KINGATE EURO FUND

August 2008

NAV
August 2008 (Final) July 2008 (Final) 173.92 171.95

Cumulative Performance - January 1996 August 2008

300.00%

250.00%

RETURN
August 2008 (Final) July 2008 (Final) Year to Date 1.15% 1.03% 5.48%
200.00% 1 50.00%

1 00.00%

AUM (Euro mn)

August 2008 645

50.00%

0.00%

Strategy
Kingate Euro seeks to obtain capital appreciation through a non-traditional stock/options trading strategy. Typically, the strategy entails the purchase of 45 to 50 large-cap S&P 100 stocks and the simultaneous sale of out-of-the- money calls on the S&P 100 Index and the purchase of out-of-the-money or at-the-money puts on the S&P 100 Index. The strategy aims to limit losses when stock prices decline while still affording an upside potential that is capped to the strike price of the short call when stock prices rise. The long put/short call position constitutes a "synthetic" short of the market, which provides a hedge against the long stock positions. The assets in the portfolio are denominated in US Dollars, but all exposure of US Dollars to Euro is eliminated by passive hedging with USD/Euro forwards.
-50.00%

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Kingate Euro Fund JP M organ Global Govt. B ond Index Euro Hedged

S&P 500 (Euro Hedged) HFRI Equity M arket Neutral (Euro Hedged)

Analysis of Returns January 1996 August 2008*

Kingate Euro Fund 1 Month Return YTD 2008 Return 3 Year Return 5 Year Return Since Inception Ann. Return Ann. Std. Deviation Ann. Sharpe Ratio Avgerage Monthly Return Largest Monthly Return Worst Monthly Return Number of Positive Months 1.15% 5.48% 26.14% 43.43% 240.13% 10.15% 2.60% 2.38 0.81% 3.36% -0.37% 92.76% S&P 500 (Euro Hedged) 1.38% -11.75% 1.98% 23.76% 91.94% 5.28% 14.60% 0.18 0.52% 9.46% -14.69% 59.87% JP Morgan Global Govt. Euro Hedged 1.40% 3.49% 9.01% 21.74% 98.06% 5.54% 2.99% 0.97 0.45% 2.23% -1.97% 72.37% HFRI Equity Market Neutral (Euro Hedged) -1.35% 0.81% 11.30% 23.25% 118.72% 6.37% 3.02% 0.89 0.52% 3.51% -1.78% 78.95%

Augus t Commentary
Kingate Euro closed the month of August with a gain of +1.15% after fees. It has returned +5.48% net year to date. The S&P 100 Index hedged into Euros rose 1.35% in August, and is now down -13.35% so far for 2008. The fund started the month of August approximately 40% invested in the typical basket of S&P 100 Index stocks, long the related S&P 100 Index puts and short S&P 100 Index calls, with the rest of the portfolio invested in Treasury bills. In the second week of September, approximately another 20% of the portfolio was invested (long basket of stocks, long S&P 100 Index put, short S&P 100 Index calls). The balance of the portfolio continued to be invested in Treasury bills. At the options expiration date, the August put and call options were rolled into September maturities. No further trading was done, and the portfolio ended the month approximately 62% invested, with the balance invested in Treasury bills. In August, the basket of common stocks and calls provided the majority of the gain in the portfolio. Other contributors included modest gains on Treasury bills, dividends and a small foreign exchange gain due to hedging. Puts detracted slightly from performance this month.

* Performance figures for the S&P 500 (Euro hedged) and HFRI Market Neutral (Euro Hedged) (benchmarks) from January 31, 1996 to December 31, 1999 have been hedged into Deutschemarks. From January 31, 2000 the performance figures of the benchmarks have been hedged into Euros.

Historical Net Returns*

Jan 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1.37 3.30 0.84 2.20 2.26 2.15 -0.04 -0.34 0.95 0.53 0.62 0.21 0.67 Feb 0.29 0.54 1.26 -0.05 -0.20 -0.08 0.64 0.03 0.56 0.21 -0.13 -0.16 -0.04 Mar 1.56 0.98 1.88 2.62 1.87 1.24 0.72 2.28 0.09 0.94 1.41 1.49 0.33 Apr 0.11 3.00 0.15 0.20 0.06 1.26 0.96 0.05 0.43 0.09 0.86 0.88 1.08 May 2.54 0.85 1.92 1.64 1.20 0.31 2.55 0.92 0.69 0.63 0.53 0.59 0.86 Jun -0.11 1.86 1.23 1.92 0.59 0.23 0.26 1.17 1.56 0.37 0.51 0.53 0.28 Jul 1.37 0.53 0.61 0.20 0.46 0.35 3.36 1.72 0.08 0.04 1.08 0.18 1.03 Aug 0.59 -0.37 0.05 0.82 1.23 1.12 0.50 0.22 1.53 0.04 0.55 0.25 1.15 Sep 1.15 2.34 0.59 0.51 0.00 0.69 0.20 1.03 0.48 0.93 0.64 0.95 Oct 1.83 0.05 1.84 0.84 0.91 1.47 0.77 1.41 0.02 1.75 0.29 0.31 Nov 1.17 1.71 0.87 1.65 0.63 1.40 0.07 -0.16 0.80 0.54 0.53 1.21 Dec 0.35 0.25 0.15 0.09 0.19 0.23 0.19 0.35 0.24 0.48 0.78 0.17 Year 12.89 16.03 11.98 13.35 9.56 10.85 10.60 8.99 7.67 6.74 7.94 6.80 5.48

* Kingate Euro Fund was denominated in Deutschemarks from the date of launch (January 1, 1996) until December 31, 1999. Actual DM Net Asset Values have been converted into Euros at the accession rate of Euro 1.00 = DM 1.955830

Additional Information
Bloomberg: ISIN: Swiss Value: KINEURI VI VGG525601024 1079790

Summary of Terms
Minimum Investment Euro 250,000 Redemption Notice Annual Fees Management: 1.50% Auditors PricewaterhouseCoopers Subscriptions Monthly Custodian The Bank of Bermuda Ltd Redemptions Monthly Administrator CITI Hedge Fund Services Ltd

Additional Information may be obtained by contacting: Kingate Management Limited (Manager) Tel: +1 (441) 296 2888 Email: info@kingate.bm FIM Advisers LLP (Consultant) Tel: +44 (20) 7389 8900 Email: FIMClientservice@fim-group.com

35 days

This document has been prepared by Kingate Management Limited. This document is for illustrative purposes only and does not form part of any fund(s) information memorandum (or alike), and does not constitute investment advice. It does not form part of any offer or solicitation to sell or buy any fund's shares and should not be relied on for the purpose of making an investment in them. The information and opinions contained in this document have been compiled, or arrived at, in good faith and from sources believed to be reliable as at the date of publication, but no representation or warranty, express or implied, is made as to reliability, accuracy, completeness or correctness. Past performance is not necessarily a guide to future results. There is a significant risk that investors will lose all of the money or other property invested. The price of any fund's shares and any income from them may fall as well as rise. When an investment involves a foreign exchange transaction (i.e. an investment denominated in a currency other than the investors base currency), it may be subject to fluctuations in currency values and the value of such investment may go down as well as up. The complete and proper name of the fund is Kingate Euro Fund, Ltd. The registered address for the fund is: c/o Bison Financial Services Limited, Bison Court, P.O. Box 3460, Road Town, Tortola, British Virgin Islands. Kingate Management Limited 2008

Kingate Management Limited

Jul-08