II. Investment Management

Q.What are some of the benefits of investing in offshore programs?
There are numerous benefits, some of which are as follows. As compared to onshore investment programs, offshore investments are tax efficient as they are not taxed on their returns in their country of registration. The range of offshore investment programs and styles is significantly larger than those offered in domestic locations. Offshore managers are truly global in their investment skills and expertise, the range of investment opportunities they provide and the jurisdictions from which they manage investments. Typically, due to the greater amount of money invested in offshore programs relative to onshore investment, the best investment resources are employed to managing offshore money; additionally, the management expense ratios are less than those of onshore funds.

Q. What is the Bayshore discretionary managed program? What is the minimum for this program?
Under the discretionary managed program, the client requests the Bank to manage their portfolio at the Bank's discretion using a combination of the various products and programs we offer. This process is very attractive to those clients who do not have the time or desire to manage their own portfolio. However, we welcome client input into the portfolio management process. The Bank requires a minimum account balance of US$100,000 for equity and US$50,000 for fixed income investment management. Smaller balances of US$10,000 are accepted where a client wants to manage their own investments, but generally this involves access to fewer bank services.

Q. Can I transfer securities and cash from an existing investment account at another institution? How do I do this?
Yes, you can transfer existing investment holdings to your account at the Bank. The procedure to achieve the transfer is simple. We will set-up a nominee investment account for you at an associated investment dealer and we will assist you in completing the relevant forms for this transfer. In the past, transfers have often been accomplished within two weeks.

Q. Are there charges for buying and selling investment holdings in the Bank's investment programs?
Other than for individual securities trading, we do not charge a transaction fee for buying or selling investments. Certain investment managers do have dealing fees for entering their investment programs and we would be happy to advise you of their fees. For those clients who manages their own portfolios the Bank charges an administration fee as quoted in the fee schedule for investment transactions.

Q. Will my account statement provide information that will assist me in evaluating the returns on my portfolio?
Yes, we ensure that you are kept informed of the returns on your portfolio because we believe that it is essential that you can assess the value we have provided to you as wealth managers. We ensure that you have the peace of mind that comes from being informed about your assets. Your statement will indicate the return on your portfolio for the period, year-to-date and since inception. In addition, your financial advisor will provide to you any other information you may find useful in evaluating the performance of your portfolio. Please click here for more details.

Q. How are the Bank's investment programs different to those offered by their competitors?

• Access to institutional funds and research resources
• Investment style, strategy and quality service
• Expert international investment professionals
• Reputable and resourceful strategic alliances
• Individualized portfolio analysis and management