Help Resource for the Better Investing Community Database

HELP USING THE BETTER INVESTING COMMUNITY DATABASE

The following sections should contain all the information you require to maximise your effectiveness and enjoyment whilst using the Better Investing Community Database (hereafter referred to as the 'BICD').

Remember, if unsure, just take your best guess. You can always go back and update the record later.

This help file contains;

PART 1 - An Overview to Using The BICD

PART 2 - How To Fill In BICD Fields: A Glossary of Terms

PART 3 - Frequently Asked Questions

PART 4 - Online Tutorial

PART 1 - AN OVERVIEW TO USING THE BICD

Index

Key Features
Searching For Recently Added Records
Searching For Recently Updated Records
How Best To Use The BICD
How to enter and interpret investment returns

Key Features

The BICD has the following Key Features;

1. The Summary Investment Profiles - SIP (for Trial Members)
2. The ability to purchase a Detailed Investment Report of the current SIP
3. Full Membership which allows unlimited access to the BICD
4. The List View (a list of all investments in the BICD)
5. The Detailed View - Detailed Investment Profile (viewed via 4 tabs)
6. The Add / Edit Investments screen (the data entry screens to edit & add records)
7. The Vote / Comment screens (where to add comments that don't suit the fields)
8. The History View (a chronology of all past changes made by all members)

Searching For Recently Added Records

To make things easy, records are displayed in the order in which they are submitted.

To view just those records added since your last visit, go to the last record listed and Browse backwards until you reach those records you have already viewed.

Searching For Recently Updated Records

Currently there is no ability to review only those records that have been edited since your last visit. This feature will be added mid 2005 or when we receive sufficient interest.

How Best To Use The BICD

1. Post investments you are interested in getting community feedback on.
2. Review investments others have profited from.
3. Submit feedback so everybody can be wiser from your discoveries.
4. Regularly review other Member's Feedback (in case of new developments).

How to enter and interpret investment returns

Performance information should be entered (and interpreted) in conjunction with both the Performance Data Reported and the Return on Investment field.

Example A:

3 Year value field = 30
Performance Data Reported = 31/12/2003
Return on Investment = Actual

This indicates that the investment returned 30% per annum (as an average) for each of the three years 2001, 2002, 2003.

Example B:

3 Year value field = 30
Performance Data Reported = 31/12/2003
Return on Investment = Cumulative

This indicates that the investment returned an accumulated (cumulative) return of 30% at the end of three years. This equates to a individual yearly return significantly lower than 30%!

Naturally the ROI (return) is unable to be determined beyond the date contained in the Performance Data Reported field.

When entering data in any of the performance fields, always seek to ...

Update all fields relating to investment returns (as these are all relative to the Performance Data Reported field)
Update the Performance Data Reported field with the date of when the Performance figures were calculated / reported.
Update the Return on Investment field to reflect whether the return figures are Actual returns calculated as an average and valid for each individual year, or a cumulative return shown as the total return at the end of the period.

Yearly Returns field examples ...

1 Year: A value of 30 (ie 30%) in the 1 Year return field indicates that was the Return on Investment (ROI) for the 1 year ended as at the date listed in the Performance Data Reported field.

3 Years: A value of 32% in the 3 Year return field may indicate (a) the investment achieved a return equivalent to 32% in each of the three individual years, or may indicate that the return was compounding and the cumulative return was 32% at the end of three years. You must refer to the Return on Investment field

PART 2 - FILLING IN BICD FIELDS: A Glossary Of Terms

Overview on How To Fill In Forms

3 Months / 6 Months
1 Year / 3 Years / 5 Years / 10 Years / 15 Years / 20 Years
Accepted Currencies
Annual Fee
Assets as at Date
Auditors
Contact name
Credibility of Information Source
Data Source
Detailed Description
Domiciled
Email Address
Entry Fee
Exit Conditions
Fax Number
Inception Date
Independent Audits & Appraisals
Internet Address
Investment Information Source
Investment Name
Investment Status
Investment Type
Lawyers
Level of Investment Regulation
Level of success experienced
Mailing Address
Managed By
Managed Funds
Member Feedback
Member Rating
Member Risk Rating
Minimum Investment
Perception of Investment
Performance Category
Performance Data Reported
Performance Fee
Phone Number
Preferred Broker
Quality of material available
Quantity of known investors
Redemption Fee
Return on Investment
Security of Capital
Since Inception
Summary Description
Switching Fee
YTD

GLOSSARY OF TERMS

3 Months / 6 Months

Preferred Entry Format:

> Numerical with 1 decimal place (eg 28.2 )
> The numerical value should be entered as if it were a percentage return p.a.
> Do NOT enter the % symbol

Explanation:  Enter the percentage rate of return, or Return on Investment (ROI), achieved over a period of 3 months or 6 months.

For more information see How to enter and interpret investment returns

1 Year / 3 Years / 5 Years / 10 Years / 15 Years / 20 Years

Preferred Entry Format:

> Numerical with 1 decimal place (eg 28.2 )
> The numerical value should be entered as if it were a percentage return p.a.
> Do NOT enter the % symbol

Explanation:  Enter the rate of return, or Return on Investment (ROI) achieved over the period listed.

For more information see How to enter and interpret investment returns

Accepted Currencies

List the currencies the investment accepts.

Annual Fee

Enter any annual fees the investment charges.

Assets as at Date

Enter the date at which the Assets Under Management were reported / calculated.

Auditors

List here the Auditors the investment uses and their contact details.

Contact name

This is the name of the person who can assist investors gain access to this investment.

Credibility of Information Source

This field indicated whether the person (source) who provided the information on this investment has a biased or unbiased position.

If the source may stand to benefit (either financially or otherwise), then the information about the investment may be more positive than is the reality.

Data Source

This relates specifically to the where the Performance Data was obtained.

Detailed Description

This is a description of the investment similar to the outline an investment advisory service such as Standard & Poors provides.

Be sure to provide as much information as possible, ideally covering the risks associated with this investment plus how the investment actually produces the profits the pay the investors their returns.

You may copy / paste information into this field.

Domiciled

Explanation: Enter the country in which the investment operates or has been set up to operate from (in the event the legal entity operates in a separate country).

Email Address

Format:  name@company.com

Explanation:   This is the email address used to contact the organisation or person making the investment available.

Entry Fee

Preferred Entry Format:  Currency, Amount   (eg USD $100)

Explanation:  This is the fee charged by the investment in order to invest.

Exit Conditions

Explanation:  Describe here any financial or contractual conditions that may apply when exiting this investment.

Fax Number

This is the contact fax number for the organisation (or person) making the investment available.

Funds under Mgmt

Preferred Entry Format: Currency, Amount   (eg. USD $100,000,000)

Explanation: Enter the amount of funds the investment has invested in this particular investment (not all investments).

Inception - Date

Preferred Entry Format: June 2001 (else 22/10/2004)

Explanation: This is that date the investment started operating.

Independent Audits & Appraisals

Explanation:  The purpose of this field is to gauge the strength of the credibility of the investment due to having its results audited independently of itself. Ideal is when this is done by a registered and reputable auditor.

Internet Address

Sample Entry Format: www.domainname.com or http://www.domainname.com

Explanation: This is the website where information can be found about the investment.

Investment Information Source

Explanation: Enter where you personally initially learned about the investment.

Investment Name

Preferred Entry Format: The Orbis Asian Fund   (for example)

Explanation: This is the actual name of the investment offering (not the name of the organisation offering the investment).

Example:
If a financial institution like Lloyds Bank operated an investment fund called The Orbis Asian Fund, then enter in this field "The Orbis Asian Fund" (not Lloyds Bank).

Investment Status

List the current status of the investment, or the status when last you were aware of the status.

Investment Type

Select the investment type the investment most closely resembles.

If there is no item that accurately describes the type of investment, select either Other or Unknown.

Please send us an email to updates@investor-net.com with the items you would like added.

Lawyers

Preferred Entry Format: Company Name, City, Country

Explanation: List the company name of the Lawyers that the investment uses. This is often useful for due diligence purposes.

Lawyer Phone

Preferred Entry Format: Telephone Country Code, Area Code, Phone Number.

Explanation: In the Lawyer Phone field you may enter more than just a phone number (eg. text instructions, who to call, email addresses, etc).

Level of Regulation on (the) Investment

Explanation: "...strongly regulated with strong investor recourse" means there is a governing body in the country in which the investment operates, is marketed, or is accessed, that monitors the legal and ethical operation of the investment, and that an investor can obtain some degree of worthwhile enforcement or compensation if an investment operates fraudulently or outside of the legal and ethical operation guidelines enforced upon operators of investments in that country. Note: Strong regulation does not mean losses are not possible as it is not against the law for an investment to lose its investor's money, providing it occurs within appropriate operating guidelines.

"...weakly regulated with some investor recourse" means the country provides some degree of control over investment operators, however may not be 100% reliable to combat corruption or poor legal recourse for foreign (or local) investors.

"...is not regulated" means there is no body that effectively ensures investors receive some protection from unscrupulous operators.

Examples: Most financially sophisticated countries such as USA, Japan, Australian, the United Kingdom, Switzerland, etc all are renown for having stringent guidelines controlling the operation of investment providers and operators.

Developing nations and certain tax havens may have some level of corporate governance and investor recourse, but not enough to provide as much comfort as a "strongly regulated" jurisdiction.

Poorer nations, or those with rampant corruption and lack of good government control, may give investors little or no support in recovering money.

Level of success experienced

This should ideally be based on the due diligence performed by the person entering the record (yourself) or another 3rd party person independent to the investment.

The more actual investors that can be contacted the better. Be sure to try to substantiate the profits / losses wherever possible with supporting documentation (everyone likes exaggerating their winnings and losers don't like admitting losses).

Mailing Address

Enter either the mailing address or the street address of the investment itself

Do NOT list the address of the Broker, main contact, etc.

Managed By

Preferred Entry Format: Company Name, Country (or person's name)

Explanation: This is the organisation (or person) that manages the investment outlined.

Managed Funds

The amount of funds the investment currently has invested in the specific investment outlined.

Do not list the total of all funds the investment has invested.

Member Feedback

Member Feedback is displayed on the Due Diligence tab and is entered in the Vote / Comment screen.

Member Rating

Members can rate an investment in the Vote / Comment screen.

Use the Comments field to;

- copy & paste 3rd party information relating to the investment
- add general comments & personal views
- open a discussion thread relating to the investment

Member Risk Rating

This rating is displayed as a result of the selection made in the Security of Capital field.

Minimum Investment

Preferred Entry Format: Currency, Amount (eg USD $10,000)

Explanation: Enter the minimum investment amount this investment will accept.

Perception of Investment

This is the manner in which the investment was reported by a 3rd party (not the investment itself).

This field may assist evaluating the enthusiasm and conclusions a 3rd party has drawn about an investment. Important to view this in conjunction with Credibility of Information.

Performance Category

Performance Category should be selected based upon past Actual or Cumulative Returns obtained by Better Investing Members, or reported as having been achieved by the investment itself or an independent 3rd party body.

Any supporting information can be entered in the Vote / Comment section.

Important: It is a condition of listing investments that the investment must be believed to be currently returning in excess of 20% to investors, or have done so within the last 5 years and have the potential to do so again in the not-too-distant future.

Performance Data Reported

Preferred Entry Format: dd/mm/yyyy    (Note: Month YYYY is also accepted)

Explanation: Enter the date at which the performance data was reported.

If you are entering performance data from a Investment Prospectus or brochure, enter the date the Prospectus was released as this is the date at which the performance figures were accurate.

Important: Always seek to update the Performance Data Reported, Return on Investment and Performance data fields in unison as these relate to one another.

For more information see How to enter and interpret investment returns

Performance Fee

Explanation: If the investment charges or retains a fee based on the success of their performance, enter it here.

Examples:

$100 per successful transaction
10% of net profits, calculated & charged quarterly.
50% of all profits made after 20% per annum.

Phone Number

Preferred Entry Format: Country Code, Area Code, Phone No (+1 605 8888-8888)

Explanation: This Phone Number relates to the Contact Details for the primary person making this investment available. They may or may not be the operator of the investment.

Preferred Broker

List here the Brokers that the investment advises they are most happy to deal with. In the case of international funds, this can often be valuable in order to gain access via preferred brokers in the event a discount broker cannot assist.

If you do not have a preferred broker, list any broker the investment will deal through.

List the contact details of the broker

Broker Phone
In the Broker Phone field you may enter more than just a phone number (eg. text instructions, who to call, email addresses, etc).

Quality of material available

This field assists assess the quality and professionalism of the investment.

Quantity of known investors

This field helps Members know whether the Member lodging the record only read or heard about the investment, or whether they have investigated the experiences of other active investors.

Redemption Fee

Preferred Entry Format: Currency, then Text

Explanation: The charges applicable in order to close down your stake in an investment (to redeem your investment)

Example: USD $400, OR 0.5% of funds invested.

Return on Investment

Select Actual if the return was the actual net return for the period(s) indicated.

Select Projected if the investment return is projected to return that amount but has not yet been proven to have done so.

Security of Capital

Explanation: Designed to grade investments based on risk. The selection made here will display 1, 2 or 3 stars in the Member Risk Rating panel.

Investments that have ALL of the capital either guaranteed, protected or secured, are labelled as LOW risk.

Investments that have SOME of the capital either guaranteed, protected or secured, are labelled as MEDIUM risk.

Investments that have NONE of the capital either guaranteed, protected or secured, are labelled as HIGH risk.

Within each of these three category, you are invited to indicate whether you feel the investment is low, medium or high risk (this does not effect the star rating).

Since Inception

Preferred Entry Format:

> Numerical with 1 decimal place (eg 28.2 )
> The numerical value should be entered as if it were a percentage return p.a.
> Do NOT enter the % symbol

Explanation:  This is the rate of return the investment has returned to investors since it was commenced (see Inception - Date).

For more information see How to enter and interpret investment returns

Summary Description

Enter a short generic description (up to 50 characters) describing the investment.

Do NOT enter the name of the investment as this is contained .

Example: Long-term capital growth fund trading French exch.

Switching Fee

Explanation:  Enter any fees incurred when switching investments, configurations, etc.

YTD

YTD means Year To Date. Enter the return on investment (ROI) for the investment up until the current date.

For more information see How to enter and interpret investment returns

PART 3 - FREQUENTLY ASKED QUESTIONS

FAQ #1

Submit your own question to have it added here.

FAX #2

Submit your own question to have it added here.

PART 4 - ONLINE TUTORIAL

Step 1: Sign Up & Login ....

Obtain either a Trial Membership or a Full Membership.

With a Trial Membership, you will be able to Browse the Summary Profiles. These contain a subset of information contained in the Detailed Profiles, and do not allow adding or editing records. Trial Members are also unable to view all submissions made by Full Members.

Step 2: Browse Investment Profiles

This can be done by either ...

a) selecting investments from the List view, or ...

b) by viewing the details of a specific investment and scrolling through all other investment profiles using the Back and Next buttons.

List View

Browse View

Step 3: View the Summary, Contact, Performance & Due Diligence tabs

By clicking each of the Summary, Contact, Performance & Due Diligence tabs, different information is displayed.

Note also the Add and Edit buttons.

Step 4: Edit / Update the current Investment record

When Editing a record, the existing data is retained and displayed, allowing you to update it. (When Adding a record all fields are blank).

Step 5: Add an Investment

Step 6: Rate & comment on the current Investment record (Vote / Comment)

Step 7: View other members ratings & comments (Vote / Comment)

Step 8: View changes made to this investment profile (Change History)