8/8/2019 Dreamer 429 EHAC Value 201012

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Investment Objective Performance from 11/24/2009 to 12/31/2010

Portfolio Manager's Report

Portfolio Review:

Cumulative Performance %

1 month 1 year 3 years 5 years

Portfolio -1.85% 8.65% - -

Hang Seng Index 0.12% 5.32% - -

HSCEI -0.98% -0.79% - -

HK MidCap Index -0.05% 8.42% - -

Calendar Year Performance %

2006 2007 2008 2009

Portfolio - - - 2.54%

Hang Seng Index - - - -3.64%

Outlook: HSCEI - - - -4.30%

HK MidCap Index - - - 1.65%

Portfolio Analysis

Portfolio Information

Portfolio manager

Inception date

Base currency Top Five Holdings as at 12/31/2010NAV per unit Holding %

AUM as of 12/31/2010 LERADO GROUP Manufacturing 16.95%

PING AN INSURANCE Financial Services 13.02%

Statistical Analysis CHINA LIFE INSURANCE Financial Services 11.38%

LINK REIT REIT 11.10%

CHINA DONGXIANG Retail - Sporting Goods 9.75%

Correlation 0.62 - 0.59

Beta 0.73 - 0.67

Annualized volatility % 21.70 - 21.54

Sharpe ratio 0.15 - 0.42

Average annual return % 8.65 - 10.32

Since inception

11.41%

1.49%

EHAC Value Portfolio - Hong Kong

To provide long term capital growth by investing

in securities of companies with promising growth

prospects, unique businesses and strong financial

positions. An aggressive while conservative value

investing approach is adopted.

December 31, 2010

Our portfolio lost 1.85% in December, but was up 8.65%

YTD and 11.41% since inception, outperforming the HSI,

HSCEI and HK Midcap Index. While some of our

positions retreated along with the recent pullback in the

market, couple others on which we have high

convictions continued to re-rate on improving

fundamentals and/or re-pricing of ill-understood

fundamental strength. It only highlights the importance

of making out-of-consensus call based on rigorous

analyses. While we feel comfortable sitting with our

current holdings, we must concede that there were

missed opportunities that shouldn't have been missed.

We will revisit the investment thesis of all our open

positions, evaluate and introduce (drastic, if necessary)

changes to our portfolio as appropriate.

10.20%

2010 YTD

8.65%

5.32%

-0.79%

8.42%

-5.06%

EHAC Value Portfolio - Hong Kong

HKD

11/24/09

Sector

516,672.66

We remain confident of our consumption growth story

as we believe that the long-term policies in China are

gradually moving in our favor. However, policy

uncertainties in the short term continue to weigh on

market sentiments, intensifying the headwinds faced by

long-only portfolios. We remain cautiously optimistic,

and are positioned to capitalize on the potential bullish

run in the medium term.

Dreamer429

111.41

1 year 3 yearSince

launch

75

85

95

105

115

125

135

11/24/09 2/24/10 5/24/10 8/24/10 11/24/10

NAV per share

Hang Seng HK

MidCap Index

(Indexed at100)HSI (Indexed at

100)

HSCEI (Indexed

at 100)

Food / Beverage,

7.70%REIT, 11.10%

Financial

Services, 24.40%

Manufacturing,

16.95%

Vitamins &

Nutrition

Products, 8.35%

Retail - Sporting

Goods, 9.75% Chemicals -

Diversified, 7.39%Cash,

6.99%

Others, 4.92%Building

Materials, 2.44%