This document discusses an investment opportunity in emerging and frontier markets fixed income. It notes that emerging markets have experienced high GDP growth compared to developed economies. The fund, called the Galloway Global Emerging Markets Fixed Income Fund, aims to provide equity-like returns through investing in emerging market corporate and sovereign bonds while maintaining a fixed income risk profile. The fund utilizes a rigorous investment process including multi-faceted due diligence and risk management controls.

1. CAPITAL
JANUARY 2011

2. INVESTMENT CASE

3. OPPORTUNITY
Identify the best investment opportunities in the Emerging
and Frontier Markets, providing clients non-leveraged
equity-like returns with fixed income seniority within a
company’s capital structure
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4. MARKET PROFILE
Current Scenario
●High growth expectation for the Emerging Markets
●Tendency for the developed economies to maintain its low
fixed income rates
●Constantly growing overseas interest in Emerging Markets
assets
●Well-managed Emerging Market companies solidified their
balance sheets and are gaining access for capital
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5. OPPORTUNITY
INVESTING IN EMERGING MARKETS HIGH YIELD
Emerging Markets and Advanced Economies GDP Growth
500%
GDP Current USD Emerging Markets
400%
GDP Current USD Developed Economies
300%
200%
100%
0%
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Source: Bloomberg
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6. OPPORTUNITY
INVESTING IN EMERGING MARKETS HIGH YIELD
EM High Yield, US High Yield and US Equities accumulated return over the last 10 years
Source: Bloomberg
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7. OPPORTUNITY
INVESTING IN EMERGING MARKETS SOVEREIGN
Several Emerging Markets Countries:
• Have higher expected growth rates with
often lower leverage
• Still show gaps between its current ratings
and their macroeconomic reality
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8. OPPORTUNITY
INVESTING IN EMERGING MARKET BONDS
The Emerging Markets Debt market is dominated by
Large Institutional Funds and Private Banks
Limited to Issues Only Offer Obvious
Sizes and Liquidity High Grade Names
The Galloway Advantage:
No constraint for non-obvious High Grade names
Not limited to higher issues sizes and liquidity
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9. THE FUND

10. GALLOWAY GLOBAL EMERGING
MARKETS FIXED INCOME FUND
●Fixed Income long-only fund specialized in both
Emerging Markets Corporate and Sovereign Credit
Bonds
●The Fund aims for consistent risk-adjusted
returns by focusing in Global Emerging Markets
● Multi-approach Due Diligence
● Highly diversified strategy
● No Leverage, No Hedging and No use of Derivatives
● Fully Invested
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11. GALLOWAY GLOBAL EMERGING
MARKETS FIXED INCOME FUND
Historical Performance
Since
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Inception
2009 1.47% 0.31% 4.21% 4.95% 6.50% 1.65% 1.94% 1.20% 24.33% 24.33%
2010 1.72% 1.44% 3.48% 1.12% -3.32% 0.64% 3.90% 0.35% 3.61% 3.22% 0.32% 1.19% 18.91% 47.84%
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12. GALLOWAY GLOBAL EMERGING
MARKETS FIXED INCOME FUND
Country Breakdown Currency Breakdown
4%
Brazil
Argentina
US Dollar
Kazakhstan
Brazilian Real
Ukraine
Mexico
96%
Indonesia
Turkey
Number of Positions: 28
Qatar
Yield To Worst (%): 11.11
China Duration: 3.21
Uruguay Average Rating: B
0% 5% 10% 15% 20% 25%
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13. INVESTMENT PROCESS
GENERATION OF INVESTMENT IDEAS
● Committees based investment decisions
● Proprietary research
● Sell side & buy side research:
Wide network of relationships with over 300
counterparties around the world
● Proprietary scorecard:
Every Bond receives a liquidity rating
● Dynamic process of monitoring the portfolio
● Replacing good ideas with better ideas
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14. INVESTMENT PROCESS
MULTI-APPROACH DUE DILLIGENCE
There is always a reason why a given company is paying an above average market return.
To assert why, and reach conviction to invest, we first have to understand:
1. COUNTRY MACRO 2. GEOPOLITICS 3. SECTOR
ECONOMIC OUTLOOK
Positive growth scenario “Never go against the King” Direct support by a governmental
financial institution
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15. INVESTMENT PROCESS
MULTI-APPROACH DUE DILLIGENCE
4. CREDIT METRICS 5. LOCAL NETWORK 6.TECHNICAL ANALYSIS
Company’s leverage, its cash Local network analysis Careful selection of entry and
flow and ownership. (sell and buy side) exit points, new issuance
outlook and relative value
7. GOLDEN RULE: It is fundamental that the cost of a company/country
not paying its obligations be “higher” than if it pays.
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16. RISK MANAGEMENT
Country Risk
● Limit of 40% for Brazil, Russia, India or China
● Limit of 20% for other countries
Currency Risk
● Limit of 30% for any other currency than USD
● Non USD Bonds must settle via Euroclear / Cedel
Corporate Risk
● Limit of 5% per individual corporate credit at cost
● Limit of 20% per individual Sovereign Bond at cost
Limit of 20% in illiquid bonds
(Issues size below USD 100 Million)
All Bonds must be Euroclearable/ DTC/ Clearstream
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17. TRANSPARENCY
FULL DISCLOSURE
Easy access to Portfolio Management team
and current portfolio ideas
Portfolio positions and trading history
disclosure upon client’s request
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18. THE MANAGER

19. THE MANAGER
Galloway Capital is a Global Emerging Markets
Fixed Income investment boutique focused on
High Yield strategies
Solid and extensive research approach with
performance-driven investment style,
bringing equity-like returns with fixed income risk
Over 50 years of experience combined in careers
dedicated to Credit including: Trading, Sales,
Origination, Due Diligence and Execution
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20. APPENDICES

21. ASSET MANAGEMENT STRUCTURE
RISK MANAGEMENT
INVESTMENT
COMMITTEE
COMMITTEE
Nathan Shor
Nathan Shor
Guillermo Bauder
Guillermo Bauder
Ulisses de Oliveira
Ulisses de Oliveira
Joao Ferrari
PORTFOLIO
RISK OPERATIONS
MANAGEMENT RESEARCH SALES COMPLIANCE
MANAGEMENT Tathiana Raso
Ulisses de Roger Braun Andre Simon Arie Milner
João Ferrari
Oliveira
TRADING
Joao Paulo
Vicente
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22. INVESTMENT TEAM
Nathan Shor
Nathan holds a BSBA from Boston University (Boston, USA) and a Masters degree in Finance from IESA (Instituto Estudios Superiores de
Administracion, Caracas, Venezuela). In 1998 he worked at The Nash Fund being responsible for its US equities, Forex and Fixed Income
allocations. In 2003, he joined forces with Convenção a Brazilian Broker Dealer to develop their international division offering Futures,
Commodities, US Equities and International Fixed Income to Institutional clients. The relationship with Convenção resulted in a new company
called Galloway Emerging Markets In 2009, he was responsible to start up the Galloway Global Emerging Markets Fixed Income Fund.
Guillermo Bauder
Guillermo studied business in the UNIMET (Universidad Metropolitana in Caracas-Venezuela). He began his career at Confimerca, the broker
dealer of Grupo Confinanzas in 1993. Starting as a floor broker in the Caracas Stock Exchange, he was later transferred to the Local Fixed
Income Area and finally ended at the International Fixed Income Area. In 1998 was a Foreign Associate in Peru for North American Institutional
Brokers covering US Equity institutional clients. In 2000 joined FTC Securities as Foreign Associate for Latin America, in charge of developing US
Equity and Fixed Income for institutional clients. In 2003 he joined forces with Convenção a Brazilian Broker Dealer to develop their international
division offering Futures, Commodities, US Equities and International Fixed Income to Institutional clients. The relationship with Convenção
resulted in a new company called Galloway Emerging Markets. In 2009, he was responsible to start up the Galloway Global Emerging Markets
Fixed Income Fund.
Ulisses de Oliveira
Bachelor of Science in Finance and International Business of NEW YORK UNIVERSITY, certified Series 7 and 66 registered, FSA Rules an
Regulations, Securities and Derivatives registered. He began his career in 1996 at then commodity house E D & F Man. Later he joined Safra
Bank of NY as Assistant Treasurer until 2000 when he joined Citigroup NY as a Relationship Officer, later he was Vice President of Investments
responsible for research, originating and marketing investment ideas directly to clients on a wide range of asset classes: emerging markets and G-
7 fixed income, equities, options, and structured products. At the beginning of 2009 he joined Galloway to be responsible for managing its
Emerging Markets bond funds.
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23. RESEARCH TEAM
Roger Braun
Roger Braun Barends is a partner at Galloway where he works as Head of Research and New Transactions. Roger has large experience in the
credit analysis of companies since he has acted as a corporate finance banker in various industry sectors in special the commodity sector incl.
agribusiness. In the past 2 years he acted as a financial advisor for foreign funds (Texel Capital & DZB) developing investment opportunities in
Brazil. He started his career as auditor with Coopers & Lybrand and after joining the finance department of Ralston Puring Canada, where he
developed feasibility studies for clients to expand their livestock business, entered the banking market. Roger acted for the last 15 years in the
Brazilian market where he worked for BNP Paribas, HVB, Calyon and Natixis in leadership positions focused in Project Finance, ECA and
Structured Trade & Commodity Finance- STCF in Petrochemicals, Energy, Pulp & Paper, Metals & Mining and Soft commodities. In these last
institutions, he was involved in financing the largest Brazilian corporates such as Riopolimeros, CVRD, Petrobras, Ipiranga, Aracruz, Votorantim
and Cosan. When working as financial advisor he focused on funding the middle sized companies of the soft & hard commodity business. Roger
has a degree in Business Administration from Vienna University and a European Masters of Business Science from Heriot-Watt University and is
member of the Brazilian Capital Markets Institute “APIMEC” since 1998.
João Ferrari
Graduated in Business Administration from Fundação Getúlio Vargas in São Paulo and has a Master’s degree in economy from Pontifícia
Universidade Católica of São Paulo. He started his career in finance as a credit analyst at HSBC and has also worked for Saint George Bank in
the Personal Customer Division. In 2004 he joined Daycoval Asset Management, where he participated in the management of Fixed Income and
Variable Income Funds until 2006. Still in 2006 he joined Galloway in the capacity of analyst.
Lorraine Hac
Holding a master degree in Business Management from HEC – University of Liege (Belgium), she started her career in Finance as part of the
Sales Team of the investment banking arm of Emirates National Bank of Dubai, placing equity and debt capital market primary offerings to the
market. She joined Galloway in 2010 as an analyst.
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24. FUNDS MAIN CHARACTERISTICS
Galloway Global
Galloway LatAm Galloway Brazil
Emerging Markets
Fixed Income Fund Fixed Income Fund
Fixed Income Fund
NAV Liquidity Monthly Monthly Monthly
Minimum Initial Investment USD 100,000 USD 100,000 USD 100,000
Additional Investment USD 25,000 USD 25,000 USD 25,000
Redemption 30 days after upcoming NAV 30 days after upcoming NAV 30 days after upcoming NAV
Management Fee 1.5 % per year 1.5 % per year 1.5 % per year
Performance Fee 15% quarterly on a HWM basis 15% quarterly on a HWM basis 15% quarterly on a HWM basis
ISIN Code VGG3723N1024 VGG3723N1362 VGG3723N1446
Administrator IFCE Fund Services IFCE Fund Services IFCE Fund Services
Custodian IFCE / Pershing IFCE / Pershing IFCE / Pershing
Auditor Ernst & Young Ernst & Young Ernst & Young
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25. LEGAL INFORMATION
This presentation has been prepared by Galloway Capital. This presentation is provided for informational purposes only and does not constitute or
should not be construed as an offer to buy or sell or solicitation of an offer to buy or sell any financial instrument or to participate in any particular
trading strategy in any jurisdiction. The information herein is believed to be reliable as of the date in which this material was issued and has been
obtained from public sources believed to be reliable. Galloway Capital does not make any representation or warranty, express or implied, as to the
completeness, reliability or accuracy of such information, nor is this presentation intended to be a complete statement or summary of the
securities, markets or developments referred to herein. Opinions, estimates, and projections expressed herein constitute the current judgment of
the analyst responsible for the substance of this presentation as of the date in which it was issued and are therefore subject to change without
notice. Prices and availability of financial instruments are indicative only and subject to change without notice. The financial instruments discussed
in this presentation may not be suitable for all investors, and it does not take into account the investment objectives, financial situation or particular
needs of any particular investor. Investors should obtain independent financial advice based on their own particular circumstances before making
an investment decision on the basis of the information contained herein and it is strongly recommended that investors read carefully the disclosure
document of the funds presented herein before making an investment decision. Foreign investments may involve greater risk than domestic
investments. If a financial instrument is denominated in a currency other than an investor’s currency, a change in exchange rates may adversely
affect the price or value of, or the income derived from, the financial instrument, and the reader of this presentation assumes any currency risk.
Income from financial instruments may vary and its price or value, either directly or indirectly, may rise or fall. Past performance is not necessarily
indicative of future results, and no representation or warranty, express or implied, is made herein regarding future performances. Galloway Capital
does not accept any liability whatsoever for any direct or consequential loss arising from any use of this presentation or its content. This
presentation may not be reproduced or redistributed to any other person, in whole or in part, for any purpose, without the prior written consent of
Galloway Capital. Additional information relative to the financial products discussed in this presentation
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26. CONTACT
INFORMATION
Andre Simon
+55 11 4082-2275
simon@gallowaycapital.com
www.gallowaycapital.com
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