Trade Finance Fund saint vincent

Transcription

1 Trade Finance Fund saint vincent 2015 A UNIQUE INVESTMENT FINANCING TRADES IN DEMANDING MARKETS

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3 INTRODUCTION BY THE PRESIDENT THE LOGIC OF TRADE FINANCING A TYPICAL TRADE TRADE FINANCE - A GOOD PURPOSE INVESTMENT WITH MAX SECURITIES TFF STRUCTURE AND DECISION PROCESS BENCHMARK DATAS TFF & INVEST OFFER content TFF CONTACTS

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5 introduction The search for high yield investments has always been a tricky game. The risk is obviously difficult to mitigate or a normal investor does not have the tools to see the hidden pitfalls. Tremors in the worldwide economy, banks behaving like rabbits, and government policies being neither always logical nor sufficiently predictive, make it increasingly difficult to find investments in which risks may be mitigated yet returns sustained at overaverage levels. The so-called safe investments pushed by banks and governments have been demonstrated to be anything but. Once more, investors are becoming increasingly confused as to where and how they can possibly invest their hard earned assets. Consequently one has to look for options away from the mainstream, but following a clear and rigorously enforced investment strategy: Investments need to be uncorrelated with the swings in the mainstream economy. Investments have to stand for a good purpose (aside the expected profits) and a positive results for the people and companies involved. Investments must result in substantially higher profits than mainstream investments. Investments have to be highly secured. Based on the above criteria we have looked for potential investments all over the world and found a niche, which is interesting indeed due to a strong and simple reason: Wherever local banks and financial institutions cannot satisfy the local market needs, or wherever political issues make normal financing difficult or impossible, trade financing creates a big opportunity for international investors to get above average returns whilst helping small and mediumsized local companies to expand their export & production and sometimes this is critical for the local people to survive. The trades and companies that we support and finance cover only civilian and consumer goods. The list of countries is long and diversified. Ahead of all is Cuba, a country of international focus today, but also countries as diverse as Greece and Turkey, the Philippines and Algeria are exciting opportunities for private investors to finance and partake in very profitable trades where the normal finance channels are too slow or inefficient and therefore not available on a timely basis. After many years of very positiv experience with Cuban trade financing, we decided to set up TFF which focus on above investment rules and which is open to investors of any scale who do join our view and ideas. Different to other investment funds profits first will be used to meet the investments interest yield, and only after that the asset managment will start to earn for the job they do. Although TFF will distribute all profits every 6 months. Investors may reinvest their profits but there is no obligation to do so. Finally, it is noteworthy that although there is a focus on trades backed by bank securities, we sometimes may also accept other securities if determined by the management team to be sufficiently acceptable. We believe that our team, which includes among the very best Caribbean trade specialists, will satisfy investors expectations. It is our wish that our trade finance activities will contribute albeit in our modest way to make this world a little bit better, whilst at the same time bringing our investors above-average and sustained returns. Dr Reto Mebes President TFF

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7 The logic of trade finance To start we require a local demand of some specific goods which can not be sufficiently produced in the local market, eg automobile spare parts. The said demand is brought to a specialized trader and such trader contacts the selling company and a trade financing institute eg TFF in order to bridge-finance the trade until final payment by the buyer. The trader is expected to grant an irrevocable Letter of Credit, LC, to his bank to cover the repayment of money lent out. This happens automatically as soon as funds are received from the buyer. In case no LC is provided other securities have to be accepted before the loan agreement can be signed.

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9 Trade finance a good purpose investment with max securities Only critically needed consumer goods (eg medical equipement / medicine, spare parts, food additives etc) for civil use are in the scope of TFF. TFF therefore helps to avoid further shortage of strategic goods supplied to the civil population. In fact TFF acts, behind the scenes, as banker to traders for goods desperately needed in a specific market. Irrevocable letter of credits, LCs, issued by renown banks are by far the most common security. Alternatively enforcable promissory notes/bills of exchange can be accepted as well in some cases. Aside that TFF is only dealing with renown trade agents and focusing on strategic products assigned to buyers in key industries. TFF acts offshore with non local traders. Therefore trade deals are purely done between two foreign companies.

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11 A TYPICAL TRADE - with Cuba Foreign Trader: Trades are financed with foreign traders only. With some few countries TFF is more flexible but none national traders are preferred. Strategic importance: Trader asks TFF for financing a specific product to be imported to Cuba. The product in question must be determined by TFF s team to be of key strategic importance eg medication, milk powder, spare parts for the rice or sugar harvesters. Last in, first out: The financing is granted if and when the sale to the Cuban purchasing agency has been signed and an irrevocable payment instrument is in place. Disbursement is made only with the irrevocable instructions to the traders (foreign) bank, to repay TFF upon receipt of said funds from Cuba. This way, TFF s money is last in and first out. Amount to finance: 85% is the maximum share that TFF will agree to participate, though this is often as low as 70%. Yields: Interest is calculated by number of days. An extra 15 to 30 days on the agreed repayment date is taken into account. With payment from Cuba TFF receives principal plus part of the profits. Only after the trader gets the remaining share.

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13 TFF structure and decision process TFF structure is solid & simple: The fund administrator controls the shares, calculation of every fund transaction and manages the legal documentation. The Depotbank in Liechtenstein is the only and single bank where all in and out going payments are carried out. The auditor is auditing TFF every 6 months, giving a detailed fund report for 100% visibility. The Asset Management Company is fully linked to TFF, evaluates, signs and accompanies all trades from the start to completion.

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15 Benchmark datas TFF - Start of fund activities with 2,6 Mio in trades - Signed capital for 2015, 4 Mio - Calc ROI, 22% pa - Cost structure calc, 2,5% - Investors yield, 10% pa in 2015 INVEST OFFER Min Invest: Currency: Yield forecast: 8-10% pa Interest pay out: all 6 months Withdrawal: < ,- 1 month by end of month Lock up period: ,- to ,- 3 months by end of month > ,- 6 months by end of month none

16 TFF Trade Finance Fund Ltd. Trust House, 112 Bonadie Street, Kingstown Saint Vincent and the Grenadines West Indies TAM Trade Finance Asset Management Ltd. Trust House, 112 Bonadie Street, Kingstown Saint Vincent and the Grenadines West Indies Administrator Caiac International Ltd, Haus Atzig, Postfach 27. Industriestr. 2, FL-9487 Bendern, Liechtenstein Bank Bank Frick & Co AG, PO Box 43, FL-9496 Balzers, Liechtenstein Directors TFF Dr Reto Mebes, James Rogerson TFF contacts Auditors ABACOR Revisions AG Alte Steinhauserstr Cham, Switzerland