`Kestrel global portfolio presentation 2015 05_08

Kestrel Global PortfolioMay 2015

2Kestrel Global Portfolio

Table of Contents

Performance 3

Fund Holdings 4

Asset Class Optimisation 5

Dynamic Risk Allocation 7

Fund Managers 13

Fund Characteristics and Fees 14

Annex: Corporate Structure 17

Annex: Kestrel Managers’ Track Records 18

Vision is not just where you look – it’s how you see .


Kestrel Global Portfolio Compared to GBP Flexible A llocation Peer

The Kestrel Global Portfolio A share class in GBP has returned +45.61% from launch on 1st June 2012 to 1st

May 2015, giving a compound annual return after fees of 13.76% and an annual volatility of about 7.95%.

The Kestrel Global Portfolio has returned 13.76% an nualised since launch

Past performance is not a guide to future performance Source: Morningstar / Bloomberg


Kestrel Global Portfolio share classes have automat ic currency hedging to give the same returns across all currency share classes

$, £, Sfr, € and Sek retail share classes for KGP compared to Bloomberg Global Asset Allocation IndexOne Year Performance 30th April 2014 – 30th April 2015

Past performance is not a guide to future performance Source: Bloomberg


Bloomberg Global Asset Allocation Index: Members & Weights

Source: Bloomberg


Kestrel Global Portfolio Optimised Holdings

On a look-through basis, the fund is diversified ac ross more than twelve thousand securities


Kestrel Investment Process – Optimisation Across Ass et Classes

*Risk is calculated as annualised standard deviation of weekly returns

Example: Lower Risk Asset Class Optimisation


Kestrel Investment Process – Optimisation Across Ass et Classes


Example: Higher Risk Asset Class Optimisation


Kestrel Investment Process – Dynamic Asset Allocatio n

Kestrel’s fund managers shift the portfolio’s asset weights for expected market conditions

Dynamic Risk Allocation

RETURN 6%

RETURN 5%

RETURN 4%

RISK 8% RISK 11% RISK 15%

High Return Assets 40%





Optimised Risk Level Allocations Plus Dynamic Alloc ation

KGP Dynamic Allocation combines Low Volatility and High Volatility baskets to give KGP Risk Levels

KGP Dynamic Allocation

Low Volatility Allocation

KGP Dynamic Allocation

High Volatility Allocation

*Risk is calculated as annualised standard deviation of weekly returns.

RISK 8% RISK 11% RISK 15%


KGP – Historical Dynamic Allocation Chart through to April 2015

Kestrel’s Managers use Dynamic Allocation to Enhanc e Return and Control Risk

Risk Shift toUnderweight



Overweight

Overweight

Overweight

Risk Shift toNeutral

Arrows show Kestrel Managers’ portfolio risk allocation changes: red to move underweight risk, green to move overweight. Red dotted lines show continued underweight risk, green dotted lines show continued overweight risk. Blue line shows a neutral risk allocation. Black line shows the total return for the 60:40 MSCI world equities: Barclays bond index.



Kestrel Investment Research

Kestrel’s managers interpret outputs from our propr ietary research tools to set dynamic allocations

Bars show Kestrel projections for Global GDP. Dotted lines show annual percentage change in reported GDP weighted across 24 countries.


The Lehman Crash – Iveagh Performance, 1 st Sep 2008 – 2nd Jan 2009 : -1%

Dynamic Asset Allocation held the Iveagh fund to -1 % over the 2008 Lehman collapse


Iveagh Wealth Fund , MSCI World Equity Index – Performance 1st September 2008 – 1st January 2009 with John Ricciardi Head of Asset Allocation


Kestrel’s Fund Managers

John Ricciardi

Fund Manager

Before becoming a co-founding partner of Kestrel Investment Partners LLP, Johnwas head of global asset allocation for Iveagh Ltd, creating and managing thatfirm’s Standard & Poor’s AA rated Global Asset Allocation fund as well as itsdynamic Risk-rated Global Portfolio funds. John co-founded CursitorManagement Ltd and Cursitor-Eaton Asset Management Inc, among the firstfirms to offer top-down, global asset allocation management for pension fundsand sovereign wealth funds worldwide. On selling the Cursitor group to AllianceCapital, John became head of global asset allocation for Alliance Bernstein, with$450 billion under management worldwide. John also founded and was chairmanof Bullrun Financial Inc, a pioneer of quantitative portfolio strategies for institutionsand advisers, now part of Quantal Inc.

Rutgers College – B.A. Institut de Langues et Civilisation Orientale, Paris – Diplôme Langue et Culture ChinoiseEcole des Hautes Etudes en Sciences Sociales, Paris- SemiologieUniversity of London-Birkbeck – Graduate Economics

Gustaf Hagerud

Fund Manager

Before Gustaf joined Kestrel Investment Partners LLP in March 2015, he was head of the Asset Management and deputy CEO of Third Swedish National Pension Fund, AP3. When Gustaf left AP3, assets under management were approximately EUR 30 billion. AP3 has investments in global equities, global bonds, hedge funds, private equity, real estate, forestry, infrastructure and insurance linked securities. Prior to working at AP3, Gustaf worked for ten years with global tactical asset allocation at Alecta and AP1. Before that he held positions at Nordea and Swedbank as a trader of fixed income instruments, equities and foreign exchange. In total, Gustaf has 29 years of experience in the financial industry. He holds a PhD in Finance from Stockholm School of Economics, a MA in Economics from University of British Columbia and a BA in Economics from the University of Stockholm. Gustaf’s research is focused on volatility forecasting. He is also an author of a textbook on the Swedish financial markets.

The Kestrel Global Portfolio’s experienced managers


Kestrel Global Portfolio Fund Characteristics

KGP is a daily-dealing, UCITS, Dublin registered fu nd authorized by the Central Bank of Ireland

Daily-dealing UCITS in five Currencies

• The company is Irish-registered, authorized by the Central Bank of Ireland.

• The Kestrel Global Portfolio is a sub-fund of Global Reach Kestrel PLC

• The sub-fund is structured as an Open-Ended Investment Company (OEIC)

• It is governed by UCITS IV regulations

• The fund is daily-dealing

• Investment managers – Kestrel Partners LLP, authorized and regulated by the FCA

• Custodian – SMT (Sumitomo) Trustees (Ireland) Limited

• Fund administration – Maples Fund Services (Ireland) Limited

• Compliance services – Kinetic Partners


Kestrel Global Portfolio Share Classes, Fees & Expe nses

KGP has one institutional and two retail share clas ses in GBP, USD, EUR, CHF and SEK

*The charges figure is reported for a period during which the Fund’s net asset value averaged about £110 million

Direct

A share class

Platform

B share class

Institutional

I share class

Initial charge Up to 5% - -

Annual Management charge 1.75% 1.25% 1.00%

Exit charges - - -

Minimum Investment £10,000 - £10,000,000

TER * 2.32% 1.82% 1.57%


Kestrel Investment Partners LLP

1 Adam StreetLondonWC2N 6LE

+44 (0)20 3371 [email protected]

Contact Us


Annex – Corporate Structure

Kestrel Partners LLP is a specialist fund managemen t boutique owned and managed by its partners with more than £400m un der

management

Maha Dassarath

Financial Controller

Arifa Patel

Analyst

Ari Zaphiriou-Zarifi

Chairman

John Ricciardi

Partner & CEO

Max Royde

Partner

Oliver Scott

Partner

Amy Hill

Office Manager

Stephen Skillman

Financial Controller

Ian Forrest

Head of Middle Office

Monika Anderson

Head of FinanceRavi Kishore

CTO

Pramila Prasingu

Data Engineer

Sarath Kotamarthi

Data Engineer

Adam Coals

Middle Office

Helen Saunders

Middle Office

Gustaf Hagerud

Partner & Deputy CEO


Annex – John Ricciardi’s Historical Track Records

• Historical Track Record: Cursitor Management

• Chart of Global Asset Rotation Fund. June 1986 through February 1996 track record with John Ricciardi as head of asset allocation and fund manager using his top down global investment process.

Past performance is not a guide to future performance


Annex – John Ricciardi’s Historical Track Records

• Historical Track Record: Alliance Capital

• Chart of Far East ex-Japan Equity Country Rotation Fund. February 1996 through June 2001 track record with John Ricciardi as head of asset allocation and fund manager using his top down global investment process.

Past performance is not a guide to future performance

21Kestrel Investment Partners LLP

Disclaimer

This presentation is only available to investors in the United Kingdom, Republic of Ireland, Sweden and Singapore. It is issued by Kestrel Partners LLP (“Kestrel”) which is authorised and regulated in the United Kingdom by the Financial Conduct Authority for the sole purpose of providing information about a potential investment in the Kestrel Global Portfolio (“KGP”). Kestrel Investment Partners is a trading name of Kestrel Partners LLP. The transmission of this presentation to any person outside the UK or Republic of Ireland is unauthorised. Kestrel acts solely for KGP in issuing this presentation.

This presentation does not constitute an offering. This presentation is meant only to provide a broad overview for discussion purposes. All information provided here is subject to change. All investors must obtain and carefully read the Prospectus, Supplemental Prospectus, KIIDs and other formal marketing literature relating to KGP (‘Marketing Material’), which contains the information needed to evaluate the potential investment in KGP and provide important disclosures regarding risks, fees and expenses. All information provided herein is qualified in its entirety by the Marketing Material.

This document is confidential and solely for the use of Kestrel, its subsidiaries and affiliates. By accepting delivery of this presentation, each recipient undertakes not to reproduce or distribute this presentation in whole or in part, nor to disclose any of its contents (except to its professional advisers), without the prior written consent of Kestrel. Kestrel is not acting as the advisor or agent of any recipient. The presentation is being made based on the understanding that each recipient is not relying on Kestrel for any information, advice or recommendation of any kind and that the recipient has sufficient knowledge and experience to evaluate the merits and risks of investing in equity and other financial products. The statements contained in this presentation that are not historical facts are forward looking statements. These forward looking statements are based on current expectations, estimates and projections about the industry and particular markets. Words such as ‘expects’, ‘targeted’, ‘anticipates’, ‘should’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, ‘forecasts’, ‘projects’, variations of such words and similar expressions are intended to identify such forward looking statements. The statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and returns may differ materially from what is expressed or forecasted in such forward looking statements. All expressions of opinion are subject to change. While some information used in the presentation has been obtained from various published and unpublished sources considered to be reliable, Kestrel does not guarantee their accuracy or completeness and accepts no liability for any indirect or consequential losses arising from their use.

Investors and potential investors should always be aware that the price of shares in any fund and the income from them can go down as well as up. Past performance is no guarantee of future results. Real results may vary. If you have any doubts about the suitability of KGP to your circumstances you should seek independent financial advice.

Share prices and performance have been calculated after taking into account all charges paid by the fund including fees paid to Kestrel as well as the distributor and promoter of the fund. No account has been taken of any other fees or charges that may be payable by the investor such as tax or advisers fees. Past performance is not a guide to future performance. The value of investments may go down as well as up and you may not get back the full amount originally invested.

In Switzerland, the Fund has appointed as Swiss Representative Oligo Swiss Fund Services SA, Av. Villamont 17, 1005 Lausanne, Switzerland, Tel: +41 21 311 17 77, email: [email protected]. The Fund’s paying agent is Swissquote Bank SA.

`Kestrel global portfolio presentation 2015 05_08

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