—— Swiss MONEY MASTERS aor How an Independent Portfolio Manager Can Help Preserve and Grow Your Wealth TOKYO | « HONG KONG CG JOHANNESBURG With the complements of: TON eT a Pee a ren nn at aes eo cot anid pho gros EI ETE ITY Renae ead . ferret Se ren gaa Paar or en ere nae er ee plato peioee pores pert sekec PSB ican orm mar, aoa ead posi bets tele massieapeceey sos pes ‘an isnot guaranteed. They are affected by market vollty and by lutuations i leo exchange rates, Past performance i no guarantee of future results ard investors may IS STO e ORAM SCAR Lay mca cue CeeA MESSAGE FROM WEBER HARTMANN VRIJHOF & PARTNERS LTp. ‘Weare an independent financial services firm, with offices near downtown Zurich, ‘Switzerland. Our company is associated with several first-class private banks in Switzerland and Liechtenstein, which act as broker- custodians for ourcdient accounts. Our asset management principles are guided by conservative, long-term orient- ed capital preservation strategies. Our focus is personalized service. We are fluent in English and our clients are predomi- nantly from English-speaking countries. Each client maintains an individual account with the bank in his/her own name or in the name of a legal entity. We ‘manage every account separately under an individual, tailor-made mandate, ‘There is never any commingling of assets between clients, Downtown Zurich, Switzerland As independent asset managers, we work, closely with each client, taking into account personal circumstances, age, time frame, available capital and investment needs and preferences, ‘We, the owners and Senior Partners of WHVP, deal personally with each of our clients, You can therefore rely on dealing with the same person for years, if not decades. We know you and your objectives and we also know how to deal with Swiss and Liechtenstein banks on your behalf, _get results and solve any problems you may have, Since we ave independent, we continues on opposite page) Would You Put Your Life Savings Into This Investment? VALUE OF THE US. DOLLAR 1913-2006 Value in Terms of 1900 Source: US. Department of Commerce Guess what... you probably already have! Since 1913, the U.S. dollar has lost 95% of its value. Yet its decline has been so silent that the vast majority of Americans have no idea that their dollar wealth is slowly draining away. Of course, during this time there have been extended periods of “dollar strength.” Yet, the long-term trend is clearly down. If you're like most Americans, your assets are probably 100% in dollars — your bank accounts, your retirement plan, etc. Yet every year, these assets are silently losing value! How can you protect yourself against the dol lars terrifying loss of value? This special report shows you where to begin. “Between 2001 and 2004, the U.S. dollar dropped 25% or more against most of the world’s major currencies.” tNFive Key Advantages of Offshore Investing Ofishore investing has an undeservedly bad rep- utation. While its true a small number of individu- als and companies use offshore investments and structures for illegal purposes, a far larger num- ber take assets outside their own country to take advantage of opportunities that simply aren't available domestically. Indeed, after an exhaustive inquiry into the use of offshore centers by U.S. citizens and residents, the U.S. Senate's Permanent Subcommittee on Investigations concluded that the overwhelming majority of Americans who move funds outside the U.S. have no criminal intent! What have millions of investors in the U.S. and other countries discovered? 1. Access to investment opportunities You wouldn't know it from the mainstream finan- cial press, but international investments have been huge winners in recent years. For instance, in 2008, the U.S. market was outperformed by many other stock markets - some of which gained more than eight times as much as the US. Comparative Stock Market Performance, 2006 (U.S. dollar adjusted) = China .. .+121.0% m EU blue chips. . +21.4% m™ Switzerland. . .. +26.8% U.S, (S&P 500) . +13.6% How can you gain access to these markets? In most cases, not through a U.S. broker. Sure, a few boutique firms specialize in international shares, but to experience the full richness of the international markets, you need an offshore bank account. The Swiss and Liechtenstein private banks that WHVP recommends offer all the work for you and we make investment decisions tailored to your needs. This special report will help you under- stand the importance of an offshore “nest egg” and will also unlock some of the “mysteries” of Swiss private banking. We hope you enjoy it! ‘What to Expect when You Visit Your Swiss Private Banker By Mark Nestmann, President The Nestmann Group You arrive in Zurich, exhausted atter a grueling 14-hour flight. But waiting for ‘you at the airport is your Swiss private banker, ready to whisk you off to your hotel in his Mercedes. ‘On the 30-minute ride you discuss tomor- row’s agenda —_-a review of your account, a visit to Liechtenstein to update your estate plan and dinner at a restaurant fre- ‘quented by Picasso, which also contains many of his original works. ‘The next morning, your private banker picks you up at your hotel and drives you to his office. You meet the staff and relax with a cup of coffee, i = The Matterhorn, Switzerland’s most Famous mountain You and your private banker discuss the markets, He suggests adjusting your account to take advantage of some new ‘opportunities, Just last week, he discovered in a German- journal an offering of AAA-rated bonds with a 13% effectiveyield. The bonds are denominated in an emerging market currency that is rising both against the euro and the dollar. On the other hand, a prolonged rally in a commodity-related stock you own is coming to an end. You agree to sell the commodity stock and commit US$25,000 to the bonds. He also shows you the tools he uses to track the markets and execute trades. You know that trades will be executed quickly and efficiently because his firm has a direct link to the trading room at one of Switzerland's premier private banks, ‘A few hours later, he drives you to Vaduz, Liechtenstein, 90 minutes from Zurich, to meet with your Liechtenstein trustee. After an exquisite lunch in a private dining room overlooking Vaduz Castle, home of the Liechtenstein Royal Family, he drops you off at the office of your trustee. An hout later, he picks you up after you have met privately with your advisors (or, at your option, he can accompany you to your meeting). After returning to Zurich through a beautiful alpine landscape, he takes you to dinner. You end your meal with a traditional Swiss toast, and your private banker drops you off at your hotel. You skep contentedly, knowing that your financial affairs are in feces with experienced professionals at the helm. You also know your investments and planning are protected by strict bank secrecy laws. Your advisors and their employees have a lifelong legal obligation never to disclose the details of your account. “This is a typical day in the life of a Swiss private banker. Or rather, in the life of a ‘Swiss private banker who only works with 50-100 clients, as opposed to private bankers at big Swiss banks who are ‘expected to manage as many as 1,000 client relationships. While it was once possible to get the level ‘of personal service | just described at a Swiss bank with an investment of say, 1US$500,000, you must now be prepared services you would expect from a full-service stockbroker. And you can purchase any security in the world, not those just listed on a domestic exchange. Exchanges traded by a U.S. broker: US. only (typically) Exchanges traded by a Swiss bank: US., Canada, United Kingdom, ‘Switzerland, Germany, Italy, Japan, Hong Kong, Mexico, South Korea, Australia, ‘New Zealand, South Africa, etc. 2. Protection against a sinking domestic currency You've probably read about the steady erosion in value of the U.S. dollar in recent years. Indeed, between 2001 and 2006, the dollar lost more than one-quarter of its value against the euro and other major currencies. The long-term trend, as we've already seen, is unquestionably down. The real question is: how can you protect yourself from this almost invisible loss in the value of your investments? Listening to late- night television, you might think the only option is to trade high-risk foreign currency options and futures. Bui there's a much easier, safer, and more conservative alternative — purchas- ing stocks and bonds denominated in foreign currencies. Here's an example: At the beginning of 2000, WHVP began pur- chasing short- and medium-duration bonds denominated in euros for its clients. If you bought $10,000 of euro-denominated bonds at this time, your $10,000 would have purchased € 10,000 of AAA-rated bonds, paying 5.25% interest annually. Five years later, these bonds, including interest, would be worth € 12,625 — again of 26.25%. However, in the meantime, the euro soared against the U.S. dollar, giving your overall return 4a big boost. If you cashed out of your bond investment on Jan. 1, 2005 and converted the proceeds back to dollars, you would have received $17,100, less fees and commissions. As a result of currency gains, your total five-year return nearly tripled, from 26.25% to 71.0%. * Gains (not including profit from currency fluctuation): +26.25% * Gains (including profit from currency fluctuation): +71.0% Of course, the euro could have just as easily gone down against the dollar. But in an uncer- tain economic environment, it makes sense to diversify your currency holdings internationally. And bonds denominated in foreign currencies are one of the easiest and safest ways to do so. 3. Protection from Professional Liability and Other Claims No doubt you've heard the story — sad but regrettably true — about the burglar who injured himself breaking into a home, then sued the homeowner for his injuries! Or the woman who sued a supermarket for negligence after tripping over her own child in the aisle. Not to mention countless other examples of the flood of frivo- lous lawsuits that plague the U.S. legal system. pa Do You Trust the U.S. Legal System? | Cost of lawsuits to U.S, economy: $250 billion per year ® Cost of lawsuits to U.S. economy since 1970: $3 trillion 1m Annual fees to trial lawyers from lawsuits: $40 billion Percentage of U.S. physicians who have been sued: 58% 1 Contributions by trial lawyers to federal election campaigns since 1990: $500 million Source: http:/iwww.triallawyersine.com to commit many times this amount. And. even then, you may find that your account manager changes every year or two as he or she is promoted within the bank. How can you find a Swiss private banker who only manages 50-100 accounts and thus has the time to provide the level of personal service I just described? Who still accepts minimum investments as low as. US$500,000? And because he is an owner- partner ina successful portfolio manage- ment business, anticipates remaining at the firm until retirement? Look no further than Weber Hartmann Vrijhof & Partners Ltd. Nearly 20 years ago, I first dealt with Hans Weber during his career with a major Swiss private bank. And eight years ago, I met Robert Vrijhof, a founding partner of WHVP. As independent portfolio managers, the ‘owner-partners of WHVP preserve the tradition of Swiss private banking by main- taining a relatively low number of cli relationships. This makes it possible for them to deliver truly personalized service. ‘Throughout the years, [ have found these individuals to possess that rare combina- tion of intelligence, good communication skills and most importantly, integrity. offshore? If'so, you should consider WHVP. Private Bank or Independent Portfolio Manager? If you have the equivalent of USS500,000 ‘of more to invest, you qualify for the serv- ices of a professional portfolio manager. Perhaps you've ben ucts trading for your own account and are sat with the results. If that's the case, there's no reason to use a portfolio manager. But if you don't have the temperament to manage your own portfolio, or lack the time or experience to do 0, you should consider professional portfolio management.‘Why might you wish to use an offshore portfolio manager, and not one in your ‘own country? For the same reasons that ‘you might want to invest outside your ‘own country described in this report. Traditionally offshore portfolio manage- ment was the province of “private bankers” working at a few dozen banks in Switzerland. Indeed, the Swiss banking tradition is more than 400 years old, But private banking is a growth business — there are more wealthy individuals than ‘ever before in history — and today, ‘almost every major bank in the world has ‘a “private banking” department. “Think of your private banker as a “finan- Gal physician.” Whatever financial condi- tions the markets throw at your porifolio, a trained private banker is well equipped to treat them. After completing university studies in business, finance or a related subject, a private banker typically begins on-the-job training with an apprenticeship with a major commercial bank. He will gain valuable experience in portfolio manage- ment theory, foreign exchange, risk man- agement and the art of dealing with ‘wealthy clients, Private bankers traditionally provide individualized services to their clients. ‘The relationship may even extend to such personal touches as picking you up at the airport when you come to “visit your money,’ sending Christmas and birthday gifts, etc. Unfortunately, the rapid growth of private banking and the shortage of trained private bankers make such per- sonal touches rare except for the very ‘wealthiest private banking clients. However, it's still possible to get the per- sonal touch of a highly-trained Swiss pri- vate banker, even if you have as little as US$500,000 to invest. How? Simply by using a Swiss independent asset manager like WHVP. As a WHVP client: + You will receive more personalized service. A private banker working for cone of the larger Swiss private banks The fact is, more than 80% of the world's iawyers practice in the U.S. According to attorney Robert J. Mintz, U.S. lawyers fle over 50,000 lawsuits each week. And each year, lawsuits cost the U.S. economy more than $250 billion. Many Americans rely on domestic laws and instruments to protect their wealth from frivo- lous lawsuits. However, there are considerable variations between states, and some states pro- ‘vide little or no protection. In contrast, asset protection laws in countries such as Switzerland or Liechtenstein are usually enforced without local variations. The bottom line: When some- one who wants to sue you discovers that your assets are offshore, they will usually pursue an easier target. 4, Enhanced Privacy Protection Your wealth, spending habits and almost every other detail of your financial life is under scrutiny in the U.S. Hundreds of web sites advertise their services in “tracking assets” and offer their services in locating real estate, vehicles, even the balances of bank and securities accounts. [ Information Available from U.S. Online Data Brokers ® Location and balance of bank accounts and securities accounts 1m Location and value of real estate = Corporation officers and directors Residential addresses i Telephone numbers (Including unlisted numbers) Telephone records (numbers dialed from a particular phone) ‘Source: http://www.usuncovercomFraudulent access is common, as proven by the epidemic of identity theft in the U.S.: * Estimated identity theft victims (2006): 84 million * Total estimated losses from identity theft fraud (2006): US$49.3 billion * Average loss per case of identity theft fraud (2006) US$5,720 * Average cost to clear identity theft fraud (2006): US$535, (Source: http://www.privacyrights.org) However, these services only are effective at tracking assets domestically. The U.S. is one of the few nations where it’s legal for banks and other financial services to disclose information about your accounts without your permission and without probable cause of any wrongdoing. Many disclosures that would be illegal in other countries are commonplace in the U.S. As a result, the army of information brokers which advertise their ability to uncover assets will not be able to pry information out of an offshore bank, particularly in countries such as Switzerland or Liechtenstein that have strict bank secrecy laws. 5. A Hidden Risk of NOT Investing Offshore The attacks of September 11, 2001 demon- strated the vulnerability of the U.S. financial infrastructure. U.S. securities markets were closed for a total of four days after the attack. During this time, investors with only U.S. bank or brokerage accounts could not trade securi- ties. But investors with foreign accounts could trade foreign securities on foreign exchanges. A future attack on the financial infrastructure in the U.S. or another major country could potentially lead to a longer suspension of trading. There are historical precedents: in 1914, U.S. securities markets were shut down for four months. ss may be expected to manage as many as 1,000 client relationships. In contrast, none of the independent asset managers at WHVP has more than 100 clients, * You will have direct access to the individuals who own and. the company. This isn't possible if a large bank with branches in many countries manages your portfolia, + You will have continuity. There is considerable personnel tumover in the portfolio management departments of most private banks, This means that you may never get to really know the person managing your wealth. In con- trast, the principals of WHIP plan to stay in their positions until retirement, since they own the business. Senior Partners René Schatt and Robert Veijiiof in the WHVP lobby + You will have a bank account in your managed by _ WHVP. We have no authority to with- draw money from the account; only to make investments. Since WHVP has full access to the bank's in-house trad- ing system, the trades we place enjoy the same execution speed as trades placed by the bank. * You will work closely with WHVP to build a portfolio that suits your needs, Except for the largest portfolios — approximately USS5 million and higher — portfolio managers at major Swiss banks must generally follow the advice of an “investment committee.” ‘These “model portfolios” may not betailored to your unique requirements. In contrast, WHVP analyzes your individual needs to build a portfolio based on factors such as age, health, temperament, investment experience and personal preferences. And we can regularly adjust your portfolio as circumstances change. portfolio managers have 15 or more years of private banking experience, With extensive certifications from. Swiss banking authorities. + You will be sent a quarterly state- ment, induding performance Coe anak be held or mailed elsewhere. addtion WHVD conteceyouat leat ‘twice each year to determine if your circumstances have changed and if YoU are satisfied with the performance of your portfolio, A few of the financial publications read daily by WHVP’s portfolio managers How muuch doe he sere oe Surprisingly, are no| ie ert Indeed, you may. save money. ‘That's because WHVP, unlike some private bankers, are under no pressure to generate commission income for the bank, Investor losses during U.S. trading ‘suspension, September 11-14, 2001 . ‘9/10/01 09/17/01 __% Loss. NYSE 518,820.70 -7.1% S&P 500 1,092.54 1,086.77 -4.996 Nasdaq 1,695.38 157955 6.8% Source: http://finance.yahoo.com The prudent strategy is to maintain a “nest egg outside your country of residence in an offshore asset haven that is politically neutral, such as Switzerland or Liechtenstein, and thus a less likely target for terrorist attacks. Switzerland: The World’s Best Financial Haven Switzerland is the world’s quintessential off- shore haven. A staggering one-third of the world's private wealth resides in Swiss banks! What's Switzerland's secret? There are several factors: Switzerland's long history as a financial haven; the professionalism and integrity of its banks; its strict policy of neutrality and non- intervention; and the legendary Swiss bank secrecy laws. Map of Switzerland tamame SWITZERLAND ® History. Switzerland is the world’s oldest financial haven. Banks were established in Swiss territory in the 16th century and Swiss 8banks were some of the primary financiers of ‘the industrial revolution. In 1815, Switzerland's unique status as a banking haven was acknow!- edged by international treaty. Over the centuries, Swiss banking clients have included many of the world’s wealthiest individuals, including virtually all of Europe's royal families. These relationships have tran- scended politics and religion. Indeed, the Catholic King Louis XVI of France was reputed to have maintained accounts in Protestant Geneva in the 18th century, a time of bitter rivalry between Catholics and Protestants. 1 Professionalism and integrity. The long history of Swiss banking has given rise to a class of professional bankers, who, upon completion of university studies, undergo train- ing in foreign exchange, portfolio management, securities trading and many other disciplines. At the same time, bankers are given increasing responsibilities with only those demonstrating aptitude and unquestionable integrity being permitted to deal with private clients and their assets. The result of this rigorous process is the creation of the world's most knowledgeable and capable financial professionals. Trading room at a Swiss bank 1 Neutrality and non-intervention. One rea- son why wealthy clients from all over the world trust their assets to Switzerland is because of the nation’s long tradition of political neutrality. Switzerland avoided involvement in both World Meet The WHVP Team Roserr VanHon, PRESIDENT & SENIOR Pantner, Robert's banking career started in 1978 with the Union Bank of Switzerland in the international securities trading department, He later served as manager of foreign equities trading at Credit Suisse and in 1987 was appointed head of the portfolio manage- ment group at the Foreign Commerce Bank. In 1991, Robert co-founded WHYP. He was appointed to The Sovereign Society's Council of Experts in 2001. Robert is a prolific speaker and has appeared at investment seminars world- wide, speaking on Swiss banking, foreign currencies, and global markets. ‘René Scart, DIRECTOR & SENIOR PARTNER. René Schatt started his banking career in 1977 with the Thurgauer el Kantonalbank and in 1984 joined Foreign Commerce Bank where ‘he worked in the securities administra- tion and trading departments. In 1987 he became a “Swiss Certified Banker” and in 1990, he was promoted to vice-president and head of Focobank’s securities trading department. In 1992, he joined the first Korean bank doing. business in Switzerland, KDB Bank (Switzerland) Ltd., as senior vice-presi- dent. He joined WHVP in 1995 and was promoted to Senior Partner in 1999. HANS C. Wenn, Apvrsor, A graduate of the London School of Economics, Hans Weber spent his early career in Zurich, New: York, London and Geneva. For more than 25 years he was president and chief executive officer of Foreign Commerce Bank in Zurich.Asthe principal founder of WHVP, he set in moticn conservative principles and integrity that have governed the company’s ‘operations since its inception in 1991, Now semi-retired, he acts as corporate advisor to WHVP. Juua Fernanpez, ASSISTANT MANAGER. ‘After starting her banking ‘career in 1987 with Coop Bank, Julia joined Bank Vontobel’s private banking department in 1990, where she worked in various positions for the next 10 years. Julia joined ‘WHVP in 2002. ‘Manmina Gicrr, Orrice MANacer. After starting, her banking career in 1996 with Credit Suisse, Martina joined Bank Vontobel, where she worked in the Investment Department for Independent Asset Managers for five years. In 2005, she joined WHVP. Wars. As a result, it emerged with its industrial and financial infrastructure intact. Indeed, Swiss mnilitary forces have not been deployed outside Swiss territorial boundaries since the 19th cen- tury, with the exception of the dispatch of Swiss army units for international peace missions. Switzedand’s political neutrality continues to the present day. For instance, Switzerland has repeatedly rejected membership in the European Union due to concerns that doing so would compromise its neutral status and force it to take sides in international disputes. ™@ Bank secrecy. Switzerland's tradition of bank secrecy dates from 1713, when the canton (state) of Geneva enacted banking regulations that prohibited bankers from divulging any information about their clients’ ‘transactions. Secrecy was important because many bank- ing clients were Protestants fleeing religious persecution in France. The French Catholic kings — some who maintained their own Swiss accounts — sent agents to Switzerland to track down wealthy refugees. Their inquiries at Geneva's private banks were rebutted. ‘Two centuries later, when the Nazis took control of Germany, many Jews opened accounts in Switzerland rather than face confiscation of their assets by Hitler's Gestapo. Hitler sent agents to Switzerland to track down these assets. In response, Switzerland enacted its first bank secrecy law in 1935, The law prohibits banks and other financial services companies from responding to inquiries about accounts — whether from attorneys, credit rating services or foreign governments. Violators may be punished with fines up to 50,000 Swiss francs or up to six months imprisonment, 10Tranquil scene on Lake Zurich Contrary to popular opinion, secrecy is not absolute. A court can order secrecy lifted if evidence suggests that a criminal offense has occurred under Swiss law. Switzerland will also lift bank secrecy under a specific treaty obliga- tion. However, Switzertand will not lit bank secrecy in the event of an investigation by for- eign tax authorities, unless tax fraud — strictly defined under Swiss law — is demonstrated Liechtenstein: The World’s Most Exclusive Asset Haven Liechtenstein is a tiny enclave of 34,000 people nestled in the European Alps, border- ing Germany, Austria and Switzerland, While Liechtenstein is part of the Swiss Customs Union and uses the Swiss Franc as its local currency, it is independent with its own constitution and has a judicial system wholly separate from Switzerland. The ruling House of Liechtenstein has survived the Habsburgs, Napoleon, Nazi Germany and the Soviet Union to insure itself a place in Europe. Vaduz Castle, Liechtenstein (home of the Liechtenstein Royal Family) ll Meet 3 Clients of WHVP Who are WHVP's clients? Below, you'll meet three typical clients of our firm, all of whom have portfolios managed according to their unique circumstances, The names, locations and specific investment mixes have been changed to protect client confidentiality. ‘Client #1: The Monroes. Mr. William Monroe, 62 years old, lives with his wife in Willamette, Illinois. The owner of a suc- cessful sporting goods manufacturer, Mr, Monroe became a client five years ago after he heard one of WHVP's principals speak tan investment seminar in Europe. ‘The Monroes have two grown children, so. their primary concern is retirement plan- ning, Their net worth, excluding their home, is about $3 million, $500,000 of which they have invested with WHVP. ‘After taking into account the Monroes’ Unique circumstances, WHVP constructed a portfolio consisting of approximately 509% bonds, 35% stocks and 15% gold and silver bullion. The stocks all are traded on non- US. exchanges and denominated in euros, Swiss franes, Canadian dollars and other cur- encies. The bonds are also non-U.S. issues and denominated in Australian dollars, New Zealand dollars and other currencies. For the five years the Monroes have had their portfolio by WHVP ithas gained an average of about 10% annually. ‘THE MONROE PoRTFOLIO i Bonds: 50% Stocks: 35% Precious metals: 15% Glient #2: Mr. Stanley. 91-year-old Ralph Stanley is one of WHVP’s oldest clients. A native of Ireland, he now lives in Connecticut. A widower, he has four grown. children and numerous grandchildren and sgreat-grandchildren. Mr. Stanley's portfolio is now worth about $1.5 million. Because of Mr Stanley’ age, WHVP has constructed a conservative portfolio con- sisting of 90% bonds and 10% gold and silver. This mix reflects Mr. Stanley's needfor income and wealth preservation, rather than growth. The portfolio is designed to generate an income of about 6% annually, ‘Mr Stanley is also wary of the U.S. legal sys- tem, so WHVP introduced him to estate planners in Liechtenstein, who constructed a fully U.S. tax-compliant Liechtenstein estate planning structure. Mr. Stanley can rest assured that his loved ones will receive their inheritance with a minimum of red tape, and without the time-consuming and public spectacle of the U.S. probate system. ‘THE STANLEY PoRTFOLIO @ Bonds: 90% Precious metals: 10% Client #3: Dr. Jerome Douglas. A 46-year- ‘old surgeon practicing in La Jolla, California, Dr. Dougias is concemed about malpractice lawsuits. While he has never been sued, many of his colleagues have been. After consultation with legal advisors, Dr. Douglas divided the $1 million he invested last year with WHVP into two parts: $500,000 into Eiiienast oud mining stocks. Dr. Doughas is bullish on gold due to his strongly held belief that the U.S. dollar is headed for a long-term decline. Due to the strong performance of gold since the porttolio was established, it has gained nearly 20% annually. ‘Tus DOUGLAS PorTROLIO | @ Gold and silver bullion; 50% Gold stocks: 50% After enacting the world's oldest asset protec- tion law in 1926, Liechtenstein prospered. The law authorizes several low-tax legal entities that provide some of the strictest statutory asset protection and privacy protection in the world. With minor amendments, the law remains in effect today. And its popularity among tens of thousands of the world’s wealthiest families has helped propel Liechtenstein to top tier among the world’s most exclusive asset havens. In particular, Liechtenstein is known for its estate planning expertise. WHVP works closely with several Liechtenstein trust companies, and is pleased to provide an introduction for its clients. Other WHVP Services Through extensive experience dealing with U.S. and international clients, WHVP has developed expertise in their particular needs. ft Individual Retirement Accounts Many investors have the bulk of their personal assets tied up in real estate, their business or other non-iquid assets. In contrast, their retirement accounts may provide a good funding source for the kind of conservative and internationally oriented portfolio management in which WHVP specializes. WHVP can help you internationalize your IRA portfolio by placing your retirement assets with a solid private bank and then providing individualized money management. WHVP works closely with a carefully selected IRA administrator and trustee to insure full compliance with relevant U.S. laws and regulations. As with clients who work with us directly, clients who entrust IRA monies to WHVP have their ‘own bank account in the name of their IRA. There is no pooling of client assets and WHVP only has the authority to conduct trades in the account, not to withdraw money from it. It is also possible for WHVP to manage two portfolios for a single client: a personal portfolio 12and an IRA portfolio. in this situation, we have the ability to apply a “tax optimization” strategy that minimizes the tax burden for the personal portfolio by locking up most of the gains in the IRA, where they are legally tax deferred. lf Asset Protected Strategic Portfolio Switzerland and neighboring Liechtenstein have some of the world’s strongest asset protection laws. While in the U.S,, asset pro- tection is often provided through a trust, in Switzerland and Liechtenstein, life insurance and annuities enjoy virtually bulletproof asset protection. And, through our Swiss Strategic Portfolio, you can combine the rock-solid asset protection of a Liechtenstein insurance Frequently-Asked Questio: Q. What is the minimum investment fora managed account with WHVP? A. WHVP accepts accounts as small as approxi- ‘mately US$500,000, although our average account is approximately USSI million Q. How do I know my money is safe in a Swiss or Liechtenstein bank? A. Switzerland has a banking tradition dating back ‘more than 400 years —longer than any other coun: try: Swiss federal aw and regulations issued by the Swiss Bankers’ Association strictly regulate the conduct of banks to insure the safety of your assets. Swiss banks must also adhere to some of the ‘world’s strictest capital standards, ‘The Liechtenstein, banking tradition isn't as ong, but banks there are just as strictly regulated as banks in Switzerland, Finally, in the unlikely event that a bank in Switzerland or Liechtenstein is forced into bankruptcy, the securities traded in your account by WHVP would not be subject to creditor claims = they would be returned to you fre of any obliga~ tion or deduction. 13 policy with WHVP's conservative yet profitable portfolio management. Moreover, because the Strategic Portfolio is structured as a tax-advantaged variable annuity, you won't pay any taxes on the profits until you begin drawing income from the annuity. 1 Liechtenstein “Convenient Account” As an exclusive service to members of The Sovereign Society, an organization that offers its members proven legal strategies to protect and enhance wealth and privacy, WHVP offers assistance setting up accounts with one of Liechtenstein's premier private banks. This service is available only to Sovereign Society members http://www. sovereignsociety.com). WHVPS Certificate of Membership in the Swiss Association of Asset Managers Q.Are independent portfolio managers such as, WHVP subject to the same laws and regulations as Swiss banks? A.WHVP is not a bank ands not subject to Swiss banking laws. However, we are strictly regulated under Swiss law and are also members of the Swiss Association of Asset Managers, and subject to their regulations,Q.What are your fees? A. We charge an annual 19 fee for our services, with 1/4% debited quarterly from your account balance. We do not impose a performance fee. Clients are also responsible for paying all bank fees, including commissions on trades we conduct on their behalf, Q. What happens if I change my mind about doing business with WHVP? How fast can I get my money back? A. IF youre not satisfied with our service forany rea son, simply notify us in writing that you wish to revoke our portfolio management mandate. If you \wish to retrieve your funds, once the positions are liq- uuidated, the bank can wire the proceeds anywhere in the world within a matter of hours. We will no longer be authorized to execute trades in your account nor permitted to access any information about it Q.Since the investments you recommend are outside the US. dollar, will the value of my port- folio fall ifthe dollar rises? A.Xes, this is possible. However, our philosophy i to stick with quality securities even ifthe value of a client’s domestic currency (eg, the US. dollar) is rising, We seek to avoid losses in this situation through currency hedging, Bridge over the River Limmat, flowing through Zurich Q.Do you purchase US-listed shares for your clients? A. Generally, we do not. Most of our clients are secking diversification outside the US. market and outside the USS, dollar, so purchasing U.S. shares would defeat that purpose. In addition, they generally already have a domestic stockbroker to target US. markets. Moreover, itis much less expensive to wre WHVP Senior Partner Robert Vrijhof executes a trade purchase USS. shares through a domestic stockbro- ker than a Swiss bank. Q. What do you look for before choosing a ‘security in which to invest? A. In the case of stocks, we look at the company, the industry in which it competes, along with its prospects for continued growth in both the company and the industry. Where appropriate, we also assess the countries in which the company is incorporated ‘or does business for political risk, economic stability, currency strength and other factors. We also look for an attractive price so that we don't pay too much, For bonds, we make a similar assessment, but with a sggeater emphasis on the prospects fora rising or falling currency and rising or falling interest rates. Q. What if I want to male the investment decisions for my own account? A. Ifyou have the time, expertise and energy to manage your own portfolio, we encourage you to do so, However, we find that for most clients, being freed of the responsibility for managing their investments, is awelcome relief, Occasionally, clients will ask us to create two accounts; one to be managed by the client and one to be managed by WHVP. Normally, we are happy to accommodate this request, Q. How many positions will you hold in my portfolio? Do you change positions frequently? vIn the average portfolio we will hold 15-20 positions, sometimes a few more depending on the requirements of the client. We tend to buy and hold positions unless the circumstances of the market (or the client) change. In rare cases, if we feel the markets are simply too risky, we move clients in up to.a 100% cash position. 14Q. You have indicated that you purchase precious metals for your clients’ accounts. Is it possible to open an account without taking positions in gold and silver? A.Yes, this is possible. While we believe that precious metals provide valuable balance to a portfolio, partic- ularly in the current economic environment, we understand they may not be suitable for all dents, especially ifthe client already owns precious metals inother forms. 00 500 a0 x00 1 Price of gold in U.S. dollars, 1971-2006 Q. How can I make certain that my spouse or other beneficiary has access to my account in Switzerland or Liechtenstein if I die or become incapacitated? A. There are several options, including making the beneficiary a co-signer on the account or setting up a legal structure for this purpose. Even if you make no advance preparations, if your beneficiary can provide a legal document demonstrating his or her right to the assets, it will usually be honored Q. Do I need to come to Switzerland in order to ‘open an account with WHVP? ‘A.No, but we recommend that you do so in order to meet us personally so that we can get to know cach other better. When you come to visit us, we will pick you up at the airport, take you to your hotel and introduce you to the bank that we believe is most suitable for your needs. This gives youa real feeling for what we do and how we do it. Most importantly, it gives you the peace of, mind of having personally met with th idu- als who are responsible for managing the wealth you entrust to them. WHVP Senior Partner René Schatt in his office Q. What if I don’t have US$500,000 to invest with you? A. Unfortunately, given the individualized attention we give 10 each clientwe are not able to manage accounts significantly smaller than this amount, although we do make excep' for situations in which the account can be brought up to this level in a reasonable time. For smaller offshore investments, we recommend The Sovereign Society's Offshore Convenient Account program, which WHVP admin (http:/Awww.sovereignsociety.com). Q. How do I know if WHVP's services are appropriate for me? ‘A. Call us and let us discuss your financial situation with you. Asa guideline, though, if you're seeking very aggressive portfolio management, our services probably won't meet your needs, We don't chase Internet stocks, IPOs or other “flavors of the day” that might skyrocket one month, then drop 50% the next. And we don't promise returns of 50% or 100% annually as you might see projected by other financial advisors. We view our primary mandate as wealth preserva- tion and our secondary purpose as growth. To that end, we seek steady, safe returns with minimal drawdowns of investment principal. Like everyone else, we have our biases and opin- ions, based on our long experience in the markets, For instance, we believe that the long-term trend of the US. dollar is down, and we therefore generally position our portfolios outside the U.S. dollar and S. markets. If you agree with this philosophy and have $500,000 or more in liquid assets for which you seek conser- vative management by highly trained Swiss banking professionals, we urge you to contact WHVP.FOR MORE INFORMATION, CONTACT: ores sc UR GS Oma ACR Ne riitcaneeecr rt) CH-8050 Zurich Siarentl Somer verre CoO UE TEE Pet 7) Fax: +41-44-315-77-78 (from U.S., 011-41-44-315-77-78) E-mail: info@whvp.ch Toman neater