1. Returns to Style using Style Research’s Markets Analyzer China End January 2011

2. International Experience Style Investing works Value and Small Cap works long term Best Value Markets – 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 – High Dividends best over 10 years Large cap works better than small cap – Unlike other markets 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 Analysis after sector adjustment – Factor screen within sectors – Eliminates sector bias Includes dividends Rebalanced every 6 months – Repriced every month

5. Value

12. Growth

19. Other

24. Quality

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 7.4% pa

34. Weight: Market Cap, Rebal 3 mths 8.3% pa

35. Weight: Earnings, Rebal 6 mths 12.2% pa

36. overview Value works long term – like in other markets – High Dividends best over 10 years Large cap works better than small cap – Unlike other markets Beta does not work – like other markets Nothing works consistently – Top 10 inconsistent over different time periods – Rebalance and weighting schemes make a difference