-annual report as at 30th june 2015 - east capital reports/english/east... · mathias pedersen...

Unaudited semi-annual report as at 30th June 2015

East Capital (Lux)

Société d'investissement à capital variable incorporated in Luxembourg R.C.S. Luxembourg B 121 268

For the following Sub-Funds of East Capital (Lux) no notifications for public distribution in the Federal Republic of Germany were submitted and shares in these Sub-Funds may NOT be publicly offered to investors within the scope of the German investment law. As a consequence, the following Sub-Funds are NOT available to investors in Germany: - East Capital (Lux) - Baltic Fund - East Capital (Lux) - Balkan Fund - East Capital (Lux) - Turkish Fund

No subscription can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of the current prospectus supplemented by the latest annual report and the most recent semi-annual report, if published thereafter.

Contents

East Capital (Lux) 1

Organisation .................................................................................................................................................... 2

Combined statement of net assets .................................................................................................................... 4

East Capital (Lux) - Russian Fund .................................................................................................................... 5 Management report .......................................................................................................................................................................... 5 Statement of net assets ..................................................................................................................................................................... 6 Statistical information .......................................................................................................................................................................7 Statement of investments and other net assets.............................................................................................................................. 10

East Capital (Lux) - Baltic Fund ....................................................................................................................... 13 Management report ......................................................................................................................................................................... 13 Statement of net assets .................................................................................................................................................................... 14 Statistical information ..................................................................................................................................................................... 15 Statement of investments and other net assets............................................................................................................................... 17

East Capital (Lux) - Balkan Fund ..................................................................................................................... 19 Management report ......................................................................................................................................................................... 19 Statement of net assets ................................................................................................................................................................... 20 Statistical information ..................................................................................................................................................................... 21 Statement of investments and other net assets.............................................................................................................................. 23

East Capital (Lux) - Turkish Fund ................................................................................................................... 25 Management report ........................................................................................................................................................................ 25 Statement of net assets ................................................................................................................................................................... 26 Statistical information .................................................................................................................................................................... 27 Statement of investments and other net assets.............................................................................................................................. 30

East Capital (Lux) - Eastern European Fund ................................................................................................... 32 Management report ........................................................................................................................................................................ 32 Statement of net assets ................................................................................................................................................................... 33 Statistical information .................................................................................................................................................................... 34 Statement of investments and other net assets.............................................................................................................................. 37

East Capital (Lux) - Emerging Asia Fund ........................................................................................................ 40 Management report ........................................................................................................................................................................ 40 Statement of net assets .................................................................................................................................................................... 41 Statistical information .................................................................................................................................................................... 42 Statement of investments and other net assets.............................................................................................................................. 44

East Capital (Lux) - China Fund ...................................................................................................................... 46 Management report ........................................................................................................................................................................ 46 Statement of net assets ................................................................................................................................................................... 47 Statistical information .................................................................................................................................................................... 48 Statement of investments and other net assets.............................................................................................................................. 49

East Capital (Lux) - Frontier Markets Fund ..................................................................................................... 51 Management report ......................................................................................................................................................................... 51 Statement of net assets ................................................................................................................................................................... 52 Statistical information .................................................................................................................................................................... 53 Statement of investments and other net assets.............................................................................................................................. 56

Notes to the financial statements.................................................................................................................... 59

Additional information for investors in the Federal Republic of Germany...................................................... 65

Organisation


Registered Office 11, rue Sainte-Zithe L-2763 Luxembourg Board of Directors Chairman Peter Elam Håkansson Chairman and Chief Investment Officer East Capital Holding AB, Stockholm Directors Paul Carr Chief Executive Officer East Capital Asset Management S.A., Luxembourg Louise Hedberg Head of Corporate Governance East Capital International AB, Stockholm Albin Rosengren Partner and Head of Sales East Capital AB, Stockholm Jérôme Wigny Partner Elvinger, Hoss & Prussen, Luxembourg Management Company East Capital Asset Management S.A. 11, rue Sainte-Zithe L-2763 Luxembourg Board of Directors Chairman of the Management Company Peter Elam Håkansson Chairman and Chief Investment Officer East Capital Holding AB, Stockholm Directors Mathias Pedersen (until 4th June 2015) Chief Financial Officer East Capital AB, Stockholm Albin Rosengren Partner and Head of Sales East Capital AB, Stockholm Johan Wigh Chief Operating Officer and Deputy Chief Executive Officer East Capital AB, Stockholm Conducting persons Paul Carr of the Management Company Chief Executive Officer East Capital Asset Management S.A., Luxembourg Magnus Lekander Non-resident CO Tim Ohlin (since 6th March 2015) Risk Manager East Capital Asset Management S.A., Luxembourg Yves Wagner (until 5th March 2015) Director and Co-Founder MDO Services, S.A., Luxembourg

Organisation (continued)


Custodian and Paying Agent Skandinaviska Enskilda Banken S.A. in Luxembourg 4, rue Peternelchen L-2370 Howald Central Administration Agent SEB Fund Services S.A. 4, rue Peternelchen L-2370 Howald Administration Agent, Registrar European Fund Administration S.A. and Transfer Agent 2, rue d'Alsace L-1017 Luxembourg Investment Manager East Capital AB, Stockholm Kungsgatan, 33 Box 1364 SE-111 93 Stockholm Cabinet de révision agréé KPMG Luxembourg, Société coopérative 39, avenue John F. Kennedy L-1855 Luxembourg Legal Advisers Elvinger, Hoss & Prussen 2, place Winston Churchill L-1340 Luxembourg

Combined statement of net assets (in EUR) as at 30th June 2015

The accompanying notes are an integral part of these financial statements.


Assets Securities portfolio at market value 1,043,752,811.67 Cash at banks 12,903,996.30 Formation expenses, net 91,273.63 Receivable on sales of securities 24,953,665.70 Receivable on treasury transactions 110,792.23 Receivable on issues of shares 1,186,671.37 Income receivable on portfolio 7,014,791.41 Interest receivable on bank accounts 4,184.40 Other receivables 465,027.89

Total assets 1,090,483,214.60

Liabilities Bank overdrafts 124,425.69 Payable on purchases of securities 584,835.77 Payable on treasury transactions 49,771.84 Payable on redemptions of shares 17,796,040.37 Interest payable on bank overdrafts 3,637.59 Expenses payable 1,187,831.80 Other liabilities 2,070,527.40

Total liabilities 21,817,070.46

Net assets at the end of the period 1,068,666,144.14

East Capital (Lux) - Russian Fund

Management report from 1st January 2015 to 30th June 2015


Management report The East Capital Russian Fund gained 28.5% during the first six months of 2015, while the index was up 30.2%. The net asset value was EUR 438m as of 30th June 2015, to be compared to EUR 368m as of 31st December 2014. Net outflow during the first 6 months amounted to EUR 30m. Market update The Russian market posted a strong recovery after a dramatic fall on the back of sanctions and a lower oil price last year. The market is the 6th best market in the world in 2015 so far. The Russian economy has however taken a hit, and it lost 2.2% in the first quarter. This loss has been smaller than expected, and the full year GDP drop is likely to come in at around 2.5%. It is also the first time since 2008 that Russian consumers have seen a decline in real wages leading us to question our consumer exposures. Overall in the consumer space we are observing a very large spread between sectors, and between companies within certain sectors. In general, companies with a strong business model, management and typically low leverage have been the winners. These companies have been able to take market share and keep growing. Companies with leverage have been suffering from high interest rates - lending rates were around 25% at the beginning of the year. One of our largest holdings, food retailer Magnit, showed a sales growth of 33.1% in the first quarter, compared to OKEY (which we don’t own) reporting only 7.1% growth. The fund’s development and changes during the period We made some significant changes at the beginning of the year and our key bets are now typically leaders in their respective sectors with good growth, despite weak demand. We also feel confident that market consolidation will lead to the long-term outperformance of such companies. The largest attribution to the fund year-to-date was from M.Video, the market leader in consumer electronics and white goods. The stock gained 81.6% during the period and is now trading at 2.6 EV/EBITDA for 2015. Another example is Aeroflot, which grew the number of passengers by 14.9% year-to-date, implying an increase of market share to 40%, compared to 33% by the beginning of the year. The company, in many ways comparable to Turkish Airlines, is trading at 1.7x 2016 earnings. Sistema, one of the largest conglomerates in Russia, had a very rough 2014, but the stock is now one of the best performing, up 95.5% year-to-date. Despite a lot of very well performing stocks, we still underperformed the index due to some large losses in the energy space. Kazmunaigaz, the largest onshore oil producer in Kazakhstan, lost 20.1%, thereby erasing most of our positive alpha. We expected, and worked for, a bid for the company - but this did not materialise. We expect the second half of the year to be dominated by geopolitical discussions; whether Minsk-II will be implemented, the risk of an escalation in the conflict in Eastern Ukraine, and finally when sanctions on Russia can be lifted. Our base case is that sanctions from the EU will be partially lifted by 31st January 2016. This will obviously be positive for investor attitude, economy and stock market, and our overall exposure is expected to outperform in such a scenario.

Fund facts

Investment manager

East Capital AB

Type UCITS

Launch date Class A (EUR & USD) 31.01.2007

Class A (SEK) 01.10.2013

Class C (EUR) 09.02.2007

Class C (USD) 11.05.2007

Class R (EUR) 18.12.2012

Quotation Daily

Benchmark RTS Index until 30.06.2010, MSCI Russia Total Return Index from 01.07.2010


Statement of net assets (in EUR) as at 30th June 2015



Assets Securities portfolio at market value 429,934,643.35 Cash at banks 2,494,614.62 Receivable on sales of securities 7,208,999.12 Receivable on treasury transactions 38,315.41 Receivable on issues of shares 152,575.53 Income receivable on portfolio 2,790,654.28 Interest receivable on bank accounts 1,206.21 Other receivables 568.93

Total assets 442,621,577.45

Liabilities Payable on purchases of securities 50,526.26 Payable on redemptions of shares 1,918,211.61 Interest payable on bank overdrafts 1.63 Expenses payable 488,352.04 Other liabilities 1,623,507.45


Net assets at the end of the period 438,540,978.46


Statistical information (in EUR) as at 30th June 2015

Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. * Performance of the share class calculated from 1st October 2013 (initial transfer of assets in kind from the Feeder UCITS into the Master UCITS in exchange for fund shares in the A (SEK) Class of the Master UCITS as at 1st October 2013) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 438,540,978.46 - as at 31.12.2014 368,075,598.29 - as at 31.12.2013 1,007,199,197.58

Number of Class A Shares outstanding

- outstanding at the beginning of the period 460,316.719 - issued 154,537.222 - redeemed -160,504.970 - outstanding at the end of the period 454,348.971

Net asset value per Class A Share - as at 30.06.2015 52.4023 - as at 31.12.2014 41.0478 - as at 31.12.2013 78.9535

Performance of Class A Shares (in %) - as at 30.06.2015 28.37 - as at 31.12.2014 -48.27 - as at 31.12.2013 -0.93 - as at 31.12.2012 11.90

Performance of MSCI Russia Total Return Index (in EUR) (in %) - as at 30.06.2015 30.23 - as at 31.12.2014 -35.13 - as at 31.12.2013 -3.68 - as at 31.12.2012 11.80

Number of Class A (SEK) Shares outstanding

- outstanding at the beginning of the period 4,330,572.078 - issued 1,004,157.531 - redeemed -1,363,754.129 - outstanding at the end of the period 3,970,975.480

Net asset value per Class A (SEK) Share - as at 30.06.2015 SEK 838.2621 - as at 31.12.2014 SEK 673.0950 - as at 31.12.2013 SEK 1,211.5113

Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 25.43 - as at 31.12.2014 -45.00 - as at 31.12.2013 * 6.04

Performance of MSCI Russia Total Return Index (in SEK) (in %) - as at 30.06.2015 27.15 - as at 31.12.2014 -30.95 - as at 31.12.2013 * 0.23


Statistical information (in EUR) (continued) as at 30th June 2015

Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Number of Class A (USD) Shares outstanding


Net asset value per Class A (USD) Share - as at 30.06.2015 USD 44.6618 - as at 31.12.2014 USD 38.0343 - as at 31.12.2013 USD 83.2615

Performance of Class A (USD) Shares (in %) - as at 30.06.2015 18.02 - as at 31.12.2014 -54.33 - as at 31.12.2013 3.33 - as at 31.12.2012 14.00

Performance of MSCI Russia Total Return Index (in USD) (in %) - as at 30.06.2015 19.72 - as at 31.12.2014 -42.76 - as at 31.12.2013 0.45 - as at 31.12.2012 14.00

Number of Class C Shares outstanding


Net asset value per Class C Share - as at 30.06.2015 52.9424 - as at 31.12.2014 41.3393 - as at 31.12.2013 79.0144

Performance of Class C Shares (in %) - as at 30.06.2015 28.78 - as at 31.12.2014 -47.94 - as at 31.12.2013 -0.37 - as at 31.12.2012 12.50

Performance of MSCI Russia Total Return Index (in EUR) (in %) - as at 30.06.2015 30.23 - as at 31.12.2014 -35.13 - as at 31.12.2013 -3.68 - as at 31.12.2012 11.80






Number of Class C (USD) Shares outstanding


Net asset value per Class C (USD) Share - as at 30.06.2015 USD 44.4647 - as at 31.12.2014 USD 37.7475 - as at 31.12.2013 USD 82.1069

Performance of Class C (USD) Shares (in %) - as at 30.06.2015 18.39 - as at 31.12.2014 -54.04 - as at 31.12.2013 3.92 - as at 31.12.2012 14.60

Performance of MSCI Russia Total Return Index (in USD) (in %) - as at 30.06.2015 19.72 - as at 31.12.2014 -42.76 - as at 31.12.2013 0.45 - as at 31.12.2012 14.00

Number of Class R Shares outstanding

- outstanding at the beginning of the period 904,950.162 - issued 365,389.531 - redeemed -235,389.537 - outstanding at the end of the period 1,034,950.156

Net asset value per Class R Share - as at 30.06.2015 6.8176 - as at 31.12.2014 5.3272 - as at 31.12.2013 10.1960

Performance of Class R Shares (in %) - as at 30.06.2015 28.69 - as at 31.12.2014 -48.01 - as at 31.12.2013 -0.06 - as at 31.12.2012 1.90

Performance of MSCI Russia Total Return Index (in EUR) (in %)

- as at 30.06.2015 30.23 - as at 31.12.2014 -35.13 - as at 31.12.2013 -3.68 - as at 31.12.2012 11.80


Statement of investments and other net assets (in EUR) as at 30th June 2015



Currency Number / nominal value

Description Market value % of total net

assets

Investments in securities

Transferable securities admitted to an official stock exchange listing

Shares

Capital goods

USD 5,540,510 Etalon Group Ltd GDR repr 1 Shares Reg S 9,205,984.82 2.10

Energy

USD 442,300 Eurasia Drilling Co Ltd GDR Repr 1 6,542,734.87 1.49 USD 231,672 Gazprom Neft OSJC ADR Repr 5 Shs 2,507,317.77 0.57 USD 8,400,799 Gazprom OAO spons ADR repr 2 Shares 38,857,656.59 8.86 USD 294,724 IG Seismic Serv Ltd GDR repr 0.05 Shs Reg S 2,514,709.90 0.57 USD 851,297 KazMunaiGas Explor Product JSC GDR repr Shares Reg 7,569,463.18 1.73 USD 92,469 NovaTek OAO spons GDR repr 10 Shares 8,454,593.32 1.93 USD 904,290 Oil Co Lukoil OJSC spons ADR repr 1 Share 35,740,328.23 8.15

102,186,803.86 23.30

Food retailing, drugstores and pharmacies

USD 354,000 Lenta Ltd spons GDR repr 1/5 Shs Reg Shares 2,368,690.50 0.54 USD 424,278 X5 Retail Group NV spons GDR repr 1/4 Reg S 6,344,735.67 1.45

8,713,426.17 1.99

Food, beverage and tobacco

USD 529,556 MHP SA GDR repr 1 Share Reg S 4,803,768.28 1.10

Investment companies

SEK 118,148 East Capital Explorer AB 689,725.20 0.16

Materials

GBP 1,779,358 Evraz PLC 3,095,892.43 0.71 USD 4,275,147 LSR Group PJSC GDR repr 1 Share Reg S 7,756,239.39 1.77 USD 10,255,755 Mechel OJSC spons ADR repr 0.5 Pfd Shares 3,592,369.72 0.82 USD 376,007 Novolipetsk Steel (NLMK) GDR repr 10 Shares 4,491,551.19 1.02 GBP 241,933 Polymetal International PLC 1,771,559.29 0.40 USD 329,756 Severstal PAO spons GDR repr 1 Share Ser Oct 06 3,133,481.66 0.71 USD 565,100 Trubnaya Metallurg Kompany OAO pons GDR Reg repr 4

Shares 2,182,441.17 0.50

26,023,534.85 5.93

Telecommunication services

USD 1,118,804 JSFC Sistema JSC spons GDR repr 20 Reg Shares 8,892,954.37 2.03 USD 1,498,387 Kcell JSC Spons GDR repr 1 Shs Reg S 11,681,335.69 2.66

20,574,290.06 4.69

Total shares 172,197,533.24 39.27

Transferable securities dealt in on another regulated market

Shares

Automobiles and components

USD 1,604,509 Sollers JSC 11,516,293.31 2.63

Banks

USD 26,820,393 Bank St Petersburg PJSC 17,476,603.13 3.98 USD 26,334,357 Sberbank of Russia OJSC 30,730,654.86 7.01 USD 12,503,032 Sberbank of Russia OJSC Pref 9,744,348.15 2.22

57,951,606.14 13.21


Statement of investments and other net assets (in EUR) (continued) as at 30th June 2015





assets

Capital goods

USD 3,779,636 Mostotrest PJSC 5,456,115.72 1.24

Diversified financial services

USD 5,511,039 Moscow Exchange Micex-Rts Pjsc 6,206,172.87 1.41

Energy

USD 215,064 Bashneft PJSOC Pref 4,956,903.86 1.13 USD 5,236,445 OAO Tatneft Pref 13,184,085.03 3.01 USD 29,619,042 Surgutneftegaz OJSC Pref 20,375,139.57 4.65

38,516,128.46 8.79


USD 998,222 Dixy Group PJSC 5,272,893.35 1.20 USD 212,629 Magnit PJSC 39,093,071.82 8.91

44,365,965.17 10.11

Materials

USD 136,998 Acron OJSC 4,929,743.75 1.12 USD 11,027,700 Alrosa OJSC 11,205,623.93 2.56 USD 706,947 LSR Group PJSC 6,522,189.78 1.49

22,657,557.46 5.17

Retailing

USD 5,466,114 M Video Co JSC 16,601,202.87 3.79


USD 13,570,214 JSFC Sistema JSC 4,342,490.42 0.99 USD 4,495,518 Mobile Telesystems OJSC 17,626,871.98 4.02

21,969,362.40 5.01

Transportation

USD 17,215,946 Aeroflot Russian Airlines JSC 10,618,405.53 2.42 USD 93,982,258 Far East Shipping Co 4,623,346.35 1.05

15,241,751.88 3.47

Utilities

USD 72,661,770 E.ON Russia OJSC 3,560,446.31 0.81 USD 1,572,616,494 IDG Co Center and Volga OJSC 1,851,574.42 0.42 USD 2,907,774,500 Inte Dist Grid Co of Volga JSC 1,170,265.63 0.27 USD 168,379,392 Rosseti JSC 1,303,586.78 0.30

7,885,873.14 1.80

Total shares 248,368,029.42 56.63

Other transferable securities

Shares

Banks

UAH 85,059,842 Raiffeisen Bk Aval JSC 325,439.56 0.07 EUR 1,801,100 Reverta SA 0.00 0.00

325,439.56 0.07

Energy

USD 365,119 Integra Group spons GDR repr 2 Shares A Reg S 6,558,631.22 1.50 Total shares 6,884,070.78 1.57







assets

Closed-ended investment funds

Investment funds

EUR 37,931 East Capital Fin Investors AB Cap 1,517,240.00 0.35 Total closed-ended investment funds 1,517,240.00 0.35

Open-ended investment funds

Investment funds (UCI)

Investment funds

USD 512,078.2329 East Capital Bering Ukraine Fd Red P Shares R Master Cap 967,769.91 0.22 Total investment funds (UCI) 967,769.91 0.22

Total investments in securities 429,934,643.35 98.04

Cash at banks 2,494,614.62 0.57

Other net assets/(liabilities) 6,111,720.49 1.39

Total 438,540,978.46 100.00

East Capital (Lux) - Baltic Fund



Management report The East Capital Baltic Fund posted a year-to-date gain of 5.2%, compared to the Baltic index's 10% return and Polish equities gaining 3.9%. The net asset value was EUR 57m as of 30th June 2015, to be compared to EUR 62m as of 31st December 2014. Net outflow during the first 6 months amounted to EUR 8m. Market update Russian related geopolitical risks continued dampening confidence in the market, although we argue the actual negative effect on the economy will be short-lived and sector specific. We have met the largest Baltic holdings, and we see a pick-up in domestic demand in Estonia, whereas Lithuania is experiencing a temporary slow-down in business and consumer confidence. It is understandable seeing that nominal Baltic exports to Russia have declined by more than 30%, with dairies, logistics, and tourism suffering the most. At the same time, with a macro pick up in Europe, collapsing Russian exports are almost entirely redirected to other markets, so that the real exports of all three Baltic states actually marginally increased in 1Q 2015. Therefore, we believe that there will be a pick-up in the macro indicators in H2, with 2015 GDP growth being around 2%, and returning to 3% and above in 2016. The fund’s development and changes during the period. Our Baltic holdings’ aggregated EBITDA grew over 30% in 1Q 2015. One of the best attributors year-to-date was our large bet in Estonian media company, Ekspress Group, up 22%. During our meeting with the company, the main owner confirmed that they are actively looking to continue to grow in the Baltic media market, both geographically and in new media forms and they also announced dividends yielding 3.2%. Two of our large Lithuanian bets - Linas Agro and City Service - were down year-to-date by 0.7% and 2.7% respectively. Linas Agro, an agriculture trader, is suffering from the unfavourable soft commodity prices globally; however, the company is trading at 5x EV/EBITDA vs. international peers at 7-8x. City Service is still facing challenges to revenue growth due to the integration of new markets. However, the company is valued at a very attractive 4.8x EV/EBITDA. Polish holdings were down by 2.8% year-to-date, with a negative contribution of over 1.1% on the fund’s NAV, on the back of increasing political risks. For the remainder of 2015, we expect Baltic macro and company results to continue to be driven by domestic demand. However, investment growth, a new wave of EU funds and a recovery in export markets should contribute more in the coming years. Furthermore, the sentiment on the European and Emerging markets will continue setting the tone of the market amid these turbulent times, whereas a final resolution of the Greek crisis or progress in the Russia/Ukraine conflict could also unlock a small rally.

Fund facts

Investment manager East Capital AB

Type UCITS

Launch date Class A (EUR) 10.04.2014

Class A (SEK) 01.10.2013

Class C (EUR) 03.02.2014

Class R (EUR) 01.10.2013

Quotation Daily

Benchmark OMX Baltic Capped Benchmark Index





Assets Securities portfolio at market value 56,407,371.58 Cash at banks 1,095,617.63 Receivable on treasury transactions 89.96 Receivable on issues of shares 1,664.89 Income receivable on portfolio 224,782.27 Interest receivable on bank accounts 7.15 Other receivables 132.11


Liabilities Bank overdrafts 7.78 Payable on purchases of securities 93,379.79 Payable on redemptions of shares 83,240.49 Interest payable on bank overdrafts 39.40 Expenses payable 65,197.90

Total liabilities 241,865.36




Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. * Performance of the share class calculated from 1st October 2013 (initial transfer of assets in kind from the Feeder UCITS into the Master UCITS in exchange for fund shares in the A (SEK) Class of the Master UCITS as at 1st October 2013) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 ** Performance of the share class calculated from 3rd February 2014 respectively 10th April 2014 (initial subscription price) to 30th December 2014 (published NAV) and performance of the Benchmark based on the quotations as at 3rd February 2014 respectively 10th April 2014 and 30th December 2014 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 57,487,800.23 - as at 31.12.2014 62,411,938.11 - as at 31.12.2013 82,775,479.51


- outstanding at the beginning of the period 1,000.000 - issued 0.000 - redeemed 0.000 - outstanding at the end of the period 1,000.000

Net asset value per Class A Share - as at 30.06.2015 10.0607 - as at 31.12.2014 9.5897 - as at 31.12.2013 -

Performance of Class A Shares (in %) - as at 30.06.2015 5.12 - as at 31.12.2014 ** -4.27 - as at 31.12.2013 -

Performance of OMX Baltic Capped Benchmark Index (in EUR) (in %) - as at 30.06.2015 10.19 - as at 31.12.2014 ** -4.91 - as at 31.12.2013 -


- outstanding at the beginning of the period 11,400,743.981 - issued 312,972.750 - redeemed -1,702,088.583 - outstanding at the end of the period 10,011,628.148

Net asset value per Class A (SEK) Share - as at 30.06.2015 SEK 52.1164 - as at 31.12.2014 SEK 50.9220 - as at 31.12.2013 SEK 49.5227

Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 2.71 - as at 31.12.2014 2.28 - as at 31.12.2013 * -0.18

Performance of OMX Baltic Capped Benchmark Index (in SEK) (in %) - as at 30.06.2015 7.58 - as at 31.12.2014 1.66 - as at 31.12.2013 * 1.34



Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. ** Performance of the share class calculated from 3rd February 2014 respectively 10th April 2014 (initial subscription price) to 30th December 2014 (published NAV) and performance of the Benchmark based on the quotations as at 3rd February 2014 respectively 10th April 2014 and 30th December 2014 *** Performance of the share class calculated from 1st October 2013 (initial subscription price) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.





Net asset value per Class C Share - as at 30.06.2015 9.7801 - as at 31.12.2014 9.2927 - as at 31.12.2013 -

Performance of Class C Shares (in %) - as at 30.06.2015 5.45 - as at 31.12.2014 ** -7.24 - as at 31.12.2013 -

Performance of OMX Baltic Capped Benchmark Index (in EUR) (in %) - as at 30.06.2015 10.19 - as at 31.12.2014 ** -8.63 - as at 31.12.2013 -


- outstanding at the beginning of the period 117,884.970 - issued 783.474 - redeemed -16,895.065 - outstanding at the end of the period 101,773.379


Performance of Class R Shares (in %) - as at 30.06.2015 5.38 - as at 31.12.2014 -3.33 - as at 31.12.2013 *** -2.48

Performance of OMX Baltic Capped Benchmark Index (in EUR) (in %)

- as at 30.06.2015 10.19 - as at 31.12.2014 -4.38 - as at 31.12.2013 *** -1.62







assets



Shares

Banks

EUR 10,449,604 Bank of Siauliai AB 3,019,935.56 5.25 PLN 13,490 Bank Polska Kasa Opieki SA 579,099.74 1.01 PLN 13,980 Bank Zachodni WBK SA 1,138,071.12 1.98 PLN 73,980 PKO Bank Polski SA 549,216.39 0.96 SEK 232,000 Skandinaviska Enskilda Banken A 2,660,928.15 4.63 SEK 64,500 Swedbank AB A 1,349,058.76 2.35

9,296,309.72 16.18

Capital goods

EUR 454,389 Riga Shipyard 123,139.42 0.21

Commercial services and supplies

EUR 1,734,639 City Serv AB 2,810,115.18 4.89 EUR 1,758,593 Ekspress Grupp AS 2,374,100.55 4.13

5,184,215.73 9.02

Consumer durables and apparel

EUR 3,407,305 Baltika AS 1,260,702.85 2.19 PLN 21,800 CCC SA 904,889.01 1.57 EUR 527,194 Utenos Trikotazas AB 235,128.52 0.41 EUR 64,975 Vilniaus Baldai AB 1,013,610.00 1.76

3,414,330.38 5.93

Energy

PLN 20,000 Polski Koncern Naftowy Orle SA 352,251.16 0.61


PLN 10,700 Eurocash SA 95,337.54 0.17


EUR 8,009,146 Linas Agro Group AB 5,486,265.01 9.54 EUR 3,442,719 Pieno Zvaigzdes AB 5,301,787.26 9.22 EUR 1,778,605 Rokiskio Suris AB 2,561,191.20 4.45 EUR 2,233,476 Vilniaus Degtine AB 725,879.70 1.26 EUR 3,413,962 Zemaitijos Pienas AB 2,287,354.54 3.98

16,362,477.71 28.45

Hotels, restaurants and leisure

EUR 1,375,487 Olympic Entertainment Group AS 2,544,650.95 4.43

Insurance

PLN 10,443 Powszechny Zaklad Ubezpie SA 1,077,833.20 1.87

Materials

EUR 1,501,986 Grigiskes AB 1,757,323.62 3.06 EUR 269,122 Merko Ehitus 2,260,624.80 3.93

4,017,948.42 6.99

Real estate

EUR 22,732 Arco Vara AS 27,051.08 0.05







assets

Retailing

EUR 1,923,997 Apranga AB 5,214,031.87 9.07 EUR 346,916 Tallinna Kaubamaja Grupp AS 2,088,434.32 3.63

7,302,466.19 12.70


SEK 376,100 TeliaSonera AB 1,986,330.17 3.46

Transportation

EUR 2,924,752 Tallink Group AS 2,126,294.70 3.70

Utilities

PLN 443,129 Inter RAO Lietuva AB 1,670,232.11 2.91 EUR 28,487 Tallinna Vesi AS 373,179.70 0.65

2,043,411.81 3.56

Total shares 55,954,048.18 97.33


Shares

Capital goods

EUR 191,308 Nordecon AS 200,873.40 0.35 Total shares 200,873.40 0.35



Real estate

EUR 918 East Capital Baltic Pro Inv AB Units 252,450.00 0.44 Total closed-ended investment funds 252,450.00 0.44


Cash at banks 1,095,617.63 1.91

Bank overdrafts -7.78 0.00

Other net assets/(liabilities) -15,181.20 -0.03

Total 57,487,800.23 100.00

East Capital (Lux) - Balkan Fund



Management report The East Capital Balkan Fund was down 2.3% in the first half of 2015, well ahead of the benchmark index, which lost 5.5%. The net asset value was EUR 88m as of 30th June 2015, to be compared to EUR 102m as of 31st December 2014. Net outflows during the first 6 months amounted to EUR 12m. Market update Greece has been firmly in the spotlight since the beginning of the year, with the market down 3.5% until it was closed, together with the banks, after Prime Minister Tsipras unexpectedly called for a referendum on the new bailout terms. The positive 1.6% attribution would have likely been larger if the market had been open, as we consistently keep a large underweight position in Greece, with a current weight of 6.4%, versus 17% in the benchmark. Unfortunately, events unfolded along the line that we feared most. As the crisis deepened deposit outflows accelerated to EUR 40bn and spurred a liquidity crisis, while the economy is at a standstill and our early projection of negative GDP growth in 2015 is becoming a consensus. Further developments are difficult to predict as the new program needs to be implemented. The funds development and changes during the period Crucially for our investors, the East Capital Balkan Fund does not own any shares in Greek banks. Rather, we own four companies with little or no leverage that carry much lower risk than the market overall. Contagion risks for the rest of the Balkans are limited. The trade between the countries is limited, with most of the Balkan exports depending on developments in Germany. Financial links are more pronounced, with parts of the banking sectors in Bulgaria (26%), Romania and Serbia (around 15%) being under the control of subsidiaries of Greek banks. But we believe there are three key elements that should limit the impact on the respective economies. Firstly, the local central banks have been preparing for this event since 2012, performing substantial screenings of the domestic banking systems. Secondly, the population is protected by deposit insurance schemes and by having had enough time to move their deposits, and so no run on banks has been observed. Thirdly the Greek banks have been in a deleveraging mode for the last 5 years and as such, were not providing any liquidity to domestic economies, while the banking sectors as a whole are at a turning point, with lending marginally increasing. This should ultimately be positive for the banks in our portfolio, such as BRD in Romania or AIK Banka in Serbia. The core Balkan economies are entering a recovery cycle, with Q1 GDP numbers way ahead of expectations - in Romania, for example, the Q1 GDP growth was 4.3%. Underlying companies are performing well, while valuations overall remain undemanding. The Turkish market has been weak as well due to political volatility, which pushed Turkey to trade at more than a 20% discount on global emerging markets. Read more about this in the Turkish fund management report. As such, the East Capital Balkan Fund portfolio looks geared toward positive performance after the political dust hopefully settles in the upcoming months.

Fund facts


Type UCITS

Launch date Class A (EUR) 10.04.2014

Class A (SEK) 01.10.2013

Class C (EUR) 03.02.2014

Class R (EUR) 01.10.2013

Quotation Daily

Benchmark STOXX Balkan Total Market Index





Assets Securities portfolio at market value 83,769,560.22 Cash at banks 1,804,558.67 Receivable on sales of securities 828,634.31 Receivable on issues of shares 9,316.04 Income receivable on portfolio 1,634,119.31 Interest receivable on bank accounts 142.82 Other receivables 329,048.27


Liabilities Payable on treasury transactions 588.43 Payable on redemptions of shares 125,578.01 Interest payable on bank overdrafts 12.18 Expenses payable 97,171.51





Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. the last financial year. * Performance of the share class calculated from 1st October 2013 (initial transfer of assets in kind from the Feeder UCITS into the Master UCITS in exchange for fund shares in the A (SEK) Class of the Master UCITS as at 1st October 2013) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 ** Performance of the share class calculated from 3rd February 2014 respectively 10th April 2014 (initial subscription price) to 30th December 2014 (published NAV) and performance of the Benchmark based on the quotations as at 3rd February 2014 respectively 10th April 2014 and 30th December 2014 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 88,152,029.51 - as at 31.12.2014 102,277,537.83 - as at 31.12.2013 87,151,999.12


- outstanding at the beginning of the period 1,718,326.773 - issued 0.000 - redeemed -100,846.098 - outstanding at the end of the period 1,617,480.675

Net asset value per Class A Share - as at 30.06.2015 10.4571 - as at 31.12.2014 10.7614 - as at 31.12.2013 -

Performance of Class A Shares (in %) - as at 30.06.2015 -2.38 - as at 31.12.2014 ** 6.65 - as at 31.12.2013 -

Performance of STOXX Balkan Total Market Index (in EUR) (in %) - as at 30.06.2015 -5.53 - as at 31.12.2014 ** 0.67 - as at 31.12.2013 -




Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 -4.61 - as at 31.12.2014 22.45 - as at 31.12.2013 * 3.77

Performance of STOXX Balkan Total Market Index (in SEK) (in %) - as at 30.06.2015 -7.77 - as at 31.12.2014 16.04 - as at 31.12.2013 * -5.42



Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. ** Performance of the share class calculated from 3rd February 2014 respectively 10th April 2014 (initial subscription price) to 30th December 2014 (published NAV) and performance of the Benchmark based on the quotations as at 3rd February 2014 respectively 10th April 2014 and 30th December 2014 *** Performance of the share class calculated from 1st October 2013 (initial subscription price) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.




- outstanding at the beginning of the period 603,320.368 - issued 85,803.802 - redeemed 0.000 - outstanding at the end of the period 689,124.170

Net asset value per Class C Share - as at 30.06.2015 11.3548 - as at 31.12.2014 11.6482 - as at 31.12.2013 -

Performance of Class C Shares (in %) - as at 30.06.2015 -2.07 - as at 31.12.2014 ** 15.43 - as at 31.12.2013 -

Performance of STOXX Balkan Total Market Index (in EUR) (in %) - as at 30.06.2015 -5.53 - as at 31.12.2014 ** 16.91 - as at 31.12.2013 -




Performance of Class R Shares (in %) - as at 30.06.2015 -2.14 - as at 31.12.2014 15.76 - as at 31.12.2013 *** -0.36

Performance of STOXX Balkan Total Market Index (in EUR) (in %)

- as at 30.06.2015 -5.53 - as at 31.12.2014 9.04 - as at 31.12.2013 *** -8.19







assets



Shares

Austria

TRY 8,836 Do & Co AG 731,010.55 0.83 EUR 68,088 Erste Group Bank AG 1,734,541.80 1.97 EUR 165,183 Raiffeisen Bank Intl AG 2,155,638.15 2.44

4,621,190.50 5.24

Greece

EUR 344,287 Aegean Airlines SA 1,994,320.32 2.26 EUR 52,646 Folli Follie Group 1,166,394.24 1.32 EUR 761,534 Fourlis Holding SA Reg 2,007,106.63 2.28 EUR 239,441 Frigoglass SA Reg 453,189.98 0.51

5,621,011.17 6.37

Romania

USD 586,633 Fondul Proprietatea SA spons GDR repr 50 Shs Reg S 5,268,843.18 5.98

Slovenia

EUR 37,000 Luka Koper 925,370.00 1.05 EUR 21,018 Petrol Ljubljana d.d. 5,359,590.00 6.08 EUR 21,288 Pivovarna Lasko 517,298.40 0.59 EUR 488,211 Pozavarovalnica Sava d.d. 6,839,836.11 7.76 EUR 22,191 Telekom Slovenia dd 1,997,190.00 2.26 EUR 313,778 Zavarovalnica Triglav d.d. 7,685,992.11 8.72

23,325,276.62 26.46

Turkey

TRY 356,500 Akbank T.A.S. 925,405.80 1.05 TRY 798,964 Haci Omer Sabanci Holding AS 2,702,835.20 3.07 TRY 515,663 KOC Holding AS 2,141,700.01 2.43 TRY 248,331 Tofas Turk Otomobil Fabrikasi 1,522,134.43 1.73 TRY 618,738 Turk Hava Yollari AO 1,823,729.58 2.07 TRY 588,432 Turkiye Garanti Bankasi AS Reg 1,647,682.55 1.87 TRY 297,999 Turkiye Halk Bankasi AS 1,232,686.80 1.40 TRY 63,943 Turkiye Petrol Rafinerileri AS 1,454,232.22 1.65 TRY 603,840 Turkiye Vakiflar Bankasi Tao 871,706.19 0.99

14,322,112.78 16.26

Total shares 53,158,434.25 60.31


Shares

Croatia

HRK 36,225 Atlantic Grupa d.d. 4,145,340.98 4.70 HRK 27,366 Podravka DD 1,115,555.85 1.26

5,260,896.83 5.96

Romania

RON 996,210 BRD Gr SG Romanian Bk for Dev 2,401,045.51 2.72 RON 253,528 CNTEE Transelectrica SA 1,439,194.09 1.63 RON 15 Fondul Proprietatea SA 2.67 0.00 EUR 254,238 Gobalworth Real Estate Invs Ltd 1,557,207.75 1.77 RON 11,216 SNTGN Transgaz SA 644,468.74 0.73 RON 128,600 Ste Natl Gaze Natur Romgaz SA 1,046,581.58 1.19

7,088,500.34 8.04







assets

Serbia

RSD 145,038 Aerodrom Nikola Tesla AD 1,505,642.81 1.71 RSD 337,379 AIK Banka AD Nis 4,630,496.46 5.25 RSD 12,296 Alfa Plam ad Vranje 2,628,690.42 2.98 RSD 6,879 Cacanska Banka AD Cacak 429,152.99 0.49 RSD 370,593 Energoprojekt Hg a.d Beograd 3,443,308.63 3.91 RSD 245,106 Komercijalna Banka AD Beogra 4,075,607.03 4.62 RSD 281,268 Nis AD 1,548,830.46 1.76

18,261,728.80 20.72

Total shares 30,611,125.97 34.72


Shares

Serbia

RSD 750 PIK Cacak 0.00 0.00 RSD 44,189 Toza Markovic 0.00 0.00 RSD 11,809 Univerzal Hg 0.00 0.00 Total shares 0.00 0.00


Cash at banks 1,804,558.67 2.05


Total 88,152,029.51 100.00

East Capital (Lux) - Turkish Fund



Management report Following a highly volatile period, the Turkish market lost 5.7% in 1H 2015. The East Capital Turkish Fund, however, performed better than the overall market, with a decline of 5.4%. The net asset value was EUR 121m as of 30th June 2015, to be compared to EUR 156m as of 31st December 2014. Net outflows during the first 6 months amounted to EUR 23m. Market update Most of this negative performance can be attributed to currency weakness, as the lira depreciated by 5.5% against the euro. The market movements would be best described as a "zig-zag". The market was initially up, as low oil price and expectations of a subsequent decline in the current account deficit helped stocks to gain. A frequently asked question during early-year investor conferences was "what could go wrong?". However, it did not take long for an answer, as increasing political pressures on the central bank led to a combination of lira depreciation and a market decline. During this period, our most important move was to increase the weight of exporters, such as auto producers Tofas and Ford, and the refiner Tupras, due to our belief that the lira weakness would continue. All three stocks later outperformed the market. Following two months with a quick rise and fall, stocks rebounded in April-May, almost back to the January peaks. Banks were back in fashion as, at 2015e P/E of 7.5x, their discount to non-banks hovered around all-time highs of about 40% and as the 1Q results were about 5-7% better than expected with a 15% year-on-year EPS growth. However, the recovery did not last long as election uncertainties eventually led to another leg of decline. The fund’s development and changes during the period The star of 1H was catering and entertainment company Do&Co. The stock outperformed the market by 34% as its airline catering segment, serving mainly Turkish Airlines, continued to grow at a pace of 18%. Having been among the major shareholders since its IPO in 2010, we continue to like the company due to its competent management, good growth prospects and healthy valuation. Looking ahead, we have no doubt that the most important item on our agenda will be politics. Will there be a coalition government or early elections? What will be the implications on economic and foreign policies? While we do not foresee any major change, we believe that the answers will only come with time. Understanding the implications of the lira weakness will also be crucial. Overall, we are positioned for a relatively stable environment, where we expect banking valuations to modestly improve, exporters to continue posting good numbers and some of our small and mid-cap names to continue to have good domestic demand.

Fund facts


Type UCITS

Launch date 01.10.2013

Quotation Daily

Benchmark ISE 100 Total Return (net) Index





Assets Securities portfolio at market value 120,148,102.57 Cash at banks 3,088,774.08 Receivable on sales of securities 9,267,308.77 Receivable on issues of shares 137,128.77 Income receivable on portfolio 58,577.50 Interest receivable on bank accounts 2,277.85 Other receivables 205.91


Liabilities Payable on treasury transactions 35,021.43 Payable on redemptions of shares 11,317,782.10 Interest payable on bank overdrafts 472.62 Expenses payable 141,750.10





Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. * Performance of the share class calculated from 1st October 2013 (initial transfer of assets in kind from the Feeder UCITS into the Master UCITS in exchange for fund shares in the A (SEK) Class of the Master UCITS as at 1st October 2013) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 ** Performance of the share class calculated from 1st October 2013 (initial subscription price) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 121,207,349.20 - as at 31.12.2014 156,000,683.35 - as at 31.12.2013 131,252,849.42


- outstanding at the beginning of the period 2,216.273 - issued 0.000 - redeemed -466.273 - outstanding at the end of the period 1,750.000


Performance of Class A Shares (in %) - as at 30.06.2015 -5.43 - as at 31.12.2014 31.88 - as at 31.12.2013 ** -17.66

Performance of ISE 100 Total Return (net) Index (in EUR) (in %) - as at 30.06.2015 -5.74 - as at 31.12.2014 30.79 - as at 31.12.2013 ** -15.41




Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 -7.60 - as at 31.12.2014 40.22 - as at 31.12.2013 * -12.64

Performance of ISE 100 Total Return (net) Index (in SEK) (in %) - as at 30.06.2015 -7.97 - as at 31.12.2014 39.22 - as at 31.12.2013 * -14.83



Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. ** Performance of the share class calculated from 1st October 2013 (initial subscription price) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.






Performance of Class A (USD) Shares (in %) - as at 30.06.2015 -13.06 - as at 31.12.2014 16.43 - as at 31.12.2013 ** -16.04

Performance of ISE 100 Total Return (net) Index (in USD) (in %) - as at 30.06.2015 -13.35 - as at 31.12.2014 15.42 - as at 31.12.2013 ** -14.13




Performance of Class C Shares (in %) - as at 30.06.2015 -5.13 - as at 31.12.2014 32.74 - as at 31.12.2013 ** -17.53

Performance of ISE 100 Total Return (net) Index (in EUR) (in %) - as at 30.06.2015 -5.74 - as at 31.12.2014 30.79 - as at 31.12.2013 ** -15.41



Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. ** Performance of the share class calculated from 1st October 2013 (initial subscription price) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.






Performance of Class C (USD) Shares (in %) - as at 30.06.2015 -12.78 - as at 31.12.2014 20.16 - as at 31.12.2013 ** -15.91

Performance of ISE 100 Total Return (net) Index (in USD) (in %) - as at 30.06.2015 -13.35 - as at 31.12.2014 15.42 - as at 31.12.2013 ** -14.13




Performance of Class R Shares (in %) - as at 30.06.2015 -5.20 - as at 31.12.2014 32.54 - as at 31.12.2013 ** -17.56

Performance of ISE 100 Total Return (net) Index (in EUR) (in %)

- as at 30.06.2015 -5.74 - as at 31.12.2014 30.79 - as at 31.12.2013 ** -15.41







assets



Shares


TRY 280,599 Ford Otomotiv Sanayi AS 3,369,351.04 2.78 TRY 850,000 Kordsa Gl End Ipl Kor Be Sa Ti 1,258,381.07 1.04 TRY 771,556 Tofas Turk Otomobil Fabrikasi 4,729,220.07 3.90 TRY 0.569 Tumosan Motor Trackt Sanayi AS 1.31 0.00

9,356,953.49 7.72

Banks

TRY 2,045,452 Akbank T.A.S. 5,309,602.10 4.38 TRY 1,975,644 Albaraka Turk Katilim Banka AS 966,123.24 0.80 TRY 2,647,345 Turkiye Garanti Bankasi AS Reg 7,412,894.19 6.12 TRY 2,266,063 Turkiye Halk Bankasi AS 9,373,675.59 7.73 TRY 3,970,730 Turkiye Is Bankasi AS 7,501,022.06 6.19 TRY 5,580,911 Turkiye Sinai Kalkinma Bk AS 3,177,788.58 2.62 TRY 3,597,048 Turkiye Vakiflar Bankasi Tao 5,192,714.98 4.28 TRY 3,392,305 Yapi Kredi Bankasi AS 4,476,742.31 3.69

43,410,563.05 35.81


TRY 1,626,117 Turk Sise Cam 1,966,210.33 1.62


TRY 3,541,074 Haci Omer Sabanci Holding AS 11,979,187.38 9.88 TRY 1,467,372 KOC Holding AS 6,094,427.21 5.03

18,073,614.59 14.91

Energy

TRY 392,221 Turkiye Petrol Rafinerileri AS 8,920,138.52 7.36


TRY 247,383 Anadolu Efes Biracilik Malt Sa 2,005,193.09 1.66 TRY 74,700 Coca Cola Icecek Sanayi AS 1,115,902.99 0.92 TRY 414,319 Pinar Enteg Et ve Un Sanayi AS 1,347,488.48 1.11

4,468,584.56 3.69

Hotels, restaurants and leisure

TRY 49,259 Do & Co AG 4,075,243.15 3.36

Insurance

TRY 487,565 Anadolu Hayat Emeklilik AS 917,782.60 0.76 TRY 50,500 AvivaSA Emeklilik ve Hayat AS 789,912.96 0.65

1,707,695.56 1.41

Materials

TRY 307,165 Cimsa Cimento Sanayi Ve AS 1,579,250.74 1.30 TRY 1,597,999 Enka Insaat Ve Sanayi AS 2,729,717.23 2.25 TRY 4,651,561 Kardemir Kara Dem Sana Tica AS D 2,446,072.67 2.02 TRY 1,239,313 Trakya Cam Sanayii As 1,162,278.00 0.96

7,917,318.64 6.53

Retailing

TRY 240,313 Migros Ticaret AS 1,698,363.71 1.40







assets

Software and services

TRY 4,303,472 Bimeks Bilgi Isl Ve Dis Tic SA 3,026,977.96 2.50


TRY 952,000 Turk Telekomunikasyon AS 2,248,003.83 1.86 TRY 945,200 Turkcell Iletisim Hizmet 3,909,864.01 3.23

6,157,867.84 5.09

Transportation

TRY 1,879,588 Turk Hava Yollari AO 5,540,083.59 4.57 Total shares 116,319,614.99 95.97


Real estate funds

TRY 4,141,400 Emlak Konut Gayrim Yat Orta AS 3,828,487.58 3.16 Total closed-ended investment funds 3,828,487.58 3.16


Cash at banks 3,088,774.08 2.55

Other net assets/(liabilities) -2,029,527.45 -1.68

Total 121,207,349.20 100.00

East Capital (Lux) - Eastern European Fund



Management report The East Capital Eastern European Fund gained 13.1% in the first half of 2015, compared to a gain of 12.6% from the index. The net asset value was EUR 208m as of 30th June 2015, to be compared to EUR 252m as of 31st December 2014. Net outflows during the first 6 months amounted to EUR 74m. Market update There was a very large spread between markets; not surprisingly, the Ukrainian market fell 25.6%. But perhaps more unexpectedly, Hungary gained 31.5%. We added significant alpha in all but one of the five index countries. However, the smaller frontier markets underperformed the larger ones. The largest amount of alpha was added in the Polish market. It was our largest underweight due to potential problems in the utility and banking sectors. The banking sector has been hit by a series of problems, with the latest being a special tax that might shave off up to one third of earnings. Polish banks were the most expensive in Eastern Europe, trading at close to 2x book value. So we have been steering clear of most names. The utility sector is faced with potentially needing to bail out bankrupt coal mines, another good reason to stay out of the sector. Our exposure is mostly among medium-sized companies, such as Wirtualna Polska, a leading Internet company, with expected 34% EPS growth and P/E 10.1x for next year. The fund’s development and changes during the period In Greece we have added significant outperformance during the year - mostly on not owning the banks. It might seem like an obvious decision now, but many investors were keen on Greek banks. We spent a lot of time analysing them in detail, and the deeper we dug, the less attractive they looked. In Russia, we have been increasing our exposure to certain stocks. The Russian consumer has clearly taken a hit, with real wages now down for the first time since 2008. But some companies with strong business models and sound management, combined with low leverage, are still doing well. Our logic has been to stick to or increase such positions while selling out of the weaker ones. The strong companies have been able to take market share and grow during the first half of the year. However, there are very large differences between the sectors and between companies within certain sectors. A sector that has done relatively well early in the year is food retailer Magnit, one of our largest holdings, with sales growth of 33.1% in the first quarter, compared to OKEY (which we don’t own) reporting only 7.1% growth. In the airline industry, Aeroflot has been able to grow its passengers by 14.9% year-to-date, implying a market share of 40%, compared to 33% at the beginning of the year. According to our latest estimates, the company is trading at 1.7x 2016 earnings. The Turkish market has been very volatile throughout the year. At the beginning of the year, it looked like all the stars were aligned for Turkey, but political noise later stirred up quite a few black clouds. The lira has weakened significantly during the year. We have kept a large exposure to exporters, and in particular Do&Co - a company focused mostly on airline catering. Do&Co managed to grow sales by 29% during the first quarter. The most important question for Turkey now is what will happen on the political scene; will the AKP form a minority government with a partner, or will there perhaps be new

elections? President Erdogan is probably keen on the latter, which means that political uncertainty will prevail. The overall market sentiment is obviously going to be affected by how the Greek crisis continues. We have very limited direct exposure. In Russia investors have started to take notice of that things are not as bad as they seem. The Polish market is likely to see more weakness for banks and utilities, but domestically exposed small-caps are doing well. Fund facts


Type UCITS


Class A (SEK) 01.10.2013

Class C (EUR & USD) 12.12.2007

Class R (EUR) 18.12.2012

Quotation Daily

Benchmark MSCI EM Europe Index until 30.06.2010, MSCI Emerging Europe Total Return Index from 01.07.2010





Assets Securities portfolio at market value 201,734,450.87 Cash at banks 453,462.83 Receivable on sales of securities 7,010,062.51 Receivable on issues of shares 26,295.58 Income receivable on portfolio 1,403,828.44 Interest receivable on bank accounts 504.55 Other receivables 135,072.67


Liabilities Payable on purchases of securities 358,008.32 Payable on treasury transactions 6,673.77 Payable on redemptions of shares 1,229,596.35 Interest payable on bank overdrafts 211.48 Expenses payable 223,691.67 Other liabilities 447,019.95





Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. * Performance of the share class calculated from 1st October 2013 (initial transfer of assets in kind from the Feeder UCITS into the Master UCITS in exchange for fund shares in the A (SEK) Class of the Master UCITS as at 1st October 2013) to 30th December 2013 (published NAV) and performance of the Benchmark based on the quotations as at 1st October 2013 and 30th December 2013 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 208,498,475.91 - as at 31.12.2014 251,911,123.84 - as at 31.12.2013 520,265,794.30




Performance of Class A Shares (in %) - as at 30.06.2015 12.97 - as at 31.12.2014 -27.26 - as at 31.12.2013 -4.13 - as at 31.12.2012 17.90

Performance of MSCI Emerging Europe Total Return Index (in EUR) (in %) - as at 30.06.2015 12.55 - as at 31.12.2014 -18.81 - as at 31.12.2013 -8.40 - as at 31.12.2012 22.30




Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 10.39 - as at 31.12.2014 -22.66 - as at 31.12.2013 * 3.60

Performance of MSCI Emerging Europe Total Return Index (in SEK) (in %) - as at 30.06.2015 9.88 - as at 31.12.2014 -13.57 - as at 31.12.2013 * -1.75









Performance of Class A (USD) Shares (in %) - as at 30.06.2015 3.86 - as at 31.12.2014 -35.78 - as at 31.12.2013 -0.01 - as at 31.12.2012 20.20

Performance of MSCI Emerging Europe Total Return Index (in USD) (in %) - as at 30.06.2015 3.46 - as at 31.12.2014 -28.34 - as at 31.12.2013 -4.49 - as at 31.12.2012 24.70




Performance of Class C Shares (in %) - as at 30.06.2015 13.34 - as at 31.12.2014 -26.79 - as at 31.12.2013 -3.59 - as at 31.12.2012 18.50

Performance of MSCI Emerging Europe Total Return Index (in EUR) (in %) - as at 30.06.2015 12.55 - as at 31.12.2014 -18.81 - as at 31.12.2013 -8.40 - as at 31.12.2012 22.30







- outstanding at the beginning of the period 427,823.717 - issued 2,140.113 - redeemed 0.000 - outstanding at the end of the period 429,963.830


Performance of Class C (USD) Shares (in %) - as at 30.06.2015 4.19 - as at 31.12.2014 -35.37 - as at 31.12.2013 0.56 - as at 31.12.2012 20.80

Performance of MSCI Emerging Europe Total Return Index (in USD) (in %) - as at 30.06.2015 3.46 - as at 31.12.2014 -28.34 - as at 31.12.2013 -4.49 - as at 31.12.2012 24.70




Performance of Class R Shares (in %) - as at 30.06.2015 13.26 - as at 31.12.2014 -26.90 - as at 31.12.2013 -3.28 - as at 31.12.2012 1.40

Performance of MSCI Emerging Europe Total Return Index (in EUR) (in %)

- as at 30.06.2015 12.55 - as at 31.12.2014 -18.81 - as at 31.12.2013 -8.40 - as at 31.12.2012 22.30







assets



Shares

Austria

TRY 23,023 Do & Co AG 1,904,714.33 0.91 EUR 59,437 Erste Group Bank AG 1,514,157.58 0.73 EUR 483,300 Immofinanz AG 1,020,729.60 0.49 EUR 331,429 Raiffeisen Bank Intl AG 4,325,148.45 2.07

8,764,749.96 4.20

Czech Republic

USD 303,400 Central European Media Ent Ltd A 594,047.06 0.28 CZK 130,494 CEZ AS 2,718,087.39 1.30 CZK 13,488 Komercni Banka AS 2,682,326.85 1.29

5,994,461.30 2.87

Estonia

EUR 591,013 Olympic Entertainment Group AS 1,093,374.05 0.52 EUR 2,159,358 Tallink Group AS 1,569,853.27 0.75 EUR 210,859 Tallinna Kaubamaja Grupp AS 1,269,371.18 0.61

3,932,598.50 1.88

Greece

EUR 155,221 Aegean Airlines SA 899,134.72 0.43 EUR 59,103 Folli Follie Group 1,309,451.79 0.63 EUR 341,418 Fourlis Holding SA Reg 899,844.69 0.43 EUR 176,400 Hellenic Telecom Org SA (OTE) 1,254,861.97 0.60

4,363,293.17 2.09

Hungary

HUF 157,266 OTP Bank Plc 2,793,047.66 1.34

Kazakhstan

USD 35,356 KazMunaiGas Explor Product JSC GDR repr Shares Reg 314,374.35 0.15 USD 51,000 Kcell JSC Spons GDR repr 1 Shs Reg S 397,592.96 0.19

711,967.31 0.34

Lithuania

EUR 1,556,304 City Serv AB 2,521,212.48 1.21 EUR 2,556,500 Pieno Zvaigzdes AB 3,937,010.00 1.89

6,458,222.48 3.10

Poland

PLN 14,382 Bank Polska Kasa Opieki SA 617,391.58 0.30 PLN 34,263 Bank Zachodni WBK SA 2,789,251.12 1.34 PLN 62,402 CCC SA 2,590,224.03 1.24 PLN 39,300 Eurocash SA 350,164.99 0.17 PLN 87,272 Kernel Holding SA 786,342.02 0.38 PLN 271,802 Orange Polska SA 529,093.44 0.25 PLN 252,129 PKO Bank Polski SA 1,871,767.75 0.90 PLN 118,499 Polski Koncern Naftowy Orle SA 2,087,070.52 1.00 PLN 48,489 Powszechny Zaklad Ubezpie SA 5,004,601.55 2.40 PLN 50,000 Uniwheels AG 1,353,802.89 0.65 PLN 178,209 Wirtualna Polska Hg SA 1,431,404.31 0.69

19,411,114.20 9.32

Romania








assets

Russia

SEK 35,168 East Capital Explorer AB 205,301.88 0.10 USD 1,187,057 Etalon Group Ltd GDR repr 1 Shares Reg S 1,972,386.79 0.95 USD 124,900 Eurasia Drilling Co Ltd GDR Repr 1 1,847,586.67 0.89 GBP 169,388 Evraz PLC 294,716.99 0.14 USD 87,011 Gazprom Neft OSJC ADR Repr 5 Shs 941,694.40 0.45 USD 1,874,250 Gazprom OAO spons ADR repr 2 Shares 8,669,290.01 4.16 USD 78,062 IG Seismic Serv Ltd GDR repr 0.05 Shs Reg S 666,058.02 0.32 USD 264,442 JSFC Sistema JSC spons GDR repr 20 Reg Shares 2,101,950.51 1.01 USD 83,600 Lenta Ltd spons GDR repr 1/5 Shs Reg Shares 559,385.67 0.27 USD 952,683 LSR Group PJSC GDR repr 1 Share Reg S 1,728,417.15 0.83 USD 17,100 NovaTek OAO spons GDR repr 10 Shares 1,563,481.23 0.75 USD 98,768 Novolipetsk Steel (NLMK) GDR repr 10 Shares 1,179,822.53 0.57 USD 294,934 Oil Co Lukoil OJSC spons ADR repr 1 Share 11,656,700.80 5.59 GBP 64,900 Polymetal International PLC 475,231.56 0.23 USD 113,502 Severstal PAO spons GDR repr 1 Share Ser Oct 06 1,078,544.24 0.52 USD 124,254 X5 Retail Group NV spons GDR repr 1/4 Reg S 1,858,118.47 0.89

36,798,686.92 17.67

Slovenia

EUR 3,525 Petrol Ljubljana d.d. 898,875.00 0.43 EUR 82,000 Pozavarovalnica Sava d.d. 1,148,820.00 0.55 EUR 175,752 Zavarovalnica Triglav d.d. 4,305,045.24 2.06

6,352,740.24 3.04

Turkey

TRY 762,400 Akbank T.A.S. 1,979,044.56 0.95 TRY 2,178,162 Haci Omer Sabanci Holding AS 7,368,558.45 3.53 TRY 904,055 KOC Holding AS 3,754,806.14 1.80 TRY 575,416 Tofas Turk Otomobil Fabrikasi 3,526,988.19 1.69 TRY 1,424,140 Turk Hava Yollari AO 4,197,651.10 2.01 TRY 1,138,952 Turkiye Garanti Bankasi AS Reg 3,189,206.79 1.53 TRY 1,383,788 Turkiye Halk Bankasi AS 5,724,103.79 2.75 TRY 188,073 Turkiye Petrol Rafinerileri AS 4,277,275.34 2.05 TRY 3,374,797 Turkiye Vakiflar Bankasi Tao 4,871,872.41 2.34

38,889,506.77 18.65

Ukraine

USD 86,344 MHP SA GDR repr 1 Share Reg S 783,253.46 0.38 Total shares 137,411,527.73 65.91


Shares

Romania

RON 15 Fondul Proprietatea SA 2.67 0.00

Russia

USD 29,535 Acron OJSC 1,062,789.11 0.51 USD 4,570,227 Aeroflot Russian Airlines JSC 2,818,812.49 1.35 USD 2,416,700 Alrosa OJSC 2,455,691.70 1.18 USD 6,302,777 Bank St Petersburg PJSC 4,106,991.73 1.97 USD 39,200 Bashneft PJSOC Pref 903,501.43 0.43 USD 172,186 Dixy Group PJSC 909,535.57 0.44 USD 31,753,000 E.ON Russia OJSC 1,555,905.56 0.75 USD 24,028,120 Far East Shipping Co 1,182,035.03 0.57 USD 1,200 JSC Surgutneftegaz 640.65 0.00 USD 3,284,328 JSFC Sistema JSC 1,050,990.27 0.50







assets USD 167,963 LSR Group PJSC 1,549,602.11 0.74 USD 1,222,824 M Video Co JSC 3,713,854.00 1.78 USD 52,903 Magnit PJSC 9,726,522.62 4.66 USD 1,140,535 Mobile Telesystems OJSC 4,472,024.01 2.14 USD 1,340,800 Moscow Exchange Micex-Rts Pjsc 1,509,921.56 0.72 USD 839,102 Mostotrest PJSC 1,211,290.61 0.58 USD 1,314,470 OAO Tatneft Pref 3,309,513.27 1.59 USD 6,673,535 Sberbank of Russia OJSC 7,787,625.15 3.74 USD 1,517,613 Sberbank of Russia OJSC Pref 1,182,765.06 0.57 USD 440,735 Sollers JSC 3,163,356.22 1.52 USD 7,843,598 Surgutneftegaz OJSC Pref 5,395,664.18 2.59

59,069,032.33 28.33

Serbia

RSD 1 Energoprojekt Hg a.d Beograd 9.29 0.00 RSD 88,408 Komercijalna Banka AD Beogra 1,470,042.62 0.71

1,470,051.91 0.71

Total shares 60,539,086.91 29.04


Shares

Latvia

EUR 796,900 Reverta SA 0.00 0.00

Russia

USD 96,707 Integra Group spons GDR repr 2 Shares A Reg S 1,737,147.48 0.83

Ukraine

UAH 30,886,194 Raiffeisen Bk Aval JSC 118,170.80 0.06 Total shares 1,855,318.28 0.89


Baltics

EUR 4,421 East Capital Baltic Pro Inv AB Units 1,215,775.00 0.58

Russia

EUR 11,003 East Capital Fin Investors AB Cap 440,120.00 0.21 Total closed-ended investment funds 1,655,895.00 0.79

Open-ended investment funds

Investment funds (UCI)

Ukraine

USD 144,253.5832 East Capital Bering Ukraine Fd Red P Shares R Master Cap 272,622.95 0.13 Total investment funds (UCI) 272,622.95 0.13


Cash at banks 453,462.83 0.22


Total 208,498,475.91 100.00

East Capital (Lux) - Emerging Asia Fund



Management report The East Capital Emerging Asia Fund gained 14.1% in the first six months, while the benchmark index gained 15.3%. The net asset value was EUR 57m as of 30th June 2015, to be compared to EUR 63m as of 31st December 2014. Net outflows during the first 6 months amounted to EUR 13m. Market update The fund’s large overweight in China has contributed strongly to the positive performance this year. Chinese officials have continued the reforms and loosening measures that started already towards the end of 2014. Interest rates were cut further, financial markets’ liberalisation was sped up and various other targeted measures to support economic growth were introduced. High conviction names in the fund, such as China CNR, ZTE, and Shanghai Pharmaceuticals, played out well during the period and we took profits in the former two, when they reached their upside. We continue to see reasonable valuations in China and thus maintain an overweight position. The fund’s development and changes during the period The fund’s large underweights in Taiwan and Singapore, the more developed Asian markets, had a small negative impact on relative performance. Investors have been rotating into these markets ahead of the expected FED tightening, but we see little evidence of a compelling structural investment thesis. Our off-benchmark exposure to the Asian frontier markets started paying off in the second quarter of the year. We have a sizeable overweight in Pakistan, a market that gained 16.2% in 1H 2015. Engro Foods, one of the fund’s larger investments and the largest dairy company in the country, has gained 49.9% year-to-date. Vietnam too worked well, with the market up 18.4%. The majority of our exposure in Vietnam is in companies in which foreign ownership is at the maximum allowed threshold. These companies will benefit most from the recently-announced changes to the foreign ownership limitations. Indian equities have not moved much in 1H 2015. In our view, it will take another 2-3 quarters until companies will show a more meaningful earnings recovery. This should then lead to an uptick in the Indian market. The big disappointment in H1 was Indonesia. We thought government spending would accelerate, but this has not yet occurred. As a result, economic growth remains sub-par, and companies’ earnings growth is coming off. Indonesia was the worst-performing market in our investment universe during the period, and we were somewhat early in moving from a neutral to an overweight position. We believe the fund is well positioned for 2H 2015. Chinese equities are still cheap and we expect more measures from the government to support growth and further liberalise the markets. Frontier Asia will continue to do well: Pakistan is cheap, at P/E 9.5x, its IMF program is on track and the potential in the country is immense. Vietnam is opening up more towards foreign investors; economic growth is above 6% and companies are still trading at low valuations. In India, we expect a pick-up in the market towards the end of the year, as earnings start improving in the upcoming quarters. Lastly, we continue

to believe in a turnaround in Indonesia, led by public sector investments. Fund facts


Type UCITS


Quotation Daily

Benchmark MSCI Asia ex-Japan Index





Assets Securities portfolio at market value 56,849,394.75 Cash at banks 417,535.11 Receivable on sales of securities 192,066.62 Receivable on issues of shares 17,568.52 Income receivable on portfolio 462,336.60


Liabilities Payable on treasury transactions 2,213.83 Payable on redemptions of shares 422,343.74 Expenses payable 50,825.83








Total net assets

- as at 30.06.2015 57,463,518.20 - as at 31.12.2014 63,477,001.25 - as at 31.12.2013 103,533,852.26




Performance of Class A Shares (in %) - as at 30.06.2015 14.07 - as at 31.12.2014 13.91 - as at 31.12.2013 2.33 - as at 31.12.2012 15.00

Performance of MSCI Asia ex-Japan Index (in EUR) (in %) - as at 30.06.2015 15.25 - as at 31.12.2014 18.58 - as at 31.12.2013 -1.40 - as at 31.12.2012 19.90


- outstanding at the beginning of the period 1,249,198.282 - issued 160,838.494 - redeemed -122,791.417 - outstanding at the end of the period 1,287,245.359


Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 11.46 - as at 31.12.2014 21.10 - as at 31.12.2013 5.74 - as at 31.12.2012 10.50

Performance of MSCI Asia ex-Japan Index (in SEK) (in %) - as at 30.06.2015 12.52 - as at 31.12.2014 26.23 - as at 31.12.2013 1.86 - as at 31.12.2012 15.70






Number of Class B distribution Shares outstanding


Net asset value per Class B distribution Share - as at 30.06.2015 238.8718 - as at 31.12.2014 221.6130 - as at 31.12.2013 190.7887

Performance of Class B distribution Shares (in %) - as at 30.06.2015 14.07 - as at 31.12.2014 13.92 - as at 31.12.2013 2.34 - as at 31.12.2012 15.00

Dividend paid Ex-dividend date 11.06.2015 Dividend per share 8.63 Shares outstanding at dividend date 6,185.862

Performance of MSCI Asia ex-Japan Index (in EUR) (in %) - as at 30.06.2015 15.25 - as at 31.12.2014 18.58 - as at 31.12.2013 -1.40 - as at 31.12.2012 19.90

Number of Class P Shares outstanding


Net asset value per Class P Share - as at 30.06.2015 186.5900 - as at 31.12.2014 166.4034 - as at 31.12.2013 142.2868

Performance of Class P Shares (in %) - as at 30.06.2015 14.38 - as at 31.12.2014 14.81 - as at 31.12.2013 1.77 - as at 31.12.2012 15.90

Performance of MSCI Asia ex-Japan Index (in EUR) (in %)

- as at 30.06.2015 15.25 - as at 31.12.2014 18.58 - as at 31.12.2013 -1.40 - as at 31.12.2012 19.90







assets



Shares

China

USD 11,445 Alibaba Group Holding Ltd ADR repr 1 Share 845,680.03 1.47 USD 11,325 Baidu Inc ADR repr 0.1 Share A 2,024,951.50 3.52 HKD 3,103,600 China Construction Bank Corp H 2,545,627.22 4.43 HKD 394,000 China Life Insurance Co Ltd H 1,540,514.55 2.68 HKD 85,587 China Mobile Ltd 984,088.43 1.71 HKD 609,930 China Overseas Land & Inv Ltd 1,932,560.65 3.36 HKD 268,123 China Pacific Ins (Gr) Co Ltd H 1,155,507.63 2.01 HKD 612,000 China State Const Intl Hgs Ltd 989,766.26 1.72 HKD 318,000 CNOOC Ltd 405,243.08 0.71 HKD 341,984 Great Wall Motor Co Ltd H 1,505,515.36 2.62 HKD 3,344,000 Industr & Cial Bk of China Ltd H 2,386,397.51 4.15 HKD 882,000 Lenovo Group Ltd 1,097,409.39 1.91 HKD 580,110 Shanghai Pharmaceuti Hg Co Ltd H 1,451,643.28 2.53 HKD 120,050 Tencent Holdings Ltd 2,151,534.35 3.75

21,016,439.24 36.57

Hong Kong

HKD 433,400 AIA Group Ltd 2,548,125.18 4.44 HKD 186,000 Haier Electronics Group Co Ltd 450,355.05 0.78

2,998,480.23 5.22

India

INR 87,000 Arvind Mills Ltd 330,422.69 0.58 INR 128,000 AXIS Bank Ltd 1,010,702.86 1.76 INR 110,900 ICICI Bank Ltd 482,528.34 0.84 INR 71,400 Infosys Ltd 992,860.70 1.73 INR 66,000 LIC Housing Finance Ltd 420,401.96 0.73 INR 191,000 State Bank of India 708,951.71 1.23 INR 18,000 Tata Consultancy Services Ltd 648,656.86 1.13 INR 139,961 Tata Motors Ltd 858,395.45 1.49 INR 165,900 Yes Bank Ltd Dematerialised 1,977,662.61 3.44

7,430,583.18 12.93

Indonesia

IDR 1,484,000 Bank Rakyat Indonesia (PT) Tbk 1,034,697.14 1.80 IDR 15,391,600 PT Erajaya Tbk 611,751.13 1.07 IDR 3,060,000 PT Wijaya Karya (Persero) Tbk 516,378.50 0.90 IDR 7,388,000 Tiga Pilar Sejah Food (PT) Tbk A 930,695.24 1.62

3,093,522.01 5.39

Korea, Republic of

KRW 9,725 Hyundai Motor Co Ltd 1,063,153.49 1.85 KRW 605 NAVER Corp 308,327.37 0.54 KRW 3,151 Samsung Electronics Co Ltd 3,211,701.01 5.59 KRW 15,900 SK Hynix Inc 540,635.98 0.94

5,123,817.85 8.92

Pakistan

PKR 789,000 Engro Foods Ltd 1,053,620.03 1.83 PKR 900,000 Hub Power Co Ltd 742,583.94 1.29 PKR 260,500 Lucky Cement Ltd 1,193,603.27 2.08 PKR 1,049,000 United Bank Ltd 1,581,010.62 2.75

4,570,817.86 7.95







assets

Philippines

PHP 1,554,200 Robinsons Land Corp 906,552.02 1.58 PHP 683,000 Robinsons Retail Holdings Inc 1,012,286.88 1.76

1,918,838.90 3.34

Singapore

SGD 105,300 DBS Group Holdings Ltd 1,453,975.61 2.53

Sri Lanka

LKR 3,060,000 Access Engineering Plc 488,538.78 0.85 LKR 405,299 Hatton National Bank Plc 587,259.35 1.02 LKR 1,298,126 Hemas Hgs Ltd 714,054.50 1.24 LKR 3,034,413 Tokyo Cement Co (Lanka) Plc 787,746.20 1.37

2,577,598.83 4.48

Taiwan

TWD 58,000 MediaTek Inc 712,257.47 1.24 TWD 679,000 Taiwan Semiconduct Mfg Co Ltd 2,776,148.33 4.83

3,488,405.80 6.07

Thailand

THB 10,493,000 Asia Aviation Public Co Ltd 1,226,648.67 2.14

Vietnam

VND 346,150 FPT Corp 660,558.41 1.15 VND 275,000 Petroviet Dril & Well Serv JSC 593,773.63 1.03 VND 149,748 Vietnam Dairy Product Corp 695,934.53 1.21

1,950,266.57 3.39

Total shares 56,849,394.75 98.93


Shares

India

INR 8,700 Arvind Infrastructure Ltd 0.00 0.00 Total shares 0.00 0.00


Cash at banks 417,535.11 0.73

Other net assets/(liabilities) 196,588.34 0.34

Total 57,463,518.20 100.00

East Capital (Lux) - China Fund



Management report For the first half of 2015, the fund was up 24%, while its benchmark gained 11.7%. The net asset value was EUR 33m as of 30th June 2015, to be compared to EUR 14m as of 31st December 2014. Net inflows during the first 6 months amounted to EUR 15m. Since the end of May, the portfolio has predominantly consisted of Chinese domestic equities - A-shares - and as a consequence of this, the fund’s benchmark index was changed from MSCI China to MSCI China A as per 1st June. The benchmark figures referred to in this text are based on a linked index between the two indices. Market update General key drivers for China’s solid performance during the period were abundant liquidity in order to support a decelerating economy, and reform momentum, particularly related to the opening of capital markets and SOE reforms. The A-shares market was very strong, but the performance has been uneven. Smaller and medium-cap names prominently outperformed larger caps until mid-June, mainly on the back of strong liquidity driven by new investors entering the market and margin financing. The market peaked in mid-June, and the correction, triggered by deleveraging, had a much greater impact on smaller and medium caps and sectors where the fund is underweight. From 1-30 June, the fund outperformed the MSCI China A index by 6.15%. The fund’s development and changes during the period The composition of our portfolio is currently strongly biased towards larger cap companies, which currently represent a better risk-reward profile. Our portfolio is heavily exposed to growing private consumption, healthcare spending, ongoing monetary easing and SOE reforms. Approximately a third of the fund’s assets is invested in consumer discretionary and staples, with very high overweights in the household appliances, autos, food and beverage sectors. We like these sectors due to their stable earnings growth, the leading positions of our portfolio companies, and reasonable valuations. Our largest consumer holdings, such as Qingdao Haier, Midea Group and Inner Mongolia Yili, have performed strongly on a year-to-date basis, up 84%, 56%, and 47% respectively, outperforming the benchmark since they were added to the fund. The fund is also overweight in the property sector, as we find the housing market fundamentals’ recovery and valuations of developers attractive. China Vanke, one of the largest real estate developers, has been a strong alpha contributor to the performance as its sales have been improving following supportive housing policies and monetary easing. The stock trades at an undemanding forward P/E multiple of 8x 2015 and at a discount on its H-shares listed in Hong Kong. Deleveraging is always painful in the short run, but recent regulatory measures, such as clamping down on margin financing procedures, encouraging more longer-term capital to enter the market, and opening up are positive. We strongly believe in a favourable outlook of our portfolio holdings given their reasonable valuations and the healthy earnings growth. Also, we clearly see that there is significant interest in this asset class from global

institutional investors ahead of the inclusion of A-shares in global MSCI indices, expected to start already next year. Fund facts


Type UCITS


Quotation Daily

Benchmark

MSCI China Index until 31.05.2015, MSCI China A Index from 01.06.2015





Assets Securities portfolio at market value 33,208,052.69 Cash at banks 1,188,034.53 Receivable on sales of securities 446,594.37 Receivable on issues of shares 802,380.51 Income receivable on portfolio 24,697.21


Liabilities Payable on treasury transactions 5,274.38 Payable on redemptions of shares 2,647,061.34 Interest payable on bank overdrafts 2,571.30 Expenses payable 34,422.65





Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. * Switch of the Benchmark as at 1st June 2015 to the MSCI China A Index The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 32,980,429.64 - as at 31.12.2014 14,217,907.72 - as at 31.12.2013 15,643,591.68




Performance of Class A Shares (in %) - as at 30.06.2015 24.11 - as at 31.12.2014 16.44 - as at 31.12.2013 5.04 - as at 31.12.2012 12.60

Performance of MSCI China A Index (in EUR) (in %) - as at 30.06.2015 * -19.07

Performance of MSCI China Index (in EUR) (in %) - as at 31.05.2015 * 35.84 - as at 31.12.2014 21.75 - as at 31.12.2013 -0.79 - as at 31.12.2012 20.00


- outstanding at the beginning of the period 657,531.561 - issued 1,298,122.044 - redeemed -574,154.738 - outstanding at the end of the period 1,381,498.867


Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 20.99 - as at 31.12.2014 23.79 - as at 31.12.2013 8.55 - as at 31.12.2012 8.20

Performance of MSCI China A Index (in SEK) (in %) - as at 30.06.2015 * -20.05

Performance of MSCI China Index (in SEK) (in %)

- as at 31.05.2015 * 34.08 - as at 31.12.2014 29.60 - as at 31.12.2013 2.49 - as at 31.12.2012 15.90







assets



Shares


CNY 370,995 Fuyao Glass Industry Gr Co Ltd A 767,332.01 2.33 CNY 180,513 Huayu Automotive Syst Co Ltd A 558,204.60 1.69 CNY 261,531 SAIC Motor Corp Ltd A 856,088.50 2.60 CNY 359,356 Zhengzhou Yutong Bus Co Ltd A 1,069,605.87 3.24

3,251,230.98 9.86

Banks

CNY 824,210 China Merchant Bank Co Ltd 2,234,759.41 6.78 CNY 1,558,937 Industr & Cial Bk of China Ltd A 1,192,201.16 3.62 CNY 241,200 Industrial Bank Co Ltd A 602,633.76 1.83 CNY 456,871 Shanghai Pudong Dev Bk Co Ltd A 1,122,293.61 3.40

5,151,887.94 15.63

Capital goods

CNY 384,000 China State Const Eng Corp Ltd A 462,188.67 1.40 CNY 115,531 Zhejiang Chint Elec Co Ltd 512,428.55 1.55

974,617.22 2.95


CNY 371,792 Qingdao Haier Co Ltd A 1,633,275.71 4.95


CNY 228,200 Citic Securities Co Ltd A 889,439.45 2.70

Energy

HKD 194,200 China Oilfield Services Ltd H 278,076.00 0.84 HKD 341,400 China Petroleum & Chem Corp H 264,597.32 0.80

542,673.32 1.64


CNY 552,898 Inner Mongolia Y Ind Gr Co Ltd A 1,513,539.90 4.59 CNY 24,336 Kweichow Moutai Co Ltd A 908,168.42 2.75

2,421,708.32 7.34

Household and personal products

CNY 137,745 Shanghai Jahwa United Co Ltd A 865,869.86 2.63

Insurance

CNY 185,412 China Pacific Insurance Co Ltd A 810,483.40 2.46 CNY 171,390 Ping An Ins Gr Co of China Ltd A 2,034,082.15 6.17

2,844,565.55 8.63

Pharmaceuticals and biotechnology

HKD 59,200 China National Accord Medicines Co Ltd B 329,336.35 1.00 CNY 252,734 Shanghai Fosun Pharm Gr Co Ltd A 1,059,373.85 3.21 HKD 149,530 Shanghai Pharmaceuti Hg Co Ltd H 374,177.69 1.13 CNY 122,988 Tasly Pharmaceutical Gr Co Ltd A 886,400.85 2.69

2,649,288.74 8.03

Real estate

CNY 725,993 Poly Real Estate Gr Co Ltd A 1,200,841.22 3.64







assets

Technology hardware and equipment

HKD 134,200 ZTE Corp H 306,588.06 0.93

Transportation

HKD 153,450 CRRC Corp Ltd H 211,548.36 0.64 CNY 629,819 Daqin Railway Co Ltd A 1,280,766.37 3.88

1,492,314.73 4.52

Total shares 24,224,301.10 73.45

Equity / index linked certificates

Banks

USD 145,500 Cred Suisse (Bahamas) Ltd Certif Zhuhai Gree Elec A 04.11.18

1,346,855.11 4.08

USD 276,200 Credit Suisse Nassau Branch Certif Ping An Bank A 26.11.18 581,761.44 1.76 Total equity / index linked certificates 1,928,616.55 5.84

Warrants and rights

Health care equipment and services

HKD 2 Golden Meditech Holdings Ltd Call Wts 14/30.07.15 0.02 0.00 Total warrants and rights 0.02 0.00



Banks

USD 134,940 Credit Suisse Nassau Branch Certif Xj Elec A 20.12.18 491,822.00 1.49 USD 74,460 Credit Suisse Nassau Branch Certif YunBaiGr A 04.09.18 930,550.71 2.82 USD 67,000 Nomura Bk Intl Plc Certif HanRobAp A 14.06.17 372,315.16 1.13 USD 166,200 Nomura Bk Intl Plc Certif HeShInvD A 26.05.17 513,545.16 1.56 USD 177,200 Nomura Bk Intl Plc Certif Shenzhen Salubris Ph 26.05.17 734,152.94 2.23 USD 131,700 Nomura Bk Intl Plc Certif Wuliangye Yibin Co Ltd A

07.10.16 604,786.18 1.83

USD 956,000 UBS AG London Certif China Vanke Co Ltd A 13.06.16 2,010,862.80 6.10 USD 258,699 UBS AG London Certif Midea Gr Co Ltd 13.06.16 1,397,100.07 4.24 Total equity / index linked certificates 7,055,135.02 21.40


Cash at banks 1,188,034.53 3.60

Other net assets/(liabilities) -1,415,657.58 -4.29

Total 32,980,429.64 100.00

East Capital (Lux) - Frontier Markets Fund



Management report The Frontier markets index ended 1H 2015 with a 5.6% gain. At East Capital, we were able to spot better opportunities, as our fund outperformed its benchmark by 2.6% and returned an 8.2% gain. Typical to this greatly diverse universe, performance among individual markets varied considerably, with Argentina for example climbing almost 40%, while Ukraine lost more than 20%. The net asset value was EUR 64m as of 30th June 2015, to be compared to EUR 60m as of 31st December 2014. Net inflows during the first 6 months amounted to EUR 0.1m. Market update Domestic politics, oil price volatility and Eurozone stimuli were among the prominent factors affecting the different markets. Politics played an important role, especially in Argentina, where positive change is expected following an October election. Even though our underweight in Argentina resulted in some alpha loss, we remain firm in our belief that the underlying economy is not strong enough to sustain this rally. The funds development and changes during the period Nigeria and our largest off-index market, Saudi Arabia, were affected both by politics and by oil price volatility. They were also among our top markets in terms of alpha generation. In Nigeria, a combination of election uncertainty and oil price weakness led to a 26-month low in February, and we decided to increase the weight of some well-managed companies, such as Zenith Bank and Lafarge Africa. The market initially recovered by as much as 41%, but somewhat lost its momentum later on. In Saudi Arabia, ongoing earnings growth of around 15%, the new king’s bonus payments and news flow on the market’s opening to foreign direct investments have all been positive for stocks. In 1H 2015, our best contributor in Saudi Arabia was the bookstore and computer supplies company Jarir Marketing, which gained 29% on outstanding revenue growth of 37% in 1Q 2015. Asian frontiers showed a mixed picture, with Pakistan gaining 16.2% on a modest re-rating towards a 2015e P/E of 9.5x, but Sri Lanka advancing only 3%. Pakistan has been among the major positive contributors as our overall positioning and stock picks including Engro Foods (+49.9%) and Pak Suzuki Motors (+26.2%) delivered superior returns. On an encouraging note, MSCI announced it would add Pakistan to its review list for a reclassification to Emerging Markets - a move that could attract more interest to one of our favourite markets. In June, Vietnam announced an easing of foreign ownership caps in a bid to see itself in the emerging markets universe as well. Elsewhere, Eastern European frontiers did not show great performance, as the initial excitement around the Eurozone stimuli was replaced by a sour sentiment, with Greek debt worries in the Balkans and fears of further tensions in Ukraine, which lost 25.6%. During the period, we met with a large number of frontier companies from Kenya to Pakistan, from Ukraine to Kuwait and from Slovenia to Botswana. Even though Saudi Arabia is still one of our favourite markets, we reduced the weight of certain stocks following outstanding performance. On the other hand, we invested gradually

more into Asia as growth prospects look bright and valuations remain low, with many stocks still trading at a 7-9x P/E range. In Africa, we recently made smaller stock-specific changes, while our Eastern European exposure remained more or less the same. Our fund currently consists mainly of consumer stocks, banks and telecom companies, which we think represent a compelling investment opportunity at an expected P/E of 11x and earnings growth of 13% in 2015. Looking forward, it will be important to monitor the new policy direction in Nigeria, the impact of foreign opening in Saudi Arabia, positive steps towards EM inclusion for Pakistan and Vietnam, political developments in Argentina and Sri Lanka, and the upside that may arise from the EU economic recovery on Eastern European frontiers. Removal of Iranian sanctions will be another key development to watch, not only for the Middle East, but also for global energy markets. Keeping this busy agenda in mind, we think that the frontier risk-reward profile looks attractive and we are optimistic about seeing some of these developments turning into positive triggers for frontier markets going forward. Fund facts


Type UCITS


Class P (EUR) 12.12.2014

Class R (EUR) 12.12.2014

Class A (SEK) 12.12.2014

Class R (GBP) 22.12.2014

Quotation Daily

Benchmark MSCI Frontier Markets Index





Assets Securities portfolio at market value 61,701,235.64 Cash at banks 2,361,398.83 Formation expenses, net 91,273.63 Receivable on treasury transactions 72,386.86 Receivable on issues of shares 39,741.53 Income receivable on portfolio 415,795.80 Interest receivable on bank accounts 45.82


Liabilities Bank overdrafts 124,417.91 Payable on purchases of securities 82,921.40 Payable on redemptions of shares 52,226.73 Interest payable on bank overdrafts 328.98 Expenses payable 86,420.10





Annual returns were calculated for the last 3 consecutive financial years based on published NAV (NAV at which shares can be subscribed or redeemed) rather than on financial statements' NAV. The semi-annual return as at 30th June 2015 indicates the performance on a semi-annual basis since the end of the last financial year and was as well calculated based on published NAV rather than on financial statements' NAV. Performance figures are shown in share class currency unless otherwise stated. * Performance of the share class calculated from 12th December 2014 respectively 22nd December 2014 (initial subscription price or theoretical NAV) to 30th December 2014 (published NAV) and performance of the Benchmark based on the quotations as at 12th December 2014 respectively 22nd December 2014 and 30th December 2014 The historical performance is not an indication of future results. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares of the Fund.



Total net assets

- as at 30.06.2015 64,335,562.99 - as at 31.12.2014 59,625,297.51


- outstanding at the beginning of the period 232.799 - issued 6,093.215 - redeemed -117.089 - outstanding at the end of the period 6,208.925

Net asset value per Class A Share - as at 30.06.2015 112.4643 - as at 31.12.2014 103.7118

Performance of Class A Shares (in %) - as at 30.06.2015 8.20 - as at 31.12.2014 * 3.07

Performance of MSCI Frontier Markets Index (in EUR) (in %) - as at 30.06.2015 5.37 - as at 31.12.2014 * 3.52



Net asset value per Class A (SEK) Share - as at 30.06.2015 SEK 109.8065 - as at 31.12.2014 SEK 103.7935

Performance of Class A (SEK) Shares (in %) - as at 30.06.2015 5.73 - as at 31.12.2014 * 2.88

Performance of MSCI Frontier Markets Index (in SEK) (in %) - as at 30.06.2015 2.87 - as at 31.12.2014 * 4.77








Net asset value per Class A (USD) Share - as at 30.06.2015 USD 100.7964 - as at 31.12.2014 USD 101.0572

Performance of Class A (USD) Shares (in %) - as at 30.06.2015 -0.53 - as at 31.12.2014 * 1.40

Performance of MSCI Frontier Markets Index (in USD) (in %) - as at 30.06.2015 -3.14 - as at 31.12.2014 * 1.79

Number of Class P Shares outstanding

- outstanding at the beginning of the period 100.000 - issued 20,393.936 - redeemed -1,518.846 - outstanding at the end of the period 18,975.090

Net asset value per Class P Share - as at 30.06.2015 112.2725 - as at 31.12.2014 103.7546

Performance of Class P Shares (in %) - as at 30.06.2015 7.97 - as at 31.12.2014 * 3.11



- outstanding at the beginning of the period 100.000 - issued 0.000 - redeemed 0.000 - outstanding at the end of the period 100.000

Net asset value per Class R Share - as at 30.06.2015 112.7941 - as at 31.12.2014 103.7415

Performance of Class R Shares (in %) - as at 30.06.2015 8.48 - as at 31.12.2014 * 3.10







Number of Class R (GBP) Shares outstanding

- outstanding at the beginning of the period 100.000 - issued 0.000 - redeemed 0.000 - outstanding at the end of the period 100.000

Net asset value per Class R (GBP) Share - as at 30.06.2015 GBP 100.3195 - as at 31.12.2014 GBP 101.1703

Performance of Class R (GBP) Shares (in %) - as at 30.06.2015 -1.48 - as at 31.12.2014 * 1.70

Performance of MSCI Frontier Markets Index (in GBP) (in %)

- as at 30.06.2015 -4.34 - as at 31.12.2014 * 3.29







assets



Shares

Argentina

USD 58,800 Yacimientos Petrol Fiscales SA ADR spons ADR repr 1 Share D

1,448,611.46 2.25

Gabon

EUR 971 Total Gabon Reg 247,168.05 0.38

Georgia

USD 62,000 TBC Bank JSC Spons GDR Repr 1 Sh 573,558.47 0.89

Kazakhstan

USD 69,271 KazMunaiGas Explor Product JSC GDR repr Shares Reg 615,935.78 0.96 USD 158,499 Kcell JSC Spons GDR repr 1 Shs Reg S 1,235,648.75 1.92

1,851,584.53 2.88

Kenya

KES 273,300 East African Breweries Ltd 751,850.50 1.17 KES 2,574,400 Equity Group Holdings Ltd 1,106,592.99 1.72 KES 2,519,000 Kenya Cial Bk Ltd 1,253,744.77 1.95 KES 5,971,300 Safaricom Ltd 888,900.34 1.38

4,001,088.60 6.22

Kuwait

KWD 123,000 Kuwait Food Co 986,393.57 1.53 KWD 1,366,000 Mobile Telecommunications Co 1,683,759.87 2.62 KWD 1,148,700 National Bank of Kuwait 2,934,177.82 4.56

5,604,331.26 8.71

Lebanon

USD 50,000 Audi Saradar Group SAL spons GDR repr 1 Share Reg S 272,588.47 0.42

Lithuania

EUR 270,000 Apranga AB 731,700.00 1.14 EUR 1,000,000 Linas Agro Group AB 685,000.00 1.06

1,416,700.00 2.20

Nigeria

NGN 9,545,976 Ecobank Transnational Inc 969,877.42 1.51

Oman

OMR 815,600 Bank Muscat SAOG 1,046,567.98 1.63 OMR 184,740 Oman Telecommunicat Co SAOG 747,804.29 1.16

1,794,372.27 2.79

Pakistan

PKR 928,200 Engro Foods Ltd 1,239,505.85 1.93 PKR 329,100 Habib Bank Ltd 624,360.83 0.97 PKR 802,000 Hub Power Co Ltd 661,724.80 1.03 PKR 352,000 Lucky Cement Ltd 1,612,853.56 2.51 PKR 474,200 Pak Suzuki Motors Co Ltd 1,822,740.30 2.83 PKR 1,604,000 United Bank Ltd 2,417,484.30 3.76

8,378,669.64 13.03







assets

Romania


Senegal

XOF 34,079 Sonatel SA 1,241,726.86 1.93

Slovenia

EUR 3,757 Petrol Ljubljana d.d. 958,035.00 1.49 EUR 68,223 Pozavarovalnica Sava d.d. 955,804.23 1.49 EUR 99,405 Zavarovalnica Triglav d.d. 2,434,925.48 3.78

4,348,764.71 6.76

South Africa

ZAR 84,400 MTN Group Ltd 1,428,111.46 2.22

Sri Lanka

LKR 2,376,520 Access Engineering Plc 379,419.01 0.59 LKR 569,000 Commercial Bk of Ceylon Plc 612,615.47 0.95 LKR 428,700 Hatton National Bank Plc 621,166.31 0.97 LKR 1,114,555 Hemas Hgs Ltd 613,078.40 0.95 LKR 2,544,267 Tokyo Cement Co (Lanka) Plc 660,502.26 1.03

2,886,781.45 4.49

The Netherlands

EUR 104,514 Mota-Engil Africa NV 705,469.50 1.10

Ukraine

USD 145,337 MHP SA GDR repr 1 Share Reg S 1,318,397.43 2.05

Vietnam

VND 315,790 FPT Corp 602,622.39 0.94 VND 373,000 Joint Stock Cial Bank 748,613.35 1.16 VND 218,000 Vietnam Dairy Product Corp 1,013,126.90 1.57

2,364,362.64 3.67

Total shares 42,011,855.26 65.30


Saudi Arabia

USD 4,900 HSBC Bank Plc Certif Abdullah Al Othaim Mks Co 31.07.17 126,746.90 0.20 USD 36,571 HSBC Bank Plc Certif Al Khaleej Train & Ed Co SJSC

18.07.16 477,365.20 0.74

USD 37,700 HSBC Bank Plc Certif Almarai 31.07.17 810,388.49 1.26 USD 40,700 HSBC Bank Plc Certif FawAbdAl 20.03.17 955,295.97 1.48 USD 38,300 HSBC Bank Plc Certif Halwani Bros 09.02.18 837,045.57 1.30 USD 19,300 HSBC Bank Plc Certif Herfy Food Services Co 06.07.17 538,518.71 0.84 USD 4,300 HSBC Bank Plc Certif Jarir Marketing Co Tr 1 22.01.18 227,603.13 0.35 USD 66,760 HSBC Bank Plc Certif SauHolBk Reg S Ser 144A 23.01.17 703,536.11 1.09 Total equity / index linked certificates 4,676,500.08 7.26


Shares

Bangladesh

BDT 40,000 Bata Shoe Co (Bangladesh) Ltd 581,377.65 0.90







assets

Nigeria

NGN 13,768,075 Guaranty Trust Bank Plc 1,679,236.25 2.61 NGN 3,109,880 Lafarge Africa Plc 1,432,238.08 2.23 NGN 146,000 Nestle Foods Nigeria Plc 564,998.99 0.88 NGN 1,046,000 Nigerian Breweries Plc 708,400.77 1.10 NGN 5,260,272 Stanbic IBTC Hgs Plc 641,336.50 1.00 NGN 20,916,490 Zenith Bank Plc 1,818,166.01 2.83

6,844,376.60 10.65

Romania

RON 410,000 BRD Gr SG Romanian Bk for Dev 988,173.84 1.54 RON 30 Fondul Proprietatea SA 5.33 0.00

988,179.17 1.54

Total shares 8,413,933.42 13.09


Saudi Arabia

USD 9,500 Merrill Lynch Intl & Co Certif JariMark 02.03.17 502,844.12 0.78 USD 41,250 Merrill Lynch Intl & Co Certif United Intl Transp 07.07.16 582,899.10 0.91 USD 29,157 Merrill Lynch Intl & Co CV Certif Al Khaleej Tr&Ed 27.09.17 380,589.46 0.59 USD 11,200 Merrill Lynch Intl & Co CV Certif Dallah Hlth Hg Co

22.12.16 376,216.99 0.58

USD 19,100 Merrill Lynch Intl & Co CV Certif SauAirCa 16.04.18 750,230.47 1.17 USD 68,150 Merrill Lynch Intl & Co CV Certif SauBriBk Ser 144A

02.03.17 541,902.68 0.84

Total equity / index linked certificates 3,134,682.82 4.87


Shares

Botswana

BWP 3,928,000 Letshego Holdings Ltd 1,144,179.06 1.78

Montenegro

EUR 408,994 Crnogorski Telekom ad 1,652,335.76 2.57 Total shares 2,796,514.82 4.35


Saudi Arabia

USD 25,815 Merrill Lynch Intl & Co CV Certif Abdullah Othaim 22.02.16 667,749.24 1.04 Total equity / index linked certificates 667,749.24 1.04


Cash at banks 2,361,398.83 3.67

Bank overdrafts -124,417.91 -0.19

Other net assets/(liabilities) 397,346.43 0.61

Total 64,335,562.99 100.00

Notes to the financial statements as at 30th June 2015


Note 1 - General information East Capital (Lux) (the "Fund") is an open-end investment fund with multiple Sub-Funds ("société d'investissement à capital variable (SICAV) à compartiments multiples"). The Fund qualifies as an Undertaking for Collective Investment in transferable securities under the Council Directive 2009/65/EC as amended and is governed by Part I of the amended Law of 17th December 2010 (the "2010 Law") relating to Undertakings for Collective Investment. The Fund was incorporated on 13th November 2006 for an unlimited period. Its Articles of Incorporation have been published in the official gazette "Mémorial C, Recueil des Sociétés et Associations du Grand Duché de Luxembourg" on 27th November 2006. At the date of the present report, the following Sub-Funds are offered to investors: - East Capital (Lux) - Russian Fund in EUR - East Capital (Lux) - Baltic Fund in EUR - East Capital (Lux) - Balkan Fund in EUR - East Capital (Lux) - Turkish Fund in EUR - East Capital (Lux) - Eastern European Fund in EUR - East Capital (Lux) - Emerging Asia Fund in EUR - East Capital (Lux) - China Fund in EUR - East Capital (Lux) - Frontier Markets Fund in EUR The Board of Directors is entitled to create new Sub-Funds. The Board of Directors resolved with effect on 1st October 2013 to create a Master Feeder Structure, as follows: Feeder (Swedish-domiciled funds) Master (Luxembourg-domiciled funds) East Capital Russian Fund East Capital (Lux) - Russian Fund (A SEK Class) East Capital Baltic Fund East Capital (Lux) - Baltic Fund (A SEK Class) East Capital Eastern European Fund East Capital (Lux) - Eastern European Fund (A SEK Class) East Capital Balkan Fund East Capital (Lux) - Balkan Fund (A SEK Class) East Capital Turkish Fund East Capital (Lux) - Turkish Fund (A SEK Class) For the Sub-Funds, the following classes of shares may be issued:

- Class A and Class B Shares: these Shares are normally available in EUR, USD, SEK and NOK in accordance with the provisions of the Prospectus and the Appendix I available in the Prospectus, for the Sub-Fund East Capital (Lux) - China Fund they are also available in RMB;

- Class C and Class D Shares: these Shares are normally available in EUR and USD and are reserved for investments made by investors qualifying as institutional investors within the meaning of the 2010 Law;

- Class P Shares: these Shares are normally available in EUR, USD and SEK and are reserved for investments made by investors

qualifying as institutional investors within the meaning of the 2010 Law and which have been approved by the Fund or the Management Company;

- Class R Shares: these Shares are primarily intended for individual investors in the UK and Dutch markets. The Shares are only

available to investors who are approved by the Fund, including institutional investors, recognised financial intermediaries or institutions which provide fee-based investment advisory services to underlying investors.

- Class X Shares: these Shares are only available to institutional investors who are approved by the Fund. Class X Shares are

designed to accommodate an alternative charging structure. No management fee will have to be charged to Class X Shares. Unless a Share Class is identified as a "Distributing Class" or a dividend policy is otherwise specified in the Appendix of the Prospectus, all Share Classes of all Sub-Funds have an accumulation policy and, consequently, no dividends will be paid. The Board of Directors reserves the right to introduce a distribution policy which may vary according to each Sub-Fund and Share Class that is designated as "Distributing Class". The reference currency of the Fund is expressed in EUR. The net asset value of each Class within the Sub-Funds is calculated on any valuation day, being any day that is a business day in Luxembourg and Sweden (except on 24th December) and which is also a day where stock exchanges and regulated markets in countries where the Sub-Fund is materially invested are open for trading. For the Sub-Fund East Capital (Lux) - Frontier Markets Fund, the net asset value is only calculated every week from Monday to Thursday. The Fund’s financial year starts on 1st January and ends on 31st December. The Fund publishes an audited Annual Report within 4 months after the end of the business year and an unaudited Semi-annual Report within 2 months after the end of the period to which it refers.

Notes to the financial statements (continued) as at 30th June 2015


Copies of the annual financial statements and semi-annual reports, as well as the current prospectus, copies of the Articles of Incorporation of the Fund may be obtained free of charge at the registered office of the Fund, the Administrative Agent and any distributor or intermediary appointed by the Fund. Note 2 - Significant accounting policies a) Presentation of the financial statements The financial statements of the Fund are established in accordance with the Luxembourg legal and regulatory requirements concerning Undertakings for Collective Investment. b) Valuation The assets of the Fund are valued as follows:

1) The value of any cash in hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received are deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as the Fund may consider appropriate in such case to reflect the true value thereof.

2) Securities admitted to official listing on an official stock exchange or traded on any other organised market are valued

at the last available reliable price on such stock exchange or market, unless such a price is not deemed to be representative of their fair market value;

3) Securities not listed on stock exchanges or not traded on any regulated market and securities with an official listing for

which the last available price is not representative of a fair market value are valued, prudently and in good faith, on the basis of their estimated sale prices;

4) The financial derivative instruments which are not listed on any official stock exchange or traded on any other

organised market are valued in accordance with market practice;

5) For each Sub-Fund, securities whose value is expressed in a currency other than the reference currency of that Sub-Fund are converted into that reference currency at the average rate between the last available buy/sell rate in Luxembourg or, failing that, in a financial centre which is most representative for those securities.

6) The units/shares of undertakings for collective investment are valued on the basis of the last known net asset value. In

case where an indicative net asset value is available and deemed reliable, such indicative net asset value may be used when deemed to better reflect the value of the undertakings for collective investment.

c) Net realised gain/(loss) on sales of securities The net realised gain/(loss) on sales of securities is determined on the basis of the average cost of securities sold. d) Cost of securities The acquisition cost of a security denominated in a currency other than that of the Sub-Fund is converted to the Sub-Fund's currency at the exchange rate prevailing on the date of purchase. e) Exchange translation Bank balances, other assets and liabilities and the value of securities held that are denominated in other currencies than the Sub-Fund’s currency are converted at the prevailing exchange rate of the closing day. Income and expenses incurred in currencies other than the Sub-Fund’s currency are converted at the prevailing exchange rate of the day of each transaction. At the date of the report, the following exchange rates were used: 1 EUR = 87.1126630 BDT Bangladeshi taka 11.0478540 BWP Botswanian Pula 6.9433717 CNY Chinese Yuan Renminbi 27.2233221 CZK Czech Koruna 0.7107852 GBP Pound Sterling 8.6801383 HKD Hong Kong Dollar 7.5905582 HRK Croatien Kuna 314.7924330 HUF Hungarian Forint 14,941.2863624 IDR Indonesian Rupiah 71.2463446 INR Indian Rupee 111.1582226 KES Kenyan Shilling 1,251.4040156 KRW South Korean Won 0.3383509 KWD Kuwaiti dinar



149.8158511 LKR Sri Lanka Rupee 4.2156705 MYR Malaysian Ringgit 222.8202835 NGN Naira, Nigeria 0.4310509 OMR Omani Rial 50.5029479 PHP Philippan Peso 113.9574637 PKR Pakistani Rupee 4.1890776 PLN Polish zloty 4.4697304 RON New romanian leu

(1 RON=10,000 ROL) 120.3674729 RSD Serbian Dinar 62.5042285 RUB Russian Rouble 9.2325983 SEK Swedish Krona 1.5072842 SGD Singapore Dollar 37.8419407 THB Thailand Bath 2.9985006 TRY New turkish Lira

(1 TRY=1,000,000 TRL) 34.5808153 TWD New Taiwan Dollar 24.6334002 UAH Ukrainian Hryvnia 1.1197000 USD US Dollar 24,452.4033106 VND Vietnamese Dong 658.5180668 XOF CFA Franc 13.6247335 ZAR South African Rand f) Combined financial statements The combined financial statements of the Fund are expressed in EUR and are equal to the converted sum of the corresponding captions in the financial statements of each Sub-Fund. g) Investment portfolio income Dividend income is recorded at the ex-date, net of any withholding tax. h) Receivable / Payable on treasury transactions The caption "Receivable on treasury transactions" comprises maturities of time deposits, new loans or foreign exchange transactions not yet recorded under the caption "Cash at banks". The caption "Payable on treasury transactions" comprises new time deposits, maturities of loans or foreign exchange transactions not yet recorded under the caption "Cash at banks". At a Sub-Fund level, "Receivable and payable on treasury transactions" are disclosed net in the statement of net assets. Note 3 - Subscription, redemption and conversion fees A subscription fee of up to 5% of the net assets values of the Shares being subscribed may be charged for the benefit of distributors and other financial intermediaries. Where shares are issued in countries where stamp duties or other charges apply, such charges will be added to the issue price. A redemption charge of 1% of the redemption amount may be charged for the benefit of the Fund, unless for the Sub-Fund East Capital (Lux) - Frontier Markets Fund where a redemption charge of 3% of the redemption amount may be charged. Where shares are redeemed in countries where stamp duties or other charges apply, such charges will be subtracted from the redemption price. No redemption charges were applied during the period. As conversions are dealt with as redemptions followed by a new subscription, the Board of Directors may charge redemption and subscription fees in accordance with the subscription fee and redemption fee above.



Note 4 - Management fees The Management Company is entitled to receive a management fee accrued daily, calculated on the net assets of each Sub-Fund and payable twice monthly at the following effective rates per annum:

Sub-Funds Class A and

Class B Shares

Class C and

Class D Shares

Class P Shares Class R Shares Class X Shares

East Capital (Lux)

- Russian Fund

2.00% 1.50% 1.15% 1.50% 0.00%

East Capital (Lux)

- Baltic Fund

2.00% 1.50% 1.15% 1.50% 0.00%

East Capital (Lux)

- Balkan Fund

2.00% 1.50% 1.15% 1.50% 0.00%

East Capital (Lux)

- Turkish Fund

2.00% 1.50% 1.15% 1.50% 0.00%

East Capital (Lux)

- Eastern European Fund

2.00% 1.50% 1.15% 1.50% 0.00%

East Capital (Lux)

- Emerging Asia Fund

1.70% N.A. 1.00% 1.70% 0.00%

East Capital (Lux)

- China Fund

1.70% N.A. 1.00% 1.70% 0.00%

East Capital (Lux)

- Frontier Markets Fund

2.00% N.A. 1.25% 1.50% 0.00%

Note 5 - Flat fee In addition, the Management Company is entitled to receive a flat fee to cover operating, administrative and servicing expenses accrued daily and payable twice monthly at the following total annual rate :

Sub-Funds Class A and

Class B Shares

Class C and

Class D Shares

Class P Shares Class R Shares Class X Shares

East Capital (Lux)

- Russian Fund

0.45% 0.35% 0.35% 0.45% 0.35%

East Capital (Lux)

- Baltic Fund

0.45% 0.35% 0.35% 0.45% 0.35%

East Capital (Lux)

- Balkan Fund

0.45% 0.35% 0.35% 0.45% 0.35%

East Capital (Lux)

- Turkish Fund

0.45% 0.35% 0.35% 0.45% 0.35%

East Capital (Lux)

- Eastern European Fund

0.45% 0.35% 0.35% 0.45% 0.35%

East Capital (Lux)

- Emerging Asia Fund

0.45% N.A. 0.35% 0.45% 0.35%

East Capital (Lux)

- China Fund

0.45% N.A. 0.35% 0.45% 0.35%

East Capital (Lux)

- Frontier Markets Fund

0.65% N.A. 0.55% 0.65% 0.55%

The flat fee mainly covers the ongoing custody fees and safekeeping charges payable to the Custodian (including any sub-custodian fees), fees for fund administration services payable to the Administration Agent and transfer agency fees for registrar and transfer agency services payable to the Registrar and Transfer Agent.



Note 6 - Performance fee The Management Company is entitled to receive a performance fee in respect of Class P Shares calculated at a Performance Fee Rate of 20%. The Performance Fee Benchmark for each Sub-Fund is:

- the MSCI Russia Total Return Index for the Sub-Fund East Capital (Lux) - Russian Fund; - the OMX Baltic Capped Benchmark Index for the Sub-Fund East Capital (Lux) - Baltic Fund; - the STOXX Balkan Total Market Index for the Sub-Fund East Capital (Lux) - Balkan Fund; - the ISE 100 Total Return (net) Index for the Sub-Fund East Capital (Lux) - Turkish Fund; - the MSCI Emerging Europe Total Return Index for the Sub-Fund East Capital (Lux) - Eastern European Fund; - the MSCI Asia ex-Japan Index for the Sub-Fund East Capital (Lux) - Emerging Asia Fund; - the MSCI China Index for the Sub-Fund East Capital (Lux) - China Fund; - the MSCI Frontier Markets Index for the Sub-Fund East Capital (Lux) - Frontier Markets Fund.

The performance fee is calculated and accrued on each valuation day as an expense of the relevant Share Class and is payable to the Management Company in arrears at the end of each Calculation Period (business year of the Fund). If a redemption is made from the relevant Share Class as of a valuation day other than the end of a Calculation Period, the performance fee (if accrued as of the date of such redemption) shall be crystallized in respect of the Shares being redeemed and paid to the Management Company. As at 30th June 2015, the Class P was only launched for the Sub-Funds East Capital (Lux) - Emerging Asia Fund and East Capital (Lux) - Frontier Markets Fund. The performance fees amounted to East Capital (Lux) - Emerging Asia Fund - East Capital (Lux) - Frontier Markets Fund EUR 9,339.71 Note 7 - Subscription duty ("Taxe d’abonnement") The Fund is governed by Luxembourg law. Pursuant to the legislation and regulations in force, the Fund is subject to an annual subscription duty ("taxe d’abonnement") of 0.05% which is payable quarterly and calculated on the basis of the net assets of each Sub-Fund on the last day of each quarter. The rate of this tax is reduced to 0.01% of the value of the net assets for Sub-Funds or Classes of shares reserved for institutional investors. According to Article 175 (a) of the amended Law of 17th December 2010, the net assets invested in Undertakings for Collective Investments already subject to the "taxe d’abonnement" are exempt from this tax. Note 8 - Securities lending The Fund can carry out securities lending transactions. The table below shows for the different Sub-Funds at the date of the report : - the global valuation of the securities lent ("Securities Lending") as well as - the valuation of the securities received as collateral:

Sub-Funds Currency

Global valuation of the securities lent

(in EUR)

Valuation of the securities received as collateral

(in EUR)

Morgan

Stanley

SEB

Stockholm Total

Morgan

Stanley

SEB

Stockholm Total

East Capital (Lux) -

Turkish Fund

EUR - 3,033,287.21 3,033,287.21 - 3,285,074.00 3,285,074,00

East Capital (Lux) -

Eastern European Fund

EUR 3,503,887.80 757,340.00 4,261,227.80 3,510,124.00 784,517.00 4,394,641..00

The collateral received is composed of bonds issued by the Swedish, UK, German, Netherlands and French government.



Note 9 - Swing Pricing

A Sub-Fund may suffer a reduction in value as a result of the transaction costs incurred in the purchase and sale of its underlying investments and the spread between the buying and selling prices of such investments caused by subscriptions, redemptions and/or switches in and out of the Sub-Fund. This is known as "dilution". In order to counter this and to protect Shareholders’ interests, the Fund may apply "swing pricing" as part of its daily valuation policy. This will mean that in certain circumstances the Fund may make adjustments in the calculations of the net asset values per Share, to counter the impact of dealing and other costs on occasions when these are deemed to be significant. If on any valuation day the aggregate transactions in Shares of a Sub-Fund result in a net increase or decrease of Shares which exceeds a threshold set by the Board of Directors from time to time for that Sub-Fund (relating to the cost of market dealing for that Sub-Fund), the net asset value of the Sub-Fund will be adjusted by an amount (not exceeding 2% of that net asset value) which reflects both the estimated fiscal charges and dealing costs that may be incurred by the Sub-Fund and the estimated bid/offer spread of the assets in which the Sub-Fund invests. The adjustment will be an addition when the net movement results in an increase of all Shares of the Fund and a deduction when it results in a decrease. Note 10 - Changes in investments The statement of changes in investments for the period in reference to the report is available free of charge upon request at the registered office of the Fund.

Additional information for investors in the Federal Republic of Germany


Paying and Information Agent Marcard, Stein & Co Ballindamm 36 D-20095 Hamburg has undertaken the function of Paying and Information Agent for the Fund in the Federal Republic of Germany (the "German Paying and Information Agent"). Applications for the redemptions and conversion of shares may be sent to the German Paying and Information Agent. All payments to investors, including redemption proceeds and potential distributions, may, upon request, be paid through the German Paying and Information Agent. The prospectus, the key investor information documents, the Articles of Incorporation of the Fund and the annual and semi-annual reports may be obtained, free of charge, in hardcopy form at the office of the German Paying and Information Agent during normal opening hours. The statement of changes in the composition of the investment portfolio is also available free of charge upon request at the office of the German Paying and Information Agent. Issue, redemption, and conversion prices of shares, and any other information to the Shareholders, are also available from the German Paying and Information Agent. The issue, redemption and conversion prices of shares and any other information to the Shareholders will be published on the fund’s website www.eastcapital.com.

http://www.eastcapital.com/

-annual report as at 30th june 2015 - east capital reports/english/east... · mathias pedersen...

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