- 1. Investing Into Mankinds Primal Need Diversifying Into
Agriculture to Safeguard and Build WealthE/W:
[email protected] | www.liquid-unvestments.com UK OFFICE:
9th Floor, 1 Knightsbridge Green, London, SW1X 7QA BRAZIL OFFICE:
Av Santos Dumont 2828, Sala 1501, Aldeota, Fortaleza, 60150 - 162
UK+44 (0) 20 7084 7421 | USA +1 (347) 647 0127 | BRAZIL +55 (85)
3224 6659
2. About Liquid Investments Founded in 2006 Alternative
Investment specialists in Emerging Markets Focus: Helping clients
to diversify away from the uncertain financial markets in the West
and into Agriculture Commodities in Brazil Brazil 1 3. Experienced
Management A Senior Management Team comprising Investment
Professionals with long standing Markets Experience Global work
experience Europe, CIS, M-East, Far-East raising several Hundred
Million dollarsExperience: Deutsche Bank, Santander, Arthur
Andersen, Aon, Spectron Group. In Banking, Investments, HNW
Advisory, Tax Advisory, Commodities Trading 2 4. Know Your Client
We ask our clients what they want, and marry that to what they NEED
We believe that it is ESSENTIAL that clients identify and plan for
their future as there are some very clear threats to their plans
that must be understood and navigated3 5. What are YOUR Goals?
Retirement - lifestyle, retirement date, annuity Education -
children or grandchildrens Aspirations travel, beach house, new car
etcLegacy or inheritance Plan for medical costs that may be
encountered in later life4 6. Monetize YOUR Goals A BASIC
retirement for an average American couple costs $1 million Average
medical costs for a couple in the US - $220,000Education costs per
child up to $520,000 until age 18 and a normal" 4 year degree costs
$100,000 (Harvard costs $260,000)Taking a holiday once a year for
15 years in retirement mounts up and costs on average $150,000 5 7.
Goals Paying For It Average US couple will need $1 million for
retirement Assuming a conservative 4-5% annual draw-down
(preinflation, emergencies)Investing in a tax-free muni bond
portfolio, drawing down $40,000 annually There is a 72% chance nest
egg will be exhausted before you die 6 8. The Problems Big Picture
Fertility rates are slowing, longevity is increasing Between 2013
and 2050 the number of people globally 65 and older will TRIPLE to
1.5 billion, one-sixth of the worlds populationInspite of people
living longer, average retirement age throughout the 20th Century
remained static at 64 Apart from (adverse) demographics, there are
high levels of debt in developed economies, slowing rates of growth
in emerging markets 7 9. Old Age Dependency Ratio Old-Age Support
Ratio: Number of People of Working Age (20-64) Per Person of
Pension Age (65+)South Africa India Turkey Indonesia Brazil Mexico
China Chile Korea Ireland Russian Federation United States Canada
Australia Czech Republic Netherlands OECD United Kingdom
Switzerland Denmark Spain Japan Source: OECD (2011)12.5 11.2 9.9
9.8 8.9 8.9 7.9 6.8 2.5 6.3 1.5 5.6 2.2 4.9 2.4 4.7 2.6 4.6 2.1 4.5
2.3 4.4 1.9 4.2 2.1 4.2 2.1 3.7 2.4 3.7 2.0 3.7 2.3 3.7 1.5 2.8
1.2024686.1 4.5 3.2 3.1 2.6 2.5 2.42008 20501012141618208 10. Stay
Healthy A recent estimate* states $220,000 will be spent by the
average 65-year old couple for healthcare expenses throughout
retirement The Society of Actuaries estimate a couple retiring at
55 and living to 85 will spend $744,800 on healthcare *Fidelity
Investments 9 11. No Longer Fit For Purpose David Lloyd George
(Chancellor of the Exchequer, 1908-15)He was the driver for a well
intentioned social experiment which many of us are paying for today
state funded pensions. While his original system was workable, our
modern day system has not adapted and simply is not affordable10
12. Work Hard The US government estimates that middle-income
parents of infants born today will spend $242,000 to raise their
child to the age of 18but this excludes college fees, which can be
up to an additional $520,000before university fees are added, a
further $100,000-260,000 = up to $1 million per child11 13. Adding
Up The Cost RetirementChildrenExtra$1 million Pension$242,000
Living Expenses$150,000 - Holidays$220,000 Medical Expenses$520,000
+ $260,000 College + University$1.37 million$1.02 million$150,000=
$2.54 million 12 14. Investment Returns Set to Slide8% 7% 6% 5% 4%
3% 2% 1% 0% World since 1950World since 1980WorldHistorical high
returns Source: Credit Suisse Global Investment Returns Yearbook
2013USAJapanUKEuropeEmerging marketsProspective lower returns
EquitiesBonds13 15. Debt Perspective14 16. (The Need For)
Diversification Modern Portfolio Theory (MPT) is used by all
fundamentally driven investorsA risk management process whereby
different types of investments are blended Result A collective
performance generating higher returns with lower risk than an
individual investment15 17. Diversification - Video Asset Class
Commodities CurrencyProducts Geopolitics16 18. MPT Equates To More
Choice1717 19. Liquid Investment Theory (LIT) Our refinement of
Modern Portfolio Theory Additional layers of diversification
Uncorrelated investment behavior to mainstream assets18 20. Liquid
Investment Theory (LIT) Provides additional layers of
diversificationAsset Class: a finite resource Commodities: not
correlated with other assets Currency: independentProducts:
agricultural, consumer, industrial, pharmaceutical sectors
Geopolitics: 5th largest global economy by 2015, stable democracy19
21. Investment Focus on Agriculture Is there more primal urge for
humans than to SURVIVE? They have to feed themselves and their
families!20 22. Why Agriculture? Asset class generating
uncorrelated returns compared to other investments Value to rise
due to a widening supply-demand imbalance21 23. Farmland World-Wide
Is Disappearing UN estimate 12 million ha. being lost on annual
basis worldwideEquivalent to all farmland in California
disappearing every 3-years The loss is permanent and due to
deforestation, chemical usage, livestock overgrazing and the impact
of global warming22 24. Its Getting Crowded Life Expectancy
(years)Life expectancy is
rising2011World52.5870.5469.7775.04Brazil54.6973.35ChinaProtein
rich diets throughout emerging markets1960US7.2 billion people in
2013 to 10 billion in 205043.4775.04India41.3865.96Source: IMF
201223 25. Population Forecast 16World Population, 1950-210014
Africa10 Billion12Asia8Europe6Latin America and the
Caribbean4Northern America2Oceania0 19501980201320502100Source:
Population Division of the Department of Economic and Social
Affairs of the United Nations Secretariat (2013)24 26. A Primal
Need Agricultural Land Price Appreciation in Brazil, 2010-201370%
expansion in global food production will be required
(FAO)120100Other factors driving price increases include rising
costs of fertilizers and energy, the impact of climate change and
the rising biofuel demand80 (%)Forecasted 60% real increase in food
pricing99.6 72.671.9 63.070.6 62.160 40 20 0Source: Bank of America
Merrill Lynch25 27. Illustrious Investors get a Lamborghini
dealership in Oklahoma or in Nebraska because farmers are going to
be driving the Lamborghinis Jim Rogers Other investors George
Soros, key pension institutions such as TIAACREF, firms like
BlackRock, Morgan Stanley and large and influential sovereign
wealth funds such as the China Investment Corporation and Temasek
(Singapore)26 28. Recent Farmland Purchases in Brazil
InvestorOriginArea, ha.Use of FarmlandCresudArgentina175,000Cattle,
Crops, SugarcaneEl TejarArgentina220,000Cereals, OilseedsChongqing
Grain GroupChina200,000SoybeanPengxin GroupChina200,000Cotton,
SoybeanLouis
DreyfusFrance250,000SugarcaneAquilaGermany250,000Cattle, SugarShree
Renuka SugarsIndia133,000SugarcaneAdecoagroUS165,000Cattle, Coffee,
Grains, Soybean, SugarcaneTIAA-CREF Retirement Equity
FundUS424,000Soybean, SugarcaneTiba AgroUS320,000n/a 27 29. Best of
the BRICs More to offer than guns and oil unlike RUSSIA No
ethnic/religious tensions or hostile neighbors unlike INDIA A
democracy unlike CHINABRAZIL - Largest reserves of freshwater
globally, 329 million ha. of rich arable land and the largest
tropical forests responsible for generating 20% of the worlds
oxygen, set to be the worlds number one producer of food by 2020.28
30. Why Brazil (1) % of World Production From Brazil
010203040Orange Juice5060
57Coffee40Oranges35Soybean28Ethanol25Sugar24Cattle18Poultry16Beef&Veal16Iron
Ore14Bauxite14Cotton8Milk Crude Oil Source: Santander6 329 31. Why
Brazil (2) Global FDI Ranking, 20125th largest consumer market by
2020 4th largest global recipient of FDI in 2012 FX reserves
equivalent to the rest of the continent combinedUS$ Billion6th
largest global economy, 5th largest by 2015147USA China Hong Kong
Brazil UK France Singapore Australia Canada Russia Ireland India
Chile Luxembourg Belgium120 73 65 63 59 54 49 47 44 40 27 26 23 19
050100150200Source: United Nations Conference on Trade and
Development (UNCTAD)30 32. The Road to BrazilDiversificationModern
Portfolio TheoryLiquid Investment TheoryAgricultureBrazilAsset
Security and Profit Potential31 33. A Reversion to Mean32 34. The
Humble Coconut2 reasons it is of particular interest to us: 1.
2.All parts can be processes Current supply-demand imbalanceFastest
growing markets: Coconut Water Activated Carbon Coconut Oil
Biofuels 33 35. Coconuts in Brazil Coconut Yield by Country (000
hg/ha.) 120 Brazil100India Indonesia Philippines80Sri Lanka
Thailand60 40High levels of agrarian R&D in Brazil20 0Highest
yielding coconut producer globally34 36. Coconut Plantation Video
37. The Organic Potential Global Organic Food & Beverage market
size forecast at $105 billion in 2015, a doubling in 5 years
Organics already account for 4% of total US food sales and forecast
to grow by 14% between 2013-1836 38. Coconut Plantation Key
Financials Return on Investments between 1140% Projected IRR to
yield up to 18% over twenty years Option to purchase immediate
earnings stream at Fazenda Santa Rita37 39. The Attraction of Neem
The Tree of the 21st Century Indigenous to Asia Effective natural
bio-pesticide A non-synthetic method of disease and bacteria
suppression38 40. Neem Plantation Video 41. Neem A Weapon for the
Post-antibiotic Era A wholesale exodus out of antibiotic
development by Big Pharma. over the past 15 years Antibacterial New
Drug Approvals Number of Antibacterial New Drug Approvals18 16 16
14 14 12 10 10 876 4 4 2 2 0
1983-19871988-19921993-19971998-20022003-20072008-2012Source: FDA's
Center for Drug Evaluation and Research (CDER)40 42. Neem
Plantation Key Financials Return on Investments between 11-44%
Projected IRR to yield up to 20% over twenty years Crop care
included for the first five years41 43. The Importance of Asset
ChoiceTravelling from the US to China in 48 hours? However hard you
tried on your bicycle, you are just not going to get there. The
only guaranteed way is by jet plane. The same applies to
investments make sure you choose the right assets to get the job
done 42 44. Thank You For Your AttentionE/W:
[email protected] | www.liquid-unvestments.com UK OFFICE:
9th Floor, 1 Knightsbridge Green, London, SW1X 7QA BRAZIL OFFICE:
Av Santos Dumont 2828, Sala 1501, Aldeota, Fortaleza, 60150 - 162
UK+44 (0) 20 7084 7421 | USA +1 (347) 647 0127 | BRAZIL +55 (85)
3224 665943