Sovereign High Yield Fund

The Sovereign High Yield Fund is the company’s flagship Fund. It was established in July 1999 to capture the improving trend in Emerging Market Sovereign credit with a view to tactically short deteriorating sovereign credits. With a truly global reach across the main geographic regions there are few Emerging countries that we do not have experience investing in. We allocate across debt, local currency and interest rate markets as appropriate on a value-oriented basis according to our risk-adjusted return expectations. The Fund has been net cash since June 2008 and has a very conservative approach to leverage.

Exotic Fund

Established in January 2000, the fund’s investment objective is to capture the large capital gains opportunities available investing in exotic debt instruments. These opportunities will arise from potential credit events such as the lifting of an embargo or sanctions, debt restructurings, market-generated demand or countries opportunistically buying back their debt at distressed levels. Primarily a sovereign “event-driven” strategy, the portfolio is also diversified into other restructuring / recovery situations.

Emerging Opportunities Fund

The Emerging Opportunities Fund aims to seek out the best opportunities in the global emerging equity markets identified by the team. With the flexibility to invest in fixed income situations where there is no equity equivalent, our focus is on uncorrelated strategies with key macro drivers aiming for a high risk-adjusted return irrespective of market direction. We have a balanced approach targeting key investment themes with specific country and company catalysts within the EM world.