ARGO FUND SP (ABSOLUTE RETURN GLOBAL OPPORTUNITY)

Annual return* of ARGO Class 1 Shares since inception

From April 2016, this strategy is offered to clients in the form of "ARGO SP" (segregated portfolio or fund). Managers also offer a replication of the strategy in client’s accounts for balances larger than USD 5 mln. The return on the fund's shares calculates 5.7% per annum exceeding average CPI by 3.6 from April 2016 to the end of 2020 with a volatility of 1.3%. The fund's profitability in 2020 was 5.36%. The return on Class 1 in Q1 2021 was -1.6% due to temporary difficulties in refinancing the debts of one issuer. The managers do not expect a further decrease in the value of the portfolio and expect to achieve the target profitability by the end of 2021.

*return before deducting management and performance fees

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.