Argo Local

Markets Fund Ltd

Fund Investment Objectives

The Fund seeks to earn risk-adjusted absolute returns by investing in long and/or short positions in bonds and other debt instruments denominated in the local currencies of emerging countries as well as the local interest rates of these countries. The Fund may also use exchange traded and over the counter derivative instruments including, but not limited to, swaps, credit linked notes, futures, forwards and options to reflect the Fund's pursuit of its investment objectives. The Fund's investment strategy is based on the fundamental analysis of a number of global emerging economies together with their local debt and currency markets. The Fund aims to determine if a country's debt and currency dynamics are improving or deteriorating and position accordingly so as to generate a return. This involves analysis of debt structure, macroeconomic prospects, monetary and fiscal policy and political developments amongst other factors. Based on this analysis, the Fund seeks to build a well diversified portfolio of long/short positions in local currency bonds, interest rates and/or other instruments.