VHF Prospectus Jun15

VANTAGE HORIZON FUNDINTRODUCTIONVantage Horizon Fund (the "Fund") was incorporated as an international business company in the British VirginIslands on June 30, 1998 in order to capitalise on the remarkable long-term value believed to be emerging in theshares of major corporations based in the crisis economies of Asia. The Fund was formed with a three-yearinvestment horizon, after which, with the Far East opportunity exploited, the Directors resolved to re-launch theFund as a global hedge fund. With the consent of all continuing shareholders, the Fund changed its investmentapproach as of 1 February 2001 to operate from that date forward as a global hedge fund with the continuingobjective to achieve for its investors substantial capital appreciation without regard to short-term volatility. InJanuary 2005 the Fund was transferred from the BVI to the Cayman Islands by way of continuation, and itsregistered office was moved to the offices of UBS Fund Services (Cayman) Ltd. in order to enhance the efficacy of theFund’s administration.The Fund operates as a global hedge fund, seeking to profit from investments, both long and short, in marketablesecurities, commodities and derivatives. The Fund is managed by Vantage Investment Management Limited (“theManager”), in turn advised by Vantage Investment Advisory Limited (“the Advisor”).The Fund has two classes of shares:Founders’ Shares owned by Vantage Holdings Limited, a company based in Mauritius. Founders' Shares have onevote per share but do not participate in the investment gain or loss of the Fund. Founders' shares are redeemable atpar value, when all the Fund Shares have been redeemed.Participating Shares, offered on a private basis to a limited number of sophisticated investors. Participating Shareshave no voting rights except on matters affecting the rights of shareholders but participate fully on a pro-rata basisin any gain or loss of the Fund.INVESTMENT OBJECTIVE AND APPROACHThe Fund's investment objective is to achieve for its investors substantial capital appreciation over the medium-termwithout regard to short-term volatility. The Manager of the Fund attempts to exploit both significant under andover-valuation which occurs from time to time in global investment markets.EquitiesThe Advisor has developed computerised research systems that assist it in its search for significant under and overvaluation in global equities, by effectively screening the shares of over 16000 major corporations around the world.These corporations represent the vast majority of companies whose market capitalisations exceed US 250m andwhose shares trade more than US 1m per day on average.From this screened subset of statistically attractive or unattractive securities, the Advisor conducts further researchinto specific companies, with a view to recommending the purchase or short-sale of particular shares. The Advisor’sadvice assists the Manager in selecting a portfolio of shares, both long and short, chosen for their significant underor over valuation, and for the appropriateness of each selection from the perspective of overall portfolio risk. TheManager seeks to enhance the return and lower the volatility of the Fund by selling short the shares of companieswhich are significantly overvalued, and which the Manager believes are particularly vulnerable.The Manager will invest the Funds assets principally in a portfolio of long and short equities, with the aim ofmaximising absolute returns for the Fund. In seeking to maximise absolute returns, the Fund will also use equityindex futures to manage overall equity exposure, in particular when seeking to hedge out net equity marketexposure when equity markets are considered vulnerable.CurrenciesThe Manager will actively manage the currency exposures of the Fund independently of its investment exposures.Using a combination of macroeconomic analysis, interest rate forecasts, purchasing power parity analysis, andexchange rate technical analysis, the Manager seeks to determine appropriate currency exposures for the Fundrelative to its 100% US dollar benchmark. The Manager seeks to generate incremental US dollar returns for the Fundthrough this active currency management.PROSPECTUS3

VANTAGE HORIZON FUNDCommoditiesThe Manager believes that, from time to time, considerable value can be added to the Fund by exposure tocommodities. The Manager may seek to buy or sell short commodities with a view to augmenting the Fund’sabsolute returns as well as reducing its volatility.Fixed Interest SecuritiesThe Manager may also seek to generate absolute returns by buying or selling fixed interest securities and interestrate futures, when these securities appear to offer significant opportunities.Financial LeverageThe Manager may from time to time seek to enhance the Fund’s returns by leveraging the Fund’s investments.INVESTMENT RESTRICTIONSThe Fund attempts to exploit both significant under and over-valuation, which may occur from time to time inglobal investment markets. To this end the Fund is empowered to sell securities it does not own (sell short), to usederivatives, and generally to enjoy freedom of investment action subject to the following Investment Restrictions.1.2.3.4.5.6.7.8.Margin deposits relating to commitments taken on futures purchase and sale contracts, and call and put optionswritten may not exceed 70% of the net assets of the Fund, the balance of 30% representing a liquidity reserve.The Fund may only enter into futures contracts dealt in on an organised market. Futures contracts underlyingoptions must also comply with this condition.The Fund may enter into commodity contracts other than commodity futures contracts, provided theaggregate full market value exposure to such commodity contracts does not exceed 40% of the net assets of theFund. In addition, the Fund may, for cash consideration, acquire precious metals which are negotiable on anorganised market.The Fund may only acquire call and put options which are dealt in on an organised market. Premiums paid forthe acquisition of options outstanding are included in the 70% limit provided for under the first paragraphabove.The Fund must ensure an adequate spread of investment risks by sufficient diversification.The Fund may not hold an open forward position in any one futures contract for which the margin requirementrepresents 5% or more of net assets. This rule also applies to open positions resulting from options written.Premiums paid to acquire options outstanding having identical characteristics may not exceed 5% of net assets.The Fund may not hold an open position in futures contracts concerning a single commodity or a singlecategory of financial futures for which the margin required represents 20% or more of net assets. This rule alsoapplies to open positions resulting from options written.If the Manager becomes aware of any contravention of the Investment Restrictions that was within the Manager’sown control, the contravention will be rectified forthwith. If the Manager becomes aware of a contravention thatwas beyond its control, the contravention will be rectified as soon as practicable in the interests of Members, and notmore than six months from its identification.RISK FACTORSWhile not purporting to be a fully comprehensive description of the risks associated with an investment in the Fund,prospective investors should consider the following risk factors:Investment markets – some of the markets in which the Fund invests are subject to a high degree of volatility andtherefore the Fund’s performance may be volatile and there can be no assurance that the Fund’s investmentobjectives will be realized or that Shareholders will receive any return on their investment.Short selling, options and futures – the Fund’s investment strategy includes short selling and trading in optionsand futures. Such investments can be extremely volatile and may substantially increase the impact of adverse pricemovements on the Net Asset Value of the Fund.Leverage - the Fund may leverage its capital by pledging its securities in order to borrow additional funds forinvestment purposes and it may leverage its investment return with options, short sales, forwards and other4PROSPECTUS

VANTAGE HORIZON FUNDderivative instruments. While leverage presents opportunities for increasing the Fund’s returns, it also increases theFund’s potential losses. The cumulative effect of the use of leverage by the Fund in markets that move adversely tothe Fund’s investments could result in a substantial loss to the Fund which would be greater than if the Fund werenot leveraged.Diversification - while the Manager seeks to diversify the Fund's investments as it deems appropriate andconsistent with the Fund's investment objective, the amount that the Fund may invest in a particular security is notsubject to any specific restrictions. If the Fund's investment portfolio is concentrated in a small number ofinvestments, the portfolio may experience a greater level of volatility.Counterparty risk – the Fund is exposed to counter party risk to the extent that it enters into forward and futurescontracts, and the non-performance of a counter party may have a material negative impact on the Fund’s valuation.Should the Manager, on balance prove to be unsuccessful in selecting profitable investment opportunities, theFund’s Net Asset Value will decline, and it is possible that under extreme circumstances, investors may lose theirentire subscribed capital. An investment in the Fund is suitable only for sophisticated investors who fullyunderstand and are capable of assessing the risks of such an investment. The Fund is not recommended for riskaverse investors, and it is suggested that the Fund forms only a small proportion of any investor’s net assets.FUND VALUATIONThe Fund’s value is calculated each week, based on the valuation of its underlying assets and liabilities pertaining asof the close of business on each Wednesday or at such other time as the Administrator with the approval of theDirectors shall determine (termed the Valuation Day). All subscriptions and redemptions are based on the Fund’sNet Asset Value per Share, determined by the Administrator at values pertaining as of the close of business on theValuation Day. The Fund’s value is calculated by the Administrator on the first Business Day in the Cayman Islandsafter the Valuation Day (termed the Calculation Day).NET ASSET VALUEThe Net Asset Value per Share is expressed in US dollars and is determined by dividing the net assets of the Fund bythe number of shares in issue on the Valuation Day, excluding any subscriptions or redemptions scheduled for thatValuation Day. The net assets of the Fund comprise the principal aggregate of all the investments owned orcontracted to be purchased by the Fund at their closing prices in their markets as of the Valuation day, plus anycash, bills, accrued interest, or other property of any kind as defined from time to time by the Directors, from whichare deducted the management, custodial and administrative expenses, the value of any investments contracted to besold, the aggregate amount of any borrowings, any interest or other charges, or other liabilities of any kind asdefined from time to time by the Directors.PROSPECTUS5

VANTAGE HORIZON FUNDPERFORMANCEThe performance of the Vantage Horizon Fund since inception to 31 March 2015, as well as that of the MSCI WorldTotal Return Index (MSWI, which includes income) and of the Risk Free Return as defined by investing in 6 monthUS Treasury Bills, all re-based to 100 on the Fund’s inception date of 31st July 1998, is presented below:VANTAGE HORIZON FUND, US RISKFREE RATE, WORLD INDEX7/4/15600500400VANTAGE HORIZON300MSCI WORLD INDEX200RISK FREE (6M US e: D ATASTREAMPercentage Returns in US Dollars up to 31 March 2015Year to31 March 2015Inception (4) to31 March 2015CAGR (5)Vantage Horizon1.3%371.2%9.7%MSWI (1)2.5%134.9%5.3%Risk Free (2)0.0%46.5%2.3%Value Added Return (3)1.3%221.7%7.3%Key to Performance Table(1)MSWI is defined as the MSCI World Total Return Index including income(2)Risk Free is defined as the return generated from investing in 6 month US Treasury Bills(3)Value Added Return is defined as the incremental return earned by the Fund after deducting all expensesand Fees including the Manager’s Performance Fee, relative to the return that would have been derivedfrom investing all the Net Assets of the Fund in Risk Free Securities(4)Inception date 31st July 1998.(5)CAGR - Compound Annual Growth Rate since inceptionPROSPECTUS6

VANTAGE HORIZON FUNDSUBSCRIPTIONS AND REDEMPTIONSSubscriptions and Redemptions take place on a weekly basis as of each Valuation Day, provided the relevantsubscription or redemption instructions are received by the Administrator by 4:00 p.m. Cayman Islands time on theValuation Day. Subscriptions and Redemptions are priced at Net Asset Value per Share less any accruedPerformance Fees, and plus the Subscription Transaction Charge (as defined below) or less the RedemptionTransaction Charge (as defined below).A Subscription Transaction Charge is levied on subscriptions, and retained by the Fund for the benefit of existingFund shareholders, to cover the cost of investing the moneys received. The Subscription Transaction Charge isdetermined by the Directors to reflect the transaction cost of investing in the underlying investments of the Fund.A Redemption Transaction Charge is levied on redemptions and retained by the Fund for the benefit of continuingFund shareholders. The Redemption Transaction Charge is determined by the Directors to reflect the transactioncost of realising the moneys to be paid out from the underlying investments of the Fund.The Transaction Charge, which is determined with reference to the underlying investment portfolio, is currently setat 0.30% of the Net Asset Value per Share at date of the Prospectus, and will be reviewed periodically by theDirectors and adjusted to reflect the actual transaction costs experienced by the Fund.There is no Initial Charge payable on investing in the Fund. This ensures that the maximum proportion of eachamount invested is put to work for the benefit of the investing Member. However, in order to discourage short-termtrading in the Fund, that might disadvantage long term investors in the Fund, the Directors reserve the right toreintroduce an Early Redemption Charge for new subscriptions after notification of the reintroduction of this charge.In such an event, the Early Redemption Charge would be levied on all Shares sold within one year of purchase,reducing to zero at the end of the first year, and would be retained by the Fund for the benefit of remainingMembers.MINIMUM SUBSCRIPTION AND REDEMPTIONThe minimum subscription is US 100,000 (one hundred thousand United States dollars). The minimum redemptionis US 1,000 (one thousand United States dollars), subject to maintaining a minimum subscribed capital ofUS 100,000 per Fund Shareholder. Any redemption that would cause a Fund shareholder’s subscribed capital to fallbelow the US 100,000 minimum will require a complete redemption of the shareholder’s position.MAKING A SUBSCRIPTIONInvestors wishing to subscribe for Shares in the Fund should send by 4:00 p.m., Cayman Islands time, on theValuation Day: The subscription amount in payment for their investment. Payment should be made by telegraphic transfer tothe Administrator’s US dollar correspondent - a Telegraphic Transfer Authority with the relevant account detailsis attached at the back of this document A completed Application Form which may be sent to the Administrator by post, or to expedite matters, byfacsimile or email.Neither the Fund not the Administrator accept any reposnsibility for any loss arising from the non-receipt by theAdministrator of any Application Form sent by facsimile transmission.REDEEMING SHARES IN THE FUNDMembers may redeem part or all of their Shares at the Redemption Price provided the redemption instruction isreceived by the Administrator by 4:00 p.m., Cayman Islands time, on the Valuation Day.Partial redemption of a Member’s Shares is permitted in amounts of at least US 1,000, provided that suchredemption would not cause the Member’s investment to fall below US 100,000 immediately after the redemption.The redemption proceeds will be paid in US dollars, normally on the third Business Day after the Calculation Day.Neither the Fund not the Administrator accept any reposnsibility for any loss arising from the non-receipt by theAdministrator of any redemption instruction sent by facsimile transmission.PROSPECTUS7

VANTAGE HORIZON FUNDTRANSFERRING SHARES IN THE FUNDShares may not be transferred without the consent of the Directors, which consent may be withheld by the Directorsin their absolute discretion. Furthermore, transfers of shares may only be conducted in accordance with the antimoney laundering policies and procedures of the Administrator. A transferee will be required to complete anApplication Form and will be subject to the requirements set forth for Eligible Investors in the Fund.TEMPORARY SUSPENSION OF SUBSCRIPTIONS AND REDEMPTIONSThe Directors may suspend the determination of the Net Asset Value per Share of the Fund and consequently maysuspend the right to require the Fund to issue or to redeem any Shares, in any of the following exceptionalcircumstances:1.2.3.4.When trading is closed for a period other than a normal holiday, suspended or restricted in any one or moresecurities markets in which the Fund has significant investment;When as a result of circumstances outside the control of the Fund, the Directors believe that it is not reasonablypracticable for the Manager to dispose of the Fund’s assets without materially prejudicing the interests ofMembers;If it is not reasonably practicable to determine the Net Asset Value of the Shares on an accurate and timely basis;orIf as a result of exchange-control restrictions or other restrictions affecting the transfer of funds, transactions onbehalf of the Fund are rendered impracticable, or if purchases or sales of the Fund’s assets cannot be affected atnormal rates of exchange.Investors applying to subscribe for, or to redeem, will be notified of the imposition and lifting of any suspension,and may withdraw their subscription or redemption application while such a suspension exists. Unless withdrawn,applications to subscribe or redeem will be considered on the first Valuation Day after the lifting of the suspension.FEESINVESTMENT MANAGEMENT FEES AND PERFORMANCE FEESThe Manager’s Fee is determined by the Administrator each week on the Calculation Day and charged to the Fund.It consists of: a Base Fee of 1.5% per annum of the weekly Net Asset Value.a Performance Fee of 15% of the Incremental Value Added, defined as the return achieved above that whichwould have been earned by investing the Fund’s net assets at the 6 month US dollar Treasury rate.On a technical level, the Incremental Value Added is determined as of each Valuation Day as follows: The ValueAdded Return is calculated for the period since the prior Valuation Day as the difference between the return of theFund’s Shares after deducting all expenses other than the Performance Fee, and the return of the Risk Free securitiestaken as invested at US dollar 6 month Treasury rates. The Cumulative Value Added Return is calculated as thecumulation of the weekly Value Added Returns since the Re-Launch Date of the Fund. The Incremental ValueAdded Return is calculated as the difference between the Cumulative Value Added Return on the current ValuationDay and the Cumulative Value Added Return at which the last Performance Fee was charged. The IncrementalValue Added is calculated as the Incremental Value Added Return multiplied by the Net Asset Value of the Fundafter all subscriptions and redemptions on the prior Valuation Day. The Incremental Value Added is taken as zero ifthe Incremental Value Added Return is negative.ADMINISTRATION FEESThe Administrator receives its fees as a direct charge on the property of the Fund. The fees for Administration areset at competitive rates and may be amended from time to time by agreement by both the Fund and theAdministratorOTHER COSTS AND EXPENSESThe Fund bears its other operational costs including the transaction costs of buying and selling the underlyingsecurities, sub-custodian fees, directors’ fees, government charges, legal, accounting and auditing fees, interest onborrowings and costs related to the submission required for UK Reporting Fund Status.PROSPECTUS8

VANTAGE HORIZON FUNDELIGIBLE INVESTORSUnder the Articles of Association of the Fund, investment in the Fund is restricted to non - “United States Persons”.Investment in the Fund is

UBS Fund Services (Cayman) Ltd, P.O. Box 852GT, Grand Cayman, Cayman Islands. Tel: 1 345 914 1000 Fax: 1 345 914 4060 Email: SH-UBS-Cayman-VantageFunds@ubs.com Auditor BDO (Cayman Islands) , PO Box 31118 2nd Floor, Building 3 Governors Square, 23 Lime Tree Bay Avenue, Grand Cayman KY1 1205, Cayman Islands