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VIETNAM LOTUS FUND LIMITED


Interim report for the six months ended 30 June 2009

VIETNAM LOTUS FUND ANNUAL REPORT 2008 2


LOTUS FUND ANUAL REPORT 2

ContentsSpecial considerations and risk factors 1

Responsibility statement of the Board of Directors 2

Interim management report 3 - 4

Condensed balance sheet 5

Condensed statement of comprehensive income 6

Condensed statement of changes in equity 7

Condensed statement of cash flows 8

Notes to the condensed interim financial information 9 - 17

Directory 18 - 19

VIETNAM LOTUS FUND LIMITED INTERIM REPORT - JUNE 2009 1


THE INVESTMENT OBJECTIVE OF VIETNAM LOTUS FUND LIMITED (“the Fund”) is to

seek long-term capital appreciation of its assets by investing in a portfolio of equity

securities of listed or prelisting Vietnamese companies, whether established with domestic

or foreign ownership.

SHAREHOLDERS SHOULD BE AWARE THAT THE RISKS inherent in the investments of the

Fund in Vietnam are of a nature and degree not typically encountered when investing in

securities of companies listed on the major securities markets. Such risks include, but are

not limited to, political and economic risks in addition to the normal risks inherent in any

equity investment. A full description of the risks involved in investment in the Fund can be

found in the Prospectus.

INVESTMENT IN THE FUND SHOULD BE REGARDED AS LONG-TERM IN NATURE. There

can be no guarantee that the Fund’s investment objectives will be achieved.

SHAREHOLDERS SHOULD BE AWARE THAT THE VALUE OF THE FUND’S SHARES and the

income from them may fluctuate. In addition, there is no guarantee that the market prices

of shares in closed-end funds will fully reflect their underlying Net Asset Value.

SPECIAL CONSIDERATIONS AND RISK FACTORS




As required under the Transparency Directive, to the best of our knowledge:

The condensed financial statements have been prepared in accordance with IAS 34 Interim Financial

Reporting and give a true and fair view of the assets, liabilities, financial position and performance of

Vietnam Lotus Fund Limited.

The interim management report includes a fair review of:

Important events that have occurred during the first six months of the year;•

The impact of those events on the condensed financial statements;•

A description of the principal risks and uncertainties for the remaining six months of the financial •

year; and

Details of any material related party transactions.•

On behalf of the Board of Directors

Philip Smiley Chairman

27 August 2009

RESPONSIBILITY STATEMENT OF THE BOARD OF DIRECTORS



REVIEW OF THE INTERIM PERIOD

During the period under review the Fund’s Net Asset Value (“NAV”) per share increased by 28.49%, from

US$1.699 to US$2.183. This compares with a rise in the Viet Nam Index (“VNI”) of 39.25% in US$ terms over

the same period. The Vietnamese Dong (“VND”) depreciated by 2.09% over the period under review.

STOCK MARKET

The first half of the Fund’s Financial Year saw a remarkable turnaround in the fortunes of the Vietnam stock

exchange after local, followed by global economic problems had precipitated a 68.73% collapse in the VNI

in 2008. The rally which started toward the end of February 2009 has resumed into August to the time of

writing after a period of consolidation in June and July, with the index having gained 123% from its 235.50

closing low on 24 February 2009. Much improved sentiment has underpinned the rally with local investors

reflecting that the fall in 2008 was somewhat excessive and now adopting a more optimistic outlook for the

economy. We have seen a resumption of listing activity in the second quarter of 2009 with Vietcombank,

Bao Viet Holdings and Vietinbank all joining the Ho Chi Minh City bourse recently and making a solid

contribution to the increase of total market capitalisation to above US$ 24 billion including the Hanoi

market. Daily turnover is regularly above US$ 100 million and it certainly appears that the development of

Vietnam’s capital markets is back on track after a major stumble in 2008.

ECONOMY

Vietnam has been spared the worst ravages of the global economy to date, albeit having suffered a fairly

dramatic slowdown in the first quarter of 2009 when Gross Domestic Product (“GDP”) growth declined to

3.1%. Second quarter growth picked up to 4.6% for a first half total of 3.85% and continued improvement

in the latter part of 2009 will provide a reasonable chance for the economy to meet the government’s 4.5

to 5% full year target, which would represent an impressive showing under the circumstances after 6.23%

growth in 2008. Much of the credit for Vietnam’s relatively strong economic performance during the crisis

has been attributed to what has come to be known as the “Wal-Mart Effect” whereby the low-end make-

up of Vietnam’s export range has provided a cushioning effect. The narrowing of the trade deficit to US$

2.1 billion for the first six months of 2009 compared to US$ 14.77 billion at the same stage of 2008 has been

more notably impacted by a 34% decline in imports than the 10% decline in exports.

Consumer Price Inflation (“CPI”) has slowed dramatically from a year ago, when negative macro-economic

comment was at its most hysterical (and not in a funny way) as the two main contributors to a near 30%

annual rate in the third quarter of 2008, namely food and petroleum prices, have seen sharp retracements.

Year-on-year CPI was up 3.94% to the end of June 2009. Whilst we do not expect full year inflation to come

in much under 10%, that in itself would be a decent achievement particularly if price pressure continues

to fall into 2010.

All things considered, not a bad performance overall for the Vietnam economy during the first six months

of 2009 and one that is likely to improve going forward assuming that the current level of global “green

shoot” optimism does not turn out to have been misplaced in the fullness of time.

INTERIM MANAGEMENT REPORT



INTERIM MANAGEMENT REPORT

STRATEGY

With the VNI having risen back above 525 points in August 2009, the rally from the 24 February 2009 low

of 235.5 has taken the index more than 120% above that level. We expect the rally to continue in the

short-term but will take advantage of further strength toward 600 points to complete rebalancing of the

portfolio whilst protecting gains made year-to-date as best we are able.

OUTLOOK

During the life of the index we have seen a fairly typical early-stage emerging market pattern, with the

VNI having risen from 100 at inception in July 2000 to 1,170 points in March 2007 and subsequently falling

back to 235 in February 2009. Whilst we are confident that we have seen the lows of this (almost) global

recession we do not discount future periods of extreme volatility as the market develops, particularly as

turnover remains dominated by domestic investors with foreigners contributing less than 10% of activity

on an average day. Our 2009 year-end target has been raised to 475; we would expect, on balance, that

the index is more likely to finish the Fund’s financial year above rather than below that level with further

gains currently regarded as likely in 2010. We intend to continue to manage the portfolio more actively

in future and we remain confident of our stock selection methodology in building a portfolio capable of

delivering superior long-term returns.

As outlined in an announcement released by the Irish Stock Exchange on 14 August 2009 we feel that

Shareholders are likely to benefit from the Fund being absorbed into an open-ended structure and will

work toward completion of the necessary steps by the end of the Financial Year. We sincerely thank

Shareholders for their continuing loyalty and support.

RELATED PARTY TRANSACTIONS

See Note 7 to the condensed interim financial statements for details of related party transactions during

the period.

On behalf of the Investment Manager

Kevin Snowball27 August 2009



CONDENSED BALANCE SHEET(UNAUDITED)

As at

Note 30 June 2009 31 December 2008

US$ US$

Assets

Cash and cash equivalents 2,175,904 256,513

Financial assets at fair value through profit or loss 4 20,981,128 16,597,905

Other receivables and prepayments 12,093 55,896

Total assets 23,169,125 16,910,314

Liabilities

Payable to brokers (1,461,794) -

Accounts payable and accruals (52,059) (62,178)

Total liabilities (1,513,853) (62,178)

Net assets 21,655,272 16,848,136

Equity

Issued capital 5 495,893 495,893

Share premium 5 48,577,489 48,577,489

Accumulated profits/(losses) (25,092,611) (30,249,737)

Cumulative translation reserve (2,325,499) (1,975,509)

Total shareholders’ equity 21,655,272 16,848,136

Net asset value per share (US$ per share) 6 2.183 1.699

The attached Notes 1 to 8 form an integral part of this condensed interim financial information.



CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)


Six months ended

Note 30 June 2009 30 June 2008

US$ US$

Interest income - 1,225

Dividend income 210,626 577,118

Net gain/(loss) on financial assets at fair value 4 5,192,743 (25,274,379)

Net investment gain/(loss) 5,403,369 (24,696,036)

Management fee 7 (169,845) (396,425)

Custodian, secretarial and administration fees (13,506) (38,198)

Brokerage commissions (10,321) (3,788)

Directors’ fees 7 (26,492) (20,444)

Foreign exchange loss - net (3,306) (23,897)

Other operating expenses (22,773) (110,484)

Total operating expenses (246,243) (593,236)

Net profit/(loss) before tax 5,157,126 (25,289,272)

Income tax expense - -

Net profit/(loss) for the period 5,157,126 (25,289,272)

Other comprehensive income/(loss)

Currency translation differences (349,990) (1,473,948)

Total comprehensive income/(loss) for the period 4,807,136 (26,763,220)

Earnings/(losses) per share – basic and diluted (US$ per share) 6 0.520 (2.754)



CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)


Issued

capital

Share

premium

Accumulated

profits/

(losses)

Cumulative

translation

reserve Total

US$ US$ US$ US$ US$

At 1 January 2008 458,275 46,435,130 5,967,736 - 52,861,141

Issued capital 15,150 839,310 - - 854,460

Net loss for the six month period - - (25,289,272) - (25,289,272)

Other comprehensive income/(loss):

Currency translation differences - - - (1,473,948) (1,473,948)

Total comprehensive income/(loss) for the period ended 30 June 2008 - - (25,289,272) (1,473,948) (26,763,220)

Balance at 30 June 2008 473,425 47,274,440 (19,321,536) (1,473,948) 26,952,381

Issued capital 22,468 1,303,049 - - 1,325,517

Net loss for the six month period - - (10,928,201) - (10,928,201)


Currency translation differences - - - (501,561) (501,561)

Total comprehensive income/(loss) for the period ended 31 December 2008 - - (10,928,201) (501,561) (11,429,762)

Balance at 31 December 2008 495,893 48,577,489 (30,249,737) (1,975,509) 16,848,136

Net profit for the six month period - - 5,157,126 - 5,157,126


Currency translation differences - - - (349,990) (349,990)

Total comprehensive income/(loss) for the period ended 30 June 2009 - - 5,157,126 (349,990) 4,807,136

Balance at 30 June 2009 495,893 48,577,489 (25,092,611) (2,325,499) 21,655,272



CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)


Six months ended

30 June 2009 30 June 2008

US$ US$

Cash flows from operating activities

Proceeds from sales of financial assets at fair value 2,810,804 1,550,184

Dividends received 258,541 573,770

Interest received - 1,157

Purchases of financial assets at fair value (889,479) (1,732,300)

Payments to investment manager, administrator

and suppliers (260,475) (496,635)

Net cash flows generated from/(used in) operating activities 1,919,391 (103,824)

Cash flows from financing activities

Proceeds from share issues - 854,460

Placing fee paid to placing agent - (20,370)

Net cash flows generated from financing activities - 834,090

Net increase in cash and cash equivalents 1,919,391 730,266

Cash and cash equivalents at beginning of the period 256,513 250,786

Cash and cash equivalents at end of the period 2,175,904 981,052



NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

1. CORPORATE INFORMATION

Vietnam Lotus Fund Limited (“the Fund”) was incorporated in the Cayman Islands on 27 August 2009 as an

exempted company with limited liability.

The primary investment objective of the Fund is to seek long-term capital appreciation of its assets by

investing in a portfolio of equity securities of listed or prelisting Vietnamese companies, whether established

with domestic or foreign ownership. The Fund may also invest up to 30 percent of its assets at the time of

investment in the shares of overseas-listed Vietnamese companies.

The Fund’s shares are listed on the Irish Stock Exchange.

The address of the Fund’s registered office is as follows:

CARD Corporate Services Ltd.

4th Floor, Zephyr House, 122 Mary Street

PO Box 709 GT, George Town

Grand Cayman, Cayman Islands

British West Indies

This condensed interim financial information was approved for issue on 27 August 2009

This condensed interim financial information has neither been audited nor reviewed by the auditors.

2. BASIS OF PREPARATION

This condensed interim financial information for the six months ended 30 June 2009 has been prepared in

accordance with IAS 34 Interim Financial Reporting. The interim financial information should be read in

conjunction with the annual financial statements for the year ended 31 December 2008, which have been

prepared in accordance with International Financial Reporting Standards (“IFRS”).

3. ACCOUNTING POLICIES

Except as described below, the accounting policies applied are consistent with those of the annual financial

statements for the year ended 31 December 2008, as described in those annual financial statements.

The following new standards and amendments to standards are mandatory for the first time for the

financial year beginning 1 January 2009.

IAS 1 (revised) • Presentation of Financial Statements. The revised standard prohibits the presentation

of items of income and expenses (that is “non-owner changes in equity”) in the statement of changes

in equity, requiring “non-owner changes in equity” to be presented separately from owner changes in

equity. All “non-owner changes in equity” are required to be shown in a performance statement.

Entities can choose whether to present one performance statement (the statement of comprehensive

income) or two statements (the income statement and statement of comprehensive income).

The Fund has elected to present a single statement of comprehensive income. The interim financial

statements have been prepared under the revised disclosure requirements. The presentation of

comparative information in the statement of comprehensive income has been amended for consistency

with the presentation of the current period.



IFRS 8 • Operating Segments replaces IAS 14 Segment Reporting. It requires a “management approach”

under which segment information is presented on the same basis as that used for internal reporting

purposes. The Fund currently operates as one segment and therefore this standard does not result

in significant changes to the financial statements. The required disclosures in IFRS 8 for entities

operating as one segment were already included in the financial statements of the Fund for the year

ended 31 December 2008.

IFRS 7 (amendment) • Financial Instruments: Disclosures. The amendments introduce a three-level

hierarchy for fair value measurement disclosures and require entities to provide additional disclosures

about the relative reliability of fair value measurements. In addition, the amendments clarify and

enhance the existing requirements for the disclosure of liquidity risk. The main impact on the annual

financial statements of the Fund will be additional disclosures required on the fair value measurements

for any investments in prelisting companies that the Fund is holding as at 31 December 2009 and

onwards. The additional disclosures are not required to be included in interim financial statements.

The following new amendments to standards and interpretations are mandatory for the first time for the

financial year beginning 1 January 2009, but are not currently relevant for the Fund:

IFRS 1 (amendment) • First Time Adoption of IFRS; and IAS 27 (amendment) Consolidated and Separate

Financial Statements.

IFRS 2 (amendment) • Share-based Payments - Vesting Conditions and Cancellations.

IAS 1 (amendment) • Presentation of Financial Statements.

IAS 23 (amendment) • Borrowing Costs.

IAS 32 (amendment) • Financial Instruments: Presentation; and IAS 1 (amendment) Presentation of

Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation.

IAS 39 (amendment) • Financial Instruments: Recognition and Measurement.

IFRIC 13 • Customer Loyalty Programmes.

IFRIC 15 • Agreements for Construction of Real Estates.

IFRIC 16 • Hedges of a Net Investment in a Foreign Operation.

There were other amendments to standards as part of the IASB’s annual improvements project published

in May 2008 that are not noted above. These amendments to standards were all effective from 1 January

2009 and do not have an impact on the Fund’s financial statements.

3. ACCOUNTING POLICIES (CONTINUED)

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (CONTINUED)




The following new standards, amendments to standards and interpretations have been issued but are not

mandatory or not effective for the financial year beginning 1 January 2009 and have not been early adopted:

IFRS for SMEs is effective from its release date of 1 January 2010. This is a self-contained standard •

tailored for the needs and capabilities of small and medium-sized entities. This standard is not relevant

to the Fund as it cannot be adopted by listed entities.

IFRS 1 (amendment) • First Time Adoption of IFRS – Additional Exemptions for First-time Adopters is

effective from 1 January 2010. The Fund is not a first time adopter, so this amendment is not relevant

to the Fund.

IFRS 3 (revised) • Business Combinations and consequential amendments to IAS 27 Consolidated and

Separate Financial Statements, IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures,

effective prospectively to business combinations for which the acquisition date is on or after the

beginning of the first annual reporting period beginning on or after 1 July 2009. To date, the Fund

has not been involved in any business combinations. The impact of the revised standard will be

assessed if the Fund is involved in any business combinations from 1 January 2010 onwards.

IAS 39 (amendment) • Financial Instruments: Recognition and Measurement on Eligible Hedged Items,

effective for financial years beginning on or after 1 July 2009. This amendment is currently not

relevant to the Fund, as the Fund does not apply hedge accounting as described in IAS 39.

IFRIC 17 • Distributions of Non-cash Assets to Owners, effective for financial years beginning on or after

1 July 2009. This interpretation is not relevant to the Fund.

IFRIC 18 • Transfers of Assets from Customers, effective for transfers of assets from customers received

on or after 1 July 2009. This interpretation is not relevant to the Fund.

There are other amendments to standards as part of the IASB’s annual improvements project published in

April 2009 that are not noted above. These amendments to standards are all effective from 1 January 2010

and are unlikely to have an impact on the Fund’s financial statements.

3. ACCOUNTING POLICIES (CONTINUED)



4. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Movements in financial assets at fair value through profit or loss in the periods:

All the Fund’s financial assets at fair value through profit and loss at the balance sheet dates were in

equity securities of investee companies that are incorporated in Vietnam. All of these equity securities were

denominated in Vietnamese Dong.

Opening carrying value/cost of sales as included in the above table represents, for those investment *

securities sold in the period: the fair values of the investment securities held at the start of the period

and the costs of the investment securities purchased during the period.

Six months ended

30 June 2009 30 June 2008

US$ US$

Opening balance 16,597,905 54,865,024

Purchases 2,351,273 200,747

Opening carrying value/cost of sales* (2,070,742) (1,724,787)

Net unrealised gains/(losses) arising from changes in the fair values

_ of financial assets 4,452,682 (25,106,815)

Difference arising on translation to presentation currency (349,990) (1,473,948)

Closing balance 20,981,128 26,760,221




4. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

Analysis of equity securities between industry groups at the balance sheet dates:


As at

30 June 2009 31 December 2008

US$ % US$ %

Agriculture 2,172,863 10.35 1,898,489 11.44

Construction and materials 658,182 3.14 482,781 2.91

Consumer Staples 1,358,749 6.48 927,278 5.58

Energy 1,198,849 5.71 1,123,188 6.77

Financials 4,636,590 22.10 1,532,884 9.23

Food and Beverages 2,153,415 10.26 2,302,710 13.87

Logistics 1,072,020 5.11 664,961 4.01

Mining - - 98,848 0.60

Packaging 806,731 3.85 372,033 2.24

Pharmaceutical 2,049,632 9.77 2,683,765 16.17

Plastics 905,886 4.32 513,991 3.10

Property 2,136,533 10.18 2,190,174 13.19

Steel 86,814 0.41 - -

Telecoms 1,744,864 8.32 1,806,803 10.89

20,981,128 100.00 16,597,905 100.00

Analysis of equity securities between listed and prelisting status at the balance sheet dates:

As at


US$ US$

Listed securities

At cost 31,428,311 35,787,632

Net unrealised losses arising from changes in the fair

values of financial assets (13,752,746) (23,131,599)

17,675,565 12,656,033

Prelisting securities *

At cost 8,649,151 10,245,606

Net unrealised losses arising from changes in the fair

values of financial assets (5,343,588) (6,303,734)

3,305,563 3,941,872

Total 20,981,128 16,597,905

As quoted prices for these unlisted securities were not available in an active market on the balance sheet *

dates, the Fund has determined the fair value of these unlisted securities using valuation techniques.



4. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

Included within the telecoms and the prelisting securities categories presented above is an investment

in Saigon Postel Corporation with carrying value at 30 June 2009 of US$1,744,864 (31 December 2008:

US$1,735,040). The holding comprises 700,000 shares that are restricted from trading until 28 December

2009 and 215,385 shares which are unrestricted.

Net gains/(losses) arising from changes in the fair values of financial assets in the periods:


Six months ended

30 June 2009 30 June 2008

US$ US$

Realised gains/(losses) on sales of investments 740,061 (167,564)

Unrealised gains/(losses) 4,452,682 (25,106,815)

5,192,743 (25,274,379)

Six months ended

30 June 2009 30 June 2008

US$ US$

Realised (losses)/gains on sales of investments (4,597,076) 413,734

Net losses arising from changes in the fair values of financial assets as presented above is calculated with

reference to the fair values of investment securities held at the start of the period and the costs of investment

securities purchased during the period.

Net realised (losses)/gains on sales of investment securities with reference to the initial costs of the

investment securities is as follows:

5. ISSUED CAPITAL

As at


US$ US$

Authorised share capital

40,000,000 ordinary shares of US$0.05 each 2,000,000 2,000,000

Issued and fully paid capital

9,917,857 ordinary shares at par value 495,893 495,893

Share premium

Share premium on 9,917,857 ordinary shares 48,577,489 48,577,489



5. ISSUED CAPITAL (CONTINUED)


The shares constitute the only class of shares in the Fund. All shares have the same rights, whether in regard

to voting, dividend, return of share capital and otherwise.

Each issued and fully paid ordinary share is entitled to dividend when declared and carries one voting right.

In a winding up of the Fund, the shares carry a right to a return of the nominal capital paid-up in respect of

such shares, and the right to share in the surplus assets.

The following shareholders own more than 10 percent of the Fund’s issued capital:

Holding as at


Shareholder Shares % Shares %

Citivic Nominees Limited 5,964,898 60.14 5,964,898 60.14

Cogent Nominees 1,054,589 10.63 1,054,589 10.63

Movements in share capital during the periods:

Movements in share premium during the periods:

Six month period to

30 June 2009 31 December 2008 30 June 2008

US$ US$ US$

Balance at beginning of the period 495,893 473,425 458,275

Capital issued during the period - 22,468 15,150

Balance at end of the period 495,893 495,893 473,425

Six month period to

30 June 2009 31 December 2008 30 June 2008

US$ US$ US$

Balance at beginning of the period 48,577,489 47,274,440 46,435,130

Share premium from shares issued

during the period - 1,303,049 839,310

Balance at end of the period 48,577,489 48,577,489 47,274,440



6. NET ASSET VALUE PER SHARE AND EARNINGS PER SHARE

Net asset value per share


As at


US$ US$

Net asset value 21,655,272 16,848,136

Net asset value per share 2.183 1.699

Earnings/(losses) per share

Six months ended

30 June 2009 30 June 2008

US$ US$

Net profit/(loss) for the period 5,157,126 (25,289,272)

Weighted average number of shares for

earnings per share 9,917,857 9,183,813

Earnings/(losses) per share 0.520 (2.754)

The net asset value per share is determined by dividing the net asset value by the number of shares issued

and outstanding at the time.

The basic earnings/(losses) per share is calculated by dividing net profit/(loss) for the period attributable

to the Fund’s shareholders by the weighted average number of ordinary shares in issue during the period.

During the period, the Fund did not have dilutive ordinary shares.

7. RELATED PARTIES

Investment Management Agreement

Under the Investment Management Agreement with PXP Vietnam Asset Management Limited (“the

Investment Manager“) dated 28 November 2006, the Fund pays the Investment Manager a monthly

management fee equal to one-twelfth of two percent of the Net Asset Value of the Fund, which fee shall

be payable monthly in advance and be calculated by reference to the valuation day at the end of the

preceding month.

During the six month period to 30 June 2009, PXP Vietnam Asset Management Limited was entitled to

receive a management fee of US$169,845 (six month period to 30 June 2008: US$396,425).



7. RELATED PARTIES (CONTINUED)

8. SUBSEQUENT EVENTS


Investment Management Agreement (continued)

In accordance with the Investment Management Agreement between the Fund and PXP Vietnam Asset

Management Limited, the Investment Manager is also entitled to receive a performance fee from the Fund

which is calculated at the end of each financial year. No accrual has been made for performance fee for the

six month period ended 30 June 2009 (six month period to 30 June 2008: US$ Nil).

Directors’ remuneration

The Board of Directors determines the fees payable to each director, subject to a maximum aggregate amount

of US$50,000 per annum being paid to the Board as a whole. The Fund will also pay reasonable expenses

incurred by the directors in the conduct of the Fund’s business including travel and other expenses.

During the six month period to 30 June 2009 the members of the Board of Directors were entitled to receive

total fees of US$24,795 (six month period to 30 June 2008: US$20,444).

Shares held by related parties

As at 30 June 2009, PXP Vietnam Asset Management Limited, the Investment Manager, held 807,000 (31

December 2008: 730,000) shares of the Fund representing 8.14% (31 December 2008: 7.36%) of the total

issued capital; and Kevin Snowball, a director, held 235,000 (31 December 2008: 235,000) shares of the Fund

jointly with his spouse representing 2.37% (31 December 2008: 2.37%) of the total issued capital.

Significant transactions with related parties

Six month period to

Related party Relationship Nature of transaction 30 June 2009 30 June 2008

US$ US$

PXP Vietnam Asset

Management Limited

Investment

Manager

Management fee payable

Subscription for shares in the Fund

169,845

-

396,425

521,700

PXP Capital Markets

Limited

Placing Agent Payment of placing fee collected

on behalf - 20,370

Kevin Snowball Director Subscription for shares in the Fund - 169,200

Subsequent to the period-end, the directors of the Fund have held preliminary discussions with the directors

of Vietnam Emerging Equity Fund Limited (“VEEF”), a company which also has an investment management

agreement with PXP Vietnam Asset Management Limited, regarding a possible business combination.

This would involve VEEF making an offer to acquire all of the outstanding shares in the Fund via a share

exchange at the Net Asset Values of the respective funds on the closing date of the offer. As at the date of

approval of this interim report, the discussions are at a preliminary stage.


DIRECTORY

DIRECTORS OF THE FUND

Philip Smiley

Christopher Vale

Antony Jordan

Stephen Diggle

Gregory Hazlett

Kevin Snowball

THE FUND

Vietnam Lotus Fund Limited

CARD Corporate Services Ltd.

4th Floor, Zephyr House, 122 Mary Street

PO Box 709 GT, George Town

Grand Cayman, Cayman Islands

British West Indies

ADMINISTRATOR AND REGISTRAR

HSBC Trustee (Cayman) Limited

P.O. Box 484

2nd Floor, Strathvale House,

North Church, George Town

Grand Cayman, KY1–1106, Cayman Islands

British West Indies

CUSTODIAN

HSBC Institutional Trust Services (Asia) Limited

39th Floor Dorset House

Taikoo Place

979 Kings Road

Hong Kong

VIETNAM SUB-CUSTODIAN

HSBC Bank (Vietnam) Ltd.

The Metropolitan

235 Dong Khoi Street

District 1, Ho Chi Minh City

Vietnam

INVESTMENT MANAGER

PXP Vietnam Asset Management Limited

PO Box 957

Offshore Incorporations Centre

Road Town

Tortola

British Virgin Islands

ADMINISTRATOR’S AND REGISTRAR’S SERVICE PROVIDER

HSBC Institutional Trust Services (Asia) Limited

39th Floor, Dorset House

Taikoo Place

979 Kings Road

Hong Kong

PLACING AGENT

PXP Capital Markets Limited

PO Box 957


Road Town

Tortola


AUDITORS

KPMG Limited

10th Floor, Sun Wah Tower

115 Nguyen Hue Street


Vietnam




DIRECTORY

LEGAL ADVISER TO THE FUND

Freshfields Bruckhaus Deringer

11th Floor, Saigon Tower

29 Le Duan Boulevard


Vietnam

DEALING ENQUIRIES

PXP Capital Markets Limited

PO Box 957


Road Town

Tortola


LEGAL ADVISER TO THE FUND ON CAYMAN ISLANDS LAW

Charles Adams, Ritchie & Duckworth

Attorneys-at-Law

PO Box 709GT

Grand Cayman

Cayman Islands

British West Indies

LISTING SPONSOR AND PAYING AGENT IN IRELAND

NCB Stockbrokers Limited

3 George’s Dock

International Financial Services Centre

Dublin 1

Ireland

VIETNAM LOTUS FUND LIMITED - RNS Submit · A full description of the risks ... VIETNAM LOTUS FUND...

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