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Oct 2019
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Dear Hedge Fund Client,

 

  1. Some of our clients still have questions regarding our previous newsletter and we would like to explain them as follows: In the previous newsletter we explained that we opened our offshore Moriah Global Hedge Fund of Fund 7 years ago, via the administrator, International Insurance LTD from Mauritius. From time to time we pointed out to our clients that our offshore Moriah Global Hedge Fund of Fund is performing better that our local South African Hedge Fund of Fund for obvious reasons. In South Africa, there are far more regulations as mentioned previously. We can only invest 30% of the fund in offshore funds and the handful of local registered offshore funds cannot compare to the best offshore funds worldwide, which we have access to through our Moriah Global Hedge Fund of Fund.

 

  1. Because of the excellent growth of our Moriah Hedge Fund of Fund, clients started withdrawing their money from the South African Hedge Fund of Fund to invest in our Moriah Global Hedge Fund of Fund, especially over the past 3 years, to such an extent that our South African Hedge Fund of Fund has decreased in value to less than R50 million, where we will soon get into a situation where we will have to pay the administrator SANNE more than the fees we receive from the clients, which forces us to either close down the South African Hedge Fund of Fund or to change the administrator to International Insurance LTD.

 

  1. Moriah Global's average performance in ZAR over the past 7 years is 14.53% after all fees, because of which investments there have doubled every 5 years. For 2019 from January until the end of August, the Moriah Global Hedge Fund of Fund grew by 26.05% compared to our South African Balanced Fund of Fund which only grew 6.10%! Kanaan Balanced CAR (cumulative average rate of return net of fees) is now 6% compared to Moriah with 14.53%!

 

  1. Why did we not merge our South African Hedge Fund of Fund with our Moriah Global Hedge Fund of Fund 7 years ago? The reason for this is that the minimum investment in Moriah Global was over R200 000 and many of our clients in our South African Hedge Fund of Fund have investments smaller than this. However, we approached the administrator of our Moriah Global Hedge FoF, namely International Insurance LTD and indicated that we would like to transfer approximately R50 million from our South African Hedge FoF to the Moriah Global Hedge FoF and they agreed to then remove the minimum investment amount for the following few months to allow clients with smaller amounts to have the opportunity to invest in Moriah Global Hedge FoF.

 

  1. Clients who do not have a local USD/ZAR account should please send us proof of residence not older than 3 months, as soon as possible so that we can open a ZAR?USD account for them. Any other clients who have voluntary investments less than R200 000, can also use this opportunity to invest amounts less than R200 000 in our Moriah Global Hedge FoF, and should also please forward us the proof of address.

 

Friendly Greetings

 

Andre

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