Koroni Fund Presentation July 2009 VERSI


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Alternative Investment The Koroni Fund : 

Alternative Investment The Koroni Fund Why alternative investments? Stock market returns Bank interest on savings UK property Other sectors Volatility Client suitability What is it and how does it work?

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FTSE 100 since 1979 when should you buy?

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UK Bank Interest Rates from 1973

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UK House Prices since 1970 when should you buy?

Price of Gold since 1979, when should you buy? : 

Price of Gold since 1979, when should you buy?

Pension Fund Sector Averages : 

Pension Fund Sector Averages Source : Investment Life and Pensions March 2009

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IFAs' failure to diversify costs clients 15% of assets James Kenny, Investment Adviser Magazine. Published Tuesday , June 30, 2009 UK investors have lost 15 per cent of their assets since 2007 due to the failure of IFAs to diversify client portfolios adequately, according to a survey conducted by the World Gold Council in association with YouGov. The report also found that one in five private investors have lost more than a quarter of their wealth over the past 24 months and that half has lost more than 16 per cent. 42 Marcus Grubb, managing director of investment research marketing at the World Gold Council, said: "A greater understanding of diversification is needed to ensure that, irrespective of market conditions, an investor's portfolio has the necessary defences to ride out the fiercest of economic storms. "Many IFAs, investors and commentators have characterised the wealth destruction we have seen over the past 24 months as representing a failure of diversification due to poor performance across almost all asset classes. "However, our research points more to a failure to diversify adequately - investors were simply not advised to invest in those assets with the best diversification properties."

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Attitude to Risk Budget Timescales 1 2 3 4 5 6 7 8 9 10 £0 £1,000 -£9,999 £10,000 - £25,000 £26k - £50k £51k – £100k £100k+ Up to 6mths Up to 1yr Up to 2yrs Up to 3yrs Up to 5yrs Up to 10yrs+ Client suitability for this investment

Who can invest? : 

Who can invest? Investors with £10,000 or more to invest that are… Private Individuals Experienced investors Professional investors Knowledgeable employees Pension SIPP/SSAS investors through Financial Advisers Partnerships, companies or trusts AND…. Investors who have read and understand the paperwork Investors who have completed the subscription document Anti money-laundering checks need to be completed in all cases

The Koroni Fund What is it? : 

The Koroni Fund What is it? “A tax efficient specialist fund, for investors wanting to invest from as little as £10,000, in a growing, none stock-market related sector, for 3 years plus”.

Background to PPI claims Market challenge Market opportunity The Koroni Fund structure Key features Investment strategy Sales process Summary and next steps

Background to claims : 

Background to claims Hurstanger v Wilson – April 2007 case law “Secret commissions” and “hidden charges” Approx 20m PPI cases potentially mis-sold Approximate time for claims to settle 6 -12 months New industry been created to help with ‘claims mountain’ Claims companies focussing on £5,000+ claims Claims companies require upfront fees to process

FT Adviser 6th May 2009“PPI players withdraw from the market” : 

FT Adviser 6th May 2009“PPI players withdraw from the market” Story by: Sharon Flaherty All major payment protection insurance (PPI) players have now withdrawn or are in the process of withdrawing from the market, the Financial Services Authority (FSA) has confirmed. At the end of February, the regulator wrote to all firms selling single premium PPI suggesting they stop selling the product by 29 May. Its request followed the Competition Commission’s recommendation that the sale of single premium PPI policies be banned from October 2010. An FSA spokesman said: "Our recent letter to CEOs requesting that firms stop selling single premium unsecured personal loan PPI has been successful. "All major firms (providers and underwriters) involved in this market have now agreed to withdraw from this area of the PPI market.“

Market Challenge : 

Market Challenge Legal costs to process claim £500 - £750, so capacity problem for claims companies and solicitors Cashflow challenges, can take 6 to 12 mths process claim Clients generally need to be charged up-front, to solve cashflow challenge

Market Opportunity : 

Market Opportunity Provide cashflow funding for claims companies to attract new business and process more claims Repayment of funding from the claim settlements, with a significant premium contracted to be paid back to the funder The Koroni Fund - Investment vehicle that allows claims companies, to pay agents upfront commissions for claims. The Koroni Fund buys the claim for a set return on completion, allowing attractive short and medium term investment returns for investors Fund only buys selected category of claims, confident of settlement options to buy wide variety of claims as market conditions dictate. Variable factor is exactly when the claim will be settled 6 – 12 mths?

Structure : 

Structure Tax efficient Fund, company does not pay tax Open ended investment Cayman Islands registered for tax and cost savings Licensed Mutual Fund by Cayman Island Monetary Authority Regulated under the Mutual Funds Law (2007 revision) Segregated Portfolio Company (SPC) under an umbrella Fund Administrators JP Funds Ltd Ernst and Young tax advisers to the Fund Managers

Simple Structure : 

Simple Structure CAYMAN SEG PORT CO. (JPSPC1) Offshore Tax Free Umbrella Fund

Example* : 

Example* Figures are approximate for illustrative purposes ** Actual value of shares would be greater due to claims still to settle £170 returned to fund for each successful claim (typically 6 – 12 months) I-Sm@rt Process Claim(s) buys claim(s) High Street Banks Enforces settlements Range of settlement amounts - Typically £4,000 Consumers making claims £3,000 net settlement to consumer £1,000 no-win, no-fee Contracted return Koroni Fund Investor £100 invested If only 66% of claims settle and are paid within 12 months - £170 x 66% = £112.20 Hurdle rate of 6% p/a plus 55% of over performance =£109.41 available** £109 available

The Koroni Fund key features : 

The Koroni Fund key features Alternative to traditional stocks & shares investment or bank returns Spread of investment claims to mitigate risk (c. 50,000 claims) Initially selected PPI claims, where case law supports Minimum investment £10,000, no maximum Individuals can invest directly or via companies or trusts Invest via pension (SIPP/SSAS) Open ended Fund Defined exit for investment after 3 yrs without redemption penalty Flexible options for early exit after 12 mths Significant projected returns with 6.0% p/a compound hurdle rate

Koroni Fund Features : 

Koroni Fund Features Minimum £10,000 investment Fund open for investment from 18th June 2009 3 Year fund with early redemption options Open to Experienced, Professional or Knowledgeable investors as well as Pensions, Companies and Trusts Target net returns Yr 1 - 6% - 10% Yr 2 -12% - 25% Yr 3 -18% - 50% Returns over 6% p/a threshold shared 55% to investor, 45% to fund managers Returns not guaranteed, value of shares can fall as well as rise, you may not receive the full amount of your initial investment on redemption

Fund Taxation : 

Fund Taxation No direct taxation on SPC by Cayman Islands Govt. Law passed, no tax on gains, income, estate duty, corporation tax, gift tax or tax on profits up to Nov 2027. Sect 6(3) Tax Concession Law (2001) No exchange control laws or regulations Personal Taxation Individuals to seek own advice on personal position UK residents – taxed on worldwide gains and income

Koroni Fund Advisers : 

Koroni Fund Advisers Auditors – BDO International (Tortuga) Administrators – JP Fund Administration Limited Cayman Bankers – Deutsche Bank Claims Managers – I-Sm@rt Consumer Services Limited UK Investment Manager – David Rist FPC Investment Advisers – Real-Life-Claims Legal Counsel – Ogier Cayman Islands Promoters – Olive Tree Limited UK Tax advisers - Ernst & Young LLP Guernsey

I-Sm@rt Consumer Services : 

I-Sm@rt Consumer Services Specialist claims management – factory process model Northampton based Company Processed 50,000 + claims Market leading – no win, no fee - 25% on success Simple application process Full online claim tracking process

Investment strategy : 

Investment strategy Select preferred, quality claims 90%+ chance of success Single premium, PPI on loans initially (other areas can be considered subject to legislation e.g. bank charges) High street Banks & Building Societies The Fund invests in a second tranche of claims from money received from claims paid out in months 1 to 12 Open-ended Fund - 3 yrs exit without redemption penalties Returns in excess of 6% compound thresholds shared 55%-45% with fund mgrs as incentive to perform

Simple application and sales process : 

Simple application and sales process £10,000 minimum Simple application subscription form Applications to Olive Tree HQ Swindon Professional, experienced and knowledgeable investors or pensions AWM IFAs available to help set up SIPP if required Olive Tree helpline 0845 2570227

Who can invest? : 

Who can invest? Investors with £10,000 or more to invest that are… Pension SIPP/SSAS investors through Financial Advisors Partnerships, companies or trusts Private Individuals Experienced investors Professional investors Knowledgeable employees Investors who have read and understand the paperwork Completed the application subscription form Anti money-laundering checks need to be completed in all cases

The Koroni Fund Summary : 

The Koroni Fund Summary Investment expertise and due diligence of OTIP JP Fund Administrators Licensed Mutual Fund open ended SPC Regulated under Mutual Funds Law (2007 revision) Investment from as little as £10,000 Spread of claims to mitigate risk Expertise of I-Sm@rt claims management Open ended Fund Defined exit for investment – 3 years + with early redemption options Direct investment or through SIPP/SSAS Fund manager performance incentives for extra growth Target returns of 50% after 3 yrs

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www.olivetreeworld.com contact@olive-tree.com Tel 0845 257 0227 For a brochure, prospectus and application

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