Opportunistic Value (CEF) Strategy


The Opportunistic Value Closed-End Fund (CEF) Strategy seeks to provide long-term capital growth via a value-driven, high-conviction approach. The Strategy is maximally opportunistic, seeking to take advantage of the most compelling valuations in the closed-end fund universe globally. The investment philosophy is bottom-up and benchmark agnostic, giving focused exposure to closed-end fund discount dislocations across asset classes and geographies in a concentrated “best ideas” portfolio.

Opportunistic Value Composite Performance Ending 30-Jun-24*

Inception date: September 1, 2014. Performance results reflect the reinvestment of dividends and other earnings. Returns are net of fees and reflect the deduction of the 0.80% investment management fee. Past performance is no guarantee of future results. Periods over one year are annualized.

*Composite Description: The Opportunistic Value Composite was created in September 2014, and is a multi-asset class composite focused on global markets managed by City of London Investment Management. The investment objective of the strategy is to outperform the benchmark index after fees, over a three year period, by exploiting discount inefficiency in the closed-end fund universe. It utilizes fundamental investment principles and quantitative approaches to build a portfolio of attractively valued closed-end funds providing multi-asset class exposure. The Composite employs listed funds, including closed-end funds and ETFs. The strategy is measured against a blended index composed of 50% MSCI All Country World Index (net total return) and 50% Bloomberg Global Aggregate Index (total return), rebalanced daily.

**Index Description: The 50/50 MSCI ACWI/Bloomberg Global Aggregate benchmark is a custom blended index calculated daily by City of London Investment Management by applying a 50% weighting to the MSCI ACWI (net total return) and 50% weighting to the Bloomberg Global Aggregate Index (total return). The MSCI ACWI Index is designed to represent performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 24 emerging markets. It covers constituents across 11 sectors and approximately 85% of the free float-adjusted market capitalization in each market. The Bloomberg Global Aggregate Index measures global investment grade debt from local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. Each index is unmanaged and has no fees. One cannot invest directly in an index. The holdings of the portfolio differ significantly from the securities that comprise each index.

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.

BLOOMBERG, BLOOMBERG INDICES and Bloomberg Fixed Income Indices (the “Indices”) are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, “Bloomberg”) or Bloomberg’s licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices. Bloomberg makes no warranty, express or implied, as to the Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. Back-tested performance is not actual performance. To the maximum extent allowed by law, Bloomberg, its licensors, and its and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages – whether direct, indirect, consequential, incidental, punitive or otherwise – arising in connection with the Indices or any data or values relating thereto – whether arising from their negligence or otherwise.

The portfolio’s investment objective is to achieve long-term capital growth. The portfolio will invest primarily in listed closed-end funds whose assets are invested significantly in equity, fixed-income or other securities. CEFs often trade at significant discounts from underlying NAV, and these discounts can increase significantly during certain market conditions. Investing in non-U.S. securities involves special risks and considerations not typically associated with investing in U.S. securities. These include risks associated with political and economic developments, higher operating expenses, non-U.S. withholding and other taxes that may reduce investment return, reduced availability of public information concerning issuers and the fact that non-U.S. issuers are not generally subject to uniform accounting, auditing and financial reporting standards or to other regulatory practices and requirements comparable to those applicable to U.S. issuers. Non-U.S. securities may trade with less frequency and volume than U.S. securities and therefore may exhibit greater price volatility.

Source: City of London Investment Management, MSCI, Bloomberg

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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