OCTIS Asset Management

Octis Asia Pacific Fund

2014
July
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 0.87
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 -0.40
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 -0.33
EUR Class
Last 12
months
Since
Inception
Net Returns (%) 1.00 3.69*
Volatility (%) 3.13 5.01*
Return / Volatility 0.32 0.74
Max Drawdown (%) -3.38 -7.48
AUD Class
Last 12
months
Since
Inception
Net Returns (%) 2.85 3.46*
Volatility (%) 3.01 3.32*
Return / Volatility 0.95 1.04
Max Drawdown (%) -2.17 -2.17
USD Class
Last 12
months
Since
Inception
Net Returns (%) 1.06 3.60*
Volatility (%) 3.16 4.07*
Return / Volatility 0.33 0.55
Max Drawdown (%) -3.02 -3.02
EUR AUD USD
1 Month Return (%)
0.85 0.86 0.84
YTD Return (%)
-0.33 0.87 -0.40
Returns since Inception (%)
27.73 6.14 3.60
Average YTD AuM (USD) 1.45m 12.02m 28.66m
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
Our Fund posted a +0.85% (+0.86%) return in July in EUR (AUD). Our (1) long-short quantitative equity model (the alpha
block of our fund) delivered a marginal positive return but both our (2) derivative & convertible (the sigma block) and (3)
smart-beta portfolios performed well with a very low volatility. This alpha-sigma-smart beta portfolio construction, designed
to extract returns from a large number of assets in Asia Pacific and thus provide investors with stable returns irrespective of
the market regime, behaved then nicely. It is true that the overall Asian market rose circa 3.2% (the cash non-traded index),
but it is hard to make sense of this general performance regarding the economic and geo-political background. This is why
we have not deployed a large amount risk and this deserves explanations.

Indeed, though we have been advocating for some time that a second-half re-acceleration in global GDP should spur a rally
in Asia, we are not convinced yet that this scenario will unfold. Lets start with the global factors. Growth expectations for the
US economy have come off from 3% to 1.7%. In the same time analysts (Goldman Sachs for e.g.) admit the market is 40%
overvalued compared with the average since 1928 and we attend massive outflows from the high-yield space which has
historically proven to be leading indicator of equity flows. All this is happening in a context where the FED plans to taper
down completely with a last USD15billion step at the October meeting. In Europe - a major buyer of Asian exports and thus
provider of liquidity through current account surpluses - the economic slowdown proved much more severe than previously
thought in Germany, Italy and France and industrial production reports disappointed in May, most countries posting large
month-to-month falls.

Back to Asia, 2Q GDP is expected to tank in Japan and we confess having some troubles understanding why corporations
outlook is so positive with a collapsing consumption, erosion in real purchasing power and plunge (-19.5% in May) in
machinery orders. In Australia, unemployment moved back up to the prior cycle peak above 6%. China - which stands out
as a mystery in terms of economic statistics seems to stabilize according to PMI surveys. However, June exports were
weaker than expected. In the same time, we note a quantum gap between HSBC China PMI (survey) and business
revenues (yoy), divorce that makes us wonders to what extent these soft data (surveys) are relevant. True, Taiwan exports
hold up well, but in the same time, Korea has recently revised down its GDP forecast for the year, the new Indian
government must now deliver after a strong performance of the equity market, Indonesia is plagued with uncertainties
surrounding the ongoing general elections, could surprise on the down-side with the issuance of new bond to fund new
projects (liquidity drain) and still needs to address the sustainability of the current account. In the meanwhile, Thailand tries
to find a solution to the never-ending political chaos.

All these reasons explain why we never fundamentally bought this Asian equity rally in July and why we remained on the
sidelines as far as deploying risk is concerned. For the month to come, we do not see any reason why we should alter our
view and will stay most likely shy in terms of risk allocation.
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) @ Jul 2014
July
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
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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 0.85% 0.86% 0.84% 0.02% 2.32% 2.14%
3 Months 1.59% 2.03% 1.58% 0.07% 4.60% 8.38%
6 Months -0.98% 0.04% -1.04% 0.15% 5.08% 10.41%
1 Year 1.00% 2.85% 1.06% 0.27% 8.30% 12.55%
2 Years p.a 1.67% - - 0.25% 6.83% 11.99%
3 Years p.a 1.31% - - 0.56% 2.01% 2.86%
Since Inception p.a 3.69% 3.46% 2.26% 1.49% 1.07% -2.06%
Since Inception
EUR
Class
AUD
Class*
USD
Class*
Euribor
3M
Eureka
Hedge
MSCI Asia
Pacific
Net of Fees Returns 27.73% 6.14% 3.60% 10.53% 7.41% -13.10%
Annualized Average Return 3.69% 3.46% 2.26% 1.49% 1.07% -2.06%
Annualized Volatility 5.01% 3.32% 4.07% 0.46% 7.83% 19.88%
Returns / Volatility 0.74 1.04 0.55 3.28 0.14 -0.10
12 Months Return 1.00% 2.85% 1.06% 0.27% 8.30% 12.55%
12 Months Volatility 3.13% 3.01% 3.16% 0.01% 4.53% 9.82%
Average Positive Month 1.31% 0.89% 0.96% 0.12% 1.69% 4.00%
Average Negative Month -0.71% -0.70% -0.87% - -1.85% -4.53%
Sortino Ratio** 4.23 0.83 2.45 - 0.25 -0.62
Standard Dev. of Downside 0.64% 0.80% 0.85% - 1.46% 4.48%
Correlations to EUR Class 0.42 0.10
** 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 41.0m (EUR 30.6m) Initial / Redemption Fees None
Minimum Subscription 500,000 either EUR, USD, AUD Lock-up Period None
July