AS AT 30 NOVEMBER 2017 MAGNA EASTERN EUROPEAN FUND EUR FUND DETAILS FUND OBJECTIVE Structure UCITS The Magna Eastern European Fund seeks to achieve capital growth by investing in a diversified portfolio of Eastern European, including Turkish, Securities. The Magna Eastern European Fund is a sub-fund of the Domicile Ireland Magna Umbrella Fund plc. Registrations AT CH DE DK ES FI FR GB IE IT LU NL SE SG STRATEGY DESCRIPTION Launch Date 14 Jul 1998 We look to invest in quality companies, with strong management and sustainable growth prospects, at attractive valuations. Our approach to investing is bottom-up, stock-focused and research-driven. We focus Income Accumulated on both quantitative and qualitative analysis and search for less well-understood opportunities. Regular Daily Dealing 12 noon (Dublin time) management meetings are a key principle of our process. We like to find companies we can invest in for the long term. Belief in the sustainability of their growth and evidence of good shareholder relations are key Dealing Cut-off T - 1 drivers for us. Portfolios are built on the basis of our conviction; we are aware of any benchmark index but if Number of Holdings 35 we don’t like a stock, we don’t invest in it, regardless of its index weighting. Cash Weight 1.1% HIGHLIGHTS Tracking Error 4.9% 30 ~ 60 holdings Active Money 62.3% Information Ratio 0.43 Invests across all market capitalizations Beta 0.90 Stockpicking focus Fund Size EUR 13.8m Strategy Size EUR 104.8m Benchmark MSCI EM Europe 10/40 Index GROSS FUND PERFORMANCE (%) Portfolio Advisors Julian Mayo and team Period to 30 November 2017 1M 3M 6M YTD 1Y 2Y 3Y 5Y 10Y SI Tracking Error, Information Ratio and Beta are calculated from the last 3 years monthly fund data. Magna Eastern European Fund -2.08 0.01 2.95 3.47 11.76 9.20 4.70 1.28 -2.65 10.22 MSCI EM Europe 10/40 Index -2.57 -2.10 3.06 1.02 10.99 8.98 2.63 -0.83 -2.88 6.20 AWARDS & RATINGS Added Value 0.49 2.11 -0.11 2.45 0.78 0.22 2.07 2.11 0.23 4.02 Calendar Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Magna Eastern European Fund 27.65 -0.44 -25.16 2.77 24.48 -26.40 28.09 110.62 -71.01 29.94 MSCI EM Europe 10/40 Index 29.46 -4.99 -19.74 -8.49 25.45 -21.93 26.18 84.14 -65.11 20.98 Added Value -1.81 4.55 -5.42 11.26 -0.97 -4.47 1.91 26.48 -5.90 8.96 Returns are presented gross of management fees, in EUR SI Since Inception (30 June 2000) GROWTH OF EUR 10,000 TOP HOLDINGS EUR 54,423 Company Name Country Dino Polska Poland KazMunaiGas Kazakhstan LUKOIL Russia MONETA Money Bank Czech Republic Moscow Exchange Russia NOVATEK Russia 2000 2002 2004 2006 2008 2010 2012 2014 2016 PhosAgro Russia PKO Bank Polski Poland Performance is represented by the Magna Eastern European Composite comprising all share classes of the Magna Eastern European Fund. Composite performance figures are shown gross, ie before fees, in EUR. The Index is the MSCI EM Europe Sberbank Russia 10/40 Index (MSCI EM Eastern Europe Index Russia @ 30% prior to 30 June 2006). Performance figures are annualized for X5 Retail Group Russia periods in excess of one year. Past performance should not be seen as an indication of future performance. Charlemagne Capital claims compliance with the Global Investment Performance Standards (GIPS®) and has been independently verified In alphabetical order for the period 1 Jun 2000 through 30 Jun 2017. A copy of the verification report and a presentation that adheres to GIPS Combined weight of top 10 49% standards are available upon request to the Marketing Department. AS AT 30 NOVEMBER 2017 MAGNA EASTERN EUROPEAN FUND EUR SECTOR EXPOSURE (%) COMMENTARY The stockmarkets of Eastern Europe returned a mixed performance in November with a marked divergence between the best and the worst. Russia led the gains, outperforming Turkey, the month’s laggard, by over 11%. While Turkey’s battled with concerns surrounding inflation and Iran sanctions related newsflow, Russia benefited from buoyant oil prices. Brent crude ended the month at USD 63 per barrel, its highest monthly close since May 2015, helped by a nine-month extension to OPEC’s production cutting deal. Russian state lender Sberbank was the standout performer, rising sharply in November, following a Bloomberg report suggesting that it might increase its dividend payout ratio from 25% last year to 35-40% Energy 28.1 this year and 50% in 2018. We believe that Sberbank has the potential to increase its dividend gradually over time, though not as rapidly as suggested by this report. When we last met the Governor of the Central Materials 8.0 Bank of Russia, Sberbank’s regulator, our key takeaway was the importance the central bank put on financial Industrials 2.6 stability and hence capital preservation, reflected in its opposition to the Ministry of Finance’s request that Consumer Discretionary 8.4 all SOEs pay at least 50% of their profits as dividends. Given that Sberbank’s capital ratios trail its peers, Consumer Staples 11.5 and their sensitivity to the exchange rate, we deem such dividend payout expectations as too aggressive. Health Care 0.0 The bank is due to update the market in December at its capital markets day. We expect new guidance on Financials 35.5 dividends to throw some light on the extent of margin compression risk the bank faces from asset repricing and some indication of any mitigating actions they intend to take to support the revenue outlook. Information Technology 3.6 Telecommunication Services 1.2 KazMunaiGas EP, the Kazakh oil company, advanced 11% to make it one of the best performing stocks in the portfolio, on increased optimism that there might be a restructuring of the nation’s oil assets. We met Utilities 0.0 independent members of the board and were impressed with the firm’s governance. Real Estate 0.0 Cash 1.1 Continuing its fall from grace, Russian food retailer Magnit was the most visible laggard in the portfolio. Once the darling of investors, the company is now trying to turn its fortunes around after a series of Total 100.0 disappointing results. The company announced its intention to raise USD730m to fund an accelerated store rollout, refurbishment program and vertical integration initiatives. At the same time, Magnit’s key COUNTRY EXPOSURE (%) shareholder Sergey Galitsky sold USD700m worth of shares. The news of the rights issue and Galitsky’s sale, which was executed at a 10% discount to the prevailing price, weighed heavily on the shares. The Fund remains underweight Magnit, with a strong preference for X5 Retail Group in the food retail sector. SUBSCRIPTION INFORMATION C Shares G Shares R Shares Minimum Subscription EUR 1,000,000 EUR 5,000 EUR 5,000 Czech Republic 3.8 Additional Subscriptions EUR 1,000 EUR 100 EUR 100 Eastern Europe 2.8 Annual Management Fee 1.25% 1.00% 1.75% Kazakhstan 7.6 Performance Fee No No No Poland 12.5 Front-end Load Up to 5% 0% Up to 5% Romania 1.9 WPKN Code 264514 A1W8AZ A1CZH1 Russia 47.0 ISIN Code EUR IE0032812996 IE00BFTW8S59 IE00B3Q7LD52 Turkey 23.3 GBP IE00B3RXYX32 IE00BKRCMQ89 IE00B646Q188 USD IE00B62BG938 IE00BKRCMR96 IE00B61WHY91 Bloomberg Code MAGEURA MAGEURE Valor Number EUR 934851 11378699 Others (inc Cash) 1.1 A full NAV history of all share classes is available on www.charlemagnecapital.com Total 100.0 This document is issued by Fiera Capital (UK) Limited, Address: 39 St James’s Street Tel: + 44 (0)20 7518 2100 Email: [email protected] authorised and regulated by the Financial Conduct Authority (FCA). London SW1A 1JD Fax: + 44 (0)20 7518 2199 Website: www.charlemagnecapital.com This document may not be disclosed, distributed, copied, reproduced or used (in whole or in part) for any purpose without the express written consent of Fiera Capital (UK) Limited (“Fiera”). Fiera has been appointed by Magna Umbrella Fund plc (the “Company”) to procure the distribution of its Shares. The Company is an open-ended umbrella investment company authorised by the Central Bank of Ireland as a UCITS. Fiera Capital (UK) Limited is authorised and regulated by the Financial Conduct Authority (“FCA”). The Company has sought and has been granted approval by the relevant regulatory authorities to market and distribute its Shares as appropriate in the following jurisdictions: UK; Germany; Luxembourg; Austria; *Switzerland; The Netherlands; Denmark; Singapore; France, Finland, Sweden, Spain and Italy. In Canada, the distribution of this document and any other document relating to the distribution or marketing of the Company (including the Prospectus relating to Company), is made and will be made only to accredited investors (as defined in National Instrument 45-106 – Prospectus and Registration Exemptions) or pursuant to another applicable prospectus exemption. In Singapore, this document shall be construed as part of an information memorandum for the purposes of section 305(5) of the Securities and Futures Act (Cap 289) of Singapore (“SFA”). Accordingly, this document must not be relied upon or construed on its own without reference to the information memorandum. This document is not a prospectus as defined in the SFA and, accordingly, statutory liability under the SFA in relation to the content of prospectuses does not apply, and the offeree should consider carefully whether the investment is suitable for him.