The Global High Income Fund

Managed by

June 2015

A Diversified Portfolio of Asset Backed Bonds in an Expertly Managed Regulated Fund

Private debt

After the market crash of 2008, many countries tightened lending regulations onbanks and other traditional lenders. This placed financing out of reach for many small tomedium sized enterprises (SME). The disparity between the need of SME for growthcapital and the lack of available financing options has given rise to the private debtmarket.

Since 2009, the first year SME felt the burden of new lending restrictions, theprivate debt market has witnessed impressive growth. There were USD $23 billion raisedin private debt in 2009. By 2013 that figure had grown to USD $77 billion.in private debt in 2009. By 2013 that figure had grown to USD $77 billion.

As the private debt industry matures, certain investor preferences have begun to emerge. For instance, there is a preference for direct lending of secured, senior debt. With these preferences as a guide, the Global High Income Fund has been designed to address the needs of the modern institutional investor seeking reliable returns in the private debt market.

Advantages of private debt investment

Institutional investors can profit from the disparity between the need of SME forgrowth capital and the lack of available financing options. Advantages to the investor caninclude:

• Private debt offers attractive spreads - higher yields - over sovereign debt, listed corporate bonds and other high yield securities.

• Low correlation with traditional asset classes provides positive diversification and improved risk adjusted returns.

• Stable performance across all market cycles due to asset backed security of bonds.

• Private debt is now a well established asset class, gaining substantial momentum from 2009 to present.

Private debt balances the institutional investor’s need for a reliable source of relatively safe income with the desire to achieve the highest risk adjusted return possible.

What is the Global High Income Fund?

The Global High Income Fund is a private debt fund that lends capital to carefullyselected, solvent small to medium size companies across diverse sectors and geographies.The Fund is a direct lender that originates simple loans without complex clauses, optionsor features that burden negotiations and heighten transaction costs. The debt originatedis held by the Fund from issuance to redemption, eliminating much of the risk associatedwith active debt trading.

The Global High Income Fund was designed from the ground up to answer theneeds most commonly expressed by knowledgeable private debt investors. Advantagesneeds most commonly expressed by knowledgeable private debt investors. Advantagesoffered by the Fund include:

• Attractive risk adjusted returns • Strong diversification

• Low fees • Solvent borrowing companies

• Direct lending • Asset backed security

• Buy and hold strategy • Active investment pipeline

• Investor liquidity • Regulated by CIMA

Attractive risk adjusted returns

Investors seeking relatively safe investments always face the dilemma of attaining acceptable returns. This dilemma is particularly difficult for the income investor. Yields on government and rated corporate bonds are weak. The income investor is faced with a lack of quality choices within their risk tolerance.

The Global High Income Fund provides the income investor with an excellent option. The Fund originates debt to healthy, solvent companies with good credit history situated in appropriate countries and sectors. The debt is secured by specified assets of suitable character and value. The Fund holds the debt from issuance to redemption. The suitable character and value. The Fund holds the debt from issuance to redemption. The Fund subjects all prospects to rigorous due diligence and takes every other action feasible to protect investor capital. The Fund also enjoys the pricing power that comes from the lack of financing options available to the borrowing companies. Therefore, within this relatively safe investment, the Fund offers investors a return of 10% per annum, net of fund fees.

The Fund offers institutional investors a relatively safe and reliable vehicle, while paying an attractive risk adjusted return of 10%.

Low fees

Investors are justifiably wary of funds with high fees that might erode theirreturns. One of the ways the Global High Income Fund achieves desirable bottom-linereturns for the investor is by keeping fees as low as possible.

Entry fees None

Exit fees None

Subscription fees None

Placement fees None

Investors in the Fund can know that their fees are amongst the lowest possible in private debt investment vehicles available today.

Placement fees None

Management fees 1% per annum

Performance fees Above 10% threshold, 20%

Direct lending

According to a recent survey by Preqin Investor Interviews, over 60% of globalinstitutional investors in private debt view direct lending as a preferred method ofinvesting in the private debt market.

The Fund enters into financing agreements with small to medium sizecompanies for direct lending. The duration is fixed. The interest is also fixed. Thefinancing agreements are free of complex clauses, options and features that can heightentransaction costs and introduce uncertainty. The agreements are simple and clear.

Because the financing agreements are so simple, investors experience lessuncertainty and risk associated with their investment in the Fund.

Buy and hold - Issuance to redemption strategy

Funds that actively seek to buy and sell debt after origination introduce new riskand uncertainty, including the risk of price erosion on mid-term trades as demanddecreases for overpriced liquid bonds.

The Global High Income Fund seeks to eliminate these unnecessary sources ofrisk and uncertainty by holding the debt from issuance to redemption. The Fundoriginates the financing agreement. The Fund then holds all the rights under thatagreement, including the right to interest payments, from the beginning until the end.

The benefit to the investor is assurance. It is an assurance that the Fund willalways be entitled to the benefits of interest payments, and eventually to full repaymentof principal. The investor will never experience uncertainty in this regard.

Investor liquidity

Investors place a value on liquidity. Circumstances change. And when they do,investors need access to their money.

The Global High Income Fund answers this need by offering quarterlyredemptions with 90 days notice. This is possible because the Fund is carefully diversifiedacross debt of differing duration, maturity and income payment schedules. Also, aminimum of 10% of Fund assets are allocated to cash and liquid instruments. Although 5years is considered an appropriate investment horizon for participation in the Fund, thereis no minimum subscription period. If necessary, the investor may withdraw their moneyis no minimum subscription period. If necessary, the investor may withdraw their moneythe same year it is placed.

Combined with the Fund’s strategy of holding the debt from issuance toredemption, this allows the investor to participate in the benefits of illiquid financingagreements while enjoying the peace of mind that comes from knowing they have theaccess to their money offered by quarterly redemptions.

Strong diversification

Diversification is the best shield against uncertainty. Prudent investors do notwant their invested money in any one single country, currency, sector or asset class.

The Global High Income Fund provides direct lending to small to medium sizecompanies across differing countries, currencies and sectors. In doing so, the Funddiversifies its holdings and thereby the capital of its investors.

The Fund has taken all due precautions to eliminate unnecessary risks and tominimize all others. However, risk is an inherent part of investing. The investor can takeminimize all others. However, risk is an inherent part of investing. The investor can takecomfort that the extensive diversification of the Fund provides as much protection aspossible against the unforeseen.

Solvent borrowing companies

Investors in any financing agreement want to know that the borrowing companycan and will fulfill its obligations.

The Global High Income Fund subjects all prospective borrowing companies torigorous due diligence. As part of this due diligence, the Fund pays particular attention tofour key areas:

1. Short term liquidity analysis (cash ratio)2. Long term solvency testing (interest coverage and debt to equity ratio)2. Long term solvency testing (interest coverage and debt to equity ratio)3. Clean history of borrowing and repayment4. Cash flow positive companies

As questions answered at the very threshold of due diligence, investors can becertain that any company has satisfied these four criteria before the Fund consideredfurther negotiation for financing.

Asset backed security

Investors in a financing agreement want assurance that there is some source ofcapital from which they can be repaid in the event of default.

The Global High Income Fund requires any loan be secured by assets of asuitable character. The amount of security pledged must be of value equal to or greaterthan the principal of the loan. Secured assets are often 2x greater than the borrowingprincipal. To ensure fair and realistic valuation, the value of the secured assets isdetermined by an independent valuation agent.

The Fund has taken every precaution to ensure that the assets pledged assecurity are never required. In the rare event of a default, investors can know that there isa pledged asset pool available sufficient to repay the principal of the loan, and that theFund has the necessary ability to recover and mitigate loss.

Active investment pipeline

The Global High Income Fund has several prospective investments available thathave already passed due diligence. A few examples are:

Company Duration API Interest TermsBiomass Investments PLCRenewable energy producer

3 years 12.5% Paid after 6 months,then quarterly

Lakeview UK Investments PLCVacation and leisure resort

5 years 11.0% Paid after 12 months,then quarterlyVacation and leisure resort then quarterly

Strategic Residential Development PLCUK residential RE developer

5 years 11.0% Paid annually

UK Renewable Investments (AD) PLCAnaerobic digestion plants in N. Ireland

5 years 11.0% Paid after 12 months,then half yearly

TTC Green Energy PLCSmall scale anaerobic digesters in N. Ireland

5 years 11.0% Paid after 12 months,then half yearly

Regulated by CIMA

The Global High Income Fund is registered in the Cayman Islands and isregulated by the Cayman Island Monetary Authority (CIMA). A British Overseas Territorywith a legal system based on English common law, the Cayman Islands is one of the mosttrusted domiciles for investment vehicles, with over 10,000 registered funds and USD $2trillion under management.

The Fund offers the investor the full protections that come with regulation,including regulatory and fiduciary protection of investor rights.

Supporting entities

Investment Manager Hypa Asset Management LimitedProven track record in corporate bonds

Fund Lawyer Appleby (Cayman) LtdHighly experienced in fund legalities

Fund Administrator Harmonic Fund ServicesRegulated independent administrator

Auditor KPMG (Cayman)Local branch of global reach companyLocal branch of global reach company

Custodian Global Custodial Services LimitedUK FCA regulated custody expert

Company Analyst Project Kudos LtdIndependent due diligence on borrowers

Independent Director Genesis TrustIndependent oversight of the Fund board

Team

Simon James Welsh, Fund DirectorSimon Welsh’s role includes due diligence, product structuring with a focus on tax efficiency and regulatory compliance, raising funds and ongoing monitoring of the firm’s investments. To date Mr. Welsh has currently structured and administered more than 10 investment funds investing in a range of asset classes primarily fixed interest, property and renewable energy.

Roger Priaulx, Independent Fund DirectorRoger Priaulx qualified as a solicitor in 1998 whilst working at Linklaters in London. Mr. Priaulx is responsible for the management and administration of the director and trustee services provided by Genesis Trust. Mr. Priaulx was elected to the Cayman Islands STEP Council in June 2010. Council in June 2010.

Lee Grant Smith, Investment ManagerWith more than a decade of accumulated expertise working on a wide variety of international asset backed investment projects, Mr. Smith now specialises in creating innovative alternative investment products for the finance, commodities, renewable energy and real estate sectors.

Michael Young, CFA, Fund AdvisorMr. Young has significant experience coordinating the design, preparation and launch of regulated investment funds. Previously Mr. Young worked with Prudential, Standard Life, Baring Asset Management and SHUAA Capital focusing on business development, capital raising and the provision of investment advice to HNWI’s and institutions.

Key facts

Fund Name Global High Income Fund

Fund Sector Corporate bonds, small to medium companies

Fund Structure Regulated mutual fund, Cayman Islands

Investment Horizon Open ended term, 5 year plus recommended

Target Return 10% annualised, net of fund fees

Minimum Investment USD $100,000 or currency equivalentMinimum Investment USD $100,000 or currency equivalent

Currencies USD, GBP, EUR, HKD, SGD

Fund Valuation Annual audited, bi-annual unaudited

Liquidity Monthly subscriptions, quarterly redemptions

Project Case Study 1 – UK Renewable Investments (AD) PLC

Bio Green Energy Limited controls 15 Special Purpose Vehicles (‘SPVs’) that eachown the rights to one ‘shovel ready’ Anaerobic Digestion (‘AD’) plant in Northern Ireland.

These AD plants breakdown organic matter to produce a biogas that can becombusted in a combined heat and power engine to generate electricity and heat. Thisheat and electricity is then sold with the price being guaranteed for 20 years by the UKgovernment. The loan will serve to build the AD plants and provide the feedstock neededto run the plants.

The electricity and heat and eventually the plant will be sold to service theinterest on the loan and repay the loan and subsequently the bondholders.

Project Case Study 2 – Lakeview UK Investments PLC

Tourism has been one of the UK’s great success stories over the last five years.While the UK economy as a whole has languished since the start of the global financialcrisis in 2008, the UK tourism industry has continued to grow strongly. Revenue frominbound tourism has increased by almost 30% since 2008 – meaning that the tourismindustry is now the UK’s fifth largest export earner, generating £24bn per annum for theUK economy. Domestic tourism has also grown significantly, with revenue increasing by11% to £78bn over the last three years alone.

Lakeview Country Club services the UK domestic ‘staycation’ market in Cornwall,Lakeview Country Club services the UK domestic ‘staycation’ market in Cornwall,UK. This short break market in the UK, is a growing trend and predicted to enjoy furtherstrength. Investors are funding significant Capex which is already being rewarded withhigh occupancy rates (80% since February 2015) and growing revenue across a number ofbusiness divisions.

The extra cash generated is more than adequately meeting bond interestpayments and will provide a cash surplus to repay the original debt capital.

Project Case Study 3 – Strategic Residential Development PLC

After several years of stagnation the UK property market is now considered inthe opinion of the Advisor and Manager an attractive investment. In addition to pricegrowth within the housing market, the English Planning system has also undergone majorchanges over recent years in the form of the introduction of the National Planning PolicyFramework (NPPF). The key policy strands of the NPPF that stand out are an emphasis onspeeding up decision making and achieving a significant boost in the delivery of housing.

The borrower is a property company that specialises in securing planningpermission for properties with short term price appreciation potential. The strategy aimspermission for properties with short term price appreciation potential. The strategy aimsto average 9 months between purchase of a property and sale of the property andobtaining planning permission on the plot. This is being achieved, and in many cases theprocess is shorter.

The equity returns are considerable for the borrower, both enabling timelyinterest payments and providing for capital repayment at the end of the bond’s term.

Contact

Important Information

THE GLOBAL HIGH INCOME FUND LTD IS SUITABLE FOR SOPHISTICATED INVESTORS, WHODO NOT REQUIRE IMMEDIATE LIQUIDITY FOR THEIR INVESTMENTS, FOR WHOM ANINVESTMENT IN THE FUND DOES NOT CONSTITUTE A COMPLETE INVESTMENTPROGRAMME, AND WHO FULLY UNDERSTAND AND ARE WILLING TO ASSUME THE RISKSINVOLVED IN THE FUND’S INVESTMENT PROGRAMME. SUBSCRIBERS FOR SHARES MUSTREPRESENT THAT THEY ARE ACQUIRING THE SHARES FOR INVESTMENT. NO OFFER TO SELLOR SOLICITATION OF AN OFFER TO BUY IS BEING MADE IN ANY JURISDICTION IN WHICHSUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. OTHER THAN REGISTRATION WITHTHE CAYMAN ISLANDS MONETARY AUTHORITY, THE OFFERING OF SECURITIES HEREBY HASNOT BEEN FILED WITH OR APPROVED OR DISAPPROVED BY ANY REGULATORY AUTHORITYNOT BEEN FILED WITH OR APPROVED OR DISAPPROVED BY ANY REGULATORY AUTHORITYOF ANY COUNTRY OR JURISDICTION, NOR HAS ANY SUCH REGULATORY AUTHORITYPASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY ORADEQUACY OF THIS DOCUMENT OR THE CONFIDENTIAL MEMORANDUM TO THE FUND.ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. SHARES ARE NOT REGISTEREDFOR SALE, AND THERE WILL BE NO PUBLIC OFFERING OF THE SHARES.