Look's

Absolute Return Fund

Fund Investment Objectives

Look's Absolute Return Fund ("the Fund") objective is to achieve capital appreciation and/or income generation over a medium to long-term investment horizon through investments in listed companies whose operations are focused mainly in, or who derive a significant amount of earnings from, Greater China, including the People's Republic of China, Hong Kong and Taiwan markets. It is expected that the main investment of the Fund will include but not limited to Hong Kong-listed stocks (including local Hong Kong companies, 'H' shares of the Mainland SOE's and shares of red chip companies listed on the Stock Exchange of Hong Kong), China 'A' shares listed on stock exchanges in China, Taiwan-listed stocks and companies listed in other overseas markets such as Nasdaq, AMEX, AIM and the New York Stock Exchange, which derives a significant proportion of their revenue from operations in the Greater China region. The Fund also looks to benefit from special situations like IPOs, mergers and acquisitions and opportunities due to market imperfection in order to generate incremental investment returns and to reduce market directional portfolio risk. The Fund is an equity long/short fund and adopts value investing as its methodology, aiming to produce sustainable long-term growth with minimal volatility. Following an 8-step investment process, we seek undervalued propositions mispriced and/or misunderstood by others. We employ our proprietary quantitative models but use them only to screen and narrow down the investible universe or to back up our fundamental arguments. Redemption fees are 3% for less than 1 year, 2% for less than 2 years, 1% for less than 3 years, and nil for over 3 years.