GAA 'Q' Fund

GAA USD GLOBAL 'Q' FUND

Introduction

The first three years of the 21st century heralded sustained stock market declines which caught many global investors off guard. In general, traditional ‘long only’ fund management techniques suffer during periods of prolonged contraction.

Although many global markets fell between the end of 1999 and mid 2003, it is interesting to note a number of markets / asset classes made money over the same period, including the US Mid Cap Index and Gold. The danger, of course, of limiting investment to niche sectors or specific asset classes is that this may not prove to be an attractive LONG TERM strategy.

The truth is that SOME stocks ALWAYS perform each month, even in falling markets, but not necessarily the SAME stocks month in month out. A hypothetical monthly re-weighted portfolio of the top performing mid to large cap stocks would have consistently achieved average returns of more than 3-4% per month, had you been able to choose the stocks with the benefit of hindsight. The real question, therefore, is whether or not such stocks can be identified monthly in advance…

Introducing the GAA USD Global ‘Q’ Fund, a Fund which ties mathematical ‘Quant’ theory to a rigorously tested systematic stock selection and hedging process.

Fund Overview

The Fund seeks consistent absolute returns primarily by investing and trading in equities and equity related products of companies incorporated globally, while at the same time reducing exposure to downward movements in the market by actively managing risk. It aims to secure consistent and above average returns from a dynamic, forward looking mathematical ‘Quant’ model which relies on the structured processing and interpretation of universal stock data and forecasting.

Key Benefits

Investment Strategy

Central to the investment process are proprietary dynamic quantitative multi-factor models. These models incorporate various factors ranging from consensus earnings momentum, earning revisions, price momentum, price/earnings ratios, price to book ratios, price to cash ratios and dividend yields. The long stock positions are dynamically hedged through the purchase of put options on the underlying component indices which make up the MSCI World Index.

Corporate Strength

Issued by :

Fund Manager :

Custodian :

Administrator :

Auditor :

Legal Council :

Authority :

GAA Investment Funds Limited, Bermuda

Global Asset Allocation Limited, Bermuda

Bermuda Commercial Bank Limited, Bermuda

International Corporate Management of Bermuda Limited, Bermuda

Deloitte & Touche, Bermuda

Conyers, Dill & Pearman, Bermuda & Hong Kong

Bermuda Monetary Authority

Key Information

Name :
Launch Date :
Offer Price :
Minimum Investment :
Entry Fee :
Management Fee :
Early Redemption :
Performance Fee : Bloomberg Code: ISIN Code :

Valuation Date:

Dealing Date:

Subscription Terms:

Redemption Terms:

GAA USD Global 'Q' Fund
3 May 2004
US$ 100 per share
US$ 25,000
Zero cost of entry
1.75% per year
6% in the first year reducing by 1.2% per year to zero after year 5

10% of net new highs based on high watermark

GAAQFND BH

BMG345951682

Last business day of each calendar month

First business day of following calendar month

Funds to be cleared and application received at least three (3) working days before next dealing date

Redemption request to be received by administrator on or before 14th day of calendar month to catch next dealing date (signed original to be received before funds released)