The Fund

FMG Global Hedge Fund

A Global Alternative Investment Fund

* Equities * Fixed Income * Commodities

* Cash * Alternative Investments/Hedge Funds * Real Estate

Disclaimer: This summary is for information purposes only and does not constitute an offer to sell or a solicitation to buy. Citizens or residents of
the United States may not invest in this Fund. Opinions and estimates constitute the manager’s judgment and are subject to change without notice.
Past performance is not indicative of future results. Investments in emerging markets should be considered high risk where a portion or total loss of
capital is conceivable. No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part
of his/her initial capital, and investment results can fluctuate substantially over any given time period. Please refer to the Fund’s prospectus which
contains brief descriptions of certain risks associated with investing in the fund. Questions should be directed to your local representative or financial
advisor. This document may not be reproduced, distributed, or published for any purpose without the prior written consent of the manager.

Ver 9-10 1
 Overview

 FMG’s oldest Fund (1991), the FMG Global Hedge Fund has historically been a Fund of Fund consisting of
primarily equity and macro long/short hedge fund managers. The focus now has shifted to become more
diversified and transparent by using a systematic discipline in more global asset classes.

 The crash of 2008, the worst since the great depression in the 1930s, have resulted in clients requiring better
transparency, liquidity and diversification. Hedge funds have in general underperformed on the way up and not
protected successfully on the way down.

 As of May 1 2010 FMG has replaced all hedge funds with a systematic approach that shifts assets between the
following various global asset classes:

 Equities  Cash
 Fixed Income  Alternative Investments/Hedge Funds
 Commodities  Real Estate

 Target return of the “new” Global Hedge Fund is 10%+ per annum, pro-forma returns from 2001 has been 15%
per annum.

2
 Simulated Return for the new Strategy

$4,000

FMG Global
$3,500
Growth of $1,000 invested

$3,000

$2,500

$2,000
MSCI Europe
$1,500

MSCI World
$1,000

$500

$0
06-01

01-02

08-02

03-03

10-03

05-04

12-04

07-05

02-06

09-06

04-07

11-07

06-08

01-09

08-09

03-10
Fund returns net of pro forma fees

From/Thru: 6/01 2002 2003 2004 2005 2006 2007 2008 2009 4/10
FMG Global (0.39)% (4.00)% 45.96% 14.59% 28.15% 22.25% 20.06% (15.10)% 35.87% 6.24%
MSCI World (10.49)% (21.06)% 30.81% 12.84% 7.56% 17.95% 7.09% (42.08)% 26.98% 2.58%
MSCI Europe (7.52)% (20.11)% 34.79% 17.85% 6.54% 30.22% 10.96% (48.20)% 31.24% (5.36)%

3
 Overview

 Several studies show that 70%-90% of the difference in returns between similar portfolios are derived from
asset allocation, not the selection of individual securities. It is therefore more important to decide whether to
own equities at all, than to choose between Microsoft and Apple.

 FMG Global Hedge Fund focuses exclusively on asset allocation and invests globally in equities, fixed income,
cash, commodities, real estate and alternative investments/hedge funds. The portfolio is highly diversified both
between and within the asset classes and regions. Asset weights are systematically shifted over time according
to strict rules in order to find the optimal portfolio for the current market climate.

Benefits of the systematic strategy:

 A good diversification to FMG’s Emerging Markets Funds.
 Focuses on asset allocation, the main return driver in a global portfolio.
 A systematic investment process free from subjective forecasts of the financial markets.
 A better risk adjusted return with lower risk for extreme outcomes (-15.1% in 2008).
 A dynamic portfolio which has historically adopted to the current market climate.

4
 Overview

 The asset classes: Example of asset allocation:

Equities – Max 60%
Fixed-Income – Max 20%
Commodities – Max 20%
Cash – No restriction
Alpha (Alternative Investments/Hedge
Funds)
– Max 30%
Real estate – Max 20%

 Leverage:

Max 50%

 Investments:

All underlying investments are publicly

listed and most offer daily liquidity

5
 Asset Class breakdown – an example

Equities Fixed-Income Commodities Cash Alpha- Real Estate

Alternatives
Developed regions Developed regions Types Regions Regions Regions

US US Agriculture US Global USA

EU EU Base metals Europe Global x USA

Japan Japan Precious Metals

Emerging markets Emerging markets Energy

Emerging Asia Asia Instruments Types Type: REITs

Emerging Europe Emerging Europe Treasury bills Diversified Exchange Office/industrial

Traded Hedge Funds

Latin America Latin America Money market funds Residential

BRIC Ultra-short bond funds

Other characteristics Other characteristics

Size (small, mid, large) Issuer (government,

agency, corporate)

Style (growth, value) Rating (investment grade,

high-yield)

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 The Systematic Process

Inputs Process Outputs

Objective
 Asset class return  Minimum return target equals  Portfolio weights; how much?
distributions long-term growth of global
equities  Expectation
 Correlation estimates Constraints
between all assets  Maximum allocations  Probability of outperformance

 Current relative market

 Maximum leverage
 Risk of loss
conditions,
‘performance zones’ Gain/Loss optimisation

 Minimum return target

Cash,
15%

and risk constraints

Mean = 10.5%

Equities,
Alpha, 40%
15%

Real
Estate,
5%
Fixed
-30% -10% 10% 30% 50%
Income, Commodi-
15% ties, 10%

 Technical analysis is used once a decision is made.

 Normally the portfolio is invested in 3-5 out of the 6 asset classes.
 Portfolio is typically rebalanced quarterly with minor adjustments on a daily basis.
 Turnover per annum is 2-3 times. 7
The Systematic Process – example of asset
allocation over time

8
Why Invest in FMG Global Hedge Fund?

Period: Jun-01 to Apr-10

FMG Global MSCI MSCI
Return Simulation Global Emg Mkts
Total period return (cumulative) 378.7% 15.6% 233.5%
Annual rate of return 19.2% 1.6% 14.3%
Largest monthly gain 13.6% 10.5% 12.5%
Largest monthly loss -9.7% -16.9% -22.3%
Gaining months 68.5% 59.8% 60.7%
SMPLE
Average monthly return 1.6% 0.2% 1.3%

Risk
Annual standard deviation 15.0% 15.7% 20.4%
Annual downside deviation 8.1% 11.9% 13.6%
Largest drawdown -23.0% -51.0% -51.9%

Return/Risk Rations
Sharpe ratio 1.1 Negative 0.6
Sortino ration 2.0 Negative 0.9
AROR/Largest drawdown 0.8 0.0 0.3

Correlation
Entire period 0.6 0.8

Note: net of manager fees

9
 FMG - Marketing Contacts

Asia Europe
Malta
Charles Cantlie & Jeffery Shen Fredrik Edensvärd & Johan Kahm Erik Nelson & Mark Mallia
Tel: +44 20 7581 3149 Tel: +46 8 545 06 180 Tel: +1 203 968 0101
Fax: +44 20 7584 5484 Fax: +46 8 545 06 189 Fax: +1 203 322 1464
e-mail: charlie@fmgfunds.com e-mail: fredrik@fmg.se e-mail: erik@fmgfunds.com
e-mail: jeff@fmgfunds.com e-mail: johan@fmgfunds.com e-mail: mark@fmgfunds.com

UK Scandinavia
Charles Cantlie, Avon Cayzer & Fredrik Edensvärd & Karl Grewin
Francis Salvesen Tel: +46 8 545 06 180
Tel: +44 20 7581 3149 Fax: +46 8 545 06 189
Fax: +44 20 7584 5484 e-mail: fredrik@fmg.se
e-mail: charlie@fmgfunds.com e-mail: karl@fmg.se
e-mail: avon@fmgfunds.com e-mail: erik.h@fmgfunds.com
e-mail: francis@fmgfunds.com

Fund Administrator
Apex Fund Services (Malta) Ltd., Floor 6, Airways House, Gaiety Lane, Sliema, SLM 1549, Malta
Tel: 356 2131 1330 - Fax: 356 2131 2880 - e-mail: anthony@apexfunds.com.mt

www.fmgfunds.com 10