investing in energy, water and food
TRANSCRIPT
-
7/29/2019 Investing in Energy, Water and Food
1/28
2012
Private & Confidential
CORPORATEPRESENTATION
Unique, Rare & Important
-
7/29/2019 Investing in Energy, Water and Food
2/28
Our planet was not givento us by our parents.It was loaned to us by
our children.
INVEST WISELY
-
7/29/2019 Investing in Energy, Water and Food
3/28
! Food, water, energy and metals are the drivers of industrial, economic and social growth.As the world's population rises and the clamor for higher living standards gets louder, so too
the struggle for resource access intensifies.
! For centuries, the West has controlled much of the resources flow, but now China, India,Russia, Brazil, Indonesia, Turkey, the Middle East and a host of other nations want their share.
whether it is water from the Nile, Colorado or the Yarlung-Zangbo-Brahmaputra;
rice from the Mekong Delta, oil from the Middle East, coal from Africa, gas from Russia,
rare earths from China, iron ore from the Australian outback, phosphates from Morocco
uranium from Namibia and Kazakhstan, or shale from North America,
these resources are in limited supply and valuable.
! The world's geopolitics will be shaped by the global race for four strategic resources: food,water, energy and metals.
! The scale of demand from China, Latin America and India for food, water, energy andminerals, has already reshaped the global economy. Africa, too, is about to wake updemographically in a way that will surprise the world.
! This crisis for mankind and our planet is simultaneously our greatest challenge, as well as aonce in a lifetime investment opportunity for visionary investors.
! Institutional investors are now eager for solutions. The timing is ideal, the opportunity isevident and Global Fund Exchange is the right partner 3
Executive Summary
-
7/29/2019 Investing in Energy, Water and Food
4/28
The Macro Opportunity
Contents
The Company
The Products
The Opportunity
-
7/29/2019 Investing in Energy, Water and Food
5/28
5
! Food and water security! Water stress and scarcity! Rising energy consumption / per capita! Rising real incomes ! Urbanization & Industrialization! Increasing calorie and protein intake! Weather disrupted by climate change! Droughts / Floods / Shortages! Geopolitical unrestwill provide greater disruptions and investment
opportunities than any other period in history
The Macro Opportunity
ENERGY7 BILLION
HUMANS WITHEVER INCREASINGENERGY, WATER
AND FOODREQUIREMENTS
9 BILLIONHUMANS WITH
EVER INCREASINGENERGY, WATER
AND FOODREQUIREMENTS
Unprecedented population growth coupled with
ENERGY
WATER
FOOD
-
7/29/2019 Investing in Energy, Water and Food
6/28
6
! Global population has grown exponentially in the last decades! 2.5 Billion in 1950, 5B in 1987, 7B in 2011! Expected to grow to 8 Billion over coming decade, ! 9 Billion by 2040
The Macro Opportunity
! Availability of arable land per person has sharply fallen of! Global: from 0.37 hectares/person in 1960 to 0.2 today! North America: from 1.1. hectares/person to 0.7 today
! Thirty percent of the world's arable land will be unusable by2020 due to excessive salt in the soil.
! Fifty percent may be unusable by 2050.
! Simultaneously, we are consuming ever more water, energy and food per capita with an uncontrollable growth in
carbon footprint (causing further climate change)
Population growth & arable land
-
7/29/2019 Investing in Energy, Water and Food
7/28
7
! Non-OECD countries account for vast majority ofthe nearly 50% projected increase in global
energy use by 2035
! Vastly diferent energy mix, includingalternatives will have to deliver this increase
! Bridge period where traditional fossil fuelsbecome cleaner and more energy ecient and
alternative energies become more mainstream
and financially ecient will generate significant
profit opportunities
! Natural Gas has become a major player in theenergy world
The Macro Opportunity Energy
-
7/29/2019 Investing in Energy, Water and Food
8/28
8
The Macro Opportunity
! The amount of food needed to feed a growing worldpopulation over the next 40 years will equal the total
amount of food already produced over the last 10,000 years.
! Simultaneously the amount of arable land per person isshrinking
! Exacerbated by the ever increasing threats of waterscarcity
! Climate change is increasing thefrequency and severity of weather
disruptions
! In some countries, food costs haverisen to 40% of monthly budget
! Food insecurity already topplinggovernments
Food
-
7/29/2019 Investing in Energy, Water and Food
9/28
9
The Macro Opportunity
! While the worlds population tripled in the20th century, the use of renewable water
resources has grown six-fold.
! Within the next fifty years, the worldpopulation will increase by another 40 to 50 %.
! This population growth coupled withindustrialization and urbanization will result
in an astounding increase in demand for water
and will have serious consequences on certain
countries and the environment.
! The single biggest threat investmentopportunity
Water
-
7/29/2019 Investing in Energy, Water and Food
10/28
10
The Macro Opportunity
! These vital industries are already seeing record flows ofinvestment capital, new orders and profit opportunities.
! Demand for water & energy infrastructure, technologyand services is growing at exponential rates while
supply has remained relatively constant and inelastic.
! By 2030 $ 26 Trillion projected investment inenergy infrastructure
! $ 22 Trillion projected investment in waterinfrastructure by 2030
Why now ?
To avoid political turmoil and regime
changes, governments have no choice but
to continue investing in food, water and
energy infrastructure
-
7/29/2019 Investing in Energy, Water and Food
11/28
Contents
The Macro Opportunity
The Company
The Products
The Opportunity
-
7/29/2019 Investing in Energy, Water and Food
12/28
12
! Our passion is investing in the future of our planet and the mostcompelling mega macro trends facing our world today.
! Our goal is to provide our investors with the ability to participate in theseopportunities, while significantly reducing the extreme volatility normallyassociated with these markets.
! We prudently manage the collective expertise and resources of some ofthe world's premier niche managers focused on energy, agriculture,water and scarce resources.
! Comprising over 100 years of collective experience, the team of expertsatGlobal Fund Exchange provides in-depth macro strategy research,portfolio management, due diligence, reporting, transparency and riskmanagement.
The Company
In order to have an even greater impact, a portion of our profits from your investment will be dedicatedto a worthy charity focused on the needs of humanity Lauralouise Dufy, August 2012
The first company to offer dedicated multimanager portfolios focusing on energy, water,
food and other scarce vital assets
-
7/29/2019 Investing in Energy, Water and Food
13/28
13
The Company
We have created a highly motivated world class institutional quality team, robust operational infrastructure with
highly reputable and experienced global counterparties Anric Blatt, January 2012
World Class Team
Lauralouise DufyPortfolio Manager
22 years experience runninghedge funds, FoFs, ManagedAccounts. Macro specialist
Jim MooreDirector
40 years financial servicesexperience
Thomas EvansDirector
35 years financial servicesexperience, 18 years with
Permal
Anric BlattPortfolio Manager
20 years experience buildinginvestment businesses,
FoFs, Platforms
Clive Jory, CFAAdvisory Board
35 years investmentexperience
Lorraine Kimmey
Operations & Finance32 years banking andoperations experience
Nicholas YeagerChief Information15 years experience in
trading, technology, software& execution
Mark CoxAdvisory Board
30 years equity experienceClean Energy Specialist
Edward Silvera, Esq
Trading & SettlementsJD from Syracuse University, BA
Brandeis University
Heini BerettaPortfolio Analyst
Ex GAM, Credit Agricole.Trustee of GAM UK Pension
11 years experience
Mike Leith SmithAdvisory Board
40 years internationalexperience
WalkersLawyers
Deutsche BankCustodian
DB Alternative Fund Services
AdministratorsEisner Amper
Auditors
Jack MooreAdvisory Board
40 years equity experience,Energy Specialist
-
7/29/2019 Investing in Energy, Water and Food
14/28
Our planet was not givento us by our parents.It was loaned to us by
our children.
INVEST WISELY
-
7/29/2019 Investing in Energy, Water and Food
15/28
Contents
The Macro Opportunity
The Company
The Products
The Opportunity
-
7/29/2019 Investing in Energy, Water and Food
16/28
16
The Products
The AquaTerra Fund is diversified across a portfolio of 8 - 10 specialist managers
investing in agriculture, water and other scarce natural resources. The portfolio aims to
participate in the worlds most compelling macro trends in vital assets, without thevolatility typically associated with commodities and equities.
The Earth Wind & Fire Fund is our 30,000 foot view global mega trends strategy. This
fund invests in all of our strategies to give investors access to a wide variety of assets,
managers and sectors. The diversity of the portfolio contributes toward a low volatilityproduct with a low correlation to benchmarks and broader markets.
Bespoke white label funds - Since 2005 we have specialized in the
construction of individualized and purpose built multi-manager
portfolios, funds, dedicated feeder funds, structured products andrisk management.
www.globalfundexchange.com/products
-
7/29/2019 Investing in Energy, Water and Food
17/28
The EWF Energy Fund combines managers that are experts at finding valuableopportunities in energy equities and talented energy commodities traders to
deliver alpha and low correlation to benchmarks. Forward thinking companies thathave strong balance sheets and focus on improvements in efficiency are rewarded
with investment. Global macro factors of supply and demand, as well as global
weather factors impact our commodity traders decisions.
17
The Products
www.globalfundexchange.com/products
The EWF Pure Water Fund is a long-biased strategy focused on the highly compellingopportunities found throughout the water landscape today. The fund aims to capture
most of the upside of a long-only water equity strategy, while significantly minimizingthe drawdown risk that comes with those strategies. The fund focuses on managers
that are experts at finding value, while also hedging market and headline risk.
The Hybrid Energy Fund is focused on the bridge period of energy that we currentlyfind ourselves in, where traditional energy is becoming more carbon and energy
efficient and alternative energy is becoming more mainstream and financially efficient.Very diverse across a wide universe of sub-sectors, the mixture is typically between
60-70% Traditional Energy and 30-40% Clean Energy.
-
7/29/2019 Investing in Energy, Water and Food
18/28
18
The Products
www.globalfundexchange.com/products
Fund Terms
Liquidity
Varies by fund*
Transparency Full Position with aggregated net exposureweightings, Plus Access to latest research
Administrator DB Alternative Fund Services
Custodian Deutsche Bank AG
MinimumInvestment
$ 1,000,000 or CHF, SGD equivalent*Please contact us for institutional terms
Management Fee 1% per annum for institutional share classes*Please contact us for institutional terms
Performance Fee 10% with a high water mark*
Investor Contact [email protected] +1 212 570 7970
Domicile Cayman Islands
Pricing Weekly Estimates with Monthly NAV directfrom Custodian, Monthly Fact sheets andExposure Reports
* See ofering docs for further details
-
7/29/2019 Investing in Energy, Water and Food
19/28
19
Reduced risk, volatility & drawdown; higher consistency
Niche focused specialists; expertly managed & blended
Why Multi Manager ?
-
7/29/2019 Investing in Energy, Water and Food
20/28
20
The Products Why Multi Manager ?
-
7/29/2019 Investing in Energy, Water and Food
21/28
Contents
The Macro Opportunity
The Company
The Opportunity
The Products
-
7/29/2019 Investing in Energy, Water and Food
22/28
22
-
7/29/2019 Investing in Energy, Water and Food
23/28
23
The Opportunity
MACRO ENVIRONMENT SET FOR A
PERFECT STORM OF OPPORTUNITYEXPONENTIAL POPULATION GROWTH
WATER SCARCITY - FOOD SECURITY - DIET
CHANGESCLIMATE CHANGE - VOLATILE WEATHER
INELASTIC SUPPLY OF ENERGY & RESOURCESGEOPOLITICAL RISKS - FIAT CURRENCY
PRINTING
ACT NOWLEAVE A LEGACY BY BEING A PART OF THE
GREATEST INVESTMENT OPPORTUNITY OFOUR TIME
ESTABLISHED BUSINESS READY TO
BENEFIT FROM THESE
OPPORTUNITIESEXPERIENCED TEAM - EXCELLENT TRACK
RECORDTOP TIER OPERATIONS & INFRASTRUCTURE
5 YEARS AHEAD OF COMPETITORSTHE HARDEST WORK HAS BEEN DONE
GLOBAL INSTITUTIONAL INVESTOR
MANDATESACTIVELY SEARCHING FOR REAL ASSETS,
WATER INVESTMENTS, ENERGY
DIVERSIFICATION, AGRICULTURE AND
RESOURCE INVESTMENTSPOTENTIAL JV WITH EUROPEAN UCITS
PARTNERDRIVING SIGNIFICANT INVESTMENTS INTO
THESE SECTORS
-
7/29/2019 Investing in Energy, Water and Food
24/28
24
ClosingThoughtsWe are five years into a severe global food crisis that is veryunlikely to go away. It will threaten poor countries with increased
malnutrition and starvation and even collapse. Resource
squabbles and waves of food-induced migration will threatenglobal stability and global growth. This threat is badly underestimated by almost everybody and allinstitutions with the possible exception of some military
establishments Jeremy Grantham co-founder of GMOWe are intensely concerned that global money managers arewoefully unprepared for peak oil and largely oblivious to theamount of time, capital and effort it will take to mitigate the
problem. 13D Research, IncA catastrophic water shortage could prove an even bigger threatto mankind this century than soaring food prices and therelentless exhaustion of energy reserves, according to a panel of
global experts at the Goldman Sachs "Top Five Risks" conference.Climate change ranks as the preeminent danger to modernhuman civilization today. The evidence for significant warmingsince the Industrial Revolution is now irrefutable and undeniable. Nick PerryThirty percent of the world's arable land will be unusable by 2020due to excessive salt in the soil. Fifty percent may be unusable by
2050. Woodley B Preucil
"I don't mind if China has civil war, epidemics, panics, depressions,
all of that. You can recover from that. The only thing you cannotrecover from is water, if China doesn't solve its water problems
than there's no China story. They're spending large amounts ofmoney to solve this problem. Jim RogersThe World Bank reports that 80 countries now have watershortages and 2 billion people lack access to clean water. More
disturbingly, the World Health Organization has reported that 1billion people lack enough water to simply meet their basicneeds. Arlington InstituteIf current water consumption trends continue, by 2025 the
agricultural sector will experience serious water shortages. Croplosses due to water scarcity could be as high as 350 millionmetric tons per year, slightly more than the entire crop yield of
the U.S. This massive water crisis will be caused by water contamination,diverting water for industrial purposes, and the depletion ofaquifers.Climate change may also play a part. Additionally, manyaquifers are contaminated each year by pollution and seawater
intrusion International Food Policy Research Institute (IFPRI)The global agriculture industry will have to supply, as much foodas has been produced during all of human history, to meet human
nutritional needs over the next four decades.
-
7/29/2019 Investing in Energy, Water and Food
25/28
25
Preparation is a key to opportunityIf you like our ideas and strategies, the next step is to undertake due diligenceand request ofering and subscription forms to enable swift execution when youbelieve the timing is right
GLOBALFUNDEXCHANGE . COM
THANKYOUNEXTSTEPS
For further Information, please contact us in:
New York + 1 212 570 7970 Zurich + 41 44 586 8582Qatar + 974 3318 6908
Hong Kong +852 8174 6688
-
7/29/2019 Investing in Energy, Water and Food
26/28
Over the next four decades the agriculture industry will have to supply, as muchfood as has been produced during all of human history
United Nations
The global battle for natural resources from food and water to energyand precious metals is only beginning, and will intensify to
proportions that could mean enormous upheavals for every country
Sir David King, chief scientific adviser to the UK government
Global water demand is doublingevery 21 years supplies cannot
remotely keep up.
World Bank
-
7/29/2019 Investing in Energy, Water and Food
27/28
This material is suitable only for "Qualified Purchasers" or "Accredited Investors. Notwithstanding the classification of a "Qualified Purchaser" or "Accredited
Investor" this material , vis--vis Global Fund Exchange Ltd (the "company"), the Global Fund Exchange Group (the "group") and any of the Company, subsidiaries,
affiliates and/or Group's funds, (collectively "Global Fund Exchange"), does not represent that the securities or services described herein are suitable for any
specific investor. The products that are described or appear in this material are not generally available to United States persons. The information provided in this material is notintended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation
or which would subject Global Fund Exchange to any registration requirement within such jurisdiction or country. This material contains information concerning
investments that are registered and managed in different jurisdictions. As a consequence, this information is not directed at persons who are prohibited from
accessing this information by laws and regulations which prohibit the publication or access to the information in question by virtue of the nationality, place of
residence, domicile or registered office of the person or entity concerned or on other grounds.The information and opinions contained in this material are for background purposes only and do not purport to be full or complete. No reliance may be placed
for any purpose on the information contained herein or their accuracy or completeness. No representation, warranty or undertaking, express or implied, is given
as to the accuracy or completeness of the information or opinions contained in this material by Global Fund Exchange and no liability is accepted by Global Fund
Exchange, or any affiliate of Global Fund Exchange, for the accuracy or completeness of any such information or opinions. Any performance data contained herein
does not necessarily reflect the trading of any account advised by Global Fund Exchange or the actual trading of any client capital. Such performance may bedeemed hypothetical and could therefore be calculated by retroactively applying certain fees or strategies. Hypothetical or simulated performance results have
certain inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The proposed
manager/fund allocations reflect the funds and the managers to which Global Fund Exchange is currently making or proposes to make allocations to. Furthermore,
there is no guarantee that such underlying managers and funds will accept investments or be open to additional investments in the future. Past performance is not
necessarily indicative of future results. The price of investments can go down as well as up and may be affected by changes in rates of exchange. An investor may
not get back the amount invested. If you are in any doubt about the suitability of investing, you should seek independent advice. Please refer to the prospectus or
other offering documents relating thereto for further details of investor eligibility and the financial commitments and risks involved in connection with an
investment in such funds.This material does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase any shares or any other
interests nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Users/viewers of this material who
intend to apply for shares or interests are reminded that any such application may be made solely on the basis of the information and opinions contained in theprospectus or other offering document relating thereto, as amended and as when they become available, which may be different from the information and opinions
contained in this material. No offer or solicitation may be made prior to the delivery of respective offering documents to "Qualified Purchasers" or "Accredited
Investors." Before making any investment, you should thoroughly review a Fund's offering documents with your legal, tax and investment advisors. All information
found in this material including, but not limited to, portfolio construction information, net asset values, share price performance information and performance
reports may not be suitable for all investors and is not intended to be, nor shall it be construed as legal, tax or investment advice or as an offer, or the solicitation
of any offer, to buy or sell any securities.Neither Global Fund Exchange, nor its directors, officers or employees, nor any third party vendor will be liable or have any responsibility of any kind for any loss
or damage that you incur in the event of any opinion or fact published in this material. This material is for general information and education only and is expressly
not classified as investment advice. This information is strictly confidential and may not be reproduced or redistributed in whole or in part, nor may its contents
be disclosed to any other person under any circumstances.
27
ImportantDisclaimer
-
7/29/2019 Investing in Energy, Water and Food
28/28