Daddy Warbucks Philanthropic Foundation

Investment PresentationGroup 2

11/08/2015

Who we are Client Profile & IPSMacroeconomic Outlook Portfolio Overview Conclusion

Founded in 2000, Veritas Phoenix Capital Group is fully licensed as a wealth fund manager, specializing in foundations.

Veritas Phoenix Capital Group provides investment management tailored to fit our clients needs through diversification and risk management Clients depend on us to deliver consistent year-

over-year returns, providing annual cash to cover cash outflows and inflation

Client: Daddy Warbucks Philanthropic Foundation

Established in 1960, the foundation is worth $100 Million

Seeks Average Return of 8%Diversification to reduce risk Above average risk tolerance

PURPOSE - Contains clients objectives and constraints- Goal is to maximize performance, while

considering the clients constraintsDUTIES AND RESPONSIBILITIES- VPCGoperational decisions transactional activity forecastingLeading at least quarterly updates

DUTIES AND RESPONSIBILITIES- DWPFprovide all relevant information Immediately communicate of any relevant changes Net Worth Spending Rates and Horizon Gifts Received Legal and Tax changes Significant Financial Statement changes such as

legal exposure

PROCEDURES- Rebalance within 1% of the targeted allocation under the following two situations:- quarterly- If allocation deviates from the target by more than 3%

Risk: Above average risk tolerance due to - perpetual time horizon - expects to continue to receive gifts in the

future

Return- total return strategy employed to meet client

objective. - maintain grants in real dollar terms on a long

term basis- Minimum returns are equal to the spending rate

(5%), expected inflation (2%), and fund expenses (1%), and totals 8%

Time HorizonPerpetual

Liquidity 5% spending rate is 5% of last years assets; prudent maintain it in highly liquid assets

Tax consideration The funds assets will be incorporated in a tax free jurisdiction such as Cayman Islands, and co-issued in Delaware. Therefore taxes is not an issue

Legal and RegulatoryThe Uniform Management Institutional Funds Act (UMIFA) apply so 5% spend rate is required

Unique CircumstancesDaddy Warbucks rulesNo leverageAt least 98% allocation in US investments

Real GDP global growth projection is expected at 3.3% for 2016 and 3.2% for 2017 (Worldbank)

Real GDP growth of Brazil, Russia, India & China (BRIC) is expected to be 5.5% for 2016 and 5.6% for 2017 (Worldbank)

The US GDP is expected to grow 3.1 % in 2016, 2.7% in 2017. and an average annual rate of 2.2% for 2018 and 2019

The US Congressional Budget Office estimates that the federal funds rate which has been near zero since the end of 2008 rises to 2.4 % in the fourth quarter of 2017, before settling at 3.7 % in the second quarter of 2019.

A survey of 13 investment banks by The Wall Street Journal conclued with a projection that the oil price will stay below $60/B for a long time.

The most bearish bank in the survey, Goldman Sachs, believes it is possible for crude to fall as low as $20 a barrel.

Even though the cheap oil price brings more pain for oil producers, it is believed to be a boon for consumers and businesses around the globe.

From the data from World bank, U.S. Confessional Budget Office and economists and analysts from the world biggest investment banks, we expect the world economic will grow at an average rate of 3.25% for the next 2 years. The U.S. Economic will grow at an average rate of 2.67% for the 4 years. Both numbers are slightly higher than the previous year.

We expect the FED will gradually raise the interest rates, and our investment strategy reflects our forecast on the interest rates.

A special note on China. Even though the International Monetary Fund expected Chinas growth will decrease to 6.3% in 2016, and 6.0% in 2017. China recently published a new policy to allow High Net Worth individuals to invest in foreign country. This is considered a partial lift of the capital control of the Chinese Yuan. In the meanwhile, the sudden deflation of the Chinese Yuan on Aug 11, 2015 which was the currency's largest two-day decline in decades, signaled a bearish view of the currency in the future.

AccordingtorecentsearchbyBloomberg,withthedecisionbyChina'sPrimeMinisterLiKeqiang torelaxthecapital flowregulation,China'scurrentsavingdepositof21trillionUSDwillbeincreasinglyneedtobedeployedovereas,majortotheUSmarkets. We believe this will boast the US capital markets as well.

Source MorningStar

Source MorningStar

Source MorningStar

Source MorningStar

Source MorningStar

Questions or Concerns