1. Case Study - Why Hedge Funds? Investing in the future, diversifying your risks Masako Watanabe & Associates Limited 1105 Printing House, 6 Duddell Street Central, Hong Kong www.investmw.com Summer 2006

2. Masako Watanabe & Associates Limited 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. Masako Watanabe & Associates Limited Managing Your Risk All investments carry some element of risk and hedge funds are no different However, contrary to their public image as risk-takers most hedge fund managers specifically focus on reducing risk and limiting volatility By including carefully chosen, hedge funds with low market correlation and good track record, an investor can significantly increase his portfolio's risk adjusted returns The following is a sample presentation on the effect the inclusion of hedge funds’ products can have on a traditional portfolio

4. Masako Watanabe & Associates Limited 24 % + 18 % + 16 % + 14 % + 12 % + 10 % + 8 % + 6 % + 4 % 4 % 6 % 8 %10 %12 % 14 % 16 %18 %20%22 % Volatility (Risk) （ % ） Performance （ % ） Portfolio Theory in praxis Dec 1990 – June 2006 Portfolio 2 60 % MSCI, 40% Sample Hedge Fund Portfolio 1 100% MSCI (stocks only) High risk/return Hedge Fund

5. Masako Watanabe & Associates Limited Volatility 13.4% Comparison 10.000 USD Invested Dec 1990 – June 2006 Portfolio 1 100 % MSCI (stocks only) Portfolio 1 100 % MSCI (stocks only) 39,940 USD Volatility 6.5% 28,780 USD Portfolio 3 100% Govt. Bond Index Risk 10,000 USD Risk 10,000 USD Sharpe ratio* 0.36 Sharpe ratio* 0.32 *modified sharp ratio (risk free = 5%) Volatility 9.9% 70,080 USD Portfolio 2 60 % MSCI + 40 % Hedge Fund Portfolio 2 60 % MSCI + 40 % Hedge Fund Risk 10,000 USD Sharpe ratio* 0.91

6. Masako Watanabe & Associates Limited Conclusion Diversify your portfolio by adding hedge fund products to:  Reduce risk  Increase returns  A more balanced portfolio Interested to learn more? Contact us now!Contact us now! And never forget…

7. Masako Watanabe & Associates Limited