Fink House advisory results Q2

1. Advisory investment management
2016 Q2 results overview
“Simplicity is a great virtue
but it requires hard work to achieve it and education to appreciate it.
And to make matters worse: complexity sells better.”
Edsger W. Dijkstra

2. 2016 Q2 results overview
June 30th 2016
“Expert” medium risk model portfolio unit value
Main attributes
Investment strategy “Expert”
Risk levels Low, medium or high
Min investment 100K EUR
Advisory fee * Up to 1.5% p.a.
Success fee * Up to 20% (with HWM)
* or some combination of two fees
Risk level Return 2016 Q2 Volatility
Low
(25% equities)
Portfolio 2.5 % 5.7 %
Index 2.2 % 6.6 %
Medium
(50% equities)
Portfolio 2.9 % 11.2 %
Index 2.4 % 12,0 %
High
(75% equities)
Portfolio 2.9 % 16.3 %
Index 2.7 % 17,7 %
* - after 1.2 % annual advisory fee
After strong Q1 rise global equities barely advanced in the 2nd quarter.
European investors enjoyed positive equity return (+3%) almost solely
due to EUR depreciation. See major indices results (represented by ETFs)
in the table on the right.
Responding to market setup – strong price surge in Jan-Apr, excessive
optimism and other criteria – Fink House recommended to significantly
reduce equity exposure at the end of May. Thus our clients realized the
profit from Q1 rise and entered pretty volatile June (as it turned out)
with low risk profile. Outperformance was also helped by successful
instrument (ETF) picking on the bonds side.
We continue to support “bull market continues” thesis and recent events
gave one more reason to do so. Markets have recovered post-Brexit vote
losses in a matter of just several days. This again shows that there’s
overall healthy demand for global liquid investments.
Exchange-traded fund Return %
iShares MSCI World ETF 3.62 %
iShares MSCI Emerging Markets ETF 3.07 %
iShares EURO STOXX 50 ETF - 2.06 %
iShares Core S&P 500 ETF 4.97 %
iShares MSCI Eastern Europe Capped ETF - 0.08 %
iShares J. P. Morgan $ EM Bond EUR Hedged ETF 4.77 %
iShares Core Euro Government Bond ETF 2.15 %
db x-trackers II Global Sovereign EUR hedged ETF 2.46 %
Benchmark: 50%-db x-trackers MSCI World index ETF; 16,5%-iShares Euro Corporate Bond Large Cap ETF; 16,5%-Lyxor EuroMTS 3-5Y Investment grade Bond ETF; 12%-Dow Jones Credit
Suisse Hedge Fund Index; 5%-db x-trackers II EONIA ETF. From 2016.01.01: 50%-db x-trackers MSCI World index ETF; 16,5%-iShares Euro Corporate Bond Large Cap ETF; 16,5%-Lyxor
EuroMTS 3-5Y Investment grade Bond ETF; 12% - iShares J. P. Morgan $ EM Bond EUR Hedged UCITS DE ETF; 5%-db x-trackers II EONIA ETF
Note: The results reflect Fink House investment advice to clients as of closing price on the day of advice.
Fees and commissions: The result is shown after 1,2% management fee, but before trading commissions, which are moderate taking into account portfolio turnover. Depending on trading
platform, trading commissions are 0,1-0,3% of the amount traded.
Looking back: 2016 second quarter
Fink House model portfolio returns in 2016 Q2
Major world indices: ETF returns in 2016 Q2 (EUR)
Benchmark
“Expert”
medium risk
portfolio
95
100
105
110
115
120
Source: justetf.com

3. Advisory investment management.
Portfolio overview.
Portfolio regional breakdown (2016/06/30):
Asset breakdown (2016/06/30):
Return by periods (as of 2016/06/30):
Asset breakdown dynamics (till 2016/06/30)*:
Investments into equities, investment funds or other securities are both risky and present opportunity. Past returns do not guarantee future results.
Investment value can both rise and fall and investor can permanently lose a part of initial capital. This document is based on sources deemed reliable by Fink
House. Results can vary in each individual case, depending on how long the recommendation has been followed, weight in portfolio and broker’s execution.
Fink House is not liable for any direct or indirect losses incurred by investors. Detailed information about model portfolio is available upon request. This
document is neither a recommendation to by or sell particular securities nor an offer to follow the strategy outlined in it. Selection of suitable individual risk
level is a process that requires investment knowledge, experience as well as analysis of present financial situation and personal goals.
* From 2016.01.01 Fink House model portfolios include liquid investments only
and are separated from recommendations on alternative investments.
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
2015.01.02 2015.05.12 2015.09.19 2016.01.27 2016.06.05
Equities Bonds Alternatives Cash
Equities
35%
Cash
30%
Bonds
35%
30%
22%18%
13%
7%
3%
7%
Cash (30 %)
US equity (22 %)
Global emerging
markets bonds (18,5
%)
Emerging Europe
bonds (13,3 %)
Asia equity (6,6 %)
Europe equity (3,0 %)
Other (6,7 %)
0,60%
2,90%
5,30%
9,60%
18,70%
0,10%
2,40%
0,90% 1,10%
6,80%
1m. 3m. 6m. 12m. All
(since
2015.01.01)
Portfolio Index

4. Fink House - licensed financial advisory firm, Bank of Lithuania has approved is license on March 2nd 2015.
Fink House is providing these services: asset planning, investment advice, asset diversification and it’s monitoring, as well as consulting
on matters of corporate strategy and financing structure. We work with clients in Lithuania and focus on cost-effective instruments in
implementation of our investment ideas.
Striving to find most appropriate instruments, we broaden our list of business partners. We are indifferent and are interested in
relationship only as long as it serves the need of our clients. We delve deep into every client’s expectations and needs and after careful
selection recommend suitable third parties and their products.
Fink House is accountable to Bank of Lithuania, its activity is regularly monitored and is stipulated by law.
Vitalijus Šostak, Fink House investment strategist has 15 years experience in
investment management. Vitalijus’ led team of investment managers achieved
outstanding results both in Lithuania and on the international level.
Prior, Vitalijus worked 6 years at „SEB Asset Management“ and 7 years at „Finasta
Asset Management“ as Member of the Board and Head of Fund Management.
Vitalijus was a CFA (Certified Financial Analyst) ir FRM (Financial Risk Manager)
charterholder.
Education: Vilnius university faculty of economics, University of Mannheim
(Frankfurt, Germany) finance department.
Gintautas Levišauskas, Fink House Managing partner is active in financial advisory field
since 2005. Previously he was employed by financial group “Finasta” as investment
consultant and later wealth manager, working with HNWI accounts.
Expertise: investment ideas search, investment products analysis and adaptation for clients
needs; personal finance consulting; investment ideas structuring.
2014: founded “Fink House”.
Education: Vilnius university International business school, Klaipėda university.
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