Consider this…Consider this…

40 years ago you could notbuy a Currency Futures Contract

20 years ago CollateralizedDebt Obligations did not exist.

20 years ago CollateralizedDebt Obligations did not exist.

2 years ago Subprime could bespoken about on Wall Street

Things change.Things change.

Fundamentals

#1 Failing

serious panic.Economic data causes

Equities drop to zero.

Equities drop to zero.

Communication is global and

extremely fast.

#2 Growing complexity

Individual investors

are trading online.

Information Overload

#3 Disappearing Borders#3 Disappearing Borders

Source: IMF

Global EconomicOutput in 2000

37%

Source: IMF

Global EconomicOutput Today

45%

Emerging markets havehad a growth explosion.

Commodity markets are exploding.Commodity markets are exploding.

#4 Greater Transparency

Better software can helpinvestors visualise risk.

Harry Markowitz Modern Portfolio Theory

Banks are scared as they hold many custom over-the-counter assets.Banks are scared as they hold many custom over-the-counter assets.

Don’t look to regulatorsDon’t look to regulators

New financial products will be less arcane.

#5 Lack of Education

People think options are risky.People think options are risky.

Managed futures are almost unknown.

CISDM CTA Index

53%

Correlation is -0.08 to MSCI WorldCorrelation is -0.08 to MSCI World

MSCI World Index

42%

Individual investors will be capable ofmanaging their own affairs.

Death of the Mutual FundDeath of the Mutual Fund

Mindset is70% of success.

Mindset is70% of success.

Investment ManagementManaged AccountsMarket Neutral Specialists

Murray Priestley+65 6690 9267

www.AlphaMgrs.com