magna new frontiers fund - fiera capital magna new comment 2. valuation frontier b price/earn...

Quarterly Investment Report

June 2015

Magna New Frontiers Fund

Magna New Frontiers Fund Quarterly Investment Report

Performance 3Commentary 4Portfolio Characteristics 8Stock Exposure 9Asset Exposure 10Exposure Changes 12Portfolio Movements 13Risk 14Performance Attribution 15GIPS Presentation 17Disclaimer 18

June 2015

CONTENTS

2


Net Assets

Strategy USD 16.6m

Period Performance

Inception 3 Years 1 Year 3 Months YTDFrom: 30 Jun 2010 30 Jun 2012 30 Jun 2014 31 Mar 2015 31 Dec 2014To: 30 Jun 2015 30 Jun 2015 30 Jun 2015 30 Jun 2015 30 Jun 2015

Frontier Markets Composite 9.8% 15.1% ‐8.9% 5.5% 1.4%MSCI Frontier Markets Index 7.3% 13.0% ‐13.9% 0.0% ‐3.2%Outperformance 2.6% 2.1% 5.1% 5.6% 4.5%

Calendar Year

2010 2011 2012 2013 2014From: 30 Jun 2010 31 Dec 2010 30 Dec 2011 31 Dec 2012 31 Dec 2013To: 31 Dec 2010 30 Dec 2011 31 Dec 2012 31 Dec 2013 31 Dec 2014

Frontier Markets Composite 32.9% ‐22.3% 12.6% 35.8% ‐0.1%MSCI Frontier Markets Index 23.4% ‐18.7% 8.9% 25.9% 6.8%Outperformance 9.5% ‐3.6% 3.8% 9.9% ‐6.9%

Performance is given in USD, gross of fees, and is annualized for periods in excess of 12 months

June 2015

STRATEGY PERFORMANCE

The Frontier Markets Composite consists of fee‐paying discretionary portfolios with a remit to invest principally in frontier markets.For comparison purposes, the composite is measured against the MSCI Frontier Markets Index, a free float‐adjusted marketcapitalization index that is designed to measure equity market performance in global frontier markets. Charlemagne Capital claimscompliance with the Global Investment Performance Standards (GIPS®), as verified for the period 1 Jun 2000 through 30 Jun 2014 byAshland Partners. A copy of the verification report and a presentation that adheres to GIPS standards are available upon request tothe Marketing Department. X

80

100

120

140

160

180

200

Jun2010

Sep2010

Dec2010

Mar2011

Jun2011

Sep2011

Dec2011

Mar2012

Jun2012

Sep2012

Dec2012

Mar2013

Jun2013

Sep2013

Dec2013

Mar2014

Jun2014

Sep2014

Dec2014

Mar2015

Jun2015

Rebased to 30 Jun 2010 = 100

Frontier Markets Composite MSCI Frontier Markets Index

3

A

Magna New

COMMENT

The Fund has

the 3.2% fall

0.1% in the in

The biggest s

even betwee

producer, Ed

started, takin

teams in our

consumers in

year over the

cash flows, a

price/earning

taken into ac

backdrop for

Conversely, G

as the shares

was a purely

drivers of the

The Saudi ma

on 15th Jun

themselves. I

in only one fo

reform and g

to take advan

stockmarket

fundamental

exposure to

companies.

NMC Healthc

positive catal

in the healthc

in both Qatar

end of the d

should see a

earnings with

All performance

w Frontiers F

TARY

s performed v

recorded by

ndex.

stock movers

n stocks in th

ita. We bough

g the position

r universe, w

n Egypt. We f

e same period

llowing plenty

s ratio of 20 t

ccount. The c

this kind of co

GB Auto, the

s from its rece

y technical sel

company are

arket generally

e failing to p

Indeed the cum

oreign accoun

rowth of the n

ntage of the d

will continue

investing with

Saudi primari

care, the Lond

yst being the

care market in

r and Saudi as

ecade and th

significant inc

h a very strong

e data is given in

Fund

very well in the

the MSCI Fro

this month w

e same marke

ht into the stoc

up to close t

ith products t

orecast reven

d and believe

y of scope for

times 2016 ea

urrent reform

ompany to flou

Egyptian auto

nt deeply disc

l-off and we m

well supporte

y performed p

produce the

mbersome Qu

nt being open

non-oil sector

iversification a

to reform an

hout the noise

ly via quality

don-listed UAE

acquisition of

n the GCC as

s it continues i

he introduction

crease in the

g growth profile

n USD, unless o

e first half of 2

ontier Markets

were all from t

et. One of the

ck at its recen

to 5% of the F

that are gear

nue growth of

e that a plann

M&A opportun

arnings, the v

ist and busin

urish.

omotive assem

counted rights

maintain our e

ed by the posit

poorly in June

wave of fore

ualified Foreig

n on the first d

and the qualit

away from en

nd become m

e surrounding

consumer-rel

E hospital com

the long-term

the populatio

its regional ex

n of mandato

number of pr

e we find the v

otherwise stated

2015, generat

s Index. In Ju

he Middle Ea

e biggest gain

nt IPO and con

Fund. Edita ha

red into the g

20% a year u

ed 40% capa

nities both ins

aluation is un

ess minded g

mbler and dist

issue finally s

exposure to th

tive Egyptian

with the open

eign buying f

n Investor sta

day. Our posit

ty of compani

ergy, and not

more accessib

foreign owne

lated compan

mpany, continu

care busines

n ages and th

xpansion. We

ry health insu

rivate hospital

valuation unde

d.

Qua

ing a positive

ne, the Fund

st with signific

ners in the por

ntinued to add

as one of the

growing numb

until 2019, an

city expansio

side Egypt and

demanding w

government in

tributor, was a

settled and be

he stock as a

macro backdr

ning of the stoc

or which loca

tus required to

tive stance on

es that we ha

on the above

ble, the focus

ership. We are

ies like retaile

ues to perform

s, ProVita. Th

his acquisition

believe NMC

urance in Dub

patients in th

emanding.

rterly Invest

return of 1.4%

fell by 0.2%

cant performa

rtfolio was the

d to the positio

highest qualit

ber of lower

nd earnings gr

n can be fund

d in the broad

when high ear

n Egypt provid

a negative per

ecame availab

again the stron

rop.

ckmarket to fo

al investors

o access the m

n Saudi is pre

ave found that

e technical fac

s for now wil

e maintaining

ers; hospitals

m very strongly

his is a rapidly

should give N

can triple its e

bai between 2

hat market. At

tment ReporJune 2015

% in contrast t

versus a fall o

ance dispersio

e Egyptian foo

on once tradin

ty manageme

middle incom

rowth of 24%

ded by intern

er region. On

nings growth

des the perfe

rformer in Jun

le for sale. Th

ng fundament

oreign investo

had positione

market resulte

edicated on th

t are positione

ctors. Whilst th

ll shift back t

our significa

and educatio

y with the late

growing secto

NMC a footho

earnings by th

2014 and 201

15 times 201

rt 5

to

of

on

od

ng

nt

me

a

al

a

is

ct

ne

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al

rs

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ed

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ed

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to

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on

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or

ld

he

16

16

4

A

Magna New

COMMENT

The second

number of fac

1. Reform Whether y

social me

large cou

economic

be countr

very high

Saudi Ara

Pakistan:

Vietnam:

Egypt:

Nigeria:

In addition

clear with

capital ma

All performance

w Frontiers F

TARY /contin

half of 2015

ctors providing

you blame the

edia or the ge

ntries are on

c growth as th

ries moving in

profile and su

abia: currently

on ene

foreign

two yea

and is

highligh

private

a recent

the bloc

foreign

foreign

recent p

return E

significa

growth

recently

election

past ca

high gro

longer t

currentl

adminis

n to these hig

the likes of C

arkets.

e data is given in

Fund

nued

and beyond c

g strong suppo

e fall in comm

nerational shi

the path of s

e economies

n the opposite

uccessful refor

y in the middle

rgy, and impl

investment int

rs ago had th

now on a ve

hted by a big

sector manag

t clean-up of t

ckages in the

ownership lim

capital into the

political chang

Egypt to its pr

antly reducing

towards 8% p

y experienced

ns. There is a

n be addresse

owth rates. W

to reverse tha

y hold any N

stration backs

gh profile refor

Cuba, Iran, Mya

n USD, unless o

could prove to

ort:

modity prices,

ft following th

social, politica

liberalise and

e direction, the

rm stories:

e of several in

lementing ver

to the market

e first peacefu

ery aggressive

privatisation p

gers and raises

the state-owne

economy to

mits on most

e country.

ge has been

revious high g

g the cost of

per annum.

d its first eve

huge amount

ed and that A

We believe tha

n the market

Nigerian posit

up its rhetoric

rm stories, the

anmar and Et

otherwise stated

o be profitable

the rise in e

he revolutions

al and econom

d attract capita

e frontier wor

nitiatives to di

ry significant

for the first tim

ul transition of

e programme

programme wh

s significant s

ed enterprise

be removed.

equities is a

followed thro

growth traject

capital for Eg

er peaceful h

t of hope that

Africa’s largest

at the very ne

is currently fac

tions, but this

c with actions.

e next wave o

hiopia all laun

d.

Qua

e for investor

asily accessib

of the 1970s

mic reform. T

al for investm

rld today is ch

versify the ec

stockmarket r

me.

f democratic p

e of reform in

hich both puts

ums of money

and banking s

In addition th

further sign

ugh by signif

ory. Huge am

gyptian busine

handover of p

the terrorism

economy can

egative econom

ctoring in and

s could chan

of countries sta

nched on the ro

rterly Invest

rs in frontier m

ble communic

, it is clear th

hese reforms

ment. Whilst th

haracterized b

conomy away

reforms which

power in the c

n all areas of

s companies

y for the treasu

sectors has en

he recent deci

of the wish t

ficant econom

mounts of fore

esses and dr

power follow

and corruptio

n return to its

mic environm

therefore the

nge very quic

arting on this

road to integra


markets, with

cations such a

at a number o

create exces

here will alway

by a number o

from a relianc

h enable dire

ountry’s histo

f the econom

in the hands o

ury.

nabled some o

sion to remov

to attract mor

mic initiatives t

eign money ar

iving econom

ing democrat

on issues of th

previously ve

ment will requir

Fund does no

ckly if the ne

path is alread

ation with glob

rt 5

a

as

of

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of

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ct

ry

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of

of

ve

re

to

re

mic

tic

he

ry

re

ot

ew

dy

al

5

A

Magna New

COMMENT

2. ValuationFrontier b

price/earn

developed

a price/ea

The two c

versus em

3. Rising inAs the US

question

elsewhere

In fact, ov

from front

the point

tantrum” o

Source: Citi Rese

All performance

w Frontiers F

TARY /contin

n became an as

nings ratios,

d markets sinc

arnings multipl

charts below

merging and d

terest rates; S starts to rais

is should fro

e?

ver the past 15

tier markets. T

that this is no

of 2013, frontie

earch

e data is given in

Fund

nued

sset class in 2

frontier mark

ce the asset c

e of below 10

shows the hu

eveloped mar

are they bad se interest rat

ntier markets

5 years, highe

The chart belo

ot driven by U

er markets ou

n USD, unless o

2007 when th

kets today ar

class was form

0 times for this

uge discount t

rkets and ama

for frontier mtes at some p

s suffer as liq

er bond yields

ow shows this

USD-pegged

utperformed em

otherwise stated

e MSCI launc

re trading at

med. They are

year.

that has now

algamated into

markets? point later this

quidity drains

have consiste

relationship w

Gulf markets)

merging marke

d.

Qua

ched its Front

the biggest

e cheap on an

emerged on

o world market

s year, and as

out of them

ently been ass

with the frontie

). And indeed

ets.

rterly Invest

tier Markets I

discount to

n absolute bas

trailing price/

ts.

s global bond

and chases

sociated with o

er markets ex

, during the s


ndex. On 201

emerging an

sis as well, wit

/earnings ratio

yields rise, th

higher return

outperformanc

-GCC (to mak

so-called “tape

rt 5

15

nd

th

os

he

ns

ce

ke

er

6

A

Magna New

COMMENT

With one of t

the reform pr

this economic

trusting with

shareholders

towards dom

the local popu

We believe th

produce exce

current frontie

All performance

w Frontiers F

TARY /contin

he main reaso

rocess, our inv

c growth. Our

our own and

to benefit fr

estic compan

ulation.

hat a global po

ess returns to

er country stoc

e data is given in

Fund

nued

ons for investi

vestment proc

work is heavi

d clients’ mon

om the succe

ies that benef

ortfolio of com

fund holders o

ckmarket valu

n USD, unless o

ing in frontier

cess is centred

ly focused on

ney in a corpo

ess of the co

fit substantiall

mpanies with s

over a long pe

uations, we be

otherwise stated

markets bein

d around findi

finding comp

orate governa

ompany. Our

y from the ref

strong manage

eriod of time. A

lieve the oppo

d.

Qua

g the excess

ng companies

any managem

ance structure

industry focu

form process

ement operatin

And given curr

ortunity is curr

rterly Invest

economic gro

s that can tak

ment that we fe

e that allows

us is therefor

and rising inc

ng in reformin

rent global ref

rently ripe.


owth created b

ke advantage o

eel comfortab

us as minori

e heavily tilte

comes among

ng countries w

form trends an

rt 5

by

of

le

ty

ed

st

will

nd

7


Portfolio Portfolio

Number of Holdings 50Off Benchmark Holdings 86.8% Active Money 91.8%Annual Turnover * 104%Cash 0.5%

Standard Deviation 10.1% Tracking Error 7.3%Sharpe Ratio 6.5 Information Ratio 0.0

Beta 0.7

Portfolio characteristics are given ex‐post, using monthly data over the past 3 yearsThe Sharpe Ratio is against 3 month USD LIBORActive Money is a measure of the extent to which the portfolio differs from the benchmark: 100% would indicate a portfoliothat holds no benchmark stocks* Sales as a percentage of average period net assets adjusted for subscriptions and redemptions

Valuation Metrics Portfolio Index

Price Earnings 7.7 10.7Price Book 1.3 1.6Dividend Yield 3.8% 3.7%Earnings Growth 13.6% N/AReturn on Equity 16.0% 14.0%

Portfolio Concentration Portfolio Index

Top 5 Holdings 27.0% 23.5%Top 10 Holdings 46.2% 32.8%Top 20 Holdings 68.2% 48.1%Top 10 Overweights 44.8%Top 10 Underweights ‐29.6%

Market Capitalization

Market Capitalization categories (not free‐float adjusted):Small < USD 1.0 billion; Mid USD 1.0 ‐ 10 billion; Large > USD 10 billion

The Index is the MSCI Frontier Markets Index

June 2015

PORTFOLIO CHARACTERISTICS 30 Jun 2015

Small40.6%

Mid49.4%

Large10.0%

Portfolio

Small9.8%

Mid71.9%

Large18.3%

Index

8


Largest Holdings Portfolio Index

VEIL 6.3% 0.0%Al Noor Hospitals Group 5.7% 0.0%NMC Healthcare 5.6% 0.0%Edita 4.8% 0.0%Bank of Georgia 4.7% 0.0%Integrated Diagnostics Holdings 4.5% 0.0%GB Auto 4.1% 0.0%Banca Transilvania 3.9% 0.0%Hatton National Bank 3.5% 1.1%National Bank of Kuwait 3.2% 7.2%

Overweight Portfolio Index Active

VEIL 6.3% 0.0%Al Noor Hospitals Group 5.7% 0.0%NMC Healthcare 5.6% 0.0%Edita 4.8% 0.0%Bank of Georgia 4.7% 0.0%Integrated Diagnostics Holdings 4.5% 0.0%GB Auto 4.1% 0.0%Hatton National Bank 3.5% 0.0%Mouwasat 3.1% 0.0%Emirates NBD 2.6% 0.0%

Underweight Portfolio Index Active

KazMunaiGas 0.0% 1.7%Banco Macro 0.0% 1.8%Krka 0.0% 1.8%Maroc Telecom 0.0% 2.0%Guaranty Trust Bank 0.0% 2.0%Nigerian Breweries 0.0% 2.9%Zain 0.0% 3.3%National Bank of Kuwait 3.2% 7.2%YPF 0.0% 5.0%Kuwait Finance House 0.0% 5.1%

New stocks added in June:

Name Country Sector

Emaar Misr Egypt FinancialsEtisalat UAE Telecommunication Services

Stocks divested in June:

Name Country Sector

Eastern Company Egypt Consumer Staples

June 2015

STOCK EXPOSURE 30 Jun 2015

‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

9


Country Portfolio Index Active

Argentina 3.1% 11.2%Bahrain 0.0% 1.2%Bangladesh 0.0% 2.4%Bulgaria 0.2% 0.1%Cambodia 0.0% 0.0%Croatia 0.0% 1.3%Egypt 18.0% 0.0%Estonia 1.5% 0.4%Georgia 7.0% 0.0%Greece 0.0% 0.0%Jordan 0.0% 0.7%Kazakhstan 2.1% 2.6%Kenya 1.5% 5.6%Kurdistan 0.0% 0.0%Kuwait 3.2% 21.4%Laos 0.0% 0.0%Lebanon 0.0% 3.4%Lithuania 0.0% 0.1%Mauritius 0.0% 1.2%Mongolia 0.6% 0.0%Morocco 0.0% 6.6%Myanmar 1.7% 0.0%Nigeria 0.0% 14.8%Oman 0.0% 5.4%Pakistan 4.2% 9.2%Qatar 0.0% 0.0%Romania 5.7% 3.3%Saudi Arabia 13.2% 0.0%Serbia 0.0% 0.2%Slovenia 0.0% 2.2%Sri Lanka 3.5% 1.9%Tunisia 0.0% 0.7%UAE 17.8% 0.0%Uganda 1.4% 0.0%Ukraine 0.0% 0.2%Vietnam 14.9% 3.9%Cash 0.5%

Sector Portfolio Index Active

Energy 2.4% 12.0%Materials 3.2% 7.1%Industrials 4.2% 3.2%Consumer Discretionary 12.2% 0.4%Consumer Staples 7.8% 8.3%Health Care 20.3% 2.9%Financials 44.3% 51.6%Information Technology 2.6% 0.0%Telecomm Services 1.1% 13.5%Utilities 1.4% 1.2%Cash 0.5%

June 2015

COUNTRY & SECTOR EXPOSURE 30 Jun 2015

‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

10


Currency Portfolio Index Active

AED 5.3% 0.0%BDT 0.0% 2.4%BGN 0.0% 0.1%BHD 0.0% 1.2%EGP 14.5% 0.0%EUR 1.6% 2.8%GBP 17.3% 0.0%HKD 0.0% 0.0%HRK 0.0% 1.3%JOD 0.0% 0.7%KES 1.5% 5.6%KRW 0.0% 0.0%KWD 3.2% 21.4%LKR 3.5% 1.9%MAD 0.0% 6.6%MUR 0.0% 1.2%NGN 0.0% 14.8%NOK 0.0% 0.0%OMR 0.0% 5.4%PKR 4.2% 9.2%QAR 0.0% 0.0%RON 5.7% 3.3%RSD 0.0% 0.2%SGD 1.7% 0.0%TND 0.0% 0.7%UAH 0.0% 0.2%UGX 1.4% 0.0%USD 31.4% 17.2%VND 8.8% 3.9%Others 0.0% 0.0%

Note that although exposure to companies is often achieved via securities listed on stockmarkets in developed countries that may bedenominated in USD etc. the underlying exposure remains within emerging markets

June 2015

CURRENCY EXPOSURE 30 Jun 2015

‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

11


Countries Bars show active weights

Sectors Bars show active weights

June 2015

PORTFOLIO MOVEMENT: COUNTRY & SECTOR Second Quarter 2015

‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

EnergyMaterialsIndustrials

Consumer DiscretionaryConsumer Staples

Health CareFinancials

Information TechnologyTelecomm Services

Utilities

31 Mar 201530 Jun 2015

‐20% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

Argentina

Bahrain

Bangladesh

Bulgaria

Cambodia

Croatia

Egypt

Estonia

Georgia

Jordan

Kazakhstan

Kenya

Kuwait

Lebanon

Lithuania

Mauritius

Mongolia

Morocco

Myanmar

Nigeria

Oman

Pakistan

Romania

Saudi Arabia

Serbia

Slovenia

Sri Lanka

Tunisia

UAE

Uganda

Ukraine

Vietnam

31 Mar 201530 Jun 2015

12


New stocks added over the period:

Name Country Sector

Emaar Misr Egypt FinancialsEtisalat UAE Telecommunication ServicesHabib Bank Pakistan FinancialsIntegrated Diagnostics Holdings Egypt Health Care

Stocks divested over the period:

Name Country Sector

AshakaCem Nigeria MaterialsCONPET Romania EnergyDubai Parks and Resorts UAE FinancialsEastern Company Egypt Consumer StaplesFondul Proprietatea Romania FinancialsJohn Keells Sri Lanka IndustrialsKIPCO Kuwait FinancialsNagaCorp Cambodia Consumer Discretionary

June 2015

PORTFOLIO MOVEMENTS: STOCKS Second Quarter 2015

13


Predicted Risk

Tracking Error 7.5%Percentage of which:Stock Specific Risk 60.2%Other Factors 39.8%

Beta 0.9Absolute Fund Volatility 12.5%Absolute Benchmark Volatility 11.0%

Stock Contributors to Tracking Variance

NMC Healthcare 8.3%Al Noor Hospitals Group 7.0%Vietnam Growth Fund 7.0%YPF 6.2%Bank of Georgia 7.75% 2017 5.7%Edita 5.4%Integrated Diagnostics Holdings 4.9%Nigerian Breweries 4.5%Guaranty Trust Bank 2.7%GB Auto 2.6%

Agility ‐0.1%Equity Bank ‐0.1%Commercial Bank ‐0.1%Nawras ‐0.1%Bank Sohar ‐0.1%BankMuscat ‐0.1%Masan Group ‐0.1%Suez Cement ‐0.2%Transgaz ‐0.2%Al Salam Bank‐Bahrain ‐0.3%

This risk analysis, on an ex‐ante basis, is produced by PRISM, a bespoke system

closely matched to Charlemagne Capital's investment process.

June 2015

RISK 30 Jun 2015

0.0% 3.0% 6.0% 9.0%

‐0.9% ‐0.6% ‐0.3% 0.0%

14


Overview EUR

Gross Fund Return 1.7%Benchmark Return ‐3.7%Active Return 5.4% of which: Security Selection 3.9%

Asset Allocation 1.5%

Security Selection

Top 10 Stocks Country Sector Portfolio Index ContributionWeight Weight

Edita Egypt Consumer Staples 4.8% 0.0% 178NMC Healthcare UAE Health Care 5.6% 0.0% 131Bank of Georgia Georgia Financials 4.7% 0.0% 98IDH Egypt Health Care 4.5% 0.0% 76Zain Kuwait Telecommunication Services 0.0% 3.3% 55HBL Pakistan Financials 2.1% 1.3% 49Telecom Argentina Argentina Telecommunication Services 0.0% 1.6% 39KazMunaiGas EP Kazakhstan Energy 0.0% 1.7% 38Emaar Properties UAE Financials 1.0% 0.0% 37Maroc Telecom Morocco Telecommunication Services 0.0% 2.0% 31

Bottom 10 Stocks Country Sector Portfolio Index ContributionWeight Weight

Gobi Coal Mongolia Materials 0.6% 0.0% ‐56National Bank of Kuwait Kuwait Financials 3.2% 7.2% ‐28MWG Vietnam Consumer Discretionary 2.0% 0.0% ‐24DHG Pharma Vietnam Health Care 1.5% 0.0% ‐24Equity Bank Kenya Financials 1.5% 1.0% ‐23Krka Slovenia Health Care 0.0% 1.8% ‐22Mabanee Kuwait Financials 0.0% 1.4% ‐18CIB Egypt Financials 1.1% 0.0% ‐18Ecobank Nigeria Financials 0.0% 0.8% ‐17Nigerian Breweries Nigeria Consumer Staples 0.0% 2.9% ‐15

Attribution by Country

Portfolio Index Portfolio Index Asset Security TotalWeight Weight Return Return Allocation Selection Attribution

Egypt 18.0% 0.0% 9.3% 0.0% 0 223 223United Arab Emirates 17.8% 0.0% 10.6% 0.0% 0 211 211Georgia 7.0% 0.0% 6.5% 0.0% 0 84 84Argentina 3.1% 11.2% ‐22.1% ‐16.7% 102 ‐21 81Kuwait 3.2% 21.4% 0.9% ‐4.9% 30 20 49Saudi Arabia 13.2% 0.0% ‐1.2% 0.0% 0 41 41Kazakhstan 2.1% 2.6% 0.9% ‐11.9% 11 26 37Morocco 0.0% 6.6% 0.0% ‐7.9% 31 0 31Kenya 1.5% 5.6% ‐22.2% ‐14.1% 51 ‐20 31Pakistan 4.2% 9.2% 25.4% 6.8% ‐37 60 23Mongolia 0.6% 0.0% ‐51.8% 0.0% 0 ‐56 ‐56Nigeria 0.0% 14.8% 9.6% 1.2% ‐79 3 ‐75

Contribution, asset allocation, security selection and total attribution are given in basis pointsThe asset allocation effect includes the impact of trading and currency. End period weights are shown.

June 2015

PERFORMANCE ATTRIBUTION Second Quarter 2015

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Overview EUR

Gross Fund Return 10.1%Benchmark Return 5.2%Active Return 4.9% of which: Security Selection 7.0%

Asset Allocation ‐2.1%

Security Selection

Top 10 Stocks Country Sector Portfolio Index ContributionWeight Weight

NMC Healthcare UAE Health Care 5.6% 0.0% 286Edita Egypt Consumer Staples 4.8% 0.0% 177DAMAC Properties UAE Financials 0.0% 0.0% 79IDH Egypt Health Care 4.5% 0.0% 76KazMunaiGas EP Kazakhstan Energy 0.0% 1.7% 74Zain Kuwait Telecommunication Services 0.0% 3.3% 72VEIL Vietnam Financials 6.3% 0.0% 63Mouwasat Saudi Arabia Health Care 3.1% 0.0% 59HBL Pakistan Financials 2.1% 1.3% 52Dubai Parks and Resorts UAE Financials 0.0% 0.0% 46

Bottom 10 Stocks Country Sector Portfolio Index ContributionWeight Weight

Guaranty Trust Bank Nigeria Financials 0.0% 2.0% ‐118Fondul Proprietatea Romania Financials 0.0% 0.0% ‐76Zenith Bank Nigeria Financials 0.0% 1.6% ‐66MWG Vietnam Consumer Discretionary 2.0% 0.0% ‐59Grupo Galicia Argentina Financials 1.6% 1.7% ‐56Gobi Coal Mongolia Materials 0.6% 0.0% ‐53Yoma Strategic Myanmar Consumer Discretionary 1.7% 0.0% ‐49Banco Macro Argentina Financials 1.5% 1.8% ‐44TBC Bank Georgia Financials 2.3% 0.0% ‐36DHG Pharma Vietnam Health Care 1.5% 0.0% ‐30

Attribution by Country

Portfolio Index Portfolio Index Asset Security TotalWeight Weight Return Return Allocation Selection Attribution

United Arab Emirates 17.8% 0.0% 40.1% 0.0% 0 478 478Egypt 18.0% 0.0% 27.7% 0.0% 0 245 245Saudi Arabia 13.2% 0.0% 18.0% 0.0% 0 181 181Kazakhstan 2.1% 2.6% 14.5% ‐14.0% 45 54 98Kuwait 3.2% 21.4% 6.3% 2.7% 36 12 48Sri Lanka 3.5% 1.9% 8.8% ‐7.3% ‐24 70 47Morocco 0.0% 6.6% 0.0% ‐0.4% 37 0 37Oman 0.0% 5.4% 33.8% 14.6% ‐44 4 ‐40Myanmar 1.7% 0.0% ‐18.3% 0.0% 0 ‐48 ‐48Mongolia 0.6% 0.0% ‐45.7% 0.0% 0 ‐52 ‐52Nigeria 0.0% 14.8% 23.0% 2.5% ‐87 ‐17 ‐104Argentina 3.1% 11.2% ‐0.4% 17.3% ‐119 ‐18 ‐137

Contribution, asset allocation, security selection and total attribution are given in basis pointsThe asset allocation effect includes the impact of trading and currency. End period weights are shown.

June 2015

PERFORMANCE ATTRIBUTION: YEAR TO DATE 2015 to 30 Jun

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Performance

Year Composite Benchmark Composite Benchmark Number of Internal Composite Firm2010 Gross Return Return 3 Year St Dev 3 Year St Dev Portfolios Dispersion Assets Assets2010 32.9% 23.4% Five or fewer N/A USD 27m USD 3,317m2011 ‐22.3% ‐18.7% Five or fewer N/A USD 30m USD 2,206m2012 12.6% 8.9% 19.7% 11.0% Five or fewer N/A USD 18m USD 2,530m2013 35.8% 25.9% 17.6% 11.9% Five or fewer N/A USD 24m USD 2,636m2014 ‐0.1% 6.8% 14.4% 11.1% Five or fewer N/A USD 25m USD 2,197m

2010 returns from 30 Jun

June 2015

GIPS PRESENTATION

Charlemagne Capital’s Frontier Markets Composite consists of fee‐paying discretionary portfolios with a remit to invest principally infrontier markets. For comparison purposes, the composite is measured against the MSCI Frontier Markets Index, a free float‐adjustedmarket capitalization index that is designed to measure equity market performance in global frontier markets. Returns include the effectof foreign currency exchange rates. The index uses the 4pm London close whilst the composite uses the 4pm New York close. Internaldispersion is calculated using the equal‐weighted standard deviation of the annual returns of all portfolios that were included in thecomposite for the entire year. The Frontier Markets Composite was created on 1 January 2014.

Charlemagne Capital is a specialist, independent emerging markets asset management group, and includes both Charlemagne Capital(IOM) Limited and Charlemagne Capital (UK) Limited. With effect from 31 December 2009, the GIPS‐compliant definition of the firmexcludes the private equity business of Charlemagne Capital, which is run as a separate division. The firm maintains a complete list anddescription of composites, which is available upon request.

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Compositeperformance is presented net of foreign withholding taxes on dividends, interest income, and capital gains. Withholding taxes may varyaccording to the investor’s domicile. Composite returns represent investors domiciled primarily in the United Kingdom and Ireland. Theindex uses withholding tax rates applicable to the country of incorporation of each company in the portfolio. Past performance is notindicative of future results.

The US dollar is the currency used to express performance. Returns are presented gross of management fees and include thereinvestment of all income. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in themanagement of the account. The collection of fees produces a compounding effect on the total rate of return net of management fees. Asan example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) quarterly fee assessment, (b)$1,000,000 investment, (c) portfolio return of 8% a year, and (d) 1.00% annual investment advisory fee would be $10,416 in the first year,and cumulative effects of $59,816 over five years and $143,430 over ten years. The investment management fee on pooled portfolios istypically 1.25% per annum; a performance‐based fee may also be applied. Actual investment advisory fees incurred by clients may benegotiable and can vary. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available uponrequest.

Charlemagne Capital claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented thisreport in compliance with the GIPS standards. Charlemagne Capital has been independently verified for the periods 1 June 2000 through30 June 2014. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all thecomposite construction requirements of the GIPS standards on a firm‐wide basis and (2) the firm’s policies and procedures are designedto calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specificcomposite presentation.

GIPS is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this presentation.

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Magna New Frontiers Fund Quarterly Investment ReportJune 2015

This document is issued by Charlemagne Capital (UK) Limited, which is authorised and regulated by the Financial Conduct Authority.

Charlemagne Capital (UK) Limited39 St James‘s StreetLondon SW1A 1JD

Tel: + 44 (0)20 7518 2100Fax: + 44 (0)20 7518 2200Website: www.charlemagnecapital.com

Index data is sourced from MSCI. Charlemagne Capital is the source of all other data unless stated otherwise.

DISCLAIMER

This document may not be disclosed, distributed, copied, reproduced or used (in whole or in part) for any purpose without theexpress written consent of Charlemagne Capital (UK) Limited (“Charlemagne”). Charlemagne has been appointed by Magna UmbrellaFund plc (the “Company”) to procure the distribution of its Shares. The Company is an open‐ended umbrella investment companyauthorised by the Central Bank of Ireland as a UCITS. Charlemagne Capital (UK) Limited is authorised and regulated by the FinancialConduct Authority (“FCA”). The Company has sought and has been granted approval by the relevant regulatory authorities to marketand distribute its Shares as appropriate in the following jurisdictions: UK; Germany; Luxembourg; Austria; Switzerland*; TheNetherlands; Denmark; Singapore; France, Finland, Sweden and Italy. In Canada, the distribution of this document and any otherdocument relating to the distribution or marketing of the Company (including the Prospectus relating to Company), is made and willbe made only to accredited investors (as defined in National Instrument 45‐106 – Prospectus and Registration Exemptions) orpursuant to another applicable prospectus exemption. Full information on the regulatory status and the applicable laws relating tothe marketing and distribution of the Company’s Shares in the various jurisdictions in which the Company is registered are moreparticularly set out in the Prospectus of the Company. The purchase of shares in the Company constitutes a high risk investment andinvestors may lose a substantial portion or even all of the money they invest in the Company. Investors are advised to read thesection of the Prospectus entitled “Risk Factors” prior to investing in the Company. The information within does not constituteinvestment, tax, legal or other advice and is not a recommendation or an offer to sell nor a solicitation of an offer to buy Shares in theCompany, which may only be made on the basis of the Company’s Prospectus. An investor in the United Kingdom who enters into anagreement to acquire Shares in the Company will not have the right to cancel the agreement under any cancellation rules made bythe FCA. Charlemagne reasonably believes that the information contained herein is accurate as at the date of publication but nowarranty or guarantee (express or implied) is given as to accuracy or completeness. The information and any opinions expressedherein may change at any time. The Prospectus of the Company shall not be distributed and Shares in the Company shall not beoffered, distributed or sold in any jurisdiction in which such distribution, offer or sale would be unlawful. Prior to investing in theCompany, investors are advised to contact their independent financial adviser and should read all documents relating to theCompany that may be obtained from the Administrator, the Share Distributor or the website of www.fundinfo.com. This documentincludes statements that are, or may be deemed to be, “forward‐looking statements”. These forward‐looking statements can beidentified by the use of forward‐looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”,“may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward lookingstatements include all matters that are not historical facts. They appear in a number of places throughout this document and includestatements regarding the intentions, beliefs or current expectations of Charlemagne concerning, amongst other things, theinvestment objectives and investment policy, financing strategies, investment performance, results of operations, financial condition,prospects, and dividend policy of the proposed investment vehicle and the markets in which it, and its portfolio of investments,invest and/or operate. By their nature, forward‐looking statements involve risks and uncertainties because they relate to events anddepend on circumstances that may or may not occur in the future. Forward‐looking statements are not guarantees of futureperformance. The proposed fund’s actual investment performance, results of operations, financial condition, dividend policy and thedevelopment of its financing strategies may differ materially from the impression created by the forward‐looking statementscontained in this document. There is no assurance the Company will achieve its investment objectives or the target returns describedin the document.

* The prospectus for Switzerland, Key Investor Information Documents, the articles of incorporation, the annual and semi‐annualreports, as well as the list of the buying and selling transactions can be obtained free of charge from the representative inSwitzerland, Carnegie Fund Services S.A., 11, rue du Général‐Dufour, 1204 Geneva, Switzerland, Tel. +41 22 705 11 77, Fax: + 41 22705 11 79, www.carnegie‐fund‐services.ch. The paying agent is Banque Cantonale de Genève, 17 Quai de l'Ile, 1204 Geneva,Switzerland.

To receive a list of Charlemagne Capital’s composite descriptions and/or a presentation that complies with GIPS standards, as well as any other information, please contact the Marketing Department.

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