Exeter Financials Fund

" To provide a high level of income, together with the potential for income and capital growth, by investing in ordinary shares issued by companies in the specialist and other finance sector. The fixed income portfolio invests in preference shares and other fixed income securities issued by financial companies. "

IPO .. 61.5M at 98.5p = £61M, 10.5M zdps at 100p = £11M

29/11/02 shareprice 18 - 22, NAV 42, discount to nav 52%

Next divi 2p , ex divi 11/12/02

debt BOS, redeemable 12/07, £30M, gearing 252, asset/debt ratio 2.2


The Directors have also reviewed the future level of dividends, the income
forecast for 2003 and revenue reserves. Based on these forecasts they expect, in
the absence of unforeseen circumstances, to be able to declare interim dividends
amounting to, in aggregate 4p per share for the year ending 30 November 2003.
This is a forecast of the dividends only and is not intended to be and nor
should it be taken as a forecast of profits.

22 January 2003

Preliminary Announcement of Results for the year ended 30 November 2002
Chairman's Statement

I present the second Annual Report of Exeter Financials Fund Limited. Once again the world's major equity markets have disappointed investors and their falls have had a significant impact on the assets of the Company.

During the year the Company's total assets less current liabilities fell by #22m (after adjusting for the loan repayment, running costs and the introduction of IAS39), equivalent to 23% of the Company's total assets. This compares
to a 20.3% fall in the FTSE Financials Index and a 16.5% fall in the FTSE All-Share Index. The overall fall in the Financials Index masks a substantial movement in certain components of that index.