Seven Realms Fund

The Seven Realms Fund is a proposed international mutual fund dedicated to bringing balance and growth to the worlds currency and monetary markets.

The Seven Realms Fund  is intended to cater to the currently un-served financial  needs of all the developing and frontier financial institutions of the world.

The fund, a Specialized Investment Fund (SIF),  is a legally designated fund based on the Luxembourgish fund  law of 13th February 2007.  The Seven Realms fund would be created to be considered a self managed fund with virtually all primary operations provided by subcontracted firms.  Marketing by the Seven Realms Group and then separate administrative, transfer and custodial services, among others, would be provided by various financial services company such as Standard Chartered Group.

The Luxembourg based  marketing company and legally described promoter of the fund, The Seven Realms Group would initially  be owned eighty percent (80%) by the Seven Realms Foundation.  This Foundation will be dedicated to four primary goals.  The first two would be the building of water based and transportation based infrastructure worldwide.  The third would be dedicated to the planting of trees, shrubs and preserving wetlands in as many spots of the planet as possible.  The fourth function of the foundation would be to provide restoration assistance to those areas suffering from natural disasters.

Twenty percent (20%) of the Seven Realms Group will be owned by the founders, early management and financial investors of the Group.  As the dividends to the Foundation and the Group shall be determined after the expenses of the marketing and management expenses of the fund.

It is envisioned that the revenue and thus profits and dividends of the Seven  Realms Group and Seven  Realms Foundation would be derived from all monies remaining from the management fees revenue of the Seven Realms Fund after the administrative, transfer, custodial and other expenses were paid to the subcontracting support companies.  

  This SIF international oriented mutual fund would hold common stocks, preferred stocks, ETF's and other mutual funds, corporate bonds, government bonds and an international basket of currencies.  These would be securities quoted on an established and recognized exchanges or  markets throughout the world.  The balance of the fund, between these various classes of securities and currencies would also be guided by balancing fund assets evenly among seven (7) pre-determined areas of the world.  The Seven Realms. 

As with other pre-authorized mutual funds the assets of the SIF would be acquired by exchanging unit shares of the SIF for assets presented to the fund.  The SIF would also accept currencies the world over in exchange for unit shares.  After the initial creation,  the SIF would be opened to financial institutions, government entities and "informed investors", as determined by Luxembourg law, worldwide.  It is envisioned that the early marketing and thus investors to the fund shall be banks, central banks and other financial institutions based in what are described as economically  developing and frontier nations of the world.

  The SIF would have a designated administration company  (perhaps Standard Chartered Group or else  European Fund Administration S.A. of Luxembourg, www.efa.eu)  to determine it's Net Asset Value (NAV) at the end of each world trading day. This NAV value would then be the price at which all transactions of buying or redeeming the fund units would be done during the next business day.  The SIF would also require both a Custodial Bank and a transfer agent registered in Luxembourg and around the world.   This would, again,  most likely be an organization such as  Standard Chartered from its offices in Luxembourg and then worldwide.  ( http://bit.ly/L85zZw )

The success of the fund and its purpose would be best facilitated if the fund were of some considerable financial and geographic diversification. Think of it as sort of a sovereign world fund for the entire world.  For one to appreciate the true idea of the fund, the foundation and the management company one must think in terms of the fund holding assets from virtually every nation in the world and  with total asset values in the multiple trillions of dollars.  

The basic foundation of the fund would be in its size and geographic diversity. The larger the assets of the fund and the more diverse the better its ability to help stabilize world currency and interest rate fluctuations.  The true success of the fund would be when the price of a single Fund unit is compared with the price of any major or minor currency worldwide. Thus a unit price would be compared to and quoted against the price of Dollars, Euros, Yen etc.   It should be this comparison, as opposed to comparison with the value of other mutual funds that is the goal of the fund.  In the same manner every entity owning units in the fund could then trade the units back into a currency or currencies of choice.

As the fund is meant to hold securities for long term it would not be considered by any of the countries it invested in as "hot money". It would also attempt to eventually hold every viably traded common stock worldwide in some amount or other. The same would be of many corporate bonds, government bonds from many countries, states and municipalities and again also virtually all world currencies in some amount.  In this way every unit of the SIF Seven Realms fund would be backed by marketable, quoted and tangible financial assets.  This would make the value of each unit of the fund correspond to the NAV of the fund and not market forces creating a value by trading against other currencies or assets based upon market forces of supply and demand. 

Thus countries such as China and Russia could trade US treasuries for units in the fund. The same is true of all countries, banks, insurance companies and eventually individual citizens in countries where this was allowed by law.

The fund does not intend to seek nor intend to pursue a goal of fast appreciation of NAV. It is intended more to provide stability and alternatives to currencies, financial institution credit rating enhancement and individual investment opportunities worldwide.  Providing this financial product would then facilitate more long term investment in all frontier,  developing and developed markets.  

Outline for the Green River Group of Companies

SEVEN REALMS Development Companies

### Seven Realms/ Regions Worldwide -- Seven Independent Publicly Traded Regional Development Companies

###The Regional Development Companies to provide regional non-government, free- trade based entities to spur infrastructure development, stabilization and growth primarily in developing countries and hence worldwide.

### Each Regional Development Company initially seeded by the Seven Realms Fund and the other six Regional Development Companies through the exchange of common stock.

### Holding Companies initially debt free.

###Use of the Seven Realms Fund as a repository of a large amount of the liquid assets such as government bonds in exchange for units in the fund. This would enhance the liquidity of such assets.

###It is also envisioned that the Seven Realms Fund will hold assets far and above those just provided by the six regional development companies and thus even further stabilize and promote an economic atmosphere for development worldwide.

The concept being that the developing world actually has extra-ordinary assets within each country, that if properly combined and put to use, far outpace possible funding from the developed world.

No property will be required to sell to the seven Realms Development Companies. It is all to be based upon market forces determining a price to be proposed and met or denied. I do envision however that the greater success of the seven developing companies they more attractive an economic incentive for people and companies to participate.

It is hoped that consideration be given to the hiring of as many women as possible for early top management roles world wide. This is to not only to tap often overlooked talent but to also create a set of role models for women to also participate fully in the creation of businesses world wide.

Thus:

Jinghong Realm Ltd. This includes the Pan-PRD or 9+2 Region of China  and all of South East Asia, Sri Lanka,  the Philippines, Australia, New Zealand, and Oceania.  The headquarters for this company will be in Jinghong China. Jinghong was again chosen for its relative location, its being at the headwaters of the Mekong River as well as being a part of the Pearl River Region of China. It was also chosen because of it's inhabitants being more closely related to inhabitants of other countries while still being a part of China. Jinghong also has transportation links with the entire region.

Pingyao Realm Ltd.  This includes the remaining Chinese provinces north of and not included in the Jinghong Realm. and the nations of North Korea and South Korea.  The headquarters for this company shall be in Pingyao, Shanxi, China.   Pingyao is an historical financial center and was the birthplace of modern banking in China.

Darkhan Realm Ltd. This region will include Pakistan, Afghanistan, Iran, Azerbaijan  Russia, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan,  Kyrgyzstan, Bangladesh,  Nepal, Bhutan, Mongolia and Japan. The headquarters for this company will be in Darkhan Mongolia. Darkhan was chosen first for being in Mongolia, the most central neutral country of the region, its relative size and its international history.  

Stryi Realm Ltd., This realm will be Europe minus Russia. This region will also include  Georgia, Armenia,  and Greenland. The headquarters for this company shall be in Stryi Ukraine. Stryi was chosen for the central location to all of Europe, its recent history of multi country ownership and its history of being one of the early free trade cities centuries ago. Also I felt that a western Ukrainian city would be best able to unify the entire region.

Itarsi Realm Ltd. India. This headquarters will be in Itarsi India. Itarsi was chosen for its central location, relative size and for its well known central railroad junction as a symbol of the unification of the region.

Berbera Realm Ltd. All Africa and the Arabian Peninsula. It will also include the Maldives and all non Indian islands in the West Indian Ocean.  It will include Turkey  Armenia and  Georgia but not Azerbaijan or the countries included in North Asia. The headquarters for this company will be in Berbera, Somalialand.  This city, on the Gulf of Aden between Africa and the Middle East has been a trading center for centuries.  That it is now in an unrecognized area of the world speaks to the nature of how much of the developing and frontier worlds are virtually invisible to many.

Quevedo Realm Ltd. This shall include all of the Americas. The headquarters for this company shall be in Quevedo Ecuador. Quevedo was chosen because of the city's location, size and the unusually large international population of the city. Also the agricultural products of the immediate region are sold worldwide. Thus Quevedo has a world view particular to its relatively small size.


COMMON FACTORS:

Each of the six holding companies shall have a similar structure. They shall be holding companies for owning, but not limited to, the following areas of business.

A. Commercial Real Estate. Direct ownership or partnership of commercial real estate or ownership in public traded real estate companies. There is to be no debt on any commercial real estate holdings. I envision this to originally be bank branches of third world banks, commercial buildings, warehouses and power plants. Initially all commercial real estate to be acquired will be existing structures or securities. Only from cash raised from public offerings and profits will new structures be built or real estate loans be acquired. I also envision that instead of privatization of many municipal services such as water and sewage that the municipalities would sell just the infrastructures for shares and lease back and run the operations themselves.

B. Residential Real Estate. This to include direct residential real estate or residential real estate investment trust shares.

C. Mineral, water, right of way and timber leases. These are to be leased to operating companies. They are never to be operated directly. This again would include royalty trusts and the trading by governments of portions or all of certain rights for shares.

D. Government securities. This is from any government entity in the entire world: national, state or provincial, local, etc. This too would originally come from third world banks, spreading up the development chain as the holding companies grow in size and liquidity. I could also envision an initial infusion of American and European treasuries being given by such countries as China, Japan, India, Taiwan, Norway, Russia, the EU, G8 and countries of the Middle East in exchange for shares to facilitate the creation of alternatives to global currencies and to spur worldwide development.

F. Currencies: With each initial IPO and each subsequent secondary offering of common shares or equivalent GDR's, each regional holding company shall receive currencies in exchange for those shares. Upon the receiving of such currencies each regional company shall use such currencies as described below. These currencies are to be used for taxes, dividends, acquiring new assets, and as a hedge against the long term currency fluctuations of all countries.

G. Investments in private companies in development or for re-organization purposes.



CREATION AND ONGOING GROWTH OF THE SIX HOLDING COMPANIES

MANAGEMENT:

Each of the six companies would have a board of 19 members; 1 president and 18 outside directors.


OPERATIONS:
It is this concept to create six world class corporations based in third world countries with a third world bias for development. It is however the proposed goal of the six companies to be diversified as greatly as possible and to have financial interests in every country in the world.

Thus spreading the risk and rewards to as wide a shareholder’s base as possible that the larger the six companies spread the more value created for shareholders. Shareholders in rural third world countries could, over time, develop capital formation that is both easily convertible but also less open to wide swings in currency valuations. This would also allow for a semblance of diversifying outside of ones own country without in actuality having as much so called capital flight.

It is also my proposition that for an initial extended period of time there would be no need to stress repatriating earnings from any developing country. It is important to again stress that it is the concept of the six companies as supra regional companies and to try and negate the idea of a home country and to foster instead an idea of regionalism combined with a total world outlook. The profits earned within the country/region by all six holding companies would remain to be reinvested and pay dividends in that country/region.



Gary L. Tucker
gltoffic@aim.com