SMART VALUE FUND

Asset Management Inc.

TWELVE Smart Value Fund 2MEANING

www.tw-am.com

MEANING OF ´TWELVE´

12 – is the most holistic number in occidental cultures.

• Most calendar systems have twelve months in a year.

• The Western zodiac has twelve signs, as does the Chinese

zodiac.

• The Chinese use a 12 years cycle for time-reckoning called

Earthly Branches.

• There are twenty-four hours in a day in all, with twelve hours for a

half a day.

• The number 12 is very important in many religions, mainly

Judaism and Christianity, but some uses are to be found in pagan

times.

TWELVE´s understanding of financial markets and the ability to

seize opportunities represents the meaning of its name.

12 Ancient Greek olmpic gods

12 Apostles of Jesus

12 Knights of King Arthur´s round table

12 Signs of the zodiac

Asset Management Inc.

3OVERVIEW

01 TWELVE TEAM

02 TWELVE STORY

03 TWELVE SYSTEM

04 TWELVE SYSTEM TESTS

05 TWELVE Smart Value Fund

06 TWELVE Contact

This presentation supersedes any presentation or information which may have been previously issued to anyone in relation to TWELVE Smart Value Fund . The contents of

this presentation, including the terms of the fund, are preliminary and subject to change without notice. This is not an offer of interests or a solicitation of an offer to sell

securities or an interest in TWELVE Smart Value Fund . or in any investment vehicle. This presentation is only intended for preliminary information purposes, is for the

addressee only, is the property of TWELVE GmbH (“TWELVE”) in any media, and may not be disclosed to any third party in part or in whole without the written consent of

TWELVE. Neither TWELVE nor the Advisor, nor any of the parties mentioned herein including their subsidiaries, affiliates, shareholders, directors or employees, nor any

persons or professional firms directly or indirectly involved in any aspect of TWELVE Smart Value Fund, guarantee the accuracy or completeness of this presentation;

neither are they making any representation or providing any guarantee whatsoever as to the future economic performance of TWELVE Smart Value Fund. or as to whether

TAM Smart Value Fund. will at any time in the future produce any return or other benefits to any potential participant or investor. Anyone contemplating a participation or

investment in TWELVE Smart Value Fund. or a similar vehicle should refer to the private placement memorandum (which shall supersede and cancel this presentation), and

should understand that participating in TWELVE Smart Value Fund. constitutes a risky investment in an emerging market, and are invited to conduct their own due diligence.

The name of “TWELVE Smart Value Fund” is the property of TWELVE and is subject to change without notice. This document shall be superseded by the PPM when

available.

www.tw-am.com

Updated 21.11.2008

TWELVE Smart Value Fund

Asset Management Inc.

401 TWELVE TEAM

www.tw-am.com

Dietmar Mayrhofer

CPM

Private and Institutional Banking | Team

Leader (Meinl Bank)

Private and Institutional Banking | Team

Leader (Credit Suisse)

Head of Private Banking

(OÖ Landesbank AG)

Equity Trader

(OÖ Landesbank AG)

Supervisory Board

(Kepler KAG)

Certified Portfolio Manager (CPM)

TWELVE Smart Value Fund

Senior Private Banker

Meinl Bank

Senior Private Banker

OÖ Landesbank AG

Equity Trader

OÖ Landesbank AG

Certified Portfolio Manager (CPM)

MBA in Finance | Kepler Universität (A)

Andreas Edtbauer

CPM, MBA

Markus SchullerMag., MBA, MScFE, FRSA

Senior Analyst

Monaco Capital Partners Ltd.

Equity/ Options Trader

VKB Bank

Private Banking | Analyst

OÖ Landesbank AG

Master (Business Admin) at Kepler University (A) &

University of Pittsburgh)

MBA | International University of Monaco

TRIGON OE-Werkstatt

Trader & Market Maker Licenses

MScFE | International University of Monaco

TWELVE is led by an experienced team of investment professionals.

Professional

Academ

ia

Professional

Academ

ia

Professional

Academ

ia

502 TWELVE is different

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TWELVE Smart Value Fund

TWELVE is different.

602 TWELVE is different.

Smart Value Investing

Smart, pragmatic product development

contains the focus on lifting the premium

substance of an asset class and providing

easy to use investment vehicles for our

investors.

The TWELVE System as an example.

www.tw-am.com

Transparency

Our developed strategies are our most

important property.

We claim to provide highest possible

transparency to our investors, enabling

them to closely monitor their investments.

No Black Box Thinking.

Relativity

Permanent search for improvement.

Co-operation with renowned

International University of Monaco.

No dogmatic persistence on strategies or

analysis methods, but ´Best-Of-Breed´

principle.

TWELVE Smart Value Fund

Ethics

TWELVE guarantees a simple and fair fee

structure of its products.

We are aligned to the AIMA code of

conduct and take a leading position in

corporate governance for

hedge funds.

Quality

We expect highest quality from ourselves.

The same from our service partners.

Consequently we only work with top tier

partners.

Reputation Generates Business.

AI & Retail

Structures, transparency and fees

are aligned to serve

institutional & privaten investors

with premium alternative investments.

703 TWELVE System

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TWELVE Smart Value Fund

TWELVE System.

803 TWELVE System

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TWELVE Smart Value Fund

How does Warren

Buffett correlate with the

TWELVE System? “We simply attempt to be fearful when others are greedy

and to be greedy only when others are fearful.”

“Price is what you pay. Value is what you get.”

“The business schools reward difficult

complex behavior more than simple behavior, but

simple behavior is more effective.”

“Wide diversification is only required when

investors do not understand what they are doing.”

Asset Management Inc.

903 TWELVE System

www.tw-am.com

TWELVE Smart Value Fund

The TWELVE System counts on well proven

Buffett principles and adds latest financial

engineering methods to a comprehensive,

semi-automized investment strategy.

The result is an innovation of how to invest

in quality companies worldwide - with

permanent downside protection.

Asset Management Inc.

1003 TWELVE SYSTEM

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TWELVE Smart Value Fund

The TWELVE System synchonizes 4 phases.

Unleveraged

No Short Selling

Automatic De-Investment

< 75 % Equity Quota

< 25 % Derivative Quota

Matlab programmed

Permanent Hedging

Worldwide universe of more than 12.000

listed stocks is screened fully automated

on a daily base. The system is aligned to

filter “operationally healthy“ companies.

Phase I | Fundamental Filter

Allocation of all filtered stocks in

accordance with several cycle theories.

Using industry momentum as additional

portfolio driver.

Phase II |Momentum Allocation

Phase III | Hedges

Equity and currency hedges arrange for

an Alpha bias of the TWELVE System.

Derivative strategies are exclusively

adjusted to hedge the portfolio.

Phase IV|Sentiment Trading

System responds to short term market

movements. Single portfolio positions

have individual volatility ranges. Trailing

stop limits protect portfolio against

excessive market correlation.

SYNC

Automatic

Automatic

AutomaticSemi-

Automatic

Asset Management Inc.

1103 TWELVE SYSTEM

Phase I | Outlined

www.tw-am.com

R&

D

Flex

ibili

ty

TWELVE Smart Value Fund

11 Fundamental Perspectives

2 Market Perspectives

No Analyst Recommendations

Top Database (Reuters & Rimes)

Daily Screening

of 12.000 Companies

No Estimated Numbers

How ´operationally healthy´ is a company?

Asset Management Inc.

1204 TWELVE SYSTEM TESTS

The TWELVE System ran through several acid tests.

2001 – 2003: Backtest

2004 – 2005: Papertest

Sept06 – Dec07: Managed Account Test (MAT)

in parallel to a Papertest

2008 – YTD: Papertest | fund data since September 15th

(Gross Performance)

www.tw-am.com

10,02%

18,90%

35,14%

16,56%

22,96%

19,33%

36,21%

10,11

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

40,00%

2001 2002 2003 2004 2005 2006 2007 2008 (YTD)

Backtest Papertest MAT &

Papertest

Papertest

+SVF

TWELVE Smart Value Fund

Precisely tested

SYSTEM TESTS | Does it work?

Academically audited

Sept.2006

Asset Management Inc.

13

www.tw-am.com

Performance 2008

SVF comparison with

• Dow Jones Industrials (DJI)

• S&P500

• DAX

• Nikkei 225 (N225)

• MSCI World

TWELVE Smart Value Fund04 TWELVE SYSTEM

Data before September 15th,

2008 does not refer to the

TWELVE Smart Value Fund,

but describe the test-

performance of the TWELVE

System (Gross performance).

The test-performance does not

guarantee any future

performance of the TWELVE

Smart Value Fund.

-55,00%

-45,00%

-35,00%

-25,00%

-15,00%

-5,00%

5,00%

15,00%

25,00%

TWELVE % S&P500 % DAX % DJI % MSCI World % N225 %

SVF Start

Asset Management Inc.

1404 TWELVE SYSTEM

www.tw-am.com

TWELVE Smart Value Fund

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-2,7

5%

-2,5

0%

-2,2

5%

-2,0

0%

-1,7

5%

-1,5

0%

-1,2

5%

-1,0

0%

-0,7

5%

-0,5

0%

-0,2

5%

0,0

0%

0,2

5%

0,5

0%

0,7

5%

1,0

0%

1,2

5%

1,5

0%

1,7

5%

2,0

0%

2,2

5%

2,5

0%

2,7

5%

3,0

0%

und g

röß

er

Distribution Daily Returns 2008 YTD

Häufigkeit

Performance Statistics 2008

Low Volatility

No ´Fat Tails´

Ideal Normal Distribution

TOP 5 Performer (current)

No Company %

1 Myriad Genetics +28,71

2 Telecom Argentina + 21,05

3 Cal-Maine +11,39

4 Ansys +10,63

5 Embotelladora And +4,15

TOP 5 Holdings (current)

No Company

1 Telecom Argentina SA

2 Partner Communications

3 WMS Industries

4 Quidel Corp

5 Corning Inc

TOP 5 Industries (current)

No Industry %

1Comunications

Equipment29,12

2Healthcare/

Pharma14,58

3 Chemicals 14,43

4 Construction 11,55

5 Media 7,98

TOP Countries (current)

No Currency %

1 USA 58,54

2 Argentina 10,22

3 Hong Kong 7,89

4 Israel 6,11

5 Chile 4,13

SV

F Statistik

Calculations of the TWELVE GmbH per 09.11.2008

Asset Management Inc.

www.tw-am.com

HEDGING LOGIC

TWELVE Smart Value Fund04 TWELVE SYSTEM 15

Functionality of the TWELVE System – Hedging Mechanism (Phase III & IV).

An idealized description.

Slightly

Correcting

Equity Markets

Eroding

Equity Markets

Strongly

correcting

Equity Markets

System Bias

NET LONG

System Bias

NEUTRAL

System Bias

NET SHORT

System Response

SLIGHTLY ABSORBING

MARKET LOSS

System Response

NEUTRALIZING

MARKET LOSS

System Response

OVERCOMPENSATING

MARKET LOSS

Portfolio stocks use their individualized

volatility ranges and lose +/- market

Hedges slightly absord equity losses.

Portfolio stocks start to hit stop-loss limits.

Allocation ratio Equities-Derivatives change

to the benefit of the hedging mechanism.

Many portfolio stocks are stopped out.

Hedges stronger than equity losses =

portfolio gains.

Asset Management Inc.

www.tw-am.com

HOW GOOD IS ´HEALTHY´?

Analysis of the current earnings season (Q3/2008),

TWELVE Smart Value Fund04 TWELVE SYSTEM 16

Phase I of the TWELVE Systemonly marks 17 companies as„High Quality“ (out of 12.000)Since early September only 1company was newly filtered.

Empirically, the total numberpends between 20 and 40companies. How did the 17management teams master themacro-economic difficulties inQ3/2008? :

TWELVE Stocks No. in %

Filtered 17 -

Q3 Numbers published 13 -

Revenue increased 11 85%

Net Income increased 12 92%

Outlook confirmed 9 69%

Related News Articles

Mission accomplished.

Even in Q3/2008 the Phase I filteredcompanies delivered outstandingoperational results.

1705 TWELVE SVF

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TWELVE Smart Value Fund

TWELVE Smart Value Fund.

Asset Management Inc.

1405 TWELVE Smart Value Fund

www.tw-am.com

TWELVE Smart Value Fund Specifications

Fund Currency EUR

Fund Domicile/ Structure Germany / UCITS III

Fund Category Absolute Return Fund

Fund Strategy Long/Short Global Equity

Minimum Investment No

NAV (Net Asset Value) Daily

Subscription | Redemption Daily

Redemption Fee No

Lock Up No

Initial Fee Max. 5%

Management Fee 2 %

Performance Hurdle Rate 10 %

TWELVE Smart Value Fund Specifications

Performance Fee Cap High Water Mark

Performance Fee 20 %

TAM Commitment 1 % of final closing

Fund Target Groups European HNWI, InstitutionalInvestors, Family Offices , Endowments

Fund Profits Retained

Fund Taxation (AUT) White Fund (since Nov 7th)

Fund ReportingTAM Smart Value Fund informsinvestors via weekly updates andmonthly reports.

Fund Broker & Custodian Hauck & Aufhäuser

Fund Administrator Universal Investment

Fund Auditor KPMG

ISIN | WKN DE000A0Q5R19 | A0Q5R1

Asset Management Inc.

1905 TWELVE SVF

www.tw-am.com

TWELVE Smart Value Fund

Your advantages as investor

Hedge Fund Strategy Mutual Fund Structure

Long/Short Equity

Strategy

No Short Selling &

No Leverage

Systemic Autopilot

(TWELVE System)

Permanent Asset-

Manager controlled

Warren Buffett

Equity Approach

Smart Hedging

Mechanisms

Retail Investor

Compliant

Coherent Alternative

Investment

2005 TWELVE SVF TWELVE Smart Value Fund

Active Fund Communication | in EN & DE

www.tw-am.com

Anytime

TWELVE Website

Weekly

Weekly update

about Smart Value

Fund (per E-Mail)

Monthly

Newsletter about Smart

Value Fund & TWELVE in

general (per E-Mail)

Anytime

„Call the Manager“

Ask, respond, recommend!

Asset Management Inc.

2106 TWELVE CONTACT

Andreas Edtbauer, CPM, MBA

Managing Director

phone +43 (0) 732 890103 - 30

mobil +43 (0) 664 1033327

email aedtbauer@tw-am.com

web www.tw-am.com

www.tw-am.com

TWELVE Smart Value Fund

Dietmar Mayrhofer, CPM

Managing Director

phone +43 (0) 732 890103 - 20

mobil +43 (0) 664 1033171

email dmayrhofer@tw-am.com

web www.tw-am.com

FEEL INVITED TO CONTACT US.

Dametzstr. 38/3

A - 4020 Linz

Location: Linz

Structure: GmbH

RegNr.: 313166p

TWELVE GmbH