SinoPac Asset Mgmt (Asia)

Ltd (Multi Strat Quant Fund)

Fund Investment Objectives

The SinoPac Multi Strategy Quant Master Fund Ltd employs multiple proprietary qua! ntitative models to execute a frequent trading strategy in highly liquid investment instruments. INVESTMENT STRATEGY: The Fund aims to deliver a positive total return over the medium to long term with low volatility, low downside risk and low correlation to other asset classes. The Fund trades mainly equity index futures, commodity futures and FX but may also invest in other! asset classes. The portfolio management team has been together for many years and uses their market insights and the ability to perform large scale historical analysis to establish an Asian focused investment strategy centered on Mean Reversion, Market Reaction and Momentum RISK MANAGEMENT The SinoPac Multi Strategy Quant Fund has defined a policy in credit and market risk exposure (see the Quant Fund Risk Policy). In summary, there is a daily VAR limit, a MTD, Quarter-to-Date and YTD stop-loss limit, a liquidity limit in individual positions and issuer limits. There is a daily report showing positions, daily P/L, daily VAR and usage in various limits. It has to be si! gned by Fund Manager and is reported to the Legal and Compliance Offic er and the Managing Director. On a monthly basis, a review report will be produced detailing the usage of VAR limits and stop-loss limits and stress testing results which will be reported to the Regional Risk Management Department. On the Fund management side, risk is managed by diversification in strategies across different strategies and products. Strategy performances are reviewed on a weekly basis by the investment team consisting of the Fund Manager and the traders. Performance prior to October 2012 taken from the Sinopac Multi Strategy Quant Fund. Fund was restructured to Master Feeder beginning October 2012