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SKY Harbor Capital Management, LLC

Investment Manager to SKY Harbor Global Funds

September 13, 2018

By accepting this presentation, you agree (a) that the information herein (the "Information") is confidential and proprietary to SKY Harbor (the “Company”), (b) to keep the Information confidential, (c) not to use the Information for any purpose other than to evaluate an investment strategy managed by the Company, (d) not to distribute the Information to any person other than persons in your organization or to your client that has engaged you to evaluate an investment strategy managed by the Company, and (e) to acknowledge the important disclosures contained throughout this presentation. This document is not for public distribution.

BrightGate Capital


SKY Harbor Capital Management is an independent SEC-registered investment adviser focused on the management of portfolios and funds of principally US high yield bonds and loans for a global institutional and private wealth management client base. We offer a range of high yield strategies and solutions with distinct risk and return characteristics.

The senior members of the investment team—Hannah Strasser and Anne Yobage— have managed high yield investments as a team for nearly three decades and have consistently applied their investment process through diverse market cycles. It is an investment process grounded in fundamental analysis to identify and manage the risk associated with owning below-investment-grade corporate debt securities.

Our fundamental analysis is supported by quantitative and technical methods to value risk and by proactive portfolio management to further reduce risk at the portfolio level. We track macroeconomic trends to detect potential shifts in corporate profitability and changing market dynamics on a global basis. SKY Harbor Capital’s “Client First” culture is supported by a custom-tailored operating model and the resources of our partner, Stone Point Capital.

SKY Harbor Capital Management 2 Confidential

Leadership with deep knowledge of the high yield market

Hannah H. Strasser, CFA

Managing Director

Managing Director and Senior Portfolio Manager, 35 years of investment experience.

Co-founded SKY Harbor with partners Anne Yobage and Tom Kelleher (now retired)

Oversees all aspects of business and investment strategy; specific responsibility for the Broad High Yield Market strategy.

Previously Head of US Fixed Income and senior portfolio manager for AXA Investment Managers with responsibility for the core high yield strategy. Led the team that grew AUM from less than $1 billion to $57 billion in ten years.

Prior experience: co-founder of Cardinal Capital Management; co-head of High Yield at Deltec Asset Management and member of the Board of Directors and Executive Committee; analyst at Kidder Peabody and Donaldson, Lufkin & Jenrette.

Serves on Greenwich Hospital Board of Trustees. Past board member of several public companies.

BA, Amherst College. Chartered Financial Analyst.

Anne C. Yobage, CFA

Director

SKY Harbor Capital Management

Director and senior portfolio manager, 30 years of investment experience.

Co-founded SKY Harbor with partners Hannah Strasser and Tom Kelleher (now retired)

Specific responsibility for the Short Duration High Yield strategy.

Previously Co-Head of US High Yield and senior portfolio manager for AXA Investment Managers with responsibility for the short duration high yield strategy.

Prior experience: co-founder of Cardinal Capital Management; co-head of High Yield at Deltec Asset Management; credit analyst at Kidder Peabody.

BA, Swarthmore College. Chartered Financial Analyst.

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SKY Harbor Capital Management 4

History of building credit expertise to meet unique client needs

and respond to market opportunities

1988 1992 1995 2001 2004 2006 2008 2011 2012 2013 2014 2015 2016 2017

Deltec Asset Management

Strasser joins in 1988 Yobage joins in 1990 Kelleher joins in 1992

Cardinal Capital Management Founded with

Deltec Small Cap team

AXA Investment Managers Purchases Cardinal Capital High

Yield team. AUM: $130mn ($69mn Core; $61mn SDHY)

Kinsley joins March 2004


Strasser, Yobage and Kelleher resign AXA IM (AUM $57bn) in June.

SKY Harbor founded August 2011. Begin managing assets at end of Sept.

…History of designing solutions

History of building expertise…

Team pioneers Short Duration High Yield strategy to offer

high current income with low volatility solution to international client

Launch AXA IM UCITs HY Fund to deliver SDHY within European daily liquidity vehicle to meet investor demand. (Fund grows from $0 to

>$11 bn AUM by May 2011)

Create Custom Credit negative basis strategy to capture the

dislocation between cash and synthetic product in most

Solvency II friendly manner. (Grows to >$15bn by Oct 2010)

IG Credit capability added with $15 bn

Integrated leveraged loan capability for mixed portfolios

Launch distressed energy portfolios to take

advantage of historic dislocation ($40 mn)

Launch credit opportunity fund to leverage high yield

fundamental research across full capital structure

Design non-benchmarked selective credit portfolio to lock in 8-10% income

stream ($50 mn)

Launch SKY Harbor Global Funds, Lux-based UCITS SICAV.

SKY Harbor Capital Management GmbH,

Germany-based subsidiary established

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Add Jonathan Savas to lead leveraged loan working group and

dedicated strategies


Outperform the broad high yield market over a full market cycle with less volatility

Drive returns through the compounding of income and the preservation of principal

Investing across the full maturity and ratings spectrum of the US below-investment-grade debt market

High level of experience with ratings or otherwise constrained portfolios

Target companies with sustainable business models, predictable cash flow profiles and improving fundamentals

Proactive positioning to manage macro and micro risks at the portfolio level

Investment strategies with distinct risk/return characteristics

Broad High Yield Market

Short Duration High Yield

Capture the current income of the high yield market with substantially less volatility

Low volatility long-term returns built through the consistency of monthly returns

Investing in below-investment-grade securities with expected redemptions of 3 years or less

Credit selection focuses on those companies with a high level of financial flexibility and operating potential to minimize negative credit events

High natural turnover of positions provides steady reinvestment opportunity

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There can be no assurance that the investment objectives described herein will be achieved. Past performance is not indicative of future results.

Experienced investors with the resources to support our clients

SKY Harbor Capital Management 28 employees. Years of industry experience noted. *= Interim coverage

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Short Duration HY Portfolio Management Broad High Yield Portfolio Management Senior Floating Rate Portfolio Management

Anne C. Yobage, CFA, 30 yrs Hannah H. Strasser, CFA, 35 yrs Jonathan Savas, 27 yrs

David W. Kinsley, CFA, 16 yrs Ryan Carrington, CFA, 17 yrs Trevor Kaufman, CFA, 10 yrs

Portfolio Management Working Groups by Investment Strategy

Strategist Director of Research Senior Trader Trader

Hannah H. Strasser, CFA Mike Salice, CFA, 15 yrs Zach Tyler, 13 yrs Thomas Spelman, 12 yrs

Basic Industry, Capital Goods, Telecommunications & Media, Healthcare, Financial Services,

Building & Construction Support Services Real Estate

Kateryna Kukuruza, 10 yrs Mike Salice, CFA Jonathan Savas Mike Salice, CFA*

Chris Choi, 11 yrs Kenta Shimojo, CFA, 10 yrs TBD

Luke Walsh, 4 yrs Stefan Balog, CFA, 8 yrs Hannah H. Strasser, CFA

Consumer Goods & Retail, Utility, Insurance,

Technology Transportation

Trevor Kaufman, CFA Ryan Carrington, CFA Anne C. Yobage, CFA David W. Kinsley, CFA

Taylor Garden, 2 yrs Kateryna Kukuruza Transversal ESGHaley Greenberg, 3 yrs

Leisure Automotive

Energy

Fundamental Research by Sector16 Investment Professionals

Managing Director Hannah H. Strasser, CFA Managing Director Hannah H. Strasser, CFA Head of Global Distribution Claire LaBrunerie

Director Anne C. Yobage, CFA Head of Investing David W. Kinsley, CFA Sr. Relationship Mgmt Philippe Descheemaeker, 17 yrs

Head of Investing David W. Kinsley, CFA General Counsel & CCO Gordon Eng Head of Client Service Kristen Rice

General Counsel & CCO Gordon Eng, 36 yrs CAO & Chief Risk Officer Jeff Kazen Head of Marketing & Comm Rebecca Keim, 29 yrs

CAO & Chief Risk Officer Jeff Kazen, 14 yrs Head of Client Service Kristen Rice, 14 yrs Investor Service Support Heather Maselli, 11 yrs

Head of Global Distribution Claire LaBrunerie, 29 yrs SKY HCM GmbH Rep Stefan Balog, CFA Client Service, Non-US Aron Balog, 5 yrs

Compliance Associate Paul DeCaprio, 23 yrs

Chief Administrative Officer & CRO Jeff Kazen Sr. Operations Manager Andrew Fink, 11 yrs Finance Comptroller Sandra Diener, 30 yrs

Operations Specialist Ellen McManus, 24 yrs Loan Specialist Heather Maselli

Operations & Finance

Support for our Clients by Functional Committee12 Business and Relationship Management Professionals

Business Expertise Committee (BEC) Operations, Risk & Control Committee (ORCC) Investor Services


We believe the key to superior long-term, low volatility returns in

the High Yield market is compounding current income and avoiding

principal loss through fundamental credit analysis that focuses on

bonds of companies which have improving credit trends.

Investment Philosophy

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Clear investment philosophy and goals

Income Drives Returns over the Long Term


Identify attractively priced income streams to build portfolios with risk and return characteristics targeted by our clients

Source: SKY Harbor, ICE BofAML US High Yield Index, Credit Suisse Leveraged Loan Index as of December 31, 2017. Past performance is not indicative of future results. 8 Confidential

Income Return 9.24%

Price Return 0.05%

Total Return 9.30%

High Yield Market–Total Return Breakdown

Average Annual 1987-2017

Income Return 6.44%

Price Return -1.01%

Total Return 5.36%

Leveraged Loan Total Return Breakdown

Average Annual 1992-2017

Process built around the unique risks of the high yield market

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Portfolio Construction

•Optimized to balance risk and return

•Daily performance attribution

Relative Value

•Judgmentally based risk pools

•Sector/Industry Pools

•Rating Pools

•Custom Risk Pools

Technical Analysis

•Bond/loan Technical Characteristics

•Market Perceptions and Risks

Fundamental Analysis

•Fundamental screen to identify potential investments

•Focus on Issuer Industry, Operating Potential & Financial Flexibility & ESG risk factors

Risk Management

Fundamentals-Asset Values-Sentiment-Technicals Translating economic and market conditions into high yield market risks and opportunities

Guiding sector and risk positioning targets Focusing our time on fundamental security analysis

F-A-S-T

Economic and Market Risk Assessment

Important disclosures and disclaimers


SKY Harbor Capital Management, LLC (“SKY Harbor”) provides this document for informational purposes only. The information contained herein is confidential and intended solely for the person to whom it has been delivered. Nothing contained in this document is or should be construed as an advertisement, or an offer to enter any contract, investment advisory agreement, a recommendation to buy or sell securities of any kind, a solicitation of clients, or an offer to invest in any particular fund, product, investment vehicle, or derivative. Forward-looking statements such as the findings of our analytical research, our outlook for interest rates, Fed policy, the economy, high yield markets and the like, or our intended adjustments to the portfolios within our flagship strategies are subject to inherent risks, biases, and uncertainties that are beyond the control of SKY Harbor and may cause actual results to differ materially from the expectations expressed herein.

The information contained herein is subject to change, and SKY Harbor is under no obligation to update any information contained herein. Certain information contained in this document has been obtained from third-party sources and, although believed to be reliable, has not been independently verified, and its accuracy or completeness cannot be guaranteed.

Broad High Yield Market Strategy portfolios may include 6%-12% of USD-denominated below-investment-grade corporate debt securities that are not included in the ICE BofAML US High Yield Index (“Index”). These securities may have variable coupon schedules, scheduled maturity of less than one year, USD-listed issuers domiciled outside the US, issues with less than $250 million in debt outstanding and new-issue securities not yet in the Index due to routine timing lag. The Index reflects no deductions for fees, expenses or taxes.

Investing in securities involves risk of loss and past performance is not necessarily indicative of future results. Fixed income securities, especially high yield debt securities, are subject to loss of income and principal arising from credit risk, which is the risk that the issuer will be unable to make interest and principal payments when due. Material risks in investing in high yield debt securities also include, but are not limited to, opportunity cost (the risk that an issuer’s credit trends deteriorate resulting in a higher level of compensation demanded by the market relative to the initial investment), interest rate risk, liquidity risk, selection risk, and overall market risk. In general, issuers of high yield debt securities have a greater likelihood of defaulting on the payment of interest or principal than issuers of investment grade bonds. There can be no assurance that the investment objectives described herein will be achieved or that substantial losses can be avoided.

Gross performance results do not reflect the deduction of investment advisory fees, which would reduce an investor’s actual return. For example, assume that $1 million is invested in an account with the Firm, and this account achieves a 6% compounded annualized return, gross of fees, for five years. At the end of five years that account would grow to $1,338,226 before the deduction of management fees. Assuming management fees of 0.55% per year are deducted annually from the average annual AUM, the value of the account at the end of five years would be $1,302,846, which is the equivalent of an annual compounded rate of 5.43%. For a ten-year period, the ending dollar values before and after fees would be $1,790,848 and $1,697,408, respectively. SKY Harbor’s asset-based fees are generally billed monthly or quarterly in arrears. Please refer to the SKY Harbor’s ADV Part 2A or applicable Offering Documents for more information on fees. Consultants supplied with gross results are to use this data in accordance with SEC, CFTC, NFA or the applicable jurisdiction’s guidelines.

SKY Harbor is not a tax or legal advisor. Prospective investors should consult their tax or legal advisors before making tax-related investment decisions.

The ICE BofAML Index data referenced herein is the property of ICE Data Indices, LLC (“ICE BofAML”) and/or its licensors and has been licensed for use by SKY Harbor. ICE BofAML PERMITS USE OF THE ICE BofAML INDICES AND RELATED DATA ON AN "AS IS" BASIS, MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE BofAML INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND SKY Harbor or ANY OF ITS PRODUCTS OR SERVICES. © SKY Harbor 2018. This document may not be reproduced or transmitted, in whole or in part, by any means, to third parties without the prior written consent of SKY Harbor.

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Important Disclosures (cont.)


SKY Harbor Capital Management GmbH Conflicts of Interest Policy Disclosure

SKY Harbor Capital Management GmbH (the “Company”) is licensed by Germany’s BaFin (ID # 129400) to provide certain financial services within the meaning of Section 32 of the German Banking Act. It acts as the Principal Distributor of SKY Harbor Global Funds (the “Fund”), a Luxembourg SICAV regulated as a UCITS by the Commission de Surveillance du Secteur Financier (the “CSSF”). The Company’s business is to promote the Fund to institutional investors directly or indirectly through regulated financial institutions by way of sub-distributor agreements. The Company where appropriate also promotes the investment management services of its parent company, SKY Harbor Capital Management, LLC, an independent SEC-registered investment adviser located in Greenwich, CT, USA, which also serves as the Fund’s Investment Manager. Because the Company neither manages discretionary client assets nor provides brokerage services, it neither takes possession of nor transacts in any assets belonging to clients or investors. The Company does not engage in proprietary trading but is permitted by BaFin to transact on a limited basis in Fund shares for its own account to facilitate the activation of dormant share classes.

a. The Company is committed to act at all times in accordance with its legal and fiduciary obligations in the best interest of the Fund’s investors. Accordingly, the Company has established policies reasonably designed to detect, prevent, manage, and if necessary disclose conflicts of interest between the Company and the Fund’s clients/investors or between one client/investor and another that may arise in the course of providing its services. The Conflicts of Interest Policy and Procedures are regularly reviewed by the Compliance Department, senior management, Internal Audit, and at least annually by independent external auditors.

b. Within the scope of its business, the Company’s possible conflicts of interest may include:

• Incentive systems for company staff that encourage aggressive sales practices • Misrepresentations or omissions of material information in communicating with current or prospective investors • Favoring one investor over another in terms of service or selective disclosure of information because of the importance of that investor or sub-distributor relationship • Employee use of material nonpublic information in personal securities transactions • Impermissible gifts to or entertaining of investors or public officials • Exercising more liberal discretion for an investor over another when granting permission to the Fund’s transfer agent/custodian/administrator to make accommodations for certain exceptions in

transactions with the Fund • Financial interest in Fund-Shares for which the Company acts as Principal Distributor • Acting as Directors of the Fund and as MD/ Geschäftsführer of the Company at the same time

c. Measures to detect, prevent, and manage conflicts of interest mainly include:

• Mandatory periodic employee training in Compliance and Code of Ethics including Conflicts of Interest training • Employee compensation practices designed to align investor interests not conditioned on AUM or sales metrics • Appropriate rules and guidelines with business partners • Continuous monitoring, pre-authorization and disclosure of all employees’ personal securities transactions • Employees are discouraged from transacting in any securities issued by companies in which the Fund may invest • Selective Disclosure governed by written confidentiality agreements supported by reasonable purposes • Material information routinely made available to all investors through the Fund’s website and the Company’s periodic newsletter updates to ensure simultaneous access to information • Requirement that all travel, gift, and entertainment expenses be documented and approved by the parent company • Written rules of conduct govern disclosure and authorization of incentives, such as the receipt and acceptance of gifts and other benefits, political contributions, and outside business activities • Periodic employee anti-bribery training • Vetting and approval of all Marketing and Promotional literature by parent company’s Chief Compliance Officer • Employees annually acknowledge compliance with global Compliance and other Policies and Procedures • Retention of external independent auditor to perform the Company’s internal audit function • Retention of independent auditor to perform the Company’s annual audit • Director discretion in favoring any investor is subject to limitations imposed on the Fund transfer agent/custodian/administrator by the CSSF and relevant law and regulation • Company’s ownership of Fund shares subject to outside auditor scrutiny • Retention of external independent Director for the Board of the Fund

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For more information, please contact


Principal Distributor of SKY Harbor Global Funds:

SKY Harbor Capital Management GmbH An der Welle 4,

60322 Frankfurt am Main, Germany +49 69 75937169

[email protected]

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mailto:[email protected]