Monthly report Shânti Convertibles Asia January 2011 part P en USD et EUR en cours

www.shanti-am.com August 31, 2011 ObjectiveShânti Convertibles Asia primarily invests in convertible performance of the region's equity indices on a 3-year bonds in Asia, excluding Japan. The fund aims to track the horizon, at about half as much volatility. Performances & Markets Shânti Convertibles Asia (P Class Share in USD) was down The names with higher yields fared less poorly, quite by 5.12% in August. logically. These included Fufeng which makes food additives in China, Rolta and Firstsource in the Indian IT industry, and Over the month, the MSCA Asia ex-Japan lost 8.93% while Bakrieland in the Indonesian real-estate sector. credit fell steeply. The iTraxx Asia ex-Japan index shot up from 117 to about 148. In general, the steep fall in convertible bonds is not justified in our view. Their valuations now reflect the falls in the The Asian markets followed the developed markets underlying stocks, the higher credit risk and the tighter downwards, while monetary tightening (especially in India liquidity situation (which should be temporary), but not the and China) weighed on credit. higher volatility. We do not have a crystal ball, but we think In this context, all the cyclical stocks suffered (Vedanta and that present valuations offer a certain margin of error. Essar Energy among the commodity stocks, Agile and Kaisa in the Chinese real estate sector, AU Optronics and Epistar in technology). Primary Market There was just ...