structures and an opportunity to properly reward investors for market leading performance - and reduce losses if the funds fail to deliver.

First in the August 2010 roll out of new funds is the Freestyle Growth Fund, which is launched with a permanent zero fund manager's charge, along with a zero performance fee until the fund achieves at least 10% each year (see Fig 1 below for charging breakdown). Hard on the heels of the WAY Freestyle Growth Fund, the WAY Absolute Return Fund and WAY Asian Spice fund are also designed to firmly align the WAY Group's interests with those of shareholders in the fund.

Freestyle is to be managed by the WAY in-house investment team, led by Trevor Chanter - with the considerable intellectual input of six members of the WAY Star Chamber (see attached PDF for further details). A 'live' model portfolio run along the lines intended for Freestyle has, over recent months, returned positive numbers each month (Source: WAY Investment Managers Limited July 2010).

The charging structure for the Freestyle Growth Fund - designed in part to reflect investor unease at fund management levied regardless of whether the fund has performed well or not, carries a tiered performance fee commencing at 10% of returns between 10% and 20%. This means that a 20% gross performance will incur an effective fund manager's charge upon the fund of only 1% per annum.

A fee of 15% will be taken on the next 10% tier of performance, with a 25% fee applicable for returns above 30% per annum. These figures apply to the institutional class where there is no trail commission payable to financial advisers. The retail class however carries an additional charge of 0.5% per annum which is paid out to servicing independent financial advisers as trail commission.

"Designed for more sophisticated investors with a degree of appetite for risk, the fund is dedicated to identifying and backing contemporary, diverse performance across all asset classes and geographical sectors in an unstructured manner," said WAY Investment Managers' chairman, Paul Wilcox.

"The model we ran prior to launch had exposure to gold mining companies, currency baskets, listed hedge and absolute return funds, agriculture and forestry funds, along with a life settlement fund to underpin more volatile aspects of the asset spread. Performance has been very encouraging, and it is likely that we will continue with this eclectic spread of assets within the portfolio going forward, as they have been proved to deliver robust performance in volatile market conditions," he added.

The WAY Freestyle Growth Fund will be followed by two further specialist funds, both targeting specific sectors WAY considers to be of paramount importance in the coming years - an Absolute Return Portfolio and an Asian 'Spice' Portfolio.

In common with other highly successful funds such as the stellar-performing WAY Charteris Gold Fund (which has achieved the Number One spot as the UK's best performing investment fund since its launch earlier this year (Source, Professional Adviser, July 2010), both of these funds will be managed by specialist external managers on behalf of WAY Group. They will offer a similar charging structure to the Freestyle Growth Fund.

"These new launches continue our strategy of complementing our global portfolio style funds with a range of contemporary 'satellite' funds with which investors can personalise their 'portfolios' with an additional exposure to the most appropriate investment areas of this decade," said WAY Group Chairman, Paul Wilcox.

"We have recently launched Gold and Green Portfolio funds, which are performing exceptionally well, and these three new funds are targeted to achieve similarly competitive performances," added Wilcox.

"Our test portfolio for Freestyle has performed extremely well and the input of our external Star Chamber members has been very invaluable. We aim to continue this trend going forwards in the live fund," he added.

The WAY Freestyle Growth Fund is a high growth fund aimed at investors who wish to allocate a portion of their portfolio to a more adventurous, non-correlated, 'free' style approach. It is a securities' fund suitable for investment by individuals, ISAs, pension funds, fund of funds and discretionary managers. (For further fund specifics, please see attached PDFs below).

Fig (1) - Charges & Commission for WAY Freestyle Growth Portfolio Fund

1. Initial up to 5.25% (up to 3% commission)
2. Annual nil % - Institutional Share Class
(a) 0.5% - Retail Share Class (0.5% trail commission)
3. Performance Fee
(a) 0 - 10%: nil%
(b) 10 - 20%: 10%
(c) 20 - 30%: 15%
(d) 30+%: 25%
Note: All fees apply on the margin. Thus a 12% positive return would incur a performance fee charge of 10% (12% - 10%) = 0.2%

*
The WAY Freestyle Growth Fund;
The WAY Absolute Return Fund; and
The WAY Asian Spice Portfolio Fund
- will all be launched in August 2010.

– Ends –

Associated Links:

Launch version - WAY Absolute Return Portfolio: Fund Factsheet

Launch version - WAY Asian Spice Portfolio: Fund Factsheet

Launch version - WAY Freestyle Growth Portfolio: Fund Factsheet

Details of WAY Client-centred: Performance Fees

Details of WAY's: Star Chamber

Learn more about WAY's: Specialist Funds

General & Press Enquiries:
Paul Wilcox, Chairman, The WAY Group: 01202 890895 / 07970 891762

Please Note:
This document is not intended to constitute an offer or agreement to buy or sell investments and does not constitute a personal recommendation. The investments and services referred to in this document may not be suitable for every investor and if in doubt independent financial advice should be sought. No liability is accepted whatsoever for any loss howsoever arising from any information in this document subject to the rules of the Financial Services Authority or the Financial Services and Markets Act 2000. Share prices, values and income can go down as well as up and investors may get back less than their initial investment.

The WAY Group | Press Release: 4th August 2010 | For immediate distribution