What’s Next for Latin American Family Offices

StoneX Group Inc. Member FINRA/NFA/SIPC Prime Brokerage Division

Michael L. DeJarnette Managing Director, Co-Head of Prime Brokerage DISCLAIMER

The StoneX Group Inc. (Formerly INTL FCStone Inc.) provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (SXM), a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (CFTC) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (SFI) is a member of FINRA/ NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (SEC) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defi ned by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI. StoneX Financial Ltd is registered in England and Wales, Company No. 5616586, authorized and regulated by the Financial Conduct Authority.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

INTL Fillmore Advisors LLC is a member of FINRA, SIPC and NFA and registered with the United States SEC and CFTC. The information contained herein is not intended to provide a sufficient basis on which to make an investment decision and should not be regarded as an offer to sell or a solicitation of an offer to buy any security or financial product. © 2020 StoneX Group Inc. All Rights Reserved.

2 Our History in the Region

• StoneX has been doing business in Latam for over a decade. With physical presence in Argentina and Brasil through our local broker dealers, and institutional coverage for the region from our Miami office, StoneX provides world class service to Latin American investors and financial participants across a range of asset classes. • In Peru, the firm has been doing business for over 8 years and works with a wide range of financial institutions from Pension Funds and Mutual Funds, to banks, broker dealers and family offices. Services range from equity and fixed income trading, futures and options clearing and execution, as well as correspondent clearing and Prime Brokerage services. Current State of Global Family Offices

• More family offices have a self-directed trading component • Greater interest in Real Estate as an asset class • Greater interest in Private Equity • Sustainable investments gaining popularity • Greater exposure to hedged alternative investments Latin America has been one of the most dynamic regions of the world in the last two decades, experiencing strong growth in GDP and wealth

• Family businesses are the backbone of Latin American economies. More than 85% of companies in Latin America are family-owned. They account for 60% of the region’s GDP and employ more than 70% of its workforce.

• Of the 500 largest family owned businesses in the world, 36 are in LatAM and generate more than US$440b in revenue. • Top 3 countries for growth have been Brazil, Mexico and Chile

• Top 3 industry sectors are Consumer Products, Retail and Wholesale and Asset Management

• Over the last two decades, many family offices in LatAm have evolved into Family Enterprises whose holdings have grown beyond the core family business and now include liquid investment capital (often managed by a family office), family capital (the talent and human capital within the family), and philanthropic capital. The Quest for Yield

• Emerging Market Family Offices have traditionally preferred balanced portfolios • Decreases in fixed income yields are a driving force for diversification • Growth Equities and Dividend Strategies • Direct Investment in real estate continues to gain traction • Yield enhancement strategies through options writing and securities lending Private Equity and Venture Capital Investments

• Average Latin American Family Office has 10% of assets in venture investments • Over 90% of Latin American Family Offices co-invest along with other families and venture funds • North America and Europe are favorite regions for private investments • https://labsnews.com/en/articles/business/family-offices-are-looking-more- like-vc-funds-and-this-is-good-news-for-early-stage-latin-american-startups/ Self Directed vs. Private Wealth Management

• Over the last decade direct investing has grown significantly in the Family Office space • Families are seeking greater control of investments • Single Family Offices are far more likely to make direct investments • https://www.forbes.com/sites/francoisbotha/2020/08/20/6-family-office- trends-in-direct-and-venture-capital-investment/#3dbf54134d68 • Traditional mutual fund investing remains more popular for Multi-Family Office Listed Securities

• Synthetic Leverage • Best Execution • Hedging of Long Term Positions • Access to global exchanges and OTC markets • Access to IPO and secondary markets Alternative Strategies

• Hedge Fund investment trended lower prior to Covid, but has seen a rebound • Market Neutral and Uncorrelated Strategies • Physical Precious Metals • Emerging Market Managers are investing more in enterprises in their home countries Institutional Experience

• Experience in global portfolio management • Experience in private and public markets worldwide • Experience in sourcing liquidity in both public and private markets • Global Reach Institutional Grade Custody

• Custody of a broad range of asset classes • Ability to custody short positions and derivatives • High quality portfolio reporting and analytics • Enhanced leverage options • Coverage that is an extension of internal back office/ middle office teams. • Securities Lending. Both incoming and outgoing. Global Tools and Market Access

• Robust banking and brokerage relationships • Access to global markets through Swaps contracts • Cross-asset capabilities, backed by strong global expertise • Strong resources beyond trade execution that can act as an extension of the investment team • Enhanced ability to invest globally and across asset classes 15 16 17 18 19 About StoneX Group Inc.

StoneX Group Inc. (formerly INTL FCStone Inc.), through its subsidiaries, connects clients with the global markets across asset classes – providing execution, post-trade settlement, clearing and custody services through one trusted partner. Clients use its institutional-grade financial services network to pursue trading opportunities, make investments, manage their market risk, and improve their business performance. Headquartered in New York City, StoneX Group Inc. (NASDAQ: SNEX) and its 2,700 employees serve more than 30,000 commercial and institutional clients, and 295,000 active retail accounts, from 40+ offices spread across five continents. THANK YOU