1. Richmond Asset Management Ltd. Hong Kong

2. Who Are Richmond?

Established in 1992 as a private asset management firm for individuals and corporations

We have an international client base withoffices in Hong Kong and Thailand

US$400 million of funds under advice & management

Authorised with the Securities and Futures Commission in Hong Kong

3. Our Investment Strategy

Focus on Generating Absolute Returns

Adopt proactive strategies help protect against downside risk

Identify the areas that have the greatest momentum behind them and profit from their movement

Maximise returns to our clients whilst controlling the downside volatility

4. Our Methodology

Momentum based technique where we track the movements of the funds against each other

Only invest in those funds that have the best momentum

Follow the trend and only get into up-trending funds

Be flexible if the trends are changing, get out! Our stop-loss techniques ensure we do not get stuck in losing positions

5. What is Momentum Analysis?

Technical indicator comparing the performance of one fund against another

Identifies the strength of a trend in a fund

We run the momentum tables for 46 world markets, traditional mutual fund groups and ETFs against their own peer groups

Invest into those funds that are towards the top of the momentum table

6. Why Not Traditional Techniques?

Buy and hold has not worked this millennium due to most markets trading in a range throughout the decade

Buying equities because they are cheap may work, but sometimes they are cheap for a reason. E.g. Enron, Lehman Brothers, Worldcom, RBS

Traditional diversification would have the majority of your assets in lagging markets such as the US, Europe and Japan with only a small weighting in leaders Asia, Latin America and other Emerging Markets

7. Why Not Traditional Techniques? The Dow has been in a trading range for the last 11 years, providing buy and hold investors no returns. For trend followers, though, there have been plenty of opportunities to generate returns. DJ30 - Dow Jones Industrials 8. Why Not Traditional Techniques? Germany has been range bound for 15 years, yet twice in that period you could have made over 300% gains FDAC-X Frankfurt Dax Index 9. Why Not Traditional Techniques? Even in Asia, markets like Taiwan have been stuck in a trading range TWII-X Taiwan Weighted Index 10. Momentum Tables 18 12 22 32 29 30 31 Finland Hex General (47) 17 21 26 20 8 39 5 Sweden Stockholm All Share Index (335) 16 26 32 27 28 20 38 S&P 500 Index (333) 15 7 47 22 37 4 14 Brazil Bovespa (40) 14 28 16 18 23 5 33 FTSE All Share Index Spread (1355) 13 27 24 23 18 11 32 Dow Jones Industrials (318) 12 24 18 10 26 8 28 Dow Jones Utilities (833) 10 23 14 17 27 18 35 FTSE 100 Index (320) 9 22 34 30 17 19 29 Nasdaq 100 Index (330) 8 41 39 25 35 28 23 MSCI World$ (58) 7 5 5 4 4 9 8 Chile IPGA General (41) 6 8 9 5 5 7 3 Thailand Bangkok Set (67) 5 10 12 39 25 37 40 Dow Jones Transport (831) 4 2 3 7 16 25 7 Russia RTS Index (61) 3 4 6 9 34 3 17 China Shanghai B Index Spread (42) 2 3 10 36 45 35 43 China Shenzhen A Index Spread (43) 1 1 1 1 1 1 1 Sri Lanka CSE All Share (64) 13-Aug-10 06-Aug-10 30-Jul-10 23-Jul-10 16-Jul-10 25-Jun-10 18-Jun-10 Fund Name 11. Example of a Buy Signal Breakout of downtrend, moving up the momentum tables and a new uptrend all combine to make China a strong buy Current Stop-loss point SSEC-X Shanghai Se Composite Index 12. Actual Trades Made Bought on 31 stJuly at $21.40 Rising Stop-loss Points Sold on 22 ndJanuary at $31.15 URE ProShares Ultra Real Estate ETF 13. Actual Trades Made Bought on 8 thMarch at $61.85 Rising stop-loss points Sold on 10 thMay at $67.14 URE ProShares Ultra Financials 14. Track Record 28.5% -4.6% 3.4% 0.1% 0.1% 0.1% 0.1% -1.9% 0.0% 4.0% 9.6% 0.5% 15.5% 2002 58.6% 9.6% -4.3% 10.7% 5.1% 9.0% 4.6% 4.4% 9.1% 5.6% -4.3% -1.0% 0.0% 2003 8.3% 3.5% 9.3% 1.5% 3.7% -0.9% -3.9% 2.9% -1.2% -6.8% -4.1% 3.6% 1.4% 2004 15.6% 6.8% 3.3% -7.5% 8.8% 0.6% 2.7% -0.1% 0.0% -0.8% -4.9% 6.9% 0.0% 2005 5.3% 5.9% 5.9% 5.4% 1.7% 1.8% -4.8% -11.7% -7.7% 5.7% 1.3% -0.7% 4.3% 2006 41.3% -0.9% -4.1% 13.7% 10.9% -2.2% 4.6% 3.3% 6.3% 5.7% 0.9% 0.3% -2.0% 2007 -8.6% -0.5% -0.1% -0.3% -1.6% -2.1% -1.6% -2.5% -0.3% -0.5% -0.1% 0.1% 0.6% 2008 14.8% 1.5% 2.3% -3.1% 4.8% 7.9% -0.7% -3.4% 5.1% 7.9% -1.2% -2.5% -4.5% 2009 -2.5% 10.9% -4.4% -8.9% 2.2% 0.3% -0.1% -1.5% 2010 Year Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Year THE PERFORMANCE 15. Track Record 16. Disclaimer The information contained in this presentation should not be construed as financial or investment advice on any subject matter. Richmond Asset Management Ltd. expressly disclaims all liability in respect to actions taken based on any or all of the information in this presentation. Viewers are reminded that investing in securities, collective investment schemes and similar investment products may be highly speculative and may carry an extremely high degree of risk. The values of these investments may be adversely affected by fluctuations in exchange rates. Past performance is no guarantee of future performance and the value of investments and the income from them can fall as well as rise, especially over the short term. The information contained in this presentation must not be reproduced, copied or redistributed in whole or in part. It is published in good faith with no representation or warranty, expressed or implied by us or any person as to its accuracy or completeness and it should not be relied on as such. Richmond Asset Management Ltd. accepts no responsibility or liability for any loss or damage arising out of the use or reliance on the information provided including without limitation, the accuracy, subject matter, quality or timeliness of any content. Richmond Asset Management Ltd. 5 thFloor, Jubilee Centre, 46 Gloucester Road, Wan Chai, Hong Kong Tel:+852 2827 5138Fax:+852 2596 0024 contact@richmondhk.comwww.richmondhk.com