Tower Fund � Local Currency Emerging Markets Debt

This vehicle invests at least two-thirds of its total wealth in fixed-term instruments and in money-market instruments in currencies of emerging markets or economically exposed to these currencies.
The term “fixed-term instruments” includes mainly but not exclusively, fixed-rate bonds, floating-rate bonds, bonds with warrants, convertible bonds and subordinated bonds. The term “Money Market instruments” refers mainly but not exclusively to investments in deposits, commercial papers, short-term bonds treasury bills and billets de titrisation.
Emerging countries are defined as those considered, at the time of investment, as industrialized countries under development by the International Monetary Fund, the World Bank, the International Finance Corporation or a large investment bank. The list of emerging markets generally includes all countries or regions outside of North America, Japan, Australia, New Zealand and western Europe.

Start date: February 17, 1998
Reference currency: USD
Reference benchmark: Libor + 200p

The goal of this vehicle is to ensure revenues exceeding by 200 basis points the short-term rates in USD but with a controlled risk.

This vehicle is ideal for clients who:

Wish to invest in fixed-term securities or money market instruments exposed to currencies of emerging markets
Tolerate risk and are experienced in volatile products and in financial markets, mainly those linked to emerging countries
Look for a medium-term investment (4 years or more)