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AFC ASIA FRONTIER FUND May 2021

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AFC ASIA FRONTIER FUND May 2021 AFC ASIA FRONTIER FUND August 2021 Asian Frontier Countries Fund Category Investment Objective Public Equities Bangladesh, Cambodia, Iraq, Achieve long-term capital appreciation by investing in listed equities of companies that have Kazakhstan, Kyrgyzstan, Laos, their principal business activities in high-growth Asian frontier markets. The fund focuses Maldives, Mongolia, Country Focus primarily on investments in consumer related stocks, financials, and infrastructure. Myanmar, Pakistan, Papua New Guinea, Sri Lanka, Uzbekistan, Vietnam Fund Manager Comment Monthly at NAV (five The AFC Asia Frontier Fund (AAFF) USD A-shares increased by 2.5% in August 2021 with a Subscriptions business days before month end) NAV of USD 1,546.35. The fund outperformed the AFC Frontier Asia Adjusted Index (−0.5%) Monthly at NAV and the MSCI Frontier Markets Asia Net Total Return USD Index (+1.6%) but performed in Redemptions 90 days notice for Class A line with the MSCI Frontier Markets Net Total Return USD Index (+2.5%) and the MSCI World 180 days notice for Class B Net Total Return USD Index (+2.5%). The performance of the AFC Asia Frontier Fund A- AFC Adjusted Frontier Asia Benchmark st Index shares since inception on 31 March 2012 now stands at +54.6% versus the AFC Frontier Asia Thomas Hugger Adjusted Index, which is up by 27.9% during the same period. The fund’s annualized Fund Managers Ruchir Desai performance since inception is +4.7%. The broad diversification of the fund’s portfolio has Investment Asia Frontier Investments resulted in lower risk with an annualised volatility of 10.5% and a correlation of the fund versus Manager Limited, Hong Kong Fund Base the MSCI World Net Total Return USD Index of 0.55, all based on monthly observations since USD, EUR, CHF Currencies inception. USD 50,000 or Minimum The best performing indexes in the AAFF universe in August were Mongolia (+33.7%) and Sri EUR 50,000 or Investment CHF 50,000 Lanka (+10.8%). The poorest performing markets were Cambodia (−6.0%) and Pakistan Subsequent (+0.8%). The top-performing portfolio stocks this month were a Mongolian alcoholic beverages USD/EUR/CHF 5,000 Investments producer (+36.8%), a Mongolian hotel (+25.1%), a Mongolian online media company Class A: 1.8% p.a. of NAV Management Fee (+23.3%), a Vietnamese transportation company (+22.2%) and a Vietnamese construction Class B: 1.5% p.a. of NAV 10% NAV appreciation above contractor (+17.8%). Performance Fee 3 month USD LIBOR +2% Class A Shares In August, the fund exited a Vietnamese telecom equipment manufacturer, a Mongolian and high water mark cashmere producer, a Mongolian meat processor, and a Mongolian securities brokerage 8% NAV appreciation above 3 Performance Fee month USD LIBOR +2% and company. During the month, the fund added to existing positions in Mongolia and Vietnam and Class B Shares high water mark also added to an online classifieds company operating in multiple Asian frontier countries. Fund Size USD 12.1 million At the end of August 2021, the portfolio was invested in 73 companies, 2 funds and held 7.2% Fund Domicile Cayman Islands in cash. The two biggest stock positions were a pump manufacturer from Vietnam (8.5%) and Launch Date 30 March 2012 pharmaceutical company in Bangladesh (3.9%). The countries with the largest asset allocation Main Custodian DBS, Hong Kong were Mongolia (17.8%), Vietnam (14.8%), and Iraq (11.4%). The sectors with the largest Auditor EY, Hong Kong allocation of assets were consumer goods (26.2%) and industrials (13.8%). The fund's estimated Trident Fund Services, Hong weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was Administrator Kong 9.73x, the estimated weighted harmonic average P/B ratio was 1.13x and the estimated Legal Advisor Ogier, Hong Kong weighted average portfolio dividend yield was 3.12%. Morgan, Lewis & Bockius US Tax Advisor LLP, Boston Fund Performance - USD Class A - Net 1,800 Contact Information 1,700 Asia Frontier Capital Ltd. www.asiafrontiercapital.com 1,600 1,546 Mr. Thomas Hugger 1,500 Tel: +852 3904 1015, Fax: +852 3904 1017 [email protected] 1,400 Registered Office: 1,300 c/o Intertrust Corporate Services (Cayman) Ltd. 1,200 One Nexus Way, Camana Bay Grand Cayman, KY1-9005, Cayman Islands 1,100 1,000 Hong Kong Office: Asia Frontier Investments Limited 900 905, 9th Floor, Loon Kee Building 267-275 Des Voeux Road Central 800 Hong Kong 700 AFC Asia Frontier Fund - USD Class A (after fees) AFC Frontier Asia Adjusted Index* st *) MSCI Frontier Markets Asia Net Total Return USD Index until 31 May 2017 and 37% of this index and 63% of the Karachi Stock Exchange 100 NAV as of 31st August 2021 USD-A USD-B CHF-A CHF-B EUR-A EUR-B NAV 1,546.35 1,604.14 1,426.98 1,247.98 1,318.26 1,268.05 Since Inception +54.64% +60.41% +42.70% +24.80% +31.83% +26.81% Inception Date 30/03/2012 30/03/2012 30/03/2012 31/01/2014 31/01/2014 31/07/2014 AFC ASIA FRONTIER FUND August 2021 20% 17.8% Country Allocation 25% 22.7% Sector Allocation 14.8% 20% 15% 11.4% 11.3% 13.5% 10.5% 15% 13.8% 12.7% 10.1% 10% 11.4% 7.2% 9.5% 5.5% 10% 7.2% 4.1% 4.8% 5% 2.4% 1.9% 1.2% 0.8% 5% 1.5% 1.3% 0.9% 0.5% 1.2% 0% 0% Monthly Performances AFC Asia Frontier Fund Class A Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2012 USD +0.91% -7.56% -0.27% -0.26% +0.85% +3.64% -0.96% +0.62% +3.62% +0.15% 2013 USD +5.99% -1.75% -0.70% +1.12% +8.25% -2.33% -0.54% -0.90% +0.06% -1.45% +0.86% +3.18% +11.83% 2014 USD +7.34% +1.67% +2.72% +1.53% +2.60% +0.07% +1.59% -0.05% +2.10% +2.52% -0.15% -0.62% +23.24% 2015 USD -0.49% -0.33% -4.16% +3.28% -0.32% +3.24% +1.09% -1.43% -1.42% +2.14% -3.42% +2.97% +0.80% 2016 USD -3.51% -0.77% +1.89% +2.30% +3.79% +1.85% +3.19% +2.54% +2.33% +0.84% +2.57% +3.69% +22.50% 2017 USD +3.14% -1.11% +0.11% +2.33% +0.91% -1.16% -0.03% -3.47% +0.72% -1.60% +2.81% -2.26% +0.16% 2018 USD +2.41% -1.51% -1.49% -3.49% -4.50% -2.70% -2.16% +0.68% -1.40% -5.52% -1.54% -0.75% -20.07% 2019 USD -0.01% -0.04% -0.12% -1.92% -1.55% -0.44% -0.11% -1.52% -2.14% -1.66% +1.83% +0.90% -6.65% 2020 USD -3.92% -2.82% -14.24% +4.20% +4.11% +1.00% +4.86% +4.30% -1.16% -1.35% +6.35% +5.64% +5.11% 2021 USD +1.02% +3.92% +1.25% +1.39% +3.02% +1.59% -0.12% +2.53% +15.52% 2012 CHF -0.29% -1.18% -2.62% +1.62% -1.40% +1.92% -1.82% +0.24% +2.26% -1.39% 2013 CHF +5.65% +0.84% +0.62% -0.96% +11.36% -3.46% -2.54% -0.52% -2.64% -1.20% +0.78% +1.60% +8.97% 2014 CHF +9.64% -1.12% +3.22% +1.05% +4.19% -0.76% +3.89% +0.92% +5.82% +3.35% +0.09% +2.08% +36.98% 2015 CHF -7.83% +3.33% -2.36% -0.80% +0.19% +2.38% +4.39% -1.23% -0.21% +2.98% +0.94% +0.01% +1.20% 2016 CHF -0.85% -3.33% -2.24% +2.20% +7.13% +0.18% +2.05% +3.68% +0.83% +2.59% +5.08% +3.15% +21.90% 2017 CHF +0.26% +0.39% -0.13% +1.54% -1.67% -2.25% +0.81% -3.75% +1.39% +1.31% +1.01% -2.98% -4.19% 2018 CHF -2.31% +0.09% -0.18% -0.26% -5.11% -1.96% -2.46% -1.31% -0.81% -2.63% -2.19% -2.10% -19.38% 2019 CHF +0.57% +0.44% -0.12% +0.43% -3.19% -3.26% +1.38% -1.59% -1.39% -2.72% +3.14% -2.23% -8.40% 2020 CHF -4.31% -2.51% -15.04% +4.72% +3.53% -0.58% +0.91% +2.99% +0.77% -1.54% +4.86% +2.99% -4.85% 2021 CHF +1.64% +4.94% +4.64% -1.59% +1.20% +3.86% -1.89% +3.06% +16.73% 2014 EUR -3.62% +2.81% +0.86% +3.69% -0.33% +3.50% +1.76% +5.69% +3.24% +0.38% +2.02% +21.56% 2015 EUR +6.07% +0.46% +0.78% -1.80% +1.88% +1.11% +2.24% -3.04% -0.73% +3.11% +1.12% -0.45% +10.96% 2016 EUR -2.57% -1.06% -3.06% +1.40% +6.16% +2.15% +1.85% +2.37% +0.98% +2.47% +4.33% +3.10% +19.25% 2017 EUR +0.43% +0.40% -0.50% +0.28% -1.75% -2.00% -2.31% -3.48% +1.67% -0.16% +0.10% -2.65% -9.66% 2018 EUR -1.31% +0.59% -2.19% -1.81% -1.20% -2.74% -2.39% +1.62% -1.64% -3.06% -1.47% -1.70% -16.09% 2019 EUR -0.88% +0.74% +1.28% -1.68% -1.14% -2.40% +2.10% -0.26% -1.42% -3.85% +3.04% -0.89% -5.42% 2020 EUR -2.62% -1.96% -14.36% +4.95% +2.45% -0.16% -0.30% +3.08% +0.76% -0.69% +3.47% +3.24% -3.58% 2021 EUR +1.73% +3.89% +4.57% -1.06% +0.72% +4.74% -0.23% +3.01% +18.55% Monthly Performances AFC Asia Frontier Fund Class B 2012 USD +0.94% -7.55% -0.24% -0.23% +0.88% +3.67% -0.94% +0.64% +3.65% +0.37% 2013 USD +6.09% -1.77% -0.70% +1.17% +8.45% -2.36% -0.52% -0.87% +0.09% -1.43% +0.89% +3.19% +12.30% 2014 USD +7.53% +1.72% +2.79% +1.58% +2.67% +0.09% +1.65% -0.03% +2.16% +2.59% -0.13% -0.62% +24.07% 2015 USD -0.47% -0.31% -4.13% +3.31% -0.30% +3.27% +1.12% -1.41% -1.40% +2.16% -3.39% +2.99% +1.10% 2016 USD -3.49% -0.75% +1.91% +2.32% +3.82% +1.91% +3.28% +2.61% +2.40% +0.87% +2.65% +3.78% +23.25% 2017 USD +3.23% -1.12% +0.13% +2.40% +0.95% -1.17% 0.00% -3.45% +0.74% -1.57% +2.84% -2.23% +0.51% 2018 USD +2.44% -1.49% -1.46% -3.46% -4.47% -2.68% -2.13% +0.71% -1.38% -5.49% -1.51% -0.72% -19.83% 2019 USD +0.01% -0.01% -0.10% -1.90% -1.52% -0.41% -0.09% -1.49% -2.11% -1.64% +1.86% +0.92% -6.37% 2020 USD -3.90% -2.79% -14.22% +4.22% +4.14% +1.03% +4.89% +4.32% -1.13% -1.33% +6.38% +5.67% +5.43% 2021 USD +1.05% +3.94% +1.28% +1.42% +3.05% +1.62% -0.09% +2.55% +15.75% 2014 CHF -1.23% +3.42% +1.10% +4.30% -0.76% +4.00% +0.95% +5.97% +3.44% +0.11% +2.14% +25.78% 2015 CHF -7.81% +3.35% -2.34% -0.77% +0.21% +2.41% +4.41% -1.21% -0.18% +3.01% +0.96% +0.03% +1.51% 2016 CHF -0.83% -3.31% -2.22% +2.22% +7.15% +0.20% +2.12% +3.77% +0.86% +2.67% +5.21% +3.23% +22.65% 2017 CHF +0.28% +0.41% -0.11% +1.58% -1.66% -2.22% +0.83% -3.73% +1.42% +1.34% +1.04% -2.96% -3.90% 2018 CHF -2.28% +0.12% -0.15% -0.24% -5.09% -1.93% -2.44% -1.28% -0.79% -2.60% -2.17% -2.08% -19.14% 2019 CHF +0.59% +0.47% -0.10% +0.46% -3.16% -3.23% +1.41% -1.56% -1.36% -2.70% +3.17% -2.21% -8.12% 2020 CHF -4.29% -2.48%
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