Investing Into Mankind’s Primal Need
Diversifying Into Agriculture to Safeguard and Build Wealth
E/W: Info@liquid-investme...
About Liquid Investments
Founded in 2006
Alternative Investment specialists in
Emerging Markets
Focus: Helping clients to ...
Experienced Management
A Senior Management Team comprising Investment
Professionals with long standing Markets Experience
...
Know Your Client
We ask our clients what they
want, and marry that to what
they NEED
We believe that it is ESSENTIAL that
...
Retirement - lifestyle, retirement date, annuity
Education - children or grandchildren’s
Aspirations – travel, beach house...
A BASIC retirement for an average American couple
costs $1 million
Average medical costs for a couple in the US - $220,000...
Goals – Paying For It
Average US couple will need $1 million for retirement
Assuming a conservative 4-5% annual draw-down ...
Fertility rates are slowing, longevity is increasing
Between 2013 and 2050 the number of people globally 65 and older
will...
Old Age Dependency Ratio
2.8
3.7
3.7
3.7
3.7
4.2
4.2
4.4
4.5
4.6
4.7
4.9
5.6
6.3
6.8
7.9
8.9
8.9
9.8
9.9
11.2
12.5
1.2
1.5...
Stay Healthy
A recent estimate* states
$220,000 will be spent by the
average 65-year old couple for
healthcare expenses
th...
David Lloyd George (Chancellor of the
Exchequer, 1908-15)
He was the driver for a well intentioned
social experiment which...
Work Hard
The US government estimates that middle-income parents of infants born today
will spend $242,000 to raise their ...
Adding Up The Cost
Retirement Children Extra
$1 million – Pension $242,000 – Living Expenses $150,000 - Holidays
$220,000 ...
Investment Returns Set to Slide
0%
1%
2%
3%
4%
5%
6%
7%
8%
World since
1950
World since
1980
World USA Japan UK Europe Eme...
Debt Perspective
14
(The Need For) Diversification
Modern Portfolio Theory (MPT) is used by all
fundamentally driven investors
A risk manageme...
Diversification - Video
Asset Class
Commodities
Currency
Products
Geopolitics
16
MPT Equates To More Choice
17 17
Liquid Investment Theory (LIT)
Provides additional layers of diversification
Asset Class: a finite resource
Commodities: n...
Is there more primal urge for
humans than to SURVIVE?
They have to feed
themselves and their families!
Investment Focus on...
Asset class generating uncorrelated returns
compared to other investments
Value to rise due to a widening supply-demand
im...
Farmland World-Wide Is Disappearing
UN estimate 12 million ha. being
lost on annual basis worldwide
Equivalent to all farm...
Its Getting Crowded
1960 2011
World 52.58 70.54
US 69.77 75.04
Brazil 54.69 73.35
China 43.47 75.04
India 41.38 65.96
Sour...
Population Forecast
0
2
4
6
8
10
12
14
16
1950 1980 2013 2050 2100
Billion
Source: Population Division of the Department o...
70% expansion in global food
production will be required (FAO)
Forecasted 60% real increase
in food pricing
Other factors ...
Illustrious Investors…
“… get a Lamborghini dealership in
Oklahoma or in Nebraska because
farmers are going to be driving ...
Recent Farmland Purchases in Brazil
Investor Origin Area, ha. Use of Farmland
Cresud Argentina 175,000 Cattle, Crops, Suga...
Best of the BRICs
27
More to offer than guns and oil unlike RUSSIA
No ethnic/religious tensions or hostile neighbors unlik...
Why Brazil (1)
57
40
35
28
25
24
18
16
16
14
14
8
6
3
0 10 20 30 40 50 60
Orange Juice
Coffee
Oranges
Soybean…
Ethanol
Sug...
Why Brazil (2)
6th largest global
economy, 5th largest by
2015
5th largest consumer
market by 2020
4th largest global
reci...
Diversification
Modern
Portfolio
Theory
Liquid
Investment
Theory
Agriculture Brazil
The Road to Brazil
Asset Security and
...
A Reversion to Mean
31
2 reasons it is of particular interest to us:
1. All parts can be processes
2. Current supply-demand imbalance
Fastest gro...
Coconuts in Brazil
0
20
40
60
80
100
120
Brazil
India
Indonesia
Philippines
Sri Lanka
Thailand
High levels of agrarian
R&D...
Coconut Plantation Video
Global Organic Food &
Beverage market size
forecast at $105 billion in
2015, a doubling in 5 years
Organics already accoun...
Coconut Plantation – Key Financials
Return on Investments between 11-
40%
Projected IRR to yield up to 18%
over twenty yea...
‘The Tree of the 21st Century’
– United Nations
Indigenous to Asia
Effective natural bio-pesticide
A non-synthetic method ...
Neem Plantation Video
A wholesale exodus out of antibiotic development by Big Pharma. over the past 15 years
Neem – A Weapon for the Post-antibi...
Neem Plantation – Key Financials
Return on Investments between
11-44%
Projected IRR to yield up to 20%
over twenty years
C...
The Importance of Asset Choice
Travelling from the US to China in 48
hours? However hard you tried on your
bicycle, you ar...
E/W: Info@liquid-investments.com | www.liquid-investments.com
UK OFFICE: 9th Floor, 1 Knightsbridge Green, London, SW1X 7Q...
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Liquid Investments-Investing into mankind's primal need

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Investing into mankind's primal need -
Diversifying Into Agriculture to Safeguard and Build Wealth

By Liquid Investments
www.liquid-investments.com

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  • A Grey Dawn Beckons
  • Liquid Investments-Investing into mankind's primal need

    1. 1. Investing Into Mankind’s Primal Need Diversifying Into Agriculture to Safeguard and Build Wealth E/W: Info@liquid-investments.com | www.liquid-investments.com UK OFFICE: 9th Floor, 1 Knightsbridge Green, London, SW1X 7QA BRAZIL OFFICE: Av Santos Dumont 2828, Sala 1501, Aldeota, Fortaleza, 60150 - 162 UK+44 (0) 20 7084 7421 | USA +1 (347) 647 0127 | BRAZIL +55 (85) 3224 6659
    2. 2. About Liquid Investments Founded in 2006 Alternative Investment specialists in Emerging Markets Focus: Helping clients to diversify away from the uncertain financial markets in the ‘West’ and into Agriculture Commodities in Brazil Brazil 1
    3. 3. Experienced Management A Senior Management Team comprising Investment Professionals with long standing Markets Experience Global work experience – Europe, CIS, M-East, Far-East raising several Hundred Million dollars Experience: Deutsche Bank, Santander, Arthur Andersen, Aon, Spectron Group. In Banking, Investments, HNW Advisory, Tax Advisory, Commodities Trading 2
    4. 4. Know Your Client We ask our clients what they want, and marry that to what they NEED We believe that it is ESSENTIAL that clients identify and plan for their future as there are some very clear threats to their plans that must be understood and navigated 3
    5. 5. Retirement - lifestyle, retirement date, annuity Education - children or grandchildren’s Aspirations – travel, beach house, new car etc Legacy or inheritance Plan for medical costs that may be encountered in later life What are YOUR Goals? 4
    6. 6. A BASIC retirement for an average American couple costs $1 million Average medical costs for a couple in the US - $220,000 Education costs – per child up to $520,000 until age 18 and a “normal" 4 year degree costs $100,000 (Harvard costs $260,000) Taking a holiday once a year for 15 years in retirement mounts up and costs on average $150,000 Monetize YOUR Goals 5
    7. 7. Goals – Paying For It Average US couple will need $1 million for retirement Assuming a conservative 4-5% annual draw-down (pre- inflation, emergencies) Investing in a tax-free muni bond portfolio, drawing down $40,000 annually… There is a 72% chance nest egg will be exhausted before you die 6
    8. 8. Fertility rates are slowing, longevity is increasing Between 2013 and 2050 the number of people globally 65 and older will TRIPLE to 1.5 billion, one-sixth of the world’s population Inspite of people living longer, average retirement age throughout the 20th Century remained static at 64 Apart from (adverse) demographics, there are high levels of debt in developed economies, slowing rates of growth in emerging markets… The Problems – Big Picture 7
    9. 9. Old Age Dependency Ratio 2.8 3.7 3.7 3.7 3.7 4.2 4.2 4.4 4.5 4.6 4.7 4.9 5.6 6.3 6.8 7.9 8.9 8.9 9.8 9.9 11.2 12.5 1.2 1.5 2.3 2.0 2.4 2.1 2.1 1.9 2.3 2.1 2.6 2.4 2.2 1.5 2.5 2.4 2.5 2.6 3.1 3.2 4.5 6.1 0 2 4 6 8 10 12 14 16 18 20 Japan Spain Denmark Switzerland United Kingdom OECD Netherlands Czech Republic Australia Canada United States Russian Federation Ireland Korea Chile China Mexico Brazil Indonesia Turkey India South Africa Source: OECD (2011) Old-Age Support Ratio: Number of People of Working Age (20-64) Per Person of Pension Age (65+) 2008 2050 8
    10. 10. Stay Healthy A recent estimate* states $220,000 will be spent by the average 65-year old couple for healthcare expenses throughout retirement The Society of Actuaries estimate a couple retiring at 55 and living to 85 will spend $744,800 on healthcare *Fidelity Investments 9
    11. 11. David Lloyd George (Chancellor of the Exchequer, 1908-15) He was the driver for a well intentioned social experiment which many of us are paying for today – state funded pensions. While his original system was workable, our modern day system has not adapted and simply is not affordable No Longer Fit For Purpose 10
    12. 12. Work Hard The US government estimates that middle-income parents of infants born today will spend $242,000 to raise their child to the age of 18…but this excludes college fees, which can be up to an additional $520,000…before university fees are added, a further $100,000-260,000 = up to $1 million per child 11
    13. 13. Adding Up The Cost Retirement Children Extra $1 million – Pension $242,000 – Living Expenses $150,000 - Holidays $220,000 – Medical Expenses $520,000 + $260,000 College + University $1.37 million $1.02 million $150,000 = $2.54 million 12
    14. 14. Investment Returns Set to Slide 0% 1% 2% 3% 4% 5% 6% 7% 8% World since 1950 World since 1980 World USA Japan UK Europe Emerging markets Historical high returns Prospective lower returns Source: Credit Suisse Global Investment Returns Yearbook 2013 Equities Bonds 13
    15. 15. Debt Perspective 14
    16. 16. (The Need For) Diversification Modern Portfolio Theory (MPT) is used by all fundamentally driven investors A risk management process whereby different types of investments are blended Result – A collective performance generating higher returns with lower risk than an individual investment 15
    17. 17. Diversification - Video Asset Class Commodities Currency Products Geopolitics 16
    18. 18. MPT Equates To More Choice 17 17
    19. 19. Liquid Investment Theory (LIT) Provides additional layers of diversification Asset Class: a finite resource Commodities: not correlated with other assets Currency: independent Products: agricultural, consumer, industrial, pharmaceutical sectors Geopolitics: 5th largest global economy by 2015, stable democracy 18
    20. 20. Is there more primal urge for humans than to SURVIVE? They have to feed themselves and their families! Investment Focus on Agriculture 19
    21. 21. Asset class generating uncorrelated returns compared to other investments Value to rise due to a widening supply-demand imbalance Why Agriculture? 20
    22. 22. Farmland World-Wide Is Disappearing UN estimate 12 million ha. being lost on annual basis worldwide Equivalent to all farmland in California disappearing every 3-years The loss is permanent and due to deforestation, chemical usage, livestock overgrazing and the impact of global warming 21
    23. 23. Its Getting Crowded 1960 2011 World 52.58 70.54 US 69.77 75.04 Brazil 54.69 73.35 China 43.47 75.04 India 41.38 65.96 Source: IMF 2012 7.2 billion people in 2013 to 10 billion in 2050 Protein rich diets throughout emerging markets Life expectancy is rising 22 Life Expectancy (years)
    24. 24. Population Forecast 0 2 4 6 8 10 12 14 16 1950 1980 2013 2050 2100 Billion Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat (2013) World Population, 1950-2100 Africa Asia Europe Latin America and the Caribbean Northern America Oceania 23
    25. 25. 70% expansion in global food production will be required (FAO) Forecasted 60% real increase in food pricing Other factors driving price increases include rising costs of fertilizers and energy, the impact of climate change and the rising biofuel demand A Primal Need 99.6 72.6 63.0 71.9 62.1 70.6 0 20 40 60 80 100 120 (%) Source: Bank of America Merrill Lynch Agricultural Land Price Appreciation in Brazil, 2010-2013 24
    26. 26. Illustrious Investors… “… get a Lamborghini dealership in Oklahoma or in Nebraska because farmers are going to be driving the Lamborghinis” Jim Rogers Other investors George Soros, key pension institutions such as TIAA- CREF, firms like BlackRock, Morgan Stanley and large and influential sovereign wealth funds such as the China Investment Corporation and Temasek (Singapore) 25
    27. 27. Recent Farmland Purchases in Brazil Investor Origin Area, ha. Use of Farmland Cresud Argentina 175,000 Cattle, Crops, Sugarcane El Tejar Argentina 220,000 Cereals, Oilseeds Chongqing Grain Group China 200,000 Soybean Pengxin Group China 200,000 Cotton, Soybean Louis Dreyfus France 250,000 Sugarcane Aquila Germany 250,000 Cattle, Sugar Shree Renuka Sugars India 133,000 Sugarcane Adecoagro US 165,000 Cattle, Coffee, Grains, Soybean, Sugarcane TIAA-CREF Retirement Equity Fund US 424,000 Soybean, Sugarcane Tiba Agro US 320,000 n/a 26
    28. 28. Best of the BRICs 27 More to offer than guns and oil unlike RUSSIA No ethnic/religious tensions or hostile neighbors unlike INDIA A democracy unlike CHINA BRAZIL - Largest reserves of freshwater globally, 329 million ha. of rich arable land and the largest tropical forests responsible for generating 20% of the world’s oxygen, set to be the worlds number one producer of food by 2020.
    29. 29. Why Brazil (1) 57 40 35 28 25 24 18 16 16 14 14 8 6 3 0 10 20 30 40 50 60 Orange Juice Coffee Oranges Soybean… Ethanol Sugar Cattle Poultry Beef&Veal Iron Ore Bauxite Cotton Milk Crude Oil Source: Santander % of World Production From Brazil 28
    30. 30. Why Brazil (2) 6th largest global economy, 5th largest by 2015 5th largest consumer market by 2020 4th largest global recipient of FDI in 2012 FX reserves equivalent to the rest of the continent combined 19 23 26 27 40 44 47 49 54 59 63 65 73 120 147 0 50 100 150 200 Belgium Luxembourg Chile India Ireland Russia Canada Australia Singapore France UK Brazil Hong Kong China USA Source: United Nations Conference on Trade and Development (UNCTAD) US$Billion 29 Global FDI Ranking, 2012
    31. 31. Diversification Modern Portfolio Theory Liquid Investment Theory Agriculture Brazil The Road to Brazil Asset Security and Profit Potential 30
    32. 32. A Reversion to Mean 31
    33. 33. 2 reasons it is of particular interest to us: 1. All parts can be processes 2. Current supply-demand imbalance Fastest growing markets: Coconut Water Activated Carbon Coconut Oil Biofuels The Humble Coconut 32
    34. 34. Coconuts in Brazil 0 20 40 60 80 100 120 Brazil India Indonesia Philippines Sri Lanka Thailand High levels of agrarian R&D in Brazil Highest yielding coconut producer globally 33 Coconut Yield by Country (‘000 kg/ha.)
    35. 35. Coconut Plantation Video
    36. 36. Global Organic Food & Beverage market size forecast at $105 billion in 2015, a doubling in 5 years Organics already account for 4% of total US food sales and forecast to grow by 14% between 2013-18 The Organic Potential 35
    37. 37. Coconut Plantation – Key Financials Return on Investments between 11- 40% Projected IRR to yield up to 18% over twenty years Option to purchase immediate earnings stream at Fazenda Santa Rita 36
    38. 38. ‘The Tree of the 21st Century’ – United Nations Indigenous to Asia Effective natural bio-pesticide A non-synthetic method of disease and bacteria suppression The Attraction of Neem 37
    39. 39. Neem Plantation Video
    40. 40. A wholesale exodus out of antibiotic development by Big Pharma. over the past 15 years Neem – A Weapon for the Post-antibiotic Era 16 14 10 7 4 2 0 2 4 6 8 10 12 14 16 18 1983-1987 1988-1992 1993-1997 1998-2002 2003-2007 2008-2012 NumberofAntibacterialNewDrugApprovals Source: FDA's Center for Drug Evaluation and Research (CDER) Antibacterial New Drug Approvals 39
    41. 41. Neem Plantation – Key Financials Return on Investments between 11-44% Projected IRR to yield up to 20% over twenty years Crop care included for the first five years 40
    42. 42. The Importance of Asset Choice Travelling from the US to China in 48 hours? However hard you tried on your bicycle, you are just not going to get there. The only guaranteed way is by jet plane. The same applies to investments – make sure you choose the right assets to get the job done 41
    43. 43. E/W: Info@liquid-investments.com | www.liquid-investments.com UK OFFICE: 9th Floor, 1 Knightsbridge Green, London, SW1X 7QA BRAZIL OFFICE: Av Santos Dumont 2828, Sala 1501, Aldeota, Fortaleza, 60150 - 162 UK+44 (0) 20 7084 7421 | USA +1 (347) 647 0127 | BRAZIL +55 (85) 3224 6659 Thank You For Your Attention 42

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