1. Harvest Stargate Fund Ltd 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 Stargate Fund Ltd: Registered and Regulated by the Central Bank of Cyprus As an international Collective Investment Scheme Law No 47 (1) of 1999 (ICIS). SEPTEMBER 2008- OCTOBER 2011 “ Serving the International Investor” CONTACT: Telephone + 357 22 552800 [email_address] 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. Table of Contents I. Description of the Fund, II. Attractive Features of the Fund, III. Performance of the Harvest Stargate Fund Ltd, IV. What are the Advantages of Harvest Financial Services Ltd, V. Summary / Timing,
3.
4.
5. Innovation Flexibility Integration Reactivity Competitively Competitive Fund Management Integrated Fund Management Harvest Financial Services Ltd Manager’s Style
6. THE IMPORTANCE OF ASSET CLASSES LOWER RISK – CONSISTENT RETURNS The Fund The most popular traditional asset classes are cash, bonds, equities, real estate and now hedge funds. Harvest Stargate Fund Ltd combines these asset classes, with the exception of cash, in order to create the next generation of multi asset Global Macro investments. The different asset classes will perform their best at different stages of a normal investment cycle. When building a portfolio, it is therefore essential that it should not only be spread between different asset classes, but should also make an allocation to the asset class that is likely to provide the best return in the following year. Whilst equities may be rising, bonds or property could be falling, and when equities fall, hedge funds could perform well. The Stargate Fund is an aggressive market neutral fund with a return objective of 8-12% annually with a standard deviation of approximately 4%-6%. It allocates capital among managers who have stated investment objective of returns in excess of 15% per annum. It is expected that the fund will have higher than average volatility but through diversification of strategies can mitigate drawdown's during bear market environments. In positive market periods, the fund should produce returns above market benchmarks.
7. HARVEST STARGATE FUND LTD INVESTMENT OBJECTIVES Capital Protection Techniques Risk Adjusted Correlation Capital Appreciation Low Correlation Capital Preservation Equities/Futures
8.
9.
10.
11.
12.
13.
14.
15. The Fund’s Asset Allocation Process Financial Instrument’s Futures/Options Equities ENERGY Real Estate Structured Products Hedge Funds GLOBAL DIVERSIFICATION Fund’s Underline Strategies
16. HARVEST STARGATE FUND LTD- BENEFITS RISK MANAGEMENT PERFORMANCE - RETURN RISK MANAGEMENT FUND SELECTION COMPLIANCE Reporting RESEARCH
17.
18.
19.
20.
21. Successful Investment Strategy Real Estate Focus Countries (Portfolio Focus Strategy) Focus Countries Bulgaria Check Republic Romania Serbia &Montenegro Croatia Ukraine Greece Cyprus THE UNDERLYING PORTFOLIO COMPRISES A RANGE OF INVESTMENTS USING DIFFERENT STRATEGIES AND INVESTING IN DIFFERENT ASSET CLASSES
22. Country Data- Real Estate Focus Countries 1/3 Strategy Source: CIA Fact book
23. Comparative Figures-Investment opportunity? KEY FACTS Market Average Prime Rent (EUR/sqm/month) Sales Price (EUR/sqm) Sofia 12.0 1,100 Bucharest 19.0 2,000 Belgrade 19.0 N/A Budapest 16.0 2,500 Istanbul 12.0 1,400 Prague 17.5 3,500 Warsaw 18.0 3,000 Source: Market Research
26. Risk Statements LIMITED OFFER 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 Returns: Past performance does not guarantee future performance; investment in the fund should be based upon a complete assessment of their terms. Limitations of Simulated Returns: Certain presentations and back-testing or other statistical analysis materials that may have been 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 Identity: It may be required for purposes of the Investment Manager’s compliance procedures to disclose to the name of the initial investor in the fund.
27.
28.
29. 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.