GARDINER FINANCE LLC

PRESENTATION OF PRIVATE WEALTH MANAGEMENT

© Corbis 2003

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Introduction
The wealth management allows the investor to benefit from sophisticated techniques
to develop, without risk, a capital. The two key words of private wealth management
are: confidentiality and conservatism. Money is like wine, it necessitates good
conditions to develop and mature with time, with a time scale of 3 to 5 years, to begin
with.

The environment
The financial crisis is not finished yet and the investor should take volatility into
consideration when choosing the type of investments. Low-correlated funds are a
specialty of Gardiner Finance LLC. These funds are not related to financial markets
in equity and bond, and to benchmark. But the lack of correlation applies to risks,
which makes the low-correlated funds good financial instruments for low risk and long
term investments, with a scale of time between 5 to 10 years.

The diversification
Diversification of the financial assets is the key fact for safety. This diversification
should apply to the asset classes such as low-correlated funds; mutual and
alternative funds; equity portfolio and structured products. Some assets will bring
preservation of the capital; others yield, but with more risks according to the volatility.
A kind of insurance of the wealth lies in a volatility fund: when the market is bullish,
the volatility is low, and the yield is raising; when a crisis happens, the volatility
surges suddenly, the benchmarks go down, the market is bearish. When this
happens, the volatility benchmark is strongly bullish, with high yield like 40% over a
short period, counteracting the average portfolio (Except low-correlated funds) and
limits or cancels the overall losses.

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The jurisdictions
Located in Switzerland, Geneva is the world-wide center for private wealth
management. While the city is very small by Indian standards (160,000 inhabitants),
it shelters 140 banks, most of them privately owned, with 65 foreign entities. This
industry shelters and manages 27% of the wealth, before U.K. and Luxembourg with
24 and 17%. Thousands of people are working for the finance industry in Geneva:
bankers; wealth managers; financial advisers; accountants; auditors; lawyers and
notaries, all tight by the bank secrecy and the confidentiality related to the financial
affairs. A minimum of CHF50,000 is necessary to open a wealth management
account in a private bank in Geneva.

Other jurisdictions are:

 Luxembourg
 Jersey
 Mauritius
 Singapore
 Hong Kong
 India
 UAE

Mauritius is a good choice for the Indian resident as tax savings are available with the
taw treaty in force between India and Mauritius. This applies to the use of a Mauritian
structure (Non-resident Company, GBC 2; non-resident trust) even if the assets are
in custody in another jurisdiction. Wealth management can be done in India with the
assistance of BNP Paribas which provide safety and competency on location.

Private banking
Gardiner Finance LLC provides introduction and management for the private
banking, from Geneva. It uses a family owned bank established in 1889, association
between a Swiss citizen and a large company. The philosophy of the bank is
integrity; innovation; personalized service to satisfy the private investor.
Confidentiality and conservatism protect the financial assets managed by the bank or
by the financial advisor that works with it.

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The bank uses the modern tools like an Extranet with a management tool; a
database and a fund selection tool as well as online account opening from any
jurisdiction world-wide. Of course the beneficial owner may choose to come in person
to meet the bank and the key people with the individual introduction of the financial
adviser.

International tax planning

Taxes are often a problem for the investor, especially during a low yield period.
Nevertheless, when the markets are bullish again, the taxes will rise and the situation
does not improve. Tax planning is a wise solution and can be adapted to existing or
future wealth management, such as:

 Using a Mauritian structure like a Company or a trust

 Using a life insurance contract to shelter the assets and obtain tax advantages
 Relocation to Mauritius, either with the tax treaty and with the IRS (Investment
Resort Scheme) which is to buy an IRS villa or flat and to get a residence
permits.
 Relocation to Switzerland with the lump sum tax scheme, for high net worth
investors.
 Relocation in Europe, with a EUR300,000 equity investment for 5 years in an
EU bank and getting access to Schengen area (27 countries).

Financial adviser
In wealth management, the financial adviser is a necessity: he knows the markets;
the market timing (Bullish or bearish periods; is the bridge between the client and the
bank; take care of the tax planning or any useful service needed for the investor.

We have developed a wealth management tool from EUR50,000 which is invested in

stocks on the international markets, with a high potential of rise in value. This could
produce yields from 50% per year (Yield is not granted and can be lower or higher –
The use of the volatility tool is recommended). Investment is made up in the private
bank.

Indian funds could be used for Indian investors willing to remain invested in their
country, whatever the jurisdiction of the wealth.

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A global portfolio
The objective is to build up a balanced wealth portfolio according to the client wishes
and risk tolerance. In the present situation of the markets, an average yield of 10 to
12% is a middle term (3 to 5 years) prevision. The good news is that low-correlated
funds are not sensitive to bearish markets and the yield is regular over the year,
without big holes which will testify of the financial crisis. A global portfolio may
contain:

 Low-correlated funds, including with guarantee of capital

 Stocks with high potential (With safety stops)
 Volatility fund, to protect stock yields
 Mutual funds
 Alternative funds
 Structured products, including with 90% guarantee of capital

For any information, please contact your local agent.

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