Markets moved further into excess risk aversion terri-tory in the final month of the third quarter. Similarly to 2008 and early 2009, equity risk premium is reaching exceptional highs and sentiment is pushing markets well beyond fundamental values. The situation is curious in a way that anything less than a full blown escalation in sovereign crisis has been priced in the markets. It gives in-vestors a clear choice: if you believe that major contagion will be avoided at any cost, then there is an opportunity for a repetition of second half of 2009 in terms of equity market returns. If you believe that politicians are unable to prevent a complete catastrophe, then all bets are off, of course. New Europe is clearly in a less vulnerable situ-ation than in 2008, which does not mean that the current uncertainty and slowdown would not have an impact. Most importantly, though, the external financing needs on New Europe are drastically lower than in the pre-Leh-man period. As an example, Bulgarian latest 5-year bond auction sold 35m EUR worth of securities at 3.90% yield, a level that many Eurozone members can only dream about at his point.At the corporate level, news flow has been scarce since the end of the last earnings season. Our only Hungarian investment, the thermal energy company PannErgy an-nounced that its second drilling works in Miskolc will be started. Preliminary geological modeling suggests that drilling reaches hot water reservoir at 2,000 meters. Not everything is good about EU membership for all compa-nies: T-Hrvatski Telekom will have to bear lower mobile termination and roaming tariffs as a result of Croatia’s EU accession. The latter makes up some 5-6% of its an-nual group revenues and will eventually come down by 50% after EU accession. Sopharma, the leading Bulgarian pharma producer, opened a new plant in Serbia for solid

pharmaceuticals, employing 120 people. AIK Bank, the Serbian universal bank that is one of our largest holdings, made a decision to launch own shares buyback as “it finds current price per share as deeply undervalued”. AIK will buy back up to 2.8% of total shares outstanding, “to stop further stock price erosion”, financed from retained earn-ings. Also, the bank formally changed its 2011 forecasts by adjusting income lines to reflect economic reality. New conservative estimates value the bank at 4x P/E 2011.As a sign of ongoing development in the sustainabil-ity front in New Europe, new index on Bulgarian SE was launched: CGIX, or Corporate Governance Index. Among 7 companies included in the new index are two of our holdings IHLBL and Sopharma. Our third Bulgarian hold-ing, BREF is the developer and owner of the Kambanite Business Center, that has been selected as an example of an outstanding Green Building in Souther Europe.

0102030405060708090100110120130140

0102030405060708090

100110120130140

2008 2009 2010 2011

Limestone New Europe Socially Responsible Fund - Class A

INVESTMENT TEAMOur Emerging Markets Equity team comprises 9 experienced investment professionals.

Alvar RoosimaaHead of Central Eastern Europe Equities

INVESTMENT OBJECTIVEThe Fund seeks growth of capital through investment in the equity securities of issuers in countries within Central and Eastern Europe believed to offer good opportunities for capital appreciation and which meet the Fund’s investment and social criteria. The Fund invests primarily in the listed stocks of companies based or operating in CEE. The Fund Manager applies bottom-up fundamental research driven investment process to construct an actively managed high conviction portfolio of favourably priced companies that comply with international norms on Environmental, Social and Governance issues in accordance with the UN Principles for Responsible Investment.

Fund Size (EUR) 16.2M

Total Expense Ratio 3.2%

NAV 77.59

Number of Holdings 27

Total Expense Ratio1 3.2%

Portfolio Turnover Rate 36.2%

1before performance fee

ISIN LU0373664472

Benchmark Stoxx EU Enlarged TMI

Currency EUR

Bloomberg LIMNESR LX

Quotation Daily

Launch Date 31.07.2008

Domicile Luxembourg

Performance None

Management 2.5%

MONTHLY FACTS

BASIC INFORMATION

FEES AND CHARGES

Subscription (max) 5.0%

Redemption (max) 1.0%

MANAGER COMMENTARY

Losses were big and came from across the board. A single exceptiom was Sparkassen Immobilien where investors decided that given the solid real estate assets in the port-folio, the price was low enough to try some bottomfish-ing. Hrvatski Telekom has some defensive characteristics, like one of the largest dividend payout ratios in our invest-ment universe. Romanian SIF’s finally got an offer from Er-ste bank to buy out their minority holding in Erste’s local subsidiary, which helped to keep the otherwise volatile securities more stable. Losers’ corner naturally has bigger banks in it and our only energy company OMV, which was hurt by the drop in oil price. The same names have a fair chance to lead winners’ column in the initial phase of any

bigger rebound. There are no fundamental reaons in Sep-tember price movements apart from general risk aversion and worsening global sentiment.

Winners and Losers

Portfolio and Strategy

SparkassenHrvatski TelekomSIF1

1.5%-2.1%-6.3%

0.1%-0.1%-0.1%

RaiffeisenAIKOMV

-23.5%-16.2%-18.1%

-1.4%-1.3%-1.1%

2monthly, 3including currency effect

Best

Wor

st

return2 contribution2,3

Fund (gross of fees)

September 2011

Benchmark

Type UCITS

CONTACT

Fax +372 628 2370

e-mail info@limestonefunds.eu

Phone +372 712 0801

Web www.limestonefunds.eu

Cumulative Performance

CONTACT

ALLOCATION

Fax +372 628 2370

e-mail info@limestonefunds.eu

Phone +372 712 0801

Web www.limestonefunds.eu

September 2011

European SRI Transparency logoThe European SRI Transparency logo signifies that Limestone Investment Management commits to provide accu-rate, adequate and timely information to enable stakeholders, in particular consumers, to understand the Socially Responsible Investment (SRI) policies and practices relating to the fund. De-tailed information about the European SRI Transparency Guidelines can be found on www.eurosif.org, and infor-mation of the SRI policies and practices of the Limestone New Europe SRI fund can be found at: www.limestonefunds.eu. The Transparency Guidelines are managed by Eurosif, an independent organisation.The European SRI Transparency Logo reflects the fund manager s commit-ment as detailed above and should not be taken as an endorsement of any particular company, organisation or in-dividual.

Limestone Investment Management is a signatory to the UN Principles for Re-sponsible Investment

RomaniaAustriaBulgariaPolandSerbiaCroatiaHungarySloveniaSlovakiaCzech RepublicOtherCash

19.4%18.7%17.1%14.2%12.9%11.4%

3.4%2.7%0.0%0.0%0.0%0.3%

IndustrialsFinancialsReal EstateInformation TechnologyEnergyConsumer DiscretionaryConsumer StaplesHealth CareTelecommunication ServicesMaterialsUtilitiesCash

25.6%19.5%18.0%

8.5%8.2%5.4%4.0%3.6%3.5%3.4%0.0%0.3%

ETHICAL INVESTMENT

Bulgarian Real Estate FundAik BankaRaiffeisen Intl Bank HoldingOMVKoncar DistributivniAsseco PolandSparkassen ImmobilienImmoFinanzABFondul Proprietatea

9.8%8.0%5.4%5.1%5.0%4.7%4.3%3.8%3.8%3.7%

The aim of the Monthly Report is to give general information regarding financial markets and economic trends in an educational context only. This document is published for infor-mational purposes only and is issued by the Limestone Investment Management AS. The opinions expressed in this report are those held by the authors at date of this document and may be subject to change. This report shall not be considered a solicitation to buy or an offer to sell, or a recommendation for, a security, or any other product or service. In particular, the information herein is not for distribution, and does not constitute an offer to sell or buy, or the solicitation of any offer to sell or buy, any securities in the United States of America or for the account of an US Persons. The views expressed herein are not to be taken as investment research, investment advice or recommendation for investors. Unless otherwise specified, you alone are solely responsible for determining whether any investment, security or strategy or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should always seek your own independent professional advice, if necessary.All reasonable efforts have been made to ensure that information in this report is in accordance with the facts, accurate and up to date and contain no omission likely to affect its import. Certain financial information presented in this report has been obtained directly from annual or semi-annual reports of a particular fund. The presentation of such financial information is based on IFRS as adopted by the EU. Certain information in this report has been sourced from a third party, with reference to such source being provided, and although we have made reasonable efforts to ensure that such information is in accordance with the facts, accurate and up to date and contain no omission likely to affect its import or ren-der the reproduced information inaccurate or misleading, we accept no liability relating to such information. Certain financial and other information set forth in this report may be rounded off for your convenience. Reference to a website should not be deemed to incorporate information by reference. We accept no liability for the content of websites to which reference is provided in this report or from which reference is provided to this report. Shares or units in funds are offered only on the basis of the information contained in the particular fund’s documents including, without limitation, the risk factors of the fund. Investment in funds should be made based on the most recent offer documents relating to the particular fund (e.g. prospectus, simplified prospectus or key investor information document, or other applicable terms and conditions, latest available audited annual report and, if published thereafter, the latest unaudited semi-annual report, available at www.limestonefunds.eu).When making your investments you should always bear in mind, that (i) the value of investments may go down as well as up and investors may not get back the amount invested; (ii) past performance is not necessarily a guide to future performance; (iii) rates of exchange may cause the value of investments to go down or up; and (iv) different funds (and investments) have different levels of risk and reference should be made to the relevant prospectus for further details of the financial commitments and risks involved with investing in particular fund.The entire content of this report is subject to copyright with all rights reserved. You may not copy, reproduce, distribute, transmit (by electronic means or otherwise) or modify the contents in whole or in part without written permission. The information provided on this website is for personal, non-commercial use.Issued by: Limestone Investment Management AS, registration code 11415614, registered address at Väike-Karja 12, 10140 Tallinn, Estonia. Limestone Investment Management AS is authorized and regulated by the Estonian Financial Supervision Authority (www.fi.ee) as a fund management company.

STATISTICS Best Monthly ReturnWorst Monthly Return

Best Monhtly AlphaWorst Monthly Alpha

Standard Deviation

Tracking Error

Sharpe

Beta

35.4%-22.9%

13.5%-6.2%

36.5%

14.2%

-0.25

1.02

Price/Earnings (projected)Price/BookDividend Yield

8.60.5

2.9%

DISCLAIMER

Abs

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sCo

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Sect

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Limestone New Europe Socially Responsible Fund - Class A

SHARE CLASS PERFORMANCE1 Month 3 Months 1 Year 3 Years Inception

-13.6% -27.1% -27.7% -5.7% -22.4%-13.9% -27.3% -23.9% -27.1% -40.5%0.3% 0.2% -3.9% 21.4% 18.1%

Fund (Class A)BenchmarkExcess Return

YTD 2010 2009 2008

-29.9% 14.1% 83.1% -47.0%-25.4% 12.1% 41.3% -49.6%-4.5% 2.6%41.8%1.9%

4since 31.07.2008