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THE BOOKLET SANTANDER AM LATIN AMERICAN CORPORATE BOND FUND Q1 2015 31 MARCH 2015 Reporting period first quarter 2015 Distribution to institutional investors only CONTENTS 01 02 03 Executive Summary Pages 04-05 Market Review Pages 06-07 Portfolio Performance Review Pages 08-09 04 05 06 Portfolio Composition Pages 10-11 Market Outlook Pages 12-13 Appendix Pages 14-18 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND 01 EXECUTIVE SUMMARY FUND MANAGER COMMENT The first quarter of 2015 showed a peak on market scepticism and the early points of a turnaround. Two important drivers of the turnaround were the mild recovery of the oil price and the softer data in the US. The former managed to put a floor on investors’ minds and the latter lowered the cap on US rates going forward. Removing these two headwinds, value emerged on the asset class and delivered positive results on the quarter. Looking forward, the new Petrobras status and lower volatility of some commodities (like copper or silver) may provide further support for returns. PERFORMANCE (%) Q1 2015 1YR Portfolio Index Relative Return 0.27 2.90 1.26 3.53 -0.98 -0.62 Source:Santander Asset Management March 2015, Past performance is not reliable indicator of future performance 4 SANTANDER ASSET MANAGEMENT MARCH 2015 KEY FACTS Fund Name: Santander Latin America Corporate Bond Fund Inception Date: 27 October 1998 Benchmark: CEMBI Broad Diversified LatAm Index Total Net Assets: $104.2m (31 March 2015) Fund Currency: USD Fund Manager: Alfredo Mordezki ISIN: LU0363170191 (Class I) Bloomberg Ticker: SANHYDI Equity Minimum Investment: 500,000 Management Fee: 0.60% TER: 0.82% (31 Dec 2014) Share Classes: A, AD, I LIPPER LEADER SCORECARD Total return Methodology Consistent return Preservation Expense Overall rating 3 year rating 5 year rating CLAVE DE LIPPER LEADERS MÁS ALTO MÁS BAJO Source: FT.com, as at the end of December 2014. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. As a result, you should not make an investment decision on the basis of this information. Rather, you should use the Lipper ratings for informational purposes only. Certain information provided by Lipper may relate to securities that may not be offered sold or delivered within the United States (or any State thereof) or to, or for the account or benefit of, United States persons. Lipper is not responsible for the accuracy, reliability or completeness of the information that you obtain from Lipper. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. © Thomson Reuters 2011. All rights reserved. 5 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND 02 MARKET REVIEW The Latin American corporate bond market posted absolute positive returns for the first quarter (1.3% as measured by the CEMBI LatAm Index) despite starting the year in a turbulent fashion. Volatility was noticeable as investor flight to quality pushed the US 10 year Treasury to an 18 month low of 1.64%. It continued to fluctuate widely throughout the quarter with yields reaching as high as 2.24% before settling at 1.92%, influenced by the Federal Reserve setting the environment for the first interest rate hike since 2006. From a technical perspective, trends were supportive, with $13bn of corporate amortisations and coupons in the first month of the year. Latin American new issues for the quarter totalled $12.5bn, marginally better than the previous quarter but significantly down on the same period last year when $28bn was issued. Unsurprisingly, all new paper was issued outside of Brazil where market conditions have been deemed more appropriate for such transactions at this time. Mexico’s Pemex made up almost half the total, placing $6bn in three tranches of 5, 10 and 30 years. Chile’s Cencosud ($1bn) was another investment grade issuer in the period while high yield issuers included Cemex ($750m) and Millicom ($500m). Rating downgrades in the region continue to be prevalent given current market conditions although this has not stopped the upgrade of those that have demonstrated fundamentals beyond their existing ratings. Standard & Poor’s raised the rating of Mexican flour and tortilla producer Gruma to BBB-, citing the company’s efforts to reduce its debt burden, while increasing its profitability. In addition, CFR, Credito Real and Cementos de Chihuahua all received upgrades, supported by the more prosperous outlook on their relevant sectors. Pacific Rubiales, Vale, Usiminas, Hochschild and Volcan were among those downgraded largely due to the continued pressures of lower commodity prices. Oil prices declined by 10.6% while iron ore continued its downward trajectory falling by 28%. In contrast, copper price stabilised helping miners in both Chile and Peru while hardwood pulp prices have continued to ease higher. Sugar, an important commodity for Brazil, also fell sharply due to the imbalance in the market. It should be noted that the price of sugar remains below many Brazilian producers production cost. Lower sugar prices were responsible for one the region’s defaults this year when Virgolino de Oliveira was finally unable to pay its bond holders following months of operating below breakeven levels. The other main default in quarter came as result of the Lava Jato corruption investigation when OAS missed coupon payments in January. Although there are bound to be other companies faced with this scenario as a result of the investigation, as time progresses it is becoming easier to identify those that are edging towards this scenario. 6 SANTANDER ASSET MANAGEMENT The Lava Jato corruption case remained a key news story in Brazil in the first quarter. This weighed on investor sentiment sending Petrobras’s credit default swaps to their widest level ever, with five-year CDS on Petrobras widening 24%, to trade at nearly 700bp. However, by March there was positive news as S&P affirmed the BBBlong-term foreign currency sovereign rating and most importantly, kept a stable outlook for Brazil. The rating action was important for removing at least momentarily, an important concern market agents had on the possibility of Brazil losing its investment grade status in the short-term. Finally, on the currency side, the quarter saw significant weakness on all major crosses, with special focus on Brazilian Real. High correlation between the Mexican, Chilean and Colombian Peso showed some change on investor positioning beyond fundamentals, including a late appreciation of the three currencies. The Peruvian Sol remained stable on the weak side, range bounded on central bank interventions. MARCH 2015 Market Performance: LatAm Indices YTM Country Performance: Sovereign USD Issued Debt LatAm Indices YTM (normalised 30 Apr 2013) % 30 145 140 135 20 130 10 125 0 120 115 -10 110 -20 105 100 -30 % 0 Argentina 12% Columbia 4% Pe ru Pa na m a Ur ug ua y Ve ne zu el a Country Performance: Sovereign Local Currency Debt 2015 Brazil 32% 12M Return Source: JP Morgan, as at the end of March 2015. 2014 Chile 15% Br az il 3M Return New Issues: Latin America Argentina 2% Ch ile Co lo m bi a M ex ico 31 EMBI Glob Div (sov. & quasi sov. debt issued in USD GBI-EM Glob (local ccy debt converted to USD, unhedged) CEMBI Div Br (corp. debt issued in USD) -40 Ar ge nt in a 14 M AR 14 30 AP R 14 31 M AY 13 30 JU N 13 31 JU L 13 31 AU G 13 30 SE P 13 31 O CT 13 30 NO V 14 31 DE C 14 28 FE B 15 14 28 FE B 13 31 JA N 13 31 DE C 13 NO V 30 31 O CT 13 13 SE P 30 13 31 AU G 13 JU L 31 13 JU N 30 31 M AY AP R 13 95 30 USD Debt Other 29% Local Ccy Debt (in USD) -5 -10 Chile 12% -15 Columbia 6% Mexico 27% Other 7% Peru 6% -20 -25 Peru 15% Brazil 3M Return Mexico 35% Chile Colombia Mexico Peru 12M Return Source: JPMorgan, as at the end of March 2015. Source: Credit Suisse, as at the end of February 2015 Market Performance: Indices Market Performance: Currency % 10 0% 5 -5% -10% 0 -15% -5 -20% -10 -25% -15 -20 -30% GBI-EM Global EMBI Global Div ELMI+LatAm US Gov Div LatAm LatAm (sov. & (local ccy Bond Index (sovereign local quasi sov. debt money market (Bloomberg/ ccy debt in issued in USD) instruments) EFFAS Bond USD) Indices US Govt All > 1 Yr TR) 3M Return -35% Argentina Brazil 3M Return Chile Colombia Mexico Peru 12M Return 12M Return Source: Bloomberg March 2015 7 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND 03 PORTFOLIO PERFORMANCE REVIEW PERFORMANCE AND PORTFOLIO POSITIONING COMMENT The portfolio posted a positive absolute return in the first quarter of 2015 and, although it lagged the benchmark return, the second half of the quarter saw the relative underperformance reduce considerably. Much of the underperformance can be attributed to the fund’s underweight duration following the rally in the US treasury to an 18 month low of 1.64% in January. Good performance amongst credit stories held in the banking sector aided returns with a number of the fund’s positions showing appreciating bond prices. The portfolio’s investment in selected names, particularly in the diversified financial sector, boosted performance and justified our heavy weighting in this area. The fund’s largest contribution for the quarter came from Banco Davivienda while other banks such as Bancolombia and Banco de Credito Del Peru also provided some of the strongest returns. Unsurprisingly, the Oil and Gas sector underperformed in the period following a further fall in oil price. Our bond from Pacific Rubiales, the Colombian oil company, was our worst performer losing value amidst further pressures arising from an oil price which dropped more than 18% through to the middle of March. Concerns over future production as a result of reduced capex have since been eased slightly following a soft recovery of the commodity and bond price has improved since. The Engineering & Construction sector also suffered through the ensuing Lava Jato investigation and our positions in OAS bonds, which we reduced significantly prior to their default, and Odebrecht Drilling bonds illustrated this. At a country level, performance both positive and negative was driven by the fund’s two dominant positions in Mexico and in Brazil respectively. Strong performance amongst corporate paper held in Peru and Chile also lifted returns. In Mexico, the largest contributor to returns was Unifin Financiera, a financial services company that offers leasing and other financial consultancy services. The fund also benefitted from its investment in Elementia, the Mexican building materials company, owned by Carlos Slim and Mexichem, as news surfaced of the company’s imminent IPO. Another notable performer during the month was Southern Copper, the Mexican mining company. The fund’s exposure to the long-end 2035 issue proved fruitful, as investor sentiment was given a lift by improved prospects for the copper price. 8 SANTANDER ASSET MANAGEMENT Our Brazilian bonds in the Engineering & Construction sector, mentioned previously, explained much of the negative performance in the country while auto parts manufacturer Tupy also posted negative returns due to the challenging environment in Brazil’s auto industry. However, companies such as Klabin, Cielo and Cosan provided some of the fund’s best returns showing there is still a lot of value to be extracted from Brazil. MARCH 2015 Rolling Performance of the Fund Peer Group Ranking Chart 12.0 8.0% 10.0 6.0% 8.0 6.0 4.0% 4.0 2.0 2.0% 0.0 0% -2.0 -4.0 -2.0% Q1* Q2* Q3* Q4* 15 FE B15 M AR -1 5 14 E- C- DI SAN LCAB* EN -1 4 V14 NO 14 P- CT SE O 14 -1 4 O L- MAR JU FEB AG Benchmark (cumulative) JAN AR -1 4 AB R14 M AY -1 4 JU N14 Benchmark (MTD) Portfolio (cumulative) DEC M Portfolio (MTD) NOV 14 OCT FE SEP 13 AUG E- JUL C- JUN EN MAY DE APR B14 -6.0 -4.0% *Contains estimated data Source: Santander Asset Management, Lipper Analytics, as at the end of March 2015. Country Contribution Rating Contribution 1.0% 0.8% 0.6% 0.5% 0.4% 0% 0.2% -0.5% -0.2% 0.0% -0.4% -1.0% -0.6% Index Fund Index C C CC C+ -0.8% BR B- CO B SV B+ JM - NL BB LU BB AR + GT BB PY B- BB BB CR B ES CC Fund PA BB CL B+ PE BB MX A- -1.5% Sector Contribution 0.7% 0.5% 0.3% 0.1% -0.1% -0.3% -0.5% -0.7% D NK SE BA FIN RS VE DI E IFI S RV AN G N DI IL BU HO M NG I LD S AL RI E AT S RE IE N PA CO LE TE NS IA ED O TI CA M I UN AL CI M M M CO L I TA ER IV D S- S CE VI S IT RE TR NS RY NE A I CH M LD US O EH ES G IN IN &M CO M M CO ER R SE AR W S/ CT DU P RO HO M ST VE IN M T EN CO ST RE FO S IE N PA ER P PA S& CT DU C RI CT E EL AS G O IR RO P L EE ST N/ S T S E N AS IO AL EN CE UR IC VI &G LT CT L PM R I U I M U E C U O SE TR RI EQ CH AS NS AG G S& O T & C L R I & O G PA IN TO ER U E A IN G EN Source: Santander Asset Management, as at the end of March 2015. Data provided by the Investment Portfolio Manager. D O FO G IN IN M Fund Index MONTHLY PERFORMANCE 2015 JAN FEB MAR Fund -1.13 +1.11 +0.31 Index -0.32 +1.96 -0.35 -0.81 -0.86 +0.66 Excess CALENDAR YEAR PERFORMANCE 2010 2011 2012 2013 2014 Fund +10.66 +3.40 +14.15 -2.47 +6.33 Index +11.52 +4.95 +14.13 -2.66 +5.95 -0.86 -1.55 +0.02 +0.19 +0.38 Excess Source:Santander Asset Management March 2015, Past performance is not reliable indicator of future performance 9 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND 04 PORTFOLIO COMPOSITION PORTFOLIO CHARACTERISTICS Tracking error: PORTFOLIO ALLOCATION 2.22% % Invested: Sharpe Ratio: 1.17 % Cash: Beta: 0.71 Nº of Issues: Volatility: 3.14% YTM: 6.43% Duration: 4.97 Average Rating: BB+ Average G Spread: 502 96.3% 3.7% 87 Source:Santander Asset Management March 2015, T/E, Sharpe Ratio, Beta, volatility, I.R. 3 years annualized data Top 10 Holdings Weight YTM Rating G-Spread Duration FINANCIERA INDEPENDENCIA 7.5 03/06/2019 2.44% 7.50% B+ 637 3.42 UNIFIN FINANCIERA 6.25 22/07/2019 2.16% 8.21% BB- 701 3.61 ATENTO LUXCO 7.375 29/01/2020 2.07% 7.47% BB- 621 3.93 CREDITO REAL 7.5 13/03/2019 2.05% 6.66% BB+ 556 3.35 ITAU UNIBANCO 5.5 06/08/2022 1.98% 5.50% BBB- 377 5.90 TENEDORA NEMAK 5.5 28/02/2023 1.91% 4.89% BB 367 3.46 ELEMENTIA 5.5 15/01/2025 1.86% 5.53% BB+ 367 7.32 SOUTHERN COPPER 7.5 27/07/2035 1.79% 6.20% BBB 393 10.89 SIXSIGMA NETWORKS MEXICO 8.25 07/11/2021 1.77% 7.18% B+ 564 4.31 1.74% 19.77% 5.43% B+ 845 1.55 C10 CAPITAL 6.722 PERP TOTAL Source: Santander Asset Management, as at the end of March 2015. Data provided by the Investment Portfolio Manager. 10 SANTANDER ASSET MANAGEMENT MARCH 2015 Sector Positioning/Active Exposure Fund 16.75% BANKS DIVERSIFIED FINAN SERV FOOD OIL&GAS HOLDING COMPANIES-DIVERS 1.2% COMMERCIAL SERVICES 3.58% HOLDING COMPANIES-DIVERS 2.34% -2.12% 2.87% MEDIA 1.99% 1.9% 1.97% 0.0%% AGRICULTURE HOME BUILDERS 1.69% 0.1% HOME BUILDERS 1.66% 1.5% ENGINEERING&CONSTRUCTION -1.54% GAS 1.52% 2.7% IRON/STEEL 00% 0.00% COMMERCIAL SERVICES AGRICULTURE ENGINEERING&CONSTRUCTION -2.03% MINING 5.3% 2.54% 4.1% GAS -11.55% ELECTRIC FOREST PRODUCTS&PAPER 2.98% 0.1% MEDIA 2.97% TELECOMMUNICATIONS 16.1% 3.68% 3.7% 3.19% MINING 2.02% RETAIL 3.77% 5.8% ELECTRIC FOREST PRODUCTS&PAPER -8.79% BUILDING MATERIALS 4.58% TELECOMMUNICATIONS 1.08% OIL&GAS 14.7% 4.81% 1.8% 7.46% FOOD 5.69% 3.7% -3.82% DIVERSIFIED FINAN SERV 6.68% 5.6% 5.90% RETAIL BANKS 20.6% 9.64% 2.2% BUILDING MATERIALS Index 0.06% 1.97% 1.58% 0.19% IRON/STEEL -1.23% HOUSEHOLD PRODUCTS/WARES 1.43% 0.9% 1.39% 0.2% HOUSEHOLD PRODUCTS/WARES REITS 1.24% 0.4% REITS MACHINERY-CONSTR&MINING 1.21% 0.2% MACHINERY-CONSTR&MINING CHEMICALS 1.17% 1.8% CHEMICALS -0.62% 1.11% 1.4% INVESTMENT COMPANIES -0.24% PIPELINES INVESTMENT COMPANIES PHARMACEUTICALS PIPELINES 1.03% 0.0% 0.93% 2.8% BEVERAGES 0% 0.53% 1.22% 0.89% 0.96% PHARMACEUTICALS 0.98% BEVERAGES 5% 10% 15% 20% 25% -1.82% -15% -10% -5% 0% 5% 10% Source:Santander Asset Management March 2015 Country Positioning/Active Exposure MX 18.93% BR 16.72% Index MX 21.6% CL 16.63% 2.8% 2.82% GT 3.0% 0.76% ES 2.1% 0.00% ES CR 1.8% 0.00% CR BB 1.5% 1.61% BB AR 0.00% 0% A A- 5% 10% 15% 20% 25% 30% 35% -10% -5% 0% 5.9% BB+ BB 10.3% 3.91% B+ 5.5% 7.9% 4.0% BB10.84% 6.4% 1.77% .4% 0.00% -5.5% BB 7.81% 4.8% B -1.0% -11.08% BB+ 18.13% 6.0% B+ 8.86% 2.4% B 1.4% B-3.9% CCC+ 3.9% -2.7% CCC 2.7% 5% 10% 15% 20% 25% 20% -0.4% BBB- 20.9% 17.60% 12.1% BB- BBB 22.1% 15.41% 15% -5.9% BBB+ 11.27% 10% -0.5% A- 4.33% 5.3% 5% Index A 0.00% 0% -3.9% A+ 0.3.6% 0.8% 0.00% -6.2% -15% 40% Fund 0.00% 0.5% BBB- CCC -0.1% -1.7% AR BBB CCC+ 2.1% 1.8% US 3.93% BBB+ B- 2.3% 1.6% JM 6.19% Ratings Distribution/Active Exposure A+ 0.00% PA 1.8% 3.46% 0.00% -10.9% PY PA US -6.4% GT 2.1% 0.5% JM -0.8% CO 14.95% 5.7% CL 4.9% PE 8.6% CO 15.4% BR 10.1% 10.88% PE PY Fund 34.3% -15% -10% -5% 0% 5% 10% Source:Santander Asset Management March 2015 11 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND 05 MARKET OUTLOOK We expect a normalization of market conditions towards the middle of the year. New issue volumes are down dramatically as a consequence of the disappearance of Brazilian issuers. Local markets and syndicate loans are cautiously grabbing back market share of corporate debt, a countertrend compared to the last decade. Investors hold cash as a result of low issuance and a high level of coupons and maturities. EM Flows are stable to positive, but will not be determinant in market performance unless macroeconomic imbalances are reversed, something we do not expect to happen in 2015. The Brazilian Premium, around 100bp in 5y CDS vs Peru, Panama, or Colombia will start to shrink in the second half, if the country manages to define a clear limit on the financial burden that Lava Jato will impact on involved corporates, and Petrobras normalizes operations at a lower – but acceptable – level of production, EBITDA and Capex to sustain a credible path to deleverage. The Relative Value In LatAm Corporates BBB BUCKET LUCI BB BUCKET LACI 8.16 6.00 7.65 4.98 4.72 3.41 4.29 4.80 5.06 4.07 4.89 3.14 3.94 3.68 6.97 8.88 9.91 YTM March 31st 2015 (%) 8.13 YTM May 20th 2013 (%) B BUCKET BBB BUCKET BB BUCKET B BUCKET EMCI Source: LUCI, Liquid US Corporate Index, LACI, Latin America Corporate Index, EMCI, Emerging Market Corporate Index, Bloomberg March 2015 12 SANTANDER ASSET MANAGEMENT MARCH 2015 13 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND 06 APPENDIX WHY CHOOSE SANTANDER FOR FIXED INCOME? How we are different: a large local presence, “a long distance relationship that really works”. We are organised according to sectors across Latin America. This is crucial to our process, and allows us to make an assessment and judgment on how we compare one company bond to another in the same industry, to ensure we pick the best bonds for our portfolios. SANTANDER LATIN AMERICA FIXED INCOME TEAM Alfredo Mordezki Global Head of LatAm Fixed Income, London Global Tiago Ventura Rego John Montgomery Teresa Martinez Dipak Chouhan Local Curency Debt London Credit Analyst / PM London Quant Analyst Madrid Product Specialist London Marcelo Peixoto Maria Aramoni Javier Vieiro Credit Analyst / PM Brazil Credit Analyst / PM Mexico Credit Analyst / PM Chile Brazil: 4 Equity Analysts 4 Macro Strategists 1 Equity Country Coordinator Mexico 1 Equity Analyst 1 Macro Strategist 1 Equity Country Coordinator Local Local Managers Local Analysts Team AUM $566.3m, as at end March 2015 14 SANTANDER ASSET MANAGEMENT Chile: 5 Equity Analysts Argentina: 1 Equity Analyst 1 Equity Country Coordinator MARCH 2015 OUR INVESTMENT PROCESS: THE FOUR CORNERSTONES 2. BOND’S EXPECTED RETURN 3. PORTFOLIO CONSTRUCTION 4. PERFORMANCE ANALYSIS Expected Return 1. COMPANY’S RISK INDICATOR MONITORING AND CONTROLS A combination of objective and proprietary analysis that allows a Risk vs Return representation leading to portfolio construction. Risk Indicator Hold Buy ● Expected Return: Our investment process is fundamentally driven and is a combination of objective and proprietary analysis. Our aim is to construct a portfolio to have the highest expected return for each unit of risk. This is a key factor that sets us apart from our competitors. ● Credit Quality: Our approach is focused on credit quality. We believe risk is asymmetric, and our expected returns are underpinned by analysing spreads. It’s not just about picking the right company bonds but avoiding the land mines. ● Performance Analysis: At an individual bond level, we continually review our actual returns versus expected returns to provide key insights into disparities and modify our analysis where necessary. Strong Buy 15 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND SANTANDER LATIN AMERICA FIXED INCOME TEAM Alfredo Mordezki Global Head of LatAm Fixed Income, London Global Team ● Alfredo joined SAM in 2010 and is responsible of all of the firm’s regional Latin American fixed income investments. Before joining SAM he worked for BBVA in New York and Madrid as head of Latin American Credit Trading. He has close to 20 years’ financial experience. ● He coordinates the local Latin America Fixed Income teams. He graduated in Economics from Universidad de la República (Uruguay) and holds a Msc. in International Economics from same university and a Msc. in Economics and Finance from Universitat Pompeu Fabra (Barcelona). Tiago Rego Portfolio Manager, London ● Tiago joined Santander Asset Management in 2011 as portfolio manager of the Santander Latin America Fixed Income Luxembourg fund. He has close to 7 years’ experience in financial markets. ● Previously worked as prop trader for Santander (2 years) as well as in Banco Espiritu Santo (4 years). He also worked as a consultant for Deloitte (3 years). ● He holds a degree in Management and Industrial Engineering at Instituto Superior Técnico in Lisbon. Local Team María Aramoni Credit Analyst / Portfolio Manager, Mexico ● ● 16 Maria joined SAM in March 2012 as analyst/portfolio manager within the LatAm Global Fixed Income team. She previously worked for 2 years as senior trader of the Money Market and Currency Desk for Prudential Bank México. Prior to that, she was an equity research analyst for ING Bank, covering the Food and Beverage sector, and before that a credit analyst for Santander GBM in Madrid covering Consumer and Industrial sectors (European issuers). She started her career as trader of Fixed Income and currencies for BBVA-Bancomer in Mexico. She has 14 years’ experience. Maria graduated in Economics from Universidad Iberoamericana in México and has a Msc. in Finance from CUNEF in Madrid, Spain. Marcelo Peixoto Credit Analyst / Portfolio Manager, Brazil ● ● Marcelo joined SAM in 2013. Marcelo has over 18 years’ professional experience, in Brazil and abroad, working for financial institutions, rating agency and multinational industries in a wide range of areas such as: Internal Audit, Credit Analysis, Asset Management and Investments Analysis. Previously he worked at Banco Standard de Investimentos as Head of Credit. Prior to that he was an associate director at Standard and Poor´s in the financial institutions and metals and mining ratings group. He has also worked for Alcan, Pirelli and Banco Citibank. He started his career as an internal auditor at Tribunal Regional Federal. Marcelo graduated in Business Administration from Sao Paulo University and in Accounting from Universidade Paulista. He also holds a Master in Finance by Fundacao Instituto de Administracao. SANTANDER ASSET MANAGEMENT Javier Vieiro Credit Analyst / Portfolio Manager, Chile ● Javier joined SAM in May 2012 as analyst/ portfolio manager within the LatAm Global Fixed Income team covering the Andean Region. Previously, he worked for 4 years as credit risk analyst for Standard & Poor’s International Ratings LLC, Buenos Aires Office. Before that, he worked as macro analyst for Banc Sabadell in Spain, and as economic analyst for the Economic Research Center – Catholic University of Argentina. Has 7 years’ experience. ● He holds a Bachelor’s Degree in Economics from Catholic University of Argentina, and a MSc. in Macroeconomic Policy and Financial Markets from Barcelona Graduate School of Economics (Univ. Pompeu Fabra, Barcelona). MARCH 2015 Global Team Teresa Martínez Quantitative Analyst, Madrid John Montgomery Credit Analyst/Porfolio Manager, London ● ● John rejoined SAM this year having spent an interim year in Santander’s LatAm Corporate Finance division in New York as part of their Executive Training Programme. Prior to that he was with the LatAm Fixed Income team in SAM for 2 years as a Portfolio Manager. He previously managed the Investment Operations for Santander Private Banking in Jersey, Channel Islands and has 12 years’ banking experience. John graduated with an MA in European Civilization from the University of Glasgow and is certified as completing CFA level 1, and CFA UK’s Investment Management Certificate (IMC). ● María Teresa joined SAM in August 2013 as analyst. Previously she worked as a quant in Banco Santander’s Fixed Income Quant Team (8 years). Before that, she held several non-tenure positions in the Universidad Autónoma de Madrid (10 years). ● She holds a PhD degree in Mathematics by the Universidad Autónoma de Madrid. Dipak Chouhan Product Specialist, London ● Dipak moved from London in January 2013 to join SAM Madrid as Product Specialist for the Latin America equity and fixed income strategies. Prior to this he spent over three years working for Blackfriars Asset Management, an Emerging Market boutique, where he was responsible for client servicing and business development. Dipak´s other experience includes working as an investment trust analyst at Schroders and a six year spell as an American and European equity product specialist at Fidelity. ● He graduated with a BA Honours in Economics from Birmingham Polytechnic, he is also a Member of the CFA Society of the UK. 17 SANTANDER ASSET MANAGEMENT LATIN AMERICAN CORPORATE BOND FUND Q1 2015 COMPANY MEETINGS 01. Abbot Laboratories 22. Camposol 02. Alfa 24. Cementos Pacasmayo 03. Alicorp 04. Alsea 05. América Móvil 06. Atento 07. Aval 08. Banco ABC Brasil 09. Banco BCI 10. Banco BMG 11. Banco de Chile 12. Banco Santander Chile 13. BBVA Continental 14. Bimbo 15. BioPappel 16. Bolsa Mexicana de Valores 17. BR Properties 18. Brasil Foods 19. Braskem 20. BRmalls 21. BTG Pactual 23. Cementos Argos 25. Cementos Progreso 26. Cemex 44. Financiera Independencia 65. Intergroup 88. Petrobras 45. Fitch 66. Irsa Cresud 89. Pinfra 67. Itau Unibanco 90. Queiroz Galvao O&G 46. General Shopping 47. Gentera 48. Geopark 27. Cencosud 49. Gerdau 28. Cielo 50. Gol 29. CMPC 51. Grupo Cementos Chihuahua 30. Cobre del Mayo 31. Cofide 32. Colombia Telecomunicaciones 33. Constructora Norberto Odebrecht 52. Grupo Financiero Banorte 53. Grupo Herdez 54. Grupo Interacciones 34. Construtora Andrade Gutierrez 55. Grupo Kuo 35. COSAN 57. Grupo Senda Autotransporte 36. Credito Real 37. CSN 38. Davivienda 39. Exalmar 40. Falabella 41. Famsa 42. Ferreycorp 43. Fibra Uno 56. Grupo México 58. Grupo sura 59. Hypermarcas 60. ICA, 61. IDESA 62. Inretail 63. Intercement 64. Intercorp Financial Services CONTACT DETAILS: Global Institutional Business Team Mario Díaz: +44 207 9140769 [email protected] Eric van Maasdijk: +44 207 9140895 [email protected] Dipak Chouhan: +44 207 9140716 [email protected] Fernanda Kremer: +44 207 9140945 [email protected] 18 SANTANDER ASSET MANAGEMENT 68. Javer 69. JBS 70. Kio Networks 71. Klabin 72. Lindley 73. Liverpool 74. Mabe 75. Marfrig 76. Masisa 77. Metalsa 78. Mexichem 79. Millicom 80. Minerva 81. Moody’s 91. S&P 92. Samarco 93. Santander 94. Schahin O&G 95. Scribe 96. Smiles 97. SMU 98. Suzano 99. Tanner 100. Televisa 101. TIM 102. Tupy 103. Unacem 82. OAS 104. Unifin 83. Odebrecht Oil & Gas 105. USJ 106. Vale 84. Office Depot Mexico 107. Vesta 85. Oi 109. Walmex 86. Organización Soriana 87. Pacific rubiales 108. VTR Finance For more information visit our new microsite http://golatam.santanderam.com DISCLAIMER THIS MATERIAL IS ONLY FOR INSTITUTIONAL CLIENTS AND SHOULD NOT BE RELIED UPON BY ANY OTHER PERSONS. This report has been prepared by Santander Asset Management Luxembourg SA. The information contained herein has been compiled from sources believed to be reliable, but while all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation that it is accurate or complete and it should not be relied upon as such. All opinions and estimates included herein constitute our judgment as at the date of this report and are subject to change. Santander Asset Management may change the recommendation it has on a stock at any given time. 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