AFC Asia Frontier Fund AFC Asia Frontier Fund CONFIDENTIAL September 2013 July 2016 INTRODUCING ASIA FRONTIER CAPITAL

AFC Asia Frontier Fund 2 INTRODUCING ASIA FRONTIER CAPITAL

Proven Expertise In Frontier Markets • Asia Frontier Capital Limited was created in June 2013 through a Management Buy Out from Leopard Capital • The founder and CEO, Thomas Hugger, has more than 20 years experience in investing in Frontier Markets • Licensed by SFC Hong Kong for Type 4 (advising on securities) and Type 9 (asset management)

Asia Frontier Capital Offers Three Funds • AFC Asia Frontier Fund – Launched 31st March 2012 • AFC Vietnam Fund – Launched 23rd December 2013 • AFC Iraq Fund – Launched 26th June 2015

Attractive Equities Identified in Structured Investment Policy • Asia Frontier Capital has identified equities with good upside potential • The Fund has access to numerous primary and secondary research sources • A Structured Investment and Research process is being followed

AFC Asia Frontier Fund 3 Our Team OUR TEAM Thomas Hugger, CEO and Fund Manager, has spent 27 years in Ahmed Tabaqchali, CIO of Iraq Investments, is an experienced capital private banking and has been investing in Asian and African markets professional with over 22 years of experience in MENA Frontier Markets since 1993. He is the former Managing Partner, markets as well as the US. He is currently a board member of the Credit CFO & COO of Leopard Capital; and was previously a Managing Bank of Iraq and former Executive Director of NBK Capital, the Director and Head of Portfolio Management at LGT Bank in Hong investment banking arm of the National Bank of Kuwait. Prior to these Kong. Mr. Hugger was the founding shareholder of one of the roles Ahmed was Managing Director and Head of International largest brokerage companies in Bangladesh. He is also a Certified Institutional Sales at WR Hambrecht + Co. This followed on from roles Financial Investment Analyst (CFIA) and Investment Adviser as a Managing Director at KeyBanc Capital Markets and Director & (Switzerland) and a Certified European Federation of Financial Head of Capital Markets & Institutional Sales at Jefferies Int'l in London. Analysts Societies (EFFAS) Financial Analyst. Ahmed is an Iraqi as well as British national and holds a M.Sc. in Mathematics from Oxford University in England, a B.Sc. (Hons, 1st class) in Mathematics from Victoria University and a B.Sc. in Mathematics from Canterbury University in New Zealand. Ruchir Desai, CFA, Senior Investment Analyst, is an MBA graduate Peter de Vries, Marketing Director, has over 25 years experience in in Finance from CUHK Business School at The Chinese University of finance of which 20 in Hong Kong. He is a former Director and Senior Hong Kong and is also an alumnus of The Fuqua School of Business Relationship Manager at Leopard Capital. Prior to that he was an at Duke University where he spent a semester during his MBA Executive Vice President at Upbest Financial Services where he was program. He is also a Chartered Financial Analyst (CFA) charter involved with fund raising and deal structuring for real estate holder. Prior to being based in Hong Kong, Ruchir was based in investment and development projects in Macau. Previously he worked Mumbai where he spent two years as a Senior Analyst at HandsOn as Executive Vice President at ViewTrade Securities in Hong Kong as Ventures LLC, a mid-market private equity group focused on head of the business development for the Asia Pacific region. Mr. De investments in the Business Services industry. Prior to this role, he Vries has also held the position of Assistant Vice President at Merrill spent three years as a Research Analyst at Pioneer Investcorp Ltd, Lynch Asia Pacific. He holds an MBA in finance from Calstate Hayward, an institutional brokerage based in Mumbai. and a Masters of Science in Electrical Engineering from Twente University in the Netherlands. Mr. De Vries is fluent in Dutch, English and German. Scott Osheroff, Regional Research Analyst, holds a Bachelor’s Ms. Margaret Kwok, Accounting & Administration Executive, has over Degree in Business Administration with a Concentration in Finance 30 years of prior work experience in accounting, administration, and from Northeastern University. Prior to joining Asia Frontier Capital, financial services at institutions such as Christfund Securities, PFC Scott worked with Pathfinder Capital Management in Southeast International, and Guoyuan Securities. She holds advanced level Asia and Mongolia. Prior to this role, Scott co-founded a publishing certificates in Accounting & Costing from London Chamber of company whose principal asset, EmergingFrontiers.com, was Commerce & Industry and a Certificate in Accountancy from Kwai leveraged to provide investment coverage on public and private Chung Technical Institute. Margaret is fluent in Cantonese, Mandarin investments in Asia’s frontier markets. He has spent the last two and English. years between Mongolia and Cambodia.

AFC Asia Frontier Fund 4 Our Team SHAREHOLDERS OF ASIA FRONTIER CAPITAL LIMITED Thomas Hugger, CEO and Fund Manager, Hon. Andrew Fraser, Director, is a graduate of has spent 27 years in private banking and has St John's College, Oxford after which he held been investing in Asian and African Frontier numerous posts in the financial sector both in Markets since 1993. He is the former the City of London and elsewhere. He has Managing Partner, CFO & COO of Leopard previously held positions as; CEO of Baring Capital; and was previously a Managing Securities in the UK, Chairman of Equity Director and Head of Portfolio Management Partners Ltd., a Bangladesh investment bank, at LGT Bank in Hong Kong. Mr. Hugger was as well as Chairman of Bridge Securities, a the founding shareholder of one of the quoted Korean company, amongst other posts. largest brokerage companies in Bangladesh. At present he is a global investor based in He is also a Certified Financial Investment London. Analyst (CFIA) and Investment Adviser (Switzerland) and a Certified European Federation of Financial Analysts Societies (EFFAS) Financial Analyst. Dr. Marc Faber, is CEO, investment advisor and fund manager of Marc Faber Limited. He is the publisher of a widely read monthly investment newsletter The Gloom, Boom and Doom report which highlights global investment opportunities. Dr. Faber is respected around the world for his market forecasts over the past three decades.

AFC Asia Frontier Fund 5 WHY ASIAN FRONTIER MARKETS?

AFC Asia Frontier Fund 6 WHY ASIAN FRONTIER MARKETS

AFC Asia Frontier

Fund Universe Bangladesh Cambodia Iraq Laos Maldives Mongolia Myanmar Pakistan Papua New Guinea Sri Lanka Vietnam

AFC Asia Frontier Fund 7 WHY ASIAN FRONTIER MARKETS

Increasing Manufacturing shift Consumption

Favourable from China

Demographics

Excellent upside potential due to high GDP growth

Low Correlation and Diversification at attractive Valuations

AFC Asia Frontier Fund 8 WHY ASIAN FRONTIER MARKETS

Diversification has led to Low Correlations for the Fund with Global Markets

Correlation of AAFF with MSCI Indexes since Inception (30th March 2012)

MSCI World MSCI Emerging MSCI BRIC MSCI Frontier Variable AAFF Index Markets Index Index Markets Index MSCI World Index 0.34 1.00 MSCI Emerging Markets Index 0.30 0.78 1.00 MSCI BRIC Index 0.33 0.76 0.98 1.00 MSCI Frontier Markets Index 0.61 0.64 0.57 0.57 1.00 MSCI Frontier Markets Asia Index 0.81 0.40 0.33 0.34 0.64 Correlation of AAFF with MSCI Indexes since May 2013 - Start of Fed Taper Fear MSCI World Index 0.14 1.00 MSCI Emerging Markets Index 0.12 0.76 1.00 MSCI BRIC Index 0.13 0.74 0.98 1.00 MCSI Frontier Markets Index 0.52 0.60 0.53 0.51 1.00 MSCI Frontier Markets Asia Index 0.80 0.33 0.25 0.25 0.61

Source: Bloomberg, Asia Frontier Capital. Correlations based on Monthly Returns and Gross Fund Returns AAFF – AFC Asia Frontier Fund

AFC Asia Frontier Fund 9 WHY ASIAN FRONTIER MARKETS

Low Correlations for the Fund with Global Markets has led to excellent Risk-Return profile

Annualised Volatility vs. Gross Return (Since Inception, March 2012)

Annualised Volatility vs. Gross Return 90% (Since Inception, March 2012) Annualised Cumulative Volatility Returns*

70% AFC Asia Frontier Fund

USD A AAFF 9.38% 85.79%

50% MSCI World Index 11.63% 26.01% MSCI Frontier Gross Return Gross 30% MSCI World 12.02% 0.73% Markets Index MSCI Frontier 10% MSCI Frontier Markets MSCI Frontier Markets 14.78% 8.34% Asia Markets Asia Index MSCI Emerging -10% 16.02% -19.91% MSCI Emerging Markets Market Index MSCI BRIC

-30% MSCI BRIC Index 19.58% -25.19% 0% 5% 10% 15% 20% 25%

Annualised Volatility

Source: Bloomberg. *Correlations based on Monthly Returns and Gross Fund Returns AAFF – AFC Asia Frontier Fund AFC Asia Frontier Fund 10 WHY ASIAN FRONTIER MARKETS

Low Correlation to Global Markets Asian Frontier markets are under researched and have the potential to provide returns with low correlations to global markets 0.8 Correlation with the MSCI World Index ISXGI Index (Iraq)

DSE Broad Index (Bangladesh) 0.59 0.6 0.51 CSX Index (Cambodia)

MSE Top 20 Index (Mongolia) 0.4 0.36 0.33 0.28 0.28 LSXC Index (Laos)

0.2 KSE All Share Index (Pakistan) 0.10 Colombo All Share Index (Sri 0.0 Lanka) -0.01 VH Index (Vietnam - Hanoi) -0.05 VN Index (Vietnam - Ho Chi Minh) -0.2

Source: Bloomberg. *Based on 5 years monthly data AFC Asia Frontier Fund 11 WHY ASIAN FRONTIER MARKETS

Attractive Valuations Select Asian Frontier Index Valuations Dividend Country Index P/E (x) P/B (x) Yield (%) Asian Frontier markets offer attractive dividend yields Pakistan KSE100 10.3 1.8 5.5 and lower Price to Earnings and Price to Book ratios Laos LSXC 11.0 0.9 5.0 relative to emerging markets Sri Lanka CSEALL Share 12.9 1.5 2.9 Vietnam VNINDEX 14.3 1.9 3.2

Source: Bloomberg. P/E is based on Trailing 12 Months and P/B is latest reporting period.

Emerging Asia Index Valuations Dividend Country Index P/E (x) P/B (x) Yield (%) Malaysia FBMKLCI 18.2 1.8 3.1 Asian Frontier markets are valued attractively relative Thailand SET 20.0 1.9 3.3 to emerging Asian countries India BSE SENSEX 20.3 2.9 1.5 Philippines PCOMP 22.8 2.7 1.7

Indonesia JCI 26.6 2.4 2.0 Source: Bloomberg. P/E is based on Trailing 12 Months and P/B is latest reporting period.

AFC Asia Frontier Fund 12 WHY ASIAN FRONTIER MARKETS

Low Market Cap/GDP relative to Emerging Markets Offers Value

150% Market Cap. as % of GDP - Asian Frontier v/s Emerging Markets

125% 120%

100% 100% 95%

75% 61% 62% 46% 50% 39% 40% 41% 43% 34% 36% 27% 27% 25% 11% 4% 8% 0%

Source: Bloomberg, Asia Frontier Capital

AFC Asia Frontier Fund 13 WHY ASIAN FRONTIER MARKETS

Increasing Manufacturing shift Consumption

Favourable from China

Demographics

Excellent upside potential due to high GDP growth

Low Correlation and Diversification at attractive Valuations

AFC Asia Frontier Fund 14 WHY ASIAN FRONTIER MARKETS

High GDP Growth Rates (2015) in the AFC Frontier Universe

12%

10%

5.9% Average 6%

0% Papua New Myanmar Lao P.D.R. Cambodia Bangladesh Sri Lanka Vietnam Pakistan Mongolia Maldives Iraq Guinea

Source: IMF AFC Asia Frontier Fund 15 WHY ASIAN FRONTIER MARKETS

GDP of AFC Frontier Universe: USD 912 billion (as of 2013) The AFC Frontier Universe offers attractive investment opportunities as their combined GDP is comparable in size to emerging and developed countries

1% GDP (USD Billion) 2% 1% 1% 1,200 0.003% 2% Pakistan Iraq 1,000 7% 26% Vietnam 800 Bangladesh

Sri Lanka 600 16% Papua New Guinea 400 Cambodia Mongolia

200 Lao P.D.R. 25% 19% Myanmar 0 Maldives

Source: World Bank

AFC Asia Frontier Fund 16 WHY ASIAN FRONTIER MARKETS

Increasing Manufacturing shift Consumption

Favourable from China

Demographics

Excellent upside potential due to high GDP growth

Low Correlation and Diversification at attractive Valuations

AFC Asia Frontier Fund 17 WHY ASIAN FRONTIER MARKETS

AFC Frontier Universe Combined Population: 568 million (as of 2013) The AFC Frontier Universe has a sizeable population which continues to grow and will support future GDP growth

1,400 Population (millions) 1% 0.001 3% 1% 0.005 1,200 Pakistan 4% Bangladesh 1,000 6% Vietnam 32% 800 Myanmar 9% Iraq 600 Sri Lanka 400 Cambodia 16% Papua New Guinea 200 Lao P.D.R. 0 Mongolia 28% Maldives

Source: World Bank

AFC Asia Frontier Fund 18 WHY ASIAN FRONTIER MARKETS

AFC Frontier Universe – A Young and Growing Population

Compared to Developed Markets, the AFC Frontier Universe has a much younger population growing at a faster rate: This supports future economic growth and consumption

AFC Frontier Universe is supported by huge young population Developed Markets are not getting younger. AFC Frontier Universe offer young and growing population

80% % of Population 50 Median Age & Population Growth 1.6% 45 < 30 Years Old 42 40 60% > 50 Years Old 40 37 1.2%

30 0.8% 40% 24 20 0.4% 20% 10 0.0%

0% 0 -0.4% AFC Universe North Northern Western Japan AFC Universe North Northern Western Japan America Europe Europe America Europe Europe Source: United Nations Population Division. Median Age (LHS) Population Growth, 2015-2020 (RHS)

AFC Asia Frontier Fund 19 WHY ASIAN FRONTIER MARKETS

The AFC Frontier Universe is Urbanising from a Low Base Increasing urbanisation will support growth in the Consumer, Infrastructure and Financial sectors

AFC Frontier Universe OECD Members

Rural 20% Urban 35% Rural 65% Urban 80%

Source: World Bank

AFC Asia Frontier Fund 20 WHY ASIAN FRONTIER MARKETS

Increasing Manufacturing shift Consumption

Favourable from China

Demographics

Excellent upside potential due to high GDP growth

Low Correlation and Diversification at attractive Valuations

AFC Asia Frontier Fund 21 WHY ASIAN FRONTIER MARKETS

The Shift from China Asian Frontier countries presently have similar demographics to what China had in the 1990s. By 2020 Asian Frontier countries will continue to have a young population relative to China

Median Age – China in 1990 v/s Asian Frontier countries at % of Population > Age 60 – China v/s Asian Frontier countries in present have similar median ages 2020 Asian Frontier countries’ younger population offer an alternative to China

40 36 Median Age 20% % of Population > Age 60 16.9% 31 15.5% 29 30 28 15% 12.8% 25 24 24 20 22 10.5% 20 9.4% 10% 8.1% 7.2% 6.6%

10 5%

0 0%

Source: United Nations Population Division

AFC Asia Frontier Fund 22 WHY ASIAN FRONTIER MARKETS

The Shift from China Combination of young workforce and low wages is attracting manufacturing activities to Asian frontier countries as wages in China increase and the workforce gets greater employment opportunities

Bangladesh and Vietnam are good examples of the shift of Wages in Asian Frontier countries are amongst the lowest in the region manufacturing from China to neighboring countries

Monthly Minimum Wage (USD) 750 Bangladesh RMG & Vietnam Export Growth*

300 275 282 264 600 251

225 193 450 Bangladesh 150 112 300 100 Vietnam 68 75 79 75 50 52 150

0 0

*Rebased to 100 (2003). RMG: Ready Made Garments Source: China Statistical Bulletin, Wage Indicator Foundation, Bangladesh Garment Manufacturers & Exporters Association, General Statistics Office of Vietnam

AFC Asia Frontier Fund 23 WHY ASIAN FRONTIER MARKETS

Increasing Manufacturing shift Consumption

Favourable from China

Demographics

Excellent upside potential due to high GDP growth

Low Correlation and Diversification at attractive Valuations

AFC Asia Frontier Fund 24 WHY ASIAN FRONTIER MARKETS

Percentage of Durables in Private Consumption

AFC Asia Per capita Frontier Fund income USD Universe PPP (2012) Bangladesh $ 729 Cambodia $ 792 Iraq $ 3,918 Laos $ 1,017 Maldives $ 4,385 Mongolia $ 2,499 Myanmar - Pakistan $ 1,217 PNG $ 1,625 Sri Lanka $ 2,699 Vietnam $ 1,372

AFC Asia Frontier Fund 25 WHY ASIAN FRONTIER MARKETS

Consumption Expenditure is Increasing in Frontier Markets

Household final consumption expenditure per capita Household final consumption expenditure per capita (USD - constant 2005) Bangladesh growth (annual %) $1,600 9 Cambodia 8 $1,400 Iraq 7 $1,200 Lao PDR 6 $1,000 Maldives 5 $800 Mongolia 4 Myanmar 3 $600 Pakistan 2 $400 Papua New 1 Guinea $200 Sri Lanka 0

$- Vietnam -1

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

AFC Average AFC Country Universe Average Linear (AFC Country Universe Average)

1994 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Household final consumption expenditure per capita Household final consumption expenditure per capita 9 growth (annual %) 4 growth (annual %) 8 7 3 6 5 2 4 3 1 2 1 0

2011 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013

-1 1993

1995 1999 1993 1994 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 BRICS Average Linear (BRICS Average) -2 Developed Countries Linear (Developed Countries) AFC Asia Frontier Fund 26 WHY ASIAN FRONTIER MARKETS

Remittance Inflows supports GDP Growth Remittance inflows continue to grow and will support domestic consumption and investment

Personal remittances, received Vietnam 50 (Billion current USD) Sri Lanka 45

40 Papua New Guinea

35 Pakistan USD 30 Myanmar

25 Mongolia Billion 20 Maldives 15 Lao PDR 10 Iraq 5 Cambodia 0 Bangladesh 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: World Bank

AFC Asia Frontier Fund 27 WHY ASIAN FRONTIER MARKETS

Asian Frontier Consumer Stocks are undervalued and some companies have been catching up with Emerging Market valuations over the past year. This has helped generate alpha for the fund.

Asian Frontier Consumer Picks

Country Company P/E (x) P/B (x) Dividend Yield (%) Mongolia Consumer Food Products 7.6 0.6 0.7 Sri Lanka Consumer Beverage Products 9.9 1.0 1.5 Pakistan Consumer Beverage Products 13.7 1.8 1.1 Vietnam Consumer Food Products 14.7 3.7 4.1 Bangladesh Shoe Retailer 23.5 6.4 2.7 Regional Comparisons Country Company P/E (x) P/B (x) Dividend Yield (%) Indonesia Indofood Sukses Makmur 21.4 2.2 2.4 Thailand President Bakery 23.2 5.6 2.1 China Tsingtao Brewery 23.3 2.4 1.5 Philippines Universal Robina Corp 30.6 6.7 1.6 India Bata India 36.6 3.0 0.6 Source: Bloomberg. P/E based on Trailing 12 Month Earnings, P/B based on most recent reporting period.

AFC Asia Frontier Fund 28 INVESTMENT STRATEGY

AFC Asia Frontier Fund 29 INVESTMENT STRATEGY

Top-down Value / Approach Growth

Risk Cash Mitigation

AFC Asia Frontier Fund 30 INVESTMENT STRATEGY – IDEA GENERATION PROCESS – COMBINATION OF BOTTOM UP-TOP DOWN

Bottom-up stock shortlisting using tools based on Valuation and Fundamental parameters

Top-down stock Relationship with sell shortlisting based on side analysts for views economy and industry on company/industry analysis

On the ground visits to Access to Third Party countries. Conducted Research (daily 269 management updates, company meeting over the past specific research, 15 months industry research)

AFC Asia Frontier Fund 31 INVESTMENT STRATEGY – RESEARCH PROCESS

Historical Financial Statement • Historical trend of growth, margins and cash from operations Analysis • Focus on trend in RoEs and dividend payout ratios.

• Well established brand • Large distribution network • High Market Share Competitive Advantages • Economies of Scale • Cost Structure • Stable Management • Is company operating in an industry with favorable outlook • Example 1: Shoes per capita in Bangladesh is significantly lower than Industry Outlook & Opportunity emerging market peers • Example 2: Upswing in infrastructure spending in Pakistan positive for cement companies

• Conduct both local and regional peer analysis by comparing valuation, Peer Comparison Analysis fundamental and industry metrics

AFC Asia Frontier Fund 32 INVESTMENT STRATEGY – WHAT WE LOOK FOR WHEN WE BUY

Possible Triggers: Introduction of new products, expansion plans, interest rate cycle on the downswing, decreasing debt levels, improvement in macro environment

Room for expansion in multiples due to undervaluation relative to peers

Is future outlook consistent with past historical trend in growth, margins, cash flows, RoEs and dividend payout ratios.

Take a longer term view on the business and not get distracted by near term disappointments

AFC Asia Frontier Fund 33 INVESTMENT STRATEGY – WHAT WE LOOK FOR WHEN WE SELL

Deteriorating company fundamentals, poor industry outlook and/or deteriorating economic outlook

Are negatives already in the price?

Valuations move above our comfort zone on absolute and relative basis

Lack of confidence in company management

AFC Asia Frontier Fund 34 INVESTMENT STRATEGY – RISK MANAGMENT

Corporate Governance & Concentration Political Risk Currency Risk Risk • Accounting standards and • Certain markets could face • The fund does not hedge disclosures not yet unstable political and security currency exposure as it is comparable to developed environments prohibitively expensive and at markets • We look to mitigate this risk many times not logistically • We look to mitigate this risk by using a top down approach possible through our research process to increase/decrease country • We look to mitigate this risk and meeting with company allocation based on political by using a top down approach management and on the events that may impact our to diversify across countries ground research holdings • Keeping track of the • To further mitigate the risk of • Keeping track of the fundamentals of the economy governance issues impacting fundamentals of companies and macroeconomic the overall portfolio the fund and the economy developments has maximum position limit • Diversification amongst of 5% in a holding with top markets that have political slicing at 10% should the risks and cycles that are valuation rise. independent of each other

AFC Asia Frontier Fund 35 INVESTMENT STRATEGY – TOP 10 HOLDINGS

Company Country Sector % of NAV

Beximco Current Top 10 Holdings Bangladesh Healthcare 6.1% Pharmaceuticals Searle Company Ltd. Pakistan Healthcare 5.2%

Traphaco JSC Vietnam Healthcare 3.2%

D.G. Khan Cement Pakistan Materials 3.0%

Bata Shoe Co. Bangladesh Consumer Discretionary 2.8%

Cotec Construction Vietnam Industrials 2.6%

Binh Minh Plastics Vietnam Materials 2.4%

AFC Iraq Fund Iraq Fund/ETF 2.4%

Vietnam Sun Corp. Vietnam Consumer Discretionary 2.3% Hai Duong Pump Vietnam Industrials 2.3% Manufacturing

AFC Asia Frontier Fund 36

FUND INFORMATION

AFC Asia Frontier Fund 37 Comparison of Frontier Funds (Citywire Global)

Citywire published an article on 26 November 2015 detailing the five top performing Frontier Markets Equity Managers. Note also the max. drawdown and standard deviation.

Rank Fund Manager Firm Fund 36 month 36 month 36 month total return maximum standard drawdown deviation #1 Thomas Hugger Asia Frontier AFC Asia Frontier +42.59% -5.7% 2.6% Capital Fund USD A #2 Thomas Vester BMO Global BMO LGM Frontier +33.48% -16.1% 3.1% Asset Markets B Acc Management #3 Chris Turner & HSBC HSBC GIF Frontier +33.03% -17.7% 3.8% Andrew Markets Brudenell #4 Allan Conway & Schroder Schroder ISF +32.15% -28.0% 4.5% Ramzi Sidani Frontier Markets Equity #5 Tim Drinkall Morgan Morgan Stanley +30.13% -19.4% 3.6% Stanley Frontier Emerging Markets Equity

AFC Asia Frontier Fund 38 AWARDS

AFC Asia Frontier Fund 39 FUND STATISTICS – AFC ASIA FRONTIER FUND

AFC Asia Frontier Fund Class A – as at 30th June 2016

NAV USD-A CHF-A EUR-A NAV 1,467.65 1,530.73 1,385.94 Since Inception 46.77% 53.07% 38.59% Inception Date 30/03/2012 30/03/2012 31/01/2014

Monthly Performances 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% +5.50%

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% +2.76%

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% +2.75%

AFC Asia Frontier Fund 40 FUND STATISTICS – AFC ASIA FRONTIER FUND

AFC Asia Frontier Fund Class B – as at 30th June 2016

NAV USD-B CHF-B EUR-B NAV 1,494.21 1,313.87 1,309.00 Since Inception 49.42% 31.39% 30.90% Inception Date 30/03/2012 31/01/2014 31/07/2014

Monthly Performances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 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% +5.69%

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% +2.91%

2014 EUR +1.82% +5.82% +3.33% +0.40% +2.08% +14.10% 2015 EUR +6.22% +0.49% +0.81% −1.78% +1.91% +1.15% +2.31% −3.06% −0.71% +3.14% +1.17% −0.44% +11.46% 2016 EUR −2.55% −1.03% −3.04% +1.43% +6.18% +2.20% +2.92%

AFC Asia Frontier Fund 41 FUND STATISTICS – AFC ASIA FRONTIER FUND (NON – US)

AFC Asia Frontier Fund (non-US) Class A – as at 30th June 2016

NAV USD-A CHF-A EUR-A NAV 1,467.55 1,530.73 1,385.94 Since Inception 46.76% 53.07% 38.59% Inception Date 30/03/12 30/03/12 31/01/14

Monthly Performances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2012 USD +0.90% −7.56% −0.27% −0.26% +0.85% +3.64% −0.96% +0.61% +3.62% +0.14% 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% −0.34% −4.15% +3.28% −0.32% +3.24% +1.09% −1.43% −1.42% +2.14% −3.42% +2.96% +0.79% 2016 USD −3.51% −0.77% +1.89% +2.30% +3.80% +1.85% +5.51%

AFC Asia Frontier Fund 42 FUND STATISTICS – AFC ASIA FRONTIER FUND (NON – US)

AFC Asia Frontier Fund (non-US) Class B – as at 30th June 2016

NAV USD-B CHF-B EUR-B NAV 1,494.08 1,313.87 1,309.00 Since Inception 49.41% 31.39% 30.90% Inception Date 30/03/12 31/01/14 31/07/14

Monthly Performances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2012 USD +0.94% −7.55% −0.24% −0.23% +0.88% +3.67% −0.94% +0.64% +3.65% +0.36% 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% +12.29% 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% +1.09% 2016 USD −3.49% −0.75% +1.91% +2.32% +3.83% +1.91% +5.70%

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% +4.42% −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% +2.91%

2014 EUR +1.82% +5.82% +3.33% +0.40% +2.08% +14.10% 2015 EUR +6.22% +0.49% +0.81% −1.78% +1.91% +1.15% +2.31% −3.06% −0.71% +3.14% +1.17% −0.44% +11.46% 2016 EUR −2.55% −1.03% -3.04% +1.43% +6.18% +2.20% +2.92%

AFC Asia Frontier Fund 43 FUND STATISTICS

1,500 Fund Performance - USD Class A (Net) 1,460 1,420 1,380 1,340 1,300 1,260 1,220 1,180 1,140 1,100 1,060 1,020 980 940

900

Jul 12 Jul 13 Jul 14 Jul 15 Jul

Jan 15 Jan Jan 13 Jan 14 Jan 16 Jan

Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun

Oct 12 Oct 13 Oct 14 Oct 15 Oct

Apr 12 Apr 13 Apr 14 Apr 15 Apr 16 Apr

Sep 12 Sep 13 Feb 13 Sep 14 Feb 14 Sep 15 Feb 15 Sep 16 Feb

Dec 15 Dec Dec 12 Dec 13 Dec 14 Dec

Aug 12 Aug Aug 13 Aug 14 Aug 15 Aug

Nov 12 Nov 13 Nov 14 Nov 15 Nov

Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar

May 12 May 13 May 14 May 15 May 16 May

MSCI Frontier Markets Asia Index AFC Asia Frontier Fund (Net)

* All MSCI Index numbers and performance comparisons are versus the respective price index calculations

AFC Asia Frontier Fund 44 FUND STATISTICS

1,900 Fund Performance – USD Class A (Gross) 1,800

1,700

1,600

1,500

1,400

1,300

1,200

1,100

1,000

900

Jul 12 Jul 13 Jul 14 Jul 15 Jul

Jan 13 Jan 14 Jan 15 Jan 16 Jan

Jun Jun 12 Jun 13 Jun 14 Jun 15 Jun 16

Oct 12 Oct 13 Oct 14 Oct 15

Apr 12 Apr 13 Apr 14 Apr 15 Apr 16 Apr

Sep 12 Sep 13 Feb 13 Sep 14 Feb 14 Sep 15 Feb 15 Sep 16 Feb

Dec 12 Dec 13 Dec 14 Dec 15 Dec

Aug 12 Aug 13 Aug 14 Aug 15 Aug

Nov 12 Nov 13 Nov 14 Nov 15 Nov

Mar 12 Mar Mar 13 Mar 14 Mar 15 Mar 16 Mar

May 13 May May 12 May 14 May 15 May 16 May MSCI Frontier Markets Asia Index AFC Asia Frontier Fund (Gross)

* All MSCI Index numbers and performance comparisons are versus the respective price index calculations

AFC Asia Frontier Fund 45 FUND STATISTICS

18,000 120 Growth in Fund Size and Number of Clients 16,000 100 14,000

12,000 80

10,000 60 8,000

6,000 40

Number of Clients of Number Fund Size (US$'000) Size Fund 4,000 20 2,000

- 0

Jul 12 Jul 13 Jul 14 Jul 15 Jul

Jan 13 Jan 14 Jan 15 Jan 16 Jan

Sep 15 Sep Sep 12 Sep 13 Sep 14 Sep

Nov 12 Nov 13 Nov 14 Nov 15 Nov

Mar 13 Mar Mar 12 Mar 14 Mar 15 Mar 16 Mar

May 12 May 13 May 14 May 15 May 16 May

Private Clients (Right Axis) Institutional Clients (Right Axis) Fund Size (US$'000) (Left Axis)

AFC Asia Frontier Fund 46 COUNTRY ALLOCATION

Country Allocation – 30th June 2016

35%

30% 29.0%

25% 21.1% 20% 14.9% 15% 9.7% 10.8% 10% 4.0% 5% 3.3% 2.5% 2.0% 1.5% 1.2% 0%

AFC Asia Frontier Fund 47 SECTOR ALLOCATION

Sector Allocation – 30th June 2016

20% 18.3% 18% 17.3% 17.3% 16% 14% 13.2% 12% 10.8% 10% 9.3% 8% 6.0% 6% 4% 2.4% 1.6% 2% 1.5% 1.4% 0.9% 0%

AFC Asia Frontier Fund 48 FUND TERMS & CONDITIONS

Investment Manager: Asia Frontier Capital Ltd., Cayman Islands Investment Advisor: Asia Frontier Investments Ltd., Hong Kong Fund Base Currencies: USD, EUR, CHF Subscription Frequency: Monthly, 5 business days before end of month Redemption: Monthly: - 90 days prior notice for class A shares - 180 days prior notice for class B shares Management Fee: 1.8% p.a. of NAV for class A shares 1.5% p.a. of NAV for class B shares Performance Fee: 10% NAV appreciation above 3 month USD-LIBOR +2% and high water mark for class A shares 8% NAV appreciation above 3 month USD-LIBOR +2% and high water mark for class B shares Initial Minimum Investment: USD/EUR/CHF 50,000 for US Investors USD/EUR/CHF 25,000 for non-US Investors

AFC Asia Frontier Fund 49 FUND TERMS & CONDITIONS

Subsequent Minimum Subscription: USD 10,000 for USD shares EUR 10,000 for EUR shares CHF 10,000 for CHF shares Subsequent Subscription Price: NAV

Country/Region Focus: Asia Frontier Markets Initial Launch Date: 30 March 2012

Valuation Day: Last day of each calendar month

Main Custodian Banks: Deutsche Bank, Singapore / DBS, Hong Kong

Auditor: Ernst & Young, Hong Kong

Administrator: Custom House, Singapore

Legal Advisor: Cayman Islands: Ogier, Hong Kong

US: Morgan, Lewis & Bockius LLP, Boston

AFC Asia Frontier Fund 50 CONTACT INFORMATION

ASIA FRONTIER CAPITAL LTD.

Thomas Hugger, CEO and Fund Manager, Hong Kong Email: [email protected] Tel: +852 3904 1015, Fax: +852 3904 1017

Peter de Vries, Marketing Director, Hong Kong Email: [email protected] Tel: +852 3904 1079, Fax: +852 3904 1017

Website: www.asiafrontiercapital.com

Asia Frontier Investments Limited is licensed by SFC Hong Kong for Type 4 (advising on securities) and Type 9 (asset management)

*The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The distribution of Shares in Switzerland must exclusively be made to qualified investors. The place of performance and jurisdiction for Shares in the Fund distributed in Switzerland are at the registered office of the Representative.

AFC Asia Frontier Fund 51 DISCLAIMER

This Presentation is presented solely for purposes of discussion to assist prospective investors in determining whether they have a preliminary interest in the investment opportunity described herein. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy, any security or other interest in AFC Asia Frontier Fund, AFC Umbrella Fund or any other fund related thereto (the “Fund”). Offers and sales of interests in the Fund will not be registered under the laws of any jurisdiction and will be made solely to qualified investors under all applicable laws. Potential investors must read the entire Offering Memorandum delivered by the Fund and the disclosure in this Subscription Agreement. Nothing contained herein shall be deemed to be binding against, or to create any obligations or commitment on the part of, any potential investor or the Asia Frontier Capital (the “Fund Sponsors”). The Fund Sponsors reserve the right, in their sole and absolute discretion with or without notice, to alter the terms or conditions of this Presentation and the Fund and/or to alter or terminate the potential investment opportunity described herein. Potential investors are not to construe this Presentation as investment, legal or tax advice. Prior to making any potential investment, potential investors should consult with their own legal, investment, accounting, regulatory, tax and other advisors to determine the consequences of the potential investment opportunity described herein and to arrive at an independent evaluation of such potential investment opportunity. By accepting this Presentation, the recipient agrees not to copy, distribute, discuss or otherwise disclose this Presentation or the contents hereof (including the potential investment opportunity described) or any other related information provided by the Fund Sponsors or by its agents to any person other than employees of recipient evaluating this potential investment opportunity on recipient’s behalf without the prior written consent of the Fund Sponsors. While the information contained herein has been obtained from various sources which the Fund Sponsors believe, but does not guarantee, to be reliable, the Fund Sponsors do not represent that it is accurate or complete and it should not be relied upon as such. No person has been authorized to give any information or make any representation or warranty regarding the subject matter hereof, either express or implied, and, if given or made in this Presentation, in other materials or verbally, such information, representation or warranty cannot and should not be relied upon nor is any representation or warranty made as to the accuracy, content, suitability or completeness of the information, analysis or conclusions or any information furnished in connection herewith contained in this Presentation and it is not to be relied upon as a substitute for independent review of the underlying documents, available due diligence information and such other information as prospective investors may deem appropriate or prudent to review. The Fund Sponsors, their agents, their respective affiliates, and each of their respective shareholders, members, officers, directors, managers, employees, counsel, advisors, consultants and agents (“Representatives”), expressly disclaim any and all liability for express or implied representations or warranties that may be contained in, or for omissions from or inaccuracies in, this Presentation or any other oral or written communication transmitted or made available to a prospective investor or its Representatives. Without limiting the generality of the foregoing, nothing contained herein is or shall be relied upon as a promise or representation as to any matter, including, without limitation, the future performance of the potential investment opportunity described herein. None of the Fund Sponsors, their agents, or their respective Representatives is under any obligation to correct any inaccuracies or omissions in this Presentation. Each prospective investor will have the sole responsibility for verifying the accuracy of all information furnished in this Presentation and in any other due diligence information furnished to a prospective investor, and each prospective investor shall have the sole responsibility for determining the value of the potential investment based on assumptions said prospective investor believes to be reasonable. There shall be no recourse against the Fund Sponsors or any of their Representatives in the event of any errors or omissions in the information furnished, the methodology used, the calculations of values or conclusions. Without limiting the generality of the foregoing, any historical information or information based on past performance included herein is for informational purposes only, has inherent limitations and is not intended to be a representation, warranty or guarantee of future performance. All of the information presented herein is subject to change without notice. Actual returns to potential investors may be lower than the figures shown herein. Projected performance data shown constitutes “forward-looking information” which is based on numerous assumptions and is speculative in nature. Actual results may vary significantly from the values and rates of return projected herein. There can no assurance that the Fund will realize its rate of return objectives or return of investors’ capital. Potential investors should have the financial ability and willingness to accept the risks (including without limitation the risk of loss and lack of liquidity) characteristic of investments in entities such as the Fund. AN INVESTMENT IN THE FUND WILL NOT BE APPROPRIATE FOR ALL INVESTORS. INTERESTS IN THE FUND WILL INVOLVE A HIGH DEGREE OF RISK AND ARE INTENDED FOR SALE ONLY TO SOPHISTICATED INVESTORS WHO ARE CAPABLE OF UNDERSTANDING AND ASSUMING THE RISKS INVOLVED. INVESTORS MAY LOSE ALL OR SUBSTANTIALLY ALL OF THEIR INVESTMENT. THE INTERESTS IN THE FUND HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY US. STATE OR ANY NON-U.S. JURISDICTION, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY SUCH APPLICABLE LAWS. INTERESTS IN THE FUND HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE US. SECURITIES AND EXCHANGE COMMISSION OR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER RELEVANT JURISDICTION, NOR HAS ANY OTHER AUTHORITY OR COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. *The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The distribution of Shares in Switzerland must exclusively be made to qualified investors. The place of performance and jurisdiction for Shares in the Fund distributed in Switzerland are at the registered office of the Representative. ** The Fund is registered for sale to investors in Japan, Switzerland (qualified investors), Hong Kong & UK (professional investors), Singapore (accredited investors) and USA (accredited investors and qualified purchasers). ** By accessing information contained herein, users are deemed to be representing and warranting that they are either a Hong Kong Professional Investor or are observing the applicable laws and regulations of their relevant jurisdictions. AFC Asia Frontier Fund 52