If gold s main value is in being a real asset, don t more useful real assets offer better protection?

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1 Tcqueville Bullin Reserve real asset. real wnership. KeyFactsandFrequentlyAskedQuestins: Whydesanallcatintnn financialassetsmakesenseatthistime? DuringtheGlbalFinancialCrisis(GFC)f allriskassetsunexpectedlymvedintandeminflictingmassive lssesn diversified prtflis.additinally,theemergencefstructural(systemic)crrelatinsrevealednewrisks and highlighted the value f hlding assets uncrrelated t the financial system. Any investr wh dubts that systemic risks can be reduced thrugh plicies based n price cntrls, higher debts and mney printing shuld diversify int nn financial assets, such as gld, which ffer prtfli diversificatin and purchasing pwer preservatin. WhatisspecialabutGldandwhydesitbelnginaprtfli? Gld bullin has a millennial recrd as a stre f value and remains the mst widely recgnized and universally accepted valuable in the wrld. It is the nly tangible, nn financial asset that is always liquid and practical t wn withutinvlvingthefinancialsystem.thisuniquecmbinatinfliquidityandindependencefrmcurrenciesand financialinstitutinsiswhycentralbanksarundthewrdhldaprtinftheirreservesinphysicalgld.infact, ntnlydestheu.s.hldthelargestgldreserveinthewrld,ithldsitentirelyutsidethefinancialsystem atft. Knx and at West Pint. Such diversificatin makes perfect sense "reserve" is smething ne must rely upn if cnventinalarrangementsfailtperfrm,whichiswhyreservehldingsmustbefullyde crrelatedfrmtherisks inherent in cnventinal arrangements. In the case f investment prtflis, cnventinal arrangements revlve arundfinancialassets,currenciesandfinancialsystem. Withutcashflwrindustrialuse,hwisglduseful? Thefirstrulefriskcallsfrntputtingallfne seggsintnebasket.amngthekeydiversificatin attributesfgldbullinisitsfreedmfrmcunter partyriskandmdelrisk,i.e.independencefrmthediscunted cashflwmdel(dcf),whichunderpinsvaluesfallfinancialassets.cunter partyexpsureisahighlycrrelated riskallfinancialassetsshare everyrecentbankruptcyfamajrfinancialinstitutin Refc,Lehman,MFGlbal has resulted in utright lsses and/r lng term sequestratin f bth depsits and assets held in custdy. Only gvernmentbailutspreventedbradinstitutinalfailuresin2008;cuntingnfuturebailutstprtectprtflis againstcunter partyrisksisimprudent.mdelriskisequallytrublesme withthediscuntratesartificiallylw and unsustainably large public deficits supplementing demand, all financial asset values may prve t be based n incrrect mdel inputs, just like values f subprime mrtgages turned ut t have been mdeled using faulty assumptinstriggeringanear failurefthefinancialsystem,whichwasnlyavertedviawide spreadbailuts. Ifgld smainvalueisinbeingarealasset,dn tmre useful realassetsfferbetterprtectin? Therearemanypracticalreasnsfrwhygldemergedvertimeasthechsentangiblestrefvalue.Gldbullinis prtable, nn reactive, lasting, unifrm and has very high unit value. Cnversely, mst industrial cmmdities degradewithutspecialhandling,havelwunitvalueandareeitheruniquercmeinmultiplegrades.frexample, currentvaluefametrictnfcpperisabut$7,000vs$43,000,000fratnfgld(asf4/11/14).als,cpper displaces2.1xthevlumefgld.similarly,abarrelfilisa42 gallndrumwrthnly$100.landandrealestate areuniqueandneitherliquidnrprtable.cmmditiesandrealestateareusuallywnedviafinancialinstruments and/r with financial leverage, which turns them int financialized real assets and negates many f gld s diversificatinbenefits.diamndsarehighlyvaluableandprtablebutrequirevaluatinexpertiseandarentreadily liquidattransparentglbalprices. Management LLC 41W57 th Street NewYrk,NY

2 Tcqueville Bullin Reserve real asset. real wnership. ManyWesternanalystsdubtgld svalue,whyshuldn ti? ThelateUSSenatrDanielPatrickMynihanfamuslyquipped: Everyneisentitledthiswnpininbutnthis wn facts. In fact, whether ne has dubts abut gld r nt, it has been valuable thrughut human histry and cntinues t enjy full acceptance and ready liquidity at transparent prices acrss the wrld s financial centres, withut exceptin. Gld bullin markets are glbal, deep and liquid, with institutinal trading taking place almst arundtheclckinnewyrk,lndn,zurich,dubai,hngkng,singapreandsydney. IagreethatgldbullinfferssystemicinsurancebuthwdesTBRdifferfrmalternatives? Tcqueville Bullin Reserve ( TBR ) was designed t meet systemic insurance criteria. Unlike ETFs and gld derivatives,tbrprvidesmaximuminsulatinagainstcunterpartyrisk itisthefirstinstitutinal gradevehiclet ffer real wnership f physical gld securely stred in nn financial vaults lcated in clse prximity t the mst liquid glbal bullin markets. The structure cmbines key advantages f mdern financial prducts liquidity, transparency, prfessinal, strng fiduciary cntrls and reprting, with diversificatin benefits f traditinal cmmercial arrangements that invlve tangible gds n reliance n financial institutins r capital marketsandstrngprpertyrights. TBRffersbenefitsntavailableingldderivativesandExchangeTradedPrducts: Gldbullinisheldinfullyinsurednn bankvaultsinsingapre,hngkng,zurichandtheu.s. Investrscantailrgegraphicdiversificatinftheirbullinallcatin; Multiple strage, lgistics and trading relatinships in jurisdictins with strng legal prtectins ensuresafetyandreadyaccesstbullinmarkets; Thereisnleveragerderivatives; Minimalfinancialandcunterpartyrisks; Nreliancenfunctiningcapitalmarketsandintermediaries; NpricedivergencesbetweenTBRinterestsandphysicalgld; Multipleexitstrategies $UScash,bullin,thercurrencies; DiscretinfprivatepartnershipsandfullcmpliancewithallU.S.regulatins. HwisTBRstructured? Investrswninterestsinaprfessinallymanagedprivatevehiclethathldsnlyphysicalgldbullin. TBRusesaCayman Master/Feeder structurewherebyusinvestrsinvestviaadmestic feeder, a DelawareLimitedPartnership,andfreigninvestrsinvestviaanffshre feeder, acaymanentity. All investrs wn pass thrugh ecnmic interests in the Master entity (the Master ), which is a CaymanCrpratin. TBRhldsdirectlegaltitletthegldbullinandeachinvestrwnsprratapass thrughinterest intbr sassets therearencmplicatedrvaguelydefinedcllateralrelatinships. Meridian Fund Services (Cayman), TBRs administratr, perfrms independent valuatin f the assets, establishes and maintains each investr's capital accunt and its Net Asset Value ( NAV ). AdministratrpreparesanddistributesindividualmnthlystatementsthatindicatelatestNAV. WhataretheadvantagesftheTBRstructure? N expsure t financial cunterparties, flexibility, adaptability, strng legal prtectins, prfessinal, rbustinternalandexternalcntrls,highlevelfprivacy,andexpensesharing. Management LLC 41W57 th Street NewYrk,NY

3 Tcqueville Bullin Reserve real asset. real wnership. TBRvalueisntsubjecttNAVpremiumsrdiscuntstunderlyinggldprice. InvestrscanredeemincashrinbullinwithutanyfeestTBR. Investrscancustm tailrglbaldiversificatintreflecttheirneedsandviews. TBRmanagershaveextensiveexperienceinmanaginggldassetsandmitigatingsystemicrisks. Direct subscriptins and redemptins eliminate electrnic custdy (investrs hld physical subscriptindcuments)andremvemultiplelayersfintermediaries. Unlikeadealer,brkerrvendr,TBR smanagerrepresentsinvestrs interests. Institutinal gradefinancialcntrlsandreprting(mnthlystatements,audits,inventrycntrls, regulatrycmpliance,k 1sfrUSinvestrs). Cmpetitive fees, institutinal trading csts, and ecnmies f scale thrugh sharing f the administratin,accunting,cmplianceandstrageexpenses. Whatarethebenefitsfactive,prfessinal? Wrldwide liquidity ptins the manager seeks t cntinuusly imprve TBR s liquidity thrugh active,n ginginteractinwithgldmarketparticipants. Experienceandexpertise TBRmanagershaveextensiveexperienceinmanaginggldinvestments andriskgainedverarangefecnmicandmarketcnditins. Persnalservice unlikeetfspnsrs,themanagerisaccessibletinvestrs. On ging regulatry cmpliance failure t cmply with the Freign Assets Tax Cmpliance Act (FATCA) and the expanded Freign Bank Accunt Reprting (FBAR) can lead t heavyfinesandpenalties. HwdIbuy,sellandwnTBR? Investrs transact by submitting subscriptin r redemptin frms directly t TBR and/r TBR s Administratr. TBR ffers daily dealing as fllws: Initial investment requires 5 days ntice. Subsequent investmentsandredemptinsrequire24hurs ntice. Executed subscriptin dcuments serve as evidence f wnership and are held by investrs in physicalfrm. HwdesTBRbuyandsellgld? Gldbullintrades verthecunter wherethepricesarenttransparent,i.e. spt prices,bid/ask spreadsandpremiumscananddvary.themanagerbtainsmultiplequtesinsearchfrthemst cmpetitiveall inprice therearentradingcmmissinschargedbythemanager. Management LLC 41W57 th Street NewYrk,NY

4 Tcqueville Bullin Reserve real asset. real wnership. TBRtransactsglballyatinstitutinal(whlesale)premiums,whichareasmallfractinfthetypical retailmark ups. Whereas institutinal premiums range between 0.05% and 0.4%, depending n the lcatin, retail premiumsfrbarsandcinstypicallyrangebetween2%and5%+,i.e.severalyears wrthftbr feesandexpenses. TBRsurces,mves,stresandsellsgldwithintherecgnizedgldbullindealingcmmunity.This maintainsthechainfcustdyandenhancesliquidity. WhereisthegldheldandhwdIknwitissafe? Insuredstragearrangements: TBRhasarrangementsfrsecureinsuredstrageandtransprtatinwithViaMatInternatinaland Malca Amit, reputable, glbal strage and transprtatin prviders with significant experience in safeguardingvaluablegdsandmembersfthelndnbullinmarketassciatin(lbma). TBR has arranged access t secure strage facilities lcated in Switzerland, Hng Kng, Singapre, andu.s. ThebullinisheldinbailmentbythestrageprvidersandisfullyallcatedtTBR. Full value Insurance cverage against all insurable risks is underwritten by Llyds f Lndn. This insurance is a part f the strage service and TBR hlds bth "Evidence f Insurance" and "Lss PayeeCertificates,"whichentitleTBRtreceiveinsurancepaymentsdirectlyincaseflss. Reprting,auditandinventrycntrls: Strage prviders perfrm daily, weekly and mnthly inventry checks and instantaneusly updatetheirinventrysystemsfranychanges. TBR s independent administratr maintains independent real time access t the strage prviders inventryreprts. The administratr maintains each investr's capital accunt and its Net Asset Value ( NAV ). It preparesanddistributesindividualmnthlystatementsthatindicatelatestnav. Inspectrate Internatinal Limited, an independent glbal prvider f inventry cntrl services, perfrmsyear endandmid yearsurpriseinspectinsandcuntsftbr sbullin. AnnualauditsareperfrmedbyGrantThrntn,nefthemajrinternatinalaccuntingfirms. The manager perfrms n ging mnitring and recnciliatin f the inventry reprts and perfrmsregularn siteduediligencevisitsandinventrycunts. Management LLC 41W57 th Street NewYrk,NY

5 Tcqueville Bullin Reserve real asset. real wnership. Hwdesthemanagergetcmpensated? The manager receives a fee, which depends n the size f investment (please refer t the ffering materials).thefeeiscalculateddailyandispayablemnthly,nthemarketvaluefeachinvestr scapitalaccunts. The manager des nt charge cmmissins fr gld purchases r sales r any ther hidden fees, beynd the fee. 1 WhattherexpensesdesTBRbearandwhispaidfrtheservices? TBR pays fr the trading and perating expenses and fr the services such as secure bullin strage and transprtatin, independent administratin, audit, independent inventry verificatin, legal, etc. These services are prvidedbythefirmsunrelatedttbrrthemanagerandarebilledttbratcst.partfthemanager smandateis tmanageserviceprvidersandseektptimizetbr sexpenses. 1 There is an early redemptin fee, which starts at 3% and declines t zer (1% per quarter) ver three quarters.whatisthepurpsefthisfeeandwhreceivesit? Frequenttradingfphysicalassetsisrelativelyexpensivebecausefthehigherexecutin,handling andtransprtatincsts.theearlyredemptinfeeismeanttdiscurageshrt terminvestrsand tcmpensatetbrandthemanagerfrexcessivetransactincsts. TBR investrs are allcated 67% f all early redemptin fees. The remainder is allcated t the managerascmpensatinfrtheextracstsfhandlingshrt terminvestrs. 1 Ialreadywnphysicalgld.CanIcntributemybullintTBR? The manager has discretin t accept cntributins in gld rather than cash. Bullin cntributins mustbeinacceptablegldunitsandaresubjecttthemanager sabilitytauthenticaterassaythe bullinanddeliveritttbr ssecurefacilities. The extent f the bullin authenticatin prcess wuld depend n the bullin s prvenance, dcumentatinandthechainfcustdysincetheriginalpurchase. Any authenticatin, assaying and transprtatin expenses related t in kind cntributins are the respnsibilityfthecntributinginvestr. CanIredeemmyTBRinterestinphysicalgldratherthancash?Arethereanyfeesfrsuchredemptins? Redemptins can be made in cash r in bullin withut any fees payable t TBR. Redeeming investrs are nly respnsiblefrthedeliverychargesandthird partyexpenses,ifany.frexample,redemptinsinbullinwuldbe madeinmultiplesfthegldunitsheldbytbrandanyremainderincash.ifnepreferssmallerunits,themanager wuldendeavurtexchangetbr sunitsbypayingthedealer spremiumdifferentialbetweenthelargerandsmaller units.suchthird partyexpensewuldbebrnebytheredeeminginvestr. 1 1 See full descriptin in the TBR s ffering dcuments Management LLC 41W57 th Street NewYrk,NY

6 Tcqueville Bullin Reserve real asset. real wnership. Management LLC 41West57 th Street,7 th Flr NewYrk,NY10019 Cntact: SimnA.Mikhailvich Telephne:(212) DISCLAIMERTHEFREQUENTLYASKEDQUESTIONSWEREPREPAREDBYMANAGEMENTLLCANDAREFORINFORMATIONPURPOSESONLY.NEITHERTHEINFORMATION NORANYOPINIONCONTAINEDINTHISPRESENTATIONORANYAPPENDICESCONSTITUTESASOLICITATIONOROFFERBYMANAGEMENTLLCORANYAFFILIATESTOBUYOR SELLANYSECURITIESOROTHERFINANCIALINSTRUMENTSORPROVIDEANYINVESTMENTADVICEORSERVICE.ANOFFERORSOLICITATIONTOBUYORSELLSECURITIESWILLONLY BEMADETOELIGIBLEINVESTORSBYMEANSOFANOFFERINGMEMORANDUMANDRELATEDSUBSCRIPTIONMATERIALS.THEINFORMATIONCONTAINEDHEREINISQUALIFIEDIN ITSENTIRETY;PLEASEREFERTOTHEOFFERINGMATERIALSFORSPECIFICANDCOMPLETETERMSANDCONDITIONS. MANAGEMENTLLCDOESNOTUNDERTAKETOADVISEOFCHANGESINITSOPINIONSORINFORMATIONCONTAINEDINTHISPRESENTATION.ANYDATAINCLUDEDINTHIS PRESENTATION ARE OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE BUT CANNOT BE, AND IS NOT GUARANTEED BY MANAGEMENT LLC. ANY OPINIONS OR PROJECTIONSEXPRESSEDHEREINARETHOSEOFTHEMANAGEMENTLLCANDCANNOTANDSHOULDNOTBERELIEDUPONASREPRESENTATIONSOFFACTORINVESTMENT ADVICE.PASTRETURNSCANNOTBERELIEDUPONASAPREDICTOROFFUTUREPERFORMANCE. NOMATERIALFROMTHISPRESENTATIONMAYBEUSED,REPRODUCEDOROTHERWISEDISSEMINATEDINANYFORMTOANYPERSONORENTITYWITHOUTTHEEXPLICITPRIOR WRITTENCONSENTOFMANAGEMENTLLC. Management LLC 41W57 th Street NewYrk,NY