Proposed Fund with Sharpe Ratio of 1.04 The essential goods and services provided by our set of industries are well positioned to take advantage of global trends in demand – population, globalization and resource scarcity. Demand for the essential goods in our portfolio are expected to be both recession tolerant and diversified over a variety of stable and growing sectors. Our fund provides investors with a way to capitalize on this growth through strategically chosen companies with consistently successful strategies in their respective markets.

1. The Malthusian
Growth Fund
Investing in essential industries for
growing populations.
Frank Hollowell, Jason Langton, Molly McPherson, Lisa Schaefer

2. Strategy
Mission Statement
Stocks
Approach Food Production and Retail Portfolio
Investor Portfolio Healthcare
Covariance
Clothing
Efficient Portfolio Frontier
Utilities
Oil & Gas
Weights
Transportation Benchmarks
Telecommunications
Agenda

3. Essential Good, noun:
A physical item required by a consumer in order to sustain
health or life. Some essential good types that are produced by
business operators include food, water, gasoline and heating
fuel, as well as residential building materials that can be used
to construct homes for shelter.
Source: BusinessDictionary.com

4. Hybrid Bottom-Up Approach:
INDUSTRY
Essential, Recession-Tolerant Goods
COMPANY
P/E, Beta, Return on Capital (3 years of fundamentals)
COUNTRY
Located in or exporting to high-population growth area
Weighting:
Equities Only 125/25 Strategy
• Growth-focused fund • Allows more efficient diversification of
• Included stocks with low variance to active management risk
stabilize fund
Approach

5. • The essential goods and services provided by our set of
industries are well positioned to take advantage of global
trends in demand – population, globalization and resource
scarcity.
• Demand for the essential goods in our portfolio are expected
to be both recession tolerant and diversified over a variety
of stable and growing sectors.
• Our fund provides investors with a way to capitalize on this
growth through strategically chosen companies with
consistently successful strategies in their respective markets.
Mission Statement

6. • This is a strategy for investors with high risk
tolerance, looking for high risk and return
High Risk potential. The objective of this strategy is to
Tolerance seek high capital appreciation.
• Fluctuations in portfolio value can be
Long high, and is ideal for investors 20-30 years
Global
Investment from withdrawals.
Outlook
Horizon
• The focus on diversifying internationally and
on essential goods in emerging markets will
appeal to investors with a global awareness
and familiarity.
Investor Profile

7. AMC PM PR TB
• Philippines • Thailand
• Expected • Expected
Alaska Milk Corporation: Produces Milk and Return: 5.09% Return: 4.68%
Dairy goods for export and immediate
consumption. • Expected • Expected
Variance: Variance:
1.03% 0.57%
• P/E Ratio • P/E Ratio
18.77 18.75
• Beta YTD: • Beta YTD:
0.441 0.56
• Market Cap • Market Cap
US$496 m US$208 m
President Rice Products Ltd: Manufactures and
exports instant rice and noodle to the U.S., Middle
East, and Pacific Rim countries.
Food Production

8. Booker Group AVT Natural
PLC Products Ltd.
• United • India
Kingdom • Expected
Booker Group, PLC is an internet-enabled grocery
wholesaler for the independent sector utilizing a just-
• Expected Return:5.31%
in-time distribution system, and also operates cash and Return: 3.16% • Expected
carry outlets. • Expected Variance:
Variance: 4.40%
0.32% • P/E Ratio:
• P/E Ratio: 23.53
18.69 • Beta YTD:
• Beta YTD: 0.76
0.71 • Market Cap:
• Market Cap: US$ 50 m
AVT Natural Products Ltd. Operates plantations of
tea, coffee, and vanilla; extracts colors and flavors from
US$ 2 bn
natural sources; and supplies its products to the food
industries in India and elsewhere throughout the world.
Food Retail

9. Lululemon Pacific Textile
Athletica Inc Holdings Ltd
• Canada • Hong Kong
• Exp Return: • Exp Return:
7.91% 5.49%
Lululemon Athletica Inc: Produces athletic clothing
including fitness pants, shorts, tops and jackets for • Exp • Exp
yoga, dance, running, and general fitness. Variance: Variance:
2.49% 2.86%
• P/E Ratio: • P/E Ratio:
58.27 6.56
• Beta YTD: • Beta YTD:
1.26 0.47
• Market Cap: • Market Cap:
US$ 10.8 bn US$ 951 m
Pacific Textile Holdings: manufactures customized
knitted fabrics used in a broad range of
fabrics, including men's, women's, and children's
Clothing
clothing.

10. TRP IN MERK IJ
• India • Indonesia
• Expected • Expected
Torrent Pharmaceuticals Ltd: manufactures bulk drugs
Return: Return:
and pharmaceutical formulations. Focus: cardio- 4.30% 3.76%
vascular, psychotropic, antibiotic. Subsidiaries in many • Expected • Expected
international markets.
Variance: Variance:
0.71% 0.50%
• P/E Ratio • P/E Ratio
20.89 14.4
• Beta YTD: • Beta YTD:
0.426 0.303
• Market Cap • Market Cap
Merck Tbk PT: manufactures pharmaceutical products; US$1.1 bn US$333 m
distributes pharmaceutical raw materials, chemicals
reagents, and medical instruments.
Health Care

11. AmeriGas Severomoravska
Partners LP Plynarenska A.S.
• United States • Czech
• Exp Return: Republic
AmeriGas operates an extensive storage and distribution
1.00% • Exp Return:
network, using pipelines, barges, rail cars, and tanker trucks • Exp Variance: 1.65%
to transport propane to local-market distribution locations. 0.20% • Exp Variance:
• P/E Ratio: 0.33%
33.90 • P/E Ratio:
• Beta YTD: 8.26
0.54 • Beta YTD:
• Market Cap: 0.33
US$3.7 bn • Market Cap:
US$97 m
Severomoravska Plynarenska A.S. distributes gas from
domestic transfer stations to the North Moravia region. The
Company also builds gas facilities including pipeline systems.
Utilities

12. Attock Hankook Shell
Petroleum Ltd Oil Co Ltd
• Pakistan • South Korea
• Exp Return: • Exp Return:
Attock Petroleum Ltd: Operates gasoline filling 1.89% 2.98%
stations in Pakistan and Afghanistan • Exp Variance: • Exp Variance:
0.40% 0.45%
• P/E Ratio: • P/E Ratio:
7.28 10.75
• Beta YTD: • Beta YTD:
0.74 0.34
• Market Cap: • Market Cap:
US$341 m US$253 m
Hankook Shell Oil Co Ltd: Manufactures and markets
lubricants, grease, and other petroleum products used for
cars, vessels, industrial machinery, and cutting tools.
Oil and Gas

13. Wilson Sons Han Express
Ltd. Co., Ltd.
• Brazil • South Korea
• Exp Return: • Exp Return:
Wilson Sons has its principal operations divided into six
3.28% 3.72%
business segments: port terminals, towage, logistics, shipping • Exp Variance: • Exp Variance:
agency, offshore, and non-segmented activities. 1.27% 3.19%
• P/E Ratio: • P/E Ratio:
32.57 4.36
• Beta YTD: .47 • Beta YTD:
• Market Cap: 0.32
US$1.08 • Market Cap:
billion US$21
million
Han Express Co. Ltd. provides land transportation
services. The Company specializes in transporting
petroleum and frozen products.
Transportation

14. Turk City
Telekomunikasyon
A.S. Telecom, Ltd.
• Turkey • Hong Kong
• Exp Return: • Exp Return:
Turk Telekomunikasyon A.S. is an 1.93% 4.24%
integrated telecommunications services • Exp • Exp
provider for businesses and individuals. Variance: Variance:
0.64% 1.63%
• P/E Ratio: • P/E Ratio:
12.08 12.55
• Beta YTD: • Beta YTD:
0.85 0.43
• Market Cap: • Market Cap:
City Telecom, Ltd. provides international US$ 15.3 US$ 456
telecommunications services and fixed billion million
telecommunication network services.
Telecommunications

15. WSON11 014130 PLYK MERK AMC 002960 LULU 1382 BOK TTKOM 1137
BZ KS CP APU US TRP IN IJ PM PR TB APL PA KS US HK LN AVTH IN TI HK
WSON11
BZ 0.0123
014130 KS 0.0122 0.0310
PLYK CP 0.0024 0.0034 0.0032
APU US 0.0021 0.0024 0.0005 0.0020
TRP IN 0.0059 0.0079 0.0013 0.0002 0.0096
MERK IJ 0.0049 0.0062 0.0011 0.0013 0.0026 0.0069
AMC PM -0.0003 0.0013 -0.0001 -0.0018 0.0039 -0.0007 0.0096
PR TB 0.0050 0.0052 0.0008 0.0005 0.0032 0.0014 0.0010 0.0063
APL PA 0.0025 0.0037 0.0011 0.0009 0.0014 0.0005 0.0000 -0.0003 0.0041
002960 KS 0.0047 0.0074 0.0011 0.0007 0.0037 0.0035 0.0010 0.0029 0.0002 0.0067
LULU US 0.0042 0.0004 0.0024 0.0007 0.0077 0.0038 0.0018 0.0002 0.0027 0.0015 0.0242
1382 HK 0.0093 0.0149 0.0013 0.0023 0.0081 0.0046 0.0030 0.0026 0.0026 0.0012 0.0039 0.0278
BOK LN 0.0038 0.0046 0.0005 0.0006 0.0025 0.0031 0.0012 0.0014 0.0010 0.0020 0.0016 0.0061 0.0048
AVTH IN 0.0038 0.0125 0.0032 -0.0010 0.0074 0.0058 0.0017 -0.0001 0.0034 0.0063 0.0074 0.0046 0.0044 0.0486
TTKOM TI 0.0025 0.0037 0.0021 0.0009 0.0016 0.0028 0.0000 -0.0009 0.0016 0.0018 0.0041 0.0020 0.0003 0.0043 0.0094
1137 HK 0.0045 0.0060 -0.0011 0.0008 0.0064 0.0031 0.0027 0.0033 0.0010 0.0039 0.0050 0.0048 0.0023 -0.0029 0.0000 0.0158
Portfolio Covariance

16. Local Market Risk FX Risk Total Risk
WSON11 BZ Equity (Wilson Sons Ltd) 8.51% 4.95% 11.26%
014130 KS Equity (Hanexpress Co Ltd) 16.26% 3.43% 17.86%
PLYK CP Equity (Severomoravska Plynarenska) 3.39% 4.49% 5.72%
APU US Equity (AmeriGas Partners LP) 4.51% 0.00% 4.51%
TRP IN Equity (Torrent Pharmaceuticals Ltd) 8.46% 2.99% 9.91%
MERK IJ Equity (Merck Tbk PT) 7.05% 2.26% 8.41%
AMC PM Equity (Alaska Milk Corp) 10.14% 1.81% 9.96%
PR TB Equity (President Rice Products PCL) 7.53% 1.62% 8.03%
APL PA Equity (Attock Petroleum Ltd) 6.35% 0.81% 6.48%
002960 KS Equity (Hankook Shell Oil Co Ltd) 6.72% 3.43% 8.28%
LULU US Equity (Lululemon Athletica Inc) 15.78% 0.00% 15.78%
1382 HK Equity (Pacific Textile Holdings Ltd) 16.91% 0.13% 16.92%
BOK LN Equity (Booker Group PLC) 5.68% 2.92% 7.01%
AVTH IN Equity (AVT Natural Products Ltd) 20.99% 2.99% 22.37%
TTKOM TI Equity (Turk Telekomunikasyon AS) 8.01% 3.52% 9.84%
1137 HK Equity (City Telecom HK Ltd) 12.76% 0.13% 12.76%
Risk Breakdown - US View

17. Efficiency Portfolio Frontier
0.1
0.09
0.08
0.07
0.06
Expected Monthly
0.05
Return
0.04
0.03
0.02
0.01
0
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14
Standard Deviation
Expected Annual Return: 48%
Sharpe Ratio: 1.039
Expected Standard Deviation, Annualized: 12.3%
Efficient Portfolio: 125/25

18. Portfolio Weights 125/25
40.000%
36.688%
30.000%
20.032%
20.000% 17.377%
15.807% 16.876%
8.126%
10.000%
4.433% 2.240%
%
2.156% 1.180%
0.086%
0.000%
0.000% -0.073%
-2.709%
-3.199%
-10.000%
-20.000%
-19.019%
-30.000%

19. Food Production
35%
Telecommunication
14%
Retail
4%
Health Care Oil & Gas
12% 11%
Utilities
13%
Transportation
4% Household Goods
7%
Industry Composition

20. Czech Indonesia Philippines
Republic United 11% 11%
0.01% States
Thailand
14%
23%
Brazil
12%
Pakistan
12%
Turkey
1% United South Korea
Hong Kong Canada
India Kingdom 2%
4% 5%
3% 3%
Country Composition

21. Malthusian
S&P 500
Statistic Growth Fund
Expected
Return 48.00% 12.11%
Max 12mo Return 84.9% 23.41%
Min 12mo Return 11.1% -48.59%
Sharpe Ratio 1.039 0.62
Volatility 12.30% 18.88%
S&P Summary based on data from Jan 2009 to Jan 2012.
Benchmark: S&P 500

22. • Food prices, water scarcity, and aging populations are in
the news on a daily basis
Relevance • Your money will be supporting the growth of the firms that
are leading the future in essential industries
• Globally diversified, across uncorrelated
industries, countries, and companies
Stability • Investment in companies that produce
essential, recession-tolerant goods, decreasing
volatility
• Significantly higher growth than
comparable risk-targeted portfolios
• Efficient risk management through
125/25 strategy
Growth • Firms with a track record of exemplary
performance
• Goods that are subject to increasing
scarcity and demand through population
growth
Recap

23. • Bloomberg LP Terminal, accessed April 2012.
• “Daily Treasury Bill Rates,” U.S. Department of the Treasury
<http://www.treasury.gov/resource-center/data-chart-center/interest-
rates/Pages/TextView.aspx?data=billrates>.
• Elton, Gruber, et al, Modern Portfolio Theory and Investment
Analysis, 8th ed., Wiley, 2009.
• Portfolio Research, <http://www.portfolioresearchllc.com>.
• Solnik & McLeavey, Global Investments, 6th ed., Pearson Addison
Wesley, 2009.
Bibliography