Kinship Fund June 2012 Update

Blog Title: Kinship Fund - June 2012 Update

Welcome to our blog. We are using this platform to acquire further interest in our Private Fund and to provide on-going information as to what we are doing and how we are progressing in this challenging field as a Private Fund. Currently our status is that we are seeking capital in 2012. We will start trading our systems in September 2012. All results posted are theoretical gains from our systems that we track hourly. Real results could differ due to slippage or other factors. Kinship Investments is not an advisory service and does not provide investment advice. Please contact lee@kinshipinvestments.com for further information.

Happy Summer!

Our Kinship Fund was down a modest amount for June 2012 (-2.065%). Whereas other Hedge Funds have had wild double digit negative or positive swings recently, we believe it is better to have modest steady increases without those surprises.

Our Volatility System has had great success during the first part of the year but has been given back gains recently, regardless it is hitting its targets. The Medium Term Systems have not had a great run so far for 2012 which gives us a possible indication of potentially huge gains as it reverts back to the mean for the rest of 2012. Lastly, our Short Term Systems have been working as expected with gains of 11% for the first six months of 2012.

Our Results are posted @ www.kinshipinvestments.com/trustfund.html

The detailed breakdown of our three systems are:

Kinship Fund June 2012 Results = -2.065%

Year to date 2012, Kinship Fund Systems:

Medium Term Systems (MTS) = -5.551%

Short Term Systems (STS) = 11.082%

Volatility System (VTS) = 7.038%

Kinship Fund Total Year to date (June 2012) = 4.19%

Comparable Benchmarks Year to date (June 2012):

Newedge CTA Index = -0.261%

Barclay Hedge Fund Index = 2.35% (estimated from reported data from 2,681 funds)

Canada S&P/TSX 60 Index = -4.74%

S&P 500 Index benchmark = 8.31%

Our funds have been structured to have positive returns if the general markets are down or up. We describe this well (I believe) via our Kinship Presentation which is able to be viewed online @ http://www.slideshare.net/LeeKinship/hedge-fund-investment-v5 (we recommend viewing this presentation by first going to www.kinshipinvestments.com and following the instructions on the first page). We hope you had time to view this presentation now as we will be following up with interested investors very soon. In our presentation we show when the S&P 500 index is getting smacked with large losses - we are positive, and when the S&P is making huge gains - we may not be as good but we are still positive.

This is an interesting time to show one of our main advantages the Kinship Fund has over traditional funds. This is the fact that 'We do not make money until you the investor make money'. Simply put, we don't just have a Performance Fee hurdle, we also have a Management Fee hurdle.

Let's concentrate on the Management Fee and the 'hurdle' we need to maintain as this is timely. Management Fees are fees that are paid to an investment management company (Kinship Investments) that is responsible for directing the Fund (Kinship Fund). It is a % fee based on assets under management (AUM) that is paid out each month. Our Management Fee is 1.5% per year. To calculate our monthly fee, this 1.5% is divided by 12 (months) for a percentage of 0.125%. This 0.125% is what we multiply the AUM at the end of every month to receive a Management Fee. With me so far?

So, what does this mean to you? If you invested $1,000,000 and we had a result of 1% for the month then you would have a month ending with $1,010,000. To calculate our Management Fee we multiply this number by 0.125% to receive a Fee of $1262.50 ($1,010,000 X 0.00125) for this month.

So what makes us different? We have a hurdle to attain that is cumulative every month. We must provide a 0.8% gain for the Kinship Fund every month. This means in January we need to achieve 0.8%, in February we need to achieve 1.6064%, in March it would be 2.419% and so on.

Which brings us to our current month ending June 2012. At this point the Kinship Fund has a year to date result of 4.19% (end of June, 2012). For June our hurdle stipulates we need a result of at least 4.897% before we can receive our Management Fee. So, even though we may be able to receive our Management Fee for the first five months of the year, we would not receive our Management Fee for June.

But what investor wouldn't be happy with a return of 4.19% in six months? Regardless, we only receive Management Fees for 5 of the 6 months in 2012. This is our dedication to our clients' hard earned capital.

We've had great response over the last few months but we still need to raise a little more money to be able to start with our minimum amount on September 1st in the Kinship Fund. We are hopeful meetings in the next month will go well.

Hope to talk to you soon,

Lee MacFarlane
President
Kinship Investments Ltd.
cel (250-818-5330)
office (250-385-9132)
fax (250-385-9134)

http://www.kinshipinvestments.com/

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