December

OCTIS Asset Management

Octis Asia Pacific Fund

Investment Strategy

2014
Performance Data

The funds principal objective is to generate stable long term

capital gains above the money market returns with a low level
of volatility. This objective will be achieved by running a multistrategy portfolio that employs a selection of non-correlated
strategies to invest and trade opportunistically in the Asia
Pacific markets. Despite markets turmoil, Octis succeeded in
posting a positive performance whilst dramatically reducing the
Volatility of the P&L. The components of the multi strategy
consist of (1) Asian Equity, (2) Asian Volatility and (3)
Discretionary Overlay to help master global risks. The fund has
exposure to the FX and Equity markets through Spots, Stocks,
Futures, Convertible Bonds and Options.

Last 12
months

Since
Inception

Net Returns (%)

1.33

3.71*

Volatility (%)

3.23

4.88*

Return / Volatility

0.41

Max Drawdown (%)

-3.38

EUR Class

EUR

AUD

USD

1 Month Return (%)

-0.19

-0.29

-0.17

YTD Return (%)

1.33

3.42

0.32

Returns since Inception (%)

29.85

8.82

4.35

5m

7m

22m

Average YTD AuM (USD)

Last 12
months

Since
Inception

Net Returns (%)

0.32

2.15*

Volatility (%)

3.66

3.89*

1.27

Return / Volatility

0.09

0.55

-2.17

Max Drawdown (%)

-3.02

-3.02

Last 12
months

Since
Inception

Net Returns (%)

3.42

3.98*

Volatility (%)

3.23

3.14*

0.76

Return / Volatility

1.06

-7.48

Max Drawdown (%)

-2.17

AUD Class

USD Class

*Annualized

Monthly Net Returns (%) EUR

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

2007
2008

-0.03

-0.59

-0.98

2009
2010

4.02

2.42

-2.29

0.79

-0.19

2.84

2011

-0.12

-0.19

1.56

2012

1.36

0.93

2013

0.95

-0.22

2014

0.66

-0.80

0.08

-0.19

-1.36

-0.46

-1.56

6.88

3.94

-0.72

-0.56

-1.49

2.99

0.51

-0.20

2.06

-0.50

-0.11

1.16

-0.24

-1.61

-0.85

0.73

-0.63

1.15

1.33

-2.24

0.36

-2.11

-0.46

Nov

Dec

0.62

0.37

YTD
1.00

-0.69

-1.25

-0.58

-0.12

-7.48

1.42

2.37

-1.43

0.93

0.94

22.31

0.00

-0.52

0.78

0.67

0.07

3.46

0.42

-1.51

2.01

-0.81

-0.35

3.60

-0.05

0.58

0.63

-0.02

1.02

0.59

3.72

-0.14

-0.08

0.45

0.49

-0.25

0.72

0.86

1.20

0.85

0.22

0.98

-0.16

0.80

-0.19

1.33

Jun

Jul

Aug

Sep

Oct

Monthly Net Returns (%) AUD

Jan

Feb

Mar

Apr

May

2012

Nov

Dec

YTD

1.23

0.62

1.86

2013

1.17

-0.07

-0.59

0.90

1.49

-2.07

0.52

-0.09

0.51

0.66

-0.07

0.94

3.30

2014

0.84

-0.65

0.51

-1.81

-0.22

1.38

0.86

0.35

1.15

0.02

1.28

-0.29

3.42

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

Monthly Net Returns (%) USD

Jan

Feb

Mar

Apr

2013

1.01

-0.22

-0.78

0.70

1.35

-2.21

2.73

-0.05

0.53

0.48

-0.24

0.74

4.02

2014

0.64

-0.83

0.37

-2.13

-0.45

1.19

0.84

0.22

0.96

-1.39

1.12

-0.17

0.32

Website: www.octis.com.sg E-mail: Octis.marketing@octis.com.sg Telephone: +65 6500 1188 Fax: +65 6500 1189 Address: 80 Raffles Place #24-21 UOB Plaza 2, Singapore 048624

December

OCTIS Asset Management

Octis Asia Pacific Fund

2014

Commentary
2014 proved out to be another challenging year for the Asian equity market with the MSCI Asian ex-Japan down 0.2% and
the MSCI Japan up 3% on the back of a massive expansion of the BOJs balance sheet. Our fund posted a total
performance of 1.33% return in EUR with a volatility of 3.23% for the year.
Over the year 2014, the Long Short strategy posted a substantial positive performance, as well as the Derivative book. The
Asian Macro is flat, and the Global Hedge delivered negatively.
Our general feeling is that the months ahead may see a rise in market's volatility and eventually a very selective
performance in Global equity markets. Three factors may at least support this view. First, as the recovery is now 7-year old,
global balance sheets in the US and Asia have deteriorated with a rise in debt-to-equity for example. Second, some
uncertainty prevails about Eurozone even if QE is more than expected which should be positive for European Equity. Third,
for the first time since the onset of the GFC, the FED stops being a source of certainty and starts to become a source of
uncertainty with the normalization in US monetary policy.

Our view here is that the FED will rely more on CPI than improvement in the labor market before deciding whether or not
increasing interest rates. As global inflation is falling of the cliff in particular due to the collapse in oil price - with Europe on
the verge of outright deflation, PPI in negative territories on a yearly basis in China and Japan also running the risk to come
back to negative inflation once CPI adjusted for the 2014s hike in VAT we do not believe that the FED will act in isolation
and thus believe in a very modest increase in interest rate late in the year.
2015 should then be both a continuation of the major macro trends seen in 2014 with stabilizing GDP growth and still loose
monetary conditions and also a turnaround in the short-run cycle with a rise in volatility for the above-mentioned reasons.
We then believe that in such an unclear environment and with very tight parameters on Credit products (too tight form our
risk management perspectives) we will keep the Convertible book quiet before markets get back to "normal credit
conditions". Index Volatility on its side, even if very seductive, is still difficult to materialize due to Implicit - Historic spread.
Reason why we strongly believe that 2015 should be a very good year for increasing again our Long Short strategy, and we
take this opportunity to wish you a very good year ahead.

Volatility: Octis vs Major Equity Markets

Strategic Allocation (in %AuM) @ Dec 2014

40.00%
Octis Eur 12m Volat.

MSCI World Index

ASX 200 Index

MSCI Asia Pacific Index

35.00%
30.00%

Asian
Volatility
27%

25.00%

Overlay
13%

20.00%
15.00%

Cash
6%

10.00%
5.00%

Asian
Equity
54%
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
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14

0.00%

Website: www.octis.com.sg E-mail: Octis.marketing@octis.com.sg Telephone: +65 6500 1188 Fax: +65 6500 1189 Address: 80 Raffles Place #24-21 UOB Plaza 2, Singapore 048624

December

OCTIS Asset Management

Octis Asia Pacific Fund

2014

Comparison to Benchmarks
EUR
Class

AUD
Class*

USD
Class*

Euribor
3M

Eureka
Hedge

MSCI Asia
Pacific

1 Month

-0.19%

-0.29%

-0.17%

0.01%

4.03%

-2.00%

3 Months

0.45%

1.01%

-0.46%

0.02%

4.84%

-1.74%

6 Months

2.53%

3.41%

1.57%

0.07%

6.91%

-5.39%

1 Year

1.33%

3.42%

0.32%

0.22%

9.50%

-2.46%

2 Years p.a

1.09%

0.22%

6.81%

3.24%

3 Years p.a

1.96%

0.36%

6.84%

6.59%

Since Inception p.a

3.71%

3.98%

2.15%

1.41%

1.62%

-2.98%

Since Inception

EUR
Class

AUD
Class*

USD
Class*

Euribor
3M

Eureka
Hedge

MSCI Asia
Pacific

Net of Fees Returns

29.85%

8.82%

4.35%

10.59%

12.23%

-19.51%

Annualized Average Return

3.71%

3.98%

2.15%

1.41%

1.62%

-2.98%

Annualized Volatility

4.88%

3.14%

3.89%

0.45%

7.74%

19.40%

Returns / Volatility

0.76

1.27

0.55

3.13

0.21

-0.15

12 Months Return

1.33%

3.42%

0.32%

0.22%

9.50%

-2.46%

12 Months Volatility

3.23%

3.23%

3.66%

0.03%

4.59%

9.45%

Average Positive Month

1.27%

0.85%

0.92%

0.12%

1.66%

3.93%

Average Negative Month

-0.69%

-0.65%

-0.85%

-1.83%

-4.31%

4.38

1.58

2.46

0.66

-0.84

0.64%

0.76%

0.80%

1.45%

4.35%

0.40

-0.20

Sortino Ratio**
Standard Dev. of Downside
Correlations to EUR Class

* AUD Class Inception: 01 November 2012; USD Class Inception: 01 January 2013
** Sortino Ratio calculated using the monthly 3 mth Euribor

Funds Information
Fund Strategy

Multi-Strategy, Asian Equity, Low Volatility

Management Fee

2%

Denomination

EUR, with USD and AUD classes

Performance Fee

20% with Historical High Water Mark

EUR Class Inception

01 October 2007

Redemption Notice

30 Calendar Days

Fund AuM

USD 30.7m (EUR 25.4m)

Initial / Redemption Fees

None

Minimum Subscription

500,000 either EUR, USD, AUD

Lock-up Period

None

Octis Asset Management Pte Ltd (OCTIS) is regulated as a Registered Fund Management Company by the Monetary Authority of Singapore (MAS) and is exempt from the requirement to hold a capital markets services license. Octis
Asset Management Pte Ltd is subject to MAS registration requirements which include serving not more than 30 qualified investors and managing assets the aggregate of which does not exceed $S 250M.This presentation and the
information included herein is for general information purposes only and does not constitute an offer to sell or solicitation of an offer to purchase any security, any commodity futures contract or commodity-related product, or any
advisory or trading management service described herein. By viewing this presentation you agree to be bound by the Terms and Conditions of Use. This material 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. This presentation should not be regarded as investment advice or financial product advice and should not be relied upon as such. In making any investment decision,
prospective investors must rely on their own examination of the merits and risks involved. The information contained in this document is subject to change without notice. Any research or analysis used to derive, or in relation to, the
information has been procured from sources deemed reliable by OCTIS for its own use, without taking into account the investment objectives, financial situation or particular needs of any specific investor. The fund mentioned in this
presentation are suitable for professional or institutional investors only. All investment involves risk and past performance is not indicative of future results. Our investment management services relate to a variety of investments, each
of which can fluctuate in value. The value of funds and portfolios we manage may fall as well as rise, and the investor may not get back the full amount originally invested. The loss on realization or cancellation may be very high
including total loss of investment, as the value of such an investment may fall suddenly and substantially. Access to information about the fund is limited to investors who qualify as accredited, expert and institutional investors as
defined under the Securities and Futures Act and Financial Advisers Act of Singapore, and the funds are not intended for the public in Singapore. The information memorandum is not a prospectus as defined in the Securities and Futures
Act. Accordingly statutory liability under that Act in relation to the content of prospectuses would not apply.

Website: www.octis.com.sg E-mail: Octis.marketing@octis.com.sg Telephone: +65 6500 1188 Fax: +65 6500 1189 Address: 80 Raffles Place #24-21 UOB Plaza 2, Singapore 048624