ARGO FUND SP (ABSOLUTE RETURN GLOBAL OPPORTUNITY)

ARGO SP | Net asset value

The annual return on the fund's shares is estimated at 6% (fot the period from April 2016 to the end of 2019) with a volatility of 1.3%, exceeding inflation in US dollars by 3.3% on average basis.

Decline in the market value of short-term bonds in March 2020 exclusively caused by revaluation of assets against the backdrop of negative conditions on financial markets in the times of lockdowns. The partners expect continued positive revaluation of assets and the fund's shares share price growth by the end of the year.

The FUND │ Investment declaration

Instruments

The funds' portfolio may include fixed income instruments, structured products, other types of debt-related instruments as well as the limited quantities of share-like instruments.

Liquidity

The fund invests in instruments with appropriate liquidity, so that the potential demands for redemptions by investors can be satisfied upon request in strict accordance with their right for unlimited redemptions with less than a month prior notice.

Concentration and distribution of risks

• Share of any of instruments or groups of instruments issued by affiliated issuers in the portfolio may not exceed 10% of the net asset value of the portfolio;
• Share of exposure of any of structured products and/or any equity-type investment in the portfolio may not exceed 5% of the net asset value of the portfolio;
• Share of instruments, not being the fixed income and/or debt-related instruments in the portfolio may not exceed 30$ of the net asset value of the portfolio;
• Share of equity-type instruments in the portfolio may not exceed 15% of the net asset value of the portfolio;
• Share of fixed income instruments issued by issuers with their ratings lower than «B+» according to at least 2 rating agencies will most of the time not exceed 25% of the net asset value of the portfolio;
• Average duration of the fixed income instruments will most of the time be limited and the share of perpetual bonds will most of the time be less than 10% of the net asset value of the portfolio. The share of instruments with modified duration exceeding 5 years will most of the time be less than 25% of the net asset value of the portfolio;
• The managers do not anticipate opening of any short positions other than for the purposes of hedging of the currency, credit or other risks. In any case the consolidated short position will not exceed 35% of the net asset value of the portfolio, not accounting for the short positions (or/and NDFs) opened for hedging of currency exposures arisen from the long positions in the instruments nominated in currencies other than the US dollar.

Leverage

The leverage of the portfolio may reach up to 100% of the Net Asset Value of the portfolio.

Currency risks and limitations

Unhedged currency position of the portfolio may not exceed 20% of the net asset value of the portfolio.