© 2013 Hilltop Fund Management LLP | Regulated and authorised by the Financial Conduct Authority | +44 (0)20 7788 7799 | www.hilltop.co.uk 1

Underlying Portfolio fund* Headline strategy weightingRDC Equity derivative arbitrage 10.4%ATP Equity long/short non-directional 9.6%SAC Volatility arbitrage 8.6%RAB Tradefinance 8.3%CRA Equity long/short non-directional 8.2%FJE Activist credit 7.8%PGD Equity long/short non-directional 7.6%LOP Long/short convertibles 6.7%NNM Long/short dividend futures 6.7%SEK Activist micro-cap equity 5.5%CBK Volatility arbitrage 5.4%TCC Equity long/short non-directional 4.9%IAH Fixed income arbitrage 4.4%TEM Long/shortmortgages 3.7%WTH Long/shortcommodity 3.5%FSP Relativevaluecommodity 3.3%SUT Long/short commodity equities 2.8%COK Macro volatility 2.6%* Codes for internal use only

The Hilltop Decorrelated FundDelivering decorrelated returns in a highly correlated environment

The fund enjoyed a strong month in October gaining 1.2%. In July we wrote about the unusual and frustrating phenomena that plagued us in the first half of the year when month after month the number of losing funds seemed to cancel out the number of winning ones. Our fear was that some would view this repetitive offsetting of winning and losing positions as inevitable; that a portfolio of non-correlated funds is ‘bound to cancel each other out’. However intuitive this may seem, it is incorrect: non-correlated investments, by definition, perform independently of each other (and markets). It has been pleasing, therefore, to see a return to normality over the past 4 months with twice the number of winning to losing positions (a number entirely in line with our Core Select Fund’s 44 month history). Indeed, during that time, there have been just two instances where we had more losing positions than winning ones and both of those were down to our much-discussed (and long since disposed) macro exposure.

Monthly perf (%)* Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2013 -0.8 0.3 0.1 0.5 -1.0 -0.2 0.5 -0.3 1.5 1.2 1.7

2012 1.3 1.2 1.3 1.2 0.5 1.0 0.8 -0.3 0.3 -0.1 -0.3 2.7 9.7

2011 2.6 0.0 0.7 2.8 2.0 1.2 2.2 -0.4 2.0 0.4 3.6 4.2 23.2* Pro forma results are shaded in grey. Results are shown net of all fees and costs assuming a fund size of $20m excluding any redemption fees.

2011 2012 2013-6%

0%

6%

Risk metrics (Jan 2011 – Oct 2013)

High correlation Medium correlation Low correlation2013

-1

0

1

Rolling 24-mth correlation with MSCI

Historical performance

Asset allocation

Liquidity

Portfolio characteristics (Oct 2013)Portfolio snapshot

Monthly (76%)

Quarterly (24%)

R

e d u c i ng

Commodities (5%)Bonds/FI (3%) Mortgages (3%)

Volatility (13%)

Equities (45%)Credit (12%)

Cash (12%)

Lending (7%)

Decor-related Fund*

HFR FoF Composite

HFR Fund Weighted

CompositeMSCI World

Total return 37.4% 6.7% 7.8% 25.2%

Compound annual

11.9% 2.3% 2.7% 8.3%

Annual volatility 4.3% 4.3% 5.4% 14.2%

Max drawdown -1.2% -7.7% -9.0% -20.5%

Sharpe ratio¥ 2.1 -0.2 -0.1 0.4

% positive periods

73.5% 61.8% 64.7% 55.9%

¥Assumesminimumacceptablereturnof3%.

October 2013 1.2%eAn estimate, based on actual results from 2/18 funds and an estimate from 16/18 funds

ISIN: GI000A1J6ZB9 (USD) GI000A1T87X1 (GBP)

Bloomberg: HTDCBC2 TL (USD) HTDHDFS TL (GBP)

Target returns

An average of 10-12% p.a. net of fees over a three-year period

Expected volatility

Less than 5%

Correlation target

A maximum of 0.4 to the MSCI World Index over any three-year period and on average closer to zero

Investment liquidity

75% of AuM invested in funds with monthly redemption or better

Leverage Maximumof33%long-termand10% short-term

Target size $500m

Share class USD and GBP

Fund domicile / type

Gibraltar / Experienced Investor Fund

Minimum investment

$10k if invested via a life wrapper, $ equivalent of €50k if advised by an IFA, €100k if investing directly

Fund liquidity Monthly

Redemption notice

45 days’ notice

Fees Initial fee: none Management fee: 1.75%Performance fee: 10% above HWM with3%trigger Redemption fee: 5% reducing

Fund manager Hilltop Fund Management LLP

Auditors Deloitte, Gibralta

Custodian Royal Bank of Canada

Administrator Helvetic Fund Administration

ContactContactCressida St Aubyn, Investor Relations cressida.staubyn@hilltop.co.uk

Distribution partnerThe Synergy Partnership +60323010930 info@thesynergypartnership.com

© 2013 Hilltop Fund Management LLP | Regulated and authorised by the Financial Conduct Authority | +44 (0)20 7788 7799 | www.hilltop.co.uk 2

Investment approach

To achieve its targets Hilltop adopts a multi-manager approach investing in 12 to 20 underlying hedge fund strategies globally, which we are convinced can deliver decorrelated returns on a sustainable basis. Our aim is to select strategies that are decorrelated to market movements and decorrelated to each other. It is an important feature of our approach that we are not making any ‘macro calls’ and – with rare exceptions – neither are the managers we are investing with. This is partly because we do not believe anyone has an edge in making such calls and partly because even if they did, they would wish to be highly correlated in a bull market

which runs counter to our ambition of being decorrelated at all times (it is entirely possible to be up in a bull market without being correlated). Our preference is for managers pursuing a clearly defined opportunity set and with the requisite investment skills to exploit it. Whilst, on occasion, this could include managers operating in unconventional areas the primary focus is on managers operating in mainstream asset classes (equities, fixed income, FX and commodities) but in unusual and/or distinctive ways. The fund will not invest in managers with less than a 2½ year track record.

This document does not constitute or form part of, and may not be used for the purpose of, an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Shares in the Hilltop Decorrelated Fund (the “Fund”) will not be offered to the general public. This document may not be distributed in any jurisdiction where it is unlawful to do so. A subscription for shares in the Fund may only be made in reliance on the private placement memorandum and relevant supplement of Hilltop Funds PCC Limited by persons who are eligible to subscribe as set out in such documents.

While the information in this document has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Fund or Hilltop Fund Management LLP (“Hilltop”) or by any of their respective members, officers, employees or agents in relation to the accuracy or completeness of the information contained in this document and any such liability is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates, prospects or returns contained in this document. Actual results may vary from estimates.

Hilltop is not acting for any recipient of this document. Hilltop is not responsible to such a recipient for providing protections afforded to clients of Hilltop and Hilltop is not advising such a recipient in respect of investing in Hilltop Funds PCC Limited. Past performance is not a guide to future performance.

The ‘pro-forma’ results in this document are calculated by the retroactive application of a model constructed on the basis of the historical data of the intended underlying fund investments utilised by the Fund at its inception and in the same mix at the launch date of the Fund. There is no assurance that the Fund will be able to invest in the intended underlying funds at launch and/or at the level intended. There is also no assurance that the Fund would have achieved the returns shown prior to August 2012 and the pro-forma returns are shown for illustrative and informational purposes only and should not be construed as an indicator of future performance of the Fund or any other fund managed by Hilltop. Pro-forma returns do not represent actual trading and may not reflect the impact that material economic and market factors might have had on any decision-making if the portfolio were actually being managed. The pro-forma returns also assume that the Fund would have been able to purchase the securities recommended by the model and that the markets were sufficiently liquid to permit this trading. Hilltop has clients other than the Fund and results across clients may differ materially.

Disclaimer