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Team manages portfolios against JP Morgan Emerging Market Bond Index Global Diversified, and also as an absolute return product against a cash benchmark.

Philosophy
To pursue a disciplined approach applying quantitative techniques, fundamental analysis and rigorous risk management, adding value primarily through country allocation combined with optimal instrument selection. Return targets and risk parameters precisely targeted.

Objectives
To target 2.5% per annum (gross) outperformance of benchmark index with low relative volatility resulting in strong competitive performance over rolling 3 year periods
or
Achieve an absolute return in excess of cash in-line with clients' risk/ return targets.

Risk Control

• Duration Weights versus the index, utilising “units of risk”.
• 20% maximum in local emerging markets currency bonds, 30% maximum in corporate bonds
• Hard stops placed on local emerging market currency positions

Investment Team 

Key Strengths

• Experienced Team - Highly experienced (average 13 years) and fully resourced team.
• Team Approach - A unique team structure ensures an improved quality of investment decision and minimal divergent performance between similar client accounts. Clients receive input from all members of the team not just individual Fund Managers.
• Investment Approach - Target country selection 80% of value added, instrument selection 20% for Global Emerging Market Bond Funds.
• Country Scoresheet - We use a country score board in a defined manner, which gives a solid, disciplined approach. Judgmental overlay is then applied by the team to finalise asset allocation.
• Quantitative Input - A quantitative country model is used to complement the scoreboard.
• Integrated Bond & Equity Teams - Combined resource adds value to both the country allocation and instrument selection process.

Benchmark 
Portfolios are generally managed against the JP Morgan EMBID. Other benchmarks can be established in line with client requests. Cash benchmark for absolute mandates.

Fees
Standard fee - 1. 0%. Fees are negotiable depending on the size and nature of the mandate.

Minimum Size for segregated fund
US$ 25m

Emerging Markets Assets under Management
US$ 4.4bn (June 2008) assets either managed directly or on an advisory basis