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From Komfie Manalo, Opalesque Asia:

London-based LNG Europa Credit Fund has maintained its position as amongst the top performers in European credit after ending May +8.36 year-to-date despite returning -1.69% during the month, its first negative performance this year. LNG Europa returned +6.65%, +1.86%, +0.69% and +0.77 from January to April this year. But the markets showed very weak performance in May with the S&P500 -1.35%, DAX -3.11%, and MSCI -2.67%.

In its monthly communication with investors, the fund remains optimistic it would sustain its strong results in the second half of 2010 due to the following factors:

• Corporate balance sheets are in excellent shape
• Default rates continue to fall and are expected to be below 1.5% for 2011
• Refinancing short-term debt continues with both maturity extension and falling costs of borrowing
• Consumer demand and corporate revenues are stable to increasing
• Capital continues to be inexpensive, relative to Ebita margins and IRR's

"The principal catalyst to making money is unique to Europe. We believe that the dislocation caused by Greece Ireland and Portugal create a large number of anomalies, mispricing's and relative value opportunities. We have increased our......................

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