Final Results -14-

+--------------------------------------+---+-------------+--+-------------+--+------------+--+-------------+ 
| Bayerische Hypo-und Vereinsbank AG - |   |      6,135  |  |     20,620  |  |         -  |  |          -  | 
| rated A                              |   |             |  |             |  |            |  |             | 
+--------------------------------------+---+-------------+--+-------------+--+------------+--+-------------+ 
|                                      |   | 20,621,092  |  | 59,855,959  |  | 9,262,635  |  | 59,141,431  | 
+--------------------------------------+---+-------------+--+-------------+--+------------+--+-------------+ 
 
 
The Group is exposed to a loss in investment value, loss in income and increase 
in costs, such as legal fees, if counterparties of their investments fail to 
meet their interest payment obligations. 
The table below shows the fair value of the Group's investments at the end of 
each of reporting period and the rating of those investments (where applicable). 
The fair value approximates to the Group's maximum credit exposure to these debt 
instruments. 
 
 
 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Group                 |   |        2008 |  |        |  |        2007 |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |    GBP      |  |   %    |  |    GBP      |  |   %    | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Syndicated Loans:     |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - B            |   |   9,228,649 |  |  6.6%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB           |   |  47,708,907 |  | 33.9%  |  |  33,978,849 |  | 18.7%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |  56,937,556 |  | 40.5%  |  | 33,978,849  |  | 18.7%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Equity (not rated)    |   |  30,846,948 |  | 21.9%  |  | 113,724,024 |  | 62.7%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Preference Shares     |   |  28,187,503 |  | 20.1%  |  |  17,819,325 |  |  9.8%  | 
| (not rated)           |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| SME Loans (not rated) |   |  13,307,620 |  |  9.5%  |  |   3,692,578 |  |  2.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| CLO1:                 |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - B            |   |   1,556,528 |  |  1.1%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB           |   |   7,415,333 |  |  5.3%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BBB          |   |     609,765 |  |  0.4%  |  |   1,837,250 |  |  1.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |   9,581,626 |  |  6.8%  |  |   1,837,250 |  |  1.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| CDO2:                 |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB           |   |   1,333,447 |  |  0.9%  |  |   5,973,333 |  |  3.3%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BBB          |   |     100,373 |  |  0.1%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB-          |   |          -  |  |  0.0%  |  |   3,674,500 |  |  2.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BBB-         |   |          -  |  |  0.0%  |  |     734,900 |  |  0.4%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |   1,433,820 |  |  1.0%  |  |  10,382,733 |  |  5.7%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| RMBS3:                |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - B            |   |     251,168 |  |  0.2%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - CCC          |   |      11,658 |  |  0.0%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |     262,826 |  |  0.2%  |  |          -  |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   | 140,557,899 |  |100.0%  |  | 181,434,759 |  |100.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Company               |   |        2008 |  |        |  |        2007 |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |    GBP      |  |   %    |  |    GBP      |  |   %    | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Syndicated Loans:     |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB           |   |  32,544,163 |  | 29.6%  |  |  33,978,849 |  | 18.8%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Equity (rating n/a)   |   |  61,365,015 |  | 55.9%  |  | 113,724,024 |  | 62.7%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Preference Shares     |   |  12,786,063 |  | 11.6%  |  |  17,819,325 |  |  9.8%  | 
| (not rated)           |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| SME Loans (not rated) |   |   1,846,289 |  |  1.7%  |  |   3,692,578 |  |  2.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| CLO1:                 |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BBB          |   |     609,765 |  |  0.6%  |  |   1,837,250 |  |  1.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| CDO2:                 |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB           |   |     609,547 |  |  0.6%  |  |   5,973,333 |  |  3.3%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BBB          |   |     100,373 |  |  0.1%  |  |   -         |  |  0.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BB-          |   |   -         |  |  0.0%  |  |   3,674,500 |  |  2.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
| Rating - BBB-         |   |   -         |  |  0.0%  |  |     734,900 |  |  0.4%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |     709,920 |  |  0.6%  |  |  10,382,733 |  |  5.7%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   |             |  |        |  |             |  |        | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
|                       |   | 109,861,215 |  |100.0%  |  | 181,434,759 |  |100.0%  | 
+-----------------------+---+-------------+--+--------+--+-------------+--+--------+ 
 
 
 
 
1Structured portfolio of leveraged loan assets ("CLO") 
2Structured portfolio of debt assets ("CDO") 
3Structured portfolio of residential mortgage assets ("RMBS")