1. Masako Watanabe & Associates Limited 1105 Printing House, 6 Duddell Street Central, Hong Kong www.investmw.com A Bespoke Portfolio Matching Your Risk/Return Profile Case Study Summer ‘06

2. 2 Disclaimer –The products introduced herein are not authorized by Hong Kong SFC or any regulatory authorities in other countries. –This presentation is for information purposes only and is not an offer or solicitation to buy or sell securities. The private placement memorandum is the official document for the terms and conditions of the products. –Although the contents herein are based on information believed to be reliable, Masako Watanabe & Associates Limited makes no representation as to its accuracy or completeness. –This document is prepared for private use only and may not be copied, reproduced and passed to any third party without the prior written consent of Masako Watanabe & Associates Limited.

3. 3 Do you know your own risk/return profile? In our industry, “know your client” is a must. First we need to understand the client’s backgrounds, personal and business if relevant, his investment experience, and his appetite for risk. We have extensive experience in dealing with different types of investors, coupled with analytical tools, such as a self developed risk quiz, to assess his risk/return profile.

4. 4 Risk/Return Profile Different investors have different needs, assets and sets of circumstances In order to determine an investor’s profile, we would ask the investor the following first: –What is his expectations for returns on his investment –How much risk is he willing to take –For how long is he willing to commit his assets Many things can factor an individual’s risk/return profile: –Age, investment experience, assets accumulated, ongoing income, potential earning prospects, dependents and such At MW&A, we focus on both growth and preservation of our clients’ assets We often propose a portfolio whose risk/return profile is slightly more conservative than that of the client’s at the initial stage

5. Case Study High Return vs. Low Risk Portfolio

6. 6 Portfolio A - Low risk Mr & Mrs. Nakamichi retired in 1997 and left most of their savings as bank deposits which did not grow very much Both of them are in their mid sixties They came to us to find out if their savings might be able to work harder with our assistance. They appreciated that we understood their risk/return profile well and asked us to propose a portfolio for the initial investment of $US100,000 in July 2002 They invested according to our proposal. The portfolio comprised four funds, two of which are principal guaranteed and the other two whose volatility was extremely low Mr & Mrs. Nakamichi have also decided to create two identical portfolios for their two children, ensuring the easy succession of assts to their offspring

7. 7 Overall Performance Jul ‘02 - Apr ‘06 PortfolioA - Low riskWG Bond Index Annualized Yearly Return 9.7%7.3% Volatility 2.4%7.1% Maximum Drawdown -0.7%-5.1% Current Value of Assets (principal $100k) $142,740$130,980 Portfolio A - Low Risk

8. 8 Portfolio B - High Return Mr. Nakamura, is a 38 year old young high tech entrepreneur After a successful sale of one of his businesses, he has accumulated more than $US 1,000,000 by June 2002 when he came to see us Being a risk taker by nature, and still a owner of successful remaining businesses, he choose to focus on high return and high risk products with proven track record of continued double digit performance We proposed a portfolio of six funds with limited correlation amongst themselves: Managed futures, leveraged multi-strategy FoF, Long Asian Equity, Distressed Debt, and Event Driven Although during the period of July 2002 - Apr 2006 the world equity markets rallied to yield exceptional returns, Mr. Nakamura’s portfolio still significantly outperformed MSCI World Stock Index

9. 9 Portfolio B - High Return Overall Performance July 02 - Apr 06 PortfolioB - High ReturnMSCII World Stocks Annualized Yearly Return 18.4%7.3% Volatility 6.8%7.1% Maximum Drawdown -5.0%-11.5% Current Value of Assets (principal $1m) $1,908,900$1,512,900

10. 10 Summary Do you know what is your risk/return profile? How much return would you expect from your portfolio How diversifies would you want your portfolio to be? Contact us to schedule an appointmentContact us