Montreux Care Home Fund PROOF

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2 The last few years have rewritten the rule book on property market volatility. We have seen the steepest decline, the sharpest recovery, and still future uncertainty exists. Whilst some investors may be licking their wounds or bracing themselves for yet further warning signs, one sector has not been shy of the spotlight. It has bucked the trend and is attracting investors from around the globe. With its own IPD Index, Healthcare has undoubtedly established itself as an asset class in its own right. With a political will to upgrade, economic and structural changes ahead, and value for money equation top of the agenda, opportunities in the sector have never been better for investors.

3 Capitalising on Rising UK Demographics The UK population demographics make Healthcare a growth property sector. The past 30 years have seen a shift in the UK demographic profile towards an increasingly elderly population, parallel to similar trends across Europe. The total UK population grew by 8.82% from million in 1978 to million in UK Elderly Population Projections Population (millions) Age 80+ Over In September 2009 it was reported that the number of people living to 100 years old in the UK reached a record high. This age group has seen the fastest population increase. In terms of the UK demographic profile as a whole; the proportion below the age of 16 fell from 21% to 19% over the 25 year period from 1983 to Paradoxically, the growth in the number of old people (aged 85 and over) was dramatic with an increase from 0.6 million to 1.3 million in the same period. This upward trend is anticipated to continue into the future and by 2033 the number of people aged 85 and over is projected to more than double again to 3.3 million (representing 5% of the population) Over the last 30 years the average life expectancy for men has risen from 69 years to 75, while for women it has risen from 76 to 80. Within 20 years, it s expected that one in four UK adults will be a pensioner. This trend for an older population will continue during the first half of this century at least. Currently, our ageing population is a hot topic in terms of what the effects will be on care services and healthcare as a whole. Map of Europe showing the percentage of the population over 65 in 2010 for each country. Source: CIA World Factbook >20% 18-20% 16-18% 14-16% 12-14% <12% N/A

4 Supply / Demand Imbalance and High Occupancy In April 2008, 0.8% of the year old population were living in a care home or long stay hospital. This figure rises to 16.3% for people over aged 85 and over. Based on Government Actuary projections, the number of older or physically disabled people living in one sort of residential setting or another in the UK will increase to 1,250,000 in 2056 compared to 419,000 in It is anticipated however that private demand will track demographic change more closely. Indeed between 2008 and 2010 demand for independent sector homes is estimated to have increased by 1.3%. Base case projections of the number of recipients of residential and home-based services, people aged 65 and over, % increase Nursing Home Numbers 135, , , % Residential Home Numbers 240, , , % Total Numbers in Institutions (including long-stay hospital care) 400, , , %

5 Between 2008 and 2010 demand for independent sector homes is estimated to have increased by 1.3%.

6 Private Sector Opportunities Average occupancy rates in the UK Care Homes currently stand at 90%. There are small regional variations, with occupancy rates in the South East being above the national average. Future Supply of Care Home Places Source: Laing and Buisson Private sector growth In April 2009 the private sector accounted for 76% of all long-stay bed capacity for elderly and physically disabled people, making this a substantial corporate sector in the UK. 000's Distribution of care homes by ownership type Source: Care Quality Commission Local Authority 6% Voluntary 16% NHS 1% Other 1% Private 76% Total Independent Public Today there is continuing demand for bed spaces in purpose built homes that meet or exceed the National Minimum Standards. Indeed the majority of new build homes operated by private companies now exceed the Minimum Standards as operators seek to future proof their accommodation. Social service budget cuts and associated fees will put pressure on operators, and it is anticipated there will be a shake-up in this particular arena, which will provide opportunities for new investors in the market. It is anticipated that future supply of bed spaces provided by independent homes will continue to increase, whilst demand fulfilled by the public sector will continue to decline. The private care market has continued to perform well with most investment properties having the following attributes; Long leases (typically years) No tenant break clauses Excellent tenant covenant strength Rent reimbursement opportunities from Primary Care Trusts.

7 Today there is continuing demand for bed spaces in purpose built homes.

8 A Unique Asset Class As a specialist and uncorrelated asset class, Care Homes proved resilient during the onset of the credit crunch. This is due to long term secured income, guaranteed fee increases on the back of fixed uplifts along with strong demand and high occupancy levels. The majority of care home investments are sold with fixed uplifts which has attracted investors due to built-in rental growth. As a direct result of the rise in inflation prior to the recession, operators that traditionally agreed to fixed fee increases of between 2.5% and 3% per annum have come under pressure from investors to provide more attractive growth. This has led to fixed uplifts linked to RPI that include a collar and cap of between 2.5% and 5% being introduced Quarterly Average Care Home Yield Transactions Source: King Sturge Care home transactions IPD All property Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Benchmark In recent years IPD has provided some measure of the performance of Care Sector investments against other UK property sectors. The IPD Healthcare Index was launched in 2009 and now covers the performance of 571 healthcare properties across the whole of the UK. The index provides a benchmark for investors into Healthcare property and demonstrates increasing appetite in the market for Healthcare investments. Recent results show the sector has outperformed the wider property market in each of the last three years. Signs of resilience to the downturn Source: IPD

9 Fund Details The Montreux Care Home Fund provides investors with access to the residential care sector in the UK. The Fund seeks to capitalise on favourable demographic trends in the UK and to provide investors with a strong base from which to achieve steady long-term capital growth. The Fund will target capital growth through careful acquisition, development and management of suitable properties, and will reinvest surplus rental income. Investment Strategy To purchase existing purpose-built, high end residential care homes in the UK with high occupancy levels, and long waiting lists, producing consistently high net profit margins. Acquire the bricks and mortar at a discount to market value Maximum gearing of 50% of Gross Asset Value ( GAV ) Acquire businesses at a discount to standard industry EBITDAR ratio s to improve investor yields and increase capital appreciation. Differentiation The fund acquires existing businesses which are well established and have been running successfully for a number of years. All of these businesses will have long standing relationships with local hospitals and the community as a whole. This unique concept allows the fund to acquire businesses with stable, predictable fixed and variable cost s with constant income streams, passing constant and predictably high yields to the investor uncorrelated to traditional market conditions.

10 Fund Advisors Montreux Capital Management Limited Montreux Capital Management is a specialist Swiss investment firm with a global institutional and private client base. Established in 2010, we aim to provide a platform of uncorrelated and regulated funds, with a strong emphasis on discipline in the investment process. It is out aim to offer our investors an investment management environment that consistently generates superior returns by limiting risk and volatility with little or no correlation to traditional markets. Jones Lang LaSalle Jones Lang LaSalle is one of the leading consultancies in healthcare and the senior living sector. They have one of the largest specialist teams in the UK. They are dedicated to providing a full range of consultancy and transactional services to a wide range of clients both in the UK and Europe. Their advisory services include estate planning, valuations, investment advice, research and lease consultancy. Jones Lang LaSalle is authorised and regulated by the Financial Services Authority and is regulated by the Royal Institution of Chartered Surveyors. Fund Partners Key Facts Domicile Promoter Custodian Administrator Manager Investment Advisor Auditors Legal Advisors Luxembourg Montreux Capital Management KBL European Private Bankers S.A European Fund Administration S.A Montreux Capital Management Montreux Capital Management and Jones Lang LaSalle Deloitte S.A Elvinger, Hoss & Prussen Launch date 1 July 2011 Minimum Subscription 10,000, $15,000, 15,000, CHF15,000 Available via PPB s, Wrap Platforms, SIPPs and direct investment 100 % allocation Exit penalties Year 1 5% Year 2 4% Year 3 3% Year 4 2% Year 5 1% Dealing last working day of each month ISIN (GBP) LU (USD) LU (EUR) LU (CHF) LU

11 Montreux Capital Management, Bahnhofstrasse 52, 8001 Zurich, Switzerland T +41 (0) F +41 (0) E info@montreuxcm.com W