Fund Manager's comment on CCB (end of December 2016)

2016-12-31

"The CCB model has achieved a positive performance in December and a +5.48% for the year. The portfolio was maintained defensively during the entire 2nd half of the year, as we were fearing possible reactions to a Trump election victory. As such, the portfolio has a much lower duration than previously, with 2 bonds maturing in 2017 (Kazkommertsbank and Bank of St Petersburg). At the end of the year, the Grupo Papelero Scribe bond was redeemed at 102.50%, which has increased the liquidity of the portfolio. For the year 2017, we will be watching the US curve in order to increase our exposure to US subordinated and perpetual bonds. We will maintain the same level of EM exposure and reinvest maturing bonds into new names. We believe that the target of 6% annualized return could be achieve in 2017, as well"

corporate-credit-bond-portfolio-fs-usd-december.pdf