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Atlantis International Umbrella Fund

Condensed Interim Report and Unaudited Financial Statements For the six months ended 30th June 2015

1


Condensed Interim Report and Unaudited Financial Statements For the six months ended 30th June 2015

Contents

Contents Page

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

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

Portfolio Statements ................................................................................................................................. 12

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

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

Condensed Statement of Changes in Net Assets Attributable to Holders of Redeemable

Participating Units ................................................................................................................................... 30

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

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

Significant Portfolio Movements ............................................................................................................. 47

2


Management and Administration

REGISTERED OFFICE DIRECTORS OF THE MANAGER

Georges 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)

Paul McNaughton (Irish) (Independent non-executive)

MANAGER INVESTMENT MANAGER

Atlantis Investment Management (Ireland) Ltd. Atlantis Investment Management (Hong Kong) Ltd. Georges Court Room 3501

54 - 62 Townsend Street The Centrium

Dublin 2 60 Wyndham Street

Ireland Central

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

& TRANSFER AGENT

Northern Trust International Fund

Administration Services (Ireland) Ltd. George’s Court

54 - 62 Townsend Street

Dublin 2

Ireland

DISTRIBUTOR GERMAN PAYING AGENT

Atlantis Investment Management Ltd. Marcard, Stein & Co AG

2nd Floor Ballindamm 36

13St Swithin’s Lane20095 Hamburg

London EC4N 8AL Germany

United Kingdom

3


Management and Administration

(continued)

TRUSTEE INDEPENDENT AUDITOR

Northern Trust Fiduciary Services (Ireland) Ltd. Grant Thornton George’s Court Chartered Accountants and Registered Auditors

54 - 62 Townsend Street 24-26 City Quay

Dublin 2 Dublin 2

Ireland 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

LISTING SPONSOR SWEDISH PAYING AGENT

Dillon Eustace Skandinaviska Enskilda Banken AB (publ)

33 Sir John Rogerson’s Quay Sergels Torg 2

Dublin 2 SE-106 40 Stockholm

Ireland Sweden

SWISS REPRESENTATIVE SWISS PAYING AGENT

First Independent Fund Services Ltd Neue Helvetische Bank AG

Klausstrasse 33 Seefeldstrasse 215

CH-8008 Zurich CH-8008 Zurich

Switzerland Switzerland

*The sales prospectus, the trust deed, the Key Investor Information Documents ("KIIDs"), the annual and semi annual

reports of the Fund 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.

4


Investment Manager’s Report

Atlantis Asian Fund For the six months ended 30th June 2015

Investment Comment

Atlantis Asian Fund was up 15.0% during the first six months of 2015, compared to a 4.5% gain in the MSCI Far East

Asia ex Japan benchmark over the same period, an outperformance of 10.5%. The strong outperformance was due to the

Fund being overweight in China, underweight in Taiwan/Korea and to effective stock selection.

Asian stock markets rose steadily in the first quarter. This was due in part to mixed economic indicators out of the United

States (US) prompting a deferment to beyond the first half of 2015 in the expected date of a rate hike by the Federal

Reserve. It was also the result of monetary easing in China, culminating in a bull cycle for Chinese equities which was

further fuelled by sympathetic margin financing rules and the Stock Connect scheme that allows domestic Chinese funds

to invest in Hong Kong-listed equities. The rally caused the MSCI Far East Ex-Japan benchmark to gain 10% in less than

six weeks from the start of the second quarter. However, the markets retreated when the Chinese authorities curbed

margin financing and investors began to realise that, excluding banks, A-shares were trading at valuations in excess of

50x P/E ratios. Many stocks declined by the stock exchange limit of 10% for several days consecutively. At the peak of

the crisis in June, some 1,700 stocks were suspended on the Shanghai Stock Exchange. This prompted a slew of measures

from the authorities and a support fund to stem the plunge in the market.

Taiwan and Korea’s tech-laden equity markets were flat during this reporting period as the strong growth phase for

mobile devices has ebbed. Samsung saw its market share decline after the launch of the iPhone 6 last year. The

Association of Southeast Asian Nations (ASEAN) stock markets generally underperformed, with the exception of the

Philippines, due to that country’s strong macroeconomic indicators and good reporting season. Indonesia was the most

disappointing in terms of performance due to frustrations over President Jokowi’s attempts to push through policies in the

face of resistance from both within and outside his party. Infrastructure spending faltered, which led to slower than

expected GDP growth.

Our stock picks in Singapore and China added value and we took the opportunity to trim some positions.

Outlook and Strategy

Entering the second half, the markets face three potentially destabilising events. The first is the US Fed rate hike, the

consensus for which now points to a 25bp rise by year-end but the possibility of a faster rate of increase has not been fully

discounted by the market. The second is the Greek bailout crisis. At the time of writing, it seems that Greece will receive

funding and remain within the Eurozone. However, any changes to this precarious settlement could have a damaging

contagion effect on the Euro currency and the wider economy. The third is the Chinese stock market situation, though this

seems to have stabilised on the back of measures recently implemented by the Chinese authorities.

In light of the recent stock market correction in China, we see some value in internet related stocks there. In Indonesia,

the equity markets are looking cheap with expectations low. Infrastructure is now back on track in Indonesia, with

contractor order books showing healthy increases. Though we should see some spill-over effects from infrastructure into

other parts of the Indonesian economy, we remain underweight there. In Taiwan, we see some opportunities in the Apple

supply chain on the back of the upcoming iPhone 6S launch.

Atlantis Investment Management (Hong Kong) Limited

July 2015

5



Atlantis China Fund For the six months ended 30th June 2015

Market Review and Performance

For the six months ended 30th June 2015, the Fund recorded a return of +50.0% compared to the MSCI China Free Index

return of 12.6%. This represents a 37.4% outperformance over the six months under review.

2015 has been an epochal year. We have already seen a reawakening of a China market that has been slumbering for too

long, along with a dramatic selloff that rolled back some but by no means all of the year’s gains.

2015 started with additional weaker-than-expected economic data in China as Q4 2014 results pointed towards continued

downward growth momentum. The official manufacturing purchasing managers index (PMI) dropped to an 18-month low

of 50.1 in December, driven by lower new orders and production. A correction ensued, following on from the dramatic A-

share rally that had been caused by the surprise interest rate cut on 22nd November 2014 and the general expectation of

further easing in future. Interbank interest rates remained high in January-March however, which likely added upward

pressure to funding costs in the real economy.

Despite the correction in January, we expressed our confidence at that time that 2015 would be a better year for Chinese

stock market investors. That belief, based on the expectation that a loosening monetary policy and more constructive

fiscal policies were likely to create momentum and liquidity was subsequently proven right, for example when a larger-

than-expected reserve-requirement ratio (RRR) cut of 100bps was announced on 19th April. After a flat January and

February, the Fund recovered significantly in March as P-chips rebounded, outperforming the MSCI China Free by 6.4%.

The Fund continued to fare well in the second quarter, and for May, Lipper Hindsight ranked Atlantis China Fund

number one among forty-five China focused peer funds in the Lipper Fund Universe in recognition of its strong

performance.

After years of poor performance caused by the anti-corruption campaign, various unsuccessful attempts at reform and by

the deleveraging of the domestic economy, enthusiasm for the Chinese stock market proceeded to return in full force in

the first half. A rally that began in July last year led to a gain of 68% in the Shanghai Index at the end of Q1 2015,

pushing the Index above 4000 for the first time since early 2008. Moreover, the rally on the Mainland spilled over into

world equity markets, particularly in Hong Kong. By the end of March 2015, the Hang Seng China Enterprises Index

added 4% on the year, compared with 17% in Shanghai and 39% in Shenzhen. After early April’s rally in Hong Kong, the

trading premium between Shanghai listings of Chinese companies and their Hong Kong counterparts narrowed from 35%

at the end of March to around 24%. We were delighted to see that our portfolio was well positioned as our core holdings

rallied significantly more than the benchmark. We increased exposure to A-shares at the end of the first quarter when we

perceived signs of a correction in April, and, despite their sharp correction in May, felt that talks of Chinese A-shares

being included in the MSCI Emerging Markets Index would underscore market sentiment.

China’s Q1 2015 gross domestic product (GDP) grew at its slowest pace since Q1 1999 (6.6% year-over-year (YoY)) at

7% YoY, down from 7.3% YoY growth posted in Q4 2014. On a quarterly basis, GDP growth slowed to 1.3% quarter-

on-quarter (QoQ) in Q1 2015, compared with 1.5% QoQ growth in the previous quarter. Industrial production rose 5.6%

YoY in March, the lowest level since the 2008 financial crisis. Fixed asset investment grew 13.5% YoY in Q1 2015, the

weakest expansion since 2000. Property investment rose only 8.5% YoY in Q1 2015, down from a 10.4% YoY increase

in January to February 2015, hitting a five-year low. Retail sales gained 10.2% YoY in March. Driven by production and

employment sub-indices, the headline PMI rebounded to 50.1 at the end of first quarter, beating market expectations, and

remained at 50.1 in April. China’s headline consumer purchase index (CPI) edged up 1.4% YoY in March from 1.1%

YoY at the beginning of the year. However, CPI reached a five-year low of 1.5% YoY in April, half the government’s

official target of 3%. PPI deflation slightly narrowed to -4.6% YoY in March, compared with -4.8% YoY the previous

month. Producer price index (PPI) deflation remained identical to the March reading of -4.6%, at a 38-month low.

China’s exports unexpectedly contracted 15% YoY in March following an increase of 48.3% YoY in February. At the

end of the first quarter, new lending grew stronger than expected to RMB1.18 trillion (renminbi), compared with

RMB1.02 trillion in February. Q1 2015 new lending rose 14% YoY to RMB3.67 trillion. Again below expectations, April

new lending came in at RMB708 billion, down from RMB1.18 trillion in March. At the end of first quarter, the

proportion of loans to corporations showed signs of picking-up, a reflection of the People's Bank of China (PBoC’s)

“window guidance”: accelerating specific types of loans aimed at preventing a “balance-sheet recession”.

6




(continued)

Market Review and Performance (continued)

The key event in the second quarter was “Made in China 2025”, a plan unveiled by the State Council on 19th May 2015.

The 10-year national strategy is widely regarded as a design to enhance competitiveness in China’s manufacturing sector

through automation, innovation and integrated technology and industry. The plan, believed to be inspired by the German

“Industry 4.0” – a concept released last year which aims to boost the comparative advantages in equipment manufacturing

in the Eurozone – is considered ambitious as China is reported to be planning to invest RMB8.02 trillion in the coming

few years to modernise and transform its manufacturing industry through smart technologies. This investment aims to

relieve the increasing pressure on China from other Asian emerging markets due to China’s rising labour costs. The plan

is to promote breakthroughs in ten key sectors where China wants to achieve a competitive advantage in the future,

including information technology, aerospace, railways, electric vehicles, electric power equipment, biopharmaceuticals

and medical devices. At present, China lags far behind Germany in industrial automation, with that country’s Industry 2.5

and Industry 3.0 considered more in line with China’s current conditions. If this plan succeeds, it would be a big step for

China in its transformation from a labour-intensive, low value producing economy towards a higher value-added

manufacturing nation.

Also in May, the PBoC announced that it cut the benchmark one-year lending rate by 25 basis points (bps) to 5.10% and

the one-year deposit rate by 25bps to 2.25%. Meanwhile, it raised the deposit rate ceiling from 1.3x the benchmark rate to

1.5x; the third consecutive interest rate cut in the current easing cycle, following the last two rate cuts on 1st March 2015

and 22nd November 2014. In our view, these cuts will help stabilise the macro environment and create more room for

reforms.

As previously stated, the correction was deeper and faster than we, or anyone, expected. Aside from interest rate cuts,

Beijing launched an unprecedented number of measures aimed at halting the stock market sell-off and in order to “uphold

market stability”, as stated by the PBoC. The temporary correction in the equities market also spurred a series of actions

from the central bank, including their announcement that it would provide liquidity to China Securities Finance, a state

entity that makes margin financing available to brokerages. This followed an announcement by the China Securities

Regulatory Commission (CSRC) that initial public offerings (IPOs) would be temporarily suspended, while 21 of the

country’s largest brokerages went on to confirm that they would contribute RMB120 billion to a market stabilisation fund.

Further, the authorities have introduced tighter restrictions on index futures, such as raising the margin requirement from

10% to 30% for non-hedging short positions, as well as capping the daily limit of one-way new positions to 1,200 lots for

the small-to-mid cap CSI 500 index.

In spite of the volatile markets, we observed many good companies with solid earnings growth having been oversold

during this panic sell-off. We saw this as a one-off opportunity to be active in the midst of such turmoil. While the Fund

felt the pain of market turbulence in both A-share and Hong Kong markets in June, it recovered strongly at the end of the

first half given the resilience of our core holdings. We remained calm and raised cash levels when possible. As a result,

the Fund was able to post a +50.0% gain year to date (YTD), outperforming the benchmark by 37.4% for the first six

months of 2015.

The Fund held 28 stocks in the portfolio at the end of June. The top 10 and 20 names accounted for 62% and 91% of the

portfolio respectively, our concentrated approach holding strong amid the market turbulence. The top three sectors are

retail/consumer goods, TMT/internet and healthcare, accounting for 59% of the portfolio.

The Fund had delivered a cumulative return of 719.5% at the end of June since its inception in March 2003,

outperforming the MSCI China Free Index by 296.5%. It further broke its historical high on 2nd June with a NAV of

US$11.75.

7




(continued)


China is in a state of transition to “the new normal” and an economic slowdown is widely seen as not only inevitable but

also necessary in the short-to-medium term as the country moves away from its traditional dependence on smokestack

industries towards domestic consumption and services. On the policy front, we expect China will continue gradually to

open up its capital account, deepen financial market reforms and encourage the private sector to adopt a larger role. For

equity markets, despite the current turbulence, the future still looks positive. The latest interest rate cuts, together with

other supportive policies, demonstrate Beijing’s relentless effort to revive investors’ confidence, adding weight to the

view that the government will do all it can to avert a stock market collapse. China still provides growth at a measured

pace and its gradual opening up is inevitable. Sooner or later the renminbi will become a currency of international trade

and Chinese A-shares will take up more than 10% of global indices. After close on 10th July, the MSCI China (H-shares)

traded at 9x FY2016 P/E, roughly a 24% discount to its historical 10 year average of 11.8x and an excellent opportunity

for bottom-fishing.

As we observe persistent capital outflows and weak M2 growth, the PBoC will likely increase liquidity injections in order

to stabilise overall financial conditions. Further, with the deposit rate ceiling lifted to 1.5x the benchmark interest rate, we

think that the next move will be to fully liberalise deposit interest rates when the PBoC cuts interest rates again, likely

before year-end.

In the long term, Beijing’s pursuit of new economic and political goals, to be accomplished most likely through President

Xi’s financial diplomacy, as embodied in the One Belt, One Road program, together with his pledged domestic financial

reforms, should have a profound effect on China’s fundamentals. Should this succeed, China could help release the

potential for another two decades of catch-up growth, lifting the country’s current middle-income status of US$12,000

per capita GDP.


July 2015

8



Atlantis China Healthcare Fund For the six months ended 30th June 2015


For the six months ended 30th June 2015 the Fund recorded a return of 22.14%. There is no benchmark for the Fund’s

strategy but the closest comparison is provided by the MSCI Asia ex Japan Healthcare Index which was up 9.80% over

the same period. The Fund outperformed this index by 12.34%.

At the start of 2015 the sector continued to be soft, mainly due to the results from the preliminary drug tendering

processes in the Hunan and Zhejiang provinces, and concerns over the upcoming tenders. At the time we expressed our

belief 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 for around 3

months but then rebounding sharply, we anticipated that a recovery may occur around early March. Indeed, we were

later proved correct when the Fund rallied in March with a positive return of 9.7%, and another +10.79% for the rest of

the second quarter.

This significant sector rebound followed on from a quiet January and February when the government had busied itself

rolling out reform programmes. As anticipated, overseas healthcare names recovered off the back of the earnings season,

with most of the companies delivering solid results and alleviating concerns around the sector caused by the recent

provincial drug tendering. In broader terms, Beijing gave the green light to Chinese mutual funds to enter the Hong

Kong stock market via the ‘Through Train’ scheme in late March, opening the door to potentially massive inflows to

the Hong Kong market from Mainland fund managers hunting for valuation bargains. Overseas healthcare names were

among those to benefit most from this, the majority being small to medium market caps with better track records and at

much cheaper valuations than their A-share peers.

On the policy front, at the third session of the 12th National People’s Congress (NPC) on 5th March 2015, Premier Li

Keqiang’s report highlighted the government’s continued focus on healthcare in 2015. 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 were included on the agenda for further progress. Premier Li also announced that most

government set drug prices will be lifted. National Development and Reform Commission officials at the NPC added

that the price reform plan may be released in 2015. While the details are yet to be finalised, we saw fixed

reimbursement prices, highlighted in the draft price reform plan released in November 2014, may be the possible new

price regulation for drugs in the reimbursement list. The Premier also noted that the price cut for high-priced drugs and

cost controls would continue in 2015, while service charges may also increase.

The State Council also announced its priorities for healthcare reform this year, which included implementing zero mark-

up policies at all county levels and selected trial city-level public hospitals, establishing a merits-based pay system for

physicians, prioritising the use of domestic medical devices over imported at public hospitals, 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 for

the coming few years.

In the second quarter, we observed more major developments within the industry, including the Five-Year Plan for

Traditional Chinese Medicine (TCM) and the “Made in China 2025” plan. For TCM, goals such as taking further steps

to protect TCM herbal resources, establishing e-commerce platforms and strengthening the quality control of TCM

products will help key players in this subsector progress and consolidate. The “Made in China 2025” plan prioritises the

pharmaceutical, biotech and medical devices industry as one of the top ten manufacturing industries for development.

The government plans to invest in high-end and innovative technologies for these industries with the aim of upgrading

them to higher levels of productivity.

The sector’s fundamentals remained strong in the second quarter. Ministry of Finance data show that government fiscal

spending on healthcare reached RMB99.5 billion (renminbi) in May (+12.6% year-over-year (YoY) versus +29.8%

YoY in April and +34.1% YoY in May 2014), representing 7.6% of total fiscal expenditure (versus 8.0% in April and

6.9% in May 2014). Total fiscal spending on healthcare from January to May 2015 grew +16.5% YoY to reach

RMB446.2 billion, representing 7.6% of total expenditure (versus 7.6% in April and 7.3% over the same period last

year). We believe that government spending on healthcare has ample room to increase further as the sector still

comprises less than 5% of the nation’s gross domestic product (GDP).

9



Atlantis China Healthcare Fund For the six months ended 30th June 2015

(continued)

Market Review and Performance (continued)

In the equity markets, while the rally continued in April and May, the Fund returning 15.2% and 8.6% respectively in

these months, the A-share stock market fell 7.3% in June as the Chinese government tried to clamp down on unregulated

margin lending, which has been one of the reasons behind the rally.

Aside from interest rate cuts, Beijing launched an unprecedented number of measures aimed at halting the stock market

sell-off and in order to “uphold market stability”, as stated by the People's Bank of China (PBoC). The temporary

correction in the equities market also spurred a series of actions from the central bank, including their announcement that

it would provide liquidity to China Securities Finance, a state entity that makes margin financing available to brokerages.

This followed an announcement by the China Securities Regulatory Commission (CSRC) that initial public offerings

(IPOs) would be temporarily suspended, while 21 of the country’s largest brokerages went on to confirm that they would

contribute RMB120 billion to a market stabilisation fund. Further, the authorities have introduced tighter restrictions on

index futures, such as raising the margin requirement from 10% to 30% for non-hedging short positions, as well as

capping the daily limit of one-way new positions to 1,200 lots for the small-to-mid cap CSI 500 index.

While healthcare stocks were dragged down by the market correction, no specific policy or event had a real impact on the

sector’s fundamentals. We believe that some high quality names have been oversold, including small cap names with

earnings likely to beat consensus. Post correction, A-share healthcare names were trading at around 42x 2016e P/E,

slightly lower than the historical P/E of 45x for the past 3 years. A-share healthcare names eligible for the Shanghai-Hong

Kong Through Train scheme (39 names) were trading at around 28x 2016e P/E, while overseas-listed Chinese healthcare

names were trading at around 17x 2016e P/E, lower than the average P/E of 19x for the past 3 years.

The Fund was up 22.1% for the first half of 2015, down 11.5% from its high in May, but still outperforming the MSCI

China Free Index (12.6%) and the MSCI Asia XJ/Healthcare Index (9.8%) by 9.5% and 12.3% respectively,

demonstrating our stock selection capability. The Fund held 26 names at the end of June 2015, with 61.9% in Hong Kong

listed names, 39.0% in A-shares and 4.1% in S-chips.


Heading into the second half of the year and beyond, we see particularly good growth prospects for biologics/biosimilars.

The biopharmaceutical industry was highlighted in Premier Li’s report as a key emerging high-tech sector, and the release

of a trial version of guidelines for the research, development and approval of biosimilars represents a critical step in the

improvement of the regulatory framework for biosimilars.

The main theme for the second half of 2015 will be provincial tendering. We expect to see milder and more rational

average selling price cuts compared to previous years. As always, innovative drugs, and those with limited market

competition, should have stronger pricing power. We also expect that the interface of mobile/internet technology and

healthcare will see increasing opportunities for growth in the coming years. Premier Li has announced that the

government will be launching an “internet +” action plan, already backed by an RMB40 billion venture capital fund and

with more funding expected, to drive this cross-sector collaboration.

Entering July, we expect more market volatility as the effect of the margin financing clamp down may be amplified. This

could yield the sort of great buying opportunities that only arise during a market correction. We remain upbeat on the

outlook of the Chinese healthcare sector in the longer term as the fundamentals and long term growth prospects of the

industry are solid.


July 2015

10



Atlantis Japan Opportunities Fund For the six months ended 30th June 2015


Influenced by expectations of an improving Japanese economy, by rising earnings for the fiscal year ended March 2015

and beyond, by the weaker yen, by continued net buying by overseas investors in most months and net buying by local

investors in some months, by quantitative easing and by continued strong government efforts to pass a series of economic

reform bills, the Tokyo Market moved higher during the first six months of calendar year 2015. Larger stocks continued

to outperform, with the TOPIX up 13.28% and the Tokyo Second Market up 11.06%, compared with an 11.32% gain for

the Fund (all figures calculated in US dollars and on a simple return basis).

We continued to remain overweight in medium-sized and smaller stocks, since this is where we are finding best value and

earnings growth. As we are not traders, our time horizon is usually several years and we continue to believe that our

stocks will outperform the market over the medium and to longer term, as they have generally done in the past. Since

inception the Fund is up 141%, versus a gain of 33.42% 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. As at June 30th, the yen closed at JPY 122.5 to the US dollar, a fall of 2.5% from the 2014

year end rate of JPY 119.42.

Portfolio Activity

The Fund now has 53 stocks, compared with 45 stocks at the end of last year. The Fund is now overweight in the

following sectors: Services, Precision Instruments, Real Estate and Electrical Machinery.

We have been slowly shifting to domestic companies and cutting our exposure to exporters, which have performed very

nicely over the last few years. We remain underweight in heavy industry, utilities, shipping, shipbuilding, fishing, drugs,

iron and steel, nonferrous metals and oil related stocks.

Major sales during the last six months included Japan Property Management Center, Internet Initiative Japan, Mimaki

Engineering, Obara Group and Sato Holdings. Major purchases included Anicom Holdings, Bengo4.com, Nippon

Commercial Development, S-Pool and Tera Probe.

At this time we are buying mostly medium-sized and smaller stocks but are holding some larger companies, including

Mitsubishi UFJ Financial, Fanuc and Denso.

Since we have a positive view on the market outlook, we will continue to limit our cash holdings and remain fully or

almost fully invested.


As the Japanese economy continues to recover, albeit a little more slowly than we had expected, we project steady gross

domestic product (GDP) growth over the next few years. We also expect to see corporate earnings maintain a high level

of growth, helped in part by rising sales but even more by widening profit margins. Companies are increasingly attuned to

matters of corporate governance and are paying special attention to return on equity (ROE), return on investment (ROI),

equity ratio, operating profit margins, cost cutting, dividend pay-outs and productivity. This should continue to have a

positive impact on long-term earnings growth and managements’ attitude toward their shareholders.

One way of cutting costs is to increase productivity and we project steadily rising private expenditure in coming years.

The stronger yen is helping to boost exports and rising productivity should also help raise competitiveness.

Exports have continued to recover but as always will remain sensitive to the trends of world trade, the yen/dollar rate,

worldwide private capital investments and global GDP growth.

11



Atlantis Japan Opportunities Fund For the six months ended 30th June 2015

(continued)

Outlook and Strategy (continued)

Unemployment is now low, only a little above 5%, and there are labour shortages in many industries. The result is higher

wages for skilled workers, with many older workers now continuing to work well past retirement age. Increasing numbers

of women are also re-entering the labour market. Bonuses are up, overtime is up and wages are increasing, all of which

are slowly beginning to lift consumer spending, which accounts for well over 50% of Japanese GDP. We also observe

improving housing starts and many homeowners replacing older houses or fixing up existing houses or apartments. In fact

there are a number of listed companies who buy up used houses/apartments and fix them up for re-sale to the public.

There is limited inflation and we expect interest rates to remain low for some time. We also expect a continuing rise in the

monetary base, up over 34% year on year in June. The real estate market is now coming alive and we think

housing/building prices in the major cities will continue to creep slowly higher over the next few years.

Possible negatives include problems in Greece, slowing growth in Asia, especially China, slower than expected expansion

in the United States and weak overseas stock markets. The yen has been weak for some time and investors now expect a

sideways-to-weaker yen. A strong yen may also have a negative impact on the Tokyo Market, at least at this point in time.

During 2014, and in most months this year to date, overseas investors have been big buyers of Japanese equities, now

accounting for over 30% of Japanese stock ownership. In recent months there have been indications that local Japanese

investors are becoming more active in buying Japanese stocks. Local individuals were net buyers in both January and

June. Local corporations have been steady net buyers this year and local investment trusts have been net buyers in four of

the last six months. We think local investors could very well become net buyers in Japanese equities between now and the

end of the year.

In light of all of the above we continue to think the positives outweigh the negatives, but we must of course keep an open

mind and continue to be highly selective in what we buy and hold. As always, we will place stress on value and projected

earnings growth.


July 2015

12


Atlantis Asian Fund

Portfolio Statement As at 30th June 2015

Fair Value % of

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

Equities (31 Dec 2014: 91.87%)

Basic Materials (31 Dec 2014: 4.01%)

63,000 Jindal Steel & Power INR 84,785 0.43

2,188 OCI KRW 176,539 0.90

500,000 Terratech SGD 24,340 0.12

1,388,000 Xingda International HKD 402,846 2.04

Total Basic Materials 688,510 3.49

Communications (31 Dec 2014: 4.41%)

488,000 China Telecom HKD 286,416 1.45

1,188,000 Indosat IDR 356,422 1.81

1,388,000 O-Net Communications HKD 465,511 2.36

2,388,000 SIM Technology HKD 178,661 0.91

Total Communications 1,287,010 6.53

Consumer, Cyclical (31 Dec 2014: 20.70%)

2,888,000 Boshiwa International* HKD - -

188,000 Dah Chong Hong Kong HKD 97,730 0.49

2,225,900 Electronic City Indonesia IDR 215,369 1.09

8,880,000 Emperor Watch and Jewellery HKD 389,456 1.98

4,088,000 Erajaya Swasembada IDR 180,905 0.92

488,000 GMM Grammy THB 196,498 1.00

1,488,000 GOME Electrical Appliances HKD 328,220 1.67

2,688 Lotte Shopping KRW 565,096 2.87

2,388,000 Maoye International HKD 548,303 2.78

1,888,000 Mitra Pinasthika Mustika IDR 86,381 0.44

188,000 OUE SGD 278,042 1.41

8,000,000 Pacific Andes International HKD 299,264 1.52

1,688,000 Parkson Retail HKD 352,739 1.79

5,388,000 Ramayana Lestari Sentosa IDR 278,846 1.41

288,000 Shangri-La Asia HKD 401,963 2.04

288,000 Sinotruk Hong Kong HKD 173,862 0.88

688,000 Thai Airways International THB 266,844 1.35

Total Consumer, Cyclical 4,659,518 23.64

Consumer, Non-cyclical (31 Dec 2014: 6.28%)

10,888,000 Adi Sarana Armada IDR 117,598 0.60

688,000 Biosensors International SGD 416,722 2.11

13


Atlantis Asian Fund

Portfolio Statement As at 30th June 2015 (continued)

Fair Value % of


Equities (31 Dec 2014: 91.87%) (continued)

Consumer, Non-cyclical (31 Dec 2014: 6.28%) (continued)

688,400 China Agri-Industries HKD 392,491 1.99

118,000 Kinh Do VND 231,510 1.18

338,000 Malee Sampran THB 320,232 1.62

1,688,000 Sampoerna Agro IDR 217,133 1.10

988,000 Tipco Foods THB 415,378 2.11

Total Consumer, Non-cyclical 2,111,064 10.71

Diversified (31 Dec 2014: 0.00%)

168,000 NWS Holdings HKD 243,147 1.23

Total Diversified 243,147 1.23

Energy (31 Dec 2014: 5.22%)

1,688,000 Esso Thailand THB 317,354 1.61

1,388,000 GCL-Poly Energy HKD 320,486 1.63

Total Energy 637,840 3.24

Financial (31 Dec 2014: 10.32%)

2,388,000 Minmetals Land HKD 304,955 1.55

388,530 NBB Investment VND 427,445 2.17

3,188,000 Pembangunan Jaya Ancol IDR 612,134 3.10

688,000 Poly Property HKD 332,802 1.69

238,800 Thuduc Housing Development VND 183,903 0.93

Total Financial 1,861,239 9.44

Industrial (31 Dec 2014: 22.71%)

688,000 Beijing Capital International Airport HKD 793,401 4.02

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

1,688,000 China Automation HKD 278,708 1.41

1,688,000 Holcim Indonesia IDR 189,912 0.96

188,880 India Cements INR 279,553 1.42

44,888 Lumens KRW 186,924 0.95

188,000 Merry Electronics TWD 435,658 2.21

188,000 Mudajaya MYR 68,264 0.35

638,000 Neptune Orient Lines /Singapore SGD 388,808 1.97

1,388,000 Salcon MYR 285,105 1.45

14


Atlantis Asian Fund


Fair Value % of



Industrial (31 Dec 2014: 22.71%) (continued)

2,088,000 Sinotrans Shipping HKD 511,742 2.60

13,880 Sung Kwang Bend KRW 147,454 0.75

1,288,000 TCC International HKD 388,775 1.97

1,988,000 Tianjin Port Development HKD 471,847 2.39

63,000 TPK TWD 364,469 1.85

168,000 Unimicron Technology TWD 86,302 0.44

438,000 Zoomlion Heavy Industry Science and Technology HKD 284,190 1.44

Total Industrial 5,161,112 26.18

Technology (31 Dec 2014: 17.71%)

688,000 Compal Electronics TWD 524,008 2.66

3,088,000 Comtec Solar Systems HKD 485,964 2.46

128,000 Epistar TWD 171,126 0.87

1,538,000 Innovalues SGD 868,701 4.41

738,000 Kingdee International Software HKD 439,810 2.23

16,888 Seoul Semiconductor KRW 242,241 1.23

Total Technology 2,731,850 13.86

Utilities (31 Dec 2014: 0.51%)

1,388,000 Metro Pacific Investments PHP 145,603 0.74

Total Utilities 145,603 0.74

Total Equities 19,526,893 99.06

Rights (31 Dec 2014: 0.00%)


644,000 TCC International Rights HKD 11,464 0.06

Total Industrial 11,464 0.06

Total Rights 11,464 0.06

15


Atlantis Asian Fund


Fair Value % of

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

Total Value of Investments 19,538,357 99.12

Cash 251,626 1.28

Other Net Liabilities (79,177) (0.40)

Net Assets Attributable to Holders of Redeemable

Participating Shares 19,710,806 100.00

Analysis of portfolio % of

Assets

98.30

Other Assets 1.70

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

16


Atlantis China Fund


Fair Value % of


Equities (31 Dec 2014: 93.77%)

Basic Materials (31 Dec 2014: 0.00%)

9,527,000 Qunxing Paper* HKD - -

Total Basic Materials - -


99,000,000 China E-Learning HKD 5,299,683 3.37

30,000,000 Fortunet e-Commerce HKD 8,900,527 5.67

15,000,000 Media Asia HKD 1,470,522 0.94



19,000,000 C.banner International HKD 8,063,361 5.14

30,000,000 China LotSynergy HKD 1,896,199 1.21

60,003,000 O Luxe Holdings HKD 4,024,787 2.56



30,000,227 Brilliant Circle International HKD 7,352,665 4.68

10,000,000 Golden Meditech HKD 1,857,501 1.18

37,500,000 Hua Han Bio-Pharmaceutical HKD 7,014,002 4.47

46,000,000 Ming Fai International HKD 6,289,706 4.01

40,000,000 Silver Base HKD 10,009,868 6.37

12,000,000 Tibet 5100 Water Resources HKD 4,303,211 2.74


Financial (31 Dec 2014: 18.45%)

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

20,000,000 China Sandi HKD 2,218,682 1.41

30,000,000 eSun HKD 4,334,170 2.76

163,500,000 Renhe Commercial HKD 13,497,844 8.60

33,000,000 Silver Grant International HKD 5,704,077 3.63


17


Atlantis China Fund


Fair Value % of




30,000,000 China Huarong Energy HKD 2,592,762 1.65

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

25,000,000 China Water Affairs HKD 13,415,287 8.54

15,022,000 Hao Tian Development HKD 2,267,150 1.44

10,000,000 Nanjing Sample Technology HKD 13,982,857 8.91



7,000,000 Alibaba Health Information Technology HKD 7,277,793 4.63

10,000,000 Chinasoft International HKD 5,456,410 3.47


Utilities (31 Dec 2014: 3.39%) - -


Warrants (31 Dec 2014: 4.86%)

700,082 Nantong Jinghua Pharmaceutical (Citigroup Global

Markets) 12/02/2016

USD 4,637,860 2.95

100,000 Jinghua Phramaceutical -A (Credit Suisse AG (Nassau)

Branch) 19/06/2020

USD 662,473 0.42

600,000 Nanjing Xinjiekou (Credit Suisse AG (Nassau) Branch)

04/05/2020

USD 3,631,350 2.31

300,000 Nantong Jinghua Pharmaceutical -A (CICC Financial

Products) 28/01/2018

USD 1,987,421 1.27

500,060 Searainbow Holdings (CLSA Financial Products)

25/11/2019

USD 3,951,450 2.52

100,000 Shenzhen O-film Tech -A (Credit Suisse AG (Nassau)

Branch) 19/05/2020

USD 544,106 0.35

400,000 Shenzhen O-film Tech -A (Credit Suisse AG (Nassau)

Branch) 06/05/2020

USD 2,176,423 1.39

700,000 Shenzhen Terca Technology -A (CICC Finacial


USD 1,750,847 1.11

700,032 Suzhou Lopsking Aluminium -A (BOCI Financial


USD 2,225,065 1.42

Total Warrants 21,566,995 13.74

18


Atlantis China Fund


Fair Value % of



Bank Overdraft (1,810,697) (1.15)

Other Net Assets 42,758 0.03



Analysis of portfolio % of Total

Assets

Transferable securities admitted to an official stock exchange

listing or traded on a regulated market 99.10

Other Assets 0.90

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.

†Trading is suspended and value was written down to zero on 30 July 2013.

19


Atlantis China Healthcare Fund


Fair Value % of


Equities (31 Dec 2014: 68.70%)


100,000,000 China E-Learning HKD 5,353,215 3.60



19,500,000 C.banner International HKD 8,275,555 5.56



2,000,000 3SBio HKD 2,515,366 1.69

10,000,000 Biosensors International SGD 6,057,003 4.07

5,000,000 Bloomage BioTechnology HKD 8,823,131 5.93

8,000,000 China Medical System HKD 11,206,924 7.53

7,000,000 China NT Pharma HKD 2,149,026 1.44

45,001,085 Golden Meditech HKD 8,358,957 5.62

38,000,000 Hua Han Bio-Pharmaceutical HKD 7,107,522 4.78

20,000,000 Lifetech Scientific HKD 5,727,296 3.85

3,300,000 Phoenix Healthcare HKD 6,282,998 4.22

12,000,000 PW Medtech HKD 4,535,399 3.05

5,400,000 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical HKD 6,450,173 4.34


Diversified (31 Dec 2014: 0.94%)

50,000,000 China Wah Yan Healthcare^ HKD 1,560,817 1.05

Total Diversified 1,560,817 1.05


8,000,000 China Water Affairs HKD 4,292,892 2.89



9,000,000 Alibaba Health Information Technology HKD 9,357,163 6.29



20




Fair Value % of


Warrants (31 Dec 2014: 29.23%)

65,500 Hainan Haiyao (CICC Financial Trading) 08/04/2018 USD 528,141 0.36

434,500 Hainan Haiyao (Citigroup Global Markets Holdings)

12/02/2016

USD 3,503,467 2.36

500,000 Nantong Jinghua Pharmaceuticals (Goldman Sachs) 13/06/2016

USD 3,312,369 2.23

1,104,950 Nantong Jinghua Pharmaceuticals -A (CICC Financial Trading)

28/01/2018

USD 7,320,004 4.92

300,000 Ringpu Biotech (Credit Suisse Nassau) 10/07/2020 USD 833,092 0.56

500,082 Searainbow Holdings (Standard Chartered Bank Singapore)

24/11/2015

USD 3,951,624 2.66

500,000 Searainbow Holdings -A (Credit Suisse AG (Nassau) Branch)

19/06/2019

USD 3,950,976 2.66

1,000,081 Shanghai Fosun -A (Macquarie Bank) 29/03/2017 USD 4,667,367 3.14

180,076 Shanghai Kehua Bio-Engineering (Credit Suisse (Nassau)

Branch) 17/10/2019

USD 1,238,839 0.83

220,000 Shanghai Kehua Bio-Engineering -A (UBS) 16/06/2016 USD 1,513,498 1.02

250,000 Shanghai Pharmaceuticals (CLSA Financial Products)

14/10/2019USD 897,839 0.60

550,031 Shanghai Pharmaceuticals -A (Macquarie Bank) 01/06/2017 USD 1,975,357 1.33

200,000 Shanghai Pharmaceuticals -A (UBS AG) 17/06/2016 USD 718,271 0.48

440,152 Shinva Medical (UBS AG) 25/09/2015 USD 4,161,605 2.80

1,200,000 Tianjin Ringpu -A (Citigroup) 12/02/2016 USD 3,332,366 2.24

50,072 Tibet Rhodiola Pharmaceuticals - A (BOCI Financial Products)

27/11/2015

USD 485,862 0.33


31/08/2015

USD 2,911,749 1.96


31/08/2015

USD 3,396,029 2.28

300,000

Tibet Rhodiola Pharmaceuticals (Goldman Sachs) 10/08/2015

USD 2,910,982 1.96

202,000 Tibet Rhodiola Pharmaceuticals -A (CLSA Financial Products)

09/06/2020

USD 1,960,061 1.32

300,171 Yunnan Baiyao (CLSA Financial Products) 02/09/2019 USD 4,176,061 2.81

Total Warrants 57,745,559 38.85

21




Fair Value % of



Cash 2,624,288 1.76

Other Net Liabilities (9,697,617) (6.52)



Analysis of portfolio % of Total

Assets



Other Assets 1.93

100.00

^Previously known as China Renji Medical

22


Atlantis Japan Opportunities Fund


Fair Value % of


Equities (31 Dec 2014: 98.88%)


8,000 CyberAgent JPY 379,785 1.18

10,000 Hikari Tsushin JPY 674,919 2.09

50,000 M3 JPY 1,005,842 3.11

20,000 Start Today JPY 559,709 1.73



35,000 Ai JPY 619,439 1.91

11,000 Denso JPY 547,910 1.69

40,000 Doshisha JPY 709,237 2.19

20,000 Komehyo JPY 616,906 1.91

15,000 Kura JPY 476,774 1.47

20,000 Nippon View Hotel JPY 361,972 1.12

42,000 Yonex JPY 686,702 2.12



5,000 Ajis JPY 114,802 0.36

18,000 Asahi Intecc JPY 1,233,975 3.82

30,000 Benefit One JPY 672,877 2.08

35,000 Bengo4.com JPY 643,747 1.99

15,000 CYBERDYNE JPY 390,979 1.21

52,000 Daiken Medical JPY 518,364 1.60

56,000 Elan JPY 594,844 1.84

30,000 Gakujo JPY 319,892 0.99

25,000 Hito Communications JPY 401,602 1.24

22,000 Kanamoto JPY 558,157 1.73

15,600 Kyoritsu Maintenance JPY 1,003,162 3.10

33,000 Nihon M&A Center JPY 1,361,686 4.21

80,000 S-Pool JPY 689,627 2.13

43,000 Topcon JPY 1,036,483 3.20

27,000 Unicharm JPY 641,880 1.99

10,000 YAMADA Consulting JPY 333,783 1.03


23




Fair Value % of



Financial (31 Dec 2014: 13.75%)

40,000 Anicom JPY 732,443 2.26

35,000 Financial Products JPY 266,250 0.82

26,000 Hitachi Capital JPY 688,320 2.13

280 Hulic Reit JPY 399,003 1.23

20,000 Japan Property Management Center JPY 281,734 0.87

25,000 Mitsubishi Estate JPY 538,567 1.66

80,000 Mitsubishi UFJ Financial JPY 575,103 1.78

110,000 Mitsubishi UFJ Lease & Finance JPY 602,198 1.86

42,000 Nippon Commercial Development JPY 753,279 2.33

11,200 Sumitomo Mitsui Financial JPY 499,578 1.54



50,000 Daifuku JPY 770,111 2.38

3,000 Fanuc JPY 614,781 1.90

1,700 Keyence JPY 917,612 2.84

20,000 Kokusai JPY 294,644 0.91

45,000 Macnica Fuji Electronics JPY 555,950 1.72

43,000 Mitsubishi Electric JPY 555,836 1.72

16,000 Nidec JPY 1,198,186 3.70

27,700 Nippon Concept JPY 723,140 2.24

55,000 Nittoku Engineering JPY 573,886 1.77

42,000 OKUMA JPY 474,617 1.47

25,000 Star Micronics JPY 426,524 1.32

35,000 Tadano JPY 523,348 1.62

40,000 W-Scope JPY 377,497 1.17



17,000 CRI Middleware JPY 292,536 0.90

85,000 Fusion Partners JPY 502,145 1.55

57,000 Tera Probe JPY 643,192 1.99



24




Fair Value % of



Cash 646,900 2.00

Other Net Liabilities (233,291) (0.72)



Analysis of portfolio



Other Assets 2.47

100.00

% of Total

Assets

25


Condensed Statement of Financial Position As at 30th June 2015

Atlantis Atlantis

Atlantis Atlantis China Japan

Asian China Healthcare Opportunities

Fund Fund Fund Fund

Assets Notes US$ US$ US$ US$

Financial assets at fair value through profit or loss:

-Transferable securities 19,538,357 158,796,059 155,798,996 31,935,535

Amounts receivable on sale of investments - 855,233 347,326 123,154

Amounts receivable on units issued - 1,954 10,531 -

Cash 251,626 61,917 2,624,288 646,900

Dividend and bank interest receivable 77,438 517,043 79,011 32,847

Sundry debtors 7,903 8,319 5,776 4,282

Total assets 19,875,324 160,240,525 158,865,928 32,742,718

Liabilities

Bank overdraft - 1,872,614 - -

Payable for investments purchased 97,868 - 2,373,598 316,542

Management fees 3 30,801 254,593 144,254 39,275

Administration fees 3 18,587 89,960 96,879 17,416

Trustee fees 3 3,919 43,467 47,123 7,854

Performance fees 3 - - 6,776,807 -

Bank interest payable - 1,573 481 6

Other payables 5 13,343 950,198 701,119 12,481

Total liabilities (excluding net assets

attributable to holders of redeemable units) 164,518 3,212,405 10,140,261 393,574

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 19,710,806 157,028,120 148,725,667 32,349,144

REDEEMABLE UNITS IN ISSUE

US Dollar Class $ 10 2,263,779 15,802,601 62,987,383 9,366,035

Euro Class € 10 1,209 - - 105,350

Sterling Class £ 10 524 - - 192,395

US Dollar Class D $ 10 1,036 - - -

NET ASSET VALUE PER REDEEMABLE UNIT

US Dollar Class $ 8.68 9.93 2.36 2.41

Euro Class € 14.78 - - 27.27

Sterling Class £ 12.09 - - 21.70

US Dollar Class D $ 13.81 - - -

The Statement of Financial Position is continued on pages 26 and 27.

The accompanying notes form an integral part of these financial statements

26


Condensed Statement of Financial Position As at 31st December 2014

Atlantis Atlantis



Fund Fund Fund Fund

Assets Notes US$ US$ US$ US$


-Transferable securities 16,512,585 126,606,188 139,017,400 27,624,984

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

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

Dividend and bank interest receivable 4,497 96,710 19,342 49,651

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

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

LiabilitiesFinancial liabilities at fair value through profit or loss: 5

Financial derivative instruments - - - -

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

Amounts payable on units redeemed - - - 68,192

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

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

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

Bank interest payable 16 6 - -

Other payables 5 19,310 120,189 815,327 19,707


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

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 17,974,376 128,372,828 141,960,640 27,938,663


US Dollar Class $ 10 2,393,733 19,589,961 73,809,739 9,420,972

Euro Class € 10 1,207 - - 80,000

Sterling Class £ 10 519 - - 176,679

US Dollar Class D $ 10 1,000 - - -


US Dollar Class $ 7.49 6.55 1.92 2.16

Euro Class € 11.78 - - 22.50

Sterling Class £ 10.55 - - 19.72

US Dollar Class D $ 11.94 - - -


27


Condensed Statement of Financial Position As at 1st January 2014

Atlantis Atlantis Atlantis

Atlantis Atlantis New China China Japan

Asian China Fortune Healthcare Opportunities

Fund Fund Fund* Fund Fund

Assets Notes US$ US$ US$ US$ US$


-Transferable securities 20,349,344 177,251,895 - 93,854,387 24,192,856

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

Amounts receivable on units issued - - - 15,090 -

Cash 125,300 13,099 8,880 674,705 930,960

Dividend and bank interest receivable 12,206 590,674 - 189,583 56,429

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

Total assets 20,494,146 177,870,339 8,880 95,489,209 25,431,120

Liabilities

Bank overdraft - 1,599,580 - - -

Payable for investments purchased - - - - 260,777

Amounts payable on units redeemed - - 3,101 - 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 5 32,838 122,973 5,779 876,690 29,639


attributable to holders of redeemable units)103,750 2,266,707 8,880 4,245,246 437,602

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 20,390,396 175,603,632 - 91,243,963 24,993,518


US Dollar Class $ 10 2,839,585 26,540,469 - 50,622,476 8,658,334

Euro Class € 10 1,205 - - - 155,500

Sterling Class £ 10 513 - - - 31,800

US Dollar Class D $ 10 1,000 - - - -


US Dollar Class $ 7.17 6.62 - 1.80 2.26

Euro Class € 9.93 - - - 20.75

Sterling Class £ 9.50 - - - 19.30

US Dollar Class D $ 11.43 - - - -


28


Condensed Statement of Comprehensive Income For the six months ended 30th June 2015

Atlantis Atlantis



Fund Fund Fund Fund

Income Notes US$ US$ US$ US$

Investment income 208,558 1,009,356 396,049 189,736

Bank interest income 2,870 - - -

Movement on revaluation of financial assets at fair value through profit or loss 1,087,005 68,848,658 14,380,211 2,104,357

Realised gain/(loss) on financial assets at fair value through profit or loss 5 1,868,185 (9,610,923) 25,111,933 1,360,305

Net loss on foreign currencies (21,745) (3,649) (1,273) (43,759)

Net investment income 3,144,873 60,243,442 39,886,920 3,610,639

Expenses

Management fees (159,364) (1,248,862) (760,630) (225,874)

Performance fee - - (6,776,807) -

Administration fees (27,313) (163,736) (174,523) (33,881)

Trustee fees (7,374) (52,623) (56,142) (11,294)

Audit fee (438) (2,922) (8,919) (653)

Transaction costs (35,467) (305,238) (215,471) (51,082)

General expenses (8,418) (48,792) (38,745) (9,951)

Total operating expenses (238,374) (1,822,173) (8,031,237) (332,735)

OPERATING INCOME BEFORE FINANCE COSTS 2,906,499 58,421,269 31,855,683 3,277,904

Finance costs

Net income equalisation - (166) 360 (431)

Bank interest expense - (5,178) (3,701) (12)

Total finance costs - (5,344) (3,341) (443)

Profit before tax 2,906,499 58,415,925 31,852,342 3,277,461

Withholding tax 5 (10,771) (32,721) (4,838) (28,970)

CHANGE IN NET ASSETS ATTRIBUTABLE

TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,895,728 58,383,204 31,847,504 3,248,491

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 period ended 30th June 2015 all amounts relate to continuing activities.


29


Condensed Statement of Comprehensive Income (continued) For the six months ended 30th June 2014

Atlantis Atlantis



Fund Fund Fund Fund

Income Notes US$ US$ US$ US$

Investment income 263,475 1,480,911 470,468 207,090

Movement on revaluation of financial assets at fair value through profit or loss (397,054) 9,608,075 (1,795,335) (643,538)

Realised gain/(loss) on financial assets at fair value through profit or loss 5 711,823 (12,318,886) 6,237,005 785,733

Net (loss)/gain on foreign currencies (1,330) (3,932) (891) 483

Net investment income/(loss) 576,914 (1,233,832) 4,911,247 349,768

Expenses

Management fees (121,917) (1,245,469) (491,337) (192,933)

Performance fee - - (382,956) -

Administration fees (27,730) (162,913) (110,551) (28,940)

Trustee fees (7,513) (52,284) (36,850) (9,647)

Audit fee (1,713) (11,027) (9,014) (2,383)

Transaction costs (23,781) (336,380) (137,935) (55,220)

General expenses (9,105) (80,955) (53,892) (18,515)

Total operating expenses (191,759) (1,889,028) (1,222,535) (307,638)

OPERATING INCOME/(LOSS) BEFORE FINANCE COSTS 385,155 (3,122,860) 3,688,712 42,130

Finance costs

Net Income equalisation (417) - - 117

Bank interest expense (52) (30,154) (1,191) (4)

Total finance costs (469) (30,154) (1,191) 113

Profit/(loss) before tax 384,686 (3,153,014) 3,687,521 42,243

Withholding tax 5 (10,615) (16,213) (2,086) (35,996)

CHANGE IN NET ASSETS ATTRIBUTABLE

TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS374,071 (3,169,227) 3,685,435 6,247

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 period ended 30th June 2014 all amounts relate to continuing activities.


30


Condensed Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Units For the six months ended 30th June 2015

Atlantis Atlantis



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 period 40,760 3,586,912 3,835,045 2,886,042

Payment on units redeemed during the period (1,200,058) (33,314,824) (28,917,522) (1,724,052)

Change in net assets attributable to participating unitholders from operations 2,895,728 58,383,204 31,847,504 3,248,491

Net Assets attributable to holders of redeemable units at 30th June 2015 19,710,806 157,028,120 148,725,667 32,349,144

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


31


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

(continued) For the six months ended 30th June 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 period 103 14,402,661 16,275,416 9,138,030

Payment on units redeemed during the period (419,521) (73,415,533) (13,049,281) (7,252,459)

Change in net assets attributable to participating unitholders from operations 374,071 (3,169,227) 3,685,435 6,247

Net Assets attributable to holders of redeemable units at 30th June 2014 20,345,049 113,421,533 98,155,533 26,885,336


32


Condensed Statement of Cash Flows For the six months ended 30th June 2015

Atlantis Atlantis



Fund Fund Fund Fund

US$ US$ US$ US$

CASH FLOWS FROM OPERATING ACTIVITIES

Purchase of financial assets (6,005,387) (74,231,757) (72,828,139) (13,030,067)

Proceeds from sale of financial assets 6,288,031 101,528,141 97,936,398 12,335,757

Loss on foreign currencies (21,745) (3,649) (1,273) (43,759)

Dividends and interest received 127,700 552,691 328,322 177,564

Operating expenses paid (217,486) (1,508,887) (1,055,223) (292,626)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITES 171,113 26,336,539 24,380,085 (853,131)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Income Equalisation - (166) 360 (431)

Proceeds from redeemable participating preference shares issued 40,760 3,584,958 2,022,590 2,817,850

Redemptions payable to shareholders (1,200,058) (33,314,824) (28,917,522) (1,724,052)

NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITES (1,159,298) (29,730,032) (26,894,572) 1,093,367

NET (DECREASE)/INCREASE IN CASH (988,185) (3,393,493) (2,514,487) 240,236

CASH AT BEGINNING OF THE PERIOD 1,239,811 1,582,796 5,138,775 406,664

CASH AT END OF THE PERIOD 251,626 (1,810,697) 2,624,288 646,900

Supplementary cash flow information

Cash flows from operating activities include:

Cash received during the period for dividend income 124,846 556,302 331,542 177,570

Cash received during the period for bank interest income 2,870 - - -

Cash paid during the period for interest expense (16) (3,611) (3,220) (6)

127,700 552,691 328,322 177,564

The Statement of Cash Flows is continued on page 33.


33


Condensed Statement of Cash Flows For the six months ended 30th June 2014

Atlantis Atlantis



Fund Fund Fund Fund

US$ US$ US$ US$

CASH FLOWS FROM OPERATING ACTIVITIES

Purchase of financial assets (2,936,456) (28,871,073) (29,330,967) (14,781,191)

Proceeds from sale of financial assets 3,382,836 88,578,994 29,040,088 12,617,793

(Loss)/gain from forward foreign currency contracts and futures (1,330) (3,932) (891) 483

Dividends and interest received 157,548 1,613,690 515,011 198,748

Operating expenses paid (191,233) (1,822,281) (3,885,153) (317,763)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITES 411,365 59,495,398 (3,661,912) (2,281,930)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Income Equalisation (417) - - 117

Proceeds from redeemable participating preference shares issued 103 14,402,661 16,267,307 9,120,102

Redemptions payable to shareholders (419,521) (73,415,533) (13,049,281) (7,252,459)

NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITES (419,835) (59,012,872) 3,218,026 1,867,760

NET (DECREASE)/INCREASE IN CASH (8,470) 482,526 (443,886) (414,170)

CASH AT BEGINNING OF THE PERIOD 125,300 (1,586,481) 674,705 930,960

CASH AT END OF THE PERIOD 116,830 (1,103,955) 230,819 516,790

Supplementary cash flow information

Cash flows from operating activities include:

Cash received during the period for dividend income 157,603 1,644,241 517,778 198,752

Cash received during the period for bank interest income - 2 1 -

Cash paid during the period for interest expense (55) (30,553) (2,768) (4)

157,548 1,613,690 515,011 198,748


34


Notes to the Condensed Financial Statements For the six months ended 30th June 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”). The investment objective of the Trust 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.

The Trust comprises of four sub-funds which are in operation at the period end.

Date listed

on Irish

Name Approval by the Launch Stock

Central Bank of Ireland Date 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

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

2. Principal Accounting Policies

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

The Trust adopted International Financial Reporting Standards (“IFRS”) (as adopted by the European Union) of

accounting with effect from 1st January 2015. These condensed interim financial statements have been prepared

in accordance with IAS 34 ‘Interim Financial Reporting’ (“IAS 34”). Previously, the Company prepared its

condensed interim financial statements in accordance with Accounting Standards Board (ASB) Statement: Half

Yearly Financial Reports and its annual financial statements in accordance with accounting standards generally

accepted in Ireland (Irish GAAP).

The Trust has consistently applied the accounting policies used in the preparation of the financial statements and

throughout all periods presented, as if these policies had always been in effect.

The adoption of IAS 34 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 Condensed Statement of Financial Position either as at 1st January 2014 or at 31st 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).

The annual financial statements of the Trust for the year ended 31st December 2015 will be prepared in

accordance with IFRS as adopted by the European Union.

35



2. Principal Accounting Policies (continued)

The following accounting policies were adopted by the Trust with effect from 1st January 2015:

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 Fund are carried at the

redemption amount, representing the Unitholders' right to a residual interest in that 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 Fund was the current bid price; the quoted market price for

financial liabilities was the current asking price. The Fund 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.

36



2. Principal Accounting Policies (continued)

d) Fair value measurement principles (continued)

Warrants are securities providing a return generated by a specified underlying equity or basket of equities.

Investments in warrants 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.

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 Balance Sheet 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 Profit and Loss Account.

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 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 Balance Sheet as Other Receivables or

Payables of the sub-funds.

37


Notes to the Condensed Financial Statements (continued) For the six months ended 30th June 2015

3. Related and Connected Party Disclosures

Related Parties

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 and

Atlantis Investment Management Limited. Gerard Morrison is also a Director of Atlantis Investment

Management (Singapore) Pte Limited, the investment advisor of Atlantis Asian Fund.

David Dillon is a Director of Bridge Consulting Limited which provides the governance and monitoring service

and is a Partner of Dillon Eustace which is the Legal Adviser to the Trust in Ireland. Fees amounting to

US$19,253 (30th June 2014: US$23,493) have been accrued to Bridge Consulting Limited during the period.

Fees amounting to US$7,103 (30th June 2014: US$11,920) have been accrued to Dillon Eustace during the

period.

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

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

were management fee US$468,923 (31st December 2014: US$379,089; 1st January 2014: US$428,387),

administration fee US$222,842 (31st December 2014: US$192,020; 1st January 2014: US$377,954), trustee fee

US$102,363 (31st December 2014: US$58,131; 1st January 2014: US$177,276), and performance fee

US$6,776,807 (31 December 2014: US$nil; 1st January 2014: US$3,122,726).

For details of units held by Directors of the Manager in the sub-funds please refer to Note 13.

Connected Parties

The UCITS Regulations require that any transaction with the Trust by a promoter, manager, trustee, investment

adviser and/or associated or group companies of these (“connected parties”) are carried out as if negotiated at

arm’s length and are in the best interests of the shareholders.

The Directors of the Manager are satisfied that there are arrangements in place to ensure that all transactions with

connected parties during the period complied with the regulatory requirements.

4. 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 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:


Asian ChinaChina Healthcare

At 31st December 2014 Fund Fund Fund

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

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


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

38



4. Financial Assets and Liabilities at Fair Value through Profit or Loss (continued)

At 31st December 2014 (continued):

Atlantis

Japan Opportunities

Fund

US$


through profit or loss at initial recognition 27,685,000

Net deficit on revaluation (60,016)


through profit or loss 27,624,984


Asian ChinaChina Healthcare

At 1st January 2014 Fund Fund Fund

US$ US$ US$


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

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


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

Atlantis

Japan Opportunities

Fund

US$


through profit or loss at initial recognition 24,242,359

Net deficit on revaluation (49,503)


through profit or loss 24,192,856

5. 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.

39



5. Taxation (continued)

In respect of potential taxation on P-notes, the Trust has made a provision against realised gains on the Atlantis

China Fund and Atlantis China Healthcare Fund for possible future liabilities. This is recognised in the Statement

of Comprehensive Income as part of Realised Gains on Financial Assets at Fair Value through Profit or Loss, and

is recognised in the Statement of Financial Position as part of Other Payables. The total provision at 30 June

2015 was US$ 1,540,099 (31 December 2014: US$ 772,556).

6. Soft Commissions

During the period under review, Atlantis Investment Management (Hong Kong) Limited did not enter into soft

commission agreements whereby goods and services were received which support the investment decision

process. Atlantis Investment Management (Hong Kong) Limited does not make direct payment for these goods

and services but transacts 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:

June 2015 Dec 2014

US$ US$

Atlantis China Fund - 16,034

Atlantis China Healthcare Fund - 1,737

7. Exchange Rates

The applicable period end exchange rates were as follows:

30th June 2015

Exchange Rate Exchange Rate

to US$ to US$

Euro 0.8944 Philippines peso 45.0900

Hong Kong dollar 7.7524 Pound sterling 0.6363

Indian rupee 63.6800 Singapore dollar 1.3456

Indonesian rupiah 13,332.5000 South Korean won 1,115.4500

Japanese yen 122.3850 Thai baht 33.7755

Malaysian ringgit 3.7730 Vietnamese Dong 21,815.0000

New Taiwan dollar 30.8545

Comparative 31st December 2014


to US$ to US$








40



7. Exchange Rates (continued)

Comparative 1st January 2014


to US$ to US$








8. Fair Value Hierarchy

IFRS 13 ‘Fair Value Measurement' requires disclosure relating to the fair value hierarchy in which fair value

measurements are categorised for assets and liabilities in the Statement of Financial Position.

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 and liabilities held by the sub-fund is the last traded price.

The fair value policy for financial assets and liabilities is detailed in note 2 (c).

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.

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.

Total Level 1 Level 2 Level 3

Atlantis Asian Fund US$ US$ US$ US$

Equity investments 19,538,357 19,538,357 - -

19,538,357 19,538,357 - -

Atlantis China Fund


Warrants 21,566,995 21,566,995 - -

158,796,059 158,796,059 - -



Warrants 57,745,559 57,745,559 - -

155,798,996 155,798,996 - -

41



8. Fair Value Hierarchy (continued)


Atlantis Japan Opportunities Fund US$ US$ US$ US$


31,935,535 31,935,535 - -

There were no transfers between levels for the period ended 30th June 2015.

The table below sets out fair value measurements using the fair value hierarchy at 31st December 2014:




16,512,585 16,512,585 - -

Atlantis China Fund


Warrants 6,239,138 6,239,138 - -

126,606,188 126,606,188 - -



Warrants 41,501,504 41,501,504 - -

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 table below sets out fair value measurements using the fair value hierarchy at 1st January 2014:



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



Warrants 23,585,569 23,585,569 - -

93,854,387 93,854,387 - -



24,192,856 24,192,856 - -

42




The following tables present the transfers 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)

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

June 2015 Dec 2014 Jan 2014

Atlantis Asian Fund US$ US$ US$

Opening Balance - 171,332 495,011

Transfers into level 3 - - -

Sale of Investments - - -

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 30th June 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

approved to continue to hold at zero Boshiwa International (31st December 2014: written down to zero; 1st

January 2014: written down by 75%) and Berlian Laju Tanker at zero (31st December 2014: written down to zero,

1st January 2014: written down to zero).

A reconciliation of fair value measurements in level 3 for Atlantis China Fund is set out below:

Level 3 financial assets at fair value through profit or loss Equity Equity Equity

June 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 30th June 2015 Atlantis China Fund held two investments which were suspended: Qunxing Paper (31st

December 2014: written down to zero; 1st January 2014: written down by 23.6%) and China Metal Recycling

(31st December 2014: written down to zero; 1st January 2014: written down to zero). China Metal Recycling is

currently under court ordered liquidation. Based on the recommendation by the Investment Manager, the

Directors of the Manager approved the write down of Qunxing Paper to zero.

43




Atlantis China Healthcare Fund and Atlantis Japan Opportunities Fund held no level 3 investments as at 30 June

2015, 31 December 2014 and 1 January 2014.

9. Distributions

There were no distributions declared during the period ended 30th June 2015 or during the period ended 30th

June 2014.

10. Units Issued and Redeemed during the period ended 30th June 2015

30 June 2015


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 4,389 2 5

Units redeemed during the period (134,343) - -

Units in issue as at 30th June 2015 2,263,779 1,209 524

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 36 423,960 1,801,120

Units redeemed during the period - (4,211,320) (12,623,476)

Units in issue as at 30th June 2015 1,036 15,802,601 62,987,383


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 156,973 25,350 54,132

Units redeemed during the period (211,910) - (38,416)

Units in issue as at 30th June 2015 9,366,035 105,350 192,395

44



10. Units Issued and Redeemed during the period ended 30th June 2015 (continued)

Comparatives for the period ended 30th June 2014:


Asian Asian Asian

Fund Fund Fund


Units in issue as at 1st January 2014 2,839,585 1,205 513

Units issued during the period 8 1 2

Units redeemed during the period (58,724) - -

Units in issue as at 30th June 2014 2,780,869 1,206 515

Atlantis

Atlantis Atlantis China

Asian China Healthcare

Fund Fund Fund

USD Class D $ US Class $ US Class $

Units in issue as at 1st January 2014 1,000 26,540,469 50,622,476

Units issued during the period - 2,209,096 8,295,190

Units redeemed during the period - (10,989,198) (6,729,181)

Units in issue as at 30th June 2014 1,000 17,760,367 52,188,485


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 period 1,768,824 - 173,663

Units redeemed during the period (889,636) (140,500) (56,226)

Units in issue as at 30th June 2014 9,537,522 15,000 149,237

11. 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 30th June 2015 this valuation adjustment is not required and Net Asset Value per unit included in Statement

in Financial Position on page 25.

45



11. Net Asset Value per unit (continued)

The Net Asset Value per unit at 31st December 2014 after the above adjustment was 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


per 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 was 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


per 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

46



11. 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


per 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.

12. Financial Derivative Instruments

Atlantis China Fund and Atlantis China Healthcare Fund held warrants at 30th June 2015 (31st December 2014:

Atlantis China Fund and Atlantis China Healthcare Fund held warrants).

13. 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:

June 2015 Dec 2014

Atlantis China Fund 16,107.110 Units 16,107.110 Units

Atlantis China Healthcare Fund 36,470.897 Units 36,470.897 Units

Atlantis Japan Opportunities Fund 53,384.317 Units 53,384.317 Units

No other Director held a related party investment in the Trust for the period ended 30th June 2015.

14. Significant events post period end

There have been no other significant events in respect of the Trust subsequent to the period end that may be

deemed relevant to the accuracy of these financial statements.

15. Approval of Financial Statements

The Financial Statements were approved by the Directors of Atlantis Investment Management (Ireland) Limited

on 21st August 2015.

47


Atlantis Asian Fund

Significant Portfolio Movements

Purchases Cost Sales Proceeds

US $'000 US $'000

NBB Investment 532 Innovalues 1,349

TCC International 473 NBB Investment 736

Merry Electronics 399 China Shanshui Cement 676

China Telecom 391 United Photovoltaics 528

Emperor Watch & Jewellery 332 West China Cement 409

Zoomlion Heavy Industry Science and

Technology

317 China South City Holdings 267

Holcim Indonesia 282 Hon Hai Precision 251

NWS Holdings 276 SM Prime 229

Hon Hai Precision 232 Inventec 209

Tipco Foods 220 Nirvana Development 180

China South City Holdings 219 SIM Technology 179

Lotte Shopping 214 Sinotruk Hong Kong 152

Kinh Do 205 WH 136

Thuduc Housing Development 197 Thuduc Housing Development 130

Erajaya Swasembada 181 China ITS 121

Nirvana Development 159 China Telecom 114

Seoul Semiconductor 135 GOME Electrical Appliances 112

WH 127 Kingdee International Software 99

O-Net Communications 113 Perennial Real Estate Holdings 71

Sampoerna Agro 112 Tianjin Port Development 66

48


Atlantis China Fund



US $'000 US $'000

Jinghua Phramaceutical -A (Credit Suisse AG

(Nassau) Branch) 19/06/2020

9,313 Renhe Commercial 13,028

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 9,601

Fortunet e-Commerce^ 5,297 Shanghai Prime Machinery 7,684

Nantong Jinghua Pharmaceutical -A (CICC

Financial Products) 28/01/2018

3,429 Jinghua Phramaceutical -A (Credit Suisse AG


6,874

IGG 2,972 Tian Ge Interactive 5,984

Chongqing Zongshen Power Machinery

(Citigroup Global Markets ) 12/02/2016

2,804 IGG 4,421

Jiangsu Zongyi (Citigroup Global Markets)

12/02/2016

2,622 CGN Power 4,009

Nanjing Xinjiekou (Credit Suisse AG (Nassau)

Branch) 04/05/2020

2,569 China Yurun Food 3,827

Golden Meditech 2,453 Alibaba Health Information Technology 3,547

Suzhou Lopsking Aluminium - A (BOCI Financial


2,340 Yuanda China 3,158

Shenzhen Terca Technology - A (CICC Finacial


2,189 Searainbow Holdings -A (Credit Suisse AG


3,042

Zhejiang (CICC Financial Trading) 19/03/2018 2,067 Chongqing Zongshen Power Machinery

(Citigroup Global Markets ) 12/02/2016

2,786

Shenzhen O-film Tech -A (Credit Suisse AG


2,007 Yifan Xinfu Pharmaceutical (Haitong

International Financial Products) 25/09/2015

2,697

Silver base 1,901 Jiangsu Zongyi (Citigroup Global Markets)

12/02/2016

2,695

Tibet 5100 Water Resources 1,776 Zhejiang (CICC Financial Trading) 19/03/2018 2,367

Searainbow Holdings -A (Credit Suisse AG


1,774 China Huishan Dairy 2,046

China Huishan Dairy 1,743 Searainbow Holdings (CLSA Financial Products)

25/11/2019

1,970

Phoenix Healthcare 1,329 eSun 1,846

China Huarong Energy 1,294 Hua Han Bio-Pharmaceutical 1,650

^Previously known as Changfeng Axle.

49





US $'000 US $'000

C.banner International 6,203 Luye Pharma 7,689

Nantong Jinghua Pharmaceuticals (Goldman

Sachs) 09/06/2016

5,546 Biostime International 6,412

Nantong Jinghua Pharmaceuticals -A (CICC

Financial Trading) 28/01/2018

5,374 CSPC Pharmaceutical 4,622

Shanghai Fosun -A (Macquarie Bank) 24/03/2017 4,703 Guangzhou Baiyunshan Pharmaceutical 4,546

Tianjin Ringpu -A (Citigroup) 12/02/2016 4,545 Nantong Jinghau Pharmaceuticals-A (UBS )

26/01/2016

4,400

Yunnan Baiyao (CLSA Financial Products)

02/09/2019

4,336 Yunnan Baiyao Group (CLSA Financial Products)

24/05/2017

4,336

Searainbow Holdings -A (Credit Suisse AG


3,257 Beijing Tong Ren Tang Chinese Medicine 3,879

Jiangsu Hengrui Medicine -A (CICC Financial

Trading) 22/01/2018

3,139 New China Life Insurance (Credit Suisse (Nassau)

Branch) 09/12/2019

3,683

Hainan Haiyao (Citigroup Global Markets

Holdings) 12/02/2016

2,871 Searainbow Holdings -A (Credit Suisse AG


3,431

Golden Meditech 2,625 Sinopharm 3,410

Shanghai Pharmaceuticals -A (Macquarie Bank)

29/05/2017

2,551 Searainbow Holdings (Standard Chartered Bank

Singapore) 24/11/2015

3,405

Sinopharm 2,441 Jiangsu Hengrui Medicine -A (CICC Financial

Trading) 22/01/2018

3,184

3SBio 2,386 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical 2,999

Tibet Rhodiola Pharmaceuticals -A (CLSA


1,989 Beijing Tiantan (Goldman Sachs) 31/08/2015 2,995

Shanghai Kehua Bio-Engineering -A (UBS)

16/06/2016

1,967 Shanghai Kehua Bio-Engineering -A (BOCI


2,473

Nantong Jinghau Pharmaceuticals-A (UBS )

26/01/2016

1,945 Shanghai Pharmaceuticals (CLSA Financial


2,302

China NT Pharma 1,868 Lepu Medical Technology -A (Standard Chartered

Bank Singapore) 12/11/2015

2,288

China Huishan Dairy 1,815 Yunnan Baiyao Group (BNP Paribas Arbitrage

Issuance) 01/04/2015

2,230

China Medical System 1,535 China Huishan Dairy 2,189

Hainan Haiyao (CICC Financial Trading)

08/04/2018

1,179 Shanghai Fosun Pharmaceutical (CLSA Financial


2,050

50





US $'000 US $'000

Bengo4.com 728 Japan Property Management Center 1,059

Tera Probe 668 Obara 788

Nippon Commercial Development 666 Mimaki Engineering 764

Anicom 649 Sato 645

S-Pool 641 Internet Initiative Japan 643

Hikari Tsushin 618 Gakujo 623

CyberAgent 606 Financial Products Group 599

Benefit One 586 Daihen 569

Financial Products Group 577 Zenkoku Hosho 563

Yonex 547 Maeda Kosen 511

Mitsubishi Electric 537 Fuji Kyuko 460

Start Today 535 Kokusai 443

Kura 487 Nippon Concept 419

OKUMA 463 Taiko Pharmaceutical 410

Hulic Reit 429 Fusion Partners 409

Media Do 420 Media Do 377

Hito Communications 419 Koa 374

Doshisha 406 Ai 360

W-Scope 406 Fuji Corp/Miyagi 307

Star Micronics 388 WirelessGate 306