MUTUAL FUNDS MONTHLY REVIEW 2011

MUTUAL FUNDS MONTHLY REVIEW 2011 February CONTENT New Europe TOP20 Subfund 1 Russia TOP20 Subfund 2 Global Flexible Subfund 3 Emerging Europe Bond Subfund 4 World Equity Subfund of Funds 5 New Europe TOP20 Subfund Subfund strategy Finasta New Europe TOP20 subfund has a concentrated portfolio of 15 - 25 region’s best investment ideas (close to minimum allowed by UCITs). Every pick comes from a thorough fundamental bottom-up analysis. Concentrated portfolio means maximum focus on each investment idea, high leverage on best picks. Higher concentration comes with the risk of higher deviation in subfund’s net asset values. Aim of the subfund: to achieve maximum equity return while investing in Eastern Europe ex Russia region. Recommended term of investment: more than 5 years. Year to date return 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% 2010.12.31 2011.01.14 2011.01.28 2011.02.11 2011.02.25 Subfund returns Fund managers comment Monthly +0,21 % YTD +3,04 % Since inception +2,87 % Beginning of the year 2011 was successful for Finasta New Europe TOP20 sub-fund: unit value has increased by 3% and outperformed its benchmark by more than 1% in the first two months. Much changes were done in the fund as fund structure was preparing for the year 2011. Major investments were done in Balkan region – having one the lowest valuations in the region, banks “AIK banka” from Serbia and “Central Past performance of subfund does not guarantee the future results. Your investment value may rise or fall depending on market conditions. You may earn less than you had invested. Subfund data cooperative bank” from Bulgaria became one of the top companies in the fund. Energy holding “Fondul proprietatea” from Romania was also included in the fund because of its attractive valuation and reliable and famous manager “Franklin Templeton”. Priority for Balkan region could be explained by several reasons: firstly, economies of these countries have already started growing again but investors haven’t come there. Stock markets haven’t increased significantly since the bottom in the year 2009 so companies’ valuation looks attractive. TOP 5 positions 2011 02 28 Management company UAB „Finasta Asset Management“ Date of subfund inception 2010-10-29 Currency of subfund LTL NAV 67,095 mln. LTL 19,432 mln. EUR Subfund unit value 102,87 LTL Minimum investment 100 LTL Applied fees: Management fee 1,5 % Success fee 15 % Distribution fee 2 % Subfund switching fee 0,25 % AIK banka a.d. Nis Sanitas BRD-Groupe Societe Generale Fondul Prorieratea Central Cooperative Bank AD 8,4% 7,6% 6,6% 5,2% 5,0% Investments by industries Investments by countries Commercial Banks Diversified Financial Services Pharmaceuticals Construction & Engineering FoodProducts Diversified Telecommunication Services Insurance Hotels, Restaurants & Leisure Food& Staples Retailing Metals & Mining Cash andmoney market 30,8% Romania 12,5% Lithuania 12,4% Croatia 7,8% Serbia 6,3% Bulgaria 6,1% Poland 4,2% 3,8% Ukraine Czech 2,7% Republic 2,2% Georgia 4,5% Austria 18,0% 14,8% 12,6% 10,1% 9,7% 6,4% 4,6% 4,4% 4,3% 3,9% Russia TOP20 Subfund Subfund strategy Finasta Russia TOP20 subfund has a concentrated portfolio of 15 - 25 region’s best investment ideas (close to minimum allowed by UCITs). Every pick comes from a thorough fundamental bottom-up analysis. Concentrated portfolio means maximum focus on each investment idea, high leverage on best picks. Higher concentration comes with the risk of higher deviation in subfund’s net asset values. Aim of the subfund: to achieve maximum equity return while investing in Russia and CIS region. Recommended term of investment: more than 5 years. Year to date return 6% 5% 4% 3% 2% 1% 0% -1% -2% 2010.12.31 2011.01.14 2011.01.28 2011.02.11 2011.02.25 Subfund returns Fund managers comment Monthly +1,83 % YTD +2,19 % Since inception +2,08 % This winter was good for Russian stock market. RTS index returned 16.5% (EUR) and was better investment compared to other BRIC countries. Arab revolutions erupted with full strength in January and caused oil price to rally above 100 USD per barrel. Oil and Gas sector has approximately half of weight in RTS index, thus investors were directing their funds to Russia. Finasta Russia Fund was merged to Past performance of subfund does not guarantee the future results. Your investment value may rise or fall depending on market conditions. You may earn less than you had invested. Subfund data 2011 02 28 newly established Finasta Russia Top20 fund on the last day of 2010. Though there are no drastic changes in investment process and philosophy of Russian fund, the investors now can enjoy modern and much more flexible umbrella format of the fund. Most portfolio changes in January-February were natural stock rotation in order to adjust to new market reality. We were gradually increasing Oil and Gas sector exposure since Q4 2010 with further acceleration in January 2011. Today this sector makes around 35% weight in Russia Top20 portfolio. Fund also added several positions related to agricultural commodity theme in the beginning of the year (Avangard, Acron). We see rise in soft commodity prices as long term trend -thus should be of interest to investors. TOP 5 positions Management company“ Date of subfund inception Currency of subfund NAV Subfund unit value Minimum investment Applied fees: Management fee Success fee Distribution fee Subfund switching fee Finasta Asset Management 2010-10-29 LTL 21,250 mln. LTL 6,154 mln. EUR 102,08 LTL 100 LT 1,5 % 15 % 2 % 0,25 % Lukoil GDR 9,3% Gazprom GDR 9,3% Sberbank 8,0% Rosneft Oil GDR 4,8% Nizhnekamskneftekhim 4,6% Investments by industries Oil, Gas & Consumable Fuels Commercial Banks Chemicals Metals & Mining Diversified Telecommunication Services Food Products Food& Staples Retailing Specialty Retail Beverages Pharmaceuticals Cash and money market 32,3% 10,9% 9,1% 7,6% 6,3% 4,5% 4,1% 4,0% 3,5% 3,2% 7,3% Global Flexible Subfund Subfund strategy Finasta Global Flexible Subfund is considered as actively managed subfund. Subfund investments are diversified and allocated among different regions and assets classes: equity, bonds and other fixed income securities, hedge funds, commodities and currencies. Aim of the subfund: to seek maximum return with risk lower than equity investments. Recommended term of investment: 2 - 3 years. Year to date return 3% ... - --nqh--