The Cascade Portfolio

Transcription

1 The Cascade Portfolio Transform your client s investments For financial intermediaries & professional investors

2 Contents Take a closer look 1 Transform your client s investments 2 3 How can my clients benefit from life settlements? 4 5 How does a Cascade Portfolio work? 6 7 Cascade Portfolio illustration 8 9 What are the risks to my client s investment? Why should my clients invest? 12 Key facts 13 Glossary 14 15

3 Take a closer look at PDL International a global distributor of specialist or alternative investments. We believe that investors around the globe are looking for innovative investment solutions that maximise their investment return, but at the same time help protect their wealth. As a result our aim is to offer a range of risk managed investments, across a number of asset classes, which will help investors secure their financial futures. PDL International has a network of distributors across the globe able to support professional advisers and their clients. This gives us unparalleled access and local knowledge to many diverse regions and markets such as Europe, The Middle and Far East and South America. For more information please visit us at Life settlements A key part of investing in life settlements is the ability to source US life insurance policies. That s why PDL International has chosen to partner with Mosaic Caribe Ltd (Mosaic) in offering financial advisers and their clients the opportunity to invest in this growing asset class via the Cascade Portfolio. Mosaic is a specialist in the life settlement market, a leading purchaser of policies in the US and a member of the European Life Settlement Association (ELSA). For more information please read the Mosaic Due Diligence & Company Information, pages 2-7. Important This brochure has been designed for financial intermediaries and professional i nvestors only and should be read in conjunction with the attached Mosaic Due Diligence & Company Information, Cascade Illustration and Mosaic Key Features Document. For additional copies of this material please go to our website at The Cascade Portfolio 1

4 Transform your client s investments What are life settlements? A life settlement is the purchase of an existing US life insurance policy, with a view to holding it as an investment, where the insured is over 65 years of age and generally has impaired health due to advanced age or medical diagnosis. This Senior Life Settlements market evolved in America during the late 1990s and is now estimated to be worth between US$100 billion and US$160 billion 1. Over the coming years it is expected to grow considerably due to the number of policies available and popularity of the asset class. For more information please read the Mosaic Due Diligence & Company Information pages 3-4. Why are life settlements growing in popularity? The reason why senior life settlements could be a good investment for your clients is because of the difference in their value at the time the insurance policy is purchased, compared to its value at maturity i.e. when the insured dies (after all fees, costs and outstanding premium payments). Some of the reasons why investors have chosen to invest in life settlements are that: life settlements have the ability to help repair investors financial plans due to the potential returns life settlements allow investors to diversify their portfolio to include alternative investments the returns generated have no correlation to traditional asset classes and markets life settlements exhibit low volatility, with the potential for strong returns policies are sourced at a discount to their intrinsic value life insurance has a known policy maturity value that is a certainty policies are provided by highly rated US insurance companies. For more information please read the Mosaic Due Diligence & Company Information, pages 1-2. The Cascade Portfolio 2

5 How can my clients invest in life settlements? There are generally two ways to invest in senior life settlements: Fund: This is where the investor invests their money in a pool of life settlement policies, the idea being that the more policies in the fund, the lower the overall Life Extension Risk and volatility. However the potential downside is that the investor does not have a say in the types of policies they wish to invest in. Nor will they be able to see the individual characteristics or quality of the policies they are invested in. Portfolio: This is where the investor invests their money in a smaller (compared to a fund) but tailored number of life settlement policies. Generally an investor would require higher capital investment to purchase enough policies to diversify the life extension or longevity risk. However if the portfolio is structured in a way that enables a number of investors to own, or partially own, the Beneficial Interests in a diversified portfolio of policies, then they can diversify their investment in a greater number of policies. What s more, the investment has greater transparency as they can see the quality and characteristics of the underlying policies they re invested in. This is the approach that Mosaic takes with the Cascade Portfolio. For more information please read the Mosaic Key Features Document, page 6. Who is the Cascade Portfolio suitable for? The Cascade Portfolio is suitable for investors who: are non US citizens are sophisticated in financial matters having either sought professional advice or have access to professional advice understand that life settlements are a long term investment understand and have read the risk factors in the Cascade Portfolio Key Features document provided by Mosaic have adequate means of providing for, and sustaining, their current financial needs are able to pay the fees and premiums in the event that policies mature beyond Life Expectancy Plus Twelve Months. 1 The market was estimated as $19 billion in 2006 and is predicted to grow to $160 billion over the next several years. Source: Bernstein Investment Research of New York City, The market potential was estimated as being $100 billion (Conning & Co., 2003) The Cascade Portfolio 3

6 How can my clients benefit from life settlements? The speed and severity of the recent economic downturn has had a profound effect on investor psyche. Many investors not only want their investments to perform, as well as protect what they have, but they re also looking for a degree of certainty. However with equities and bonds showing increased risk of volatility, and cash and property providing low returns, where will you feel comfortable investing your client s money in the future? A suitable investment for your clients could be life settlements as they can provide: No correlation to traditional asset classes and markets Unlike other asset classes, life settlements are not impacted by the movement of the markets. Instead: When an insured individual s (the policyholder) health becomes impaired, the present value of the life insurance policy increases. That s because it may mature sooner than originally projected. Because the premiums will not continue for as long as originally projected, the value of the Premium Payments decreases. However the Cash Surrender Value is fixed by regulation and cannot be changed because of the impairment. Yet the actuarial value of a policy increases. These conditions provide the opportunity to acquire the policy above the Cash Surrender Value, but at a discount to its face value or Death Benefit. Greater diversification of your client s investment portfolio Allows investors to diversify their portfolio to include alternative investments. Can meet the need for investment performance, whilst reconciling the emotion attached to investment risk. As a long term investment, a Cascade Portfolio can also help clients to take a long term view during periods of higher market volatility. The Cascade Portfolio 4

7 Lower volatility with the potential for strong returns. Having a proportion of your client s assets in life settlements, which have no correlation to other assets and markets, can reduce the overall volatility of their portfolio. Life settlements have performed well against other equity indices and bonds. Comparison of returns Jan 2007 Dec Index Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sept 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sept 09 Oct 09 Nov 09 Dec 09 AA Partners life settlement index return TEGBX Templeton Global Bond index return FTSE stock index return S&P 500 stock index Source: AA Partners April AA Partners Life Settlement Index Returns (since inception) compared to the FTSE 100, S&P 500 and the Templeton Global Bond Index. Jan 2007 Dec The AA Partners Life Settlement Index consists currently of 17 funds selected by AA Partners which are subject to change. The funds have cumulated fund volumes of about USD 3.9 Billion and own life insurance policies with face values of about USD 13 Billion. All figures are net of fees. The Cascade Portfolio 5

8 How does a Cascade Portfolio work? A Cascade Portfolio enables investors to: purchase the Beneficial Interests in a diversified portfolio of US life settlements acquire policies at a significantly lower cost than the Maturity Value paid by leading US insurance companies (rated A or above by A.M. Best) re-invest their portion of each policy maturity value back into the portfolio in order to benefit from the compound effect of the Cascade Portfolio. How is the portfolio constructed? Policies are purchased by Mosaic with varying life expectancies ranging from approximately 36 to 96 months (3-8 years). Funds are held in a Premium Reserve account in order to pay for policy premiums. Policies are placed into different Cascade Paths based on different life expectancy ranges. The reason for this is that shorter life expectancies can provide the cash flow in order to purchase more policies as they mature. Longer life expectancies can provide higher returns to help meet the portfolio s expected return. See the example of an initial portfolio allocation in table 1. Table 1. $100,000 initial investment allocation Cascade Path Life Expectancy (months) n/a Safety Path Allocation $ $25,000 $10,000 $15,000 $7,000 $15,000 $5,000 $10,000 $5,000 $5,000 $3,000 Maturity Simple Gain 35% 43% 49% 56% 62.5% 69% 75.5% 88.5% 101.5% n/a Total Gains $33,750 $14,300 $22,350 $10,920 $24,375 $8,450 $17,550 $9,425 $10,075 n/a This example is for illustration purposes only and shows each policy maturing on the Life Expectancy date. Maturity gains exclude Mosaic management fees and portfolio re-balancing. The Cascade Portfolio 6

9 What happens when a policy matures? On the death of an insured individual, Mosaic Management Group (as agent for Mosaic Caribe Ltd) will file a Death Benefit claim with the insurance company. As the investor is the named beneficiary of the policy (in whole or in part) they will receive their proportional share of the death benefit. This will equate to their initial investment plus the Maturity Gain. At this trigger point the investor can either: Re-invest clients can re-invest the maturity value (min $5,000), less the Safety Path top up, by purchasing more policies with this increased amount. By cascading these funds back in to the portfolio, investors can maximise the compounding effect of their investment. See pages 8-9. AND / OR Withdraw clients can withdraw all or part of the maturity value (after any portfolio re-balancing). However this will alter the future return of their portfolio, as this will reduce the compounding effect which the portfolio is designed to achieve. (For more information please read the Mosaic Illustration page 8) What if a policy matures later than the life expectancy date? Premium payments will be made for each policy up until the life expectancy date plus an additional twelve months from the Premium Reserve account. Should a policy go beyond Life Expectancy Plus Twelve Months, premiums will be paid by the client from the funds held within the Safety Path. The Safety Path is automatically built into the Cascade Portfolio (see table 1). This contains a minimum of 3% of the client s investment set aside as a separate Contingency Premium Reserve. In addition to paying the Mosaic annual management fees, this liquid reserve is designed to help pay the premiums on any policies that go beyond the life expectancy date plus twelve months. Each time a policy matures the reserve is topped up to a minimum of 3% of the value of the portfolio to help ensure any additional premiums can be paid in the future. (For more information please read the Mosaic Illustration page 5 ) The Cascade Portfolio 7

10 Cascade Portfolio illustration This is a 20 year sample illustration only and may not be typical of client s portfolios. 1 The portfolio is weighted towards the shorter dated policies to benefit from the cascade effect. 3 The difference between the Investment and the Maturity Value % of the portfolio value. Amount Invested 100,000 Cascade Path Safety path Allocation 25% 10% 15% 7% 15% 5% 10% 5% 5% 3% Maturity Amount Safety Less New Portfolio NET Life Expectancy N/A Gain reinvested Path Mosaic Safety Value Value Return 35% 43% 49% 56% 62.50% 69% 75.50% 88.50% % N/ A Top up Mgmt Path Including excluding Investment 25,000 10,000 15,000 7,000 15,000 5,000 10,000 5,000 5,000 3,000 fees Balance Safety Safety Path Path MONTH 3, , ,000 97, , ,515 99,515 97, , ,030 99,030 97, ,750 2,030 8,750 32, , , , ,300 2,486 4,300 13, , , , ,350 2,695 7,350 21, , , , ,920 2,790 3,920 10, , , , ,375 2,961 9,375 23, , , , ,450 3,045 3,450 7, , , , ,292 17,550 3,265 19,033 61, , , , ,401 9,425 3,337 10,259 27,627 1, , , , ,352 10,075 3,797 15,714 41,402 1, , , , ,795 15,871 4,037 21,200 74,433 1, , , , ,511 4,412 14,812 37,043 1, , , , ,743 12,836 4,922 13,583 39,206 1,374 1,025 5, , , ,723 48,204 29,538 5,271 75, ,064 1,401 1,086 5, , , , ,457 4, , , ,673 22,544 15,505 4,130 30,593 72,987 4,735 1,457 7, , , ,976 60,195 7,408 51, ,839 2,331 1,586 8, , , ,824 18,236 8,153 30,756 86,980 3,081 1,831 9, , , ,371 9,402 5,162 16,672 2,699 1,970 10, , , ,117 56,732 35,168 49,380 10,131 86, ,331 2,066 1,982 10, , , , ,403 7, , , ,444 70, ,018 43,921 94,029 26,662 61,807 27,267 27,491 7, , ,842 2,403 12, , ,065 END TOTALS 198,608 81, ,018 54,862 94,029 32,737 86,661 29,228 36,745 12,250 73, ,155 9, , ,928 2 This is the known Maturity Value (or Death Benefit). The Cascade Portfolio 8 7 The policy that matured in month 36 was re-invested to purchase the Beneficial Interest in this policy maturing in month 72 with a known Maturity Value. 4 Death Benefit (less Safety Path top up) re-invested to purchase a partial Beneficial Interest in another policy. 6 Previous portfolio value plus Maturity Gain less management fees. The Cascade Portfolio 9

11 What are the risks to my client s investment? When investing in the Cascade Portfolio the main considerations are: Life Extension The key to investing in life settlements is the estimation of life expectancy. All policies are purchased using a deterministic model based upon a medical and actuarial life expectancy, developed by an independent third party medical laboratory specialising in life expectancy forecasts. These estimates are based on actuarial tables and medical factors. The effects of Life Extension Risk can be mitigated by: investing in a diverse number of policies: just as some policies may mature beyond the life expectancy date, others may mature early. the twelve month additional premium payments, which are built in to each premium payment plan in case a policy matures later than expected. Known as Life Expectancy Plus Twelve Months. Premium Payment In the event that a policy matures beyond life expectancy plus twelve months, the Premium Contingency Reserve, held within the investors Safety Path, will pay policy premiums for a period of time. Should the Premium Contingency Reserve become depleted, it is the investors responsibility to pay additional payments based upon the percentage of the policy they own. This is done by Mosaic requesting that the investor top up their Premium Contingency Reserve. Failure to maintain the premiums on any policy will result in the loss of the client s Beneficial Interest in that policy and may result in Mosaic being forced to sell these to a third party. The effects of premium payment risk can be mitigated by the fact that: in a diverse portfolio some policies may mature earlier than the life expectancy date, just as some may mature later. the Premium Contingency Reserve is always topped up each time a policy matures in the portfolio. the Cascade Portfolio is designed so that policies with shorter life expectancies can provide the cash flow to purchase more policies and help keep the Premium Contingency Reserve topped up. Currency Investments are in US Dollars only and investors could be affected negatively or positively by currency fluctuations. The Cascade Portfolio 10

12 Insurance Company Insolvency If a US insurance company becomes insolvent they may be unable to pay the Death Benefit of the policies they have issued. However this risk to the client is limited by: a number of regulatory measurements and controls, re-sale options as well as special funds employed by the US State Insurance Commissioners to reduce this possibility to near zero. the fact that Mosaic will also only purchase, or arrange the purchase, of policies issued by life insurance companies with an A. M. Best rating of A or above. A. M. Best Company is the premier US insurance rating institution. It publishes financial strength ratings for all US life, health and casualty insurance companies. Mosaic Caribe Insolvency As with all companies there is the possibility that, despite the position Mosaic Caribe currently enjoys in the life settlements market, it could become insolvent in the future. However should this happen investors funds are protected because: it is the client, or the independent trust established on the clients behalf, that is the named beneficiary of the Death Benefit, or portion thereof. it is the responsibility of the insurance company to pay the death benefit and not Mosaic s. the Premium Reserve, established for the payment of the premiums, is placed within an Escrow Account held independently by CBIZ Goldstein Lewin. Liquidity When purchasing whole or partial beneficial interests in life settlements, clients must understand that their money is committed until the policy matures. Therefore these types of investments are suitable for those investors who have sufficient funds that they can draw on at short notice. Taxation Mosaic Caribe Ltd is incorporated in the British Virgin Islands which is a tax neutral jurisdiction and remits the investors the entire portion of the death benefit. Therefore it is the clients responsibility to pay the taxes on the gain where applicable depending on their tax status in their own relevant tax jurisdiction. For more information please read the Mosaic Key Features Document. The Cascade Portfolio 11

13 How can my clients invest? Step One The investor reviews the Cascade Portfolio illustration with their financial adviser and decides the investment is suitable for their needs as a long term capital appreciation plan. Step Two The investor signs the Cascade Portfolio application and indicates the amount of the initial investment. Step Three The investor transfers the initial investment amount into a Purchase Deposit Account controlled by the Escrow Agent CBIZ Goldstein Lewin. A portion of this is allocated to the Premium Reserve account, also controlled by the escrow agent. Step Four Mosaic Caribe allocates a minimum of 3% of the investors investment amount and places it into a Safety Path account as the Contingency Premium Reserve. Step Five Mosaic purchases the life insurance policies and assigns the client Beneficial Interest to their portion of the policy. Typically this process takes up to 30 days depending on the size of the portfolio. Step Six As policies are purchased and assigned Beneficial Rights, Mosaic prepares the documents as a completed portfolio and sends them to the investor in a personalised binder. Step Seven Enclosed with the binder is a first quarter report reflecting all the policy purchases, current values and the Safety Path balance. Step Eight On a quarterly basis, Mosaic updates this report to reflect the changing values of the portfolio. Mosaic uses FASB Accounting rule 85-4A to accurately project values over time for this asset class. FASB is the Financial Accounting Standards Board and the rule thus becomes a GAAP method. GAAP means Generally Accepted Accounting Principles. Step Nine As policies mature the original investment, and the Maturity Gain, are re-invested by purchasing new policies in order to provide capital appreciation through long term growth. Unless the investor requests otherwise. The Cascade Portfolio 12

14 A global distributor of specialist investments. Provides access and local knowledge to many diverse regions and markets. PDL International s aim is to offer a range of risk managed investments to help investors secure their financial future. The Cascade Portfolio is a direct investment in a custom built portfolio of US life insurance policies. The portfolio is structured and managed to help provide investment returns over the long term which are paid by top rated US insurance companies. European Depository Accounts are held at Bank of America. Bank of America is one of the world s largest banking organisations. Bank of America is also the world s largest wealth manager and a major player in the global investment banking industry. One of the largest accounting firms in the US. CBIZ Goldstein Lewin is one of the ten largest valuation firms in the US, with over 140 offices and 5,000 associates. Undertakes the underwriting, actuarial and feasibility analyses of each policy prior to purchasing. Actuarial calculations use both life expectancy tables as well as independent medical laboratories serving the US life settlement industry. Also subjects each policy to scrutiny by a medical advisory board. Acquires policies from licensed US providers including Mosaic Settlement Group. Establishes the funds and premium reserves. Sells beneficial interests in these policies to investors worldwide through products such as the Cascade Portfolio. Pays policy premiums through the escrow account via the escrow agent. Provides quarterly investor statements. A.M. Best A Rated or above US life insurance companies, such as MetLife, and AXA. This is an independent opinion of an insurer s financial strength and ability to meet its ongoing obligations. A++, A+ (Superior rating) A (Excellent rating). The Cascade Portfolio 13

15 Why should my clients invest? Market volatility and uncertainty creates a challenging investment environment. Where can clients invest their money to provide them with the returns and the certainty they are looking for? A proven asset We believe that life settlements can not only help diversify an investor s portfolio, with exposure to an alternative asset class, but that they can also: benefit from an investment with no correlation to traditional asset classes or markets enjoy low volatility, with the potential for strong returns source policies at a discount to their intrinsic value have certainty over their policies maturity value be assured that policies are provided by highly rated US insurance companies. A transparent investment The Cascade Portfolio could be a suitable way for your clients to access life settlements because it provides: greater transparency in knowing what they re invested in generally lower fees compared to many current life settlement funds the ability to re-invest in order to benefit from the compounding effect potentially very good capital appreciation. Transform your client s investments The Cascade Portfolio could also be suitable for investors who want: to maximise their income in retirement to help repair their investment portfolio following the Credit Crunch longer term investments suitable for pension planning to diversify their Self Invested Personal Pension (SIPP) an alternative to Lifestyling to potentially lower the risk of their overall retirement portfolio. The Cascade Portfolio 14

16 Key facts Underlying Asset US senior life settlements with a minimum term 36 months and a maximum term of usually 96 months. Minimum A rated (or better) by A.M. Best Asset Allocation 97% in physical life settlements and 3% in cash account ($), rebalanced at every maturity Geographical USA Currency USD Investment no currency hedging Minimum Cascade Paths 4 5 Minimum Investment Size $50,000 Minimum Top-up $5,000 Fees Up to $1m >$1m 0.50% p.a. 0.25% p.a. (on that portion over $1m) Performance Target 9% 12% p.a. Portfolio Valuation Quarterly Valuation Methodology Deterministic with all policies having12 months or more to life expectancy estimates Portfolio Manager Mosaic Management Group Ltd Portfolio Policy Supplier Mosaic Settlement Group Inc Portfolio Administrator Mosaic Caribe Ltd Promoter PDL International Ltd Escrow Accounts Held at Bank of America and Wells Fargo under the direct control of the escrow agent: CBIZ Goldstein Lewin. The Cascade Portfolio 15

17 Glossary A.M. Best Company (established in 1906) is a global full-service credit rating agency. It is also the premier US insurance rating institution for US financial and health-care service industries, publishing financial strength ratings for all US life, health and casualty insurance companies. A.M. Best s Credit Ratings are independent opinions regarding the creditworthiness of an issuer or debt obligation. A.M. Best provides sixteen different credit ratings. The table below shows how A.M. Best rating A and above compares with other leading credit rating agencies. Rank A.M. Best Fitch Moody s Standard & Poor s 1 A++ = Superior AAA = Exceptionally Aaa = Exceptional AAA = Extremely Strong Strong 2 A+ = Superior AA+ = Very Strong Aa1 = Excellent AA+ = Very Strong 3 A = Excellent AA = Very Strong Aa2 = Excellent AA = Very Strong Beneficial Interest is the investor s portion (or interest) in each policy s face value. As such the investor will receive the whole or partial share of the full death benefit after each policy matures. Cascade Paths is a series of life settlement policy acquisitions, maturities and repurchases which take place over time to match a client s strategic goals. A number of Cascade Paths make up a client s portfolio. These paths include a number of policies with varying life expectancies. Shorter life expectancies provide lower returns but potentially increase cash flow to purchase new policies. Longer life expectancies provide higher returns. Cascade Safety Path contains the Contingency Premium Reserve set aside to pay for the policy premiums and Mosaic fees. These funds are ring fenced in an escrow account and are invested in low risk instruments such as US treasuries or money market funds. Cash Surrender Value is the value the policy holder / insured life would receive if they sold their life insurance policy back to the issuing US insurance company. Contingency Premium Reserve is held within the Safety Path and equates to 3% of the value of the portfolio. These funds are used to help pay the premiums of policies if they go beyond life expectancy plus twelve months. Should they become depleted, investors will be asked to top up the reserve to help ensure future premiums can be paid. Each time a policy matures, the Contingency Premium Reserve is automatically topped up from the maturity gain of each maturing policy. Death Benefit is the maturity value of the policy paid by the insurance company when the policy matures / on the death of the life insured. Investors will receive their portion of the Death Benefit which is then used to purchase new policies in order to benefit from the compound effect of the Cascade Portfolio. The Cascade Portfolio 16

18 Escrow Account is an account held under the total control of the escrow agent: CBIZ Goldstein Lewin, on behalf of the investor. The account is held under the provisions of license law, for the purpose of holding funds which will pay for policies, premiums and Mosaic fees throughout the life of the Cascade Portfolio. Escrow Agent is CBIZ Goldstein Lewin. Under the terms of the escrow agreement, the escrow agent is the only party who can release funds to purchase policies, or fractions of policies, pay policy premiums and invest in safe money market or other liquid instruments in the Safety Path until a premium is due. Life Expectancy Plus Twelve Months is the date the life insured is estimated to die, with an additional cushion of twelve months. This life expectancy date is arrived after each policy has been reviewed by an independent medical reviewing physician or team of physicians. Maturity Gain is the difference between the purchase price of the policy and its maturity value. Maturity Value is the death benefit paid by the insurance company who issued the policy following the death of the policyholder. Investors will receive their portion of the maturity value which is then used to purchase new policies in order to benefit from the compound effect of the Cascade Portfolio. Purchase Deposit Account is an escrow account controlled by the escrow agent CBIZ Goldstein Lewin, in to which investors transfer their initial investment for the purpose of purchasing their initial number of policies. Premium Payments are the regular (typically monthly) payments required to keep the policy in force. These payments are made from the Premium Reserve account paid by Mosaic, through escrow agent CBIZ Goldstein Lewin, on behalf of the client. Premium Reserve is an escrow account under the total control of the escrow agent CBIZ Goldstein Lewin. This account is used to pay the premiums on each policy up until life expectancy plus twelve months. Senior Life Settlements are the purchase of an elderly individuals life insurance policy by a third party i.e. where the life insured is over 65 years of age and whose health is generally impaired due to advanced age or medical diagnosis. The Cascade Portfolio 17

19 The small print This brochure is directed only at investment professionals (such as financial intermediaries) and must not be circulated to, relied upon or acted upon (for any purposes whatsoever) by any other person not falling within this description. Within the UK, investment professionals includes only persons as described within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (persons having professional experience in matters relating to investments). PDL International gives no representation or warranty, express or implied, in relation to any such product and as to the accuracy or completeness of the information or opinions contained in this brochure, and no liability is accepted by PDL International, or any of its directors, members, officers, employers, agents or advisors, for any such information or opinions. In particular, PDL International accepts no responsibility in respect of statements of third parties that are quoted in this brochure. The information and opinions contained in this brochure are being supplied for information purposes only and not for any other purpose, and should not be treated as financial advice, legal advice or tax advice. Investors may not get back the amount they originally invested in the products referred to in this brochure. The value of an investment and the income produced from it may fall as well as rise. Past performance is not necessarily a guide to future performance. Risks are detailed in the accompanying product literature that must be made available before any investment. The amount to be reasonably invested depends on the investor s personal circumstances, personal assets and risk tolerance. Investors are advised to seek independent investment advice before investing in any of the products referred to in this brochure. Please refer to the accompanying product literature for the contact details of the product provider, and your rights to make a complaint against them if you are a purchaser or distributor of their product. Contact us PDL International T: +44 (0) E: info@pdlinternational.com PDL 340_06/0710