F:\Ct&T Capital

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Updates and Response to Atlantic Ocean Windstorm

20 March 2010

Investors Meeting

CT&T Capital

CHOO KOON PO | TOR WEI JIAN | TEO GUI XIONG

CONFIDENTIAL

CONFIDENTIAL1

AGENDA

CT&T Capital

1 Introduction

3 Event Analysis

4 Actions Taken

5 Conclusion

6 Appendix

CT&T Capital

2 Background

CONFIDENTIAL2

INTRODUCTION: Recap of Our Investment Strategy

3 Key Investment Themes Target Investors

Theme Funds Selection S$

1 HSBC GIF Climate Change $1m

2ING (L) Invest Middle East &

North Africa$3m

2FORTIS L FUND Bond Best

Selection World Emerging$1m

3DWS Global Agribusiness A2

SGD$1m

3Schroder AS Gold and Metals A

Acc SGD $3m

Investors with high risk appetite seeking

for high returns for an investment time

horizon of 10 years

CT&T Capital

Alternative Energy- Ongoing Climate issue

- Government Stimulus

- Technological Advancement

Frontier Market- Superior Growth Prospect

- Lower valuations in Frontier Market

Commodities- Agriculture: Increasing population and

decreasing arable land

- Metals: Increase urbanization and

construction activities

1

2

3

1

2

3

3

2

CT&T Capital seeks to obtain an attractive rate of return through investing in long

term macro trends and focusing on key geographies and asset classes

217

143

120

113

76

0 100 200 300

US

SE Asia

Germany

China

Japan

Imports

CONFIDENTIAL3

BACKGROUND: US and New York State

CT&T Capital

Top 5 industries of New York State

Description

United States New York State

World imports & exports, USD trillion 2008

World GDP by PPP, 2008

20.4%

11.3%

6.2%

4.9%4.2%

53.0%

US China Japan India Germany Rest of world

Gross GDP of USD 1.14tr in 2008

16th largest economy in the world, 8th highest

per capita income

NYC – largest and most populous city in US

A global, iconic hub for

financial, cultural, transportation and

manufacturing activities

16%

15%

9%

7%10%

42%

Finance and insurance Real estate and rental and leasing

Professional and technical services Health care and social assistance

Government All others

Exports

146

143

141

129

78

- 50 100 150 200

Germany

China

SE Asia

US

Japan

CONFIDENTIAL4

BACKGROUND: Historical Disasters Analysis

Impact on financial markets is driven mainly by investor’s expectation, severity of

disaster and size/significance of the affected region’s economy

Severity of Disaster

CT&T Capital

• Increase severity would lead

to greater disruption and

recovery/rebuilding efforts

•Hurricane Katrina

USD 82 Billion in property

damage and destruction of

state‟s infrastructure

Investor Expectations

• Unexpected events and

mismatch expectations would

increase impact on financial

markets

•Sept 11 Attacks

Unexpected event which cause

huge market fluctuations

Region’s Economy

• Key economic regions will

increase impact to financial

markets

•Hurricane Katrina

Gulf of Mexico contributes to

over 50% of US gasoline

production

Led to rise in oil prices

1 2 3

81.2

35 26.8

78

150

41

109

?

0

50

100

150

200

250

300

350

Hurrican Katrina

Hurrican Ike Sept 11 Attacks

2010 NY Windstorm

Property damages Total economic impact

CONFIDENTIAL5

EVENT ANALYSIS: General

CT&T Capital

Impact on Global Economy

- Key US industries affected

- Contagion effect to rest of world

Impact on Global Financial

Markets

- Capital Markets

- Equities, Bonds

- Currencies and Commodities

1

2

USD bn

Property Damages and Economic Costs Impacts on Global Markets

Hurricane Hurricane

Ike

We expect NY Windstorm to surpass Katrina’s total economic impact

Negative -

• Insurance: Increase liability claims

• Financials: Disruption of operations of major

finance companies and decreasing investor‟s risk

appetites

• Tourism/Entertainment: Drop in tourist arrivals

and hotel occupancy

• Aviation/Shipping: Disruption of airport and

seaport services

CONFIDENTIAL6

EVENT ANALYSIS: Industry Analysis

Construction sector first to benefit from reconstruction efforts

• Construction: Reconstruction efforts and

increase in demand of construction equipments

• Consumer Durables: Restocking by consumers

• Resources Mining: Demand for raw materials

such as base metals for reconstruction

•Transportation: Reconstruction efforts would

involve moving of supplies e.g. trucking companies

CT&T Capital

Positive +

CONFIDENTIAL7

EVENT ANALYSIS: Government Reaction

We expect central banks and governments to react swiftly and decisively

CT&T Capital

Fed funds rate lowered by

175bp over 3 months

Fiscal

Sept 11 attacks 2010 NY WindstormSubprime crisis

Monetary

USD 40bn to fund relief efforts

Further tax cuts and stimulus

bill were made in Q1, 2002

Fed funds rate lowered from

5.25% to range of 0 – 0.25%

Quantitative easing and

extraordinary lending facilities

Fiscal

Monetary

A total of USD 955 bn stimulus

package in 2008/9

TARP fund. USD 700 bn used

specifically for financial

institutions

Fed funds to be maintained at

0 – 0.25%

More special lending facilities

may be created / restarted

Quantitative easing

Fiscal

Monetary

More fiscal stimulus in the form

of tax cuts, government

expenditures etc.

Specific programs for property

and business owners

CONFIDENTIAL8

EVENT ANALYSIS: Immediate Impact

Analysis of past disasters – Sept 11 Attacks and Hurricane Katrina

CT&T Capital

80

85

90

95

100

105

110

S&P 500 MSCI World MSCI Emerging Metals Gold Oil

Year

2001

Sept 11 Attacks

95

100

105

110

115

120

Year

2005

Hurricane Katrina

Equities went

down an

average 5%

globally when

US Markets

first open on

17 Sept

Oil suffers a

large drop in

the aftermath

of event

Gold rose

4.2% from 10-

17 Sept

Equities

remains

stable

Oil went up

3% from 23-28

Aug

Gold remains

stable

Metals went

up 10% in 4

weeks after 23

Aug

Market closes from 11-16 Sep 200123 Aug 2005: Hurricane struck Bahamas

28 Aug 2005: Hurricane struck Louisiana

CONFIDENTIAL9

EVENT ANALYSIS: Immediate Impact

Market volatility increases, gold has upside potential whereas broad equities

indices and oil fall

CT&T Capital

Commodities Impact Reasons/ Market Speculations

Gold Flight to safety

Oil Slow down of US economy

Base Metals Reconstruction efforts

Equities Impact

US Equities

Global Equities

Emerging/Frontier Equities

Currency Impact

US Dollar Index

Fixed Income Impact

US Treasuries NA

Global Treasuries NA

Market Volatlity Impact

VIX Index

Reasons

US economic impact spreads globally

Reasons

Selling of US assets, economic growth stalls

Reasons

Historically not closely correlated

Reasons

Market volatility increases due to uncertainty

CONFIDENTIAL10

ADDITION #1: Fullerton Global Bond Fund (FGLOB)

Source: Fund Factsheet (Dec 2009)

CT&T Capital

The Fund has the flexibility to invest in sovereign bonds, corporate bonds, REITs and other fixed

income instruments. The Fund Manager may invest in futures and derivatives for hedging purposes

and efficient portfolio management.

Lowest Annual Expense RatioThe fund has the lowest annual

expense ratio (0.36%) among its 12

peers (average of 5.8%)

Low Risk48% of portfolio in AAA rating bonds

Relatively low exposure to USD•Only 24.4% in USD (Rare for low risk

bond denominated funds)

1

2

3

Fund description

Asset Allocation – Credit Ratings

Currency exposure

Offers a great hedge to our current

portfolio amid volatile period

Reasons for Inclusion

CONFIDENTIAL11

ADDITION #2: Global Construction Portfolio

4 stocks to invest to capitalize on the reconstruction efforts

CT&T Capital

• Relevant experience as the only

construction company working at

both the Pentagon and WTC disaster

sites during 9/11

• Debt free

• Good long-term relationships with

governments and contractors

• Ability to take on contract risks and

stress test projects

• Debt-free

• World„s 8th largest construction

company

• Key markets in US

• Low debt/equity level (c.15%) and

High ROE (c.18.4%)

• World's largest manufacturer of

construction equipment

• Strong business model, consistent

positive free cash flow

1

2

3

4

http://en.wikipedia.org/wiki/File:AMEC.svg

http://en.wikipedia.org/wiki/File:KBR_Logo.PNG

http://en.wikipedia.org/wiki/File:Skanska.svg

http://en.wikipedia.org/wiki/File:Caterpillar_logo.svg

CONFIDENTIAL12

SUMMARY OF IMMEDIATE ACTIONS TAKEN

We seek to take advantage of event-driven opportunities

Theme Funds Selection CurrentImmediate

Action

Alternative

EnergyHSBC GIF Climate Change $2m $0.5m

Frontier Markets

(Equities)ING MENA $3m $1.5m

Frontier Markets

(Bonds)FORTIS Emerging Bond $1m $0.5m

Commodities

(Agriculture)DWS Global Agribusiness $1m $1m

Commodities

(Gold & Metals) Schroder Gold and Metals $3m $4.5m

Safe Assets

(NEW)Fullerton Global Bond - $1m

Construction

Equities (NEW)

4 Global Construction

Companies - $1m

CT&T Capital

Portfolio Allocation

CONFIDENTIAL13

EVENT ANALYSIS: Med to Long Term Impact

V-shape RecoveryEmerging Markets to recover faster than US

US Government increase fiscal spending US Government to issue more debt to fund reconstruction, stimulate economy

Downside pressure on US dollars

Commodities – Gold to correct, demand for base metals strongGold prices to correct as market conditions stabilize

Base metal fundamentals to be strong due to emerging market growth

1

2

3

We are positive on the economic recovery story as markets stabilize

CT&T Capital

CONFIDENTIAL14

EVENT ANALYSIS: Med to Long Term Impact on Funds

Our portfolio would revert largely to our original 3 key investment themes

CT&T Capital

1 HSBC GIF Climate Change

2 ING MENA

3 FORTIS Emerging Bond

4 DWS Agribusiness

5 SCHRODER Gold & Metals

We expect lesser climate change

commitments from Gov‟t

Emerging markets to recover faster

Agriculture fundamentals remain intact

Industrialization & Urbanization gather

momentum

CONFIDENTIAL15

SUMMARY OF POST EVENT ACTIONS TAKEN

We seek to maximise returns on long term macro trends

Theme Funds Selection CurrentImmediate

ActionPost Event

Alternative

EnergyHSBC GIF Climate Change $2m $0.5m $1m

Frontier Markets

(Equities)ING MENA $3m $1.5m $3m

Frontier Markets

(Bonds)FORTIS Emerging Bond $1m $0.5m $2m

Commodities

(Agriculture)DWS Global Agribusiness $1m $1m $1m

Commodities

(Gold & Metals) Schroder Gold and Metals $3m $4.5m $3m

Safe Assets

(NEW)Fullerton Global Bond - $1m -

Construction

Equities (NEW)


Companies - $1m -

CT&T Capital


0

1

2

3

4

5

6

Pre-Event Reaction Market Stabilise

Agriculture

Metals & Gold

Frontier

Climate

Treasuries

Construction

CONFIDENTIAL16

CONCLUSION

We adopt an opportunistic approach in the immediate aftermath of the windstorm

CT&T Capital

Investment Theme

Pre-Event Reaction Market Stabilize

Ride on Economic

recovery especially

on Emerging

economies

Capitalize on

reconstruction

efforts

Underweight on

Global Equities

Overweight on

Metals & Gold

Economic recovery

story continues in

Emerging Market

S$‟m Portfolio Allocation*

*Our present portfolio allocation is based on our base case scenario analysis

High potential returns from low

base, low PE

CONFIDENTIAL17

Agriculture and Metals

CONCLUSION

3 investment themes for the next decade

High potential returns from

rising urbanization and

population

Frontier Markets

High potential returns from

increasing investments and

government support in

alternative energies

Climate Change

MPT + Optimize Sharpe ratio

Fund with strong capability and potential of generating the alpha performance in the next decade

CT&T Capital

CT&T Capital

Q&A

The alpha to your investment needs

CT&T Capital

CT&T Capital

CONFIDENTIAL18

CONFIDENTIAL19

Appendix

Event

CT&T Capital

CT&T Capital

CONFIDENTIAL20

SCENARIO ANALYSIS: Immediate Actions


Theme Funds Selection Pessimistic Base Optimistic

Alternative

EnergyHSBC GIF Climate Change - $0.5m $1m

Frontier Markets

(Equities)ING MENA - $1.5m $3m

Frontier Markets

(Bonds)FORTIS Emerging Bond - $0.5m $1m

Commodities


Commodities

(Gold & Metals) Schroder Gold and Metals $4m $4.5m $3m

Safe Assets

(NEW)Fullerton Global Bond $5m $1m -

Construction

Equities (NEW)


Companies - $1m S1m

CT&T Capital


CONFIDENTIAL21

SCENARIO ANALYSIS: Med to Long Term


Theme Funds Selection Pessimistic Base Optimistic

Alternative

EnergyHSBC GIF Climate Change - $1m $2m

Frontier Markets

(Equities)ING MENA $1m $3m $3m

Frontier Markets

(Bonds)FORTIS Emerging Bond $1m $2m $1m

Commodities


Commodities

(Gold & Metals) Schroder Gold and Metals $4m $3m $3m

Safe Assets

(NEW)Fullerton Global Bond $3m - -

Construction

Equities (NEW)


Companies - - -

CT&T Capital


_____ CONFIDENTIAL22

New York State

Gross GDP of USD 1.14tr in 2008

16th largest economy in the world, 8th highest

per capita income

Projected state deficit of USD 8.2bn in

2010/2011

Demographics and Social Economic

New York City

3rd most populous state in the US, estimated

pop. of 19.5m as of July 2009

Highly urbanised. 92% of residents living in

urban areas

Profile

Geographically largest city in the state and

most populous in the US

A global hub for

financial, cultural, transportation and

manufacturing activities

Location of the NYSE, largest stock

exchange in the world

Top five industries as percent of GDP, 2008

16%

15%

9%7%10%

43%

Finance and insurance Real estate and rental and leasing

Professional and technical services Health care and social assistance

Government All others

Source: Bureau of Economic Analysis, US Department of Commerce


United States

Largest national GDP in the world –

USD14.4 trillion

Largest importer of goods and 3rd largest

exporter in the world

Services contribute 67.8% of GDP in 2009

3rd largest producer of oil in the world and

largest importer

World‟s top producer of corn and soybeans

NYSE – world‟s largest by dollar volume

Budget deficit of 9.8% of GDP

Gross national debt in 2009: 83.4% of GDP

GDP in PPP and nominal $ Economic

Global exports

Profile

[ ]

23%

7%

8%5%6%

51%

US China Japan France Germany Rest

20%

11%

6%

5%4%

54%

US China Japan India Germany Rest

Current USD PPP

9.2%10.2%

5.6%

4.3%

10.3%60.5%

US China Japan France Germany Rest

CONFIDENTIAL24

Hurricane Katrina

What Happened?

Hurricane Katrina (Aug 2005) - 4th most severe hurricane and greatest economic damage

CT&T Capital

• Worst affected states in US: Louisiana (Ranked

24th in Gross State Product in US), Mississippi

(Ranked 35th), Alabama (Ranked 25th)

•Total Fatalities: 1,836 confirmed, 705 missing

• Total Damage to Property: USD 81.2 Billion

•Total Economic Impact: Up to USD 150 Billion

• Industries Affected (Immediate):

•Oil Production in the Gulf Coast (over 50% of

US gasoline production)

• Shipping (Bulk of US agriculture shipped

from the Gulf)

•Forestry (about USD 2 Billion loss)

CONFIDENTIAL25

9/11 – September 11th Attacks

What Happened?

September 11th 2001 - Most deadly attack on US soil since Pearl Harbor

CT&T Capital

• Main Cities Affected: New York City (GDP: Over

USD 1trillion)

•Total Fatalities: 2,973 victims

•Total economic Impact:

• GDP Declined in NYC: USD 27.3 Billion

• Insurance lost: up to USD 40 Billion


• Finance

• NYSE, NASDAQ, NYMEX, bond

market cease trading

• Tourism

• Airlines/Aviation

CONFIDENTIAL26

NY State Disaster 2010

What Happened?

Worst Wind Storm to hit New York State

CT&T Capital

• Main Areas Affected: New York State

•Total Fatalities: Minimal

•Total economic Impact (Estimated):

• Damage to property: Over 100 USD Billion

• GDP decline: ??


• Finance

• NYSE, NASDAQ, NYMEX, bond

market cease trading

• Transport

•Airlines

•Shipping

•Tourism

•

• Main Areas Affected: New York State

• Property:

• NYC: $796.6 billion (2010)

• Major Airports Affected:

1. John F. Kennedy International Airport

2. LaGuardia Airport

3. Newark Liberty International Airport

4. Stewart International Airport,

5. Teterboro Airport

• Major Port Affected:

1. Auto Marine Terminal

2. Brooklyn Port Authority Marine Terminal

3. Howland Hook Marine Terminal

4. Port Newark-Elizabeth Marine Terminal

CONFIDENTIAL27

NY State Disaster 2010 – Damage to Infrastructure

Heavy damage to property, major sea ports and airports

CT&T Capital

Sichuan Earthquake (May 2008) Case Study

• 80,000 dead, almost apocalyptic devastation in China

• Massive rebuilding effort and billions of dollars it would pump into the Chinese economy would far

outweigh the economic losses from the quake

• Bump up national economic growth by 0.3 percent

Other Studies

•Studies have found that earthquakes in California and Alaska helped spur economic activity there, and

that countries with more hurricanes and storms tend to see higher rates of growth. Some of the most

recent studies have found a link between disasters and subsequent innovation.

• Possible long term economic growth after initial destruction

CONFIDENTIAL28

Natural Disasters and Economic Growth

Natural Disasters: Short term economic pain but long term growth?

CT&T Capital

CONFIDENTIAL29

New Fund – Fullerton Global Bond Fund (FGLOB)

Fund description





CT&T Capital

Asset Allocation – Credit Ratings

Geographical exposure Currency Exposure

1 As of 19 March 2010

Peer comparison

Relative lower

exposure to USD

currency compared

to other low risk

bond denominated

funds

The fund has the lowest annual expense ratio

(0.36%) among its 12 peers (average of 5.8%)

The fund has the 3rd highest 1-year return (12.3%)

among its peers (average of 5.38%)1

CONFIDENTIAL30




CT&T Capital

Description Details

Currency SGD

Manager Fullerton Fund Management

Launch 16 November 2009

Management Fee 0.75% (Annual)

Fundsupermart

Risk Rating2- Low Risk

Fund Description

Top 5 Positions % portfolio

France Government 4.25%

Oct 20232.2%

Bank Nederlandse

Gemeenten 4.125%

Jun 2016

2.0%

Korea Treasury Bond 5.75%

Sep 20181.9%

US Government 2.75%

Feb 20191.9%

Bundes Republick

Deutschland 5.625%

Jan 2028

1.9%

New Fund – Fullerton Global Bond Fund (FGLOB)

Source: Fund Factsheet (Feb 2010)

DJ Home Construction Index vs S&P500, post 9/11


Construction sector outperformed S&P500 strongly post 9/11 attacks

CONFIDENTIAL32

Caterpillar Inc.

Caterpillar Inc.. The Group's principal activities are

designing, manufacturing and marketing construction

machinery and engines. The Group operates through

three business segments: Machinery, Engines and

Financial Products. Machinery segment designs,

manufactures and markets construction, mining and

forestry machinery and related parts. Engines segment

designs, manufactures and markets electric power

generation systems, on-highway vehicles and

locomotives, marine, petroleum, industrial, agricultural

and related parts. Financial Products segment provides

financing to customers and dealers for the purchase and

lease of equipment, offers operating and finance leases,

installment sale contracts, wholesale financing plans

and insurance services. The Group's products are sold

under the brand names Caterpillar, Cat, Solar Turbines,

MaK, Perkins, FG Wilson and Olympian. It operates in

the United States, Europe, Africa, Middle East, Asia

Pacific, Latin America and North America.

Source: Worldscope.

CT&T Capital

http://en.wikipedia.org/wiki/File:Caterpillar_logo.svg

CONFIDENTIAL33

AMEC

AMEC p.l.c.. The Group's principal activity is providing

consultancy, engineering and project management

services to the energy, power and process industries. It

designs, delivers and maintains strategic and complex

assets for its customers. The Group operates through

four businesses. Natural Resources designs, manages,

maintains and upgrades production assets for a range

of oil and gas companies globally. Power and Process

designs, enhances and maintain electricity and gas

infrastructure in the United Kingdom, and power and

industrial plant in selected markets in North America.

Earth and Environmental provides environmental,

geotechnical, materials and water fields services.

Investments and others focuses on identifying sites,

undertaking environmental studies and developing

planning applications, site engineering and design,

economic modelling. In Nov 2008, the Group acquired

OEST Associates, Inc.

Source: Worldscope.

CT&T Capital

http://en.wikipedia.org/wiki/File:AMEC.svg

CONFIDENTIAL34

KBR

Kbr, Inc.. The Group's principal activity is to provide

engineering, construction services, supporting the

energy, petrochemicals, government services and civil

infrastructure sectors. The Group provides wide range of

services through six business segments, Upstream,

Services, Downstream, Technology Ventures and

Government and Infrastructure. The Upstream

Downstream and Technology segment designs and

constructs energy and petrochemical projects, including

large, technically complex projects in remote locations

around the world. The Government and Infrastructure

segment delivers on-demand support services across

the full military mission cycle from contingency logistics

and field support to operations and maintenance on

military bases.

Source: Worldscope.

CT&T Capital

http://en.wikipedia.org/wiki/File:KBR_Logo.PNG

CONFIDENTIAL35

SKANSKA

Skanska AB. The Group's principal activity is to provide

construction services related to building and civil

projects and in-house project development. The Group's

operations are carried out in four segments,

Construction, Residential Development, Commercial

Development and Infrastructure Development. The

Construction segment refers to building construction

(both non-residential and residential) and civil

construction. The Residential Development segment

develops residential projects for immediate sale.

Commercial Development segment initiates, develops,

leases and divests commercial property projects.

Infrastructure Development segment develops and

invests in privately financed infrastructure projects such

as roads, hospitals and power generation plants. The

Group operates in Sweden, Other Nordic countries,

Other Europe, the United States and Other markets.

The Group acquired Tekri Oy in 2008.

Source: Worldscope

CT&T Capital

http://en.wikipedia.org/wiki/File:Skanska.svg

CONFIDENTIAL36

Appendix

Fund Selections

CT&T Capital

CT&T Capital

CONFIDENTIAL37

Global economic recovery is off to a strong start

• Following the deepest global downturn recent history, global economic growth has returned to nearly pre-crisis levels,

largely led by key emerging economies in Asia

• Global production and trade have bounced back, largely driven by the turn in inventory cycle in advanced economies and

normalization of global trade. Leading indicators such as PMI and ISM have all registered accelerating growth recently

• Financial markets have also recovered faster than expected. Money markets have stabilized and the tightening of bank

lending standards has moderated. Equity markets and corporate bond issuance have surged since the 2009Q1

• IMF expects GDP of most emerging and developing economies to rise about 6 percent in 2010 and a further acceleration in

2011. Growth will be largely driven by strong economic frameworks and buoyant internal demand

• Fiscal and monetary policies in advanced economies are expected to remain accommodative due to the still-low levels of

capacity utilization and low inflation expectations

• The strong revival of commodity prices is further evidence of the global economic recovery. Global demand, particularly

from emerging economies, will help support growth in commodity producers, for example GCC countries, Australia, Canada,

Russia and Brazil

• The high-upside potential underscores our recommendation in a high-risk, high-return fund

Global GDP growth Global production and trade

-10

-5

0

5

10

2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1

%, qoq, annualized

World

Emerging and

developing economies

Advanced economies

-35

-25

-15

-5

5

15

25

2005 2006 2007 2008 2009

-80

-60

-40

-20

0

20

40

60

80

2005 2006 2007 2008 2009

Advanced

economies

Emerging and

developing economies

World

Advanced

economies

Emerging and

developing economiesWorld

Source: IMF, World Economic Outlook update, Jan 2010

Annualized %,

change of 3-

month moving

average

Annualized %,

change of 3-

month moving

average

Industrial

production

Merchandise

exports

CT&T Capital

CONFIDENTIAL38

Introduction

CT&T Capital seeks to obtain an attractive rate of return through investing in long

term macro trends and focusing on key geographies and asset classes

Asset and Geographical Allocation Target Investors

Funds Selection Amount

1 DWS Global Agribusiness A2 SGD $1m

2 Schroder AS Gold and Metals A

Acc SGD

$3m

3 ING (L) Invest Middle East & North

Africa

$3m

4 FORTIS L FUND Bond Best

Selection World Emerging

$1m

5 HSBC GIF Climate Change $2m

Investors with high risk appetite seeking

for high returns for an investment time

horizon of 10 years

CT&T Capital

*

* Excludes Holdings on Schroder AS Gold and Metals

CONFIDENTIAL39

Investment Strategy

Alternative Energy - Inevitable Climate ChangeThe ongoing climate issue and eventual regulation on emission levels would lead to

substantial growth in industries involved with Climate Change. Government stimulus and

technological advancement will continue to make this investment attractive.

Frontier Market – The Next Emerging MarketEmerging Market will enjoy a superior growth rate compared to develop market in the next

decade. With BRIC equities looking increasingly expensive, we believe that the lower base

and lower valuations in the frontier market will be the best bet for high returns.

Commodities – The Rising Asset ClassWe are positive with the outlook of agriculture and metal commodities due to the increase

in population coupled, decrease in arable land and increasing urbanization trend.

1

2

3

3 Major macro trends which shaped our investment strategy

CT&T Capital

CONFIDENTIAL40

Alternative Energy - Inevitable Climate Change

Climate Change debate is gaining momentum leading to strong growth for clean energy

Source: New Energy Finance

•Climate Change Heating Up. Climate Change

debate is gaining momentum. Inroads were made

in Copenhagen Summit and more commitments

expected to be achieve in upcoming summits.

•Strong Government Stimulus. Governments

allocated more than US$ 430 billion in fiscal

stimulus globally to “climate change themes” and

US$ 177 billion of stimulus to clean energy in 2009.

•Advancement in Clean Energy Technology. In

the past 18 months, price of clean energy has

dropped significantly. Government stimulus and

increased R&D efforts would make clean energy

more viable.

CT&T Capital

Source: New Energy Finance

CONFIDENTIAL41

Alternative Energy - Nuclear Energy

President Obama‟s efforts to promote nuclear

energy would be a strong boost to the industry.

The recent US$8bn in loan guarantees for the first

nuclear power plant to be built in three decades in

the United States was “only the beginning” as up

to US$54 in loan guarantees is included in 2011

budget request

In addition, countries such as France, Japan and

especially China have increased their investments

in nuclear energy

9.4% of fund invested in nuclear energy related

companies and 3rd highest holding of fund is in

Exelon

Strong Growth Expected for Nuclear Energy

0

20

40

60

80

100

120

140

2006 2015 2030

Gig

aw

att

s

Source: Energy Information Administration

World Nuclear Generating Capacity by Region, 2006, 2015, 2030

OECD Europe

OECD North AmericaOECD Asia

Non-OECD Europe/EurasiaChina

India

Rest of World

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008

China’s Nuclear Electricity Power Generation in

kilowatt-hours

Source: EIU

CT&T Capital

CONFIDENTIAL42

Alternative Energy - Government Stimulus

Clean Energy Stimulus might decrease significantly after 2011

Almost every major government worldwide

announced a fiscal stimulus package with

significant portion earmarked for „green‟

initiative

The flow of stimulus spending will strengthen

to around US$ 60 billion during 2010 and

drive overall investment in clean energy into

record territory as much as US$ 200 billion

Clean energy stimulus projected to decrease

sharply after 2011

However, with increasing political will on

climate change and more legislative action,

continual government support is very likely

Expected Clean Energy Stimulus Spending by Year,

US$ billions (% of total)Year, US$ billions (% of

total)

CT&T Capital

Industry Allocation

CONFIDENTIAL43

Fund 1 – HSBC GIF Climate Change

Fund description Fund analysis

Risk analysis

Geographical Allocation


• Focus on Alternative Energy. Over 50% of fund

invested in clean energy and nuclear energy

production

• Exposure in key geographical areas. Main

investments in countries with strong growth in

climate change industries

The fund seeks long term capital growth by investing in a diversified portfolio of

equities of companies’ developing activities related to climate change

• Reduction in government stimulus.

Governments face questions on how to stop

stimulus without causing the industry to suffer

• Increasing Interest Rates. For clean energy

industries, bulk of the cost to be borne up-front,

more sensitive to higher net interest than fossil fuels

CT&T Capital


CONFIDENTIAL44

Fund 1 – HSBC GIF Climate ChangeThe fund seeks long term capital growth by investing in a diversified portfolio of

equities of companies’ developing activities related to climate change

CT&T Capital

Description Details

Currency SGD

ManagerHSBC Global Asset

Management

Launch 9 November 2007


Fundsupermart

Risk Rating9-Higher Risk

Peer comparison


* Excludes performance fee of 10% of absolute return subject to a high

water mark

Fund Description

-4.73% -5.02%

-6.61%-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Schroder ISF Gb Climate

HGIF Climate Change

DWS Glb Climate Change

% YTD Returns

1.99%

1.85%

2.00%

1.75%

1.80%

1.85%

1.90%

1.95%

2.00%

2.05%

Schroder ISF Gb Climate

HGIF Climate Change

DWS Glb Climate Change

% Annual Expense Ratio

Middle East & Africa

Bahrain Kuwait Pakistan

Botswana Lebanon Qatar

Ghana Mauritius Saudi Arabia

Jordan Nigeria Tunisia

Kenya Oman UAE

CONFIDENTIAL45

Frontier Market- The Next Emerging Market

Exposure to Frontier Market is recommended for investors seeking high returns

CT&T Capital

List of Frontier Market Countries

Frontier market is a subset of the larger emerging market (EM)

Smaller, less liquid and less developed markets in the EM sphere

Categorized by higher returns, higher risk and lower correlation with the developed markets

Asia

Kazakhstan

Sri Lanka

Vietnam

Americas

Argentina

Jamaica

Eastern Europe

Bulgaria Romania

Croatia Serbia

Estonia Slovenia

Lithuania Ukraine

Source: MSCI Barra (Sept 2009)

CONFIDENTIAL46


Source: Bloomberg

CT&T Capital

Best-Performing World Equity Indices (2000-09)

Average PE (2007-2009)

Source: ArabFinance, Bloomberg

Frontier market provides attractive returns with cheaper valuation

•Historical Outperformance in Equity Market

Economic, security and social developments across

these underdeveloped markets pose a great

catalyst to its equities returns

•Lower Correlation with the Developed Market

Strong long-term diversification potential and ability

to hold on its own despite an uncertain recovery of

the developed world

•Lower Valuations than Emerging Markets

Correlation

with

S&P 500

S&P Extended

Frontier 150

Other Developing and

Developed Market Indices

56% 75-95%

Median

Stock

Market

Cap. over

GDP

Frontier

Market

Economies

Emerging

Market

Economies

Developed

Market

Economies

24% 50% 88%

CONFIDENTIAL47


Source: Bloomberg

CT&T Capital

Worst-Performing World Equity Indices (2000-09)

Average PE (2007-2009)

Source: ArabFinance, Bloomberg

Frontier market provides attractive returns with cheaper valuation

•Historical Outperformance in Equity Market

Economic, security and social developments across

these underdeveloped markets pose a great

catalyst to its equities returns

•Lower Correlation with the Developed Market

Strong long-term diversification potential and ability

to hold on its own despite an uncertain recovery of

the developed world

•Lower Valuations than Emerging Markets

Correlation

with

S&P 500

S&P Extended

Frontier 150

Other Developing and

Developed Market Indices

56% 75-95%

Median

Stock

Market

Cap. over

GDP

Frontier

Market

Economies

Emerging

Market

Economies

Developed

Market

Economies

24% 50% 88%

CONFIDENTIAL48

Frontier Markets - S&P Extended Frontier 150

Index consists of the 150 largest and most liquid companies from over 30 countries

The index uses a modified market capitalization

scheme to ensure that no country has a weight

greater than 15% in the index and no security is

over 10% of the index

List of Countries

CT&T Capital

ME&A Americas

Asia

Europe

Bahrain

Botswana

Cote d'Ivoire

Ghana

Kenya

Kuwait

Lebanon

Jordan

Oman

Qatar

Pakistan

Namibia

Nigeria

Tunisia

U.A.E

Zimbabwe

Bulgaria

Croatia

Estonia

Georgia

Latvia

Lithuania

Slovak Republic

Slovenia

Romania

Ukraine

Colombia

Ecuador

Jamaica

Panama

Trinidad & Tobago

Bangladesh

Cambodia

Kazakhstan

Mauritius

Sri Lanka

Vietnam

CONFIDENTIAL49

Frontier Markets - MENA

MENA region has the 2nd highest regional GDP growth forecast for the next 5 years

CT&T Capital

World Nominal GDP Growth*

* Measured in USD Terms

Egypt, with its diverse economy and large

population, coupled with minimal penetration

rates across sectors and low levels of leverage,

sets the scene for strong internal growth driving

opportunities

Qatar is the fastest growing economy in the

region with the third largest gas reserves in the

world

Saudi Arabia is one of the strongest domestic

markets with one of the least geared GCC

economies

Oman, with its massive upcoming government

infrastructure projects, is pose to enjoy

stimulated growth in various industries

Industry Allocation

CONFIDENTIAL50

Fund 2 – ING (L) Invest Middle East & North Africa


Risk analysis


Source: Fund Factsheet (Jan 2010)

• Well diversified

• Strong catalyst for Internal Growth categorize by

large population (Egypt), low leverage (Egypt and

Saudi) and large government spending in

infrastructure

The fund invests in a diversified portfolio of equities in or with exposure to the Middle

East and North Africa market

• Significant drop in oil price affected GCC

exports. Mitigated by strong Gov‟t reserves and

Gov‟t directives to diversify economy

• Dubai Crisis escalating. Mitigated by strong

balance sheet of GCC Gov‟t and its willingness to

intervene in stimulating the economy

CT&T Capital

CONFIDENTIAL51

Fund 2 – ING (L) Invest Middle East & North AfricaThe fund invests in emerging markets fixed-income securities with an emphasis on

long-term strategically driven exposures at the country level

CT&T Capital

Description Details

Currency USD

ManagerING Investment

Management (Dubai) Ltd

Launch 13 January 2008


Fundsupermart


Peer comparisonFund Description

Equities Sector Holdings

National Shipping Co Energy 5.88%

Ras Al Khaimah

CeramicsIndustrials 4.26%

Oman Telecom Co Telecoms 4.10%

Top 3 Holdings

Source: Fundsupermart

N/A

GDP* Growth (2008-2014)

CONFIDENTIAL52

Fund 3 – FORTIS L World Emerging Bond


Risk analysis



• Exposure into attractive emerging economies

• EM bonds are less co-related

• Narrowing spreads due to increased investors‟

confidence

• EM currencies upsides due to lower fiscal deficits

and public debt ratios

The fund invests in emerging markets fixed-income securities with an emphasis on

long-term strategically driven exposures at the country level

• Double dip recession. Might cause a flight to

safety assets. Mitigated by recent favorable

economic indicators and the willingness of

governments to intervene

CT&T Capital

* Nominal GDP

# Countries include Kazakhstan,

Argentina, Venezuela, Brazil, Russia,

Indonesia, Peru

Source: IMF (Jan 2010)

Fiscal

Deficits

Emerging Market Developed Market

3% 7-8%

Public Debt

Ratio40% 90%

CONFIDENTIAL53

Fund 3 – FORTIS L World Emerging BondThe fund invests in a diversified portfolio of equities in or with exposure to the Middle

East and North Africa market

CT&T Capital

Description Details

Currency USD

Manager Fortis Investments

Launch 27 May 1998


Fundsupermart

Risk Rating5-Moderate Risk

Peer comparisonFund Description

Bond Maturity Holdings

Elec De Caracas Fin B

8.5 (Venezuela)04/2018 7.83 %

Argentina 8.28 12/2033 6.90 %

Turanalem Finance Bv

8.25 (Netherlands) 01/2037 5.00 %

Top 3 Holdings

Source: Fundsupermart

N/A

-100%

-50%

0%

50%

100%

150%

200%

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09

Thomson Reuters/Jefferies CRB IndexS&P500 Index

CONFIDENTIAL54

Commodities – The Rising Asset Class

Cumulative returns since Dec 2003

The secular uptrend in commodities is underway

% cumulative change

• Outstanding historical returns.

Commodities have provided outstanding returns as

compared to equities in the last decade

• Secular trend to continue.

Growing demand for commodities, particularly

emerging countries will support this secular trend

• Exposure recommended for target investors.

Investors with greater risk tolerance and long-term

horizon should have exposure to this asset class

• Agriculture and Metals may outperform.

We believe Agriculture and Metals will outperform

other commodity classes.Source: Thomson Reuters/ Jefferies/ Bloomberg

CT&T Capital

1400

1402

1404

1406

1408

1410

1412

1414

2003 2004 2005 2006 2007

CONFIDENTIAL55

Commodities – Global Agriculture

Demand and supply trends

Fundamentals provide strong impetus for global demand boom in agricultural products

• World’s population is expected to increase to

8.01 billion by 2025 from the current 6.91 billion

• Global arable land is shrinking since 2005 due

to rising urbanization

• Global stocks-to-use ratio have held steady,

providing a fundamental support for prices

• Global demand for agri. products will rise.

Demand for this human necessity and key

alternative to energy resource will continue to riseGlobal Stocks-to-Use* ratio in key

agricultural markets

%

Source: World Bank, 2009

World arable land area

Source: Food and Agriculture Organization of the United Nations

Area (million Ha)

*Measures the carryover stock over the amount used in the

past year. Gauges the relative supply/demand balance

CT&T Capital

2.01

3.47

1.58*1.98

0

0.5

1

1.5

2

2.5

3

3.5

4

DWS Global

Agribiz A2 SGD

Schroder Golden

Blossom Fund

DWS Global

Agribiz A2 USD

BNP Paribas

Agriculture (SGD)

Fund

33.51

70.4

0.02

70.9

0

10

20

30

40

50

60

70

80

DWS Global

Agribiz A2

SGD

Schroder

Golden

Blossom

Fund

DWS Global

Agribiz A2

USD

BNP Paribas

Agriculture

(SGD) Fund


* Excludes management fee of 4.1% charged upfront

• Due to the focus on the agricultural sector, fund volatility is

expected to be higher than traditional global equity funds

• The globally-diversified nature of the underlying assets means

that currency risk is mitigated

CONFIDENTIAL56

Fund 4 – DWS Global Agribusiness A2 SGD

Fund description

Source: Fund Factsheet (Jan 2010)

The fund invests in opportunities at various points along the “food chain” ranging from agricultural

commodities to consumer products. Areas include land and plantation, seed and fertiliser, protecting

and irrigation, food processing and manufacturing companies.

CT&T Capital

Sector Allocation

Geographical exposure Risk analysis

1–year return1% Annual expense ratio%

Peer comparison

CONFIDENTIAL57

Fund 4 – DWS Global Agribusiness A2 SGDThe fund invests in opportunities at various points along the “food chain” ranging from agricultural

commodities to consumer products. Areas include land and plantation, seed and fertiliser, protecting

and irrigation, food processing and manufacturing companies

CT&T Capital

Description Details

Currency SGD

Manager DWS Investment S.A.

Launch 15 April 2007


Fundsupermart


Fund Description

Principal Holdings % Portfolio

Monsanto Co. 6.20%

Viterra Inc. 4.30%

Archer Daniels Midland Co. 3.20%

Agrium Inc. 2.60%

-100%

0%

100%

200%

300%

1996 1999 2002 2005 2008

Global metal stock

Aluminium Copper Lead Nickel Tin Zinc

CONFIDENTIAL58

Commodities – Global Metals

Demand and supply trends of base metals

Base and precious metals display signs of strong demand and weak supply

• Robust demand for base metals, the building

blocks of development, is supported by strong

fiscal stimulus spending on infrastructure as well as

increasing urbanization

• Precious metals seen as a safeguard against

geopolitical risk and are less volatile than most

commodities and equity indices, bringing

diversification benefits to our portfolio

• Downward movement of global stocks of base

metals towards 1996 levels or below it are further

evidence of continued strong demand for base

metals

Source: EIU

0%

30%

60%

90%

1996 1999 2002 2005 2008

Global metal consumption

Aluminium Copper Lead Nickel

Tin Zinc Steel

CT&T Capital

CONFIDENTIAL59

Commodities - Global metals: Gold

Demand and supply trends of gold

Unique properties of gold provide diversification benefits to our portfolio

• Spot gold price has went up by 20.7% over the

past year, surpassing US$1200/oz at one time,

fears of overvaluation of gold is intensifying

• Gold‟s role as a store of wealth and hedge against

financial turmoil has been tested and proven

• For the past 38 years, the world has been

engaged in a monetary system based on a single

currency – the US dollar

• Given the US‟s high budget deficit and debt levels,

more economists and central banks are calling for

the re-look into a new global reserve currency, gold

is the most viable alternative now

• Jewelry currently accounts for up over 60% of total

gold demand. As the economy improves, jewelry

demand will follow suit as wellSource: World Gold Council

CT&T Capital

52.78

36.36

48.78

0

10

20

30

40

50

60

Schroder AS

Gold&Metals A Acc

SGD

United Gold & General

Fund

DWS Noor Prec Metals

CL J SGD

1.912.05

0.4*

0

0.5

1

1.5

2

2.5

Schroder AS

Gold&Metals A Acc

SGD

United Gold & General

Fund

DWS Noor Prec Metals

CL J SGD

• The volatility of this fund is expected to be higher than more

diversified regional/sector equity funds due to the asset class-

focus

• Nonetheless, the mandate for the fund not to employ leverage

or engage in short selling caps the risks for investors

• As most metals are priced in USD, hence the currency

exposure is mainly to the USD. The fund does currency hedging

as well, mitigating foreign exchange risks.

8%

CONFIDENTIAL60

Fund 5 – Schroder AS Gold and Metals A Acc SGD

Fund description


The Fund invests predominantly in a range of metal-related derivative instruments, principally

comprising futures and other commodity-linked derivative instruments (e.g. swaps on physical

commodities) and, to a lesser extent equities in metal-related industries.

CT&T Capital

Asset Allocation

Portfolio exposure Risk analysis

1–year return1%


* Excludes performance fee of 10% of absolute return subject to a high water mark

Annual expense ratio%

Peer comparison

CONFIDENTIAL61

Fund 5 – Schroder AS Gold and Metals A Acc SGDThe Fund invests predominantly in a range of metal-related derivative instruments, principally

comprising futures and other commodity-linked derivative instruments (e.g. swaps on physical

commodities) and, to a lesser extent equities in metal-related industries

CT&T Capital

Description Details

Currency SGD

Manager Schroder I.M.

Launch 25 July 2008

Management Fee 1.50%* (Annual)

Fundsupermart

Risk Rating10-Highest Risk

Fund Description

Security exposure % portfolio

Futures 80.13%

Swaps, ETFs 10.68%

Equity 8.68%

Cash 0.51%

Futures 80.13%

* Excludes Performance Fee: 10% of the absolute return subject to a High Water Mark. Administration Fee: 0.4% p.a.

CONFIDENTIAL62

Quantitative Analysis

Methodology

Analyzed the various sub-funds and their relevant

benchmarks‟ historical data

Considered historical returns, volatility and

expense ratio

Sought a composition that gives an exposure to

all our recommended asset classes

High potential of maximizing returns in the future

and low expense ratio

Portfolio allocation

Portfolio statistics

7 years annualized Arithmetic Geometric

Returns (before fees) 16.94% 13.88%

Volatility (Standard

deviation)30.10% 30.10%

Sharpe ratio 0.56 0.46

Management fee* 1.50% + X% 1.50% + X%

Performance chart**

* Excludes Performance Fee of Fund 5, refer to slide [ ] for information ** Based on allocation of funds and weighted historical returns of relevant indexes

10.0%

30.0%

10.0%

30.0%

20.0%

Fortis L Fund Bond Best EM

ING L Invest MENA

DWS Global Agriculture

Schroder AS Gold and Metals

HSBC GIF Climate Change

50

100

150

200

250

300

350

Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

CT&T Capital

CONFIDENTIAL63

Benchmark selection

HSBC GIF

Climate Change

The pair has a quarterly correlation of +95% in the past 3 months. Similar to the

fund, the benchmark tracks the stock market performance of key companies that

are best placed to profit from the challenges presented by climate change.

Fortis L Fund –

World Emerging

The fund has a sufficiently long history of prices to warrant the use of its actual

historical data, rather than a benchmark proxy

ING (L) Invest

MENA

The pair has a quarterly correlation of only +27% in the past 3 months. The

mandates of the pair are similar. The key difference is in the benchmark‟s

exclusion of Saudi Arabia, resulting in the low correlation in the past 3 months

DWS Global

Agribiz A2 SGD

The pair has a quarterly correlation of +59% in the past 3 months. The benchmark

tracks agriculture price actions while the fund tracks equity prices of companies in

the agricultural supply chain, explaining for the slightly low correlation

Schroder AS

Gold and Metal

Fund

The pair has a quarterly correlation of +70% in the past 3 months. The benchmark

tracks the equity prices of metals producers while the fund reflects the use of

derivatives on the price action of metals. Nonetheless, the correlation is strong

HSBC Global

Climate Change

Benchmark

Fortis L Fund –

World Emerging

S&P MENA BMI

Gross TR USD

Rogers Int.

Commodity Agri

Index TR

Rogers-Van Eck

Metals TR Index

Fund Benchmark

CT&T Capital

6 Months Historical Data

CONFIDENTIAL64

Funds Selection 6 Months Historical Returns

1 DWS Global Agribusiness A2 SGD 15.95%

2 Schroder AS Gold and Metals A Acc SGD 16.44%

3 ING (L) Invest Middle East & North Africa -2.10%

4 FORTIS L FUND Bond Best Selection World Emerging 7.22%

5 HSBC GIF Climate Change 2.42%

CT&T Capital

1 Year Historical Data

CONFIDENTIAL65

Funds Selection 1 Year Historical Returns

1 DWS Global Agribusiness A2 SGD 70.15%

2 Schroder AS Gold and Metals A Acc SGD 48.18%

3 ING (L) Invest Middle East & North Africa -3.20%

4 FORTIS L FUND Bond Best Selection World Emerging 37.99%

5 HSBC GIF Climate Change 20.89%

CT&T Capital

Documents

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