Binjai Hill Asian Equities

Transcription

1 Binjai Hill Asian Equities Long / Short: Binjai Hill Asian Acorns Fund Long-Only: Binjai Hill Seedlings and Saplings Sub-Fund October 2011 Contact person: Sharon Wong I Tel: I Sharon.wong@binjaihill.com Registered as an Investment Advisor with the US Securities and Exchange Commission Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 1

2 Binjai Hill Asian Equities Overview 1. Introduction to Binjai Hill Highly experienced specialists in Asia Small-Mid Caps 2. Why Asia Small-Mid Caps Superior returns with below average risk 3. Performance Statistics Strong gross performance of 15.4% annualized on the Asian Acorns Fund since 2004 with below-average risk 4. Investment Process, Portfolio Construction and Risk Management Auditable paper trail for all investment decisions Rigorous Portfolio Construction Robust Risk Management 5. Portfolio Review 6. Why Binjai Hill? Note: Calculation of gross performance Presented as performance before management fees, performance fees and non-trading expenses but after all trading expenses. Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 2

3 1. Introduction to Binjai Hill Firm and Product Overview PRINCIPALS Binjai Hill Asset Management (BHAM) was formed in 2004 and is 100% owned by the Justin Kendrick and David Gibbons. INVESTMENT FOCUS 12 markets in Asia ex-japan Stocks with market capitalization up to US$2.5 billion. INVESTMENT STRATEGY The key to our strategy is to buy good stocks and to avoid bad markets (politics, economics, FX and over-valuation) Focus on stocks geared to domestic demand growth - property, banks, consumer plays, healthcare, education. Sectors we generally avoid are high-tech, global cyclicals, and hard commodity plays We seek growth at a reasonable price - growth stocks with reasonable valuations, high ROIC and moderate risks that can give us a 30% annual return. PRODUCTS Long / Short: Binjai Hill Asian Acorns Fund Incepted in Aug AUM $22m, peak $115m (Oct 2007) Long Only: Binjai Hill Seedlings and Saplings Sub-Fund - started Nov Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 3

4 1. Introduction to Binjai Hill Solid Infrastructure Justin Kendrick Fund Manager David Gibbons Research Head Aik Chee Heng COO / Risk Manager Sharon Wong Client Liaison / Research John Casey Portfolio Risk Analysis / Research Mei Chan Loy Administration Clients Liaison Research Back Office Service Providers Long-Short Fund: Long-Only Fund: UBS Prime Broker HSBC Administrator DBS Custodian Apex Administrator Walkers Legal Counsel PricewaterhouseCoopers Auditor Appleby Legal Counsel Arthur Morris Auditor Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 4

5 2. Why Asia Small-Mid Caps Why Asia Small-Mid Caps? Since 01 SMEs have mostly out-performed MSCI AxJ except from March 2009, during the Global Crisis Geared to Domestic Demand Growth The structural growth story for Asia ex-japan will be increasingly driven by domestic demand. Small-Mid caps are more highly geared to such growth. Outperforming and under-researched Beneficial Diversification Over a market cycle, an allocation to Small-Mid caps will lower overall volatility and enhance returns. Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 5

6 3. Performance Statistics Asian Acorns Fund (Long / Short): Gross Performance YTD (until Sep 11) Annualized Returns Annualized Standard Deviation Sharpe Ratio Largest Monthly Return Max Consecuti ve Loss % of Positive Months Asian Acorns Fund (3.9%) 15.4% 15.5% % (28.3%) 65% MSCI AC Daily TR Net Asia Ex Japan USD (19.9%) 11.6% 24.8% % (53.2%) 59% Aug- 04 FTSE Global Smallcap Asia Pacific Ex Japan, Australia, New Zealand TR USD 250% FTSE Global Smallcap Asia Pacific Ex Japan Australia New Zealand TR USD Feb- 05 Binjai Hill Asian Acorns Fund MSCI AC Daily TR Net Asia Ex Japan USD Aug- 05 Feb- 06 Aug- 06 Feb- 07 Aug- 07 Feb- 08 Aug- 08 Feb- 09 Aug- 09 Feb- 10 (25.0%) 12.0% % (62.6%) 59% Aug- 10 Feb- 11 Aug % 200% 150% 100% 50% 0% -50% Comments 2009: impacted by being under-invested, in part due to retaining liquidity to meet substantial redemptions 2008: All about beta. In hindsight we did not raise cash quickly enough. October hurt by problems in unwinding hedging when changing prime broker from MS to UBS to minimize prime broker bankruptcy risk; this cost the fund approximately 7%. 2007: H2 07 was all about beta and SMEs under-performed, with illiquidity a major constraint for us 2006: Our strategy performs best in stable and rising markets, as seen in 2006 s substantial out-performance of 50% vs. MSCI AxJ s 30% Overall: superior returns with lower risk and much smaller drawdowns. Note: Calculation of gross performance Presented as performance before management fees, performance fees and non-trading expenses but after all trading expenses. Note: Comparative index The relevant total return indices which will measure both price performance and income from dividend payments. Where applicable, we will use the total return net index which approximates the amount of dividend reinvested after deduction of withholding tax Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 6

7 3. Performance Statistics Seedlings and Saplings Sub Fund: Gross Performance* YTD (until Sep 11) Annualized Returns Annualized Standard Deviation Sharpe Ratio Largest Monthly Return Max Consecuti ve Loss % of Positive Months Seedlings and Saplings pro forma (6.8%) (6.9%) 7.2% -ve 1.8% (8.5%) 55% MSCI AC Daily TR Net Asia Ex Japan USD (19.9%) (18.1%) 20.7% -ve 6.3% (21.8%) 36% FTSE Global Smallcap Asia Pacific Ex Japan, Australia, New Zealand TR USD (25.0%) (24.6%) 23.7% -ve 4.5% (26.1%) 36% Binjai Hill Seedlings and Saplings 20% MSCI AC Daily TR Net Asia Ex Japan USD FTSE Global Smallcap Asia Pacific Ex Japan Australia New Zealand TR USD15% 10% 5% 0% -5% Comments Shows performance of Long Only part of Acorns fund if fully invested This LO fund will run with low cash levels and will largely shadow the Acorns longs portfolio, but with a little more flexibility on market cap. -10% -15% -20% -25% Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11-30% *Inception date: November 2010 Note: Calculation of gross performance Presented as performance before management fees, performance fees and non-trading expenses but after all trading expenses. Note: Comparative index The relevant total return indices which will measure both price performance and income from dividend payments. Where applicable, we will use the total return net index which approximates the amount of dividend reinvested after deduction of withholding tax Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 7

8 4. Investment Process, Portfolio Construction and Risk Management The Investment Process Long positions Investment cycle / Sector / Country risk / Interest rates /Thematics/ Corporate Governance ~13,500 Stocks in Asia ex Japan Universe Ideas Generation Internal Screens Mkt Cap Liquidity Biz model External Ideas Local Brokers ~3,700 Stocks in SMID * Cap Universe Company visit Biz model Investment case Management Corporate governance 400 Stocks Proprietary Research Equity story Valuation measures Risk Assessment Forecasts & Price targets Ideas List 100 Stocks Focus List Catalyst Entry & Exit prices Potential upside Portfolio High conviction Timing Market risks Exposure limits Sector & country weightings Stocks Stocks Stocks Publications Sector perspective Unanimous decision by Principals Unanimous decision by Principals Fund Manager s decision * SMID Universe: Small-to-mid Cap Universe is defined as stocks with a market cap of > US$ 100m and < US$ 2.5bn Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 8

9 4. Investment Process, Portfolio Construction and Risk Management Breakdown of BHAM Investment Universe by percentage of total stocks >2.0bn, 3% >1bn,<2b n, 11% Consumer Staples, 8% Telecommunication Services, 1% Health Care, 5% Utilities, 2% Energy, 2% <500m, 68% Information Technology, 18% Universe by Market Cap >500m,<1 b, 18% Taiwan, 20% Sri Lanka, 1% Vietnam, 1% Pakistan, 1% Philippines, 2% Indonesia, 4% Thailand, 4% Singapore, 7% Materials, 13% Consumer Discretionary, 18% Hong Kong, 20% Malaysia, 7% Financials, 16% Universe by Sector Industrials, 18% India, 16% Universe by Country Korea, 15% * BHAM Universe: stocks with a market cap of > US$ 100m and < US$ 2.5bn Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 9

10 4. Investment Process, Portfolio Construction and Risk Management How we arrive at an Investment Decision Idea Generation: Some sources for investment ideas include stock screens from Bloomberg based on sector or macro themes, broker research, conferences and journals. Within our investable universe, we look for attractive sectors, acceptable share liquidity, moderate debt levels, 20%+ ROIC and a 30%+ total shareholder return (TSR). Discussion: We discuss these ideas either during the daily morning meeting or more formally during the weekly research meeting and decide which companies we wish to meet. Meet the company: Prior to investment we always talk to senior company executives and Mei Chan, dedicated to arranging corporate access, will arrange a meeting or call with management. We would then write up the company visit into a visit note for discussion. Wherever possible, the two principals will have met the company before we invest. Discussion: We discuss the visit note, identify issues and decide if the idea merits progressing further. If the principals agree it s a strong and time sensitive idea, we can take an immediate position of up to 1% of NAV. If necessary, we will follow up outstanding issues with the company and seek verification of the investment case from independent sources. Monitor: In most cases, we will monitor the stock over the next quarterly results to verify if our impression is correct. Investment Note: The designated Stock Champion prepares an Investment Note (IN) which documents the investment rationale, industry and company outlook, together with a Company Risk Assessment, a Due Diligence Questionnaire (DDQ) and a Corporate Governance survey. David would also prepare Forecast Template spreadsheet containing summary forecasts, peer group comparisons and an Entry Price and Share Price SPT rationale. Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 10

11 4. Investment Process, Portfolio Construction and Risk Management Portfolio Construction Head of Research controls the research process and sets price targets based on absolute valuation criteria, to ensure integrity Unanimous agreement by the Principals needed for stocks to go onto the focus list Fund manager decides on timing of entry/exit, country weightings and position / exposure limits In normalized market conditions, full / half positions are 2.0 to 2.5% / 1.0 to 1.25% of AUM respectively Country: Maximum exposure 50% for liquid markets, 25% for less liquid markets (Malaysia, Indonesia and Thailand) and 5% in illiquid markets (Philippines and Sri Lanka). Minimum three markets held at any time. Single issue: Maximum exposure to any stock is 10% (5% on acquisition) Liquidity: Position size is generally less than one-third of the five day trading volume Number of positions Portfolio Limits Hedging Asian Acorns Fund (Long/Short) long Gross: 70 90% in normalized conditions. Maximum Gross exposure: 200%. Net: 70% 90% normally, but can go as low as 0%, (averaged 32% in 2008) Managed via cash and index futures Typically naked long on Asian currencies on the basis that they benefit from long-term, secular appreciation against the US$. Will hedge currencies en bloc vs. USD appreciation risk and hedge specific currencies where applicable (e.g. short-term political / economic negatives) Seedlings & Saplings Sub-Fund (Long-Only) longs; largely as per the Acorns Fund but with slightly more market cap flexibility Typically % gross exposure Maximum Gross exposure: 100%. Nil Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 11

12 4. Investment Process, Portfolio Construction and Risk Management Risk Management Process Risk parameters are monitored daily by the Portfolio Risk Manager (John Casey), explicitly discussed and reviewed as part of the Daily Portfolio Meeting and written up in the Daily Portfolio Note Cash Management: Importance of using active cash management as the first measure Bloomberg Alerts: Every position, whether a stock, or currency position has a stop-loss limit explicitly established and alerted by John via Bloomberg alerts, which are sent to both Justin and John Stop Loss Limits: Upon receiving a stop loss alert on the longs, we will review and discuss this at the first adverse break and exit at the second. Strict stop-loss limit for short positions for the long/short fund. Trim within 10% of share price targets: We have found this to be a useful discipline. Momentum Entry Price (MEP): We have established MEP for portfolio and watchlist stocks based on technicals. Flags entry into new positions and potential re-entry into stocks previously stopped out. Counterparty review: Review brokers on a regular basis and majority of cash balance are kept with the administrator, away from the Prime Broker APPLICABLE ONLY TO THE LONG / SHORT FUND: Hedging Model: mechanistic hedging process, using primarily index futures. Triggered by individual market index falls below moving averages, with tighter stops in bear market conditions. Portfolio Risk Maximum gross exposure is 200% and minimum gross exposure is 0% Tracking error risk Beta-adjusted positions used for hedging Leverage risk - No leverage employed except for redemption liquidity; maximum 25% Currency risk Not hedged unless there are specific country risk factors Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 12

13 5. Portfolio Review Acorns Fund - Largest Holdings* Stock Currcy Sector Mkt Cap (US$ m) % of NAV JAYA REAL PROPERTY PT Indonesia Real Estate % DEL MONTE PACIFIC LTD Singapore Consumer Staples % HKR INTERNATIONAL LTD Hong Kong Real Estate % OVERSEAS UNION ENTERPRISE Singapore Consumer Discretionary 1, % HATTON NATI0NAL BK-NON VOTIN Sri Lanka Financials % Frasers Commercial Trust REIT Singapore Real Estate % LIAN BENG GROUP LTD Singapore Industrials % TOKYO CEMENT LANKA-NON VOTIN Sri Lanka Materials % SHINSEGAE FOOD CO LTD Korea Consumer Discretionary % CITIGRP-CW10 VIETNAM DAIRY WRNT Jan 15 Vietnam Consumer Staples % *As of 30 Sep 2011 Acorns Fund - Portfolio metrics % of AUM (30/9/2011) Ave Mkt cap (USD mil) PER CY11 Div Yield CY 11 P/B 2011 EPS growth 2012 EPS growth Asian Acorns Fund 13% % % 18% MSCI AxJ Index 100% 7, % % 14% Source: Binjai Hill Asset Management, Bloomberg, Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 13

14 5. Portfolio Review Stock Picking Skills Performance of Acorns Longs vs. FTSE Asia Pacific Small Cap ex Japan, Australia, New Zealand TR in local currency Acorns Longs FTSE AP SC TR Country Stock Rel % -56% -1% -11% -12% % 104% -4% 1% -3% % 15% 10% 10% 20% 2011 (YTD) -19.6% -22.3% 4.5% -1.9% 2.6% Multi-Baggers Lessons Learned Initial purchase date Exit Date or as of Aug-11 Price Gain Initial purchase date Exit Date Price Loss EDUCOMP SOLUTIONS Jan-06 Apr % TALAM CORP BHD Jun-05 Jan-06-58% MAYORA INDAH PT Aug-06 Feb % SILVERLAKE AXIS LTD Jun-07 Jan-08-56% QL RESOURCES BHD Jun-06 Sep11 291% ACCS (now MDR LTD) Feb-05 Mar-05-54% LPN DEVELOPMENT PCL Jan-05 Feb % CHINA SHINEWAY PHARMA May-09 Apr % Source: Binjai Hill Asset Management, Bloomberg Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 14

15 5. Portfolio Review Acorns Fund relative weightings vs. MSCI Asia Ex Japan Utilities Telecom Information Technology Healthcare Energy 3.6% 6.4% 0.8% 7.8% 1.6% 17.3% MSCI Asia x Japan BHAM Asian Acorns China Thailand Taiwan India Malaysia Philippines 4.1% 0.7% 3.1% 15.0% 11.9% 25.4% MSCI Asia x Japan BHAM Asian Acorn Materials 8.0% 5.4% Vietnam 3.9% Industrials Consumer Discretionary Consumer Staples Financials 10.7% 12.4% 8.5% 13.2% 5.3% 18.6% 31.6% 48.8% Korea Hong Kong Sri Lanka Indonesia Singapore 6.3% 10.9% 10.9% 3.4% 7.1% 19.1% 17.2% 21.1% 37.5% Acorns Weight net of cash: As of 30 Sep 2011; MSCI Asia ex-japan Weight: As of 1 October 2010 N.B. The Acorns Fund does not invest directly in China shares Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 15

16 5. Portfolio Review Seedlings and Saplings Sub Fund relative weightings vs. MSCI Asia Ex Japan Utilities Telecom Materials 3.6% 6.4% 8.0% MSCI Asia x Japan BHAM Seedlings & Saplings China Korea Taiwan 0.5% 15.0% 25.4% 19.1% MSCI Asia x Japan BHAM Seedlings & Saplings Information Technology 17.3% Malaysia 4.1% 4.5% Energy 7.8% Indonesia 3.4% 5.1% Healthcare 0.8% 7.1% Hong Kong 5.6% 10.9% Consumer Staples 5.3% 7.1% Thailand 2.4% 9.6% Consumer Discretionary 8.5% 9.6% India 11.9% 13.1% Industrials 10.7% 14.6% Philippines 0.7% 20.7% Financials 31.6% 61.6% Singapore 7.1% 40.9% Seedlings and Saplings Sub Fund Weight net of cash: As of 30 Sep 2011; MSCI Asia ex-japan Weight: As of 1 October 2010 N.B. The Seedlings and Saplings Sub Fund does not invest directly in China shares Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 16

17 6. Why Binjai Hill? Transparency: End of month NAV estimates within 2-5 working days of each month Monthly newsletter within 10 working days after month end Month-end Portfolio Holdings Weekly flash estimates within 2 working days of week end, bar month end Audited Financial statements (December year end) Past copies of newsletters Auditable trail of investment process Upon request the following are available: Monthly newsletters and back copies Attribution analysis AIMA DDQ documentation Investment reports Biographies and references Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 17

18 6. Why Binjai Hill? Why Us? Strong Track Record Strong gross performance of 15.4% annualized on the Asian Acorns Fund since 2004 with below-average risk Knowledge Highly experienced investment team with an average of more than 30 years of Asian experience Local presence and knowledge of Asian markets Extensive company database from over 2,100 company meets Solid Infrastructure Clear separation between the front office and back office, with a dedicated COO Robust back office processes and operational support Rigorous portfolio risk management with dedicated Risk Manager, refined through the global crisis in 2008/09 Investment Process Top-down: macro view to avoid bad markets Bottom up: thorough and well-documented investment process with auditable paper trail for all decisions Transparency Thorough reporting, regular communication and open access to investors Note: Calculation of gross performance Presented as performance before management fees, performance fees and non-trading expenses but after all trading expenses. Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 18

19 Binjai Hill Asian Equities Appendices Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 19

20 Binjai Hill Asian Equities Experienced Team: Combined 90+ years of Asian investing Justin Kendrick (Principal and Fund Manager), FCCA 24 th year of experience in Asian markets initially broking Asia out of London, before moving to Hong Kong and Singapore Managed Crosby Securities' Corporate Finance business while concurrently as Global Head of Sales ( ). Senior positions in equity sales and account management for HSBC and ABN-AMRO in Singapore David Gibbons (Principal and Research Head), ACA Qualified Accountant with almost 30 years in equity research; since 1994 in Asia Previously with HSBC Securities, latterly as Head of Research for India and Head of Asia Regional Telecoms Research, based in Hong Kong Prior to BHAM, was Group CFO for Virgin Mobile Asia, a US$550m regional mobile telecoms joint venture between the Virgin Group and Singapore Telecoms John Casey (Risk Manager and Research) 23 rd year of experience in Asian equities initially with WI Carr in Tokyo as Head of Research, and moved with WI Carr to Hong Kong as Head of Quantitative research and later Head of China & Hong Kong Research Head of Indonesian Research for Wheelock Natwest before moving to Singapore to undertake research with Socgen-Crosby Asia Securities Strong quantitative skills in derivatives, options, financial modelling and risk management systems design Aik Chee Heng (Chief Operating Officer), CPA and FCCA 29 th year of experience in operations, settlements and back-office gained from a variety of senior investment banking positions Was most recently Vice President of Securities and Fiduciary Services in DBS Bank Previously worked with Justin as Director of Finance and Operations at Crosby Securities Sharon Wong (Investor Relations) 4 years plus at Binjai Hill in client servicing and research 3 years of experience in client servicing in DBS Bank and Citibank Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 20

21 Binjai Hill Asian Equities Daily Net/Gross Exposures (%) Gross Net 0.0 Jan- 08 Apr- 08 Jul- 08 Oct- 08 Jan- 09 Apr- 09 Jul- 09 Oct- 09 Jan- 10 Apr- 10 Jul- 10 Oct- 10 Jan- 11 Apr- 11 Jul- 11 Source: Binjai Hill Asset Management Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 21

22 Binjai Hill Asian Equities Liquidity Profile How long it takes to liquidate positions as % of portfolio 120% 100% 80% % of Portfolio 60% 40% 20% 0% Days Worst Case Median Case The issue of liquidity can be framed in terms of how many days it takes to free up how much cash as a percentage of our total commitments. Using the median daily trading volume over the past six months and assuming we must be no more than 25% of that volume, we can free up 40% of the portfolio on the first day, half by the end of the second day, 70% after five days, 85% after 10 days. The Worst Case measure what would happen if we took the volume from the worst days and assumed that persisted for some time - how many days would it take to liquidate in that case. Source: Binjai Hill Asset Management, data from Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 22

23 Binjai Hill Asian Equities Composition of Investors in the Asian Acorns Fund* Type of Investor Percentage of Holdings Number of Investors Proprietary Bank Capital^ 50.3% 1 Family Office 14.4% 5 High Net Worth Individual 11.5% 11 Principal 9.8% 2 Fund of Fund 6.9% 2 Private Bank 5.9% 2 Consultant 1.1% 1 Total Location of Investor Percentage of Holdings Number of Investors Europe 60.9% 5 UK 18.0% 9 Asia 12.5% 6 Other 5.8% 3 US 2.7% 1 Total *As of 1 October 2011 ^Committed to remain invested until February 2012 Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 23

24 Binjai Hill Asian Equities Summary of Terms Fund: Investment Manager: Investment Advisor: Structure: Domicile of Fund: Minimum Investment: Management Fee: Performance Fee: High Water Mark: Subscription frequency: Redemption frequency: Redemption fees: Prime Broker Administrator Legal Counsel Auditor Third Party Marketer Binjai Hill Asian Acorns Fund Binjai Hill Capital Ltd Binjai Hill Asset Management Pte Ltd Master-Feeder Cayman Islands US$100, % of fund's NAV per annum, paid monthly 20% of fund's increase in NAV above the previous high watermark, paid annually Yes Monthly, 3 biz days before last biz day of the month Monthly, 22 biz days notice before the last biz day of the month 2% within 6 months of investment, 1% within 6 to 12 months of investment UBS HSBC Institutional Trust (Singapore) Services Walkers (Singapore) Limited Liability Partnership PricewaterhouseCoopers Hamersley Partners, LLC Binjai Hill Seedlings and Saplings Sub-Fund Emerging Asset Management Ltd Binjai Hill Asset Management Pte Ltd Segregated Account under the Emerging Manager Platform Ltd Bermuda US$100, % of fund's NAV per annum, paid monthly 10% of fund's increase in NAV above the previous high watermark, paid annually Yes Monthly, 2 biz days before last biz day of the month Monthly, 30 calendar notice before the first biz day of the month Nil DBS Bank Apex Fund Services Ltd Appleby Arthur Morris Hamersley Partners, LLC Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 24

25 Binjai Hill Asian Equities Asian Acorns Fund (Long / Short): Gross Performance Year Fund / Index Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2011 BHAAF (1.08) (0.06) (1.32) (0.41) 0.66 (2.28) (2.86) (3.95) MSCI TR AxJ (0.98) (3.87) (1.34) (2.32) 1.14 (9.89) (13.18) (19.94) 2010 BHAAF (2.15) (6.27) (0.25) MSCI TR AxJ (6.04) (8.39) (1.14) (1.47) BHAAF (2.75) (2.87) MSCI TR AxJ (5.45) (6.53) (0.47) (3.26) 8.84 (0.53) BHAAF (8.18) (2.55) (3.31) (0.32) 0.73 (4.44) (0.83) (3.46) (4.39) (14.90) (3.65) 4.06 (35.18) MSCI TR AxJ (13.85) 5.81 (6.12) 8.14 (3.33) (11.90) (0.92) (6.90) (16.56) (24.07) (5.92) 9.90 (52.38) 2007 BHAAF 4.29 (0.20) (9.73) (4.52) MSCI TR AxJ (1.14) (0.17) (1.33) (8.84) (0.39) BHAAF (2.57) (4.65) MSCI TR AxJ (7.46) (0.39) BHAAF 3.10 (0.69) (3.55) (1.93) 2.54 (1.29) MSCI TR AxJ (4.60) (1.32) (2.92) 5.44 (6.57) BHAAF (0.21) MSCI TR AxJ Note: Calculation of gross performance Presented as performance before management fees, performance fees and non-trading expenses but after all trading expenses. Asian Acorns Fund (Long / Short): Net Performance Year Annualized (36.43) (5.64) 10.1 Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 25

26 Binjai Hill Asian Equities Contacts Binjai Hill Asset Management Hamersley Partners, LLC 77A Amoy Street 1 Hollis St. Singapore Wellesley, MA T: (65) T: (781) Sharon Wong Peter Pavlina Client Liaison ppavlina@hamersleypartners.com Sharon.wong@binjaihill.com Andrew Phillips aphillips@hamersleypartners.com Ashley Nagelberg anagelberg@hamersleypartners.com Disclaimer This publication and its contents are intended for informational purposes only and may be subject to change without further notice. Neither Binjai Hill Capital nor Binjai Hill Asset Management represent nor warrant the accuracy or completeness of the information contained herein or as to the existence of other facts which might be significant, and will not accept any responsibility or liability whatsoever for any use of or reliance upon this publication or any of the contents hereof. This publication is not an offer of securities and must not be construed as an offer to sell or an invitation to subscribe to any securities or other financial products in any jurisdiction or country. An investment in any Binjai Hill fund can only be made by completing an application form attached to the appropriate offer document. Information contained in this publication is not intended to provide securities or financial product advice and should not be relied upon as such. The repayment of an investment in and the performance of funds managed by Binjai Hill Capital is not guaranteed by Binjai Hill Capital, any organisation or any person. The potential investment is subject to investment risk, including possible delays in repayment and loss of principal invested. Past performance is not indicative of or a guarantee of future results. This publication is intended as a general outline only and is not a definitive statement on the subject matter. It is not intended for public use or distribution. Past performance is not indicative of future results. The performance shown is gross performance, and all statistics were calculated using gross performance. Fees and other expenses 26