Published article in newspaper AGEFI Luxembourg, section: Finance/ Fonds,March 2007

Meeting with Michel FRANCK (see photo) and Derek CHAMBERS, Cornhill ManagementInternational S.A.

Why to Invest in the Eastern Europe Economy?

What are your respective track records?

Michel Franck (see photo), managing Director Institutional Relationships SFM:I have joined Cornhill Management in August 2006. Previously, I worked as Trading RoomDirector and was in charge of institutional relationships at HSBC DewaayLuxembourg, for 10 years. I have more than 20 years of experience onLuxembourg financial market. I particularly worked for the Bourse deLuxembourg, the Kredietbank Luxembourg and the Crédit Suisse.

Derek Chambers, co-founder and CEO of SFM: I have more than 33 years ofexperience in international finance, of which 20 are in investment funds field.I created and developed investment funds for Capital House Jersey, Abbey Life,Eagle Star (Threadneedle Funds) and Aetna International (Aberdeen Trust).I obtained a first European UCITS passport from EEC on 6 January1989. I also developed the concept of European Master Fund as well as a jointventure project for the distribution of the Eagle Star Funds in Europe, whichleaded me to the concept of multi-management that I developed with SFMin 1997.

Can you briefly present your group?

Founded in 1997 with the assistance of RBC Dexia, Unigestion, BNP PPB andAIG, SFM GROUP INTERNATIONAL, with its Head Office in Luxembourg since 2006, isa company totally independent, which has offices in Czech Republic, Slovakia,Croatia, Poland, Slovenia and Cyprus, and which employs about 50 people. SFMconceives, develops and promotes different financial products for retail (over100 000 customers) and institutional customers.

What’s the total of your management assets?

The total of management assets, all products together, is more than300 000 000 US dollars. We always try to offer innovating products, unique andperforming.

Let’s talk about your flagship product

Our flagship product, WIOF (World Investment Opportunity Funds) is anumbrella fund with 34 sub-funds, based on multi-management with 12 differentmanagers: Vontobel, Brandes, AIG, Parex, KD, Nort Europe Private Bank, LaikiInvestment, Union Investment, Atalanta Sosnoff, CCR Actions, Raiffeisen Bank andC-Quadrat. The different managers are selected according to their performanceand experience; they are constantly evaluated by our American partnerFSAssociates. We think that a manager cannot be the best on all the markets andwe, therefore, select the bests in their specialty to obtain an exceptionalperformance with a controlled volatility. WIOF is a Luxembourg Law SICAV, UCITSIII, quoted on the Luxembourg Stock Exchange, with a daily NAV. WIOF offers toits customers, unique products such as: WIOF Greece-Cyprus Opportunities Fund,WIOF Adriatic Balkan Opportunities Fund, WIOF Baltic Opportunities Fund, WIOFPolish Opportunities Fund, WIOF Russian Opportunities Fund, WIOF CIS Bond and,very soon, WIOF Central Asian Opportunities Fund, investing mainly in Kazakhstanand its neighboring countries. All these funds are available in 9 currencies,of which Euro and U.S. Dollar of course.

Who are your partners?

Our partners for the administrative field are KBL, KTL and EFA; theManagement Company is JULIUS BAER Luxembourg.

Why to invest in the Eastern Europe’s economy?

For many reasons that are:

  • a GDP in constant increase, clearly above the European average (Latonia, Cyprus, Poland, Adriatic and Balkans)
  • a weak unemployment percentage
  • a taxation rate very attractive for companies
  • a privatization program, numerous mergers and acquisitions still to come
  • a political stability; these countries are or will become EU members
  • a very strong growth
  • a qualified and cheap labor.

Let’s also notice that the Stock Exchanges of Cyprus and Athena havemerged and negotiate with the Romania Stock Exchange to create a big Adriaticmarket.

Which are the new products of funds that have demonstrated their ability?

We can speak about another product completely innovating: CEEREF (CentralEastern Europe Real Estate Funds), real estate fund of which 4 sub-funds areopen, that are Croatia, Romania, Slovenia and Diversified. The offer will becompleted in the 2007 curse, with eight new compartments that are CzechRepublic, Slovakia, United Kingdom, etc. At the opposite of WIOF, CEEREF iscalculated quarterly and does not assure a comparable liquidity. It is ainvestment at a more long term (minimum 5 years) and penalties can be chargedin case of anticipated reimbursement. We are convinced that the real estatemarkets, especially in Eastern Europe, offer an opportunity to seize by anyinvestor. We also offer, to our customers, securitization funds with variedunderlying funds as: a golf network in Cyprus, a chain of luxury hotels inGreece, etc. To complete our offer, we can create, upon request, funds cut outon size, for a certain amount of investment.

What are your objectives for this year?

The SFM’s objectives for 2007 are to bring the management assets to abouta thousand million euros in focusing on institutional customers from BENELUX,Switzerland, France, United Kingdom, South East Asia and Middle East. To reachour objectives, we expect our unique and performing products to have anexceptional year 2007.