International Realty Commentary

December 31, 2007

The Driehaus International Realty Composite outperformed its benchmark, the S&P/Citigroup BMI World Property ex-US Index (the “Index”), by 455 basis points for the quarter.

Holdings in Brazil, Japan, and Australia were key contributors to return. Holdings in these regions emphasized housing, commercial facilities and the development of technical business environments. Holdings in Hong Kong, Turkey, and Argentina detracted from performance.

At the close of the fourth quarter, the Strategy was overweighted to holdings in Brazil, Malaysia, and Singapore.  Further, the Strategy continues to underweight its holdings in Japan, Australia, Hong Kong and the United Kingdom.

Interest rate and credit concerns continue to hold back the performance of both domestic and international real estate investments. We believe that the majority of attractive growth-oriented real estate and real estate-related investments exist in the international marketplace. We continue to assess these opportunities, particularly in those regions experiencing dynamic levels of economic expansion.

NOTES

Sources: Driehaus Capital Management LLC, FactSet, Morgan Stanley Capital International and Standard & Poor’s Global Industry Classification Standard, Russell Indices, and the Wall Street Journal.

The performance numbers represent a composite of international realty accounts managed by Driehaus Capital Management LLC. These numbers are estimated for the period as all underlying accounts have not yet been reconciled. All rates of return include reinvested dividends and other earnings and are net of fees and brokerage commissions. The performance data shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.

The S&P/Citigroup BMI World Property Ex-US Index is an unmanaged portfolio of approximately 262 constituents from 19 countries, measuring the investable universe of publicly traded real estate investment trusts in developed and emerging markets.

Copyright 2007, Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.  Standard & Poor’s including its subsidiary corporations (“S&P”) is a division of The McGraw-Hill Companies, Inc.  S&P and/or its third party licensors have exclusive proprietary rights in the S&P/Citigroup BMI World Property Ex-US Index (the “Index”).  The Index may only be used internally for business purposes and shall not be used for any unlawful or unauthorized purposes.  Dissemination, distribution of reproduction of the Index in any form is strictly prohibited except with the prior written permission of S&P.  Because of the possibility of human or mechanical error by S&P’s sources, S&P or others, S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.  S&P GIVES NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MECHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall S&P be liable for any direct, indirect, special or consequential damages in connection with subscriber’s or others’ use of the Index.  Access to the Index or the contents/output thereof is subject to termination in the event any agreement with a third-party provider of information or software is terminated. 2007.

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