1
Class B SharesFor
Forfaiting & Trade Finance
Tricon Trade Management Tricon Trade Management LimitedLimitedNov/09Nov/09
Enhancing Global Investment ReturnsEnhancing Global Investment ReturnswithwithTrade Finance AssetsTrade Finance AssetsHigher Comparable Returns with Less RiskHigher Comparable Returns with Less Risk
Global income fund units
2Increasing Risk
Incre
asin
g
Rew
ard
Universal investment challenge:
Enhance yield Manage Risk
The Trade Finance Asset Class
3Increasing Risk
Incre
asin
g
Rew
ard
Excess risk adjusted return+
Preferred payment+
Global markets diversification+
Reduced volatility & correlation
Trade Finance =
Solution:
The Trade Finance Asset Class
4
ImporterExporter
Importer
Bank
Exporter
Bank
Issues L/C
How does trade finance work …
5
ImporterExporter
Importer
Bank
Exporter
Bank
Issues L/C
Tricon
Funds
Invests in acceptance payment obligation for shipped goods$
How does trade finance work …
6
ImporterExporter
Importer
Bank
Exporter
Bank
Tricon
Funds
Receives guaranteed payment at maturity $
How does trade finance work …
7
Banks
Sovereigns
State owned entities
Preeminent multi-national corporations
Trade finance assets… standard banking documentation
… issued / guaranteed / accepted by
What is the quality of trade finance …
8
Secondary MarketMature
Inter-bank Market(Since 1950’s)100 Billion+
GlobalFinancial Activity
(All Major Markets)
How large is the market …
Primary Market2-3 Trillion+ Trade Finance
Instruments are recognized by
Standard & Poor’s as a distinct Asset
Class
9
Trade Goods are a currencyGovernments and Banks have a strong incentive not to reschedule or default on trade finance obligationsIf trade payments are interrupted
… trade is interrupted
… imports cease
Trade finance obligations can be
from most regional market “meltdowns”
largely insulated
final
Analysis & Benefits of Trade Finance
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Fund Type: Open ended mutual fund
Fund Domicile: Bermuda
Registration: Bermuda Monetary Authority
Currency: US Dollar
Rating: Unrated
Offering: 3,000,000 Redeemable non-voting Class B Shares
Minimum Investment: $100,000
Net Asset Value: Monthly
Subscriptions / Redemptions: Monthly
Distributions: Quarterly distribution of profits (with option to reinvest without fee)
Management Expense Ratio : 1.25% p/a
Tricon Class B Shares for Forfaiting & Trade Finance …
The CLASS B SHARES – Structure / Support / Diligence
Investment Manager: Tricon Trade Management Limited
Investment Advisor: Standard Bank Plc
Administrator: JPMorgan Hedge Fund Services (Ireland) Limited
Custodian: JPMorgan Trust Company (Cayman) Limited
Sub-Custodian Standard Bank Plc
Auditors: PricewaterhouseCoopers
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Yield:Yield targeted to exceed: •3-month US$ LIBOR + 100bp to 200bp
Stability: Sharpe Ratio targeted to exceed:•risk-free rates of return (e.g. LIBOR and Treasuries)•trade finance market returns (e.g. LTP Index)•emerging markets returns (e.g. (EMBI+)
Non-Correlation:Beta targeted to exceed:
•less than 0.75 of risk-free interest rate movement (e.g. LIBOR and Treasuries)•
•less than 0.50 of trade finance market movement (e.g. LTP Index)•
•less than 0.25 of emerging markets movement (e.g. (EMBI+)
Class B Shares
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EquitiesIncome
Long Term
Short Term
6 Month Treasuries
Long
Mat
urity
Bon
ds
1 Month Commercial Paper
Overnight Deposits
Medium Maturity
Bonds
Class B Shares
Investment positioning … … medium term TREASURY MANAGEMENT-or-
CASH MANGEMENT
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About the Manager …About the Manager …
Bermuda corporation; approved Bermuda Monetary Authority
Wholly owned subsidiary of Tricon Trade Acceptance Limited; privately held company; principal offices - St. Helier, Jersey, Channel Islands
Active in global trade finance markets since 1991 as principals and brokers
Arranged more than USD 100 million in short and medium term trade credits
Successfully managed continuous balance of USD 100 million+ funds since launch in October 2000
Tricon Trade Management Limited
The Investment Manager - TRICON
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Provides full documentation agency services to Fund
Reviews all relevant documentation for each transaction prior to Fund’s investment
Co-advises Fund investment decisions
Supplies investment research and due diligence to Fund
Maintains Fund sub-custody account
Performs Fund back office administration for all trade finance assets
Standard Bank Plc
About the Investment Advisor …About the Investment Advisor …
The Investment Advisor – Standard Bank Plc
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About the Administrator …About the Administrator …
Mutual fund administration services worldwide
International banking and trust services worldwide
Administers fund assets in excess US$ 15 billion
JPMorgan Chase & Co. - leading global financial services firm with assets of US$ 1.1 trillion & operations in more than 50 countries.
JPMorgan Hedge Fund Services (Ireland) Limited
The Administrator – JPMorgan
How well has it been performing …
17
Our volatility is below market volatility = excess risk adjusted return
Existing Funds’ Performance
18
Monthly Sharpe Ratios – Prior Funds / EMBI+ / MARKIT Trade Finance Index
Existing Funds’ Performance
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Diversification through a unique & differentiated asset class
A Management Team with proven expertise in asset class
The experience, expertise and services of “Best Trade Finance Bank”
Proprietary & tested investment platforms for … … asset trading / clearing /
custody / administration
Proven track record … risk-adjusted returns consistently exceed benchmarks Global asset diversification with effective risk management
Low volatility and low correlation with interest rate movements
Recognized auditor, administrator, legal counsel and bankers
Benefits of incorporating CLASS B SHARESinto an investment portfolio …Benefits of incorporating CLASS B SHARESinto an investment portfolio …
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Conservative investing …… for global marketsConservative investing …… for global markets
Tricon Forfaiting Fund Limited
Class B SharesforForfaiting & Trade Finance
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Subscription for the Fund’s Class B Shares may only be made by Offering Memorandum.This material is not intended as an offer or solicitation for the purchase or sale of any security
or any other action.
This information has been prepared by Tricon Forfaiting Fund Limited (the “Fund”). The information, including any opinions herein based upon the information, has been obtained from sources believed to be reliable, but which may not have been independently verified, and no guarantees, representations or warranties are made as to its accuracy, completeness or suitability for any purpose. Any opinion or estimate expressed herein is the current opinion of the Fund and is subject to change without notice. Past performance is not an indication of future return. The Fund, Standard Bank Plc, Tricon Trade Acceptance Limited, and/or their principals, employees or affiliates, may own Fund Shares, and may have a long or short position or may transact in the securities referred to herein or hold or transact derivative instruments, including options, warrants or rights with securities, or may act as a market maker in the securities or companies discussed herein and may sell such securities to or buy from customers on a principal basis and may also perform or seek to perform investment banking services for those companies. Transactions involving the purchase or sale of assets between the Fund and Standard Bank Plc are conducted on an arms-length basis in according with the Fund’s legal structure and operating policies.These details are intended for information purposes only and are not for publication in the press or elsewhere. No part of this information may be copied or redistributed to other persons or firms without the prior written consent of the Fund. Our reference to the J.P. Morgan Emerging Markets Bond Index Plus ™ is intended solely for informational purposes and carries no express or implied warranties from J.P. Morgan relating to the data presented in this report. The LTP Trade Finance Index ™ appears with the permission of LTPtrade.net Limited and may not be reproduced without their prior written consent.Copyright: 2005 Tricon Forfaiting Fund Limited. All rights reserved.
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Investment in unregulated funds carries the risk of total loss of capital.
Cesium is remunerated for its services by the funds it introduces to investors or the managers of the investments described herein, whether directly or through MLP. Cesium may be compensated by MLP for its research and due diligence on these investments presented to MLP. Certain of Cesium’s principals, registered through MLP, may receive placement fees as further described in the Private Placement Memoranda, and mentioned above. Cesium does not make these investments available to general public customers. The securities referenced herein are restricted securities. There is no public market for such funds, and none is expected to develop, and investments described herein are illiquid. For residents of countries other than the United States of America: Prospective investors should inform themselves as to the legal requirements within their own countries for the purchase of any security and to the applicable tax, exchange control, or other law or regulation applicable to them. It is the responsibility of any prospective investor to satisfy applicable laws and regulations of relevant jurisdiction, including obtaining any requisite governmental or other consent and observing any other formality prescribed in that jurisdiction. Any person requesting a Private Placement Memorandum regarding these securities will be deemed to be fully informed, and compliant with applicable regulation, and warrants that any subsequent subscription does not violate the laws or regulations of any relevant jurisdiction, nor that such a request places Cesium or MLP in the position of violating any formality of such jurisdiction.