Letter

to Investors
Year 4 - 2016

Dear Partners,

It gives me great joy to reach out to each and every one of you once again in the
beginning of this new year. May this new year bring us a new hope, a new spirit,
and new opportunities with it. It turns out that within the month after the last
time I reached out to you, our fund has grown by a bit. As of the last trading day
on December 30, 2016, our fund has gained 43,88% on its full course of the year.
Even though our results this year may not be as sterling as previous ones, I hope
it puts solace in your minds as we have outperformed our benchmark to say the
least. Our long term goal is to keep on growing our capital both in good times and
times of adversity. For there are always opportunities to be taken on in both time
of good and bad. I would like to keep this letter as short as possible for I have
explained the bulk of what I would like to talk about in the previous interim
letter.

As of the closing of December 30th, 2016, our net asset value per unit stands at
2,188.70. This is achieved through prudent investment choices, as well as having
a defensive portfolio while also maintaining a partially momentum driven
portfolio.

Our holdings as I have mentioned in my earlier letter, have performed well and I
certainly hope will still be at this coming year. As of now, I would like to provide
a small outlook of what I think the year ahead will look like.

Before diving deep into what our outlook will be for the coming year, I would like
to present what your investment portfolio would look like if you were invested
since our inception.

 Fund NAV Performance vs JCI
3,761.50
4,000.00
3,500.00
2,614.33
3,000.00
2,500.00
2,000.00 1,718.60

1,500.00 1,301.85
1,000.00
1,000.00
1,000.00 952.74 1,069.54 954.94 1,101.25
500.00
0.00
Year 0 Year 1 Year 2 Year 3 Year 4

Fund NAV JCI (Indexed to 1000)

Since inception, our fund has grown with a compound annual growth rate
(CAGR) of 39.26% (excluding fees), against the JCI's CAGR of 2.44% over the
same period amount of time. Our performance since year 1 until year 4 has been
30.185%, 32.012%, 52,12%, and 43.88% (excluding fees). I would like to say
once again that our past results does not reflect future performances. This serves
as a benchmark for us to keep on improving ourselves, fine tuning our strategy
and gearing it towards the present and the coming future. As we are talking
about the future, I would like to talk a bit about what I think the near foreseeable
future will be.

Regarding our outlook for 2017, call me an eternal optimist, but I deeply believe
that this will still be a great year for Indonesia. With positive constructive
policies from our government, I believe that we may achieve more this year in
regards to our investment.

In the medium to the long term, Indonesia is still a growing country, with a vast
population equipped with a growing income. What we will see in the medium to
the long term is the rapid rise of Indonesian consumers, just like what we're
seeing in China today. Indonesia is very much similar to China of the previous
decades in terms of our demographics, where we see a rapidly growing middle
class as well as a low wage economy. I believe Indonesia is poised for more
growth in terms of manufacturing investment by foreign companies looking to
move their base of production from a costly China to cheaper neighbors.
Indonesia is competitive in terms of wage, but less so in terms of productivity, so
this is an area we must look closely into on what steps the government are taking
on improving labor productivity, before diving deep into the sector. As for this
instance, I am talking about textile manufacturing. As for high tech
manufacturing, I cannot see rapid growth here for that sector in the foreseeable
future.

As for construction, this is a particular sector that I am deeply interested in. For
with every growing nation, infrastructure is its key to move up the value chain.
From simply an agriculture driven economy, to a manufacturing driven, then to a
high tech manufacturing and consumption driven economy. Moving up those
stages involve significant infrastructure spendings in terms of electrification,
roads, bridges, dams, ports, railroad, and housing. What we will see in the
coming five years will be a boom in the construction sector, where not only the
government will be spending capital to build infrastructure, but also the private
sector actively building infrastructure such as power plants, ports, etc. This
private participation in infrastructure spending through a scheme called the
Public Private Partnership (PPP) will be beneficial both in the short and long
term. This allows the national budget to be better allocated and does not strain
it.

How we may capture this opportunity in the future remains clear, it is whether
to invest in construction stocks, or to be directly involved investing in a company
within the construction sector. I have identified an opportunity in the
construction sector, it is to invest in a company involved in producing an
essential material used in the construction business. To invest in this company,
we have set up a new private equity like vehicle to pool both new and old
partners in if they were to be interested in investing in such company. To invest
in it, I have previously mentioned raising 5-10 Billion IDR, but we will increase
the cap to 20 to 25 Billion IDR to accomodate any excess capacity. The aim of
such new fund is to generate returns in the vicinity of 25-30% annually, with
the minimum goal of doubling the fund in 5 years. THe end goal of our
investment in the company through our fund is to exit through an initial public
offering of shares in the respective company.

This new fund is the beginning of a brand new chapter in our journey as a fund,
giving us a bigger exposure to the market, as well as giving us a bigger
opportunity to capture bigger returns with it. But due to the limited liquidity
involved in investing in private companies, the investment horizon for this type
of fund is subject to a capital retention period of 3 (three) financial years. This is
implemented to avoid any firesale if there were to be any withdrawals, as well as
to optimally invest our capital during our investment term. Please feel free to
contact me if there were to be any questions regarding this letter.

I would like to thank my partners for being in this journey together, and I would
like to welcome you to a new journey with me together in this fund as well as my
new fund. I wish you all a Happy New Year, and have a great one ahead.

Sincerely yours,




Victor Febriant