Concorde CEE Smallcap Fund Monthly update Mar-10 Portfolio Managers' Comment Investment objectives Concorde Cee Smallcap Fund is an open-end balanced fund incorporated Markets around the world skyrocketed in March. The Polish in Hungary. The Fund invests its assets primarily in undervalued small WIG20 Index was up 10%, the Czech PX Index climbed 5%. The and midcap equities in the CEE region with a marketcap under one billion best performing equity index was the Hungarian BUX Index which Euros. The long-term average target equity exposure is 50 percent. The gained 14%. One of its biggest gainers was OTP Bank which Fund is actively managed based on bottom-up fundamental stock picking jumped 26%. All of the Hungairan blue chip stock were up in investment philosophy. March. State Printing Company, a Hungarian company said it would not pay any dividends in 2010 because the firm has plans on making Fund information aquisitions. Management Company Concorde Asset Management Ltd. Graphisoft Park, a real estate developer will not pay any Fund inception October 4, 2006 dividends either. The company expects the occupancy rate to rise Domicile Hungary from the current level of 77% to 90% in the next 3 years. Custodian Unicredit Bank Ltd ISIN HU0000704903 We raised the proportion of Danubius stocks in March and we Public Marketing Hungary, Spain bought Fondul Proprietae warrants and sold SIF Oltenia stocks. Dealing Daily (17 CET) Number of equity holdings 25 Unit A (HUF) Unit B (EUR) NAV/Share 0.869004 8.871416 Management fee 1.5% 1.5% Incentive fee 20% of return that exceeds RMAX Subscription fee -- Redemption fee -- Minimum subscription 0 0 Bloomberg code CONCEEB HB NAV movements can be followed in: Bloomberg, www.bamosz.hu Performance (Unit B, net of fees) Period Concorde CEE Smallcap 2006 Q4* 3.74% 2007 9.31% 2008 -40.00% 2009 20.97% 2010 YTD 7.18% Sector allocation of equity holdings Asset allocation 70% Other 60.2% 14.0% 60% Telecom Chemicals 4.1% 9.6% Construction 3.1% 50% Electricity Real Estate 0.2% 40% 29.5% Wholesale 5.9% 30% 21.9% IT 20% 9.4% Industrials 12.5% Pharmacy Publishing Mechanics 6.4% 10% 7.2% 5.4% 8.1% 2.6% 0% Equity T-Bonds, T-Notes T-Bills Corporate Bonds Concorde Asset Management Alkotás 50, Budapest, 1123 HUNGARY www.concordealapkezelo.hu Tel: +36-1-489-2280 Fax: +36-1-489-2290 Data is historical. Past performance is not a guarantee of future results. More recent returns may be more or less than those shown. Investment return and principal value will fluctuate, and you may have gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Sectors and holding will vary over time. While diversification and rebalancing can help protect returns from excessive volatility, they cannot ensure protection against market loss. The portfolios invest in international investments, which involve risks such as currency fluctuations, economic instability, and political developments. The portfolios invest their assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations. The portfolios can also have a significant portion of their holdings in bonds. Mutual funds that invest in bonds are subject to certain risks including interest rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds have more exposure to interest rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses..