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Quarterly Investment Report
June 2015
Magna New Frontiers Fund
Magna New Frontiers Fund Quarterly Investment Report
Performance 3Commentary 4Portfolio Characteristics 8Stock Exposure 9Asset Exposure 10Exposure Changes 12Portfolio Movements 13Risk 14Performance Attribution 15GIPS Presentation 17Disclaimer 18
June 2015
CONTENTS
2
Magna New Frontiers Fund Quarterly Investment Report
Net Assets
Strategy USD 16.6m
Period Performance
Inception 3 Years 1 Year 3 Months YTDFrom: 30 Jun 2010 30 Jun 2012 30 Jun 2014 31 Mar 2015 31 Dec 2014To: 30 Jun 2015 30 Jun 2015 30 Jun 2015 30 Jun 2015 30 Jun 2015
Frontier Markets Composite 9.8% 15.1% ‐8.9% 5.5% 1.4%MSCI Frontier Markets Index 7.3% 13.0% ‐13.9% 0.0% ‐3.2%Outperformance 2.6% 2.1% 5.1% 5.6% 4.5%
Calendar Year
2010 2011 2012 2013 2014From: 30 Jun 2010 31 Dec 2010 30 Dec 2011 31 Dec 2012 31 Dec 2013To: 31 Dec 2010 30 Dec 2011 31 Dec 2012 31 Dec 2013 31 Dec 2014
Frontier Markets Composite 32.9% ‐22.3% 12.6% 35.8% ‐0.1%MSCI Frontier Markets Index 23.4% ‐18.7% 8.9% 25.9% 6.8%Outperformance 9.5% ‐3.6% 3.8% 9.9% ‐6.9%
Performance is given in USD, gross of fees, and is annualized for periods in excess of 12 months
June 2015
STRATEGY PERFORMANCE
The Frontier Markets Composite consists of fee‐paying discretionary portfolios with a remit to invest principally in frontier markets.For comparison purposes, the composite is measured against the MSCI Frontier Markets Index, a free float‐adjusted marketcapitalization index that is designed to measure equity market performance in global frontier markets. Charlemagne Capital claimscompliance with the Global Investment Performance Standards (GIPS®), as verified for the period 1 Jun 2000 through 30 Jun 2014 byAshland Partners. A copy of the verification report and a presentation that adheres to GIPS standards are available upon request tothe Marketing Department. X
80
100
120
140
160
180
200
Jun2010
Sep2010
Dec2010
Mar2011
Jun2011
Sep2011
Dec2011
Mar2012
Jun2012
Sep2012
Dec2012
Mar2013
Jun2013
Sep2013
Dec2013
Mar2014
Jun2014
Sep2014
Dec2014
Mar2015
Jun2015
Rebased to 30 Jun 2010 = 100
Frontier Markets Composite MSCI Frontier Markets Index
3
A
Magna New
COMMENT
The Fund has
the 3.2% fall
0.1% in the in
The biggest s
even betwee
producer, Ed
started, takin
teams in our
consumers in
year over the
cash flows, a
price/earning
taken into ac
backdrop for
Conversely, G
as the shares
was a purely
drivers of the
The Saudi ma
on 15th Jun
themselves. I
in only one fo
reform and g
to take advan
stockmarket
fundamental
exposure to
companies.
NMC Healthc
positive catal
in the healthc
in both Qatar
end of the d
should see a
earnings with
All performance
w Frontiers F
TARY
s performed v
recorded by
ndex.
stock movers
n stocks in th
ita. We bough
g the position
r universe, w
n Egypt. We f
e same period
llowing plenty
s ratio of 20 t
ccount. The c
this kind of co
GB Auto, the
s from its rece
y technical sel
company are
arket generally
e failing to p
Indeed the cum
oreign accoun
rowth of the n
ntage of the d
will continue
investing with
Saudi primari
care, the Lond
yst being the
care market in
r and Saudi as
ecade and th
significant inc
h a very strong
e data is given in
Fund
very well in the
the MSCI Fro
this month w
e same marke
ht into the stoc
up to close t
ith products t
orecast reven
d and believe
y of scope for
times 2016 ea
urrent reform
ompany to flou
Egyptian auto
nt deeply disc
l-off and we m
well supporte
y performed p
produce the
mbersome Qu
nt being open
non-oil sector
iversification a
to reform an
hout the noise
ly via quality
don-listed UAE
acquisition of
n the GCC as
s it continues i
he introduction
crease in the
g growth profile
n USD, unless o
e first half of 2
ontier Markets
were all from t
et. One of the
ck at its recen
to 5% of the F
that are gear
nue growth of
e that a plann
M&A opportun
arnings, the v
ist and busin
urish.
omotive assem
counted rights
maintain our e
ed by the posit
poorly in June
wave of fore
ualified Foreig
n on the first d
and the qualit
away from en
nd become m
e surrounding
consumer-rel
E hospital com
the long-term
the populatio
its regional ex
n of mandato
number of pr
e we find the v
otherwise stated
2015, generat
s Index. In Ju
he Middle Ea
e biggest gain
nt IPO and con
Fund. Edita ha
red into the g
20% a year u
ed 40% capa
nities both ins
aluation is un
ess minded g
mbler and dist
issue finally s
exposure to th
tive Egyptian
with the open
eign buying f
n Investor sta
day. Our posit
ty of compani
ergy, and not
more accessib
foreign owne
lated compan
mpany, continu
care busines
n ages and th
xpansion. We
ry health insu
rivate hospital
valuation unde
d.
Qua
ing a positive
ne, the Fund
st with signific
ners in the por
ntinued to add
as one of the
growing numb
until 2019, an
city expansio
side Egypt and
demanding w
government in
tributor, was a
settled and be
he stock as a
macro backdr
ning of the stoc
or which loca
tus required to
tive stance on
es that we ha
on the above
ble, the focus
ership. We are
ies like retaile
ues to perform
s, ProVita. Th
his acquisition
believe NMC
urance in Dub
patients in th
emanding.
rterly Invest
return of 1.4%
fell by 0.2%
cant performa
rtfolio was the
d to the positio
highest qualit
ber of lower
nd earnings gr
n can be fund
d in the broad
when high ear
n Egypt provid
a negative per
ecame availab
again the stron
rop.
ckmarket to fo
al investors
o access the m
n Saudi is pre
ave found that
e technical fac
s for now wil
e maintaining
ers; hospitals
m very strongly
his is a rapidly
should give N
can triple its e
bai between 2
hat market. At
tment ReporJune 2015
% in contrast t
versus a fall o
ance dispersio
e Egyptian foo
on once tradin
ty manageme
middle incom
rowth of 24%
ded by intern
er region. On
nings growth
des the perfe
rformer in Jun
le for sale. Th
ng fundament
oreign investo
had positione
market resulte
edicated on th
t are positione
ctors. Whilst th
ll shift back t
our significa
and educatio
y with the late
growing secto
NMC a footho
earnings by th
2014 and 201
15 times 201
rt 5
to
of
on
od
ng
nt
me
a
al
a
is
ct
ne
is
al
rs
ed
ed
he
ed
he
to
nt
on
st
or
ld
he
16
16
4
A
Magna New
COMMENT
The second
number of fac
1. Reform Whether y
social me
large cou
economic
be countr
very high
Saudi Ara
Pakistan:
Vietnam:
Egypt:
Nigeria:
In addition
clear with
capital ma
All performance
w Frontiers F
TARY /contin
half of 2015
ctors providing
you blame the
edia or the ge
ntries are on
c growth as th
ries moving in
profile and su
abia: currently
on ene
foreign
two yea
and is
highligh
private
a recent
the bloc
foreign
foreign
recent p
return E
significa
growth
recently
election
past ca
high gro
longer t
currentl
adminis
n to these hig
the likes of C
arkets.
e data is given in
Fund
nued
and beyond c
g strong suppo
e fall in comm
nerational shi
the path of s
e economies
n the opposite
uccessful refor
y in the middle
rgy, and impl
investment int
rs ago had th
now on a ve
hted by a big
sector manag
t clean-up of t
ckages in the
ownership lim
capital into the
political chang
Egypt to its pr
antly reducing
towards 8% p
y experienced
ns. There is a
n be addresse
owth rates. W
to reverse tha
y hold any N
stration backs
gh profile refor
Cuba, Iran, Mya
n USD, unless o
could prove to
ort:
modity prices,
ft following th
social, politica
liberalise and
e direction, the
rm stories:
e of several in
lementing ver
to the market
e first peacefu
ery aggressive
privatisation p
gers and raises
the state-owne
economy to
mits on most
e country.
ge has been
revious high g
g the cost of
per annum.
d its first eve
huge amount
ed and that A
We believe tha
n the market
Nigerian posit
up its rhetoric
rm stories, the
anmar and Et
otherwise stated
o be profitable
the rise in e
he revolutions
al and econom
d attract capita
e frontier wor
nitiatives to di
ry significant
for the first tim
ul transition of
e programme
programme wh
s significant s
ed enterprise
be removed.
equities is a
followed thro
growth traject
capital for Eg
er peaceful h
t of hope that
Africa’s largest
at the very ne
is currently fac
tions, but this
c with actions.
e next wave o
hiopia all laun
d.
Qua
e for investor
asily accessib
of the 1970s
mic reform. T
al for investm
rld today is ch
versify the ec
stockmarket r
me.
f democratic p
e of reform in
hich both puts
ums of money
and banking s
In addition th
further sign
ugh by signif
ory. Huge am
gyptian busine
handover of p
the terrorism
economy can
egative econom
ctoring in and
s could chan
of countries sta
nched on the ro
rterly Invest
rs in frontier m
ble communic
, it is clear th
hese reforms
ment. Whilst th
haracterized b
conomy away
reforms which
power in the c
n all areas of
s companies
y for the treasu
sectors has en
he recent deci
of the wish t
ficant econom
mounts of fore
esses and dr
power follow
and corruptio
n return to its
mic environm
therefore the
nge very quic
arting on this
road to integra
tment ReporJune 2015
markets, with
cations such a
at a number o
create exces
here will alway
by a number o
from a relianc
h enable dire
ountry’s histo
f the econom
in the hands o
ury.
nabled some o
sion to remov
to attract mor
mic initiatives t
eign money ar
iving econom
ing democrat
on issues of th
previously ve
ment will requir
Fund does no
ckly if the ne
path is alread
ation with glob
rt 5
a
as
of
ss
ys
of
ce
ct
ry
y,
of
of
ve
re
to
re
mic
tic
he
ry
re
ot
ew
dy
al
5
A
Magna New
COMMENT
2. ValuationFrontier b
price/earn
developed
a price/ea
The two c
versus em
3. Rising inAs the US
question
elsewhere
In fact, ov
from front
the point
tantrum” o
Source: Citi Rese
All performance
w Frontiers F
TARY /contin
n became an as
nings ratios,
d markets sinc
arnings multipl
charts below
merging and d
terest rates; S starts to rais
is should fro
e?
ver the past 15
tier markets. T
that this is no
of 2013, frontie
earch
e data is given in
Fund
nued
sset class in 2
frontier mark
ce the asset c
e of below 10
shows the hu
eveloped mar
are they bad se interest rat
ntier markets
5 years, highe
The chart belo
ot driven by U
er markets ou
n USD, unless o
2007 when th
kets today ar
class was form
0 times for this
uge discount t
rkets and ama
for frontier mtes at some p
s suffer as liq
er bond yields
ow shows this
USD-pegged
utperformed em
otherwise stated
e MSCI launc
re trading at
med. They are
year.
that has now
algamated into
markets? point later this
quidity drains
have consiste
relationship w
Gulf markets)
merging marke
d.
Qua
ched its Front
the biggest
e cheap on an
emerged on
o world market
s year, and as
out of them
ently been ass
with the frontie
). And indeed
ets.
rterly Invest
tier Markets I
discount to
n absolute bas
trailing price/
ts.
s global bond
and chases
sociated with o
er markets ex
, during the s
tment ReporJune 2015
ndex. On 201
emerging an
sis as well, wit
/earnings ratio
yields rise, th
higher return
outperformanc
-GCC (to mak
so-called “tape
rt 5
15
nd
th
os
he
ns
ce
ke
er
6
A
Magna New
COMMENT
With one of t
the reform pr
this economic
trusting with
shareholders
towards dom
the local popu
We believe th
produce exce
current frontie
All performance
w Frontiers F
TARY /contin
he main reaso
rocess, our inv
c growth. Our
our own and
to benefit fr
estic compan
ulation.
hat a global po
ess returns to
er country stoc
e data is given in
Fund
nued
ons for investi
vestment proc
work is heavi
d clients’ mon
om the succe
ies that benef
ortfolio of com
fund holders o
ckmarket valu
n USD, unless o
ing in frontier
cess is centred
ly focused on
ney in a corpo
ess of the co
fit substantiall
mpanies with s
over a long pe
uations, we be
otherwise stated
markets bein
d around findi
finding comp
orate governa
ompany. Our
y from the ref
strong manage
eriod of time. A
lieve the oppo
d.
Qua
g the excess
ng companies
any managem
ance structure
industry focu
form process
ement operatin
And given curr
ortunity is curr
rterly Invest
economic gro
s that can tak
ment that we fe
e that allows
us is therefor
and rising inc
ng in reformin
rent global ref
rently ripe.
tment ReporJune 2015
owth created b
ke advantage o
eel comfortab
us as minori
e heavily tilte
comes among
ng countries w
form trends an
rt 5
by
of
le
ty
ed
st
will
nd
7
Magna New Frontiers Fund Quarterly Investment Report
Portfolio Portfolio
Number of Holdings 50Off Benchmark Holdings 86.8% Active Money 91.8%Annual Turnover * 104%Cash 0.5%
Standard Deviation 10.1% Tracking Error 7.3%Sharpe Ratio 6.5 Information Ratio 0.0
Beta 0.7
Portfolio characteristics are given ex‐post, using monthly data over the past 3 yearsThe Sharpe Ratio is against 3 month USD LIBORActive Money is a measure of the extent to which the portfolio differs from the benchmark: 100% would indicate a portfoliothat holds no benchmark stocks* Sales as a percentage of average period net assets adjusted for subscriptions and redemptions
Valuation Metrics Portfolio Index
Price Earnings 7.7 10.7Price Book 1.3 1.6Dividend Yield 3.8% 3.7%Earnings Growth 13.6% N/AReturn on Equity 16.0% 14.0%
Portfolio Concentration Portfolio Index
Top 5 Holdings 27.0% 23.5%Top 10 Holdings 46.2% 32.8%Top 20 Holdings 68.2% 48.1%Top 10 Overweights 44.8%Top 10 Underweights ‐29.6%
Market Capitalization
Market Capitalization categories (not free‐float adjusted):Small < USD 1.0 billion; Mid USD 1.0 ‐ 10 billion; Large > USD 10 billion
The Index is the MSCI Frontier Markets Index
June 2015
PORTFOLIO CHARACTERISTICS 30 Jun 2015
Small40.6%
Mid49.4%
Large10.0%
Portfolio
Small9.8%
Mid71.9%
Large18.3%
Index
8
Magna New Frontiers Fund Quarterly Investment Report
Largest Holdings Portfolio Index
VEIL 6.3% 0.0%Al Noor Hospitals Group 5.7% 0.0%NMC Healthcare 5.6% 0.0%Edita 4.8% 0.0%Bank of Georgia 4.7% 0.0%Integrated Diagnostics Holdings 4.5% 0.0%GB Auto 4.1% 0.0%Banca Transilvania 3.9% 0.0%Hatton National Bank 3.5% 1.1%National Bank of Kuwait 3.2% 7.2%
Overweight Portfolio Index Active
VEIL 6.3% 0.0%Al Noor Hospitals Group 5.7% 0.0%NMC Healthcare 5.6% 0.0%Edita 4.8% 0.0%Bank of Georgia 4.7% 0.0%Integrated Diagnostics Holdings 4.5% 0.0%GB Auto 4.1% 0.0%Hatton National Bank 3.5% 0.0%Mouwasat 3.1% 0.0%Emirates NBD 2.6% 0.0%
Underweight Portfolio Index Active
KazMunaiGas 0.0% 1.7%Banco Macro 0.0% 1.8%Krka 0.0% 1.8%Maroc Telecom 0.0% 2.0%Guaranty Trust Bank 0.0% 2.0%Nigerian Breweries 0.0% 2.9%Zain 0.0% 3.3%National Bank of Kuwait 3.2% 7.2%YPF 0.0% 5.0%Kuwait Finance House 0.0% 5.1%
New stocks added in June:
Name Country Sector
Emaar Misr Egypt FinancialsEtisalat UAE Telecommunication Services
Stocks divested in June:
Name Country Sector
Eastern Company Egypt Consumer Staples
June 2015
STOCK EXPOSURE 30 Jun 2015
‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% 8.0%
‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% 8.0%
‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% 8.0%
9
Magna New Frontiers Fund Quarterly Investment Report
Country Portfolio Index Active
Argentina 3.1% 11.2%Bahrain 0.0% 1.2%Bangladesh 0.0% 2.4%Bulgaria 0.2% 0.1%Cambodia 0.0% 0.0%Croatia 0.0% 1.3%Egypt 18.0% 0.0%Estonia 1.5% 0.4%Georgia 7.0% 0.0%Greece 0.0% 0.0%Jordan 0.0% 0.7%Kazakhstan 2.1% 2.6%Kenya 1.5% 5.6%Kurdistan 0.0% 0.0%Kuwait 3.2% 21.4%Laos 0.0% 0.0%Lebanon 0.0% 3.4%Lithuania 0.0% 0.1%Mauritius 0.0% 1.2%Mongolia 0.6% 0.0%Morocco 0.0% 6.6%Myanmar 1.7% 0.0%Nigeria 0.0% 14.8%Oman 0.0% 5.4%Pakistan 4.2% 9.2%Qatar 0.0% 0.0%Romania 5.7% 3.3%Saudi Arabia 13.2% 0.0%Serbia 0.0% 0.2%Slovenia 0.0% 2.2%Sri Lanka 3.5% 1.9%Tunisia 0.0% 0.7%UAE 17.8% 0.0%Uganda 1.4% 0.0%Ukraine 0.0% 0.2%Vietnam 14.9% 3.9%Cash 0.5%
Sector Portfolio Index Active
Energy 2.4% 12.0%Materials 3.2% 7.1%Industrials 4.2% 3.2%Consumer Discretionary 12.2% 0.4%Consumer Staples 7.8% 8.3%Health Care 20.3% 2.9%Financials 44.3% 51.6%Information Technology 2.6% 0.0%Telecomm Services 1.1% 13.5%Utilities 1.4% 1.2%Cash 0.5%
June 2015
COUNTRY & SECTOR EXPOSURE 30 Jun 2015
‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%
‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%
10
Magna New Frontiers Fund Quarterly Investment Report
Currency Portfolio Index Active
AED 5.3% 0.0%BDT 0.0% 2.4%BGN 0.0% 0.1%BHD 0.0% 1.2%EGP 14.5% 0.0%EUR 1.6% 2.8%GBP 17.3% 0.0%HKD 0.0% 0.0%HRK 0.0% 1.3%JOD 0.0% 0.7%KES 1.5% 5.6%KRW 0.0% 0.0%KWD 3.2% 21.4%LKR 3.5% 1.9%MAD 0.0% 6.6%MUR 0.0% 1.2%NGN 0.0% 14.8%NOK 0.0% 0.0%OMR 0.0% 5.4%PKR 4.2% 9.2%QAR 0.0% 0.0%RON 5.7% 3.3%RSD 0.0% 0.2%SGD 1.7% 0.0%TND 0.0% 0.7%UAH 0.0% 0.2%UGX 1.4% 0.0%USD 31.4% 17.2%VND 8.8% 3.9%Others 0.0% 0.0%
Note that although exposure to companies is often achieved via securities listed on stockmarkets in developed countries that may bedenominated in USD etc. the underlying exposure remains within emerging markets
June 2015
CURRENCY EXPOSURE 30 Jun 2015
‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%
11
Magna New Frontiers Fund Quarterly Investment Report
Countries Bars show active weights
Sectors Bars show active weights
June 2015
PORTFOLIO MOVEMENT: COUNTRY & SECTOR Second Quarter 2015
‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%
EnergyMaterialsIndustrials
Consumer DiscretionaryConsumer Staples
Health CareFinancials
Information TechnologyTelecomm Services
Utilities
31 Mar 201530 Jun 2015
‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%
Argentina
Bahrain
Bangladesh
Bulgaria
Cambodia
Croatia
Egypt
Estonia
Georgia
Jordan
Kazakhstan
Kenya
Kuwait
Lebanon
Lithuania
Mauritius
Mongolia
Morocco
Myanmar
Nigeria
Oman
Pakistan
Romania
Saudi Arabia
Serbia
Slovenia
Sri Lanka
Tunisia
UAE
Uganda
Ukraine
Vietnam
31 Mar 201530 Jun 2015
12
Magna New Frontiers Fund Quarterly Investment Report
New stocks added over the period:
Name Country Sector
Emaar Misr Egypt FinancialsEtisalat UAE Telecommunication ServicesHabib Bank Pakistan FinancialsIntegrated Diagnostics Holdings Egypt Health Care
Stocks divested over the period:
Name Country Sector
AshakaCem Nigeria MaterialsCONPET Romania EnergyDubai Parks and Resorts UAE FinancialsEastern Company Egypt Consumer StaplesFondul Proprietatea Romania FinancialsJohn Keells Sri Lanka IndustrialsKIPCO Kuwait FinancialsNagaCorp Cambodia Consumer Discretionary
June 2015
PORTFOLIO MOVEMENTS: STOCKS Second Quarter 2015
13
Magna New Frontiers Fund Quarterly Investment Report
Predicted Risk
Tracking Error 7.5%Percentage of which:Stock Specific Risk 60.2%Other Factors 39.8%
Beta 0.9Absolute Fund Volatility 12.5%Absolute Benchmark Volatility 11.0%
Stock Contributors to Tracking Variance
NMC Healthcare 8.3%Al Noor Hospitals Group 7.0%Vietnam Growth Fund 7.0%YPF 6.2%Bank of Georgia 7.75% 2017 5.7%Edita 5.4%Integrated Diagnostics Holdings 4.9%Nigerian Breweries 4.5%Guaranty Trust Bank 2.7%GB Auto 2.6%
Agility ‐0.1%Equity Bank ‐0.1%Commercial Bank ‐0.1%Nawras ‐0.1%Bank Sohar ‐0.1%BankMuscat ‐0.1%Masan Group ‐0.1%Suez Cement ‐0.2%Transgaz ‐0.2%Al Salam Bank‐Bahrain ‐0.3%
This risk analysis, on an ex‐ante basis, is produced by PRISM, a bespoke system
closely matched to Charlemagne Capital's investment process.
June 2015
RISK 30 Jun 2015
0.0% 3.0% 6.0% 9.0%
‐0.9% ‐0.6% ‐0.3% 0.0%
14
Magna New Frontiers Fund Quarterly Investment Report
Overview EUR
Gross Fund Return 1.7%Benchmark Return ‐3.7%Active Return 5.4% of which: Security Selection 3.9%
Asset Allocation 1.5%
Security Selection
Top 10 Stocks Country Sector Portfolio Index ContributionWeight Weight
Edita Egypt Consumer Staples 4.8% 0.0% 178NMC Healthcare UAE Health Care 5.6% 0.0% 131Bank of Georgia Georgia Financials 4.7% 0.0% 98IDH Egypt Health Care 4.5% 0.0% 76Zain Kuwait Telecommunication Services 0.0% 3.3% 55HBL Pakistan Financials 2.1% 1.3% 49Telecom Argentina Argentina Telecommunication Services 0.0% 1.6% 39KazMunaiGas EP Kazakhstan Energy 0.0% 1.7% 38Emaar Properties UAE Financials 1.0% 0.0% 37Maroc Telecom Morocco Telecommunication Services 0.0% 2.0% 31
Bottom 10 Stocks Country Sector Portfolio Index ContributionWeight Weight
Gobi Coal Mongolia Materials 0.6% 0.0% ‐56National Bank of Kuwait Kuwait Financials 3.2% 7.2% ‐28MWG Vietnam Consumer Discretionary 2.0% 0.0% ‐24DHG Pharma Vietnam Health Care 1.5% 0.0% ‐24Equity Bank Kenya Financials 1.5% 1.0% ‐23Krka Slovenia Health Care 0.0% 1.8% ‐22Mabanee Kuwait Financials 0.0% 1.4% ‐18CIB Egypt Financials 1.1% 0.0% ‐18Ecobank Nigeria Financials 0.0% 0.8% ‐17Nigerian Breweries Nigeria Consumer Staples 0.0% 2.9% ‐15
Attribution by Country
Portfolio Index Portfolio Index Asset Security TotalWeight Weight Return Return Allocation Selection Attribution
Egypt 18.0% 0.0% 9.3% 0.0% 0 223 223United Arab Emirates 17.8% 0.0% 10.6% 0.0% 0 211 211Georgia 7.0% 0.0% 6.5% 0.0% 0 84 84Argentina 3.1% 11.2% ‐22.1% ‐16.7% 102 ‐21 81Kuwait 3.2% 21.4% 0.9% ‐4.9% 30 20 49Saudi Arabia 13.2% 0.0% ‐1.2% 0.0% 0 41 41Kazakhstan 2.1% 2.6% 0.9% ‐11.9% 11 26 37Morocco 0.0% 6.6% 0.0% ‐7.9% 31 0 31Kenya 1.5% 5.6% ‐22.2% ‐14.1% 51 ‐20 31Pakistan 4.2% 9.2% 25.4% 6.8% ‐37 60 23Mongolia 0.6% 0.0% ‐51.8% 0.0% 0 ‐56 ‐56Nigeria 0.0% 14.8% 9.6% 1.2% ‐79 3 ‐75
Contribution, asset allocation, security selection and total attribution are given in basis pointsThe asset allocation effect includes the impact of trading and currency. End period weights are shown.
June 2015
PERFORMANCE ATTRIBUTION Second Quarter 2015
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Magna New Frontiers Fund Quarterly Investment Report
Overview EUR
Gross Fund Return 10.1%Benchmark Return 5.2%Active Return 4.9% of which: Security Selection 7.0%
Asset Allocation ‐2.1%
Security Selection
Top 10 Stocks Country Sector Portfolio Index ContributionWeight Weight
NMC Healthcare UAE Health Care 5.6% 0.0% 286Edita Egypt Consumer Staples 4.8% 0.0% 177DAMAC Properties UAE Financials 0.0% 0.0% 79IDH Egypt Health Care 4.5% 0.0% 76KazMunaiGas EP Kazakhstan Energy 0.0% 1.7% 74Zain Kuwait Telecommunication Services 0.0% 3.3% 72VEIL Vietnam Financials 6.3% 0.0% 63Mouwasat Saudi Arabia Health Care 3.1% 0.0% 59HBL Pakistan Financials 2.1% 1.3% 52Dubai Parks and Resorts UAE Financials 0.0% 0.0% 46
Bottom 10 Stocks Country Sector Portfolio Index ContributionWeight Weight
Guaranty Trust Bank Nigeria Financials 0.0% 2.0% ‐118Fondul Proprietatea Romania Financials 0.0% 0.0% ‐76Zenith Bank Nigeria Financials 0.0% 1.6% ‐66MWG Vietnam Consumer Discretionary 2.0% 0.0% ‐59Grupo Galicia Argentina Financials 1.6% 1.7% ‐56Gobi Coal Mongolia Materials 0.6% 0.0% ‐53Yoma Strategic Myanmar Consumer Discretionary 1.7% 0.0% ‐49Banco Macro Argentina Financials 1.5% 1.8% ‐44TBC Bank Georgia Financials 2.3% 0.0% ‐36DHG Pharma Vietnam Health Care 1.5% 0.0% ‐30
Attribution by Country
Portfolio Index Portfolio Index Asset Security TotalWeight Weight Return Return Allocation Selection Attribution
United Arab Emirates 17.8% 0.0% 40.1% 0.0% 0 478 478Egypt 18.0% 0.0% 27.7% 0.0% 0 245 245Saudi Arabia 13.2% 0.0% 18.0% 0.0% 0 181 181Kazakhstan 2.1% 2.6% 14.5% ‐14.0% 45 54 98Kuwait 3.2% 21.4% 6.3% 2.7% 36 12 48Sri Lanka 3.5% 1.9% 8.8% ‐7.3% ‐24 70 47Morocco 0.0% 6.6% 0.0% ‐0.4% 37 0 37Oman 0.0% 5.4% 33.8% 14.6% ‐44 4 ‐40Myanmar 1.7% 0.0% ‐18.3% 0.0% 0 ‐48 ‐48Mongolia 0.6% 0.0% ‐45.7% 0.0% 0 ‐52 ‐52Nigeria 0.0% 14.8% 23.0% 2.5% ‐87 ‐17 ‐104Argentina 3.1% 11.2% ‐0.4% 17.3% ‐119 ‐18 ‐137
Contribution, asset allocation, security selection and total attribution are given in basis pointsThe asset allocation effect includes the impact of trading and currency. End period weights are shown.
June 2015
PERFORMANCE ATTRIBUTION: YEAR TO DATE 2015 to 30 Jun
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Magna New Frontiers Fund Quarterly Investment Report
Performance
Year Composite Benchmark Composite Benchmark Number of Internal Composite Firm2010 Gross Return Return 3 Year St Dev 3 Year St Dev Portfolios Dispersion Assets Assets2010 32.9% 23.4% Five or fewer N/A USD 27m USD 3,317m2011 ‐22.3% ‐18.7% Five or fewer N/A USD 30m USD 2,206m2012 12.6% 8.9% 19.7% 11.0% Five or fewer N/A USD 18m USD 2,530m2013 35.8% 25.9% 17.6% 11.9% Five or fewer N/A USD 24m USD 2,636m2014 ‐0.1% 6.8% 14.4% 11.1% Five or fewer N/A USD 25m USD 2,197m
2010 returns from 30 Jun
June 2015
GIPS PRESENTATION
Charlemagne Capital’s Frontier Markets Composite consists of fee‐paying discretionary portfolios with a remit to invest principally infrontier markets. For comparison purposes, the composite is measured against the MSCI Frontier Markets Index, a free float‐adjustedmarket capitalization index that is designed to measure equity market performance in global frontier markets. Returns include the effectof foreign currency exchange rates. The index uses the 4pm London close whilst the composite uses the 4pm New York close. Internaldispersion is calculated using the equal‐weighted standard deviation of the annual returns of all portfolios that were included in thecomposite for the entire year. The Frontier Markets Composite was created on 1 January 2014.
Charlemagne Capital is a specialist, independent emerging markets asset management group, and includes both Charlemagne Capital(IOM) Limited and Charlemagne Capital (UK) Limited. With effect from 31 December 2009, the GIPS‐compliant definition of the firmexcludes the private equity business of Charlemagne Capital, which is run as a separate division. The firm maintains a complete list anddescription of composites, which is available upon request.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Compositeperformance is presented net of foreign withholding taxes on dividends, interest income, and capital gains. Withholding taxes may varyaccording to the investor’s domicile. Composite returns represent investors domiciled primarily in the United Kingdom and Ireland. Theindex uses withholding tax rates applicable to the country of incorporation of each company in the portfolio. Past performance is notindicative of future results.
The US dollar is the currency used to express performance. Returns are presented gross of management fees and include thereinvestment of all income. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in themanagement of the account. The collection of fees produces a compounding effect on the total rate of return net of management fees. Asan example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) quarterly fee assessment, (b)$1,000,000 investment, (c) portfolio return of 8% a year, and (d) 1.00% annual investment advisory fee would be $10,416 in the first year,and cumulative effects of $59,816 over five years and $143,430 over ten years. The investment management fee on pooled portfolios istypically 1.25% per annum; a performance‐based fee may also be applied. Actual investment advisory fees incurred by clients may benegotiable and can vary. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available uponrequest.
Charlemagne Capital claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented thisreport in compliance with the GIPS standards. Charlemagne Capital has been independently verified for the periods 1 June 2000 through30 June 2014. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all thecomposite construction requirements of the GIPS standards on a firm‐wide basis and (2) the firm’s policies and procedures are designedto calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specificcomposite presentation.
GIPS is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this presentation.
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Magna New Frontiers Fund Quarterly Investment ReportJune 2015
This document is issued by Charlemagne Capital (UK) Limited, which is authorised and regulated by the Financial Conduct Authority.
Charlemagne Capital (UK) Limited39 St James‘s StreetLondon SW1A 1JD
Tel: + 44 (0)20 7518 2100Fax: + 44 (0)20 7518 2200Website: www.charlemagnecapital.com
Index data is sourced from MSCI. Charlemagne Capital is the source of all other data unless stated otherwise.
DISCLAIMER
This document may not be disclosed, distributed, copied, reproduced or used (in whole or in part) for any purpose without theexpress written consent of Charlemagne Capital (UK) Limited (“Charlemagne”). Charlemagne has been appointed by Magna UmbrellaFund plc (the “Company”) to procure the distribution of its Shares. The Company is an open‐ended umbrella investment companyauthorised by the Central Bank of Ireland as a UCITS. Charlemagne Capital (UK) Limited is authorised and regulated by the FinancialConduct Authority (“FCA”). The Company has sought and has been granted approval by the relevant regulatory authorities to marketand distribute its Shares as appropriate in the following jurisdictions: UK; Germany; Luxembourg; Austria; Switzerland*; TheNetherlands; Denmark; Singapore; France, Finland, Sweden and Italy. In Canada, the distribution of this document and any otherdocument relating to the distribution or marketing of the Company (including the Prospectus relating to Company), is made and willbe made only to accredited investors (as defined in National Instrument 45‐106 – Prospectus and Registration Exemptions) orpursuant to another applicable prospectus exemption. Full information on the regulatory status and the applicable laws relating tothe marketing and distribution of the Company’s Shares in the various jurisdictions in which the Company is registered are moreparticularly set out in the Prospectus of the Company. The purchase of shares in the Company constitutes a high risk investment andinvestors may lose a substantial portion or even all of the money they invest in the Company. Investors are advised to read thesection of the Prospectus entitled “Risk Factors” prior to investing in the Company. The information within does not constituteinvestment, tax, legal or other advice and is not a recommendation or an offer to sell nor a solicitation of an offer to buy Shares in theCompany, which may only be made on the basis of the Company’s Prospectus. An investor in the United Kingdom who enters into anagreement to acquire Shares in the Company will not have the right to cancel the agreement under any cancellation rules made bythe FCA. Charlemagne reasonably believes that the information contained herein is accurate as at the date of publication but nowarranty or guarantee (express or implied) is given as to accuracy or completeness. The information and any opinions expressedherein may change at any time. The Prospectus of the Company shall not be distributed and Shares in the Company shall not beoffered, distributed or sold in any jurisdiction in which such distribution, offer or sale would be unlawful. Prior to investing in theCompany, investors are advised to contact their independent financial adviser and should read all documents relating to theCompany that may be obtained from the Administrator, the Share Distributor or the website of www.fundinfo.com. This documentincludes statements that are, or may be deemed to be, “forward‐looking statements”. These forward‐looking statements can beidentified by the use of forward‐looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”,“may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward lookingstatements include all matters that are not historical facts. They appear in a number of places throughout this document and includestatements regarding the intentions, beliefs or current expectations of Charlemagne concerning, amongst other things, theinvestment objectives and investment policy, financing strategies, investment performance, results of operations, financial condition,prospects, and dividend policy of the proposed investment vehicle and the markets in which it, and its portfolio of investments,invest and/or operate. By their nature, forward‐looking statements involve risks and uncertainties because they relate to events anddepend on circumstances that may or may not occur in the future. Forward‐looking statements are not guarantees of futureperformance. The proposed fund’s actual investment performance, results of operations, financial condition, dividend policy and thedevelopment of its financing strategies may differ materially from the impression created by the forward‐looking statementscontained in this document. There is no assurance the Company will achieve its investment objectives or the target returns describedin the document.
* The prospectus for Switzerland, Key Investor Information Documents, the articles of incorporation, the annual and semi‐annualreports, as well as the list of the buying and selling transactions can be obtained free of charge from the representative inSwitzerland, Carnegie Fund Services S.A., 11, rue du Général‐Dufour, 1204 Geneva, Switzerland, Tel. +41 22 705 11 77, Fax: + 41 22705 11 79, www.carnegie‐fund‐services.ch. The paying agent is Banque Cantonale de Genève, 17 Quai de l'Ile, 1204 Geneva,Switzerland.
To receive a list of Charlemagne Capital’s composite descriptions and/or a presentation that complies with GIPS standards, as well as any other information, please contact the Marketing Department.
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