Quarterly Update Q2 2017

Quarterly Update Q2 2017

During the second quarter of 2017, the Company paid a quarterly dividend of 1.5p and its book value increased 0.60%. Overall, the risk exposure of the Company was deliberately kept moderate during a period of ongoing volatility in emerging markets (“EM”). After a rapid sell-off in the latter part of 2016, the sharp rally in EM bonds and equities earlier in 2017 tapered off towards the end of the second quarter. The sell-off in core fixed income markets led to a pronounced tumble in EM currency, bond and equity markets over quarter-end.

At the end of June 2017, the Company’s funds remained fully deployed, except for cash retained for collateral and working capital purposes.

During the second quarter of 2017, the Company’s credit exposure contributed 14% of the returns, equity exposure 40% and fixed income exposure contributed 28%. Currency exposure added 18%.

Despite the moderate risk positioning, the Company is comfortably on track to meet its target annual dividend yield of 6% (based on the issue price) and the dividends are well covered by economic income in the portfolio. Breaking down our dividend funding, 2.3% comes from the Company’s equity positions and 2.1% is derived from the credit positions. Currency exposure contributed 1.7% with the remainder coming from APQ Global’s strategic and government bond portfolios.

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