Ignis Absolute Return Credit FundChris Bowie, Head of Credit Portfolio ManagementCitywire MontreuxMay 2012
Ignis Absolute Return Credit FundMay 12Agenda   Ignis credentials   New fund launch - overview   Process   Trade strategie...
Ignis credentialsMay 12Ignis                                                                                              ...
Ignis credentialsMay 12Ignis Fixed IncomeFlexibility applied to fixed income challenges                                   ...
Ignis credentialsMay 12Ignis Credit: investment in talent                              Role         Years’ experience Year...
Ignis credentials May 12Ignis Credit: strong credentials                                                                  ...
New fund launch - overview     This fund is still subject to full regulatory approval and therefore all information is sub...
New fund launch - overview  May 12 Absolute Return Credit    Designed to deliver:                                       In...
New fund launch - overviewMay 12We believe…   Credit markets are not perfectly efficient and pricing inefficiencies exist ...
Process          10
ProcessMay 12Investment process: simplicity and pragmatism                                               Idea generation f...
ProcessMay 12Generate Idea generation comes from analysts Focused universe of global crossover credits                   ...
ProcessMay 12Generate / Challenge Identifying relative value opportunities                                      Snapshot o...
ProcessMay 12Challenge / Decide                Identify best ideas   Regular meetings and ongoing debate to ensure optimal...
ProcessMay 12Implement Sizing trades                                                                                      ...
ProcessMay 12Monitor            Portfolio construction and risk management Existing holdings constantly monitored, rationa...
Trade strategies
Trade strategiesMay 12Isolating α in a bear market                                                            650         ...
Trade strategiesMay 12Isolating α in a bear market                                                            650         ...
Trade strategiesMay 12Hedging market risk                                                              600                ...
Trade strategiesMay 12Hedging market risk                                                                600              ...
Trade strategiesMay 12Implementing risk controls                                                              300Research ...
Trade strategiesMay 12Implementing risk controls                                                              300Research ...
Performance(Based on paper portfolio)
Performance      May 12      Steady returns in volatile markets %                                                         ...
Performance   May 12  Positive skew of returns                                                                       ARC h...
PerformanceMay 12Market neutrality  Uncorrelated to other risk assets                                         MSCI        ...
Ignis Absolute Return Credit FundMay 12What sets our absolute return strategy apart?         Alpha not beta               ...
Ignis Absolute Return Credit Fund May 12 Fund facts   Mandate designed to isolate alpha in line with client needs   CDS ...
Ignis Absolute Return Credit FundMay 12Fund profile Fund manager                               Chris Bowie Expected laun...
Appendix: credit team
Ignis Absolute Return Credit Fund May 12 Ignis Credit: multi-specialist team                  Years in                    ...
Ignis Absolute Return Credit FundMay 12Credit portfolio management teamChris Bowie    Chris Bowie is Head of Credit Portfo...
Ignis Absolute Return Credit FundMay 12Credit portfolio management teamKenny Watson    Kenny Watson is a Credit Portfolio ...
Ignis Absolute Return Credit FundMay 12Credit research teamDavid Meade    David Meade is Head of Credit Research. He joine...
Ignis Absolute Return Credit FundMay 12Credit research teamNadia El-Alaoui   Nadia El-Aloui is a Credit Analyst with respo...
Ignis Absolute Return Credit FundMay 12Credit research teamJanaka Nanayakkara   Janaka Nanayakkara is a Credit Analyst wit...
Ignis Absolute Return Credit FundMay 12Glossary   Pairs trade – an investor identifies two historically correlated credits...
Ignis Absolute Return Credit FundMay 12Contact us         Your main contact                                               ...
Ignis Absolute Return Credit FundMay 12Disclosure          This information is intended for professional clients and inves...
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Ignis asset management

  1. 1. Ignis Absolute Return Credit FundChris Bowie, Head of Credit Portfolio ManagementCitywire MontreuxMay 2012
  2. 2. Ignis Absolute Return Credit FundMay 12Agenda Ignis credentials New fund launch - overview Process Trade strategies Performance Appendix 2
  3. 3. Ignis credentialsMay 12Ignis Key facts Founded in 1899Pragmatic: outcome-focused and innovative Part of the Phoenix Group AuM: €97.6bn*Talent driven: creative and passionate people who 140 investment professionalslook at the world differentlyBuilding on our heritage: evolving to address client Ignis capabilities**needs in a changing world Fixed Real Equities Income Estate €12.4bn €65.3bn €3.9bnAligned with clients: we are co-investors Advisors Solutions Partners (FoF/Alts) (LDI/ALM) (JVs) €2.3bn €2.2bn €2.6bn*Source: Ignis at 31/12/11. Includes assets under management of €88.7bn (including €12.9bn of stock-lending collateral) and assets overseen, advised and 3administered by Ignis of €8.9bn. **AuM by business unit/investment capability (31/12/2011)
  4. 4. Ignis credentialsMay 12Ignis Fixed IncomeFlexibility applied to fixed income challenges Direct funds under management - €65.3bn* Experienced team 1% 24% Creative and innovative approach 41% Proprietary technology 6% Led by Ignis CIO Chris Fellingham 28% Rates Liquidity ABS/stock lending Credit Other cash*Source: Ignis at 31/12/2011 4
  5. 5. Ignis credentialsMay 12Ignis Credit: investment in talent Role Years’ experience Years at Ignis BackgroundChris Managing Director & Hedge and buy side experience: 26 2Fellingham CIO Soros Asset Management; Merrill Lynch Head of Credit Buy side experience, plus IT background:Chris Bowie 19 7 Portfolio Management AEGON; Murray Johnstone; National Australia Bank Investment grade and high yield analysis; rating Head of CreditDavid Meade 27 3 agency buy and sell side; Fidelity; Morgan Stanley Research International; Standard & Poor’s Credit Portfolio Sell side experience:Adam Walker 14 11 Manager Barclays Stockbrokers Investment grade, emerging market and bank Head of Money MarketMichael Ewing 24 3 analysis: Epic Asset Management; Visa Research International, UBS; NomuraSource: Ignis at 30/03/2012 5
  6. 6. Ignis credentials May 12Ignis Credit: strong credentials 3 year performance of Ignis Corporate Bond Fund** 70 €16.0bn AUM* creates top tier access 64.6% to new issues and market flows 60 Ignis Corporate Bond IMA £ Corporate Bond 50 Experienced team with a range of backgrounds 40 39.6% 30 Proven, long-term credit record 20 Chris Bowie AAA rated by Citywire# 10 0 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12*Source: Ignis at 31/12/11. **Lipper bid to bid, net income reinvested to from 31/03/2009 to 30/03/2012. Past performance is not a guide to the future.The value of units and any income from them can fall as well as rise and is not guaranteed. #Rating at 31/03/2012. The Fund is an authorised unit trustscheme under section 243 of the Financial Services & Markets Act 2000 and is categorised under the Collective Investment Scheme source book as aUCITS fund. It is a long-only corporate bond fund and is not registered for distribution outside of the UK. 6
  7. 7. New fund launch - overview This fund is still subject to full regulatory approval and therefore all information is subject to change 7
  8. 8. New fund launch - overview May 12 Absolute Return Credit Designed to deliver: Investing in: Targeting:  Pure alpha  Best research ideas  Cash +5%*  Market neutrality  Global opportunities  Low volatility  Positive performance  Investment grade to  Low correlation with in all market high yield credit traditional asset conditions  Liquid CDS as part of classes  Zero duration risk pair trading strategy  High information ratio (10-30 pairs)*Target gross of fees; the cash rate is based on the overnight rate. This is the rate that large banks use to borrow from, and lend to, one another on the 8overnight market. In Europe this is EONIA (the European Over Night Index Average) . Fund details subject to regulatory approval.
  9. 9. New fund launch - overviewMay 12We believe… Credit markets are not perfectly efficient and pricing inefficiencies exist that can be exploited to the clients’ advantage ‘Only invest in what you know’: significant value can be added by a focused, bottom-up approach; broad market ownership unnecessary Focused, experienced teams are best placed to maximise investment opportunities The best way to run a market neutral credit fund is to employ a pair trading strategy 9
  10. 10. Process 10
  11. 11. ProcessMay 12Investment process: simplicity and pragmatism Idea generation from detailed research Generate Profits taken/stop loss Trade propositions Monitor Challenge activated/positions closed debated and filtered Implement Decide Most profitable opportunities Positions sized to historic selected and appropriate volatility and stop loss set hedge determined 11
  12. 12. ProcessMay 12Generate Idea generation comes from analysts Focused universe of global crossover credits Years in Analysts Sector Background industry Sector specialisms enable analysts to identify the David Autos, consumer, Fidelity, Morgan 27 most profitable opportunities Meade industrial Stanley, S&P Research agenda set by Head of Credit Research Michael Money market 24 Epic, UBS Ewing research Ideas sourced from: Rosalie 12 Banks BGI, Fitch Pinkney - meeting companies Secured, energy, - primary company research Albane Poulin 6 Insight utilities Nadia El - evolving market prices 6 TMT, materials WestLB, Lehman Alaoui Gordon 5 Insurance, banks Towers Watson Shannon 12
  13. 13. ProcessMay 12Generate / Challenge Identifying relative value opportunities Snapshot of bonds filtered by criteria Credit yield curveSuperior proprietary technology: Enables all pricing dislocations to be isolated and analysed Contains daily spread data back to 2003 Cross-references market and Spread of bond versus sector regression Ratings’ spread history stock news to price moves 13
  14. 14. ProcessMay 12Challenge / Decide Identify best ideas Regular meetings and ongoing debate to ensure optimal portfolio positioning Proposition Challenge Decide Ideas reviewed and Analysts put forward tested by heads of investment rationale: • Most profitable portfolio • performance opportunities selected management and drivers/catalyst (10-30 pairs at any one credit research • suitable hedge instrument time) (to eliminate market risk) • Suitable position size set • price target/time-horizon • Exit strategy determined • downside case/stop-loss Idea to be refined Portfolio • Existing holdings reviewed construction • expected pay-off stage 14
  15. 15. ProcessMay 12Implement Sizing trades Scenario analysis: trade sizer 500 Hedge ratio Hedge ratio tailored to eliminate calculated from 400 latest prices market beta 300 Hedge ratio calculated from CDS bps 200 spreads of pair (including cost of the hedge) +1 STD 100 Historic volatility of the pair 0 calculated based on that ratio Historic volatility -100 Maximum position sized to 1 -1 STD month’s standard deviation of -200 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 historic volatility of the pair Credit 1 (actual spread) Credit 2 (size-adjusted spread) Difference +1 STD Monthly -1 STD Monthly Monthly Suggested hedge ratio 1:0.651 Suggested trade size (hedge size) 10.6% P&L on 1 Std. Dev move* 0.4992% Source: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 15
  16. 16. ProcessMay 12Monitor Portfolio construction and risk management Existing holdings constantly monitored, rationale Stop-loss challenged - soft stop-loss at -25bp of fund Liquidity risk - automatic close-out at -50bp of fund - CDS quotes from two or more counterparties Leverage - spread “margin of safety” in low liquidity markets - fund market exposures capped at 3x (currently 2x) Volatility risk Diversification - 6% annualised volatility limit (2-6% target) - not for its own sake currently being run at 2-3% - diversification of trade types, by industry and Hedge ratio contribution monitored and adjusted if sector volatility between the pair changes from inception Monitor gross sold protection 16
  17. 17. Trade strategies
  18. 18. Trade strategiesMay 12Isolating α in a bear market 650 600 ContinentalResearch insight: 550 500 Peugeot Continental better credit than 450 Bps Peugeot 400Action taken: 350 300 Long Continental CDS vs short 250 Peugeot CDS 200 May 11 Jun 11 Jul 11 Aug 11 Continental Peugeot  Globally diverse  Domestic French  Strong cash flows focus  Improving credit  Poor product line profile  Weak balance sheetSource: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 18
  19. 19. Trade strategiesMay 12Isolating α in a bear market 650 600 ContinentalResearch insight: 550 500 Peugeot Continental better credit than 450 Peugeot Bps 400Action taken: 350 300 Long Continental CDS vs short 250 Peugeot CDS 200 May 11 Jun 11 Jul 11 Aug 11Outcome: 90 Both stocks widen by over 80 Difference between the two credits stocks 300bps 70 Gap between them narrows 60 from +70 to +15: 50 Bps making money 40 Lost €989,721 (long) 30 Gained €1,312,814 (short) 20 Overall profit €323,093 (32bps) 10 0 May 11 Jun 11 Jul 11 Aug 11Source: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 19
  20. 20. Trade strategiesMay 12Hedging market risk 600 BOAResearch insight: 500 JPM Bank of America debt 400 considered cheap whereas JP Bps 300 Morgan quality debt 200 overpriced 100 Significant gap between credits 0Action taken: Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Long Bank of America vs short JP Morgan Bank of America JP Morgan  Perceived to be  Strong earnings profile weaker than peers  Well regarded within  Asset quality not peer group priced in by market  Already at full  Expected spread to valuation given narrow substantially tightness of spreads Source: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 20
  21. 21. Trade strategiesMay 12Hedging market risk 600 BOAResearch insight: 500 JPM Bank of America debt 400 considered cheap whereas JP Bps 300 Morgan quality debt 200 overpriced 100 Significant gap between credits 0Action taken: Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Long Bank of America vs short Difference between the two credits stocks JP Morgan 300Outcome: Spread narrowed by 44bps 250 Lost €163,974 (short) Bps 200 Gained €507,249 (long) 150 Overall profit €373,275 (37bps) 100 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Source: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 21
  22. 22. Trade strategiesMay 12Implementing risk controls 300Research insight: Enel Exit point 250 Enel had been trading at Endesa superior valuation to Endesa 200 Sovereign concerns regarding Bps 150 Italy led to Enel trading at similar 100 valuation to Endesa Entry point Anticipated Enel would revert to 50 its superior valuation 0 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12Action taken: Implemented long position in Enel and short position in Enel Endesa Endesa when difference  100%-owned between credits neared zero  Considered to be a subsidiary of Enel stronger credit  Overvalued; than Endesa anticipated  Strategically weakness versus important to Italy its parent Source: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 22
  23. 23. Trade strategiesMay 12Implementing risk controls 300Research insight: Enel Exit point 250 Enel had been trading at Endesa superior valuation to Endesa 200 Sovereign concerns regarding Bps 150 Italy led to Enel trading at similar 100 valuation to Endesa Entry point Anticipated Enel would revert to 50 its superior valuation 0 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12Action taken: Implemented long position in 100 Difference between the two credits Enel and short position in 80 Endesa when difference 60 between credits neared zero 40Outcome Bps 20 Market moved against the trade 0 and position reviewed when soft -20 stop loss (-25bps) breached -40 Position cut at this point (-29bps) Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12 Source: data based on Ignis’ paper portfolio. All data for illustrative purposes only. 23
  24. 24. Performance(Based on paper portfolio)
  25. 25. Performance May 12 Steady returns in volatile markets % Performance107 Absolute Return Credit (paper portfolio - gross*) 6.12%106 Absolute Return Credit (paper portfolio - net**) 5.79%105 EONIA104103102101 0.67%10099 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 127% Volatility*6%5%4%3%2% Annualised Rolling 21 Day Vol1% Vol Ceiling0% May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 *Source: data based on Ignis’ paper portfolio gross of fees (27/05/2011 to 25/04/2012). ** Source: data based on Ignis’ paper portfolio inc cash return and AMC but ex performance fee 25 and fixed costs (27/05/2011 to 25/04/2012). All data for illustrative purposes only. Fund launch subject to regulatory approval. Past performance is not a guide to future performance.
  26. 26. Performance May 12 Positive skew of returns ARC histogram of daily returns 50 45 6.4% indicative annualised return 40 35 1.9% indicative annualised volatility 30Frequency VaR* (99.5%) -0.166% 25 20 Currently 1.5x levered 15 10 5 0 -1.00% -0.70% -0.60% -0.50% -0.40% -0.30% -0.25% -0.20% -0.15% -0.10% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.40% 0.50% 0.60% 0.70% 1.00% Source: data based on Ignis’ paper portfolio gross of fees (27/05/2011 to 25/04/2012). All data for illustrative purposes only. Fund launch subject to regulatory 26 approval. * Annualised VaR at 99% confidence level daily, based on paper portfolio since inception. Past performance is not a guide to future performance.
  27. 27. PerformanceMay 12Market neutrality Uncorrelated to other risk assets MSCI Correlation, % ARC Fund WGBI EGBI Global HY EMBI USD ARGBF World 100 ARC Fund 1.00 80 60 MSCI World 0.00 1.00 40 WGBI 0.00 0.33 1.00 20 0 EGBI 0.00 0.12 0.73 1.00 -20 Global HY 0.02 0.39 0.12 0.04 1.00 -40 -60 EMBI USD 0.00 0.21 0.03 0.01 0.60 1.00 -80 ARGBF 0.00 0.26 0.20 0.10 0.08 0.03 1.00 -100Source: data based on Ignis’ paper portfolio gross of fees (27/05/2011 to 25/04/2012). All data for illustrative purposes only. 27Fund launch subject to regulatory approval. Past performance is not a guide to future performance.
  28. 28. Ignis Absolute Return Credit FundMay 12What sets our absolute return strategy apart? Alpha not beta Focused process Dynamic team Designed to deliver:  Bottom-up,  Targeted research unconstrained approach- positive performance in all market conditions  High conviction global  Analysts sit with holdings portfolio managers- market neutrality  Risk management  Optimal size:- zero interest rate risk embedded within experienced and process; robust decisive controls  Pragmatic 28
  29. 29. Ignis Absolute Return Credit Fund May 12 Fund facts  Mandate designed to isolate alpha in line with client needs  CDS pair trading fund  No beta risk: no yield curve, duration or market exposure  Target: cash + 5%*  Volatility ceiling: 6%  Stop-loss methodology: checks undertaken at 25bps loss then position cut at 50bp loss  Leverage ceiling: 3x*Target gross of fees; cash measured by EONIA. Fund details subject to regulatory approval. 29
  30. 30. Ignis Absolute Return Credit FundMay 12Fund profile Fund manager Chris Bowie Expected launch date Summer 2012 Structure UCITS IV SICAV Domiciled Luxembourg Benchmark EONIA^ Liquidity Daily dealing Minimum investment EUR A Class: €1,000 EUR I Class: €1,000,000 Annual management fee EUR A Class: 1% EUR I Class: 0.5% Performance fee* Fund manager is entitled to 10% of performance generated above EONIA^ with a high water mark^This is the rate that large banks use to borrow from, and lend to, one another on the overnight market. *Performance fee is net of fees, over 30 compounded cash rates and subject to a high water mark. Fund details subject to regulatory approval and is subject to change.
  31. 31. Appendix: credit team
  32. 32. Ignis Absolute Return Credit Fund May 12 Ignis Credit: multi-specialist team Years in Portfolio Years inAnalysts Sector Background Sector Background industry managers industryDavid Autos, consumer, Fidelity, Morgan 3rd party, fixed AEGON, Murray 27 Chris Bowie 19Meade industrial Stanley, S&P ABS JohnstoneMichael Money market Adam Retail, non- 24 Epic, UBS 14 BarclaysEwing research Walker financialsJanaka Chalkhill, M&G, Minet, Trade 15 ABS Phil Heaney 21 FinancialsNanayakkara Investec Indemnity, West LBRosalie Kenny 12 Banks BGI, Fitch 17 High yield Murray JohnstonePinkney WatsonScott 8 ABS Fitch, Shell AM Matt Guzzo 6 Floating rate ABS Hypo Real EstateDuggal Secured, energy,Albane Poulin 6 Insight utilitiesNadia El 6 TMT, materials WestLB, LehmanAlaouiGordon 5 Insurance, banks Towers WatsonShannonMatt Money market 2 KPMGCreamer research*Source: Ignis at 31/03/12 32
  33. 33. Ignis Absolute Return Credit FundMay 12Credit portfolio management teamChris Bowie Chris Bowie is Head of Credit Portfolio Management. Chris joined Ignis in 2004 and oversees a team of five credit portfolio managers. He has 19 years’ credit market experience including Head of Rates at AEGON and senior positions at Murray Johnstone. Chris has a BA (Hons) in Economics from Strathclyde University.Adam Walker Adam Walker is a Credit Portfolio Manager with specific responsibility for industrial credit and retail portfolios. He joined Ignis in 2000 and has 14 years’ credit market experience having worked at Barclays Stockbrokers. Adam has an MSc in Operational Research and a BSc in Aerospace Engineering from Strathclyde UniversityPhil Heaney Phil Heaney is a Credit Portfolio Manager with specific responsibility for financial funds. He joined Ignis in 2001 and has 21 years’ credit market experience having held positions at West LB, Minet and Trade Indemnity. Phil has a BA in Risk Management from Glasgow Caledonia University. 33
  34. 34. Ignis Absolute Return Credit FundMay 12Credit portfolio management teamKenny Watson Kenny Watson is a Credit Portfolio Manager with specific responsibility for high yield and high income funds. He joined Ignis in 1998 and has 17 years’ credit market experience having held positions at Murray Johnstone and Clydesdale Bank. Kenny has a BA in Accounting and Economics from Strathclyde University and is a Chartered Accountant.Matthew Guzzo Matthew Guzzo is a Credit Portfolio Manager with specific responsibility for structured finance. He joined Ignis in 2011 and has 6 years’ credit market experience having held positions at Hypo Real Estate Group and Deloitte & Touche. Matthew holds an MA in Economics from Michigan State University and a BA in Economics from Syracuse University. 34
  35. 35. Ignis Absolute Return Credit FundMay 12Credit research teamDavid Meade David Meade is Head of Credit Research. He joined Ignis in 2008 and has 27 years credit markets experience having held positions on the sell-side, buy-side and with a major rating agency. He has had senior analytical roles covering a broad range of global industrial sectors in both investment grade and high yield credits at Morgan Stanley, Standard & Poor’s and Fidelity, where he was Head of Credit Research. At Morgan Stanley he was consistently highly-ranked in credit industry surveys. He has worked in London, New York and Hong Kong and speaks French and German. David has an MA in French and German from Cambridge University and is a Chartered Financial Analyst.Michael Ewing Michael Ewing is Head of Money Market Research. He joined Ignis in 2008 and has 24 years’ credit market experience, spent predominantly in bank research in developed and emerging markets. Previously Michael held positions at Epic Asset Management, UBS and Nomura. He has worked in London and Australia.Rosalie Pinkney Rosalie Pinkney is a Credit Analyst with prime responsibility for global bank credit research. She joined Ignis in 2010 and has 12 years’ credit market experience having previously held positions as a Senior Bank Analyst at Barclays Global Investors and at Fitch Ratings. Rosalie has a BA in French and Russian from Bristol University and is fluent in Spanish. She has worked in London and Barcelona. 35
  36. 36. Ignis Absolute Return Credit FundMay 12Credit research teamNadia El-Alaoui Nadia El-Aloui is a Credit Analyst with responsibility for the communications sector (TMT) and a number of other industrial credits. She joined Ignis in 2012 and has 9 years’ financial experience of which 6 have been directly involved in European investment grade and high yield credit markets. Prior to joining Ignis, Nadia worked at Lehman Brothers, West LB Mellon and Ernst & Young. Nadia has an MA in Economic from the Goethe University in Frankfurt. Nadia is a German national and speaks French and Arabic. She has worked in London, Frankfurt and Düsseldorf.Albane Poulin Albane Poulin is a Credit Analyst with responsibility for a number of industrial sectors, including utilities, infrastructure and fixed-rate ABS credits. He joined Ignis in 2011 and has 6 years’ credit market experience having previously worked at Insight Investment Management. Albane has an MA in Finance in International Trade from the Université Montesquieu in Bordeaux. Albane is a French national and has worked in London and Paris.Gordon Shannon Gordon Shannon is a Credit Analyst and has specific responsibility for insurance and bank credits. He joined Ignis in 2007 and has 5 years’ credit market experience having previously spent 2 years at Watson Wyatt. Gordon has a BA in Economics from Cambridge University and is a Chartered Financial Analyst. 36
  37. 37. Ignis Absolute Return Credit FundMay 12Credit research teamJanaka Nanayakkara Janaka Nanayakkara is a Credit Analyst with prime responsibility for commercial mortgage-backed securities (CMBS). He joined Ignis in 2012 and has 15 years’ credit market experience having previously been a partner at Chalkhill Partners and held senior positions in CMBS and real estate investment at M&G and Investec. Janaka has a Master of Commerce from the University of Sydney. He has worked in London and Australia.Scott Duggal Scott Duggal is a Credit Analyst with specific responsibility for residential mortgage-backed securities and collateralized debt obligations (CDOs). He joined Ignis in 2009 and has 8 years’ credit market experience having previously held positions as a Director in Fitch’s structured credit research department and at Shell Asset Management. Scott has an MSc in Investment Management from the Cass Business School and a BSc in Computer Science and Management from Kings College, London. He has worked in London and The Hague.Matthew Creamer Matthew is a Credit Analyst with responsibility for a number of financial institutions. He joined Ignis in 2008 and has recently joined the credit team. Previously he held positions at Alliance Bernstein and KPMG. Matthew has a BA in Geography with Economics from the University of Leeds. 37
  38. 38. Ignis Absolute Return Credit FundMay 12Glossary Pairs trade – an investor identifies two historically correlated credits where the relative value between the two has diverged. In buying one and selling the other, the investor hopes to generate profits from a further change in the relative value (either a widening or tightening of the spread). The direction of the broader market is irrelevant to a pair trade – it is the relative change in value of the two legs of the trade that will result in a gain or a loss. A pair trade is therefore market neutral Credit default swaps (CDS) – When buying a CDS, a fund will pay a premium to a counterparty to gain protection against a credit event, such as a default or a restructuring. If there is a credit event, the fund will receive the equivalent value even if the price of the underlying cash bond falls. When selling a CDS, a fund will receive a premium to provide the counterparty with protection against a credit event. If there is a credit event the fund will pay the equivalent value. CDS therefore provide exposure to a rise or fall in the value of a credit without the need to actually own (or short) the cash bond. CDS carry separate risks to cash bonds, namely counterparty risk, but do not carry the duration risk of the cash equivalent. Positions are collateralized by cash on a daily basis. Volatility - a measure of the variation in the size of the change in price of a security or fund. Used as a measure of the riskiness of an investment. Counterparty – Each trade has two sides, a buyer and a seller. The counterparty is the other side of the trade, so if you are a buyer, you will need to find a counterparty willing to sell. 38
  39. 39. Ignis Absolute Return Credit FundMay 12Contact us Your main contact Your regional support France and Switzerland (French) Philip Goldsmith, Managing Director Europe Mob: +41 (0)79 753 35 74 / +44 (0)7836 243 999 Email: philip.goldsmith@ignisasset.com Business Development Executive Johanna Pollet Iberia and Latin America Tel: +44 (0)20 3003 3128 Mauro Loran Garcia, Regional Director Email: johanna.pollet@ignisasset.com Mob: +34 (0)616 463 917 Email: mauro.loran@ignisasset.com Germany, Austria and Switzerland (German) André Haubensack, Regional Director Mob: +41 (0)79 373 79 13 European Sales Support Manager Email: andre.haubensack@ignisasset.com Dee Clarkin Tel: +44 (0)20 3003 3127 Benelux Email: dee.clarkin@ignisasset.com Ghislaine Fournigault, Regional Director Tel: +44 (0)20 3003 3125 Email: ghislaine.fournigault@ignisasset.com Italy and Ticino Business Development Executive Arcangelo Barletta, Regional Director Riccardo Villa Mob: +39 (0)392 89 60 736 Mob: +39 (0)347 27 52 557 Email: arcangelo.barletta@ignisasset.com Email: riccardo.villa@ignisasset.com Nordics European Sales Support Manager Philip Goldsmith, Managing Director Europe Dee Clarkin Mob: +41 (0)79 753 35 74 / +44 (0)7836 243 999 Tel: +44 (0)20 3003 3127 Email: philip.goldsmith@ignisasset.com Email: dee.clarkin@ignisasset.comTelephone calls may be monitored and/or recorded for the purpose of security, internal training, accurate account operation, internal customer 39monitoring and to improve the quality of service.
  40. 40. Ignis Absolute Return Credit FundMay 12Disclosure This information is intended for professional clients and investment professionals only and should not be relied upon by retail investors. The opinions expressed here represent the views of the fund manager at the time of preparation and should not be interpreted as investment advice. Distribution of this document and the offering of shares in certain jurisdictions may be restricted by law and accordingly persons into whose possession this document comes are required to inform themselves about and to observe such restrictions. This document does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Past performance is not a guide to future performance. The fund takes long and short positions synthetically through derivatives (derivatives carry certain risk which will be explained in the Prospectus upon fund launch). This means the fund’s performance is unlikely to track the performance of broader bond and equity markets. While this creates the opportunity for the fund to deliver positive returns in falling markets, it also means that the fund could deliver negative returns in rising markets. The value of investments and any income from them can fall as well as rise and is not guaranteed. Exchange rate movements may cause the value of investments to fluctuate. The Ignis Corporate Bond Fund is an authorised unit trust scheme under Section 243 of the Financial Services and Markets Act 2000 and is categorised under the Collective Investment Schemes Sourcebook as a UCITS Fund. It is a long only Corporate Bond Fund. It is not registered for distribution out with the UK. The Ignis Absolute Return Credit Fund will seek regulatory approval to be established as a sub-fund of Ignis Global Funds SICAV, an investment company organised under the laws of the Grand Duchy of Luxembourg as a Self Managed SICAV This document has been issued by Ignis Investment Services. Ignis Investment Services is registered in Scotland Number SC101825. Registered Office: 50 Bothwell Street, Glasgow G2 6HR. Authorised and regulated in the United Kingdom by the Financial Services Authority. 40

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