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IFPC Zenith High Yield Bond Fund

FUND OBJECTIVE & INVESTMENT PHILOSOPHY
The objective of the Zenith High Yield Bond Fund is to provide superior long-term risk-adjusted returns by investing in a portfolio of high yield debt, mainly consisting of European corporate loans, bonds, and derived products. The portfolio manager aims to generate annual returns in the 10 to 15% range with lower volatility than the corresponding index and to preserve capital in all market conditions. Portfolio Manager Investment Advisor Fund Manager Fund Administrator Investor Relations Alex Vaskevitch

30 April 2013
Serone Capital Management LLP, London Independent Financial Partners, Zürich Trinity Fund Services, Dublin ir@seronecapital.com

MONTHLY PERFORMANCE & TRACK RECORD
Share Class & ISINs (KYG522861049) EUR A (KYG522861122) USD A (KYG522861205) EUR B (KYG522861387) USD B Management Fee Performance Fee Hurdle Rate Minimum Investment Liquidity NAV 100.75 110.47 156.85 162.48 %Δ M-o-M 2.49% 2.58% 2.36% 2.31% %Δ YTD 6.57% 6.72% 6.18% 6.07% Relative Performance of Current Portfolio Manager (Oct-08 = 100)

2% p.a. of monthly NAV, paid quarterly in arrears 20% subject to hurdle rate; paid annually 12-month Euribor + 150bps with high-water mark EUR or USD 50,000 Monthly at NAV with 25 days notice

250 230 210 190 170 150 130 110 90 Apr-09 Oct-08

ZHYBF €A ML HY Index*

Apr-10

Apr-11

Apr-12

Note: NAV and performance metrics are presented net of management and performance fees Note: The current portfolio manager began managing the fund in November 2008 * Merrill Lynch European High Yield Index (ticker HEAD): ex-financial, 3% constrained

EUR A 2013 2012 2011 2010 2009 2008 2007 2006 2005

Jan 1.65% 4.28% 3.51% 4.37% 10.16% -6.07% 1.16% 0.89%

Feb 1.18% 1.69% 1.42% -0.88% -1.39% -5.62% 0.87% 0.25%

Mar 1.10% -0.22% -0.73% 5.38% -0.71% 0.22% 0.50% -0.31%

Apr 2.49% -1.92% 0.94% 3.26% 11.57% 6.23% 0.86% 0.39%

May -1.40% -0.05% -4.64% 7.51% 0.52% 0.98% 0.25%

Jun -0.96% -0.25% -1.33% 2.36% -3.64% -0.93% -0.56%

Jul 0.12% -0.80% 3.09% 6.62% -3.02% -4.27% 0.46%

Aug 0.76% -7.74% 1.20% 3.45% -1.69% -2.02% 0.93%

Sep 1.23% -7.49% 2.85% 5.33% -10.99% 0.26% 0.29%

Oct 1.47% 4.87% 1.11% 0.89% -36.34% 1.71% 1.45% -0.11%

Nov 0.75% -5.32% -2.17% -0.25% 4.24% -2.65% 0.62% 1.16%

Dec 4.69% 0.32% 2.78% 2.86% -2.28% -0.17% 1.57% 0.80%

YR / YTD 6.57% 10.75% -11.56% 15.54% 59.29% -49.69% -3.82% 6.40% 1.86%

Note: The A share class was closed to new investment in November 2008; the B share class accepts all new subscriptions; performance of previous portfolio manager can be provided upon request

CURRENT PORTFOLIO PROFILE
Portfolio Characteristics Portfolio Statistics # of Positions Long Exposure* Short Exposure* Net Exposure* Yield To Worst Yield Spread Highest Rating Average Rating Lowest Rating Beta Modified Duration Apr-13 31 122.5% 0.0% 122.5% 9.39 869 bps BB B+ CCC0.53 3.07 Mar-13 28 109.9% 0.0% 109.9% 10.65 1010 bps BB B+ CCC0.62 2.97 Top 10 Positions ALTICE 8 12/15/19 NUMCAB 8 3/4 02/15/19 FOURSN 8 3/4 06/15/19 MATTER 7 3/4 02/15/20 SPRTLN 5.472 12/28/28 UPCB 6 3/8 09/15/22 ARRGL 7 7/8 03/01/20 PSOS 12 10/06/15 TVNPW 10 3/4 11/15/17 AGROK 9 1/8 02/01/20 Top 10 Concentration % of MVI* 5.0% 5.0% 4.8% 4.7% 4.6% 4.6% 4.4% 4.3% 4.1% 4.1% 45.6% Credit Rating Diversification (Beta-Adj. Exposure as a % of NAV)
60% 50% 40% 30% 20% 10% 0% BB B CCC NR

* Exposure is equal to market value adjusted for margined derivatives. Derivatives are treated as fully funded. A security with negative/positive exposure is short/long risk.

Sector Diversification (Beta-Adj. Exposure as a % of NAV)
Cable Financials Food & Beverage Gaming Health Care Industrials Media Oil & Gas Services Telecom Travel & Leisure Utilities 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22%

Maturity Diversification (Beta-Adj. Exposure as a % of NAV)
35% 30% 25% 20% 15% 10% 5% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022

MANAGER COMMENTARY
We are happy to report that the fund returned 2.49% (EUR A) and 2.36% (EUR B) in March while the benchmark ML European Corporate HY index (HEAD) returned 2.18% for the same period. Zenith outperformed the index with year-to-date returns of 6.57%, while the index returned 3.62%. Following a period of tough austerity, the authorities are starting to take a more relaxed stance, the ECB made a 25bp rate cut and committed to full allotment on their refinancing operations until the middle of 2014. For now, Economic fundamentals, growth and fiscal concerns have taken the backseat as central banks provide a market backstop for authorities to perhaps take a slightly more relaxed view on austerity. Ironically the bad (economic) news was good news for risky assets on the basis that it increases the probability of a policy response. During the month European high yield CDS (iTraxx Xover) tightened by 86bps closing the month at 400bps, while single B’s outperformed triple C’s returning 2.03% and 1.82% respectively. The funds average rating at the beginning of the month was single B+ and we continue to believe this is the sweet spot. In April we saw EUR 6 billion of new high yield issuance bringing the total YTD new issuance to EUR 33 billion, breaking the 2011 record. According to JPM, a wall of new money is flowing into European high yield with inflows of EUR 543m during April and EUR 2.9 billion (8.3% of AUM) since the beginning of the year. Given these market dynamics we don’t expect a sell-off anytime soon. The strong performance is likely to attract further inflows over the next few weeks as we have found that historically, flows tend to chase returns. Not only is the fear from the Euro area crisis diminishing, but macro-economic growth expectations are also set far lower, leaving less opportunity for investors to be disappointed. European high yield is still trading wide to the US, we will continue to focus on the smaller more nimble issues where we see potential spread tightening on the back of specific credit improvement and primary market activity.
This document is issued by Serone Capital Management LLP, which is authorised and regulated in the United Kingdom by the Financial Services Authority. This document is provided to you for information purposes only and should not be used or considered as an offer or a solicitation to sell or buy the securities mentioned in it. Any decision by an investor to buy shares in IFPC Zenith High Yield Fund must be made solely on the basis of the information and terms contained in the IFPC Zenith High Yield Fund prospectus. Performance data of the fund is not based on audited financial data. Past performance may not necessarily be repeated and is no guarantee or projection of future results. Opinions expressed herein may not necessarily be shared by all employees or partners of Serone Capital Management LLP and are subject to change without notice. A commitment to the Fund should only be made by persons with professional experience of participating in such funds. We have classified you as a professional client or eligible Counterparty based on the information we have. This document is exempt from general restrictions in Section 21 of the Financial Services and Markets Act 2000 as it is aimed solely to persons to whom the document can legitimately be communicated. The securities referenced in this document have not been registered under the Securities Act of 1933 (the ‘1933 Act’) or any other securities laws of any other U.S. jurisdiction. Such securities may not be sold or transferred to U.S. persons unless such sale or transfer is registered under the 1933 Act or exempt from such registration. This information does not constitute tax advice. Investors should consult their own independent advice with regard to their tax situation.

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