Harvest one percent fund presentation version 2 open subscriptions


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Harvest one percent fund presentation version 2 open subscriptions

  1. 1. HARVEST One Percent Fund Ltd “ Serving the International Investor” Investment Manager: Harvest Financial Services Ltd Regulated by the Cyprus Securities and Exchange Commission, License Number 021/03 – Member of the Investor Protection Fund (TAE) Harvest One Percent Fund Ltd Registered and Regulated by the Central Bank of Cyprus As per the international Collective Investment Scheme Law No 47 (I) of 1999 (ICIS) CONTACT: Telephone + 357 22 552800 info@harvestgroup.com.cy This document is for informational purposes only. This document does not constitute an offer, an invitation to offer, or a recommendation to enter into any transaction, nor does it constitute investment advice. This material does not constitute a solicitation to buy or sell securities in any jurisdiction in which such a solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation.
  2. 2. Table of Contents I. Fund Overview I. Fund Overview II. Manager Overview II. Manager Overview III. Principal Features III. Principal Features IV. Advantages IV. Advantages V. Summary //Timing V. Summary Timing 2
  3. 3. Fund Overview Characteristics Registered as an ICIS - International Collective Investment Scheme Regulated by the Central Bank of Cyprus, Law No 47 (I) of 1999 (ICIS) International Variable Capital Company open to a maximum of 100 investors Share capital equal to the Net Asset Value of the shares at any time Exemption from tax on profit from sale of securities & dividends No withholding tax on income repatriation Exempt from taxation 3
  4. 4. Fund Overview Unique Features Invests In Cyprus & Greek Markets in FTSEB* Components Active Asset Allocation Policy Multi Asset Class Investment Strategy (e.g. equities, corporate bonds, derivatives) Superior Risk Adjusted Returns Low Entry Amount Short to Mid Term Horizon Above Average Returns (Current interest rates under pressure) Highly Regulated – Central Bank of Cyprus & Cyprus Securities and Exchange Commission Dual due diligence & compliance performed by internal auditors KPMG & Hellenic Bank’s Internal Audit & Compliance *FTSEB is the FTSE/Athex-CSE Banking Index 4
  5. 5. Manager Overview Harvest Financial Services Ltd • Leading Investment Management Company Based in Nicosia, Cyprus • Regulated by the Cyprus Securities & Exchange Commission License No. 021/03 • Member of the Investor Protection Fund (TAE) • Member of the Financial Planning Association (Practitioners Division) • Only Investment Firm in Cyprus to have association with a local banking institution. 5
  6. 6. Manager Overview Over 10 Years of Experience in the Provision of Wide Range of Mutual Funds, Hedge Funds & Portfolio Management Advisory Services: Tailored Portfolio Construction Construction & Management of Diversified High Quality Fund Portfolios Tailor Made for Private & Institutional Clients Distribution of Hedge Funds Distribution of a Wide Range of Fund of Hedge Funds Products to Retail & Institutional Clients Structured Products Structuring & Management of Products Linked to Hedge Funds Traditional Investment Portfolio Management Construction & Management of Traditional, Predominantly Long/Short Portfolios 6
  7. 7. Manager Overview Harvest Financial Services Ltd Head Office in Nicosia: key management and staff nearby & available to investors to answer questions regarding investment strategy, performance, mechanics & administration Affiliated with some of the World’s most prestigious product & investment service providers 7
  8. 8. Manager’s Style Integrated Fund Management Flexibility Integration Competitive Fund Competitive Fund Innovation Management Management Reactivity Competitiveness 8
  9. 9. Manager’s Objectives Capital Appreciation Capital Appreciation Absolute Return Absolute Return Capital Preservation Capital Preservation Risk Adjusted Risk Adjusted Capital Protection Capital Protection Equities/Futures Correlation Correlation Techniques Techniques 9
  10. 10. Fund’s Objectives Harvest One Percent Fund Aggressive Absolute Return Fund Monthly target return objective of 1% Annual target return objective above 12% Volatility of the Index as of 3 June 2009 is 57% → Above average returns on a risk adjusted basis It is expected that the fund will have higher than average volatility but through diversification of strategies can mitigate draw downs during bear market environments. 10
  11. 11. Fund’s Objectives high Venture Capital Private Equity Aggressive Funds Target RETURN Small cap stocks Upside Large cap stocks Government Bonds Time-deposits Downside low Cash low RISK high 11
  12. 12. Attractive Features Harvest One Percent Fund 70% of Investments: Index Tracking of the Banking Sector on Cyprus & Greek Stock Exchanges – FTSE/Athex-CSE Banking Index 30% of Investments: Exploiting mispriced securities within Athex & CSE Multi Instrument Global Investments such as: Equities, Bonds, Derivatives, CFDs, GDRs, ADRs Use of derivatives to protect positions Aggressive yet conservative approach: Retaining 50% of the portfolio in Cash during bear markets Low Entry amount to Investors: (Minimum: EUR 10,000) 12
  13. 13. FTSE/ATHEX-CSE BANKING INDEX Stock Closing Price % % Market % Listing Name Code (16/06/2009) Change Weighting Capitalization Participation Alpha Bank S.A. ALPHA 8.87 -4.1 100 3,645,362,903.24 15.09 Agricultural Bank of Greece S.A. ATE 1.63 -4.1 20 295,174,888.74 1.22 Bank of Cyprus Public Company Ltd BOCY 4.09 -3.8 100 2,399,446,173.04 9.93 Marfin Popular Bank Public Company Ltd CPB 2.28 -4.2 100 1,892,686,821.72 7.83 National Bank of Greece S.A. ETE 18.3 -11 100 9,088,773,122.70 37.62 EFG Eurobank Ergasias S.A. EUROB 7.95 -8.6 75 3,145,762,780.43 13.02 Hellenic Bank Public Company Ltd HB 1.23 -3.9 75 365,693,532.45 1.51 General Bank of Greece S.A. TGEN 1.93 -5.4 40 85,643,428.85 0.35 Piraeus Bank S.A. TPEIR 7.5 -6.3 100 2,522,043,892.50 10.44 TT Hellenic Postbank S.A. TT 5.05 -4.4 50 718,276,559.10 2.97 Source: Athens Stock Exchange http://www.ase.gr 13
  14. 14. Advantages Why Track the Banking Index? First ever Fund in the region to track extensively the Banking Index of Cyprus & Greece combined The Banking Index includes both the highest capitalized & most liquid financial listings in both Cyprus & Greece Banks: represent over 90% of the Cyprus Market Capitalization Banks: represent over 50% of the Greek Market Capitalization Cyprus & Greek Banks enjoy medium credit ratings Banks in Cyprus enjoy increasing foreign deposits despite global financial crisis Cyprus & Greek Banks not as affected by the world Financial Crisis as most developed nations due to their small but flexible economies which adjust easier to economic downturns 14
  15. 15. Advantages Cyprus Lowest Taxes within EU Positive GDP growth despite world financial crisis Recent developments in terms of oil explorations between Cyprus & neighbouring nations is deemed promising Market valuations are low & dividend yields are attractive Market is currently trading at low levels, with prospects for significant upside expected shortly with market recovery 15
  16. 16. Advantages Greece Higher recorded GDP growth rates than average EU nations Positive GDP growth despite world financial crisis Major Investor in Neighbouring Countries Significant Benefactor from EU Fund inflows Market is currently trading at low levels, with prospects for significant upside expected shortly with market recovery 16
  17. 17. Summary of Terms Final Maturity • Open Ended investments Unlimited holding period. Currency • EUR or currency equivalent on the subscription date. Form • Shares – ICIS UNITS Target Initial Fund • [●] MM, minimum 5MM Size Issue Price • 100% Redemption Amount • The shares will be redeemed on the NAV: • The Shares may be redeemed prior to that on a monthly basis after year 1 . • Share Price (t) – Early Redemption Premium, whereby the Early Redemption Premium is initially 4%, and then decreasing by 1% on each anniversary of the Issue Date, until reaching 0% Additional Investments • Investors will be able to subscribe additional amounts in the fund on a monthly basis. Initial Allocation into • The Initial Allocation of the Issuer to the Underlying Fund will be equal to 100%; the Underlying Fund thereafter the Trading Administrator will adjust the allocation between the assets of the Issuer in accordance with the Rebalancing Rules Investment Manager • Harvest Financial Services Ltd - Transaction Fees • Investment Manager Fees: 2.0% annual management fees on NAV and an incentive fee of 20% of annual returns in excess of 3 month EURIBOR rate 17
  18. 18. Risk Statements Investment Horizon: The fund has a minimum holding period of 2 years with unlimited duration. Investors must maintain capital for this period. Non-Reliance on Historic Past performance does not guarantee future performance; investment in the fund should be based upon Returns: a complete assessment of their terms. Limitations of Simulated Certain presentations and back-testing or other statistical analysis materials that may have been Returns: provided in connection with explanations of the mechanics and/or potential returns of the Notes use pro forma analysis and hypothetical circumstances to estimate how the Reference Portfolio may have performed prior to its actual existence. Harvest provides no assurance or guarantee that the Notes will operate or would have operated in the past in a manner consistent with those materials. As such, any historical returns projected in such material, or any hypothetical simulations based on this analysis, provided in relation to the fund may not reflect the performance of, and are no guarantee or assurance in respect of the performance or returns of, the fund. Non-Linear Returns: Absent the occurrence of a Knock Out, the return on the Notes will be based on the performance of the Reference Portfolio over time. As such it is not possible to predict the return on the fund simply by reference to the initial and final values of the Reference Portfolio. The application of the Fund’s Mechanics may result in an opportunity cost when the return on the fund is compared to either a direct investment in the Reference Portfolio or as the underline assets principal protected investment where the exposure to the Reference Portfolio is achieved through a conventional call option issued by the product providers. Clean Up Event: If there is a significant reduction in either the value of the Reference Portfolio or, shortly after issuance of the fund, a rapid decline in interest rates, a Clean Up Event may occur. Under both such circumstances, the return on the fund will cease to offer any potential capital gain as a function of the future performance of the Underlying Fund and will effectively become that of the remaining asset classes. Credit Risk: The value of the fund may decline dramatically based on market conditions. Investors understand that there are risks involved and capital may decline due to market conditions and valuations. Past performance is not guaranteed for future returns. Disclosure of Investor It may be required for purposes of the Investment Manager’s compliance procedures to disclose to the Identity: name of the initial investor in the fund. LIMITED OFFER 18
  19. 19. Important Legal Note • The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities relating to any of the products referenced herein, notwithstanding that any such securities may be currently being offered to others. Any such offering will be made only in accordance with the terms and conditions set forth in the Offering Memorandum pertaining to such fund. Alternative investments such as hedge funds and ICIS are subject to less regulation than other types of pooled investment vehicles, may be illiquid and can involve a significant use of leverage, making them substantially riskier than the other investments, including any products which may be shown as comparison herein. Prior to investing, investors are strongly urged to review carefully the Offering Memorandum (including the risk considerations described therein), and all related fund documents, to ask such additional questions of the Investment Manager as they deem appropriate, and to discuss any prospective investment in the Fund with their legal and tax advisers in order to make an independent determination of the suitability and consequences of an investment. • This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. It is the responsibility of any person or persons in possession of this material to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdiction. Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. • Investment in ICIS Funds are suitable only for sophisticated investors for whom an investment in such fund does not constitute a complete investment program and who fully understand, and are willing to assume and understand, the risks involved. While the given material is subject to change and, although based upon information which we consider reliable, it is not guaranteed as to accuracy or completeness. No person has been authorized to give any information or to make any representation, warranty, statement or assurance not contained in the Offering Memorandum and, if given or made, such other information or representation, warranty, statement or assurance may not be relied upon. • Past performance is not a guide to future performance and the value of investments and the income derived from those investments can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Harvest Financial Services Ltd makes no warranty or representation that the security and or recommendation/the fund made are appropriate for all recipients and investors. • Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may be i) copied, photocopied or duplicated in any form, by any means; or ii) redistributed without Harvest Financial Services Ltd prior written consent. 19
  20. 20. Important Information “The Central Bank of Cyprus shall not be liable by virtue of its recognition of the ICIS or by reason of its exercise of the functions conferred on it by the International Collective Investment Schemes Law. Recognition of the ICIS does not constitute a warranty by the Bank as to the creditworthiness or financial standing of the various parties to the ICIS”. Supervision of ICIS In accordance with section 3 of the Law, the Central Bank of Cyprus is the regulatory and supervisory authority in the Republic of Cyprus for ICIS, their managers and trustees. An ICIS must sell, redeem or repurchase its units at the request of unit holders, in accordance with its constitutional documentation. Units may not be issued as partly paid and may not be sold unless the equivalent of the net issue price is paid. Basic Rules for the calculation of sale, redemption or repurchase price can be found in “Regulations on the valuation of the property of an ICIS”. Taxation Any gains or profits generated by an ICIS of any type, including a unit trust or an investment limited partnership, are subject to an effective tax rate of 0,425%, while no further tax is imposed on any dividends or other distributions made by an ICIS to its unit holders. The income of managers and trustees, if not permanent residents of the Republic, which is generated from services they offer to ICIS is exempt from income tax. 20
  21. 21. Service Providers professionals Board of Directors Advisory Board Investment Manager: Harvest Financial Services Administrator: Hellenic Bank Public Ltd Custodian: Hellenic Bank Public Ltd Auditors: PKP Professional Services Ltd -KPMG Legal Advisor: Drakos & Efthymiou Bankers: Hellenic Bank Public Ltd BNP Paribas Cyprus Ltd National Bank of Greece Cyprus Ltd KPMG 21