Physical Gold Segregated Portfolio

Physical Gold Segregated Portfolio

LGIP Funds (Cayman) SPC

November 2020

The Manager

• Founded in 2007, LGIP is a FINMA-registered, asset manager based in Geneva

• LGIP manages USD 1,2B with a team of 17 investment professionals

• LGIP runs 6 funds and several managed accounts with common features:

- Systematic

- Target Volatility Approach

• Our strategies evolve in both the UCITS and the Offshore universes, always

providing the best liquidity terms

2

2007

LGIP

foundation

2008

Velocity launch

2010

FIA launch

2013

FINMA

regulation

2016

Systematic and

Gold launch

2017

AAA launch

2020

Physical Gold

launch

November 2020© LGIP – 2020 LGIP – Physical Gold

Executive Summary

FIA UCITS Fund (daily liquidity, Luxembourg domicile)

FIA (Fixed Income Allocator) fund offers active management capturing

superior risk adjusted returns in the global fixed income markets. The target

volatility of the fund is 3%, and the fund expects to have a long-term

annualized rate of return in excess of Libor +400bps. The FIA does not use

borrowing or leverage, its positions oscillate between 100% NAV long to flat to

30% short to flat, or anywhere in between those extremes depending on

market conditions. FIA uses a quantitative model to identify the short and

medium-term trends in the global fixed income markets. Investors use the FIA

as a cash, cash-plus, and low volatility fixed income position in their portfolios.

Velocity Series Fund (weekly liquidity, Cayman domicile)

Velocity is a trading and arbitrage hedge fund focused on market neutral

strategies primarily on the global equity markets. The blend of strategies inside

the fund offers equity style returns with 1/3 of the volatility risk

Systematic Series Fund (weekly liquidity, Cayman domicile)

The Systematic fund offers our long/short arbitrage strategies in leveraged and

non-leveraged forms. The fund is predominantly market and sector neutral,

taking advantage of carry opportunities and short-term mispricing in the global

equity markets

Physical Gold Fund (weekly liquidity, Cayman domicile)

The investment objective of the Physical Gold Fund is to hold an amount

closely equivalent to the totality of its assets in physical gold. There is a

guarantee of having the position backed by physical gold stored in a safe at

UBS, Switzerland. The fund has weekly liquidity, no lock-ups and no cost of

entry or exit, with potential delivery of the underlying physical gold position to

investors.

Gold Series Fund (weekly liquidity, Cayman domicile)

The Gold fund offers investors a unique way to invest in physical gold. Using a

quantitative overlay that increases or decreases exposure to the core

underlying holding of gold, the fund seeks to enhance upside and reduce

downside of a long-only position

Managed Accounts

These managed accounts are offering a blend of LGIP’s strategies targeting

specific levels of risk in order to achieve targeted returns defined by the client

Private Managed Accounts

The private managed accounts division of LGIP benefits from the

company’s expertise in asset management and blends its existing products in

a way that is matching the risk requirements of each individual investor

November 2020 3© LGIP – 2020 LGIP – Physical Gold

LGIP – Why we do what we do, the way we do it?

What’s the difference between wanting to perform, and wanting our clients to perform on

their investments with us?

You would think that they’re one and the same, but history has shown us time and time again that

they are in fact worlds apart. Some of the best performing assets lead to the greatest investor

losses due to their volatility and gut-wrenching drawdowns. In fact, the higher the performance

anticipation and volatility the more likely the investor losses.

4November 2020

LGIP – Why we do what we do, the way we do it?

So what does a manager need to do if the objective is to make money for investors?

1. Maintain consistent low volatility.

Not because volatility is the best measure of risk, but because investors react to volatility.

2. Limit and minimize drawdowns.

The lower the drawdowns of an investment, the lower the stress related to that

investment will be.

3. A penny earned during market stress is worth more than a penny earned during good times.

Why? Simply because investors are more likely to redeem during periods of stress, so might as well

have their money increasing in value at times when they need it the most.

4. Stay LIQUID!

It is impossible to manage the volatility of a portfolio to a constant volatility if the underlying assets

are illiquid. As the volatility of our positions continually changes, our exposure needs to continually

change as well.

5October 2018November 2020

Physical Gold Segregated Portfolio

November 2020 6

Physical Gold Segregated Portfolio – Main Characteristics

November 2020 7

• The Physical Gold Segregated Portfolio presents a cost effective, simple

and secured way to invest in Gold.

• Objectives : Physical Gold SP holds an amount closely equivalent to the

totality of its assets in physical gold in order to fully replicate the price of

Gold.

• The Gold bars are stored in UBS vaults in Zurich, Switzerland, segregated

from the custodian’s balance sheet and identified by their serial number.

• Physical Gold SP holdings are segregated and investors can redeem their

investment value in physical delivery.

Physical Gold Segregated Portfolio – Main Characteristics

November 2020 8

• Full Liquidity with potential delivery of the underlying

Physical Gold position to investors.

• Guarantee of having the position backed by

Physical Gold store in a safe at UBS.

• The possibility of owning Physical Gold in

a transferable security.

Physical Gold Segregated Portfolio – Why invest in Physical Gold ?

November 2020© LGIP – 2020 LGIP – Physical Gold 9

Gold is a hedge against Monetary Inflation

Gold may be a refuge when Central Bank’s largess will result in monetary inflation

and spiraling government and corporate debt.

It is unlikely that Central Banks stop their money printing habits after the COVID-

19 Crisis and politicians are increasingly referring to the MMT (Modern Monetary

Theory) to justify perpetual budget deficits.

Physical Gold offers and excellent store of value in monetary inflation results in

goods and services price inflation. It has proved its trustworthiness and

purchasing power for centuries and offers decent liquidity and portability.

With a relatively small allocation in Gold, it’s possible to counteract the potential

for a significant loss of wealth.



Gold is a Rare Asset

Global holdings are valued at USD 60 Trillion considering an annual Gold production

that roughly represents USD 100 Billion.

The entire amount of Gold ever mined represents 180’000 Tons or the entire volume

of an Olympic Swimming Pool with 6 meter depth.

Since the US housing crisis in 2008-09, there have been huge Physical Gold flows

from West to East mainly driven by central bank buying in China, India & Singapore.

China for example annually buys the equivalent of an annual world Gold mining

production.



Paper Gold is Flawed

Investing in ETFs or Futures gives exposure to Gold Prices but would prove an

ineffective hedge in case of a severe financial crisis.

Futures Exchanges have been running low on physical gold inventory which could

potentially cause serious issues in the event of a required physical settlement.

Gold ETF holdings are not insured or protected and cannot get redeemed in kind.

Physical Gold Segregated Portfolio – Summary

November 2020 12

Gold Since 1970 Data as of 30 November 2020

0

300

600

900

1200

1500

1800

2100

01.07.1970 01.07.1975 01.07.1980 01.07.1985 01.07.1990 01.07.1995 01.07.2000 01.07.2005 01.07.2010 01.07.2015 01.07.2020

XAU Curncy - Last Price 1776.95

Gold has an annualized performance of 6.65% in Dollars since

the end of the Bretton Woods system in March 1973

1970-1975 1975-1980 1980-1985 1985-1990 1990-1995 1995-2000 2000-2005 2005-2010 2010-2015 2015-2020

Summary of terms

13

Commodity / Physical goldStrategy

May 15th, 2020Inception date

LGIP S.A. (Geneva)Investment manager

(IM)

Cayman IslandsFund’s domicile

Swiss Financial Market Supervisory Authority (FINMA)

IM’s regulation

UBS Switzerland AGPayment bank

UBS Switzerland AGCustodian

Apex Fund Services (Neitherlands) BVAdministrator

Deloitte (Cayman Islands)Auditors

Currency

USD 100’000 or equivalentMin. subscription

USD 50’000 or equivalentAdd. Subscription

weekly, 2 days noticeSubscription

weekly, 3 days noticeRedemption

noneLock up

noneRedemption fee

noSubscription IN-KIND

yesRedemption IN-KIND

0.5% per annum (capped)Management fee

noIncentive fee

Class A7 (USD) KYG5478A1444

Class Inst. (USD) KYG5478A1691High watermark noISIN

USD

Bloomberg Ticker Class A7 (USD) CSFPGDA KY Equity

Class Inst. (USD) CSFPGDI KY Equity

November 2020© LGIP – 2020 LGIP – Physical Gold

LGIP Team

Trading

Marc Sormani

Andrew Moed

Ilias El Bahraoui

Peter Mezzomo

Research

Steven Markovitz

Tal Shir

Operations

Petar Petrov

Nikolay Ivanov

Venelina Venelinova

Delizia Roy

Risk management

Christina Riva

Compliance

François Larrey

Stéphane Hofer

Distributional activities & Legal matters

Ekaterina Shukhobodskaia

Accounting & Admin

Salvador Vila

Private managed accounts

Ozgen Etker

Emil Ortaeskinazi

Ronen Lind

Serhan Karaahmet

Demir Habib

November 2020 14

The Team – Biographies of investment team (1/3)

November 2020 15

CEO

Guner Turkmen Guner started his career in 1992 trading financial futures. In 1995 he joined ED & F Man International in New York. As

Vice President at Man, Guner ran an institutional brokerage desk with a focus on non US Financial Institutions, where he advised on

portfolio allocations to CTA's and other trading advisors. During his career at Man, he was registered with both the N.A.S.D. and the

N.F.A. From 2000 on he was Executive Director of Cougar Asset Management, an independent hedge fund manager. In 2005 he joined

Frick Capital as Director and co-portfolio manager and remained there until the end of 2006. He then went on to co-found Union Capital

Group and was in charge of asset management through 2011. Guner has extensive experience in trading, asset management and asset

allocation. He is the founder and an Executive Director of LGIP S.A.

Research

Steven Markovitz Steve has 30 years of experience in software engineering, analysis and trading. He spent most of his career in New

York, working with companies such as Knight Ridder, Bankers Trust, Deutsche Bank and Millennium Partners. At Millennium, a New

York based hedge fund, he managed in excess of $1B in several arbitrage strategies. Steve is head of research for LGIP SA. and holds

a BA in chemistry and MBA from Columbia University.

Tal Shir Tal holds a BSc in Physics from Tel Aviv University, has obtained his MSc in Finance and Risk Management from HEC

Lausanne and is certified Financial Risk Manager from GARP. Having 5 year experience in Suisse banking sector (Heritage Banque,

Edmond de Rothschild SA and Swissquote Bank) as hedge fund analyst, risk manager and systematic strategies researcher, Tal joined

LGIP’ research group in 2010. His main tasks are developing trading strategies, upgrading the risk management framework for the

funds as well as developing IT systems. Tal developed successfully Systematic trading systems and is supporting the alpha generation

process.

The Team – Biographies of investment team (2/3)

Trading

Marc Sormani Marc joined LGIP in April 2008. Prior to that he worked more than 35 years in the Banking and Hedge Fund industry.

After holding various trading position in large Swiss and European banks for several years, he joined Lombard Odier & Co in 1988 as

Head of FX trading before being appointed Head of FX and Money Market till 2004. Additionally he launched and managed an

Investment Fund from 2005 to 2006. Besides holding a Certified European Financial Analyst since 1994, Marc acts as an expert to the

SFAA (Swiss Financial Analyst Association).

Andrew Moed Andrew joined LGIP in February 2020. He brings over 25 years of portfolio management and trading experience. The

early part of his career was spent in New York working for companies such as Fidelity and Gruss & Co. More recently he has been

trading corporate credit for a London based family office. Andrew holds a BS in Finance from the University of Florida. His focus at LGIP

is credit trading.

Ilias El Bahraoui Ilias started his career in 2007 at AXA-IM before moving in 2008 to Société Générale Bank in Paris within the

quantitative equity trading desk of the bank. In 2009 he joined Union Capital Group in Geneva where he was in charge of developing

options trading strategies based on stochastic and statistical models. In April 2010 Ilias joined LGIP as Portfolio Manager and trader. In

November 2010 he was appointed Portfolio Manager at Capital Strategy Funds Sicav plc. He holds a Bachelor in science and a master

degree major in financial mathematics.

Peter Mezzomo Peter joined LGIP in May 2017 as a Junior Trader and Researcher. He holds a BSc in Engineering from Durham

University, and has obtained his MSc in Finance from HEC Lausanne. His main tasks include supporting trading and strategy research.

Risk management

Christina Riva Christina has over 20 years of experience as a senior manager in banking and finance, with particular focus on

organisation, regulatory and risk issues. Prior to joining LGIP, Christina was Secretary General of EIM. S.A., a Swiss Asset Manager

specialized in delegated investment management, with supervisory responsibility for operations, compliance, regulatory and risk

management. She holds a Master in Economics from the University of Geneva.

November 2020 16

The Team – Biographies of key personnel (3/3)

Operations

Petar Petrov Petar joined LGIP in December 2017 to deal with back office operations processes. Petar holds a BSc and a MSc in

Finance from UNWE Sofia, and is currently pursuing the CFA. He started his career at Apex Fund Services in Sofia, Bulgaria, where

he spent over 6 years in administration of onshore and offshore funds. Petar worked a year for the Intertrust Group in Luxembourg,

within the capital market team, handling companies’ securitization.

Nikolay Ivanov Nikolay joined LGIP in November 2019 to deal with back office operations processes. He holds a Bachelor's degree in

Business Administration and Aviation and a Master’s degree in Aeronautical engineering. He started his career at Forex Capital

Market in Sofia, Bulgaria, where he spent over 3 years in the professional operations team dealing with institutional clients and

brokers. Nikolay worked 4 years for State Street Bank of Luxembourg in the shareholders tax department and project operations

department, where he was reviewing and verifying taxes and leading different migration projects.

Venelina Venelinova Venelina joined LGIP in March 2020 to deal with back office operations processes. Venelina holds a Bachelor's

degree in Business Economics and Commerce. She started her career in the Northern Europe’s leading precious metal dealer TavexGold & Exchange at their office in Sofia, Bulgaria. She spent 6 years within the company dealing with physical precious metals,

trading foreign exchange and team management.

Delizia Roy Delizia Roy joined LGIP in June 2020 to deal with back office operations processes. She holds a Bachelor's degree in

Economics, a Master’s degree in Market Finance and is currently pursuing the CFA. She started her career at AXA Investment

Managers in London, where she spent over 3 years within the Fixed Income Portfolio Controller and Client Relationship Manager

teams. She also worked at Amundi Asset Management in London as a Portfolio Controller to offer clients reliable services for FI,

Equity and Multi-Asset funds concerning valorisations, cash management and reports.

November 2020 17

Disclaimer

18

This document, which is being provided on a confidential basis, shall not constitute an offer to sell or the solicitation of any offer to buy an interest in LGIP Funds(Cayman) – Physical Gold SP which may only be made at the time a qualified offeree receives an offering memorandum (OM), which contains important information(including investment objective, policies, risk factors, fees, tax implications and relevant qualifications) and only in those jurisdictions where permitted by law. In the caseof any inconsistency between the descriptions or terms in this document and the OM, the OM shall control. These securities shall not be offered or sold in any jurisdictionin which such offer, solicitation or sale would be unlawful until the requirements of the laws of such jurisdiction have been satisfied. This document is not intended forpublic use or distribution. While all the information prepared in this document is believed to be accurate, LGIP makes no express warranty as to the completeness oraccuracy of such information, nor can it accept responsibility for errors appearing in the document. More complete information about LGIP Funds (Cayman) – PhysicalGold SP is available upon request.

LGIP Funds (Cayman) – Physical Gold SP is speculative and involves a high degree of risk. The underlying hedge funds may employ leverage which can makeinvestment performance volatile. Opportunities for redemption and transferability are restricted so Fund investors may not have access to capital when it is needed. Thereis no secondary market for interests in LGIP Funds (Cayman) and none is expected to develop. An investor should not invest in the Fund unless it is prepared to lose allor a substantial portion of its investment. There is no guarantee that the investment objective will be achieved. Moreover, the past performance of the fund or theinvestment team or of the underlying funds or manager should not be construed as an indicator of future performance. Any projections, market outlooks or estimates inthis document are forward‐looking statements and are based upon certain assumptions. Other events which were not considered may occur and may significantly affectthe returns or performance of the fund. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur.

The information provided herein, including, without limitation investment strategies, investment restrictions and parameters, and investment and other personnel, may bemodified, terminated or supplemented at any time without further notice in a manner which LGIP believes it is consistent with its overall investment objectives.

The Fund has appointed ACOLIN Fund Services AG, succursale Genève, 6 cours de Rive, 1204 Geneva, Switzerland, as its Swiss Representative. Banque HeritageSA, 61 route de Chêne, CH-1208 Geneva, Switzerland is the Swiss Paying Agent. In Switzerland shares shall be distributed exclusively to qualified investors. The fundoffering documents, articles of association and audited financial statements can be obtained free of charge from the Representative. The place of performance withrespect to shares distributed in or from Switzerland is the registered office of the Representative.

This document contains information that is proprietary and confidential.

LGIPLake Geneva Investment Partners S.A.Cours de Rive 11, 1204 Geneva, Switzerland+41 22 707 49 [email protected] www.lgip.ch

November 2020

Physical Gold Segregated Portfolio

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