The Risk FactorsThere are a number of risk factors associated with investing in unquoted companies:

An investment in the Longbow Funds is suitable only for well-informed investors and should be regarded as high risk and long-term in nature. Potential investors are recommended to seek the advice of a financial adviser, who specialises in advising on investments of this type and is authorised under the Financial Services and Markets Act 2000, before applying.

The value of any investment made by EIS Funds may fall or in some cases incur a total loss. Investors may not receive back the full amount invested.

No guarantees can be given as to the investment performance or the level of return achieved from the investments made or that the overall objectives of the
Any Fund will be achieved.

The past performance of investments managed by the Manager should not be regarded as an indication of performance of future investments made by any Fund.

Investment will be in companies whose securities are not publicly traded or freely marketable, therefore realisations of such investments can be difficult and may take considerable time. There may also be constraints imposed on the realisation of investments by reason of the need to maintain the tax status of an investment in the investee companies.

The illiquidity of the market for unquoted securities means that it may be difficult to obtain reliable information in relation to the value of the securities and the extent of the risk to which they are exposed.

Many unquoted companies have small management teams and are highly dependent on the skill and commitment of a small number of individuals.

Smaller unquoted companies requiring venture capital are commonly experiencing significant change and carry higher risk than would an investment in larger or longer established businesses or listed companies. In particular, smaller companies often have limited product lines, markets or financial resources. They are often less likely to have multinational markets for their products or services than larger companies and, as a result, may be exposed to national or local economic cycles rather than global economic cycles.

Technology or scientific research related risks may be greater in such companies.
Investors should not invest in the Portfolio Service if they require income. The level of income, generated from dividends from the underlying investments and interest earned on funds awaiting investment, is likely to be low.

Longbow is substantially dependent on the services of certain key individuals for the management of their Funds. While Longbow has entered into contractual arrangements with such individuals with the aim of securing their services, the retention of their services is not guaranteed. The loss of key personnel by Longbow could have an adverse impact on the performance of their services.