Emerging Market Closed-End Fund (CEF) Strategy

Overview

The Emerging Market Closed-End Fund (CEF) Strategy seeks to provide long-term capital growth via stock selection and active country allocation. We believe that closed-end funds offer an efficient way to invest in emerging markets. Our “alpha” is generated by capitalizing on discount changes and pricing anomalies that arise in closed-end funds. We specialize in identifying and capitalizing on discount movements and pricing anomalies to seek to provide above average, long-term outperformance versus the appropriate benchmark while maintaining a lower level of volatility than the benchmark.

Emerging (Free) Markets Country Fund Composite Performance Ending 31-Dec-23*

Performance results reflect the reinvestment of dividends and other earnings. Returns are net of fees and are based on an investment management fee of 1.00% per annum. Past performance is no guarantee of future results. Periods over one year are annualized.

*Composite Description: The Emerging (Free) Markets Country Fund Composite is an international equity composite focused on emerging countries, managed by City of London Investment Management. The strategy strives to outperform the MSCI Emerging Markets Net Total Return Index (MSCI EM Index) with controlled risk, while providing Clients with monthly cash flow opportunities. It utilizes fundamental investment principles and quantitative approaches to provide broad emerging market equity exposure primarily through closed-end funds, with no one investment representing more than 15% of an individual portfolio within the composite upon its purchase and a goal of investing no more than approximately 25% in open-end funds. It uses both top-down and bottom-up valuation methodologies to value asset classes, countries and closed-end funds to determine under or over valued opportunities. The strategy has a strong value bias relative to other emerging market strategies. The composite is managed to the MSCI Emerging Markets Net Total Return Index.

**Index Description: The MSCI Emerging Markets Index (MSCI EM Index) contains large and mid-cap stocks across emerging markets countries; the index covers approximately 85% of the free float-adjusted market capitalization in each country. As of 31 December 2023 the MSCI EM Index consisted of 24 emerging markets.

Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling. computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.

The portfolios’s investment objective is to achieve long-term capital growth. The portfolio will invest primarily in listed closed-end funds (“CEFs”) whose assets are invested in securities issued by companies domiciled or operating in, or that derive a majority of their income from, Emerging Markets. Emerging securities markets tend to be smaller, less liquid and more volatile than the major securities markets in the United States. There is less publicly available information about the issuers in emerging markets than is regularly published by issuers in the United States. Also, there is generally less government supervision and regulation of exchanges, brokers and issuers in emerging markets than there is in the United States. The legal infrastructure and accounting, auditing and reporting standards in certain emerging markets in which the Fund invests do not provide the same degree of investor protection or information to investors as would generally apply in more developed countries. The portfolio could be adversely affected by delays in or a refusal to grant any required government approval or by the lack of availability of foreign exchange. The portfolio will be subject to the risks of government control, political instability and social unrest with respect to its investments in emerging markets that could, in turn, have an adverse effect on the portfolio’s operations and performance.

Source: City of London Investment Management, MSCI

Definition of the Firm

City of London Investment Management Company Limited (CLIM) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority and registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC).

CLIM claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

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