Asia Fund Limited

Fund Investment Objectives

The investment objective of the Fund is to seek superior long term capital appreciation through investment primarily in corporate equity securities of companies whose principal assets or operations are located in Asia (excluding Japan, Australia and New Zealand, but including India), or whose income is derived primarily from Asia. Our management philosophy is founded in a focused portfolio approach, where the investment will generally be focused on 10 to 15 concentrated positions being more then 70% of the portfolio. On occasion we may have 25% of the portfolio in one stock. We will not compromise on our investment criteria, so we are prepared to hold a large cash position when we can't find good ideas. At times cash may be as high as 100% of our portfolio (due to market volatility and crisis like environment). Stock picking is the center point of our strategy and we do so by thorough bottom-up fundamental analysis, intensive research, frequent company conference calls and visits, as well as assessment of the political and economic environment combined with some statistical analysis. When a stock price drops 10% from the cost or 20% from the peak, we will reexamine this position. We look for companies with a dominant position in niche markets, ideally combined with high market barriers or lowest cost producers. Those companies typically have high earnings growth and low valuation. Ideally they would have also low broker coverage and potential catalyst to unlock the value in the near future. Alternatively, during significant market corrections / bear markets we like to look at beaten down cyclical stocks with a secure future in terms of survival (such as government backing) and valuations below intrinsic value. The fund opened to outside investors January 1, 2012.