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__________________________________Semi Annual Reportfor the half year ended 31 December 2007___________________________4
ABN AMRO ALTERNATIVE INVESTMENT STRATEGIES-ABN AMRO MULTI STRATEGY FUNDMANAGER’S REPORTInvestment ObjectiveThe aim of the ABN AMRO Multi Strategy Fund (“the Fund”) is to achieve capital appreciationthrough investing all or substantially all of its assets into the ABN AMRO Global Multi StrategyFund (“Underlying Fund”), a sub-fund of ABN AMRO Alternative Investments, an open-endedumbrella investment company incorporated in Luxembourg (“Company”). The Underlying Fundwill invest primarily in a diverse range of collective investment schemes implementing alternativemanagement strategies with exposure to any or all of the global markets worldwide. TheUnderlying Fund has an objective to generate strong absolute returns with low volatility through awell diversified portfolio of approved managers across all hedge fund strategies.The Fund is an open-ended cash unit trust. As a feeder fund, it will invest all or substantially all ofits assets into the Underlying Fund. The benchmark which the performance of the Fund should bemeasured against is HFRI Fund of Funds Composite Index.Investment Policy*The Underlying Fund is an alternative investment product managed by ABN AMRO AssetManagement. The product utilises a ‘fund of funds’ structure and diversifies investments acrosshedge fund strategies and managers from around the world. The Underlying Fund invests withhighly qualified specialist managers who have strong reputations in their particular areas ofexpertise. Manager selection involves a detailed process of due diligence and on-site meetings. Thestrategies that the managers represent are actively managed to reflect the view that certain strategieswill perform better in certain market and liquidity conditions. This aids the process of achievingattractive absolute returns over the medium-term. The Underlying Fund’s investment guidelinesimpose upper limits on strategy allocations to ensure broad diversification.* Information relates to the ABN AMRO Alternative Investment Fund - Global Multi Strategy Fund(Underlying Fund)Market Review*Bond yields were more volatile in 2007. Developments in the sub-prime market became much moreof an issue and investors sought safe havens as riskier assets suffered. Risk aversion intensifiedfrom July onwards across fixed income markets. This was reflected in the spreads of credit defaultswap and corporate bonds, which widened especially for riskier bonds. The dominant feature ofcurrency markets last year was US dollar weakness. It fell against nearly all other major currencies,notably the euro, pushing the effective exchange rate index down to historical lows. The strongglobal economic environment pushed commodity prices higher again in 2007. Prices of oil, manysoft commodities and bio-fuels rose sharply. Gold prices benefited from increased inflationaryconcerns, US dollar weakness and the increase in risk aversion whereas other metals such asaluminium, copper and nickel showed less movement during the year. Most equity indices in thedeveloped world closed the year with relatively modest gains due to the impact of sub-primemarket developments. The Asian and Emerging Markets were the best performing equity marketsbenefiting from strong domestic economic dynamics, abundant liquidity and the absence of clearcontagion of sub-prime issues, which were eventually felt at the end of the year.5
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