IEF: SL Income & Equity Fund
Market Performance Plus...
|Total shares: 5,129,398|
Company Tagline: The Name Inspires Trust
CEO's RL/SL Name: Scott Bachrach (SL:Scott Nestler)
CEO's Real Life Location: New York, USA
CEO's Email: firstname.lastname@example.org
Company Avatar: Scout Haystack
Directors, Company Officers
At formation of the SL Income & Equity Fund (IEF) on January 18, 2011, the SL CapEx Board of Director appointed Scott Nestler CEO/Director of the Fund.
Once a quarter the top 5 Shareholders of IEF will be appointed onto the Board of Directors. Scout Haystack is a known alt of Scott Nestler and will be the holding account for all IEF assets in addition Scout Haystack will not be eligible for a seat on the Board of Directors.
Currently the Board is comprised of:
Cash On Hand: 6,292and so it begins..............: To whom it may concern;
In January 2011 the SL CapEx Chairman/CEO made the decision to seperate the exchange and the CapEx Composite Fund. From this strategic decision the SL Income & Equity Fund was born.
Scott Nestler, former owner and CEO of Capex and Chairman/CEO of Nestler Investment Company is the Director of SL Income & Equity Fund (IEF).
Scott's goal for IEF is simple, build a fund that will represent the SL CapEx exchange. Starting with day one, out of the nine listed companies on the CapEx exchange IEF holds a substantial position in 5 of those companies.
Alpha Phoenix Distribution 6.2%
Ford Edelman & Co. 5.2%
Nestler Investment Corp. 8.0%
Virtual Payment Systems 9.6%
Zhenya Zoning Real Estate 5.6%
The director of this fund is comitted to gainind positions in other companies on the exchange that offer dividends and chance for growth for IEF.
The SL Income & Equity Fund(hereinafter IEF) has been developed as a marketable security trading on the SL Capital Exchange.
To establish a performance based on at least a 5% ownership in all SL CapEx companies, the SL Income & Equity Fund has been initially setup as follows;
TICKER / OWNERSHIP
APX Alpha Phoenix Distribution 62,001
FED Ford Edelman & Co. 52,201
IC Nestler Investment Corp. 800,001
VPAY Virtual Payment Systems 1,150,001
ZEN Zhenya Zoning Real Estate 151,001
The SL Income & Equity Fund will be periodically reviewed for performance. All shares belonging to EIF will be held in a known ALT of Scott Nestler, Scout Haystack.
We believe this relatively simple methodology will help to facilitate qualitative measurement of fund performance for the average investor, and, will likely also create tracking-error opportunities for the sophisticated investor - a good balance for our marketplace.
Our greatest strength is without question the depth of experience of our Management Team and Board of Directors - we've each been around the SL block several times - we've witnessed the challenges firsthand, we continue to participate in all facets of the SL community at large and we're firmly dedicated to the value proposition that we offer the community via the SL Income & Equity Fund.
Use Of Capital
No incremental capital is being sought.
On an ongoing basis, (only upon achieving the IEF's initial asset allocation targets), we fully intend to distribute a substantial percentage of any monthly profits via dividend distribution. While difficult to predict at this early stage of development, a monthly dividend distribution of 85-90% of post-expense profits is likely an achievable goal.
Whereas traditional capitalization-weighted index funds seek to mirror the performance of the underlying index, we believe the methodology is systematically inefficient when a passive management style is employed as the sole fund strategy. Cap-weighted indexes tend to overweight overvalued stocks and conversely tend to underweight undervalued stocks. Additionally, the potential for accutely sub-optimal performance is further compounded in SL by the sheer lack of diversification in the index itself. This very real concentration of risk is often amplified by extreme price volatility and a general lack of liquidity in the SL capital markets.
To mitigate such risk, the SL Income & Equity Fund will employ a hybrid or ENHANCED 3-tier management strategy utilizing both passive and active trading components, as follows;
The passive component will seek to allocate 1/3 of the fund asset pool to directly mirror the CapEx Composite index. Our target for this component will be a static portfolio comprised of a 5% ownership stake in each indexed company.
The second component of the fund will allocate 1/3 of the asset pool to active management using a FUNDAMENTALS-based trading strategy. Its purpose is to help reduce volatility in the composite index, offset potential composite index front-running at or near re-balancing, and to participate in ex-dividend distribution and opportunistic fair-value to market arbitrage. If managed properly, the active component should outperform the composite index by a small margin.
Whereas traditional IEF's typically trade at or near the NAV of the underlying portfolio, our strategy of employing an active component with authorization to participate in arbitrage opportunities should allow the SL Income & Equity Fund to trade on the open market at a price substantially higher then NAV.
As such, at formation, the IEF has been priced at L$1.20 per unit, exactly 2x the initial fund NAV.
The third component of the fund will seek to maintain fully 1/3 of the asset pool in CASH as a hedge against overall market declines and to provide sufficient resources to take advantage of short-term arbitrage opportunities as have been described in the active component above.
Capital Investment both in real-life and Second Life(tm) is fundamentally all about MANAGING RISK and is primarily about balancing the risk versus reward scenario. In any Investment opportunity there may be SUBSTANTIAL RISKS which must be thoroughly and diligently considered.
Specific to SL CapEx-based Investment REGARDLESS of whether you consider this activity to be simply STOCK MARKET GAME PLAY, an ECONOMIC SIMULATION, a TOY ECONOMY or a bona fide investment opportunity I implore you to familiarize yourself with both the Linden Lab Terms of Service (TOS) and the SL Capital Exchange Terms of Service (TOS) contained at the following links; (these be the basic rules)
Linden Lab TOS: http://secondlife.com/corporate/tos.php
SL CapEx TOS: http://www.slcapex.com/content/info
TO BE CRYSTAL CLEAR: YOU COULD LOSE SOME OR ALL OF YOUR SL CAPITAL INVESTMENT! ($L's)
Prior to considering any investment one must identify, analyze and mitigate risk at both a macro-level (example; governmental, regulatory, operating environment, et al) and at an enterprise or micro-level
(ie; company, competition, etc.). Additionally, the potential risks must be considered from both an internal (controllable) and external (no control) standpoint. We have diligently considered the following potential risks;
MACRO-LEVEL: There has been community discussion within the last year as to whether (or when) governmental agencies might intervene within the SL Financial community from a regulatory or legislative standpoint. This is an external risk over which we have no control.
There has also been debate and dialogue regarding Linden Lab's support and ongoing administrative control over the unit of measure commonly called $Lindens on several fronts, including;
(a) CONVERSION of $Lindens to a LEGAL TENDER CURRENCY and the potential tax consequences thereof. Here, too, we have no control or authority. Players ar encouraged to seek their own counsel regarding any potential tax consequences in their local jurisdiction.
(b) Linden Lab's ability to MAINTAIN a STABLE ECONOMY as measured by the EXCHANGE RATE of $Lindens to US Dollars, the availability and pricing of virtual Real Estate within the SL environment, and various other user experience metrics as are published from time-to-time by LL and others.
Regardless of LL's apparent unwillingness to acknowledge its role as the CENTRAL BANKING AUTHORITY and MONETARY POLICY ADMINISTRATOR within SL, they DO CONTROL the $L:$US conversion rate and thus have totalitarian authority and sphere of influence over the $Linden Unit of Measure and its trade value within the overall SL Economy.
We additionally have little direct control over the SL technical environment or the innovations and feature sets it supports. Our OPPORTUNITY is in finding unique ways to thrive and survive within and adjacent to the boundaries of the SL Metaverse.
MICRO/ENTERPRISE-LEVEL: The majority of our internal risks are directly related to our ability to articulate and execute viable business strategies, and our ability to successfully develop and deploy technologies that add value within the SL community.
Innovation within the SL community is MARGINALLY DEFENSIBLE from a competitive standpoint. Most successful SL product concepts are mimicked and/or improved upon by others rather rapidly. Creative Marketing strategies and ontinual product and process improvement is required to attain or maintain any level of competitive advantage within SL.
A portion of our Intellectual Property portfolio may be defensible from either a Copyright(C), Trademark(tm) or Patent standpoint. While we can make no claim as to the longterm sustainability of such competitive position we do intend to vigorously protect such rights where practical and economically viable.
Scott Nestler has been appointed as Managing Director of the fund responsible for portfolio performance, trade execution and operations.
As the former Chairman/CEO of this exchange and the CEO of Nestler Investment Company (NIC) Scott Nestler has shown the experience, expertise and responsibility of which has proven to be formidable and complementary team player within the SL financial community.
The success or failure of any venture can generally be laid at the feet of its leadership. In considering the appropriate experience level and business acumen required of this venture it should be relatively clear that both broad and deep industry knowledge is required.
Ours is a DIFFICULT JOB on the BEST DAYS and an IMPOSSIBLE JOB on others - we can't please everyone every time. Regardless, we persevere mindful of the prize and the dream - it's still intact and we're as engaged as ever.
We wish you THE BEST in your Investment endeavors!
Questions?? Please feel free to drop me an e-mail or IM in-world!