This factsheet is not an offer. A legally binding offer can first be made after Application...

This factsheet is not an offer. A legally binding offer can first be made after Application according to the appropriate law and in connection with a wealth management contract. So far as possible you should consult your own independant and competent legal and financial advisor or other professional advisor so as to be sure that each decision that you make is suitable to your circumstances and financial situation. Refer to your tax consultant for the relevant current situation because legal position can change.This factsheet serves simply as the basis for a comprehensive information consultation by a professional consultant with his client. Information that is used here is based on reliable sources.

FXWAVE and the companies connected with it assume absolutely no guarantee for the accuracy of the data nor for any liability for losses which occur either directly or indirectly from the use of this document or its content. Investments in foreign currencies are subject to price fluctuations. Prices can rise and fall. Previous results are not indicative for the future.

Disclaimer

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• As an asset manager FXWAVE GmbH specialises in forex trading.

• The company was founded in November 2005 and is a Member of the Swiss Association of Asset Managers (SAAM).

• We offer private and institutional investors the possiblity of including a foreign exchange strategy in their assets portfolio.

About FX-Wave

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• The Foreign Exchange Market or FX Market is the largest and most liquid financial market in the world (daily turnover approx. USD 3 trillion).

• Trading strategies can be very precisely executed.

• Exact position sizing and risk-management is possible without being bound to pre-defined trading contracts.

• There is no correlation between systems and other markets.

• FX is still not used very much by institutional investors as an asset category.

• Large volumes are possible without any loss of performance.

Why FOREX?

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• A change in the trend (direction of trading) between the major currency pairs often takes place at the start of trading in London.

• The Trading System takes positions against the trend at this time.• The purpose is to catch the direction of the day's trading and to realise at

least 50% of the day's trading range as a profit.• All positions are closed off by 23:00 at the latest.• Stops and positions are adjusted for volatility.• The System gives Long and Short positions equal weighting.• Each trade carries a risk of 1% (Leverage 2) or 2% (Leverage 4) or

5% (Leverage 10) according to requirement.

FX Wave - the Trading System

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Example of trading on 2nd February 2009

Example Chart

7:00 Limit Order placed

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Example of trading on 2nd February 2009

Example Chart

7:00: Limit Order placed

7:30: The purchase limit is reached, and the Long-position is opened at 1.2711

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Example of trading on 2nd February 2009

Example Chart

7:00: Limit Order placed

7:30: The purchase limit is reached, and the Long-position is opened at 1.2711

7:30: After the position is opened a Stop is placed. 96 pips, at 1.2615

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Example of trading on 2nd February 2009

Example Chart

7:00: Limit Order placed

7:30: The purchase limit is reached, and the Long-position is opened at 1.2711

7:30: After the position is opened a Stop is placed. 96 pips, at 1.2615

22:55: The position is closed off at the predetermined Exit moment at 1.2845. Profit 134 pips

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Profit calculation for the example trades of 2nd February 2009

Money-Management

In order to acheive optimal account growth with a calculated risk we use the Fixed Fractional Method to set the size of positions.

Even for the aggressive option, an exposure of 0.3 Kelly Fraction is not exceeded.

Risk per Trade

Stop (Pips)

Profit (Pips)

Profit (Percent)

old Account Balance Profit

new Account Balance

1% 96 134 1,40% 25.000,00 € 348,96 € 25.348,96 €

2% 96 134 2,79% 25.000,00 € 697,92 € 25.697,92 €

5% 96 134 6,98% 25.000,00 € 1.744,79 € 26.744,79 €

Risk Class 1

Risk Class 2

Risk Class 3

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Profit calculation for the example trades of 2nd February 2009

Money Management

Example of a Loss Trade

Profit are allowed to run – Losses are limited

Risk per Trade

Stop (Pips)

Profit (Pips)

Profit (Percent)

old Account Balance Profit

new Account Balance

1% 96 134 1,40% 25.000,00 € 348,96 € 25.348,96 €

2% 96 134 2,79% 25.000,00 € 697,92 € 25.697,92 €

5% 96 134 6,98% 25.000,00 € 1.744,79 € 26.744,79 €

Risk Class 1

Risk Class 2

Risk Class 3

Risk per Trade

Stop (Pips)

Profit (Pips)

Profit (Percent)

old Account Balance Profit

new Account Balance

1% 96 -96 -1,00% 25.000,00 € -250,00 € 24.750,00 €

2% 96 -96 -2,00% 25.000,00 € -500,00 € 24.500,00 €

5% 96 -96 -5,00% 25.000,00 € -1.250,00 € 23.750,00 €

Risk Class 1

Risk Class 2

Risk Class 3

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FXWAVE 1% vs. Barclay/GHS Hedge Fund Index

Performance

Trading Start in Managed Accounts, previous data simulation out of sample or own data

0

500

1000

1500

2000

2500

3000

3500

Fe

b 2

00

5

Au

g 2

00

5

Fe

b 2

00

6

Au

g 2

00

6

Fe

b 2

00

7

Au

g 2

00

7

Fe

b 2

00

8

Au

g 2

00

8

Fe

b 2

00

9

Au

g 2

00

9

Fe

b 2

01

0

Au

g 2

01

0

Fe

b 2

01

1

Au

g 2

01

1

Fe

b 2

01

2

Barclay/GHS Hedge Fund Index

FXWave 1%

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Monthly results in % with 1% Risk per Trade

Performance

Since May 2007 the Strategy has been used for Managed Accounts. The previous results are own-trading and simulation.

J an Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez

2005 -1,60 0,32 1,70 -2,00 1,64 3,39 6,64 2,13 0,96 6,98 6,97 -0,18 29,86

2006 5,87 -1,88 1,82 2,75 1,22 0,80 2,70 -0,25 -1,65 -2,00 0,92 0,72 11,29

2007 3,91 1,10 1,72 1,73 -0,59 0,16 1,68 3,57 0,54 0,26 0,63 -1,85 13,49

2008 2,85 3,42 4,27 -3,71 12,04 4,59 2,23 -3,94 18,46 -11,83 -1,33 5,17 33,20

2009 8,78 7,10 2,77 1,34 -3,09 7,89 2,06 3,08 -5,40 5,15 -9,75 -2,30 17,06

2010 4,85 -3,72 -4,71 -3,31 4,75 5,38 11,40 -2,07 8,31 -7,39 -2,55 -5,42 3,55

2011 -2,43 -4,65 -2,58 0,09 10,20 -0,54 -7,19 13,85 -2,37 0,92 3,65 -4,68 2,27

2012 8,08 2,78 11,08

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Distribution of Monthly Results

Performance

0

4

8

<-10%

-9%to -8%

-7%to -6%

-5%to -4%

-3%to -2%

-1%to 0

1%to2%

3%to4%

5%to6%

7%to8%

9%to

10%

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Distribution of Monthly Results

Performance

0

4

8

<-10%

-9%to -8%

-7%to -6%

-5%to -4%

-3%to -2%

-1%to 0

1%to2%

3%to4%

5%to6%

7%to8%

9%to

10%

Right-skewed distribution

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Correlation to Share Markets

Korrelation DAX S&P in USD

1 Jahr 0,02 0,11

2 Jahre -0,10 0,00

3 Jahre -0,14 -0,05

FXWAVE has no correlation to Share markets and is thus the ideal supplement to the asset category.

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System Stability

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49

All Trades

Long Only

Short Only

Percentage of Profitable Trades over 12 month rolling periods.

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System Stability

Relationship of Average Profit /Average Loss in 12 month rolling periods

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

2,001 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49

All Trades

Long Only

Short Only

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System Stability

Profit Factor in 12 month rolling periods

0,00

0,50

1,00

1,50

2,00

2,501 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49

All Trades

Long Only

Short Only

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System Stability

Number of Trades in 12 month rolling periods

0

50

100

150

200

2501 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49

Short

Long

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System Stability

• The success rate of all trades in every 12 month period only varies insignificantly between 48% and 60%, mostly clearly more than 50%.

• For Short Only or Long Only, the fluctuations are not significantly greater and the success rate never falls below 43% in any 12 month period.

• The Profit/Loss relationship of Trades and the Profit Factor of the System in every 12 month period is significantly greater than 1, the same is valid for the long side and the short side in isolation.

• Thus ALL 12 month periods were profitable until now, even when only one side was traded.

• The System treats Short and Long equally regardless of the market situation.

• These results demonstrate the stability of the System, especially because the key data was very similar and continually profitable for sample volumes of only an average of 200 trades in 12 months.

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• Structure: Single Strategy FX• Type: Offshore (BVI) Privatw Placement Only • Minimum Investment: EUR 50.000,-• Administrator: Circle Investment Support Services B.V., Amersfoort, Nederlands • Investment Manager: FX Wave GmbH Lachen, Switzerland• Prime Broker / Custodian: InteractiveBrokers (UK) Ltd.• Bank: Fortis Bank N.V. , Nederlands • Auditor: Deloitte• Management Fee: 2,4% p.a.• Performance Fee: 20% High Water Mark• Valoren Nummer: CH4955164• ISIN Nummer: VGG3705W1041• CUSIP Nummer: G3705W 104• Bloomberg Code: FXWAVEBVI• Date of Issue: Februar 2009

FX Wave Fund