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RWC Absolute Rate & Currency (ARC) Funds March 2011
2
Introduction to RWC Partners
• RWC Partners is an independent investment firm
• Focus is exclusively on high-alpha asset management to institutions, professional investors and intermediaries
• Business is built around highly-talented portfolio managers, an intense focus on performance and a strong risk
management culture
• Majority of equity in RWC Partners is owned by RWC personnel – the balance is owned by Schroders
• 7 investment teams
• UK Equity John Innes
• European Equity Ajay Gambhir
• US Equity Mike Corcell
• Global Convertible Bond Davide Basile
• Global Growth Equity Priya Kodeeswaran
• Equity Income and Value Nick Purves & Ian Lance
• Macro, Rate & Currency Peter Allwright & Stuart Frost
• 66 personnel of which nearly half are investment professionals
• Product focus: UCITS III & non-UCITS high alpha & absolute return funds
RWC ARC Team & Investment Strategies
3
0%
3%
6%
0% 5% 10%
Target Returnover LIBOR
Expected Maximum VaR
RWC Cautious ARC
Target: Cash +3%
Structure: UCITS III
RWC Enhanced ARC
Target: Cash +6%
Structure: UCITS III
RWC Absolute Rate & Currency Funds
4
• RWC ARC (Absolute Rate and Currency) Funds
• A macro-orientated thought process, investing in liquid interest rate and currency markets
• Core, high grade, fixed income portfolio supported by additional “alpha” strategies
• Strategies aim to achieve a net return* of cash +3% and cash +6%, annualised, over the market cycle
• Highly liquid securities ensure exposure can be de-risked efficiently to reduce “drawdowns”
• Physical High Grade Bond investments provide a stable yield and exposure to duration
• Directional and tactical “strategies” provide the majority of excess returns
Alpha Portfolio
High Grade Bond Portfolio
• Short term high grade physical bond portfolio
• Provides a cash return on investments
• Some alpha component from duration management
• Highly liquid and provider of collateral if needed
• Short maturities
• Overlay adds pure alpha
• Predominantly derivative overlay
• Liquid rates and currency
• Exchange traded rates and forward and OTC FX
• No illiquid derivative structures
*Net of the institutional share class fee
Example of High Grade Bond Portfolio
5
Country Issuer Coupon Maturity Rating Holding (%)
OBL 3 1/2 08/04/2011 Aaa/AAA 18.57%
Rabobank 3 3/8 15/07/2011 Aaa/AAA 5.55%
Royal Bank of Canada 3 3/8 31/10/2011 Aaa/AA- 5.54%
RBS (UK Guarantee) 3 3/4 14/11/2011 Aaa/AAA 5.53%
HBOS (UK Guarantee) 3 3/8 05/12/2011 Aaa/AAA 5.51%
Erste Bank (Austria Guarantee) 3 23/01/2012 Aaa/AAA 3.76%
Neder Waterschapsbank 4 5/8 25/07/2011 Aaa/AAA 3.74%
Swedish Covered Bond 3 7/8 31/10/2011 Aaa/AAA 3.69%
Lloyds (UK Guarantee) 3 3/4 17/11/2011 Aaa/AAA 3.69%
NIBC Bank (Netherlands Guarantee) 3 5/8 19/12/2011 Aaa/AAA 3.68%
Alpha Portfolio
High Grade Bond Portfolio
Source: RWC Partners 07/01/2011
Rating % of Fund
AAA 59.26%
AA 21.37%
A 11.91%
BBB 0.00%
BB and below 0.00%
Unrated 0.00%
Total 92.54%
Sector % of Fund
Sovereign/Agency/Supra 49.08%
Secured/Collateralised 3.69%
Financial 35.10%
Corporate 6.53%
Total 94.40%
Analytics % of Fund
Duration 0.51 years
Current Yield 1.06%
Average rating AAA
• Provides beta element of portfolio
• Limited alpha opportunities
• Emphasis on liquidity and quality
• Residual interest rate and or/ credit risk can
be hedged if necessary
Alpha Portfolio
6
Alpha Portfolio
High Grade
Bond Portfolio
• Managed as overlay to add return to high grade bond portfolio
• Focused, highest conviction investment strategies:
• Rates – bond markets – short term interest rate futures
• FX – Global and emerging market currencies
• Cross asset class strategies – Bunds vs. Gilts – iTraxx crossover
• Strategies can be directional or market neutral
• Typically a small number of strategies deployed at any point in time
• One strategy may be implemented in a number of different ways
• Liquid securities ensure overlay can be collapsed or de-risked efficiently and quickly
• Exchange traded futures and options
• FX funds and OTCs
• Physical cash
• Interest rate swaps and CDS (iTraxx, sovereign CDS)
Flow Analysis
•Aim: Identify supply/demand dynamics and permanent positioning
•Analyse: Monitoring actions of major market participants
•Action: Directional investments
Price, Flow & Macro Analysis – produces the P.F.M. Scorecard
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Price Analysis
•Aim: To establish current and future state of play in any given market, i.e. trend or range
•Analyse: Charts of bonds, FX and indices
•Action: Identification of trading opportunities and attractive entry and exit points
Macro Analysis
•Aim: To anticipate economic trends in growth and inflation
•Analyse: Key economic variables; qualitative analysis of economic fundamentals
•Action: Fundamental input for trading ideas
PFM
Investment Process & P.F.M. Analysis
8
• Investment process looks at opportunities from three critical perspectives:
• Price Analysis
• Market psychology – price performance relative to economic releases
• Study of price trends, patterns of a continuation or reversal nature
• Long term charts looking for target areas on trends or ranges
• Inflection points on overbought or oversold markets
• What market are we in? Trend / Range / Reversal
• Flow Analysis
• Auction scheduling/QE buybacks
• Exchange Controls Policy
• CB/SWF currency diversification policy
• Pension solvency regulation
• Macro Analysis
• GDP relative to trend
• Inflation expectations
• Taylor rule analysis
• The Price, Flow, Macro analysis is quantified through the PFM “Scorecard”
• Each of the macro, flow, and price chart-based input factors is scored on a scale of -3 to +3
• Aggregate scores give a representation of the attractiveness of various points on the yield curve, currencies and bonds
• Ratings move frequently as P.F.M. inputs change – formally recreated every week
• Scorecard output is used to help assess and select strategies
• It is an idea generator and is not followed mechanically
• A high conviction strategy developed from any of the P.F.M. processes will be tested against the other two analytical processes
MacroFlow
Price
Price
Flow Macro
Price
MacroFlow
PFM Scorecard – highlighting the investment opportunities
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Please note, this is a historical example and not the current scorecard and will therefore not reflect current positions
USD EUR GBP JPY CHF AUD NZD NOK SEK CAD CNY BRL KRW MXN TRY ZAR SGD HUF PLN RUB
Price Rating
Currency -1 1 0 1 1 1 1 1 2 1 1 0 0 -1 -2 1 0 1 1 0
2Y 0 0 0 0 0 -1 -1 -1 -1 -1 - - - - - - - - - -
5Y 0 -1 -1 0 -1 -1 -1 -1 -1 -1 - - - - - - - - - -
10Y -1 -1 -1 0 -1 -1 -1 -1 -1 -1 - - - - - 1 - - - -
30Y -2 -1 0 0 -1 -1 -1 -1 -1 -1 - - - - - - - - - -
Flow Rating
Currency 0 0 0 0 -1 1 1 1 1 1 0 -1 0 0 0 0 0 0 0 -1
2Y 2 -1 0 0 0 1 1 1 1 1 - - - - - - - - - -
5Y 2 -1 0 0 0 1 1 1 1 1 - - - - - - - - - -
10Y 1 -1 0 0 0 1 1 1 1 1 - - - - - - - - - -
30Y -1 0 1 0 0 1 1 1 1 1 - - - - - - - - - -
Macro Rating
Currency 2 2 1 1 1 2 2 2 2 2 1 1 1 1 1 2 2 1 2 1
2Y -2 -2 -1 -1 -1 -2 -2 -2 -2 -2 - - - - - - - - - -
5Y -2 -2 -1 -1 -1 -2 -2 -2 -2 -2 - - - - - - - - - -
10Y -2 -2 -1 -1 -1 -2 -2 -2 -2 -2 - - - - - - - - - -
30Y -2 -2 -1 -1 -1 -2 -2 -2 -2 -2 - - - - - - - - - -
TOTAL USD EUR GBP JPY CHF AUD NZD NOK SEK CAD CNY BRL KRW MXN TRY ZAR SGD HUF PLZ RUB
Currency 1 3 1 2 1 4 4 4 5 4 2 0 1 0 -1 4 2 2 3 0
2Y 0 -3 -1 -1 -1 -2 -2 -2 -2 -2 - - - - - - - - - -
5Y 0 -4 -2 -1 -2 -2 -2 -2 -2 -2 - - - - - - - - - -
10Y -2 -4 -2 -1 -2 -2 -2 -2 -2 -2 - - - - - - - - - -
30Y -5 -3 0 -1 -2 -2 -2 -2 -2 -2 - - - - - - - - - -
Currency Rating OnlyFixed Income Rating
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Implementing the Investment Strategies
Expression of Investment View
• Market
• Currency
• Long or short
• Proxy or security specific
Choice of Security Type
• Cash securities
• Futures
• Options
• Forwards
• Swaps
Sizing & Risk Management
• Risk budget
• Liquidity
• Volatility
• Transparency
• Simplicity
Entry and Exit Points
• Price targets
• Call level
• Rolling stop profits
• Time Limits
Sizing and Risk Management
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• Pragmatic, market dependant approach to risk taking
• PFM Scorecard highlights trade possibilities
• Size of risk allocation dependant on market condition ie. liquidity/volatility, e.g. holidays, auctions or economic release
• Risk assessed on a top down „whole portfolio‟ view as well as an individual trade by trade basis
• VaR measure (Monte Carlo) only a backward looking indicator: Cautious ARC 20 day 99% confidence, 500 bps limit
Enhanced ARC 20 day 99% confidence, 1000bps limit
• Correlations move to extremes in times of stress
• Market neutral (i.e. curve, cross market) strategies may have significant implicit directional bias
• DV01/bp risk used to size and set stop profit/loss levels relative to expectations of realised market volatility
• Third party risk company AB Funds in Luxembourg using Kinetic Software
• Funds managed through Beauchamps (hedge fund accounting system) and thinkFolio, a simple, intuitive and sophisticated portfolio
modelling and trade management system designed specifically for bonds and currency management (not a VaR system)
Example: 5s/10s curve trade 1 bp per bp of fund P+L
Gilts/Bunds ½ bp per bp of fund P+L
Outright long/short ¼ bp per bp of fund P+L
FXs percentage exposure relative to
underlying liquidity/volatility
eg. USD ZAR ½% of NAV
eg. NOK SEK 2% of NAV
• Option strategies may be used to take exposure, hedge risk or book profit where it is
economic and efficient to do so
Expression of Investment View
• Market
• Currency
• Long or short
• Proxy or security specific
Choice of Security Type
• Cash securities
• Futures
• Options
• Forwards
• Swaps
Sizing & Risk Management
• Risk budget
• Liquidity
• Volatility
• Transparency
• Simplicity
Entry and Exit Points
• Price targets
• Call level
• Rolling stop profits
• Time Limits
RWC Cautious ARC (Absolute Rate & Currency) Fund – Term Sheet
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• Launch Date 29th December 2006
• Liquidity Daily subscriptions & redemptions / daily NAV
• Fees A Share Class: Retail 1.35% AMC / 10% performance fee
Fees B Share Class: Institutional 0.70% AMC / 10% performance fee
• Performance Fee HWM Yes – highest previous calendar year end
• Performance Fee hurdle Yes – HWM + LIBOR or equivalent
• Fund structure Luxembourg SICAV (UCITS III)
Sub-fund of the “RWC Funds” SICAV
• Currency EUR base currency – USD, GBP, CHF hedged share class
• UCITS III status Unsophisticated
• Administrator Banque Privée Edmond de Rothschild Europe
• Local Registrations Luxembourg / UK / Germany / Switzerland / Italy
• Tax Registered for Reporting Status for 2010
RWC Enhanced ARC (Absolute Rate & Currency) Fund – Term Sheet
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• Launch Date 14th February 2011
• Liquidity Daily subscriptions & redemptions / daily NAV
• Fees A Share Class: Retail 1.5% AMC / 15% performance fee
Fees B Share Class: Institutional 0.8% AMC / 15% performance fee
• Performance Fee HWM Paid quarterly. Share class level high water mark
• Performance Fee hurdle Yes – HWM + LIBOR or equivalent
• Fund structure Luxembourg SICAV (UCITS III)
Sub-fund of the “RWC Funds” SICAV
• Currency EUR base currency – GBP, USD hedged share classes
• UCITS III designation Sophisticated Fund
• Administrator Banque Privée Edmond de Rothschild Europe
• Local Registrations TBC - Luxembourg, Germany, UK, Switzerland, Italy
• Tax UK Reporting Status Application will be submitted
Daily reporting available for Germany Tax Transparency
14
Appendices
Absolute Rate & Currency: portfolio management team
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Peter Allwright – portfolio manager
• Joined RWC Partners in September 2010 with Stuart Frost as co-head of the Fixed Income, Rate
& Currency (ARC) Team
• Threadneedle Asset Management – 2005-2010
• Co-manager on all Absolute Return Bond and Macro Funds from inception
• $3bn AUM in absolute return and high alpha strategies
• Absolute Return Bond Fund – AA rated by S&P / A rated by OBSR
• Awarded 2 Gold Medals by Sauren in 2009 for Absolute Return funds and 2 for the Macro fund
• Additional responsibilities included management of core Global and European Bond funds
• Gartmore – Senior Portfolio Manager – 2004-2005
• Royal London Asset Management – 2001-2004
• Manager of the award winning Overseas Bond Fund
• Professional Pensions best performing Global Bond Fund 2002, 2003 and 2004
• 1993 – 2001 Nomura, Nikko and Svenska Handelsbanken
• Proprietary trader and market maker in government bond and credit markets
• MA (Hons) from the University of Cambridge in Engineering and Management Studies; CFA
Charterholder
Absolute Rate & Currency: portfolio management team
16
Stuart Frost – portfolio manager
• Joined RWC Partners in September 2010 with Peter Allwright as co-head of the Fixed Income,
Rate & Currency (ARC) Team
• Threadneedle Asset Management – 2007-2010
• Co-manager on all Absolute Return Bond and Macro Funds from inception
• $3bn AUM in absolute return and high alpha strategies
• Absolute Return Bond Fund – AA rated by S&P / A rated by OBSR
• Lloyds TSB Markets – Head of Global Charting - 2006
• Gartmore – Senior Portfolio Manager – 2004-2005
• FX Hedge Fund
• NatWest Markets – 1980-2000• 1992-2000 Established and managed the NatWest Treasury FX chart and fundamental research
team in London
• 1980-1990 Forward FX dealer, Futures trader and Prop Trader in New York
• A regular top 3 winner in the Euro money FX and Greenwich markets survey polls
• Responsibilities for client coverage within research – Europe, UK and Asia
• Qualifications from New York Institute of Finance in Technical Analysis and Bond Markets
• 1994-1997 Guest lecturer in Charting at City University Business School
17
Absolute Rate & Currency: portfolio management team
Alice Leedale – Market Strategist
• Joins RWC Partners in March 2011 as a Market Strategist in the Macro, Rate & Currency (ARC) Team
• Goldman Sachs International – 2006-2009
• Financial analyst in the UK Mergers and Acquisitions Advisory Group
• Extensive experience in financial modelling, company valuation and capital structure analysis
• University of Cambridge – MPhil Economics – 2009-2010
• Specialist subjects: Asset Pricing, International Finance, Monetary Policy
• Dissertation: „Asset Prices and Monetary Policy: Evidence from the UK‟
• University of Oxford – First Class BA (Hons) Economics and Management – 2002-2006
Larry Furness – Market Strategist
• Joined RWC Partners in August 2010 as a graduate recruit
• Joined the Macro, Rate & Currency (ARC) Team in February 2011
• Permal Investment Management – Investment Analyst (Internship) – 2010
• Involved with manager research which included attending Cap Intro events as an Analyst
• Government Economic Service – Assistant Economist (Internship) – 2008
• Graduated in 2009 with an honours bachelor‟s degree in Economics from The University of Nottingham
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Performance of Strategy (Net of Fees)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2005Threadneedle Absolute
Return Bond Fund- - - - - - - - - - 0.20% 0.66% 0.86%
2006Threadneedle Absolute
Return Bond Fund0.42% 0.39% 0.47% 0.33% 0.47% 0.17% 0.08% -0.50% 0.76% 0.42% 0.46% 0.02% 3.55%
2007Threadneedle Absolute
Return Bond Fund-0.21% 1.34% -0.19% -0.34% -0.68% -0.69% 2.76% 1.50% 1.96% 0.89% 0.85% 0.27% 7.64%
2008Threadneedle Absolute
Return Bond Fund2.33% 1.63% 2.63% -2.03% -1.24% -0.34% 0.67% 2.01% 0.89% 1.72% 2.72% 2.59% 14.30%
2009Threadneedle Absolute
Return Bond Fund-0.12% 0.30% 0.31% 0.77% 1.08% 0.55% -0.23% 0.82% 0.11% 0.41% -0.07% -0.10% 3.86%
2010Threadneedle Absolute
Return Bond Fund0.03% 0.03% 0.27% -0.37% -0.43% 0.20%* - - - - - - -0.26%
Source: RWC Partners / Bloomberg.
NAV to NAV net income reinvested. Net of fees
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
*Note. June performance data refers to 1st June 2010 until 29th June 2010
% of up-
months
% of down-
monthsTotal Return
Annualised
ReturnAnnualised Vol Sharpe Ratio
Strategy 73% 27% 33.09% 6.32% 3.39% 0.74
0%
5%
10%
15%
20%
25%
30%
35%
40%
Oct 05
Jan 06
Apr 06
Jul 06
Oct 06
Jan 07
Apr 07
Jul 07
Oct 07
Jan 08
Apr 08
Jul 08
Oct 08
Jan 09
Apr 09
Jul 09
Oct 09
Jan 10
Apr 10
Threadneedle Absolute Return Bond Fund - Institutional Share Class - GBP
Performance of Threadneedle Macro Trading Fund
19
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2008Threadneedle Macro
Trading Fund- - - - - - - - - 0.96% 3.65% 2.11% 6.85%
2009Threadneedle Macro
Trading Fund0.09% 0.31% 1.82% 1.35% 2.07% 0.37% 0.17% 1.43% 0.31% 1.23% 0.66% 0.04% 10.28%
2010Threadneedle Macro
Trading Fund0.65% -0.19% 0.60% -1.20% -1.72% -0.29% - - - - - - -2.16%
Source: RWC Partners / Bloomberg.
NAV to NAV net income reinvested. Net of fees
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested
% of up-
months
% of down-
monthsTotal Return
Annualised
ReturnAnnualised Vol Sharpe Ratio
Strategy 81% 19% 15.29% 8.47% 4.09% 1.79
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Sep 08
Oct 08
Nov 08
Dec 08
Jan 09
Feb 09
Mar 09
Apr 09
May 09
Jun 09
Jul 09
Aug 09
Sep 09
Oct 09
Nov 09
Dec 09
Jan 10
Feb 10
Mar 10
Apr 10
May 10
Jun 10
Threadneedle Macro Trading Crescendo Fund - Class A USD
www.thinkfolio.com
20
Linedata Beauchamp (www.linedata.com)
21
AUD/USD 2001 to date
22Source: Bloomberg
Spot Gold 1981 to date
23Source: Bloomberg
WTI OIC 2001 to date
24Source: Bloomberg
Cotton 1981 to date
25Source: Bloomberg
German BOBL 5 year 1991 to date
26Source: Bloomberg
Gilts 10 year yield 2001 to date
27Source: Bloomberg
US 30 year yield 2001 to date
28Source: Bloomberg
EUR/GBP 2001 to date
29Source: Bloomberg
Dow Jones 1981 to date
30Source: Bloomberg
US 2y/10y 1981 to date
31Source: Bloomberg
Europe 2y vs. 10y 1991 to date
32Source: Bloomberg
US 2y vs. 30y 2001 to date
33Source: Bloomberg
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Contact Us
Please contact us if you have any general questions or would like to discuss any of our strategies
RWC Partners Ltd
60 Petty France
London
SW1H 9EU
Tel: +44 20 7227 6000
Fax: +44 20 7227 6003
Email: [email protected]
35
Risk Warnings & Disclaimers
This document contains information relating to RWC Partners Limited and RWC Asset Management LLP (collectively, “RWC Partners”), each of which is authorised and regulated in the United Kingdom by
the Financial Services Authority (“FSA”), and services provided by them and may also contain information relating to certain products managed or advised by RWC Partners (“RWC Funds”).
RWC Partners may act as investment manager or adviser, or otherwise provide services, to more than one product pursuing a similar investment strategy or focus to the product detailed in this document.
RWC Partners seeks to minimise any conflicts of interest, and endeavours to act at all times in accordance with its legal and regulatory obligations as well as its own policies and codes of conduct.
The services provided by RWC Partners are available only for and this document is directed only at, persons that qualify as Professional Clients or Eligible Counterparties under rules of the FSA. It is not
intended for distribution to and should not be relied on by any person who would qualify as a Retail Client.
In addition, although certain sub-funds of RWC Funds SICAV are recognised schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”), all
other RWC Funds are unregulated collective investment schemes for the purposes the FSMA, the promotion of which either in or from the United Kingdom is restricted by law. Accordingly, this document is
issued and approved by RWC Partners Limited for communication by RWC Partners only to, and is directed only at, persons reasonably believed by it to be of a kind to whom it may communicate financial
promotions relating to unregulated collective investment schemes by virtue of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as
amended (the “Order”), or the Conduct of Business Rules of the FSA. Such persons include: (i) persons outside the United Kingdom; (ii) persons having professional experience of participating in
unregulated collective investment schemes; and (iii) high net worth bodies corporate, partnerships, unincorporated associations, trusts, etc. falling within Article 22 of the Order. Any unregulated collective
investment schemes described herein are available only to such persons, and persons of any other description may not rely on the information in this document.
Where this document is received outside the United Kingdom, it is the responsibility of every person reading this document to satisfy himself as to the full observance of the laws of any relevant country,
including obtaining any government or other consent which may be required or observing any other formality which needs to be observed in that country. Nothing in this document constitutes an offer or
solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Interests in RWC Funds are available only in
jurisdictions where their promotion and sale are permitted.
No person receiving this document may further distribute it, or copies of it, to any other person or publish any of its contents, in whole or in part, for any purpose.
This document is provided for informational purposes only. The information contained in it is subject to updating, completion, modification and amendment. RWC Partners does not accept any liability
(whether direct or indirect) arising from the reliance on or other use of the information contained in it. The information set out in this document is to the reasonable belief of RWC Partners, reliable and
accurate at the date hereof, but is subject to change without notice. In producing this document, RWC Partners may have relied on information obtained from third parties and no representation or guarantee
is made hereby with respect to the accuracy or completeness of such information. Performance figures and data analysis within this document are shown and calculated net of fees and expenses and
represent the reinvestment of dividends and income. Market index information shown within this document is included to show relative market performance for the periods indicated and not as standards of
comparison. Such broadly based indices are unmanaged and differ in numerous respects from the portfolio composition of RWC Funds.
This document does not constitute offer or solicitation to anyone in any jurisdiction of or to acquire interests in any RWC Fund. Investment in any RWC Fund should be considered high risk. Past
performance is not a reliable indicator of future results and may not be repeated. The value of investments in RWC Funds and the income from them may fall as well as rise and may be subject to sudden
and substantial falls. Changes in rates of exchange may cause the value of such investments to fluctuate. An investor may not be able to get back the amount invested and the loss on realisation may be
very high and could result in a substantial or complete loss of the investment. In addition, an investor who realises their investment in RWC Funds after a short period may not realise the amount originally
invested as a result of charges made on the issue and/or redemption of such investment. The value of such interests for the purposes of purchases may differ from their value for the purpose of
redemptions. No representations or warranties of any kind are intended or should be inferred with respect to the economic return from, or the tax consequences of, an investment in RWC Funds. Current tax
levels and reliefs may change. Depending on individual circumstances, this may affect investment returns. There is no guarantee that the securities referred to in this document will be held by RWC Funds in
the future. Nothing in this document constitutes advice on the merits of buying or selling a particular investment. This document does not constitute investment, legal or tax advice.
This document expresses no views as to the suitability or appropriateness of the RWC Funds or any other investments described herein to the individual circumstances of any recipient. Potential investors in
the RWC Funds should refer to the latest relevant Full Prospectus, Simplified Prospectus and latest Annual and Interim Reports for more information.
A United Kingdom investor may not have the right (otherwise provided under the FSA Handbook of Rules and Guidance) to cancel any agreement constituted by acceptance by or on behalf of an RWC
Fund of an application for interests in an RWC Fund. In addition, most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in an RWC Fund.
Shareholders in an RWC Fund will not receive compensation under the Financial Services Compensation Scheme in the United Kingdom in the event that the fund is unable or likely to be unable to satisfy
claims against it.
This document is issued by RWC Partners Limited, a company registered in England and Wales (No. 03517613) with its registered address at 60 Petty France, London SW1H 9EU.