ICMC Hi-Yield Strategies

Fund, Ltd.

Fund Investment Objectives

The ICMC Hi-Yield Strategies Fund, Ltd. is an investment partnership developed with the objective of acquiring a portfolio of high dividend, or interest, paying securities or other types of investments. The General Partner will search out and evaluate a multitude of investment opportunities including (among others): convertible securities (a general obligation liability of the issuing corporation which is convertible into the common shares of the corporation); equipment leasing; global credit arbitrage, short term purchase money loans to real estate developers (secured by a first lien deed of trust and generally with a loan to value ratio not greater than 80%); and a pool of, or direct, mezzanine loans - most of which are general obligations of a corporation but carry a high coupon rate of interest plus an equity kicker such as warrants or options. The objective is to accumulate a portfolio of investments most of which are expected to pay an above average current return from dividends, interest, or operations (7% to 15% annually) during a holding period and additionally may offer a significant opportunity for capital gain. Selectively, certain of the portfolio investments may be considered above average in risk; however, the General Partner believes the diversified nature of the portfolio investments, together with the corporate credit and/or collateral behind certain of the prospective investments, should materially limit the downside risk. This consideration together with the prospect of above average income and total returns is expected to result in superior absolute and risk adjusted returns. The goal to the General Partner is to build a diversified portfolio of investments the majority (over 50%) of which produce a level of current income, or distribute cash, from interest, dividends or operations which is materially greater than available from more conventional, long only and unleveraged, types of investments such as certificates of deposit, savings accounts, corporate bonds, governmental bonds, municipal bonds, mortgage loans and other similar fixed income types of investments. Furthermore, many of the portfolio investments may contain provisions for bonus payments of interest or dividends, or equity kickers such as warrants or options, or gains from credit arbitrage, which offer the potential for returns in excess of the coupon amounts. The General Partner may selectively utilize borrowed capital, in an amount up to a maximum of fifty percent of the market value of the portfolio for purposes of facilitating portfolio investments, enhancing performance, and/or to provide liquidity for redemption if it is untimely, inappropriate or impractical to liquidate portfolio positions.