European Capital Holdings (“ECH” or the “Fund”) was established on 18 September 1998 for an undetermined period
as an investment company under the laws of the Grand-Duchy of Luxembourg. The Fund’s initial capital was expressed
in Ecu but has been redenominated in euro as at 1 January 1999.
Shares of the Fund are listed on the Amsterdam Stock Exchange.
The principal objective of the Fund is the appreciation in capital, mainly through investments in equities quoted
in Europe and, to a lesser extent, in other quoted and non quoted investments such as those traded in the foreign
exchange and debt markets, including those outside Europe. For this purpose, Europe is considered to include
countries in the European Union and its immediate neighbours such as Switzerland, and may also include, although
less emphasis may be placed there, Eastern European countries, including Russia.
Under its two tier system, the Fund does not invest directly, but operates through a variety of investment
vehicles (see section “The Investment Structure”). Generally, each such investment vehicle is advised by a
principal portfolio manager and its team, allowing ECH to benefit from the diversity and experience of professional
portfolio managers (the “Managers”). The investment activities of the Fund include a wide range of specialised
approaches and techniques used by the several Managers, who are allowed to operate within their area of expertise
with minimal imposed limitations. The Fund does not supervise or control the decisions of the Managers, but adds
or withdraws capital according to its strategy and its judgement of their performance. The styles and techniques
of the Managers, which may include the use of various derivatives and short sales, may be aggressive and bear
special risks (see section “Special Risk Factors” below).
NAV Date: 02.10.08 NAV € : 203.25 Ytd Performance: (15.05)%
