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Atlantis International Umbrella Fund

Annual Report and Audited Financial Statements For the year ended 31st December 2015

1


Annual Report and Audited Financial Statements For the year ended 31st December 2015

Contents

Contents Page

Management and Administration ............................................................................................................... 2

Investment Manager’s Reports .................................................................................................................. 4

Statement of Managers’ Responsibilities ................................................................................................. 11

Report of the Trustee to the Unitholders .................................................................................................. 12

Independent Auditors’ Report to the Unitholders .................................................................................... 13

Schedule of Investments .......................................................................................................................... 15

Statement of Financial Position ............................................................................................................... 25

Statement of Comprehensive Income ...................................................................................................... 28

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units ........... 30

Statement of Cash Flows ......................................................................................................................... 32

Notes to the Financial Statements ............................................................................................................ 34

Significant Portfolio Movements (Unaudited) ......................................................................................... 61

2


Management and Administration

REGISTERED OFFICE DIRECTORS OF THE MANAGER

George’s Court Victor Holmes (British) (Chairman) (Independent

54 - 62 Townsend Street non–executive)

Dublin 2 David Dillon (Irish) (non-executive)

Ireland Gerard Morrison (New Zealander) (non-executive)

D02 R156 Paul McNaughton (Irish) (non-executive)

MANAGER INVESTMENT MANAGER

Atlantis Investment Management (Ireland) Ltd. Atlantis Investment Management (Hong Kong) Ltd. George’s Court Room 3501

54 - 62 Townsend Street The Centrium

Dublin 2 60 Wyndham Street

Ireland Central

D02 R156 Hong Kong

INVESTMENT ADVISER

Atlantis Asian Fund: Atlantis Japan Opportunities Fund:

Atlantis Investment Management (Singapore) Pte Limited Atlantis Investment Research Corporation

16 Collyer Quay #24-04 Studio 1805

Income at Raffles Hamamatsu-cho Square

Singapore 049318 1-30-5 Hamamatsu -cho

Minato-Ku

Tokyo 105-0013

Japan

ADMINISTRATOR, REGISTRAR TRUSTEE

& TRANSFER AGENT

Northern Trust International Fund Northern Trust Fiduciary Services (Ireland) Ltd.

Administration Services (Ireland) Ltd. George’s Court

George’s Court 54 - 62 Townsend Street

54 - 62 Townsend Street Dublin 2

Dublin 2 Ireland

Ireland D02 R156

D02 R156

DISTRIBUTOR GERMAN PAYING AGENT

Atlantis Investment Management Ltd. Marcard, Stein & Co AG

2nd Floor Ballindamm 36

13 St Swithin’s Lane 20095 Hamburg

London EC4N 8AL Germany

United Kingdom

3


Management and Administration

(continued)

LISTING SPONSOR INDEPENDENT AUDITOR

Dillon Eustace Grant Thornton 33 Sir John Rogerson’s Quay Chartered Accountants and Registered Auditors

Dublin 2 24-26 City Quay

Ireland Dublin 2

Ireland

LEGAL ADVISER IN IRELAND GOVERNANCE AND MONITORING SERVICE

Dillon Eustace Bridge Consulting Ltd.

33 Sir John Rogerson’s Quay 33 Sir John Rogerson’s Quay

Dublin 2 Dublin 2

Ireland Ireland

SWEDISH PAYING AGENT SWISS PAYING AGENT

Skandinaviska Enskilda Banken AB (publ) Neue Helvetische Bank AG

Sergels Torg 2 Seefeldstrasse 215

SE-106 40 Stockholm CH-8008 Zurich

Sweden Switzerland

SWISS REPRESENTATIVE

First Independent Fund Services Ltd

Klausstrasse 33

CH-8008 Zurich

Switzerland

The prospectus, the trust deed, the key investor information documents and the annual and semi-annual reports of the

Trust may be obtained free of charge from the Swiss Representative. In respect of units distributed in Switzerland to

Qualified Investors, the place of performance and the place of jurisdiction is at the registered office of the Swiss

Representative.

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Investment Manager’s Report

Atlantis Asian Fund For the year ended 31st December 2015

Investment Comment

Atlantis Asian Fund had another resilient year. The Fund has outperformed the benchmark in six out of the seven

financial years since 2009. The Fund was down 8.9% in 2015, compared to an 11.8% decline in the MSCI Far East ex

Japan benchmark return over the same period, an outperformance of 2.9%. Since the current fund adviser took over in

April 2009, the Fund has outperformed the benchmark by 47.8%.

After two years of outperformance, emerging markets (EM) underperformed developed markets as both EM currencies

and equity markets took a hit. Although the headline MSCI indices posted double digit declines for the year, much of the

decline occurred in June and the third quarter. Prior to June, the stock markets showed strong, double digit gains due to

greater clarity that US interest rate hikes were to be pushed back while, concurrently, monetary easing by the People’s

Bank of China (PBoC) and the increased quota for the Hong Kong-Shanghai Stock Connect fuelled a rally in the Chinese

A-share markets. Coupled with an environment of lax margin financing in China, this created a large bubble in the A-

share markets. Although the Chinese authorities tried to rein in the excess in May, it was too late. Subsequent policy

missteps, like allowing voluntary suspension of A-share corporates on the stock exchange, thereby preventing domestic

funds from further selling, exacerbated the fall as punters looked to proxy markets such as Hong Kong to raise cash.

Consecutive months of negative Chinese economic data, for example continued weak PMI of below 50, lower GDP

growth and exports numbers, led investors to wonder whether China’s slowdown was due for a hard landing. The final

nail in the coffin for Chinese stock markets was when the PBoC surprised everyone with a depreciation of the Yuan in

August, and accelerated the slide in November and December. This sparked fears of a competitive devaluation in Asian

currencies, despite these having already been battered earlier in the year. That aside, global liquidity tightened with

increased fears of US interest rate hikes, something which finally began in December.

The weak oil price is helping to curb inflation, which generally remains benign in the region. However, it is a bane for

Malaysia where oil exports make up a big part of government revenue. It is therefore no surprise that the Malaysian

Ringgit was the worst performing currency in Asia, losing 22% of its value in 2015. The mystery surrounding what is

said to be nearly US$1billion of missing assets in the state sponsored investment fund 1Malaysia Development Bhd. also

contributed to the currency’s slump.

The Fund’s outperformance in 2015 was due to our underweight in Malaysia, Taiwan and Korea and to our overweight in

Vietnam. In terms of stock selection, ASEAN and select Chinese stocks also added value.

Outlook and Strategy

We believe that the China slowdown presents the greatest challenge to global growth and to Asian equities for 2016. We

expect further easing and depreciation in the renminbi to boost Chinese competitiveness. We do not expect an escalating

currency war as ASEAN had largely already reacted prior to the devaluation of the Chinese Yuan.

In terms of valuation, China and Indonesia stocks look cheap. However, we see Indonesia as the better valued market as

its currency has already adjusted and, with some monetary easing on the way and government infrastructure spending

having recommenced at the end of 2015, we think that its stock market is well positioned for a re-rating.

Atlantis Investment Management (Hong Kong) Limited

January 2016

5



Atlantis China Fund For the year ended 31st December 2015

Market Review and Performance

For the year ended 31st December 2015, the Fund delivered a return of +17.7% for 2015, which outperformed the MSCI

China Free Index by 27.7%. We at Atlantis feel we have proved once more that our strategy of investing into China’s

most dynamic sector—P-chips—can work well even over a remarkably difficult year.

2015 posed challenges unprecedented in the history of the Chinese stock markets. A rally that had begun in earnest in

June of 2014, buoyed by upbeat data, including news of the ascendency of the yuan to a status among the world’s top five

payment currencies, ended with a thud in June 2015. In August, the markets experienced Black Monday, where the

Shanghai index lost 8.49%, only to be followed by Black Tuesday, when the market spiralled down an additional 7%.

Losses were precipitated and worsened by the panic selling of overleveraged margin buyers, often individual Chinese of

moderate means who had entered the market during its upswing and who found themselves deep underwater when

fortunes shifted.

Chinese officials responded with a variety of measures to the sudden downturn, including sharply tightening margin-

lending rules. Institutions and mutual funds pledged to buy shares to support the market. Short-selling was severely

limited, and violators could face arrest, along with parties found to be spreading rumors. Initial Public Offerings were

halted. In July, the China Securities Regulatory Commission (CSRC) imposed a six-month lockup on sales by investors

who held 5 percent or more of a company’s stock.

In spite of the difficulties, we saw policies pursued in 2015 that will uplift the economy over the longer term. These

include the ongoing anti-corruption drive, as well as comprehensive reforms that look to complete China’s transformation

to a developed economy with a new growth model. The market is in a shift from one driven by manufacturing and

investment to one whose drivers are domestic consumption and more research-and-development rich industries, to

include green energy and technology, higher up the value chain. The nation is enhancing global connections with the

opening of the Shanghai-Hong Kong Stock Connect, to be followed in the New Year by the Shenzhen-Hong Kong Stock

Connect, and the approval of cross-border mutual fund sales between the Mainland and Hong Kong. China’s reach

extended outwards, as well, with the ‘One Belt, One Road’ scheme, that will enhance trade and relations with partners in

Central Asia, the ASEAN countries and in Europe. And, although it finished the year down 4% against the dollar as the

PBoC eased monetary policy, the yuan cemented its claim to being among the globe’s top currencies in the year, being

designated by the International Monetary Fund (IMF) in November a Main World Currency and added to the IMF’s

Special Drawing Rights reserve mechanism.

As at the end of December, the Fund has delivered a cumulative return of 542.9% since its inception in March 2003,

outperforming the MSCI China Free Index by 225.2% over that period. The Fund held 25 names, of which the top 5

names accounted for 38%, and the top 10 accounted for 62%. As discussed, our consistent overweight in P-chips

contributed to the Fund’s solid performance in 2015, and that bias will be carried forward into 2016.


All equity markets are prone to boom and bust cycles, and we experienced an extreme one in July. We expect in the

medium to long term that China will continue to gradually open up its capital account, deepen financial market reforms

and allow for a bigger role for the private sector. A slew of measures to revive China’s economy was announced after

Beijing’s annual Central Economic Work Conference held in December. The government pledged to adopt more

“proactive” fiscal policy and “flexible” monetary policy in 2016, aiming to cut excess production capacity, work off

unsold inventory in the property market and reduce business operating costs by lowering corporate taxes and social

welfare fees. These measures focused on supply side reform, as the government admitted that many of the most in-

demand products and services in China, especially in education and healthcare, are in short supply. As such, like the

supply side reforms of Ronald Reagan and Margaret Thatcher in the US and UK 30 years ago, Beijing has promised to

cut red tape and lower administrative taxes. Further, the government will help rural residents buy properties in towns and

cities, and urge property developers to cut prices. Restrictions on buying homes would be revoked, and both individuals

and companies would be encouraged to buy vacant flats and then lease them out. To accommodate these measures, the

fiscal deficit ratio will be raised gradually. For monetary policy, market consensus predicts that the PBoC will cut its

benchmark interest rate twice in 2016.

6



Atlantis China Fund For the year ended 31st December 2015

(continued) Outlook and Strategy (continued)

In the Chinese Zodiac, 2016 will be the year of the fire monkey, which is supposed to bring high volatility risks to

business and the economy. Taking heed of this celestial message suggests that one will benefit from thinking twice before

leaping. 2016-2020 will be a critical period for China’s economic transition. Respite will not come soon, as it will take

years for China to digest the overcapacity and debt it built up in the construction and investment boom since the global

financial crisis. In the long term, the pursuit of innovation, spurred by R&D prowess, will play a critical role in increasing

China’s multi-factor productivity to build up its global competitiveness in innovation-heavy sectors. Beyond that,

consumption and services will continue to grow in importance, replacing investment and manufacturing as the catalyst for

long term growth. In the near to medium term, urbanisation matters, suggesting infrastructure investment growth may

continue to stay resilient.

While we are clearly experiencing great volatility, globally, in the start of this year, we believe that the Chinese

government will solve the problems in the country’s stock markets. The sentiment towards China has gone far beyond

fundamental logic, in that good quality stock names have currently been sold to close to their 2008 crisis levels. As

common wisdom goes, history always repeats itself, therefore, we believe that now is the time to buy China, not sell, as

the country is dedicated to making itself better and stronger.

2016 will be another year of uncertainty and opportunities. Uncertainty will likely arise from the government, as it works

to reinstill investors’ confidence and to deal with fluctuations in the stock market; meanwhile, opportunities will open up

through SOEs and the RMB’s internationalisation. We anticipate that our portfolio will continue to overweight healthcare,

TMT and consumer brand names.


January 2016

7



Atlantis China Healthcare Fund For the year ended 31st December 2015

Market Review and Performance

The Fund recorded a return of 9.3% for the year ended 31st December 2015. There is no benchmark for the Fund’s

strategy but the closest comparison is provided by the MSCI Asia ex Japan Healthcare index, up 6.2% in US dollar terms

over the period. Thus the Fund outperformed this index by 3.1%.

2015 was another policy driven year for Chinese healthcare. In particular, Premier Li Keqiang’s report at the 12th

National People’s Congress on 5th March 2015 highlighted plans for drug price reform, better expense reimbursement

(e.g. higher subsidies to medical insurance and more trials of major disease medical insurance) and further hospital

reform. These included implementing zero mark-up policies at all county level and selected trial city-level public

hospitals, establishing a merits-based pay system for physicians, prioritising hospitals’ use of domestic over imported

medical devices, maintaining the basic insurance coverage rate for >95% population and targeting private hospitals to

account for 20% of hospital beds and patient visits. We have every confidence that these milestones will contribute to the

continued growth of the sector in the coming few years.

The sector performed well on the back of this continued government focus and our Fund rallied following a quiet January

and February. While the industry was somewhat soft at the beginning of the year, mainly due to the results from

preliminary drug tendering processes in Hunan and Zhejiang provinces and concerns over upcoming tenders, we

expressed our belief at the time that the apparent pricing pressures may have been overstated. We thought that a sector

recovery could be led by strong upcoming annual results. Having witnessed a previous correction for similar reasons in

2011, lasting around three months but then rebounding sharply, we anticipated that a recovery may occur around early

March. Indeed, we were proved correct when the Fund rallied with a positive return of 9.7% in March and gained a

further 10.79% in the remainder of the second quarter. As in the second quarter, more major developments were observed

within the industry, including the Five-Year Plan for Traditional Chinese Medicine (TCM) and the “Made in China 2025”

plan.

The third quarter was tumultuous however. Healthcare stocks slid alongside the broader Chinese equity markets. We

foresaw that the markets would become more volatile as they began to overheat from excessive margin financing.

Nonetheless, the correction came faster and sharper than anyone expected. Unlike previous corrections, many healthcare

stock prices did not prove to be defensive. We believe this was because overall investment sentiment predominated in this

round of selling. Investors are typically not selective when panic selling. Further, as healthcare was one of the top

performing sectors during the rally, many stocks were an easy target for profit taking. From an earnings standpoint

however, the sector showed its resilience, with most names, especially market leaders, delivering solid interim results

with an average net profit growth of over 20%, an outlier relative to other industries. Underpinned by these solid

fundamentals and further government reforms in the second half to improve hospital coverage and streamline the drug

approval process, the sector began to recover in September and continued to do so into the fourth quarter.

Despite the correction, our long term positive view on the Chinese healthcare industry remains unchanged. Overall, the

market is shifting away from traditional active pharmaceutical ingredients, generic products and public services

dominating the market, towards a higher quality product and service-oriented market driven by R&D and innovation, new

business models and advanced technologies. We see multi-nationals and domestic companies focused on R&D as leading

this shift.

The Fund managed to deliver a solid result in one of the most challenging years in the history of Chinese stock markets,

up 9.3%, outperforming the MSCI China Free Index (-10.0%) by 19.3%. The Fund has outperformed the MSCI China

Free Index for four consecutive years. Despite increased market volatility, we remain upbeat about the long term high

growth outlook and defensive nature of the Chinese healthcare sector. Chinese healthcare is on its way to becoming one

of China’s pillar industries and the success of this sector is a national priority.

The Fund held 21 names at the end of 2015 with 68.3% in Hong Kong listed names, 30.5% in A-shares, and net cash at

1.2%.

8



Atlantis China Healthcare Fund For the year ended 31st December 2015

(continued)


In our view, the Chinese healthcare industry is at an inflection point of systematic shift towards a more market-driven

system. With favourable demographic trends and the relaxation of the one-child policy, we believe that the industry is

poised for a long term growth cycle. Moreover, we see the emergence of derivative services from healthcare and new

technologies in the areas of mobile health, internet and genomics. We think these will drive new business models and

expand the breadth of healthcare services, increasing patient access and ultimately resulting in better industry growth. We

believe product-driven pricing power is becoming increasingly critical to maintaining earnings sustainability for the

coming year. We prefer companies: 1) with major new products launched for the tender cycle; 2) strong R&D capability

to outperform peers amid raised standards for drug approval in China; and 3) with M&A/external collaboration capability.

As drug pricing pressures and controls over insurance reimbursement will likely continue or even intensify in 2016,

China's healthcare sector will likely undergo some consolidation. The drug manufacturing sub-sector, which is set to

slowdown this year, looks especially ripe. The first half of 2016 will see around 20 provinces deliver and implement new

drug tender results. Drug price cuts will therefore likely occur in a more concentrated manner than previously. We expect

the impact of lower drug prices on companies’ financial results to materialise in 2016 (a partial-year impact) and 2017

(full-year impact). However, we believe that the leading companies will ultimately emerge stronger from this transition

through: i) cost-savings in the near term, ii) consolidation in the medium term and iii) innovation in the long term.

Although sector growth may continue to slow, we believe that innovation will help the leading companies stand out as

they have been consistently spending on R&D and backing government reform.

Overall, we remain optimistic for the coming years due to continued healthy demand growth, favourable government

reform and the beneficial effects of industry consolidation and innovation.


January 2016

9



Atlantis Japan Opportunities Fund For the year ended 31st December 2015

Investment Comment

Looking back over the year it seems like a wild ride on a roller coaster with lots of ups and downs. After a weak opening

in January, the Tokyo Market moved higher peaking in August and then moving lower until late September, showing

good recovery in October through early December, declining and then moving higher with the TOPIX up 9.03% for the

year. Due in part to some success in stock picking, the Fund ended the year with a gain of 21.99%. Note all figures are

calculated on a simple return basis and in US dollars.

Since we are not traders, our time horizon is usually several years and we continue to believe that our stocks will, as they

have in the past, outperform the market over the medium to longer term but will of course have both good and bad years;

hopefully more good than bad. Since inception in October of 2003, the Fund is up 164.1% versus a gain of 29.4% for the

TOPIX.

The Fund has no exposure to bonds, convertible bonds or derivatives of any kind and excluding cash is invested entirely

in listed Japanese equities. On 30th December, the last trading day of the year, the yen closed at JPY120.48 to the US

dollar, a loss of 0.89% from JPY119.42, the 2014 year end rate. As of the end of the year, cash accounted for about 1.7%

of NAV.

Portfolio Activity

At the end of 2015, the Fund held 51 stocks, compared to 45 stocks at the end of 2014.

The Fund is now overweight in the following sectors: Services, Precision Instruments, Electrical Machinery and

Wholesale, and has little exposure to heavy industry such as Iron & Steel, Chemicals, Construction, Electric Power & Gas,

Foods, Transportation & Equipment, etc.

We do have some exposure to some of the bigger stocks such as Mitsubishi UFJ Finance, NIDEC, Keyence, Denso,

Fanuc and Mitsubishi Estate.

However, we have continued to hold primarily medium sized and smaller companies which are mostly involved in

domestic operations including service, technology, logistics, health care, real estate, software, electronics and retailing.

Major sales during the last year included: Japan Property Management, Gakujo, Obara Group, Topcon, Mimaki

Engineering. Some of our major purchases included: FPG, Kura, Tera Probe, Benefit One.


The economic recovery has continued but at a slower than expected pace, with the biggest disappointments coming from

exports and domestic private capital investments. Also, consumer spending has been somewhat sluggish, perhaps due to

warmer than usual autumn and winter weather. The government has continued to pump money into the economy, with the

monetary base up over 32% year on year. Current monetary and fiscal policy remains unchanged and unemployment is at

the lowest level in years. The bankruptcy rate recently dropped to a 25 year low. December bonuses were up and we

expect some wage hikes this spring. Many companies are aggressively hiring new graduates. The pace of recovery may

have slowed but will hopefully improve over the next few quarters and we think GDP growth for the year ending March

2017 is likely to reach something around 1.5% or higher. We also project a climb of 10-15% in corporate earnings for the

same period. There are some clouds on the horizon including the slow recovery in exports, a stronger yen, the delayed

recovery in private capital investments, slower than expected economic growth in China and parts of Southeast Asia, and

weak overseas stock markets including New York and China. A slowing world economy and weaker than expected

economic growth in the US and Europe could hold down the projected Japanese economic recovery.

Despite these possible negatives, we remain cautiously optimistic on the Tokyo Stock Market’s outlook for 2016. Some

domestic investors, including domestic institutional investors, the Bank of Japan, corporations and even local individuals

were net buyers in some weeks and months in 2015 and are expected to remain mostly on the buy side in 2016. However,

investors will continue to be influenced by the yen/dollar rate, the world economy and major stock markets including

China and New York, the trend of corporate earnings and geopolitical events.

10



Atlantis Japan Opportunities Fund For the year ended 31st December 2015

(continued)

Outlook and Strategy (continued)

Valuations look reasonable to attractive in terms of estimated PER, PBR and dividend yields versus government bond

yields. We are encouraged by the fact that we can still find many attractive companies that are growing sales and earnings,

have attractive valuations, improving operating profit margins, positive free cash flow and rising dividends.

Volatile markets can at times cause investors to overreact and we will make every effort to stay the course and not get

caught up in short term manias. We will continue to place stress on value and growth, admit mistakes, even if it means

taking a loss, and try not to get discouraged by short term corrections, which can often present buying opportunities if one

can take a long term view.


January 2016

11


Statement of Managers’ Responsibilities

The Manager is responsible for preparing the Annual Report and the Trust's financial statements, in accordance with

applicable law and regulations.

Irish law requires the Manager of the Trust to prepare financial statements for each financial year. Under that law the

Manager has elected to prepare the financial statements in accordance with IFRS as adopted by the EU.

The Trust’s financial statements are required by law and IFRS as adopted by the EU to present fairly the financial

position and performance of the Trust. The Unit Trusts Act, 1990 provides in relation to such financial statements

that references in the relevant parts of this Act to financial statements giving a true and fair view are references to

their achieving a fair presentation.

The financial statements are required by law to give a true and fair view of the state of affairs of the Trust and of the

profit or loss for that period.

In preparing the financial statements, the Manager is required to:

- select suitable accounting policies and then apply them consistently;

- makes judgements and estimates that are reasonable and prudent; and

- prepares the financial statements on the going concern basis unless it is inappropriate to presume that the

Trust will continue in operation.

The Manager is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any

time the position of the Trust and enable it to ensure that the financial statements comply with the Unit Trusts Act,

1990 and the European Communities (Undertakings for Collective Investments in Transferable Securities) Regulations,

2011 (as amended) (“UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))

(Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the "Central Bank UCITS

Regulations"). The Manager is responsible for safeguarding the assets of the Trust. The Manager has entrusted the

assets of the Trust to a Trustee, Northern Trust Fiduciary Services Ireland Limited, for safe-keeping. The Manager

has general responsibility for taking such steps as are reasonably open to them to prevent and detect fraud and other

irregularities.

On 14th December 2011, Irish Funds (“IF”) published a corporate governance code that may be adopted on a voluntary

basis by Irish authorised collective investment schemes.The Trust has adopted the IF Corporate Governance Code and

all elements have been complied with for the financial year ended 31st December 2015.

Any transaction carried out with a UCITS by a management company or Trustee to the UCITS, the delegates or sub-

delegates of the Manager or Trustee, and any associated or group of such a Manager, Trustee, delegate or sub-

delegate (“connected persons”) must be carried out as if negotiated at arm’s length. Transactions must be in the best

interests of the unitholders.

The Directors of the Manager are satisfied that there are arrangements (evidenced by written procedures) in place, to

ensure that the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations are applied to all

transactions with connected persons, and are satisfied that transactions with connected parties entered into during the

year complied with the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations.

15


Atlantis Asian Fund

Schedule of Investments As at 31st December 2015

Fair Value % of

Holdings Financial assets at fair value through profit or loss Currency US$ Net Assets

Equities: 99.74% (2014: 91.87% )

Basic Materials: (2014: 4.01% )

63,000 Jindal Steel & Power INR 91,658 0.68

500,000 Terratech SGD 21,222 0.16

1,388,000 Xingda International HKD 282,938 2.11

Total Basic Materials 395,818 2.95

Communications: (2014: 4.41% )

738,000 Indosat IDR 294,450 2.19

888,000 O-Net Communications HKD 281,834 2.10

188,000 Total Access Communication THB 158,038 1.18

Total Communications 734,322 5.47

Consumer, Cyclical: (2014: 20.70% )

488,000 Bloomberry Resorts PHP 47,084 0.35

2,888,000 Boshiwa International* HKD - -

18,000 City Developments SGD 97,411 0.73

788,000 Dah Chong Hong HKD 397,510 2.96

2,225,900 Electronic City Indonesia IDR 137,252 1.02

8,880,000 Emperor Watch & Jewellery HKD 221,113 1.65

4,088,000 Erajaya Swasembada IDR 161,622 1.20

488,000 GMM Grammy THB 120,695 0.90

118,000 Li & Fung HKD 80,230 0.60

1,888 Lotte Shopping Class C KRW 374,364 2.79

2,388,000 Maoye International HKD 280,363 2.09

2,063,000 Mitra Pinasthika Mustika IDR 73,182 0.55

1,688,000 Parkson Retail HKD 219,958 1.64

5,388,000 Ramayana Lestari Sentosa IDR 252,104 1.88

398,000 Shangri-La Asia HKD 388,708 2.90

688,000 Thai Airways International THB 175,896 1.31

Total Consumer, Cyclical 3,027,492 22.57

16


Atlantis Asian Fund

Schedule of Investments (continued) As at 31st December 2015

Fair Value % of


Equities: 99.74% (2014: 91.87% ) (continued)

Consumer, Non-cyclical: (2014: 6.28% )

10,888,000 Adi Sarana Armada IDR 78,984 0.59

688,400 China Agri-Industries HKD 236,248 1.76

74,511 IL&FS Transportation Networks INR 95,847 0.71

188,000 Kinh Do VND 203,175 1.51

288,000 Malee Sampran THB 228,095 1.70

Total Consumer, Non-cyclical 842,349 6.27

Consumer Services: (2014: 0:00% )

188,880 Chennai Super Kings Cricket INR 6,424 0.05

Total Consumer Services 6,424 0.05

Diversified: (2014: 0.00% )

245,649 NWS Holdings HKD 367,636 2.74

Total Diversified 367,636 2.74

Energy: (2014: 5.22% )

237,600 Gcl-Poly Energy Rights HKD 1,226 0.01

1,188,000 Esso Thailand THB 165,069 1.23

1,188,000 GCL-Poly Energy HKD 177,795 1.32

2,188 OCI KRW 139,951 1.04

238,000 PetroChina HKD 155,986 1.16

Total Energy 640,027 4.76

Financial: (2014: 10.32% )

9,888,000 Metropolitan Land IDR 154,220 1.15

2,688,000 Minmetals Land HKD 312,117 2.32

288,530 NBB Investment VND 269,474 2.01

3,188,000 Pembangunan Jaya Ancol IDR 468,313 3.49

888,000 Poly Property HKD 289,854 2.16

288,800 Thuduc Housing Development VND 177,249 1.32

Total Financial 1,671,227 12.45

Industrial: (2014: 22.71% )

428,000 Beijing Capital International Airport HKD 462,183 3.44

6,888,000 Berlian Laju Tanker** SGD - -

1,688,000 China Automation HKD 187,291 1.39

1,688,000 Holcim Indonesia IDR 121,840 0.91

188,880 India Cements INR 276,512 2.06

17


Atlantis Asian Fund


Fair Value % of



Industrial: (2014: 22.71% )

44,888 Lumens KRW 164,040 1.22

188,000 Merry Electronics TWD 335,397 2.50

388,000 Neptune Orient Lines /Singapore SGD 337,606 2.51

1,188,000 Salcon MYR 171,552 1.28

2,088,000 Sinotrans Shipping HKD 412,161 3.07

13,880 Sung Kwang Bend KRW 102,394 0.76

1,888,000 TCC International HKD 348,324 2.59

1,688,000 Tianjin Port Development HKD 280,936 2.09

63,000 TPK TWD 158,234 1.18

168,000 Unimicron Technology TWD 71,349 0.53

538,000 Zoomlion Heavy Industry Science and Technology HKD 200,597 1.49

Total Industrial 3,630,416 27.02

Technology: (2014: 17.71% )

688,000 Compal Electronics TWD 387,494 2.89

3,388,000 Comtec Solar Systems HKD 301,604 2.25

128,000 Epistar TWD 99,370 0.74

1,038,000 Innovalues SGD 583,765 4.35

688,000 Kingdee International Software HKD 315,997 2.35

16,888 Seoul Semiconductor KRW 226,124 1.68

388,000 Tian Ge Interactive HKD 161,689 1.20

Total Technology 2,076,043 15.46

Utilities: (2014: 0.51% ) - -

Total Equities 13,391,754 99.74

Total Value of Investments 13,391,754 99.74

Cash 71,502 0.53

Other Net Liabilities (36,486) (0.27)

Net Assets Attributable to Holders of Redeemable

Participating Shares 13,426,770 100.00

Analysis of portfolio % of

Assets

99.41

Other Assets 0.59

100.00

*Trading is suspended and value was written down to zero on 15 July 2014.

**Trading is suspended and value was written down to zero on 21 November 2013.

Transferable securities admitted to an official stock exchange listing or

traded on a regulated market

18


Atlantis China Fund


Fair Value % of


Equities: 86.10% (2014: 93.77% )

Basic Materials: 0.00% (2014: 0.00% )

9,527,000 Qunxing Paper* HKD - -

Total Basic Materials - -

Communications: (2014: 4.81% )

90,000,000 China E-Learning HKD 3,483,444 4.21

30,000,000 Fortunet e-Commerce HKD 3,754,379 4.54

15,000,000 Media Asia HKD 1,180,500 1.43

Total Communications 8,418,323 10.18

Consumer, Cyclical: (2014: 3.45% )

8,800,000 C.banner International HKD 4,007,767 4.85

30,000,000 China LotSynergy HKD 1,412,730 1.71

5,000,000 JC HKD 4,025,313 4.87

60,003,000 O Luxe Holdings HKD 1,857,930 2.24


Consumer, Non-cyclical: (2014: 22.84% )

15,000,401 Brilliant Circle International HKD 3,348,066 4.05

35,002,716 Golden Meditech HKD 5,644,907 6.83

10,000,000 Hua Han Bio-Pharmaceutical HKD 1,393,378 1.68

12,000,000 Ming Fai International HKD 1,254,040 1.52

40,000,000 Silver Base HKD 5,986,363 7.24

12,000,000 Tibet 5100 Water Resources HKD 4,505,254 5.45

Total Consumer, Non-cyclical 22,132,008 26.77

Financial: (2014: 18.45% )

5,000,000 China CDM Exchange Centre** GBP - -

20,000,000 China Sandi HKD 1,315,968 1.59

22,000,000 eSun HKD 1,844,935 2.23

70,000,000 Renhe Commercial HKD 3,251,214 3.93

18,000,000 Silver Grant International HKD 2,391,965 2.89


19


Atlantis China Fund


Fair Value % of



Industrial: (2014: 30.82% )

30,000,000 China Huarong Energy HKD 944,400 1.14

16,118,346 China Metal Recycling† HKD - -

13,000,000 China Water Affairs HKD 6,239,236 7.55

3,500,000 Nanjing Sample Technology HKD 7,522,949 9.10

9,440,000 Sino Credit HKD 2,106,993 2.55


Technology: (2014: 10.01% )

9,000,000 Chinasoft International HKD 3,727,285 4.51


Utilities: (2014: 3.39% )


Structured Products: (2014: 4.86% )

600,082 Nantong Jinghua Pharmaceutical (Citigroup Global Markets) 12/02/2016 USD 3,576,317 4.32

600,000 Nanjing Xinjiekou (Credit Suisse AG (Nassau) Branch) 04/05/2020 USD 3,467,722 4.19

400,000 Nantong Jinghua Pharmaceutical -A (CICC Financial Products) 28/01/2018 USD 2,383,886 2.88

500,060 Searainbow Holdings (CLSA Financial Products) 25/11/2019 USD 2,579,002 3.12

Total Structured Products 12,006,927 14.51


Cash 198,361 0.24



Participating Shares 82,689,644 100.00

Analysis of portfolio % of Total

Assets

Transferable securities admitted to an official stock exchange

listing or traded on a regulated market 99.54

Other Assets 0.46

100.00

*Trading is suspended and value was written down to zero on 30 May 2014.

**Value was written down to zero on 28 March 2012.

†Listing of company was cancelled on 4 Feburary 2016.

20


Atlantis China Healthcare Fund


Fair Value % of


Equities (2014: 68.70% )

Communications (2014: 5.18% )

100,000,000 China E-Learning HKD 3,870,493 4.47


Consumer, Cyclical (2014: 0.00% )

9,000,000 C.banner International HKD 4,098,852 4.74

6,000,000 JC HKD 4,830,376 5.58


Consumer, Non-cyclical (2014: 55.76% )

3,277,500 Bloomage Biotechnology HKD 8,118,747 9.38

5,000,000 China Medical System HKD 7,366,839 8.51

19,000,000 China NT Pharma HKD 6,177,307 7.14

51,022,172 Golden Meditech HKD 8,228,374 9.50

26,000,000 Hua Han Bio-Pharmaceutical HKD 3,622,782 4.19

12,000,000 PW Medtech HKD 2,864,165 3.31

3,813,000 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical HKD 4,102,777 4.74

500,000 YiChang HEC ChangJiang Pharmaceutical HKD 966,333 1.12


Diversified (2014: 0.94% )

50,000,000 China Wah Yan Healthcare HKD 812,804 0.94

Total Industrial 812,804 0.94

Industrial (2014: 2.23% )

8,520,000 China Water Affairs HKD 4,089,099 4.72


Technology (2014: 4.59% )


21




Fair Value % of


Structured Products (2014: 29.23% )

600,000 Nantong Jinghua Pharmaceuticals (Goldman Sachs)13/06/2016 USD 3,575,828 4.13

660,050 Nantong Jinghua Pharmaceuticals -A (CICC Financial Trading Limited)

28/01/2018

USD 3,933,709 4.55

300,000 Ringpu Biotech (Credit Suisse Nassau) 10/07/2020 USD 928,607 1.07

500,000 Searainbow Holdings -A (Credit Suisse AG (Nassau) Branch) 19/06/2019 USD 2,578,693 2.98

450,081 Shanghai Fosun -A (Macquarie Bank) 29/03/2017 USD 1,628,127 1.88

220,000 Shanghai Kehua Bio-Engineering -A (UBS) 16/06/2016 USD 985,894 1.14

440,152 Shinva Medical Instrument (UBS) 25/09/2018 USD 2,462,536 2.85

1,150,000 Tianjin Ringpu -A (Citigroup) 17/01/2017 USD 3,559,658 4.11

50,072 Tibet Rhodiola Pharmaceuticals -A (BOCI Financial Products) 28/11/2016 USD 337,587 0.39

349,988 Tibet Rhodiola Pharmaceuticals -A (BOCI Financial Products) 31/08/2016 USD 2,359,626 2.73

100,079 Tibet Rhodiola Pharmaceuticals -A (BOCI Financial Products) 31/08/2016 USD 674,735 0.78

300,171 Yunnan Baiyao (CLSA Financial Products) 02/09/2019 USD 3,356,908 3.88

Total Structured Products 26,381,908 30.49


Cash 2,421,696 2.80

Other Net Assets (1,409,512) (1.63)


Participating Shares. 86,543,040 100.00

Analysis of portfolio (unaudited) % of Total

Assets

Transferable securities admitted to an official stock

exchange listing or traded on a regulated market 96.23

Other Assets 3.77

100.00

22


Atlantis Japan Opportunities Fund


Fair Value % of


Equities (2014: 98.88% )

Communications (2014: 6.93% )

8,000 Hikari Tsushin JPY 547,809 1.54

40,000 Istyle JPY 713,811 2.00

27,000 M3 JPY 565,189 1.58

25,000 Start Today JPY 815,488 2.29

65,000 Tow JPY 368,484 1.03


Consumer, Cyclical (2014: 10.30% )

30,000 Ai JPY 766,932 2.15

11,000 Denso JPY 531,192 1.49

40,000 Doshisha JPY 810,093 2.27

20,000 Kura JPY 807,603 2.26

28,000 Nippon Gas JPY 693,028 1.94

22,000 Nippon View Hotel JPY 341,102 0.96

20,000 Toridoll.corp JPY 369,190 1.03

15,000 Trusco Nakayama JPY 588,272 1.65

20,000 Valor JPY 473,938 1.33

42,000 Yonex JPY 1,082,420 3.03


Consumer, Non-cyclical (2014: 28.19% )

15,000 Ajis JPY 460,657 1.29

32,000 Asahi Intecc JPY 1,484,728 4.16

30,000 Benefit One JPY 708,665 1.99

60,000 CYBERDYNE JPY 1,018,924 2.86

50,400 Funai Soken JPY 722,869 2.03

25,000 Hito Communications JPY 601,760 1.69

16,000 Kanamoto JPY 408,367 1.14

12,600 Kyoritsu Maintenance JPY 1,089,741 3.05

31,000 Nihon M&A Center JPY 1,507,802 4.23

24,000 PeptiDream JPY 771,912 2.16

60,000 S-Pool JPY 419,323 1.17

25,000 Tanabe Management Consulting JPY 261,454 0.73


23




Fair Value % of


Equities (2014: 98.88% ) (continued)

Financial (2014: 13.75% )

40,000 Anicom JPY 1,080,678 3.02

90,000 Financial Products JPY 714,144 2.00

21,000 Hitachi Capital JPY 570,842 1.60

30,000 House Do JPY 545,319 1.53

25,000 Mitsubishi Estate JPY 523,635 1.47

80,000 Mitsubishi UFJ Financial JPY 502,722 1.41

110,000 Mitsubishi UFJ Lease & Finance JPY 573,373 1.61

14,200 Sumitomo Mitsui Financial JPY 542,872 1.52


Industrial (2014: 33.98% )

50,000 Daifuku JPY 861,139 2.41

2,800 FANUC JPY 489,907 1.37

1,500 Keyence JPY 835,159 2.34

45,000 Macnica Fuji Electronics JPY 600,971 1.68

12,400 Nagaoka International JPY 123,403 0.35

16,000 Nidec JPY 1,173,572 3.28

40,000 Nippon Concept JPY 353,918 0.99

65,000 Nittoku Engineering JPY 620,435 1.74

45,000 SBS JPY 353,710 0.99

25,000 Tadano JPY 306,275 0.86

60,000 Torex Semiconductor JPY 812,251 2.28

52,000 W-Scope JPY 1,942,231 5.44


Technology (2014: 5.73% )

140,000 Fusion Partners JPY 624,004 1.75

45,000 Japan Material JPY 940,862 2.64

75,000 Nippon Systemware JPY 594,497 1.67

50,000 Tera Probe JPY 490,538 1.37



24





Cash 727,385 2.04



Participating Shares. 35,687,401 100.00

Analysis of portfolio (unaudited)

Transferable securities admitted to an official stock exchange

listing or traded on a regulated market 97.33

Other Assets 2.67

100.00

% of Total

Assets

25


Statement of Financial Position As at 31st December 2015

Atlantis Atlantis

Atlantis Atlantis China Japan

Asian China Healthcare O pportunities

Fund Fund Fund Fund

Assets Notes US$ US$ US$ US$

Financial assets at fair value through profit or loss:

-Transferable securities 5, 7 13,391,754 83,205,943 85,530,856 35,107,210

Amounts receivable on sale of investments - 90,805 791,126 182,413

Amounts receivable on units issued 33 - 1,990 -

Cash 10 71,502 198,361 2,421,696 727,385

Dividend and bank interest receivable 2 5,226 85,151 129,274 50,540

Sundry debtors 2,461 6,471 5,861 3,476

Total assets 13,470,976 83,586,731 88,880,803 36,071,024

Liabilities

Payable for investments purchased - - - 295,755

Management fees 3, 4 15,032 120,386 79,937 42,948

Administration fees 3, 4 4,860 27,317 39,983 11,993

Trustee fees 3, 4 1,676 24,231 28,686 6,047

Performance fees 3, 4 - - 1,474,508 -

Bank interest payable 47 - 105 -

Other payables 22,591 725,153 714,544 26,880

Total liabilities (excluding net assets

attributable to holders of redeemable units) 44,206 897,087 2,337,763 383,623

NET ASSETS ATTRIBUTABLE TO HO LDERS O F REDEEMABLE UNITS 13,426,770 82,689,644 86,543,040 35,687,401

REDEEMABLE UNITS IN ISSUE

US Dollar Class $ 12 1,945,282 10,604,717 40,957,953 8,948,073

Euro Class € 12 1,211 - - 156,150

Sterling Class £ 12 528 - - 183,013

US Dollar Class D $ 12 1,044 - - -

NET ASSET VALUE PER REDEEMABLE UNIT

US Dollar Class $ 14 6.88 7.80 2.11 2.64

Euro Class € 14 13.09 - - 33.40

Sterling Class £ 14 15.07 - - 37.38

US Dollar Class D $ 14 10.93 - - -

The Statement of Financial Position is continued on page 26.

The accompanying notes form an integral part of these financial statements

26


Statement of Financial Position (continued) As at 31st December 2014

Atlantis Atlantis



Fund Fund Fund Fund




Amounts receivable on sale of investments 274,111 494,304 631,795 130,514

Cash 10 1,239,811 1,582,796 5,138,775 406,664


Sundry debtors 2,797 8,015 7,915 3,346

Total assets 18,033,801 128,788,013 144,815,227 28,215,159

Liabilities

Payable for investments purchased - - 1,801,924 131,782

Amounts payable on units redeemed - - - 68,192

Management fees 3, 4 19,587 196,397 127,375 35,730

Administration fees 3, 4 17,099 74,934 84,235 15,752

Trustee fees 3, 4 3,413 23,659 25,726 5,333

Bank interest payable 16 6 - -

Other payables 19,310 120,189 815,327 19,707


attributable to holders of redeemable units) 59,425 415,185 2,854,587 276,496



US Dollar Class $ 12 2,393,733 19,589,961 73,809,739 9,420,972

Euro Class € 12 1,207 - - 80,000

Sterling Class £ 12 519 - - 176,679



US Dollar Class $ 14 7.49 6.55 1.92 2.16

Euro Class € 14 11.78 - - 22.50

Sterling Class £ 14 10.55 - - 19.72


The Statement of Financial Position is continued on page 27.


27


Statement of Financial Position (continued) As at 1st January 2014

Atlantis Atlantis



Fund Fund Fund Fund




Amounts receivable on sale of investments - - 747,446 246,215

Amounts receivable on units issued - - 15,090 -

Cash 125,300 13,099 674,705 930,960


Sundry debtors 7,296 14,671 7,998 4,660

Total assets 20,494,146 177,870,339 95,489,209 25,431,120

Liabilities

Bank overdraft - 1,599,580 - -

Payable for investments purchased - - - 260,777

Amounts payable on units redeemed - - - 21,510

Management fees 3 21,578 250,480 85,649 70,680

Administration fees 3 29,632 209,436 106,996 31,890

Trustee fees 3 19,699 82,875 51,596 23,106

Performance fees 3 - - 3,122,726 -

Bank interest payable 3 1,363 1,589 -

Other payables 32,838 122,973 876,690 29,639


attributable to holders of redeemable units)103,750 2,266,707 4,245,246 437,602



US Dollar Class $ 12 2,839,585 26,540,469 50,622,476 8,658,334

Euro Class € 12 1,205 - - 155,500

Sterling Class £ 12 513 - - 31,800



US Dollar Class $ 14 7.17 6.62 1.80 2.26

Euro Class € 14 9.93 - - 20.75

Sterling Class £ 14 9.50 - - 19.30


The financial statements on pages 25 to 60 were approved by the Directors of Atlantis Investment Management (Ireland) Limited on 12th April 2016 and signed on its behalf by:

David Dillon } Paul McNaughton } Directors


cah17

Stamp

28


Statement of Comprehensive Income For the year ended 31st December 2015

Atlantis Atlantis



Fund Fund Fund Fund

Income Notes US$ US$ US$ US$

Investment income 2 341,040 1,992,205 829,367 360,148

Bank interest income 2 2,709 - - -

Movement on revaluation of financial assets at fair value through profit or loss 2 (2,942,619) 44,516,882 (14,969,924) 4,943,593

Realised gain/(loss) on financial assets at fair value through profit or loss 2 2,064,500 (17,584,864) 31,905,881 1,756,731

Net loss on foreign currencies 2 (36,281) (4,813) (7,547) (21,338)

Net investment (loss)/income (570,651) 28,919,410 17,757,777 7,039,134

Expenses

Management fees 3 (256,039) (2,044,500) (1,284,526) (463,660)

Performance fee 3 - - (1,474,508) -

Administration fees 3 (38,587) (261,048) (297,211) (69,550)

Trustee fees 3 (12,862) (86,713) (95,434) (23,183)

Audit fee 19 (1,903) (8,840) (18,217) (7,522)

Transaction costs (61,405) (457,536) (382,495) (95,924)

General expenses 2 (37,177) (749,593) (77,815) (32,852)

Total operating expenses (407,973) (3,608,230) (3,630,206) (692,691)

O PERATING (EXPENSE)/INCO ME BEFO RE FINANCE CO STS (978,624) 25,311,180 14,127,571 6,346,443

Finance costs

Net income equalisation 2 (5,715) 1,112,039 1,081,476 207,364

Bank interest expense - (10,135) (17,245) (162)

Total finance costs (5,715) 1,101,904 1,064,231 207,202

(Loss)/Profit before tax (984,339) 26,413,084 15,191,802 6,553,645

Withholding tax 6 (25,250) (32,721) (6,768) (54,272)

CHANGE IN NET ASSETS ATTRIBUTABLE

TO HO LDERS O F REDEEMABLE UNITS FRO M O PERATIO NS (1,009,589) 26,380,363 15,185,034 6,499,373

NET (DEFICIT)/SURPLUS FO R THE YEAR

ATTRIBUTABLE TO HO LDERS O F

REDEEMABLE UNITS (1,009,589) 26,380,363 15,185,034 6,499,373

The Statement of Comprehensive Income is continued on page 29.

There are no recognised gains or losses arising in the period other than those dealt with in the Statement of Comprehensive Income . In arriving at the results for the year ended 31st December 2015 all amounts relate to continuing activities.


29


Statement of Comprehensive Income (continued) For the year ended 31st December 2014

Atlantis Atlantis



Fund Fund Fund Fund

Income Notes US$ US$ US$ US$

Investment income 2 381,360 1,893,567 831,458 406,540

Movement on revaluation of financial assets at fair value through profit or loss 2 187,393 25,548,186 (7,192,420) (1,922,790)

Realised gain/(loss) on financial assets at fair value through profit or loss 2 813,150 (23,656,162) 13,611,569 833,839

Net loss on foreign currencies 2 (18,409) (1,904) (2,140) (82,725)

Net investment income/(loss) 1,363,494 3,783,687 7,248,467 (765,136)

Expenses

Management fees 3 (265,562) (2,420,517) (1,088,084) (410,604)

Performance fee 3 - - (390,007) -

Administration fees 3 (54,113) (319,039) (255,287) (61,591)

Trustee fees 3 (14,548) (102,644) (81,606) (20,530)

Audit fee 19 (1,677) (10,813) (16,896) (3,697)

Transaction costs (72,611) (742,923) (383,776) (99,486)

General expenses 2 (7,731) (86,253) (69,604) (23,467)

Total operating expenses (416,242) (3,682,189) (2,285,260) (619,375)

O PERATING INCO ME/(LO SS) BEFO RE FINANCE CO STS 947,252 101,498 4,963,207 (1,384,511)

Finance costs

Net income equalisation 2 (13,059) - - 117

Bank interest expense (79) (38,580) (1,992) (45)

Total finance costs (13,138) (38,580) (1,992) 72

Profit/(loss) before tax 934,114 62,918 4,961,215 (1,384,439)

Withholding tax 6 (18,538) (27,382) (8,855) (64,676)

CHANGE IN NET ASSETS ATTRIBUTABLE

TO HO LDERS O F REDEEMABLE UNITS FRO M O PERATIO NS 915,576 35,536 4,952,360 (1,449,115)

NET SURPLUS FO R THE YEAR

ATTRIBUTABLE TO HO LDERS O F

REDEEMABLE UNITS 915,576 35,536 4,952,360 (1,449,115)

There are no recognised gains or losses arising in the period other than those dealt with in the Statement of Comprehensive Income. In arriving at the results for the year ended 31st December 2014 all amounts relate to

continuing activities.

The financial statements on pages 25 to 60 were approved by the Directors of Atlantis Investment Management (Ireland) Limited on 12th April 2016 and signed on its behalf by:

David Dillon } Paul McNaughton } Directors


cah17

Stamp

30


Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units For the year ended 31st December 2015

Atlantis Atlantis


Asian China Healthcare Opportunities

Fund Fund Fund Fund

US$ US$ US$ US$

Net Assets attributable to holders of redeemable units at 1st January 2015 17,974,376 128,372,828 141,960,640 27,938,663

Proceeds from units issued during the year 71,657 8,241,234 34,101,118 10,170,766

Payment on units redeemed during the year (3,609,674) (80,304,781) (104,703,752) (8,921,401)

Change in net assets attributable to participating unitholders from operations (1,009,589) 26,380,363 15,185,034 6,499,373

Net Assets attributable to holders of redeemable units at 31st December 2015 13,426,770 82,689,644 86,543,040 35,687,401

The Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units is continued on page 31.


31


Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units (continued) For the year ended 31st December 2014

Atlantis Atlantis



Fund Fund Fund Fund

US$ US$ US$ US$

Net Assets attributable to holders of redeemable units at 1st January 2014 20,390,396 175,603,632 91,243,963 24,993,518

Proceeds from units issued during the year 105,643 53,943,234 66,237,413 16,008,401

Payment on units redeemed during the year (3,437,239) (101,209,574) (20,473,096) (11,614,141)

Change in net assets attributable to participating unitholders from operations 915,576 35,536 4,952,360 (1,449,115)

Net Assets attributable to holders of redeemable units at 31st December 2014 17,974,376 128,372,828 141,960,640 27,938,663


32


Statement of Cash Flows

For the year ended 31st December 2015

Atlantis Atlantis



Fund Fund Fund Fund

US$ US$ US$ US$

CASH FLO WS FRO M O PERATING ACTIVITIES

Purchase of financial assets (9,023,274) (86,705,395) (98,623,295) (24,326,583)

Proceeds from sale of financial assets 11,512,426 157,077,958 168,500,106 23,515,846

Loss on foreign currencies (36,281) (4,813) (7,556) (21,338)

Dividends and interest received 317,801 1,960,902 695,527 304,825

Operating expenses paid (395,216) (2,761,579) (1,956,789) (608,758)

NET CASH INFLO W/(O UTFLO W) FRO M O PERATING ACTIVITES 2,375,456 69,567,073 68,607,993 (1,136,008)

CASH FLO WS FRO M FINANCING ACTIVITIES

Net Income Equalisation (5,715) 1,112,039 1,081,476 207,364

Proceeds from redeemable participating preference shares issued 71,624 8,241,234 32,297,204 10,170,766

Redemptions payable to shareholders (3,609,674) (80,304,781) (104,703,752) (8,921,401)

NET CASH (O UTFLO W)/INFLO W FRO M FINANCING ACTIVITES (3,543,765) (70,951,508) (71,325,072) 1,456,729

NET (DECREASE)/INCREASE IN CASH (1,168,309) (1,384,435) (2,717,079) 320,721

CASH AT BEGINNING O F THE YEAR 1,239,811 1,582,796 5,138,775 406,664

CASH AT END O F THE YEAR 71,502 198,361 2,421,696 727,385

Supplementary cash flow information

Cash flows from operating activities include:

Cash received during the year for dividend income 315,061 1,971,043 712,667 304,987

Cash received during the year for bank interest income 2,709 - - -

Cash paid during the year for interest expense 31 (10,141) (17,140) (162)

317,801 1,960,902 695,527 304,825

The Statement of Cash Flows is continued on page 33.


33


Statement of Cash Flows (continued)

For the year ended 31st December 2014

Atlantis Atlantis



Fund Fund Fund Fund

US$ US$ US$ US$

CASH FLO WS FRO M O PERATING ACTIVITIES

Purchase of financial assets (8,796,392) (91,700,859) (98,380,055) (27,059,334)

Proceeds from sale of financial assets 13,312,912 143,165,773 59,368,066 22,513,945

(Loss)/gain from forward foreign currency contracts and futures (18,358) (1,904) (2,140) (82,725)

Dividends and interest received 367,668 2,320,212 989,263 348,597

Operating expenses paid (406,664) (3,347,605) (5,092,395) (617,646)

NET CASH INFLO W/(O UTFLO W) FRO M O PERATING ACTIVITES 4,459,166 50,435,617 (43,117,261) (4,897,163)

CASH FLO WS FRO M FINANCING ACTIVITIES

Net Income Equalisation (13,059) - - (21,393)

Proceeds from redeemable participating preference shares issued 105,643 53,943,234 68,039,337 16,008,401

Redemptions payable to shareholders (3,437,239) (101,209,574) (20,458,006) (11,614,141)

NET CASH (O UTFLO W)/INFLO W FRO M FINANCING ACTIVITES (3,344,655) (47,266,340) 47,581,331 4,372,867

NET (DECREASE)/INCREASE IN CASH 1,114,511 3,169,277 4,464,070 (524,296)

CASH AT BEGINNING O F THE PERIO D 125,300 (1,586,481) 674,705 930,960

CASH AT END O F THE PERIO D 1,239,811 1,582,796 5,138,775 406,664

Supplementary cash flow information

Cash flows from operating activities include:

Cash received during the period for dividend income 370,531 2,360,149 992,844 348,642

Cash received during the period for bank interest income - - 1 -

Cash paid during the period for interest expense (66) (39,937) (3,581) (4)

370,465 2,320,212 989,264 348,638


34


Notes to the Financial Statements For the year ended 31st December 2015

1. General

Atlantis International Umbrella Fund (the “Trust”) was constituted on 10th October 2003 as an open-ended

umbrella unit trust authorised by the Central Bank of Ireland (the “Central Bank”) pursuant to the European

Communities (Undertakings for Collective Investments in Transferable Securities) Regulations, 2011 (as

amended) (“UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))

(Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the "Central Bank UCITS

Regulations"). The Trust consists of five sub-funds, of which four were in operation at the year end. The

investment objective of the sub-funds is to achieve long-term capital appreciation through an actively managed

portfolio of equity or equity related investments in Asia. The Trust has no employees.

Name Approval by the Launch Date listed on Irish

Central Bank of Ireland Date Stock Exchange

Atlantis Asian Fund¹ 12/09/2007 14/11/2007 15/11/2007

Atlantis China Fund 12/09/2007 14/11/2007 15/11/2007

Atlantis China Healthcare Fund 08/06/2007 19/06/2007 19/06/2007

Atlantis Japan Opportunities Fund 10/10/2003 21/10/2003 21/10/2003

Atlantis ASEAN Fund² 19/09/2008 N/A Delisted

¹Atlantis Asian Fund was previously called Atlantis Asian Recovery Fund.

²Atlantis ASEAN Fund was approved by the Central Bank of Ireland on 19th September 2008 but was never

launched.

2. Principal Accounting Policies

The principal accounting policies adopted by the Trust are as follows:

Basis of Preparation

From 1st January 2015, the Trust has changed its preparation of the financial statements to comply with

International Financial Reporting Standards as adopted by the European Union (“IFRS”).

For all periods up to and including the year ended 31st December 2014, the Trust prepared its Financial

Statements in accordance with Irish Generally Accepted Accounting Practice ("Irish GAAP"). These Financial

Statements have been prepared in accordance with IFRS. The Trust has adopted the basis of accounting with

effect from 1st January 2015.

The adoption of IFRS has resulted in no changes to the reported financial position or financial performance

compared to that presented previously. No adjustments have been made to the Net Asset Value presented in the

opening Statement of Financial Position either as at 1st January 2014 or at 31 December 2014 (i.e. at the end of

the latest period presented in the Trust’s most recent annual financial statements determined in accordance with

the previous financial reporting framework).

Previously, the Trust availed of an exemption under FRS 1 of Irish GAAP from preparing a Statement of Cash

Flows. No equivalent exemption exists under IFRS therefore the Trust has presented a Statement of Cash Flows

for the periods ended 31 December 2015 and 31 December 2014.

The following new standards, amendments and interpretations are not yet effective but will be applied, where

relevant, from their EU endorsed effective date.

IFRS 9 'Financial Instruments' is effective 1st January 2018 and amends IAS 39. IFRS 9 specifies how an entity

should classify and measure financial assets, including some hybrid contracts. They require all financial assets to

be classified on the basis of the entity’s business model for managing the financial assets and the contractual cash

flow characteristics of the financial asset. This classification includes financial assets initially measured at fair

value plus, in the case of a financial asset not at fair value through profit or loss, particular transaction costs;

subsequently measured at amortised costs or fair value. These requirements improve and simplify the approach

for classification and measurement of financial assets compared with the requirements of IAS 39. They apply a

consistent approach to classifying financial assets and replace the 4 categories of financial assets in IAS 39, each

of which had its own classification criteria. They also result in one impairment method, replacing the numerous

impairment methods in IAS 39 that arise from the different classification.

35


Notes to the Financial Statements (continued) For the year ended 31st December 2015

2. Principal Accounting Policies (continued)

Comparative information

IFRS 1 ‘First Time Adoption of International Financial Reporting Standards’ requires the inclusion of an opening

IFRS Statement of Financial Position at the start of the start of the comparative financial year, i.e. 1st January

2014.

Income Income arising from investments is accounted for on an ex-dividend basis and is shown gross of any irrecoverable

withholding taxes, where deducted. Deposit interest is accounted for on an accruals basis.

Foreign currencies (a) Functional currency

Items included in each sub-fund’s financial statements are measured using the currency in which the majority of

its financing activities are transacted (the ‘functional currency’). The functional currency for all sub-funds is the

US Dollar as units are issued in that currency.

(b) Presentation currency

The financial statements are presented for financial reporting purposes in US Dollar which is denoted by the

symbol US$.

Financial assets and financial liabilities at fair value through profit or loss (a) Classification

The Trust classifies all its investment securities as financial assets and financial liabilities at fair value through

profit or loss.

(b) Recognition & derecognition

Purchases and sales of investments are recognised on the trade date – the date on which the Trust commits to

purchase or sell the investment. Investments are derecognised when the rights to receive cash flows from the

investments have expired or the Trust has transferred substantially all risks and rewards of ownership.

(c) Measurement

Financial instruments are measured initially at fair value (transaction price) plus, in the case of a financial asset or

financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the

acquisition or issue of the financial asset or financial liability. Transaction costs on financial assets and financial

liabilities at fair value through profit or loss are expensed immediately, while on other financial instruments they

are amortised. Subsequent to initial recognition, all instruments classified at fair value through profit or loss are

measured at fair value with changes in their fair value recognised in the Statement of Comprehensive Income.

Financial assets and financial liabilities, other than those at fair value through profit or loss, are measured at

amortised cost using the effective interest rate method, less impairment loss, if any. Financial liabilities arising

from the redeemable participating shares issued by a sub-fund are carried at the redemption amount, representing

the Unitholders' right to a residual interest in that sub-fund's assets.

d) Fair value measurement principles

The fair value of financial instruments is based on their quoted market prices at the statement of financial position

date without any deduction for estimated future selling costs. Financial assets and financial liabilities are priced at

last traded price or, if no last traded price is available, at mid-market prices. Prior to 1st January 2015, the quoted

market price used for financial assets held by the Trust was the current bid price; the quoted market price for

financial liabilities was the current asking price. The Trust adopted IFRS 13, ‘Fair Value measurement’, from 1st

January 2015; it changed its fair valuation input to utilise the last traded market price for both financial assets and

financial liabilities where the last traded price falls within the bid-ask spread. In circumstances where the last

traded price is not within the bid-ask spread, management will determine the point within the bid-ask spread that

is most representative of fair value.

Structure Products are securities providing a return generated by a specified underlying equity or basket of

equities. Investments in Structure Products are valued at the last reported trade price of the underlying security as

of close of business at the reporting date. The resulting realised and unrealised gains and losses for the year are

included in the Statement of Comprehensive Income.

36



2. Principal Accounting Policies (continued)

d) Fair value measurement principles (continued)

If a quoted market price is not available on a recognised stock exchange or from a broker/dealer for non-

exchange-traded financial instruments, the fair value of the instrument is estimated using valuation techniques,

including use of recent arm's length market transactions, reference to the current fair value of another instrument

that is substantially the same, discounted cash flow techniques, option pricing models or any other valuation

technique that provides a reliable estimate of prices obtained in actual market transactions.

Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an

active market. Receivables are recognised initially at fair value plus transaction costs that are directly attributable

to their acquisition.

Offsetting Financial Instruments Financial assets and financial liabilities are offset and the net amount reported in the Statement of Finanical

Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to

settle on a net basis, or realise the asset and settle the liability simultaneously.

Redeemable Participating Units Redeemable participating units are redeemable at the Unitholder’s option and are classified as financial liabilities.

The participating units can be put back to a sub-fund at any time for cash equal to a proportionate share of the

relevant sub-fund’s Net Asset Value. The participating unit is carried at the redemption amount that is payable at

the Balance Sheet date if the Unitholder exercised its right to put the unit back to the sub-fund.

Distributions The Trust and each of its sub-funds are expected to conform to the requirements of United Kingdom legislation

for the Trust to be certified as a "reporting fund" (or such other type of fund that may replace “reporting fund” for

UK tax purposes).

Income Equalisation Income equalisation is accrued income included in the price of units purchased and sold during the accounting

period. Income equalisation is accounted for in the Statement of Comprehensive Income.

The Trust employs the full income equalisation method. This means that income attributable to subscribing and

redeeming Unitholders is taken into account when calculating the reportable income. Also, the subscribing

Unitholder is made aware that the subscription price of units is deemed to include an equalisation payment

calculated by reference to the accrued net income of the relevant sub-fund, and the first distribution in respect of

any unit will include a payment of capital usually equal to the amount of such equalisation payment. The

redemption price of each unit will also include an equalisation payment in respect of the accrued net income of

the relevant sub-fund up to the date of redemption.

Operating Expenses Each sub-fund is responsible for all of its normal operating expenses including audit fees, stamp and other duties

and charges incurred on the acquisition and realisation of investments.

Cash and Cash Equivalents The Manager considers short-term highly liquid investments with maturities of three months or less to be cash

equivalents.

Spot contracts Spot contracts were used for trade settlement and are shown on the Statement of Financial Position as Other

Receivables or Payables of the sub-funds.

37



3. Fees and Expenses

Manager’s Fee

The Manager receives an annual management fee out of the assets of the sub-funds at the following rates:

Atlantis Asian Fund (except US Dollar Class D) pays 1.25% per annum of the Net Asset Value of the

sub-fund, plus VAT (if any), if the Net Asset Value is in line with the MSCI AC Far East Ex Japan

Index. This fee is reduced or increased, depending on the extent of the underperformance or

overperformance of the sub-fund relative to the MSCI AC Far East Ex Japan Index, to between a

minimum of 0.75% and a maximum of 1.75% of the Net Asset Value of the sub-fund, plus VAT (if any)

respectively, payable monthly in arrears.

Atlantis Asian Fund US Dollar Class D pays 1.5% of the Net Asset Value of the sub-fund, plus VAT (if

any), payable monthly in arrears.

Atlantis China Fund pays 1.75% of the Net Asset Value of the sub-fund, plus VAT (if any), payable

monthly in arrears.

Atlantis China Healthcare Fund pays at a rate of 1% of the Net Asset Value of the sub-fund, plus VAT

(if any), payable monthly in arrears.

Atlantis Japan Opportunities Fund pays 1.5% of the Net Asset Value of the sub-fund, plus VAT (if any),

payable monthly in arrears.

The Manager is also entitled to be repaid all of its Administration Expenses out of the assets of the sub-funds

which shall include legal fees, courier fees and telecommunication costs and expenses.

Investment Manager and the Investment Advisers’ fee

The Manager pays out of its own fee, the fee payable to the Investment Manager. The Investment Manager pays

out of its own fee, the fee payable to the Investment Adviser.

All reasonable out-of-pocket expenses incurred by the Investment Manager, or the Investment Adviser in

connection with the ongoing administration and operation of the sub-funds are paid out of the assets of the sub-

funds.

Performance Fee – Atlantis China Healthcare Fund

In addition to the annual management fee, the Manager is entitled to receive a performance fee in aggregate equal

to 20% of the amount by which the performance of each unit in the above sub-fund exceeds the benchmark (as

described below). The performance fee is payable on the last Valuation Day in each financial year (each a

“Payment Date”). The first calculation period for the purposes of the performance fee is the period from the

Business Day immediately following the closing date of the initial offer period and ending on the last Valuation

Day in each full year. Each subsequent calculation period commences on the first Business Day in each financial

year and ends on the last Valuation Day in that financial year. The performance fee is equal to 20% of x where x

equals the Net Asset Value per unit on the Payment Date less the benchmark value per unit on such date

multiplied by the weighted average number of units of the sub-fund in issue on Subscription Days in the period

since the preceding Payment Date. Such calculation of the performance fee is verified by the Trustee.

The benchmark value per unit for the purposes of the performance fee calculation is the higher of: (a) the

benchmark value per unit on the previous Payment Date increased by 5% and (b) the Net Asset Value per unit on

the previous Payment Date increased by 5%. For the purposes of the first calculation of the fee, the starting point

for the value per unit was US$1.00. The benchmark is as discussed above, namely 5% per annum.

Performance fees amounting to US$1,474,508 (2014: US$390,007) were charged to the sub-fund, the

performance fees payable at the year-end was US$1,474,508 (2014: US$390,007).

There is no performance fee entitlement on the other sub-funds.

38



3. Fees and Expenses (continued)

Administrator’s Fee

Northern Trust International Fund Administration Services (Ireland) Limited (the “Administrator”) receives out

of the assets of the sub-funds, an annual fee of 0.225% on the first US$150 million of the sub-fund’s Net Asset

Value, 0.175% on the next US$150 million of the sub-fund’s Net Asset Value and 0.15% of the Net Asset Value

of the sub-fund thereafter, subject to a monthly minimum fee of GBP£2,500 (plus VAT, if any thereon) accrued

on each day which the Net Asset Value of the sub-fund is calculated and paid monthly in arrears.

Up until 31st October 2015, the Administrator was also entitled to receive an annual fee of €5,000 in respect of

the Administrator providing Money Laundering Reporting Officer (“MLRO”) services to the sub-funds of the

Trust. An additional annual fee of €500 was paid to the Administrator in respect of each additional sub-fund.

On 1st November 2015 Bridge Consulting Limited were appointed as MLRO to the Trust. Bridge Consulting is

entitled to be paid by the sub-funds’ an annual fee of €8,000 (plus VAT) in respect of this service.

An additional annual fee of €10,000 per sub-fund in respect of German tax reporting service shall be payable to

the Administrator from Atlantis China Fund, Atlantis China Healthcare Fund and Atlantis Asian Fund.

An additional annual fee of GBP£6,500 per sub-fund in respect of attribution services shall be payable to the

Administrator from Atlantis China Fund, Atlantis China Healthcare and Atlantis Asian Fund.

The Administrator is also entitled to additional fees for various services which it has agreed to provide for all the

sub-funds to assist with their compliance with the applicable requirements of the intergovernmental agreement

between the Government of Ireland and the Government of the United States of America in relation to the

implementation of the U.S. Foreign Account Tax Compliance Act. As well as a one-time set-up fee of US$7,500

for the Trust, these fees depend on the number of existing and new investors in the sub-funds.

Trustee Fee

The Manager pays to Northern Trust Fiduciary Services (Ireland) Ltd (the “Trustee”), out of the assets of the sub-

funds, an annual fee of 0.075% of the Net Asset Value on the first US$150 million of the sub-fund’s net assets

and 0.05% of the Net Asset Value of the sub-fund’s net assets thereafter. The fee is accrued and paid monthly in

arrears.

The Trustee is further entitled to be repaid all of its disbursements out of the assets of the sub-funds, including the

fees and transaction charges of any sub-custodian appointed by it. The fees and transaction charges of any such

sub-custodian shall be at normal commercial rates. There is also a charge of US$25 per investment transaction

processed.

Governance and Monitoring Service Fee

Bridge Consulting Limited provides governance and monitoring service to the Trust. Bridge Consulting Limited

receives fees amounting to €28,000 (plus VAT) per annum.

On 1st November 2015 Bridge Consulting Limited were appointed as MLRO to the Trust. Bridge Consulting is

entitled to be paid by the sub-funds’ an annual fee of €8,000 (plus VAT) in respect of this service.

4. Related and Connected Persons Disclosures

The Trust operates under an investment management agreement with the Investment Manager.

Gerard Morrison is a Director of AFMG Limited, Atlantis Investment Management (Hong Kong) Limited (the

“Investment Manager”), and also a Director of Atlantis Investment Management (Singapore) Pte Limited, the

investment advisor of the Atlantis Asian Fund. He is also a director of Atlantis Investment Management Limited,

the Distributor.

David Dillon and Paul McNaughton are Directors of Bridge Consulting Limited which provides the governance

and monitoring service and anti-money laundering reporting offices services. Fees amounting to US$6,442 (2014:

US$31,496) have accrued to Bridge Consulting Limited during the year.

39



4. Related and Connected Persons Disclosures (continued)

David Dillon is also a Consultant with Dillon Eustace, which is the Legal Adviser to the Trust in Ireland. Fees

amounting to US$28,512 (2014: US$13,581) have accrued to Dillon Eustace during the year.

All fees in relation to the Investment Managers (including Performance), Administrator and Trustee are disclosed

separately in the Statement of Comprehensive Income. The outstanding amounts payable as at year end were

management fees of US$258,303 (2014: US$379,089), administration fees of US$84,153 (2014: US$192,020),

trustee fees of US$60,640 (2014: US$58,131) and performance fees of US$1,474,508 (2014: US$390,007).

For details of units in the sub-funds held by Directors of the Manager, please refer to Note 16.

The Central Bank UCITS Regulations require that any transaction carried out with a UCITS by a management

company or trustee to the UCITS, the delegates or sub-delegates of the management company or trustee, and any

associated or group of such a management company, trustee, delegate or sub-delegate (“connected persons”) must be

carried out as if negotiated at arm’s length. Transactions must be in the best interests of the unitholders.

The Directors of the Manager are satisfied that there are arrangements (evidenced by written procedures) in place, to

ensure that the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations are applied to all

transactions with connected persons, and are satisfied that transactions with connected persons entered into during

the year complied with the obligations set out in Regulation 41(1) of the Central Bank UCITS Regulations.

5. Financial Assets and Liabilities at Fair Value through Profit or Loss

Due to adoption of IFRS at 1st January 2015 and in accordance with IFRS 13 the Trust has changed its valuation

inputs for listed financial assets and liabilities to last traded prices. This is a change of policy from bid/ask pricing to

last traded pricing. The differences in prior year figures have not been adjusted due to the immateriality of the

amounts involved. This is consistent with the inputs prescribed in the sub-fund’s offering document for the

calculation of their per share trading value. In the prior year, the sub-fund utilised bid and ask prices for its listed

financial assets and liabilities in accordance with Irish GAAP (FRS 26).

The value of investments at 31st December 2014 and 1st January 2014 in accordance with the latest trade price basis

as per the Net Asset Valuation (“NAV”) calculated in accordance with the Trusts’ prospectus is set out below:

Atlantis Atlantis Atlantis China Atlantis Japan


At 31st December 2014 Fund Fund Fund Fund

US$ US$ US$ US$

Financial assets and liabilities at fair value

through profit or loss at initial recognition 16,659,837 127,988,935 139,694,870 27,685,000

Net deficit on revaluation (147,252) (1,382,747) (677,470) (60,016)


through profit or loss 16,512,585 126,606,188 139,017,400 27,624,984

Atlantis Atlantis Atlantis China Atlantis Japan


At 1st January 2014 Fund Fund Fund Fund

US$ US$ US$ US$


through profit or loss at initial recognition 20,465,242 178,635,226 94,370,324 24,242,359

Net deficit on revaluation (115,898) (1,383,331) (515,937) (49,503)


through profit or loss 20,349,344 177,251,895 93,854,387 24,192,856

40



6. Taxation

Under current law and practice, the Trust qualifies as an investment undertaking as defined in Section 739B of the

Taxes Consolidation Act, 1997 (as amended). It is not chargeable to Irish tax on its income or capital gains.

However, Irish tax can arise on the happening of a chargeable event in the Trust. A chargeable event includes any

distribution payments to unitholders or any encashment, redemption or transfer of units.

No tax will arise in respect of chargeable events in respect of:

(i) a unitholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes at the time of the

chargeable event, provided, in each case, that an appropriate valid declaration in accordance with Schedule

2B of the Taxes Consolidation Act, 1997 (as amended) is held by the Trust and;

(ii) certain Exempted Irish Investors (as defined in Section 739D of the Taxes Consolidation Act, 1997, as

amended) who have provided the Trust with the necessary signed statutory declarations.

Dividends, interest and capital gains (if any) received on investments made by the Trust may be subject to

Withholding taxes imposed by the country of origin and such taxes may not be recoverable by the Trust or its

Unitholders.

7. Financial Risk Management

Strategy in Using Financial Instruments

Each sub-fund is exposed to a variety of financial risks in pursuing its stated investment objective and policy.

These risks are defined in IFRS 7 as including credit risk, liquidity risk and market risk (which in turn includes

currency risk, interest rate risk, price risk and unit dealing risk). Each sub-fund takes exposure to certain of these

risks to generate investment returns on its portfolio, although these risks can also potentially result in a reduction

in the sub-fund’s net assets. The Investment Manager will use its best endeavours to minimise the potentially

adverse effects of these risks on each sub-fund’s performance where it can do so while still managing the

investments of the sub-fund in a way that is consistent with the sub-fund’s investment objective and policy.

In accordance with its investment objectives and policies, each sub-fund holds financial instruments, which at any

one time may comprise the following:

- securities and derivatives held in accordance with the investment objectives and policies; and

- cash, short-term debtors and creditors arising directly from operations.

The risks, and the measures adopted by the Manager for managing these risks on behalf of the sub-funds, are

detailed below.

41



7. Financial Risk Management (continued)

Market Price Risk

Market price risk is defined in IFRS 7 as the risk that the fair value of a financial instrument or its future cash

flows will fluctuate because of changes in market prices.

Each sub-fund’s assets consist principally of equities. The values of these instruments are determined by market

forces and there is accordingly a risk that market prices can change in a way that is adverse to the sub-fund’s

performance. The Manager has adopted a number of investment restrictions which are set out in the Trust’s

prospectus which limit the exposure of the sub-funds to adverse changes in the price of any individual financial

asset. In accordance with the Manager’s policy, the Investment Manager, will monitor the sub-funds’ positions on

a daily basis and report regularly to the Directors of the Manager, who review the information on each sub-fund’s

overall market exposures as provided by the Investment Managers at their periodic meetings. The Trust uses the

commitment approach to measure global exposure.

The maximum risk arising from an investment in a financial instrument is determined by the fair value of the

financial instruments. The overall market exposures as at 31st December 2015 and as at 31st December 2014 can

be seen broken out on the portfolio statements.

At 31st December 2015, each sub-fund’s market price risk is affected by three main components: changes in

market prices, interest rates and currency exchange rates. IFRS 7 requires a sensitivity analysis showing how the

Net Asset Value of each sub-fund would be affected by changes in each of these factors.

Some limitations of sensitivity analysis are:

the models are based on historical data and cannot take account of the fact that future market price movements,

correlations between markets and levels of market liquidity in conditions of market stress may bear no relation

to historical patterns;

the market price risk information is a relative estimate of risk rather than a precise and accurate number;

the market price information represents a hypothetical outcome and is not intended to be predictive; and

future market conditions could vary significantly from those experienced in the past.

Interest rate and currency exchange rate movements, which are dealt with under the relevant headings below,

primarily affect the fair values of a sub-fund’s exposures to debt securities, related derivatives and other

instruments. Changes in market prices primarily affect the fair value of a sub-fund’s exposures to equity securities

and related instruments.

If the price of each of the equity securities to which each sub-fund had exposure at 31st December 2015 and 31st

December 2014 had increased by the amount shown below with all other variables held constant, this would have

increased Net Assets Attributable to Holders of Redeemable Participating Units of the relevant sub-fund by the

approximate amount shown below. Conversely, if the price of each of the equity securities to which each sub-

fund had exposure had decreased by the amount shown below, this would have decreased Net Assets Attributable

to Holders of Redeemable Participating Units of the sub-fund by the approximate amount shown below.

42




Market Price Risk (continued)

As at 31st December 2015 Financial assets % Increase/ Effect of Effect of

31/12/2015 (Decrease) Increase Decrease

US$ US$ US$

Atlantis Asian Fund 13,391,754 10% 1,339,175 (1,339,175)

Atlantis China Fund 83,205,943 10% 8,320,594 (8,320,594)

Atlantis China Healthcare Fund 85,530,856 10% 8,553,086 (8,553,086)

Atlantis Japan Opportunities Fund 35,107,210 10% 3,510,721 (3,510,721)

Total 217,235,763 21,723,576 (21,723,576)

As at 31st December 2014 Financial assets % Increase/ Effect of Effect of


US$ US$ US$





Total 309,761,157 30,976,116 (30,976,116)

As at 1st January 2014 Financial assets % Increase/ Effect of Effect of


US$ US$ US$





Total 315,648,482 31,564,849 (31,564,849)

The 2015 10% (2014: 10%) estimate is based on the nature of the markets that the sub-funds invest in. The sub-

funds of the Trust invest in Asian equity markets.

Currency Risk

Currency risk is defined in IFRS 7 as the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in foreign exchange rates. Each sub-fund is exposed to currency risk as assets and

liabilities of the sub-fund may be denominated in a currency other than the functional currency of the sub-fund,

which is its base currency, the US Dollar.

The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and

the functional currency could result in an appreciation or depreciation in the fair value of that asset.

In accordance with the Manager’s policy, the Investment Manager monitors each sub-fund’s currency exposures

on a daily basis and reports regularly to the Directors of the Manager, who reviews the information provided by

the Investment Manager on any significant exposures at their periodic meetings.

43




Currency Risk (continued)

The following tables set out each sub-fund’s foreign currency exposure as at 31st December 2015:

As at 31st December 2015 Monetary

Assets

Monetary

Liabilities

Spot

Contracts

Net Monetary

Assets

US$ US$ US$ US$

Atlantis Asian Fund

EUR 4 - - 4

HKD 6,377,507 - - 6,377,507

IDR 1,741,967 - - 1,741,967

INR 470,441 - - 470,441

GBP 33 - - 33

KRW 1,012,098 - - 1,012,098

MYR 171,552 - - 171,552

PHP 47,084 - - 47,084

SGD 1,040,004 - - 1,040,004

THB 847,792 - - 847,792

TWD 1,051,843 - - 1,051,843

VND 649,899 - - 649,899

13,410,224 - - 13,410,224

Atlantis China Fund

HKD 71,374,972 - (90,806) 71,284,166

71,374,972 - (90,806) 71,284,166


HKD 59,571,203 - (292,984) 59,278,219

59,571,203 - (292,984) 59,278,219


EUR 1 (154) - (153)

GBP 138,972 - - 138,972

JPY 35,877,485 (295,755) - 35,581,730

36,016,458 (295,909) - 35,720,549

44





The comparative information as at 31st December 2014 is as follows:

As at 31st December 2014 Monetary

Assets

Monetary

Liabilities

Spot

Contracts

Net Monetary

Assets

US$ US$ US$ US$

Atlantis Asian Fund

EUR - (2,116) - (2,116)

HKD 7,297,945 - - 7,297,945

IDR 1,576,418 - - 1,576,418

INR 406,946 - - 406,946

GBP 24 - - 24

KRW 1,166,808 - - 1,166,808

MYR 806,918 - - 806,918

PHP 281,360 - - 281,360

SGD 2,483,038 - - 2,483,038

THB 1,284,702 - (274,052) 1,010,650

TWD 1,346,649 - - 1,346,649

VND 678,088 - - 678,088

17,328,896 (2,116) (274,052) 17,052,728

Atlantis China Fund

EUR - (15,938) - (15,938)

HKD 120,958,064 - (494,303) 120,463,761

120,958,064 (15,938) (494,303) 120,447,823


EUR - (16,865) - (16,865)

HKD 93,107,445 (1,801,924) 1,352,121 92,657,642

SGD 4,427,793 - - 4,427,793

97,535,238 (1,818,789) 1,352,121 97,068,570


EUR - (3,498) - (3,498)

JPY 28,176,037 (131,782) - 28,044,255

28,176,037 (135,280) - 28,040,757

45





The comparative information as at 1st January 2014 is as follows:

As at 1st January 2014 Monetary

Assets

Monetary

Liabilities

Spot

Contracts

Net Monetary

Assets

US$ US$ US$ US$

Atlantis Asian Fund -

EUR 4 (3,275) - (3,271)

HKD 10,340,906 - 39 10,340,945

IDR 1,727,439 - - 1,727,439

INR 328,991 - - 328,991

GBP 12 - - 12

KRW 1,773,454 - - 1,773,454

MYR 725,819 - - 725,819

SGD 3,020,615 - - 3,020,615

THB 1,067,547 - - 1,067,547

TWD 1,024,158 - - 1,024,158

VND 356,687 - - 356,687

20,365,671 (3,275) 39 20,362,396

Atlantis China Fund

EUR - (26,104) - (26,104)

HKD 177,855,668 - (12,822) 177,842,846

177,855,668 (26,104) (12,822) 177,816,742


EUR - (14,281) - (14,281)

HKD 65,565,246 - (29,070) 65,536,176

SGD 3,965,804 - - 3,965,804

69,531,050 (14,281) (29,070) 69,487,699


EUR 1 (3,756) - (3,755)

JPY 24,596,605 (260,777) - 24,335,828

24,596,606 (264,533) - 24,332,073

None of the sub-funds have a direct exposure to the Chinese Renminbi (“RMB”) but the structured products held

on Atlantis China Healthcare Fund and Atlantis China Fund are more exposed to the currency. The underlying is

quoted on PRC exchanges but the settlement is in USD.

In determining the appropriate percentage change to apply for the sensitivity analysis, the percentage change in

the relevant exchange rate has been calculated based on the difference between the opening and the closing

exchange rates for each of the currencies in which the sub-funds hold assets and liabilities. This was

representative of the risk profile of the sub-funds during the year.

The calculated appreciation/depreciation of the currency against the reporting currency of each sub-fund has been

applied to each of the foreign currency balances at 31st December 2015 and at 31st December 2014, and with all

other variables held constant, the results of this sensitivity analysis is shown in the tables below. A movement in

the opposite direction would have had an equal but opposite effect.

46





As at 31st December 2015 Net Foreign Currency Change in Foreign Effect on

Monetary Assets Exchange Rate v US$ Net Assets

US$ % US$

Atlantis Asian Fund

EUR 4 -10.63% -

HKD 6,377,507 0.06% 3,827

IDR 1,741,967 -10.16% (176,984)

INR 470,441 -4.59% (21,593)

GBP 33 -5.56% (2)

KRW 1,012,098 -6.26% (63,357)

MYR 171,552 -18.56% (31,840)

PHP 47,084 -4.94% (2,326)

SGD 1,040,004 -6.87% (71,448)

THB 847,792 -8.57% (72,656)

TWD 1,051,843 -3.79% (39,865)

VND 649,899 -4.88% (31,715)

13,410,224 (507,959)

Atlantis China Fund

HKD 71,284,166 0.06% 42,770

71,284,166 42,770


HKD 59,278,219 0.06% 35,567

59,278,219 35,567


EUR (153) -10.63% 16

GBP 138,972 -5.56% (7,727)

JPY 35,581,730 -0.73% (259,747)

35,720,549 (267,458)

47





As at 31st December 2014 Net Foreign Currency Change in Foreign Effect on


US$ % US$

Atlantis Asian Fund

EUR (2,116) -11.79% 249

HKD 7,297,945 -0.02% (1,460)

IDR 1,576,418 -1.74% (27,430)

INR 406,946 -2.01% (8,180)

GBP 24 -5.77% (1)

KRW 1,166,808 -3.98% (46,439)

MYR 806,918 -6.32% (50,997)

PHP 281,360 -0.78% (2,195)

SGD 2,483,038 -4.44% (110,247)

THB 1,010,650 -0.12% (1,213)

TWD 1,346,649 -5.69% (76,624)

VND 678,088 -1.37% (9,290)

17,052,728 (333,827)

Atlantis China Fund

EUR (15,938) -11.79% 1,879

HKD 120,463,761 -0.02% (24,093)

120,447,823 (22,214)


EUR (16,865) -11.79% 1,988

HKD 91,305,521 -0.02% (18,261)

SGD 4,427,793 -4.44% (196,594)

95,716,449 (212,867)


EUR (3,498) -11.79% 412

JPY 28,044,255 -11.99% (3,362,506)

28,040,757 (3,362,094)

48





As at 1st January 2014 Net Foreign Currency Change in Foreign Effect on


US$ % US$

Atlantis Asian Fund

EUR (3,271) 4.51% (148)

HKD 10,340,945 -0.04% (4,136)

IDR 1,727,439 -20.81% (359,480)

INR 328,991 -11.42% (37,571)

GBP 12 1.89% -

KRW 1,773,454 1.44% 25,538

MYR 725,819 -6.64% (48,194)

SGD 3,020,615 -3.23% (97,566)

THB 1,067,547 -6.91% (73,767)

TWD 1,024,158 -2.57% (26,321)

VND 356,687 -1.21% (4,316)

20,362,396 (625,961)

Atlantis China Fund

EUR (26,104) 4.51% (1,177)

HKD 177,842,846 -0.04% (71,137)

177,816,742 (72,314)


EUR (14,281) 4.51% (644)

HKD 65,536,176 -0.04% (26,214)

SGD 3,965,804 -3.23% (128,095)

69,487,699 (154,953)


EUR (3,755) 4.51% (169)

JPY 24,335,828 -17.73% (4,314,742)

24,332,073 (4,314,911)

Interest Rate Risk

The majority of the sub-fund’s financial assets and financial liabilities are non-interest bearing and any excess

cash and cash equivalents (as shown in the Statement of Financial Position) are invested at short-term market

interest rates. As a result, none of the sub-funds are subject to significant amounts of risk due to fluctuations in

the prevailing levels of market interest rates; therefore no sensitivity analysis is presented. In accordance with the

Trust’s policy, the Investment Manager monitors the sub-funds’ cash balances on a daily basis and reports

regularly to the Directors of the Manager.

49




Credit Risk

Credit risk is defined in IFRS 7 as the risk that one party to a financial instrument will cause a financial loss for

the other party by failing to discharge an obligation.

Whilst the Trust is exposed to credit, this risk is limited as the Trustee holds all assets on behalf of the Trust in a

segregated account. The majority of each sub-fund’s financial assets are equity securities. All transactions are

settled and paid for upon delivery of stock and by using approved brokers. The risk of default is considered

minimal as securities are only delivered to the broker once the broker has made the payment. The sub-funds only

pay a broker for a purchase once the securities have been received by the Trustee.

Substantially all of the cash assets are held with the Northern Trust Company, London Branch (NTC). Cash

deposited with NTC is deposited as banker and is held on its Balance Sheet. Accordingly, in accordance with

usual banking practice, NTC liability to the Trust in respect of such cash deposits shall be that of debtor and the

Trust will rank as a general creditor of NTC. The financial assets are held with the Trustee, Northern Trust

Fiduciary Services (Ireland) Limited. These assets are held distinct and separately from the proprietary assets of

the Trustee. Securities are clearly recorded to ensure they are held on behalf of the Trust. Bankruptcy or

insolvency of the Trustee and or one of its agents or affiliates may cause the Trust’s rights with respect to the

securities held by the Trustee to be delayed.

Both Northern Trust Fiduciary Services (Ireland) Limited and the Northern Trust Company, London Branch are

wholly owned subsidiaries of Northern Trust Corporation. As at 31st December 2015 Northern Trust Corporation

had a long term rating from Standard & Poor’s of A+ (2014: A+).

Risk is managed by monitoring the credit quality and financial positions of the Trustee used by the Trust.

Northern Trust acts as its own sub-custodian in the U.S., the U.K., Ireland and Canada. In all other markets,

Northern Trust appoints a local sub-custodian. Northern Trust continually reviews its sub-custodian network.

Atlantis China Fund and Atlantis China Healthcare Fund hold covered structure products, the table below states

the Issuer, cash value of the structure products on a per issuer basis, credit rating and rating date.

Cash Value of Credit

Issuer Structure Products Rating Rating Date

Atlantis China Fund

Citigroup Global Markets 3,576,317 A 03/07/2015

Credit Suisse AG (Nassau) Branch 3,467,722 A 11/01/2016

CIIC Financial Trading 2,383,886 N/A N/A

CLSA Financial Products 2,579,002 BBB+ 18/10/2012


Goldman Sachs 3,575,828 A 09/12/2015

CIIC Financial Trading 3,933,709 N/A N/A

Credit Suisse AG (Nassau) Branch 3,507,300 A 11/01/2016

Macquarie Bank Ltd 1,628,127 A 21/12/2015

UBS AG - Switzerland 3,448,430 A 29/11/2011

Citigroup Global Markets 3,559,658 A 03/07/2015

BOCI Financial Products 3,371,948 A 29/11/2011

CLSA Financial Products 3,356,908 BBB+ 18/10/2012

The Investment Manager monitors credit risk.

There were no changes to the Trust’s policies and processes for monitoring credit risk during the year.

50




Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial

liabilities as they fall due.

Atlantis Asian Fund and Atlantis Japan Opportunities Fund operate daily cash redemptions of redeemable units.

Atlantis China Fund and Atlantis China Healthcare Fund operate twice-monthly cash redemptions of redeemable

units. Each sub-fund invests the majority of its assets in securities and other instruments that are traded regularly

and which are considered to be realisable under normal market conditions. The Investment Manager monitors

liquidity risk and reports regularly on that matter to the Directors of the Manager to the Trust.

At 31st December 2015 and 31st December 2014, each sub-fund’s financial liabilities (shown in the Statement of

Financial Position on pages 25 to 27) were classified as being of less than one month’s maturity.

Other Price Risk

Other price risk is the risk that the value of an instrument will fluctuate as a result of changes in market prices

(other than those arising from interest rate risk or currency risk), whether caused by factors specific to an

individual investment, its issuer or all factors affecting all instruments traded in the market.

As each sub-fund’s financial instruments are carried at fair value with fair value changes recognised in the Profit

and Loss Account, all changes in market conditions will directly affect net investment income. Price risk is

managed by the Trust’s Investment Manager by constructing a diversified portfolio of holdings subject to limits

on issuer exposure.

Unit Dealing Risks

Pursuant to the procedures set forth in the prospectus issued by the Trust, the Manager will issue units in the sub-

fund on each Dealing Day (T) on the basis that investors will not be obliged to settle such subscriptions until 4

business days following that Dealing Day (T+4). The Administrator will provide the Investment Manager with

details of the net aggregate value of subscriptions into the sub-fund on each Dealing Day. Using this information,

the Investment Manager may place investment trades in the market on the assumption that the sub-fund will have

received the subscription monies by the time the sub-fund is obliged to settle these trades.

However, in the event that a Unitholder fails to settle his subscription by T+4, the sub-fund may be forced to

borrow funds in order to settle any outstanding investment transactions. The costs of such borrowing will be

borne by the sub-fund notwithstanding that these costs will have been incurred by virtue of an investor's failure to

settle its subscription in accordance with the timetable set forth in the prospectus.

Fair Value Hierarchy

The disclosures are based on a three-level fair value hierarchy for the inputs used in valuation techniques to

measure fair value. The fair value of financial assets and liabilities traded in an active market (such as traded

securities) are based on quoted market prices at the close of trading on the year end date. The quoted market price

used for financial assets held by the sub-funds is the current bid price; the appropriate quoted market price for

financial liabilities is the current asking price.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly

available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices

represent actual and regularly occurring market transactions on an arm’s length basis.

The fair value of financial assets and financial liabilities that are not traded in an active market are determined by

using valuation techniques.

51




Fair Value Hierarchy (continued)

For instruments for which there is no active market, the Trust may use internally developed models, which are

usually based on valuation methods and techniques generally recognised as standard within the industry.

Valuation models are used primarily to value unlisted equity, debt securities and other instruments for which

markets were or have been inactive during the financial year. Some of the inputs to these models may not be

market observable and are therefore estimated based on assumptions.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to

the fair value measurement of the relevant asset as follows:

Level 1 -valued using quoted prices in active markets for identical assets.

Level 2 -valued by reference to valuation techniques using observable inputs other than quoted prices included

within level 1.

Level 3 -valued by reference to valuation techniques using inputs that are not based on observable market data.

The valuation techniques used by the Trust are explained in the accounting policies in Note 2. There has been no

change to the valuation techniques used during the year.

The table below sets out fair value measurements using the fair value hierarchies:

As at 31st December 2015

Total Level 1 Level 2 Level 3

Atlantis Asian Fund US$ US$ US$ US$

Equity investments 13,391,754 13,391,754 - -

13,391,754 13,391,754 - -

Atlantis China Fund


Structure Products 12,006,927 12,006,927 - -

83,205,943 83,205,943 - -




85,530,856 85,530,856 - -



35,107,210 35,107,210 - -

There were no transfers between levels for the year ended 31st December 2015.

52





The comparative information as at 31st December 2014 is as follows:




16,512,585 16,512,585 - -

Atlantis China Fund



126,606,188 126,606,188 - -




139,017,400 139,017,400 - -



27,624,984 27,624,984 - -

There were no transfers between levels for the year ended 31st December 2014.

The comparative information as at 1st January 2014 is as follows:



Equity investments 20,349,344 20,178,012 - 171,332

20,349,344 20,178,012 - 171,332

Atlantis China Fund

Equity investments 177,251,895 175,728,332 - 1,523,563

177,251,895 175,728,332 - 1,523,563




93,854,387 93,854,387 - -



24,192,856 24,192,856 - -

The following tables present the transfer between levels for the year ended 1st January 2014:

2013 Atlantis China Fund Level 1 Level 2 Level 3

US$ US$ US$

Transfer between level 1 and 3

Equities (15,393,655) - 15,393,655

2013 Atlantis China Healthcare Fund Level 1 Level 2 Level 3

US$ US$ US$

Transfer between level 1 and 3

Equities 1,262,788 - (1,262,788)

53





A reconciliation of fair value measurements in level 3 for Atlantis Asian Fund is set out below:

Level 3 financial assets at fair value through profit or loss Equity Equity Equity

Investments Investments Investments

Dec 2015 Dec 2014 Jan 2014

Atlantis Asian Fund US$ US$ US$

Opening Balance - 171,332 495,011

Total gains or losses included in

the Profit and Loss Account:

-on assets held at the end of the year - (171,332) (323,679)

Closing Balance - - 171,332

As at 31st December 2015 Atlantis Asian Fund held two investments which were suspended: Boshiwa

International and Berlian Laju Tanker. Based on the recommendation of the Investment Manager, the Directors of

the Manager agreed to continue to hold Boshiwa International at zero (2014: written down to zero) and to

continue to hold Berlian Laju Tanker at zero (2014: written down to zero).

A reconciliation of fair value measurements in level 3 for Atlantis China Fund is set out below:


Dec 2015 Dec 2014 Jan 2014

Atlantis China Fund US$ US$ US$

Opening Balance - 1,523,563 3,637,066

Transfers into level 3 - - 16,535,487

Transfers out of level 3 - - (1,141,832)

Purchases - - 1,213,824

Sales - - (113,433)

Total gains or losses included in

the Profit and Loss Account:

-on assets held at the end of the year - (1,523,563) (18,607,549)

Closing Balance - - 1,523,563

As at 31st December 2015 Atlantis China Fund held three investments which were suspended: Qunxing Paper,

China Metal Recycling and China CDM Exchange Centre. Based on recommendations by the Investment

Manager, the Directors of the Manager have agreed to value the three investments at zero. The listing of China

Metal Recycling was cancelled on 4th February 2016.


Investments Investments Investments

Dec 2015 Dec 2014 Jan 2014

Atlantis China Healthcare Fund US$ US$ US$

Opening Balance - - 1,262,788

Transfers out of level 3 - - (1,262,788)

Closing Balance - - -

54



8. Soft Commissions

There were no soft commission arrangements during the year ended 31st December 2015.

In past years, Atlantis Investment Management Limited entered into a soft commission agreement whereby goods

and services were received which support the investment decision process. The agreement was transferred to

Atlantis Investment Management (Hong Kong) Limited on 26th September 2014. Neither Atlantis Investment

Management Limited nor Atlantis Investment Management (Hong Kong) Limited make direct payment for these

goods and services but transact an agreed amount of business. Commission is paid on these transactions at

customary institutional rates and the execution of these transactions is consistent with the principles of best

execution. The goods and services supplied include portfolio performance measurement, portfolio administration,

electronic information delivery services, publications, market sector and specific training, research and analysis.

The total amounts of soft commission relating to the sub-funds were:

Dec 2015 Dec 2014 Jan 2014

US$ US$ US$

Atlantis China Fund - 16,034 26,977

Atlantis China Healthcare Fund - 1,737 10,587

9. Exchange Rates

The applicable year end exchange rates were as follows:

31st December 2015

Exchange Rate Exchange Rate

to US$ to US$

Euro 0.9206 Philippines peso 47.0550

Hong Kong dollar 7.7502 Pound sterling 0.6785

Indian rupee 66.1563 Singapore dollar 1.4187

Indonesian rupiah 13,785.0000 South Korean won 1,172.5500

Japanese yen 120.2950 Thai baht 35.9850

Malaysian ringgit 4.2935 Vietnamese Dong 22,485.0000

New Taiwan dollar 32.8470

Comparative 31st December 2014


to US$ to US$








Comparative 1st January 2014


to US$ to US$








55



10. Cash

Atlantis China Fund has a committed borrowing facility of the lower of US$20m or 10% of the sub-fund’s Net

Asset Value repayable on demand and subject to periodic review. At 31st December 2015, the Atlantis China

Fund did not hold an overdraft (2014: no overdraft).

Atlantis China Healthcare Fund had an uncommitted borrowing facility of the lower of US$15m or 10% of the

sub-fund’s Net Asset Value repayable on demand and subject to periodic review.

All cash balances are held with Northern Trust Company (London) Branch, which is a 100% indirect wholly

owned subsidiary of the Northern Trust Corporation which has an S&P credit rating of A+ (2014:A+).

11. Distributions

There were no distributions declared in 2015 (2014: $nil).

12. Units Issued and Redeemed

For the year ended 31st December 2015:

Atlantis Atlantis Atlantis

Asian Asian Asian

Fund Fund Fund

USD Class $ EUR Class € GBP Class £

Units in issue as at 1st January 2015 2,393,733 1,207 519

Units issued during the period 8,162 4 9

Units redeemed during the period (456,613) - -

Units in issue as at 31st December 2015 1,945,282 1,211 528

Atlantis

Atlantis Atlantis China

Asian China Healthcare

Fund Fund Fund

USD Class D $ US Class $ US Class $

Units in issue as at 1st January 2015 1,000 19,589,961 73,809,739

Units issued during the period 44 1,023,536 17,371,156

Units redeemed during the period - (10,008,780) (50,222,942)

Units in issue as at 31st December 2015 1,044 10,604,717 40,957,953


Japan Japan Japan

Opportunities Opportunities Opportunities

Fund Fund Fund


Units in issue as at 1st January 2015 9,420,972 80,000 176,679

Units issued during the period 220,444 124,850 176,227

Units redeemed during the period (693,343) (48,700) (169,893)

Units in issue as at 31st December 2015 8,948,073 156,150 183,013

56



12. Units Issued and Redeemed (continued)

Comparatives for the year ended 31st December 2014:


Asian Asian Asian

Fund Fund Fund



Units issued during the year 13,973 2 6

Units redeemed during the year (459,825) - -


Atlantis

Atlantis Atlantis China

Asian China Healthcare

Fund Fund Fund



Units issued during the year - 8,015,750 33,761,960

Units redeemed during the year - (14,966,258) (10,574,697)

Units in issue as at 31st December 2014 1,000 19,589,961 73,809,739


Japan Japan Japan

Opportunities Opportunities Opportunities

Fund Fund Fund


Units in issue as at 1st January 2014 8,658,334 155,500 31,800

Units issued during the year 2,142,896 65,000 306,196

Units redeemed during the year (1,380,258) (140,500) (161,317)

Units in issue as at 31st December 2014 9,420,972 80,000 176,679

57



12. Units Issued and Redeemed (continued)

Comparatives for the year ended 31st December 2013:


Asian Asian Asian

Fund Fund Fund



Units issued during the year 3,564 3 9

Units redeemed during the year (771,485) - -


Atlantis

Atlantis Atlantis New China

Asian China Fortune

Fund Fund Fund



Units issued during the year - 6,740,069 -

Units redeemed during the year - (24,141,705) (11,876,180)

Units in issue as at 31st December 2013 1,000 26,540,469 -


China Japan Japan

Healthcare Opportunities Opportunities

Fund Fund Fund

US Class $ USD Class $ EUR Class €

Units in issue as at 1st January 2013 43,613,137 10,735,048 15,000

Units issued during the year 33,737,411 1,584,320 145,500

Units redeemed during the year (26,728,072) (3,661,034) (5,000)

Units in issue as at 31st December 2013 50,622,476 8,658,334 155,500

Atlantis

Japan

Opportunities

Fund

GBP Class £

Units in issue as at 1st January 2013 20,000

Units issued during the year 11,800

Units in issue as at 31st December 2013 31,800

58



13. Net Asset Value per unit

Prior to the adoption of IFRS, the difference in the valuation as prescribed by Irish GAAP and the valuation

method used in calculating the prices at which units are issued and redeemed and which is described in the

Trust’s prospectus resulted in an overall decrease of US$2,267,485 for the year ended 31st December 2014 and

US$2,064,669 for the year ended 1st January 2014 in the value of investments.

As at 31st December 2015 this valuation adjustment is not required and Net Asset Value per unit is as per

Statement of Financial Position on page 25.

The Net Asset Value per unit at 31st December 2014 after the above adjustment is as follows:

Atlantis Atlantis Atlantis Atlantis Atlantis

Asian Asian Asian Asian China

Fund Fund Fund Fund Fund

USD Class $ EUR Class € GBP Class £ USD Class D $ US Class $

Net Asset Value per unit for

unitholder dealing 7.55 11.83 10.59 12.00 6.62

Difference in Net Asset Value per

unit due to FRS26 (0.06) (0.05) (0.04) (0.06) (0.07)


financial reporting purposes 7.49 11.78 10.55 11.94 6.55

Atlantis Atlantis Atlantis Atlantis

China Japan Japan Japan

Healthcare Opportunities Opportunities Opportunities

Fund Fund Fund Fund

USD Class $ USD Class $ EUR Class € GBP Class £


unitholder dealing 1.93 2.17 22.51 19.72


unit due to FRS26 (0.01) (0.01) (0.01) (0.00)


financial reporting purposes 1.92 2.16 22.50 19.72

The Net Asset Value per unit at 1st January 2014 after the above adjustment is as follows:

Atlantis Atlantis Atlantis Atlantis Atlantis

Asian Asian Asian Asian China

Fund Fund Fund Fund Fund

USD Class $ EUR Class € GBP Class £ USD Class D $ US Class $


unitholder dealing 7.21 9.96 9.53 11.47 6.67


unit due to FRS26 (0.04) (0.03) (0.03) (0.04) (0.05)


financial reporting purposes 7.17 9.93 9.50 11.43 6.62

59



13. Net Asset Value per unit (continued)

The Net Asset Value per unit at 1st January 2014 after the above adjustment is as follows: (continued)

Atlantis Atlantis Atlantis Atlantis

China Japan Japan Japan

Healthcare Opportunities Opportunities Opportunities

Fund Fund Fund Fund

USD Class $ USD Class $ EUR Class € GBP Class £


unitholder dealing 1.81 2.26 20.75 19.30


unit due to FRS26 (0.01) (0.00) (0.00) (0.00)


financial reporting purposes 1.80 2.26 20.75 19.30

This adjustment does not impact on the ongoing net asset valuation, capital transactions or the calculation of fees

based on the net assets.

14. Comparative Statistics

Audited Net Asset Value per unit Dec 2015 Dec 2014 Jan 2014

Atlantis Asian Fund - USD Class $ 6.88 7.49 7.17

Atlantis Asian Fund - EUR Class € 13.09 11.78 9.93

Atlantis Asian Fund - GBP Class £ 15.07 10.55 9.50

Atlantis Asian Fund - USD Class D $ 10.93 11.94 11.43

Atlantis China Fund - USD Class $ 7.80 6.55 6.62

Atlantis China Healthcare Fund USD Class $ 2.11 1.92 1.80

Atlantis Japan Opportunities Fund - USD Class $ 2.64 2.16 2.26

Atlantis Japan Opportunities Fund - EUR Class € 33.40 22.50 20.75

Atlantis Japan Opportunities Fund - GBP Class £ 37.38 19.72 19.30

Audited Net Asset Value Dec 2015 Dec 2014 Jan 2014

US$ US$ US$

Atlantis Asian Fund 13,426,770 17,974,376 20,390,396

Atlantis China Fund 82,689,644 128,372,828 175,603,632

Atlantis China Healthcare Fund 86,543,040 141,960,640 91,243,963

Atlantis Japan Opportunities Fund 35,687,401 27,938,663 24,993,518

15. Financial Derivative Instruments

The Atlantis China Fund and the Atlantis China Healthcare Fund held structured products at the year ended 31st

December 2015 (2014: Atlantis China Fund and Atlantis China Healthcare Funds held structured products).

60



16. Directors of the Manager – related party investments in the Trust’s sub-funds

Gerard Morrison held investments in the following sub-funds as at year end:

31st Dec 2015 31st Dec 2014 1st Jan 2014

Atlantis China Fund 16,107.110 Units 16,107.110 Units -

Atlantis China Healthcare Fund 36,470.897 Units 36,470.897 Units 36,470.897 Units

Atlantis Japan Opportunities Fund 53,384.317 Units 53,384.317 Units 53,384.317 Units

No other Director of the Manager held a related party investment in the Trust for the years ended 31st December

2015 or 2014.

17. Significant changes during the year

There were no significant events to note during the financial year.

18. Significant events post year end

There have been no other significant events in respect of the Trust subsequent to the year-end that may be deemed

relevant to the accuracy of these financial statements.

19. Auditors’ Remuneration

The remuneration for all work carried out by the statutory audit firm in respect of the financial year is as

follows:

31st December 2015 Atlantis Atlantis Atlantis Atlantis

Asian China China Japan

Fund Fund Healthcare Opportunities

Fund Fund

US$ US$ US$ US$

Statutory audit of accounts 1,980 12,195 12,763 5,263

Tax advisory services - 7,500 7,500 -

31st December 2014 Atlantis Atlantis Atlantis Atlantis

Asian China China Japan

Fund Fund Healthcare Opportunities

Fund Fund

US$ US$ US$ US$

Statutory audit of accounts 2,116 15,938 16,865 3,498

Tax advisory services - 7,500 7,500 -

20. Approval of Financial Statements

The Financial Statements were approved by the Directors of Atlantis Investment Management (Ireland) Limited

on 12th April 2016.

61


Atlantis Asian Fund

Significant Portfolio Movements For the year ended 31st December 2015 (Unaudited)

Purchases Cost Sales Proceeds

US $'000 US $'000

NBB Investment 532 Innovalues 1,655

TCC International 531 NBB Investment 841

Merry Electronics 399 China Shanshui Cement 676

China Telcom 391 United Photovoltaics 528

NWS Holdings 384 Tipco Foods Public Company 411

Zoomlion Heavy Industry Science and Technology 375 West China Cement 409

Dah Chong Hong 361 China Telcom 384

Emperor Watch & Jewellery 332 GOME Electrical Appliances 362

Kinh Do 282 Biosensors International 354

Holcim Indonesia 282 SIM Technology 319

Hon Hai Precision Industry 232 Sinotruk Hong Kong 298

Thuduc Housing Development 228 Beijing Capital International Airport 282

Tipco Foods Public Company 220 OUE 270

China South City Holdings 219 China South City Holdings 267

China Unicom 219 Hon Hai Precision Industry 251

China International Capital 214 Kingdee International Software 247

Lotte Shopping Class C 214 SM Prime 229

Total Access Communication 210 China Unicom 228

Tian Ge Interactive 188 China International Capital 224

PetroChina 183 Inventec 209

62


Atlantis China Fund



US $'000 US $'000

Jinghua Phramaceutical -A (Credit Suisse AG (Nassau)

Branch) 19/06/2020 9,313 Renhe Commercial 18,318

Nantong Jinghua Pharmaceutical (Citigroup Global Markets)

12/02/2016 7,475 Hi Sun Technology China 11,468

C.banner International 6,203 Hao Tian Development 11,247

Fortunet e-Commerce 5,297 Nanjing Sample Technology 9,253

Golden Meditech 4,322 Alibaba Health Information Technology 8,679

Nantong Jinghua Pharmaceutical -A (CICC Financial

Products) 28/01/2018 4,034 Shanghai Prime Machinery 7,684

JC 3,190

Jinghua Phramaceutical -A (Credit Suisse AG

(Nassau) Branch) 19/06/2020 7,329

IGG 2,972 China Water Affairs 6,025

Chongqing Zongshen Power Machinery (Citigroup Global

Markets ) 12/02/2016 2,804 Tian Ge Interactive 5,984

Jiangsu Zongyi (Citigroup Global Markets) 12/02/2016 2,622 Hua Han Bio-Pharmaceutical 5,763

Nanjing Xinjiekou (Credit Suisse AG (Nassau) Branch)

04/05/2020 2,569 IGG 4,421

Suzhou Lopsking Aluminium -A (BOCI Financial Products)

16/05/2016 2,340 C.banner International 4,145

Shenzhen Terca Technology -A (CICC Finacial Products)

15/05/2018 2,189 CGN Power 4,009

Sino Credit 2,085 China Yurun Food 3,827

Zhejiang (CICC Financial Trading) 19/03/2018 2,067 Ming Fai International 3,704

Shenzhen O-film Tech -A (Credit Suisse AG (Nassau)

Branch) 06/05/2020 2,007 Silver Grant International 3,701

Silver Base 1,901 Yuanda China 3,158

Tibet 5100 Water Resources 1,776

Searainbow Holdings -A (Credit Suisse AG

(Nassau) Branch) 25/11/2015 3,042

Searainbow Holdings -A (Credit Suisse AG (Nassau)

Branch) 19/06/2019 1,774 Brilliant Circle International 2,979

China Huishan Dairy 1,743

Chongqing Zongshen Power Machinery (Citigroup

Global Markets ) 12/02/2016 2,786

63





US $'000 US $'000

C.banner International 6,203 Alibaba Health Information Technology 8,294

Nantong Jinghua Pharmaceuticals (Goldman Sachs)

09/06/2016

6,023 Luye Pharma 7,689

Nantong Jinghua Pharmaceuticals -A (CICC Financial

Trading Limited) 28/01/2018

5,374 Phoenix Healthcare Class C 7,233

China NT Pharma 4,921 Biostime International 6,412

Shanghai Fosun -A (Macquarie Bank) 24/03/2017 4,703 Searainbow Holdings (Standard Chartered Bank

Singapore) 24/11/2015

6,216

Tianjin Ringpu -A (Citigroup) 12/02/2016 4,545 Biosensors International 5,616

Yunnan Baiyao (CLSA Financial Products) 02/09/2019 4,336 Bloomage Biotechnology 5,026

JC 3,379 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical 4,662

Searainbow Holdings -A (Credit Suisse AG (Nassau)

Branch) 19/06/2019

3,257 CSPC Pharmaceutical 4,622

Jiangsu Hengrui Medicine -A (CICC Financial

Trading) 22/01/2018

3,139 Guangzhou Baiyunshan Pharmaceutical 4,546

Golden Meditech 2,964 Nantong Jinghau Pharmaceuticals-A (UBS )

26/01/2016

4,400

Hainan Haiyao (Citigroup Global Markets Holdings)

12/02/2016

2,871 Yunnan Baiyao Group (CLSA Financial Products)

24/05/2017

4,336

Tibet Rhodiola Pharmaceuticals -A (Goldman Sachs)

11/08/2016

2,854 Golden Meditech 4,192

Shanghai Pharmaceuticals -A (Macquarie Bank)

29/05/2017

2,551 C.banner International 4,141

Sinopharm 2,441 China Medical System 4,054

3SBio 2,386 Beijing Tong Ren Tang Chinese Medicine 3,879

Tibet Rhodiola Pharmaceuticals -A (BOCI Financial

Products) 31/08/2016

2,139 Hua Han Bio-Pharmaceutical 3,851

Phoenix Healthcare Class C 2,048 New China Life Insurance (Credit Suisse (Nassau)

Branch) 09/12/2019

3,683

Shinva Medical Instrument (UBS) 25/09/2018 1,991 Searainbow Holdings -A (Credit Suisse (Nassau)

Branch) 19/06/2019

3,431

Tibet Rhodiola Pharmaceuticals -A (CLSA Financial

Products) 09/06/2020

1,989 Sinopharm 3,410

64





US $'000 US $'000

Financial Products Class C 998 Japan Property Management Center 1,337

Bengo4.com 862 Gakujo 927

Kura 794 Obara 788

Tera Probe 766 Nippon Concept 768

Hikari Tsushin 761 Mimaki Engineering 764

Benefit One 755 Topcon 760

PeptiDream 730 Kokusai 730

Nippon Gas 715 Elan 710

Start Today 706 Bengo4.com 691

Nippon Systemware 688 Komehyo 689

Nippon Commercial Development 666 Sato 645

Valor 665 Internet Initiative Japan 643

Anicom 649 Nippon Commercial Development 631

Japan Material 644 Financial Products Class C 599

S-Pool 641 Unicharm 590

W-Scope 641 YAMADA Consulting 578

Funai Soken 638 Daihen 569

Torex Semiconductor 617 Zenkoku Hosho 563

CyberAgent 606 CyberAgent 532

House Do 582 Maeda Kosen 511

atlantis international umbrella fund - fondsvermittlung24.de · 2016-05-10 · atlantis...

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