GLOBAL ADVISORS BITCOIN INVESTMENT PROGRAM

Transcription

1 GLOBAL ADVISORS BITCOIN INVESTMENT PROGRAM MONEY IS CHANGING. WE INVEST IN THAT OPPORTUNITY. MARCH 2017

2 TABLE OF CONTENTS KEY FACTS 03 BITCOIN IS CHANGING MONEY 09 THE MANAGER 03 OUR TEAM 10 OUR STRATEGY 03 TECH & RISK MANAGEMENT 15 OUR INVESTMENT OBJECTIVE 04 OUR OPERATIONS 16 GABI PERFORMANCE 04 STRUCTURE DIAGRAM 17 BITCOIN FACTS 05 SERVICE PROVIDERS 18 BITCOIN IN NUMBERS 06 INVESTMENT TERMS 19 INVESTING IN BLOCKCHAIN 07 CONTACT 20 BITCOIN AND OIL 08 DISCLAIMER

3 KEY FACTS THE MANAGER FUND MANAGER INCEPTION LIQUIDITY REGULATOR Global Advisors Bitoin Investment Fund PLC (GABI) Global Advisors (Jersey) Limited September 2014 Monthly or Daily by Agreement Jersey Finanial Servies Commission Global Advisors (Jersey) Limited has a 16 year history of managing lient funds as a regulated investment manager. The firm s prinipals started trading the ommodity markets over 30 years ago, initially in a disretionary apaity and more reently evolving to an advaned systemati approah. Our approah to Bitoin marries our insights from trading the emergent energy markets with our open-minded attitude and ommitment to tehnology OUR STRATEGY BITCOIN IS CHANGING MONEY AS WE KNOW IT. Bitoin is a truly global urreny, unorrelated with other markets. Our bitoin investment program provides a rare opportunity to gain unorrelated returns from an emerging asset lass. Global Advisors (Jersey) Limited has reated the first institutional grade Bitoin investment program ("GABI"), applying the highest professional management standards to reate a truly ground-breaking venture

4 OUR INVESTMENT OBJECTIVE The aim of GABI is to provide exposure to the prie movements of bitoin, applying the priniples and tools of professional investment management. We bring extensive expertise and researh into the drivers behind bitoin as the pre-eminent digital urreny -- investing long, performing ross-market arbitrage and trading -- in order to produe outstanding returns for our investors. GABI PERFORMANCE* *Performane of the Global Advisors Bitoin Investment Program, net of all fees and expenses. Past performane is not a guide to what may happen in the future. Please read in full the dislaimer at the end of this presentation. GABI manages the exposure to bitoin depending on market onditions, and outperforms its benhmark, the $Bitoin index, over the long term. GABI and bitoin perform in an unorrelated manner to onventional finanial assets, inluding ommodities. 04

5 BITCOIN FACTS Bitoin is a deentralized eletroni payment system and a virtual urreny based on open-soure tehnology. Sine its introdution, Bitoin s popularity as a digital urreny and as a peer-to-peer tehnology has grown. Its growth an be seen as part of the emergene of the sharing eonomy : phenomena suh as soial networking, musisharing, and platforms suh as Airbnb and Uber that have disrupted onventional and mature areas of business. Bitoin was launhed on the internet in January 2009 with the quote: "The Times 03/Jan/2009 Chanellor on brink of seond bailout for banks." The new independent digital urreny was launhed expliitly in response to the failings of the mainstream finanial system that were exposed by the finanial risis. Sine then, its potential as an alternative investment outside the traditional finanial system has been growing. It is now one of the few truly unorrelated investment opportunities available

6 BITCOIN IN NUMBERS USD Private VC apital invested Inreasing monthly # transations NUMBER OF BITCOINS IN CIRCULATION 16 Million MARKET CAPITALIZATION $10.2 Billion VENTURE CAPITAL FUNDING TO DATE $1.8 Billion ADOPTION RATE 2% Of merhants aept bitoin 25% Say they plan to in the next 2 years prie foreast GLOBAL ADVISORS $ BITCOIN PRICE FORECAST $2,500 by the end of 2017 GLOBAL ADVISORS $ BITCOIN PRICE FORECAST *As of Otober Soures: oindesk.om, blokhain.info, Goldman Sahs, Global Advisors (Jersey) Limited proprietary researh. $1,300 by the end of 2017 BITCOINS IN CIRCULATION Bitoin is not issued by a entral authority or managed by a entral 16 million bitoins in irulation bank. It is not subjet to poliy interventions and systemi risk, therefore it offers unorrelated exposure. With global equity markets more orrelated and over-rowded than ever, bitoin presents the opportunity to invest in a fast-growing asset lass. 06

7 INVESTING IN BLOCKCHAIN THE FUTURE OF MONEY Bitoin is also a proxy for blokhain investment, a groundbreaking internet tehnology. As a transparent, peer-to-peer deentralised ledger system seured by ryptography, blokhain emerged as an alternative after the 2008 finanial risis and subsequent bank bailouts. As revolutionary a tehnology as the internet itself, blokhain provides a protool that for the first time enables finanial transations without the need for entral verifiation. It is the future of value exhange and is being embraed by banks, finanial servies ompanies and finteh investors worldwide. Going forward it will represent an alternative to and disruption of the huge existing global banking system. C Blokhain was initially engineered as the protool underlying bitoin, and after 7 years in use, inluding the diffiult early years, bitoin is today the world's primary blokhain urreny. An inreasing number of large ompanies aept bitoin, for example: SBB Mirosoft Expedia Dell Overstok Virgin Galati AirBalti LOT Polish Airlines 07

8 WHAT DO BITCOIN AND OIL HAVE IN COMMON? At Global Advisors we first beame involved Bitoin through our interest in tehnology. After studying it for a while we were struk by the similarity we saw to the oil market in the early days of deregulation. This is a story we know well, having ahieved suess in ommodity trading in its early days. Looking at the oil market in 1987, we observed lots of volatility, lots of redit risk, illiquidity in the market, sant regulation and a generally rather haoti environment. The investment thesis was lear, despite the risks and strutural inadequaies. We went on reord in 1999 by stating that by 2010 we would need 50% more oil prodution to satisfy the depletion that was being seen in global reserves and the demand from China, and the only way that ould happen was for the oil prie to be higher. We reognised the global fores that would result in an oil and ommodity bull market. C Today bitoin is somewhat haoti, illiquid, volatile, misunderstood, under-regulated and embryoni but, as with oil, it has a very ompelling story. Our argument says that this type of ryptourreny (or Blokhain tehnology) is a muh more advaned and sophistiated way of transferring value and assets, and that global trends will drive prie appreiation and mainstream adoption. This present time is for Bitoin what 1987 was in the oil world. We believe there is a very long runway ahead perhaps 10 years. We believe the destination is one where this kind of tehnology is widely adopted. We believe that Bitoin will hange money as we know it, and we have developed a way to offer it as a professionally managed investment. 08

9 BITCOIN IS CHANGING MONEY Bitoin's aeptane has grown rapidly as investors have begun to reognize the value of an asset with limited issuane, insulated from the effets of any ountry's monetary poliy. Inreased aeptane and demand for the urreny is being driven by a number of fores: Its potential as a heaper, faster platform for global miropayments, : a $2 trillion market in 2015, projeted to grow +27% annually to Bitoin makes very small payments eonomi for the first time. This allows new business models to develop. The global remittane industry takes $40 billion annually in fees while international remittanes an take days. Bitoin allows individuals to send money far more quikly and heaply using eletroni devies. Only 62% of adults in the world have bank aounts: In developing ountries, many more own ell phones. Global equity markets are more orrelated than ever before. Institutional asset managers demand unorrelated assets to hedge returns. Europe alone has 35,000 investment funds managing EUR 6 trillion of assets. Its value as a safe haven from fiat urreny risk (poliy intervention, urreny manipulation, sovereign default) The advantages of the underlying tehnology over traditional entralized systems in a number of areas inluding banking, derivatives, insurane, rights management: $3 billion was invested in finteh in 2013, projeted to grow to $8 billion in

10 OUR TEAM C DANIEL MASTERS JEAN-MARIE MOGNETTI RUSSELL NEWTON SIMON HARMAN DWAYNE DREXLER CO-PRINCIPAL, CHIEF INVESTMENT OFFICER CO-PRINCIPAL, HEAD OF TRADING & OPERATIONS CO-PRINCIPAL, HEAD OF RESEARCH DIRECTOR, HEAD OF LEGAL & COMPLIANCE NON EXECUTIVE DIRECTOR 10

11 OUR TEAM DANIEL MASTERS CO-PRINCIPAL, CHIEF INVESTMENT OFFICER Mr. Masters is a diretor of Global Advisors (Jersey) Limited (GAJL) and a diretor and shareholder of GA holdings. He is registered with the National Futures Assoiation (NFA) as a Prinipal, an Assoiated Person and an NFA assoiate member of GAJL and is approved as a Key Person of GAJL by the Jersey Finanial Servies Commission (JFSC). Prior to this, Mr. Masters held a senior trading position in the Zug, Switzerland, offie of Phibro, where Mr. Masters ran a speulative forward, physial and futures book foused on the Atlanti basin region, inluding Brent, WTI, Dubai and several other physial grades. From February 1994 to February 1999 Mr. Masters was employed by Morgan Guaranty Trust Company ( MGT ) in New York. His last position there was Head of the Global Energy Trading business. In this apaity he direted trading strategies and was responsible for risk management for a group of some 30 individuals. Mr. Masters business mandate spanned all atively traded energy bases inluding physial markets, forward transations, swaps, options and exoti derivative produts. Mr. Masters was also responsible for direting researh into methods of profiting systematially from the prie, politial and fundamental information available in the energy markets. From July 1987 to January 1994, Mr. Masters was employed by the Phibro Energy Division of Salomon, In. ( Phibro ). Latterly, his responsibilities at Phibro inluded several trading and risk management funtions. He was involved in the establishment of the UK natural gas and eletriity markets, transating some of the first eletriity forward agreements and some newly strutured options-related physial natural gas deals. He also was an original and subsequently very ative partiipant in the Contrat for Differene ( CFD ) market in Europe, trading based on prie relationships between physial rude and orresponding futures. Mr. Masters first employment, from September 1985 to June 1987, was with Shell International Trading Company in London, UK, one of the largest physial oil trading ompanies in the world. During this period he had experiene as a physial oil trader in the European and Mediterranean region, an energy risk manager and a oordinator of a portfolio of physial North Sea rude oils. Mr. Masters earned a Bahelor of Siene (Honours) in Physis from Exeter University, UK in 1984, and followed that with a Masters in Management Siene and Operational Researh from Imperial College, London, UK in

12 OUR TEAM JEAN-MARIE MOGNETTI CO-PRINCIPAL, HEAD OF TRADING & OPERATIONS Mr Mognetti is a diretor and shareholder of GAJL and a diretor of GA holdings. Mr. Mognetti is registered with the NFA as a Prinipal, an Assoiated Person, and an NFA assoiated member of GAJL and is approved as a Key Person of GAJL by the JFSC. Mr Mognetti joined GAJL in January 2011 as a Quantitative Trader. From November 2009 to Deember 2011 Mr. Mognetti worked at Hermes Commodities Fund Managers where he was employed as a ommodities quantitative strategist. At Hermes Mr Mognetti delivered a number of quantitative projets designed to enhane the firm s trading ativities, inluding quantitative analysis and modeling. Throughout his aademi areer Mr Mognetti also held a number of short-term positions inluding Exotis Trader Assistant at Lehman Brothers in London (2008); Finanial Analyst for SN Brussels Airlines in Paris (2007) and Sales Analyst for Sony Computer Entertainment Europe in Paris (2005). Mr Mognetti holds a MS in Mathematial Trading and Finane from the Sir John Cass Business Shool, London (2009), an MS in Bank-Finane-Insurane (2008) and a Degree (BS) in Eonomis & English (2007) from the University Paris X, Frane. Mr Mognetti is fluent in Frenh, English and Spanish

13 OUR TEAM RUSSELL NEWTON CO-PRINCIPAL, HEAD OF RESEARCH Mr. Newton is a diretor of GAJL and a diretor and shareholder of GA holdings. He is registered with the NFA as a Prinipal, an Assoiated Person and an NFA assoiate member of GAJL with the NFA and is approved as a Key Person of GAJL by the JFSC. From July 1994 to February 1999 Mr. Newton was employed by MGT in London where he held several positions inluding his last position as Global Commodities Strategist. This post overed base and preious metals as well as energy, and inluded development and exeution of new derivative trade strutures, market analysis (eonomi, fundamental, statistial and tehnial), market modelling and tehnial trading system design. Prior to this, Mr. Newton was Head of European Energy Trading at MGT, while also trading a forward, futures, physial and swaps speulative book, fousing on Brent and Dubai rude oils. From 1987 to 1994 Mr. Newton traded North Sea and Middle Eastern rude oil markets for Shell International Trading Company (from September 1986 to November 1992), Phibro (from Deember1992 to January 1994) and finally Rheinoel Limited (from January 1994 to July 1994), all in London. In the late 1980s, while Head of Futures and Forwards trading at Shell International Trading Company, he was among those responsible for developing priing models of the Brent CFD market. Mr. Newton has extensive experiene in omputer systems analysis, design and programming. He is skilled in several omputer languages. Mr. Newton reeived a Bahelor of Arts (Honours) in Natural Sienes (Experimental Psyhology) from Cambridge University, UK, in Mr Newton is also a member of the Chartered Institute of Seurities & Investments. 13

14 OUR TEAM SIMON HARMAN DIRECTOR, HEAD OF LEGAL & COMPLIANCE Mr Harman joined Global Advisors in 2015 and is urrently the Head of the Jersey Offie. His areer was initially military and legal, before moving on to gain extensive risk, ompliane and orporate governane experiene globally at board level within independently owned, private equity baked, and bank owned ompanies. Prior to joining Global Advisors his most reent roles have involved overseeing multi jurisditional Group Risk, Compliane and Legal funtions with responsibility for Compliane and Governane standards maintained within various firms. Mr Harman's qualifiations inlude BA(Hons), PgDL, Chartered MCSI, DipPFS, MIoD and Cert CII (MP). He is also a qualified flying Instrutor and Commerial Pilot. DWAYNE DREXLER NON EXECUTIVE DIRECTOR Mr. Drexler joined Global Advisors in Prior to joining Global Advisors, Mr. Drexler was employed by MGT in New York, from May 1998 to May He was a part of the Commodity Operations group and was assigned to a middle offie role for the global energy derivatives trading desk. From July 1995 to May 1998, Mr. Drexler worked for J.P. Morgan & Co. in the internal audit department. His projets foused mainly on the risk management and operational ontrols in the trading businesses of J.P. Morgan & Co. He was also trained in tehnology auditing and used those skills to review several major trading and risk management systems within the firm. Mr. Drexler graduated with a triple major from Georgetown University in 1995, with a Bahelor of Siene/Bahelor of Arts in Aounting, Finane, and International Business

15 OUR TECHNOLOGY A CUTTING EDGE APPROACH RISK MANAGEMENT In its 15 year history, Global Advisors (Jersey) Limited has fully reognised the importane of tehnologies in order to ahieve improved trading effiieny whilst at the same time minimising operational risk. Over the last deade, we have invested in first rate talent to support the development of a robust infrastruture in order to ensure the delivery of seamless performane throughout the trading yle. Our evolution into a leading manager in our spae is the result of an open-minded attitude and ommitment to tehnologies and their effetive appliation within the firm. We have pioneered the automation of trading and reporting systems having in mind our lients interests and our fiduiary duties. To minimise human errors, orders are dispathed eletronially from our trading software with a onstant fous on best exeution. Trades are reoniled automatially in our order management system and at the administrator level. Bitoin is a frontier market, many aspets of it remain immature and ill-understood, and regulation is still evolving. Buying bitoins independently ould expose you to a number of risks, whih inlude: Obsolesene risk Prie risk and volatility Liquidity risk Risk of adverse tehnologial developments Risk of loss, theft or fraud Counterparty risk Regulatory and tax risk GABI is the first investment vehile to manage these risks systematially by applying the priniples of professional investment management. This hands-on tehnology oriented approah has reated the bakbone for the launh of the first fully regulated Bitoin investment vehile in the world. 15

16 OUR OPERATIONS A BESPOKE SYSTEM SHAPED THROUGH 15 YEARS OF TRADING HISTORY Global Advisors (Jersey) Limited brings to Bitoin the extended experiene of its team aross different asset lasses and market onditions. We are the first to apply professional investment management standards to this new market. Being the first in the market has given us a ompetitive advantage. We know how to evaluate and test the strength of our ounterparties despite the absene of redit rating or ISDA. We ondut random due diligene on our ative ounterparties to ensure they are maintaining the high standards whih we demand as part of our routine operations. We are onstantly monitoring fators like market ativity, news flow, new market entrants, regulatory developments, and tehnial developments on the Bitoin network. THE MANAGER MONITORS: Market liquidity Exhange ativity Performane of appointed servie providers and trading ounterparties Emergene of new produts, servie providers and ounterparties Global regulatory developments Tehnial developments with Bitoin network News flow Flows in/out of Bitoin Global maro and ommodity market risks Pries of ompeting assets (gold, oil, opper, FX) THE STRATEGY WILL: Only soure Bitoins from regulated soures Ensure rigorous seletion standards and regular due diligene on trading ounterparties and servie providers Appoint multiple servie providers wherever possible Provide multiple layers of insurane IN ADDITION: Partiipate in related ommodity and urreny markets to mitigate risk and enhane return

17 STRUCTURE DIAGRAM 17

18 SERVICE PROVIDERS GLOBAL ADVISORS (JERSEY) LIMITED MOORE MANAGEMENT LIMITED KPMG CHANNEL ISLANDS LIMITED INVESTMENT MANAGER ADMINISTRATOR AUDITOR GEMINI ITBIT CAREY OLSEN MJ HUDSON JERSEY FINANCIAL SERVICES COMMISSION CUSTODIAN LEGAL REGULATOR 18

19 INVESTMENT TERMS MANAGEMENT FEE 1% PERFORMANCE FEE MINIMUM INVESTMENT SUBSCRIPTION/REDEMPTION CALENDAR 20% ABOVE 15% ANNUAL HURDLE 70K OR CURRENCY EQUIVALENT MONTHLY OR DAILY BY AGREEMENT

20 CONTACT ADDRESS F3, Grenville Street, St Hélier, Jersey, JE2 4UF, Channel Islands TEL +44 (0) WEB

21 GLOBAL ADVISORS (JERSEY) LIMITED IMPORTANT INFORMATION The following important information relates to the use of Global Advisors (Jersey) Limited ( GAJL ) website. Please read it and aknowledge your aeptane before aessing this website. GAJL is authorized and regulated by the Jersey Finanial Servies Commission in the ondut of investment business and fund servies business. GAJL is registered as a ommodity-trading advisor, operating pursuant to a CFTC regulation artile 4.7, with the Commodities Futures Trading Commission and a member of the National Futures Assoiation. (No ). GAJL is a registered ompany (No ) with its trading offie at F3 Grenville Street, St Hélier, Jersey, JE2 4UF, Channel Islands. This website is direted only at persons who: investment arries the risk of potential loss of apital and investors may not get bak the value of their original investment. Information on this website may inlude data and opinions derived from third parties soures, GAJL does not aept liability for the auray or ompleteness of any suh information or opinions whih an be subjet to hange without notie. Furthermore, the information provided does not onstitute an offer to buy or to sell shares, nor does it onstitute investment, legal or tax advie. Details relating to the investment inluding the risk dislosures an be found in the Offering Doument. This brief statement annot dislose all the risks and other signifiant aspets of the various market traded by GAJL. a) Are expert investors who fall within the definition of Expert Investors published by the Jersey Finanial Servies Commission, or b) Are otherwise permitted to view this website in ompliane with the governing laws of their respetive jurisdition. It is not direted at or intended for retail lients. Any person onsidering an investment into any of GAJL s produts must ensure that they are suitably qualified, experiened and knowledgeable on suh investments onsidering jurisditional rules, regulations and restritions, tax impliations, residene or domiile and their finanial irumstanes. Past performane is not a guide to what may happen in the future. Prospetive investors should be aware that the value of their investments ould fall as well as rise. Any Pursuant to an exemption from the CFTC in onnetion with aounts of qualified eligible persons, the ontents of this website do not require to be, and has not been, filed with the CFTC. The CFTC has not passed upon the merits of partiipating in any of GAJL's investment programs or the adequay of the ontents of this website. Taking into aount the information herein, if you are in any doubt as to whether this investment is suitable for you and before you proeed to aessing the website, you should onsult your finanial advisor. By agreeing to aess this website you aept the statement of dislosure above and undertake to provide true and aurate information upon request. 21