Ann: Net Tangible Asset Backing & Fund Update, page-12

Re your final point: that is because CD3 started investing 3or 4 years after CD1 and 2, and is thus much earlier in its “harvesting phase”ie achieving cash distributions for investors from asset sales, although therecould always be spikes in cash distributions from ”lucky” one- off assetssales. The latest quarterly report showsaverage age of remaining investments: CD1 is 6.2 years; CD is 5.1 years; CD3 is3.3 years. Barring disaster in PE markets,I expect most of the CD1 and 2 assets to be sold over the next 12-18 months,and nearly all of their nta turned into cash. CD3 is perhaps 3 years behind that degree of maturity, on average. Giventhis, I expect CD3’s discount to NTA will remain at about 10% higher than forCD1 and 2 As the illiquid PE assets are turned intocash, the funds’ discounts to NTA should slowly converge towards zero. Because ofthe unhappy history for investors who were Dixon clients, there still appears to be persistentselling pressure in the CD funds, and hence discounts to NTA. I have been an enthusiastic buyer of CD1/2/3 overlast 18 months, and still feel confident about their future.