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CFM Bank House 1 Index SRI Operating Memorandum


CFM Bank House 1 Index SRI Operating Memorandum

Custodian & Broker

Introduction The CFM Bank House 1 Index (the “Index”) was formed by Capital Financial Markets Limited (“CFML”) in September 2011.

Operating Memorandum This Operating Memorandum details the basis by which the Index will be managed and how the index levels are calculated.

Reference Strategy The Index is based on the performance of an underlying reference strategy called the CFM Bank House 1 Strategy (the “Strategy”) and the rest of this document details how this Strategy operates.

Strategy Manager The Strategy is managed by Capital Financial Markets Limited (“CFML” or the “Strategy Manager”) of Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG. CFML is a specialist provider and issuer of contracts for difference and spread bet contracts. CFML is licensed by the Isle of Man Financial Supervision Commission (“FSC”). CFML is a wholly owned subsidiary of Capital International Limited (“CIL”). CFML is a member of the Capital International Group.

Investment Adviser The Strategy Manager has appointed Bank House Investment Management Limited (“Bank House”) of 2 Tavistock House, 5 Rodney Road, Cheltenham, GL50 1HX as the strategy investment adviser. Bank House is regulated by the UK Financial Services Authority

(“FSA”).

The Strategy Manager has appointed Capital International Limited (“CIL”) of Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG as lead custodian and broker to the Strategy. CIL provides international dealing, custody, investment management and portfolio administration services. At the time of publication, CIL administered over $4 billion of assets. CIL is a member of the London Stock Exchange and is licensed by the FSC. CIL is a member of the Capital International Group. CIL may from time to time also elect to use one or more sub-custodians to hold strategy assets.

Participation Units Participation in the Strategy will be sub-divided into standard participation units with a nominal value of £1 each. The Strategy Manager may issue additional units or cancel units as necessary to facilitate contributions to or withdrawals from the Strategy.

Valuation The Strategy will be valued on a mark to market basis quarterly on the last calendar day of each month. The Strategy Manager may at its absolute discretion determine additional valuation dates on an ad-hoc basis. The Strategy’s value will be determined by deducting the total liabilities from the total assets of the Strategy. The value of the assets and liabilities of the Strategy will be determined in accordance with CFML’s standard strategy valuation policy, which is available on request and may be published from time to time on CFML’s website.

Unit Pricing The net asset value per unit will be calculated by dividing the net asset value of the Strategy by the total number of units participating in the Strategy. The Directors reserve the right to adjust the unit price on any valuation date to reflect the approximate true cost or value per unit associated with any investment or redemption from the strategy.


Publication of Unit Pricing

Investment Strategy

The unit price of the strategy will be available on request from CFML. The unit price may also be published on CFML’s website. CFML will additionally endeavour to maintain pricing of the strategy on Bloomberg.

The investment strategy is to maintain exposure to a focused number of collective investment schemes, equities and other securities and take advantage of other opportunistic investment strategies.

Contributions & Withdrawals

The Strategy will not utilise leverage or borrow against the assets of the strategy.

The Strategy is a private strategy operated by CFML. From time to time CFML may choose to contribute additional monies to or withdraw monies from the Strategy at its absolute discretion. Contribution and withdrawals may only be made on a valuation date. The amount of the contribution or withdrawal (after deduction of any charges) divided by the unit price on that valuation date will determine the number of units invested or disinvested. The Strategy is subject to certain restrictions and minimum notice periods with respect to withdrawals.

Investment Objective

Leverage & Borrowing Powers

Restrictions The Strategy may only maintain exposure to securities approved by the Investment Adviser.

Risk From time to time to the investment strategy may well have a focused nature, and consequently there may be times when there are higher levels of volatility and risk when compared to more traditional diversified investment strategies.

Fees, Charges and Expenses An initial Set-Up Fee of 1% will be deducted at outset.

To maximise returns and manage volatility via investment in a wide range of asset classes.

An Investment Administration Fee of 0.7%per annum will be calculated and deducted quarterly.

Base Currency

The Set-Up Fee and the Investment Administration Fees are inclusive of commission payable to the Investment Manager and all custody and administration charges.

Sterling

Management Approach The strategy is managed by the Strategy Manager following the investment advice and recommendations made by the Investment Adviser.

The Investment Adviser will be entitled to an investment advice fee, which will be deducted and paid directly from the assets of the Strategy. For further details prospective investors should contact the Strategy Manager or the Investment Adviser. Financial Advisers may be paid initial and ongoing commission and these amounts will be levied in addition to the Set-Up Fee and the Investment Administration Fee. For further details prospective investors should contact their financial advisers. All dealing and clearing costs, miscellaneous and legal costs will passed onto the strategy.

www.capital-iom.com


Capital Financial Markets Limited Capital House Circular Road Douglas Isle of Man IM1 1AG www.capital-iom.com T : +44 (0) 1624 654200 E: info@capital-iom.com Capital International Limited and Capital Financial Markets Limited are members of the Capital International Group Capital International is a member of the London Stock Exchange and is licensed by the Isle of Man Financial Supervision Commission Capital Financial Markets Limited is licensed by the Isle of Man Financial Supervision Commission Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG

CFML - SRIOM BH1I - V1.03-09.11

Contact Details


CFM - Bank House 1 Index - V1.03-09.11  

CFM Bank House 1 Index SRI Operating Memorandum

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