CONFIDENTIAL
RCW FINANCIALALTERNATIVE INVESTMENTS IN U.S. RARE COINS
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• Steve Contursi has bought and sold over $1 billion in investment grade rare U.S. coins over his 39 year career
• Contursi successfully introduced investors to this alternative asset class over the past 5 years through direct investments into separately managed short-term trading accounts and custom long-term wealth preservation portfolios
• Now he is introducing high net worth investors to the RCW Rare Coin Fund, an exclusive investment experience
• Contursi will purchase and sell a diversified numismatic portfolio of ultra rare U.S. coins based on his connections, proprietary deal flow, purchasing power and value driven investment philosophy
EXCLUSIVE OPPORTUNITY
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• Leading expert in rare U.S. coins
• Owned or participated in the sale of over 70 of the coins listed in the “100 Greatest U.S. Coins” book
• Owned and sold two of the three most expensive coins
• 1794 Flowing Hair Silver Dollar
• 1787 Unique Brasher Doubloon
• RCW has the largest available U.S. rare coin inventory in the world
• American Numismatic Association
• Presidential Award (2006)
• Award for Exemplary Service (2007)
STEVE CONTURSIPRESIDENT OF RCW
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1794 Flowing Hair Silver Dollar
• Considered by experts to be the first U.S. Silver Dollar struck
• Sold May 2010 for a then world record $7.85 million
1787 Unique Brasher Doubloon
• First U.S. Gold Coin Struck
• Sold December 2011 for nearly $7.4 million
The King of Siam Proof Set
• Known as America’s Greatest Proof Set
• Purchased in 2005 for $8.5 million, a record price for a single numismatic item at the time
1907 Ultra High Relief Double Eagle
• Known as America’s Most Beautiful Coin
CONTURSI’S TRACK RECORDSIGNIFICANT COINS HANDLED
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• Estimated $10 billion per year U.S. coin industry
• Estimated 7-10 million serious U.S. coin collectors
• All rare coins are certified by a 3rd party grading service
• Numismatic Guaranty Corporation (NGC)
• Professional Coin Grading Service (PCGS)
• NGC and PCGS provide market transparency
• Graded and authenticated over 58 million coins combined
• Confirm the authenticity of each coin and assign a quality level known as the grade
• Provide a financial guarantee for the accuracy of their service
• Online price lists estimate the average retail price for graded coins
• Public auctions make available sales information going back several decades
MARKET SNAPSHOTTRANSPARENCY
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CAGR 2000 – 2013 Volatility (SD)
S&P 500 4% 20%
PCGS Key Dates & Rarities 6% 9%
KEY PERFORMANCE INDICATORSWEALTH PRESERVATION
• Portfolio returns are a function of risk and volatility• Since 2000 the KD&R rare coin index has outperformed the S&P 500 with
approximately half the volatility
• Truly scarce items with high demand are expected to preserve principal
• Investors with strong holding power typically profit because rare tangible assets with a low, finite supply and very high demand normally appreciate in value
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KEY PERFORMANCE INDICATORSSTRONG AND STABLE MARKET
• Low volatility • Wealthy collectors dominate the rare
coin market and rare coins do not flood the marketplace when they are in strong hands
• The rare coins alternative asset class proved extremely resilient during the credit crisis
• Uncorrelated to traditional assets and the precious metals market • Rare coin values are determined by
numismatic value, quality, scarcity, population, history and demand
• Analogy: the value of a Picasso painting does not vary with the price of paint
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PerformanceOctober 2007 – March 2009
S&P 500 -56%
PCGS Key Dates & Rarities 11%
KEY PERFORMANCE INDICATORSNON-CORRELATED ASSET
• During strong economic times, wealthy collectors purchase trophy coins• In a recession or stagnant growth period, wealthy collectors usually enter the rare
coin market as part of their wealth preservation and diversification strategies• The rare coin market generally posts steady growth during both boom and bust
economic cycles due to a lack of correlation to traditional investments
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S&P Case Shiller
PCGS Key Dates & Rarities
0% 1% 2% 3% 4% 5% 6% 7%
KEY PERFORMANCE INDICATORSALTERNATIVE ASSET CLASS COMPARED TO REAL ESTATE
• The S&P Case Shiller Home Price Index tracks the performance of U.S. real estate• Since 2000, the KD&R index has outperformed the Case Shiller index
Annualized Returns 2000-2013 | Data Source: Yahoo! Finance, PCGS
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• No 1099 Reporting
• Self regulated market
• Subjective value
• Estate tax planning and charitable gifts
• Tax deferment through 1031 exchanges
• When you sell U.S. rare coins you may defer taxes indefinitely via “like-kind” exchanges
• Step-up tax basis upon death
• Your beneficiaries may avoid taxation upon
inheriting U.S. rare coins
• Generational transfer of wealth strategy
• Duty free in and out of the U.S.
• Portable and exempt from FATCA
TAX ADVANTAGES PRIVATELY HELD U.S. RARE COINS
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• Target Capitalization:$10,000,000
• Minimum Purchase: $500,000
• Management Fee: 1.5% annually
• Term: 5 years
• Preferred Return: 5% compounded annually
RCW RARE COIN FUNDPROPOSED TERMS
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• Contursi is a professional trader who purchases great coins at values that allow for strong investment potential
• His opportunity and value driven approach differs from that of other dealers, who are often motivated by their client collectors’ emotional attachment to specific coins
• As a result, he does not get involved in bidding wars that artificially inflate a coin’s purchase price
• RCW purchased a 1907 Ultra High Relief Double Eagle, known as “America’s Most Beautiful Coin,” for over $2.75 million
• This rare coin was previously on the market for over $5 million and it fell through the cracks
• Contursi was able to jump on the opportunity due to his market expertise, connections and purchasing power
• Contursi bought the 1787 Unique Brasher Doubloon at public auction for almost $3 million in 2005
• 6 years later it sold for nearly $7.4 million, demonstrating the subjective value, importance of careful selection and value of correctly timing rare coin transactions
RCW RARE COIN FUNDINVESTMENT PHILOSOPHY & USE OF PROCEEDS EXAMPLES
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• The executive management team will consider reputation, cost effectiveness and investor preference in selecting service providers
• Accounting
• Legal Compliance
• Insurance Policies
• Investor Relations
• IT Infrastructure
• Office Controller
• Offsite High-Tech Vault
• Third-Party Administration
RCW RARE COIN FUNDRISK MANAGEMENT
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• Target IRR: 12.25% annualized
• Liquidation: After 5 years, Contursi will sell the U.S. rare coin portfolio (with 1-year extension to ensure orderly liquidation)
• Liquidation Preference: (1) Investors receive investment capital on a pro-rata basis; (2) Investors receive 100% of profits for annualized performance up to 5%; and (3) Investors receive 50% of remaining profits thereafter.
• Example: After 6 years the portfolio is liquidated for $20 million: (1) Investors receive $10 million; (2) Investors receive next $3.4 million; and (3) Investors receive 50% of remaining $6.6 million.
RCW RARE COIN FUNDEXIT STRATEGY
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• RCW Financial sells U.S. rare coins directly to the client: (1) client retains ownership and title to the coins; (2) client may consign the coins to RCW; and (3) profit split upon sale (70% to client, 30% to RCW)
• In the 5 year history of the Numismatic Trading Account (“NTA”), no coin has ever been sold for a loss in the normal sales cycle
• Average CAGR for current NTAs: 8.72%
• Includes all accounts open > 6 months as of 9/17/14
• 24/7 online account access via customized client dashboard
• Potential buyers of NTA coins
• Dealers, collectors, investors, auctions and international sources
• Exit strategy: take possession, wind-down, liquidate or convert to a long-term wealth preservation portfolio
RCW FINANCIALSEPARATELY MANAGED SHORT-TERM TRADING ACCOUNT
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• The Numismatic Asset Protection Account (“NAPA”) is a diversified portfolio of extremely rare U.S. coins that preserve wealth for many generations
• Privately place historical rarities in an estate and off the market to drive up collector demand
• RCW will ship the portfolio coins to the client, or the client can elect to store them in RCW’s vault
• If a collector is actively searching for a rarity that RCW knows a client owns, RCW will contact the client with an offer and act as a broker
• RCW continues to be a resource in the rare coin market after a client purchases a NAPA and will assist family members who inherit rare coins
• NTA and NAPA are invite-only programs with accounts starting at $100,000
• The “NAPA” name is a nod to Contursi and his wife’s Napa Valley vineyard, Arrow & Branch (found on the reverse of most U.S. coinage is an eagle holding an olive branch and arrows in its talons)
RCW FINANCIALCUSTOM LONG-TERM WEALTH PRESERVATION PORTFOLIO
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Steve Contursi
President
RCW FINANCIALEXECUTIVE TEAM
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Michael Contursi
Executive Vice President
Laurel Kamper
Vice President,
Director of Marketing
Yutaka Blizman
Lead Programmer,
IT Manager
Thomas Neptune
General Counsel
Antonio Governale
Strategic Advisor
http://www.rcwfinancial.com/FinancialTeam
CONTACT
Michael Contursi
(949) 679-1222
http://www.rcw1.com
THANK YOU FOR YOUR TIME
DISCLAIMER: This confidential presentation is provided to business and personal contacts for informational purposes only and should not be considered investment advice or a
recommendation to buy or sell any security. Information contained herein was obtained from sources deemed to be reliable, though RCW does not guarantee the accuracy of any data. RCW makes no
representations as to any legal, tax or financial matters related to this presentation.
COPYRIGHT 2014 RCW FINANCIAL ALL RIGHTS RESERVED
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