May 20, 2013

• Top 15 global high yield manager (loans and bonds)^[1]
  
• 64 investment professionals dedicated to global high yield
  
• Integrated loan and bond high yield research and portfolio management
  
• Experienced in house work out investment professionals in both U.S. and European markets
  
• 10+ year track records in managing U.S. bonds
  
• Proprietary portfolio management and trading platform, VeCTOR

Investment Philosophy

• Fundamentally driven credit selection and portfolio construction
• Build broadly diverse portfolio across industries and issuers
• Emphasize total return, relative value and market liquidity
• Determine appropriate reward for underwritten risk
• Communicate and react to company and market information on a real-time basis
• Actively manage account to achieve portfolio objectives as credit and market conditions change

Investment Process

Sourcing

• Access to Markets
  • Due to size, years experience and track record, typically shown most new issue opportunities
  • Strong relationship with experienced and well capitalized borrowers
  • Extensive intermediary relationships

Underwriting

• Focus on Fundamentals
  • Interactive process
  • Input from multiple disciplines
  • Focus on sustainable cash flow and enterprise valuation
  • Conservative credit culture and active participation by senior management

Approval

• Thorough Review by Investment Committee
  • Analyst reviews and presents to Investment Committee
  • Portfolio manager buys
  • Dedicated traders acquire in primary and secondary market
  • Trade documentation reviewed/completed and position funded

Portfolio Management

• Diligent & Proactive
  • Continual surveillance for early identification of deterioration
  • Daily Investment Committee meetings
  • Weekly portfolio management meetings and bi-weekly “Watchlist”
  • Quarterly industry reviews
  • Proprietary credit grading

[1] Source: eVestment Alliance as of December 31, 2012

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