India Equity Fund

Nomura Funds Ireland plc

India Equity Fund

Fund Review June 2011 The fund underperformed the benchmark by 0.83% in June. Positive contribution to performance came from our underweight to Energy and Materials while performance was hurt by overweight to Industrials Investment Objective (Tata Motors, Lanco Infratech which missed expectations) and IT Services (where HCL Technologies and Wipro lagged). We reduced Industrials by exiting Lanco Infratech where results disappointed and To achieve long-term capital growth through uncertainty on fuel source supply for its projects has increased. We also sold some holdings in TCS, investment in an actively managed portfolio of Infosys and Tata Motors. Indian securities.

Barring a further oil price shock, we are likely to see inflation slow later in the year. This should also lead the RBI to pause in hiking interest rates. With substantial tightening already done in this cycle, there is Investment Style room to ease should the situation warrant it. Thus the economy is very likely to be in the last stages of high inflation and tightening. We expect GDP growth to remain in the 7.5% to 8.5% band over the next l Active management based on fundamental two years with a lower GDP growth over the next quarter. Corporate earnings have come down as the research impact of higher raw material prices and interest costs feeds through. Nevertheless, topline growth has l Bottom up approach with top-down overlay remained reasonable and we still expect corporate earnings growth in the region of 18-20% for the market. The market has corrected sharply since November 2010 and appears to price in most of the negatives. l Portfolio risk control to produce stability of The underperformance with respect to other Asian markets has also been stark. As such, valuations are returns looking very attractive in the context of the growth.

Performance of USD 100 since inception against Benchmark Benchmark

175 MSCI India Index (net total return) 160 145 Key Facts 130

115 Launch Date 15th January 2007 100 Fund Type ICVC 85 Domicile Ireland Base Currency USD 70 NAV Currencies EUR, GBP, USD 55 Year End 31 December 40 Morningstar Sector India Eq Bloomberg (A) NOMINED ID 01/2007 07/2007 01/2008 07/2008 01/2009 07/2009 01/2010 07/2010 01/2011 Bloomberg (I) n/a ISIN Code (A) IE00B1L8MC56 India Equity Fund MSCI India Index ISIN Code (I) IE00B3SHFF36 Trading cutoff 12:00 GMT Trading frequency Daily Valuation frequency Daily Valuation time 15:00 GMT Settlement T + 4 Fund Size USD 211.8 m Cumulative performance in USD (%) of Class Z shares Number of holdings 24 NAV (A Share) n/a 1 Mth 3 Mth YTD 1 Yr 3 Yr Since inception NAV (I Share) USD 309.33 Fund 0.94 -2.17 -4.10 11.32 36.73 36.46 Benchmark 1.77 -3.55 -8.48 7.99 35.44 34.03 Risk Statistics Standardised performance as at 30 June 2011 in USD (%) of Class Z shares Fund Index 2011/2010 2010/2009 2009/2008 2008/2007 Alpha 0.05% 0.00% Fund 11.32 34.96 -9.00 -14.85 Beta 0.95 1.00 Benchmark 7.99 32.04 -5.02 -13.10 Information Ratio 0.89 - Tracking Error 5.48% -

Source: Nomura Asset Management U.K. Ltd based on Net Asset Value per share calculated by BBH, in USD. Standard Deviation 36.82% 38.47%

www.nomura-asset.co.uk [email protected] +44 207 521 3000 Nomura Funds Ireland plc

India Equity Fund

Top 10 Holdings Top 10 Overweight Top 10 Underweight Investment Manager

% % % active active Nomura Asset Management Singapore Ltd weight weight weight HDFC Bank Ltd 9.92 HDFC Bank Ltd 4.12 HDFC -4.69 Infosys Technologies Ltd 9.20 Tata Consultancy Services 4.11 Reliance Industries Ltd -3.30 Fund Manager Tata Consultancy Services 8.35 HCL Technologies 3.56 ICICI Bank Ltd -0.95 ICICI Bank Ltd 5.76 Sadbhav Engineering Ltd 3.29 Infosys Technologies Ltd -0.36 Vipul Mehta has Reliance Industries Ltd 5.67 Dr Reddys Labs Ltd 3.27 IndusInd Bank -0.18 over 17 years Larsen & Toubro 4.94 Zee Entertainment 2.76 of investment ITC Ltd 4.83 McLeod Russel India Ltd 2.41 experience and has been at Nomura Dr Reddys Labs Ltd 4.45 Larsen & Toubro 2.06 since 2004. HCL Technologies 4.18 Jindal Steel & Power 2.04 Jindal Steel & Power 3.90 Bajaj Auto 2.04

Sector Breakdown Share Class Details 30% Class A Class I 20% Management Fee 1.50% 1.00% Min Initial Sub $100,000 $3m 10% Min Further Sub $50,000 $1m Initial Commission Max 5.00% 0.00% % Information Financials Industrials Materials Energy Consumer Consumer Health Care Utilities Telecom- Technology Staples Discretion- munication ary Services Registered for sale n Fund 24.82 19.39 15.01 10.66 7.34 7.24 6.19 4.45 0.00 0.00 n Benchmark 16.37 28.16 10.35 10.73 12.53 6.75 5.13 4.42 5.18 0.38 Austria, Denmark, Finland, Germany, Ireland, Netherlands, Norway, Sweden, Switzerland, United Kingdom

This newsletter was prepared by Nomura Asset Management U.K. Ltd. The comments of this report are not intended in any way to indicate or guarantee future investment results as the value of investments may go down as well as up. Values may also be affected by exchange rate movements and investors may not get back the full amount originally invested. Before purchasing any investment fund or product, you should read the related prospectus and documentation in order to form your own assessment and judgement and, to make an investment decision. The prospectus is available upon request from the Nomura Asset Management U.K. Ltd website. Information for German investors: This information is exclusively for the use by eligible counterparties pursuant to § 31a sec.4 WpHG. The Fund Dealing content of this report does not comply with the requirements of § 4 WpDVerOV. Nomura Funds Ireland plc Nomura Asset Management U.K. Ltd. is c/o Brown Brothers Harriman Fund Administration Services (Ireland) authorised and regulated by the Financial Limited Services Authority. Portfolio data source: Styne House Nomura Asset Management U.K. Ltd Upper Hatch Street Dublin 2 Ireland Telephone: 353-1- 603 6273 Fax: 353-1- 603 6310