1. Returns to Sectors & Style Does sector adjustment matter? China to end April 2011

2. Sector & Style Investing Sectors selection can add returns Style can add different returns Important to distinguish between both factors – Possible to collect returns from both Style returns can be more stable than sector returns

3. Approach Use Style Research’s Market Analyzer Benchmark = market – All stocks with market cap of USD 100 million Build Portfolio based on Sector or Style Rebalanced every 6 months – Repriced every month – Includes dividends

4. WHAT HAVE SECTORS DONE RECENTLY? Sector returns

5. Returns to Sectors – last 5 years

6. Health Care Value: - Growth: +/- Size: Small Momemtum : Low Debt: Low Sales: Domestic Quality: +/-

7. Consumer Goods Value: - Growth: +/- Size: Large Momemtum : - Debt: Low Sales: Domestic Quality: -

8. Basic Materials Value: - Growth: - Size: Small Momemtum : + Debt: Low Sales: Domestic Quality: -

9. Technology Value: - Growth: -/+ Size: Small Momemtum : + Debt: Low Sales: Foreign Quality: -/+

10. Consumer Services Value: - Growth: - Size: Small Momemtum : - Debt: b’mark Sales: b’mark Quality: -

11. Returns to Sectors – last 5 years

12. Industrial Value: - Growth: +/- Size: Small Momemtum : low Debt: low Sales: Foreign Quality: -

13. Financials Value: +/- Growth: +/- Size: Large Momemtum : + Debt: High Sales: Domestic Quality: +

14. Utilities Clean

15. Oil & Gas Value: + Growth: +/- Size: Large Momemtum : nil Debt: Low Sales: Foreign Quality: +

16. Telecom Value: + Growth: - Size: Large Momemtum : nil Debt: Low Sales: Quality: +

17. Sector Returns 1 Year XS Return - % pa5 year XS Return - % pa Health Care-6.614.4 Consumer Goods8.810.6 Basic Materials7.36.6 Technology-10.22.4 Consumer Services-9.11.7 Industrials2.6-0.2 Financials-5.9-2.2 Utilities-8.3-3.4 Oil & Gas12.5-4.3 Telecommunications-5.9-8.2

18. WHAT HAS STYLE DONE RECENTLY? Style returns including and excluding sector returns

19. Value – last 5 years

20. Book to Price

21. Last 5 Years SECTOR ADJUSTED - Last 5 Years

22. Dividend Yield

23. Last 5 YearsLast 5 Years - SA

24. Earnings Yield

25. Last 5 YearsLast 5 Years - SA

26. Cashflow Yield

27. Last 5 YearsLast 5 Years - SA

28. Sales to Price

29. Last 5 YearsLast 5 Years - SA

30. EBITDA to Price

31. Last 5 YearsLast 5 Years - SA

32. Growth – last 5 years

33. Return on Equity Last 5 YearsLast 5 Years - SA

34. Growth in Earnings per Share Last 5 Years Last 5 Years - SA

35. Income to Sales Last 5 YearsLast 5 Years - SA

36. Sales Growth Last 5 YearsLast 5 Years - SA

37. Forecast Earnings Last 5 YearsLast 5 Years - SA

38. Forecast Earnings Revisions Last 5 YearsLast 5 Years - SA

39. Other – last 5 years

40. Market Cap Last 5 YearsLast 5 Years - SA

41. Beta Last 5 YearsLast 5 Years - SA

42. Price Momentum – 6 months Last 5 YearsLast 5 Years - SA

43. Price Momentum – 12 months Last 5 YearsLast 5 Years - SA

44. Quality – last 5 years

45. Low Accrual Last 5 YearsLast 5 Years - SA

46. Debt to Equity Last 5 YearsLast 5 Years - SA

47. Stability of Earnings Growth Last 5 YearsLast 5 Years - SA

48. Sustainable Growth Rate Last 5 YearsLast 5 Years - SA

49. Stability of Sales Growth Last 5 YearsLast 5 Years - SA

50. Stability of Forecast Earnings Last 5 YearsLast 5 Years - SA

51. Returns to Sector + Style – last 5 years SA, annualised

52. Returns to Style – last 5 years Last 5 YearsSECTOR ADJUSTED Last 5 Year SA, annualised

53. Returns to Sector & Style

54. Value Last 5 YearsLast 5 Year - SA

55. Growth Last 5 YearsLast 5 Year - SA

56. Other Last 5 YearsLast 5 Year - SA

57. Quality Last 5 Years5 Year - SA

58. Sector & Style Investing Sectors selection can add returns Style can add different returns Important to distinguish between both factors – Possible to collect returns from both Style returns can be more stable than sector returns