Daddy Warbucks

Philanthropic Foundation
Investment Presentation
Group 2
11/08/2015

 Who

we are
Client Profile & IPS
Macroeconomic 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 yearover-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 constraints
DUTIES AND RESPONSIBILITIES
- VPCG
operational decisions
transactional activity
forecasting
Leading at least quarterly updates
-

DUTIES AND RESPONSIBILITIES

- DWPF
provide 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 Horizon
Perpetual

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 Regulatory
The Uniform Management Institutional Funds Act
(UMIFA) apply so 5% spend rate is required
Unique

Circumstances
Daddy Warbucks rules
No leverage
At 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,withthedecisionbyC
hina'sPrimeMinisterLiKeqiang torelaxthecapital
flowregulation,China'scurrentsavingdepositof21trillionUSD
willbeincreasinglyneedtobedeployedovereas,majortothe
USmarkets. We believe this will boast the US capital markets as
well.

Source MorningStar

Source MorningStar

Source MorningStar

Source MorningStar

Source MorningStar

Questions or Concerns