GAM Emerging Market Rates

Hedge Fund USD

Fund Investment Objectives

The Fund seeks to take advantage of valuation anomalies in emerging markets, primarily in the fixed income and foreign exchange markets, by use of issuer, intra-sector and inter-sector arbitrage techniques; undertaking controlled currency plays; making investments in local and hard currency bond markets and using derivatives actively in order to enhance returns and/or limit risk. The Fund is managed using a "top-down" investment process whereby portfolios are built after rigorous fundamental analysis of global economies. This analytical work enables portfolio managers, in the light of current market conditions, to derive forecasts for expected total return in the fixed income, foreign exchange and equity markets. The forecasts allow diversified actively managed portfolios to be constructed. The performance shown from 1 Nov 2004 to 18 Dec 2013 is calculated by deducting a flat investment management fee of 1.50% pa and a performance fee of 20% of the appreciation in the NAV above 3m LIBOR on a high water mark basis from the performance of the corresponding gross figures in USD. Commencing 19 Dec 2013, the performance shown is calculated by deducting a flat investment management fee of 1% pa and a performance fee of 20% of the appreciation in the NAV above 3m LIBOR on a high water mark basis plus 3% from the performance of the corresponding gross figures in USD.