SlideShare a Scribd company logo
1 of 27
Download to read offline
Investment Manager: Harvest Financial Services Ltd,
                                                    Regulated by the Cyprus Securities and Exchange Commission,
                                               License Number 021/03 –Member of the Investor Protection Fund (TAE),
                                          Harvest Stargate Fund Ltd: Registered and Regulated by the Central Bank of Cyprus
                                            As an international Collective Investment Scheme Law No 47 (1) of 1999 (ICIS).


                                                                      OCTOBER 2012 (V4EN)

CONTACT: Telephone + 357 22 552800 andy@harvestgroup.com.cy
This document is for informational purposes only. This document does not constitute an offer, an invitation to offer,
or a recommendation to enter into any transaction, nor does it constitute investment advice. This material does not constitute a solicitation to buy or sell securities in any jurisdiction
 in which such a solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation,
Executive Summary
                 Fund Structure Indicative Summary Terms

Final Maturity            •   Open Ended investments Unlimited holding period. Minimum Holding two Years.
Currency                  •   EUR or currency equivalent on the subscription date.
Principal Protection      •   Some underline assets bear the principal protection of the issuer of the underline
Provider                      assets. The fund therefore offers soft capital protection only on selected underline
                              assets that bare issuers guarantees.
Form                      •   Shares – ICIS UNITS
Notional                  •   [●] MM, minimum 1MM
Issue Price               •   NAV
Redemption Amount         •   The shares will be redeemed on the NAV:
                          •   The Shares may be redeemed prior to that on a monthly basis after year 2 .
                          •   Share Price (t) – Early Redemption Premium, whereby the Early Redemption
                              Premium is initially 4%, and then decreasing by 1% on each anniversary of the Issue
                              Date, until reaching 0%
Additional Investments    •   Investors will be able to subscribe additional amounts in the fund on a monthly
                              basis, with rounds of 10,000 EURO
Initial Allocation into   •   The Initial Allocation of the Issuer to the Underlying Fund will be equal to 100%;
the Underlying Fund           thereafter the Trading Administrator will adjust the allocation between the assets of
                              the Issuer in accordance with the Rebalancing Rules.
Investment Manager        •   Harvest Financial Services Ltd -
Transaction Fees
                          •   Investment Manager Fees: 2.0% annual management fees on NAV and an incentive –
                              performance fee of 20% of annual returns in excess of 10%
                                                                                                                 2
Risk Statements


Investment Horizon:        The fund has a minimum holding period of 2 years with unlimited duration. Investors must maintain
                           capital for this period.
Non-Reliance on Historic   Past performance does not guarantee future performance; investment in the fund should be based upon
Returns:                   a complete assessment of their terms.
Limitations of Simulated   Certain presentations and back-testing or other statistical analysis materials that may have been
Returns:                   provided in connection with explanations of the mechanics and/or potential returns of the Notes use pro
                           forma analysis and hypothetical circumstances to estimate how the Reference Portfolio may have
                           performed prior to its actual existence. Harvest provides no assurance or guarantee that the Notes will
                           operate or would have operated in the past in a manner consistent with those materials. As such, any
                           historical returns projected in such material, or any hypothetical simulations based on this analysis,
                           provided in relation to the fund may not reflect the performance of, and are no guarantee or assurance
                           in respect of the performance or returns of, the fund.
Non-Linear Returns:        Absent the occurrence of a Knock Out, the return on the Notes will be based on the performance of the
                           Reference Portfolio over time. As such it is not possible to predict the return on the fund simply by
                           reference to the initial and final values of the Reference Portfolio. The application of the Fund’s
                           Mechanics may result in an opportunity cost when the return on the fund is compared to either a direct
                           investment in the Reference Portfolio or as the underline assets principal protected investment where
                           the exposure to the Reference Portfolio is achieved through a conventional call option issued by the
                           product providers.
Clean Up Event:            If there is a significant reduction in either the value of the Reference Portfolio or, shortly after issuance
                           of the fund, a rapid decline in interest rates, a Clean Up Event may occur. Under both such
                           circumstances, the return on the fund will cease to offer any potential capital gain as a function of the
                           future performance of the Underlying Fund and will effectively become that of the remaining asset
                           classes.
Credit Risk:               The value of the fund may decline dramatically based on market conditions. Investors understand that
                           there are risks involved and capital may decline due to market conditions and valuations. Past
                           performance is not guaranteed for future returns.
Disclosure of Investor     It may be required for purposes of the Investment Manager’s compliance procedures to disclose to the
Identity:                  name of the initial investor in the fund.

                                                                                                      LIMITED OFFER

                                                                                                                                      3
Table of Contents


Benefits of the Harvest Stargate Fund Ltd,
Summary: A Multi-Asset Fund offering several key Advantages.


The Benefit of Investing in International Collective Investment Funds (ICIS):
Given the recent volatility in stock markets worldwide, we wish to give investors an update on the benefits of holding
ICIS, as part of a balanced and diversified portfolio.

The Harvest Stargate Fund Ltd, offers individual investors access to a unique multi-asset, multi manager investment
methodology usually only used by sophisticated institutional investors. The fund’s objective is to deliver returns in
excess of those offered by traditional investment funds, by the careful and active allocation of the portfolio across
three key asset classes, combined with the active selection of the best performing underline fund managers. The fund
provides diversification-the foundation of a successful portfolio. The fund invests in three strategies each managed
by a leading specialist manager.

Investing in just one asset class carries with it a higher degree of risk and the Harvest Stargate Fund Ltd adopts an
active asset allocation policy that ensures the fund invests across a spread of asset classes that offer the best risk
adjusted return. In addition, Harvest Stargate Fund Ltd and its advisors, Harvest Financial Services Ltd, aim to select
the best performing funds for each asset class which are then analyzed on an ongoing basis.

                                  NEW ISSUE OCTOBER 2012 – LIMITED OFFERING




                                                                                                                  4
Introduction


The       Harvest Financial Services Ltd, is a leading investment management company, based in Nicosia
Manager   Cyprus. Harvest Financial Services Ltd was established in March 2000 by Harvest Advisors Ltd, as
          a spin-off from Harvest Financial Group. Harvest Financial Services Ltd, is regulated by the Cyprus
          Securities & Exchange Commission with license number 021/03.


          Harvest Financial Services Ltd provides a wide range of mutual funds, hedge funds and portfolio
          management advisory services. Its investment team has over 14 years experience in:
          Tailored portfolio construction- the construction and management of diversified, high quality fund
          portfolios, tailored to the needs of private and institutional clients.
          Distribution of Hedge Funds- the distribution of a wide range of fund of hedge fund products for
          both the institutional and retail markets.
          Structured Products – the structuring and management of products linked to hedge funds.
          Traditional Investment portfolio Management – The construction and management of traditional,
          predominantly long / short portfolios.




                                                                                                           5
HARVEST STARGATE FUND LTD- BENEFITS




RISK MANAGEMENT PERFORMANCE - RETURN




 RESEARCH   COMPANY SELECTION   RISK MANAGEMENT   COMPLIANCE
                                                   Reporting




                                                               6
Harvest Financial Services Ltd Manager’s Style


Integrated Fund Management




                          Competitive Fund
                            Management




                                                         7
THE IMPORTANCE OF ASSET CLASSES

The    The most popular traditional asset classes are cash, bonds, equities, real estate,
Fund   futures, forex and energy hedge funds. Harvest Stargate Fund Ltd, combines these
       asset classes, with the exception of cash, in order to create the next generation of
       multi asset Global Macro investments.
       The different asset classes will perform their best at different stages of a normal
       investment cycle. When building a portfolio, it is therefore essential that it should not
       only be spread between different asset classes, but should also make an allocation to
       the asset class that is likely to provide the best return in the following year. Whilst
       equities may be rising, bonds or property could be falling, and when equities fall,
       hedge funds could perform well.
       The Stargate Fund is an aggressive market neutral fund with a return objective of 10-
       15% annually with a standard deviation of approximately 4%-7%. It allocates capital
       among managers who have stated investment objective of returns in excess of 15%
       per annum. It is expected that the fund will have higher than average volatility but
       through diversification of strategies can mitigate drawdown's during bear market
       environments. In positive market periods, the fund should produce returns above
       market benchmarks.


                                                    HIGH RETURNS POTENTIAL


                                                                                          8
INVESTMENT FOCUS GEOGRAPHIC AREA




Scientists recently discovered a massive offshore reserve of an estimated 122 trillion cubic feet of
natural gas called the Levant Basin Province. While it is one of the world's richest natural gas reserves,
the Levant Basin Province is located between countries with endless amounts of mutual hatred. It
straddles the sea borders of Israel, Lebanon, Palestine, the Republic of Cyprus. The largest section
discovered so far, the Leviathan gas field, is believed to possibly contain, alongside natural gas, 4.2
billion barrels of oil. Leviathan straddles the Israeli-Lebanese maritime border.




                                                                                                        9
Example of the investment Strategy: Zero Coupon +Direct
                        Investment 1/3 Strategy

   • The standard way to create capital protected notes for a variety of underlying asset types

   • The initial investment strategy of the Harvest Stargate Fund Ltd is allocated (1/3 of its assets) into or through structured funds
     and High Yield Treasuries and Bonds:

         – Buying a zero coupon bond that will mature at 100 at the maturity of the transaction [cost of zero coupon bond = 75].
           Buying the Underlying Fund (or an option on the Fund if such can be created) using [100% - price of zero coupon = 25].

                                                                                                               RISKY:
                                                                                                               Payoff
                                                                                           Payoff              dependent on
                                                                                         e.g. at €50           Underlying Fund

                                 €25                                                                                               Redemption
                           Underlying Fund                                                                                         Of €100+50
                                                                                           Zero
                                                                                          Coupon               RISKLESS:
                                                                                           Bond                Zero coupon
                                €75
€100 invested                                                                             Matures              Bond will mature
                               Price of
                                                                                          At €100              at €100, to repay
                                Zero
                                                                                                               Principal in full
                               Coupon
                                Bond



                               T=0                                                   Maturity e.g.5- 7 years

                 •    This structure is the oldest and simplest principal protection strategy



                       –    TOTAL RETURN OF UNDERLYING FUND: 50/25 = 200.0%
                       –    TOTAL RETURN OF INVESTMENT: 150/100 = 150.0%

                                                                                                                                    10
Fund Structure
               1/3 of the fund’s assets are investment into protected asset classes with
               100% Initial Participation or Real Estate Assets.

• Part Portfolio Capital protection is composed of 2 parts:

     1. A dynamic rebalancing between an investment into the Underlying Fund and a zero coupon bond.
          Objective: to ensure that funds are invested in the Underlying Fund for the maximum time possible
          Through the fund structure it is possible to capture 100% of the performance of the Underlying Fund
     2. An unconditional put at 100% at maturity
          To ensure full repayment of 1/3 capital, in case the dynamic rebalancing is insufficient
                                                                                                            Part 2:
                                                                                                           Put Option


                                           Investment           SPV
                                             € 100                                                      ISSUER
                                                                                      Put Option
                         Investor                                                at Guaranteed Amount
                                                                 (Issuer)
                                                                                      at Maturity
                                              Fund
                                              Units

                                                           Hellenic Bank PLC
                                                              Administrator

         Part 1:
                                              € 100 initially               € 0 initially
 HFS as the fund manager
Determines the proportion                                                               Zero Coupon Bond
                                    Underlying Fund
                                                         Dynamic Rebalancing                (Riskless)
    of Assets invested
in the Underlying Fund or
    the 0-Coupon Bond
   Or Real Estate Assets
                                                                                                                        11
Successful Investment Strategy

•   The Harvest Stargate Fund Ltd, offers individual investors access to unique multi-asset, multi manager investment
    strategy usually only used by sophisticated institutional investors and hedge fund managers. The principal questions
    faced by any private investor today are: how to allocate their investable funds between the various asset classes
    available; how would this asset allocation should be regularly reviewed, and; how they can be certain that they’re in
    the best possible funds run by the best possible fund managers. The Harvest Stargate fund’s objective is to deliver
    returns in excess of those offered by traditional investment funds, by the careful and active allocation of the portfolio
    across the five key asset classes-bonds, equities, property, capital protected funds and commodities-combined with
    the active selection of the best performing underlying fund managers.


                                                      •    Primary Fund strategy focused on undervalued
              Equity Long/Short                            equities in Europe and US either directly or through
                                                           selected highly rated mutual funds. Investments in
                                                           the CY and GR markets will take an opportunistic
                                                           approach based on fundamental catalysts that will
                                                           yield capital gains for the fund.


                                                      •     Secondary strategy overlaying portfolio focused on
               Capital Protected                            different products. The addition of capital protected
                                                            notes as the strategy yields stability and earns
                                                            possible coupons for the fund.



                                                     •     Tertiary strategy overlaying portfolio focused on
                                                           currency management and occasional non-equity
              Global Macro/Real                            opportunities such as bonds, forex, commodities and
                    Estate                                 real estate funds and property assets.1/3 of the
                                                           Funds assets are allocated into this dynamic strategy
                                                           which offers stability and growth.




                                                                                                                                12
Experienced and Accessible Investment Manager


•   Founded in Cyprus in 1998 (EPEY since 2003)

     –   Harvest Financial Services Limited (“HFS”) is a Cyprus based fund
         management group, providing discretionary portfolio management
         services to high net worth individuals, institutions and mutual funds
         both in Cyprus and abroad (www.harvestgroup.com.cy)

•   Head Office in Nicosia
     – Key management and staff nearby and available to investors to
        answers questions regarding investment strategy, performance,
        Harvest Stargate Fund Ltd mechanics and administration.

•   Regulated by the Cyprus Securities and Exchange Commission License
    Number 021/03

•   Affiliated with some of the World’s most prestigious investment service
    Providers




                                                                                 13
The Fund’s Asset Allocation Process
Financial Instrument’s




                          Equities

                                         Futures/Options
      GOLD
                      Fund’s Underline
                      Strategies
                                         Energy Focus
                                              60%
   ENERGY
   EAST MED
   RUSSIA             Real Estate




                                 GLOBAL ENERGY DIVERSIFICATION


                                                           14
Primary Strategy: FOCUS ON NATURAL GAS COMPANIES


 •   Primary Strategy: FOCUS ON ENERGY-NATURAL GAS AND OIL (60% ASSET ALLOCATION)

 •   The First and core strategy seeks to buy undervalued equities either on an individual or sector basis and hold
     them for capital appreciation and income for the medium term. The Fund will engage models prior in investing
     in speculative investments and simulate possible return vs. risk prior of entering in such transactions.

 •   The strategy also seeks to identify major changes of direction in key markets through independent analysis of
     relevant macro-economic factors, trend developments and investor sentiment. Harvest seeks to vary overall
     market exposure accordingly, either through further allocations/reductions to existing holdings or
     investment/divestments in market heavy weights. The strategy does not aim at a particular geographical
     exposure but rather is driven by a sector approach. Historically, Europe and US have provided the main
     holdings for the strategy, but Israel and Russia are currently in focus.




                                                               Other 10%
                                                                                      US 20%
                                                       UK 5%


                                          Greece 15%


                                                                                               Continental Europe
                                                                                                      20%
                                                Cyprus 15%


                                                                                                                    – Global gas use over
                                                                           South East Europe
                                                                                  15%


                                                                                                                        next 30 years
                                                                                                                           (bcm):

                                       Tamar and Leviathan: the two biggest                                            􀂙   2000 - 2,527
                                   deep-water Gas discoveries of the past 10 years                                     􀂙   2010 - 3,377
                                                                                                                       􀂙   2020 - 4,254
                                                                                                                       􀂙   2030 - 5,047
EAST MED INVESTMENT OPPORTUNITIES
                                                                                                                                            15
MED ENERGY Primary Strategy: Equities Long / Short / Hedged


               GLOBAL MACRO PRIMARY STRATEGY 60% Weight of Portfolio (FOCUS ON MED ENERGY)

•   Delek Energy, Delek Drilling and Avner, Nobel Energy, Lukoil, initiating coverage on the fund
    diversification policy. Triple digit upside potential of an oil discovery. Symbols: (DELKG.TA),
    (AVNRP.TA), (DEDRP.TA), (DLEN.TA), (NBL. NYSE), (LUKOIL. DR) (CUSIP 677862104), MICEX
    (Moscow), Gazprom (OGZPY), TOTAL OIL (TOT.NYSE), (GAS.CSE).

•   The value of the Levithan, Tamar, and the Cyprus Aphrodite Reserves (12) can be derived from two sources: The
    value of the natural gas reserves and the value of the oil potential. The current share prices do not reflect value of oil
    potential. Ratio share price partially reflects an oil discovery, highest upside potential from an oil discovery. Levithan oil
    results likely in early 2012. US-based Noble Energy has discovered gas in Block 12 of Cyprus’ Exclusive Economic
    Zone (EEZ) and the reserve is thought to be 30-40% higher than estimates. Tamar was discovered in 2009 and holds
    an estimated 8.7 tcf (246 bcm) of natural gas. It is expected to come on-stream in 2013 and investment is estimated at
    $4 bln. Peak production for the first phase is targeted at 1.0-1.2 bln cfd. Leviathan was discovered in December 2010
    with reserves estimated at 16 tcf (453 bcm). It is estimated its production life would be 2017-48 with gas sold from two
    LNG trains, each with a capacity of 7.5 mln tons/year. The first would come on-stream in 2017, the second in 2020.
    Total development costs would amount to $14 bln. It forecasts that 75% of the LNG would be shipped to Europe and
    the remaining 25% to Asia.




                                                                                                                         16
INDUSTRY GROWTH LNG



                       World LNG Production May Double by 2016

                                     35                                   Peru
                                                                          Malaysia
                                     30
                                                                          Indonesia
                                                                          Brunei
                                     25
                                                                          Australia
                                     20
                           Bcf/day




                                                                          Nigeria
                                                                          Yemen
                                     15
                                                                          UAE
                                                                          Oman
                                     10
                                                                          Qatar
                                      5                                   Egypt
                                                                          Algeria
                                      -
                                                                          Trinidad
                                       2007   2009   2011   2013   2015




LNG hub in Cyprus seems most likely:

Cyprus seems to be gaining popularity as a potential hub for a future LNG facility that would help pump natural
gas upstream from the Israeli and adjacent Cypriot offshore fields and use the island to transport the product to
customers. Two reports have cited the current geopolitical climate in the Middle East and North Africa as
reinforcing the case for Israeli gas, while looking at Cyprus as an alternative solution to lengthy and politically
sensitive pipelines in other countries. Recent natural gas discoveries halfway between Cyprus and Israel at the
Tamar and Leviathan fields estimates gas reserves at 25 tr. cubic feet (705 bln cu.m.), enough to meet domestic
demand for several decades, and enough to transform Israel into an energy exporter, the Middle East Economic
Survey.
                                                                                                              17
INDUSTRY FOCUS – RECENT DEVELOPMENTS



    “With the increasing financial burdens clouding Europe's future, it is crucial to ascertain how we can
explore new opportunities to gauge how the new discoveries will help pave the way out of an economic
crisis and lead to forming new business alliances, shape difficult strategic relations and of course
determine how new energy will bring about a wealth of positive change in old waters”.

•Cypriot minister: Block 12 gas production by 2017
•Block 12, owned 70% by Noble Energy and 30% by Delek, has an estimated 8 trillion+ cubic feet of gas, just
under half the size of the nearby Israeli Leviathan field.

•Cypriot Minister of Commerce, Industry and Tourism Mr. Neoklis Sylikiotis says that Noble Energy Inc. (NYSE:
NBL) plans to begin a second round of drilling at Block 12 in 2013, begin production by 2017, and begin exports
by 2019. Noble Energy owns 70% of Block 12, and Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP
(TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15%. Block 12 has an estimated 8 trillion cubic
feet of gas, just under half the size of the nearby Israeli field, Leviathan, owned by the same companies together
with Ratio Oil Exploration (1992) LP (TASE:RATI.L)

•Mr. N Sylikiotis added that Cyprus expects to earn €300 million from its offshore gas and oil concessions.
•According to the "Cyprus Mail" today, "In the government gazette edition of August 17, the US firm invited bids for two
separate contracts which, taken jointly, suggest that it is pressing forward with the natural gas field - approximately nine
months after it announced a significant find there." It adds, "Subsea testing costs around US$350 million. Analysts say
the total tab for developing the Block 12 prospect, including all the facilities for subsea testing as well as the pipelines,
could come to $3.5 billion."
•Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2012

                                                                                                                        18
INTERNATIONAL INTEREST



•   Novatek Shows Interest in Cyprus Offshore Oil, Gas Licenses

•   By Stelios Orphanides and Anna Shiryaevskaya - Apr 5, 2012 6:17 PM GMT+0300
•   OAO Novatek (NVTK), Russia’s second-biggest natural-gas producer, is looking at bidding for
    licenses to explore off Cyprus after the island nation’s first gas discovery attracted global
    companies.
•   Leonid Mikhelson, Novatek’s billionaire chief executive officer, flew to Cyprus for talks yesterday,
    Neoklis Sylikiotis, Cyprus’ commerce and industry minister, told reporters in Nicosia today. The
    country is accepting applications for a second licensing round until May 11.
•   Houston-based Noble Energy Inc. (NBL) reported the first discovery off Cyprus’s coast in
    December, with results from the Cyprus A-1 well indicating as much as 8 trillion cubic feet of gas.
    The find prompted “a lot of interest” in the area, Sylikiotis said.
•   Cypriot President Demetris Christofias also met with Mikhelson and a Russian delegation including
    OAO Gazprombank Chairman Andrei Akimov, said Phidias Pilides, the chairman of the Cyprus
    Chamber of Commerce and Industry.
•   Novatek’s press service confirmed the company is considering participating in the announced
    tenders.
•   The Siberian company’s natural-gas production and sales are now limited to Russia where state-
    run OAO Gazprom (GAZP), the world’s biggest producer, controls the pipeline network and
    exports. Novatek ended a concession agreement last year to its only exploration project outside
    Russia, the El-Arish project in Egypt, after drilling didn’t find commercial prospects.
                                                                                                     19
INTERNATIONAL INTEREST – FUTURE DEVELOPMENTS

•   Gas Liquefaction

•   The Russian gas producer may invest in Cyprus’s gas industry, including gas production, transport
    and processing, if it is successful in the licensing round, Pilides said by phone from Nicosia.
    Liquefaction and petrochemical projects may follow, he said. Chinese companies have already
    submitted proposals for construction of a gas facility, Sylikiotis said last week.




•   Cyprus must hold a “considerable” stake in a proposed liquefaction plant to export its gas, Sylikiotis
    said on March 28. As construction costs will be “extremely high,” Cyprus is seeking “multiparty
    cooperation with the involvement of other important countries and energy giants,” he said at the
    time.
                                                                                                      20
INTERNATIONAL INTEREST – KEY PLAYERS


•   Israel Opportunity lists unit on Cypriot Stock Exchange
•   Cyprus Opportunity and Norway's AGR are bidding for two Cypriot offshore exploration licenses.

•   22 July 12, Amiram Barkat

•   Cyprus Opportunity Energy plc (CSE: GAS), a subsidiary of Israel Opportunity - Oil and Gas Exploration Ltd. listed its shares
    for trading on the Cyprus Stock Exchange last week, at a market value of €14 million. Sources inform ''Globes'' that Cyprus
    Opportunity plans to hold a public offering in 2013. It is a sister company of Israel Opportunity Energy Resources LP
    (TASE: ISOP.L). Cyprus Opportunity is controlled by Israeli, Norwegian, and Cypriot shareholders. The Israeli shareholders
    are Rony Halman and Uri Aldubi, the general partners of Israel Opportunity. The Norwegian shareholders are the owners of
    AGR Group Inc., which is jointly bidding with Cyprus Opportunity for two of the offshore exploration licenses that the Cypriot
    government is offering - Block 2 and Block 8.
•   The two companies submitted their bids on May 11, as part of the 2nd Licensing Round tender for 12 offshore licenses.
    Cyprus Opportunity acquired 2D seismic data on which it has already performed preliminary analysis as part of its business
    strategy. The Cypriot government is due to publish the results of the tender in November. Cyprus Opportunity says that even if
    it does not win in the tender, it will continue to operate in the Cypriot offshore oil and gas exploration business through joint
    ventures with third parties.
•   Israel Opportunity owns 5-10% of the five of the deep-water Pelagic licenses - Aditya, Ishai, Lela, Yahav, and Yoad - covering
    500,000 acres 170 west of Haifa, between Leviathan's Ratio Yam and Block 12, which includes the Aphrodite structure, in
    Cyprus's exclusive economic zone (EEZ). Israel Opportunity owns 10% of the licenses, Beny Steinmetz and Teddy Sagi each
    own 42.5%, and AGR owns 5%.
•   Cyprus says that Cyprus Opportunity is the first oil and gas exploration company to list on the stock exchange. The Cyprus
    Stock Exchange is still recovering from a corruption and insider trading scandal from almost ten years ago.
•   25 consortia have filed 15 bids for the 12 licenses. Industry sources believe that the size of the signature fee that the bidders
    will offer the Cypriot government will be an important factor in selecting the winners. The Cypriot government and the gas
    developers will sign production sharing contracts.
•   Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2012

                                                                                                                                21
INDUSTRY FOCUS – REGIONAL EFFECTS


•   Shekel appreciation and “Dutch disease” to be mitigated through a SWF

    With Israel’s current account surplus likely to get even bigger in the future, concerns have been
    raised about “Dutch disease”, i.e. a large appreciation of the shekel damaging the competitiveness
    of Israel’s non-energy exports. While further shekel appreciation appears very likely, we think the
    extent of appreciation can be reduced through the establishment and careful management of a
    SWF that would help to sterilize a large part of the natural gas-related FX inflows.

•   The real game-changer could be oil

    Geological tests suggest a possibility that, in addition to natural gas, Israel might also find sizeable
    quantities of offshore oil. While the ‘probability of success’ is currently considered to be low, our
    calculations suggest that, in the event of success, oil could potentially deliver a boost to GDP
    growth, the budget and the external balance that might potentially be even bigger than the impact
    from natural gas. This would also imply a larger appreciation potential for the shekel and an even
    greater requirement to manage the resulting macroeconomic challenges through a carefully
    managed sovereign wealth fund.

           More meaningful results of geological tests on oil are expected in late 2013.



                                                                                                        22
EAST MED DEVELOPMENTS


•   The east Mediterranean island is working with Israel, 300 miles (480 kilometers)
    south across the sea, on plans to build a pipeline to link their gas fields before
    the fuel is liquefied for export to Europe or Asia, Israeli Prime Minister Benjamin
    Netanyahu said Feb. 16. 2012




                                                                                          23
Geographic Map


Source: Delek Energy




                       24
Important Legal Note

•   The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer
    to buy any securities relating to any of the products referenced herein, notwithstanding that any such securities may be currently
    being offered to others. Any such offering will be made only in accordance with the terms and conditions set forth in the Offering
    Memorandum pertaining to such fund. Alternative investments such as hedge funds and ICIS are subject to less regulation than
    other types of pooled investment vehicles, may be illiquid and can involve a significant use of leverage, making them substantially
    riskier than the other investments, including any products which may be shown as comparison herein. Prior to investing, investors
    are strongly urged to review carefully the Offering Memorandum (including the risk considerations described therein), and all
    related fund documents, to ask such additional questions of the Investment Manager as they deem appropriate, and to discuss
    any prospective investment in the Fund with their legal and tax advisers in order to make an independent determination of the
    suitability and consequences of an investment.

•   This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is
    not authorized or to any person to whom it would be unlawful to make such offer or solicitation. It is the responsibility of any
    person or persons in possession of this material to inform themselves of and to observe all applicable laws and regulations of any
    relevant jurisdiction. Prospective investors should inform themselves and take appropriate advice as to any applicable legal
    requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or
    domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments.

•   Investment in ICIS Funds are suitable only for sophisticated investors for whom an investment in such fund does not constitute a
    complete investment program and who fully understand, and are willing to assume and understand, the risks involved. While the
    given material is subject to change and, although based upon information which we consider reliable, it is not guaranteed as to
    accuracy or completeness. No person has been authorized to give any information or to make any representation, warranty,
    statement or assurance not contained in the Offering Memorandum and, if given or made, such other information or
    representation, warranty, statement or assurance may not be relied upon.

•   Past performance is not a guide to future performance and the value of investments and the income derived from those
    investments can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Harvest Financial
    Services Ltd makes no warranty or representation that the security and or recommendation/the fund made are appropriate for all
    recipients and investors.

•   Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may be i) copied,
    photocopied or duplicated in any form, by any means; or ii) redistributed without Harvest Financial Services Ltd prior written
    consent.




                                                                                                                                              25
IMPORTANT INFORMATION



“The Central Bank of Cyprus shall not be liable by virtue of its recognition of the ICIS or by
reason of its exercise of the functions conferred on it by the International Collective Investment
Schemes Law. Recognition of the ICIS does not constitute a warranty by the Bank as to the
creditworthiness or financial standing of the various parties to the ICIS”.

Supervision of ICIS

In accordance with section 3 of the Law, the Central Bank of Cyprus is the regulatory and
supervisory authority in the Republic of Cyprus for ICIS, their managers and trustees.

An ICIS must sell, redeem or repurchase its units at the request of unit holders, in accordance
with its constitutional documentation. Units may not be issued as partly paid and may not be
sold unless the equivalent of the net issue price is paid. Basic Rules for the calculation of sale,
redemption or repurchase price can be found in “Regulations on the valuation of the
property of an ICIS”.

Taxation

Any gains or profits generated by an ICIS of any type, including a unit trust or an investment
limited partnership, are subject to an effective tax rate of 0,425%, while no further tax is
imposed on any dividends or other distributions made by an ICIS to its unit holders. The
income of managers and trustees, if not permanent residents of the Republic, which is
generated from services they offer to ICIS is exempt from income tax.




                                                                                                      26
Professionals


                                                                     Professionals



•   Fund Regulator: Central Bank of Cyprus,
•   Investment Manager Regulator: Cyprus Securities & Exchange Commission.
•   Investment Manager – Harvest Financial Services Ltd
•   Internal Auditor: KPMG Advisory Services Ltd
•   Administrator – Hellenic Bank Public Ltd
•   Custodian - Hellenic Bank Public Ltd
•   Auditors – PKP Professional Services Ltd
•   Legal Advisor – Drakos & Efthymiou - Tornaritis Law
•   Hellenic Bank Public Ltd
•   Wall Street Global LLC
•   Interactive Brokers LLP
•   Deutsche Bank Securities Israel Ltd- via Hellenic Bank PLC.
•   XNET European Broker Systems




                                                                               27

More Related Content

What's hot

Sbi mutual fund
Sbi mutual fundSbi mutual fund
Sbi mutual fundshwetbala
 
Mutual Fund for Moderate Investors
Mutual Fund for Moderate InvestorsMutual Fund for Moderate Investors
Mutual Fund for Moderate Investorssanjib sharma
 
Dsp black rock rgess fund – series 1 applciation form and kim
Dsp black rock rgess fund – series 1 applciation form and kimDsp black rock rgess fund – series 1 applciation form and kim
Dsp black rock rgess fund – series 1 applciation form and kimPrajna Capital
 
Sa investec opportunity_fund_brochure
Sa investec opportunity_fund_brochureSa investec opportunity_fund_brochure
Sa investec opportunity_fund_brochureCobus Minnaar
 
Mutual funds association of pakistan
Mutual funds association of pakistanMutual funds association of pakistan
Mutual funds association of pakistanNirali Nayi
 
Pool management presentation
Pool management presentationPool management presentation
Pool management presentationAnus Ul Haque
 
Amendments to SEBI (Mutual Funds) Regulations, 1996
Amendments to SEBI (Mutual Funds) Regulations, 1996Amendments to SEBI (Mutual Funds) Regulations, 1996
Amendments to SEBI (Mutual Funds) Regulations, 1996GAURAV KR SHARMA
 
Investment Planning
Investment PlanningInvestment Planning
Investment PlanningJohn Daniel
 
Sahara mutual fund common application form with kim
Sahara mutual fund common application form with kimSahara mutual fund common application form with kim
Sahara mutual fund common application form with kimPrajna Capital
 
Bharti axa mutual fund application form equity with kim
Bharti axa mutual fund application form equity with kimBharti axa mutual fund application form equity with kim
Bharti axa mutual fund application form equity with kimPrajna Capital
 
MUTUAL FUND MANAGEMENT
MUTUAL FUND MANAGEMENTMUTUAL FUND MANAGEMENT
MUTUAL FUND MANAGEMENTvijayverma767
 
Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)
Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)
Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)Sanjay Ananda Rao
 
IDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandumIDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandumIDFCJUBI
 
IDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandumIDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandumIDFCJUBI
 

What's hot (19)

Sbi mutual fund
Sbi mutual fundSbi mutual fund
Sbi mutual fund
 
Mutual Fund for Moderate Investors
Mutual Fund for Moderate InvestorsMutual Fund for Moderate Investors
Mutual Fund for Moderate Investors
 
Dsp black rock rgess fund – series 1 applciation form and kim
Dsp black rock rgess fund – series 1 applciation form and kimDsp black rock rgess fund – series 1 applciation form and kim
Dsp black rock rgess fund – series 1 applciation form and kim
 
Sa investec opportunity_fund_brochure
Sa investec opportunity_fund_brochureSa investec opportunity_fund_brochure
Sa investec opportunity_fund_brochure
 
Mutual funds association of pakistan
Mutual funds association of pakistanMutual funds association of pakistan
Mutual funds association of pakistan
 
Pool management presentation
Pool management presentationPool management presentation
Pool management presentation
 
Amendments to SEBI (Mutual Funds) Regulations, 1996
Amendments to SEBI (Mutual Funds) Regulations, 1996Amendments to SEBI (Mutual Funds) Regulations, 1996
Amendments to SEBI (Mutual Funds) Regulations, 1996
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
Investment Planning
Investment PlanningInvestment Planning
Investment Planning
 
Sahara mutual fund common application form with kim
Sahara mutual fund common application form with kimSahara mutual fund common application form with kim
Sahara mutual fund common application form with kim
 
Bharti axa mutual fund application form equity with kim
Bharti axa mutual fund application form equity with kimBharti axa mutual fund application form equity with kim
Bharti axa mutual fund application form equity with kim
 
What are mutual funds
What are mutual fundsWhat are mutual funds
What are mutual funds
 
MUTUAL FUND MANAGEMENT
MUTUAL FUND MANAGEMENTMUTUAL FUND MANAGEMENT
MUTUAL FUND MANAGEMENT
 
Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)
Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)
Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1)
 
Sapm
SapmSapm
Sapm
 
Mutual fund
Mutual fund Mutual fund
Mutual fund
 
IDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandumIDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandum
 
Mutual Funds
Mutual FundsMutual Funds
Mutual Funds
 
IDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandumIDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandum
 

Viewers also liked

Cyprus oil & gas association clng
Cyprus oil & gas association clngCyprus oil & gas association clng
Cyprus oil & gas association clngAndy Varoshiotis
 
Cyprus Oil & Gas Association 5 December
Cyprus Oil & Gas Association 5 December Cyprus Oil & Gas Association 5 December
Cyprus Oil & Gas Association 5 December Andy Varoshiotis
 
Abstract energy geopolitics
Abstract energy geopoliticsAbstract energy geopolitics
Abstract energy geopoliticsAndy Varoshiotis
 
Fidel Castro Khrushchev correspondence
Fidel Castro Khrushchev correspondenceFidel Castro Khrushchev correspondence
Fidel Castro Khrushchev correspondenceAndy Varoshiotis
 
Noble energy September 2013 presentation
Noble energy September 2013 presentationNoble energy September 2013 presentation
Noble energy September 2013 presentationAndy Varoshiotis
 
Aradippou Environmental Study Presentation
Aradippou Environmental Study PresentationAradippou Environmental Study Presentation
Aradippou Environmental Study PresentationAndy Varoshiotis
 
Noble Energy 2016 credit suisse Presentation
Noble Energy 2016 credit suisse PresentationNoble Energy 2016 credit suisse Presentation
Noble Energy 2016 credit suisse PresentationAndy Varoshiotis
 
Harvard Central Security Challenges
Harvard Central Security ChallengesHarvard Central Security Challenges
Harvard Central Security ChallengesAndy Varoshiotis
 
East med marine and oil & gas exhibition
East med marine and oil & gas exhibitionEast med marine and oil & gas exhibition
East med marine and oil & gas exhibitionAndy Varoshiotis
 
Andy varoshiotis technology_entrepreneurship_part_2
Andy varoshiotis technology_entrepreneurship_part_2Andy varoshiotis technology_entrepreneurship_part_2
Andy varoshiotis technology_entrepreneurship_part_2Andy Varoshiotis
 
Certificate Energy Technology
Certificate Energy TechnologyCertificate Energy Technology
Certificate Energy TechnologyAndy Varoshiotis
 
Stanford University Energy & Technology Innovation Certificate
Stanford University Energy & Technology Innovation CertificateStanford University Energy & Technology Innovation Certificate
Stanford University Energy & Technology Innovation CertificateAndy Varoshiotis
 

Viewers also liked (20)

Cyprus oil & gas association clng
Cyprus oil & gas association clngCyprus oil & gas association clng
Cyprus oil & gas association clng
 
Cyprus Oil & Gas Association 5 December
Cyprus Oil & Gas Association 5 December Cyprus Oil & Gas Association 5 December
Cyprus Oil & Gas Association 5 December
 
Cyoilgas v1
Cyoilgas v1Cyoilgas v1
Cyoilgas v1
 
Abstract energy geopolitics
Abstract energy geopoliticsAbstract energy geopolitics
Abstract energy geopolitics
 
Fidel Castro Khrushchev correspondence
Fidel Castro Khrushchev correspondenceFidel Castro Khrushchev correspondence
Fidel Castro Khrushchev correspondence
 
Noble energy September 2013 presentation
Noble energy September 2013 presentationNoble energy September 2013 presentation
Noble energy September 2013 presentation
 
26012014 simerini
26012014 simerini26012014 simerini
26012014 simerini
 
I Dive Air test Oct 2012
I Dive Air test Oct 2012I Dive Air test Oct 2012
I Dive Air test Oct 2012
 
MIT
MITMIT
MIT
 
Renewable Energy
Renewable EnergyRenewable Energy
Renewable Energy
 
Aradippou Environmental Study Presentation
Aradippou Environmental Study PresentationAradippou Environmental Study Presentation
Aradippou Environmental Study Presentation
 
Noble Energy 2016 credit suisse Presentation
Noble Energy 2016 credit suisse PresentationNoble Energy 2016 credit suisse Presentation
Noble Energy 2016 credit suisse Presentation
 
Harvard Central Security Challenges
Harvard Central Security ChallengesHarvard Central Security Challenges
Harvard Central Security Challenges
 
East med marine and oil & gas exhibition
East med marine and oil & gas exhibitionEast med marine and oil & gas exhibition
East med marine and oil & gas exhibition
 
Andy varoshiotis technology_entrepreneurship_part_2
Andy varoshiotis technology_entrepreneurship_part_2Andy varoshiotis technology_entrepreneurship_part_2
Andy varoshiotis technology_entrepreneurship_part_2
 
Certificate
CertificateCertificate
Certificate
 
Isopl
IsoplIsopl
Isopl
 
Certificate Energy Technology
Certificate Energy TechnologyCertificate Energy Technology
Certificate Energy Technology
 
Stanford Engineering - Energy Innovation Certificate VPS
Stanford Engineering - Energy Innovation Certificate VPSStanford Engineering - Energy Innovation Certificate VPS
Stanford Engineering - Energy Innovation Certificate VPS
 
Stanford University Energy & Technology Innovation Certificate
Stanford University Energy & Technology Innovation CertificateStanford University Energy & Technology Innovation Certificate
Stanford University Energy & Technology Innovation Certificate
 

Similar to Harvest stargate fund version en11 f4 october 2012

GHIF_Brochure_Final
GHIF_Brochure_FinalGHIF_Brochure_Final
GHIF_Brochure_FinalDamian Quinn
 
IDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandumIDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandumJubiIDFCDebt
 
Mutual Funds Overview
Mutual Funds OverviewMutual Funds Overview
Mutual Funds OverviewKushagr Jain
 
97188606 mutual-funds-ppt
97188606 mutual-funds-ppt97188606 mutual-funds-ppt
97188606 mutual-funds-pptAnoop Mishra
 
investors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamc
investors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamcinvestors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamc
investors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamcNitesh sharma
 
IDFC Cash Fund_Key information memorandum
IDFC Cash Fund_Key information memorandumIDFC Cash Fund_Key information memorandum
IDFC Cash Fund_Key information memorandumJubiIDFCDebt
 
IDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandumIDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandumTravisBickle19
 
IDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandumIDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandumJubiIDFCEquity
 
IDFC Multi Cap Fund_Key information memorandum
IDFC Multi Cap Fund_Key information memorandumIDFC Multi Cap Fund_Key information memorandum
IDFC Multi Cap Fund_Key information memorandumIDFCJUBI
 
IDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFCJUBI
 
IDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumTravisBickle19
 
IDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumJubiIDFCDebt
 
IDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandumIDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandumJubiIDFCDebt
 
15309 stanlib multi manager property fund static sheet
15309 stanlib multi manager property fund static sheet15309 stanlib multi manager property fund static sheet
15309 stanlib multi manager property fund static sheetNaweed Hoosenmia
 

Similar to Harvest stargate fund version en11 f4 october 2012 (20)

GHIF_Brochure_Final
GHIF_Brochure_FinalGHIF_Brochure_Final
GHIF_Brochure_Final
 
Nism Chapter 2.pdf
Nism Chapter 2.pdfNism Chapter 2.pdf
Nism Chapter 2.pdf
 
IDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandumIDFC Overnight Fund_Key information memorandum
IDFC Overnight Fund_Key information memorandum
 
Mutual Funds Overview
Mutual Funds OverviewMutual Funds Overview
Mutual Funds Overview
 
97188606 mutual-funds-ppt
97188606 mutual-funds-ppt97188606 mutual-funds-ppt
97188606 mutual-funds-ppt
 
investors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamc
investors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamcinvestors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamc
investors-preferences-towards-mutual-funds-with-reference-to-kotak-kmamc
 
IDFC Cash Fund_Key information memorandum
IDFC Cash Fund_Key information memorandumIDFC Cash Fund_Key information memorandum
IDFC Cash Fund_Key information memorandum
 
IDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandumIDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandum
 
IDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandumIDFC Flexi Cap Fund_Key information memorandum
IDFC Flexi Cap Fund_Key information memorandum
 
IDFC Multi Cap Fund_Key information memorandum
IDFC Multi Cap Fund_Key information memorandumIDFC Multi Cap Fund_Key information memorandum
IDFC Multi Cap Fund_Key information memorandum
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
IDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandum
 
IDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandum
 
IDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandumIDFC Dynamic Bond Fund_Key information memorandum
IDFC Dynamic Bond Fund_Key information memorandum
 
IDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandumIDFC Money Manager Fund_Key information memorandum
IDFC Money Manager Fund_Key information memorandum
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
15309 stanlib multi manager property fund static sheet
15309 stanlib multi manager property fund static sheet15309 stanlib multi manager property fund static sheet
15309 stanlib multi manager property fund static sheet
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
Mutual funds
Mutual fundsMutual funds
Mutual funds
 
Fund overview
Fund overviewFund overview
Fund overview
 

More from Andy Varoshiotis

Covid 19 DAN recommendations for Dive Centers
Covid 19 DAN recommendations for Dive CentersCovid 19 DAN recommendations for Dive Centers
Covid 19 DAN recommendations for Dive CentersAndy Varoshiotis
 
Scuba Diving Ear Equlization
Scuba Diving Ear Equlization Scuba Diving Ear Equlization
Scuba Diving Ear Equlization Andy Varoshiotis
 
Solarus Powercollectors Technical Brochure
Solarus Powercollectors Technical BrochureSolarus Powercollectors Technical Brochure
Solarus Powercollectors Technical BrochureAndy Varoshiotis
 
Solarus thermal-heating-system
Solarus thermal-heating-systemSolarus thermal-heating-system
Solarus thermal-heating-systemAndy Varoshiotis
 
Cyprus Oil & Gas Association May 2017
Cyprus Oil & Gas Association May 2017Cyprus Oil & Gas Association May 2017
Cyprus Oil & Gas Association May 2017Andy Varoshiotis
 
Cyprus Oil & Gas Association AGM agenda official
Cyprus Oil & Gas Association AGM agenda officialCyprus Oil & Gas Association AGM agenda official
Cyprus Oil & Gas Association AGM agenda officialAndy Varoshiotis
 
Solar PV Net meetering explained
Solar PV Net meetering explainedSolar PV Net meetering explained
Solar PV Net meetering explainedAndy Varoshiotis
 
Power for all, Renewable Energy Declaration and statement
Power for all, Renewable Energy Declaration and statement Power for all, Renewable Energy Declaration and statement
Power for all, Renewable Energy Declaration and statement Andy Varoshiotis
 
Emergency FIrst Responder Presentation I Dive
Emergency FIrst Responder Presentation I Dive Emergency FIrst Responder Presentation I Dive
Emergency FIrst Responder Presentation I Dive Andy Varoshiotis
 
I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa
I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa
I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa Andy Varoshiotis
 
Harvard University Preventing nuclear terrorism
Harvard University Preventing nuclear terrorism Harvard University Preventing nuclear terrorism
Harvard University Preventing nuclear terrorism Andy Varoshiotis
 
Irena cyprus roadmap report
Irena cyprus roadmap reportIrena cyprus roadmap report
Irena cyprus roadmap reportAndy Varoshiotis
 
Harvard University Maugeri Global oil 2016
Harvard University Maugeri Global oil 2016Harvard University Maugeri Global oil 2016
Harvard University Maugeri Global oil 2016Andy Varoshiotis
 
Harvard University The energy implications of a nuclear deal between the p51 ...
Harvard University The energy implications of a nuclear deal between the p51 ...Harvard University The energy implications of a nuclear deal between the p51 ...
Harvard University The energy implications of a nuclear deal between the p51 ...Andy Varoshiotis
 
Levant Basin Neil Hodgson Spectrum Presentation
Levant Basin  Neil Hodgson Spectrum PresentationLevant Basin  Neil Hodgson Spectrum Presentation
Levant Basin Neil Hodgson Spectrum PresentationAndy Varoshiotis
 

More from Andy Varoshiotis (20)

Covid 19 DAN recommendations for Dive Centers
Covid 19 DAN recommendations for Dive CentersCovid 19 DAN recommendations for Dive Centers
Covid 19 DAN recommendations for Dive Centers
 
Scuba Diving Ear Equlization
Scuba Diving Ear Equlization Scuba Diving Ear Equlization
Scuba Diving Ear Equlization
 
Solarus Powercollectors Technical Brochure
Solarus Powercollectors Technical BrochureSolarus Powercollectors Technical Brochure
Solarus Powercollectors Technical Brochure
 
Solarus thermal-heating-system
Solarus thermal-heating-systemSolarus thermal-heating-system
Solarus thermal-heating-system
 
Solarus Brochure 2017
Solarus Brochure 2017Solarus Brochure 2017
Solarus Brochure 2017
 
Cyprus Oil & Gas Association May 2017
Cyprus Oil & Gas Association May 2017Cyprus Oil & Gas Association May 2017
Cyprus Oil & Gas Association May 2017
 
COGA sponsorship pack agm
COGA sponsorship pack agmCOGA sponsorship pack agm
COGA sponsorship pack agm
 
Cyprus Oil & Gas Association AGM agenda official
Cyprus Oil & Gas Association AGM agenda officialCyprus Oil & Gas Association AGM agenda official
Cyprus Oil & Gas Association AGM agenda official
 
Solar PV Net meetering explained
Solar PV Net meetering explainedSolar PV Net meetering explained
Solar PV Net meetering explained
 
Power for all, Renewable Energy Declaration and statement
Power for all, Renewable Energy Declaration and statement Power for all, Renewable Energy Declaration and statement
Power for all, Renewable Energy Declaration and statement
 
Harvest 4 Energy Ltd
Harvest 4 Energy LtdHarvest 4 Energy Ltd
Harvest 4 Energy Ltd
 
Nsp brochure
Nsp brochureNsp brochure
Nsp brochure
 
Idive guide to_diving
Idive guide to_divingIdive guide to_diving
Idive guide to_diving
 
Emergency FIrst Responder Presentation I Dive
Emergency FIrst Responder Presentation I Dive Emergency FIrst Responder Presentation I Dive
Emergency FIrst Responder Presentation I Dive
 
I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa
I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa
I Dive Tec Rec Centers Plc, Scuba Diving Protaras - Ayia Napa
 
Harvard University Preventing nuclear terrorism
Harvard University Preventing nuclear terrorism Harvard University Preventing nuclear terrorism
Harvard University Preventing nuclear terrorism
 
Irena cyprus roadmap report
Irena cyprus roadmap reportIrena cyprus roadmap report
Irena cyprus roadmap report
 
Harvard University Maugeri Global oil 2016
Harvard University Maugeri Global oil 2016Harvard University Maugeri Global oil 2016
Harvard University Maugeri Global oil 2016
 
Harvard University The energy implications of a nuclear deal between the p51 ...
Harvard University The energy implications of a nuclear deal between the p51 ...Harvard University The energy implications of a nuclear deal between the p51 ...
Harvard University The energy implications of a nuclear deal between the p51 ...
 
Levant Basin Neil Hodgson Spectrum Presentation
Levant Basin  Neil Hodgson Spectrum PresentationLevant Basin  Neil Hodgson Spectrum Presentation
Levant Basin Neil Hodgson Spectrum Presentation
 

Harvest stargate fund version en11 f4 october 2012

  • 1. Investment Manager: Harvest Financial Services Ltd, Regulated by the Cyprus Securities and Exchange Commission, License Number 021/03 –Member of the Investor Protection Fund (TAE), Harvest Stargate Fund Ltd: Registered and Regulated by the Central Bank of Cyprus As an international Collective Investment Scheme Law No 47 (1) of 1999 (ICIS). OCTOBER 2012 (V4EN) CONTACT: Telephone + 357 22 552800 andy@harvestgroup.com.cy This document is for informational purposes only. This document does not constitute an offer, an invitation to offer, or a recommendation to enter into any transaction, nor does it constitute investment advice. This material does not constitute a solicitation to buy or sell securities in any jurisdiction in which such a solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation,
  • 2. Executive Summary Fund Structure Indicative Summary Terms Final Maturity • Open Ended investments Unlimited holding period. Minimum Holding two Years. Currency • EUR or currency equivalent on the subscription date. Principal Protection • Some underline assets bear the principal protection of the issuer of the underline Provider assets. The fund therefore offers soft capital protection only on selected underline assets that bare issuers guarantees. Form • Shares – ICIS UNITS Notional • [●] MM, minimum 1MM Issue Price • NAV Redemption Amount • The shares will be redeemed on the NAV: • The Shares may be redeemed prior to that on a monthly basis after year 2 . • Share Price (t) – Early Redemption Premium, whereby the Early Redemption Premium is initially 4%, and then decreasing by 1% on each anniversary of the Issue Date, until reaching 0% Additional Investments • Investors will be able to subscribe additional amounts in the fund on a monthly basis, with rounds of 10,000 EURO Initial Allocation into • The Initial Allocation of the Issuer to the Underlying Fund will be equal to 100%; the Underlying Fund thereafter the Trading Administrator will adjust the allocation between the assets of the Issuer in accordance with the Rebalancing Rules. Investment Manager • Harvest Financial Services Ltd - Transaction Fees • Investment Manager Fees: 2.0% annual management fees on NAV and an incentive – performance fee of 20% of annual returns in excess of 10% 2
  • 3. Risk Statements Investment Horizon: The fund has a minimum holding period of 2 years with unlimited duration. Investors must maintain capital for this period. Non-Reliance on Historic Past performance does not guarantee future performance; investment in the fund should be based upon Returns: a complete assessment of their terms. Limitations of Simulated Certain presentations and back-testing or other statistical analysis materials that may have been Returns: provided in connection with explanations of the mechanics and/or potential returns of the Notes use pro forma analysis and hypothetical circumstances to estimate how the Reference Portfolio may have performed prior to its actual existence. Harvest provides no assurance or guarantee that the Notes will operate or would have operated in the past in a manner consistent with those materials. As such, any historical returns projected in such material, or any hypothetical simulations based on this analysis, provided in relation to the fund may not reflect the performance of, and are no guarantee or assurance in respect of the performance or returns of, the fund. Non-Linear Returns: Absent the occurrence of a Knock Out, the return on the Notes will be based on the performance of the Reference Portfolio over time. As such it is not possible to predict the return on the fund simply by reference to the initial and final values of the Reference Portfolio. The application of the Fund’s Mechanics may result in an opportunity cost when the return on the fund is compared to either a direct investment in the Reference Portfolio or as the underline assets principal protected investment where the exposure to the Reference Portfolio is achieved through a conventional call option issued by the product providers. Clean Up Event: If there is a significant reduction in either the value of the Reference Portfolio or, shortly after issuance of the fund, a rapid decline in interest rates, a Clean Up Event may occur. Under both such circumstances, the return on the fund will cease to offer any potential capital gain as a function of the future performance of the Underlying Fund and will effectively become that of the remaining asset classes. Credit Risk: The value of the fund may decline dramatically based on market conditions. Investors understand that there are risks involved and capital may decline due to market conditions and valuations. Past performance is not guaranteed for future returns. Disclosure of Investor It may be required for purposes of the Investment Manager’s compliance procedures to disclose to the Identity: name of the initial investor in the fund. LIMITED OFFER 3
  • 4. Table of Contents Benefits of the Harvest Stargate Fund Ltd, Summary: A Multi-Asset Fund offering several key Advantages. The Benefit of Investing in International Collective Investment Funds (ICIS): Given the recent volatility in stock markets worldwide, we wish to give investors an update on the benefits of holding ICIS, as part of a balanced and diversified portfolio. The Harvest Stargate Fund Ltd, offers individual investors access to a unique multi-asset, multi manager investment methodology usually only used by sophisticated institutional investors. The fund’s objective is to deliver returns in excess of those offered by traditional investment funds, by the careful and active allocation of the portfolio across three key asset classes, combined with the active selection of the best performing underline fund managers. The fund provides diversification-the foundation of a successful portfolio. The fund invests in three strategies each managed by a leading specialist manager. Investing in just one asset class carries with it a higher degree of risk and the Harvest Stargate Fund Ltd adopts an active asset allocation policy that ensures the fund invests across a spread of asset classes that offer the best risk adjusted return. In addition, Harvest Stargate Fund Ltd and its advisors, Harvest Financial Services Ltd, aim to select the best performing funds for each asset class which are then analyzed on an ongoing basis. NEW ISSUE OCTOBER 2012 – LIMITED OFFERING 4
  • 5. Introduction The Harvest Financial Services Ltd, is a leading investment management company, based in Nicosia Manager Cyprus. Harvest Financial Services Ltd was established in March 2000 by Harvest Advisors Ltd, as a spin-off from Harvest Financial Group. Harvest Financial Services Ltd, is regulated by the Cyprus Securities & Exchange Commission with license number 021/03. Harvest Financial Services Ltd provides a wide range of mutual funds, hedge funds and portfolio management advisory services. Its investment team has over 14 years experience in: Tailored portfolio construction- the construction and management of diversified, high quality fund portfolios, tailored to the needs of private and institutional clients. Distribution of Hedge Funds- the distribution of a wide range of fund of hedge fund products for both the institutional and retail markets. Structured Products – the structuring and management of products linked to hedge funds. Traditional Investment portfolio Management – The construction and management of traditional, predominantly long / short portfolios. 5
  • 6. HARVEST STARGATE FUND LTD- BENEFITS RISK MANAGEMENT PERFORMANCE - RETURN RESEARCH COMPANY SELECTION RISK MANAGEMENT COMPLIANCE Reporting 6
  • 7. Harvest Financial Services Ltd Manager’s Style Integrated Fund Management Competitive Fund Management 7
  • 8. THE IMPORTANCE OF ASSET CLASSES The The most popular traditional asset classes are cash, bonds, equities, real estate, Fund futures, forex and energy hedge funds. Harvest Stargate Fund Ltd, combines these asset classes, with the exception of cash, in order to create the next generation of multi asset Global Macro investments. The different asset classes will perform their best at different stages of a normal investment cycle. When building a portfolio, it is therefore essential that it should not only be spread between different asset classes, but should also make an allocation to the asset class that is likely to provide the best return in the following year. Whilst equities may be rising, bonds or property could be falling, and when equities fall, hedge funds could perform well. The Stargate Fund is an aggressive market neutral fund with a return objective of 10- 15% annually with a standard deviation of approximately 4%-7%. It allocates capital among managers who have stated investment objective of returns in excess of 15% per annum. It is expected that the fund will have higher than average volatility but through diversification of strategies can mitigate drawdown's during bear market environments. In positive market periods, the fund should produce returns above market benchmarks. HIGH RETURNS POTENTIAL 8
  • 9. INVESTMENT FOCUS GEOGRAPHIC AREA Scientists recently discovered a massive offshore reserve of an estimated 122 trillion cubic feet of natural gas called the Levant Basin Province. While it is one of the world's richest natural gas reserves, the Levant Basin Province is located between countries with endless amounts of mutual hatred. It straddles the sea borders of Israel, Lebanon, Palestine, the Republic of Cyprus. The largest section discovered so far, the Leviathan gas field, is believed to possibly contain, alongside natural gas, 4.2 billion barrels of oil. Leviathan straddles the Israeli-Lebanese maritime border. 9
  • 10. Example of the investment Strategy: Zero Coupon +Direct Investment 1/3 Strategy • The standard way to create capital protected notes for a variety of underlying asset types • The initial investment strategy of the Harvest Stargate Fund Ltd is allocated (1/3 of its assets) into or through structured funds and High Yield Treasuries and Bonds: – Buying a zero coupon bond that will mature at 100 at the maturity of the transaction [cost of zero coupon bond = 75]. Buying the Underlying Fund (or an option on the Fund if such can be created) using [100% - price of zero coupon = 25]. RISKY: Payoff Payoff dependent on e.g. at €50 Underlying Fund €25 Redemption Underlying Fund Of €100+50 Zero Coupon RISKLESS: Bond Zero coupon €75 €100 invested Matures Bond will mature Price of At €100 at €100, to repay Zero Principal in full Coupon Bond T=0 Maturity e.g.5- 7 years • This structure is the oldest and simplest principal protection strategy – TOTAL RETURN OF UNDERLYING FUND: 50/25 = 200.0% – TOTAL RETURN OF INVESTMENT: 150/100 = 150.0% 10
  • 11. Fund Structure 1/3 of the fund’s assets are investment into protected asset classes with 100% Initial Participation or Real Estate Assets. • Part Portfolio Capital protection is composed of 2 parts: 1. A dynamic rebalancing between an investment into the Underlying Fund and a zero coupon bond.  Objective: to ensure that funds are invested in the Underlying Fund for the maximum time possible  Through the fund structure it is possible to capture 100% of the performance of the Underlying Fund 2. An unconditional put at 100% at maturity  To ensure full repayment of 1/3 capital, in case the dynamic rebalancing is insufficient Part 2: Put Option Investment SPV € 100 ISSUER Put Option Investor at Guaranteed Amount (Issuer) at Maturity Fund Units Hellenic Bank PLC Administrator Part 1: € 100 initially € 0 initially HFS as the fund manager Determines the proportion Zero Coupon Bond Underlying Fund Dynamic Rebalancing (Riskless) of Assets invested in the Underlying Fund or the 0-Coupon Bond Or Real Estate Assets 11
  • 12. Successful Investment Strategy • The Harvest Stargate Fund Ltd, offers individual investors access to unique multi-asset, multi manager investment strategy usually only used by sophisticated institutional investors and hedge fund managers. The principal questions faced by any private investor today are: how to allocate their investable funds between the various asset classes available; how would this asset allocation should be regularly reviewed, and; how they can be certain that they’re in the best possible funds run by the best possible fund managers. The Harvest Stargate fund’s objective is to deliver returns in excess of those offered by traditional investment funds, by the careful and active allocation of the portfolio across the five key asset classes-bonds, equities, property, capital protected funds and commodities-combined with the active selection of the best performing underlying fund managers. • Primary Fund strategy focused on undervalued Equity Long/Short equities in Europe and US either directly or through selected highly rated mutual funds. Investments in the CY and GR markets will take an opportunistic approach based on fundamental catalysts that will yield capital gains for the fund. • Secondary strategy overlaying portfolio focused on Capital Protected different products. The addition of capital protected notes as the strategy yields stability and earns possible coupons for the fund. • Tertiary strategy overlaying portfolio focused on currency management and occasional non-equity Global Macro/Real opportunities such as bonds, forex, commodities and Estate real estate funds and property assets.1/3 of the Funds assets are allocated into this dynamic strategy which offers stability and growth. 12
  • 13. Experienced and Accessible Investment Manager • Founded in Cyprus in 1998 (EPEY since 2003) – Harvest Financial Services Limited (“HFS”) is a Cyprus based fund management group, providing discretionary portfolio management services to high net worth individuals, institutions and mutual funds both in Cyprus and abroad (www.harvestgroup.com.cy) • Head Office in Nicosia – Key management and staff nearby and available to investors to answers questions regarding investment strategy, performance, Harvest Stargate Fund Ltd mechanics and administration. • Regulated by the Cyprus Securities and Exchange Commission License Number 021/03 • Affiliated with some of the World’s most prestigious investment service Providers 13
  • 14. The Fund’s Asset Allocation Process Financial Instrument’s Equities Futures/Options GOLD Fund’s Underline Strategies Energy Focus 60% ENERGY EAST MED RUSSIA Real Estate GLOBAL ENERGY DIVERSIFICATION 14
  • 15. Primary Strategy: FOCUS ON NATURAL GAS COMPANIES • Primary Strategy: FOCUS ON ENERGY-NATURAL GAS AND OIL (60% ASSET ALLOCATION) • The First and core strategy seeks to buy undervalued equities either on an individual or sector basis and hold them for capital appreciation and income for the medium term. The Fund will engage models prior in investing in speculative investments and simulate possible return vs. risk prior of entering in such transactions. • The strategy also seeks to identify major changes of direction in key markets through independent analysis of relevant macro-economic factors, trend developments and investor sentiment. Harvest seeks to vary overall market exposure accordingly, either through further allocations/reductions to existing holdings or investment/divestments in market heavy weights. The strategy does not aim at a particular geographical exposure but rather is driven by a sector approach. Historically, Europe and US have provided the main holdings for the strategy, but Israel and Russia are currently in focus. Other 10% US 20% UK 5% Greece 15% Continental Europe 20% Cyprus 15% – Global gas use over South East Europe 15% next 30 years (bcm): Tamar and Leviathan: the two biggest 􀂙 2000 - 2,527 deep-water Gas discoveries of the past 10 years 􀂙 2010 - 3,377 􀂙 2020 - 4,254 􀂙 2030 - 5,047 EAST MED INVESTMENT OPPORTUNITIES 15
  • 16. MED ENERGY Primary Strategy: Equities Long / Short / Hedged GLOBAL MACRO PRIMARY STRATEGY 60% Weight of Portfolio (FOCUS ON MED ENERGY) • Delek Energy, Delek Drilling and Avner, Nobel Energy, Lukoil, initiating coverage on the fund diversification policy. Triple digit upside potential of an oil discovery. Symbols: (DELKG.TA), (AVNRP.TA), (DEDRP.TA), (DLEN.TA), (NBL. NYSE), (LUKOIL. DR) (CUSIP 677862104), MICEX (Moscow), Gazprom (OGZPY), TOTAL OIL (TOT.NYSE), (GAS.CSE). • The value of the Levithan, Tamar, and the Cyprus Aphrodite Reserves (12) can be derived from two sources: The value of the natural gas reserves and the value of the oil potential. The current share prices do not reflect value of oil potential. Ratio share price partially reflects an oil discovery, highest upside potential from an oil discovery. Levithan oil results likely in early 2012. US-based Noble Energy has discovered gas in Block 12 of Cyprus’ Exclusive Economic Zone (EEZ) and the reserve is thought to be 30-40% higher than estimates. Tamar was discovered in 2009 and holds an estimated 8.7 tcf (246 bcm) of natural gas. It is expected to come on-stream in 2013 and investment is estimated at $4 bln. Peak production for the first phase is targeted at 1.0-1.2 bln cfd. Leviathan was discovered in December 2010 with reserves estimated at 16 tcf (453 bcm). It is estimated its production life would be 2017-48 with gas sold from two LNG trains, each with a capacity of 7.5 mln tons/year. The first would come on-stream in 2017, the second in 2020. Total development costs would amount to $14 bln. It forecasts that 75% of the LNG would be shipped to Europe and the remaining 25% to Asia. 16
  • 17. INDUSTRY GROWTH LNG World LNG Production May Double by 2016 35 Peru Malaysia 30 Indonesia Brunei 25 Australia 20 Bcf/day Nigeria Yemen 15 UAE Oman 10 Qatar 5 Egypt Algeria - Trinidad 2007 2009 2011 2013 2015 LNG hub in Cyprus seems most likely: Cyprus seems to be gaining popularity as a potential hub for a future LNG facility that would help pump natural gas upstream from the Israeli and adjacent Cypriot offshore fields and use the island to transport the product to customers. Two reports have cited the current geopolitical climate in the Middle East and North Africa as reinforcing the case for Israeli gas, while looking at Cyprus as an alternative solution to lengthy and politically sensitive pipelines in other countries. Recent natural gas discoveries halfway between Cyprus and Israel at the Tamar and Leviathan fields estimates gas reserves at 25 tr. cubic feet (705 bln cu.m.), enough to meet domestic demand for several decades, and enough to transform Israel into an energy exporter, the Middle East Economic Survey. 17
  • 18. INDUSTRY FOCUS – RECENT DEVELOPMENTS “With the increasing financial burdens clouding Europe's future, it is crucial to ascertain how we can explore new opportunities to gauge how the new discoveries will help pave the way out of an economic crisis and lead to forming new business alliances, shape difficult strategic relations and of course determine how new energy will bring about a wealth of positive change in old waters”. •Cypriot minister: Block 12 gas production by 2017 •Block 12, owned 70% by Noble Energy and 30% by Delek, has an estimated 8 trillion+ cubic feet of gas, just under half the size of the nearby Israeli Leviathan field. •Cypriot Minister of Commerce, Industry and Tourism Mr. Neoklis Sylikiotis says that Noble Energy Inc. (NYSE: NBL) plans to begin a second round of drilling at Block 12 in 2013, begin production by 2017, and begin exports by 2019. Noble Energy owns 70% of Block 12, and Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15%. Block 12 has an estimated 8 trillion cubic feet of gas, just under half the size of the nearby Israeli field, Leviathan, owned by the same companies together with Ratio Oil Exploration (1992) LP (TASE:RATI.L) •Mr. N Sylikiotis added that Cyprus expects to earn €300 million from its offshore gas and oil concessions. •According to the "Cyprus Mail" today, "In the government gazette edition of August 17, the US firm invited bids for two separate contracts which, taken jointly, suggest that it is pressing forward with the natural gas field - approximately nine months after it announced a significant find there." It adds, "Subsea testing costs around US$350 million. Analysts say the total tab for developing the Block 12 prospect, including all the facilities for subsea testing as well as the pipelines, could come to $3.5 billion." •Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2012 18
  • 19. INTERNATIONAL INTEREST • Novatek Shows Interest in Cyprus Offshore Oil, Gas Licenses • By Stelios Orphanides and Anna Shiryaevskaya - Apr 5, 2012 6:17 PM GMT+0300 • OAO Novatek (NVTK), Russia’s second-biggest natural-gas producer, is looking at bidding for licenses to explore off Cyprus after the island nation’s first gas discovery attracted global companies. • Leonid Mikhelson, Novatek’s billionaire chief executive officer, flew to Cyprus for talks yesterday, Neoklis Sylikiotis, Cyprus’ commerce and industry minister, told reporters in Nicosia today. The country is accepting applications for a second licensing round until May 11. • Houston-based Noble Energy Inc. (NBL) reported the first discovery off Cyprus’s coast in December, with results from the Cyprus A-1 well indicating as much as 8 trillion cubic feet of gas. The find prompted “a lot of interest” in the area, Sylikiotis said. • Cypriot President Demetris Christofias also met with Mikhelson and a Russian delegation including OAO Gazprombank Chairman Andrei Akimov, said Phidias Pilides, the chairman of the Cyprus Chamber of Commerce and Industry. • Novatek’s press service confirmed the company is considering participating in the announced tenders. • The Siberian company’s natural-gas production and sales are now limited to Russia where state- run OAO Gazprom (GAZP), the world’s biggest producer, controls the pipeline network and exports. Novatek ended a concession agreement last year to its only exploration project outside Russia, the El-Arish project in Egypt, after drilling didn’t find commercial prospects. 19
  • 20. INTERNATIONAL INTEREST – FUTURE DEVELOPMENTS • Gas Liquefaction • The Russian gas producer may invest in Cyprus’s gas industry, including gas production, transport and processing, if it is successful in the licensing round, Pilides said by phone from Nicosia. Liquefaction and petrochemical projects may follow, he said. Chinese companies have already submitted proposals for construction of a gas facility, Sylikiotis said last week. • Cyprus must hold a “considerable” stake in a proposed liquefaction plant to export its gas, Sylikiotis said on March 28. As construction costs will be “extremely high,” Cyprus is seeking “multiparty cooperation with the involvement of other important countries and energy giants,” he said at the time. 20
  • 21. INTERNATIONAL INTEREST – KEY PLAYERS • Israel Opportunity lists unit on Cypriot Stock Exchange • Cyprus Opportunity and Norway's AGR are bidding for two Cypriot offshore exploration licenses. • 22 July 12, Amiram Barkat • Cyprus Opportunity Energy plc (CSE: GAS), a subsidiary of Israel Opportunity - Oil and Gas Exploration Ltd. listed its shares for trading on the Cyprus Stock Exchange last week, at a market value of €14 million. Sources inform ''Globes'' that Cyprus Opportunity plans to hold a public offering in 2013. It is a sister company of Israel Opportunity Energy Resources LP (TASE: ISOP.L). Cyprus Opportunity is controlled by Israeli, Norwegian, and Cypriot shareholders. The Israeli shareholders are Rony Halman and Uri Aldubi, the general partners of Israel Opportunity. The Norwegian shareholders are the owners of AGR Group Inc., which is jointly bidding with Cyprus Opportunity for two of the offshore exploration licenses that the Cypriot government is offering - Block 2 and Block 8. • The two companies submitted their bids on May 11, as part of the 2nd Licensing Round tender for 12 offshore licenses. Cyprus Opportunity acquired 2D seismic data on which it has already performed preliminary analysis as part of its business strategy. The Cypriot government is due to publish the results of the tender in November. Cyprus Opportunity says that even if it does not win in the tender, it will continue to operate in the Cypriot offshore oil and gas exploration business through joint ventures with third parties. • Israel Opportunity owns 5-10% of the five of the deep-water Pelagic licenses - Aditya, Ishai, Lela, Yahav, and Yoad - covering 500,000 acres 170 west of Haifa, between Leviathan's Ratio Yam and Block 12, which includes the Aphrodite structure, in Cyprus's exclusive economic zone (EEZ). Israel Opportunity owns 10% of the licenses, Beny Steinmetz and Teddy Sagi each own 42.5%, and AGR owns 5%. • Cyprus says that Cyprus Opportunity is the first oil and gas exploration company to list on the stock exchange. The Cyprus Stock Exchange is still recovering from a corruption and insider trading scandal from almost ten years ago. • 25 consortia have filed 15 bids for the 12 licenses. Industry sources believe that the size of the signature fee that the bidders will offer the Cypriot government will be an important factor in selecting the winners. The Cypriot government and the gas developers will sign production sharing contracts. • Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2012 21
  • 22. INDUSTRY FOCUS – REGIONAL EFFECTS • Shekel appreciation and “Dutch disease” to be mitigated through a SWF With Israel’s current account surplus likely to get even bigger in the future, concerns have been raised about “Dutch disease”, i.e. a large appreciation of the shekel damaging the competitiveness of Israel’s non-energy exports. While further shekel appreciation appears very likely, we think the extent of appreciation can be reduced through the establishment and careful management of a SWF that would help to sterilize a large part of the natural gas-related FX inflows. • The real game-changer could be oil Geological tests suggest a possibility that, in addition to natural gas, Israel might also find sizeable quantities of offshore oil. While the ‘probability of success’ is currently considered to be low, our calculations suggest that, in the event of success, oil could potentially deliver a boost to GDP growth, the budget and the external balance that might potentially be even bigger than the impact from natural gas. This would also imply a larger appreciation potential for the shekel and an even greater requirement to manage the resulting macroeconomic challenges through a carefully managed sovereign wealth fund. More meaningful results of geological tests on oil are expected in late 2013. 22
  • 23. EAST MED DEVELOPMENTS • The east Mediterranean island is working with Israel, 300 miles (480 kilometers) south across the sea, on plans to build a pipeline to link their gas fields before the fuel is liquefied for export to Europe or Asia, Israeli Prime Minister Benjamin Netanyahu said Feb. 16. 2012 23
  • 25. Important Legal Note • The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities relating to any of the products referenced herein, notwithstanding that any such securities may be currently being offered to others. Any such offering will be made only in accordance with the terms and conditions set forth in the Offering Memorandum pertaining to such fund. Alternative investments such as hedge funds and ICIS are subject to less regulation than other types of pooled investment vehicles, may be illiquid and can involve a significant use of leverage, making them substantially riskier than the other investments, including any products which may be shown as comparison herein. Prior to investing, investors are strongly urged to review carefully the Offering Memorandum (including the risk considerations described therein), and all related fund documents, to ask such additional questions of the Investment Manager as they deem appropriate, and to discuss any prospective investment in the Fund with their legal and tax advisers in order to make an independent determination of the suitability and consequences of an investment. • This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. It is the responsibility of any person or persons in possession of this material to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdiction. Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. • Investment in ICIS Funds are suitable only for sophisticated investors for whom an investment in such fund does not constitute a complete investment program and who fully understand, and are willing to assume and understand, the risks involved. While the given material is subject to change and, although based upon information which we consider reliable, it is not guaranteed as to accuracy or completeness. No person has been authorized to give any information or to make any representation, warranty, statement or assurance not contained in the Offering Memorandum and, if given or made, such other information or representation, warranty, statement or assurance may not be relied upon. • Past performance is not a guide to future performance and the value of investments and the income derived from those investments can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Harvest Financial Services Ltd makes no warranty or representation that the security and or recommendation/the fund made are appropriate for all recipients and investors. • Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may be i) copied, photocopied or duplicated in any form, by any means; or ii) redistributed without Harvest Financial Services Ltd prior written consent. 25
  • 26. IMPORTANT INFORMATION “The Central Bank of Cyprus shall not be liable by virtue of its recognition of the ICIS or by reason of its exercise of the functions conferred on it by the International Collective Investment Schemes Law. Recognition of the ICIS does not constitute a warranty by the Bank as to the creditworthiness or financial standing of the various parties to the ICIS”. Supervision of ICIS In accordance with section 3 of the Law, the Central Bank of Cyprus is the regulatory and supervisory authority in the Republic of Cyprus for ICIS, their managers and trustees. An ICIS must sell, redeem or repurchase its units at the request of unit holders, in accordance with its constitutional documentation. Units may not be issued as partly paid and may not be sold unless the equivalent of the net issue price is paid. Basic Rules for the calculation of sale, redemption or repurchase price can be found in “Regulations on the valuation of the property of an ICIS”. Taxation Any gains or profits generated by an ICIS of any type, including a unit trust or an investment limited partnership, are subject to an effective tax rate of 0,425%, while no further tax is imposed on any dividends or other distributions made by an ICIS to its unit holders. The income of managers and trustees, if not permanent residents of the Republic, which is generated from services they offer to ICIS is exempt from income tax. 26
  • 27. Professionals Professionals • Fund Regulator: Central Bank of Cyprus, • Investment Manager Regulator: Cyprus Securities & Exchange Commission. • Investment Manager – Harvest Financial Services Ltd • Internal Auditor: KPMG Advisory Services Ltd • Administrator – Hellenic Bank Public Ltd • Custodian - Hellenic Bank Public Ltd • Auditors – PKP Professional Services Ltd • Legal Advisor – Drakos & Efthymiou - Tornaritis Law • Hellenic Bank Public Ltd • Wall Street Global LLC • Interactive Brokers LLP • Deutsche Bank Securities Israel Ltd- via Hellenic Bank PLC. • XNET European Broker Systems 27