Just a few years ago, Walmart was a company we liked very much and I even used its historic results in my book as an example of combined stability and high returns on capital. Things change all the time, however, and as we were progressively confronted with new facts all we could do was to adjust our opinion. In its domestic market, Walmart faces a growing risk from the “non-profit” organisation known as Amazon.com as well as the not yet large but very quickly growing German threat of Aldi. The lesson Aldi and Lidl taught Tesco on the UK market remains fresh in our minds, and we realize that even a seemingly unassailable market position cannot be taken for granted forever. Having also factored in Walmart’s troubles on some foreign markets, we decided to sell these shares. Our gain on Walmart was 47%.

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Note: The above commentary is taken from the recent Vltava Fund Letter to Shareholders.

Vltava Fund Disclosure: Our estimates and projections concerning the future can and probably will be incorrect. You should not rely upon them solely but use also your own best judgment in making your investment decisions. This document expresses the opinion of the author as at the time it was written and is intended exclusively for educational purposes. The information contained in this letter to shareholders may include statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” within the meaning of applicable foreign securities legislation. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or financial performance, or the estimates underlying any of the foregoing. Any such forward-looking statements are based on assumptions and analyses made by the fund in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the given circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, assumptions and uncertainties. In evaluating forwardlooking statements, readers should specifically consider the various factors which could cause actual events or results to differ materially from those contained in such forward-looking statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise. This letter to shareholders does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, the securities of the fund. Before subscribing, prospective investors are urged to seek independent professional advice as regards both Maltese and any foreign legislation applicable to the acquisition, holding and repurchase of shares in the fund as well as payments to the shareholders. The shares of the fund have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or under any state securities law. The fund is not a registered investment company under the United States Investment Company Act of 1940 (the “1940 Act”). The shares in the fund shall not be offered to investors in the Czech Republic on the basis of a public offer (veřejná nabídka) as defined in Section 34 (1) of Act No. 256/2004 Coll., on Capital Market Undertakings. Historical performance over any particular period will not necessarily be indicative of the results that may be expected in future periods.