Sustainability - as a focus on investment themese is here to stay (and prosper) -

1. ANRIC BLATT
Chairman
GOBAL FUND EXCHANGE GROUP
Partner
TERRA PRIMA PARTNERS LLC
Sustainability as an Asset Class
FOOD, WATER & ENERGY
AND WHY IT’S A MUST

2. “Treat the Earth well. It was not given
to you by your parents.
It was loaned to you by your children.”
“Treat the Earth well. It was not given
to you by your parents.
It was loaned to you by your children.”

3. 7 BILLION
AND CLIMBING
3

4. 30% of the world's arable land will be unusable by 2020
50% may be unusable by 2050
with dire consequences for investors, consumers and governments.
Namib Desert, Namibia 2007

5. 5
0
2
5
7
9
1950
1987
Today
2040
Population in Billions
Arable Land in hectares / person
Population growth & arable land

6. 0
175
350
525
700
1970
1980 1990
2000 2010 2020 2030 2040 2050
6
POPULATION
AVERAGE CALORIES PER PERSON
FEED GRAIN NEEDED - All Indexed back to 100 in 1970

7. 7
0
175
350
525
700
1970
1980 1990
2000 2010 2020 2030 2040 2050
POPULATION
AVERAGE CALORIES PER PERSON
FEED GRAIN NEEDED - All Indexed back to 100 in 1970

8. 0
175
350
525
700
1970
1980 1990
2000 2010 2020 2030 2040 2050
POPULATION
AVERAGE CALORIES PER PERSON
FEED GRAIN NEEDED - All Indexed back to 100 in 1970
“It takes 1,000 tons of water to make 1 ton of grain and 7 tons of grain to produce 1 ton of beef.

9. 9
“If we unbalance nature, mankind will suffer.
We must consider future generations: a clean environment is a human
right like any other.
It is therefore part of our responsibility toward others to ensure that the
world we pass on is as healthy as, if not healthier than, we found it.

10. “go long agriculture and water and
go to the beach ......
... put those investments in the
bottom drawer for 10 years.
Agriculture and water would even
beat energy investments”
Invest in agriculture and water,
says BlackRock CEO Larry Fink

11. we are extracting fresh water at
rates up 100 x the natural
replenishment rate.

12. To avoid political turmoil and
regime changes, governments
have no choice but to
continue investing in
food, water and energy
infrastructure

13. THE CALM BEFORE THE STORM

14. Sir David King, Chief Scientific Adviser UK Government
“The global battle for natural resources – from food and
water to energy and precious metals – is only beginning, and
will intensify to proportions that could mean enormous
upheavals for every country.”

15. If we unbalance nature
mankind will suffer.

16. Today with over 2 Billion people who
are malnourished, we must address a
crisis unfolding.

17. The facts are undeniable and the outcome subject to the actions
taken by you and me today.
100,000 people die every day of starvation.

18. The world's geopolitics will be
shaped by the global race for
four strategic resources:
food, water, energy & metals

19. 10,000 species have gone extinct in just the past 100 years

20. if bee populations fall too far, our food
supplies will be seriously threatened . . .
Over 70% of our food is pollinated by bees . . . .
5.9 Million (1947)
2.62 Million (2012)
1.8 Million (2013)
4.5 Million (1980)

21. This crisis for mankind and our planet is
simultaneously our greatest challenge, as well
as a once in a lifetime investment opportunity
for visionary investors.

22. 22
by 2025 the agricultural sector will experience
serious water shortages.
Crop losses due to water scarcity could be as high
as 350 million metric tons per year,
slightly more than the entire crop yield of the U.S.
International Food Policy Research Institute (IFPRI)

23. Leave a Legacy
that you would
like to inherit

24. 24

26. WHAT IF

27. WHAT IF WE, DO NOTHING ?

28. WHAT, IF ?

29. 29
WHAT IF WE CONTINUE DIGGING ?

30. 30
WHAT IF WE KEEP BURNING?

31. 31
Amazon Deforestation 2012. Since President Dilma Rousseff
took office in Jan. 2011, she has reversed deforestation laws
WHAT IF WE KEEP CUTTING?
DOWN OUR FORESTS

32. 32
Amazon Deforestation 2012. Since President Dilma Rousseff
took office in Jan. 2011, she has reversed deforestation laws
WHAT IF WE KEEP CUTTING?
WHEN WILL IT STOP ?

33. 33
KEEP DISCARDING ?

34. 34
WITHOUT
CONSEQUENCES

35. 35
Wondering why our children are sick ?
Kansas, July 2nd, 2007
WHAT IF WE, CONTINUE POLLUTING ?

36. 36
Fire at the Chevron oil refinery in Richmond, California, August 6, 2012
WHY DO WE KEEP BURNING?

37. enough solar energy hits
the earth in one single
hour
WHEN
to power the entire globe for a full year.

38. 38
A view of an illegal oil refinery
is seen along a creek outside
the oil hub city Port Harcourt in
Nigeria's Delta region.
WHAT IF WE KEEP LOOKING THE OTHER WAY?

39. 39
In a world where, over 1.4
billion people – 20% of the
world’s population . . .
That’s 20% of the world’s population

40. 40
. . . live in areas where the limits of
sustainable water use have already been
reached or breached.

41. 41
n o k i d h u n g r y . o r g
when already

42. 42
Deepwater Horizon, Gulf of Mexico
WHEN EVERY YEAR WE KILL MORE

43. 43
Yangtze River, Sept 2012
Dinner, Seriously ?
WHEN THIS SEEMS NORMAL ?

44. 44
1 billion people lack enough water to simply meet their basic needs.
World Health Organization
WHEN ALREADY 80 COUNTRIES HAVE
WATER SHORTAGES

45. 45

46. 46
ARE WE
GOING
TO

47. 47
WHEN

48. 48
DRINKING
THE
COOL AID
ARE WE GOING TO KEEP

49. 49

50. 50
“Slow down”
Panama, Sept 2012
WHAT IF WE HAVENT EVEN
SEEN THE EFFECTS OF CLIMATE CHANGE

51. 51
. . . . JUST THE BEGINNING
WHAT IF THIS IS ...

52. 52
what if these are your kids ?

53. 53
Rio de Janeiro
AND THIS IS . . . .
... THEIR DINNER TONIGHT

54. 54
Bangladesh Garbage
dump or playground ?
AND THIS IS . . . .
... THEIR BIRTHDAY PARTY

55. 55
FOOD, WATER & ENERGY

56. 56
AND THIS IS . . . .
... OUR LEGACY ?

57. OR ARE YOU GOING TO
TAKE ACTION ?
WATER OFF A DUCK’S
BACK ?

58. OR ARE YOU GOING TO
TAKE ACTION ?
WATER OFF A DUCK’S
BACK ?

59. - amidst these
challenges
WE MUST FIND
THE PROFIT
OPPORTUNITIES
OBSTACLE = OPPORTUNITY
OBSTACLE
OPPORTUNITY
PROFIT
GO

60. 60
IS THIS . . .
. . . OR THE
BEGINNING

61. GLOBALFUNDEXCHANGE.COM
NEW YORK + 1 212 570 7970 HONG KONG +852 8174 6688
TERRAPRIMAPARTNERS.COM

62. AND NOW,
BACK TO
MAKING
MONEY
62

63. Global energy demand to increase
50% by 2030
Weather & climate anomalies
Population growth of
80 million people/year
Significant infrastructure
underinvestment since 2008
Significant stress on global food
supply
Rapid industrialization &
urbanization of emerging markets
Severe water stress & major
increases in water demand
China, India & developing world
natural resource consumption
Peak Oil vs. Peak Cheap Oil
China’s race to super power needs
Energy, Water, Agri & Resources
WHY ? BECAUSE THEY ARE MUST OUTCOMES
Global shift towards lower carbon
energy & CO2 use
Population and income growth – the two most powerful forces behind rising
global demand for energy, water and natural resources.

64. Weather & climate anomalies
Population growth of
80 million people/year
Significant infrastructure
underinvestment since 2008
Significant stress on global food
supply
Rapid industrialization &
urbanization of emerging markets
Severe water stress & major
increases in water demand
China, India & developing world
natural resource consumption
Global energy demand to increase
50% by 2030
Peak Oil vs. Peak Cheap Oil
Population and income growth – the two most powerful forces behind rising
global demand for energy, water and natural resources.
China’s race to super power needs
Energy, Water, Agri & Resources
WHY ? BECAUSE THEY ARE MUST OUTCOMES
Investments
in Water
Investments
in Energy
Investments
in
Agriculture
Clean Energy
Investments
Global shift towards lower carbon
energy & CO2 use
Natural
Resource &
Commodities

65. MARKET DRIVERS
65
ENERGY SUPPLY SHIFT
ENERGY PRICE VOLATILITY
WATER SCARCITY
BUILDING / LIGHT EFFICIENCY
GRID UPGRADES
NEW TRANSPORT SOLUTIONS
DECLINING ARABLE LAND CONSUMER
Evolving economics driving a shift toward
renewables, natural gas, nuclear, and away from
coal and oil. Shale gas is changing the energy
landscape.
Organic and efficient products experiencing
secular growth. Consumer driven demand for
smart technology taking off
Massive capital spending required to upgrade
aging transmission and distribution infrastructure
to a smart grid.
Energy cost volatility, regulatory changes and
cost savings initiatives driving investment.
Electric and natural gas vehicles approaching
mainstream adoption. THANK YOU ELON
As per capita incomes rise, expanding protein
consumption puts the pressure on agriculture
yield, this drives technology and investment.
Supply challenges complicated by accelerating
water demand and increasing concerns with
water quality. Climate change is hitting home
Security concerns and the recognition of a need
for more diversified sourcing, as well as a
perception of “peak oil” leads to supply
constraints.
TERRAPRIMAPARTNERS.COM

66. WAYS TO INVEST WITH IMPACT
66
EQUITY FUNDS
SECTOR FOCUSED FUNDS
REAL ASET FUNDS
COMMODITY FUNDS
OTHER
Public Long Only
Mutual Funds
ETF’s
Public Hedge
Private Equity
Venture Capital
Hybrids
Bonds
Credit Funds
Ag Land
Timber
Clean (er) Energy
Water rights & entitlements
Natural resources
Green infrastructure
Green Buildings Property REITS
Agriculture
Energy
MLP
Gas
Clean (er) Energy
Solar
Wind
Water
Natural resources
Impact Assets
TERRAPRIMAPARTNERS.COM
Systematic (CTA)
Energy Relative Value
Metals

67. AGRICULTURE - THE VALUE CHAIN
67

68. WATER
68

69. THE SHALE GAS OPPORTUNITY
69

70. CLEAN ENERGY OPPORTUNITY - SOLAR
70

71. CLEAN ENERGY - WIND
71

72. CLEAN ENERGY - EFFICIENCY - LED LIGHTING
72

73. SUSTAINABILITY AS AN ASSET CLASS
73
ENORMOUS UNIVERSE
RESEARCH - NOW MORE THAN EVER
PORTFOLIO CONSTRUCTION
CONSTANT INNOVATIONS
ECONOMIES OF SCALE
GEOPLITICAL FACTORS
RISK MANAGEMENT EXIT STRATEGY
25+ Different Asset Classes
Hundreds of sub-sectors
Geographic variances
Knowing when to exit and reinvest is
critical. Kick the buy high - sell low
habit.
Diversification amongst multiple
geographies, asset classes and
managers takes deep pockets
New technology coming to market
daily, need to remain flexible
Fed Monetary Policy
Regulation & Policy
Subsidies
Full time attention to changing
conditions, profit taking and portfolio
rebalancing
Combining different asset classes to
reduce risk, reduce volatility and
improve returns
Qualitative
Quantitative
Forensic

74. OR JUST GIVE IT TO THIS GUY
74
HE’LL DO SOMETHING GOOD WITH IT
THANK YOU TO PETER FUSARO
O P P O R T U N I T Y

75. ANRIC BLATT
+1 212 888 71 57
AB @ TERRA PRIMA PARTNERS . COM
Do not follow where the path may lead
go instead where there is no path
AND CAREFULLY LEAVE A TRAIL