Gramercy Emerging Markets Debt Fund

Investor Summary

The fund is co-managed by Philip Meier and Belinda Hill, both seasoned emerging markets debt professionals with over 20 years of experience. Philip Meier serves as Partner, Deputy Chief Investment Officer, and Head of Emerging Markets Debt at Gramercy, bringing 18 years of specialized experience. Belinda Hill is a Managing Director and CFA Charterholder with extensive emerging markets credit experience, including three years as an Emerging Markets Analyst at Apollo Global Management and previous experience at Schroders Investment Management focusing on Latin America. The team benefits from senior leadership guidance provided by Robert Koenigsberger, Managing Partner and CIO, and Mohamed A. El-Erian, who serves as Chair.

Fund Strategy

The fund seeks long-term capital appreciation by investing at least 80% of its net assets in fixed income securities economically tied to emerging markets countries. Gramercy employs an active management investment approach combining thematic top-down analysis with fundamental bottom-up research. The thematic top-down view is developed by a dedicated committee led by Mohamed A. El-Erian and Robert Koenigsberger, providing global macroeconomic insights. This is complemented by proprietary bottom-up research conducted by dedicated analysts who evaluate individual issuers through fundamental, relative valuation, technical, and ESG scoring methodologies. The fund integrates ESG risks into investment decisions and invests in diverse debt instruments including sovereign, quasi-sovereign, corporate bonds, convertible bonds, contingent convertible securities, and bank deposits.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
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Executive Summary

The Gramercy Emerging Markets Debt Fund navigated significant market volatility in March 2026 as Middle East conflict escalated following U.S. and Israeli strikes on Iran, creating broad regional war and delivering shocks to global markets. The resulting energy price surge rekindled inflation concerns and prompted sharp reassessment of monetary policy across developed and emerging economies, with U.S. Treasury yields rising materially. The Fund's performance was driven by strategic asset allocation and security selection across regions and credit quality. Positive contributions came from underweight allocation to Asia, which faced the most direct exposure to oil price dislocation and higher rates, idiosyncratic distressed Brazilian corporate positions that benefited from positive technicals and constructive bondholder discussions, and absence of exposure to Turkish sovereign bonds. Detracting factors included local currency positions, particularly overweight South African local currency and Thai local curve positioning, long-end investment grade allocation impacted by Treasury selloff, and Middle East allocation directly affected by regional conflict.

Core Thesis

The Fund focuses on emerging markets debt across local currency sovereign bonds, hard currency sovereign bonds, and hard currency corporate bonds, with active asset allocation and security selection across regions and credit quality to navigate geopolitical risks and market volatility.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 18 2026	2026 Q1	-	credit, emerging markets, energy, fixed income, Geopolitical, inflation, Middle East	-	Gramercy's emerging markets debt fund weathered March 2026 Middle East conflict through strategic positioning. Underweight Asia allocation and absence of Turkish exposure provided protection, while distressed Brazilian corporates contributed positively. Local currency positions and duration-sensitive investments detracted as energy price surge rekindled inflation concerns and drove Treasury yields higher across the curve.
Jan 14 2026	2025 Q4	-	Dollar, emerging markets, Fed, fixed income, High-yield, rates, Spreads	-	Gramercy's emerging markets debt strategy delivered positive December returns through selective high-yield sovereign exposure and South African local-currency bonds. Dollar weakness provided broad EM tailwinds while spread compression favored carry assets. Underweight positioning in lower-beta currencies and investment-grade duration exposure created modest headwinds in the volatile rate environment.
Oct 16 2025	2025 Q3	-	credit, duration, emerging markets, Federal Reserve, fixed income, Rate Cut	-	Gramercy's EM debt fund capitalized on Fed rate cuts through duration overweight and BB-rated credit exposure. Strong performance driven by local currency sovereign selection in Brazil and South Africa, while spread tightening across EM fixed income reflected improving credit conditions. Constructive outlook supported by policy accommodation expectations despite geopolitical headwinds.
Jun 30 2025	2025 Q2	-	Brazil, Debt, emerging markets, Geopolitical, high yield, inflation, Local Currency, Risk Appetite	-	Gramercy's emerging markets debt fund outperformed in June through strategic positioning in Brazilian local currency debt and high yield corporate credit. Despite Middle East tensions and U.S. stagflation concerns, the fund benefited from resumed risk appetite, weaker dollar conditions, and Treasury rallies while maintaining selective exposure across emerging market debt segments.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 18 2026

2026 Q1

credit, emerging markets, energy, fixed income, Geopolitical, inflation, Middle East

Gramercy's emerging markets debt fund weathered March 2026 Middle East conflict through strategic positioning. Underweight Asia allocation and absence of Turkish exposure provided protection, while distressed Brazilian corporates contributed positively. Local currency positions and duration-sensitive investments detracted as energy price surge rekindled inflation concerns and drove Treasury yields higher across the curve.

Jan 14 2026

2025 Q4

Dollar, emerging markets, Fed, fixed income, High-yield, rates, Spreads

Gramercy's emerging markets debt strategy delivered positive December returns through selective high-yield sovereign exposure and South African local-currency bonds. Dollar weakness provided broad EM tailwinds while spread compression favored carry assets. Underweight positioning in lower-beta currencies and investment-grade duration exposure created modest headwinds in the volatile rate environment.

Oct 16 2025

2025 Q3

credit, duration, emerging markets, Federal Reserve, fixed income, Rate Cut

Gramercy's EM debt fund capitalized on Fed rate cuts through duration overweight and BB-rated credit exposure. Strong performance driven by local currency sovereign selection in Brazil and South Africa, while spread tightening across EM fixed income reflected improving credit conditions. Constructive outlook supported by policy accommodation expectations despite geopolitical headwinds.

Jun 30 2025

2025 Q2

Brazil, Debt, emerging markets, Geopolitical, high yield, inflation, Local Currency, Risk Appetite

Gramercy's emerging markets debt fund outperformed in June through strategic positioning in Brazilian local currency debt and high yield corporate credit. Despite Middle East tensions and U.S. stagflation concerns, the fund benefited from resumed risk appetite, weaker dollar conditions, and Treasury rallies while maintaining selective exposure across emerging market debt segments.

QUARTER	THEMES	TAGS
2026 Q1	Middle East The outbreak of conflict in the Middle East following U.S. and Israeli strikes on Iran escalated into a broader regional war, delivering significant shocks to global markets and energy prices. The Fund's allocation to the Middle East detracted from performance as the conflict directly impacted regional credit markets.	Geopolitical Energy Regional Conflict Credit
	Inflation The surge in energy prices from Middle East conflict rekindled inflation concerns and prompted a sharp reassessment of monetary policy outlook across both developed and emerging economies. This led to material rises in U.S. Treasury yields across the curve.	Energy Monetary Policy Treasury Yields Central Banks
	Credit Stress The Fund benefited from idiosyncratic distressed Brazilian corporate positions that saw positive technicals and constructive developments in bondholder discussions. EM hard-currency corporate bonds showed resilience compared to sovereign bonds during the market stress.	Distressed Corporate Brazil Technicals Bondholder
2025 Q4	AI Manager sees AI as driving significant growth across portfolio companies, with Alphabet benefiting from AI monetization in search and cloud, Applied Materials positioned for AI infrastructure buildout, and Microsoft leading in AI applications despite near-term investment intensity.	Artificial Intelligence Machine Learning Cloud Computing Infrastructure Monetization
	Cloud Cloud infrastructure remains a key growth driver with Google Cloud growing over 30% year-over-year and Microsoft Azure showing strong momentum despite some deceleration, supported by enterprise AI adoption and infrastructure investments.	Cloud Computing Infrastructure Enterprise SaaS Hyperscale
	Semiconductors Semiconductor equipment sector showing strength with Applied Materials benefiting from AI-related capacity investments and improved wafer-fab spending visibility, particularly in advanced logic and high-bandwidth memory.	Semiconductor Equipment Foundries Memory Logic Capital Equipment
	Pharmaceuticals Eli Lilly demonstrates exceptional growth driven by GLP-1 franchises Mounjaro and Zepbound, with sales more than doubling year-over-year and strong pipeline in diabetes, obesity, and neuroscience providing durable competitive advantages.	GLP-1 Diabetes Obesity Biotechnology Drug Development
	Streaming Netflix faces near-term headwinds from subscriber growth concerns and rising content spending, with margin pressure from live sports investments and potential acquisition complexity, though maintains dominant global platform position.	Video Streaming Content Subscribers Entertainment Media
2025 Q3	Rates The Federal Reserve delivered a 25 basis points rate cut in September, marking a key inflection point in policy recalibration. Growing divergence within the FOMC introduced new uncertainty into forward guidance, while the Fed shifted focus toward the softening labor market as a primary consideration in policy decisions.	Federal Reserve Rate Cut FOMC Monetary Policy Labor Market
	Credit Stress EM fixed income delivered strong performance across all major sub-sectors with spreads tightening across the board. High yield segments drove the bulk of compression with 16bps of tightening compared to 8bps for investment grade, indicating improving credit conditions in emerging markets.	Spreads High Yield Investment Grade Credit Quality Tightening
2025 Q2	Geopolitical Markets navigated escalating Middle East tensions including U.S. airstrikes on Iran's nuclear facilities and subsequent fragile ceasefire with Israel. Despite initial oil price spikes to $75, markets welcomed de-escalation with equities rebounding as broader conflict concerns eased.	Middle East Iran Israel Oil Conflict
	Inflation Core inflation ticked higher while consumer spending weakened, fueling stagflation concerns. The Federal Reserve held rates steady but flagged persistent inflation risks amid softening U.S. macro data including revised Q1 GDP down to -0.5%.	Stagflation Core Inflation Fed Rates GDP
	Risk Appetite Fund performance was driven by selection of high yield corporate credit which benefited from a resumption in risk appetite during the month. Markets showed resilience amid turbulent geopolitical shocks and shifting policy signals.	High Yield Corporate Credit Risk On Resilience Volatility
	Brazil Overweight positioning in Brazil was an outperformer in the local currency segment this month, contributing to fund performance. Brazil's central bank raised rates contrasting with cuts in Canada, Europe, and Asia.	Local Currency Overweight Rate Hike Outperformance Positioning

QUARTER

THEMES

Middle East

The outbreak of conflict in the Middle East following U.S. and Israeli strikes on Iran escalated into a broader regional war, delivering significant shocks to global markets and energy prices. The Fund's allocation to the Middle East detracted from performance as the conflict directly impacted regional credit markets.

Geopolitical Energy Regional Conflict Credit

Inflation

The surge in energy prices from Middle East conflict rekindled inflation concerns and prompted a sharp reassessment of monetary policy outlook across both developed and emerging economies. This led to material rises in U.S. Treasury yields across the curve.

Energy Monetary Policy Treasury Yields Central Banks

Credit Stress

The Fund benefited from idiosyncratic distressed Brazilian corporate positions that saw positive technicals and constructive developments in bondholder discussions. EM hard-currency corporate bonds showed resilience compared to sovereign bonds during the market stress.

Distressed Corporate Brazil Technicals Bondholder

2025 Q4

AI

Manager sees AI as driving significant growth across portfolio companies, with Alphabet benefiting from AI monetization in search and cloud, Applied Materials positioned for AI infrastructure buildout, and Microsoft leading in AI applications despite near-term investment intensity.

Artificial Intelligence Machine Learning Cloud Computing Infrastructure Monetization

Cloud

Cloud infrastructure remains a key growth driver with Google Cloud growing over 30% year-over-year and Microsoft Azure showing strong momentum despite some deceleration, supported by enterprise AI adoption and infrastructure investments.

Cloud Computing Infrastructure Enterprise SaaS Hyperscale

Semiconductors

Semiconductor equipment sector showing strength with Applied Materials benefiting from AI-related capacity investments and improved wafer-fab spending visibility, particularly in advanced logic and high-bandwidth memory.

Semiconductor Equipment Foundries Memory Logic Capital Equipment

Pharmaceuticals

Eli Lilly demonstrates exceptional growth driven by GLP-1 franchises Mounjaro and Zepbound, with sales more than doubling year-over-year and strong pipeline in diabetes, obesity, and neuroscience providing durable competitive advantages.

GLP-1 Diabetes Obesity Biotechnology Drug Development

Streaming

Netflix faces near-term headwinds from subscriber growth concerns and rising content spending, with margin pressure from live sports investments and potential acquisition complexity, though maintains dominant global platform position.

Video Streaming Content Subscribers Entertainment Media

2025 Q3

Rates

The Federal Reserve delivered a 25 basis points rate cut in September, marking a key inflection point in policy recalibration. Growing divergence within the FOMC introduced new uncertainty into forward guidance, while the Fed shifted focus toward the softening labor market as a primary consideration in policy decisions.

Federal Reserve Rate Cut FOMC Monetary Policy Labor Market

Credit Stress

EM fixed income delivered strong performance across all major sub-sectors with spreads tightening across the board. High yield segments drove the bulk of compression with 16bps of tightening compared to 8bps for investment grade, indicating improving credit conditions in emerging markets.

Spreads High Yield Investment Grade Credit Quality Tightening

2025 Q2

Geopolitical

Markets navigated escalating Middle East tensions including U.S. airstrikes on Iran's nuclear facilities and subsequent fragile ceasefire with Israel. Despite initial oil price spikes to $75, markets welcomed de-escalation with equities rebounding as broader conflict concerns eased.

Middle East Iran Israel Oil Conflict

Inflation

Core inflation ticked higher while consumer spending weakened, fueling stagflation concerns. The Federal Reserve held rates steady but flagged persistent inflation risks amid softening U.S. macro data including revised Q1 GDP down to -0.5%.

Stagflation Core Inflation Fed Rates GDP

Risk Appetite

Fund performance was driven by selection of high yield corporate credit which benefited from a resumption in risk appetite during the month. Markets showed resilience amid turbulent geopolitical shocks and shifting policy signals.

High Yield Corporate Credit Risk On Resilience Volatility

Brazil

Overweight positioning in Brazil was an outperformer in the local currency segment this month, contributing to fund performance. Brazil's central bank raised rates contrasting with cuts in Canada, Europe, and Asia.

Local Currency Overweight Rate Hike Outperformance Positioning

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Middle East

Inflation

Credit Stress

AI

Cloud

Semiconductors

Pharmaceuticals

Streaming

Rates

Credit Stress

Geopolitical

Inflation

Risk Appetite

Brazil

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Philip Meier Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Gramercy Emerging Markets Debt Fund