1.  Commodities Coffee, Sugar, Cocoa, Cotton, Orange Juice. CRB Index  Currency US Dollar index, Euro based pairs, Dollar based pairs, cross rates  Financials Russell Equity Indexes, NYSE Composite Index The New York Board of Trade The Global Market Place

8. Annual Nybot Equity Combined Futures and Options Volume 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 19901991199219931994199519961997199819992000200120022003 Contract Volume NYSE Composite IndexRussell 1000, 2000, 3000

9. Inflation Hedge –Investment which reflects inflation associated with hard assets Diversification –Un-correlated asset class versus stocks and bonds –Good hedge against negative bond performance –Reflects wage inflation inherent in plan sponsor liabilities Profit from an inefficient market Huberman (1995), Strongin (1995), Froot (1996), Schneeweis (1997), Georgiev (2001) Why Commodities?

10. Historic Research

15. COMMODITIES : A View from the Pit

16. Index Provider19961998Jun’02Dec’02Jun’03 Russell18.527.939.341.445.5 S&P73.664.649.946.742.5 Wilshire1.11.21.61.91.7 NASDAQ2.01.20.80.6 Lipper1.41.50.80.70.6 Dow Jones0.5 0.3 Other2.83.27.38.48.8 Percent of US Equity Investment Products Reporting a Benchmark

17. Percent of US Equity Investment Product Assets Reporting a Benchmark If this trend continues at the same rate, assets benchmarked to Russell indexes likely will exceed those benchmarked to S&P Indexes in the next 12 months Index ProviderJun’02Dec’02Jun’03 S&P62.557.449.8 Russell28.132.338.9

18. Style Timing Performance

26. ATC – Automated Trading Card EOR – Electronic Order Routing OBMS – Order Book Management system