November

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 (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.
Last 12
months

Since
Inception

Net Returns (%)

2.25

3.78*

Volatility (%)

3.27

4.91*

Return / Volatility

0.69

Max Drawdown (%)

-3.38

EUR Class

EUR

AUD

USD

1 Month Return (%)

0.80

1.28

1.12

YTD Return (%)

1.52

3.72

0.49

Returns since Inception (%)

30.10

9.14

4.53

Average YTD AuM (USD)

3.70m

8.36m

24.26m

Last 12
months

Since
Inception

Net Returns (%)

1.23

4.53*

Volatility (%)

3.72

3.97*

1.35

Return / Volatility

0.33

0.59

-2.17

Max Drawdown (%)

-3.02

-3.02

Last 12
months

Since
Inception

Net Returns (%)

4.70

4.29*

Volatility (%)

3.22

3.17*

0.77

Return / Volatility

1.46

-7.48

Max Drawdown (%)

-2.17

AUD Class

USD Class

*Annualized, including 2008

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

Jun

Jul

Aug

Sep

Oct

1.52

Monthly Net Returns (%) AUD

Jan

Feb

Mar

Apr

May

2012

Nov

Dec

YTD

1.23

0.62

1.86

0.94

3.30

2013

1.17

-0.07

-0.59

0.90

1.49

-2.07

0.52

-0.09

0.51

0.66

-0.07

2014

0.84

-0.65

0.51

-1.81

-0.22

1.38

0.86

0.35

1.15

0.02

1.28

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

0.74

4.02

3.72

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

2014

0.64

-0.83

0.37

-2.13

-0.45

1.19

0.84

0.22

0.96

-1.39

1.12

0.49

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

November

OCTIS Asset Management

Octis Asia Pacific Fund

2014

Commentary
While the Asian equity benchmark in November is essentially flat year to date (in spite of the sharp rebound in Chinese
equity market), our fund posted a 1.12% return in USD (1.28% and 0.8% resp. in AUD and EUR) with all our processes
posting positive performance. The Asia quantitative long-short (alpha engine) performed well in a context of global low
volatility, the convertible & option book (sigma engine) rebounded nicely from previous month and our Asian macro / liquid
book (beta engine) kept on performing smoothly. The volatility of our fund could seem uncomfortably low for many investors
at 3.7% and could legitimate a much higher leverage at x2-3. However, being too aggressive now faces tough challenges.
Indeed, Asia-Pacific equity markets have entered a treacherous path caught between US rate normalization, a slowing
China, a Japanese experiment with unknown results and deflationary threats in Europe. As US keeps on showing strong
economic momentum, rate normalization is very much on its way though terminal rate and normalization pace remain
unknown. This unknown means that FED starts to become a source of uncertainty, which will increasingly be affecting
equity markets in a context of persistent strong USD. As far as China is concerned, our view was and still remains that the
pain is largely self-inflicted as policy makers are the only ones in the world to have conducted such a tight monetary policy.
The market rebounds strongly in November (which contributed positively to the fund) based on cheap valuation and less
tight monetary policy, but it remains that activity is subdued as evidenced by the Keqiang index (the sectors watched by
Chinas premier Li: railroad transport, power consumption, loan growth).
So far Japan experiment suggests that improvement is only nominal not real as evidenced by weak economic
momentum. This nominal pressure however exerts real competitive pressure on Asian economies (Korea, Taiwan). In
Europe, deflation threat is intensifying while current account surplus is ballooning hurting final demand for Asian exports.
Against this global backdrop, Asian economies face domestic challenges marked by an over-extended credit cycle (ASEAN
for example), steadily falling ROA, margin pressure entailed by global deflationary forces in a context where valuations are
no longer cheap. These domestic challenges are made even more complicated as, compared to the early 2000s, China has
become a major destination for Asian exports and therefore any protracted slowdown in China (markets rumors suggest that
the new normal should set GDP growth at 7%) will hurt Asian exports.
For us the conclusion is simply twofolds: (1) 2015 will be a year where volatility will be rising and markets will exhibits sharp
swings while (2) strong USD and global/domestic Asian challenges will be detrimental to Asian equity performance. In such
an environment we are confident that our three uncorrelated processes can deliver over-performance, which is the reason
why we will not alter our current allocation.
Volatility: Octis vs Major Equity Markets

Strategic Allocation (in %AuM) @ Nov 2014

40.00%
Octis Eur 12m Volat.

MSCI World Index

ASX 200 Index

MSCI Asia Pacific Index

35.00%
Asian
Volatility
27%

30.00%
25.00%

Overlay
13%

20.00%

Cash
6%

15.00%
10.00%
Asian
Equity
54%

5.00%

Jul-14

Oct-14

Apr-14

Jan-14

Jul-13

Oct-13

Apr-13

Jan-13

Jul-12

Oct-12

Apr-12

Jan-12

Jul-11

Oct-11

Apr-11

Jan-11

Jul-10

Oct-10

Apr-10

Jan-10

Jul-09

Oct-09

Apr-09

Jan-09

Jul-08

Oct-08

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

November

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

0.80%

1.28%

1.12%

0.01%

2.33%

-0.81%

3 Months

1.63%

2.46%

0.67%

0.03%

1.86%

-4.88%

6 Months

3.96%

5.15%

2.96%

0.09%

5.08%

-0.76%

1 Year

2.25%

4.70%

1.23%

0.23%

5.67%

-0.96%

2 Years p.a

1.49%

0.22%

6.11%

6.24%

3 Years p.a

1.91%

0.40%

5.47%

7.40%

Since Inception p.a

3.78%

4.29%

2.34%

1.43%

1.22%

-2.74%

Since Inception

EUR
Class

AUD
Class*

USD
Class*

Euribor
3M

Eureka
Hedge

MSCI Asia
Pacific

Net of Fees Returns

30.10%

9.14%

4.53%

10.58%

8.95%

-17.86%

Annualized Average Return

3.78%

4.29%

2.34%

1.43%

1.22%

-2.74%

Annualized Volatility

4.91%

3.17%

3.97%

0.45%

7.66%

19.50%

Returns / Volatility

0.77

1.35

0.59

3.16

0.16

-0.14

12 Months Return

2.25%

4.70%

1.23%

0.23%

5.67%

-0.96%

12 Months Volatility

3.27%

3.22%

3.72%

0.03%

3.25%

9.25%

Average Positive Month

1.27%

0.85%

0.92%

0.12%

1.62%

3.93%

Average Negative Month

-0.70%

-0.70%

-0.92%

-1.82%

-4.36%

4.46

1.88

2.66

0.37

-0.78

0.64%

0.80%

0.81%

1.45%

4.39%

0.42

-0.23

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 37.1m (EUR 29.7m)

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