AFC Asia Frontier Fund

AFC Asia Frontier Fund

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1. Executive Summary 3

2. Why Frontier Markets 4

3. Asia Frontier Capital 14

4. Investment Objective 17

5. Investment Strategy 18

6. Fund Information 23

7. Top 4 Stock Holdings 34

8. Country Snapshots 36

9. Terms and Conditions 51

10. Contact Information 53

11. Disclaimer 54

Objectives

• Achieve long-term capital appreciation by investing in listed equities of companies that have their principal business activities in the high-growth frontier markets of Asia.

Fund Overview

• Sector focus: consumer related stocks (consumer staples and consumer discretionary), financials and infrastructure related stocks. Additionally country specific sectors/stocks like tourism in Sri Lanka or mining in Mongolia and Papua New Guinea.

• Invest in target countries large cap and liquid stocks (core portfolio) with stock position size from 2% to 5%, and mid- to small caps (satellite portfolio) with position size from 1% to 3%.

• Focus on earnings growth and undervalued stocks as key drivers for returns

Firm Overview

• Asia Frontier Capital , headquartered in Hong Kong is an investment management firm that specializes in frontier markets with experience managing funds since 2008.

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4

5

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Excellent upside potential due to high GDP growth

Low correlation to developed markets

Diversification

Young Population

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Attractive Valuations

• Attractive P/E valuations (9.9x) compared to Global and Emerging Markets

Index P/E – Forecast 12-month (x)

MSCI World Index 13.2

MSCI Emerging Markets Index 11.0

MSCI Frontier Markets Index 9.9

Source: Bloomberg

Value Drivers Under-researched Illiquid Misunderstood Bad PR Ignored

Growth Drivers Economic & Social Reform Infrastructure Connectivity Low Base

Consumerism

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Low Correlation to Developed Markets Ensures Asset Diversification

• Frontier markets have low correlation to the MSCI World Index and yield higher returns indicating ample opportunities to find “alpha”

Correlation based on 5 Years of Monthly

Return 5-Year Return

MSCI World Index MSCI Frontier Index

MSCI World Index 100% -21%

MSCI Frontier Index 86% 100% -27%

Bangladesh -18% -37% 227%

Sri Lanka 4% -26% 108%

Mongolia 16% -1% 870%

Vietnam 78% 61% -63%

Laos* 79% 78% N/A

Pakistan 88% 79% 2%

* 2 years only Source: Factset, MSCI

9

Future Emerging Markets

• High GDP CAGR of 7% at a pre-emerging stage

• Forecasted to increase at a faster rate than BRIC and eventually replace BRIC as the new mainstream emerging markets

6% 7% 7% 6%

1% 2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2000-2010 2010-2016

CAGR of Historical and Projected GDP

Leopard Frontier Universe

BRIC

Major Advanced Economies (G7)

Source: IHS Global Insight, IMF

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Myanmar 7%

Sri Lanka 9%

Others 9%

Vietnam 18%

Bangladesh 15%

Pakistan 23%

Iraq 19%

Bhutan 2%

Maldives 3%

Mongolia 15%

Laos 12%

Papua New

Guinea 22%

Cambodia 20%

Nepal 25%

Others (9%)

Size of Combined Economies: US$ 752 billion

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Others 3%

Cambodia 3%

Sri Lanka 3% Nepal

5%

Iraq 5%

Myanmar 10%

Vietnam 15% Bangladesh

27%

Pakistan 29%

Maldives 2%

Bhutan 4%

Mongolia 18%

Papua New

Guinea 38%

Laos 38%

Others (3%)

Combined Population: 616.1 million

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High Growth + Diversification

• High GDP growth of 6.9% in 2012 and 7.7% expected in 2013

• A single investment vehicle that allows investors to diversify their portfolio and access high growth markets that are not easily accessible

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Asian Frontier Markets will grow by 7.7% on average in 2013

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Governments Are Attempting To Increase FDI

• Increasing productivity through transfer of skills, technology, and job opportunities

Expected Increase In Foreign Investors’ Participation

• Myanmar has attracted foreign inflows from well reputed companies such as Coca-Cola, Dell, Carlsberg, Mitsubishi, etc.

• Banks such as Standard Chartered and HSBC are also in the

process of setting up operations in Myanmar • Labor intensive businesses are moving to Bangladesh from

China due to the cheaper availability of a young skilled labor • Exxon Mobil has set up a US$ 20 bn LNG project in Papua New

Guinea which is expected to double PNG’s GDP • Tourism is growing rapidly in countries such as Sri Lanka and

Cambodia

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Proven Expertise In Frontier Markets • The founder and CEO, Thomas Hugger, has more than 20 years

experience in investing in Frontier Markets • Licensed by SFC Hong Kong for Type 4 (investment advisory) and Type

9 (asset management) • Asia Frontier Capital Ltd. was created in June 2013 through MBO with

Leopard Capital

Ongoing Cooperation with Leopard Capital • Experience managing funds in frontier markets since 2008 • Conducts equity research in local offices in Bangladesh, Cambodia,

Laos and Thailand

Attractive Equities Identified • Identified equities with great upside potential • Access to numerous primary and secondary research sources

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AFC Frontier Capital Limited - Portfolio Manager • Thomas Hugger

• 27 years in private banking, managing portfolios of listed and unlisted equity investments

• Lived in Asia >9 years

• Former Managing Director and Head of Portfolio Management at LGT Bank, Hong Kong

• Held investment positions at LGT Bank in Zurich and Bank Julius Baer in Zurich and Hong Kong

• Founding shareholder of one of the largest brokerage company in Bangladesh

• Certified Financial Analyst (CFIA) and Investment Adviser (Switzerland), and Certified European Federation of Financial Analysts Societies (EFFAS) Financial Analyst

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AFC Frontier Capital Limited – Investment Analyst • Ruchir Desai

• MBA Graduate in Finance from CUHK Business School, The Chinese University of Hong Kong

• Also alumnus of The Fuqua School of Business, Duke University

• 5 years of Equity Research experience

• Previous experience in frontier markets as Summer Associate at Leopard Asia Frontier Fund

• Prior to business school was based in Mumbai, India and spent two years as a Senior Analyst at a mid market private equity group

• In addition, gained three years of experience as a Sell Side Research Analyst covering the Indian Software Services industry

• Achieve long-term capital appreciation by investing in listed equities of companies that have their principal business activities in high-growth Asian frontier markets.

• The fund focuses primarily on investments in consumer related stocks, financials and infrastructure.

• Countries included in the AFC Asia Frontier Fund Universe include

Bangladesh

Cambodia

Iraq

Laos

Mongolia

Myanmar

Pakistan

Papua New Guinea

Sri Lanka

Vietnam

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Top-down Approach

Value / Growth

Risk Mitigation

Cash

• Invest in target countries large cap and liquid stocks (core portfolio) with stock positions ranging from 2% to 5%, and mid- to small caps (satellite portfolio) with positions ranging from 1% to 3%

• Focus on free cash flow, growth potential and undervalued stocks as key drivers for returns

• Top –Down Approach :

Strategic country and currency allocation Company visits and research (primary and secondary) either by

the fund manager or team members based in various countries in the AFC Asia Frontier universe

• Combination of Value and Growth

Gain exposure to domestic and structural growth by investing in companies with sound business performance and management, coupled with good expansion strategies

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Country/Sector Approach In addition to AFC Frontier Fund’s core investment themes (Consumption, Infrastructure, and Financials), the fund is also targeting country-specific sectors that are poised for rapid growth Agriculture in Cambodia, Laos, Myanmar and Vietnam Textiles in Bangladesh and Pakistan Travel & Tourism in Cambodia and Sri Lanka Power generation in Laos Energy in Iraq and Papua New Guinea Mining in Mongolia and Papua New Guinea

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Target Countries (AFC Asia Frontier Universe)

• Bangladesh

• Bhutan

• Cambodia

• Iraq

• Laos

• Maldives

• Mongolia

• Myanmar

• Nepal

• Pakistan

• Papua New Guinea

• Sri Lanka

• Vietnam

MSCI Frontier Index

• 29.6% Kuwait 1.9% Slovenia

• 14.2% Qatar 1.6% Vietnam

• 9.1% Nigeria 1.1% Mauritius

• 8.4% UAE 1.0% Romania

• 6.9% Argentina 0.9% Tunisia

• 3.9% Pakistan 0.9% Jordan

• 3.7% Bangladesh 0.6% Bahrain

• 3.1% Oman 0.4% Ukraine

• 3.0% Kazakhstan 0.4% Estonia

• 2.5% Croatia 0.3% Serbia

• 2.1% Kenya 0.3% Lithuania

• 2.0% Sri Lanka 0.1% Bulgaria

• 2.0% Lebanon

The investment universe of Leopard Asia Frontier Fund consists of all countries

included in the MSCI Frontier Index plus other “frontier” countries not yet included.

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Risk Mitigation Focus on earnings growth, free cash flow and value as the key driver for

high returns In-depth due diligence of investment opportunities Diversify across sectors and countries to reduce non systematic risk Avoid investing in countries / currencies / sectors of which we

strategically disapprove (role of the Investment Committee) No leverage

Cash Not fully invested in uncertain times and/or excessive valuations Holding cash will allow the fund to take advantage of opportunistic

investments when they arise (momentum / news driven)

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NAV as of 31st May 2013

USD-A EUR-A CHF-A USD-B EUR-B CHF-B

NAV $1,133.62 n/a CHF 1,165.67 $1,139.67 n/a n/a

Monthly Performance AFC Frontier Fund (Class A)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2012 USD +0.91% -7.56% -0.27% -0.26% +0.85% +3.64% -0.96% +0.62% +3.62% +0.15%

CHF -0.29% -1.18% -2.62% +1.62% -1.40% +1.92% -1.82% +0.24% +2.26% -1.39%

2013 USD +5.99% -1.75% -0.70% +1.12% +8.25% +13.20%

CHF +5.65% +0.84% +0.61% -0.96%

+11.36

% +18.21%

Monthly Performance AFC Frontier Fund (Class B)


2012 USD +0.94% -7.55% -0.24% -0.23% +0.88% +3.67% -0.94% +0.64% +3.65% +0.37%

2013 USD +6.09% -1.77% -0.70% +1.17% +8.45% +13.55%

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Monthly Performance AFC Frontier Fund (Non-US) Class A


2012 USD +0.90% -7.56% -0.27% -0.26% +0.85% +3.64% -0.96% +0.61% +3.62% +0.14%

CHF -0.29% -1.18% -2.62% +1.62% -1.40% +1.92% -1.82% +0.24% +2.26% -1.39%

2013 USD +5.99% -1.75% -0.70% +1.12% +8.25% +13.20%

CHF +5.65% +0.84% +0.62% -0.96%

+11.36

% +18.21%

Monthly Performance AFC Frontier Fund (Non-US) Class B


2012 USD +0.94% -7.55% -0.24% -0.23% +0.88% +3.67% -0.94% +0.64% +3.65% +0.36%

2013 USD +6.09% -1.77% -0.70% +1.17% +8.45% +13.54%

NAV as of 31st May 2013

USD-A EUR-A CHF-A USD-B EUR-B CHF-B

NAV $1,133.51 n/a CHF 1,165.67 $1,139.55 n/a n/a

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850

900

950

1,000

1,050

1,100

1,150

1,200

Mar 12

Apr 12

May 12

Jun 12

Jul 12

Aug 12

Sep 12

Oct 12

Nov 12

Dec 12

Jan 13

Feb 13

Mar 13

Apr 13

May 13

Ind

exe

d R

etu

rn

AFC Asia Frontier Fund USD Class A MSCI World

MSCI Frontier Markets MSCI Frontier Markets Asia

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Amongst the top 6% of funds as at the end of May 2013 • AFC Asia Frontier Fund’s 3 month , year to

date and 1 year performances are amongst the

top 6% of emerging market equity funds

globally (1,225 funds) (net of all fees /

expenses)

Source: Bloomberg

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Growth in Fund Size and Number of Clients

0

2

4

6

8

10

12

14

16

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Private Clients (RHS)

Institutional Clients (RHS)

Fund size (US$'000) (LHS)

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0.0%

4.0%

8.0%

12.0%

16.0%

20.0% 18.7%

14.1% 13.8% 12.7%

9.9%

7.4% 7.0% 6.4%

2.2% 1.2%

6.6%

Country Allocation - May 2013

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0.0%

6.0%

12.0%

18.0%

24.0%

30.0% 26.4%

17.4%

13.4%

11.2%

6.5% 6.3% 4.5%

3.2% 1.4% 1.3% 1.0%

6.6%

0.8%

Sector Allocation - May 2013

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Focus on Consumer Stocks (44% allocation) • Due to the extremely low GDP per capita in these countries, every

additional dollar earned is spent on better quality food, water and basic

necessities

• Attractive valuations of consumer stocks in Asia make these companies

strong takeover targets

• Heineken bought out Asia Pacific Breweries at a P/E ratio of 38x and a

P/B ratio of 11x. This shows the confidence that multinationals have in

the future growth of South-East Asia.

• KKR has invested USD 359 million into Masan Group (Vietnam) at a 44x

P/E Ratio

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Focus on Consumer Stocks (44%)

Country P/E(Trailing) P/B Ratio Dividend Yield

Bangladesh – Footwear Company 9.2x 1.2x 2.4%

Cambodia – Gaming Company 13.1x 3.7x 4.3%

Iraq – Soft Drink Manufacturer 12.6x 1.5x 4.6%

Mongolia – Bakery Products 8.8x 0.7x 0.8%

Pakistan – Brewery 9.4x 1.0x 1.8%

Papua New Guinea – Consumer Retail 10.6x 2.0x 4.1%

Sri Lanka – Car Importer 3.0x 1.0x 9.3%

Vietnam – Brewery 4.0x 1.1x 10.9%

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Regional Peer Comparison

Company P/E Ratio (Trailing)

P/B Ratio

Dutch Lady Milk (Malaysia) 24.3x 3.5x

Fraser & Neave (Singapore) 23.8x 11.8x

Nestle Malaysia 29.2x 7.4x

Indofod Sukses (Indonesia) 19.8x 11.6x

Mayora Indah (Indonesia) 33.9x 24.6x

Want Want China China 37.2x 19.6x

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A Frontier Country’s Largest Bank • 40% market share, country’s largest branch network • Expected loan growth: 30% CAGR over the next 3 years • Earnings growth 2012: 24%, 2013: 44% • P/E 2012: 5.7x, P/E 2013: 4.0x • Dividend yield: 11.4%, PBV: 0.97x

A Leading Generic Pharmaceutical Company • Started exports to increase sales revenue • The fund invested through a GDR with a 63% discount to the home

market • Earnings growth 2012: 35%, 2013: 28% • P/E 2012: 11.0x, P/E 2013: 8.6x

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A Gaming, Hotel and Leisure Operator • 23 years gaming monopoly, increasing number of gaming tables

and expanding leisure infrastructure • Revenue growth 2012: 18%, 2013: 23% • P/E 2012: 10.2x, P/E 2013: 8.3x • Dividend yield: 5.1%

A Frontier Country’s Leading Power Plant Operator

• A power generation company that builds transmission lines, electro-stations and invests in electricity generating projects in Laos

• Earnings growth 2013: 29% • P/E 2012: 10.2x, P/E 2013: 8.4x • Dividend yield: 4.6%, PBV: 1.4x

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Population 151.8 m

5 Year Average GDP Growth 6.2%

Population of working age 90m

• Growing middle-class with a young demographics

• Increasing urbanization • The SFC has withdrawn 10% capital gain tax

for foreign institutional investors • Strategically located between India and

China. • Growing pharmaceutical, software and

garment industries

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CAMBODIA

• Abundant natural resources • Strategic location in dynamic region • Favourable demographics • Stable government with favourable

investment policies • Stock market established 2011 • First IPO completed in April 2012

Population 14.7 m


Main industries Garments, Tourism,

Agriculture

http://en.wikipedia.org/wiki/File:KhmerProvinces2.png

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Population 33.7m


Value of Oil Exports (USD bn) 92.69

• Continuous improvement in stability and security

• Strategic position, availability of labor and competitive cost base allow Iraq to export to the Middle Eastern Region and to the world.

• Growing middle class • Low corporate tax rates of 15% • Abundant proven oil reserves (in excess of

115 billion barrels)

IRAQ

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Population 6.4m


Agriculture as % of GDP 33%

• New-found mineral wealth is transforming the traditionally agricultural economy

• Increased global commodity prices are driving growth

• Young population – 48% under the age of 14 • Further reforms to the banking system are

expected • Government is promoting investment in SMEs

LAOS

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MONGOLIA

Population 2.8m


Least dense country in the world

1.8 persons/

km2

• The National Development and Innovation Committee (NDIC) projects GDP growth to top 20.6% in 2014

• Aggressive expansion due to foreign investment in large mining projects

• Banks anticipated to double assets to keep up with loan growth

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MYANMAR

Population 63.7m


Rich of natural resources 87% of export

earnings

• Strategically located between India and China • Resource rich • Far reaching political & economic reforms • Sanctions to be lifted • International support • Local stock exchange with 2 listed stocks only for

domestic investors • Exposure possible though stocks listed in

Singapore

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PAKISTAN

• Recent elections could lead to economic reform.

• Stable relations with India • Apparel and textiles accounted for nearly 60%

of exports • Transport infrastructure has been given

significant focus in the last two decades for improvement and modernization

Population 178.9m

High rates of inward remittances

Over US$1 bn/month in 2011

Population of working age

60 million

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Population 6.8m


Rich of natural resources 73% of export

earnings

• Port Moresby Stock Exchange with 22 stocks listed • Companies also listed overseas in Australia, Hong

Kong and London • Resource rich: natural gas, oil, copper, gold, silver • Cash crops: coffee, copra, tea, rubber, sugar • Fishery • Tourism underdeveloped

PAPUA NEW GUINEA

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SRI LANKA

Population 20.7m


Literacy Rate 91%

• South Asia’s most open economy (since 1977); Private sector driven (85% of GDP) and non-monopolistic

• Stable economy after end of civil conflict in 2009

• Spectacular tourism destination • Specialty agricultural exporter (tea, rubber,

spices etc.) • Future growth will be spurred by

reconstruction projects and real-estate development

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VIETNAM

Population 90.4m


Literacy Rate 93%

• A major exporter of agricultural products such as black pepper, rice and coffee

• Bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea to the east

• Pivoting towards a manufacturing oriented economy

• Potential for consumer companies due to increasing disposable income

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Bangladesh Bhutan Cambodia Iraq Laos

Nominal GDP (USD billion, 2012) 118 1.6 14.2 144 8.9

Population (million, 2012) 169 0.7 15 33 6.6

GDP per capita (USD, 2012) 700 2284 931 4287 1338

Key economic characteristics Growing middle

class and large

youth segment

Based on agriculture,

forestry, tourism and the

sale of hydroelectric

power to India

Abundant natural

resources

Abundant oil

resources and

growing middle

class

Abundant natural

resources

Government style Unitary

parliamentary

democracy

Constitutional

monarchy

Constitutional monarchy.

The head of

Government is the

longest serving leader in

SE Asia

Democratic

parliamentary

federal republic

Single party socialist

republic

Primary stock exchange Dhaka Stock

Exchange

Royal Securities

Exchange of Bhutan

Cambodia Securities

Exchange

Iraq Stock

Exchange

Lao Securities

Exchange

Index DSE General

Index

n/a CSX Composite Index ISX General Index LSX Composite Index

Foreigners allowed? Yes No Yes Yes Yes

How many stocks are listed? 286 20 1 84 2

Year established 1954 1993 2011 2004 2011

Market cap (USD billion) 30.2 0.2 0.13 5 1.049

Average daily turnover (USD million)

20 0.05 0.1 5 0.1

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Maldives Mongolia Myanmar Nepal Pakistan

Nominal GDP (USD billion, 2012) 2 6 54 18 233

Population (million, 2012) 0.3 3 65 28 179

GDP per capita (USD, 2012) 6230 2267 908 623 1372

Key Economic Characteristics

Principal activities

involve tourism, fishing

and shipping

New-found mineral

wealth is

transforming the

traditionally

agricultural economy

Lack of infrastructure

and and updated

financial and banking

system

Industry mainly

involves the

processing of

agricultural

products

Workforce is 60

million people strong;

endowed with natural

gas and oil

Government style Presidential republic,

with the President as

head of government and

head of state

Considerable power

remains in the

parliament

A presidential republic

with a bicameral

legislature

A framework of a

republic with a

multi-party system

Democratic

parliamentary federal

republic

Primary stock exchange Maldives Stock

Exchange

Mongolian Stock

Exchange

Myanmar Securities

Exchange Centre

Nepal Stock

Exchange

Karachi Stock

Exchange

Index Maldives Stock

Exchange Index MSE Top-20 n/a NEPSE Index KSE 100 Index

Foreigners allowed? No Yes No No Yes

How many stocks are listed? 6 336 2 322 639

Year established 2008 1991 1996 1992 1947

Market cap (USD billion) 0.5 1.3 n/a 4.8 42.5

Average daily turnover (USD million) 0.001 0.2 0.001 0.5 50

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Papua New Guinea Sri Lanka Thailand Vietnam

Nominal GDP (USD billion, 2012) 15.3 65 377 135

Population (million, 2012) 6.8 20 64 90

GDP per capita (USD, 2012) 2255 3138 5850 1498

Key economic characteristics Mineral deposits, including oil,

copper, and gold, account for

72% of export earnings

Tourism and

ICT/services have

emerged as important

economic activities

Heavily export-dependent

economy, with exports

accounting for more than two-

thirds of GDP

Agriculture's share of

GDP declined from 32%

in 1990 to 17% in 2009;

manufacturing is

increasing

Government style Constitutional monarchy with

parliamentary democracy,

relatively unstable

The two main political

parties are both

committed to free

market principles

Constitutional monarchy under

a parliamentary democratic

system

A one-party communist

state

Primary stock exchange Port Moresby Stock Exchange Colombo Stock

Exchange

Stock Exchange of Thailand Ho Chi Minh Stock

Exchange / Hanoi Stock

Exchange

Index KSI ASPI SET Index VN Index

Foreigners allowed? Yes Yes Yes Yes

How many stocks are listed? 19 281 541 704

Year established 1999 1985 1975 2000

Market cap (USD billion) 51 17.7 280 41

Average daily turnover (USD million) 0.1 21 700 48

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Investment Manager: Asia Frontier Capital Ltd., Cayman Islands

Investment Advisor: Asia Frontier Investments Ltd., Hong Kong

Fund Base Currencies: USD, EUR, CHF

Subscription Frequency: Monthly, 5 business days before end of month

Redemption: Monthly:

- 90 days prior notice for class A shares

- 180 days prior notice for class B shares

Management Fee: 1.8% p.a. of NAV for class A shares

1.5% p.a. of NAV for class B shares

Performance Fee: 10% NAV appreciation above 3 month USD-LIBOR +2% and high water mark for class A shares

8% NAV appreciation above 3 month USD-LIBOR +2% and high water mark for class B shares

Initial Minimum Investment: USD 100,000 for USD shares

EUR 80,000 for EUR shares

CHF 100,000 for CHF shares

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Subsequent Minimum Subscription: USD 10,000 for USD shares

Initial Subscription Price: EUR 10,000 for EUR shares


Initial Subscription Price: USD 1,000 for USD shares

EUR 1,000 for EUR shares


Subsequent Subscription Price: NAV

Country/Region Focus: Asia Frontier Markets

Initial Launch Date: 30 March 2012

Valuation Day: Last day of each calendar month

Main Custodian Bank: Deutsche Bank, Singapore

Auditor: KPMG, Cayman Islands

Administrator: Amicorp Fund Services Asia Pte Ltd., Singapore

Legal Advisor: Cayman Islands: Ogier, Hong Kong

US: Bingham McCutchen LLP, Boston

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Thomas Hugger, Fund Manager, Hong Kong Email: [email protected] Tel: +852 3904 1015, Fax+852 3904 1017 Website: www.asiafrontiercapital.com

mailto:[email protected]

http://www.asiafrontiercapital.com/

54

This Presentation is presented solely for purposes of discussion to assist prospective investors in determining whether they have a preliminary interest in the investment opportunity described

herein. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy, any security or other interest in AFC Asia Frontier Fund, AFC Umbrella Fund or

any other fund related thereto (the “Fund”). Offers and sales of interests in the Fund will not be registered under the laws of any jurisdiction and will be made solely to qualified investors under all

applicable laws. Potential investors must read the entire Offering Memorandum delivered by the Fund and the disclosure in this Subscription Agreement. Nothing contained herein shall be deemed

to be binding against, or to create any obligations or commitment on the part of, any potential investor or the Asia Frontier Capital (the “Fund Sponsors”). The Fund Sponsors reserve the right, in

their sole and absolute discretion with or without notice, to alter the terms or conditions of this Presentation and the Fund and/or to alter or terminate the potential investment opportunity described

herein. Potential investors are not to construe this Presentation as investment, legal or tax advice. Prior to making any potential investment, potential investors should consult with their own legal,

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such potential investment opportunity.

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While the information contained herein has been obtained from various sources which the Fund Sponsors believe, but does not guarantee, to be reliable, the Fund Sponsors do not represent that

it is accurate or complete and it should not be relied upon as such. No person has been authorized to give any information or make any representation or warranty regarding the subject matter

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performance of the potential investment opportunity described herein. None of the Fund Sponsors, their agents, or their respective Representatives is under any obligation to correct any

inaccuracies or omissions in this Presentation. Each prospective investor will have the sole responsibility for verifying the accuracy of all information furnished in this Presentation and in any other

due diligence information furnished to a prospective investor, and each prospective investor shall have the sole responsibility for determining the value of the potential investment based on

assumptions said prospective investor believes to be reasonable. There shall be no recourse against the Fund Sponsors or any of their Representatives in the event of any errors or omissions in

the information furnished, the methodology used, the calculations of values or conclusions. Without limiting the generality of the foregoing, any historical information or information based on past

performance included herein is for informational purposes only, has inherent limitations and is not intended to be a representation, warranty or guarantee of future performance. All of the

information presented herein is subject to change without notice. Actual returns to potential investors may be lower than the figures shown herein. Projected performance data shown constitutes

“forward-looking information” which is based on numerous assumptions and is speculative in nature. Actual results may vary significantly from the values and rates of return projected herein. There

can no assurance that the Fund will realize its rate of return objectives or return of investors’ capital. Potential investors should have the financial ability and willingness to accept the risks (including

without limitation the risk of loss and lack of liquidity) characteristic of investments in entities such as the Fund.

AN INVESTMENT IN THE FUND WILL NOT BE APPROPRIATE FOR ALL INVESTORS. INTERESTS IN THE FUND WILL INVOLVE A HIGH DEGREE OF RISK AND ARE INTENDED FOR SALE

ONLY TO SOPHISTICATED INVESTORS WHO ARE CAPABLE OF UNDERSTANDING AND ASSUMING THE RISKS INVOLVED. INVESTORS MAY LOSE ALL OR SUBSTANTIALLY ALL OF

THEIR INVESTMENT.

THE INTERESTS IN THE FUND HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES

LAWS OF ANY US. STATE OR ANY NON-U.S. JURISDICTION, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF

THE SECURITIES ACT AND ANY SUCH APPLICABLE LAWS. INTERESTS IN THE FUND HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE US. SECURITIES AND EXCHANGE

COMMISSION OR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER RELEVANT JURISDICTION, NOR HAS ANY OTHER AUTHORITY OR COMMISSION

PASSED UPON THE ACCURACY OR ADEQUACY OF THIS MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

Economy & Finance

AFC Asia Frontier Fund