Georgian Income Growth Portfolio

Objective:

Our goal is to maximize total return for long-term investors, consisting of yield income and capital appreciation.

Rationale:

At the foundation of all investments is the expectation of cash returns to the investor. Equities with growing dividends have significantly outperformed the broader equity indices over the long-term. A well positioned portfolio of income equities, with an emphasis on operating free cash flows will also:

♦  Aid in protecting capital in downward or volatile markets;
♦  Be able to provide regular income;
♦  Do so in a tax-efficient manner.

Strategy:

We will invest in companies with sustainable and growing free cash flows and cash distributions to shareholders, to maximize total returns, with below-market risk, over the long-term. The investment processes are based upon the following disciplines:

♦  Qualitative and quantitative screens;
♦  Fundamental due diligence;
♦   Valuation;
♦  Portfolio risk management;
♦  Balance sheet strength;
♦  Leading competitive position;
♦  Proven management stability.

We believe that the combination of patience and compound total returns
will produce significant wealth.