Alternatives Alternative mutual funds are SEC-registered funds offered to the public (institutional and retail investors) that use alternative investment strategies such as long-short, global macro, emerging markets, merger arbitrage and managed futures strategies. Diverge Diverge from offering only separate accounts and hedge funds to offering an alternative mutual fund to meet investor demand for absolute returns, diversification, greater liquidity and transparency. Lead Lead the next wave of anticipated growth in the asset management industry by launching a fund through Two Roads Shared Trust. Two Roads Shared Trust is designed for hedge fund managers and other alternative advisors to cost-effectively launch and manage their own independent mutual fund. Trust members engage in a partnership with fund administrator Gemini Fund Services, LLC, while also leveraging the financial services-focused legal counsel of Dechert LLP. By allowing Gemini to manage all aspects of a fund s corporate, board and regulatory compliance, advisors are empowered through the Trust with operational efficiencies, economies of scale, and shared expenses across all advisors. Advisors are also afforded the opportunity to take advantage of distribution support, including introductions to broker/dealers and assistance developing a marketing and distribution plan. GLOSSARY Long-short: A type of mutual fund that mimics some of the trading strategies typically employed by a hedge fund. Unlike most mutual funds, long/short funds use leverage, derivatives and short positions in an attempt to maximize total returns, regardless of market conditions. The amount of leverage used and the number of derivatives and short positions that long/short funds may contain are limited by law. These funds invest primarily in stocks. Global macro: A hedge fund strategy that bases its holdings - such as long and short positions in various equity, fixed income, currency, and futures markets - primarily on overall economic and political views of various countries. Merger arbitrage: A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless profit. A merger arbitrageur looks at the risk that the merger deal will not close on time, or at all. Because of this slight uncertainty, the target company s stock will typically sell at a discount to the price that the combined company will have when the merger is closed. This discrepancy is the arbitrageur s profit. Alternatives. Diverge. Lead. Two Roads Shared Trust 1
Two Roads SHARED TRUST DISTINCTION Access a new and rapidly growing distribution channel Harness the alternative-focused expertise of committed, savvy service providers Launch a fund cost-effectively with Gemini s comprehensive solutions Raise assets by increasing the number of potential investors, beyond the typical limits inherent in hedge Funds. Since the financial crisis of 2008, a growing number of retail investors have sought access to more sophisticated investment strategies that seek to manage downside risk. Pension fund, endowment, foundation, insurance and other institutional investors continue to increase their allocation to alternative investments in an attempt to meet the need for absolute returns driven by trends like aging populations and chronic pension underfunding. Brokerage firms are increasingly adding alternative mutual funds to their platforms, and in some cases, are asking hedge fund managers to launch alternative mutual funds for their platforms. The alternative mutual fund space is growing exponentially, but not all service providers are experienced in servicing alternative products like the service providers for the Trust. Gemini and Dechert are deeply committed to servicing the emerging alternative fund space and those advisors looking to move into this space. The combined administration expertise of Gemini and legal counsel savvy of Dechert are considered leaders amongst shared trusts designed for alternative mutual funds. Gemini brings your mutual fund to market with a broad range of comprehensive fund services including administration, accounting, transfer agent and shareholder services. Our affiliations with other industry-leading complimentary service providers allow us to manage and reduce fund launch and operating expenses, provide key reports, oversee regulatory filings and guide the board meeting process. We administer all of the back-office aspects of the fund, freeing the advisor to focus on their portfolio and relationship management. 2 Two Roads Shared Trust Alternatives. Diverge. Lead. Alternatives. Diverge. Lead. Two Roads Shared Trust 3
comprehensive pooled investment solutions such as mutual funds, hedge funds, and alternative investments including collective investment trusts. Gemini Fund Services, LLC provides comprehensive, pooled investment solutions as an engaged partner to independent advisors. As a full-service firm, Gemini provides the administration, accounting, and technology advisors need in order to launch and market successful products. With almost 30 years of experience creating and servicing funds, Gemini brings years of industry knowledge and insight to help advisors achieve the vision of their product and deliver the most extensive range of solutions to clients. Pooled Investment Solutions Gemini partners with investment companies to deliver Comprehensive Gemini brings your product to market with a broad range of comprehensive fund services. Our industry-leading pooled investment solutions include administration, accounting and transfer agent/shareholder services. We also specialize in shared mutual fund and variable insurance trusts, shared compliance services and EDGAR filing and printing services. Engaged Armed with the power of our industry knowledge, we partner with you to achieve the vision of your product. Gemini s expert staff, coupled with our cutting-edge technology, provides you with guidance and meaningful information. We enable you to focus on managing portfolios and raising assets. To learn more about our services and how our pooled investment solutions can help you, call us at 855-891-0092 or visit us online at www.geminifund.com. mutual funds and boards of directors/trustees. Our clients include some of the nation s largest fund complexes as well as small- and mid-size companies. Dechert has built this internationally recognized investment management practice with the following as its biggest assets: Definitive Advice As counsel to advisors, managers, funds, boards, independent directors and audit committees, we advise on international and domestic securities, tax and related laws and product planning. Our lawyers advise on the requirements of all relevant regulators. Dechert LLP serves Two Roads Shared Trust in the capacity of legal counsel. Dechert s financial services lawyers provide clients with innovative advice and in-depth industry knowledge wherever they do business. We work with clients to build and defend a strong record and reputation for business integrity and regulatory compliance because performance and reputation are the most important assets under management in the financial services industry. We counsel the full range of participants in the financial services industry, including funds, their advisors, fund boards, independent directors, broker-dealers, insurance companies, and banks. We currently represent approximately 50 mutual fund groups, which amounts to hundreds of separate Practical Guidance Our legal insights were developed and are informed by significant in-house, private practice and regulatory experience. This experience allows us to anticipate, identify and address challenges before they become problems. Powerful Advocacy Policymakers and major industry influencers call on us to help shape the debate regarding the oversight, structure, and operations of the financial services sector. As a result, we have uncommon insight into many of the most important developments affecting the industry. For more information regarding Dechert s alternative mutual fund practice, please contact Aisha Hunt at 415.262.4594 or visit www.dechert.com/financial_services. 4 Two Roads Shared Trust Alternatives. Diverge. Lead.
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