ALTERNATIVE INVESTMENTS

Alternative investments "products other than traditional stocks, bonds, and mutual funds" offer you the creativity and flexibility to build a portfolio that is truly balanced.

InterOcean provides access to the following alternative investment products:

• Single strategy hedge funds
• Fund-of-fund hedge funds
• Real estate partnerships
• Private equity partnership
• Venture capital partnerships
• Managed futures partnerships

Our Alternative Investment Group, follows a rigorous due diligence process in evaluating alternative products before we provide access to them to our investors.

At InterOcean we believe for the right investor, a disciplined approach to investing must include an allocation to either private equity or alternative investments. If you would be interested in receiving information about alternative investment and private equity product please complete the questionnaire accessible through this link. Private equity and alternative investments are generally available through limited partnership offerings where the investor must have investment assets of at least $5,000,000. As such, before we may provide you information on specific funds we have a completed questionnaire. Upon receipt of the signed questionnaire we will process your request for information.

Alternative investments "products other than traditional stocks, bonds, and mutual funds" offer you the creativity and flexibility to build a portfolio that is truly balanced.

To see the effect of adding non-correlated assets to a traditional stock portfolio please click here.

Alternative investment products, including hedge funds and managed futures, (i) involve a high degree of risk, (ii) often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, (iii) can be highly illiquid, (iv) are not required to provide periodic pricing or valuation information to investors, (v) may involve complex tax structures and delays in distributing important tax information, (vi) are not subject to the same regulatory requirements as mutual funds, (vii) often charge high fees which may offset any trading profits, and (viii) in many cases, the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail commodity trading, which involves substantial risk of loss.