Mutual Fund Investment Management

Fund Manager: kesem Mutual Funds Ltd.

External Investment Manager: Monitar Investment House

MONITAR (0D)(!) US DOLLAR DENOMINATED INTERNATIONAL BONDS,

security no. 5127238

0 – The Fund will have no exposure to equities;

D – The Fund’s exposure to foreign currency shall not exceed, in absolute value, 120% of the Fund’s net asset value;

(!)    An exclamation mark in the name of the fund indicates that, according to its investment policy, exposure to credit risk may arise from exposure to Bonds without an Investment Grade Rating (as defined below) or derivatives activities with or through corporations included in the Second Credit Risk Group (as defined in the Appendix to the Directive to Fund Managers and Trustees regarding Custodian Risks and Credit Risks), or from making deposits with such corporations, or from the value of a foreign security that was lent through an Israeli stock exchange member (hereinafter: “Exposure to Banks and Brokers”), under the following circumstances or at the following rates: the total rate of exposure to Bonds without Investment Grade rating and Exposure to Banks and Brokers exceeds the fund’s maximum equity exposure, as indicated by the fund’s exposure profile; the rate of Exposure to Banks and Brokers exceeds 20% of the fund’s net asset value (regardless of its equity exposure profile); the rate of exposure to a specific bank or broker exceeds 10% of the fund’s asset value (regardless of its equity exposure profile). Notwithstanding the foregoing, the Fund Manager shall create credit risk exposure of banks included in the First Credit Risk Group only as defined in the Appendix to the Directive to Fund Managers and Trustees regarding Custodian Risks and Credit Risks. “Bonds without an Investment Grade Rating” means corporate bonds and/or bonds issued by a country other than Israel, which are either unrated or rated below (BBB-) or an equivalent rating.

MONITAR (2D) 70/30- US DOLLAR DENOMINATED,

security no. 5127220

2 – The Fund’s exposure to equities shall not exceed, in absolute value, 30% of the Fund’s net asset value;

D – The Fund’s exposure to foreign currency shall not exceed, in absolute value, 120% of the Fund’s net asset value;

MONITAR (4D) FLEXIBLE,

security no. 5127212

4 – The Fund’s exposure to equities shall not exceed, in absolute value, 120% of the Fund’s net asset value;

D – The Fund’s exposure to foreign currency shall not exceed, in absolute value, 120% of the Fund’s net asset value;

Monitar Investment House is the Fund’s external investment manager and Kesem Mutual Funds Ltd. is the Fund’s manager.

This publication does not constitute an offer to purchase units in the Fund. Such purchase shall only be made pursuant to an annual report and immediate reports. The foregoing does not constitute a substitute for investment advising/marketing by a lawful licensee, taking into account the circumstances and needs of any person. Nothing in the foregoing shall be deemed an offer to acquire participation units in mutual funds.