Gulf Kingdom Energy Trust and Funds Ltd (the Fund) was registered as a company limited in the United Kingdom in November 23, 2006. One of the dominant shareholders of the Fund is Morgan Funding Organization (MFO), which is a leading Canada-based financial service company establishing and managing private equity funds.
The Fund's primary business will be to tap into Asia's immense energy markets, especially the sector in Mainland China. It will identify, acquire, develop, redevelop, operate and exit lucrative energy projects in the region.
The Fund aims at bringing about high return for our investors by taking the huge growth opportunities presented in the Chinese energy markets. It is managed by a group of highly professional and experienced staff with strong business sense to identify and capture investment opportunities in China's energy sector.
By investing in those companies with high growth potential and strong expansion momentum, we believe we can bring about value for all the parties involved, including the invested company and our investors. Our objective is to realize the appreciation in the value of our investments through the tremendous growth of China's energy market.
The areas of our investment include:
1. Petroleum trading 2. Logistics and transportation (for crude oil and petroleum) 3. Oil pipes 4. Wind power 5. Nuclear energy 6. Biofuel and 7. Other types of environmental friendly energy and products.
We try to figure out investment opportunities in the energy market of Greater China and seek the long-term stable growth of our fund assets. Basically we will invest only on projects with high yield and low risk. All projects we invest in are pre-IPO companies who will generate tremendous return on investment and capital gain.
For petroleum trading, we have established an operation arm Gulf Kingdom Petroleum (Hong Kong) Co. Ltd in Hong Kong Special Administration Region to benefit from the country's increasing demand of petroleum. The Hong Kong company has come into operation since its inception in mid 2006.
For other types of energy, we will invest in the shares of newly established companies that demonstrate high growth. We make investment either through acquisition of existing equity interest in the target companies, or establishment of joint ventures/partnership companies with them, but we usually hold 60-80 percent of controlling interests. In oftentimes, our local business partners are professional firms that are well versed in the technology and market operation. For instance, we will invest in a wind power project with a partner with proven track record in running a wind farm successfully.
We value the cooperative relationship with our invested companies, the PRC government and our overseas investment partners. By providing high quality value-added service for the invested companies, and fully leveraging the well established investment experience, extensive overseas resources network and outstanding project execution skills of Morgan Funding Organization and our investors, we believe we can develop a promising future.
Investment Criteria
Energy sector
High growth potential
Low risks
Good corporate governance and established sales channel
High barrier of entry
Unique technology and marketing advantages
Investment holding period is 2-5 years
Return on Investment
Gulf Kingdom Energy Trust and Funds Ltd is going to acquire a portfolio of companies that will invest in highly lucrative projects with low risks. Our management team will use their expertise to analyze the financial feasibilities of the projects to ensure that they meet our criteria.
Basically we will only invest in those projects with annual ROI not less than 15-20 percent, plus tremendous potential for capital gain. The Fund will not compromise its investment philosophy for the sake of market shares. Our main consideration will always be the benefits to our investors.
Private Placing
At the moment, the Fund is making private placing globally to investors who wish to benefit from China's rapidly expanding resources and energy market. The Fund provides a golden opportunity to invest in such a vibrant sector.
Until now the Fund has accepted a number of commitments, but the Fund is aiming at an even bigger base of investors to avoid dominance by big institutional investors. In our view, the more diversified the investors, the better is the Fund's structure.
To achieve this goal, the Fund is offering a commission of 3 percent to placement agents who recommend investors that finally sign the commitment agreement. Middleman firms can contact us for details of this kind of cooperation.
Exit
The Fund targets at long-term goals for its investment. It is at the management's discretion to decide when to distribute dividends. Investors are advised to anticipate long-term return instead of short-term profitability.
Investors can apply for redemption of their shares but it is at the management's discretion to accept. The management may help investors to sell their interests of the Fund in a secondary market, but there is no commitment in it.
Usually the portfolio companies that the Fund invests in will go for an IPO in a mature stock exchange. There is also a possibility that the Fund itself will become an ETF (exchange traded fund). If this happens, our investors can then sell their shares in an open exchange.
Gulf Kingdom Energy Trust and Funds Ltd (the Fund) was registered as a company limited in the United Kingdom in November 23, 2006. One of the dominant shareholders of the Fund is Morgan Funding Organization (MFO), which is a leading Canada-based financial service company establishing and managing private equity funds.