Targeted Returns

Chenavari Toro Income Fund Limited (the Company)

25 June 2018

Targeted Returns 

The Board of Directors has reviewed the Company's investment opportunity set particularly in the light of the net target return of 12-15 per cent originally set out in the Offering Memorandum dated 2015. Since that time markets have evolved such that the Board now believes a net return target of 9-11 per cent more accurately reflects the return which is achievable from the strategy in current conditions. The Board will keep the return target - a guide as to what investor might expect from the strategy - under regular review.

To put the targeted performance in perspective, it should be noted that the portfolio manager has considered it so far prudent not to use leverage. Moreover, the portfolio continues to be fully FX hedged and balanced asset allocation and strategic hedging are used to keep under control the maximal potential drawdown in any scenario. This places Toro in the lower risk band of the European Structured Debt investments as compared to its peers.

The above change on return expectation has no impact on the ability of the company to service its dividend - thus the Board continues to believe that the Company's performance can support the minimum dividend target of € 0.08 per ordinary share for the coming twelve months.

The net 9-11 per cent target is consistent with the rebalancing of the portfolio that is taking place from lower yielding public securities to higher yielding private opportunities and credit origination. Once this rebalancing is complete, the Board will review whether the net 12-15 per cent target is again appropriate.

Further information in relation to the Company is available at:

http://www.chenavaritoroincomefund.com

Enquiries:

Kirstie Sumarno

Chenavari Investment Managers

Email: tlir@chenavari.com

Telephone: +44 20 7259 3600