(An Umbrella fund under the laws of Ireland) · Hamon Asian Funds HAMON INVESTMENT GROUP 3 INVESTMENT MANAGER’S REPORT HAMON ASIAN MARKET LEADERS FUND PERFORMANCE OVERVIEW 2015

HAMON ASIAN FUNDS (An Umbrella fund under the laws of Ireland)

Annual Report And Audited Financial Statements

For the year ended 31 December 2015

HAMON INVESTMENT GROUP (Hamon's group of companies which include Hamon Ireland Limited and

Hamon Asset Management Limited)

Hamon Asian Funds

HAMON INVESTMENT GROUP 1

Table of Contents Page

Investment Objective 2

Investment Manager’s Report 3

Hamon Asian Market Leaders Fund

Investment Portfolio 9

Statement of Significant Portfolio Changes (unaudited) 11

Hamon Greater China Fund

Investment Portfolio 13

Statement of Significant Portfolio Changes (unaudited) 15

Statement of Financial Position 18

Statement of Operations 19

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units 20

Notes to the Financial Statements 21

Statement of Manager’s Responsibilities 37

Report of the Trustee to the Unitholders 38

Independent Auditors’ Report 39

Other Information 41

Unaudited Appendix of Information 43

Hamon Asian Funds

HAMON INVESTMENT GROUP

2

INVESTMENT OBJECTIVE

HAMON ASIAN MARKET LEADERS FUND The investment objective of the Hamon Asian Market Leaders Fund (the “Sub-Fund”) is to achieve capital appreciation by investing in the shares of regional Asian blue chip companies and emerging blue chip growth companies. The Sub-Fund invests its assets in most of the stock markets of the Asian region including Hong Kong, China, South Korea, Taiwan, Singapore, Thailand, Malaysia, Indonesia, the Philippines and India. The Sub-Fund aims to outperform the benchmark, MSCI Daily TR AC FE ex-Japan, through careful stock selection and being managed by an excellent team of investment professionals. They are experienced fund managers from mainland China, Hong Kong and Britain.

SUB-FUND INFORMATION

Inception Date

Inception Price (per unit)

USD Class 20 December 1995 US$ 10.00

Sterling Class 23 November 2007 GBP 17.96

USD Institutional Class 9 April 2014 US$ 10.00

Authorisation : Established as an Undertaking for Collective Investment in Transferable Securities (UCITS) and approved by the Securities and Futures Commission in Hong Kong.

Listing : Irish Stock Exchange

Price Information : Financial Times South China Morning Post Hong Kong Economic Journal Der Standard Neue Zürcher Zeitung Börsen-Zeitung

HAMON GREATER CHINA FUND The investment objective of the Hamon Greater China Fund (the “Sub-Fund”) is to achieve long-term capital appreciation investing at least two thirds of its total assets in securities of companies domiciled in or exercising the predominant part of their economic activities in Greater China region including China, Taiwan, Singapore and Hong Kong and the remaining assets will be invested in securities issued by companies in other Asian regions. The Sub-Fund may invest up to 5% of its net asset value in Eligible Collective Investment Schemes with investment policies similar to the Sub-Fund.

SUB-FUND INFORMATION

Inception Date

Inception Price (per unit)

USD Class 10 March 2008 US$ 10.00

Sterling Class 11 March 2008 GBP 4.95

USD Institutional Class 15 April 2014 US$ 10.00

Authorisation : Established as an Undertaking for Collective Investment in Transferable Securities (UCITS) and approved by the Securities and Futures Commission in Hong Kong.

Listing : Irish Stock Exchange

Price Information : Financial Times South China Morning Post Hong Kong Economic Journal Der Standard Neue Zürcher Zeitung Börsen-Zeitung

Hamon Asian Funds


INVESTMENT MANAGER’S REPORT

HAMON ASIAN MARKET LEADERS FUND

PERFORMANCE OVERVIEW

2015 was a volatile year for Asia, which began strongly, however, lost momentum towards the end of the year. For the year ended 31 December 2015, the net asset value per unit of the Hamon Asian Market Leaders Fund fell 5.71% to US$24.65, outperforming the MSCI Daily TR AC FE ex-Japan Net Index, which lost 9.51%. The Sub-Fund’s Taiwanese and selective Chinese holdings, in particular A-shares, performed well in 2015. Taiwanese auto parts manufacturers and textile companies, such as Hota Industrial Manufacturing and Eclat Textile, as well as Chinese consumer and healthcare companies rallied significantly to become the Sub-Fund’s top performers. However, performance was dragged down by some Chinese financials and selective tech names. Indian holdings in the portfolio corrected and contributed negatively to the Fund’s performance, especially the Indian auto and infrastructure investments. The performance of ASEAN investments were mixed. Philippine and Malaysian names contributed positively to performance, while Thai and Indonesian holdings fell. MARKET REVIEW It was a difficult and volatile year for the Asian equity markets in 2015, where “buy and hold” did not work. Asian markets initially rallied on expectations of monetary easing and interest rate cuts across the region at the beginning of 2015. However, a correction began in May and June, sparked by the selloff in the Chinese A-share market, concerns of a MERS virus outbreak in Korea, and the Greek debt crisis. The markets rebounded strongly in October, on stabilization of GEM fund outflow and domestic buying support across the region. However, the bounce lost momentum from November and the markets continued declining to early December ahead of the FMOC’s meeting.

Macro-economic data, such as export and industrial production figures, remained soft across the region. Both Taiwan and Korea posted double-digit declines in export numbers on weak semiconductor and energy industries. In China, fixed asset investment in the real estate sector fell to 2.8% YoY growth in November, the lowest level since 2009. In China, the year began strongly with continued strength in A-shares, which brought about a catch-up rally in the Hong Kong market, and investors welcomed the regulators’ gesture to promote direct financing from equities as an effective support to the real economy. However, despite monetary loosening efforts, including Required Reserve Ratio (RRR) and benchmark interest rate cuts, as well as supportive property measures aiming at inventory clearance, investors failed to find meaningful signs of macro stabilization. Also, regulators began to reduce margin financing, and a sharp correction in the market took place as a result of negative spiral effects of margin calls and panic selling in the late summer. Alongside CNY depreciation, which negatively affected market sentiment and pulled the market down. However, the Shanghai Composite and Hang Seng Index ended the year up 4.69% and down 7.12% respectively. The Indian market fell 9.34% in 2015. The market was buoyant until the Modi government presented its first budget, and we saw profit taking on concerns of a weak monsoon season, Greece debt crisis, and a tax on foreign investors. Political issues brought up by the Opposition Party once again led to a wasted winter session of Parliament in December, which delayed the passing of the GST bill. The government now expects the bill to be cleared at the Budget session in February. In early November, the ruling government lost the critical state election in Bihar, making them more vulnerable to the opposition front. In the ASEAN region, the Philippine market, though down for the year, performed relatively better to its peers. The Philippine, Indonesia, Malaysia, Singapore, and Thai markets fell 8.37%, 21.35%, 21.83%, 19.92%, and 21.61% respectively in 2015. Fund outflows, a slowdown in China, and currency weakness pulled the region down significantly over the period.

Hamon Asian Funds



HAMON ASIAN MARKET LEADERS FUND (continued) MARKET REVIEW (continued)

The export-oriented markets of Korea and Taiwan fell 4.71% and 13.94% over the year due to a sluggish economic environment and negative exports outlook. Weak smartphone and PC sales globally pulled down tech sectors in Taiwan. The Central Bank of Taiwan cut the policy rate twice at the end of the year to stimulate the domestic economy. In Korea, the domestic economy suffered at the beginning of the year from the MERS virus, which dampened tourism, however, we saw improvements in September after active promotion of the country by the Korean government to Chinese tourists. Nevertheless, the market suffered from foreign redemption outflows and weak GDP growth.

MARKET OUTLOOK

We expect a moderate recovery in the Asian markets in 2016, despite the macro challenges, as global investors already have negative views towards the Asian and global emerging markets and are underweight by the year end of 2015. Also, valuation of the Asian markets currently stands at 1.3x trailing price-to-book multiple, which is the lowest level in the last seven years. Consensus forecasts are looking for mid-single-digit earnings growth for 2016 so the current expectations are rather low for the Asian markets going into the New Year. We do not expect significant improvements in macro-economic data in Asia in the first quarter of 2016, as industrial activities will be slowing down in the traditional weak season during the Chinese New Year. Also, the warm weather, caused by the El Nino effect, could negatively affect the export sectors in Asia, such as textile and garment manufacturers, on deepening inventory adjustment and weaker near-term demand from consumers in the developed economies. Although the US Fed should further raise interest rates in the latter part of 2016, we expect Asian central banks to continue to adopt accommodative monetary policies and cut interest rates at the expense of weaker currencies. Asian governments will pursue aggressive fiscal policies, such as tax cuts and infrastructure spending to stimulate domestic growth. China-led Asian Infrastructure Bank will start operating in early 2016 with an initial capital of USD 100 billion. In China, we see abundant investment opportunities despite some challenges. Structurally speaking, China is at a critical juncture, where quality growth in the “new economy” has been resilient and robust, driven by healthy fundamental supply-demand ecosystem, despite the weakening “old economy”. Reforms are being pushed forward steadily from the high level in order to facilitate such economic restructuring, one example being the supply side reform which aims to expedite the elimination of excessive capacity. Both fiscal and monetary policies are likely to remain supportive and expansionary, in order to create buffer amid macro economy deceleration. The Fund believes India will remain resilient on a relatively stable currency, fiscal discipline and improving macro conditions. Domestic-related infrastructure and consumer will benefit from spending while export related stocks will perform well on USD strength. In Taiwan, the landslide victory of the DPP in both Presidential and Legislative Yuan elections did not upset the markets. Investors will monitor the effect this may have on Taiwan’s cross strait relationship with China. We continue to favour non-tech exporters, such as auto part manufacturers and textile companies, as well as leading semiconductor and industrial automation companies. In Korea, the government cut the 2016 GDP growth forecast to 3.1% in mid-December. The Bank of Korea stated that they would maintain its current policy stance and keep monetary policy accommodative as the economic growth is expected to recover very gradually. Inflation in Korea is still currently below the Bank of Korea’s target of 2%. We prefer EMS, new materials and cosmetic companies in Korea. We believe liquidity should improve in the ASEAN region, with increased government spending on infrastructure, continued reforms and possible rate cuts. Within the region, we maintain our positive stance towards the Philippines and will look to add exposure to Indonesia and Thailand. We are positive towards consumer, property and infrastructure stocks in the region.

Hamon Asian Funds



HAMON ASIAN MARKET LEADERS FUND (continued) MARKET OUTLOOK (continued) The Fund remains fully invested and the portfolio is positioned to participate in the market recovery, focusing on the following bottom-up opportunities: (1) secular growth sectors in China and India, such as healthcare, energy savings, environmental protection, infrastructure, internet and IT services; (2) US

dollar earners with domestic cost base; (3) leading semiconductor and EMS companies in Korea and Taiwan; (4) companies with domestic franchises at attractive valuations like Thai convenience stores and Hong Kong landlords; (5) selective small-cap opportunities in niche segments like new materials, education and OTT.

Hamon Asset Management Limited 9 March 2016

Hamon Asian Funds



HAMON ASIAN MARKET LEADERS FUND (continued)

Geographical Distribution

Hong Kong/China/Macau

47.87%

India16.04%

South Korea12.66%

Singapore5.45%

Philippines3.85%

Taiwan12.60%

Thailand1.44%

Cash0.70% Other Net Liabilities

(0.61%)

12 months to

31st Dec 2015

Since Inception

20th December 1995

Hamon Asian Market Leaders Fund (USD class) -5.71% 146.52%

MSCI Daily TR AC FE ex-Japan Net -9.51% N/A

Past performance is no indication of current or future performance and the performance data do not take account of the commissions and costs incurred on the issue and redemption of units. The Total Expense Ratio for the year ended 31 December 2015 is 2.82%.

Hamon Asian Funds



HAMON GREATER CHINA FUND

PERFORMANCE OVERVIEW

2015 has been a volatile and difficult year for the Chinese equity markets. The Shanghai Composite ended the year up 4.69%, while the Hang Seng index was down 7.12%. For the year ended 31 December 2015, the net asset value per unit of the Hamon Greater China Fund fell 3.92% to US$10.56, outperforming the MSCI AC Golden Dragon Net USD Index, which lost 7.43%. Healthcare, consumer, industrials, and selective tech names performed well, leading to the Sub-Fund’s outperformance, while telecom, materials, and financial names dragged on the Sub-Fund.

MARKET REVIEW

The year began strongly as investors welcomed the regulators’ gesture to promote direct financing from equities market as an effective support to the real economy. The continued strength in A-Shares brought about a catch-up rally in Hong Kong, facilitated by the Shanghai-Hong Kong Connect scheme, which was introduced in November 2014. Amid a frenetic market activity, the Shanghai Composite Index broke the 5000 level to a record high post 2008 financial crisis in June, which represented over 60% rise from the end of 2014. However, the market then collapsed by 28% from June to November due to fears of over borrowing, margin calls, and declining corporate earnings. Despite monetary loosening efforts, including Required Reserve Ratio (RRR) and benchmark interest rate cuts, as well as supportive property measures aiming at inventory clearance, investors failed to find meaningful signs of macro stabilization. Also, regulators reining in margin financing, one of the major factors fueling the market rally. The market only moderately recovered at the end of the year. The policy makers continued their efforts to introduce supportive measures in order to boost selective sectors, such as auto and property. Supply side reform was also advocated at the Central Economic Work Conference level, pointing to clearance of excessive capacity. However, in absence of meaningful macro and fundamental improvement, the market failed to stage sustained relief rallies and range-bound traded in the later months of the year. Another key event in 2015 was Renminbi depreciation. The People’s Bank of China (PBOC) announced they would reform the onshore foreign exchange market fixing rate setting mechanism in August. Shortly after the IMF’s announcement to include the Renminbi in the Special Drawing Rights (SDR) basket, the PBOC introduced a trade-weighted CFTES (China Foreign Exchange Trade System) RMB Index, aiming to divert market focus on CNY to USD exchange rate. CNY lost close to 5.8% against the USD since August, and China forex reserve dropped to US$3.3 trillion from US$3.9 trillion because of the PBOC’s intervention. Elsewhere, the Central Bank of Taiwan cut its benchmark interest rate twice during the year, the first reduction in more than six years. The rate cut came amid weak industrial production and exports figures due to the slowdown in China, as well as weaker than expected domestic GDP growth. Taiwanese tech companies were among Asia’s worst performers over the year, due to weak smartphone and PC demand. The Taiex fell 13.94% over the year. MARKET OUTLOOK

Going into 2016, we see abundant investment opportunities despite some challenges. Structurally, China is at an important juncture, where quality growth in the “new economy” needs to be seen as resilient and robust driven by healthy fundamental supply-demand ecosystem, despite the weakening “old economy”. Reforms are being pushed forward steadily from the senior government in order to facilitate economic restructuring. One example being the supply side reform which aims to expedite the elimination of excessive capacity. Both fiscal and monetary policies are likely to remain supportive and expansionary, in order to create a buffer amid the macro economy deceleration.

After the recent market correction, the risk-reward profile of China has become very attractive. In a dynamic year of economic restructuring, we expect notable divergence in sectors. We endeavor to identify bright spot sectors with sustainable earnings visibility and at attractive valuations. We remain firmly positioned with such investment opportunities in renewable & environment, healthcare, IT, modern agriculture, as well as selective stocks which are potentially clear beneficiaries in imminent SOE reforms. The portfolio of stocks are expected to deliver over 20% earnings growth in 2016, at 15x forward PE multiple.

Hamon Asset Management Limited

9 March 2016

Hamon Asian Funds



HAMON GREATER CHINA FUND (continued)

Geographical Distribution

12 months to

31st Dec 2015

Since Inception

7th

March 2008

Hamon Greater China Fund (USD class) -3.92% 5.64%

MSCI AC Golden Dragon Net USD Index -7.43% 16.59%

Past performance is no indication of current or future performance and the performance data do not take account of the commissions and costs incurred on the issue and redemption of units. The Total Expense Ratio for the year ended 31 December 2015 is 3.74%.

Hamon Asian Funds


INVESTMENT PORTFOLIO As at 31 December 2015


9

No. of Shares Held Description

Fair Value

US$

%

of Net Assets

Transferable securities admitted to an official stock exchange

China/Hong Kong/Macau (31 December 2014: US$15,412,631, 55.47%)

70,000 AIA Group Ltd 420,885 1.98 708,000 AviChina Industry & Technology Co Ltd 'H' 557,241 2.62 300,000 Beijing Enterprises Water Group Ltd 210,184 0.99

1,100,000 China Foods Ltd 485,398 2.28 362,000 China Medical System Holdings Ltd 533,401 2.50 550,000 China State Construction International Holdings Ltd 955,184 4.49 170,000 China Taiping Insurance Holdings Co Ltd 526,429 2.48 400,921 Chongqing Changan Automobile Co Ltd 'B' 884,575 4.17

33,500 CK Hutchison Holdings Ltd 452,123 2.12 10,220,000 Concord New Energy Group Ltd 613,173 2.88

230,000 Dongjiang Environmental Co Ltd 'H' 389,944 1.83 124,188 Hangzhou Hikvision Digital Tech 'A' - CICC Financial Trading

Limited Participatory Note 23/04/2018 657,697 3.09 1,450,000 Huaneng Renewables Corp Ltd 'H' 434,046 2.04

53,484 Jiangsu Hengrui Medicine Co Ltd 'A' - Morgan Stanley Participatory Note 16/03/2017 404,573 1.90

508,000 NewOcean Energy Holdings Ltd 199,258 0.94 120,000 Ping An Insurance Group Co of China Ltd 'H' 665,777 3.13 550,000 Sihuan Pharmaceutical Holdings Group Ltd 233,474 1.10

31,000 Sun Hung Kai Properties Ltd 374,384 1.76 36,900 Tencent Holdings Ltd 726,065 3.41 79,000 Zhuzhou CSR Times Electric Co Ltd 'H' 459,200 2.16

10,183,011 47.87

India (31 December 2014: US$6,273,519, 22.58%)

166,000 Dewan Housing Finance Corp Ltd 589,880 2.77 22,030 Eros International Plc 208,404 0.98 37,000 Infosys Ltd 617,798 2.90

385,000 NCC Ltd/India 440,814 2.07 48,000 Sun Pharmaceutical Industries Ltd 594,649 2.81 84,000 Tata Motors Ltd 496,495 2.33 46,750 Tree House Education and Accessories Ltd 124,073 0.58 31,000 Yes Bank Ltd 339,863 1.60

3,411,976 16.04

Indonesia Nil (31 December 2014: US$871,813, 3.14%)

Malaysia Nil (31 December 2014: US$838,342, 3.02%)

Philippines (31 December 2014: US$1,287,283, 4.63%)

550,000 Ayala Land Inc 402,667 1.89 2,143,500 D&L Industries Inc 416,811 1.96

819,478 3.85

Singapore (31 December 2014: US$Nil, 0.00%)

820,000 SIIC Environment Holdings Ltd 444,280 2.09 1,114,000 Technovator International Ltd 714,366 3.36

1,158,646 5.45

Hamon Asian Funds


INVESTMENT PORTFOLIO As at 31 December 2015 (continued)



Fair Value

US$

%

of Net Assets

Transferable securities admitted to an official stock exchange (continued)

South Korea (31 December 2014: US$1,322,795, 4.76%)

5,100 Amorepacific Group 643,725 3.03 6,000 Dongbu Insurance Co Ltd 359,729 1.69

45,000 Finetex EnE Inc 229,884 1.08 29,000 Hansol Technics Co Ltd 708,583 3.32

700 Samsung Electronics Co Ltd 752,207 3.54

2,694,128 12.66

Taiwan (31 December 2014: US$843,396, 3.04%)

390,000 Advanced Semiconductor Engineering Inc 451,183 2.12 132,616 Delta Electronics Inc 627,814 2.95 234,000 Hota Industrial Manufacturing Co Ltd 861,997 4.05 170,000 Taiwan Semiconductor Manufacturing Co Ltd 740,098 3.48

2,681,092 12.60

Thailand (31 December 2014: US$994,563, 3.58%)

280,000 CP ALL PCL - NVDR 305,405 1.44

305,405 1.44

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 21,253,736 99.91

CASH 149,839 0.70

OTHER NET LIABILITIES (130,102) (0.61)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING UNITS 21,273,473 100.00

Hamon Asian Funds



STATEMENT OF SIGNIFICANT PORTFOLIO CHANGES (unaudited)

TOP 1% TRANSACTIONS For the year ended 31 December 2015

Top 1% Purchases Cost US$

Morgan Stanley Asia Products Ltd Participatory Note 30/03/2016 1,425,970

China Unicom Hong Kong Ltd 1,386,402

Concord New Energy Group Ltd 1,213,857

Dewan Housing Finance Corp Ltd 1,047,970

DBS Group Holdings Ltd 1,038,385

LG Household & Health Care Ltd 911,043

China Everbright Ltd 873,440

GF Securities Co Ltd ‘H’ 845,881

Hansol Technics Co Ltd 845,818

Shinhan Financial Group Co Ltd 842,183

Technovator International Ltd 835,227

Sitronix Technology Corp 794,384

Nari Tech Ord 'A' - Credit Suisse AG Participatory Note 09/06/2020 779,605

NAVER Corp 752,044

Metropolitan Bank & Trust Co 736,784

China State Construction International Holdings Ltd 736,098

Dongjiang Environmental Co Ltd 'H' 727,728

Samsung Electronics Co Ltd 718,431

Amorepacific Group 714,966

Huaneng Renewables Corp Ltd 'H' 695,218

Hangzhou Hikvision Digital Tech 'A' - CICC Financial Trading Limited Participatory Note 23/04/2018 694,511

LG Innotek Co Ltd 686,389

Bank of China Ltd ‘H’ 675,431

Delta Electronics Inc 666,998

China CITIC Bank Corp Ltd 663,689

Taiwan Semiconductor Manufacturing Co Ltd 661,174

China Foods Ltd 653,776

NewOcean Energy Holdings Ltd 653,715

Tata Motors Ltd 636,307

Dongbu Insurance Co Ltd 631,728

Jiangsu Hengrui Medicine Co Ltd 'A' - Morgan Stanley Participatory Note 16/03/2017 631,606

CITIC Securities Co Ltd 'H' 628,085

Chongqing Rural Commercial Bank Co Ltd 'H' 619,474

Infosys Ltd 613,960

SIIC Environment Holdings Ltd 612,841

China High Speed Transmission Equipment Group Co Ltd 612,197

Zhejiang Yasha Decoration Co Ltd - Morgan Stanley Participatory Note 12/05/2017 601,919

China Shipping Development Co Ltd ‘H’ 599,911

Hamon Asian Funds





Top 1% Sales Proceeds

US$ Morgan Stanley Asia Products Ltd Participatory Note 30/03/2016 1,742,226

Ping An Insurance Group Co of China Ltd 'H' 1,594,481


China Cinda Asset Management Co Ltd 'H' 1,309,877

Sadbhav Engineering Ltd 1,246,098

LG Household & Health Care Ltd 1,057,258

China Resources Land Ltd 958,290

NCC Ltd/India 924,350

DBS Group Holdings Ltd 909,981

Sinotrans Ltd 903,673

Industrial & Commercial Bank of China Ltd ‘H’ 847,847

China Construction Bank Corp ‘H’ 840,858

China CNR Corp Ltd 838,521

Shinhan Financial Group Co Ltd 803,054

Crompton Greaves Ltd 783,667


China Foods Ltd 775,436

Sitronix Technology Corp 771,338

China Shipping Development Co Ltd ‘H’ 765,966 Yes Bank Ltd 760,545

SK Hynix Inc 748,675

China Pacific Insurance Group Co Ltd - Credit Suisse Participatory Note 24/10/2019 744,804

Metropolitan Bank & Trust Co 722,310

My EG Services Bhd 704,789

Security Bank Corp 701,987

Cox & Kings Ltd 673,516

Krung Thai Bank PCL - NVDR 671,647

Concord New Energy Group Ltd 668,788


Robinsons Land Corp 656,352

China High Speed Transmission Equipment Group Co Ltd 655,560

Hamon Asian Funds


INVESTMENT PORTFOLIO As at 31 December 2015


13

.


Fair Value

US$

%

of Net Assets

Transferable securities admitted to an official stock exchange

China/Hong Kong/Macau (31 December 2014: US$13,587,857, 100.66%)

17,000 AAC Technologies Holdings Inc 110,879 0.96 88,000 Anhui Conch Cement Co Ltd 'H' 236,738 2.05

608,000 AviChina Industry & Technology Co Ltd 'H' 478,534 4.15 900,000 Bank of China Ltd 'H' 401,789 3.48 329,000 BBMG Corp 'H' 223,710 1.94 340,000 Beijing Enterprises Water Group Ltd 238,209 2.06 245,000 Belle International Holdings Ltd 183,979 1.59

37,000 China Aviation Optical-Electrical Technology Co Ltd - Citigroup Global Markets Holdings Inc Participatory Note 12/02/2016 216,293 1.87

311,000 China Construction Bank Corp 'H' 213,076 1.85 122,000 China Everbright Ltd 280,509 2.43

1,014,000 China Foods Ltd 447,449 3.88 22,500 China International Travel Service Corp Ltd 'A' - CICC Financial

Trading Limited Participatory Note 24/02/2018 205,506 1.78 2,000 China International Travel Service Corp Ltd 'A' - Credit Suisse

AG Participatory Note 22/10/2019 18,267 0.16 187,500 China Merchants Bank Co Ltd 'H' 442,723 3.83 520,000 China Unicom Hong Kong Ltd 634,037 5.50 282,000 CSPC Pharmaceutical Group Ltd 288,173 2.50 333,600 Dongjiang Environmental Co Ltd 'H' 565,589 4.90 196,000 Far East Horizon Ltd 182,335 1.58

89,000 Hangzhou Hikvision Digital Tech 'A' - CICC Financial Trading Limited Participatory Note 23/04/2018 471,343 4.08

33,800 Hangzhou Hikvision Digital Technology Co Ltd 'A' - Morgan Stanley Participatory Note 24/04/2017 179,004 1.55

800,000 Huadian Fuxin Energy Corp Ltd 'H' 229,151 1.99 1,248,000 Huaneng Renewables Corp Ltd 'H' 373,579 3.23

35,940 Humanwell Healthcare Group Co Ltd- Citigroup Global Markets Holdings Inc Participatory Note 17/01/2017 123,202 1.07

47,000 Jiangsu Hengrui Medicine Co Ltd 'A' - Morgan Stanley Participatory Note 16/03/2017 355,525 3.08

72,000 Kingenta Ecological Engineering Group Co Ltd - Citigroup Global Markets Holdings Inc Participatory Note 17/01/2017 225,527 1.95

333,000 Luye Pharma Group Ltd 347,164 3.01 56,708 Org Packaging Co Ltd - Morgan Stanley Participatory Note

10/04/2017 246,792 2.15 73,000 Ping An Insurance Group Co of China Ltd 'H' 405,015 3.51 3,800 Qingdao Haier Co Ltd 'A' - CICC Financial Trading Limited

Participatory Note 10/12/2017 5,805 0.05 970,000 Shanghai Jin Jiang International Hotels Group Co Ltd 'H' 409,260 3.55 586,447 SSY Group Ltd 151,335 1.31

54,400 Tencent Holdings Ltd 1,070,405 9.28 45,000 Zhuzhou CSR Times Electric Co Ltd 'H' 261,569 2.27

10,222,471 88.59

Singapore (31 December 2014: US$Nil, 0.00%)

650,000 SIIC Environment Holdings Ltd 352,173 3.05 148,000 Technovator International Ltd 94,907 0.82

447,080 3.87

Hamon Asian Funds


INVESTMENT PORTFOLIO As at 31 December 2015 (continued)



Fair Value

US$

%

of Net Assets

Transferable securities admitted to an official stock exchange (continued)

South Korea (31 December 2014: US$Nil, 0.00%)

530 Amorepacific Corp 187,357 1.62

187,357 1.62

Taiwan (31 December 2014: US$Nil, 0.00%)

49,000 Delta Electronics Inc 231,970 2.01 37,000 Nan Liu Enterprise Co Ltd 195,437 1.69 56,000 Taiwan Semiconductor Manufacturing Co Ltd 243,796 2.12

671,203 5.82

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 11,528,111 99.90

CASH 251,529 2.18

OTHER NET LIABILITIES (239,449) (2.08)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING UNITS 11,540,191 100.00

Hamon Asian Funds





Top 1% Purchases Cost US$


China Everbright Ltd 747,166

Tencent Holdings Ltd 717,023

BBMG Corp 'H' 709,684

Shanghai Jin Jiang International Hotels Group Co Ltd 'H' 632,814

China Avionics System - Credit Suisse AG Participatory Note 21/01/2020 617,629

AviChina Industry & Technology Co Ltd 'H' 574,126

Ping An Insurance Group Co of China Ltd 'H' 559,334

SIIC Environment Holdings Ltd 559,260

Hangzhou Hikvision Digital Tech 'A' - CICC Financial Trading Limited Participatory Note 23/04/2018 515,721

China Merchants Bank Co Ltd 'H' 488,371

Kingenta Ecological Engineerin 'A' - CICC Financial Trading Limited Participatory Note 27/04/2018 469,700


China Harmony New Energy Auto Holding Ltd 464,436

Far East Horizon Ltd 463,996

Dongjiang Environmental Co Ltd 'H' 461,082

Huaneng Renewables Corp Ltd 'H' 457,100

Jiangsu Hengrui Medicine Co Ltd 'A' - Morgan Stanley Participatory Note 16/03/2017 445,991

Baidu Inc - ADR 417,194

Zhejiang Yasha Decoration Co Ltd 407,251

Nari Tech Ord 'A' - Credit Suisse AG Participatory Note 09/06/2020 405,556

CAR Inc 404,647

China Water Affairs Group Ltd 362,053

Bank of China Ltd 'H' 358,223


Luye Pharma Group Ltd 351,155

Hangzhou Hikvision Digital Technology Co Ltd 'A' - Morgan Stanley Participatory Note 24/04/2017 323,059

Shenzhen O-Film Tech Co 'A' - Credit Suisse AG Participatory Note 06/05/2020 316,712


Sailun Jinyu Group Co Ltd - Morgan Stanley Participatory Note 23/03/2015 313,144

China Shipping Development Co Ltd 308,533

China CITIC Bank Corp Ltd 'H' 307,038

Zhuzhou CSR Times Electric Co Ltd 'H' 282,622

AAC Technologies Holdings Inc 280,142

Anhui Conch Cement Co Ltd 'H' 273,960

China Life Insurance Co Ltd ‘H’ 272,371

Hengan International Group Co Ltd 270,272

Eclat Textile Co Ltd 269,928

China Galaxy Securities Co Ltd ‘H’ 263,735

Wuhan Iron & Steel Co Ltd 'A'- Citigroup Global Participatory Note 12/08/2015 263,291

GOME Electrical Appliances Holding Ltd 258,307

Belle International Holdings Ltd 258,161

Shanghai Jahwa 'A' - Citigroup Global Participatory Note 15/01/2016 255,147

Org Packaging Co Ltd - Morgan Stanley Participatory Note 10/04/2017 244,523

Hamon Asian Funds





Top 1% Purchases (continued) Cost US$

Beijing Enterprises Water Group Ltd 237,438

China Shenhua Energy Co Ltd ‘H’ 237,330

Chow Tai Fook Jewellery Group Ltd 235,715

Delta Electronics Inc 233,858

Hamon Asian Funds





Top 1% Sales Proceeds

US$ China CNR Corp Ltd ‘H’ 1,357,042

Ping An Insurance Group Co of China Ltd 'H' 1,215,841


China Avionics System - Credit Suisse AG Participatory Note 21/01/2020 746,548

GOME Electrical Appliances Holding Ltd 680,836

Baidu Inc - ADR 645,609

China Harmony New Energy Auto Holding Ltd 583,148

Huadian Fuxin Energy Corp Ltd 560,008

China Pacific Insurance Group Co Ltd ‘H’ 508,280

China Cinda Asset Management Co Ltd 'H' 473,748

Industrial & Commercial Bank of China Ltd ‘H’ 463,216

Qingdao Haier Co Ltd 'A' - CICC Financial Participatory Note 10/12/2017 463,205

China Medical System Holdings Ltd 442,431

China Water Affairs Group Ltd 441,815

China CYTS Tours Holding Co LTD 'A' - CICC Financial Trading Limited Participatory Note 10/12/2017 422,352

Kingenta Ecological Engineerin 'A' - CICC Financial Trading Limited Participatory Note 27/04/2018 421,614

China Overseas Land & Investment Ltd 402,697

China Pacific Insurance Group Co Ltd 'A' - Credit Suisse Participatory Note 24/10/2019 401,048

Tasly Pharmaceutical Group Co 'A'- CICC Financial Trading Limited Participatory Note 11/10/2017 396,435

China Shipping Development Co Ltd ‘H’ 394,961

CAR Inc 394,952

Sailun Jinyu Group Co Ltd - Morgan Stanley Participatory Note 20/04/2015 368,917

Inner Mongolia Jinyu Group Ltd 'A'- CICC Financial Trading Limited Participatory Note 10/12/2017 358,659

Chongqing Changan Automobile Co Ltd 'B' 352,886

China State Construction International Holdings Ltd 344,520

China Galaxy Securities Co Ltd ‘H’ 343,231

BBMG Corp 'H' 327,477

Kweichow Moutai Co Ltd - Credit Suisse Participatory Note 22/10/2019 323,754

Luye Pharma Group Ltd 314,825

Eclat Textile Co Ltd 309,976

Sihuan Pharmaceutical Holdings Group Ltd 297,893


China International Travel Service Corp Ltd - Credit Suisse AG Participatory Note 22/10/2019 296,289

Sinotrans Ltd ‘H’ 290,341

Hengan International Group Co Ltd 286,715

China Windpower Group Ltd 283,541

Perfect Shape PRC Holdings Ltd 277,358

China Life Insurance Co Ltd ‘H’ 270,313


Luk Fook Holdings International Ltd 266,814

China Cord Blood Corp 265,286

Shanghai Jahwa 'A' - Citigroup Global Participatory Note 15/01/2016 255,147

Hamon Asian Funds


STATEMENT OF FINANCIAL POSITION As at 31 December 2015

Hamon Asian Market

Leaders Fund Hamon Greater

China Fund

31 December 31 December 31 December 31 December

2015 2014 2015 2014

Note US$ US$ US$ US$

CURRENT ASSETS

Bank balances 6 149,839 135,973 251,529 26,394

Receivables from investments sold – 788,549 – 499,217

Amounts due from unitholders – 65,968 – –

Sundry receivables and prepayments 19,797 17,666 598 16,094

Financial assets at fair value through profit or loss 2, 13 21,253,736 27,844,342 11,528,111 13,587,857

TOTAL CURRENT ASSETS 21,423,372 28,852,498 11,780,238 14,129,562

CURRENT LIABILITIES

Bank overdraft 6 – (127,605) – (45,226) Amounts due to unitholders – – – (65,968)

Payable for investments purchased – (810,242) (113,039) (413,891) Sundry payables and accrued expenses 7 (149,899) (132,084) (127,008) (105,374)

CURRENT LIABILITIES EXCLUDING

NET ASSETS ATTRIBUTABLE TO

UNITHOLDERS (149,899) (1,069,931) (240,047) (630,459)

NET ASSETS ATTRIBUTABLE TO

UNITHOLDERS BASED ON NET ASSET VALUE 12 21,273,473 27,782,567 11,540,191 13,499,103

Units in issue - USD Class 826,058 1,041,081 807,469 943,557

Units in issue - Sterling Class 5,862 5,862 227,906 230,151

Units in issue - USD Institutional Class 80,070 42,390 149,795 149,795

Net Asset Value per unit based on

net assets - USD Class US$24.65 US$26.14 US$10.56 US$11.00


net assets - Sterling Class GBP12.99 GBP13.13 GBP4.50 GBP4.46


net assets - USD Institutional Class* US$9.95 US$10.47 US$9.95 US$10.19

*A new USD Institutional Share Class launched on 9 April 2014 for Hamon Asian Market Leaders Fund and on 15 April 2014 for Hamon Greater China Fund.

The notes on pages 21 to 36 form an integral part of these financial statements.

For and on behalf of the Board of Hamon Ireland Limited

14 April 2016

Hamon Asian Funds


STATEMENT OF OPERATIONS For the year ended 31 December 2015

Hamon Asian Market


China Fund

Year ended

31 December Year ended



31 December

2015 2014 2015 2014

Note US$ US$ US$ US$

INCOME Dividend Income 0 386,060 372,668 204,419 301,879

Deposit Interest 0 – 49 3 –

Net realised gains/(losses) on -financial assets at fair value through profit or loss 0 511,953 2,464,719 637,182 797,027

-foreign exchange 0 (75,798) (159,732) (4,919) (13,082)

Net change in unrealised losses on financial assets at fair value through profit or loss 0 (1,278,516) (1,669,544) (739,743) (2,982,353)

TOTAL INVESTMENT (EXPENSE)/INCOME (456,301) 1,008,160 96,942 (1,896,529)

EXPENSES

Management fees 3 (348,915) (451,957) (226,897) (353,213) Administration fees 3 (59,670) (59,999) (60,065) (59,999) Trustee fees 3 (23,867) (23,999) (23,867) (23,999) Sub-custodian fees 3 (59,477) (57,601) (61,409) (61,320) Audit fees 0 (24,215) (12,950) (11,032) (15,873) Transfer Agency fees 0 (36,006) 12,285 (11,935) (12,233) Legal fees 0 (27,596) (6,678) (18,415) (9,198) Publication fees 0 (21,410) (11,453) (19,889) (17,078) Other expenses 0 (79,239) (58,140) (52,394) (49,461)

TOTAL EXPENSES (680,395) (670,492) (485,903) (602,374)

Less: Finance Costs-Bank Interest (1,940) (6,657) (324) (213)

NET (LOSS)/GAIN FOR THE YEAR BEFORE TAX (1,138,636) 331,011 (389,285) (2,499,116)

Irrecoverable withholding tax (40,206) (32,125) (11,415) (16,396)

(DECREASE)/INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS (1,178,842) 298,886 (400,700) (2,515,512)

Gains and losses arose solely from continuing investment activities. The notes on pages 21 to 36 form an integral part of these financial statements. For and on behalf of the Board of Hamon Ireland Limited

14 April 2016

Hamon Asian Funds


STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING UNITS

For the year ended 31 December 2015

Hamon Asian Market


China Fund Year ended Year ended Year ended Year ended 31 December 31 December 31 December 31 December 2015 2014 2015 2014 US$ US$ US$ US$ Net assets at start of year 27,782,567 35,809,259 13,499,103 24,280,053

(Decrease)/Increase in Net Assets a result of operations (1,178,842) 298,886 (400,700) (2,515,512) Issue of units 495,428 1,365,817 397,002 2,556,162

Units redeemed (5,825,680) (9,691,395) (1,955,214) (10,821,600) NET ASSETS AT END OF YEAR 21,273,473 27,782,567 11,540,191 13,499,103

The notes on pages 21 to 36 form an integral part of these financial statements.

Hamon Asian Funds

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2015


1. Organisation

As at 31 December 2015, there are two Sub-Funds in existence, Hamon Asian Market Leaders Fund and Hamon Greater China Fund (the “Sub-Funds”) The Fund is a unit trust established in Ireland as an undertaking for collective investment in transferable securities and regulated pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015. The Fund is listed on the Irish Stock Exchange.

2. Significant Accounting Policies Accounting Convention and Basis of Accounting The Financial Statements for Hamon Asian Funds (the "Sub-Funds") have been prepared in accordance with Financial Reporting Standards 102 ("FRS 102"), the financial reporting standard applicable in the United Kingdom and Republic of Ireland for the first time, Irish Statute comprising the Unit Trust Act 1990 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended). Accounting standards generally accepted in Ireland used in preparing financial statements which present a true and fair view are those standards published by the Institute of Chartered Accountants in Ireland (the “Institute”) and issued by the Financial Reporting Council (“FRC”).

The Trust has availed of the exemption available to open ended investment funds that hold a substantial proportion of highly liquid and fair valued investments under Section 7 of FRS 102 and is not presenting cash flow statements.

The report has been prepared on a going concern basis for the Trust under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss. The report has been prepared in US Dollars for all Sub-Funds on the platform. The functional and presentation currency of the Trust is the US Dollar.

The format and certain wordings of the financial statements have been adapted from those contained in Irish statute so that, in the opinion of the Directors, they more appropriately reflect the nature of the Trust’s business as an investment fund.

Transition to FRS 102

In 2012, 2013 and 2014 the FRC revised FRSs in the United Kingdom and Republic of Ireland. The revisions fundamentally reformed financial reporting, replacing the existing standards with a number of new FRSs. The new standards applicable to the Trust are FRS 102: The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (“FRS 102”) and FRS 104: Interim Financial Reporting (“FRS 104”). FRS 102 and FRS 104 are effective for accounting periods beginning on or after 1 January 2015 with early adoption permitted.

On 1 January 2015, the Board of Directors of the Manager of the Trust resolved to adopt and prepare the audited annual financial statements in accordance with FRS 102.The date of transition to the new accounting framework was 1 January 2015 and accordingly the comparative amounts presented for the year ended 31 December 2015 are based on the Trust’s financial statements for that year after adjustment for the transition to FRS 102.

The transition to FRS 102 has not resulted in any change to the financial position, financial performance or profit and loss amounts of the Trust to that previously reported and presented in the last audited annual financial statements as at 31 December 2014. The measurement basis to determine the Trust’s financial position and performance in the current year is the same as that reported under the previous financial reporting framework at and for the year ended 31 December 2014. There is no difference in the profit or loss determined in accordance with the previous financial reporting framework to its profit or loss determined in accordance with FRS 102 for these audited annual financial statements at 31 December 2015. Under FRS 102, in accounting for its financial instruments a reporting entity is required to apply either (a) the full provisions of section 11 "Basic Financial Instruments" and section 12 "Other Financial Instruments" of FRS 102, (b) the recognition and measurement provisions International Accounting Standards (“IAS”) 39 “Financial Instruments: Recognition and Measurement” (“IAS 39”) and only the disclosure requirements of Sections 11 and 12 of FRS 102; or c) the recognition and measurement provisions of International Financial Reporting Standards (“IFRS”) 9 “Financial Instruments” (“IFRS 9”) and the disclosure requirements of Sections 11 and 12.

The Trust has elected to apply the recognition and measurement provisions of IAS 39 and the disclosure requirements of Sections 11 and 12.

The accounting policies applied in preparing these financial statements under FRS 102 are consistent with the accounting policies applied, except where noted, in preparing the prior year financial statements under the previous accounting framework.

Hamon Asian Funds

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2015 (continued)


2. Significant Accounting Policies (continued)

Transition to FRS 102 (continued)

The information required by FRS 102, to be included in a Statement of Total Recognised Gains and Losses and a Reconciliation of Movements in Shareholders’ Funds are, in the opinion of the Directors, contained in the Statement of Operations and the Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units on pages 19 to 20. In arriving at the results for the period, all amounts in the Statements of Operations on page 19 relate to continuing activities. In the opinion of the Directors, the financial statements give, in all other respects, the information required by the UCITS Regulations on Unit Trusts and Mutual Funds.

All gains or losses for the year are reflected in the Statements of Operations on page 19.

Financial assets and liabilities at fair value through profit or loss

The Sub-Funds have designated their investments into the financial assets and liabilities at fair value through profit or loss category and consequently they are measured at fair value with all changes recognised in the Statement of Operations.

Purchases and sales of investments are recognised on the trade date – the date on which the Sub-Funds commit to purchase or sell the asset. Investments are initially recognised at fair value and are derecognised when the rights to receive cash flows from the investments have expired or the Sub-Funds have transferred substantially all risks and rewards of ownership.

Gains and losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are included in the Statement of Operations in the period in which they arise.

Valuation of Investments

The fair value of investments traded in active markets, i.e. equities, is based on quoted market prices at the Statement of Financial Position date. The fair value of Warrants and Participatory notes is based on quoted market prices of the underlying security, converted into United States Dollar, at the Statement of Financial Position date.

Accounting for Investments

Investment transactions are accounted for on the trade date. Realised gains and losses on investment disposals are calculated using the average cost method.

Foreign Currencies

Items included in the financial statements are measured in US Dollars, being the main currency in which the Sub-Funds raise finance from its unitholders, (“the functional currency”). The Sub-Funds have also adopted the US Dollar as its presentation currency.

Transactions which occurred during the period were translated into the reporting currency at the rates prevailing on the transaction date.

Assets and liabilities denominated in foreign currencies are translated into the reporting currency at the rates prevailing at the year end date.

Gains and losses on foreign exchange transactions are recognised in the Statement of Operations.

Hamon Asian Funds



2. Significant Accounting Policies (continued)

Income

Dividends are credited to the Statement of Operations on the dates of which the relevant securities are listed as “ex-dividend”. Due to the nature of the Korean market, dividends on Korean securities are credited to the Statement of Operations on the date when the dividends are declared. Dividends are shown gross of irrecoverable withholding taxes where applicable.

Interest income is accounted for on an effective interest basis.

Critical Accounting Estimates and Judgement

The preparation of the Financial Statements in conformity with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Sub-Fund’s accounting policies. Actual results could differ from those estimates and those differences could be material. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates, if any, are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision, and future years if the revision affects both current and future years.

Bank Balances and Bank Overdraft

Bank Balances includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in liabilities in the Statement of Financial Position.

Amounts Due from/to Unitholders

Amounts due from/to unitholders represent payables for units purchased and receivables for units sold that have been contracted for but not yet delivered or settled as at year end.

Expenses

The Sub-Funds’ expenses are recognised on an accruals basis.

Withholding tax

The Sub-Funds currently incur withholding taxes imposed by certain countries on investment income. Such income is recorded gross of withholding taxes in the Statement of Operations. Withholding taxes are shown as a separate item in the Statement of Operations.

3. Fees and Expenses

Management Fees

The Manager shall be entitled to receive an annual management fee, in respect of the Hamon Asian Market Leaders Fund up to but not exceeding 1.5 per cent of its Net Asset Value for the USD Class and Sterling Class and an annual management fee up to but not exceeding 0.85 per cent of its net asset value for the USD Institutional Class.

The Manager shall be entitled to receive an annual management fee, in respect of the Hamon Greater China Fund up to but not exceeding 1.85 per cent of its net asset value for the USD Class and Sterling Class and an annual management fee up to but not exceeding 0.85 per cent of its net asset value for the USD Institutional Class.

The Investment Advisor fees will be disbursed by the Manager.

The Manager and the Investment Advisor are related parties of the Sub-Funds as defined by FRS 102.

The Distribution Agent may be entitled to receive a percentage of the management fee in relation to procuring subscribers for the Sub-Funds.

Hamon Asian Funds



3. Fees and Expenses (continued)

Trustee and Administration Fees

The administration fee will not exceed 0.10% per annum of the Net Asset Value of the Sub-Funds, where the average net asset value is less than US$100 million, 0.08% per annum of the Net Asset Value of the Sub-Funds between US$100 million and US$500 million and 0.06% per annum of the Net Asset Value of the Sub-Funds thereafter. The trustee fee will not exceed 0.015% per annum of the Net Asset Value of the Sub-Funds. The administration and trustee fee are subject to a combined annual minimum fee per sub-fund of US$84,000 or such other fee as may be agreed in writing between the parties.

Sub-Custodian Fees

The Sub-Custodian is BNY Mellon Singapore. The Sub-Custodian fee will not exceed 0.08% per annum of the Net Asset Value of the Sub-Funds which will be applied to each Sub-Fund based on their respective Net Asset Value subject to an annual minimum fee per Sub-Fund of US$57,600.

4. Distributions

At present, it is not proposed to declare any distributions and all income shall be accumulated and reinvested.

It is the Manager’s intention to manage the affairs of the sub-funds so that the USD Class Units, Sterling Class Units and USD Institutional Class Units will continue to qualify as “Reporting Funds” for UK tax purposes in respect of subsequent accounting periods.

5. Exchange Rates

The following exchange rates were used to translate the assets and liabilities into the reporting currency (US Dollar).

Currency 31 December 2015 31 December 2014 Chinese Yuan 6.49150 6.19998 Euro 0.91494 0.82273 Great British Pound 0.67422 0.64250 Hong Kong Dollar 7.75033 7.75555 India Rupee 66.20250 63.24502 Indonesian Rupiah 13787.50033 12,405.00064 Korean Won 1172.55002 1,099.15002 Malaysian Ringgit 4.29301 3.49649 Philippine Peso 47.05498 44.73249 Singapore Dollar 1.41194 1.32219 Swiss Franc 0.98898 0.98955 Taiwan Dollar 32.84698 31.60199 Thai Bhat 35.98499 32.89999

6. Bank Balances and Bank Overdraft

All account balances at 31 December 2015 and at 31 December 2014 were held with BNY Mellon Singapore, the Sub-Custodian.

Hamon Asian Funds



7. Sundry payables and accrued expenses

Hamon Asian Market Leaders Fund 31 December 2015 31 December 2014 Accrued Administration fee (19,090) (9,421)Accrued Trustee fee (7,977) (4,110)Accrued Sub - Custodian fee (31,063) (17,702)Accrued Management fee (26,192) (34,446)Accrued Audit Fees (22,401) (23,586)Accrued Transfer Agency Fees (2,643) (3,623)Accrued Legal Fees – (24,000)Accrued Publication fee (133) (300)Accrued Others Expense (40,400) (14,896)

(149,899) (132,084)

Hamon Greater China Fund 31 December 2015 31 December 2014 Accrued Administration fee (23,847) (8,782)Accrued Trustee fee (7,977) (4,110)Accrued Sub - Custodian fee (29,430) (35,773)Accrued Management fee (16,766) (21,920)Accrued Audit Fees (12,375) (11,557)Accrued Transfer Agency Fees (1,698) (1,031)Accrued Legal Fees (1,670) (12,000)Accrued Publication fee (3,841) (300)Accrued Others Expense (29,404) (9,901)

(127,008) (105,374)

8. Soft Commission Arrangements

All business with brokers is transacted on normal commercial terms. During the year, the Investment Advisor and its connected persons entered into soft commission arrangements with brokers in respect of which certain goods and services used to support investment decision making were received.

The Investment Advisor and its connected persons do not make direct payment for these services but transact business with the brokers on behalf of the Sub-Funds and commission is paid on these transactions.

The goods and services utilised for the Sub-Funds include research and advisory, computer services, hardware and software used for economic and political analysis, portfolio analysis including valuation and performance measurement, market analysis, data and quotation services, clearing and custodial services and investment related publications. The Investment Advisor considers these arrangements are to the benefit of the Sub-Funds and has satisfied itself that it obtains best execution on behalf of the Sub-Funds and the brokerage rates are not in excess of customary institutional full service brokerage rate.

9. Taxation

Under current law and practice, the Sub-Funds qualify as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not chargeable to Irish tax on its income or gains. However, Irish tax may arise on the happening of a “chargeable event”. A chargeable event includes any distribution payments to unitholders or any encashment, redemption, cancellation or transfer of shares, and the holding of shares at the end of each eight year period beginning with the acquisition of such shares.

No Irish tax will arise on the Sub-Funds in respect of chargeable events in respect of:

(a) A unitholder who is neither an Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Sub-Funds; and

(b) Certain exempted Irish tax resident unitholders who have provided the Sub-Funds with the necessary signed statutory declarations.

The Finance Act 2010 provides that the Revenue Commissioners may grant approval for investment funds marketed outside of Ireland to make payments to non-resident investors without deduction of Irish tax where no relevant declaration is in place, subject to meeting the “equivalent measures”. A Sub-Fund wishing to receive approval must apply in writing to the Revenue Commissioners, confirming compliance with the relevant conditions.

Hamon Asian Funds



9. Taxation (continued)

Dividends, interest and capital gains (if any) received on investments made by the Sub-Funds may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Sub-Funds or its unitholders.

10. Financial Instruments

The main risks arising from the Sub-Funds’ financial instruments are as follows:

Market Price Risk

The Sub-Funds are exposed to Market Price Risk to the extent that increases or decreases in the prices of equity investments held by the Sub-Funds will cause an increase or decrease in their Net Asset Value.

The investments of the Sub-Funds are subject to normal market fluctuations and the risks inherent in investment in international securities markets and there can be no assurances that appreciation will occur. It is the policy of the Manager to maintain a diversified portfolio of investments for the Sub-Funds so as to minimise risk but the Net Asset Value per unit can go down as well as up and investors may not realise their initial investment. The Investment Advisor does not use derivatives to hedge the portfolio against market price risk.

Market price risk sensitivity

100% of the Hamon Asian Market Leaders Fund equity investments are listed on a regulated stock exchange. A 10% increase in benchmark index of MSCI TR AC FE Free ex-Japan at 31 December 2015 would have increased the net assets attributable to holders of redeemable participating units and the changes in net assets attributable to holders of redeemable participating units by US$2,576,218 (31 December 2014: US$2,644,900). An equal change in the opposite direction would have decreased the net assets attributable to holders of redeemable participating units by an equal but opposite amount.

100% of the Hamon Greater China Fund equity investments are listed on a regulated stock exchange. A 10% increase in benchmark index of MSCI AC Golden Dragon Net USD Index at 31 December 2015 would have increased the net assets attributable to holders of redeemable participating and the changes in net assets attributable to holders of redeemable participating units by US$1,437,908 (31 December 2014: US$1,297,264). An equal change in the opposite direction would have decreased the net assets attributable to holders of redeemable participating units by an equal but opposite amount.

The 10% movement was based on reasonable estimate of the Investment Advisor.

The limitation of sensitivity analysis is that it is a statistical measure and does not guarantee a perfect match and result. The sensitivity analysis may not necessarily indicate the total effect on the Sub-Funds’ net assets attributable to holders of redeemable participating units.

Fair Value of Investments

The FRC have issued amendments to FRS 102 fair value hierarchy disclosures. These amendments are effective for accounting periods beginning on or after 1 January 2017 with early adoption permitted. The Fund has availed of early adoption and the financial statements have been prepared in accordance with these amendments and fair value measurement is categorised based on Level 1, 2 and 3 classification. Under FRS 102, the Fund is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities;

Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices);

Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety shall be determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measure is

Hamon Asian Funds



10. Financial Instruments (continued)

Fair Value of Investments (continued)

a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. Please refer to note 1, Valuation of Investments.

The output of a model is always an estimate or approximation of a value that can be determined with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions the Funds hold. Valuations are therefore adjusted, where appropriate, to allow factors including model risk, liquidity risk and counterparty risk.

The Fund considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following table shows the fair value hierarchy of the Sub-Funds’ financial instruments as at 31 December 2015 and 31 December 2014.

Hamon Asian Market Leaders Fund Financial Assets at Fair Value through Profit or Loss

31 December 2015 Level 1 Level 2 Level 3 Total

US$ US$ US$ US$

Designated as at Fair Value through Profit or Loss

Listed Equities 19,957,992 – 233,474* 20,191,466

Participatory notes – 1,062,270 – 1,062,270

Total Financial Assets at fair value through profit or loss 19,957,992 1,062,270 233,474 21,253,736

*Please refer to Note 19 for details.

Hamon Greater China Fund Financial Assets at Fair Value through Profit or Loss


US$ US$ US$ US$


Listed Equities 9,480,847 – – 9,480,847

Participatory notes – 2,041,459 5,805 2,047,264

Total Financial Assets at fair value through profit or loss 9,480,847 2,041,459 5,805 11,528,111

Hamon Asian Market Leaders Fund Financial Assets at Fair Value through Profit or Loss


US$ US$ US$ US$


Listed Equities 24,987,189 – – 24,987,189


Total Financial Assets at fair value through profit or loss 24,987,189 2,857,153 – 27,844,342

Hamon Greater China Fund Financial Assets at Fair Value through Profit or Loss


US$ US$ US$ US$


Listed Equities 11,455,876 – – 11,455,876


Total Financial Assets at fair value through profit or loss 11,455,876 2,131,981 – 13,587,857

There was no transfer between levels for the year ended 31 December 2015 or 31 December 2014.

Hamon Asian Funds




Fair Value of Investments (continued)

Credit Risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The majority of the Sub-Funds’ financial assets are equities and equity related securities. As a result, they are not subject to credit risk.

The Sub-Funds have appointed BNY Mellon Trust Company (Ireland) Limited to act as Trustee of the Sub-Funds assets. BNY Mellon Trust Company (Ireland) Limited has in turn appointed Bank of New York Mellon Singapore (the “Sub-Custodian”) as sub-custodian.

The Sub-Funds are exposed to credit risk through the use of BNY Mellon Trust Company (Ireland) Limited as Trustee. Bankruptcy or insolvency of the banks may cause the Sub-Funds’ rights with respect to its cash and investments held by the bank to be delayed or limited.

Transactions in securities are generally settled or paid for on delivery, or cleared through the appropriate clearing system for the market on which the securities are traded. The risk of default is not considered to be material, as delivery of securities sold is only made once the Sub-Custodian has received confirmation of payment.

Payment is also only made on a purchase once confirmation of delivery of the securities has been received by the Sub-Custodian. The trade will fail if either party fails to deliver the required confirmations.

Hamon Asian Market Leaders Fund has cash holdings as at 31 December 2015 of US$149,839 (31 December 2014: US$135,973) with the Sub-Custodian.

Hamon Greater China Fund has cash holdings as at 31 December 2015 of US$251,529 (31 December 2014: US$26,394) with the Sub-Custodian.

With the exception of the Sub-Custodian, the Sub-Funds limit issuer concentration to a single issuer and its OTC counterparty exposure to 10% and 5% of Net Asset Value respectively. The majority of trades are executed through recognised stock exchanges. As at 31 December 2015 there were no derivatives held by the Sub-Funds (31 December 2014: Nil). At 31 December 2015, the Sub-Custodian holds all investments of the Sub-Fund with fair value of $21,253,736 (31 December 2014: US$27,844,342) for Hamon Asian Market Leaders Fund, and US$11,528,111 (31 December 2014: US$13,587,857), for Hamon Greater China Fund.

Cash held with the Sub-Custodian may be pooled with the Sub-Custodian’s cash and in respect of that cash the Sub-Funds may rank as a general creditor of the Sub-Custodian in the event of the Sub-Custodian’s insolvency. Non cash assets, other than derivatives, held with the Sub-Custodian are held in segregated accounts and are not expected to be pooled and therefore should not be available to other creditors of the Sub-Custodian in the event of insolvency. As at 31 December 2015 the Sub-Custodian, Bank of New York Mellon, has a credit rating of AA- with Standard & Poor’s, Aa1 with Moody’s and AA- with Fitch (31 December 2014: AA- with Standard & Poor’s, Aa2 with Moody’s and AA with Fitch).

Liquidity Risk

The Sub-Funds are exposed to liquidity risk to the extent that it may not hold sufficient liquid assets to meet its liabilities.

The Sub-Funds’ assets mainly comprise readily realisable securities, which can be readily sold. The main liability of the Sub-Funds is the redemption of units that investors wish to sell.

The Sub-Funds use matching techniques daily to monitor the liquidity taking into account subscription and redemption needs.

At 31 December 2015 and 31 December 2014 substantially all of the Sub-Funds’ liabilities, including net assets attributable to unitholders, are payable within one month.

Interest Rate Risk

The majority of the Sub-Funds’ assets are equity shares which neither pay interest nor have a maturity date. As a result, interest rate risk is considered insignificant.

Hamon Asian Funds




Foreign Currency Risk

The Net Asset Value per unit is computed in US Dollars. The Sub-Funds’ investments may, however, be acquired in other currencies. The value of the investments of the Sub-Funds, which may be designated in any currency, may rise and fall in terms of the currency of the account of the relevant Sub-Funds due to exchange rate fluctuations of individual currencies. Adverse movements in currency exchange rates can result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the consequent currency risk exposure in all circumstances.

Significant exposure (deemed greater than 5% of the Net Asset Value) to foreign currency risk and non US Dollar denominated monetary and non-monetary assets and liabilities is as follows:

31 December 2015

Hamon Asian Market Leaders Fund Hong Kong

Dollar US$

Indian

Rupee

US$

Korean

Won

US$

Taiwan

Dollar US$

Bank balances* (911) – – –

Sundry receivables and prepayments/payables and accrued expenses – – 17,404 –

Financial assets/liabilities at fair value through profit or loss 9,835,106 3,411,976 2,694,128 2,681,092

Total currency exposure on assets/liabilities 9,834,195 3,411,976 2,711,532 2,681,092

* Bank balance of (911) relates to a cash equivalent.

Hamon Greater China Fund Hong Kong

Dollar US$

Taiwan

Dollar US$

Bank balances 2,840 835

Sundry receivables and prepayments/payables and accrued expenses – –

Financial assets/liabilities at fair value through profit or loss 8,270,114 671,203

Total currency exposure on assets/liabilities 8,272,954 672,038

Hamon Asian Funds




Foreign Currency Risk (continued)

31 December 2014

Hamon Asian Market Leaders Fund Hong Kong

Dollar US$

Indian

Rupee

US$

Korean

Won

US$

Philippian

Peso

US$

Bank balances 125,765 – 72,335 –

Sundry receivables and prepayments/payables and accrued expenses (118,417) – 5,730 108,660

Financial assets/liabilities at fair value through profit or loss 11,662,426 6,273,520 1,322,795 1,287,283

Total currency exposure on assets/liabilities 11,669,774 6,273,520 1,400,860 1,395,943

Hamon Greater China Fund Hong Kong

Dollar US$

Bank balances (12,026)

Sundry receivables and prepayments/payables and accrued expenses 30,957

Financial assets/liabilities at fair value through profit or loss 10,294,004

Total currency exposure on assets/liabilities 10,312,935

Apart from these the Sub-Funds did not have significant foreign currency risk.

The effect on the net asset value if the exchange rate of currencies went up or down by 5% is shown in the following table. A 5% increase in exchange rates will cause Net Assets to increase. Similarly a 5% decrease in exchange rates will cause Net Assets to decrease:

31 December 2015


Currency Net Assets/Liabilities

US$

Change in Rate

%

Effect on Net Assets

US$

% Change in Net Assets

% Hong Kong Dollar 9,834,195 5% 491,710 2.31 Indian Rupee 3,411,976 5% 170,599 0.80 Korean Won 2,711,532 5% 135,577 0.64 Taiwan Dollar 2,681,092 5% 134,055 0.63 Hamon Greater China Fund


US$

Change in Rate

%


US$


% Hong Kong Dollar 8,272,954 5% 413,648 3.58 Taiwan Dollar 672,038 5% 33,602 0.29

Hamon Asian Funds




Foreign Currency Risk (continued)

31 December 2014



US$

Change in Rate

%


US$


% Hong Kong Dollar 11,669,774 5% 583,489 2.10 Indian Rupee 6,273,520 5% 313,676 1.13 Korean Won 1,400,860 5% 70,043 0.25 Philippian Peso 1,395,943 5% 69,797 0.25



US$

Change in Rate

%


US$


% Hong Kong Dollar 10,312,935 5% 515,647 3.82

5% is deemed an appropriate sensitivity for movement in foreign exchange in a year as currencies will have different correlations and generally will not all move in the same direction by the same amount but 5% is deemed a significant movement. Movements above 5% are deemed to be longer term and less likely to reverse in the shorter term.

Taxation Risk

The Sub-Funds are exposed to taxation risk arising from the trading of China A Shares via participation notes issued by brokers.

The State Administration of Taxation of China ("SAT") issued the Circular [2014] No. 79 to address the withholding income tax position for Qualified Foreign Institutional Investors ("QFII") with respect to capital gains derived from the trading of China A-shares. According to the Circular [2014] No.79, the withholding income tax on capital gains arising from realised gains from transaction in China A-shares are temporarily exempted effective from 17 November 2014.

It has been confirmed that capital gains tax on China A-shares will be levied over a 5-year "look back" period (starting from 17 November 2009 and ending on 16 November 2014) and any gains prior to 17 November 2009 will not be subject to capital gains tax. The tax rate applicable to capital gains will be 10%.

The Sub-Funds are exposed to taxation risk arising from the trading of China A-shares via participation notes issued by brokers. Where such withholding income tax on capital gains is imposed, it may be incorporated into the price of the participation note or the Sub-Funds may indemnify the brokers for such tax arising from the participation notes traded with them, resulting in a reduction in the Net Asset Value of the Sub-Funds.

Investors should note that the Manager currently does not intend to make provisions for any China taxes payable by a Sub-Fund on the gross realised capital gains derived from the disposal of China A Shares. Accordingly, in the event that the rules in the China change and that provisions are required to be made (whether retrospectively or not) the provisions and actual tax liabilities may be debited from the Sub-Fund’s assets and the Sub-Fund’s asset value will be adversely affected.

Financial Derivative Instruments

The Investment Advisor applies the commitment approach to measure the global exposure of all financial derivative instrument positions of the Sub-Funds. The Sub-Funds did not hold any derivatives as at 31 December 2015 or 31 December 2014.

Hamon Asian Funds



11. Related Parties

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.

At 31 December 2015 and 31 December 2014 the related parties were as follows:

Trust Unitholder

Number of Units held at 31 December

2015

Number of Units held at 31 December

2014 Hamon Asian Market Leaders Fund USD Class Mr. Hugh Simon 3,651 899 Hamon Greater China Fund USD Class Mr. Hugh Simon 251,518 - Hamon Asian Market Leaders Fund Sterling Class

Hamon Portfolio Holdings Limited 557 557

Hamon Asian Market Leaders Fund USD Institutional Class

Hamon Portfolio Holdings Limited 10,000 10,000

Hamon Asian Market Leaders Fund USD Class Hamon Portfolio Holdings Limited 6,551 6,551

Hamon Greater China Fund Sterling Class Hamon Portfolio Holdings Limited 20,202 20,202

Hamon Greater China Fund USD Institutional Class

Hamon Portfolio Holdings Limited 149,795 149,795

Hamon Greater China Fund USD Class Hamon Portfolio Holdings Limited 90,732 90,732

Hamon Asian Market Leaders Fund USD Class Swanson Holdings Limited - 2,752 Hamon Greater China Fund USD Class Swanson Holdings Limited - 251,518 Hamon Asian Market Leaders Fund Sterling Class

Bluepond Asia Fund 5,305 5,305

Hamon Asian Market Leaders Fund USD Class Bluepond Asia Fund - 2,555 Hamon Greater China Fund Sterling Class Bluepond Asia Fund 199,803 199,803 Hamon Greater China Fund USD Class Bluepond Asia Fund - 5,058

Mr. Hugh Simon is a director of the Manager and Investment Advisor of the Sub-Funds. Mr. Hugh Simon and Mr. Cormac Byrne are directors of Hamon Portfolio Holdings Limited and are also directors of Hamon Ireland Limited. Mr. Hugh Simon is the beneficial owner of Swanson Holdings Limited. Bluepond Asia Fund is a related party as its Manager has common directors with Hamon Ireland Limited. The Manager and Investment Advisor and their related companies are deemed to be related to the Sub-Funds. There were no transactions with connected parties other than those in the normal course of business which were disclosed in the Statement of Operations.

Mr. Michael Kirby and Mr. Cormac Byrne (who are directors of Hamon Ireland Limited) are directors of KB Associates. KB Associates provided consultancy services to the Hamon Asian Funds during the year ended 31 December 2015. Fees earned by KB Associates are paid by the Manager. The fees of the Board of Directors of the Manager are paid by the Manager.

Hamon Asian Funds



12. Net Asset Value per Unit

In accordance with the Sub-Funds’ Prospectus, the value of investments listed, usually dealt in or traded on a recognised market are valued by reference to the last traded price, or if no such price is available, at their middle market price for the purposes of determining the net asset value per unit for subscriptions and redemptions. If market prices are unavailable or do not, in the opinion of the Trustee, represent probable realisation value, or if the securities are not listed, the value of the relevant securities are determined by a stockbroker or other professional person approved for the purpose by the Trustee, or are valued at such value as the Administrator may consider in the circumstances to be fair and which is approved by the Trustee.

The Sub-Funds have elected to apply the recognition and measurement provisions of IAS 39 and the disclosure requirements of Sections 11 and 12.

Units have been admitted to listing on the Irish Stock Exchange and are issued and redeemed at the holders’ option at prices based on the value of the Sub-Funds’ net assets at the time of issue/redemption. Therefore, the net asset value attributable to holders of redeemable participating units is treated as a liability for financial statements purposes and has been fair valued in the Statement of Financial Position.

Hamon Asian Market Leaders Fund 31 December 2015 31 December 2014 31 December 2013

US$ US$ US$

Net Asset Value – USD Class 20,363,618 27,218,810 34,081,306

Net Asset Value – Sterling Class 112,917 119,752 1,727,953

Net Asset Value – USD Institutional Class* 796,938 444,005 –

21,273,473 27,782,567 35,809,259

Net Asset Value Per Unit – USD Class US$24.65 US$26.14 US$25.99

Net Asset Value Per Unit – Sterling Class GBP12.99 GBP13.13 GBP12.28

Net Asset Value Per Unit – USD Institutional Class* US$9.95 US$10.47 –

Hamon Greater China Fund 31 December 2015 31 December 2014 31 December 2013

US$ US$ US$

Net Asset Value – USD Class 8,529,857 10,374,461 22,477,254

Net Asset Value – Sterling Class 1,520,059 1,597,553 1,802,799

Net Asset Value – USD Institutional Class* 1,490,275 1,527,089 –

11,540,191 13,499,103 24,280,053

Net Asset Value Per Unit – USD Class US$10.56 US$11.00 US$12.41

Net Asset Value Per Unit – Sterling Class GBP4.50 GBP4.46 GBP4.74

Net Asset Value Per Unit – USD Institutional Class* US$9.95 US$10.19 –

*A new USD Institutional Share Class launched on 9 April 2014 for Hamon Asian Market Leaders Fund and on 15 April 2014 for Hamon Greater China Fund.

Hamon Asian Funds



13. Financial Assets at Fair Value through Profit or Loss


Fair Value

31 December 2015

*Realised and

unrealised

gains/(losses) charged to profit

and loss

31 December 2015

Fair Value

31 December 2014

*Realised and

unrealised


and loss

31 December 2014

Designated at fair value US$ US$ US$ US$

through profit or loss

-Equities 20,191,466 (1,557,503) 24,987,189 669,080

-Participatory notes 1,062,270 790,940 2,857,153 126,095

21,253,736 (766,563) 27,844,342 795,175

*These amounts do not include gains/(losses) on foreign exchange.


Fair Value

31 December 2015

*Realised and

unrealised


and loss

31 December 2015

Fair Value

31 December 2014

*Realised and

unrealised


and loss

31 December 2014

Designated at fair value US$ US$ US$ US$

through profit or loss

-Equities 9,480,847 (310,307) 11,455,876 (2,161,954) -Participatory notes 2,047,264 207,746 2,131,981 (23,372)

11,528,111 (102,561) 13,587,857 (2,185,326)

*These amounts do not include gains/(losses) on foreign exchange.

14. Accounting Period and Comparative Figures

These Financial Statements relate to the year ended 31 December 2015 and 31 December 2014 for the Hamon Asian Market Leaders Fund and for the Hamon Greater China Fund.

Hamon Asian Funds



15. Units in issue

Year ended Year ended 31 December 31 December Hamon Asian Market Leaders Fund 2015 2014 USD Class Units in issue at the start of the year/period 1,041,081 1,311,518

USD Class Units issued 3,040 34,430

USD Class Units redeemed (218,063) (304,867)

USD Class Units in issue at the end of the year/period 826,058 1,041,081

Year ended Year ended 31 December 31 December Hamon Asian Market Leaders Fund 2015 2014 Sterling Class Units in issue at the start of the year/period 5,862 85,118

Sterling Class Units issued – –

Sterling Class Units redeemed – (79,256)

Sterling Class Units in issue at the end of the year/period 5,862 5,862

Year ended Year ended 31 December 31 December Hamon Asian Market Leaders Fund 2015 2014 USD Institutional Class Units in issue at the start of the year/period 42,390 –

USD Institutional Class Units issued 37,680 42,390

USD Institutional Class Units redeemed – –

USD Institutional Class Units in issue at the end of the year/period 80,070 42,390

Year ended Year ended

31 December 31 December Hamon Greater China Fund 2015 2014 USD Class Units in issue at the start of the year/period 943,557 1,811,621

USD Class Units issued 23,500 79,222

USD Class Units redeemed (159,588) (947,286)

USD Class Units in issue at the end of the year/period 807,469 943,557

Year ended Year ended 31 December 31 December Hamon Greater China Fund 2015 2014 Sterling Class Units in issue at the start of the year/period 230,151 230,151

Sterling Class Units issued 7,901 –

Sterling Class Units redeemed (10,146) –

Sterling Class Units in issue at the end of the year/period 227,906 230,151

Year ended Year ended 31 December 31 December Hamon Greater China Fund 2015 2014 USD Institutional Class Units in issue at the start of the year/period 149,795 –

USD Institutional Class Units issued – 149,795

USD Institutional Class Units redeemed – –

USD Institutional Class Units in issue at the end of the year/period 149,795 149,795

Hamon Asian Funds



16. Transaction Costs

Transaction fees incurred by the Sub-Funds relate to purchase or sale of transferable securities, derivatives or other eligible assets and are recorded in the Statement of Operations. Sub-Custody transaction costs are as follows:

Funds

Sub-Custody Transaction Costs

Year ended 31 December 2015

US$

Sub-Custody Transaction Costs


US$ Hamon Asian Market Leaders Fund 22,330 24,792 Hamon Greater China Fund 9,005 12,806

17. Net Assets Attributable to holders of redeemable participating units

Units have been admitted to listing on the Irish Stock Exchange and are issued and redeemed at the holders’ option at prices based on the value of the Sub-Funds’ net assets at the time of issue/redemption.

18. Significant events during the year

The Sub-Funds adopted FRS 102 effective 1 January 2015.

19. Subsequent Events

On 28 January 2016, the Administrator, BNY Mellon Fund Services (Ireland) Limited converted to a designated activity company under the Companies Act 2014 and changed its name to BNY Mellon Fund Services (Ireland) Designated Activity Company. On 29 February 2016, with effect from 9.00 a.m. the Sihuan Pharmaceutical Holdings Group Limited security resumed trading, having had its trading status suspended as at 31 December 2015 and consequently reflected as a Level 3 holding within Hamon Asian Market Leaders Fund as at the year end date. There have been no other significant events affecting the Sub-Funds since the year end 31 December 2015.

20. Contingent Liabilities

The Fund has segregated liability between its Sub-Funds and accordingly any liability incurred on behalf of or attributable to any sub-fund shall be discharged solely out of the assets of that sub-fund. As of the date of the Balance Sheet the Directors are not aware of any existing or contingent liability of any sub-fund of the Fund.

21. Approval of Financial Statements

The Financial Statements were approved by the Board of Hamon Ireland Limited on 14 April 2016.

Independent auditors' report to the unitholders of the sub-funds of Hamon Asian Funds Report on the financial statements

In our opinion, Hamon Asian Funds' financial statements (the "financial statements"):

give a true and fair view of the sub-funds' assets, liabilities and financial position as at 31 December 2015 and of their results for the year then ended;

• have been properly prepared in accordance with Generally Accepted Accounting Practice in Ireland; and

• have been properly prepared in accordance with the requirements of the Unit Trusts Act 1990.

The financial statements comprise:

• the statement of financial position as at 31 December 2015;

• the statement of operations for the year then ended;

• the statement of changes in net assets attributable to holders of redeemable participating units the year then ended;

• the investment portfolios for each of the sub-funds as at 31 December 2015; and

• the notes to the financial statements for each of its which include a summary of significant accounting policies and other explanatory information.

The financial reporting framework that has been applied in the preparation of the financial statements is Irish law and accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland), including FRS 102 "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland".

In applying the financial reporting framework, the manager has made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, the manager has made assumptions and considered future events.

Responsibilities for the financial statements and the audit

As explained more fully in the Statement of Manager's Responsibilities set out on page X, the manager is responsible for the preparation of the financial statements giving a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

This report, including the opinion, has been prepared for and only for the unitholders of each of the sub-funds as a body and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Hamon Asian Funds

OTHER INFORMATION


Manager

Hamon Ireland Limited 25/28 North Wall Quay International Financial Services Centre Dublin 1 Ireland

Investment Advisor and Promoter Hamon Asset Management Limited 3510 - 3515 Jardine House 1 Connaught Place Central Hong Kong

Board of Directors of the Manager Mr Jim Cleary * Mr Michael Kirby Mr Hugh A. Simon Mr Cormac Byrne Mr Yiu Kwong “Edmond” Wong * Independent Director

Trustee BNY Mellon Trust Company (Ireland) Limited Guild House Guild Street International Financial Services Centre Dublin 1 Ireland

Administrator** BNY Mellon Fund Services (Ireland) Designated Activity Company Guild House Guild Street International Financial Services Centre Dublin 1 Ireland

Hong Kong Representative The Bank of East Asia Limited 32

nd Floor, BEA Tower, Millennium City 5

418 Kwun Tong Road, Kwun Tong Kowloon Hong Kong

Legal Advisors in Ireland A&L Goodbody Solicitors 25-28 North Wall Quay International Financial Services Centre Dublin 1 Ireland

Legal Advisors in Hong Kong Deacons 5th Floor, Alexandra House 18 Chater Road, Central Hong Kong

Legal Advisors in Switzerland Naegeli & Partners, Attorneys at law Klausstrasse 33 CH-8008 Zurich Switzerland

Legal Advisors in Austria Freshfields Bruckhaus Deringer Seilergasse 16 A-1010 Vienna Austria

Sponsoring Broker A&L Listing 25-28 North Wall Quay International Financial Services Centre Dublin 1 Ireland

Sub-Custodian Bank of New York Mellon Singapore Branch One Temasek Avenue #03-01 Millenia Tower Singapore 039192

** See Page 36

Hamon Asian Funds

OTHER INFORMATION (continued)


Independent Auditors PricewaterhouseCoopers Chartered Accountants & Registered Auditors One Spencer Dock North Wall Quay Dublin 1 Ireland

Formal Paying and Information Agent in Austria Raiffeisen Bank International AG Am Stadtpark 9 A-1030 Vienna Austria

Tax Representative in Austria PricewaterhouseCoopers Erdbergstrasse 200 1030 Vienna Austria

Distribution Agent Mellon Global Investments Limited 160 Queen Victoria Street London EC4V 4LA United Kingdom

Swiss Representative First Independent Fund Services Limited Klausstrasse 33 CH-8008 Zurich Switzerland

Swiss Paying Agent NPB New Private Bank Limited Limmatquai 1, P.O. Box CH-8022 Zurich Switzerland

Paying and Information Agent in Germany Macard, Stein & Co AG Ballindamm 36 20095 Hamburg Germany

Hamon Asian Funds

Unaudited Appendix of Information


Subscription and Redemption Prices Hamon Asian Market Leaders Fund




USD Class US$ US$ US$ Highest subscription price 31.09 27.65 28.15 Lowest redemption price 22.18 24.14 22.03

Sterling Class GBP GBP GBP Highest subscription price 16.51 13.37 14.40 Lowest redemption price 11.09 11.12 11.09

USD Institutional Class* US$ US$ US$ Highest subscription price 12.50 11.08 - Lowest redemption price 8.94 9.67 -





USD Class US$ US$ US$ Highest subscription price 26.72 33.85 35.37 Lowest redemption price 21.44 20.95 24.39 Sterling Class GBP GBP GBP Highest subscription price - 15.45 16.92 Lowest redemption price 11.29 12.33 13.89


Period ended 31 December 2009

Period ended 31 December

2008** Period ended

15 January 2008*** USD Class US$ US$ US$ Highest subscription price 31.77 38.92 42.71 Lowest redemption price 13.73 12.17 22.67

Sterling Class GBP GBP GBP Highest subscription price 15.21 17.41 21.21 Lowest redemption price 7.19 7.74 17.96 Hamon Asian Market Leaders Fund



USD Class US$ US$ Highest subscription price 24.35 18.15 Lowest redemption price 17.92 14.66 Sterling Class GBP GBP Highest subscription price - - Lowest redemption price - -

* A new USD Institutional Share Class was launched on 9 April 2014.

** The financial statements were prepared for the period from 16 January 2008 to 31 December 2008 to coincide with a change in the Administrator of the Fund.

*** The financial statements were prepared for the period 1 January 2007 to 15 January 2008 to coincide with a change in the Administrator of the Fund.

Hamon Asian Funds

Unaudited Appendix of Information


Subscription and Redemption Prices (continued)

Hamon Greater China Fund Year ended

31 December 2015 Year ended


31 December 2013 USD Class US$ US$ US$ Highest subscription price 14.93 12.54 12.41 Lowest redemption price 9.67 10.30 9.47 Sterling Class GBP GBP GBP Highest subscription price 6.13 4.85 4.77 Lowest redemption price 3.88 3.84 3.90

USD Institutional Class* US$ US$ US$ Highest subscription price 13.97 11.12 - Lowest redemption price 9.08 9.54 -




31 December 2010 USD Class US$ US$ US$ Highest subscription price 9.29 12.74 13.41 Lowest redemption price 8.03 7.85 9.33

Sterling Class GBP GBP GBP Highest subscription price 3.68 - 4.78 Lowest redemption price - - -



31 December 2008 USD Class US$ US$ Highest subscription price 11.58 10.00** Lowest redemption price 4.90 -

Sterling Class GBP GBP Highest subscription price - 4.96*** Lowest redemption price - -

* A new USD Institutional Share Class was launched on 15 April 2014. ** The USD class was launched on 10 March 2008. *** The Sterling class was launched on 11 March 2008.

Documents

(An Umbrella fund under the laws of Ireland) · Hamon Asian Funds HAMON INVESTMENT GROUP 3 INVESTMENT MANAGER’S REPORT HAMON ASIAN MARKET LEADERS FUND PERFORMANCE OVERVIEW 2015