Alternative Investment Fund (AIF)

What is the purpose of the Alternative Investment Fund (AIF)?

ONE Funds AG (previously BENDURA FUND MANAGEMENT ALPHA AG) is setting up an alternative investment fund for Storylines. It’s a private equity fund that holds one asset, the vessel, at the end by different Lease Hold Funds via 12-year, 24-year, and Life-of-Vessel leases. You are investing in an investment fund that holds lease rights for your residence which you use on the ship. The fund is just a vehicle to enable us to work with a diverse group of clients in a global marketplace who live in different countries and tax jurisdictions.

What is the overall financial viability, stability, and reputation of the fund management company?

ONE Funds AG is one of the most established fund management groups in Vaduz, Liechtenstein. It is licensed by AIFM (2014), UCITS (2013) and IUA (2007). It has sustained growth for many years in all market environments. It has reputable auditors and supervisors: BDO AG Switzerland and the Financial Market Authority (FMA) Liechtenstein. Both guarantee the highest international standards. It is located in a favorable jurisdiction as Liechtenstein is triple AAA rated country due to being politically, socially and economically stable.

What are the considerations for American investors?

We involved a US-based securities law firm. In order to offer the fund in the US, these funds have to be exempted from a public offering in the US.

We will have different fund structures administered and managed by ONE Funds AG. Investors who invest into an investment fund need to be qualified due to US Securities Laws either as ‘Sophisticated Investors’, ‘Accredited Investors’ or ‘Qualified Purchasers’ depending on their annual income or wealth. Thus we have to qualify every investor to make sure that smaller investors are legally entitled to invest into the investment fund. For example, due to specific exemption by the US Securities Act of 1933 in conjunction with the US Investment Company Act of 1940, only a limited number of ‘sophisticated investors’ (in addition to ‘accredited investors’ or ‘qualified purchasers’) are allowed to invest into a fund which is exempted from a public offering. All of our clients will fill out specific investors´ questionnaires when they subscribe to the lease-hold fund as a means to hold the rights to use their apartments/cabins/residences. By US Securities Laws regulations;

people who own assets of more than USD $5M excluding property are ‘Qualified Purchasers’

those who have an annual income of US$ 200.000 (single) US$ 300.000 (couple) or a wealth excluding property of US$ 1.000.000 are considered ‘Accredited Investors’

and all those who have assets below these thresholds are ‘Sophisticated Investors’

How is the investment registered and regulated?

It is regulated in Vaduz, Liechtenstein by the Financial Market Authority (FMA) under the Alternative Investment Fund Management Directive (AIFMD )

How does the alternative investment fund work?

You give a commitment (like in private equity) regarding the purchase into the fund which holds the individual lease right for the apartment.
A limited partnership holds the lease rights. The fund contains the proceeds from the installments you pay.
You sign all the documents.
The service provider, ONE Funds AG, does KYC and AML to accept you.
After you have been accepted a capital call of 20% after signing is issued, so that you can make a wire transfer of 20% to the bank account of the fund.
ONE Funds AG accumulates all the proceeds in the fund. These proceeds will accumulate/grow as we onboard more clients.
The accrued money is used as collateral to get a credit line from a third party for funding to build the vessel.
All the payments from the capital calls are accumulated in the investment fund’s bank account then transferred to the limited partnership which holds the funds in an escrow account. Any funds that are utilized are backed by a refund guarantee.
The limited partnership grants you the use of your apartment through the leaseholds legally embedded (e.g. in the 24 year fund you have invested in.)
The accumulated funds will be used to pay back the third party lender for building the ship.

What is the underlying investment mix of the alternative investment fund? How is the money being invested?

This is entirely for the construction of the ship.
Approximately up to 1.5% is kept aside for the fees for the fund, but all the remaining proceeds are transferred to the bank account of the limited partnership in Vaduz.

How are the investors/investments secured?

The funds are secure because any transfer from the bank account of a limited partnership can only be done by the approval of a fund manager and approval of Storylines and only for the purpose of building the ship.
Storylines will have state-backed guarantees so any investment regardless of where it sits is always secure. This ensures that the ship will be built regardless of unforeseen circumstances.
It is a regulated and audited fund which must follow the rules set out in the agreements with its investors/shareholders/residents. The money stays secure by the refund guarantees by the Croatian government until the ship is delivered. This is far more secure than a bank as the EU is not going to fail (whereas banks sometimes do).
The bank account of the limited partnership is also with the same bank the Fund is using.

What is the liquidity of the investment?

The liquidity of the investment after the ship is built is in the secondary market; there is no day-to-day market price. You can sell your apartment or your fund shares via ONE Funds AG. The Fund Manager and Storylines will assist you in finding a potential buyer on the secondary market.

When is the ship going to start being constructed?

We have a shipbuilding contract signed.
All of the pre-construction work is happening at the shipyard such as the finalization of the plans and construction drawings.
Once the shipbuilding contract comes into effect, we’ll have some key dates that we can share.

Is there a redemption window or could we sell? What would we need to do to get out if we need to?

If you need to get out prior to delivery, that has to be discussed with Storylines to find a replacement buyer. In the unfortunate event someone needs to back out, we’ll put that unit back out to the market (fees apply).

What is the projected investment return on the investment fund?

When the money is completely transferred to the limited partnership it will be kept as collateral for the third party funding. There will be no additional return in the fund itself. It’s not like a traditional fund where you put money in and expect a return on your investment. The return is the right to occupy (and re-sell) your unit on the ship and to utilize it over the time you have bought the leasehold for (via the investment fund in which you are subscribed).

When will we get the paperwork on the investment fund?

It has to be approved first by the FMA.

Will there be a minimum income requirement to make sure everyone will be able to pay their annual fees?

The fund regulators have a vetting process which exists to protect consumers by law. We work within those frameworks, however, there are exceptions we can make to work with individuals to ensure they can live this lifestyle. We have several contingencies and safeguards in place to make sure the other residents don’t suffer from potential shortcomings.

Shared Purchase Options

Why is Storylines Offering Fractional Residences?

Storylines consistently receives interest from people who want to live aboard MV Narrative part of the year. It has always been our goal to make this lifestyle accessible to a wide variety of like-minded global citizens of the world.

We believe that part time residents will contribute to the community as much as residents who hold 100% share of their unit.
As long term residents, they will be returning to the ship every year which contributes to a cohesive and neighborly environment.
We will still have a rental program and there will now be a more limited supply of residences available for rent which means less competition for those who plan to rent their unit out.
We are only releasing a limited number of units for shared purchase.
We believe the residences with 100% shares will have even better resale value due to being more limited in number.

I already have a residence reserved. Can I switch it to a fractional unit?

Yes, if you plan to find your own people to share it with. Otherwise, if you would like to choose one of the shared RU2 or RU4 units currently reserved, Storylines identifies the residents and you would be switching to the new published pricing.

How many people are sharing each residential unit?

They are available in 25% shares. Most units will have two to four people (25%-50% shares).

Are there any limitations which other units don’t have?

Yes. You cannot customize the unit with options and upgrades and you cannot have pets.

How flexible is it? What if I can’t use it this year or if I want to travel a different season?

Your vacation home is part of a block of 10 residences of the same unit type. That means 40 seasons and up to 40 residents who are all in the same ‘club’ together to swap seasons. For example, swap Spring for Winter one year or skip your season one year in order to travel 6 months the following year at the same price.

I am a current resident. Will fractional units make the ship more transient?

No, quite the opposite. This will result in fewer residences being rented out. These are long-term residents who return to the community year after year. Renters may come on board one time then you never see them again.

I am a 100% resident owner planning to rent my unit when I’m not on board. How will the shared units affect the rental program?

We believe this will result in having fewer units in the rental pool. In your case, this would be a benefit due to less competition.

What is the fractional lease term?

You will have the ‘right to use’ your residential unit for three months per year for the lifetime of the vessel.

I only see RU2 and RU4 options available. What if I want a 25% share of a different residential unit type?

We are currently in a ‘soft-launch’ phase to test consumer demand. If there is enough demand for other unit types, we may consider expanding the program. We would only release unit types of which we have a block of 10 available.

How does this work for families with children?

Your children can continue their education on board through our worldschooling education program which includes small group learning pods, accredited remote learning providers, and field studies around the world. While your child’s peers are learning about ancient Rome from a textbook, your family is on a guided tour of the Colosseum with a historian.

How do I know the people I am sharing my unit with will take care of our home?

Every potential resident undergoes a strict vetting process. We ensure every member of the community shares similar values to our guiding principles. If, however, in the rare case there is any damage, they will be held liable and cover the cost of repairs.

Can I store my personal belongings when the other residents are using the unit?

Everyone has access to limited space outside the unit to store a few personal items. Keep in mind you have access to sporting equipment such as snorkeling, scuba, paddle boards, golf equipment, bikes and more. It is a turn-key residence so you won’t need to bring much.

What if the other co-residents agree to allow pets in the unit?

We know how hard it is to leave your furry companion behind. Pets are not allowed in our shared units. We have reliable WiFi to allow you to video call daily. Kennels can be hard on pets so you might consider in-home boarding at someone else’s home through Rover.com, in-home pet/home sitting at your own home, or leaving your pet with a friend or family member.

Will the full-time community on board accept us as real residents?

We are carefully cultivating a global community of people who come from all walks of life yet share a common thirst for adventure and knowledge about the world and its people. You will be welcomed with open arms as part of this unique community and we look forward to seeing you year after year.

Would the same unit be assigned each year?

Yes, it’s your residence. You would return to your unit year after year unless you opt to swap with another resident in a different unit in your ‘club’ (a block of 10 residences all of the same unit type).

Can I change unit type?

Are there monthly fees? Will I get the same benefits that other residents get?

Yes, please see the brochure for the fees. You get all the same inclusions as other residents.

What happens with my Circle Membership if I switch to a shared unit? How is the membership discount applied if I switch?

You can still be a Circle member. The discounts are applied in the same way.

Are guests allowed in the shared units? What are the fees for guests?

Yes. Guest fees are the same for all units. Guest fees are published in the FAQ.

Purchase Agreements

Will Storylines provide a financial statement to accompany the Agreements?

Storylines financial viability is separate to the risk of a residence shareholder due to the fact that their investment is held safe in a regulated fund. This is a safeguard for both the residents and the company. Storylines will report vessel operational costs quarterly which will include key indicators such as fuel prices, capital requirements and risk assessments. The company will also deliver an in-depth annual report for all residents of the ship.

What is included in the unit maintenance (ie a toilet leaks, a chair breaks…)

Ongoing maintenance related to ship operations will be taken care of by Storylines (plumbing, wiring, etc). Neglect, accidents and damage incurred by occupants is the financial responsibility of the primary resident. Storylines is not responsible for maintaining nor upgrading furnishings.

What is included in annual fees for general ship maintenance?

The annual fee includes not only maintenance of the ship itself which requires constant upkeep, but also consumables utilized to keep the ship running and costs associated with operation of the ship such as port dues, surveys, certification, crew salaries, waste disposal, etc.

Are there any ship fixtures or equipment that will be leased from suppliers and therefore incur ongoing operating costs, as opposed to being included in the initial capital cost?

There may be a minimal number of lease-backs, but only on consumables which need to be replaced anyway. Rather than having a huge upfront expense every 5-7 years with a new multi-million dollar piece of equipment, they can be leased from certain suppliers at a 0% interest rate. Consumable things that have wear and tear and have an end date.

Please specify what expenses will be covered by the ship’s insurance.

Storylines will cover all Marine Risk insurances such as hull/machinery risks, Third Party indemnity risks usually referred to as PandI ( Protection and Indemnity ) and a blanket cover for coverage of legal representation of the company. Residents are required to cover their own personal risk, medical risk and loss of their own property brought on board of the vessel.

Who determines the operating budget for the ship and how are the annual assessments determined?

We use industry benchmarks to determine what the costs should be and we have confirmed those numbers with multiple professionals within the industry (internal and external to Storylines). The operating expenses have been ratified by operational cruise finance experts. We have a very detailed budget by expense type. This will be fully reported on an annual basis.

Will the provisioning fee cover the final 3 months of our lease/residency, or will it only be applied to whatever the provisioning fee is at that time?

It will be applied to whatever the provisioning fee is at that time.

What is the escrow company that Storylines will be using?

The Storylines approach includes an Alternative Investment Fund (AIF). It became apparent that this was the best solution for the legal structure and would also offer the highest level of security for consumers due to the regulators and auditors involved. With an investment fund, everyone can be part of the same basic legal structure and the same rules apply for everyone regardless of their country of citizenship. Everyone linked to the fund (including the depository bank that controls the operations within the investment fund, the fund manager and the auditors such as DeLoitte, BDO or Price Waterhouse Cooper), must be licensed by and supervised by the Financial Market Authority (FMA). The shares will be numbered and legally linked to a residential unit number. Shares can always be transferred to others so you can buy and sell.

Is this a real estate transaction or a financial investment?

Both. You are investing into the MV Narrative General Fund and in return you receive the right to occupy your residence aboard the ship for a specified term. We have done an extensive amount of research on how to pool people from all over the world and find a legal jurisdiction and legal structure that works for everyone. You are not buying a piece of land in a particular country so there is no basic legal framework to follow. Complying with all the various laws of the many resident countries around the world was also not an option.

Under what jurisdiction is the Agreement?

Liechtenstein, part of the European Economic Area (EEA)

What guarantee do we have that our payments are secured?

The payments are investments inside a regulated and audited alternative investment fund (AIF). The regulatory rules of the fund indicate that Storylines has to act within the contractual agreements it has with the fund’s investors (residents). Investors can view their investment in the fund and can get copies of audit reports, etc. If Storylines were to step outside of our contractual arrangement with the investors (residents), for example not delivering the ship, the investors can activate the related clause and withdraw their funds. Storylines will have state backed guarantees so any investment regardless of where it sits is always secure. This ensures that the ship will be built regardless of unforeseen circumstances.

What are the terms for refunding the milestone payments?

The payments are only returned if Storylines does’t fulfill our contractual obligations. If you decide to withdraw from your deposit agreement, we can re-sell your unit (with fees).

Will I need to acquire liability insurance? What about insurance for the contents of my residence?

We partner with an insurance provider so you will have the opportunity to wrap all your insurance needs together: health, personal property, liability, travel, etc. Storylines does not cover your personal effects.

Will the Agreements be delivered electronically or a hard copy mailed to us?

We deliver them electronically via Blockchain Propulsion which provides us with military grade encryption. This method also satisfies the fund regulator’s requirements for KYC, PEP and AML checks. No contracts will be mailed.

Will there be a separate Homeowners Association agreement?

There will be a similar structure of an HOA in place where residents can get involved with the steering committee to shape the community bylaws for the community standards. It will continue to evolve before and after sailing. There will also be sub-committees of special interest groups.

Do residents make their own arrangements for upgrades and renovations to our units? Or are all the units renovated every 10-15 years in dry dock, paid for by our annual fees?

Any upgrades that you want to do are at your own expense. This type of work can only be done at certain points when the ship is in a dry/wet docking period. The plans will need to be approved by Storylines. Residents can do this or they can opt to have Storylines complete the renovations (likely every 12 years) also at the resident’s expense. Annual fees do not cover remodeling a residential units.

Does Storylines maintain the interior furnishings inside the units? What about mattresses, couches, TVs and linens?

Residential developments do not maintain or replace your furniture and linens. The unit will be turn-key when you receive it. It’s your home and it will be up to you to maintain and upgrade it (outside the walls) at your own expense.

Lease values: Can we sell the remaining lease term at market prices? How will the market value of a residence be established at time of sale?

The resale value is market value which is based on supply and demand.

What will be Storylines commission at sale? If a direct sale is arranged, what will be Storylines commission on that price?

A standard real estate type commission will apply to to a resale, a lesser amount will apply should you find a suitable buyer. Storylines will still need to screen these potential residents.

The average person is not familiar with blockchain. Can you please explain it since it will be involved with signing the Agreements?

At its simplest form, a blockchain is a digital collection of information about transactions. This is also called a ledger, which is why this word is often used when describing blockchain technology. When you have many different collections of data, they’re stored together using a system based on blocks of data chained together.

For a variety of reasons we do not use paper documents; everything is digital. We are using encrypted technology to keep sensitive data secure (hosted in data centers in Switzerland). We are working with Blockchain Propulsion to digitalize our documents, KYC/AML onboarding, e-signatures, online identity verification, and end-to-end purchasing of residences in a detailed way that complies with all legal and regulated processes.

With the volume of agreements that Storylines is processing now and well into the future, this is the most streamlined way to handle that amount of documentation. In short, the reason we are using blockchain technology is because it is simple, compliant and digital.

In light of the global pandemic that has impacted world travel and the cruise industry, please provide insights into Storylines operational sustainability.

Storylines is not a cruise line. Cruise lines operate by selling tickets so it’s extremely problematic when they need to cancel cruises.
Our residents pay for the ship’s operation so we are well prepared and plan to continue operating through any pandemic. Our itinerary may be affected but that is the most impact we anticipate to our operations. In a worst case scenario, the ship will relocate to an island nation where we will live as temporary residents and live like locals for however long it takes until we can resume travel. To learn more about our pandemic protocols including health, safety and technology, please click here.

Residential Reselling and Profitability

Should you choose to sell your residence at a later date the Storylines team will provide sales and marketing assistance to maximize the sale price. As residence availability is highly limited, it has been advised by real estate professionals that the market value of residences may increase over time.

What is Storylines commission at sale? Or if a direct sale is arranged, what is Storylines commission on that price?

A standard real estate type commission will apply to to a re-sale, and a lesser amount will apply should you find a suitable buyer. Storylines will still need to screen these potential residents.

Investing in a Residence as an Investment Property

Purchasing a Storylines residence is an excellent lifestyle investment. We do not, however, recommend purchasing a residence if you do not intend to occupy it at least part-time, as we are dedicated to building a sense of community aboard MV Narrative.

Launch Date

In 2025, we will embark on our maiden voyage around the globe, following the sun, on our first three year circumnavigation. The vessel continuously circumnavigates throughout its lifespan.

Leasehold Terms

What is the legal name of the acquisition? Will the title specify an ownership of the ship percentage?

No. All of the lease terms are a ‘right to occupy’. It is either a right to occupy for 12 years, 24 years, or for the life of the vessel.

The units are fully inheritable to future estates and beneficiaries, or may be sold at any time. Should you choose to sell your residence, the Storylines team will provide sales and marketing assistance to maximize the sale price. As residence availability is limited, it is entirely possible the market value will increase over time.

Additional Leasehold Terms for Circle Members:

Residents with a lease term less than Lifetime of Vessel:
- have 10 years to upgrade to a Lifetime of Vessel lease term (from the sail date) if they are a member of the Gold Circle or Founders Circle.
- must upgrade to the Lifetime of Vessel lease term prior to the sail date, and be in the Gold Circle or Founders Circle prior to the sail date, to be eligible for the perpetuity option.
Residents with a lease term of Lifetime of Vessel initially:
- need to be a member of the Gold Circle or Founders Circle prior to the sail date in order to be eligible for the perpetuity option.

You and your family can cruise forever in perpetuity. Lease terms cannot be sold once they have rolled over to a new ship – they will be held on a year to year leasehold basis.

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