KALTCHUGA FUND Russia Equities B (EUR)

Fund fact sheet as of 31 January 2018 Overall Morningstar Rating TM  Quick facts Investment objective

Fund category Russian Equities The Fund’s objective is to outperform the MSCI Russia and achieve medium to long-term capital Reco. placement period 10 years appreciation from long-only investments in liquid Russian equities, mainly Blue Chips. The Fund’s Last NAV (EUR) 5,300.04 strategy combines top down analysis together with a bottom-up stock-picking approach and doesn’t use leverage or derivatives. NAV frequency Daily ISIN LU0290814093 Distributed in LU, CH, FR Risk and reward profile 1 2 3 4 5 6 7 Lower Risk Higher Risk

Cumulative performance Calendar year performance (%)

120 250

110 200 100 150 90 100 80 50 70 60 0 50 -50

40 -100 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fund MSCI Russia NR USD Fund MSCI Russia NR USD

Past performance (%) - Net returns Cumulative Annualised Month-to-date Year-to-date 1 year 3 years 5 years Origin 3 years 5 years Origin Fund 9.28% 9.28% 12.95% 84.00% 0.93% -28.13% 22.53% 0.19% -3.08% Benchmark 12.57% 12.57% 18.75% 92.57% -2.67% -29.41% 24.41% -0.54% -3.25% Origin: 17/07/2007

Fund information Investment team

Legal form SICAV UCITS Jean-Louis Tauvy has been managing the Kaltchuga Funds since 1994. After being responsible for the Fund domicile Luxembourg realization of large industrial projects in Singapore, France and the USSR he became a pioneer of the Russian stock market with unique knowledge of the Russian and other FSU markets. He has a MS of Fund launch date 31/03/2007 Engineering from ENS des Arts et Métiers. Total AUM (USD) 49,032,936.65 Fiscal year end December 31st Alexandre Starinsky is Head of Research. MSc in Physics from Univ. Paris VI. MA in Economics & Fund currency USD Finance and postgraduate in Post Soviet Studies from Sciences Po Paris. He has worked in Russia and Ukraine since 1993. He joined the Group in 2006. Benchmark MSCI Russia NR USD Cut-off time See prospectus NAV analysis Management company Probus Capital Mgt SA Custodian bank KBL Europ. Priv. Bankers 3 years figures (ann.) Fund Bench. Value Date Auditor E&Y Luxembourg Annual volatility 25.64 25.14 52-week NAV high 5,395.56 25/01/2018 FATCA status Reporting FI Beta 0.97 52-week NAV low 4,092.66 22/06/2017 Solvency II TPT file contributor Tracking error 8.14 3.26 Max drawdown (%) -52.86 28/02/12-16/12/14 German tax Transparent Sharpe 1.03 0.97 Information ratio 0.27

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GENEVA - DUBAI - MONACO - BANGKOK - LUXEMBOURG - KALTCHUGA FUND January 2018 Russia Equities B (EUR)

Sectorial allocation (%) Market cap breakdown (%) Asset class breakdown (%)

Energy 32.7 Large 74.0 94.1 Materials 16.0 Medium 7.8 Net cash 5.9 Financials 15.1 Small 12.3 Consumer Staples 11.6 Net cash 5.9 IT 5.4 Utilities 3.7 Telecom 3.0 Industrials 2.8 Real Estate 2.3 Others 7.3

Top 10 holdings (%)

Sberbank 10.2 3.4 9.2 MMC 3.2 8.5 3.2 5.3 3.1 X5 Group 3.5 3.1 Top 5 positions 36.8 Top 10 positions (%) 52.8

Available share classes

Class Name ISIN BLMG ticker Curr. Type Launch date Min. invest. Mgt. fees Perf. fees OGC Front / back load A USD LU0290813871 KALRUSA LX USD A 30/03/2007 None 2.00% None 2.81% Closed for subs/up to 1% B EUR LU0290814093 KALRUSB LX EUR A 16/07/2007 None 2.00% None 2.81% Closed for subs/up to 1% C USD LU0462676486 KALRUSC LX USD A 04/12/2009 None 1.70% None 2.51% Up to 2%/up to 1% D EUR LU0462681726 KALRUSD LX EUR A 04/12/2009 None 1.70% None 2.53% Up to 2%/up to 1%

Contact Probus Group Moscow Luxembourg Geneva Probus Invest LLC Probus Capital Management S.A. Probus Compagnie S.A. Ulitsa Bolshaya Yakimanka 1 16 rue Erasme Place Saint Gervais 1 119180 Moscow L-1468 Luxembourg Case Postale 1988 Russian Federation Luxembourg CH-1211 Genève 1 +7 495 411 79 13 +352 262 624 161 +41 22 906 86 00 Disclaimer This factsheet is provided for information purposes only and does not constitute or form part of an offer for shares. The Offering of the shares and the distribution of Fund’s prospectus may be restricted outside of the Grand-Duchy of Luxembourg. The value of an investment in Kaltchuga Fund can fall as well as rise. An investment in the Fund is subject to a high degree of risk including the possible loss of capital. There is no assurance that the Fund will meet its investment objective. Switzerland The prospectus and the Key Investor Information Documents for Switzerland, the articles of incorporation, the annual and semi-annual report in French, the list of the purchases and and further information can be obtained free of charge from the representative in Switzerland: Carnegie Fund Services S.A., 11, rue du Général-Dufour, CH-1204 Geneva, Switzerland, web: www.carnegie-fund- services.ch. The Swiss paying agent is: Banque Cantonale de Genève, 17, quai de l’Ile, CH-1204 Geneva. The last share prices can be found on www.fundinfo.com. For the shares of the Fund distributed to non-qualified investors in and from Switzerland and for the shares of the Fund distributed to qualified investors in Switzerland, the place of jurisdiction is Geneva. Each time performance data is published, it should be noted that the past performance is no indication of current or future performance, and that it does not take account of the commissions and costs incurred on the issue and redemption of shares. Please read the Prospectus before considering an investment in Kaltchuga Fund. France The centralising correspondent is Société Générale, 29 Boulevard Haussman - 75009 Paris. The official prospectus as well as the Key Investor Information Documents for France and the annual and semi- annual reports in French are available free of charge from Société Générale, 29 Boulevard Haussman - 75009 Paris, web: www.securities-services.societegenerale.com/fr.

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GENEVA - DUBAI - MONACO - BANGKOK - LUXEMBOURG - MOSCOW KALTCHUGA FUND January 2018 Russia Equities B (EUR)

Commentary

Performance: Global equity markets had a very strong start to 2018, with the MSCI World up 5.3% and the MSCI EM returning 8.3%. Investors in risk-on mode took the dollar further down. The Brent gained 3%, firmly holding above $60 for a third straight month. Supported by the strong oil prices, Russian stocks outperformed (MSCI Russia +12.5%, RTS +11.1%), and the rouble strengthened a bit against the USD (RUB:USD +2%), but not the EUR (RUB:EUR -1%). We have said before that the Russian MinFin is not interested in letting the rouble appreciate and would rather purchase FX to top up its reserves, while each additional rouble to one dollar of oil reduces the budget deficit. The Fund (Class C) gained 9.7% this month (vs MSCI Russia +12.6%).

Selected Position(s): All sectors surfed this wave. Banks (+16%) won the race, after their leader Sberbank (+20%) published RUB 674bn of FY17 net profits under Russian accounting standards (+35% YoY), ahead of oil & gas stocks (+13%). Lukoil (+15%) rallied over its plan to buy back shares and partially cancel its treasury stocks (c12% of total). But investors were also willing to pick up the cheap ones, last year’s underperformers, Rosneft (+22%) and Gazprom (+13%). As of late, Rosneft’s discipline to cut capex and leverage has become more credible. Strong metal prices pushed mining & metal stocks up by 8%, and Alrosa (+12%) came out as the leader this month, as polished diamond prices rose to their maximum since May 2017. Consumers were mixed (+6%), with weaker retailers (X5 +2%) vs strong Internet (Mail +13%, Yandex +18%). It could be challenging for us to outperform our benchmark if oil & gas companies keep rallying, while consumer stocks remain weak. Though, we stick to the view that higher oil prices will translate into more money for consumers rather than for shareholders of oil companies. Oil taxation takes out almost 80% of each additional dollar to the oil price, of which part shall be transferred into consumer pockets.

Overview and Positioning: In these first days of February, we are seeing a comeback of volatility, initiated by higher inflation reports in the US that prompted fears that the new Fed President could speed up the process of raising rates. Fundamentally, the global economic background remains strong, but still very dependent on accommodative money policies, and we think the Fed, as well as the other major central banks, will continue to be very wary not to tighten too much too soon. Therefore, we keep assuming that Russian stocks will continue to benefit from the strong oil prices and reduce the discount to their emerging peers.

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GENEVA - DUBAI - MONACO - BANGKOK - LUXEMBOURG - MOSCOW