ANDBANK BAHAMAS · Advisors portfolio 2015. Brazil Acquisition of Banco Bracce Banking License 2015. Uruguay Incorporation of an Investment Advisor and a new Representative Office

ANDBANK BAHAMAS

Table of Contents

1. The Bahamas

Overview

Political & Judicial System

Financial & Regulatory Environment

Living & Working

2. Andbank

At a Glance

Flexible & Independent

Multi-Custodian & Multi-Jurisdiction

A Leader in Solvency

The Growth in Numbers

Our Global Presence

3. Portfolio Management

Our Investment Philosophy

Total Return

Traditional

Customised Solutions

The Bahamas

ANDBANK

Portfolio Management

4

The Bahamas Financial Centre

5

Private Banking Since 1930

Independent Since 1973

Strict banking Confidentiality

Tax-free Environment

Ideal second home

The Bahamas. Overview

6


Private banking and trust services

since the 1930s

Ideally located in close proximity to North, South and

Central Americas

Direct flights from the USA, Panama, Canada, the UK

and Europe; near future from Russia

Strong public/private sector partnership catering to

foreign investors

Stable judicial and financial systems designed

specifically to ensure stable growth of the country`s

domiciled private banks

Has offices belonging to 7 of the world’s top 8 private

banks

7


Same time zone as New York and Toronto

30-minute flights from Miami and Fort Lauderdale

6 major airports, 32 seaports and a full service shipyard

700 islands and nearly 2,500 cays

200-square mile free trade zone

Possibility for Economic Permanent Residency after a USD 500,00 real estate

investment (includes private islands)

8

The Bahamas. Political and judicial system

Sovereign and independent since 1973

Uninterrupted, British-style parliamentary democracy since 1729

Member of the British Commonwealth of Nations, United Nations and Organization of American

States

Highest ranking nation for civil liberties and political rights by the World Bank

English Common Law legal system

Robust community of nearly 1,000 lawyers

Multi-tiered judicial system where the final appellate court is Her Majesty’s Privy Council in London

9

The Bahamas. Financial and regulatory environment

Strict bank confidentiality laws

The Bahamas upholds the principle that investors

have a right to privacy concerning their affairs

The Central Bank of The Bahamas enforces

absolutely conformity and consistent unity with the

Basel Committee and the Financial Action Task

Force

Active participant in organizations that enforce

Anti-Money Laundering and the Countering of

Terrorist Financing

Strict banking confidentiality and adherence to

international regulations are enforced and ensured

by:

I. The Central Bank of The Bahamas

II. The Securities Exchange Commission of The

Bahamas

III. The Bahamas Compliance Commission

IV. Registrar of Insurance Companies

10

The Bahamas. Financial and regulatory environment

Developed tax-free environment

Investment grade credit rating

Highest GDP per capita and lowest annual inflation rate in the region

No capital gains, corporate earnings, gift or inheritance taxes

No stamp duty on brokerage

252 licensed banks and trust companies

120 broker dealer and investment advisory firms

7 legal entities for private investors to choose from:

I. Trusts

II. Foundations

III. Investment Funds

IV. International Business Companies

V. Segregated Accounts Companies

VI. Exempted Limited Partnerships

VII. Private Trust Companies

11

The Bahamas. Living and working here

Practicality and luxury in a second home

Possible to obtain a Permanent Residence and the right to work in one’s own business

Non-permanent resident work permits are valid for up to 3 years, and cost from USD 350 to USD

12,500

Residence options include gated waterfront communities with concierge residential management

services and a full suite of amenities ….

Albany

Baha Mar

Old Fort Bay

Lyford Cay

…to grand estates on private islands

Eleuthera

Exuma

Bimini Islands

ECIS and NAIS-accredited private schools in Nassau

Two major hospitals

The Bahamas

ANDBANK


13

Andbank, Private Bankers since 1930

Experience and focus in private banking

• We are specialists in wealth management (>10 M€) since 1930

• As a private owned company, we distinguish ourselves by the independence of our

management

• We are a multi jurisdiction bank with maximum flexibility

• Following a high-end tradition in Private Banking, we do not participate in investment

banking activities nor in corporate banking

We create long-term value

• Our bank is owned by the third generation of two families with a long banking tradition

• We have a long term value-creating strategy, with total dedication to continuous improvement of our customer’s asset management

14

Andbank Shareholders structure

Andbank Shareholders structure – December 2014

Ribas Duró Family

(Reig Finances, SAU –

Reig Patrimonia)

Cerqueda Family

(Cerqueda Donadeu, SA –

AndosinsCapital)

Other shareholders

Managing Partners

44,8%

31,2%

23,0%

1,0%

15

Milestones of Andbank 2000 - 2014

2000. Bahamas Banking License

2001. Andorra Merger Agrícol &

Banca Reig

2001. Switzerland Wealth Management

and Investment Advisor

2004. Panama Representative

Office

2006. Mexico Representative

Office

BVI Asset

Management Company

México Joint-venture in Columbus. Independent

Wealth Management

Advisor

Panama Banking License

Uruguay Acquisition of

Quest. Brokerage Firm

Luxembourg Asset

Management Company

Uruguay Representative

Office

Monaco Acquisition of Monte Paschi

subsidiary (Banking License)

Brazil Acquisition of

LLA. Asset

Management License &

Broker Dealer

Spain Acquisition of a Brokerage and

a Agency Company

(Joint-venture with Barcelona

Medical Association)

Luxembourg Banking License

Panama New Broker-

Dealer License

Miami Broker-Dealer

Asset Management

and Investment

Advisor

Spain Luxembourg’s Bank Branch

Miami Membership

FINRA Broker-dealer

2000-2007 2008 2009 2010 2011 2012

Madrid Monaco Luxembourg The Bahamas Panama Merger

2013

2014. Spain Acquisition of

Banco Inversis’ Private Banking

Division

2014. Miami Acquisition of Swiss Asset

Advisors portfolio

2015. Brazil Acquisition of Banco Bracce

Banking License

2015. Uruguay Incorporation of an Investment

Advisor and a new Representative

Office of Andbank Panamá.

2014-2015. Israel Agreement for acquisition of

Sigma Investment House (Wealth

and Asset Management

License – 60%)

Spain Banking License

Spain Company for

Collective Investment Institutions.

Andbank Wealth Management

BVI Extension of the License - Asset Management

2014-2015

16

Andbank today

Group Key Figures

AuMs

Gross Operating Income

Net Operating Income

Net Profit

Solvency (%)

Liquidity (%)

2012

11.048

189,7

72,2

56,6

21,39%

66,00%

2013

13.473

194,6

86,4

64,1

20,69%

67,33%

2014

21.451

220,3

86,1

64,3

16,68%

61,22%

2015 (June)

22.340

127,0

40,2

29,8

17,90%

69,13%

17

… And is closer to its European peers:

Same size as Mirabaud and half net profit of Lombard Odier

AuMs (M EUR)

Total

21.451

22.451

(x 1,0)

178.779

(x 8,3)

361.716

(x16,9)

Net Profit (M EUR) 60,3

28,8

(x0,5)

99,8

(x1,7)

381,7

(x6,3)

Ratio

(Net Profit /

AuMs Total)

0,281% 0,128% 0,056% 0,106%

Source: Lombard Odier and Pictet Results December 2014 (Press Release), Mirabaud Results 2014 from June 2014

Key figures comparative – December 2014

18

Andbank, constantly growing since 2008

AUMs evolution from 2008 to 2015 (in M EUR)

xx% CAGR (Constant Annual Growth Rate) xx

+22,94%

6.469 7.171 7.696 9.161

11.048

13.473

21.451 22.340

2008 2009 2010 2011 2012 2013 2014 June 2015

19

With internationalization as a key figure

Andorra

International

Private

Banking

Evolution of Andbank AUMs weight –Andorra and IPB

83,6% 78,5% 72,9%

61,5% 53,2%

43,4%

27,6% 25,2%

16,4% 21,5% 27,1%

38,5% 46,8%

56,6%

72,4% 74,8%

2008 2009 2010 2011 2012 2013 2014 June 2015

20

And profit growing at the same pace of AUMs

+12,7%

Net profit evolution of Andbank Group (in M EUR)

% CAGR

Profit has doubled during the period 2008 – 2014

31,4

44,4 40,8

54,2 56,6 64,1 64,3

2008 2009 2010 2011 2012 2013 2014

21

Andbank Group

Strong Solvency and Liquidity

Bank Solvency1

Julius Baer Group Ltd 22,00

UBS AG 18,50

ANDBANK 16,92

Deutsche Bank AG 16,10

Morgan Stanley 14,10

Goldman Sachs Group Inc/The 13,80

Royal Bank of Scotland Group P 13,20

Bank of America Corp 13,10

Banco Santander SA 12,20

BBVA 12,00

Credit Agricole SA 11,80

JPMorgan Chase & Co 11,60

BNP Paribas SA 11,50

Credit Suisse Group AG n.d.

Bank Liquidity2

Credit Agricole SA 71,95

ANDBANK 61,22

Credit Suisse Group AG 51,54

Royal Bank of Scotland Group P 47,41

Julius Baer Group Ltd 44,33

JPMorgan Chase & Co 41,01

BNP Paribas SA 29,96

Bank of America Corp 29,45

UBS AG 25,09

Banco Santander SA 24,52

Goldman Sachs Group Inc/The 22,59

BBVA 19,33

Morgan Stanley 19,29

Deutsche Bank AG 11,49

1. Tier 1 / RWA ; 2.Cash and equivalents / Deposits and other short-term liabilities

Source: Bloomberg 27/03/2015 (Closing data at 2014 / 2013)

22

A multinational group with 1,007 employees

Andorra

International

Private

Banking

Headcount evolution Andorra and IPB (in #)

319 311 318 327 329 346 366 350

60 101 190

263 305 393

641 650

2008 2009 2010 2011 2012 2013 2014 2015

23

We are present in 11 countries, leaders in Latin America

Europe

USA and Latin America

Andorra - Headquarters - Banking License - Andorran Funds and Portfolio Management Company C/Manuel Cerqueda i Escaler, 6 AD700 Escaldes-Engordany Andorra T. +376. 873.333

Switzerland - Asset Management and Investment Advisor Company Place du Molard, 3 1204 Genève. Suisse T. +41. 228.183.940

Monaco - Banking License 1, Avenue des Citronniers - BP 97 MC 98002 Monte-Carlo Principauté de Monaco T. +377. 93.253.013

Luxembourg - Banking License - Luxembourg Fund and Portfolio Management Company 7A Rue Robert Stümper L-2557 Luxembourg T. +35. 227.497.61

Spain Andbank España S.A. - Banking License - Management Company of Collective Investment Undertakings Paseo de la Castellana, 55 3ª 28046 Madrid. España T. +34. 91.206.28.50 Medipatrimonia Invest S.L. - Independent Investment Advisor Passeig de la Bonanova, 47, 2º 08017 Barcelona. España T. +34. 93.567.88.51

Brazil

- Banking License

Av. Brigadeiro Faria Lima,

2179 – 8º andar Jd.

Paulistano, CEP 01452-000

São Paulo - SP. Brasil

T. +55. 11.3095.70.70

Mexico - Columbus

- Independent Investment Advisor

Blvd. Adolfo López Mateos 2370, 1º - Colonia Altavista

01060 México D.F. , México

T. +52. 555.377.28.10

EEUU

- Asset Management Company and Investment Advisor

- Brokerage Firm

1221 Brickell Avenue,

Suite 1550

Miami, FL 33131. USA

T. +1. 305.702.06.00

Uruguay

- Representative Office

Dr. Luis Bonavita 1266

WTC Torre IV - Of. 1901

11300 Montevideo. Uruguay

T. +598. 262.868.85

Uruguay

- Representative Office

Edificio Calypso Apto. 002 Rambla Artigas entre Calle 15 y Calle 17 Punta del Este, Maldonado. Uruguay T. + 598. 262.446.56

Brazil – LLA

- Fund and Portfolio Management Company

Av. Brigadeiro Faria Lima,

2179 – 8º andar Jd.

Paulistano, CEP 01452-000

São Paulo - SP. Brasil

T. +55. 11.3095.70.70

The Bahamas

- Banking License

2nd, Floor - One Montague Place, East Bay Street

P.O. Box AP 59223, Slot 417 Nassau, The Bahamas T. + 1.242. 394.70.90

Panamá

- International Banking License

- Brokerage Firm

Torre Generali (piso 26)

Samuel Lewis Avenue, Street 54

East, Obarrio Area. Panamá

T. +507. 263.66.96

Uruguay

- Yuswer International, S.A. Investment Advisor


WTC Torre IV - Of. 1901


T. +598. 262.868.85

Uruguay - Quest

- Securities Agency

- Brokerage Firm


WTC Free Zone, Of 1101


T. +598. 262.623.33

24

Andbank has closed 2014 with presence in 11 countries

11 Countries 7 Banking Licenses 3 Asset

Management Co

5 Wealth

Management Co

3 Brokerage Firms 2 Rep. Office 41 Branches

The Bahamas

ANDBANK


26

Our investment philosophy

Capital Preservation

– Our highest priority across every investment

Risk Conservation

– For us, it’s all about maximizing performance at the risk level you’re most comfortable with

Monthly Investment Outlook Updates

– Constant, multi-level in-depth analysis by a team with an average experience of 8 years in the

field; that’s what’s behind our recommendations

Agility

– We ensure the most optimal level of investment liquidity to keep your portfolio safe

Total Transparency

– In addition to regular performance reporting, we are always available to answer your questions

27

Portfolio Management. Our investment philosophy

We will present you with various alternatives for managing your wealth

• Total Return, • Traditional

• Personalized

During each review, we work together to refine your wealth

objectives

We examine your return and risk preferences, your investment horizon,

liquidity and other restrictions

We will track your portfolio around-the-clock

At our disposal we have a

sophisticated and progressive suite of investment analysis tools

Together we review the growth of your portfolio

Using easy-to-understand,

transparent reporting

Together we will analyze the best investment opportunities

All the while considering your

situation, personal values, tastes and aversion to risk

28

Portfolio Management. Total return

Overview

Goal: to preserve capital in bear markets and maximize

yield in bull markets

Avoids holding a static portfolio: a flexible and

dynamic investment approach to managing the

investment mix of the portfolio

Risk: Customisable to your tolerance

Approach: Yield hungry only when suitable

Asset allocation: Variable depending on the markets

Investments considered:

All

29

Portfolio Management.

Example: Allocation USD (total return)

Short-

term

Bonds

Hedge

Funds

Private

Equity

MSCI World

S&P 500

Senior

Loans

High Yield Cash Investment

Grade Gold

Gov’t 2y

Gov't 7-10y

Active and flexible management using

highly-liquid funds; tailored to your exact

return and risk preferences

Asset

Money Market iShares Floating Rate Bond ETF

Bond, Short

Term iShares Short Treasury Bond ETF

PIMCO US Dollar Short Maturity Source ETF

Pimco Short Term Municipal Bond ETF

Goverment 2y iShares 1-3 Year Treasury Bond ETF

Goverment 7-

10y iShares 7-10 Year Treasury Bond ETF

Investment

Grade

Schroder International Selection Fund - Global Corporate

Bond

Munis iShares National AMT-Free Muni Bond ETF

Senior Loans PowerShares Senior Loan Portfolio ETF

High Yield BlackRock Global Funds - US Dollar High Yield Bond Fund

Pioneer Funds - U.S. High Yield

Emerging Debt Dexia Bonds - Emerging Markets

Aberdeen Global - Select Emerging Markets Bond Fund

Gold SPDR Gold Shares

Commodities THREAD LUX-ENH COMM-AU

Dollar Index

(Inv) POWERSHARES DB US DOL IND BE

Hedge Funds db x-trackers db Hedge Fund Index UCITS ETF

Private Equity PowerShares Global Listed Private Equity Portfolio ETF

REIT M&G Investment Funds (8) - M&G Global Real Estate

Securities Fund

S&P 500 Pioneer Funds - U.S. Research

Robeco US Large Cap Equities

MSCI World Amundi International SICAV

Aberdeen Global - World Equity Fund

Emerging

Markets Amundi Funds - Equity Emerging Internal Demand

Morgan Stanley Investment Funds - Emerging Markets

Equity Fund

Frontier

Markets iShares MSCI Frontier 100 ETF

30

Portfolio Management.

Example: Performance (%) since 1999

40

60

80

100

120

140

160

180

200

220

240

260

01/1

2/1

999

01/0

6/2

000

01/1

2/2

000

01/0

6/2

001

01/1

2/2

001

01/0

6/2

002

01/1

2/2

002

01/0

6/2

003

01/1

2/2

003

01/0

6/2

004

01/1

2/2

004

01/0

6/2

005

01/1

2/2

005

01/0

6/2

006

01/1

2/2

006

01/0

6/2

007

01/1

2/2

007

01/0

6/2

008

01/1

2/2

008

01/0

6/2

009

01/1

2/2

009

01/0

6/2

010

01/1

2/2

010

01/0

6/2

011

01/1

2/2

011

01/0

6/2

012

01/1

2/2

012

ConservativeModerateExpertEonia + 300 bpsS&P 500

31


Portfolios

Conservative: lower risk and fees with an

emphasis towards safer investments

Moderate: a balance between risk and

reward

Expert: constant active management with an

emphasis towards higher yielding

investments

*Performance fee represents the percentage of positive yield performance that is taxed; LIBOR for USD

portfolios

5%

10%

15%

Conservative Moderate Expert

Risk Budgeting

Fees


Management: 0,50% 1,00% 1,50%

Performance*: 1.10 x Euribor (1.10 x Euribor) + 1.50% (1.10 x Euribor) + 4.00%

Transaction: None

Custody: 0,0653%

32


Quantitative Management

Conservative method used to protect your assets by objectively investing into technically well-

performing funds

Defines the maximum annual losses/gains of each fund with 95% probability

*LIBOR for USD portfolios


Maximum loss: 4.00% 8.00% 15.00%

Avg. annual profitability*:

Euribor + 1.00% Euribor + 2.50% Euribor + 4.00%

Recommended period:

2 years 3 years 5 years

33

Portfolio Management. Traditional

Overview

Goal: to provide a stable profit stream in line with market

performance

Maintains a stable investment mix with an asset distribution

reflecting your risk tolerance


Approach: Passively follows the most successful markets; assumes that riskier assets reward more over the long term

Asset allocation: Stable mix


Emphasis towards traditional and liquid investments

34

Portfolio Management. With you at the helm

Customised Management & Advisory

Goal: to provide a completely transparent and highly-interactive

wealth management experience tailored precisely to your exact

requirements and goals

Gives you the complete freedom to choose the

management style you would like


Approach: Your choice

Asset allocation: Your choice


All

Minimum Investment:

1. USD 3.000.000 2. USD 5.000.000, with personal

advisory

35

Contact Us

Andbank Bahamas

Telephone. +1 (242) 394 7090/1

Fax: +1 (242) 394 7089

One Montague Place, East Bay Street 2nd Floor

Nassau, The Bahamas

www.andbank.com

Documents

ANDBANK BAHAMAS · Advisors portfolio 2015. Brazil Acquisition of Banco Bracce Banking License 2015. Uruguay Incorporation of an Investment Advisor and a new Representative Office