MFM Techinvest Technology Fund Interim Report For the six month period ended 31st October 2012 (Unaudited)

Registered Office Marlborough House 59 Chorley New Road Bolton BL1 4QP Authorised Corporate Director and Registrar Marlborough Fund Managers Ltd Marlborough House 59 Chorley New Road Bolton BL1 4QP Authorised and regulated by the Financial Services Authority

Customer Support: (0808) 145 2500 (FREEPHONE) Intermediary Support: (0808) 145 2502 (FREEPHONE) Dealing: (0808) 145 2501 (FREEPHONE) Fax: (01204) 533045 Email: enquiries@marlboroughfunds.com Depositary: HSBC Bank plc 8 Canada Square London E14 5HQ Authorised and regulated by the Financial Services Authority Investment Adviser: Techinvest Ltd Merchants House 27/30 Merchants Quay Dublin 8 Republic of Ireland

Authorised by the Central Bank of Ireland Auditors: Barlow Andrews LLP Carlyle House 78 Chorley New Road Bolton BL1 4BY

MFM TECHINVEST TECHNOLOGY FUND CONTENTS PAGE

AUTHORISED INVESTMENT ADVISER’S REPORT 1 AUTHORISED STATUS AND GENERAL INFORMATION 4 AUTHORISED CORPORATE DIRECTOR’S STATEMENT 4

FUND INFORMATION Number of shares in issue/Net asset value per share 5

Ongoing charges 5 Synthetic risk and reward indicator 5

Portfolio statement 6 Portfolio transactions 8

INTERIM FINANCIAL STATEMENTS Statement of total return 9 Statement of change in net assets attributable to shareholders 9

Balance sheet 10

Notes to the interim financial statements 10

MFM TECHINVEST TECHNOLOGY FUND AUTHORISED INVESTMENT ADVISER’S REPORT For the six months ended 31 October 2012 Percentage change and sector position to 31 October 2012 Six months 1 year 3 years 5 years Since launch** MFM Techinvest Technology Fund 1.84% 11.25% 59.16% 41.82% 124.93% Quartile Ranking* 1 1 1 1 2 *Based on ranking within IMA Technology & Telecommunications Sector. External Source of Economic Data: Morningstar ** Launched 29.04.2003 (performance calculated from first pricing point 19.05.03) The Fund ended the half year to October 31 with an increase of 1.84%. This compares with a gain by the FTSE 100 of 0.83% and one of 2.75% by the techMARK AllShare index. Despite a little over half the Fund being invested in North America throughout the half year it nonetheless outpaced the Nasdaq Composite index which actually recorded a small decrease of 1.92%. The tech-rich Russell 2000 index, which is comprised of small and mid-cap US stocks, made a tiny gain of 0.23% during the period. On both sides of the Atlantic, markets declined during the months of April and May, followed by three positive months which largely recovered the losses of the previous two. The final month, October, was essentially flat in London although there was a distinct downward bias on Nasdaq. This has since been followed on both markets by a further period of gentle declines with very low intra-day volatility. The wild daily swings have disappeared in recent months, making for a much calmer atmosphere in which to implement medium-term investment decisions, something which ought to be of benefit to our modus operandi. Since its inception on 19 May 2003, the unit price of shares in the Fund has increased by 124.93%. This is well ahead of the 46.72% improvement turned in by the FTSE 100, the 65.48% gain by the FTSE SmallCap while the AIM AllShare’s 15.08% has been beaten by the proverbial mile. Over the same time frame, the Nasdaq Composite is up 100.16% while London’s techMARK AllShare index has increased by 158.95%. It is worth noting that the techMARK index comprises the largest London quoted companies in the sector, of which only a very few are held at any one time by the Fund. As always, we remain strongly focussed on smaller cap stocks as, taking the longer-term view, we remain convinced that is where the best value is usually found. This applies equally to our selections on both sides of the Atlantic. In fact, a number of our holdings are little covered or not at all by analysts. This inevitably results in undervalued opportunities which we have been able to exploit, especially since the worst of the bear market ended in March 2009. North American content at October 31 was 47.57% (US 41.44%; Canada 6.13%). This included Finland-based Nokia which was bought in ADR form in New York. London holdings accounted for 44.6%. The Fund ended the half-year with a cash content of 7.8%, a little higher than is usual for us. This is less the result of deliberate choice and more because a few holdings offered good opportunities for taking sensible part-profits in August/September. This has left us well-placed to take advantage of the excellent medium-term values now becoming apparent as prices decline and/or companies issue results and guidance usefully above prior expectations. The ten largest London holdings in the Fund on October 31 were, in alphabetical order: Bango, blinkx (second largest holding in the Fund), dotDigital, First Derivatives, IDOX (largest holding), Innovation, Monitise, NCC, SQS Software Quality Systems and Vislink. Eight of these were also in the Top Ten at the year-end date of April 30. This emphasises one of the Fund’s key attributes – it is not a short-term trader of positions; we prefer to buy-and-hold.

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MFM TECHINVEST TECHNOLOGY FUND AUTHORISED INVESTMENT ADVISER’S REPORT (CONTINUED) The ten largest North American holdings, also in alphabetical order, were: 3D Systems (since sold, five days after it reached its all-time high, for a gain of 138% in ten months; over the previous six months short-interest in the stock had more than doubled to a worrisome 22.5% - we have learned the hard way that it is rarely wise to ignore such high levels of rising short interest), Aviat Networks, Calamp (we had a visit here in Dublin from Chief Executive Michael Burdiek early in the half year, following which we increased our holding), ClickSoftware Technologies, Guidance Software, iPass, Move (a play on the US housing sector recovery), Radware, Redknee Solutions (originally listed on AIM in February 2007, since delisted; the provider of billing and operational systems for telecommunications services providers, mainly mobile, is now only listed in Toronto) and Saba Software. The Fund sold its Top Ten holding in Apple on July 25 at $574; latest is $580. Looking forward, we see no reason not to expect tech stocks in our universe to continue to outperform. In general, valuations relative to growth prospects remain attractive, with downside in so many cases well protected by cash-rich balance sheets. However we suspect stockmarkets on both sides of the Atlantic, especially North America, have a difficult couple of months coming up, with the phrase “fiscal cliff” dominating US airwaves. Inevitably, tech stocks will be also affected by any such contagion. In our latest report to shareholders six months ago, we mentioned the Facebook new issue flop as a vivid example of what can happen when greed is allowed to overwhelm reality. “Even around the current $29, some $9 below the IPO price, we here at Techinvest are not tempted to buy”. The shares have since been as low as $17.55 and are currently around $26. We will begin to take a closer interest the next time they get near $20. One early but very faded star of the Internet boom, where we have taken a recent position, is Yahoo! There are clear signs that the new youthful low-key chief executive Marissa Mayer is starting to make a positive impact. Turnaround is not going to happen overnight but we’ll be disappointed if two/three years from now the shares haven’t made very meaningful progress. We continue to view the prime factors fuelling the escalating tech boom as the Mobile Internet and the explosive (to put it mildly!) growth in data and video traffic over the next few years, with social networking fanning the flames. Other major positive trends include SaaS (software-as-a-service), Cloud computing, M2M (“the Internet of Things”) and Big Data. The latter is one theme to which we have started to pay a lot of attention, although only two of our current positions (Actuate and Pervasive Software, where an activist investor is stirring things up at the moment) provide exposure. However, we have unearthed at least three more, one medium-sized and two others much smaller, at which we are taking a close look. There are also at least two biggies, but as so often, better value is found further down the scale. We believe the Fund is the only UK authorised one of its type available to the general public that offers significant dual exposure to both London and North American small cap tech stocks. At October 31 just over 90% was invested in these, with the majority in North America. The fund is valued once a week at 12.00p.m. each Wednesday. The latest price is normally posted by 5.30p.m. that day on the Techinvest home-page at www.techinvest.ie. It can also be found in the Financial Times each day and at www.marlboroughfunds.com. A fact-sheet updated each month with the latest data on the Fund can also be found on the Techinvest website, as can a sample copy of a recent issue of the monthly Techinvest newsletter. Distributions Year 2012 Year 2011 Year 2010 Net income paid June 0.0000pps 0.0000pps 0.0000pps Net income paid December 0.0000pps 0.0000pps 0.0000pps Techinvest Ltd. Investment Manager 28 November 2012

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MFM TECHINVEST TECHNOLOGY FUND Material Portfolio Changes For the six month period ended 31 October 2012 Major Purchases Cost (£) Major Sales Proceeds (£) Actuate Software 279,723 Miranda Technologies 895,686 Novatel Wireless 191,537 Arena Pharmaceuticals 582,735 Electronic Arts 191,016 Authentec 568,965 Clicksoftware Technologies 188,821 Apple 487,732 Yahoo 183,600 Ebay 252,674 Radware 177,885 Harmonic 241,975 Infinera 169,177 Wi-Lan 232,895 Sonus Networks 168,241 Micro Focus International 208,143 Move 138,892 Electronic Arts 196,305 Meru Networks 117,176 Tellabs 184,877 Harmonic 111,964 Mitek Systems 139,890 Optos 109,557 Cable & Wireless Worldwide 122,571 Falconstor Software 104,367 MRV Communications 121,140 Sandvine 81,503 Majestic Entertainment 116,392 Tellabs 80,901 3D Systems 115,543 Redknee Solutions 76,548 Boingo Wireless 110,057 Craneware 74,488 Sandvine 108,414 Peer 1 Network 70,856 KBC Advanced Technology 104,789 Nokia ADR 68,755 Clicksoftware Technologies 96,117 Escher Group Holdings 66,793 Innovation Group 81,642 Other purchases 333,560 Other sales 289,640 Total purchases for the period 2,985,360 Total sales for the period 5,258,182

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MFM TECHINVEST TECHNOLOGY FUND AUTHORISED STATUS AND GENERAL INFORMATION Authorised Status MFM Techinvest Technology Fund is an investment company with variable capital incorporated under the Open Ended Investment Company (OEIC) Regulations 2001. It is a UCITS scheme as defined in the Collective Investment Schemes Sourcebook (COLL). The Company is incorporated in England and Wales with the registration number IC000219 and is authorised and regulated by the Financial Services Authority with effect from 28 March 2003. The shareholders are not liable for the debts of the Company. Nature and Objectives of the Scheme The investment objective is to provide capital growth from capital appreciation and the accumulation of income through a globally invested portfolio of equities and bonds. Emphasis will be placed on technology-based businesses worldwide. It is envisaged that up to 75% of the total fund value will normally be in securities quoted on the London Stock Exchange, with the balance invested elsewhere, primarily North America. The technology sector includes, but is not necessarily limited to, companies providing products and services in electronic and electrical equipment, healthcare, information technology hardware, electronic games, media services, support services and telecommunication services. The FTSE techMARK All-Share Index is the benchmark comparison against which the performance of the Fund is measured. Change in Prospectus: No changes have been made since the last report. Up to date key investor information documents, the full prospectus and reports and accounts for any fund can be requested by the investor at any time. AUTHORISED CORPORATE DIRECTOR’S STATEMENT This report has been prepared in accordance with the requirements of the Collective Investment Schemes Sourcebook (COLL) as issued and amended by the Financial Services Authority.

J R HEAP CHIEF EXECUTIVE

G R HITCHIN INVESTMENT DIRECTOR MARLBOROUGH FUND MANAGERS LTD 5 December 2012

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MFM TECHINVEST TECHNOLOGY FUND FUND INFORMATION Number of shares in issue/Net asset value per share Net asset value Number of Net asset value of scheme accumulation per accumulation property shares in issue share at 30 April 2010 £13,457,816 7,737,378 173.93p at 30 April 2011 £22,203,584 9,713,938 228.57p at 30 April 2012 £19,957,501 9,139,695 218.36p at 31 October 2012 £19,484,478 8,748,808 222.71p Ongoing charges Ongoing charges 30 April 2012 1.78% 31 October 2012 1.78% The ongoing charge figure is based on expenses for the year. This figure may vary from year to year. It excludes:

Performance fees Portfolio transaction costs, except in the case of an entry/exit charge paid by the fund when buying or

selling units in another collective investment scheme. Synthetic risk and reward indicator Lower risk Higher risk Typically lower rewards Typically higher rewards

7 6 5 4 3 2 1

The risk and reward indicator above aims to provide you with an indication of the overall risk and reward profile of the fund. It is calculated based on the volatility of the fund using weekly historic returns over the last five years. If five years data is not available for a fund, the returns of a representative portfolio are used. This Fund has been measured as 6 because it has experienced high volatility historically.

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MFM TECHINVEST TECHNOLOGY FUND

Portfolio statement

as at 31 October 2012

Holding or Bid Percentage ofnominal value value total net assets

as at 31 Oct 12 UNITED KINGDOM £ %

AUTOMOBILES & PARTS (0.03%, Apr 2012 - 0.05%)105,000 Enova Systems 5,250 0.03

Total Automobiles & Parts 5,250 0.03

ELECTRONIC & ELECTRICAL EQUIPMENT (0.86%, Apr 2012 - 0.78%)15,000 Dialight 166,950 0.86

Total Electronic & Electrical Equipment 166,950 0.86

FIXED LINE TELECOMMUNICATIONS (Nil, Apr 2012 - 0.58%)Total Fixed Line Telecommunications 0 0.00

HEALTH CARE EQUIPMENT & SERVICES (1.05%, Apr 2012 - 0.64%)100,000 Optos 203,750 1.05

Total Health Care Equipment & Services 203,750 1.05

MEDIA (2.60%, Apr 2012 - 2.63%)2,303,920 dotDigital Group 293,750 1.51

65,000 Internetq 135,200 0.691,360,151 Top Level Domain Holdings 78,209 0.40

Total Media 507,159 2.60

MOBILE TELECOMMUNICATIONS (2.58%, Apr 2012 - 2.46%)63,000 Avanti Communications Group 168,210 0.86

904,545 Monitise 334,682 1.72Total Mobile Telecommunications 502,892 2.58

OIL EQUIPMENT, SERVICES & DISTRIBUTION (Nil, Apr 2012 - 0.75%)Total Oil Equipment, Services & Distribution 0 0.00

PHARMACEUTICALS & BIOTECHNOLOGY (0.12%, Apr 2012 - 0.16%)515,400 Cyprotex 23,193 0.12

Total Pharmaceuticals & Biotechnology 23,193 0.12

SOFTWARE & COMPUTER SERVICES (27.30%, Apr 2012 - 25.03%)1,500,000 Access Intelligence 41,250 0.21

394,165 Active Risk Group 94,600 0.49550,000 Ant 104,500 0.54

1,450,000 Arcontech Group 1,015 0.01325,000 Avia Health Informatics 22,750 0.12185,000 Bango 392,200 2.01864,994 blinkx 616,308 3.16330,000 Bond International Software 165,000 0.8523,333 Corero Network Security 7,466 0.0460,000 Craneware 255,600 1.31

850,000 DDD Group 216,750 1.11140,000 Escher Group Holdings 280,000 1.4461,000 First Derivatives 329,400 1.69

1,150,000 Globo 261,625 1.341,692,601 Idox 643,188 3.30

55,000 IndigoVision Group 225,500 1.16

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MFM TECHINVEST TECHNOLOGY FUND

Portfolio statement (continued)

as at 31 October 2012

Holding or Bid Percentage ofnominal value value total net assets

as at 31 Oct 12 £ %SOFTWARE & COMPUTER SERVICES (continued)

1,426,470 Innovation Group 313,823 1.61550,000 Invu 1,210 0.01100,000 Microgen 135,000 0.6935,000 NCC Group 313,425 1.61

200,000 Pilat Media Global 56,000 0.291,895,000 Quindell Portfolio 255,825 1.312,100,000 Servicepower Technologies 115,500 0.591,150,000 Sopheon 46,000 0.24

160,000 SQS Software Quality Systems 352,000 1.813,500,000 Vialogy 70,000 0.36

Total Software & Computer Services 5,315,935 27.30

SUPPORT SERVICES (1.69%, Apr 2012 - 2.27%)100,000 Planet Payment 160,000 0.82200,000 Sagentia Group 170,000 0.87

Total Support Services 330,000 1.69

TECHNOLOGY HARDWARE & EQUIPMENT (7.38%, Apr 2012 - 6.81%)320,000 Amino Technologies 177,600 0.91850,000 Belgravium Technologies 42,500 0.2280,000 CSR 282,240 1.45

500,000 Filtronic 180,000 0.923,050,000 Pure Wafer 106,750 0.55

338,888 Pure Wafer Sub Shs 0 0.00225,000 Sepura 202,500 1.04290,000 Telit Communications 159,500 0.82

1,100,000 Vislink 286,000 1.47Total Technology Hardware & Equipment 1,437,090 7.38

TRAVEL & LEISURE (0.69%, Apr 2012 - 0.65%)175,000 Probability 134,750 0.69

Total Travel & Leisure 134,750 0.69

CANADA (6.04%, Apr 2012 - 10.31%)257,995 ePals 53,781 0.2848,100 EXFO 133,193 0.68

175,000 Peer 1 Network 304,910 1.56505,400 Redknee Solutions 456,015 2.34310,000 Sandvine 229,554 1.18

Total Canada 1,177,453 6.04

UNITED STATES (41.75%, Apr 2012 - 45.71%)15,000 3D Systems 404,208 2.0765,000 Actuate Software 214,609 1.10

400,000 Alcatel Lucent 255,694 1.31290,000 Aviat Networks 408,552 2.1090,267 Calamp 496,908 2.5526,000 Ceragon Networks 64,544 0.33

240,000 Clearwire 'A' 296,407 1.5283,476 ClickSoftware Technologies 388,032 1.99

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MFM TECHINVEST TECHNOLOGY FUND

Portfolio statement (continued)

as at 31 October 2012

Holding or Bid Percentage ofnominal value value total net assets

as at 31 Oct 12 £ %UNITED STATES (continued)

43,600 Datalink 219,718 1.1310,000 eBay 299,572 1.54

100,201 Extreme Networks 202,728 1.0460,000 Falconstor Software 82,294 0.4263,300 Guidance Software 478,099 2.4587,000 Infinera 265,649 1.3654,000 Integrated Device Technology 182,312 0.94

297,401 iPass 356,224 1.83100,000 Meru Networks 173,152 0.8980,000 Mitel Networks 126,109 0.6567,762 Move 347,789 1.78

120,000 Nokia ADR 198,101 1.02105,100 Novatel Wireless 106,972 0.5525,000 Numerex 177,807 0.9151,000 PC-Tel 204,152 1.0530,983 Pervasive Software 164,404 0.84

700 Proxim Wireless 456 0.0021,000 Radware 427,351 2.1966,624 Saba Software 415,961 2.138,000 Selectica 26,960 0.14

290,000 Sonus Networks 332,961 1.71143,800 Towerstream 313,249 1.6125,000 Web.com Group 244,678 1.2618,000 Yahoo 188,010 0.96

273,109 Zhone Technologies 74,595 0.38Total United States 8,138,257 41.75

UNQUOTED SECURITIES (0.00%, Apr 2012 - 0.01%)500,000 Camaxys Group 0 0.00330,000 Infoserve Group 957 0.00

250 Multipower 0 0.00Total Unquoted Securities 957 0.00

Portfolio of investments 17,943,636 92.09Net current assets 1,540,842 7.91Net assets 19,484,478 100.00

The investments of the Fund have been valued using bid market values ruling on international stock exchanges at close ofbusiness on 31 October 2012, being the last valuation point of the period. Market value is defined by the SORP as fair valuewhich is generally the bid value of each security. Where applicable investments are valued to exclude accrued income.Where a stock is unlisted or where there is a non liquid market, a valuation for this stock has been obtained from marketmakers where possible, and suspended stocks are normally valued at their suspension price. However, where the Managerbelieves that these prices do not reflect a fair value, or where no reliable price exists for a security, it is valued at a pricewhich in the opinion of the Manager reflects a fair and reasonable price for that investment.Camaxys and Multipower are delisted and any payment cannot be quantified at this stage. Infoserve Group is delisted and valued at the last trading price.

Portfolio transactions for the six months ended 31 October 2012 £

Total purchases, including transaction charges 2,985,360

Total sales proceeds, net of transaction charges 5,258,182

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MFM TECHINVEST TECHNOLOGY FUND

INTERIM FINANCIAL STATEMENTS (unaudited)For the six months ended 31 October 2012

Statement of total return31 October 2012 31 October 2011

£ £ £ £

Income:Net capital gains/(losses) 478,204 (2,597,536)Revenue 76,321 63,764

Expenses (173,495) (182,130)Finance costs: Interest 0 (100)Net revenue/(expense) before taxation (97,174) (118,466)

Taxation (3,029) (4,541)

Net revenue/(expense) after taxation (100,203) (123,007)

Total return before distributions 378,001 (2,720,543)

Finance costs: Distributions 464 2,458

Change in net assets attributable to shareholders frominvestment activities 378,465 (2,718,085)

Statement of change in net assets attributable to shareholders

31 October 2012 31 October 2011£ £ £ £

Opening net assets attributable to shareholders * 19,957,501 22,203,584

Amounts receivable on issue of shares 140,260 193,448Amounts payable on cancellation of shares (990,591) (1,041,868)

(850,331) (848,420)Stamp duty reserve tax (1,157) (2,348)

Change in net assets attributable to shareholders frominvestment activities 378,465 (2,718,085)

Closing net assets attributable to shareholders 19,484,478 * 18,634,731

* These figures are not the same as the comparatives are taken from the preceding interim period and not the last final accounts.

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MFM TECHINVEST TECHNOLOGY FUND

INTERIM FINANCIAL STATEMENTS (unaudited)as at 31 October 2012

Balance sheet

31 October 2012 30 April 2012

£ £Assets:Investment assets 17,943,636 19,724,753Debtors 270,593 90,650Cash and bank balances 1,548,989 504,965Total other assets 1,819,582 595,615Total assets 19,763,218 20,320,368

Liabilities:Investment liabilities 0 0Creditors (207,669) (307,882)Bank overdraft (71,071) (54,985)Total other liabilities (278,740) (362,867)Total liabilities (278,740) (362,867)

Net assets attributable to shareholders 19,484,478 19,957,501

Notes to the interim financial statements.

Accounting policies

The interim financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice for Authorised Funds issued by the InvestmentManagement Association in October 2010.

The accounting policies applied are consistent with those of the annual financial statements for the period ended30 April 2012 and are described in those annual financial statements.

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Marlborough Fund Managers Limited Marlborough House 59 Chorley New Road Bolton BL1 4QP Customer Support: 0808 145 2500 Intermediary Support: 0808 145 2502 Dealing: 0808 145 2501 Fax: 01204 533045 Email: enquiries@marlboroughfunds.com Website: www.marlboroughfunds.com Marlborough Fund Managers Limited Registered in England No. 2061177 Authorised and regulated by the Financial Services Authority and a member of IMA