INTRODUCTION TO THE MERIDIAN MORTGAGE FUND

ESTABLISHED 1996

Meridian Trust Company Limited

Clifton Simeon – Trust Officer / Investment Advisor

Overview

About the Turks & Caicos Islands

Turks & Caicos Islands Economy Update

Property Investments in the TCI

MERIDIAN MORTGAGE FUND

Protecting Your Money

Summary

Meridian Trust Contact

Turks & Caicos Islands

The total population of the Turks & Caicos Islands (TCI) is about 36,604 (2017) people. The two largest cities are Providenciales and Grand Turk.

The TCI consist of 40 islands and cays, eight (8) of which are inhabited. The islands are located approximately 600 miles southeast to Miami, Florida and110 miles south of the Bahamas. Technically, the TCI is located in the Atlantic Ocean, not the Caribbean Sea.

TCI is on Atlantic Standard Time (Eastern Daylight Time) all year long. Clocks are not turned back an hour in the fall, allowing residents and tourist to enjoy later sunsets and an extra hour of sunshine during evenings over the winter season.

The average temperature in the TCI is 80-90℉ (26-32℃) from June-October. From November-May the average is 80-84℉ (26-29℃).

The TCI’s government operates under British Law as a British Crown Colony. A governor is appointed by the Queen and presides over an executive council formed by an elected local self-government. Government offices are located in Grand Turk, with branches on other Islands as needed. The legal system is based on English Common Law.

Turks & Caicos Economy

Language: English

The economy of the Turks & Caicos Islands (TCI) relies on the tourism industry, real estate development, importation of goods and the exportation of seafood.

The TCI offers a wide variety of financial services, including establishment of offshore companies, offshore insurance, banking, trusts, limited partnerships and limited life companies.

The TCI’s Financial Services Commission regulates, develops and promotes the industry in major world markets.

The TCI uses the United States currency (USD).

The economy currently has one of the fastest growth rates in the Caribbean. The GDP growth of 5.94% (2015), the TCI is projected to experience economic growth of 4.4% in 2016.

Providenciales is by far the most developed of the Turks & Caicos Islands. With tremendous advances in infrastructure and services, and the real estate market has changed from a speculative market to more of a lifestyle purchase.

Property Investments

The real estate market in Turks & Caicos is very strong, with a steady supply of high net worth buyers. But despite all the growth, TCI is still underpriced compared to other top Caribbean islands, and offers tremendous value to foreign investors.

Since the upswing in quarter-four (Q4) 2011, real estate and development has experienced a healthy cross-section increase of sales in each segment of the market.

The TCI has a favorable tax system and no limitations to foreign ownership of property.

No income taxes on revenue generated from property.

No annual property taxes.

No capital gains tax on sale of property.

The Turks & Caicos has a modern land registry system, that makes transferring of title simple and accurate.

Property Investments

Vacation Homes: Many people are acquiring 2nd and 3rd homes to provide

portfolio diversification and to enjoy the property while capital

appreciates.

Raw Land: Beach front, canal lots and view lots are currently available on

the market. Limited supply and steady demand has pushed prices up.

Condominiums: There’s a wide selection of condos available from low

budget to high end luxury accommodations. Condos have seen an increase

of 18% in sales from 2015 to 2016.

Villas: There are a wide range of villas rentals available for you, most with

panoramic views of TCI’s pristine waters and magical sunsets. Villas sales

(up 27%) has finished strong yet again in 2016.

Affordable Options: An influx of migrant workers and limited supply of

affordable housing has driven rental yields upward.

Turks & Caicos Real Estate Sales 2016

The Turks &

Caicos Islands

are emerging

as one of the

fastest-growing

real estate

markets in the

Caribbean

region. 0

10

20

30

40

50

60

70

80

90

100

Test 1 Test 2 Test 3 Test 4

First

Second

Third

2016 Condominium & Villa Sales

Project

Item 1

Item 2

Item 3

Item 4

Turks & Caicos Condominium Sales – Year End Comparison 2016

Turks & Caicos Home/Villa Sales –Year End Comparison 2016

“A conservative fund which provides the

discriminating investor with periodic

income, high yields, stability,

diversification and liquidity.”

Meridian Mortgage Fund (MMF)

What is a ‘mortgage fund’?

A mortgage fund is a type of

investment in which you buy units

in a fund that is operated by a

professional fund manager.

The mortgage fund’s money is

lent out (as mortgage loans) to a

range of borrowers who use the

money to buy and/or develop

properties.

In return for investing your money

(your ‘capital’), the fund manager

promises to pay you a regular

income through cash distribution

or reinvestments.

Meridian Mortgage Fund

Currency: US Dollar (USD)

Classification: Mortgage Backed Securities

Fund Manager: Meridian Mortgage Corporation Ltd.

Regulator: TCI Financial Services Commission

Auditor: (PwC) PricewaterhouseCoopers

MERIDIAN MORTGAGE PORTFOLIO

Total Loan Portfolio $ 63,564,434

Total Cash & Certificate of Deposits $1,069,176

Total Fund Value $64,633,610

Value of Underlying Security

$160,389,506

Loan To Value Ratio 39.63%

Fund Facts Portfolio Summary

AVERAGE ANNUALISED NET RATE OF RETURN (%)

Q4 2016 3 YRS 5 YRS INCEPTION

(1996)

6.12 6.25 6.26 8.80

Meridian Mortgage Fund Mandate

The objective of the fund is to achieve the highest level of current return as is consistent with the preservation of capital.

The fund intends to achieve its objective by investing primarily in first position mortgages”

In the Turks & Caicos Islands

With a maximum 3-year loan term

With a maximum loan-to-value ratio of 50% of the appraised value

All borrowers securing a loan on property containing a structure are obligated to carry building insurance from an insurer deemed acceptable by the fund manager. The fund is audited by a ‘Big 4’ accounting firm annually. Returns accrue bi-weekly and are distributed on a quarterly basis. The fund is designed for investors who are seeking high yield returns over the mid-to-long term horizon.

MMF vs. US National CD Yield

Comparison

between two

low-risk

investments.

Meridian

Mortgage Fund’s

return compares

favorably with

US National CD

yield.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MMF Dividend Yield (Life of Fund) vs. National Average 1-year CD Yield

Dividend Yield 1-Yr CD Yield

Meridian Mortgage Fund

classifies its portfolio with

secured mortgages containing

a mixture of loans between

land, residential, commercial

and multi-unit residential that

creates security for all

investors.

Meridian holds 74% of its

total loan portfolio in the form

of assets, 26% vacant land.

Meridian Mortgage Fund maintains a balanced portfolio of loans by spreading money we lend and invest between different loans, borrowers and investments.

The loan-to-value ratio is currently 39.35% (Q4 2016), which remains significantly below the maximum ratio of 50% which translates into reduced risk.

Stability Diversification

Meridian Mortgage Fund

Secured Property Classification Portfolio Analysis

Meridian has no front-end load fees to investors.

Investors are liable for a 2% redemption penalty if shares are redeemed within the first year.

No redemption penalty after 1-year period.

MMF has the ability to meet its short-term cash needs.

Interest rates in the Turks &

Caicos Islands, historically,

have been significantly higher

than other onshore locations.

Meridian Mortgage Fund has

an average return of 5% and

higher to investors

(subscribers).

Most recent calculated net-

return, Q4 2016 is 6.12%.

Liquidity High Returns

Investors’ income generated by the fund:

Can be reinvested in the fund ; or

Paid out on a quarterly or annual basis

Income is generated from:

Income received (interest collected from borrowers)

Selling off assets and collecting late payment penalty fees

MMF maintains

$3,000,000.00 in liability

insurance.

MMF is audited by

PricewaterhouseCoopers on

an annual basis.

All mortgages are registered

with the government land

registry.

Meridian requires a first

position charge against all

properties.

Periodic Income Security

MMF as a Pension/Savings Account

Scenario: Jack & Diane invested $25,000 in 1996 into MMF as a pension/savings account. Without any additional subscriptions to their account, as of November 2016, the account has a balance of $127,096.90. The same scenario is compared if Jack & Diane were to invest that money into a bank CD for the same amount of time.

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Initial $25,000 Investment at Start of Fund

Bank CD MMF

Based on Average Rate of Return for 2016

Double Investment Amount

Scenario: Jack &

Diane are happy

with their

investment. Apart

from their

Pension/Savings

account, they have a

grandchild now and

wanted to know how

long an investment

of $100,000.00 will

take to double.

Keeping the rate of

return constant, for

the example, it

would take about

12 years for Jack &

Diane’s investment

to double in value.

As compared to US

National Bank CD.

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

2016 2018 2020 2022 2024 2026 2028 2030

Investor Wants to Know How Long Their $100,000 Investment Will Take to Double - Meridian Mortgage Fund vs. Bank CD

MMF Return 6.5% Bank CD Return 0.29%

$212,909.62

$103,536.04

Based on Average Rate of Return for 2016

MMF Applicable Fees

Summary of Fees and Expenses

Meridian Mortgage Fund has no fee associated with subscribing (minimum first time investment of $25,000.00).

Management fee is .5% of the average daily NAV (net asset value) of the fund.

This fee is paid quarterly

Investment advisor fee is .15% of the average daily NAV of the fund.

This fee is paid quarterly

Referral fee of 1% to any individual referring Meridian Mortgage Fund.

This fee is paid quarterly

Two (2) Ways to Invest in Mortgages

Investors “pool” their money into

MMF.

Profits generated are distributed to

investors according to their

proportional interest at subscription.

Earn a blended rate of return based

on the interest earned from each

respective mortgage.

Simplest form of mortgage-backed

securities.

Mortgage Pool

Group of investors invest in one specific mortgage at a time.

Investor is free to contribute any amount they’d like toward the full loan amount.

When mortgage matures and is paid out, the funds are returned to the investors.

More hands-on than a normal mortgage pool.

Specific Mortgage Syndication

Due Diligence

Individual Investor

Certified copy of Passport of Driver’s License

Copy of Utility Bill (credit card statement etc.) showing

current address

Occupation (job letter or resume)

Place of Birth

Contact Information (telephone number, email and/or

mailing address)

Due Diligence

Corporation and/or Private Company

Copy of the Certificate of Incorporation

A certificate of ‘Good Standing’

Identification of Directors

Identification and Nationality of Beneficial Owners

Nature of the Company Business

Registered office details

Asset Protection

To protect client confidentiality, Meridian acts as nominee director and secretary, registered office and administrator of bank accounts.

A USD $3,000,000 insurance policy with Lloyds of London is set in place to protect clients capital + investment.

The FSC (Financial Services Commission) of the Turks and Caicos Islands ensures that competent management with sufficient experience is met to manage the affairs of a Trust company, they review the business license on an annual basis.

Benefits of Investing in MMF

Returns that average 5.5% and higher

Liquidity (fund policy in place that ensures cash is on hand to meet cash needs)

Real estate security (mortgage-backed security - not associated with the US stock market)

Monthly income

Low volatility

Professional management

Diversification (fund policy in place for lending and investing)

Compounding is available

Meridian Contact Information

Mr. Clifton Simeon Trust Officer / Investment Advisor

Meridian Trust Company Ltd.,P.O. Box 599, Le Vele Plaza, Grace Bay

Providenciales, Turks & Caicos Islands, BWITel: +1 (649) 941-3082Cell: +1 (649) 243-9275Fax: +1 (649) 941-3223

Email: clifton@meridiantrust.tcWeb: www.meridiantrust.tc