Swiss Analytics Due Diligence Service Presentation

8/3/2019 Swiss Analytics Due Diligence Service Presentation

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Counterparty Risk

Audit Review

Key People

Legal

Signature Rights

Regulatory Risk

Fraud

DisasterRecovery

BackgroundInvestigation

Strategy Drift

Leverage

Compliance

RedemptionRisks

Hidden Fees Valuations

Liquidity

Risk Management

Operational Risk

Conflicts of Interest

Fund Structure

Sw issAnalytics Services and P roducts Overview


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DoDiligence by

Sw issAnalytics Vision

SwissAnalytics assists its clients in reaching better investmentdecisions and increases transparency in the investment industry

ReportsDue Diligence conducted by SwissAnalytics

DueDiligence

ToolsDue Diligence conducted by Clients

Consulting &Advisory

Risk Reporting

ForensicOpinions

ExpertServices


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DoDiligence by

IndependentVerifications

QuantitativeAnalysis

Western Europe:25,000

Americas, Asia:30,000

Gold

400 per hour ofwork

~4,000

Legal Docs

Review

3,500Silver

Western Europe:15,000

Americas, Asia:20,000

Operations

Only

Price(all-in, CHF)

LegalDocuments

Review

BackgroundChecks

Onsite Reviewof Operations

InvestmentStrategyReview

Analysis

Reports

Due Diligence Reports Overview


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~ 170 HoursTotal Analyst-Hours

Spent (per Fund)

Extensive preparation drafting dedicated and in-depth lists of questionsinterrogating individuals one-on-one, cross-referencing information

Onsite OperationalDue Diligence

20+ Documents, such as statutory documents, filings, manuals andservice provider agreements

Documents Reviewed

Monte Carlo, Alternative Multi-Factor Regression Analysis, Drawdown

Analysis, Scenario & Shock AnalysisQuantitative Analysis

220+ Risk Factors analyzed and scored

20-30 page elaborate commentary on organizational, operational, legaland strategy risks putting findings into context regarding operations sizeand investment strategy

Overall judgment summarized in conclusion while key issues are flagged

Qualitative Analysis

Gold Due Diligence

Gold Due Diligence


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Extensive preparation drafting dedicated and in-depth lists of questionsinterrogating individuals one-on-one, cross-referencing information

Onsite OperationalDue Diligence

10+ DocumentsDocuments Reviewed


Spent (per Fund)

Available on requestBackground Check

80+ Operational due diligence factors analyzed and scored

10-15 page in-depth operational risk commentary

Overall judgment summarized in conclusion while key issues are flagged


Operational Due Diligence

Operational Due Diligence


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Thorough review of broad set of documents including proprietarydedicated questionnaires sent to investment manager, administrator andcustodian(s)

Independent verifications of wire controls, NAV calculation and assets heldon custody with service providers

Desk Research

Due Diligence

10+ DocumentsDocuments Reviewed


Spent (per Fund)

Monte Carlo, Alternative Multi-Factor Regression Analysis, DrawdownAnalysis, Scenario & Shock Analysis

Quantitative Analysis

120+ Risk Factors analyzed and scored

Key issues are flagged and commented on

Overall judgment as well as assessment of specific topics compared topeers and overall library of silver reports


Silver Due Diligence

Silver Due Diligence (Desk-Research)


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We perform an in-depth review of the legal documents of a fund,writing up a 3-6 page summary. This typically includes the offeringmemorandum and articles of association but can encompass otherdocuments such as the investment management agreement and theservice provider agreements. The goal of such a review is tosummarize the funds economical terms, identify the involvedparties such as investment manager and/or advisor and the variousservice providers, describe the legal structure, and review investorrights and oversight. We also have a close look at fees andexpenses charged to the fund.

We pay close attention to the degree of discretion granted to theinvestment manager. Particularly, the minutiae of the redemptionterms, the definition of the investment mandate and the NAV

calculation process are scrutinized in this regard. An important part ofour analysis is to flag any inconsistencies and highlight unusual termsthat should be taken up with the investment manager. Significantdeviations from industry standards or odd provisions can then betaken up with the investment manager to be altered or mitigatedthrough the drafting of a side letter.

3-6 Pages

Legal Documents Review


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~65 Pages (Gold) with~20 Pages Commentary

~30 Pages (Silver)

Yellow and Red FlagCommentaries of keyweaknesses and problem areas

Peer-Group Analysis (Silver)

Appendix showing documentsanalyzed

30-70 Pages

Due Diligence Reports


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Portfolio-level overview ofmultiple underlying funds' due

diligence profiles

Qualitative and quantitativerisk comparison

Heat maps of qualitative and

quantitative risk scores,allowing quick and easyidentification of weaker fundsand problem areas acrosscategories

Can be used as a portfoliomanagement or marketing tool(FoF)

30-40 Pages

Portfolio Reports


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Periodic updating ofinformation

Monitoring of key issues overtime emphasizing improvementor impairment versus precedingassessment

Tracking of developmentsgraphically and verbally

Quantitative re-assessment

15-20 Pages

Monitoring and Review Reports


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DoDiligence by

DueDiligenceSoftware

Systematic Solution

State-of-the-Art Process

Visualization of Key Risks

DueDiligenceSupport

Due Diligence Tools

Risk Methodology

Scoring Rules

Questionnaires

Assistance and Training

SwissAnalytics provides tools to assist clients conducting their own due diligence:


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Due Diligence Software

Multiple Users

Drag and Drop File Library

Qualitative Information

Quantitative Information

SystematicApproach

State-of-the-ArtProcess

Visualizationof Key Risks

Thorough Process

Risk Frameworks

Scoring Qualitative Risk Factors

Tracking Confidence Level

Aggregating all Information

Comprehensive Reports

Several Types of Reports

Comparing Results on Portfolio Level

D Dili b


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SwissAnalytics AGHaus "zum Elssser"Marktgasse 12CH-8001 Zrich

Switzerland

Phone: +41 44 296 90 60Fax: +41 44 296 90 69Email: [email protected]

Website: www.swissanalytics.com

Contact Details


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Counterparty Risk

Audit Review

Key People

Legal

Signature Rights

Regulatory Risk

Fraud

DisasterRecovery

BackgroundInvestigation

Strategy Drift

Leverage

Compliance

RedemptionRisks

Hidden Fees ValuationsLiquidity

Risk Management

Operational Risk

Conflicts of Interest

Fund Structure

Sw issAnalytics Due Diligence Services

Support in distinguishing opportunities from eventual regrets.

Sw issAnalytics AG

Marktgasse 12CH-8001 Zurich

+41 44 296 90 60www.swissanalytics.com

Swiss Analytics Due Diligence Service Presentation

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Transcript of Swiss Analytics Due Diligence Service Presentation