GLOBAL FUND EXCHANGE I N V E S T I N G
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V I TA L
A S S E T S
“Our planet was not given to us by our parents. It was loaned to us by our children. Invest wisely.�
OUR VISION We firmly believe that forward-thinking, purpose-driven investments can yield profits while helping to make the world a better place for ourselves, our children and generations to come. Our investors have made an active, responsible choice to align their portfolios and their investment decisions with our planet’s most pressing needs in energy, agriculture, water and scarce resources. INVEST W ITH PURPOSE.
L E AV E A L E G A C Y.
ABOUT US A N R I C B L AT T Chairman and Founder Principal activities: strategy allocation, portfolio management, manager research, due diligence, new product development & structuring Experienced specialist investor in energy, hedge funds, systematic trading and commodities Successfully built a number of multi-manager fund management companies over past 15 years
LAURALOUISE DUFFY Chief Executive Diverse 20 year career in finance and hedge funds Experience across multitude of asset classes, both emerging & developed markets Extensive background in risk management, manager due diligence, legal, compliance, product structuring and development, and hedge fund operational management
TEAM MEMBERS
INVEST IN MEGA MACRO TRENDS STRATEGY HIGHLIGHTS • 80+ million people joining the planet each year • Rapid industrialization of India, China, South East Asia, Latin America causing severe strain on existing resources • Severe water stress experienced in most productive parts of the world • Exciting opportunity set throughout agriculture and scarce resource complex through niche boutique specialists across the world
FLAGSHIP VEHICLES • Earth Wind & Fire Fund
• AquaTerra Fund • Hybrid Energy Fund
• White Label Fund Solutions • Bespoke Consulting & Portfolio Construction
SIGNIFICANT ALPHA ADDED THROUGH: • Diversification across, geographies, sectors, asset classes, instruments & styles • Strategic manager selection & deep due diligence • Strategic & tactical global macro asset allocation
CLEAN ENERGY SIGNIFICANT GROWTH • Record $260 billion global new investment in clean energy in 2011 • Sky-rocketing growth in Asia. China’s earmarked investments in clean energy over coming decade to top $750 billion (12 th Five year plan) • In 2010, wind, solar, wave and biomass energy drew $187 billion in new investment compared with $157 billion for natural gas, oil and coal GLOBAL RENEWABLE ENERGY POLICIES • Pressing need for new power capacity is spurring clean energy investments in South & Central America, the Middle East & Africa • Number of countries with policy support for renewable energy policy more than doubled from an estimated 55 in 2005 to 119 in 2011 ENERGY SMART TECHNOLOGIES
• Fastest growing sub-set of clean energy • Technologies designed to use electricity and fuel more efficiently across all modalities, including: • advanced transportation
• building-integrated solar
• smart grid
• energy storage
• digital storage
• batteries
• energy efficient lighting
• fuel cells
ENERGY RISING DEMAND FOR ENERGY • Primary energy use expected to grow 40% by 2025, with 93% of growth to come from developing world economies. • By 2025, global oil demand is predicted to be 60% greater than today • Annual rate of oil consumption growing swiftly in China (+7.5%) & India (+5.5%) PARADIGM SHIFT • Fossil fuel energy sources are diversifying and becoming more efficient in light of “peak oil” concerns • Many of OPEC nations, including Saudi Arabia, are already pumping oil from known “post peak” fields • Once field has peaked, rate of decline is dramatic and can be as much as 10%/year ‘UNCONVENTIONAL’ OIL • ‘Big Oil’ conglomerates shifting focus to shale gals, natural gas, tar sands and deepwater offshore fields • Billions invested every year to develop ‘unconventional’ sources of fuel • New horizontal drilling techniques are revolutionizing natural gas industry
AGRI CULT URE COMPELLING REASONS TO INVEST • Limited resources, increasing demand and rising food prices • SIGNIFICANT opportunities from “field to fork” in commodities, farming & seed technology and agribusiness EXPONENTIAL POPULATION GROWTH • How will we feed 9 billion+ people by 2050? FAO reports global agriculture production must increase 70% to meet new demand • Nearly all new demand coming from developing world, where agricultural demand is set to double • Historic shift in global dietary patterns as middle class shifts to a more meatcentric/energy-intensive diet. (Significant knock-on effect on water and arable land use) • Noteworthy trend in developing countries, where meat consumption is growing 3X faster than rest of the world. FOOD SUPPLY/DEMAND GAP • Investment in agriculture must rise 47% to $279 billion/year at a minimum • Despite years of advances, gains in agricultural yield per acre have slowed to less than 1% a year • Agriculture science and technology attracting new investment and government imperatives from countries around the globe
WAT E R FRESHWATER SCARCITY • Current freshwater sources satisfy only 50% of world demand. By 2025, the world will need 25% more water than is currently available • Water scarcity is an economic constraint in major growth markets such as China, India, Indonesia, Australia and the Western United States • By 2025, per capita water availability in water-stressed Gulf region will likely decrease by 50% AGRICULTURE/ENERGY/WATER NEXUS • Nearly 70% of global water consumption is used for agricultural irrigation. In developing nations, this can be as high as 90% • Global agriculture wastes approximately 60% of the 2,500 trillion liters of water it uses every year • Dangerous aquifer depletion occurring in major agricultural centers
INEFFICIENT WATER INFRASTRUCTURE • Municipalities commonly lose up to 50% of their water supplies to leaks
• U.S. water infrastructure system requires $1 trillion in infrastructure upgrades • Gulf countries plan to invest $300 billion plus in crucial water projects
• China plans to invest $622 billion on water infrastructure over the next decade
N AT U R A L R E S O U R C E S WIDENING RESOURCE DEFICIT
• Resource demand from developing world to exceed developed world by 2015 • Demand for iron-ore, aluminum and copper to double over next 15 years, as China develops into world’s largest consumer of metals DID YOU KNOW? BY 2030, ADDITIONAL DEMAND WOULD REQUIRE… • Another Pilbara region (Australia) every 5 years to meet iron demand • Another Saguenay (Canada) every 9 months to meet aluminum demand • Another Escondido (Chile) every year to meet copper demand • Another Hunter Valley (Australia) every year to meet coal demand • Another Ranger (Australia) every four years to meet uranium demand
COAL IS KING • One 1,200 MW coal-fired power plant is being built every week in China. China is on track to triple coal consumption and become a net coal importer EXPANSIVE INVESTMENT OPPORTUNITIES IN: • Mining and exploration
• Minerals
• Precious and rare earth metals • Energy commodities • Timber and paper
• Resource production chain
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