The document summarizes the AFC Uzbekistan Fund (Non-US), a fund focused on investing in listed equities of companies in Uzbekistan and Kyrgyzstan. The fund returned +3.2% in July 2020, with its largest holdings in cement producer Qizilqum Cement appreciating 22.8% for the month. For the year-to-date period, the fund has returned -5.0%. As of July 2020, the fund was invested in 28 names across Uzbekistan (93.6%) and Kyrgyzstan (2.3%), with largest allocations to materials (59.2%) and industrials (14.6%).

1. AFC UZBEKISTAN FUND (NON-US) July 2020
Fund Category Uzbekistan Public Equities
Country Focus Uzbekistan/Kyrgyzstan
Subscriptions
Monthly at NAV (five
business days before
month end)
Redemptions
Monthly at NAV
90 days notice
Fund Manager Thomas Hugger
Chief Investment
Officer
Scott Osheroff
Investment
Manager
Asia Frontier Investments
Limited, Hong Kong
Fund Base
Currency
USD
Minimum
Investment
USD 10,000
Subsequent
Investments
USD 1,000
Management Fee 2% p.a. of NAV
Performance Fee
20% p.a. of NAV
appreciation with high
watermark
Fund Size USD 4.3 million
Fund Domicile Cayman Islands
Launch Date 29 March 2019
Custodian
Uzbekistan Central
Securities Depository
Auditor EY, Hong Kong
Administrator
Trident Fund Services,
Hong Kong
Legal Advisor Ogier, Hong Kong
Investment Objective
Achieve long-term capital appreciation by investing in listed equities of
companies that have their principal business activities in Uzbekistan and
Kyrgyzstan. The fund focuses primarily on investments in industrial,
manufacturing, financials and consumer related stocks.
Fund Manager Comment
The AFC Uzbekistan Fund (Non-US) Class F shares returned +3.2% in July with
a NAV of USD 1,038.57, bringing the return since inception (29th March 2019)
to +3.9%, and the Year to Date return to −5.0%.
Portfolio company performance
The fund’s portfolio companies showed broad performance during July, though
the standouts were cement producers. Due to the first nationwide quarantine,
initiated on 16th
March 2020, Uzbekistan customs increased the time to clear
goods at land borders where it took up to 28 days for imported cement to go
through. The issue has been resolved as it now only takes 2 to 3 days to clear
customs, but this bottleneck amid continued strong domestic demand led the
price of PC-400 bulk cement (the most common type of cement produced in
Uzbekistan) to rise from UZS 458,000 on 1st
January 2020 to UZS 800,000 on
30th June, a 74.67% increase. Qizilqum Cement (QZSM), the fund’s largest
holding at 33% of AUM, and the largest producer of PC-400 cement, saw its
share price appreciate by 22.8% during the month. This strong performance for
the month however was met with softness in some of the fund’s other large
holdings, merely due to low liquidity during the month, which impacted the
estimated July performance by −3.6%.
QZSM had is best quarter since we first visited Uzbekistan in May 2018. Second
quarter 2020 earnings per share were UZS 314.35, or a 103% increase year on
year. QZSM ended the month trading at a P/E of 2.48, P/B of 0.54 and an EV/ton
basis of USD 7.25 (this compares very favorably to the replacement cost of
capacity of USD 110 to USD 120/ton).
At the end of July 2020, the fund was invested in 28 names and held 4.1% in
cash. The markets with the largest asset allocation were Uzbekistan (93.6%) and
Kyrgyzstan (2.3%). The sectors with the largest allocation of assets were
materials (59.2%) and industrials (14.6%). The fund's estimated weighted
harmonic average trailing 12 months P/E ratio (only companies with profit) was
3.36x, the estimated weighted harmonic average P/B ratio was 0.69x and the
estimated weighted average portfolio dividend yield was 6.34%.
1,039
900
950
1,000
1,050
1,100
1,150
Fund Performance (Net)
Contact Information
Asia Frontier Capital Ltd.
www.asiafrontiercapital.com
Mr. Thomas Hugger
CEO, Asia Frontier Investments Limited
Tel: +852 3904 1015, Fax: +852 3904 1017
th@asiafrontiercapital.com
Mr. Peter de Vries
Marketing Director,
Asia Frontier Investments Limited
Tel: +852 3904 1079, Fax: +852 3904 1017
pdv@asiafrontiercapital.com
Registered Office:
c/o Intertrust Corporate Services (Cayman)
Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005, Cayman Islands
Hong Kong Office:
Asia Frontier Investments Limited
905, 9th
Floor, Loon Kee Building
267-275 Des Voeux Road Central
Hong Kong

2. AFC UZBEKISTAN FUND (NON-US) July 2020
Monthly Performances AFC Uzbekistan Fund (Non-US) Class F
NAV as of 31st July 2020
Class F
NAV 1,038.57
Since Inception +3.86%
Inception Date 29/03/2019
Security Numbers (for the “Lead Series”)
Class F
ISIN KYG0133A2093
CUSIP G0133A 209
Bloomberg AFCUZFS KY
Valoren CH047075891
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2019 USD - - - +4.50% -0.10% +1.87% +1.15% -1.85% +0.06% +0.72% +1.13% +1.61% +9.33%
2020 USD -2.99% +0.78% -7.43% -3.06% +3.32% +1.49% +3.25% -5.01%
59.2%
14.6%
10.8% 10.4%
0.7% 0.2%
4.1%
0%
10%
20%
30%
40%
50%
60% Sector Allocation 93.6%
2.3% 4.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% Country Allocation
DISCLAIMER
Investments in equities in Uzbeistan are subject to market risk, idiosyncratic risk, liquidity risk, and currency exchange rate risk. The fund may use financial derivative
instruments as a part of the investment process. This document does not constitute an offer to sell, or a solicitation of an offer to buy shares in AFC Uzbekistan Fund. We will
not make such offer or solicitation prior to the delivery of an offering memorandum, the operating agreement or articles of association, a subscription booklet, and other
materials relating to the matters herein. Before making an investment decision, we advise potential investors to read these materials carefully and to consult with their tax,
legal, and financial advisors. The materials have not been reviewed by the regulatory authority of any jurisdiction. Investment is open only to accredited investors as defined
by the relevant legal jurisdiction of residence and/or nationality. We have compiled this information from sources we believe to be reliable, but we cannot guarantee its
accuracy. We present our opinions without warranty. Past performance is no guarantee of future results. © 2020 Asia Frontier Capital Ltd. All rights reserved.
* The representative of the fund in Switzerland is ACOLIN Fund Services AG, succursale Geneve, 6 Cours de Rive, 1204 Geneva. NPB Neue Privat Bank AG, Limmatquai 1 / am
Bellevue, CH – 8024 Zürich, Switzerland is the Swiss Paying Agent. In Switzerland, shares shall be distributed exclusively to qualified investors. The fund offering documents,
articles of association and audited financial statements can be obtained free of charge from the Representative. The place of performance with respect to shares distributed in or
from Switzerland is the registered office of the Representative.
* AFC Uzbekistan Fund (Non-US) is registered for sale to investors in Switzerland (qualified investors), Hong Kong (professional investors), and Singapore (accredited investors).
* Asia Frontier Capital manages funds for both US investors and non-US investors. This fund is for non-US investors only. If you are a US investor, please refer to the fact sheet
for the fund called “AFC Uzbekistan Fund”. By accessing information contained herein, users are deemed to be representing and warranting that they are either a Hong Kong
Professional Investor or are observing the applicable laws and regulations of their relevant jurisdictions.