1

Fund Manager’s report

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD %

2010 NAV 20.4197 20.1190 22.3725 23.4435 21.6715 24.3942

Change 5.42% -1.47% 11.21% 4.77% -7.56% 12.56% 25.93

2009 NAV 8.5236 7.6617 9.1099 10.4420 13.2715 14.2902 16.6843 16.7908 17.9908 18.0152 18.4263 19.3706

Change -1.36% -10.11% 18.90% 14.62% 27.10% 7.68% 16.75% 0.64% 7.15% 0.14% 2.28% 5.12% 124.16

2008 NAV 15.4651 15.7779 14.3362 12.9789 14.6878 14.5049 14.9479 14.9634 13.0852 7.4995 7.1179 8.6414

Change -1.77% 2.02% -9.14% -9.47% 13.17% -1.25% 3.05% 0.10% -12.55% -42.69% -5.09% 21.40% -45.11

2007 NAV 11.0306 11.1212 11.1933 12.2284 12.6694 13.1618 13.7258 13.0801 14.0064 15.1356 15.1012 15.7431

Change 0.13% 0.82% 0.65% 9.25% 3.61% 3.89% 4.28% -4.70% 7.08% 8.06% -0.23% 4.25% 42.91

2006 NAV 10.4711 11.0159

Change 4.71% 5.20% 10.16

1 mth 3 mths YTD 1 yr 2 yrs 3 yrs inception

NAV 12.56% 9.04% 25.93% 70.71% 68.18% 85.34% 143.94%

JCI (in USD) 11.05 % 5.51% 21.16% 63.19% 28.59% 37.67% 83.94%

During June in USD terms, Komodo Fund gained 12.56%, versus the Indonesian Stock Exchange gain of 11.05%, an outperformance of 1.51%. Year to date, Komodo Fund has gained 25.93%, versus the IDX gain of 21.16%, an outperformance of 4.77%. Since its inception in November 2006, Komodo Fund has gained 143.94%, outperforming the IDX by 60%. May’s month end recovery continued into June, although on lighter volumes, with outperformance in the consumer, cement, and construction sectors, as well as some of the larger banks. The outlook for the macro and micro landscape remains robust. Although June inflation picked up on a monthly basis due to short term increases in some unprocessed food prices, the trend remains very much within range of Bank Indonesia’s target of around 5%, and forthcoming electricity price increases will not change that. Rate increases remain highly unlikely before Q1 next year. BI has taken further, sensible pre-emptive measures to reduce IDR volatility by introducing a minimum holding period of one month for SBIs as well as doubling the band for the overnight rate. Banking sector loan growth picked up in Q2 and should easily exceed the BI target of 20% for the year. Key indicators of domestic consumption such as motorbike, cement and retail sales continue to be very strong, and domestic business confidence is high. The market P/E multiple based on next year’s earnings is only at the historic average level. The Moody’s change of outlook to positive for local and foreign currency sovereign ratings is a reminder of the trend toward investment grade which will ultimately reduce the cost of capital and further drive growth. In addition to changing our redemption frequency to monthly, we have also now created an institutional share class whose performance fee is based on outperformance of the IDX. If you would like further details of this, please contact us at the email address at the bottom of page 2. Our next subscription date is Friday 30th July.

Komodo Fund Newsletter

Fund Performance (net of all fees)

June 2010

Note: The NAV data is based on Series 1, 2010. For subsequent subscriptions the NAV may vary.

2

Fund Information Contact Details

12-months highest NAV 23.3942

12-months lowest NAV 14.2902

Largest monthly gain 27.10%

Largest monthly loss -42.69%

Months with gains 70.50%

Sharpe Ratio (RFR 4%) 0.63%

Volatility (Std. Dev.) 37.63%

Annualized Return 27.52%

Financial 20

Consumer 24

Infrastructure & Construction 17

Mining & Energy 13

Others 10

Cash 7

Property 7

Telecommunications 2

James Bryson

HB Capital Partners

c/o PT HB Capital Indonesia

Jl. Irian No. 16-18

Jakarta 10350

Indonesia

T: +62-21-3928956

F: +62-21-3928958

E: james@hb-capitalpartners.com

Disclaimer: This report has been prepared by HB Capital Partners for information purpose only. It should not be considered as an offer to sell, or a solicitation of an offer to buy. All reasonable care has been taken to ensure that the information contained herein is not untrue or misleading, but no representation is made as to its accuracy of completeness, no reliance on it. From time to time, HB Capital Partners, its affiliated companies and any of its or their officers may have an interest in any transaction, securities or commodities referred to in this report. Also HB Capital Partners, or its affiliated companies, may perform services, for, or solicit business from, any company referred to in this report. Past performance is not necessarily a guide to future performance; the price of shares may go down as well as up and cannot be guaranteed. Investors should read the Offering Memorandum before investing.

Geographic / Strategy

Management Company

Launch Date

Administrator

Custodian

Auditor

Minimum Investment

Subscriptions

Redemptions

Management / Performance Fees

High Water Mark

ISIN Code

Valor Number

Bloomberg

Greater Indonesia / Absolute Return

HB Capital Partners

6 November 2006

Horwath First Trust Fund Services

Deutsche Bank AG

Ernst & Young Singapore

USD 100,000

Monthly

Monthly (with one month notice)

1% of NAV / 20%

Applicable

KYG531261017

2898606

KOMOFUN:KY

Fund Statistics Sector Allocation %