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CIS PROSPECTUS GUIDELINES A DR&CF PRESENTATION

CIS PROSPECTUS GUIDELINES A DR&CF PRESENTATION. COVER PAGE . State Full Name of CIS and country of incorporation Name of any sub funds covered by Prospectus Identify the Names of the Sponsor and Manager Prospectus Date & Time Limit for Distribution (1 year and 20 days) TTSEC Disclaimer.

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CIS PROSPECTUS GUIDELINES A DR&CF PRESENTATION

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  1. CIS PROSPECTUS GUIDELINESA DR&CF PRESENTATION

  2. COVER PAGE • State Full Name of CIS and country of incorporation • Name of any sub funds covered by Prospectus • Identify the Names of the Sponsor and Manager • Prospectus Date & Time Limit for Distribution (1 year and 20 days) • TTSEC Disclaimer

  3. GENERAL INFORMATION • Responsibility Statement Signed by Directors of the CIS • Table of Contents- lists all sections of the prospectus • Investor Statement- urges investors to read prospectus before investing • Glossary- definitions of all technical terms

  4. ORGANIZATION OF THE CIS • The Prospectus must indicate the legal structure of the CIS(i.e. Trust or Company) • The key persons in the CIS must be identified and their functions stated • Any affiliations/relationships that may be potential conflicts of interests to the CIS must be disclosed

  5. CORPORATE INFORMATION State the names and addresses of the following persons connected to the CIS: • Sponsor • Manager • Investment Adviser • Trustee/Custodian • Auditor • Lawyer • Banker

  6. INFORMATION SUMMARY • Warning to investors that this information is only a summary and they should read the entire prospectus before investing. • The Information Summary should contain a summary of all information contained in the Prospectus, without omitting reference to material information in the prospectus that may affect the decision to invest.

  7. INFORMATION SUMMARY The following information must be included: • Investment Objective & Strategy • Risks of investing in the CIS • Suitability for investors • Calculation of Net Asset Value & Returns • Fees & Expenses • Material Contracts • Withdrawal Restrictions

  8. INVESTMENT OBJECTIVE & STRATEGY • State the Primary Investment Objective of the CIS • Indicate if the CIS will focus on a primary sector, geographic location or instruments • State the strategy the CIS will use to achieve its investment objectives • Any guarantees or insurance contracts arranged for protection of the CIS’ assets

  9. INVESTMENT SUITABILITY • State the class of investors for whom the CIS will be a suitable investment • Indicate the class of investors for whom the CIS is NOT a suitable investment • Indicate the maximum level of investor risk tolerance for whom investment in the CIS is appropriate

  10. INVESTMENT RESTRICTIONS The prospectus must disclose that the investment strategy is subject to the following restrictions: • 10% Control Restriction • 10% Concentration Restriction • 10% Restriction on Illiquid Securities

  11. RISKS TO CONSIDER • This section should advise the investor of all possible risks that may affect the decision to invest in the CIS. • Each of the 5 General Risks of investing should be duscussed, namely Interest Rate, Political, Market and Currency Risk. The investment strategy of the CIS must be related to each of these risks.

  12. RISKS TO CONSIDER • Risks that are unique to the CIS due to its investment strategy must be discussed. • Examples of these risks include risks of concentrating investments in a particular geographic region or economic sector or risks of investing in derivative instruments.

  13. CALCULATION OF NET ASSET VALUE PER UNIT Net Asset Value (NAV) must be calculated on every business day. The following aspects of NAV calculation must be disclosed: • Methodology for Calculating NAV • Mechanism for Valuing Assets of the CIS • Name of Independent Valuer (if any)

  14. CALCULATION OF RETURNS • The methodology for calculation of performance data of the CIS must be disclosed. • The prospectus must contain an example of the calculation of the performance data, and an example of how this data will be presented.

  15. FEES & EXPENSES • This section should disclose all fees and expenses that will be charged either directly or indirectly to CIS unit holders. • Includes front end & back end loads as well as early withdrawal fees. • Fees paid to any parties to the CIS (eg. Manager) must be disclosed. The amount of the fixed fee or fixed percentage must be stated.

  16. PROSPECTUS RENEWALS Prospectuses that are being renewed must include the following: • Comparative Annual Financial Statements for most recently completed financial year; • Interim Financial Statements for most recently completed financial quarter; and • The ten largest holdings of the CIS.

  17. OTHER INFORMATION • Limits on Withdrawals • Related Party Transactions • Material Contracts • Documents available for inspection • Litigation against any party to the CIS

  18. THE END

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