The Fund s focus is on companies with consistent high earnings growth selected from approximately 6,350 U.S. listed domestic and foreign companies.

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1 The Timeless US Growth Fund: Focusing on EPS Growth Investment Policy of the Fund The Fund places great emphasis on the stringent fundamental analysis of the equity rating system implemented by the Fund but also on technical analysis in order to optimize the timing of buying and selling. The Fund s focus is on companies with consistent high earnings growth selected from approximately 6,350 U.S. listed domestic and foreign companies. The final selection is narrowed down to not more than sixty companies that meet the stringent criteria to assess a stock s balance sheet strength and profitability, as well as its market fundamentals and earnings growth potential but particularly to 1. a top ranking in the industry group, 2. the fundamental performance like consistent past earnings and sales growth and estimated future growth, 3. a PE ratio not greater than the estimated earnings growth rate for the current year. An essential consequence is the broad diversification into companies from at least twenty industries with strong business models which generate robust earnings growth (see page 4). The Fund is composed of approximately 30% small-cap stocks between USD 0.5 billion and USD 2 billion, 50% mid-cap stocks between USD 2 billion and USD 15 billion and 20% large-cap stocks of USD 15 billion upwards, all of which are U.S. listed but will likely include foreign growth companies (see page 5). Stocks are monitored on a daily basis in order to identify early any deterioration in a company s earnings outlook. The Fund will also keep up to 10% of its assets in bank accounts and/or money market instruments for liquidity purposes but possibly more under adverse market conditions. The Investment Committee review the quality of the positions held, taking into consideration the Investment Policy of the Fund, on a regular basis to ensure that the investment objectives of the Fund are being achieved. Market Summary The S&P 500 Pure Growth index, designed to track the performance of stocks that exhibit the strongest growth characteristics,lost 1.82% since the start of the year, after having gained 1.75% in The NAV of The Timeless US Growth Fund lost 13.1% in 2016, reflecting the weaker performance of growth stocks. This Index has gained 71% in five years or close to 12% per annum compounded, which partly reflects the recovery after the financial crises of 2008 but also the fact that many growth companies grew earnings in excess of 20%. 1

2 A VOLATILE 2015! S&P 500 Pure Growth: % S&P 500 Pure Growth: 2016: -1.82% S&P 500 Pure Growth: 2015: +1.75% Supporting the Stock Market Last week was an incredible week for earnings surprises, especially for predominately large-cap growth stocks. In the next couple weeks, more stocks will announce their quarterly results. In fact, we expect that our Growth stocks will end up reporting solid financial results and continue to emerge as market leaders. Of course, the most-talked about earnings report last week came from Apple (AAPL). The flagship stock posted negative first-quarter sales and earnings growth, as well as missed analysts' consensus earnings estimate. As a result, the stock was punished in the wake of its disappointing results. Compounding Apple's woes, the analyst community is forecasting negative sales and earnings growth for the next two quarters and for Despite the fact that Apple boosted it stock buyback program and raised its quarterly dividend, investors we really rattled by the first-quarter sales decline in iphones after an incredible nine-year run. Clearly, Wall Street wants positive sales growth and those stocks that don't produce sales growth are being punished. What's interesting is that in addition to sales growth, Wall Street is also flocking to crap stocks right now. The folks at Bespoke revealed that small-cap stocks with high P/E ratios, a huge short interest, negative analysts' ratings and a slow start to 2016 have been market leaders since the February 11 lows. So, short covering and a rotation into the beaten-up energy- and commodity-related stocks have been propelling the recent market surge. The Fund After the strong correction of the US market in August and September, a recovery set in from October through November, which however was short-lived. Small- and mid-cap stocks did not participate in the rally to the same extent. In the new year, a wave of fresh selling pushed down the S&P Pure Growth Index another 15% until mid- February, when buyers came into the market and not only stopped the decline but sparked a rally lifting this Index by 16%. The loss for the Index has narrowed to 1.6% 2

3 As companies continued to release their QI earnings, we have seen many positive earnings surprises of the companies in the portfolio. Weibo e.g. has already reported an earnings surprise +12.5%, Qorvo one of 13% and Expedia one of 250% while Beacon Roofing beat earnings forecasts by 114%. SIMILAR PATTERNS! The Russell 2000 is by far the most common benchmark for mutual funds that identify themselves as "smallcap", while the S&P 500 index is used primarily for large capitalization stocks. It is the most widely quoted measure of the overall performance of the small-cap to mid-cap company shares. The index represents approximately 8% of the total market capitalization of the Russell 3000 Index. The average market capitalization for a company in the index is around $1.26 billion. The median market cap is around $528 million. The market cap of the largest company in the index is around $5.0 billion. Its first trades above the 1,000 level occurred May 21-22, All-time high: 1293 Up 28% Down 14% Up 23% 20% Down 27% 3

4 Diversification by Industry Top Ten Holdings 4

5 Diversification by Market Cap Diversification by Domicile 5

6 Board of Directors of the Timeless US Growth Fund Investment Manager Directors of TAM Investment Committee Legal Consultant Peter Zihlmann, Malta Director of Timeless Asset Management Ltd John Mark Caruana, B.Com (Hons) (Melit), M.Sc. (Melit.,) Malta Director & Compliance Claudio Tonolla, Malta Financial Consultant Timeless Asset Management Ltd, 6, Third Floor, Suite 1, Market Street, Floriana FRN 1082, Malta Phone Peter Zihlmann, Fund Manager John Mark Caruana, B.Com (Hons) (Melit), M.Sc. (Melit.,) Malta Managing Director & Compliance Dr. Simon Grima, Head of Insurance Department University of Malta Peter Zihlmann, Director of Timeless Asset Management Ltd, Malta Dr. Simon Grima, Head of Insurance Department University of Malta Victor R. Dario, Independent IC Member, Zurich, Switzerland CDF Advocates 13/23 Vincenti Buildings, Strait Street, Valletta VLT 08 Malta. 6

7 Disclaimer This report has been issued by Timeless Asset Management Ltd, which is licensed and regulated by the Malta Financial Services Authority to provide investment services in Malta. This annual report is only handed out to third parties upon their explicit request. Any investments in the The Timeless US Growth Fund should be based on the full details provided in the prospectus of the fund, which is available on the web site: Any past performance mentioned in this document should not be taken as guidance to future performance. Furthermore, any forecast of performance should not be taken as a reliable indicator of actual future performance. The value of the investment may go up as well as down. This document is intended for information purposes only and none of its contents should be taken as financial advice. Although to the best knowledge of Timeless Asset Management Ltd, the above information is correct, the company or its employees cannot guarantee that the above information is accurate and cannot accept any liability whatsoever due to decisions taken fully or partly based on the information provided. One should also note that this is an Professional Investor Fund (PIF), hence, potential investors would need to qualify in line with certain criteria to be able to invest in this fund. 7