AFC Asia Frontier Fund AFC Asia Frontier Fund CONFIDENTIAL January 2017 September 2013
INTRODUCING ASIA FRONTIER CAPITAL AFC Asia Frontier Fund 2
INTRODUCING ASIA FRONTIER CAPITAL Proven Expertise In Frontier Markets • Asia Frontier Capital Limited was created in June 2013 through a Management Buy Out from Leopard Capital • The founder and CEO, Thomas Hugger, has more than 20 years experience in investing in Frontier Markets • Licensed by SFC Hong Kong for Type 4 (advising on securities) and Type 9 (asset management) Asia Frontier Capital Offers Three Funds AFC Asia Frontier Fund – Launched 30 th March 2012 • AFC Vietnam Fund – Launched 23 rd December 2013 • AFC Iraq Fund – Launched 26 th June 2015 • Attractive Equities Identified in Structured Investment Policy • Asia Frontier Capital has identified equities with good upside potential • The Fund has access to numerous primary and secondary research sources • A Structured Investment and Research process is being followed AFC Asia Frontier Fund 3
Our Team OUR TEAM Thomas Hugger, CEO and Fund Manager, has spent 27 years in Ahmed Tabaqchali, CIO of Iraq Investments, is an experienced capital private banking and has been investing in Asian and African markets professional with over 22 years of experience in MENA Frontier Markets since 1993. He is the former Managing Partner, markets as well as the US. He is currently a board member of the Credit CFO & COO of Leopard Capital; and was previously a Managing Bank of Iraq and former Executive Director of NBK Capital, the Director and Head of Portfolio Management at LGT Bank in Hong investment banking arm of the National Bank of Kuwait. Prior to these Kong. Mr. Hugger was the founding shareholder of one of the roles Ahmed was Managing Director and Head of International largest brokerage companies in Bangladesh. He is also a Certified Institutional Sales at WR Hambrecht + Co. This followed on from roles Financial Investment Analyst (CFIA) and Investment Adviser as a Managing Director at KeyBanc Capital Markets and Director & (Switzerland) and a Certified European Federation of Financial Head of Capital Markets & Institutional Sales at Jefferies Int'l in London. Analysts Societies (EFFAS) Financial Analyst. Ahmed is an Iraqi as well as British national and holds a M.Sc. in Mathematics from Oxford University in England, a B.Sc. (Hons, 1st class) in Mathematics from Victoria University and a B.Sc. in Mathematics from Canterbury University in New Zealand. Ruchir Desai, CFA, Senior Investment Analyst, is an MBA graduate Peter de Vries, Marketing Director , has over 25 years experience in in Finance from CUHK Business School at The Chinese University of finance of which 20 in Hong Kong. He is a former Director and Senior Hong Kong and is also an alumnus of The Fuqua School of Business Relationship Manager at Leopard Capital. Prior to that he was an at Duke University where he spent a semester during his MBA Executive Vice President at Upbest Financial Services where he was program. He is also a Chartered Financial Analyst (CFA) charter involved with fund raising and deal structuring for real estate holder. Prior to being based in Hong Kong, Ruchir was based in investment and development projects in Macau. Previously he worked Mumbai where he spent two years as a Senior Analyst at HandsOn as Executive Vice President at ViewTrade Securities in Hong Kong as Ventures LLC, a mid-market private equity group focused on head of the business development for the Asia Pacific region. Mr. De investments in the Business Services industry. Prior to this role, he Vries has also held the position of Assistant Vice President at Merrill spent three years as a Research Analyst at Pioneer Investcorp Ltd, Lynch Asia Pacific. He holds an MBA in finance from Calstate Hayward, an institutional brokerage based in Mumbai. and a Masters of Science in Electrical Engineering from Twente University in the Netherlands. Mr. De Vries is fluent in Dutch, English and German. Scott Osheroff, Regional Research Analyst, holds a Bachelor’s Ms. Margaret Kwok, Accounting & Administration Executive, has over Degree in Business Administration with a Concentration in Finance 30 years of prior work experience in accounting, administration, and from Northeastern University. Prior to joining Asia Frontier Capital, financial services at institutions such as Christfund Securities, PFC Scott worked with Pathfinder Capital Management in Southeast International, and Guoyuan Securities. She holds advanced level Asia and Mongolia. Prior to this role, Scott co-founded a publishing certificates in Accounting & Costing from London Chamber of company whose principal asset, EmergingFrontiers.com, was Commerce & Industry and a Certificate in Accountancy from Kwai leveraged to provide investment coverage on public and private Chung Technical Institute. Margaret is fluent in Cantonese, Mandarin investments in Asia’s frontier markets. He has spent the last two and English. years between Mongolia and Cambodia. 4 AFC Asia Frontier Fund
Our Team SHAREHOLDERS OF ASIA FRONTIER CAPITAL LIMITED Thomas Hugger, CEO and Fund Manager, Lord Fraser of Corriegarth, Director. has spent 27 years in private banking and has Andrew Fraser is a graduate of St John's been investing in Asian and African Frontier College, Oxford after which he held numerous Markets since 1993. He is the former posts in the financial sector both in the City of Managing Partner, CFO & COO of Leopard London and elsewhere. He has previously held Capital; and was previously a Managing positions as; CEO of Baring Securities in the Director and Head of Portfolio Management UK, Chairman of Equity Partners Ltd., a at LGT Bank in Hong Kong. Mr. Hugger was Bangladesh investment bank, as well as the founding shareholder of one of the Chairman of Bridge Securities, a quoted Korean largest brokerage companies in Bangladesh. company, amongst other posts. At present he He is also a Certified Financial Investment is a global investor based in London. Analyst (CFIA) and Investment Adviser (Switzerland) and a Certified European Federation of Financial Analysts Societies (EFFAS) Financial Analyst. Dr. Marc Faber, is CEO, investment advisor and fund manager of Marc Faber Limited. He is the publisher of a widely read monthly investment newsletter The Gloom, Boom and Doom report which highlights global investment opportunities. Dr. Faber is respected around the world for his market forecasts over the past three decades. AFC Asia Frontier Fund 5
WHY ASIAN FRONTIER MARKETS? AFC Asia Frontier Fund 6
WHY ASIAN FRONTIER MARKETS AFC Asia Frontier Fund Universe Bangladesh Cambodia Iraq Laos Maldives Mongolia Myanmar Pakistan Papua New Guinea Sri Lanka Vietnam AFC Asia Frontier Fund 7
WHY ASIAN FRONTIER MARKETS Increasing Consumption Manufacturing shift from China Favourable Demographics Excellent upside potential due to high GDP growth Low Correlation and Diversification at attractive Valuations AFC Asia Frontier Fund 8
WHY ASIAN FRONTIER MARKETS Diversification has led to Low Correlations for the Fund with Global Markets Correlation of AAFF with MSCI Indexes since Inception (30th March 2012) MSCI Frontier MSCI World MSCI Emerging MSCI BRIC Markets Variable AAFF Index Markets Index Index Index MSCI World Index 0.34 1.00 MSCI Emerging Markets Index 0.30 0.76 1.00 MSCI BRIC Index 0.33 0.74 0.98 1.00 MSCI Frontier Markets Index 0.58 0.64 0.56 0.55 1.00 MSCI Frontier Markets Asia Index 0.80 0.42 0.34 0.33 0.64 Source: Bloomberg, Asia Frontier Capital. Correlations based on Monthly Returns and Net Fund Returns AAFF – AFC Asia Frontier Fund AFC Asia Frontier Fund 9
WHY ASIAN FRONTIER MARKETS Low Correlations for the Fund with Global Markets has led to excellent Risk-Return profile Annualised Volatility vs. Fund Performance (Net) Annualised Cumulative (Since Inception, March 2012) Volatility Returns* 80% AFC Asia Frontier Fund 9.19% 70.42% 70% AFC Asia Frontier Fund USD A 60% MSCI World Index 11.21% 33.48% Gross Return 50% MSCI World MSCI Frontier Markets 40% 11.52% 2.84% Index 30% MSCI Frontier Markets MSCI Frontier Markets 20% Asia 14.25% 14.24% Asia Index 10% MSCI Frontier Markets MSCI Emerging Market 0% 15.51% -17.20% Index -10% MSCI Emerging Markets MSCI Bric Index -20% MSCI BRIC Index 18.88% -20.44% -30% 5% 7% 9% 11% 13% 15% 17% 19% Annualised Volatility Source: Bloomberg. *Correlations based on Monthly Returns and Net Fund Returns AAFF – AFC Asia Frontier Fund AFC Asia Frontier Fund 10
WHY ASIAN FRONTIER MARKETS Low Correlation to Global Markets Asian Frontier markets are under researched and have the potential to provide returns with low correlations to global markets Correlation with the MSCI World Index DSEX Index (Bangladesh) 0.60 ISXGI Index (Iraq) 0.47 0.40 CSX Index (Cambodia) 0.31 0.28 0.25 MSETOP Index (Mongolia) 0.20 0.20 0.11 LSXC Index (Laos) 0.01 VH Index (Vietnam) 0.00 CSEALL Index (Sri Lanka) -0.09 -0.20 KSE100 Index (Pakistan) VN Index (Vietnam) -0.33 -0.40 Source: Bloomberg. *Based on 5 years monthly data AFC Asia Frontier Fund 11
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