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City Financial Investment Company Limited (City Financial) is pleased to announce that it has successfully completed the acquisition of two top performing multimanager funds from Neptune Investment Management Limited (Neptune), at the same time securing the services of the existing fund management team at North Investment Partners Limited (North).

The acquisition underlines the rapid development and emergence of City Financial as a provider of high quality investment management services to UK investors. The opportunity for the acquisition arose from Neptune’s decision to focus on the further development of its thriving core business, being its broad range of single strategy funds, (a business that is attracting strong and consistent fund flows, with AUM doubling in the last nine months) and the earlier announcement (24 October) of the MBO of multimanager subsidiary North from Neptune. The two funds will be transferred to City Financial with effect from 21 December 2007.

To reflect the change, the funds will be renamed:

• City Financial MultiManager Income Fund (formerly Neptune MultiManager Income Fund)*
• City Financial MultiManager Growth Fund (formerly Neptune MultiManager Growth Fund)**

The funds will continue to be managed by the highly rated fund manager John Husselbee of North Investment Partners, who already manages the City Financial Diversified Absolute Return Fund and the City Financial UK Select Alpha Fund. For investors in the funds, no material changes will result as the investment objective of the funds, the manager and the annual management charge all remain unchanged. Furthermore, investors will incur no costs or tax liability as a result of the change.

Robert Hain, Chairman of City Financial, stated:

“This is a very important development for City Financial and the MultiManager funds. It is a story of continuation – the continued growth and development of the MultiManager Income and Growth funds, under John Husselbee’s continuing management. The acquisition also signals City Financial’s commitment to the growing multimanager sector, which is demonstrating investment innovation and excellence and is delivering value to investors and their advisers. John has an enviable reputation among multimanager experts and we are delighted to be able to expand our relationship with John.”

John Husselbee said:

“We are delighted that City Financial will continue to employ the services of North, as fund manager, for these two new additions to their multimanager range. The two funds have enjoyed top decile performance during our three years as fund manager and we are looking forward to working with City Financial to ensure these high levels of returns continue to be delivered to clients. City Financial is an exciting company, fully committed to multimanager and we are pleased to have the opportunity to work with them in building a successful multimanager business.”

Robert Warner, Finance Director of Neptune Investment Management, commented:

“This transaction allows Neptune to focus on its thriving core business, and provides the investors in the two multimanager funds with the continuity they deserve. The management of multimanager portfolios is an area of real growth for City Financial, but is a business that does not fit well with the Neptune model. We wish City Financial continuing success in building its presence in this growing market.”

* Size of Neptune MultiManager Income Fund: £17 million, as at 16 November 2007

** Size of Neptune MultiManager Growth Fund: £79 million, as at 16 November 2007

Should you have any questions regarding this transfer please contact us for more information.