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ABOUT THE FUND

  1. The Fund is Licensed by the CySEC
  2. It carries an ISIN and monthly returns are posted on Bloomberg
  3. It is settleable on euroclear for an efficient trading into the fund
  4. It has a Russia, CIS focus where yields are opportunistic and are at a premium to par issuers due to ensuing geopolitical events and lack of proper coverage of some papers
  5. Trading is predominantly between buy side clients to lock in better prices as opportunistic levels does not diluted from intermediation fees
  6. The fund management company has ran an asset management business for almost 10 years and successfully preserved clients assets through the subprime and Eurodebt crisis.

ALLOCATION SPECIFICS

  1. USD denominated portfolio, which primarily focuses on Russia, CIS and other emerging market sovereigns & corporates
  2. Underlyings are Eurobonds so capping local currency risk
  3. Around 20% of allocation is kept in cash to capitalize on prominent new issues and other event driven market opportunities
  4. Some remarks on markets of focus:

a.Russia: the downward pressure on the oil price and the ensuing geopolitical events have brought about attractive valuations although respective markets have recovered considerably. We focus on underlyings were liquidity remains strong, that are export oriented and benefit from a weaker ruble

b.CIS: economies have contracted following a downturn of the economic conditions in Russia and lower oil prices. These economies maintain strong links with Russia through trade and financial services and their currencies had to be devalued to remain competitive versus their largest export partner. However, bonds of interest are sound and liquid companies that are perceived to be opportune in the current economic environment.

  1. Regional and Industry sector diversification:

a. Substantial weight is allocated to Russian blue chip corporates, where balance sheet and financials are strong and which have shown resilience to the economic downturn of Russia

b. Around 40% of the remaining invested funds target attractive yields within the CIS sphere to capitalize on opportunistic valuations following the recent correction in June

c. Lastly, 10% are allocated across Asian corps that may include names such as Noble and Alibaba.

  1. Portfolio yields a return of 6% annually which is locked in if securities held to maturity and on the back of the solid performance of the issuer
  2. The duration of the portfolio is capped at just under 4 years to cap the price delta of the bonds vs. interest volatility

Portfolio size

FUND SPECIFICS

Fund  Alternative Investment Fund with limited number of persons authorised by the CySEC

Investors – Addressed to Professional and Well-Informed Investors

Net Asset Value  – Monthly NAVs reports are produced and performance is monitored by benchmarking against relevant indices, or a combination thereof. These benchmarks are approved by the risk committee as a performance measure prior to implementation. Monthly NAVs are available for investors to view on demand via an online interface.

Reports – An annual and half yearly report are prepared and sent to the CySEC and the unit holders within three months of the end of the financial year (in the case of the annual report) and within two months of the end of the half year (in the case of the half yearly report).

Management Fee – Pursuant to the Management Agreement, the Fund pays the Manager a fixed monthly Management fee for each full month of the Fund’s operation charged in arrears (the “Management Fee”) equal to 0.0625% (0.75% annualized) of the Net Asset Value of each series of the Shares prior to accruals, if any, in respect of Performance Fees.

Performance Fee – On each Valuation Day in a Performance Period, a Performance Fee is accrued for the account of the Manager in an amount equal to 15% of the increase in the Net Asset Value per Share determined as at such Valuation Day (before deduction of any accrued Performance Fees for such period) in excess of an annual Hurdle Rate of 3% compounded annually.

Redemption of shares – Shares of a series are redeemed at a per Share price based on the Net Asset Value of the series (net of accrued Performance Fees) on the Redemption Date (the “Redemption Price”). Redemption proceeds may be paid in cash or in kind. Cash payments are made in U.S. dollars.

A shareholder may redeem any or all Participating Shares, upon not less than 30 days’ prior written notice, subject to the discretion of the Board of Directors of the Fund to waive such notice, as of the last business day of the first full month following the 6th month after such shareholder’s purchase of such Participating Shares. Thereafter, such shareholder may redeem any or all such Shares upon not less than 30 days’ prior written notice, on each calendar month. Each new purchase of Participating Shares are subject to the same redemption restrictions. Each date as of which Shares may be redeemed is herein referred to as a “Redemption Date.” Redemptions are deemed to be effective immediately following the applicable Redemption Date.

If you are interested in this investment option, please contact us for more information.