FOREXPERF CORPORATION AG

SEEKING TO GENERATE PROFITS

BY

CAPITAL PRESERVATION AND STEADY PERFORMANCECAPITAL PRESERVATION AND STEADY PERFORMANCE

• PRESERVE WEALTH

• GENERATE CAPITAL GROWTH UNDER ALL MARKET CONDITIONS

• ACCESS TO CAPITAL AT ALL TIMES

OBJECTIVES

• TRADING YOUR SEGREGATED ACCOUNT WITH DISTINCTION

• NO MANAGEMENT FEES

• PERFORMANCE FEE ONLY WITH HIGH WATERMARK

PORTFOLIO MANAGEMENT• The traders rely on their experience in

managing total risk.

• Absolute Performance is an investment philosophy that aims at remaining at the surface level described in Chart 1.

• Active Forex trading is an absolute investment strategy that will compound above the equities and bonds market in the

TRADING PHILOSOPHY

COMPOUNDING AND DRAWDOWNS

•Risk Management perspectives :

- Benchmark-driven investment process =>

risk is defined as tracking risk

- Absolute investment process => risk is

defined as total risk

•Managing Tracking risk : unhedged participation in

any boom/bust sequence

•Managing Total risk : reducing risk when the return

opportunity set s changes to the participants above the equities and bonds market in the coming 5 years. E.g. 1000 to 1500 basis points above the risk-free rate.

• Capital will not evaporate in the interim.

• Expectation for risk adjustment returns is much higher and less volatile than equities.

• An absolute return approach is part of our active asset management principles.

opportunity set s changes to the participants

disadvantage

•The philosophy and culture resulting from this

differentiation is our main pillar for trading

CONTROLLED VERSUS UNCONTROLLED

EXPOSURE TO RISK

Managing total risk means having a higher compounding

rate of return with lower downside risk

APPROACH TO RISK MANAGEMENT

Controlled total risk: Lower downside swings

(and hence lower overall volatility), higher

compound rate of return.

participants have positive utility from

compounding capital and negative utility from

large absolute financial losses.

Uncontrolled total risk: Erratic swings on both

sides (positive as well as negative), hence lower

compound rate of returns. compound rate of returns.

Asymmetry: Largest drawdown come from

Equities (light blue line), i.e. lower

compounding, while lowest returns for Active

Trading Entities (dark blue) are not lower than

equities. Active Trading Entities have a higher

compounding rate of return, since Active

Trading Entities are managing downside risk in

a controlled fashion.

METHODOLOGY (1/2)

Our Forex Managed Account Program employs a short-

term, opportunistic currency trading strategy in the G10

spot foreign exchange market.

It combines an integrated discretionary trading

methodology with a proprietary semi-systematic trading

system, advanced risk management and market-adaptive

money-management techniques.

Our decisions rely on in-depth research and sensible

decision-making processes based on probabilities. We

follow a discretionary investment methodology where

discipline, judgment and experience are also factors to

develop and monitor our trading strategy. We have been

developing a proprietary multi-factor trading technique

containing the categories below:

1. entry/exit rules with formulas and conditions

(it is the simplest step)We employ behavioral finance, probabilities and chaos

theory using market and technical analysis for timing:

prices and charts patterns, battery of indicators,

psychological resistance, support levels of prices and

markets data such as price volatility and volume.

(it is the simplest step)

2. reversals

3. risk-management

4. profit targeting

5. profit management

6. money management

7. position management

RISK-MANAGEMENT & MONEY-MANAGEMENT

CONTROLLED VERSUS UNCONTROLLED EXPOSURE TO RISK

Our pillars:

• Diversified and dynamic trade allocation methodology

• Limited leverage 1:1 to 1:15

• Average margin levels within a 3%-10% range

METHODOLOGY (2/2)

VOLATILITY & PERFORMANCE TARGETS

Delivering low volatility and low drawdown with results

that are uncorrelated to traditional assets such as bonds,

equities, indices and/or both traditional and alternative

funds

Overview:

• Discretionary Trading methodology revolves around

three key axes: Fundamental, Quantitative and • Favoring intraday movements, with low exposure,

predefined stops to limit risk and trailing stops technique to protect profits

• Positions rarely kept overnight

• Constant placement of stop-losses, monitoring of stops, profit-stops adjustment and profit-taking targets

• Maximal daily drawdown set at -0.5% to -0.7%* tolerance per day on multiple positions (not on single trade)

three key axes: Fundamental, Quantitative and

Technical, used in synergy.

• Manual trade entry supported by state-of-the art

computerized tools for analysing and monitoring our

trade ideas and our positions

• No transaction costs enable full transparency and

allow for real-time risk profile vs. performance profile

measurement

• Volatility target below 5%

FOREXPERF CORPORATION: Wanting what the market wants vs. forecasting

We have developed a methodology based on investment discipline and strict money management for long-term. We assess current market conditions to define a clear money management plan, based on scenarios with probabilities. We use rational tools, not to forecast “the future” in a deterministic and linear fashion, but to envision many different possible future outcomes, to estimate their probabilities and to monitor the correctness of our decisions.

OPERATIONAL SETUP – ONE MASTER

ACCOUNT

Trades sent by FX broker to the Depositary BankTrades booked with FX broker

Trades sent by FX broker to the Depositary BankAllocated per account by FX brokerTrades booked with FX broker

Depositary BankTop-tier Regulated EU bank (HSBC)

Segregation of clients’assets

Profit allocation according

to respective accounts’ size

Depositary BankTop-tier Regulated EU bank (HSBC)

Segregation of clients’assets

Profit allocation according

to respective accounts’ size

Sub-account 1Sub-account 2

Sub-account 3

participant 1

participant 2

participant 3

HOW DOES IT WORK?

Via Limited Power Of Attorney (LPOA), Forexperf Corporation

is only granted management of participants’ accounts via a

Master Account with Institutional trading features and advantages

on execution, pricing, spread

•Besides, the regulated FX broker will ensure that:•Besides, the regulated FX broker will ensure that:

•Each participant is provided with her segregated account hosted

by the FX Broker’s Depositary Bank (top-tier EU regulated

bank)

•Each participant has secured web-access to her account

•Money transfers, either deposit or withdrawal, can only be made

by the participant on her account (as per LPOA)

TRADERS PROFILE (1/2)

- JEAN-MARC BLOCH

2000-2010: Independent Asset Manager/Advisor – Alchemy Managers Ltd - to financial structures – to funds of funds setup and management,designed tailored made primary market structured products with SocGen CIB, Asset Advisor to life insurance dedicated funds,Proprietary Trader on indices and currency markets. Designed quantitative model for allocation on Lyxor Managed Accounts platform.

1999-2000: Global Senior Technical Analyst at UBS AG in London, Associate Director, Active Advisory Team on global Equities,Indices and Currencies. Generated advanced trading tactics on global Equities,Indices and Forex to internal clients within UBS group (Warburg, Brinson, Private Banking).

1997-1999: Sales Support at BLOOMBERG L.P. in London and in the Benelux, Technical Analyst Specialist & Sales Support servicing Banks,Investment Funds and Corporate trading desks / proprietary trading such as at IKEA, STORA, TRACTEBEL, PETROFINA, CLT-UFAInvestment Funds and Corporate trading desks / proprietary trading such as at IKEA, STORA, TRACTEBEL, PETROFINA, CLT-UFA

1997: Futures Trader: set up and operated a trading desk for SOLARIS CAPITAL MANAGEMENT, a proprietary trading firm based in Paris;whose founder joined Commodities Corp. (an elite trading structure owned by Goldman Sachs ) in Monaco in 1997

1996 : Currency Trader for FRANKWELL INVESTMENT in San Francisco. He was on Major Currencies: Swiss Franc, Deutschemark, Sterling, Yen.

1995: Market Maker Assistant on Equity & Index Options for the SBF-MONEP SA, the Options Exchange in Paris,where he started his career in financial markets.

1993: graduated from French Business School, ESIAE in Paris, obtained a BSc degree in Finance,major in Investment Banking and Capital Markets,with a thesis on hedging strategies for corporate treasurers (ELF, Pechiney, Saint Gobain, Aerospatiale).

TRADERS PROFILE (2/2)

- DIDIER MORIN

2007- 2011: French CPA (Commissaire aux Comptes - Expert-Comptable – Paris)Independent Fund Director / Fund Consultant in Luxembourg – at :ME Business Solutions ( since October 2011)

Laven Financial Services (2010-11)

MDO Services (2007-10)

Consulting on funds and management company setup, corporate governance, risk management and investment compliance forConsulting on funds and management company setup, corporate governance, risk management and investment compliance forregulated investment scheme.Independent Director for investment management companies and regulated funds domiciled in Luxembourg.Liaising with Depositary banks and Fund Administration services for operational setup and compliance/risk monitoring.Risk manager for alternative funds and Luxembourg based regulated management companies:-Financial and risk reporting to the Luxembourg regulator (CSSF).

Programmer on C++ (automated trading signal).Proprietary Trader on Forex.

2005-2007: Senior Auditor for KPMG Luxembourg - Audit of financial entities (funds, management company, holdings). Proprietarytrader on CFDs and Futures (CAC 40 only).

2001-2003: Senior Auditor for AACE (Paris) - focused on auditing small and listed companies (real estate, commercial entities).

2001: Junior Accountant for Mazard & Guérard S.A., French leading accounting and auditing firm

2001: graduated from a French Business School, ICS Bégué in Paris

• Diversification from all other traditional investments such as equities and bonds

• Program working on the biggest liquidity in the world

• Higher return expectation than traditional assets of traditional funds

• Maximum downside risk is controlled and limited

FOREXPERF CORPORATION

FOREX MANAGED ACCOUNTS BENFITS

• Fully transparency, account accessible 24/7 at Forex broker

• You may access your account at any time

• You may transfer funds in or out any time you choose, you solely have control on your funds

and their transfers

• All trades are listed in real time

FOREXPERF CORPORATION

FOREX MANAGED ACCOUNTS CONDITIONS

• Minimum Investment: USD/EUR 50,000

• Regulation: FX Broker regulated internationally

• Forexperf Corporation’s contractual relationship is Limited Power of

Attorney (LPOA) implying no right to transfer your funds, only trading /

giving orders to your account

• Liquidity / Transparency: Daily / 24-7• Liquidity / Transparency: Daily / 24-7

• No Signup fees / No Entry fees / No Exit fees: 0 / 0/ 0

• Management fees: 0% per annum

• Performance fees ONLY : 30% with high watermark / calculated monthly

independently by FX broker

• No Hard lock up - no redemption period

• No hidden fees or commission - no accounting fees

–This presentation is for the confidential use of only those

persons to whom it is distributed and is not to be reproduced,

distributed or used for any other purposes. By accepting

delivery of this presentation, each recipient agrees to treat this

discussion document as strictly confidential and not to

reproduce, distribute or otherwise use this discussion document

or any of its contents without the prior written consent of

Forexperf Corporation

–This presentation is for information and discussion purposes

only. It contains observations and comments of a preliminary

nature which are made on the basis of unverified information

and on limited due diligence by Forexperf Corporation. No

representation is made or assurance given that such

statements, views, projections or forecasts are correct.

DISCLAIMER

No part of this presentation may be reproduced, stored in a

retrieval system, or transmitted in any form or by any means,

including photocopying or recording, without the written

permission of Forexperf Corporation .

Forexperf Corporation AG is a Société Anonyme set up under

the laws of Switzerland with capital of CHF 100,000 having its

registered office at c/o Juris Treuhand AG, Industriestrasse 47,

6300 Zug, and registered under trade registry number CH-

170.3.036.525-2

Past results are not necessarily indicative of future results, as

returns may vary according to market conditions.

statements, views, projections or forecasts are correct.

Trading foreign exchange on margin carries a high level of risk,

and may not be suitable for all investors. The high degree of

leverage can work against you as well as for you. Before

deciding to invest in foreign exchange you should carefully

consider your investment objectives, level of experience, and

risk appetite. The possibility exists that you could sustain a loss

of some or all of your initial investment and therefore you should

not invest money that you cannot afford to lose. You should be

aware of all the risks associated with foreign exchange trading,

and seek advice from an independent financial advisor if you

have any doubts. No “safe” trading system has ever been

devised, and no one can guarantee profits or freedom from loss.

In fact, no one can even guarantee to limit the extent of losses.