Flagshipglobal

WESTMINSTER FLAGSHIP GLOBAL, LLC

Diversified Portfolio


	Account Description
	The Westminster Flagship Global portfolio provides investors with a global multi-strategy investment solution. This is a long-term oriented portfolio that seeks to invest in special situations in misunderstood or overlooked companies around the world. The portfolio invests in equities, fixed income, convertibles, warrants, options and other securities on a highly diversified basis. The Westminster Flagship Global investment philosophy is based on the theory that investment returns are asymmetrical- a negative return of 10% is not offset by a subsequent 10% gain. The investment team for Flagship Global believes that whenever a portion of long-term savings is to be put at risk it should be invested with the least risk of capital loss. Utilizing the full spectrum of available securities globally, the portfolio invests in opportunities that they believe have the most favorable risk/reward characteristics. Absolute returns are, in our view, the only true measure of economic reality. Recently, many have praised the importance of relative returns, investing a client’s assets with the goal of marginally outperforming an arbitrary benchmark. With respect to Westminster Flagship Global, there is no benchmark other than our ability to continually grow our client’s wealth, in all market conditions. We do not believe in the rationale that large negative returns should or will be tolerated by investors, regardless of market environment. The inability of an investment manager to consistently generate a positive investment return prohibits the most powerful effect of investing, the compounding of returns. Our global value approach relies on our extensive proprietary in-house research to uncover opportunities overlooked or misunderstood by the vast majority of investors. As a global value investor (buying a dollars worth of assets for less than a dollar), we believe the most profitable opportunities are to be found in temporarily out-of-favor companies. Like many value investors, we look to identify companies trading below their intrinsic value; however, more importantly, we seek to avoid the Value Trap of traditional value investing. While many investors wait for a catalyst to unlock the hidden value of some form of dormant or unrecognized asset(s), time becomes a principal risk: the longer it takes for the catalyst to act, if ever, the lower the effective return. At Westminster Flagship Global we simply view these assets as our margin of safety. Rather than hoping for some future event to create investment performance, we rely on the quality of a company’s core business. Our Investment Criteria eliminates the vast majority of publicly traded companies on a global basis. We focus on businesses with long product life cycles and the ability to generate substantial cash flow. These are companies that we believe have the ability to sustain a high return on equity and tend not to be subject to severe price competition or technological obsolescence. While we often invest in out-of-favor companies, Westminster Flagship Global utilizes its intense research capabilities to distinguish between permanent and temporary problems, and has the patience to see that the latter are resolved. True Diversification is a unique methodology that has allowed Westminster Flagship Global clients to preserve capital in difficult markets. Contrary to the most widely held concept of diversifying a portfolio based on industry or sector allocations, which may actually concentrate risk, the concept of avoiding co-dependencies among holdings results in true diversification. We accomplish this by constructing our portfolios with individual companies that do not have significant business relationships with one another, regardless of their industry or sector. The objective of the portfolio is to first preserve capital over the long term and then generate superior returns with low volatility, risk and correlation to the global equity and fixed income markets. From an investment perspective the optimal way to meet these objectives is to gain access to the global marketplace without restriction or rigidity. Through the Westminster Global Investments portfolio, clients will be gaining access to a highly diversified offering of investment opportunities with the utmost flexibility.

	Account Administration
	The account has retained the services of Westminster, Hope & Turnberry, Ltd. to administer and invest the portfolio that secures this account. The investor understands and agrees that Westminster administers other investment funds and may effect transactions with respect to securities in which it, its officers, directors, employees and affiliates may have a direct or indirect financial interest.

	P.O. Box F-42657 Freeport, Grand Bahamas Bahamas Tel. 242.351.8903 / Fax. 242.351.8844 e-mail: clientserv@wh-t.com ©2000 - 2002 Westminster, Hope & Turnberry, Ltd. Sale or solicitations of WHT products are expressly prohibited in the United States. WHT products are only available to institutional investors domiciled in jurisdictions where WHT is authorized to conduct business. This is provided for informational purposes only and is not intended as an offer to sell, an advertisement, or a solicitation.