Montreux Capital Management Zug AG2nd Floor Baarerstrasse 14 - 166300 Zug, Switzerland

Phone: +41 (0) 41 561 33 62Fax: +41 (0) 41 561 32 00Email: info@montreuxcm.com

The Montreux Care Home Fund: A refreshing approach to Alternatives

Acquisitions

The care home market presents an incredible opportunity for funds with investment strategies such as that of The Montreux Care Home Fund. Many operators of care homes are currently over-leveraged and are seeking to dispose of assets. 70% of care homes are not up to standard and smaller businesses are looking to relinquish control to an established care home operator with the expertise, negotiating power and �nancial backing to help them meet the standards required by the Care Quality Commission.When considering a potential acquisition we employ a stringent due diligence process to ensure the care home is right for our investors. In terms of purchasing care homes, the current economic crisis has turned the market in favour of the buyer. This allows the Montreux Care Home Fund as the buyer to purchase care home businesses at discounts to value. Our pre-acquisition evaluation involves the following:

• Jones Lang LaSalle produces an independent valuation of the property and the care home business for the Fund. Should we wish to acquire the property and care home, a report will also often be commis-sioned by another independent valuer for the lender.

• To complement the valuation of the business, WSM Partners, a respected City accountancy �rm, perform �nancial due diligence of the home’s historical accounts and current trading performance.

• To complement the valuation of the property, a team of architects may perform a thorough architectural survey of the building to ensure there are no issues with the structural integrity of the building and to look at opportunities to increase occupancy.

• BML Healthcare may provide independent quality control and regulatory audit to assess the home’s CQC compliance.

UK Care Market 2043

UK Care Market 2013

UK Student Accommodation - 2013

Market

The UK care market is estimated at £26 billion and is set to double in the next 30 years. The market is 10x bigger than student accommodation.

• The Government have the rapidly ageing population at the forefront of their agenda but, as of yet, have not found an a�ordable solution to the demographic shift. The private sector is addressing this insu�ciency for the foreseeable future, which presents an excellent opportunity for investors wanting a stable growth and comfort that their investment is socially responsible.

• The 85-95 age group is the fastest growing demographic in the UK and is set to double in the next twenty years.

• Because of this, cases of dementia alone will reach 10 million in the next 20 years.• 1 in 4 NHS beds are occupied by patients diagnosed with dementia, costing the public over £200 a day

per bed. The NHS is constantly looking to outsource to private care homes where they can be looked after better and for less.

Transparency• NAV prices are produced independently of the fund. The value of the fund is calculated by European Fund

Administration, which is the sole independent fund administration specialist in Europe.

• The underlying assets are regularly valued by an independent member of the Royal Institution of Chartered Surveyors, utilising a mark to market valuation methodology which demonstrates accurate, current real world values rather than the traditional model and market which utilises a hypothetical scenario that is not in touch with current market conditions.

• Information on the performance of the UK businesses is available at Companies House.

• We are, at the time of writing, the only care home fund that owns the properties and businesses outright, which means: no sale and leaseback, cost mitigation via economies of scale and complete control of the fund’s underlying assets.

LiquidityLiquidity is always going to be a consideration for investors into property funds and we have the following procedures and limits in place to make the fund relatively liquid:

• Lending against assets (LTV) is set at a maximum of 50% across the group with current gearing representing close to 25% of the total value of the fund.

• Typically the fund aims to hold 10% of its net asset value in cash.

• The fund operates a 60 business day redemption period, which is lenient compared to other property funds that require 6 months’ notice or more.

• Furthermore, the European Securities and Markets Authority (ESMA) and the Commission de Surveillance du Secteur Financier (CSSF) regulate this fund and are enhancing liquidity control and reporting.

ProtectionThe Montreux Care Home Fund is established in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier (CSSF) which, as a regulatory body, is itself subject to EU regulation.

• Luxembourg: With 3 trillion dollars in domiciled fund assets, Luxembourg is Europe’s largest Fund jurisdiction.

• The custodian, KBL Private Bankers, have legal responsibility of the assets custody.

• All investment decisions are approved by the independent Board of Directors, which is regulated to act in the interests of the investors. The Directors collectively boast 100 years’ experience in the investment industry and they will not approve any investments that are not consistent with the fund’s investment objectives and policy.

• Unless �nancing banks require otherwise, the homes are independently valued by Jones Lang LaSalle, which is a member of the Royal Institution of Chartered Surveyors and the second largest healthcare valuer in Europe.

• All the care home businesses and properties are purchased from independent parties, at or below market values.

• The Fund’s returns comprise increases in the values of the properties and the care home businesses, as well as monthly pro�ts from the operation of the care homes.

The Montreux Care Home Fund is a Dedicated Fund of KMG SICAV – SIF, a Luxembourg-registered “Société d'Investissement à Capital Variable” organised under Luxembourg Law of 13th February 2007 relating to specialised investment funds (SICAV-SIF). The KMG SICAV-SIF is domiciled in Luxembourg. The Luxembourg regulator is “Commission de Surveillance du Secteur Financier” (CSSF). In accordance with the risks associated with The Montreux Care Home Fund, the shareholders have to be

“well-informed” or institutional/professional” investors. No guarantee is given or intended as to the completeness, timelines, or adequacy of the information provided herewith. Past performance of any investment is not always indicative of future performance and investments are subject to fluctuations in exchange rates. The value of the fund

and its share classes are calculated without taking into account any placement or redemption fees and assuming constant reinvestments of dividends. The information given on this page does not constitute an offer nor a product recommendation, it is provided for individual information purposes only. This is not a fund offering as

specified by law. Such a document is obtainable free of charge at the registered office of KMG SICAV – SIF.

(NAV �gures as at August 2013)

Listing Date

Performance

0.98

1.00

1.02

1.04

1.06

1.08

1.10

1.12

1.14

Oct

11

Nov

11

Dec

11

Jan

12

Feb

12

Mar

12

Apr 1

2

May

12

Jun

12

Jul 1

2

Aug

12

Sep

12

Oct

12

Nov

12

Dec

12

Jan

13

Feb

13

Mar

13

Apr 1

3

May

13

Jun

13

Jul 1

3

Aug

13

€EURO

$USD

£STERLING

1.16

1.18