Monthly Commentary February

GAM Star Credit Opportunities (USD)

Despite a strong start to the month, the last week of February was marked by strong ‘risk-off’ sentiment activity due
to negative headlines on the Covid-19 coronavirus. The fund was not immune as reflected by a negative performance in the month. While we are monitoring the situation closely, we expect this to be credit neutral for the fund. Spreads on the USD-denominated subordinated debt of financials widened significantly during the month and we feel valuations are extremely attractive at the moment. The 10-year US rate fell significantly at the end of the month, following fears of the coronavirus. In this low interest rate environment, we feel the fund is well positioned by capturing spreads of more than 370 bps.

We are getting to the end of earnings season and we continue to observe strong operating performance and
what we regard rock-solid balance sheets. Overall, the tier 1 common capital (CET1) ratios of banks continue to increase, while non-performing
loans (NPLs) continue to decrease showing the strength of the financial sector and the results achieved by the multi-year regulatory process of capital strengthening. For insurers, we have also seen strong solvency ratios. For more details and specific examples please refer to the Spotlight section in this commentary.

The fund is well positioned to capture high and predictable income, in our view, and given the attractive valuation levels, we feel the fund has scope to benefitfrom further capital gains.

GAM Star Credit Opportunities (EUR)

Despite a strong start to the month, the last week of February was marked by strong ‘risk-off’ sentiment due to negative headlines on the Covid-19 coronavirus.The fund was not immune as reflected

by negative performance in the month. While we are monitoring the situation closely, we expect this exogenous event to be credit neutral for the fund. Spreads on the euro-denominated subordinated debt of financials widened significantly during the month. We feel valuations

are extremely attractive at the moment. The 10-year bund rate fell significantly
at the end of the month, following fears of the coronavirus. In this low interest rate environment, we feel the fund is well positioned by capturing spreads of more than 450 bps.

We are getting to the end of earnings season and we continue to observe strong operating performance and
what we regard as rock-solid balance sheets. Overall, the tier 1 common capital (CET1) ratios of banks continue to increase, while non-performing loans (NPLs) continue to decrease, showing the strength of the financial sector
overall and the results achieved by the multi-year regulatory process of capital strengthening. For insurers, we have also seen strong solvency ratios. For moredetails and specific examples please refer to the Spotlight section in this commentary

The fund is well positioned to capture high and predictable income, in our view, and given the attractive valuation levels, we feel the fund has scope to benefitfrom further capital gains.

GAM Star Credit Opportunities (GBP)

Despite a strong start to the month,
the last week of February was marked by a strong ‘risk-off’ sentiment due
to negative headlines on the Covid-19 coronavirus. The fund was not immune as reflected by a negative performance in the month. While we are monitoring the situation closely, we expect this to be credit neutral for the fund. Spreads on the GBP-denominated subordinated debt of financials widened significantly during the month and we feel valuations are extremely attractive at the moment. The 10-year Gilt rate fell significantly at the end of the month, following fears of the coronavirus. In this low interest rate environment, we feel the fund is well positioned by capturing spreads of more than 450 bps.

We are getting to the end of earnings season and we continue to observe strong operating performances and
what we regard as rock-solid balance sheets. Overall, the tier 1 common capital (CET1) ratios of banks continue to increase, while non-performing loans (NPLs) continue to decrease, showing the strength of the financial sector
overall and the results achieved by the multi-year regulatory process of capital strengthening. For insurers, we have also seen strong solvency ratios. For more details and few examples please refer to the Spotlight section in this commentary,

The fund is well positioned to capture high and predictable income, in our view, and given the attractive valuation levels, we feel the fund has scope to benefitfrom further capital gains.

© 2017 Atlanticomnium.

Authorised and regulated by Swiss Financial Market Supervisory Authority FINMA. Authorised and regulated by the Financial Conduct Authority FCA. The information and materials on this site do not constitute any form of advice. This website and all the information contained in it does not constitute a formal commitment by the company Atlanticomnium. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this website and all the information in it is strictly prohibited. We decline all responsibility for any errors or omissions in the contents of this website and all the information contained in it which arise as a result of electronic transmission. If verification is required please request a hard-copy version. This website and all the information contained in it should not be construed as an invitation or offer to buy or sell any securities or related financial instruments.