Alternative Fixed Income Opportunities...2.1 Prestige Alternative Finance Alternative Fixed Income...

2.1

Prestige Alternative Finance

Alternative Fixed Income Opportunities

Presentation

Institutional Investor Overview

Q1 / 2018

NOTE: INFORMATION CONTAINED WITHIN THIS DOCUMENT IS FOR INVESTMENT PROFESSIONALS FOR INFORMATION PURPOSES ONLY

PRESTIGE ASSET MANAGEMENT LIMITED IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FCA)

PRESTIGE ASSET MANAGEMENT LIMITED IS A MEMBER OF THE ALTERNATIVE INVESTMENT MANAGEMENT ASSOCIATION (AIMA)

PRESTIGE ASSET MANAGEMENT LIMITED IS A MEMBER OF THE CHARTERED INSTITUTE FOR SECURITIES AND INVESTMENT (CISI)

PRESTIGE CAPITAL MANAGEMENT LIMITED IS AUTHORISED AND REGULATED BY THE MALTA FINANCIAL SERVICES AUTHORITY (MFSA)

PRESTIGE CAPITAL MANAGEMENT LIMITED IS A MEMBER OF THE MALTA FUNDS INDUSTRY ASSOCIATION (MFIA)

PRESTIGE FUND MANAGEMENT LIMITED IS REGISTERED WITH THE CAYMAN ISLAND MONETARY AUTHORITY (CIMA)

SELECTED FUNDS ARE REGISTERED WITH THE MONETARY AUTHORITY OF SINGAPORE (MAS)

SELECTED FUNDS ARE REGISTERED WITH THE MALTA FINANCIAL SERVICES AUTHORITY (MFSA)

SELECTED FUNDS ARE REGISTERED WITH THE COMMISSION DE SURVEILLANCE DU SECTEUR FINANCIER (CSSF)

2

Contacting us

Authorised and regulated by the Financial Conduct Authority (FCA)

Member of the Alternative Investment Management Association (AIMA)

Member of the Chartered Institute for Securities and Investment (CISI)

Company Registration Number: 6 2 7 7 5 3 0

VAT Registration Number: 9 2 8 7 8 6 2 6 8

FCA Registration Number: 4 8 6 2 3 9

INSTITUTIONAL MARKETING & ADMINISTRATION SERVICES

Prestige Asset Management Limited

Marketing Office: 33 St. James’s Square, London, SW1Y 4JS, United Kingdom

Registered Office: 36 Spital Square, London, E1 6DY, United Kingdom

T: +44 (0) 203 178 4055

F: +44 (0) 203 004 9690

E: (Admin) [email protected]

E: (Marketing) [email protected]

www.prestigeassetmanagement.co.uk

www.prestigefunds.com

3

Contents

Page

Mission ………………………………………………………………...……………. 6

Executive Summary ……………………………………………………………….. 7

Fund Characteristics ………..…..…………………………………………………. 9

High Cost Lending is less attractive to Banks ………………………………….. 10

Finance Areas ……………………………………………………………………… 11

Assets Financed …………………………………………………………………… 13

Lending Origination ……………………………………………………………….. 14

Lending Client Base ………………………………………………………………. 15

Lending Evaluation - Approval Process ………………………….……………… 17

Lending Criteria ……………………………………………………………………. 19

Lending Security, Collateral & Control …………………………………………… 20

Lending Agreements ………………………………………………………………. 21

Risk Control ………………………………………………………………………… 22

Risk Control - Ongoing Monitoring ………………………………………………. 23

Risk Control - Governance & Oversight ……………………………………….… 24

Risk Control - Liquidity ………………………………………………………….…. 26

Risk Control - Portfolio Asset Allocation …………………………………….…… 27

Portfolio - Snapshot …………………………………………………………….….. 28

Conclusion …………………………………………………………………….……. 30

4

Contents

Page

Market Correlations ………………………..……………………………….….… 31

Risk Vs Reward.…………………………………………………………….……. 32

Summary of Terms ……………………………………………………….……… 33

Operational Flow …………………………………………………………....…… 34

APPENDIX 1: Prestige

Building on Success ………………………………..……………………..…….. 35

Clients ……………………………………………………………………….……. 36

Regulatory Institutions & Industry Associations ………….…………….…….. 37

Prestige Companies ……………………………………………………….……. 38

Prestige Asset Management ………………………………………………...…. 39

Prestige Capital Management ……………………………………..……….….. 40

Prestige Fund Management ……………….……………………………….…... 41

People ……………………………………………………………………….……. 42

APPENDIX 2: UK / SME Lending Overview ……..…..……………….……… 47

APPENDIX 3: Industry Overview ……………… ……………………………... 58

APPENDIX 4: Market Overview …………………………………...………….. 59

APPENDIX 5: Additional Background Research …………………………….. 60

International Fund Reference Codes …………………………………….......... 61

Legal Disclaimer & Risk Warning ………………………………………….…… 62

International Institutional Distribution ……………………………………….…. 63

5

Mission

To provide investors with a genuine

alternative inflation hedge in an increasingly

uncertain and volatile world.

6

▪ Alternative investment strategy with Capital Appreciation and Income options

▪ Access to the profitable institutional asset-based direct lending

▪ Established: diversified investment portfolio consisting of short and medium term,

high yielding loan and leasing assets

▪ Established: professional fund management team

▪ Established: professional specialist finance arranging team

▪ Non-correlated to traditional asset classes such as equities and bonds

▪ Consistent absolute returns in most market conditions

▪ Investment strategy ‘capacity’ remains limited

Niche Asset Class > which we believe is essential as part of a diversified

investment portfolio in a low growth, low interest rate environment.

NOTE: Past performance is not a guide to future performance and investments can go down as well as up.

7


Executive Summary

▪ The Fund targets annual net returns of 6-7% with annual volatility of below 1%

▪ The Fund inception is 01/2009 and its strategy is Asset Based - Direct Lending in the UK with a focus on farming, agricultural and food related industries

▪ The Fund has approximately USD 675mn assets under management and is used by approximately 300 investor groups globally

▪ Prestige Alternative Finance (‘Fund’) is managed by Prestige Fund Management and affiliated companies (“Prestige”)

▪ Prestige was founded in 2007 and specialises in alternative investments

▪ Prestige team consists of over 100 people in regulated operations in the UK and in several international financial centres

▪ Prestige has raised approximately USD 1.5bn since 2008

8

NOTE: As at 01/2018. All figures are approximate and subject to change without notice.

SOURCE: Prestige Fund Management Limited


Executive Summary

Investment Objectives

▪ Steady, long term capital growth of 6-7% p.a.

▪ Low volatility (< 1% p.a.)

▪ Uncorrelated returns to traditional and alternative investments

▪ Commensurate liquidity to investors

Through selected investments in:

▪ Loans (finance agreements, lease and hire purchase contracts) which are secured against assets

▪ Strong diversification in terms of counterparties, sectors and types of assets financed

▪ A focus on agricultural, horticultural, rural small business related sectors many of which have historically operated with lower defaults

Since its launch in 2009 the Fund has not experienced a negative year

9

NOTE: As at 01/2018. Past performance is not a guide to future performance and investments can go down as well as up.



Characteristics

Asset Based - Direct Lending

High cost lending is less attractive to Banks

▪ Inefficient market: Each loan approval typically involves a personal site visit to the client

▪ Specialist market: Non-Commoditised areas of lending

▪ Relationship driven market:

- High barriers to entry - not an attractive growth market for large new players

- Few remaining large / active lending players in the market

- Frequent - repeat customer business activity / referrals and follow on business

▪ Relatively small specialist leading markets - approximately GBP 3bn / USD 4bn p.a.

(of which approximately USD 1.5bn is controlled by manufacturer finance)

▪ Much of the lending activity is focused around the strategic financing of one or several assets

which generates a specific productivity gain, or specific cost saving

▪ Loan customers are less sensitive to rates - more focused on long term client service and the

“monthly cost” of servicing the loan

▪ Increasing security / collateral base - personal guarantees / asset debentures encourages

repeat business


SOURCE: Prestige Fund Management Limited10

The Fund operates a diversified investment portfolio of asset based loans and leases

which are secured typically against a diverse range of assets. The Fund focuses on two

core areas of lending activity:

Asset Finance (‘specialist equipment, machinery, vehicles’)

Loan ‘collateral’ is typically tied to specialist machinery,

equipment, vehicles.

Project Finance (‘waste to heat’, ‘waste to energy’, ‘on-farm energy’)

Loan ‘collateral’ is typically tied to land, buildings and/or

inventory, accounts receivable, personal guarantees

and debentures over bank accounts.

11NOTE: As at 01/2018. All figures are approximate and subject to change without notice.


Investment Process

Finance Areas

12

Investment Process

Finance Areas

NOTE: Examples are subject to change or addition without notice.

SOURCE: Prestige Fund Management LimitedNOTE: Examples are subject to change or addition without notice.

SOURCE: Prestige Fund Management Limited / * Office of National Statistics (ONS)

There are approximately 5.4mn* small companies in the UK. We help rural small

business ‘finance in’ productivity and ‘finance out’ fixed costs

Approximate values of typical individual assets financed / leased:

Project / Finance

▪ Biogas - AD Plant / installation GBP 2-20mn / USD 2.6-26mn

▪ Large Solar Panel / installation GBP 1-2mn / USD 1.3-2.6mn

▪ Wind Turbine / installation GBP 0.5-1mn / USD 0.65-1.3mn

Assets / Finance

▪ Seed Driller GBP 10k / USD 13.2k

▪ Crop Sprayer GBP 15k / USD 19.8k

▪ Trailer GBP 20k / USD 26.3k

▪ Mower GBP 30-40k / USD 40-53k

▪ 4 Wheel Drive GBP 30-70k / USD 40-92k

▪ Baler GBP 40-60k / USD 53-79k

▪ Small Solar Panel / installation GBP 40-60k / USD 53-79k

▪ Tractor GBP 50-100k / USD 66-132k

▪ Small Wind Turbine / installation GBP 50-60k / USD 66-79k

▪ Telehandler / Lifters GBP 50k / USD 66k

▪ Excavators & Bulldozers GBP 80-100k / USD 105-132k

▪ Loading Shovels GBP 100k / USD 132k

▪ Biomass Boiler GBP 100k / USD 132k

▪ Potato Harvester GBP 100-200k / USD 132-263k

▪ Combine Harvester GBP 200-300k / USD 263-395k

▪ Large Wind Turbine GBP 250k / USD 330k

▪ Livestock processing machinery GBP 250-500k / USD 330-658k

▪ Pasturisation / Sterilisation machinery GBP 400k / USD 527k

13

Investment Process

Assets Financed

NOTE: As at 01/2018. All figures are approximate and subject to change without notice. Assets and Projects listed above are examples only and not exclusive.


14

Investment Process

Lending Origination



Since inception of the Fund, its main counterparty (Finance Arranger) has expanded both in

terms of the number, size and complexity of transactions it conducts and also the number

of staff and retained consultant expertise it operates with to source and administer them.

Since 2001 our Finance Arranger has been responsible for arranging over 15,000

loans to more than 6,000 borrowers - totalling approximately GBP 1bn / USD 1.3bn

The lending ‘origination’ process is labour-intensive and relationship-driven. The Fund

contracts with a specialist UK based Finance Arranger established in 2001 with an

experienced direct lending team of approximately 40 people.

The customer base is often agricultural / farming / food production with a strong focus on

providing finance to modernise small businesses and make efficiency / productivity gains

▪ Sources of new customer deal flow originate from an increasingly wide range including

land owners:- with an average of 500 acres

- owning a house worth in excess of GBP 500,000 / USD 650,000

- a typical Net Asset Value in the order of GBP 2mn / USD 2.5mn

▪ Approximately two thirds of the customers are land / property owners running family

businesses and small limited companies. The balance of the customer base is often

specialist contractors to the UK agricultural, farming and food industry sectors

▪ May have a relatively conservative balance sheet

▪ May have an operating overdraft facility with a bank

▪ May own a number of agricultural machines

▪ May have a low debt approach to financing

▪ May operate several businesses and are looking for ways to diversify their income and

make productivity gains

15

Investment Process

Lending Client Base

NOTE: As at 01/2018. All figures, terms and conditions are approximate and subject to change without notice.


Over 1,000 bank branches closed between 2015 and 2016. Access to

credit and the speed of new loan approvals have not recovered from 2007

ARTICLE OF INTEREST: http://www.bbc.com/news/business-38302564

16NOTE: As at 01/2018. All figures are approximate and subject to change without notice.


Investment Process

Lending Client Base

17

Investment Process

Lending Evaluation - Approval Process



Investment Manager - Investment Committee

Lending Criteria / Acceptable - Risk - Assets - Areas - Customers

Finance Arranger - Credit Committee

Individual Loan Origination / Loan Customer Approval

Investment Manager - Investment Committee

Individual Loan Approval

A multi level loan filtering, profiling and evaluation process

18

Investment Process

Lending Evaluation - Approval Process


SOURCE: Prestige Fund Management Limited / * Office of National Statistics (ONS)

Systems and Technology used

▪ Sentinel - loan management system

▪ Equifax and Experian - credit reference data

▪ Credit Safe - credit reference data

▪ Invu document management

▪ HPI - vehicle reference data

▪ Microsoft Office 360 / Cloud

▪ Smart Sheets

▪ Salesforce

▪ UK government ‘Land Registry’ - data alerts

▪ UK government ‘Companies House’ - data alerts

▪ Google - data alerts

▪ Client interest and capital payments are made by Bank ‘Direct Debit’ or ‘Standing Order’

With approximately 5.4 million* small businesses in the UK, there is an increasing

amount of data available for use in our screening / origination processes

Quantitative

▪ Minimum of 3 years audited and published

accounts

▪ Verified credit references

▪ Partner or Director personal credit searches

through ‘Experian’ credit data vendor group

▪ Company credit searches through ‘Experian’

and or ‘Creditsafe’ credit data vendor groups

▪ Experian rating above 60/100 for businesses

and above 600/1200 for individuals

▪ Cash deposits of 10-30% or a trade-in

machine equivalent

Qualitative

▪ Loan - size

▪ Loan - duration

▪ Loan type - (invoice, cashflow, secured loan,

asset finance etc.)

▪ Loan to value (% deposit)

▪ Customer - credit rating

▪ Customer - type (corporate)

▪ Customer - sector

▪ Customer - size

▪ Customer - payment history

▪ Customer - location

▪ Customer - relationship (existing / new?)

▪ Personal guarantee - secured on other assets

(land, property, buildings, shares etc.)

19

Investment Process

Lending Criteria



Asset Finance

▪ Cash deposit

▪ Ownership of the asset until maturity

▪ Personal Guarantee (on larger transactions)

Project Finance

▪ Personal Guarantees from company owners /

directors (on larger transactions)

▪ Debenture over company bank account

▪ Partial ownership of the asset until loan maturity

(in some cases)

▪ UK / Land

▪ UK / Buildings

▪ Government ‘feed in tariffs’ (FiTs)

▪ Operational ‘step in rights’

▪ Company share pledge

▪ Other ‘un-encumbered’ assets

20

Investment Process

Lending Security, Collateral & Control



Increasing levels of borrower security often come in the form of:

Investment Process

Lending Agreements

▪ Secured Loans

▪ Hire Purchase (Regulated + Unregulated)

▪ Lease Purchase (Regulated + Unregulated)

▪ Finance Lease (Regulated + Unregulated)

▪ Operating Lease

Unregulated Agreements are entered into with corporate bodies and partnerships with 4 or more partners and other considerations, such as value of loan etc.

Regulated Agreements are entered into with customers who are “unincorporated bodies” (individuals, sole trader or partnerships (with less than 4 partners))

Project Finance may include up to 20 individual ‘bespoke’ finance agreements - helping to safeguard and regulate different parts of the funding activity and supporting collateral as well as control of the rights and behaviour of the underlying borrower



▪ Strong Origination Process - Finance Arranger Credit Committee

- Fund Investment Committee

▪ Diversified investment loan portfolio - approximately 400 loan customers

- approximately 600 loans

▪ Lending structure often requires financed assets to remain in ownership of the lender

until the final payment

▪ Strong loan management and monitoring process

▪ Passive loan monitoring - desktop analysis / alerts

▪ Active loan monitoring - on site physical meetings

▪ Borrowers may pledge additional personal assets such as land and buildings

▪ Debentures may be taken over borrower bank accounts and other assets

▪ Cash deposits are often taken from borrowers

22

Investment Process

Risk Control



Investment Process

Risk Control - Ongoing Monitoring



Passive Monitoring

Finance Arranger - Desktop Analysis - All loan customers

Investment Manager - Top 50 loan customers

Active Monitoring

Finance Arranger - Site / Field Visits - multiple times a year - Top 25 loan customers

Investment Manager - Top 10 loan customers

Real Time Monitoring

Finance Arranger - Desktop Analysis - Top 25 loan waste to energy / on-farm energy

Investment Manager - Desktop Analysis - Review of dashboard hub

A multi level loan / customer on-going monitoring process

▪ Borrower balance sheet and cash flow statements will typically be analysed quarterly

▪ Borrower audited financial statements will typically be analysed annually

▪ Fund - Board includes Directors who are individually approved by various international

regulatory and professional trade bodies including:

- Financial Conduct Authority (FCA) - United Kingdom

- Malta Financial Services Authority (MFSA) - Republic of Malta

- Swiss Financial Market Supervisory Authority (FINMA) - Switzerland

- Cayman Island Monetary Authority (CIMA) - Cayman

- Commission de Surveillance du Secteur Financier (CSSF) - Luxembourg

▪ Fund - Board (and its special purpose vehicles) includes 2 experienced / professional

independent Directors

▪ Fund - independently audited (on site) - annually by one of the world’s largest audit firms

▪ Fund - independently administered - monthly by one of the world’s largest banking

groups

▪ Fund - operates with no loans to directors, employees and or shareholders of Prestige

and / or affiliated companies (except to SPVs operated by the dedicated Finance

Arranger)

24

Investment Process

Risk Control - Governance & Oversight



▪ Fund - operates with no ‘leverage’

▪ Fund - operates with no ‘derivatives’ (except forward contracts FX share class hedging)

▪ Fund - operates with no elaborate ‘mark to model’ / ‘future income’ valuation methodology

▪ Fund - operates with no ‘exotic financial engineering’

▪ Investment Manager - team includes 2x FCA (UK) / MFSA (Malta) / CSSF (Luxembourg)

approved Directors

▪ Investment Manager - team includes a former Barclays Bank - Commercial Lending Officer

▪ Investment Manager - team includes a former Chemical Bank (JP Morgan) - banker

▪ Investment Manager - team includes a former Deloitte - auditor

▪ Investment Manager - operates a monthly ‘Investment Committee’

▪ Investment Manager - operates various regular internal administration, risk, operational

teams / meetings

▪ Investment Manager - publishes significant / detailed portfolio analysis report (typically

monthly) of Fund’s investment loan portfolio

▪ Investment Manager - retains a seat on the board of the Finance Arranger and operates /

attends board meetings (typically quarterly)

▪ Members of the Investment Manager personally visit larger loan clients in addition to the

‘Finance Arranger’

25

Investment Process

Risk Control - Governance & Oversight



▪ Loan portfolio - interest of approximately 10% p.a.

▪ Loan portfolio - return of capital of approximately 20% p.a.

▪ Loan portfolio - early repayment of up to 20% p.a.

▪ Fund - cash buffer @ 10-15% NAV

▪ Fund - borrowing / overdraft credit facility

▪ Fund’s main counterparty (Finance Arranger) and / or some of its other

counterparty lenders also have borrowing / overdraft credit facilities

▪ Ability to sell loans internally to other Prestige Funds / Managed Debt Pools

▪ Ability to sell loans externally

26

Investment Process

Risk Control - Liquidity



27

Investment Process

Risk Control - Portfolio Asset Allocation



▪ Portfolio - Ongoing qualitative and quantitative asset risk screening process

▪ Portfolio - Limit exposure to any single loan

▪ Portfolio - Limit exposure to any single loan customer

▪ Portfolio - Limit exposure to any single loan sector

▪ Portfolio - Limit exposure to import and export type customers

▪ Portfolio - Analysis of level and variability of historic defaults / impairments

▪ Portfolio - Loan to Value (LTV) limits and limits on non-secured lending

▪ Portfolio - Maintains strong client / sector diversification

Fund Investment Portfolio - Lending Statistics

▪ Minimum lending period 1 year

▪ Maximum lending period 7 years

▪ Target lending period 3-4 years Project Finance

4-5 years Asset Finance

▪ Average loan to asset value 70-80% Project Finance

60-80% Asset Finance

▪ Average value of finance provided GBP 250k / USD 300k

▪ Total # loans 400

▪ Total # of clients 242

▪ Average maturity 69 months (assuming all loans run full term)

▪ Largest client as % NAV 11.20% Project Finance

▪ 0.23% Asset Finance

▪ Largest loan as % NAV 10.79% Project Finance

0.16% Asset Finance

▪ Average loan as % NAV 0.83% Project Finance

0.82% Asset Finance

28

Investment Process

Portfolio - Snapshot



29

Investment Process

Portfolio - Snapshot



Loans Sectors %Loan Agreement Types %

Asset Allocation

Fund Investment Portfolio - Project Finance:

Hire Purchase19%

Lease / Purchase18%

Finance / Lease63%

Operating / Lease0%

Renewable Energy (Agri/Food)31%

Land & Buildings14%

Machinery & Equipment23%

Vehicles (Tractors, Materials Handlers, Loaders)

12%

Vehicles (4x4, Cars, Vans, Trucks up to 3.5 tonnes)

7%

Vehicles (Heavy Goods & Trailers)

5%

Other/Misc.7%

Livestock1%

▪ Access to an established institutional asset-based direct lending team and a diversified

managed pool of high yielding loans and leasing assets

▪ Generating consistent, absolute returns with low volatility in various market conditions

▪ Low correlation to traditional assets classes such as equities and bonds

▪ Managed by an experienced team with a strong history in loan origination, credit

scoring, and loan portfolio management

▪ UK farming / agricultural / food related industries are often conservative asset rich,

cash poor and under invested - in need of modernisation and productivity gains

30


Conclusion

NOTE: As at 01/2018. Past performance is no guide to future performance and investments can go down as well as up.

Participating I-Share results prior to 05/2014 are a composite proforma based upon actual results of Participating Shares with certain fees rebated.


TOTAL 75.00% 21.55% 4.29% 80.05%

5 YEAR 31.48% 8.68% 2.08% 38.01%

3 YEAR 16.64% 3.85% 1.11% 19.17%

1 YEAR 4.49% 1.50% 0.28% 14.81%

Net

of fees

GBP

PALTF

UK

10 Year

Treasury

Index

UK

Bank

Rate

MSCI

World

Index


Market Correlations

31




MSCI

World

Index

USD

0.29 0.02 0.03

UK

10 Year

Treasury Index

GBP

-0.22 0.35 0.05

Prestige

Alternative

Finance

USD

0.02 0.07 0.14

Commercial

Finance

Opportunities

USD

0.03 0.09 0.14

CORRELATION

11/2013 - 01/2018

MSCI

World

Index

USD

UK

10 Year

Treasury Index

GBP

Prestige

Alternative

Finance

USD

Commercial

Finance

Opportunities

USD


Risk Vs Reward

32




MSCIWorldIndex

11/2011 - 01/2018

Alternative Finance

04/2009 - 01/2018

S&P500Index

11/2011 - 01/2018

Commercial Finance Opportunities

11/2011 - 01/2018

0%

2%

4%

6%

8%

10%

12%

0% 2% 4% 6% 8% 10% 12%

An

nu

alised

Retu

rns %

Annualised Volatility %

Prestige Funds - Return Vs. Risk Comparison

FUND: Prestige Alternative Finance Fund Limited

DOMICILE: Cayman

STRUCUTURE: Limited Liability Mutual Fund Company (Open Ended)

REGULATOR: Cayman Island Monetary Authority (CIMA)

INVESTMENT STRATEGY: UK / Asset Based - Direct Lending

INVESTMENT MANAGER: Prestige Fund Management Limited

FUND ADMINISTRATION: Prestige Asset Management Limited

FUND DISTRIBUTOR: Prestige Asset Distribution Limited

FUND DISTRIBUTOR: OpenFunds Investment Services AG

FUND ADMINISTRATOR: MUFG Fund Services (Ireland) Limited

FUND CUSTODIAN & BANK: Butterfield Trust

FUND AUDITOR: Deloitte

SHARE CLASSES: Participating I-Shares (Accumulation)

Participating ID-Shares (Income)

CURRENCIES: GBP / USD / EUR / CHF / SEK / JPY

MINIMUM SUBSCRIPTION: USD 1mn (or currency equivalent)

SUBCRIPTIONS: Monthly

REDEMPTIONS: Monthly, on 60 days notice (I-Shares)

Monthly, on 90 days notice (ID-Shares)

subject to conditions of the Information Memorandum

FEES: Management: 1.25% p.a. (I-Shares)

1.50% p.a. (ID-Shares)

Performance: 0%

Initial: 0%

33


Summary of Terms

NOTE: Currency share class subscriptions should observe the equivalent USD base currency regulatory minimum in order to be accepted.

Please see the Information Memorandum for full terms and conditions.

SOURCE: Prestige Fund Management Limited. Subject to change without notice.34


Operational Flow

Board of Directors

(Quarterly Meetings)

Credit Committee

(Weekly Meetings)

SPECIAL PURPOSE VEHICLE

Privilege Asset Finance

(United Kingdom)


Privilege Project Finance

(United Kingdom)

Operations Team

Finance / Loan

Customer

Board of Directors


Prestige Luxco 1+2

(Luxembourg)

F I N A N C E A R R A N G E R

Privilege Holdings

(United Kingdom)

Finance / Loan

Customer

On-Site Monitoring Team

Finance Arranger

(Weekly Meetings)

Investment Committee

(Monthly Meetings)

Sub Committee

(Bi-Weekly Meetings)

Administration Team

(Weekly Meetings)

Operations Team

(Weekly Meetings)

Lease / Loan

Customer

Lease / Loan

Customer

Lease / Loan

Customer

Finance / Loan

Customer

I N V E S T M E N T M A N A G E R

Prestige Fund Management

(Cayman)

F U N D


(Cayman)

Board of Directors

(Quarterly / Annual Meetings)

On-Site Monitoring Team

Larger Loan Customers


Building on success

35

Prestige Alternative Finance Fund Limited

Assets Under Management (USD) Growth 01/2012 - 01/2018

Prestige Alternative Finance Fund Limited

Cumulative USD Fund Price / Growth 01/2012 - 01/2018

A Successful track record in Fund-based lending

Established in 2007, Prestige consists of several companies under common ownership and control with operations in the UK,

Malta, Luxembourg and Cayman and during that time has raised over USD 1.5bn with a focus on private debt / credit related

fund based, alternative investment strategies.

Since 2009, Prestige Alternative Finance Fund has grown to over GBP 500ml / USD 675ml, with approximately +4,000

registered investors, advised by almost 300 financial advisory groups.

The Fund operates a diversified investment portfolio consisting of asset based loans and leases in both project finance and

asset finance sectors with a strong focus on agricultural, food and farming related of small business customers. The

investment portfolio includes lending and finance opportunities on specific transactions and or assets held in dedicated ring

fenced special purpose vehicles (SPVs). The lending origination and ongoing servicing is conducted by an established,

specialist, independent Finance Arranger (owned by Prestige).




2,000,000

102,000,000

202,000,000

302,000,000

402,000,000

502,000,000

602,000,000

702,000,000

802,000,000

AU

M U

SD

100

110

120

130

140

150

160

170

180

Cum

ulai

tve P

erfo

rman

ce (

USD

Shar

e)


Clients

Our diversified client / investor base includes:

International Institutional Investors

▪ Banks

▪ Corporations

▪ Insurance companies

▪ Pension funds

▪ Public entities and authorities

▪ Registered charities

International Professional Advisors

▪ Alternative investments third party marketers

▪ Asset managers

▪ Discretionary investment advisors

▪ Discretionary investment trusts

▪ Distribution networks for financial products

▪ Family offices

▪ Hedge fund managers

▪ Private banks

36

Prestige Asset Distribution

Gross Assets Raised - Highlights

2011 USD 97mn

2012 USD 184mn

2013 USD 195mn

2014 USD 207mn

2015 USD 205mn

2016 USD 273mn

2017 USD 258mn

01/2008 - 12/2017 USD 1.6bn

NOTE: All figures are approximate and subject to change without notice.

SOURCE: Prestige Asset Distribution Limited

37

Prestige Alternative Finance Fund Limited is registered with the Cayman Islands Monetary Authority (CIMA)

www.cimoney.com.ky

Prestige Alternative Finance Fund Limited is registered with the Monetary Authority of Singapore (MAS)

www.mas.gov.sg

Prestige Fund Management Limited is registered with the Cayman Islands Monetary Authority (CIMA)

www.cimoney.com.ky

Prestige Asset Management Limited is authorised and regulated in UK by Financial Conduct Authority (FCA)

www.fca.org.uk

Prestige Asset Management Limited is a member of the Alternative Investment Management Association (AIMA)

www.aima.org

Prestige Asset Management Limited is a member of the Chartered Institute for Securities & Investment (CISI)

www.cisi.org

Butterfield Trust (Bermuda) Limited is regulated by the Bermuda Monetary Authority (BMA)

www.bma.bm

Charterhouse Law is regulated in the UK by the Solicitors Regulation Authority (SRA)

www.sra.org.uk


Regulatory Institutions & Industry Associations

38

The Prestige team consists of over 100 people in regulated operations

in the UK and in several international financial centres


Companies & Joint Ventures


Prestige Asset Management

39

www.prestigeassetmanagement.co.uk

www.fca.org.uk

Established in 2007, Prestige Asset Management Limited is a UK-based administration and

marketing company regulated by the Financial Conduct Authority (FCA) and is entirely

privately owned by its senior management. The company specialises in providing

investment administration and marketing support services to international fund managers,

wealth managers, asset managers, financial advisors and financial intermediaries.

Prestige Asset Management Limited is authorised and regulated by the

Financial Conduct Authority (FCA) (No: 486239) and is a member of the

Alternative Investment Management Association (AIMA) and the

Chartered Institute for Securities and Investment (CISI).


Prestige Capital Management

40

www.prestigecapitalmanagement.com.mt

www.mfsa.com.mt

Established in 2011, Prestige Capital Management Limited is a Malta-based investment

management company regulated by the Malta Financial Services Authority (MFSA) and is

entirely privately owned by its senior management. The company specialises in

international alternative investments with a focus on absolute return, actively managed

strategies and is responsible for the management and operation of several European-

domiciled investment funds.

Prestige Capital Management Limited authorised and regulated by the

Malta Financial Services Authority (MFSA) and is a member of the Malta

Funds Industry Association (MFIA). Prestige Capital Limited operates with

full scope Alternative Investment Fund Managers Directive (AIFMD).


Prestige Fund Management

41

www.prestigefundmanagement.ky

www.cimoney.com.ky

Established in 2009, Prestige Fund Management Limited is a Cayman based Fund

Management company registered with the Cayman Island Monetary Authority (CIMA) and

is entirely privately owned by its senior management. The company specialises in

international alternative investments with a focus on absolute return, actively managed

strategies and is responsible for the management and operation of several investment

funds.

Prestige Fund Management Limited is registered with the Cayman Islands

Monetary Authority (CIMA).

42


People

Craig Reeves (UK)

Board Director & Founder:

Prestige Capital Management / Prestige Fund Management / Prestige Asset

Distribution / Prestige International Marketing Services and various Prestige

Funds

Associated with Prestige since 2007

Craig is a Director and Founder of Prestige Capital Management Limited, Prestige Fund Management Limited, Prestige Asset Distribution

Limited and Prestige International Marketing Services Limited and is a Board Director of various international Prestige Funds. Mr Reeves is

also a Director of Nucleus Holdings Limited and is a co-founder and non-executive director of OpenFunds Investment Services AG.

Formerly Managing Director and co-founder of Platinum Capital Management Limited (an international asset management group). Formerly

Head of Portfolio Management and Asset Allocation at Titan Capital Management Limited (an international asset management group). Prior

experience as a Proprietary Trader at Gaiacorp Trading Limited (an international asset management group), Proprietary Trader at London

Currency Exchange Limited (a private client / proprietary trading house) and an internship at Bank of America (London). Mr Reeves has also

previously provided retained consultancy services to a large London-based international family office, a large London-based international

stock broker, a London-based pension consulting group and a London-based international real estate investment group.

He has nearly 25 years of experience in financial services as a professional investment manager, trader and investor of alternative

investments, hedge funds, capital markets and real estate and has written several articles for various financial publications journals including

the AIMA Journal. He has served as a Board Director on over 20 international Funds. Mr Reeves graduated with a BA (Hons) in Business

Administration from Huddersfield University and a Higher National Diploma in Business and Finance from University of Greenwich (London).

He also attended the New York Institute of Finance (NYIF) where he studied various financial markets and derivative trading courses and is

also a member of the Chartered Institute for Securities and Investment (CISI).

Approved in Malta by the Malta Financial Services Authority (MFSA), approved in Switzerland by the Swiss Financial Market Supervisory

Authority (FINMA), in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF) and approved in the UK by the Financial

Conduct Authority (FCA) and is registered with the Cayman Island Monetary Authority (CIMA).

43


People

Deborah Hardy (UK)

Board Director: Chief Operating Officer

Prestige Asset Management


Ms Hardy is an Executive Director, Chief Operating Officer and shareholder of Prestige Asset Management Limited

and is an Executive Director of Privilege Holdings Limited.

Ms Hardy has over 20 years’ experience in business administration, process management and development,

delivering a wide range of both client and supplier focused solutions. Ms Hardy was formerly Director of Client

Services at an international asset management group with approximately USD$1 billion under management. She

has also held several operational and management roles within supply chain and contract management at Gardline

Marine Sciences (the world’s largest independently-owned marine survey company), Aviva plc, the largest UK

insurance company and the Rotch Property Group.

Approved in the UK by the Financial Conduct Authority (FCA).

44


People

Robert McGregor (UK)

Board Director: Prestige Capital Management / Prestige Fund Management / Prime

Holdings and various Prestige Funds


Robert is a director of Prestige Capital Management Limited, Prestige Fund Management Limited and Prime

Holdings Limited and a director of various Prestige Funds.

His early background was in financial services as a financial markets trader in London running large proprietary

trading books at Bankers Trust (an investment bank), Chemical Bank (an investment bank) and Royal Trust Bank

(an investment bank). In 1994 he became a founder member and director of London based City Fund Management

Limited (an investment manager), where his primary responsibilities were for operations and risk management. In

2005 he relocated to Grand Cayman and set up City Fund Management (Cayman) Limited (a risk management

consultancy) that supported investment management companies in London, Cayman and the Bahamas. In 2011 he

relocated to Malta to help establish Prestige Capital Management Limited, and is now based in the UK.

Approved in Malta by the Malta Financial Services Authority (MFSA), in the UK by the Financial Conduct Authority

(FCA) and in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF) and is registered with

the Cayman Island Monetary Authority (CIMA).

45


People

Philip Gerrard (UK)Board Director: Chief Executive Officer

Privilege Finance

Associated with Privilege since 2015

Mr Gerrard serves as the Chief Executive Officer of Privilege Holdings Limited and its various operating subsidiaries

including Privilege Asset Finance Limited and Privilege Project Finance Limited.

Prior to joining the board of Privilege Holdings Limited, he was Head of Grant Thornton European Financial Leasing

Advisory Services. Formerly Interim C.E.O. at European Leasing Financial Services. Formerly Managing Director at

Elmfield U.K. Limited, a private Healthcare business. Formerly Operations Director at Royal Bank of Scotland

Financial Automotive Division Services. Formerly Interim Director at NatWest and Lombard Financial Services.

Formerly Retail Managing Director, Retail Leisure Director, Commercial Director at Yates’ Wine Lodges plc. Formerly

General Manager, Regional Sales Director, Regional Sales Manager, National Purchasing and Pricing Manager at

Lex Vehicle Leasing Financial Services. Formerly Production Manager at H.J. Heinz Co. Formerly Production

Manager at Nabisco Brands Inc.

He attended Manchester University and gained a B.A. (Hons) in Economics and Economic History.

Approved in the UK by the Financial Conduct Authority (FCA).

46


People

David Head (UK)

Board Director: Privilege Finance / Nucleus Commercial Finance

Board Advisor: Research - Finance / Lending Strategies

Prestige Capital Management / Prestige Fund Management


Mr Head is a Director of Privilege Holdings Limited (formerly Eastern Counties Finance Limited) and Nucleus

Commercial Finance Limited and serves as a board advisor to Prestige Fund Management Limited - focusing on

asset-based lending, leasing and finance solutions. He also advises on the company’s proprietary investments, as

well as researching new investment opportunities.

He brings a wealth of experience in commercial asset-based lending and finance activity, having worked for

Barclays Bank plc from 1974-2001, where his last role involved acting as a Corporate Manager responsible for a

mixed portfolio of 150 small and medium-sized enterprise clients with a bias towards property

development/investment and franchised motor dealers. From 2001-2010 he was employed by Allied Irish Bank

where he built from scratch over 5 years a GBP£160ml loan book which had minimum defaults and focused on

charitable, healthcare and education sectors, unlike most other British teams which were heavily exposed to the

property sector.

From 2010-2013 he was persuaded to rejoin Barclays where he acted as a Relationship Director with a portfolio of

over 40 corporate clients (sales turnover GBP£5M-£50M) biased towards professional service sectors. He brings a

particular set of professional skills including credit analysis, credit negotiation, business risk analysis, market risk

analysis and operational risk analysis as well as previous experience at British Insurance Association, London.

▪ As a result of the continued global economic slowdown and the problems caused by

the 2007/08 credit bubble, UK, EU and US bank deposit rates remain low, and returns

remain low and often below inflation. Additionally, traditional bank lending are still

subdued and traditional equity-based investments continue to be volatile.

▪ When reviewing various investment opportunities, Prestige researched the asset-

based finance / lending / leasing and factoring markets and the extent to which the

servicing of these markets has been abandoned by many of the traditional lending

banks. These markets are now mainly serviced by independent finance brokers who

place the business under a line of credit.

▪ Asset-Based Lending is a business loan secured by collateral (assets). The loan /

lease, or ‘line of credit’, is secured against inventory, accounts receivable and/or other

balance-sheet assets.

▪ Prestige has identified a specialist, Finance Arranger which primarily services the UK

agricultural sector and has a long track record of selecting high quality clients with

strong assets - resulting in low default rates.

APPENDIX 2: UK / SME Lending - Overview

Identifying an investment opportunity

47

▪ Since 2008, several large UK and international lenders have gone bust, been

nationalised or bailed out (Bank of Scotland, Royal Bank of Scotland, Lloyds, Northern

Rock, Alliance & Leicester, Bradford & Bingley, Barclays, Anglo Irish, Fortis, Dexia, ING,

Popular, CoOp, Kaupthing)… potentially meaning less ability to lend to non-core areas

▪ Many UK and international lenders’ share prices collapsed from their 2007 peaks and

remain significantly lower than 10 years ago despite recent strong gains in Western

stock-markets… potentially meaning less ability to lend to non-core areas

▪ All UK and EU banks are required to maintain significantly higher ‘Tier 1 Capital Ratios’

in line with ‘Basel 3’ rules… potentially meaning less ability to lend to non-core areas

▪ EU-wide caps on bankers’ bonuses will push up fixed costs… potentially meaning less

ability to lend to non-core areas

▪ UK Government ‘Vickers’ Report’ recommends that banks break up risky ‘Investment

Banking’ activities from ‘retail / Commercial Banking’ activities… potentially meaning

less ability to lend to non-core area

▪ Since 2008 several large UK Banking groups have merged, meaning less competition

(HBOS/Lloyds, RBS/NatWest, Santander/Alliance & Leicester/Bradford & Bingley)…

potentially meaning less ability to lend to non-core areas


Areas of Concern: Why traditional banks may lend less

48

▪ Royal Bank of Scotland (RBS) (previously the UK’s biggest lender) has exited

approximately 40 businesses over the past 5 years, has made redundant approximately

40,000 people and shrunk its balance sheet by approximately GBP1Tr / USD1.3Tr …

potentially meaning less ability to lend to non-core areas

▪ HSBC (Europe’s largest bank) has exited approximately 50 businesses over the past 5

years and has made redundant approximately 50,000 people … potentially meaning

less ability to lend to non-core areas

▪ ING (a previously-large UK agri lender) has left the UK, selling its retail banking

businesses to Barclays and putting its significant agri / industrial / commercial loan book

in ‘run off’

▪ Bank / regulator ‘Capital Adequacy’ requirements for commercial lending to small the

medium size enterprises is often significantly higher than that of home mortgage

lending

▪ The 6 largest US banking groups have spent over USD 100bn on litigation since 2008!SOURCE: Bloomberg

▪ The 4 largest UK banking groups were forced to set aside GBP 21.5bn to cover fines

and customer redress in 2013. SOURCE: Bloomberg

▪ BREXIT may force European lenders to leave or reduce exposures … potentially

meaning less ability to lend to non-core areas


Areas of Concern: Why traditional banks may lend less

49

SOURCE: Bloomberg


Areas of Concern: Credit

+8 Years since 2008 financial crisis!Royal Bank of Scotland Plc

Share Price 30 / 06 / 2007 GBP 63.30

Share Price 31 / 01 / 2018 GBP 2.88

-95%

Barclays Bank Plc

Share Price 30 / 06 / 2007 GBP 6.96

Share Price 31 / 01 / 2018 GBP 1.99

-70%

ARTICLE OF INTEREST: Small businesses losing overdrafts at a rate of GBP 5m per day

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11951747/Small-businesses-losing-overdrafts-at-a-rate-of-5m-per-day.html

ARTICLE OF INTEREST: 1000 Bank Branch Closures from 2015-2017

http://www.bbc.com/news/business-38302564

SOURCE: Bloomberg

50



SOURCE: Bloomberg51

9 Years since the 2008 financial crisis!

Banks: Market Capitalisation 2007 vs. 2018

Market Value as of Q2 2017, USDBn (Approximate)

Market Value as of Q2 2007, USDBn (Approximate)

HSBC Barclays Royal Bank of Scotland

215.0 48.5 50.2 UNITED KINGDOM0.00% -46.70% -58.17%

Citigroup

Goldman Sachs

201.7 98.1 UNITED STATES OF AMERICA-20.92% -1.91%

BNP Paribas UBS Unicredit Societe Generale Deutsche Bank Credit Suisse Credit Agricole

66.6 75.6 38.3 46.7 37.9 49.4 53.4 EUROPE-44.50% -34.82% -58.87% -41.60% -39.70% -34.12% -20.36%

7667

80

120

120

93

116

75

100

255

215

91

SOURCE: Bloomberg



SOURCE: Bank of England

52

M4 net lending to Private Non-Financial Corporations (PNFCs) 03/2004 – 12/2017

Bank Lending to SMEs Remains Weaker than 10 years ago

-10

-5

0

5

10

15

20

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

M4 net lending to PNFCsseasonally adjusted 12 months % change


Areas of Concern: Productivity

Agricultural Productivity 1990 = 100

Although the UK’s top farms are among the most productive in the world, many others

just trundle along. A general lack of investment and modernisation is likely to continue

to delay efficiency gains.

SOURCE: The Economist

53


Areas of Concern: Energy

UK Electricity Rate Vs. Natural Gas Vs. Oil - Pence per kWh GBP: 2000 - 2017

Rising Energy Costs:

ARTICLE OF INTEREST: Hinkley Point nuclear plant delayed, says EDF

http://www.bbc.co.uk/news/business-34149392

SOURCE: www.gov.uk

SOURCE: GOV.UK

54

0

2

4

6

8

10

12

14

16

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pe

nce

per

kW

h

UK ElectricityRate

Natural Gas

Oil


Areas of Concern: Energy

Diesel Tax and Duty - Pence per Litre GBP: 01/2011 - 12/2017

High Energy Costs:

SOURCE: www.gov.ukSOURCE: GOV.UK

55

30.00

40.00

50.00

60.00

70.00

80.00

90.00

Ja

n-2

01

1

Ju

l-2

011

Ja

n-2

01

2

Ju

l-2

012

Ja

n-2

01

3

Ju

l-2

013

Ja

n-2

01

4

Ju

l-2

014

Ja

n-2

01

5

Jul-2

015

Ja

n-2

01

6

Ju

l-2

016

Ja

n-2

01

7

Ju

l-2

017

France

Germany

Greece

Italy

Luxembourg

Spain

UnitedKingdom

Pe

nce

Pe

r L

itre


Areas of Concern: Waste

Rising Waste Disposal Costs 1996 - 2018:

SOURCE: www.gov.uk

SOURCE: GOV.UK

56

YearRates of Landfill Tax

Standard Rate

1996-97 £7

1997-98 £7 0.00%

1998-99 £7 0.00%

1999-00 £10 42.86%

2000-01 £11 10.00%

2001-02 £12 9.09%

2002-03 £13 8.33%

2003-04 £14 7.69%

2004-05 £15 7.14%

2005-06 £18 20.00%

2006-07 £21 16.67%

2007-08 £24 14.29%

2008-09 £32 33.33%

2009-10 £40 25.00%

2010-11 £48 20.00%

2011-12 £56 16.67%

2012-13 £64 14.29%

2013-14 £72 12.50%

2014-15 £80 11.11%

2015-16 £83 3.25%

2016-17 £84 2.18%

2017-18 £86 2.01%

£0

£10

£20

£30

£40

£50

£60

£70

£80

£90

£100

199

6-9

7

199

7-9

8

199

8-9

9

199

9-0

0

200

0-0

1

200

1-0

2

200

2-0

3

200

3-0

4

200

4-0

5

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

£ p

er

tonne

UK Landfill Tax (Standard Rates) 1996 - 2018


Areas of Concern: Wages

SOURCE: http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Weekly+Earnings#tab-data-tables

Rising Employer Costs: new minimum “living wage” has been introduced

Average Weekly Earnings (Index) 03/2000 - 09/2017

SOURCE: ONS.GOV.UK

57

90.0

100.0

110.0

120.0

130.0

140.0

150.0

160.0

170.0

Ma

r 00

Ma

r 01

Ma

r 02

Ma

r 03

Ma

r 04

Ma

r 05

Ma

r 06

Ma

r 07

Ma

r 08

Ma

r 09

Ma

r 10

Ma

r 11

Ma

r 12

Ma

r 13

Ma

r 14

Ma

r 15

Ma

r 16

Ma

r 17

APPENDIX 3: Industry Overview

UK Farming / Agricultural / Food

▪ Farming contributed GBP 10bn / USD 13.13bn to the UK economy in 2014, or 0.6% ofthe GDP

▪ The total area of agricultural land in 2015 was approximately 17.1mn hectares, about69% of the total land area in the United Kingdom (excluding inland water)

▪ Agriculture provides around 59% of Britain's food needs even though it employs just1.5% of the country's labour force

▪ From 1979 to 2010 total factor productivity for agriculture has grown by 49%1

▪ The total income from farming per AWU2 has nearly doubled from 1999 to 2010 in realterm prices

▪ The UK farming sector could be characterised as “asset rich and cash poor”

▪ The UK continues to have the some of the most valuable farm land in the world

▪ Significant GBP / USD investment and modernisation in many areas are required toimprove productivity and efficiency

1 Total factor productivity, shows the volume of output leaving the industry per unit of all inputs including fixed capital and labour.

It encompasses all businesses engaged in farming activities, including specialist contractors.

2 Annual work unit - represents the equivalent of an average full-time person engaged in agriculture.

SOURCE: www.defra.gov.uk - Department for Environment, Food and Rural Affairs58

Historically low returns onbank deposits. This is likelyto continue for several years.

The REAL RETURN for

investors is negative.

SOURCE: Bloomberg

Continued uncertainty and

volatility in the equity, bonds

and commodity markets.

Are these the asset classes

you want to be exposed to

in the medium term?

Index has been rebased to USD100

for comparison purposes only

SOURCE: Bloomberg

APPENDIX 4: Market Overview

Equities & Yield

59

0%

1%

2%

01/2

009

01/2

010

01/2

011

01/2

012

01/2

013

01/2

014

01/2

015

01/2

016

01/2

017

01/2

018

3 month LIBOR USD 01/2009- 01/2018

50

70

90

110

130

150

170

12/1

999

12/2

000

12/2

001

12/2

002

12/2

003

12/2

004

12/2

005

12/2

006

12/2

007

12/2

008

12/2

009

12/2

010

12/2

011

12/2

012

12/2

013

12/2

014

12/2

015

12/2

016

12/2

017

MSCI World Index12/1999 - 01/2018

APPENDIX 5: Additional Background Research

Published Media

60

UK Agricultural Sector Attracts Overseas Investors

http://www.prestigefunds.com/wp-content/uploads/Financial-Times-Investors-Take-a-Shine-to-UK-Agriculture.pdf

Financial Times Q3 / 2017

The role of UK lending funds is increasing in the post - Brexit world

http://www.prestigefunds.com/wp-content/uploads/AIMA-Journal-Q2-2017.pdf

AIMA Journal Q2 / 2017

Private Capital Could End Farmers’ Lending Drought

http://www.prestigefunds.com/wp-content/uploads/ARTICLE-Prestige-Dow-Jones-Private-Equity-News-03-2016.pdf

Dow Jones Q1 / 2016

Addressing the funding gap in post - Brexit Britain

https://www.financierworldwide.com/addressing-the-funding-gap-in-post-brexit-britain/#.WRNiJMbTXIV

Financier Worldwide Q2 / 2017

International Fund Reference Codes

Participating I-Shares

Participating ID-Shares

61

CURRENCYISIN

code

SEDOL

code

CUSIP

code

MEXID

code

BLOOMBERG

code

MORNING STAR

code

VALOR

code

MAS

code

CIMA

code

INCORPORATION

codeGIIN FATCA ID CITICODE

USD KYG722711853 BK0S263 G72271 185 OGAABW PRAFISU KY F00000T7LR 23792898 103OZPE2978 16040 SH-220502 EAGA1Z.99999.SL.136 EAGA1Z N6QX

EUR KYG722711937 BK0S252 G72271 193 OGAABX PRAFISE KY F00000T7LS 23793540 103OZPE2978 16040 SH-220502 EAGA1Z.99999.SL.136 EAGA1Z N6QY

GBP KYG722711770 BK00FP9 G72271 177 OGAABY PRAFISS KY F00000T7LT 23793583 103OZPE2978 16040 SH-220502 EAGA1Z.99999.SL.136 EAGA1Z N6QZ

CHF KYG722712018 BK0S274 G72271 201 OGAABZ PRAFISF KY F00000T7LU 23793744 103OZPE2978 16040 SH-220502 EAGA1Z.99999.SL.136 EAGA1Z N6RA

SEK KYG722712190 BK0S285 G72271 219 OGAACA PRAFISK KY F00000T7LV 23793811 103OZPE2978 16040 SH-220502 EAGA1Z.99999.SL.136 EAGA1Z N6RB

CURRENCYISIN

code

SEDOL

code

CUSIP

code

MEXID

code

BLOOMBERG

code

MORNING STAR

code

VALOR

code

MAS

code

CIMA

code

INCORPORATION

codeGIIN FATCA ID CITICODE

USD KYG722712844 BDGRV79 G72271 284 PRAFIDU KY F00000XMUO CH 30169859 103OZPE2978 16040 SH-220502 EAGA1Z.99999.SL.136 EAGA1Z

Legal Disclaimer & Risk Warning

NOTE: This document is issued by Prestige Asset Management Limited (PAML) which is authorised and regulated in the UK by the Financial Conduct Authority

(FCA), and is for information purposes only. This document does not constitute an offer to sell or a solicitation of an offer to buy shares in any Prestige Fund/s and

is only intended for distribution to persons permitted to receive it by Section 238 of the Financial Services and Markets Act 2000 (FSMA). Prestige Alternative

Finance Fund Limited (PALTF) is an experienced investor Fund and is not intended for retail investors. If you are unsure of your classification you should seek

independent professional advice. The Investment Fund/s and services offered or described within this document are marketed through PAML, a member of both

the Alternative Investment Management Association (AIMA) and the Chartered Institute for Securities and Investment (CISI). The Fund is registered by the

Cayman Island Monetary Authority (CIMA) and the Singapore Monetary Authority (MAS), and is therefore not subject to UK FCA authorisation and regulation or

UK investor protection and compensation schemes. The PALTF Fund is an Unregulated Collective Investment Scheme (UCIS) / Non mainstream Pooled

Investments (NMPI) for UK purposes and also classified as an Alternative Investment Fund (AIF) which is subject to the scope of the Alternative Investment Fund

Managers Directive (AIFMD) for whose purposes PALTF is managed by a Third Country AIFM. PALTF is managed in the Cayman Islands and may be marketed

within the EU. In the UK UCIS/NMPI are considered higher risk and not suitable for all types of investor. There may be restrictions when marketing to certain

jurisdictions. It is your responsibility to be informed and to observe all applicable laws and regulations of any relevant jurisdiction and to satisfy yourself that your

use of this information and any subsequent investment in the fund is permissible under the applicable laws, rules and regulations of any applicable government,

governmental agency or regulatory organisation where you reside. Trading of PALTF began in 01/2009 without outside third party investors on 04/2009. Any

results shown prior to this are a composite proforma based upon actual lending data provided by the Underlying Investment Advisor/s and should not be relied

upon for any investment decisions. All asset allocation scenarios are subject to change without notice. All trading strategies are denominated in GBP unless

otherwise stated and all management fees, performance fees and any loan default data as described in the Information Memorandum have been deducted from

their historic track records. Past and simulated performance is not a reliable guide to future performance - investments can go down as well as up and you may get

back less than your original investment. Any track record/s and performance data shown is based on the actual lending results published by underlying Investment

Advisor/s within the Fund, which were in existence at the time of creation but should not be relied upon when making a decision to invest. Investment allocation

scenarios shown are for example only and are subject to change and may vary. Subscription for shares in any Prestige Fund or investment portfolio can only be

made by completing the relevant application form that accompanies the Fund’s Offering Memorandum / Offering Supplement or Issuing Document. Any

comparisons between different funds have been made on a Net Asset Value (NAV) basis, whereas any comparisons with an index have been made on an offer-to-

offer basis, which the Prestige Fund directors believe is fair and not misleading. Comparative data has been obtained from reliable sources. Any comments, views

and opinions expressed in any Investment Advisors Summary within this document reflect those of the underlying Investment Advisor/s and may not be the current

views, comments and opinions of PAML and/or its affiliates. All trademarks are recognised. The MSCI World Index is a registered trademark of Morgan Stanley

Capital International. The S&P500 Index is a registered trademark of Standard & Poor’s Group. The UK 10 Year Treasury Index is made up of actual monthly bond

yields and turned into a monthly index. The returns of the index are representative of what could be achieved if one held that bond during that particular time

period. Further information on facts, figures and literature contained within the document is available upon request. Neither PAML, PALTF nor the Fund’s

Administrator accept any liability from investors who rely upon any other information with regard to any Prestige Fund/s.

The Representative of the Fund/s in Switzerland is OpenFunds Investment Services AG, with its registered office at Seefeldstrasse 35, CH-8008, Zurich, T: +41 44

500 31 08, www.open-funds.ch. The Paying Agent in Switzerland is Società Bancaria Ticinese SA, Piazza Collegiata 3, CH-6500, Bellinzona, T: +41 91 821 51 21,

F: +41 91 825 66 18, www.bancaria.ch. The distribution of Shares in the Fund in Switzerland must be made exclusively to Qualified Investors. The place of

performance and jurisdiction for the Shares in the Fund distributed in Switzerland is at the registered office of the Representative. Publications in respect of the

Shares are effected on the electronic platform www.fundinfo.com. The disclaimer on OpenFunds acting as Swiss legal representative has been drawn up in the

English language. In case of any discrepancy between the English text version and any translation thereof, the English version shall prevail and be regarded as

binding. . This document may be provided by Kroma Capital Partners Ltd (‘Kroma’). Kroma is regulated by the Dubai Financial Services Authority and is located at

Unit 813A, Level 8, Liberty House, Dubai International Financial Centre, PO Box 111289, Dubai, UAE. The material provided by Kroma is intended only for

Professional Clients (as defined by the DFSA Conduct of Business module), and must not be relied upon by another person. Unless advised otherwise, all sources

of data are those of Prestige. © 201862

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