IMPORTANT INFORMATION AND DISCLAIMER regarding the investment letter :

This letter relates to Drakai Systematic Credit Fund (the “Fund“), open-ended sub-fund of Drakai Systematic Credit ICAV (the “ICAV“), registered as an Irish collective asset-management vehicle on 10 March 2020 with variable capital constituted as an umbrella fund with segregated liability between sub-funds in Ireland and authorised by the Central Bank of Ireland (the “Central Bank“) pursuant to the Collective Asset-Management Vehicles Act 2015.

This letter has been drafted such that its contents (i) are fair, clear and not misleading; and (ii) do not contradict or diminish the significance of the information contained in the prospectus of the ICAV (the “Prospectus“) and the supplement the Fund (the “Supplement“) or any other disclosures made to investors.

This letter is not, nor is it intended to be an offer to invest in the Fund. Any such offer will only be made pursuant to delivering of the Prospectus and the Supplement.

This information is strictly confidential and may not be reproduced for, disclosed to or otherwise provided in any format to any other person or entity without the prior written consent of the ICAV or Drakai Capital S.A.S. (the alternative investment fund manager of the ICAV, the “AIFM“).  This document is not a recommendation to subscribe to the Fund and does not constitute an offer to sell or a solicitation or an offer to buy shares in the Fund. This letter also presents a paper portfolio of the Fund, its performance-based results, the AIFM’s thought process relating to the paper portfolio and various estimates.

The distribution of this letter may be restricted in certain jurisdictions. The information herein is for general guidance only, and it is the responsibility of any person or persons in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction.

The Fund’s investments strategy is not suitable for all investors and is speculative. There can be no assurance that investment objective will be achieved or that there will be a return on capital.

Past, backtest or estimated performance is not necessarily indicative of future results and no assurance can be made that profits will be achieved or that substantial losses will not be incurred by the Fund. This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in the Fund.

The financial counterparties selected for the execution and processing of orders are reputable intermediaries and are regularly assessed by Drakai Capital. Drakai Capital has sent you its best selection and best execution policy. This document is always available on request from Drakai Capital. In the event of a change in this policy, the update will be sent to you.

HISTORICAL PERFORMANCE INFORMATION DEPICTED HEREIN IS NOT INDICATIVE OF FUTURE PERFORMANCE OR INVESTMENT RETURNS, AND ACTUAL EVENTS OR CONDITIONS MAY NOT BE CONSISTENT WITH, AND MAY DIFFER MATERIALLY FROM, THOSE DEPICTED.

The AIFM does not make any representations or warranties as to the accuracy or completeness of any estimated performance figures, and further no such estimated performance figures shall be relied upon as a promise by, or representation by, the ICAV or the AIFM whether as to past or future performance results. Past performance is not indicative of future results.

NOTES REGARDING PAPER PORTFOLIO. This letter contains hypothetical (simulated) performance results and other related information. Results shown therefore reflect hypothetical simulated performance of the Fund (“Hypothetical Results”) and do not reflect the actual results of any investment product or the returns that any investor actually achieved. The period shown for the Hypothetical Results is based on available information and the AIFM believes the period to be representative and statistically valid. However, prior periods, if selected, may have different results, including losses.

Hypothetical Results are shown for illustration purposes only, do not reflect actual trading results, and should not be relied upon. The Hypothetical Results have inherent limitations, some of which are described below. They are generally prepared with the benefit of hindsight, do not involve financial risk or reflect actual trading by any investment product, and therefore do not reflect the impact that economic and market factors, including concentration, lack of liquidity or market disruptions, regulatory (including tax) and other conditions then in existence may have on investment decisions. The Hypothetical Results may have under or overcompensated for the impact, if any, of certain market factors. In fact, there can be sharp differences between the Hypothetical Results and the actual results of any investment product. There also may be a material difference between the amount of assets invested in an actual investment product at any time and the amount of the assets assumed in the Hypothetical Results, which difference may have an impact on the management of any such investment product.

Hypothetical Results have also been used to generate further simulated data, as indicated, which is shown for illustration purposes only. Given that such simulations are based on the Hypothetical Results, such simulations, similar to the performance of the Hypothetical Results, do not reflect actual trading results, have inherent limitations and should not be relied on.

Another limitation is that investment decisions reflected in the Hypothetical Results were not made under actual market conditions and therefore cannot completely account for the impact of financial risk or other factors on the manner in which an actual investment product may be managed. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of our specific trading program which cannot be fully accounted for in the preparation of the Hypothetical Results and all of which can adversely affect actual trading results. Past performance is not indicative of future results.

The performance of the paper portfolio has been affected by economic and market conditions, including but not limited to the volatility and market dislocation resulting from the global pandemic caused by COVID-19. The short-term and long-term impact of COVID-19 on the operations of the AIFM and the performance of the Fund is difficult to predict. Any potential impact on such operations and performance will depend to a large extent on future developments and actions taken by authorities and other entities to contain COVID-19 and its economic impact. These potential impacts, while uncertain, could adversely affect the performance of the Fund.

The AIFM has no obligation to update, modify or amend this document. Opinions expressed herein may not be shared by all employees of the AIFM and may be subject to change without notice.

The information presented herein is intended to be a summary only and the AIFM makes no representation as to the accuracy of such information.  This presentation may contain targeted returns and forward-looking statements. “Forward-looking statements,” can be identified by the use of forward-looking terminology such as “may,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof, or variations thereon, or other comparable terminology.  Investors are cautioned not to place undue reliance on such returns and statements, as actual returns and results could differ materially due to various risks and uncertainties. In considering any transactional history or prior performance information contained herein, investors should bear in mind that transactional history or prior performance is not necessarily indicative of future results, and there can be no assurance that the Fund will achieve comparable results. Such descriptions are provided for illustrative purposes only and there can be no assurance that the AIFM will be able to implement its investment strategies in a similar manner or pursue similar transactions or be able to avoid losses.

The categorizations, estimates, quantifications, sensitivities, and other information provided in this letter may not reflect the criteria employed by the AIFM to evaluate exposure, risks, or trading strategies.  No representation is made that the categorizations, estimates, quantifications, sensitivities and any other information in this letter are complete or adequate, or that they would be useful in successfully limiting exposure or risk, identifying and/or evaluating profitable or risky trading strategies, or constructing a profitable or limited-risk portfolio.

The presentation of the exposures or risks identified in this presentation is not intended to be complete. There may be other exposures or risks, of which the AIFM may or may not be aware, that would affect the performance or risks of the Fund. In addition, trading strategies may involve, among other techniques, leverage, short selling and various derivatives, each of which entails separate and distinct risks.

The AIFM is authorized as an alternative investment fund manager by the financial regulator in France (Autorité des marchés financiers, the “AMF“) and is operating in Ireland on the basis of a cross-border passporting approved by the Central Bank. The AIFM is also cleared by the Central Bank to act as an investment manager with discretionary investment management powers in respect of investment funds authorized in Ireland.