QUANTIS Investment Management

Introductory presentation
Akos Sarandi Chief Executive Officer 31.01.2013.

Mission of QUANTIS

we safeguard the investments of BROKERNET clients, and assure them outstanding returns

The main driver behind the establishment of QUANTIS Investment Management Zrt. in 2008 was to create a professional team within the BROKERNET Group who are able to expertly select funds and pick the best products to be included in our unitlinked portfolios.

Mission of QUANTIS

QUANTIS employs a
multi-manager approach that is common in developed markets but unique not only in Hungary, but even in the whole Eastern European region.

Our aim is to become the largest independent fund manager in

Hungary measured by assets under management, a completely realistic target considering the fact that, with our current performance, we already rank 2nd among independent fund managers.

Owner structure of QUANTIS

30% minority share

LGT Group is an international wealth & asset management group domiciled in Vaduz, Liechtenstein. The company has been owned for eighty years by the Princely House of Liechtenstein. With around 1,700 employees, LGT Group is represented in more than 20 locations in Europe, Asia and the Middle East. Detailed introduction here.

70% majority share

BROKERNET Group is one of Europes leading, independent financial consultancies. Its strong backbone consists of closely cooperating member firms that assist clients in exploiting the synergies among member firms to the greatest extent possible in four interrelated business lines: investment - insurance credit - real estate. Detailed introduction here.

We create value

Assets under management of QUANTIS in EUR

QUARTERLY AUM EUR

362 mm 368 mm
352 mm

400 mm 350 mm 318 mm 300 mm

322 mm 291 mm 290 mm

285 mm 286 mm 251 mm

303 mm 308 mm 307 mm

250 mm 200 mm 150 mm 100 mm 58 mm 50 mm mm

198 mm

134 mm

Source: QUANTIS Interval: since inception till 31.12.2012. Figures are in EUR, represented on a quarterly basis

We create value

Assets under QUARTERLY management of QUANTIS in HUF AUM HUF

120 bn

101 bn 100 bn 88 bn 82 bn 80 bn 68 bn
60 bn

98 bn

93 bn
85 bn

95 bn

90 bn

87 bn

87 bn

90 bn

76 bn

54 bn

40 bn

37 bn

20 bn

18 bn

bn

Source: QUANTIS Interval: since inception till 31.12.2012. Figures are in HUF, represented on a quarterly basis

Professional management of QUANTIS

kos Srndi
Chief Executive Officer 17 years experience Akos Sarandi graduated from the College of Commerce, Catering and Tourism as an Economist in 1999. He took He took the Budapest Stock Exchange qualification exam in 1996. He has been a supporting member of the Chartered Financial Analyst Hungary since 2003. He started his career as a relationship manager and OTC/ Listed Equity Trader at First German Securities Ltd in 1995. Between 1997 and 2003, Mr. Sarandi worked at ABN AMRO Hoare Govett Ltd as Head of Sales and Trading, and also member of the board. Between 2003 and 2008 he worked at Credit Suisse Asset Management Hungary Zrt. as Head of Distribution responsible for Hungary, Romania (Member of the Board). In 2008 he has built up QUANTIS Investment Management Zrt. from scratch as Chief Executive Officer, which became the 2nd largest independent asset management company. In 2011 Mr. Sarandi started a minority stake sales process from QUANTIS. As a result recently, in November 2012 the Princely Family of Lichtenstein has acquired a 30% stake from QUANTIS through their own asset management company LGT Capital Management AG.

Attila Rebk, CFA, PRM, CAIA

Chief Investment Officer 17 years experience

Economist Attila Rebk spent more than three years as Chief Investment Officer of the Budapest office of Credit Suisse Asset Management. In addition to his EFFAS (European Federation of Financial Analysts Societies) qualification, Mr. Rebk also holds the distinctive CFA (Chartered Financial Analyst) rating. He was the first in Hungary to earn the PRM (Professional Risk Manager) degree, and one of the first experts to be awarded the CAIA (Chartered Alternative Investment Analyst) qualification, the only professional qualification focusing exclusively on alternative investments. In 2008 he participated in the foundation of QUANTIS Investment Management Zrt. from scratch, where he, as the Chief Investment Officer launched all the 11 mutual funds of QUANTIS.

Citywire Magazine

We got known in London in 2009

Citywire Magazine

We publish studies in world-wide read investment magazines

Citywire Magazine

and provide market commentaries

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QUANTIS Investment Philosophy

Multi-Manager solution and Q-SELECT

Multi-Manager solution

Functi on

Fund selection

Aim

Finding the best portfolio managers of a given asset class from the available international investment fund universe

Result

Fund specific risk has been decreased, while performance has been significantly increased

The main idea of the multi-manager approach applied by us is that our fund management company does not perform individual stock selection, but instead we primarily focus on investment fund selection on finding those portfolio managers who will expectedly show outstanding performance in the future.

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Q-SELECT fund selection model

Only the funds of portfolio managers selected through the Q-SELECT process can be included in the portfolios of our investment fund, which are all "fund of funds" arrangements.

B
Q-SELECT fund selection model is based

30% on quantitative and 70% on qualitative factors.

The majority of the funds performing the best in the Q-SELECT Scoring System is not available for private investors in public distribution in the Eastern European region.

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Q-SELECT fund selection model

I. Quantitative factors (30%)
Based on softwares

Defining key strategy (investment region, benchmark, etc) Further filters to focus only on the most reliable funds and fund managers

II. Qualitative factors (70%)

Based on the RFI
Qualitative screening is based on a detailed questionnaire (Request For
Information RFI), which addresses questions to managers about:

III. In-depth interviews

Face-to-face meetings with the 8-10 fund managers of the best scorings

Adjustment of the scorings of the top managers, Selecting 4-6 funds to be added to our portfolio.
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Q-SELECT Scoring System

Based on the RFI, we quantify the answers in the Q-SELECT Scoring

System, in which the following group of factors are taken into account with particular weights:

1. Investment professionals 2. Processes 3. Portfolio risk 4. Performance related risk/reward

5. Organisation
6. Operations 7. Subjective adjustment

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Q-SELECT Scoring System

Example for the evaluation of an RFI

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Q-SELECT fund selection model

1. Defining strategy (benchmark, etc.)

2. Initial filters (to narrow the universe)

3. Sreening the most reliable fund managers through the RFI

5. Preparing buylist 6. Portfolio construction

7. Constant monitoring
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Q-SELECT fund selection model

Portfolio construction

Further analysis applied during the portfolio construction

Correclation among the funds of the buy list Style analysis

large cap vs. small cap value vs. growth bull capture vs. bear capture

Holding-based analysis Predicted alpha

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Q-SELECT fund selection model

Constant monitoring

Consistent performance is ensured by a constant monitoring process, once portfolio construction is finished. When certain events are detected, the concerned constituents weight is cut or it is liquidated immediately. Key triggers:

Continuous / unexpected underperformance, Exit of the leading portfolio manager leaves from the fund,

Deviation from the original investment policy,

Change in the ownership structure, Deviation from the pre-defined tracking error, Change in the analyst team Operational risks.
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Q-SELECT is in progress

B
Carmignac - Paris Aberdeen London

Neptune - London M&G - London

GAM - Zurich

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Q-SELECT is in progress

B
Jupiter - London Goldman Sachs - Frankfurt Pictet - London

F&C - London

State Street - Paris

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Product Structure of QUANTIS

Product Structure of QUANTIS

Fund Share class A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF N EUR N USD N RON A N HUF A N HUF A Ccy USD HUF EUR USD RON USD HUF EUR USD RON USD HUF EUR USD RON EUR HUF EUR USD RON USD HUF EUR USD RON USD HUF EUR USD RON USD HUF EUR USD RON EUR HUF EUR USD RON HUF HUF HUF HUF HUF ISIN HU0000707609 HU0000707773 HU0000709720 HU0000709712 HU0000710074 HU0000707617 HU0000707765 HU0000709746 HU0000709738 HU0000710082 HU0000707583 HU0000707781 HU0000709654 HU0000709662 HU0000710033 HU0000707575 HU0000707799 HU0000709670 HU0000709688 HU0000710090 HU0000707591 HU0000707757 HU0000709621 HU0000709613 HU0000710009 HU0000707849 HU0000707831 HU0000709647 HU0000709639 HU0000710025 HU0000708102 HU0000708110 HU0000709704 HU0000709696 HU0000710058 HU0000710140 HU0000707823 HU0000709779 HU0000709787 HU0000710017 HU0000708136 HU0000708144 HU0000707625 HU0000707807 HU0000711106 Start date 2009.01.27 2009.04.28 2011.01.20 2011.01.20 2011.07.18 2009.01.27 2009.04.28 2011.01.20 2011.01.20 2011.07.18 2009.02.05 2009.04.24 2011.01.18 2011.01.18 2011.07.18 2009.02.05 2009.04.27 2011.01.19 2011.01.19 2011.07.18 2009.02.05 2009.04.27 2011.01.18 2011.01.18 2011.07.18 2009.03.30 2009.04.27 2011.01.18 2011.01.18 2011.07.18 2009.09.08 2009.10.15 2011.01.19 2011.01.19 2011.07.18 2009.03.30 2009.04.27 2011.01.19 2011.01.19 2011.07.18 2009.09.08 2009.10.15 2009.01.27 2009.04.23 2011.12.08 Bloomberg tickers QUINEQU HB QUINENH HB QUINENE HB QUINENU HB QUCHEQU HB QUCHENH HB QUCHENE HB QUCHENU HB QUSAUEQ HB QUSAUNH HB QUSAUNE HB QUSAUNU HB QUEEEQU HB QUEEENH HB QUEEENE HB QUEEENU HB QUGUSDM HB QUGUSNH HB QUGUSNE HB QUGUSNU HB QUNAUEF HB QUNAUNH HB QUNAUNE HB QUNAUNU HB QUAGUDM HB QUAGUNH HB QUAGUNE HB QUAGUNU HB QUGTUEF HB QUGTUNH HB QUGTUNE HB QUGTUNU HB QUAGRHB HB QUAGRNH HB QUHUFLQ HB QUHUFNH HB

QUANTIS India USD Equity Fund of Funds

QUANTIS China USD Equity Fund of Funds

QUANTIS South-America USD Equity Fund of Funds

QUANTIS Eastern-Europe EUR Equity Fund of Funds

QUANTIS Global USD Developed Markets Equity Fund of Funds

QUANTIS North-America USD Equity Fund of Funds

QUANTIS Global USD Emerging Markets Equity Fund of Funds

QUANTIS Russia EUR Equity Fund of Funds

QUANTIS Growth HUF Balanced Fund of Funds QUANTIS HUF Liquidity Fund Granit Bank Deposit Fund

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QUANTIS China USD Equity FoF

Current composition
Active funds:

B Robeco Chinese Equities D USD Acc

First State China Focus GAM Star China Equity USD Acc BlackRock Global Funds - China I USD

Allianz RCM China Fund A USD

ETF:

Deutsche Bank FTSE/XIN CH Tracker

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS India USD Equity FoF

Current composition
Active funds:

PineBridge India Equity A Franklin Templeton India A Matthews Asia Funds India A GBP Hdg Comgest Growth India

Goldman Sachs India Fund

ETF:

Deutsche Bank S&P Nifty Tracker

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS South-America USD Equity FoF

Current composition
Active funds:

Aberdeen Latin American Equity A Acc First State Latin America A Amundi Fds Eq Latin America AU-C T. Rowe Price Latin American Equity

Franklin Templeton Latin America A

ETF:

Deutsche Bank MSCI Latin America Tracker

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS Eastern-Europe EUR Equity FoF

Current composition
Active funds:

Nevsky Eastern European USD East Capital LUX Eastern Eurp A EUR Barings Eastern Europe A USD Inc T. Rowe Price EM Europe Equity A

Danske Eastern Europe I Cap

ETF:

iShares MSCI East Europe 10/40

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS Global USD Developed Markets Equity FoF

Current composition
Active funds:

B M&G Dividend

Aberdeen World Equity A Acc

Calamos Global Equity Class I USD Acc Jupiter Global Managed Inc Sands Capital Global Growth

ETF:

Deutsche Bank MSCI World Tracker

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS Global USD Emerging Markets Equity FoF

Current composition
Active funds:

ETF:

Reyl GF Emerging Markets Equities B

B Aberdeen Global Emerging Markets Eq A2

M&G Global Emerging Markets A EUR Neptune Emerging Markets A Acc Comgest Growth Emerging Markets Acc Aberdeen Global Emerging Markets SC D2

iShares MSCI EM Tracker (DE) (EUR)

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS North-America USD Equity FoF

Current composition
Active funds:

ETF:

Aberdeen American Equity A

B Allianz RCM US Equity A

Jupiter North American Income Inc M&G American A Acc

SPDR S&P 500 Tracker iShares Russel 2000 Growth Index Utilities Select Sector SPDR Fund (USD) Consumer Staples Select Sector SPDR Fund (USD)

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS Russia EUR Equity FoF

Current composition
Active funds:

East Capital LUX Russian A EUR Pictet-Russian Equities EUR Julius Baer Multistock - Russia Fund EUR Aberdeen Global Russian Equity A2

Neptune Russia & Greater Russia A

ETF:

DB MSCI Russia Capped Index ETF

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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QUANTIS Growth HUF Balanced FoF

Wide range of asset classes in an actively managed portfolio

Treasury bills Government bonds (EM and Dev. markets) Inflation-linked bonds (USA) Investment grade corporate bonds (USA) High-yield corporate bonds (global) Convertible bonds (global) Equities (EM and developed markets) Commodities (energy, precious metals) Currency trading HUF currency overlay management

Sales points

Active portfolio management Modest volatility, relatively safe investment Highly diversified portfolio Rigorous risk-monitoring process Long-only fund with absolute return bias Wide range of asset classes in the portfolio Portfolio construction based on the proprietary quantitative model of QUANTIS
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QUANTIS Growth HUF Balanced FoF

1 month 3 months 6 months 12 months 24 months 36 months 2009.09.30. 2011 2010 2009

Quantis Nvekedsi Benchmark Alpha

0,60% 1,44% -0,84%

1,44% 2,67% -1,23%

5,48% 8,84% -3,36%

13,00% 15,98% -2,99%

7,34% 9,04% -1,70%

9,24% 10,85% -1,61%

8,62% 10,99% -2,37%

1,99% 2,54% -0,55%

12,28% 13,56% -1,27%

1,13% 3,96% -2,83%

Source: Bloomberg, QUANTIS

2009.09.30 2012.12.31

Benchmark

Quantis Nvekedsi

Return (annual) Alpha (raw - annual) Alpha (Jensen annual) Risk free (HUF - annual) Stdev (annual) Tracking Error (annual) Beta (annual) Downside deviation (annual) Sharpe (annual) Treynor (annual) Sortino (annual) Information ratio (annual) Fama return decomposition Risk free Benchmark Active Beta Security selection

12,41%

9,48% -2,93% 4,32%

Asset allocation 2012 YE

Inflation linked bonds 13,04% EM govies 14,82% Cash 0,20%

6,1549% 9,30% 1,0000 5,75% 0,6730 0,0626 1,0888 5,58% 7,21% 0,3794 3,09% 0,5963 0,0878 1,0780 -0,4057

Hungarian T-bills 41,68%

Investment grade bonds 10,79% Gold 6,41% Developed equities 13,06%

6,1549% 6,2564% -3,8828% 0,9562%

Source: Bloomberg, QUANTIS

QUANTIS HUF Liquidity Fund

Current composition

Discount Treasury Bill Hungarian Government Bonds

Duration ~ 1 month

Above compositions reflect a delayed status as real-time compositions and weights are confidential information, that is the property of QUANTIS Investment Management Zrt.

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Sales support

Educational trainings Factsheets

Graphs, comparisons Ad-hoc analysis

Market commentaries PR functions

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NAV publication

Monthly Factsheets

Daily NAV publication: on our website and in Vilaggazdasg, a popular economic newspaper
Monthly Factsheet Vilaggazdasg

www.quantis.hu

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Disclaimer

The information contained herein is the intellectual property of QUANTIS Investment Management Zrt. and the BROKERNET Group. Any copying, duplication or reproduction in print or electronic media of this information or any part thereof is subject to the owner's approval. The past performance of investment funds does not necessarily predict their future performance. The price and return on investment units may move up or down, and accordingly, the amount paid upon redemption of the same may be higher or lower than the original investment. All information in this document is for information purposes only and does not constitute an investment recommendation, invitation to bid or investment advice; furthermore, this document is not intended to substitute a thorough understanding of the combined Prospectus and management policy of the funds managed by the fund manager. The fund manager accepts no responsibility for investment decisions made on the basis of the announcement and the consequences thereof. Prior to making any investment decision, we suggest that the investor read the combined Prospectus and management policy available at the fund manager's headquarters and at the www.quantis.hu website. The return realised on the purchase and redemption of investment units is subject to taxation. We suggest that the investor study the applicable tax laws prior to making any investment decision.

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QUANTIS Investment Management Zrt. / 1036 Budapest, Arpad fejedelem utja 79. / tel.: +36 1 413 2280 / fax: +36 1 413 2268 / e-mail: info@quantis.hu