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• 63 personnel of which nearly half are investment professionals• Product focus: UCITS III & non-UCITS high alpha & absolute return funds2
Introduction to RWC Europe Absolute Alpha• Long / Short, pan-European equity strategy • Strategy first launched in 2003 at JPMorgan Asset Management • Launched strategy in offshore form at RWC Partners in October 2007 • Launched UCITS III Fund in July 2010• Fund aims to make significant returns with a low correlation to the equity markets • Historically has achieved over 13.9% annualised return through the life of the strategy with a volatility of 7.8% • Over the same period MSCI Europe index has achieved 4.8% annualised returns with 15.5% volatility• Key differentiators of the approach are: • A unemotional approach to equity investing – avoiding: • Market noise & crowded, thematic trades • Emotional attachment to company stories and personalities • A clear methodology for narrowing the universe to a small subset of opportunities • Focuses research on money making opportunities • Maximises the exposure to the team‟s competitive advantages• The approach provides good diversification from traditional fundamental & thematic stock pickers Please note that throughout the presentation data will be shown from RWC Samsara. The fund is a monthly dealing, Cayman Islands domiciled fund. The investment ideas will be virtually identical to those that will be used in RWC Europe Absolute Alpha but investors should expect a tracking error between the two strategies resulting from different structures and terms3
European Equities: portfolio management teamAjay Gambhir – portfolio manager• Joined RWC Partners as a Partner in May 2007 to launch Europe Long / Short hedge fund named RWC Samsara• 10 years JPMorgan Asset Management – Senior Portfolio Manager • Recruited by Peter Harrison • Lead portfolio manager for the highly successful “Dynamic” investment funds • £4bn under management • Top decile performance across the range of funds • Lipper Award for Best Fund Manager 2007 *; “Investment Week” Best Fund Manager, UK Equity Growth 2006 • Launched & Managed JPM Europe Dynamic Long / Short fund** • Winner of Eurohedge award for Best European Hedge Fund 2006***• 7 years at NM Rothschilds in corporate finance, and previously private equity • Working within the Emerging Markets team • Responsible for a variety of projects in Eastern Europe, South Africa & Asia Pacific with a particular focus on the telecoms, media and utilities sectors• Graduated from the University of Cambridge in 1990: MA (Hons) Electrical and Information Sciences; CFA Charterholder * Ajay managed the fund from launch in Sep 2003; as joint manager until Jan 2005, and as sole manager from Feb 2005 until Mar 20074 ** In the sub $500m category *** Award given for 2006 performance
European Equities: portfolio management team• Ajay is responsible for portfolio management including risk positioning and risk management Portfolio Management• All analysts are generalists and Ajay is a key part of the Ajay Gambhir analytical team Analysis Execution & Analytics• Analysts typically have strong background in accountancy, Steve Robertson Amos Dadzie balance sheet analysis, or economics Krishna Chokshi Azlan Ali• Amos and Azlan sit within the broader RWC Operations team and have responsibilities on the support of the Europe Luke Vose Equity funds Nick Daniel Michael Kelley1 Note from time to time the individuals from operations dedicated to the strategy may be changed5 1 CASS Business School 1 year intern
The Power of Compounding – performance since inception of strategy Performance of Strategy since inception versus equity index and hedge index 165% 145% Note: area relates to the period when the portfolio manager was 125% in between companies and was not managing a strategy 105% Cumulative Return 85% 65% 45% 25% 5% -15% Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Cumulative Gambhir long / short Strategy Cumulative MSCI Europe TR Index EUR (monthly) Cumulative CSFB Tremont L/S Equity EUR (monthly) % of up- % of down- Annualised Total Return Annualised Vol Sharpe Ratio Correlation months months Return Strategy 71% 29% 138.4% 13.9% 7.8% 1.5 0.55 Equity Index 60% 40% 37.1% 4.8% 15.5% n/a n/a Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – end October 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the6 whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager. Equity index used is MSCI Europe Index (TR). 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
Positive Skew with Limited Drawdowns Strategy - Distribution of Monthly Returns 20 18 16 14 Months 12 10 8 6 4 2 0 0% 5% 6% 1% 2% 3% 4% 7% 8% 9% -9% -8% -7% -2% -1% -6% -5% -4% -3% 11% 12% 13% 10% 14% 15% -15% -14% -13% -12% -11% -10% Monthly Return Index - Distribution of Monthly Returns 20 18 16 14 Months 12 10 8 6 4 2 0 0% 4% 5% 6% 1% 2% 3% 7% 8% 9% -4% -9% -8% -7% -2% -1% -6% -5% -3% 11% 12% 13% 10% 14% 15% -12% -15% -14% -13% -11% -10% Monthly Return Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – end October 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the7 whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager. Equity index used is MSCI Europe Index (TR). 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
Performance of RWC Europe Absolute Alpha Fund (Net of Fees) RWC Europe Absolute Alpha Fund 6% 5% 4% Cumulative Return 3% 2% 1% 0% -1% Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 RWC Europe Absolute Alpha Fund Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD RWC EAA - - - - - - -0.5%** 0.1% 2.4% 2.7% 1.1%* - 5.8% 2010 MSCI Europe - - - - - - -0.7%** -1.2% 3.4% 2.5% 0.8%* - 4.8% % of up- % of down- Annualised Total Return Annualised Vol Sharpe Ratio Correlation months months Return Strategy 80% 20% 5.8% 18.4% 6.99%*** 2.5 0.8 Equity Index 80% 20% 4.8% 15.0% 14.3%*** n/a n/a Source: RWC Partners / Bloomberg. Data shown is for the period 29 July 2010 – 25 November 2010, net of fees for class B EUR. Equity index used is MSCI Europe Index (TR). *Data shown up-to 25 November 2010 ** July performance date relates only to the last day of July ***Annualised Volatility calculated using daily returns8 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
RWC Europe Absolute AlphaWhat do we do? • Focus purely on specific financial metrics that explain a company‟s dynamics • Management & third parties are only used to explain observations in the financial metrics • Disciplined use of market valuations to ensure asymmetric payoffs • Liquid names ensures investment decisions remain objectiveWhat don‟t we do? • Have dominant single factor, thematic or single stock risk • Become distracted by noise – third party views, opportunistic but non-core ideas • Have an emotional attachment to an idea or a company9
Investment Process – pragmatic, dispassionate and logical Clinical, objective, fundamental analysis coupled with understanding investor‟s behavioural biases Stock Analysis Priorities Exposure Analysis Priorities • Business model assessment (e.g. Dupont, Porter) • Risk positioning (e.g. options skew, implied volatility, surveys • Sensitivities to change (e.g. price elasticity, operational of investor confidence) leverage) • Other asset classes (e.g. bonds, commodities and • Asset and earnings based valuation assessment (e.g. P/B, currencies) EV/S, P/E, Yield) • Economic Outlook (e.g. Purchasing Managers Index, lead • Utilise stock valuation „ceilings‟ and „floors‟ to skew risk and indicators, GDP revisions and yield curve analysis) reward10
Investment Process • Long and short books managed independently to generate positive returns • Research is focused purely on five types of opportunity • “Noise” and emotional influences are reduced to a minimum • This focus ensures maximum efficiency of analytical resource • Changes in sales, margins and balance sheet metrics drive investment opportunities • Valuation provides timing indicators & risk management for positions Three types of LONG opportunity Two types of SHORT opportunity 1. Positive turning points: companies which have suffered 1. Negative turning points: profitable companies where operational difficulties, where analysis implies fortunes either the rate of returns is vulnerable and/or could improve yet valuations imply neglect or bias valuations imply over optimistic future rates of return 2. Undervalued stocks where positive change in either 2. Companies whose franchise is being eroded but the margins or sales is foreseen valuation still appears prima facie reasonable 3. Companies where the growth is under-recognised due to investor inertia and scepticism11
Portfolio Construction & Risk Management Permitted / Maximum Range Typical Exposure Long / short ratio Less than 2.75:1 1.5-1.75:1 Gross Range 50% to 250% 140% to 200% Net Range -50% to +100% -20% to +60% No of Long Positions n/a 50-90 No of Short Positions n/a 50-90 Long Max 10% (at market) Average 1.25%-1.75% Short Max 5% (at market) Average 0.75%-1.25% Illiquids Less than 10% in stocks less than $500m mkt cap Minimal 20% CSSF Maximum VaR(99% / 1 month) <12% 10% Internal Maximum Counterparty Exposure 10% of NAV to any single counterparty n/a Concentration limits Sum of position >5% cannot exceed 40% of NAV n/a • Gross exposure reduced at times of performance stress • Willing to be directional (including net short) • Very limited or no exposure to illiquid stocks • Typically able to liquidate 95% of portfolio within 5 days12
RWC Europe Absolute Alpha – Summary• Long / Short, pan-European equity strategy • Strategy first launched in 2003 at JPMorgan Asset Management • Launched strategy in offshore form at RWC Partners in October 2007• Fund aims to make significant returns with a low correlation to the equity markets • Historically has achieved over 13% annualised return through the life of the strategy with a volatility of 8% • Over the same period MSCI Europe index has achieved 4% annualised returns with 16% volatility• Key differentiators of the approach are: • A unemotional approach to equity investing – avoiding: • Market noise & crowded, thematic trades • Emotional attachment to company stories and personalities • A clear methodology for narrowing the universe to a small subset of opportunities • Focuses research on money making opportunities • Maximises the exposure to the team‟s competitive advantages• The approach provides good diversification from traditional fundamental & thematic stock pickers13
RWC Europe Absolute Alpha – Term Sheet• Launch Date 29th July 2010• Liquidity Daily subscriptions & redemptions / daily NAV• Fees A Share Class 2% AMC / 20% performance fee• Performance Fee HWM Paid quarterly. Share class level high water mark• Performance Fee hurdle EURIBOR (or share class currency 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” – VaR approach to exposure Regulatory limit of max 20% VaR monthly with a 99% confidence level• Administrator Banque Privée Edmond de Rothschild Europe• Instruments used Long positions – cash equities / CFDs Short positions – CFDs• Local Registrations Luxembourg, Germany, UK, Switzerland, Italy*• Tax UK Reporting Status Application will be submitted Daily reporting available for Germany Tax Transparency *Applications will be submitted15
Performance of RWC Samsara since launch Performance of RWC Samsara since inception versus equity index and hedge index 20% 10% 0% -10% Cumulative Return -20% -30% -40% -50% -60% Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 Cumulative RWC Samsara EUR Cumulative MSCI Europe TR Index EUR (since Samsara launch) Cumulative CSFB Tremont L/S Equity EUR (since Samsara launch) Source: RWC Partners. Data shown is for the period 16 th September 2007 – end October 2010, 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 invested16
Performance of Strategy (Net of Fees) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD JPM EDLS - - - - - - - - - 1.6% 0.5% -0.7% 1.4% 2003 MSCI Europe - - - - - - - - - 6.9% 1.1% 2.9% 11.1% JPM EDLS 5.3% 0.2% -2.3% -0.1% -0.2% 0.6% 0.8% 1.6% 3.9% -0.6% 1.7% 0.7% 12.1% 2004 MSCI Europe 2.7% 2.9% -2.0% 1.8% -0.2% -1.7% -0.8% 1.8% 1.9% 1.2% 2.7% 1.9% 12.7% JPM EDLS 4.5% 4.3% 0.5% 0.0% 3.1% 4.9% 1.6% 0.2% 2.7% -0.5% 3.5% 2.9% 31.4% 2005 MSCI Europe 2.3% 3.1% -0.4% -1.7% 5.1% 3.5% 3.3% 0.3% 4.5% -2.5% 3.3% 3.5% 26.8% JPM EDLS 5.8% 4.7% 5.1% 1.5% 0.1% 1.8% 1.6% 0.2% 2.5% 5.0% 0.4% 3.8% 37.4% 2006 MSCI Europe 3.5% 1.9% 2.4% 1.1% -4.4% 0.8% 1.7% 2.9% 1.9% 3.5% -0.2% 3.8% 20.3% JPM / RWC -0.1% 0.1% n/a n/a n/a n/a n/a n/a 0.4% 3.5% 0.1% 1.5% 5.5% 2007 MSCI Europe 2.1% -2.0% n/a n/a n/a n/a n/a n/a 4.2% 2.9% -4.6% -1.4% 1.0% RWC Samsara -1.6% -0.2% -1.1% 2.4% 0.4% -0.8% -1.7% -1.3% -5.6% -0.7% 0.8% 1.7% -7.7% 2008 MSCI Europe -11.5% -0.9% -3.7% 6.5% 0.9% -9.9% -1.9% 1.8% -11.0% -12.8% -6.9% -3.9% -43.2% RWC Samsara 1.7% 2.3% -0.9% 3.2% 0.4% -3.7% 0.9% 5.5% 2.3% -3.8% 1.0% -0.5% 8.2% 2009 MSCI Europe -3.5% -9.3% 2.3% 14.4% 5.2% -1.0% 9.3% 5.1% 2.7% -2.1% 1.2% 6.2% 32.6% RWC Samsara -1.0% 0.5% 2.7% -0.4% -2.9% -0.1% 4.8% 0.4% 2.4% 2.7% 1.1%* - 10.3% 2010 MSCI Europe -2.9% -0.2% 7.5% -0.8% -4.6% -0.5% 5.0% -1.2% 3.4% 2.5% 0.8%* - 5.9% % of up- % of down- Annualised Total Return Annualised Vol Sharpe Ratio Correlation months months Return Strategy 71% 29% 138.4% 13.9% 7.8% 1.5 0.55 Equity Index 60% 40% 37.1% 4.8% 15.5% n/a n/a Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – 25 November 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of17 this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager. Equity index used is MSCI Europe Index (TR). *Data shown up-to 25 November 2010 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
European Equities: portfolio management teamSteven Robertson• Stock analyst with generalist responsibilities• 2000-2007 – sell side analyst at Dresdner Kleinwort and Arden Stockbrokers• 1997-2000 - UBS Warburg, ranked 1st in the Reuters rankings (1999 and 2000) for UK Software and Services• BSc (Hons) Degree in Chemical Physics from Edinburgh University• MSc (Hons) Degree from Cambridge University, and after his post-graduate studies he joined Coopers and Lybrand in Audit.Krishna Chokshi• Stock analyst with generalist responsibilities• 2008-2009 – Societe Generale, analyst in the European financial sector• 2004-2007 – PricewaterhouseCoopers• Qualified as an accountant in the Banking and Capital Markets Assurance Division• Responsible for leading parts of key client engagements such as the Money Markets business within Barclays Capital• Graduated in 2004 from the London School of Economics with a First Class honours bachelor‟s degree in Accounting and Finance.18
European Equities: portfolio management teamLuke Vose• Stock analyst with generalist responsibilities, CFA• 2005-2010 – PricewaterhouseCoopers, Manager in the Valuations group • Leading on business and intangible asset valuation • Primary focus on valuation in mergers and acquisitions, demergers and disposals • Broad cross-sector experience: industrial, retail, business services, real estate, automotive and pharmaceutical• Graduated in 2004 from Lancaster University with a First Class honours bachelor‟s degree in Business AdministrationNick Daniel• Portfolio assistant with dealing, stock screening and analytical responsibilities• 2004-2010 – Senior equities & derivatives dealer, JM Finn & Co • Dealing global equities, fixed income and foreign exchange • Provided quantitative screening support for the firm‟s global fund• 2000-2004 – Equities and derivatives broker, Lewis Charles Securities• Graduated in 1999 with an honours bachelor‟s degree in Economics from University of London, Queen Mary & Westfield College19
Risk Management Portfolio Risk Management Internal Risk Management & Oversight • Non-thematic style avoids single factor exposure • Separation of compliance, risk monitoring & portfolio management • Portfolio risk focused at a stock level – over 50 positions on each side • Independent review of all transactions on a daily basis. • Portfolio analytics function gives output on a wide range of • Dedicated risk management tools employed to monitor portfolio level risks and attribution numerous risk factors and ad hoc analysis • Fund is highly liquid with position sizes matched to stock • CEO monitors consistency of risk taking and style attributes liquidity and meets with portfolio manager regularly Independent Fund Monitoring Corporate Risk Management • Revenue is diversified across investment teams, products • RWC Asset Management LLP act as the fund‟s advisor and clients. Less than 50% of client assets are hedge funds. • BPERE (Rothschild) are independent administrator & • Business is managed to be profitable before performance custodian fees are generated • Deutsche and UBS act as prime brokers • Independent compliance monitoring firm, IMS, complete full compliance review bi-annually • AB Fund Services appointed for local Luxembourg and • Front end order management system (with trip wires and full UCITS oversight audit trail), Latent Zero, being implemented • Counterparty exposure limited to 10% of NAV • Daily production and reconciliation of NAVs • Daily cash reconciliation • Independent Board of Directors speak with portfolio manager and CEO once a quarter20
Unconstrained long only funds historically managed by Ajay Gambhir• JPM UK Dynamic • $1.2bn (February 2007) • AAA rated by Forsyth-OBSR • AA rated by Standard & Poor‟s • S&P 5 stars • Over 5 years up until 31.12.06 the fund returned 107.1% net of fees compared to 49.9% for the FTSE-All Share benchmark, placing it in the top 10 funds out of 214 in its peer group• JPM Europe Dynamic (ex UK) • $362m (February 2007) • AAA rated by Forsyth-OBSR • AA rated by Standard & Poor‟s • Since inception up until 31.12.06 the fund returned 94% compared to the FTSE W.Europe benchmark return of 64.3%, placing it 2nd out of 89 funds in its peer group• JPM Europe Dynamic • $2.08bn (February 2007) • AA rated by Standard & Poor‟s • S&P 5 stars • Over 5 years up until 31.12.06 the fund returned 79.3% compared to the FTSE W.Europe benchmark return of 35.1%, placing it 10th out of 235 funds in its peer group21
RWC Partners – company structure Board of Directors Chief Executive Of f icer Peter Harrison Management Committee Investment Teams Finance Risk Management Europe Equity US Equity Chris Maude Peter Harrison Ajay Gambhir Mike Corcell Compliance Business Development UK Equity Global Growth Equity James Kaufmann Dan Mannix John Innes Priya Kodeeswaran Operations Convertible Bonds Equity Income Len Munden Davide Basile Nick Purves & Ian Lance Rate & Currency Peter Allwright & Stuart Frost Full biographies can be provided upon request.22
RWC Partners – Investment Capabilities Strategy Portfolio Manager Fund Name Structure Launch Date Target AUM RWC Europe Absolute Alpha Fund UCITS III July 2010 Absolute returns with a high risk adjusted return European Equity Ajay Gambhir $279.2m profile relative to equity markets RWC Samsara Fund Non-UCITS September 2007 Nick Purves RWC Enhanced Income Fund UCITS III October 2010 $45.9m A yield of 7% with quarterly distributions Equity Income & Value Ian Lance John Teahan Long-term outperformance of the FTSE All- RWC Income Opportunities Fund UCITS III September 2010 $1162.9m Share Absolute returns with a high risk adjusted return Global Growth Equity Priya Kodeeswaran RWC Advance Absolute Alpha Fund UCITS III February 2010 $10.6m profile relative to equity markets Long-term outperformance of the FTSE All- RWC UK Focus Fund UCITS III December 2010 $253.0m Share UK Equity John Innes Absolute returns with a high risk adjusted return RWC Pilgrim Fund Non-UCITS October 2000 $85.7m profile relative to equity markets RWC US Absolute Alpha Fund UCITS III September 2009 Absolute returns with a high risk adjusted return US Equity Mike Corcell $864.2m profile relative to equity markets RWC Biltmore Fund Non-UCITS October 2009 Strong risk adjusted returns relative to the Convertible Bonds Davide Basile RWC Global Convertibles Fund UCITS III December 2006 $914.0m equity and bond markets RWC Cautious Absolute Rate & UCITS III December 2006 Cash plus 3% net of fees Currency Fund Peter Allwright RWC Enhanced Absolute Rate & Rate & Currency Currency Fund UCITS III Q1 2011 $80.1m Cash plus 6% net of fees Stuart Frost RWC Macro Fund Non-UCITS January 2011 A return of 10-15% per annum Firm AUM $3695.5m Source for all data is RWC Partners Ltd.23 Data reflects 26 November 2010 numbers.
RWC Partners – AUM breakdown Breakdown by Product Type Breakdown of Client Type Client Type - end August 2010 Proprietary / Corporate Pension Funds / Institutions / 0.5% Non UCITS Funds Insurance Platf orm 13% 10% 4% Family Of f ice 0.5% Private Bank / Private Client Multi-Manager Manager 21%Segregated Accounts 19% 43% HNW Individuals 1% Hedge Fund Advisory UCITS III Sicav 4% 44% Sub-Advised 40% Source for all data is RWC Partners Ltd. 24 Data reflects end of October 2010 numbers (please note these are approximations).
RWC Partners – AUM breakdown AUM by Team AUM by Asset Class Global Growth Equity ARC 1% 2% UK Equity 10% European EquityConvertible Bonds 6% 39% Absolute Return, 32% Long only Equities, 41% US Equity 21% Long only Fixed Income, Equity Income & Value 34% 27% Source for all data is RWC Partners Ltd.25 Data reflects end of October 2010 numbers (please note these are approximations).
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 bythe 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 notintended 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”), allother 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 isissued 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 financialpromotions relating to unregulated collective investment schemes by virtue of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, asamended (the “Order”), or the Conduct of Business Rules of the FSA. Suchpartnerships, unincorporated associations, trusts, etc. falling within Article 22 of the Order. Any unregulated collective investmentschemes 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 orsolicitation 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 injurisdictions 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 andaccurate 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 guaranteeis 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 andrepresent 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 ofcomparison. 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 performanceis 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 substantialfalls. 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 couldresult 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 ofcharges 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 orwarranties of any kind are intended or should be inferred with respect to the economic return from, or the tax consequences persons include: (i) persons outside the United Kingdom; (ii) persons havingprofessional experience of participating in unregulated collective investment schemes; and (iii) high net worth bodies corporate, 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 thisdocument 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 inthe 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 Fundof 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 inan 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.26