1. Generating Equity Returns With Downside Protection David Nowacki Managing Director 1

2. The BlackPearl Fund of Hedge Funds aims to capture equity returns in a smooth and consistent manner by avoiding big draw downs The fund in made up of 4 hedge funds with each fund using a unique strategy aiming to generate positive returns irrespective of overall market conditions. At any given time one of the strategies may not be working however this is usually offset by one or more of the another strategies that is generating positive returns Because the strategies are uncorrelated to one another it means that even though at any given time there may be a strategy that is not working it is likely that one of the other strategies is generating positive returns About The Fund 2

3. T HE P ROBLEM The problem with most peoples equity portfolios is that even though there diversified among stocks most of their stocks go up and down with the market and hence don’t offer any true diversification from the general market itself. The GFC was a great example. While most people thought they were diversified by spreading their risk among different stocks and funds they had no diversification from the general market, with nearly all funds suffering significant losses All standard equity portfolios and managed funds are very much tied to the general market (the index) and float up and down with the market hence they do a really poor job of protecting investors against market down turns. Most managed funds do not have a strategy of protecting investors in times of economic stress. They say they are long term investors. We call this buy and hope. Index funds by definition follow the market and hence will suffer significant losses in times of market downturns. People in or close to retirement can not afford to suffer significant drawdown's in their nest eggs as they do not have the time and earning capacity to recover their losses. 3

4. W E C AN H ELP 4

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6. 6 BlackPearl FOHF's Total Cumulative Return99.32% Annualised Return Since Inception22.37% Winning Months80.50% Worst Peak to Valley Drawdown-1.49% Volatility6.48% *Inception Date1/02/2012

7. Contact Information Managing Director: David Nowacki Email: david@blackpearlcp.com.au www.blackpearlcp.com.au Tel: 02 9262 1563 7