The investment goal of the Alegra ABS Two (Euro) Fund is to achieve an above average risk/return profile by investing in subordinated asset-backed securities (ABS) with low volatility and minimal correlation to traditional investments. ABS are issued by a special purpose vehicle (SPV) on the occasion of the securitization of assets. An asset securitization is the transformation of a pool of cash-flow generating assets into tradable securities. Whilst the underlying asset portfolios of ABS are diversified by number of obligors, countries and/or industries, the Fund is seeking additional diversification by purchasing ABS of different classes of assets, including but not limited to: leveraged loans, high-yield bonds and residential and commercial mortgages. In order to achieve the Fund's investment goal, the Asset Manager places great emphasis on careful analysis of the underlying collateral pool with respect to sensitivity to default, concentration and returns in order to obtain an indication of the quality of an ABS security to be purchased.