OCTIS Asset Management

Octis Asia Pacific Fund

2014
August
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
Monthly Net Returns (%) AUD
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2012 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 1.23
Monthly Net Returns (%) USD
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
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 -0.18
Monthly Net Returns (%) EUR
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2007 0.62 0.37 1.00
2008 -0.03 -0.59 -0.98 0.08 -0.19 -1.36 -0.46 -1.56 -0.69 -1.25 -0.58 -0.12 -7.48
2009 4.02 2.42 -2.29 6.88 3.94 -1.49 2.99 1.42 2.37 -1.43 0.93 0.94 22.31
2010 0.79 -0.19 2.84 -0.72 -0.56 0.51 -0.20 0.00 -0.52 0.78 0.67 0.07 3.46
2011 -0.12 -0.19 1.56 2.06 -0.50 -0.11 1.16 0.42 -1.51 2.01 -0.81 -0.35 3.60
2012 1.36 0.93 -0.24 -1.61 -0.63 1.15 -0.05 0.58 0.63 -0.02 1.02 0.59 3.72
2013 0.95 -0.22 -0.85 0.73 1.33 -2.24 -0.14 -0.08 0.45 0.49 -0.25 0.72 0.86
2014 0.66 -0.80 0.36 -2.11 -0.46 1.20 0.85 0.22 -0.11
EUR Class
Last 12
months
Since
Inception
Net Returns (%) 1.31 3.68*
Volatility (%) 3.13 4.98*
Return / Volatility 0.42 0.74
Max Drawdown (%) -3.38 -7.48
AUD Class
Last 12
months
Since
Inception
Net Returns (%) 3.30 3.50*
Volatility (%) 2.99 3.24*
Return / Volatility 1.11 1.08
Max Drawdown (%) -2.17 -2.17
USD Class
Last 12
months
Since
Inception
Net Returns (%) 1.33 3.83*
Volatility (%) 3.16 3.96*
Return / Volatility 0.42 0.58
Max Drawdown (%) -3.02 -3.02
EUR AUD USD
1 Month Return (%)
0.22 0.35 0.22
YTD Return (%)
-0.11 1.23 -0.18
Returns since Inception (%)
28.01 6.51 3.83
Average YTD AuM (USD) 1.43m 10.83m 28.24m
Performance Data
*Annualized, including 2008
Investment Strategy
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 multi-
strategy 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 (5.3% since October 2007). 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.
OCTIS Asset Management
Octis Asia Pacific Fund
2014
Asian equity markets, along with global markets, have been toppish for the last few months exhibiting swings around a major
resistance. The MSCI Asian-ex Japan benchmark fall 3.5% at the beginning of the month before recouping its losses. In this
context, our fund posted a positive return of 0.22% (0.35%) in EUR (AUD). Our long-short equity strategy (the alpha engine
of our fund) worked very well, our convertible book delivered mild positive returns too but our quantitative beta suffered from
these quick swings with a loss giving back some of the last months performance. All in all, the objective remains the same:
being able to deliver combined stable returns irrespective of the market regime thanks to the management of three
orthogonal strategies.

So why do we attend such a market behavior in Asia? From a top-down perspective, re-acceleration in global growth and in
capex should lend support to Asian equity markets. However, the issue remains that this better growth picture holds true for
the US mainly while pro-growth policies implemented elsewhere face structural challenges. Indeed, Europe is on the verge
of deflation with sub-par growth, high and persistent unemployment which dents on its external demand and thus on Asian
exports. Japan is experiencing the limits of Abenomics with an ageing population and large unbalances in its budget and
trade balances. Last, China is trying to engineer a repositioning of its growth model and to digest historical misallocation of
capital even though we observe a bottoming out as evidenced in industrial production or exports recent performance.

The second risk looming on global markets is the normalization in US monetary policy with the strengthening of the US
dollar. Historically, this has proven to be bad omen for Asian equities. Now, since the Jackson Holes speech, ECB governor
M. Draghi made clear that the ECB will implement bold measures to boost Europe growth while its seems that policy-makers
in Japan will do whatever it takes to achieve the inflation target they set. Hence, global liquidity should remain abundant and
provide a relay when the US tapering off is fully completed.

For these reasons, and in order to prevent from any Volatility accident, we stay cautious. Being aggressively short is
exposed to the risk of sustained high global liquidity (the money stock argument), being aggressively long is exposed to the
risk of a swift and violent global equity deleveraging due to the normalization in US monetary policy (the money flow
argument).

Consequently, in such a market, we are forced to walk on tip toes and to wait for clear signals before we can adjust our
portfolios. Therefore, we continue to deploy most of our Capital on the Long Short Market Neutral strategy.

Commentary
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
Asian
Equity
54%
Asian
Volatility
27%
Overlay
13%
Cash
6%
Strategic Allocation (in %AuM) @ Aug 2014
August
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
J
u
l
-
0
8

O
c
t
-
0
8

J
a
n
-
0
9

A
p
r
-
0
9

J
u
l
-
0
9

O
c
t
-
0
9

J
a
n
-
1
0

A
p
r
-
1
0

J
u
l
-
1
0

O
c
t
-
1
0

J
a
n
-
1
1

A
p
r
-
1
1

J
u
l
-
1
1

O
c
t
-
1
1

J
a
n
-
1
2

A
p
r
-
1
2

J
u
l
-
1
2

O
c
t
-
1
2

J
a
n
-
1
3

A
p
r
-
1
3

J
u
l
-
1
3

O
c
t
-
1
3

J
a
n
-
1
4

A
p
r
-
1
4

J
u
l
-
1
4

Volatility: Octis vs Major Equity Markets
Octis Eur 12m Volat. MSCI World Index
ASX 200 Index MSCI Asia Pacific Index
OCTIS Asset Management
Octis Asia Pacific Fund
2014
Comparison to Benchmarks
* AUD Class Inception: 01 November 2012; USD Class Inception: 01 January 2013
EUR
Class
AUD
Class*
USD
Class*
Euribor
3M
Eureka
Hedge
MSCI Asia
Pacific
1 Month 0.22% 0.35% 0.22% 0.02% 0.60% -0.63%
3 Months 2.29% 2.62% 2.27% 0.06% 3.22% 4.33%
6 Months 0.03% 1.04% 0.01% 0.14% 4.54% 7.31%
1 Year 1.31% 3.30% 1.33% 0.26% 7.35% 13.62%
2 Years p.a 1.49% - - 0.24% 6.42% 12.08%
3 Years p.a 1.24% - - 0.52% 2.93% 5.78%
Since Inception p.a 3.68% 3.50% 2.28% 1.48% 1.00% -2.12%
Since Inception
EUR
Class
AUD
Class*
USD
Class*
Euribor
3M
Eureka
Hedge
MSCI Asia
Pacific
Net of Fees Returns 28.01% 6.51% 3.83% 10.55% 7.01% -13.65%
Annualized Average Return 3.68% 3.50% 2.28% 1.48% 1.00% -2.12%
Annualized Volatility 4.98% 3.24% 3.96% 0.45% 7.75% 19.76%
Returns / Volatility 0.74 1.08 0.58 3.25 0.13 -0.11
12 Months Return 1.31% 3.30% 1.33% 0.26% 7.35% 13.62%
12 Months Volatility 3.13% 2.99% 3.16% 0.01% 4.24% 9.59%
Average Positive Month 1.29% 0.86% 0.90% 0.12% 1.64% 4.00%
Average Negative Month -0.71% -0.70% -0.87% - -1.85% -4.43%
Sortino Ratio** 4.23 0.89 2.48 - 0.21 -0.63
Standard Dev. of Downside 0.64% 0.80% 0.85% - 1.46% 4.47%
Correlations to EUR Class 0.42 0.08
** Sortino Ratio calculated using the monthly 3 mth Euribor
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.

Funds Information
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
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 41m (EUR 31.2m) Initial / Redemption Fees None
Minimum Subscription 500,000 either EUR, USD, AUD Lock-up Period None
August