1741 Equity Systematic US Fund May 2014 Global equity Investment strategy The 1741 Equity Systematic US Fund is a long-only, US equity Fund that follows a quantitative investment approach. According to the most prevalent financial theory – efficient market hypothesis and modern portfolio theory – the US equity market is correctly priced. In other words, no investor should be able to consistently outperform the benchmark. However, a plethora of academic research suggests there are a variety of market anomalies – and it is these that the 1741 Equity Systematic US Fund seeks to exploit. In order to achieve its objective, the Fund focuses its investment on the most attractive stocks in each sector within the MSCI USA investment universe. The attractiveness of a stock is assessed using a quantitative evaluation based on value, quality, and alternative momentum criteria. In order to actively manage relative risk, the Fund strives to invest sector-neutral versus its benchmark. Absolute risk is reduced by weighting securities according to their level of risk. 1 Performance (in USD) 110 105 100 95 11/13 12/13 01/14 02/14 03/14 1741 Equity Systematic US Fund 04/14 05/14 1 2011 n.a. n.a. n.a. 2012 n.a. n.a. n.a. 1 Risk-/return overview (in USD) 2013 3.4% 2.6% 0.8% YTD 3.5% 4.6% -1.1% 1741 Fund Management AG Kirchstrasse 79 | 9490 Vaduz | Liechtenstein Telefon +423 237 46 66 | Fax +423 237 46 69 [email protected] | 1741fm.com Portfolio characteristics Fund Return Return Return p.a. Return YTD Return in May 2014 Risk Volatility Beta Tracking error Information ratio 22816246 / LI0228162462 Bloomberg ticker SESYSUS LE Type of fund UCITS Domicile Liechtenstein Investment manager 1741 Asset Management Ltd. Management company 1741 Fund Management Ltd. Fund currency USD Inception 29.11.2013, NAV (100) Current fund size 13 (USD, m) Minimum initial 1 unit subscription amount Liquidity daily Managementfee 0.75% p.a. Performance fee of 20% 2 excess return 3 Current net asset value 107.02 MSCI USA Net Total Return Return data (in USD) Fund Benchmark Value added Fund facts Valor / ISIN Benchmark 7.0% n.a. 3.5% 2.2% 7.4% n.a. 4.6% 2.3% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Fund Benchmark Value P/Earnings Dividend yield P/Book value P/Cash earnings Quality Return on equity Growth Earnings growth 14.6 2.0% 2.2 11.0 18.6 2.0% 2.7 11.9 15.8% 14.6% 3.6% 6.2% Strategy exposure - May 2014 Top 5 positions US sector exposure 5.8% 5.0% 4.7% 4.6% 79.8% Johnson & Johnson ArcherDanielsMidland Tyson Foods Inc Partnerre LTD Other 18.6% IT Financials Health Care Consumer Discretionary Other 40.3% 15.9% 12.2% 13.0% 1 Risk and return data is calculated net of fees. Risk figures are calculated only where data for a time period of at least 2 years is available. Past performance provides no guarantee for future returns. 2 The performance fee is calculated based on the difference between the percentage change in the net asset value per share (before performance fee accrual) and the percentage change of the MSCI US Net Total Return Index (NDDUUS), relative high water mark 3 Swinging-single-pricing is applied Important legal disclaimer: To the extent that this document is issued by 1741 Fund Management Ltd. (the “Management Company”) a UCITS Management Company under the laws of Liechtenstein, and supervised by the Financial Market Authority of Liechtenstein. The 1741 Funds – 1741 Equity Systematic US Fund is an open ended umbrella UCITS Fund (“the Fund”) under the Liechtenstein UCITS law and is available only in jurisdictions where the Fund and one or more of its sub-funds are registered for distribution or in jurisdictions which do not prohibit the distribution of such documents. Information contained herein is for information purposes only and is intended only for the person or entity to which it is addressed. Any unauthorized use of this information by any person or entity is prohibited. The distribution of this document may be further restricted by law. Accordingly, this document may not be used in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. This document is not intended to constitute neither a recommendation nor an offer to conclude any legal transaction. In particular, it does not constitute an offer or solicitation with regard to the subscription of any sub-fund of the Fund nor does it constitute an offer or solicitation in any jurisdiction, including those in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such a solicitation or offer. Past performance is not indicative of future returns. The value of investments and income from them can fluctuate and are not guaranteed. Investors may not get the money back they invest. Investors are recommended to consult their investment advisor prior to reaching any investment decisions. The information contained in this document may be changed any time and without prior notice. The Fund is only available for subscriptions by non-US citizens who are not residents of the United States. The Fund is not offered for sale or sold in the United States, its territories or possessions. The Fund is not registered for public distribution in all jurisdictions. Subscriptions in the Fund are valid only if made on the basis of the current prospectus, the most recent financial reports and the key investor information documents. With regard to the distribution of the Fund in Switzerland the Management Company has appointed 1741 Asset Management Ltd, Bahnhofstrasse 8, CH-9001 St. Gallen, as Representative and Notenstein Private Bank Ltd, Bohl 17, CH-9004 St. Gallen, as Paying Agent from where the articles of incorporation, the prospectus, the annual and semi-annual reports and the key investor information documents may be obtained free of charge. Although the information in this document is believed to be materially correct, no representation or warranty is given as to the accuracy of any of the information provided. Certain information included in this document is based on information obtained from sources we consider to be reliable. However, no liability is assumed for the completeness, correctness or accuracy of the sources and data retrieved therefrom. However, any projections or analysis described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The Management Company and 1741 Asset Management Ltd., their directors, officers and employees do not accept any liability whatsoever for any loss or damage arising from any use of this document or the use of information contained in this document.