Indus PacificChoice Asia Fund Presentation - Morgan Stanley...

Indus PacifiChoice Asia Fund

FOR INSTITUTIONAL CLIENTS / DISTRIBUTORS ONLY. Confidential and not for onward distribution.

January 2011

Applications for shares in any sub-fund of the FundLogic Alternatives plc (the “Fund”) should not be made without first consulting the Fund’s current Prospectus, Simplified Prospectus, Annual Report and Semi-Annual Report (“Offering Documents”), or other documents available in your local jurisdiction which are available free of charge from Morgan Stanley & Co International plc. 2

Contents

Executive Summary

I: Key Features of the Indus Long-Short Asia Pacific Strategy

II: The Indus PacifiChoice Asia Fund

Appendix 1: Performance of Other Indus Portfolios

Appendix 2:Firm Organizational Chart and Biographies


Executive Summary


Executive Summary

Indus PacifiChoice Asia Fund: a Sub Fund of FundLogic Alternatives Plc, an Irish UCITS III OEIC (Open Ended Investment Company) provides investors an opportunity to access a Long-Short strategy managed by Indus within a UCITS regulatory framework assets under management to comply with UCITS diversification/concentration limits

Indus Capital Partners LLC: Founded in 2000 by former Soros Fund Management partners Among the largest dedicated international fund management firms Assets under Management of $4.5 billion as of 31 December, 2010 82 people worldwide. Headquartered in New York with offices in Tokyo, Hong Kong, London, Singapore and San Francisco. Trading and

operations based in Connecticut Registered investment adviser. Indus Capital Partners, LLC is registered with the SEC in the United States. Affiliate offices are regulated

by the Financial Services Authority in the U.K., the Securities and Futures Commission in Hong Kong and the Financial Services Agency in Japan.

FundLogic:

FundLogic Alternatives plc has been set up by Morgan Stanley to enable investors to access investment strategies offered by Alternative Managers in a UCITS-compliant format Morgan Stanley is the Promoter and Risk Manager to the OEIC Robust operating framework


Key Features of the Indus Long-Short Asia Strategy


Key Features

• The Opportunity

• Asia Pacific is among the fastest growing economic regions in the world

• GDP in Asia expected to grow 3x faster in real terms than developed world regions *

• Asia’s growing middle class is now over 500 million people *

• Asian nations have low debt levels, higher savings and a large portion of the worlds FX reserves; giving governments the flexibility to grow their economies

• Macro pessimism on Japan has led to few hedge funds investing in the market; providing alpha opportunities for Indus’ Japan experts

• The Team at Indus Capital Partners LLC

• Co-Portfolio Managers – Sheldon Kasowitz and Ethan Devine – 29 years of combined experience investing in Asian equities

• Supported by a team of 21 Analysts mostly on the ground in Tokyo, Hong Kong and Singapore

• Indus’ Background

• Founded in 2000 by former Soros Fund Management Partners

• Among the largest dedicated non-US hedge fund management firms – approximately $4.5 billion under management and 7 offices around the world

• Substantial alpha generation across all Indus’ Asia focused portfolios since inception

* Figures are from Deutsche Bank Research, Emerging Asia’s Middle Class, August 2009


Indus Philosophy

• Indus Capital Partners LLC believes that it’s process can yield positive returns in difficult markets, and strongly positive returns in stock-friendly markets, yielding an attractive return profile over a given cycle

• Stock picking over time is a reliable way to generate positive returns

• Asian markets are inherently inefficient and are therefore an excellent backdrop for long/short strategies

• A "robust portfolio" constructed from the bottom up, as opposed to one based on top-down "themes," results in lower volatility and better returns over time

• Risk management involves both systems and culture

• Periodically, a portfolio should be positioned to take advantage of market directionality

• A geographical spread of investment professionals, both within and outside of the invested markets, allows for both intensive research and a dispassionate approach to investing


Opportunity in Asia: Scale, Growth and Quality

• China, India and Indonesia represented 25% of the world’s incremental GDP growth between 2004 and 2009 and maintained healthy growth during global financial crisis

• Asia’s middle class is set to grow from 19% to 30% of the population between 2010 – 2015 driving consumption across key sectors

• Today Japan’s export market is driven by demand from its Asian neighbors. In 2010 China overtook the US as Japan’s largest export market

• Undervalued and appreciating currencies

• Asia accounts for 25% of world GDP but less than 10% of stock market cap

• Over 1000 companies which trade more than $10mln per day (compared to 1998 when there were only 200)

05

101520253035

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010E 2013E

Share of world's GDP (% )

Asia (excl. Japan), PPP terms Asia (excl. Japan), market exchange rate

Asia’s GDP as a percentage of global GDP 1980-2015

Source:CSO, IMF - World Economic Outlook - Oct-09, CLSA Asia-Pacific Markets Figures on pages 8-10 relating to Asia’s capitalization, liquidity and growth are from CLSA Asia Pacific Markets, Moving up the J-curves, June 2010

Nominal GDP Growth

Source:CSO, IMF - World Economic Outlook - Oct-09, CLSA Asia-Pacific Markets


Opportunity in Asia: Structurally faster growth driving consumption

• While there has been growth in Asia over the last 20 years, this growth is set to continue; China’s per capita GDP is 8% of the USA’s: and India is at 2%

• Structural-growth support in place:

• Urbanization

• Shift from agriculture to manufacturing

• Shift from export oriented to domestic consumption

• Investment in education

• High levels of savings and investment

• Property rights and economic liberalization

• Increasingly urban populations and rising incomes has seen the consumption delta shift towards the east

Source:CSO, IMF - World Economic Outlook - Oct-09, CLSA Asia-Pacific Markets, Moving up the J-curves, June 2010

Consumption delta moving east


The big shift: Asia’s median-income shift and middle class growth

• Discretionary spending kicks in at US$3,000 per capita (US$10,000 per household) disposable income; China is near this tipping point; moving from about US$2,000 per-capita disposable income in 2009 to US$2,700 by 2014

• As median income moves close to the discretionary-spending thresh-hold, the middle class expands significantly

• With the Chinese middle class rising from 27% to 44% of the population over the next five years the absolute number of consumers driving growth will increase significantly

Source: CSLA Asia Pacific Markets, Moving up the J-curves, June 2010


PacifiChoice Strategy at a Glance

• The Mandate: Long/short equity including Asia, Japan and Australia focused on larger and more liquid stocks

• The Opportunity: 5,000 stocks in this space offers ample opportunities for finding inefficiencies

• The Team at Indus Capital Partners LLC: Sheldon Kasowitz and Ethan Devine Co Portfolio Managers –collectively over 29 years experience in Asian equities. Supported by 21 Analysts mostly on the ground in Tokyo, Hong Kong and Singapore

• The Process: Company visits and research driven; with a comprehensive macro and strategic overlay

• The Portfolio: 60-90 long and short ideas with top ten positions generally 30-35% of NAV

• The Risk Management Process: Appropriate fund size to match the opportunities in mid/large cap companies, rather than taking large positions in illiquid stock

• Single stock short positions with some use of futures

• The View of Liquidity: The majority of the NAV of the Fund in stocks where we hold three days trading volume or less


Portfolio Construction Guidelines

• Long Positions: 2%-5% of assets at cost; generally 10% maximum at market price

• Short Positions: 1%-3% of assets at cost; generally 5% maximum at market price

• Gross exposure (shorts + longs) typically ranges between 120% and 160%

• Net long exposure generally 20% to 60%

• Long/short ratio between 1.5x – 2.5x average range

• Top ten positions generally 30 - 35% of the Net Asset Value

• Active currency hedging strategy

• Measured use of derivatives for hedging


Risk Management

• Risk control at the stock level– Focus on upside/downside ratio vs. existing position– Price target discipline drives exit strategy for each security– Tools for price action and volatility monitoring– Dynamic stop loss discipline based on risk/reward

• Managing portfolio risk– Exposure guidelines by liquidity; Generally over 90% of the portfolio will be invested in stocks with market cap

>$1B– Exposure guidelines by sector; Generally no single sector will be more than 30% of the NAV of the Fund– Exposure guidelines by country; Generally no single country’s net exposure will be more than 30% of the

NAV of the Fund– Liquidity; Each position in the portfolio should be able to be liquidated within 3 trading days– Measured use of derivatives (futures and options)


Investment Process

• Define investment universe– Long Positions: Asian companies with track records of high and sustained margins, sales growth,

returns on capital and focus on mispricings. Emerging leaders: companies with high intangible value in growing economies as well as companies which dominate industries with increasing global relevance. Restructuring and capital return enhancement stories, particularly in Japan

– Short Positions: over-leveraged balance sheets, competitively disadvantaged, structurally flawed business models. Generally do not short on the basis of valuation alone

– Focus on management changes: many of Asia’s best businesses remain handicapped by poor management; returns increase dramatically under new management

• Generate fundamental edge on a company– Interview managements to monitor their company and industry conditions– Create financial models on the targeted company to quantify our “edge”– Triangulate information via customers, competitors, supplies and consultants– Assess corporate governance, corporate culture and alignment of interests with shareholders– Review public filings, industry journals and publically available data prior to management meetings

• Test and defend our investment thesis– Test company thesis against sell side research and defend internally– Ongoing development of views with financial models and investment memos– Identify and monitor reasons for mispricing

• Project future events needed to correct the mispricing– Evaluate the likelihood of our thesis and these events occurring– Realization of value is typically a series of events occurring over a 6 month - 2 year time frame


Stock Selection

• Identify mispriced securities where intrinsic value differs materially from market value

• Contrarian approach– Take advantage of mispricing caused by distressed sellers/emotional investors

• Research specific ways intrinsic value can be achieved– Corporate restructuring: cost cutting, asset disposals, changes to the capital structure,

consolidation– Shifts in industry supply and demand: measurable inventory, capacity shutdown, substitution, price

movements– Financial accounting: conservative tax accounts, aggressive “cash-less” earnings, timing &

recognition

• Manage a focused portfolio of our leading stock ideas for strong risk-adjusted returns


Macro View to Support Stock Picking

• How the top-down view is used– The macro view is a critical input but strictly to support bottom up stock selection process– Cross check with sector exposure, analyst findings and company contacts– Tune long/short ratio within target range from a macro perspective

• How the top-down view is developed– Thorough understanding of key macro drivers for each sector and market– Regular monitoring of changes in macroeconomic and geopolitical factors– Indus primary economic consultant (worked at Soros with the team), plus a network of economists

and strategists– Understand the policy making environment within different countries and sectors through regular

visits with policy makers and regulators


Indus PacifiChoice Asia Fund


FundLogic Alternatives Plc

• The Indus PacifiChoice Asia Fund is a Sub Fund in the FundLogic Alternatives Plc, which is an Irish UCITS III OEIC

• What does a Sub Fund of FundLogic Alternatives Plc provide to the investor:– Robust regulatory framework of UCITS, both from an infrastructure and investment perspective– Access to investment strategies offered by Alternative Managers in a UCITS-compliant format – Robust operating framework supported by well-established fund service providers– Morgan Stanley oversight through roles of Promoter and Risk Manager to the UCITS III OEIC

• Morgan Stanley’s oversight roles:– Promoter to the OEIC

– Liaising with the Irish regulator (Central Bank of Ireland) on behalf of the OEIC in relation to the ongoing authorisation of the OEIC and its Sub-Funds, including compliance reporting

– Liaising with the OEIC’s service providers on behalf of the OEIC – Marketing and sales of the OEIC on a cross-border basis

– Risk Manager to the OEIC– Daily Post-trade risk monitoring of the Sub Fund portfolio to detect any breaches of UCITS III regulations – Periodic Trade monitoring/reconciliation to detect discrepancies with administrator NAV data– Periodic review of Indus, the investment strategy, and the portfolio performance with a view to keeping the board of the OEIC

informed.


Overview of FundLogic Alternatives Plc

UCITS III Platform

(Irish OEIC)

Morgan Stanley

• Promoter• Risk Manager

Administrator (Northern Trust)

• Calculates NAV for each Sub-Fund• Performs reconciliation functions• Produces and distributes NAV

statements to authorised third parties

Money Laundering Risk Officer (Northern Trust)

• Appointed out of Northern Trust by the Board of Directors

Board Of Directors (at least 2 independent directors)

• Management and Oversight of OEIC

• Monitoring of investment manager to ensure no breach of the investment policy and/or UCITS rules

• Quarterly board meetings

Transfer Agent (Northern Trust)

• Opens investor accounts (performs required checks)

• Acts as investor contact point for subscriptions and redemptions

• Provides monthly statement of holdings

• Reports on trailer fees

Custodian and Trustee (Northern Trust)

• Overall supervision of Custody function

• Monitoring of investment guidelines

Auditor (Ernst & Young)

Indus Capital Partners, LLC.Manages the investment strategy

within UCITS rulesSub Custodian (Morgan Stanley)• Sub-custody and service agreement

in place between Northern Trust and Morgan Stanley

• Morgan Stanley is safekeeping the fund’s assets


Indus PacifiChoice Asia Fund Details

€/ £/ $ 250,000

€/ £/ $ 1Million

€/ £/ $ 1Million

€/ £/ $ 10,000

Minimum Initial Subscription

Class I USD: IE00B66Z2486N/A20%2%Share Class I

Northern Trust (sub-custodian: Morgan Stanley)Custodian and Administrator

Investment Manager Indus Capital Partners, LLC

Investment Strategy Long/ Short Equity

Legal Structure UCITS III OEIC

Domicile Ireland

Valuation Day Weekly (Wednesdays)

Subscription/Redemption Deadline 12 midday Irish Time; 3 Business Days prior to the relevant Dealing day

Launch Date 12th January 2011

Base Currency USD

Currency Denomination Euro, Sterling, USD

Share Classes Accumulation

Issue Price €1000, £1000, $1000

Fees Management Fees

Performance Fees Upfront fee/ Initial Charge ISINs

Share Class A 2.5% 20% Up to 5% Class A USD: IE00B3QVSM51

Seeding Share Class (Share Class B)*

1.5% 20% N/A Class B USD: IE00B3YZH111

Share Class P 2% 20% Up to 3% Class P USD: IE00B3PY1261

Sub-Custodian Morgan Stanley

Auditor Ernst & Young

* Investors subscribing during initial few months of launch of the Sub-Fund will subscribe for the Seeding Share Class (Class B), this will available until such time that the net assets of the Sub-Fund reach USD 100 million or any other such other amount as determined by the Directors.

Applications for shares in any sub-fund of the FundLogic Alternatives plc (the “Fund”) should not be made without first consulting the Fund’s current Prospectus, Simplified Prospectus, Annual Report and Semi-Annual Report (“Offering Documents”), or other documents available in your local jurisdiction which are available free of charge from Morgan Stanley & Co International plc.

Indus PacifiChoice Asia Fund Structure

• Indus Capital Partners, LLC. manages the

strategy by investing directly into the assets

• Northern Trust appoints Morgan Stanley as sub-

custodian in respect of all assets.

• Under the UCITS regulation, all shorts/leverage

must be done synthetically

Indus PacifiChoice

Asia Fund

Morgan Stanley Sub-custodian

Indus Capital Partners LLC

Listed and OTCDerivativesIncluding

Equity Swaps

Custody of Long Assets

Cash (Swap P&L /

Divs etc.)

Northern Trust UCITS

Custodian


Appendix 1 – Performance of Other Indus Portfolios


Performance of Other Indus Portfolios

Indus Japan Fund performance since inception Indus Asia Pacific Fund performance since inception

Substantial alpha generation across all Indus Asia portfolios since inception

All performance returns are only audited through December 31 2009. Past performance is not necessarily indicative of future results. The Indus Japan Fund and Indus Asia Pacific Fund use the master-feeder fund structure in order to accept assets from both foreign and domestic investors in the most tax and trading efficient manner. Historical performance combines the onshore and offshore feeder funds performance net of all fees and expenses. Returns for the onshore and offshore feeder funds differ because the performance period for the offshore funds end on June 30th while the performance period of the onshore US funds end on December 31st. The incentive fees for the funds are calculated annually and since the funds have different performance fee measurement periods this creates a potential difference in monthly returns. The returns of each Fund are blended in proportion to their assets under management in the master fund. Individual investor results may vary. Certain performance information presented herein contains unaudited estimates which will be adjusted when final.


Performance of Other Indus Portfolios

Monthly vs. Benchmark ( November 2004 Inception)

Combination of three long-short equity fund investing in companies located in the Asia Pacific region including Australia and Japan: Indus Japan Fund, Indus Asia Pacific Fund and Indus Pacific Opportunities Fund.

Combined Funds

MSCI AC Asia Pac Index (USD)

Inception Date Nov 2004 Nov 2004Annualized Return 8.7% 3.8%Launch to Date Return 60.7% 23.4%Volatility 9.2% 20%Sharpe Ratio 0.68 0.16Percent Positive Months 65% 60%Correlation with S&P 0.61 0.84

The performance of this portfolio reflects the assumptions, views, and analytical methods of Indus Capital Partners, LLC. Hypothetical or model performance results have certain inherent limitations. Unlike an actual performance record, these model results do not represent actual allocations. Model allocations are subject to the fact that they are designed with the benefit of hindsight. There can be no assurance that Indus would have taken or will make allocations similar to those made in the results presented. No representation is being made that Indus PacifiChoice Fund will or is likely to achieve profits or losses similar to those shown above. There are frequently sharp differences between the model performance results and the results subsequently achieved by any particular allocation or investment program.

Past performance is not necessarily indicative of future results. Historical performance combines the onshore and offshore fund performance net of all fees and expenses. Individual investor results may vary. Certain performance information presented herein contains unaudited estimates which will be adjusted when final. Index information is included for illustrative purposes only and is not intended to imply that the portfolio was similar to any index either in composition or element of risk. Indices are unmanaged and generally do not reflect the reinvestment of income and dividends or the impact of advisory fees. The foregoing should not be deemed an offer to sell or a solicitation of an offer to buy an interest in Indus PacifiChoice Fund, Ltd. or Indus PacifiChoice Fund, L.P.

Performance of Three Combined Indus Asia Portfolios

Fund Overview as of June 30, 2010


Appendix 2 – Indus Capital Partners LLC Organizational Chart and Biographies


Management Structure - Indus Capital Partners LLC

Management Committee

Sheldon Kasowitz, CFA Managing PartnerDavid Kowitz, CFA Managing PartnerJames Shannon Senior PartnerMatthew Sippel, CFA Senior PartnerMichael Guarasci, COO Senior Partner

Research

Ben De Somma*– Asia Pacific FundJohn Pinkel*, CFA– Asia Pacific FundSid Velakacharla*– Asia Pacific FundEthan Devine*– Japan FundHoward Smith*, CFA– Japan Fund16 Analysts

Portfolio Management

Sheldon Kasowitz***, CFA– Japan FundDavid Kowitz***, CFA– Asia Pacific FundByron Gill*, CFA– Pacific Opportunities FundGene Salamon*– Europe FundJohn Pinkel*, CFA– Select FundEthan Devine*– Asian Recovery Fund-– Japan Fund

Finance & Operations

Michael Guarasci**– COOJames Weiner– CFOStuart Hendry– Head of Operations

Client Services

Matthew Sippel**, CFA– Head of Client ServicesBronwyn Owen– VP Client ServicesJulia Koop– VP Client Services

Legal & Compliance

Brian Guzman*– General CounselDennis Bertron– CCO

Trading

James Shannon**– Head of Trading


Portfolio Managers – Indus PacifiChoice Asia Fund

Ethan Devine

Ethan Devine is a Partner of Indus Capital Partners, the Co-Portfolio Manager of the PacifiChoice Fund and a Portfolio Manager for the Indus Japan Fund, and the primary fund advisor for the Indus Asian Recovery Fund. He is based in the New York office and primarily researches companies in Japan. Mr. Devine joined Indus in August 2001 from Goldman Sachs Investment Research, where he was part of the top-ranked Latin American Industrial Conglomerates team. Subsequently, Mr. Devineassumed responsibilities in the Goldman Sachs Global Communications, Media and Entertainment team, ranked No. 1 in the Institutional Investor poll.

Mr. Devine graduated Swarthmore College in 1999.

Sheldon Kasowitz, CFA

Sheldon Kasowitz is a Managing Partner and founder of Indus Capital Partners, with direct responsibility for managing the Indus Japan Fund and Co-Portfolio Manager of the Indus PacifiChoice Fund. Mr. Kasowitz has over 25 years of experience in the investment industry and has been involved in long-short equity strategies as a Portfolio Manager or principal analyst for more than 15 years. Prior to founding Indus in 2000, Mr. Kasowitz was a Managing Director and Partner of Soros Fund Management and the principal manager of Japanese long/short equity investments for the Quantum Group of Funds. Before joining SFM, Mr. Kasowitz was a Director and a head of Asian sector research at Jardine Fleming Securities in Hong Kong and an Associate Analyst at Goldman Sachs & Co. in New York.

Mr. Kasowitz, a Chartered Financial Analyst, graduated cum laude from the University of Connecticut in 1983, and received an M.B.A. from Columbia University in 1990. Mr. Kasowitz is a member of The Japan Society, is an Emeritus Board Member of The University of Connecticut Foundation, is on the board of The Blacksmith Institute and is a member of the Economic Club of New York.


Partners – Indus Capital Partners LLC

Howard Smith, CFA

Howard Smith is a Partner of Indus Capital Partners and Senior Analyst managing the firm’s Tokyo office. Mr. Smith primarily researches companies in Japan contributing ideas regarding the Indus Japan Fund. Mr. Smith joined the firm from ING Barings where he worked in their Tokyo research office as a senior analyst. Prior to ING he worked as a macroeconomist and country analyst with regional specialization on North East Asia for the Economist Intelligence Unit in London. Mr. Smith began his career in 1990 at Nomura Research Institute in Tokyo where he was an editor/economist.

Mr. Smith, a Chartered Financial Analyst, earned his B.A. in Economics and Statistics at the University of York in the UK and his MSc in Economics at Birkbeck College, at the University of London in the UK. Mr. Smith has spent the last fifteen years in Japan and is fluent in Japanese.

John Pinkel, CFA

John D. Pinkel is a Partner of Indus Capital Partners and Senior Analyst in the firm’s Hong Kong research office. Mr. Pinkel is Portfolio Manager of the Indus Select Fund and Deputy Portfolio Manager of the Asia Pacific Fund, primarily researching companies in Asia (ex-Japan) with a particular focus on HK/China, Taiwan and Korea. Mr. Pinkel joined Indus in 2003 from Salomon Smith Barney where he was Managing Director and Head of Equities in the Taipei Branch. Prior to joining Salomon Smith Barney, Mr. Pinkel spent eight years as a securities analyst in Hong Kong, China and South Korea. John has been living and working in Asia for the last 20 years.

Mr. Pinkel, a Chartered Financial Analyst, graduated from the University of California, Santa Barbara, with a B.S. in Applied Mathematics. Mr. Pinkel is fluent in Mandarin Chinese.


Partners – Indus Capital Partners LLC

David Kowitz, CFA

David Kowitz is a Managing Partner and Founder of Indus Capital Partners, with direct responsibility for managing the Indus Asia Pacific Fund. Mr. Kowitzhas more than 20 years of experience in the investment industry and has managed equity long-short portfolios for over a decade. Prior to founding Indus in 2000, Mr. Kowitz was a Managing Director and Partner of Soros Fund Management, investing principally for the Quantum Emerging Growth Fund, and for the last two years of his time at Soros was the principal internal manager for that fund. Previously, Mr. Kowitz was a portfolio manager at Kingdon Capital Management, running a portfolio of emerging market investments. Mr. Kowitz began his career at Goldman Sachs as an associate analyst assisting the firm’s top-ranked packaged food analyst.

Mr. Kowitz, a Chartered Financial Analyst, graduated from Brown Universityin 1985 with a degree in English literature.


Important Information

This financial promotion has been issued and approved in the UK by Morgan Stanley & Co International plc, 25 Cabot Square, Canary Wharf, London E14 4QA, authorized and regulated by the Financial Services Authority, for distribution to Professional Clients or Eligible Counterparties only and must not be relied upon or acted upon by Retail Clients (each as defined in the UK Financial Services Authority’s rules). All of the information contained in this document relating to Indus (the “Indus Information") is communicated by Indus Capital Partners, LLC., 152 West 57th Street, 28th Floor, New York, NY 10019 authorized and regulated by the U,S. Securities & Exchange Commission. Morgan Stanley & Co International plc disclaims any and all liability relating to the Indus Information, including, without limitation, any express or implied representations or warranties for statements or errors contained in, and omissions from, the Indus Information.

The Fund may only be offered and distributed to investors in accordance with all relevant local laws and regulations. The distribution of this presentation and the offering or purchase of interests in the Fund may be restricted in certain countries. This communication is only intended for and will be only distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations. It is the responsibility of any persons in possession of this document and any persons wishing to purchase interests in the Fund to inform themselves of, and to observe, all applicable laws and regulations of any relevant country.

Applications for shares in any sub-fund of the FundLogic Alternatives plc (the “Fund”) should not be made without first consulting the Fund’s current Prospectus, Simplified Prospectus, Annual Report and Semi-Annual Report (“Offering Documents”), or other documents available in your local jurisdiction which are available free of charge at the address above. The Offering Documents contain material information not contained herein. In particular, the Prospectus contains details relating to the terms of investment and information regarding investment risks and conflicts of interest. Any representation to the contrary is not permitted. In the event of such offering, the information in this document will be superseded, amended and/or supplemented in its entirety by the Prospectus.

This communication is a marketing communication; it has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The material contained herein has not been based on a consideration of any individual client circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision. Except as otherwise indicated herein, the views and opinions expressed herein are those of Morgan Stanley & Co International plc. It is not a product of Morgan Stanley’s Research Department and should not be regarded as a research recommendation. The information contained herein has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

No representation or warranty can be given with respect to the accuracy or completeness of the information, or with respect to the terms of any future offer of transactions conforming to the terms hereof. We do not undertake to update this information. Certain assumptions may have been made in the analysis that resulted in any information and returns/results detailed herein. No representation is made that any results/returns indicated would be achieved or that all assumptions in achieving these returns have been considered or stated. Changes to the assumptions may have a material impact on any results/returns detailed. Morgan Stanley and its affiliates disclaim any and all liability relating to this information, including without limitation any express or implied representations or warranties for statements contained in, and omissions from, this information. Additional information is available on request.

Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.

All information contained herein is proprietary and is protected under copyright law.

Indus Capital Partners LLC has been appointed as the investment manager of the Indus PacifiChoice Asia Fund (the Indus Pac Fund) by the board of the FundLogic Alternatives Plc (the OEIC). Morgan Stanley & Co International plc and its affiliates (Morgan Stanley) do not have a right to direct the investment of the Indus Pac Fund. The performance of the Indus Pac Fund will be dependent on the proper functioning of the internal management and systems of Indus Capital Partners LLC and the other service providers. The board of the OEIC will generally not have the opportunity to evaluate the specific investments made by Indus Capital Partners LLC before they are made. Accordingly, no person should invest in the Indus Pac Fund unless willing to entrust all aspects of selection and management of the Indus Pac Fund’s investments to Indus Capital Partners LLC. Morgan Stanley does not accept any liability for any losses caused by the actions or inaction of Indus Capital Partners LLC in connection with the performance of its management duties to the OEIC.


Important Information

RISK WARNINGPast performance is not a guarantee of future performance. The value of the investments and the income from them can go down as well as up and an investor may not get back the amount invested. There can be no assurance that the Fund will achieve its investment objectives.

Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.

Investments in derivative instruments carry certain inherent risks such as the risk of counter party default and before investing you should ensure you fully understand these risks. Use of leverage may also magnify losses as well as gains to the extent that leverage is employed.

These investments are designed for investors who understand and are willing to accept these risks. Performance may be volatile, and an investor could lose all or a substantial portion of his or her investment.

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This information has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Please refer to important information at the end of this document. 32

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