1. Returns to Style using Style Research’s Markets Analyzer Asia Pacific x Japan x China End February 2011

2. International Experience Style Investing works Value and Small Cap works long term Best Value Markets – China, Japan and Korea Most markets have small cap premium High beta stocks do not generally perform well

3. Overview Value works long term – like in other markets – Sales to Price best over 10 years – 4.1% pa xs return Small cap performs better than large cap – Like other markets High Beta does not work – like other markets Nothing works consistently – Top 10 inconsistent over different time periods

4. Approach Benchmark = market – All stocks with market cap of USD 100 million Analysis after country & sector adjustment – Factor screen within countries and sectors – Eliminates country and sector bias Rebalanced every 6 months – Repriced every month – Includes dividends

5. Value works

6. Book Value

7. Dividend Yield

8. Earnings per Share

9. Cashflow per Share

10. Sales per Share

11. EBITDA to Price

12. Growth works sometimes

13. Return on Equity

14. Growth in Earnings per Share

15. Income to Sales

16. Sales Growth

17. IBES 12 Month Forward Growth in Earnings per Share

18. IBES FY1 Earnings Revisions 3M Sample

19. Other

20. Market Cap

21. Beta

22. Momentum 6 months

23. Momentum 12 months

24. Quality

25. Low Accruals

26. Debt to Equity

27. Stability of Earnings Growth

28. Sustainable Growth Rate

29. Stability of Sales Growth

30. Stability of IBES 12 mth Growth Forcast

31. Returns to Style – last 10 years Quality and Value works! SA, annualised

32. 10 year XS returns

33. Weight: Market Cap, Rebal 6 mths 4.1% pa

34. Weight: Market Cap, Rebal 3 mths 4.4% pa

35. Weight: Earnings, Rebal 6 mths 7.9% pa

36. overview Value works long term – like in other markets – Sales to Price works best over 10 years Small cap works better than large cap – Like other markets High Beta does not work – like other markets Nothing works consistently – Top 10 inconsistent over different time periods – Rebalance and weighting schemes make a difference