LHV Persian Gulf Fund

LHV Persian Gulf Fund I half year interim report 2014 (Translation of the Estonian original)

LHV Persian Gulf Fund I half year report 01.01.2014 30.06.2014 Fund name Fund type Fund Manager LHV Persian Gulf Fund Common fund Joel Kukemelk Main Activity Investment of fund assets, EMTAK 64301 Legal address Tartu mnt. 2, Tallinn 10145 Phone (372) 6 800 400 Fax (372) 6 800 402 Fund Management Company AS LHV Varahaldus Commercial Register no. of Fund Management Company 10572453 Managers of Fund Management Company Mihkel Oja Kerli Lõhmus Auditor AS PricewaterhouseCoopers 2

Tabel of Contents Confirmation of the Fund Management Company s Management Board Members... 4 MANAGEMENT REPORT... 5 1 HALF YEAR INTERIM FINANCIAL STATEMENTS... 7 Balance Sheet... 7 Statement of income and expenses... 8 Statement of change in Fund s net assets... 9 Statement of cash flows... 10 Notes to financial statements... 11 Note 1 Accounting principles... 11 Note 2 Concentration of open currency positions... 11 Note 3 Assets by recalculation of interest rate... 12 Note 4 Assets by regions... 12 Note 5 Assets by sectors... 13 Note 6 Statement of comparison of the Fund s net assets value... 13 Note 7 Accrued income... 13 Note 8 Related parties... 13 STATEMENT OF TRANSACTION AND COMMISSION FEES... 14 STATEMENT OF THE FUND'S INVESTMENTS AS AT 30.06.2014... 15 STATEMENT OF THE FUND'S INVESTMENTS AS AT 31.12.2013... 18 3

Confirmation of the Fund Management Company s Management Board Members LHV Persian Gulf Fund s 2014 first half year report comprises of a management report, financial report for the first half of 2014 and its notes, statement of investments and a statement of transaction and commission fees. Data and additional information presented in LHV Persian Gulf Fund 2014 first half year report is true and complete. Financial statements give a true and fair view of the financial position, performance and cash flows. Financial statements are prepared in compliance with IAS 34 "Interim financial reporting" and the requirements for information disclosure enforced by the Ministry of Finance. The financial statements are unaudited. Management Board of the Fund Management Company: Mihkel Oja Member of the Management Board Kerli Lõhmus Member of the Management Board Tallinn, 29.08.2014 4

MANAGEMENT REPORT LHV Persian Gulf Fund is a public open-end common investment fund founded by AS LHV Varahaldus on 10 January 2008. The Fund is in compliance with the EU Council directive 85/611/EEC and the legislation of the Republic of Estonia regarding UCITS. The Fund was registered with the Financial Supervisory Authority on 23 January 2008 and the Fund commenced investment activities on 5 March 2008. The objective of the Fund's activities is long-term growth of the Fund's assets. The Fund invests in securities that are traded on regulated markets in countries located in the Arabian Peninsula and Persian Gulf region (mostly GCC (Gulf Cooperation Council) member states, including the United Arab Emirate, Qatar, Saudi Arabia, Oman, Kuwait and Bahrain). The rally in equities of the GCC countries of the first half year of 2014 was supported by growing profits of the region's companies and strong economic environment, growing government investments in the economy in GCC countries to diversify the economies, strong state of real estate market in the whole region and the decision made in June 2014 to add UAE and Qatar to the MSCI Emerging Markets Index. Qatar s decision in May to allow foreign investors to own 49% of company s shares, instead of 25% as it was up until May had a positive impact as well. Some anxious moments in the Middle East were caused by the conflict between Russia and Ukraine, ISIL rebels in Iraq, Syria s ongoing civil war, Israeli conflict in the Gaza area, Qatar s bribery accusations in relation to them winning the organization right for the 2022 FIFA World Cup and the change of management in Dubai s biggest construction firm Arabtec. Energy prices for the GCC countries remained at the suitably high level in the first half of 2014. The conflict between energy-rich Russia and Ukraine, which has led to mutual sanctions, has played a role in it. Whereas the GCC countries would require an average oil price of ca $80 per barrel to cover their budget expenditures, WTI oil price at the end of June 2014 was $105 a barrel vs $98 a barrel at the end of 2013 and Brent oil price at the end of June 2014 was $112 a barrel vs $111 a barrel at the end of 2013. Therefore, on an aggregate basis, despite the surge in investments made by the GCC countries governments, their aggregated budgets and current accounts continue to be in surplus. During the first six months of 2014 the Fund s investments in United Arab Emirate decreased from 36.9% to 33.1% and investments in Qatar decreased from 27.1% to 25.0%. Because of this the proportion of the Fund s investments in Saudi Arabia grew from 18.7% to 21.9% and investments in Kuwait grew from 3.8% to 7.6%. In the long term, the most interesting markets in the region are United Arab Emirate, Qatar and Saudi Arabia. Qatar and United Arab Emirate joined the MSCI Emerging Markets index in June 2014. This means more interest in the whole region by foreign investors hereinafter. The increase of the S&P Dow Jones rating with the same content will become effective by September 2014. The biggest stock Exchange in the region Saudi Arabia has taken big steps towards making direct investments to its stock exchange possible for foreign investors. It is highly likely that the Saudi Arabia stock market will open to foreign investors in the first half of 2015, which would increase the importance of GCC region on the financial markets. Western countries negotiations in regard to Iran s nuclear program and the established sanctions are ongoing, the probability of finding a final solution has increased. A negative impact on the GCC markets would be caused by rising geopolitical tension (e.g. worsening relationships between the Western countries, GCC countries and Iran, Syria, Israel, Egypt etc. ), an ongoing decline of oil prices, worsening relationships between the GCC countries (e.g. Saudi Arabia, the United Arab Emirates and Bahrain called back their ambassadors from Qatar due to Qatar s support to the Muslim Brotherhood in Egypt). As at the end on June 2014 LHV Persian Gulf Fund had been attributed a four star rating by Morningstar in the category of Middle East and Africa equity funds based on three and five year results, and the fund manager has been attributed a high AA rating by Citywire. In addition, the Fund has been attributed a maximum 5-star rating by the FE Crown. In June 2014 Zawya Thomson Reuters chose LHV Persian Gulf Fund the best equity fund in GCC it was a high recognition, which has been attributed to the Fund second year in a row. 5

As at the end of the first half of 2014 LHV Persian Gulf Fund assets under managements totalled EUR 52 107 408. LHV Persian Gulf Fund s investment harmonic average expected P/E ratio as at the end of the first half of 2014 is 12.4x, the P/B ratio as at the end of 2013 was 1.4x, the weighted arithmetic average ROE as at the end of 2013 is 13.2% and current 12 month dividend rate is 3.8%. During the first half of 2014 the fund manager visited companies in the United Arab Emirate, Kuwait and Saudi Arabia. The difference of NAV in this report from the initially published NAV is mostly due to additional information considered for the valuation of investments which was received at the time of compiling the report. Comparison of Fund s return with MSCI indexes of different regions* NAV 31.12.2013 NAV 30.06.2014 Change in Period MSCI GCC countries index, excl. Saudi Arabia* 620,305 704,087 +13,51% LHV Persian Gulf Fund 12,2650 13,7952 +12,48% * net, in euros, according to the official daily price; source: www.mscibarra.com 6

1 HALF YEAR INTERIM FINANCIAL STATEMENTS Balance Sheet (In euros) Assets Note 30.06.2014 31.12.2013 Current assets Cash and cash equivalents 1 319 689 2 362 089 Financial assets at fair value through statement of income and expenses: Shares 39 373 263 20 135 988 Fund shares 3 191 225 1 386 146 Derivatives 8 552 773 3 597 340 Accrued Income 7 1 898 344 166 398 Total assets 54 335 294 27 647 961 Liabilities and net asset value Current liabilities Liabilities to unit holders 2 110 113 42 449 Liabilities to Fund Management Company 8 88 594 36 327 Liabilities to depositary 29 179 12 636 Liability to purchase securities 0 1 237 824 Total current liabilities 2 227 886 1 329 236 Total liabilities 2 227 886 1 329 236 Fund s net asset value 6 52 107 408 26 318 725 Total liabilities and Fund s assets in net asset value 54 335 294 27 647 961 7

Statement of income and expenses (in euros) Note 01.01.2014-30.06.2014 01.01.2013-30.06.2013 Income Interest income 478 140 Dividend income 1 614 085 270 587 Net profit/loss from financial assets at fair value through statement of income and expenses: Shares 1 976 474 1 073 030 Fund shares 345 663 0 Derivatives -267 027-222 745 Net gain/loss on exchange rate change -380 130-9 164 Total income 4 173 936 1 111 848 Operating expenses Management fees 8-425 949-68 689 Depositary fees -131 436-21 196 Transaction fees -199 852-73 528 Other operating expenses -276-73 Total operating expenses -757 513-163 485 Change in Fund s net asset value 3 416 423 948 363 8

Statement of change in Fund s net assets (in euros) Note 01.01.2014-30.06.2014 01.01.2013-30.06.2013 Net assets of the Fund at the beginning of the period 26 318 725 3 984 448 Cash received upon subscription of A units 50 330 785 20 191 027 Cash received upon subscription of B units 463 931 101 273 Cash paid upon redemption of A units 28 157 676 2 256 609 Cash paid upon redemption of B units 264 780 43 058 Change in Fund s net asset value 3 416 423 948 363 Net assets of the Fund at the end of the period 6 52 107 408 22 925 444 Number of A units outstanding at the end of the period 3 625 599 2 045 567 Number of B units outstanding at the end of the period 226 571 222 004 NAV of unit A at end of the reporting period 6 13.8201 10.4804 NAV of unit B at end of the reporting period 6 8.8327 6.6982 9

Statement of cash flows (in euros) Cash flows from operating activities 01.01.2014-30.06.2014 01.01.2013-30.06.2013 Interest received 478 140 Dividends received 1 603 799 233 451 Net of purchases and sales of financial investments -24 941 988-16 710 615 Change in other receivables 162 044-122 691 Operating expenses paid 141 137 607 221 Net cash flows from operating activities -23 034 530-15 992 494 Cash flows from financing activities Received from the issue of units 50 794 716 20 292 300 Paid for redemption of units -28 422 456-2 299 667 Net cash flows from financing activities 22 372 260 17 992 633 Total cash flows -662 270 2 000 139 Cash and cash equivalents at the beginning of the accounting period 2 362 089 181 309 Change in cash and cash equivalents -662 270 2 000 139 Effect of exchange rate changes -380 130-9 164 Cash and cash equivalents at the end of the accounting period 1 319 689 2 172 284 10

Notes to financial statements Note 1 Accounting principles LHV Persian Gulf Fund is an open common investment fund which was formed on the 1st January in 2008 and started its investment activities in March of 2008. The Fund invests in securities traded in the regulated markets of countries on the peninsula of Arabian Peninsula and in the region of the Persian Gulf (mainly the GCC, the Gulf Cooperation Council member countries, incl. Bahrain, Oman, Qatar, Kuwait, United Arab Emirates and Saudi Arabia). The fund manager of the LHV Persian Gulf Fund is AS LHV Varahaldus located Tartu mnt. 2, Tallinn. The financial statements of LHV Persian Gulf Fund have been prepared in accordance with the International Financial Reporting Standards as they have been adopted by European Union (IFRS EU). The accounting principles of investment funds are stipulated in the Investment Funds Act, in the Accounting Act and in the regulation for Requirements for investment fund reports subject to disclosure as adopted by Ministry of Finance on 13.04.2011. The Fund s Net Asset Value is determined according to the rules set out by the Investment Funds Act 142 section 2 and 204 section 1. The report has been prepared using the same accounting principles as were used in the financial statements of the period ending 31.12.2013. The report has been prepared in euros. This report has been approved by the Management Board on 29.08.2014. Note 2 Concentration of open currency positions 30.06.2014 EUR USD AED BHD KWD OMR QAR SAR Assets exposed to currency risk Cash and cash equivalents 819 792 499 897 0 0 0 0 0 0 Shares 0 2 093 858 15 131 666 1 444 358 3 957 459 3 754 507 12 991 415 0 Fund shares 0 0 0 0 0 0 0 3 191 225 Derivatives 60 000 000 7 594 789 0 0 0 0 0 8 182 411 Accrued income 0 0 426 900 0 0 418 472 270 584 782 388 Total assets exposed to currency risk 60 819 792 10 188 544 15 558 566 1 444 358 3 957 459 4 172 979 13 261 999 12 156 024 Liabilities exposed to currency risk Derivatives -7 500 000-59 724 427 0 0 0 0 0 0 Other liabilities -2 227 886 0 0 0 0 0 0 0 Total liabilities exposed to currency risk -9 727 886-59 724 427 0 0 0 0 0 0 Open currency position 51 091 906-49 535 883 15 558 566 1 444 358 3 957 459 4 172 979 13 261 999 12 156 024 11

31.12.2013 EUR USD AED BHD KWD OMR QAR SAR Assets exposed to currency risk Cash and cash equivalents 1 103 375 1 258 714 0 0 0 0 0 0 Shares 0 750 109 8 954 137 676 542 994 013 1 635 110 7 126 077 0 Fund shares 0 0 0 0 0 0 0 1 386 146 Derivatives 23 919 305 0 0 0 0 0 0 3 541 159 Accrued income 162 044 0 0 0 0 0 0 4 354 Total assets exposed to currency risk 25 184 724 2 008 823 8 954 137 676 542 994 013 1 635 110 7 126 077 4 931 659 Liabilities exposed to currency risk Derivatives 0-23 863 124 0 0 0 0 0 0 Other liabilities -91 376-36 -269 816 0 0 0-772 173-195 835 Total liabilities exposed to currency risk -91 376-23 863 160-269 816 0 0 0-772 173-195 835 Open currency position 25 093 348-21 854 337 8 684 321 676 542 994 013 1 635 110 6 353 904 4 735 824 Note 3 Assets by recalculation of interest rate 30.06.2014 Up to 3 months 3-12 months 1-5 years Assets More than 5 years Cash and cash equivalents 1 319 689 0 0 0 Fair value of financial assets with change through the statement of income and expenses 370 362 0 0 0 Total 1 690 051 0 0 0 31.12.2013 Up to 3 months 3-12 months 1-5 years Assets More than 5 years Cash and cash equivalents 2 362 089 0 0 0 Fair value of financial assets with change through the statement of income and expenses 39 645 16 536 0 0 Total 2 401 734 16 536 0 0 Note 4 Assets by regions 30.06.2014 31.12.2013 Estonia* 2.43% 4.71% Finland* 0.00% 0.06% Qatar 24.98% 27.08% United Arab Emirates 33.12% 36.87% Saudi Arabia 21.87% 18.72% Oman 7.22% 6.21% Kuwait 7.61% 3.78% Bahrain 2.78% 2.57% Total 100.00% 100.00% *In Estonia and Finland open exposure is only for cash and cash equivalents. 12

Note 5 Assets by sectors 30.06.2014 31.12.2013 Cash and cash equivalents 2.43% 4.77% Services 21.54% 24.08% Financial sector 33.99% 28.18% Industrial sector 14.43% 13.92% Insurance 2.17% 1.51% Real estate 16.81% 19.04% Telecommunications 2.49% 3.23% Regional funds 6.14% 5.27% Total 100.00% 100.00% Note 6 Statement of comparison of the Fund s net assets value Beginning of activities: January 2008 Value of Fund s net assets NAV of unit A NAV of unit B 31.12.2008 3 437 768 5.5878 3.5714 30.06.2009 4 939 551 5.9329 3.7919 31.12.2009 4 205 909 6.2301 3.9817 30.06.2010 3 893 825 6.3471 4.0565 31.12.2010 4 974 950 7.4898 6.2301 30.06.2011 5 848 776 7.5145 4.8026 31.12.2011 4 257 215 7.3134 4.6741 30.06.2012 4 104 304 7.4958 4.7907 31.12.2012 3 984 448 8.2088 5.2464 30.06.2013 22 925 444 10.4804 6.6982 31.12.2013 26 318 725 12.2650 7.8374 30.06.2014 52 107 408 13.8201 8.8327 The difference of NAV in this report from the initially published NAV is mostly due to additional information considered for the valuation of investments which was received at the time of compiling the report. Note 7 Accrued income As at 30.06.2014 accrued income includes cash receivables from sold securities in the amount of 1 883 704 euros and dividend receivables in the amount of 14 640 euros. By the time of preparation of these financial statements all the receivables have been collected. As at 30.06.2013 accrued income included cash receivable from subscribed shares in the amount of 122 691 euros and dividend receivable in the amount of 37 136 euros. Note 8 Related parties For the purposes of these financial statements, related parties include the Fund Management Company AS LHV Varahaldus and other investment and pension funds under the management of the Fund Management Company as well as other companies belonging to the same consolidation group with the Fund Management Company. LHV Persian Gulf Fund pays a monthly management fee to the Fund Management Company. In the first half of 2014 the fees totalled 425 949 euros, in the first half of 2013 the fees totalled 68 689 euros. As at the balance sheet date the payables to the Fund Management Company made up 88 594 euros (as at 31.12.2013 the liability was 36 327 euros). The Fund Management Company has not made any transactions with other funds under the management of the Fund Management Company. Transaction fees in the first half of 2014 and in the first half of 2013 to LHV Bank have been disclosed in Statement of transaction and commission fees. 13

Statement of transaction and commission fees Commissions for the I half year of 2014 Number of transactions Volume of transactions Transaction an commission fees paid % of total fees AS Swedbank 32 1 811 640 17 722 9% EFG-Hermes MENA Securities Ltd. 176 48 815 803 145 224 72% Morgan Stanley 26 7 516 884 37 609 19% Total 234 58 144 327 200 555 100% Commissions for I half year of 2013 Number of transactions Volume of transactions Transaction an commission fees paid % of total fees AS Swedbank 19 811 018 13 248 18% EFG-Hermes MENA Securities Ltd. 113 12 870 618 46 557 63% Morgan Stanley 14 1 972 930 13 723 19% Total 146 15 654 566 73 528 100% 14

LHVPersian Gulf Fund I half year interim report 2014 Statement of the Fund's investments as at 30.06.2014 (in euros) Issuer/Name of the Equity Country of location ISIN-code Nominal value Currency Quantity Average acquisition cost in currency Total acquisition cost in EUR Market price per unit as at 30.06.2014 in currency* Market value EUR Share in the net value of the Fund s assets 1. Securities 16 900 021 21 373 442 93.23% Shares ¹ 38 436 535 39 373 263 75.56% Securities of the United Arab Emirates UAE 16 303 675 17 225 524 33.06% Air Arabia AEA003001012 1.00 AED 3 500 000 1.34 956 230 1.24 865 111 1.66% ARAMEX AEA002301017 1.00 AED 384 510 1.76 128 440 3.00 229 938 0.44% Dubai Financial Market AED000901010 1.00 AED 2 000 000 2.95 1 173 031 2.61 1 040 525 2.00% Dubai Islamic Bank AED000201015 1.00 AED 500 000 6.15 612 269 6.45 642 853 1.23% Emaar Properties AEE000301011 1.00 AED 2 250 000 7.48 3 346 211 8.41 3 771 902 7.24% Emirates NBD AEE000801010 1.00 AED 100 000 6.90 137 823 8.35 166 444 0.32% First Gulf Bank AEF000201010 1.00 AED 1 000 000 15.04 2 984 737 15.90 3 169 414 6.08% Ras Al Khaimah Ceramics AER000301013 1.00 AED 4 000 000 3.34 2 650 039 3.35 2 671 079 5.13% Union National Bank AEU000401015 1.00 AED 2 100 000 5.76 2 429 257 6.15 2 574 401 4.94% Depa AEDFXA0NFP81 0.40 USD 4 000 000 0.64 1 885 638 0.72 2 093 857 4.02% Securities of Bahrain issuers Bahrain 1 597 248 1 444 358 2.77% Aluminium Bahrain BH0006000044 0.10 BHD 1 500 000 0.49 1 454 979 0.44 1 293 455 2.48% Bahrain Telecommunications BH0060713458 0.10 BHD 210 000 0.34 142 269 0.37 150 903 0.29% Securities of Kuwaiti issuers Kuwait 3 834 151 3 957 459 7.59% Agility Public Warehousing KW0EQ0601041 0.10 KWD 1 500 000 0.76 2 925 257 0.79 3 078 722 5.91% Burgan Bank KW0EQ0100077 0.10 KWD 192 600 0.54 271 348 0.51 255 199 0.49% National Bank of Kuwait KW0EQ0100010 0.10 KWD 250 000 0.99 637 546 0.96 623 538 1.20% Securities of Omani issuers Oman 3 488 604 3 754 507 7.21% Bank Muscat SAOG OM0000002796 0.10 OMR 2 000 000 0.64 2 430 754 0.68 2 586 043 4.96% National Bank of Oman OM0000001483 0.10 OMR 124 987 0.31 77 582 0.35 83 657 0.16% Oman Telecom OM0000003026 0.10 OMR 350 000 1.49 980 268 1.63 1 084 807 2.08% ¹ Listed securities 15

LHVPersian Gulf Fund I half year interim report 2014 Issuer/Name of the Equity Country of location ISIN-code Nominal value Currency Quantity Average acquisition cost in currency Total acquisition cost in EUR Market price per unit as at 30.06.2014 in currency* Market value EUR Share in the net value of the Fund s assets Securities of Qatar issuers Qatar 13 212 857 12 991 415 24.93% Barwa Real Estate Co QA000A0KD6J5 10.00 QAR 273 000 33.74 1 839 488 35.50 1 949 059 3.74% Commercial Bank of Qatar QA0007227752 10.00 QAR 6 000 58.61 72 509 61.90 74 692 0.14% Doha Bank QA0006929770 10.00 QAR 225 000 62.34 2 806 491 54.20 2 452 538 4.71% Industries Qatar QSC QA000A0KD6K3 10.00 QAR 7 500 184.94 276 044 169.00 254 907 0.49% Qatar Insurance Company QA0006929838 10.00 QAR 70 000 57.12 799 507 80.00 1 126 217 2.16% Qatar Electricity Water QA0006929812 10.00 QAR 30 000 157.31 955 334 172.90 1 043 158 2.00% Qatar Fuel Company QA0001200771 10.00 QAR 28 152 190.59 1 101 741 208.30 1 179 322 2.26% Qatar National Bank QA0006929895 10.00 QAR 95 000 193.68 3 661 394 163.30 3 119 922 5.99% Qatar Navigation QA0007227695 10.00 QAR 2 000 61.18 25 978 86.90 34 953 0.07% Ooredoo QA0007227737 10.00 QAR 2 500 144.33 74 712 118.90 59 780 0.11% United Development Company QA000A0KD6M9 10.00 QAR 375 000 21.16 1 599 659 22.50 1 696 867 3.26% Fund shares 2 763 048 3 191 225 6.12% Equity funds 2 763 048 3 191 225 6.12% EFG-Hermes Saudi Arabia Equity Saudi Arabia XC000A1W4DX3 - SAR 1 214 450 11.54 2 763 048 13.46 3 191 225 6.12% Emitent Issuer Rating Rating Agency Quantity Underlying asset name Maturity date Market value EUR Share in the net value of the Fund s assets Derivatives 3 597 340 13.67% Forwards and futures (currency derivatives) 370 362 0.71% USD FX FUTURE EUR 15.09.2014 370 362 0.71% Warrants (rights for securities) 8 182 411 15.70% Dar Al Arkan Real Estate Development CERTIFICATE Citigroup 550 000 Dar Al Arkan Real Estate Development aktsia 03.11.2014 1 325 909 2.54% Fawaz Abdulaziz Alhokair CERTIFICATE Citigroup 32 500 Fawaz Abdulaziz Alhokair aktsia 08.09.2014 1 209 051 2.32% United Electronics CERTIFICATE Morgan Stanley 108 545 United Electronics aktsia 13.01.2016 2 591 740 4.97% Saudi Basic Industries CERTIFICATE Morgan Stanley 5 000 Saudi Basic Industries aktsia 01.10.2015 111 968 0.21% Samba Financial Group CERTIFICATE Morgan Stanley 250 000 Samba Financial Group aktsia 01.10.2015 1 932 987 3.71% Savola CERTIFICATE Morgan Stanley 75 000 Savola aktsia 03.09.2015 1 010 756 1.94% 16

LHVPersian Gulf Fund I half year interim report 2014 Issuer Type of deposit Country of location Rating Rating Agency Underlying asset name Interest Start date Maturity date Sum deposited 2. Deposits 1 319 689 2.53% Swedbank Demand Deposits Estonia A1 Moody s Investor Service EUR 819 792 0.06-0.10% 819 792 1.57% Swedbank Demand Deposits Estonia A1 Moody s Investor Service USD 682 809 499 897 0.96% 3. Other Assets 1 898 344 3.64% Outstanding dividends 14 640 0.03% Accrued Income 1 883 704 3.62% TOTAL ASSETS 54 335 294 104.28% Liabilities -2 227 886-4.28% FUND S ASSETS NET ASSET VALUE 52 107 408 100.00% * Unit s market value in currency includes accrued interest as at 31.12.2013 17

LHVPersian Gulf Fund I half year interim report 2014 Statement of the Fund's investments as at 31.12.2013 (in euros) Issuer/Name of the Equity Country of location ISIN-code Nominal value Currency Quantity Average acquisition cost in currency Total acquisition cost in EUR Market price per unit as at 31.12.2013 in currency Market value EUR Share in the net value of the Fund s assets 1. Securities 19 718 387 25 119 474 95.44% Equity ¹ 18 411 600 20 135 988 76.51% Securities of the United Arab Emirates UAE 8 128 751 9 704 246 36.87% Air Arabia AEA003001012 1.00 AED 3 000 000 1.29 793 403 1.55 918 882 3.49% Aldar Properties AEA002001013 1.00 AED 75 000 2.35 35 883 2.76 40 905 0.16% ARAMEX AEA002301017 1.00 AED 309 510 1.42 81 507 3.04 185 932 0.71% Dubai Financial Market AED000901010 1.00 AED 4 000 000 1.95 1 588 761 2.47 1 952 376 7.42% Emaar Properties Limited AEE000301011 1.00 AED 1 600 000 6.09 1 980 595 7.64 2 415 572 9.18% First Gulf Bank AEF000201010 1.00 AED 400 000 15.67 1 290 307 18.80 1 486 019 5.65% Ras Al Khaimah Ceramics AER000301013 1.00 AED 1 000 000 2.83 561 445 3.14 620 492 2.36% Union National Bank AEU000401015 1.00 AED 1 150 000 4.91 1 157 064 5.87 1 333 959 5.07% Depa AEDFXA0NFP81 0,40 USD 1 500 000 0.59 639 786 0.69 750 109 2.85% Securities of Bahraini issuers Bahrain 692 718 676 542 2.57% Aluminium Bahrain BH0006000044 0.10 BHD 555 040 0.49 550 449 0.52 561 024 2.13% Bahrain Telecommunications BH0060713458 0.10 BHD 200 000 0.36 142 269 0.30 115 518 0.44% Securities of Kuwaiti issuers Kuwait 1 041 777 994 013 3.78% Agility Public Warehousing KW0EQ0601041 0.10 KWD 400 000 0.70 743 467 0.69 712 074 2.71% Burgan Bank KW0EQ0100077 0.10 KWD 180 000 0.57 271 448 0.55 255 418 0.97% National Bank of Kuwait KW0EQ0100010 0.10 KWD 11 550 0.95 26 861 0.89 26 521 0.10% Securities of Omani issuers Oman 1 655 354 1 635 110 6.21% Bank Muscat SAOG OM0000002796 0.10 OMR 750 000 0.61 898 003 0.64 899 321 3.42% National Bank of Oman OM0000001483 0.10 OMR 113 625 0.34 77 582 0.32 68 981 0.26% Oman Telecom OM0000003026 0.10 OMR 235 000 1.47 679 768 1.50 666 808 2.53% Securities of Qatari issuers Qatar 6 892 999 7 126 077 27.08% Barwa Real Estate Co QA000A0KD6J5 10.00 QAR 150 000 27.46 839 454 29.80 891 006 3.39% Commercial Bank of Qatar QA0007227752 10.00 QAR 5 000 70.33 72 509 70.80 70 563 0.27% Doha Bank QA0006929770 10.00 QAR 65 000 53.51 712 233 58.20 754 066 2.87% Industries Qatar QSC QA000A0KD6K3 10.00 QAR 30 000 165.48 1 009 827 168.90 1 010 007 3.84% Qatar Insurance Company QA0006929838 10.00 QAR 30 000 58.77 353 979 66.50 397 664 1.51% ¹ Listed securities 18

LHVPersian Gulf Fund I half year interim report 2014 Issuer/Title of securities Country of location ISIN-code Nominal value Currency Quantity Average acquisition cost in currency Total acquisition cost in EUR Market price per unit as at 31.12.2013 in currency* Market value in EUR Share in the net value of the Fund s assets Qatar Electricity Water QA0006929812 10.00 QAR 16 000 157.30 515 408 181.90 580 131 2.20% Qatar Fuel Company QA0001200771 10.00 QAR 17 000 236.31 830 495 284.10 962 705 3.66% Qatar National Bank QA0006929895 10.00 QAR 42 500 175.05 1 517 787 172.00 1 457 104 5.54% Qatar Navigation QA0007227695 10.00 QAR 2 000 61.18 25 978 83.00 33 089 0.13% Ooredoo QA0007227737 10.00 QAR 2 500 144.33 74 712 137.20 68 370 0.26% United Development Company QA000A0KD6M9 10.00 QAR 200 000 22.84 940 618 22.61 901 372 3.42% Issuer/Title of securities Country of location ISIN-code Nominal value Currency Quantity Average acquisition cost in currency Total acquisition cost in EUR Market price per unit as at 31.12.2013 in currency* Market value in EUR Share in the net value of the Fund s assets Fund shares 1 306 787 1 386 146 5.27% Equity funds 1 306 787 1 386 146 5.27% EFG-Hermes Saudi Arabia Equity Saudi Arabia XC000A1W4DX3 - SAR 650 000 10.03 1 306 787 11.02 1 386 146 5.27% Issuer/Title of securities Issuer Rating Rating Agency Quantity Underlying asset Maturity date Market value in EUR Share in the net value of the Fund s assets Derivatives 3 597 340 13.67% Forward and futures contracts (currency derivatives) 56 181 0.21% EURO FX FUTURE EUR 17.03.2014 39 645 0.15% EURO FX FORWARD Nordea Pank Aa3 Moody s Investor Service EUR 20.06.2014 16 536 0.06% Warrants (purchase rights for securities) 3 541 159 13.46% Dar Al Arkan Real Estate Development CERTIFICATE Citigroup 400 000 Dar Al Arkan Real Estate Development aktsia 03.11.2014 762 413 2.90% Aldrees Petroleum CERTIFICATE Citigroup 6 500 Aldrees Petroleum aktsia 26.01.2015 56 600 0.22% Fawaz Abdulaziz Alhokair CERTIFICATE Citigroup 15 000 Fawaz Abdulaziz Alhokair aktsia 08.09.2014 403 460 1.53% United Electronics CERTIFICATE Morgan Stanley 60 000 United Electronics aktsia 16.01.2014 1 146 523 4.36% Saudi Basic Industries CERTIFICATE Morgan Stanley 5 000 Saudi Basic Industries aktsia 01.10.2015 107 880 0.41% Samba Financial Group CERTIFICATE Morgan Stanley 110 000 Samba Financial Group aktsia 01.10.2015 1 064 283 4.04% 19

LHVPersian Gulf Fund I half year interim report 2014 Issuer/Title of securities Deposit type Country of location Rating Rating agency Underlying asset Deposited amount Interest Market value EUR Share in the net value of the Fund s assets 2. Deposits 2 362 089 8.97% Swedbank Demand deposit Estonia A1 Moody s Investor Service EUR 1 103 375 0.06-0.10% 1 103 375 4.19% Swedbank Demand deposit Estonia A1 Moody s Investor Service USD 1 734 256 1 258 714 4.78% 3. Other assets 166 398 0.63% Dividend receivables 4 354 0.02% Accrued income 162 044 0.62% Total assets 27 647 961 105.05% Liabilities -1 329 236-5.05% FUND S ASSETS NET VALUE 26 318 725 100.00% * Unit s market value in currency includes accrued interest as at 31.12.2013 20