16 September 2005
The RIO Professional Investors Fund Limited will be launched during October 2005. This is a low risk mutual fund and is the fourth direct investment fund to be offered to our membership in the last 2 years. It will again be administered from our offices in the Isle of Man.
Many members have reduced their exposure to RIO Portfolio (the Club’s collective investment scheme with Hansard International Limited) in favour of our own direct funds that are structured to except lump sum investment only and are far more cost effective.
It is also true that RIO’s licensed mutual funds have out-performed RIO Portfolio. There are obvious reasons for this; firstly, they have been specifically designed in house to meet an identified market opportunity. The markets identified cannot be accessed by RIO Portfolio due to the restrictive nature of life assurance products which are not always suited to international investment.
Secondly, obviously the charges imposed on RIO Portfolio, through a life assurance product, are higher. These charges were not levied by us but by Hansard and were reasonable in comparison with other life companies at that time. The charges were acceptable in many cases as the benefits of a life product were substantial to many investors. Many such benefits have since become obsolete.

Fee Comparison;
Establishment Charge: Hansard 6% RIO Funds 2 / 3%
Annual Management Fee: Hansard1% RIO Funds0.75%
Administration Fee (pa): Hansard _116 RIO Funds Included in Mgmt Fee
Early Surrender Penalty: Hansard 4 years RIO Funds2 years

This said, RIO Portfolio was our first direct investment to be offered to the membership and it has never fallen below its launch price. During 2001 RIO did not have the back office support to administer this collective investment scheme ourselves and hence opted for Hansard International, with whom we already had substantial funds invested under RIO’s management. Hansard have always done an excellent job in hosting RIO Portfolio, backed with perhaps the best online reporting system available and supported by an attentive and efficient staff.
Finally, almost all members have surrendered there holdings in RIO Portfolio and moved there lump sum investments to RIO direct funds (RIO TLP Fund, RIO Prestige Performance Fund or RIO Fixed income Bond). This coupled together with the launch of the new fund RIO Professional Investors Fund Ltd which can invest in Oil, Gold and other commodities its holdings also will include cash and fixed interest holdings and will provide an excellent platform to house lump sum investments for members. You will know from my investment reports and the RIO Newsletter that I correctly predicted the price rise in both Oil and Gold and as such was inundated with queries as to why I hadn’t utilised RIO Portfolio to exorcise the profits from these opportunities.
As explained above, the restrictions placed on RIO Portfolio meant that unfortunately this was not possible. The RIO Professional Investors Fund will provide this option and more.
The minimum investment level for RIO Professional Investors Fund is $100,000 and any members interested in this Fund should contact me immediately. The above spells the end of RIO Portfolio as it has outgrown its use and I have entered discussions with Hansard regarding this.
Those considering moving funds from RIO Portfolio should note that we can discuss favourable rates for entry. Those who wish to maintain their UPP investment can of course do so and we will be happy to continue to manage your investments with Hansard on bespoke basis

15 September 2005
For those members invested in our Options Account I have just closed a position shorting Sterling. This trade was again profitable which will be reflected in percentage gain to date.
Members can review up to date information and fund reports via our re-designed web site launched this week.
The options account is offered as a free service i.e. no 0.75% Management charge, no custodian charge, no establishment fee, no commission etc.
The 10th Anniversary issue of RIO Club News aptly titled ‘10 Years of Success, The Past, Present and Future’ will be sent out to all members shortly. This 64 page full colour issue is in the final stages of editing now!
My business trip to the UK was both successful and productive; I personally recruited Edward Legge as the new General Manager for RIO Prestige Performance (UK) Limited.
My work with Edward in our UK office for 10 days assured a good ongoing working relationship was established at the outset. This is an essential ingredient for success in this venture which is now at full throttle! We finalised the work to acquire another five new vehicles bringing the total RIO Prestige fleet up to twenty two units. This fund is fast becoming the driving force behind The RIO Club.
Also I met with our lawyers to finalise the work on our new fund RIO Professional Investors Fund which is to be launched later this year.
Finally the risk profile of RIO World Wide Opportunities Fund has been changed from its protective low risk stance to the current low/mid risk position to take advantage of current opportunities. The aforementioned is the club’s regular investment fund which is administrated by Hansard International.