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HIGH YIELD
GEORGIA
HIGH YIELD
$/US$ 2.2483
Strategy Details
Inception date
1/11/2013
Base currency
US$, , or $
Total net assets
> $ 2.0 million
Target annualised return (net of all fees & expenses)
US$ 12.5%/$ 17.5%
1
Maximum maturity of the underlying assets
5 years
Management fee (% of the NAV p.a.)2
2.0%
Performance fee (% of the annualised net return above the Hurdle Rate)3
20%
Hurdle rate (regardless of the Base Currency)
10% ($) / 5% (other currencies)
4
Expenses (% of the NAV p.a.)
<0.25%
Minimum investment
US$10,0005
Maximum investment (negotiable)
US$250,000
Frequency of account statements
Monthly
Minimum holding period
180 days
Redemption notice
90 days
Redemption FX rate
The NBG rate as of the settlement date6
Portfolio Construction & Limits
Maximum permissible % of the NAV
Georgian issued instruments
>80%
Georgian Treasury bills
<25%
US$, denominated bank deposits & CDs
<25%
$ denominated bank deposits & CDs
<50%
Promissory notes issued by non-bank lenders ($ & US$)
<75%
Loans to non-bank lenders (primarily $ & US$)
<90%
Working capital credit facilities
<75%
Managed P2P lending opportunities (primarily $)
<75%
Bank-issued subordinated debt and preferred shares
<25%
Similar instruments in Azerbaijan, Armenia, Ukraine, Kazakhstan & Central Asia
<20%
Other instruments
<10%
Long only, no leverage, no derivatives, no currency hedging
Top Five Holdings
As of 30 June 2015
Instrument
Currency
Yield7
% of NAV
Structured working capital facility
$
37%
16%
Loan to a non-bank lender
US$
15%
12%
Managed P2P lending
$
57%
8%
Loan to a non-bank lender
US$
15%
6%
Loan to a non-bank lender
US$
15%
6%
Total
48%
# of instruments held
23
% of NAV in $
64%
% of NAV in US$
36%
Investment Team & Track Record
The Team
Investment Committee
Relevant experience
Lado Gurgenidze
21 years
Goga Melikidze
11 years
Tengiz Lashkhi
9 years
Investment Manager
Tengiz Lashkhi
9 years
Track Record
Since 17 April 2014, the individuals comprising the Investment Team have been managing JSC Liberty Finance,
the SPV established by Liberty Securities and its staff, which seeks to provide high total return from current
income by offering investors high-yield Participating Promissory Notes and has the investment mandate
similar to that of the HY IAS, with the same list of the Permissible Investments and portfolio construction
principles, but has a significantly lower risk profile. Please see the Liberty Finance Factsheet at
http://bit.ly/1KGn1Ot.
Performance History
As of 30 June 2015
Cumulative8
Last Month
YTD
Cumulative8
Annualised
0.99%
6.00%
40.04%
32.29%
$
3.71%
4.83%
11.79%
9.80%
US$
Since June 2013, the individuals comprising the Supervisory Board of LF have been managing the
Managed Peer To Peer Lending Individual Account Strategy (MP2PL IAS), which invests in short term
unsecured consumer loans originated via eLoan.ge.
Managed P2P Lending IAS Performance
Currency
Net Annualised IRR
eLoan
55.11%
$
Contact Details
Liberty Securities Ltd
The Liberty Tower, 74 I. Chavchavadze Ave., Tbilisi 0162 Georgia
www.libertysecurities.ge
Sales
Temur Iremashvili, Director
Mobile: +995 591 158 877
temur.iremashvili@libertysecurities.ge
sales@libertysecurities.ge
Skype: temur_75
US$
2.6%
3.7%
3.5%
1.9%
2.9%
2.7%
2.6%
3.0%
1.0%
0.4%
1.9%
-0.4%
0.1%
1.5%
6.1%
1.9%
4.4%
5.3%
-0.1%
0.9%
1.4%
1.1%
0.9%
3.8%
3.0%
1.4%
2.5%
3.2%
2.6%
0.7%
0.9%
-0.5%
-4.4%
0.1%
-3.8%
-3.3%
1.5%
3.7%
0.1%
3.7%
$
56.8%
34.1%
US$
16.6%
10.0%
Investment Manager
Tengiz Lashkhi
Mobile: +995 591 709 280
tengiz.lashkhi@libertysecurities.ge
Skype: tengiz.lashkhi
Cumulative
Annualised
EUR
44.2%
26.6%
GBP
19.2%
11.6%
Risk Metrics
Volatility**
Sharpe Ratio***
$
0.40%
0.15
US$
0.45%
0.01
*The notional HY IAS Investment Units are set out for illustrative purposes only for the ease of tracking and assessing the historical
performance of the Individual Account Strategy. The NAV per notional HY IAS Investment Unit is calculated on a daily basis and equals the
aggregate NAV of the Individual Account Strategy divided by the total number of the notional HY IAS Investment Units
**Volatility represents the standard deviation of daily returns
***The current yield (6.287%) of the 12-month Georgian Treasury Bills has been used as the risk-free rate
Not a bank deposit or a regulated investment product | Not insured | May lose value
24/07/2015
GEORGIA
Investment size:
Minimum Investment: US$10,000 or equivalent in $, or (investments less than US$10,000 or equivalent in other currencies may be accepted by Liberty Securities in its discretion,
subject to a $ 300 administration fee charged upon subscription)
Maximum Investment: US$250,000 (negotiable) or equivalent in $, or
Account Statements
Account statements will be provided to the HY IAS investors monthly via email.
Taxation
A presentation accessible at the following link http://bit.ly/1F3pVhE summarises certain Georgian tax considerations that may be relevant to the asset management clients of Liberty
HIGH YIELD
Securities that are investors in the various individual account strategies (IAS) and other products offered and/or managed by Liberty Securities or are holders of the promissory notes
issued by Liberty Finance, a majority-owned subsidiary of Liberty Securities, or by JSC EasyMoney, a micro finance lender affiliated with Liberty Securities. The summary is limited to
Georgian taxation issues, does not purport to be comprehensive, does not constitute tax advice or opinion, and prospective investors are strongly encouraged to consult their tax
advisors. No assurance is made that the considerations summarised may not be challenged by the Revenue Service of Georgia.
Account Opening and Investment Subscription (by invitation only, enquiries are welcome)
An investor fills out the Account Opening Application Form, signs an Asset Management Agreement and opens an Asset Management Account with Liberty Securities. These
documents can be accessed at http://bit.ly/1K6fhEx.
The investor wires the funds into his/her Asset Management Account and instructs Liberty Securities that the funds are earmarked for the High Yield: Georgia Individual Account
Strategy.
After receiving the investors funds, Liberty Securities places the cash in the Master Account, designated specifically for the HY IAS purposes.
This document has been produced by Liberty Securities Ltd (Liberty Securities). Liberty Securities and/or persons connected with it may effect or may have effected a transaction or transactions for their own account in the
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numerous factors, actual events may differ substantially from those presented. Liberty Securities assumes no duty to update any such statements. Any holdings of a particular Instrument discussed herein are under periodic review
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distributed in the United States and the United Kingdom, and in any other jurisdiction where such distribution is unlawful. An investment in the Instruments has risks, including the risk of losing some or all of the invested capital.
Performance includes reinvestment of all distributions. Past performance is not indicative of future results. Prior to investing, a prospective investor should carefully review all the relevant information and factors, consider the risks
and suitability of the Instruments based on his/her own investment objectives and financial position and consult with his/her financial, legal and tax advisors. Some of the Instruments described herein may not be a regulated
financial instrument and, as such, may not require the publication of a prospectus or similar document.
Not a bank deposit or a regulated investment product | Not insured | May lose value
24/07/2015