Quarterly Update Q1 2017

Quarterly Update Q1 2017

At the end of March 2017, the Company’s funds were all successfully deployed, except for cash retained for collateral and working capital purposes. Overall, the risk exposure of the Company was kept low during a period of ongoing volatility in emerging markets. After a sharp sell-off in the latter part of 2016, emerging markets bonds and equities rallied, in the whole erasing the losses since the Company’s IPO in August last year.

Overall, significant volatility in the asset class has been experienced since inception resulting in limited returns. The Company’s credit exposure is 22.5% of book value, net emerging markets equity exposure is 11.9% while net currency and fixed income exposure in emerging markets account for -1.1% and 12% respectively.

Despite the modest risk positioning, the Company is on track to meet its target annual dividend yield of 6% (based on the issue price) and has declared its quarterly dividend for the first quarter of 2017. The dividend is well covered by economic income in the portfolio. Breaking down our dividend funding, 2.9% comes from the Company’s equity positions, 1.7% is derived from the credit positions with the remainder coming from APQ Global’s strategic, government & corporate bond and currency portfolios.

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