Professional Documents
Culture Documents
1.0 Investment Objective ...................................................................................................................... 3 2.0 Fees and Expenses .......................................................................................................................... 3 3.0 Principal Investment Strategy ......................................................................................................... 3 4.0 Principal Investment risks ............................................................................................................... 4 4.1 Liquidity Risk ......................................................................................................................... 4 4.2 Management Risk................................................................................................................. 4 4.3 Market Risk Risk .................................................................................................................. 4 4.4 Regulatory Risk ................................................................................................................. 4 5.0 Performance ................................................................................................................................... 5 6.0 Calendar year total returns ............................................................................................................ 6 7.0 Fund management .......................................................................................................................... 6 8.0 Transaction policies ........................................................................................................................ 6 9.0 Terms and Conditions ................................................................................................................ 7-12
Thank you for taking time to pick up this fund profile. Now with the niceties over lets get to the point on how YOU the Investor is hoping to make a return on your money. These days many Investors are more cautious than ever to invest. Ponzi schemes are being caught left, right and centre. The economies of countries seem to be hanging by a thread and the biggest investment banks are being caught at finding cleverer ways of ripping everyone off. The cautious investors then decide to invest in the most conservative financial instruments like Government Bonds; which is better than putting it in a shoe box, but with inflation at 5%, their money is still deteriorating. Information overload is also playing a part to many bad investment decisions these days. I truly believe that the main reason why many modern Investors are not as successful as their predecessors is because of the Internet. Now on the internet youre marketed with very specific adverts about where, how and when you should invest your money. Reuters, Wall Street Journal and Investors Chronicle right at your fingertips with analysts, PhDs and economic doctors sharing their investment strategies and their predictions on the future of Capitalism. The internet is a wonderful invention; but it has confused many Investors on which strategy to choose, where they should invest their money, whether or not they should diversify etc. Apart from becoming rich, the other reason why I formed this Fund is to show the world that trading and investing isnt as difficult as most people think. All that a person has to do is to pick a strategy that suits their personality, have strict money management rules and stick to the strategy thick or thin. That is it! But most people these days lack the patience and discipline to do that, hence why only few investors are successful in the long-term. You have to deal with a little pain to reach the summit and most people dont have the discipline to deal with the pain. The philosophy (if you could call it that) of sticking with a trading strategy through thick and thin has rewarded me financially as well as my investors. That is the reason why our Fund is managed with that exact same strategy and that strategy alone. In this booklet you will find information on our fund and to see if it is right for you. If you would like more information then please contact us (contact details are on the back cover). Whether or not you wish to invest with us, we wish you long term financial success. Faithfully, Paul Gedrimas
Fund Summary
1.0 Investment objective The fund seeks total return on capital, high level of capital appreciation. EIC uses historically backed trading strategies as well as conservative money management strategies during very profitable streaks as well as drawdown periods. 2.0 Fees and Expenses The tables below show the expenses paid when you invest with Exponential Investment Club. Management fee Performance fee Other Expenses 0.00% 20%* 0.5%
* The total expenses from the fund come only from the performance fee; therefore expenses will only be withdrawn if the fund has had a positive return in the fiscal year.
3.0 Principal Investment Strategy Exponential Investment Club (acronym EIC) is a trading firm which solely trades in the currency market. The sole strategy is a trend trading strategy, which means that the traders of the fund catch big long-term price trends, either to upside or downside. An example of a large longterm trend that was bought before it started trending.
The currency market is by far the biggest market in the world and the most liquid. Spread prices and transaction fees paid to the brokerages are (on average) lower than stocks, bonds and commodities. Because markets move sideways for variable durations throughout the year, the investor has to understand that his initial investment may enter temporary drawdowns. Even though our fund does use fundamental analysis for very big events in the financial calendar (Interest Rates, Payroll Rates, Unemployment rates etc.), our traders are professional technical analysts and therefore their trading strategies are more focused on the current price data, past market data and volume to determine when to enter and exit trades.
4.0 Principal Investment risks 4.1 Liquidity Risk if the investor decides to withdraw his capital from the fund, the current trades which the investors capital may be in may not be sold at the desired time due to adverse effects on price 4.2 Management Risk There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment may decline and you may suer investment loss. 4.3 Market Risk The market price of securities owned by the Fund may rapidly or unpredictably decline due to factors aecting securities markets generally or particular industries. 4.4 Regulatory Risk Changes in government regulations may adversely aect the value of a security. An insuciently regulated industry or market might also permit inappropriate practices that adversely aect an investment.
5.0 Performance The following information provides an indication of the risks involved with Investing with Exponential Investment Club by showing how the rate of return changes from year to year. The returns of EIC are compared to various indices. Past performance is no guarantee of future results. The chart shows the performance of an initial deposit of 1,200,000 made by a private investor.
5,000,000.00 4,500,000.00 4,000,000.00 3,500,000.00
4,357,392
3,000,000.00
2,500,000.00 2,000,000.00 1,500,000.00
1,108,648
1,000,000.00 500,000.00 0.00
993,480
Sep-09
Sep-07
Sep-08
Sep-10
Sep-11
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
May-12
May-07
May-08
May-09
May-10
May-11
Chart Title
150.00%
101.61%
100.00%
138.28%
37.64%
9.64% 11.04%
50.00%
22.87%
53.48%
EIC
0.49%
FTSE NYSE
-2.25%
-3.25%
-0.47%
-34.21%
-50.00%
-33.99%
-100.00%
7.0 Fund management Portfolio Manager Matt Cinaitis Title Chief Financial Manager Managed since 2007 (When Exponential Investment Club was an Investment Club (not a fund)) 2007 (When Exponential Investment Club was an Investment Club (not a fund))
Paul Gedrimas
8.0 Transaction policies To invest or withdraw capital Telephone: +44 (0)207 470 9241 Email: invest@exponentialclub.com Website: exponentialclub.com Contact your investment representative
Minimum capital investment: 500,000 (600,000 $750,000) Minimum additional investment: 100,000 (100,000 $100,000)
-49.32%
-8.00%
1. Fund Name
Exponential Investment Club
3. Commencement
The Fund has already commenced accepting subscriptions (when it was an investment club) on January 2007.
5. Minimum Investment
The minimum initial subscription is 500,000 (600,000 $750,000). Subsequent subscriptions must be in an amount of at least 100,000 (100,000 $100,000) but dont need to be in exact multiples of 100,000(100,000 $100,000).
6. Fund Currency
The Fund is denominated in Pounds Sterling, Euro and American Dollar
7. Fund Objectives
To provide income and competitive returns, capital preservation and liquidity through investing in the currency market.
An Investor must be aware that he or she may lose money if at the time of selling the units, the value of the units is less than what was originally invested. There can be no assurance that any appreciation in the value of the Funds underlying investments will occur. The value of the Funds underlying investments and the income derived from them may fall as well as rise and Investors may not recoup the original amount invested in the Fund. There is no assurance that the investment objectives of the Fund will actually be achieved. Past performance is not a guide to future growth or rates of return. Potential Investors should consider the following risk factors before investing in any Fund. An investment in the Fund is subject to normal market fluctuations as well as other economic, political or financial developments.
A. Liquidity Risk
Liquidity of investments may be low in some periods and as a result this may increase the difficulty of valuing such investments. Reduced market liquidity may adversely affect the market price of the Funds investments and the Funds ability to dispose of particular investments to meet its liquidity requirements. This risk may be mitigated through utilizing the available cash portion of the Fund. However if total redemptions exceeds 10% of the Funds Value, the Manager has the right to postpone such redemptions to the next Valuation Day. Such redemptions will be accounted for on a prorate basis. An investment in an investment fund is not a deposit with any local bank sponsoring, selling, or otherwise affiliated with the investment fund. Unit holders bear a risk of loss of money in the investment fund, since the investment value may increase or decrease. Investors in the Fund are not certain to make a profit and may suffer a loss, and therefore may not recover their fully-invested capital. Subscribers should only invest in this Fund if they are able to sustain a loss. Investors in the Fund should be aware of the risks in investing in the Fund and, if they are in any doubt as to the suitability of the Fund, should consult an independent financial advisor.
B. Other Expenses
The Fund Manager reserves the right to recover from the Fund any other expenses incurred on behalf of the Fund such as custody, data processing, accounting audit and other similar charges acceptable by the authorities. However, other expenses are not expected to exceed 0.50% from the Funds NAV
13. Confidentiality
Strictest confidentiality shall be observed at all times in the handling of the business of the Fund and the Funds Investors.
A. Subscriptions
All subscriptions paid in Pounds Sterling, Euros or US Dollars Payments must be made at or before 4:00 PM on the Subscription Day in order to commence participation in the Fund from the Subscription Day. Other forms of subscription payments such as cheques and transfers may require additional time for clearing and collection and participate in the Fund only from the Dealing Day following receipt by the Fund. Applications made after 4:00 PM for (telephone and internet) will participate in the Fund from the following Dealing Day. If the subscription payment falls at the beginning of an official UK Holiday, it will be invested in the Fund the following Dealing Day.
B. Redemptions
Redemption is allowed on every Dealing Day provided that a written notice is received at or before 4:00 PM on the Dealing Day. Redemption proceeds are made available on the third UK Business Day 9
after the Dealing Day. Redemption of units must be for minimum value of 2,000(2,000 $2,000). However, redemption transactions made through alternative distribution channels such as calling the funds office may allow the investor to withdraw smaller values. If the Dealing Day falls on a non UK business day, it will be redeemed on the following Dealing Day. Redemption amounts are made available to the investor in a period of not more than three days after the dealing in which redemption has been made.
C. Subscription Procedures
The Investor is required to sign a copy of these Terms & Conditions and complete an Investment Account Application Form. If the Investor already has an investment account with the Company, an Application Form is not required. These forms should be submitted to a designated staff member and a copy will be returned to the Investor as a receipt. The Investor is required to provide identification in the form of a valid ID (EU/EEA/Swiss Citizens), a valid EU driving licence, national ID or a valid passport. (non-EU/EEA/Swiss residents), a valid passport or a signed board resolution, stamped with the company seal and a copy of the companys commercial registration for Corporate Investors.
D. Rejection of Application
The Fund Manager reserves the right to reject any application /subscription if he believes that such subscription may result in a violation of Funds regulations and/or applicable regulations including the Terms and Conditions of the Fund.
E. Redemption Procedures
Application for redemption will be made by the Investor in whole or in part at any time by completing and submitting a Redemption Form. For identification purposes, an Investors valid Identification Card or passport must be made available and its number noted on the Redemption Form. The Investor must specify whether the redemption is complete or partial. In case of a partial redemption, it is important to note that should the Investors balance decline on Dealing Day (due to decline in unit price), the redemption process will not be executed. This is, without liability to the Fund Manager. In such case, the Investor must submit a new redemption request in the next dealing day.
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22. Appendices
The following appendices are an integral part of the Terms and Conditions: Investment Restrictions Summary of Financial Disclosure Funds Historical Performance
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23. Responsibilities
23.1 Fund Managers Responsibilities
The Fund Manager is responsible for the overall management of each Funds Investment and related activities. The Fund Manager may also enter into arrangements with other institutions for the provision of investment, custodian or other administrative services.
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