Argo Fund

Limited

Fund Investment Objectives

The Fund is a long/short emerging market debt fund that principally invests in sovereign and performing corporate bonds whilst making opportunistic investments in special situations. The Fund's objective is to uncover value-based investment opportunities in the emerging markets credit space by identifying underpriced assets using a value driven bottom-up fundamental investment approach. Hedging: We may hedge market risk by shorting liquid sovereign positions and/or create market neutral spread positions and cover credit risk by buying protection through CDS. In the current market, we use reverse repo facilities to cover credit risk. Market Exposure: The Fund invests across the emerging market credit and special situations spectrum. Portfolio Concentration: We aim to keep the Fund diversified, both in terms of positions and entity, including both corporate and sovereign names. Although allocation will vary depending on market conditions, to date, we have had no occasion to significantly deviate from this target. Geographical Market Focus: We are a global player in emerging markets and we seek opportunities wherever they are attractive. Currently, the Fund's exposure is in Asia (excluding Japan), Eastern Europe, Latin America and Africa. Liquidity: Our systems produce projected cash flow reports and assets are classed into liquidity buckets as reported in our monthly newsletter. The Fund can usually liquidate up to three-quarters or more of its positions within one week, subject to market conditions. Correlation: We try to limit the number of positions to 50 and ensure that not more than 20% of the NAV of the fund is invested in any one issuer. We also apply an individual jurisdiction limit so that no more than 30% of the NAV of the Fund is invested in the aggregate entities located in the same jurisdiction. Correlation tests are run across the different assets in the Fund. The Fund's exposure levels also comply with the listing requirements of the Irish Stock Exchange. Leverage: Although the Fund is authorised to use leverage (up to 500%), in practice very little or no leverage is actually employed. The average level of leverage employed by the Fund has historically been around 18% while the maximum has been 45%. AUM reported bi-annually