Interim Management Statement

SVM UK Emerging Fund plc

Interim Management Statement

This interim management statement covers the period from 1 October 2010 to 31
December 2010. It has been produced for the sole purpose of providing
information to the Company's shareholders in accordance with the requirements
of the UK Listing Authority's Disclosure and Transparency Rules. It should not
be relied upon by any other party or for any other purpose.

Investment Objective

SVM UK Emerging Fund's investment objective is long term capital growth from
investments in smaller UK companies with a particular focus on the Alternative
Investment Market (AIM)

Benchmark

FTSE AIM Index

Dividend

The Fund does not pay a dividend.

Material Events

The Fund released its half yearly report for the six months to 30 September
2010 to the Stock Exchange in November 2010. A copy is available on the
Managers' website.

Largest Investments as at 31 December 2010 Sector Analysis as at 31 December 2010

                                     %                                        %
                                                                               
1   Archipelago Resources          8.3       Basic Materials               52.9
2   Symphony Env Technologies      7.0       Industrials                    6.2
3   Kirkland Lake Gold             6.9       Oil & Gas                     15.3
4   Norseman Resources             6.1       Consumer Goods                 0.0
5   Oracle Coalfields              5.0       Consumer Services             12.9
6   Hydrodec                       5.0       Healthcare                     1.8
7   China Pub Company              5.0       Telecoms                       0.0
8   Nautical Petroleum             3.9       Technology                     0.0
9   Manroy                         3.8       Financials                    10.1
10  ToLuna                         3.5       Utilities                      0.8
                              --------                                 --------
    Total                         54.5                                    100.0
                              --------                                 --------

Financial Position

                                 As at        As at
                           31 Dec 2010  30 Sep 2010
                            (unaudited)  (unaudited)
                                 £'000        £'000
                                                   
Investments                      4,758        3,771
Net current assets                 273          385
                            ----------   ----------
Net assets                       5,031        4,156
                            ----------   ----------
                                                   
NAV per share                   83.78p       69.21p
                                                   

Changes to Share Capital

                                 Issued
                                      
As at 30 September 2010       6,005,000
Ordinary shares bought back           0
Ordinary shares issued                0
                            -----------
As at 31 December 2010        6,005,000
                            -----------

Performance

                     3 months    1 year    3 years      Remit
                                                   change (*)
                            %         %          %          %
                                                             
Share price             +22.5      +9.1      -14.9     +135.3
Net asset value         +21.1     +26.3      +19.6     +160.4
FTSE AIM Index          +19.6     +44.1       -7.5       +8.6

* - investment remit changed September 2004

Source: SVM/Lipper Hindsight, capital return to 31/12/2010


Kindly note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as
rise. Investors may not get back the amount they originally invested.

We are not aware of any significant events or transactions which have occurred
between 31 December 2010 and the date of publication of this interim management
statement which would have a material impact on the financial position of the
Fund.

Further Information

Further information regarding the Fund, including monthly factsheets, annual
and half yearly reports, can be found at the Manager's website: at
www.svmonline.co.uk.