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VisionIO's vision lies within the pursuit of Real Investment Opportunities

which are unique and distinctive in an e\,'er competitive lvorld.

Our investment Funds aim to exceed the expectations of our membership.

Missioneal Investment Opportunities must deliver a sound Return on

Investment through the pursuit of excellence in creativity, innovation

and the highest levels of integrity.

We believe in behavioral value based on respect, hr.rst and strong professional

Ieadership.

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. 1998

. 1999

r 2000

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. 2002

. 2003

. 2004

. 2005

]uly'2005 Edward Legge recruited from Mercedes Edinburgh as New General \Ianager of RIO

Prestige Performance UK Ltd. A total of 14 Companies are now wholly or,r'rred -ul.-idiaries of

the RIO International Investments Ltd group of companies. Nlembership @585

,RIO decides to close Portfolio Fund

l-Oth Anniversa ry IssuePast, Preserat & Futtrre

1 oaA

7995

7996

RIO Club conceived and initiated.

RIO Club founded: with first 50 club members.

Atlas Fairweather incorporated to provide administration for the club, RIO Club membership

@102 The Club's first direct investment opportunity is offered to members.

RIO Property Group Ltd. incorporated to acquire commercial property in the UK. RIO Club

web-site designed and posted. Club membership @157.

First full colour newsletter issued RIO News. Membership exceeds 190. Target membership set

@400 to facilitate the incorporation of an Investment Company to offer further direct investment

opportunities to our membership. |ohn Sutherland joins staff as Sales Manager of the RIO Club

Dwi Utari recruited by RIO Club as Club Secretary: Club membership @265 world wide.

David Wisemary Andy Morrisory Benny Robertsory ]oseph McCluskie recruited as RIO Club

sales Team. Club membership @320 in 9 Countries.

RIO Portfolio Fund launched, the Clubs first collective investment scheme administrated by

HANSARD. Club membership breaches the 400 target set in 1998.

RIO International Investments Ltd incorporated. RIO designs and launches second direct

investment; Fixed Income Bond fully subscribed within 3 months of launch.RIO's third d.irect fund: RIO TLP Fund Ltd. launched fully subscribed in 12 months. RIO Property

Group Ltd. shares mature. RIO closed Direct Sales force. Matt Williamson joins RIO Club Staff

as Fund Administrator based Isle of Man. Ernst & Young appointed as auditors.RIO opens new Admin office in IOM. Gerald Bradley recruited by RIO Prestige Performance

UK Ltd. as General Manager. Andrew Peate joins RIO International Investments in Tokyo. RIO

Prestige Performance (UK) Ltd. sponsors IOM TT to launch their UK service. RIO Prestige

Performance Fund Ltd.launched being the fourth lump sum fund successful launched since

2001. Club membership @515 in 14 Countries.

RIO International to launch RIO Professional investor's fund in October 2005 to celebrate Rio's

10th Anniversary. RIO Intemational incorporates Screen Capital (IOM) Ltd. to jointly man..,

Movie Portfolio Fund. RIO Prestige Performance (UK) Ltd. sponsors the Scottish n',

British Formula 3 & GT Championship in May 05.

Barry Hewitt joins RIO Prestige (UK) Ltd. As UK fleet coordinator.

l-O'n Anniversarv

I

UK Property Market

The UK Property Market will see Capital Growth overthe next five years and as such RIO are incorporatingthe RIO Property Group Ltd - a property investmentcompany to take advantage of this opportunity. Thisentity will acquire piece by piece a property portfolioover the next two years. Club members interested inthis investment opportunity will be able to acquireshares in this company within the next few months.The RIO Property Group will provide a guarantee ofcapital on its shares at outset i.e. invest €100,000minimum return €100,000 in 5 years.

Members should note that each property will have atenant in position at the time of acquisition, with at

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10'" Anniversary

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ln fact, the lease contract between RIO and the tenantsmirrors a Government bond in that it represents theright to collect income. Furthermore, with a fullrepairing and insuring lease in position within thecomplete portfolio of properties, the responsibility forrepairs and maintenance is conferred to the tenants.

Indeed, the lease between RIO and the tenants in allcases incorporates the phrase "repai4 renew and/orrebuild". As there is no limiting factor during the termof the lease, this places the tenants under obligationto re-instate the property to a condition comparableto that at the stait of thelease. This is clearly a veryattractive position for The RIO Property Group Ltd.to be in.

Although RIO reserves the right to insure the buildings,they are entitled to recover the cost of insuraniepremiums from the tenants. Buildings are insured onan all risks basis with the added attraction of theprovision for rental loss cover to assure the incomestream.

.:,.RIO Property Group Ltd. Certificates Mature in-,Iarluary 2003

This is the club's first direct fixed interest opporrunrtylaunched in November 7997 - a Sterlins basedinvestment.

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Spot Light on BRIO Property Group Ltd. has a parcelof select investment properties, withall the participating propertiesmeeting the stringent criteriademanded to offer maximuminvesbnent potential for the company.Even though a particular propertymeets all the requirements, I am agreat believer in making money whenyou buy, not just when you sell andpush hard to buy property below itscurrent market value. To a largedegree, investing profitably meansstructuring deals to yield goodpositive cash flows and high ROIs.Generally, to beat the market averages,you first need to identify thosecommunities, neighborhoods andproperties that are positioned forfaster appreciation.

RIO Property began negotiations toacquire this property inJanuary 1998,with transfer of title finalized in April1998. Due to the extensive worksrequired, RIO was able to acquire 20Rubishlaw Terrace a freehold propertyoutright for f,285,000, which was farbelow its market value.

This in itself points to opportunity forthose who can see beyond the initialheadaches of refuibishing anddecorating a listed building whichdates back to 1894. Therefore, it is awelcome addition to the group'sproperty holdings.

The tenant at 20 Rubishlaw Terraceare Aberdeen Asset management(AAM) PLC who's group has US$ 22.3billion under management. They areboundby a full conventional repairing& insuring lease, which expires on 31

March 2003.

AAM PLC declared a tumover of €3.8million. Furthermore, they recentlyacquired Prolific, the investment armof Scottish Provident. Interestingly,this occurred in january 1998, whenRIO had already exchanged contractswith Royal Sun Alliance for thepurchase of 20 Rubishlaw Terrace.

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ubislaw Terrace

ion of theormissing

Due to the extensive r,r'otk r.vhichcarried the property back in to primecondition, the RIO Property GroupLtd. have decided to grant anextension to the period originalll'agreed to complete redecorationwork which must be undertaken bythe tenant. This includes strippingexisting paper from w'alls, repairingany damaged areas of plasterwork"hanging new vinyl paper of qualitY

to match that existing throughout the building, replace

any damaged or worn carpet sections etc.

To date, cost of the repair work has already exceeded

f,37,000.I met with contractors on site r'vho estimatedcompletion of all remaining work by mid March 1999'

Meanwhile, we are continuing to uplift the rentalincome, which exceeds 17.5To Per annum.

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43 I 50 Carden Place is currently insured for €660,000

with property owner's liability cover in place. Inaddition RIO has rental income insurance to assure

the income stream.

On the 12th of january 7999, at a meeting with RIO'sapppointed surveyors the preparations of an interimschedule of dilapidations was discussed. The schedule

was completed for review on the 2"d March 1999; the

building requires extensive works to uplift the propertyto prime condition. Costs of such an undertaLir-rg have

been estimated at f45,000 - f55,000, u-hicl-r i'' almost10% of the building's cost. The scl-reclule ofdilapidations has been served or-r tl-re Ftrr\rard TrustGroup Ltd. Their response is arr-aitecl.

Meanwhile we have alreadr- receiled the first rentalincome of f25,882.19, being rcl1i lLrr the period 25thDecember 1998 to 14th Mar' 1999.

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10'" Anniversary

Bad news is good news if you knowhow to use it to your advantage. 2L%gain in seven weeks!

Lucent Technologies Inc. bought short at $.1 5.30 on

the 7 December 2000 on the release of a flurrv of badner,l's. lt r,r'as solcl olr the 31 Januar\'2001 at $ 18.53.

rt ith a gain2i',t'c, in sel'en r,l'eeks.

The above stock again highlights the value of timingand analvtj.cal research. A11 members participating inthe Club's stock poltfolio tt'ill have benefited fromthe abor.e. To ar.r-v tnembers interested in otir stock

por tfolio, e-rlail us at therioclub@-rcbn.net.id to regi-ster

Vour interest.

What has happened since our se1l?

Lucer-rt Technologies Inc.'s credit ratings r'r'ere cut to

rt ithin a notch of junk status by Standarcl & Poor'sCorp. and Moocl,v's Investors serr.ice after revenuefron-r tl-re biggest maker of phone-eqr"ripment fe1l inthe fi'cal fi rst qrr.trtt'r.

The outlook for Lucent is "Nesative." The cuts withinadd to a slicle that's taken the-company to near belowinvestment grade from among Lhe highest-ratedborrorvers just a few months ago. Lucent call now no

longer sell commercial paper, a type of short-terlndeb-r that ihe companies use to ensure they haveenough cash day to day.

The cuts follow Lucent's first drop in sales andoperating loss in its five-year history as an independentcompany from former parent AT&T Corp. Its shares

have plurrged 69 percent the past year.

Banks are already treaiing Lucent at as if it were rated

belorv investmeni grade by requiring the companl'toback the short-investrnent grade by requiring ihecompanv to back the short-term loan with assets.

10'" Anniversary

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RIO sol stock pick on 2 February with gainsof 34.25% in eight days\ien-rbers inierestedin our IPO up date will rememberthi) one, recommended as a buy on 21 January 2001.Orir Fund manager bought this stock at$8.97, holdingit a brief eight days before putting the sell order in at512.00 the stock was sold at $12.04. For those membersrr-ho aren't on our current IPO up date list the followinginformation is provided on a regular basis.

Peet's CofTee & Tea Arrnounces Initial Public Offering

Jan.25,2001

Peet's Coffee & Tea. Inc. todav announced the initialpublic offering of 3,300.000 ,hu'r*, of its common stock.

Founded in Berkelev. Califomia in1.966bv Alfred Peet.

This company is a ipecialty coffee ,ouster and makerfocused on selling fresh whole bean coffees throughmultiple channels of distributions, including specialrygrocery and gourmet food stores, orrline and mailorder; office and restaurant accountsand 58 company^-ornmed stores in four states. Thev offer Iava lovers' 33

types of coffee, including 17 blends. lis teas run theJpectrums from lndia black to herbal blends.

The Playersh ho are the players? Starbucks co-founders GeraldBaldrr jn and Cordon Bowker bought the company in1981. ln 1987 they sold Starbucks but retained thePeet > chajn. Baldwin owned about 31% of Peet's prior:o rhe public offering.

Crir soulces f*aa urio bJi"rr" thathe will reduce hisr-L,riding to about 157;'---"4

Ke1-People . '

t '.rirmar: Gerald A. Baldwin, age5T,salary 5333,464..:.:. .:

President and CEO: Christopher P. Mottern, age 56CFO, VP, And AssistantSe-cretary: Mark N. Rudolph,age,l2, salary glsarzii

\? Btisiness Develogrnent qnd General Counsel: PeterB. -\lehrberg, age 42.

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VP. Coffee and tea, andSecretarv: James A.Revnolds, age o1, s.ria rlfi777,725

Top Competitors

Diedrich CoffeeFarmer BrosStarbucks

Market Listing: NasdaqTicker Symbol: PEETWhat the Analysts Say:

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Analytical research coverage on Peet's Coffee & Tea(Nasdaq: PEET) indicated, "buy" rating the 12-monthtarget price as $14 per share. Specialty Retail/BrandedConsumer analysi Kristine Koerber cites Peet's stlongbrand, multiple sales channels and unique productpositioning as key reasons for the recommendatior-rs.

"We believe that Peet's Multi-Channel distributionmodel has positioned it to deliver re\renue gron'th ofat ieast 15-20 percent over the long term. Bv buildinga national premium coffee brand, not only throughflagship retail locations, within specialty and gourmetfood stores, the company should continue to driverevenue growth over the next several years," Koerbersaid.

Koerber added, "Infrastructr,rre upgrades over the pastseveral vears position Peet's to expand its non retailstore channel growth with minimal future inr.estment.Therefore, we ieel the company is poised for significantoperating margin expansion."

Peets Coffee & Tea Rated nelr.'Buv' at Pacific Growthby analyst Peter Swan at Paciiic Cror,r th Equitiescommented that the 12-to-18-month target price rvouldbe $16.00 per share.

Any members interested in receiving our IPO updateplease make us aware of your interest.

10'" Anniversan

RIO PropertyGroup Limited6 February 2001.

A11 properties crre currentll' ful1y occupied lvith targetrentals achieved or surpassed, the only exceptionbeingNIain Street Golspie, u.'here the Clydesdale Bank Plcmade the decision to vacate the ploperty. Flowel'er,tireir lease is fullr'binclrng mearrirrg that the rentalstream is unaffected. R.I.O informed the bank that ouragent lr'ould be inspecting the ploperty monthly, sincethr't trilcling is vacant. These inspections would be atthe banks cost. We also recpire the central heatings,vstem to remain on at tenant expense.

As expected. on 11 December 2000 the bank offered{ 14,500 to snrrencler the lease and r,valk away fromtheir 1iabi1it,v. Their request r,r,as immediately answered:"the offer r,vould have to be sisnificantlv increased forthem to be allol.ed out of their leeal and financial1iabiiit,v."

On 6 Februar-v 2001 the bank approach our 1ega1 agentsasking for them to submit a figure, r,vhich RIO wouldfind acceptable, ta.kjng into consideration that thispropertv formecl part of a smal1 property portfolio,rvhich r.r'as acquired in Februarv 2000 and the banktenanted al1 buildings of ln'hich Golspie was thesmallest holding r,r,itir a purchase price of f 34,000.HavJrrg receir-ed one vear's rental on this holdingol f 3,75A. A figure of f 30,000 u.as indicated as

acceptable for termination. Agreemeni on this r,vouldresult in the book cost of the building being reducedto almost zero.

A reqnnnco ic :rr-;ife,-]' ' 'r' H"'

RIO Property Group Ltd.29 lune 2001

RIO Propertrr Group Ltd. finalized lease surrendernegotiations n'ith the Clydssalrl. Bank P1c on 29ft |une2001 . Again RIO r,r,'as successful in that the Bank agreedto trtrr seltlL'ment figure:et drr rirrg February, whicheffectively reduced the book cost of the builcling tof250 i.e. almost zero. I think any investor r,vill bedelighted with this outcome, considering we onlybought the building some 16 months previously. I{IOPrr)pert) Cro.rp l-td put tlre l.uilding up for sale andis in final negotlations n'jth a potential purchaser thismonth.

THE RIO CLUB isproud to announcethe launch,of theRIO PORTFOLIOFUND which willbe launched on 30March 2001

Key Featuresl

r An Investment Process, which .orrrbirr", sio.kselection and portfolio managemenl..

. USD based

. Daily dealing

. The Portfolio will consist typically of between 10-20 stocks

. Maximum Stock Exposure 20 % of Fund.

. Cash will also be used is an asset during times ofmarket distress.

r Analysts in UK and USA providing research data.. .. l

The lnvestment Prccess combines stock selection r,vithprudent portfol io management base.

Excitine opportunitv for all club members:after a ,*-r'"ril'rnonths of negotiation R.T.O can finallyannounce-th-at we yet again"have set the standard forothers to follows. , '.

,

We are providing a unique opportunity for membersto invest in our new fund having successfullvnegotiated special terms with the ".l.rb *"*b"r,offeri n g infinitely reducing cost.

Tlris opporhr,rnitv is rurrentlv unbeatable anwvhere inthe ofishore *o.k*r at bhe time of writing this article.

Further information on lequest.

10''' Anniversarlt

Is Hist eating ltself?Gold to Shine Again!

If the economy is growing tooslowly, economists are heardurging the central bank "toput more money" incirculation. Of course, if more"money" couid really makepeople rich, the Argentineansof the 1980's would have been

fabulously wealthy.

gold?

k*. ?Instead, they became patheticallir impoverished. Why?Because the central bank cannot really put more"morLey" in circulation. All it can do is circulate moreof what appears to be money...paper currency orcredit...in order to make people feel that they are

richer than they really are. Under ideal conditions, the

mock money causes people to spend and invest a iittlemore freely...and gives a sluggish economy a boost.

But people cannot really spend money they do nothave. Money must represent real wealth...realresources...or it has no meaning. Printing extra billsdoes not increase the amount of real resourcesavailable. So, handing out the extra cash and creditis a kind of deceit, which is welcomed by almosteveryone, until it blows up.

The phony money causes people to change theirbehavior. They spend money they don't reallyhave...and invest in projects they shouldn't. Moneyseems delightfully easy to come by in the boom stageand gets tossed around casually. But then whathappens? Eventually, people beco_me aware that theirinvestments are not producing the profits they hadhoped for. Thev cut back. Consumers cut back too,"uiiring that they are not as rich as they had thought.And lenders, who were happv to extend credit toEnron and household pets when the economy wasbooming, become worried. Question marks begin toappear. Will debtors really be able to make theirpayments? Are earnings really what the company savs

they are? Will sales reall1' go up i.n the future?

10'n Anniversarr-

We Predict Gold to...Continued

Lenders have become reluctant to make newcommercial 1oans. Is it surprising? Bankruptciet creditdefaults, and late payments are hitting new records.

Who would want to lend? And yet, if the rate ofborrowing and spending declines the boom is over'

The quality of credit has been cailed into question.More and more "Enron Stories" will hit the news.More and more question marks wiil appear. How can

the U.S. afford such huge new government outlays?

Relative to gold, we expect the dollar to fall.

While the do1lar had the wind to its back it seemed tomake sense for central bankers to lighten up on goldand hold more interest-vieldinq, U.S. dollar assets.

The first issued paper has a fixed maturity date ofApril2007 and is only available to club members. The

RIO Fixed Income Bond will provide a fixed grossannual income of 97o oncapital investment each yearfor five years starting on April 2002.1twi11 then returnyour original investment in full on May 2047.

This select investment holding offers an attractivealternative to the normal 1ow risk, low returnparadigm. As a holder of a RIO Fixed Income Bondyou would have the security and peace of mind of

But cenkal balkers must feel the new chill wind too.

They too must be asking questions.

"Central banks will suspend gold sales arrd balk atrolling over bullion loans. Market sentiment towardsfinancial assets will sour further. The bear market infinancial assets, already underway, will become morewidely recognized." Be warned!!!

Our recomended - BUY GOLD! I have at $281 @

ounce for several members including myself.

William Gray.Executive Chairman

RIO Club to Launch RIOFixed Income Bond

knowing that this investment has a fixed return perannum ito* grrr.unteed lncome generated from itsasset backed securities.

These holdings are usually securecl by blue chipcompanies or similar where a lock up retum is alreadyin position, with all participating holdings meetingthe stringent criteria demanded to offer maximuminvestment. All holdings heid within the Bond are UKbased and have a minimum fixed. term remaining onany holding of at least five years.

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10'" Anniversarv

Middle East has Increased, expect thePrice of Oil to Increase!A Conflict in the Middle East = Oil Profits

It is simple. Corrflict in the Middle East invariablyleads to higher oii prices. Consider recent hisiory:

- The Yom Kippur War,1973-fought between Israel

and its Arab neighbors, quadrupled the price of oil,from $3 a barrel to $12 a barrel.- The lranjan Revolution, 1979-effectively removed

one of the worlds kingpin oil producers and pushed

oil process from $12 a barrel to $24 a barrel.- The Irani Iraq War, 1980-jump started oil prices

again, sending them from under $22 a barrel to over

$35 a barrel!- The lraqi invasion of Kuwait, 199O-propelled oilmarkets into the stratosphere. The price of crudeclimbecl from $20 a barrel to over $35 a barrel'

Jn each case, investors that caught the move earlymade fortunes.

During 1990 we took profits in excess of 200';b inthis market. This event driven opportunity couldpresent itself yet again.

Last vear it was Saudi Arabian Crown Prince Abdullahthat said,'1N€ ate sitting on a powder keg that couldblow up at any time." Because-of recent world events

he could be right.

Look at the past, present and, future-it portrays an

interesting p.icture

rn1973 the united states imported 34'8i:i of its oil'Presiderrt Jimmy Carter considered it a crisis. Thiswas because Persian Gulf states controlled 65ii of the

world's known oil reserves, and that \'vas a serlollsproblem. In the 1970s r.r'hen the OPEC cut backoroduction, Americans r,r,aited in line for hor-rrs to fillup. The US ecorroml took a l"catirrg.

That n as 30 vears ago. Todar'i the Lr.S. imporis 53frl,

o{ its oil and most of that comes from OPEC producers.

More tharr half of ii flou,s through the Persian Gulf.Industry expelts predict thai bl 2010, the Persian Gulfstates r'r'i11 supply 75,qi of the u'orld's oil. . . and thev'l]rake in $250 billion a vear lu the process.

This is one of the larsest transfers of wealth inhistoryl

Members are recomended to buy oil on thecommodities market or oil company stock selectively.Once again we have picked up oil on the commoditymarket.

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10'n Anniversan

War & MoneyFor U.S investors, Saudi Arabia is one of the mostimportant countries in the world. It is the largest oilexporter containing somewhere betr,veen 25% and30'i',, of the knor'r.n r'vor1d oil suppl,v. When SaudiArabia sneezes, U.S. investment markets catchpneumonla.

The Thousand Year War

if vou don't succeed ihe first time, try and tr1'again.That must be the motto in the Bush family as George

W prepares to take on Saddam Hussein 12 years after

his father had the Iracli army in ruins and let it limphome.

But this war r'r,ilI be vastly different for the UnitedStates, as it..vill influence which direction the UnitedStates will take in its role as a "superpower" -determining u.hether America's power is in ascent or

decline. Certainly, what happens over the next sixmonths will determi.ne much about the investmentmarkets and mav even finally answer theinflation/deflation arguments as forecasted in ourOctober 1999 issue of R.LO News.

If George W Bush invades Iraq, only three things seem

certain: (1) Saddam n'ill be ousted, (2) Muslimslr.'orldwide u,ill have a different opinion of the UnitedStates, and (3) there will be a major shift in the balance

of por'ver to elimi.nate Arab-sponsored terrorism, butalso the keys to the richest landmass in the world -the Persian Gulf.

The Persian Gulf holds more that two-third of the

rvorid's dlr,'indling petroleum reserves and the nationsthat control this region control the future price ofenergy and although softr'vare may be the brains ofthe information age, but petroleum remains its engine.

Oi1 makes up 40'/o of the energy Americans consumeand accounts for 97'i',' of the transportation fuels. It isaffordabie oil that keeps America's transportationsector healthy and their obsession with the automobiiealive.

Did I say oil is affordabie? It might not seem that wavat the gas pump, but the truth is ihat if you adjust lheprice of oil for inflation, it is cheap at the moment.Consider the fact that for a brief period in 1980, oilprices hit $40 a barre[.

If the war against lraq draws in either Israel or otherArab nations or if a U.S invasion into Iraq incitesthe overthrow of the Saudi Royal Family then underthose two scenarios oil could easily rise beyond S50

a barrel prompting inflation. One thing that thestock - and especially the bond - markets can allafford is rising inflation.

Losses in the lO-year US Treasuries issued over thepast year - with their near-record low yields - wouldbe monstrous. It would likely incite foreign investorsto move out of dollars more aggressively than theyhave been, thereby putting even more pressure onthe greenback.

Certainly it is a high stakes game that the Bushadministration is playing. You can almost hear Bush'slittle mind reeling - the U.S Army will roll over Iraqthe wav the Gerrnans blitzed Poland; Saddam's armyand his cache of chemical weapons will be eliminatedwith "extreme prejudice" as well as Saddam himself;in its place a new lraq government will come to power,one friendly to the United States.

If that scenario unfolds, it woulcl certainly cause a

huge, downward correction in oil prices that couldkeep crude below $20 a barrel for years. Furthennore,a quick and decisive victory would demonstrateAmerica's military capability and financial position.

Another gulf victory wouid not only help in the fightagainst terrorists, but would take care of the Bushadministration's first economic priority following the

election - securing cheap and plentifuI energy fotAmerica's future.

10'" Anniversary

Continued Page 16

The Movie Portfolio FundPacific Media & Entertainment network through itsfounder Barrv Josephson has a track record second tonone. As Presiderrt of Worldu,ide Productions at Sony

Columbia Pictures and as an independent producerMr Josephson has o\/erseen the development andproduction of movies n ith revenues of over $2 biliiott,includins: Wi1c1Wild West, Men In Black, Die Hard2, Air Force One, The Fifth Element, In the Line ofFire, The Professional, Anaconda, and Last ActionHero. PME Management has excellent rvorkingrelations with the biggest figures in the entertainmentirrdustry inciuding Bruce Wi1lis, Will Smith, ClintEastr'r,.ood, Harrison Ford and Tommy Lee Jones, to

Title

Men In BlackWilcl Wild WestAir Force OneIn the Line of FireThe Fifth Elernent

High Potential Returns:Barry josephson has been in charge of the development or production of some of

the highest grossing feature films of all time including:

Cost$ Million90

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These success stori.es clearlv demonstrate the potential for mor.'ie investments to generate exceptional profitas r,r.ell as create box-office magic.

name a few. The Fund has a 5-year $i00 millionagreemeni to co-finance a slate of motion picturesproduced by PME.

Ownership of Film Assets: The Fund will takeownership of all available rights on each investmcnt,creating the potential Lo earn revenue on a broaderscale and time period than is normally available toprivate invesiors. [n some case box-office revenuesmake up only 20'/o of final earnings, and ownershipoI rights to assets such as international sales,r ideo/DVD, merchanclising and music can turn a

loss-making movie irrto a profii.

Worldwide Revenue$ million

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10" Anniversarv

William Gray

US Dollar Volatitrity to Continue!,Ar-L orderly depreciation of the clollar, is what theworld hopes for. A lower doilar would help ease

America's dept burden, it worild lower the currentaccount deficii and it would give Americanmanufacturers a little boost in global cornmerce. Buthoping for something doesn't make it happen.

History tells us that U.S. dollar has only has begun itsdownward decent. On a broad trade-weighted-basis,the dollar (in real terms) has fallen from its early 2001

highs. In a full-blo\,vn current account adjustment, a

drop of around three times that magnitude can be

exoected-not all that different from the 30% rcaldeoreciation of the dollar that occurred in the late1980s when the current-account disequilibrium wasfar less acute. In the end, a lopsided world has nochoice other than to accede to a weaker dollar'

We note that the last time the dollar began a seriousdecline rvas before Alan Greenspan became Fed chie{and r'r'hile the U.S. stil1 had a positive net overseascredit position. Until the mid-80s, more was owed tothe people of the U.S. than was owed by them' Now,Americans are about $3 trillion indebted to the rest ofthe worid and go deeper into debt by $1.7 billion everydu,v.

But what did investors think? Did they think theworld's financiai system could get further and furtherout of sync? Asia's balance of trade rvith the U'S' isgetting more and more lopsided r,vitir China's exports,for example, growing at almost 1A(1,, pet year. Reserves

of dollars in that part of the world are piling up.Alreadl' estimated at more than $1 trillion, they'rerising by 20fi per year.

Meanlvhile, the dulcet voice of dept has seducedmillions of Americans ir.rto ruining themseh'es' Since

7975, for example, personai bankruptcies are up 400'/o.

Foreclosures have risen 350%.

The Doliar Standard s}'stem-which allowedAmericans to spend money thev didn't have-workedso well; people saw no reason it should ever end. Why

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10'n Anniversary

a disastrous influence over international capitalflows. As it stands currently, America borrowshundreds of billions of dollars from foreigners everyy ear and racks up half-a-trillion-dollar trade deficitsevery year, without ever worrying about when ifever, the rest of the world will tire of funding a

Texas-sized capital requirement. But the Day ofReckoning may yet arrivi, even if-like BritishRail-it does not show up exactly when it is expected.

Officially, the U.S. has a GDP of about US$ i1 trillion,while China's GDP amounfi to US$ 1.1 trillion and

India's GDP. Neither do the G7 countries have a GDPten times larger than the emerging Asian countries.

According to The Economist's World in Figures 2003directory China ranks as the world's largesi producerof cereais, meat, fruits, vegetables, rice, zinc, tiry andcotton. It is the world's second-largest producer ofwheat, coarse grains, tea, lead, raw, woo1, major oi1seeds, and coa1, the world third-largest producer ofaluminum and energy, and ranks between fourth andsixth in the production of sugar, copper, preciousmetals and rubber.

However, if we consider that China is already theworld's largest manufacturer of textiles, garments,footweag, steel, refrigerators, TVs, radios, toys, officeproducts and motorcycles, just to mention a fewproduct lines, and if we then add the industrialproduction of Japary Taiwary South Korea, and India,we get a totally different picture of the size of theAsian economies than is suggested by statistics.

William Gray

as of 14-]un-2005

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Mar 05 Mav 05Tul 0-1 04 Nov 04-IJ r

23.96% We Still Predict the Yua6:fn Float!

To date our China Strategv has been very successful.Specifically, the strength of the Chinese Yuan continuedto grow. Although this cannot be reflected in theerchange price of Lhe Yuan-because of China's currenrycontrols-the increasing exchange value is obvioussurplus with the United States.

In the first seven morrths of 2003, China recorded a

$6.1 billion trade surplus, with exports up 33.4/,, to$22.8 bil1ion. Interestingl-v, domestic demand has alsostrengthened this vear, reflecting China's growingstatus as an economic por'ver. Imports were up 42'/o

over last vear in the first seven months.

For our purpose, the strength of China's economv-both the export econom)/ and the import economy-indicates that demand for energy in China is rising.That bodes r,r'ell for our stock picks, which are allenerg\ relatecl. At the time of r'r:riting, my picks areas {ollolr s:

UIDATE: l0-OciCompanv Symbol Buy $ Current $ ReturnPetroChina PTR $28.40 $36.9 23.04%

The tr,r,o China irLdexes I follow for comparativepurposes-the Bank of New yorks Chinese ADR indexand the p61ar Jones China 88 index-are up to 4/o andflat respectivelv.

The ADR index is up, r,r.,hile Chinese stocks are flat.This mav be because US investors see Chinese stocksas a \vay to hedge against the weakening do1la4 as

we forecasted months ago. Meanwhile, the stocks Irecommend in my Strategy Report are outperformingthe market for Chinese ADRs because they wereundervalued and have strons individual investmentcharacteristics.

To clear up any confusion, here again is why I believethe Yuan must soon float freely, when it does, it willalmost surely strengthen versus the US Dollar.

First, the Chinese Yuan is the most undervaluedcurrency in the rvorld, trading for about half of itstrade exchange (or purchasing power parity) value.No currency has ever been able to maintain this kindof disequilibria in history.

Suggesting that the Yuan will not appreciate is akin-financially-to suggesting that gravity doesn't exist.

Second, because of China's currenry-value advantage,via its capital control laws, Chinese exporters are,and have been, experiencing huge $rowth. The resultis large inflows of U.S. dollar reserves into China'sbanking system. China holds 5300 billion + of suchmoney and is taking in about S50 billion more perquarter. These inflows of capital have already beguna property mania in parts of China

When an economy is growing rapidly the value ofits currency should rise. When the governmentdoesn't allow the value of the currency to rise, assetprices must rise.

Either asset prices or currency prices, or both, mustadjust to the growing strength of the Chineseeconomy,

(If you'd like to double-check my facts on this matter,there have been dozens of articles from majoreconomjsts published in the Financial Times and theEconomist since my China Strategy was publishedback in June).

Third, the U.S. has begun to lobby heavily for anadjustment to the value of the Yuan. As China's mostimportant trading partner, the U.S. demands cannotbe ignored for long.

Fourth and finalty regardless of China's politicalleadership, as a member of the WTO, China mustfloat the Yuan by 2008. If it remains pegged at thesame price level until then, there will be a massiveasset bubble in China, which would result in a hugeappreciation of the shares I've recommended buying.

I have taken profits here for RIO Portfolio as this isa low risk fund and as such I must take profit andmove to safety.

However, I recommendecl several members to holdthese stocks which they have to their adr.'antage. Thesemembers are prepared to accept the extra risk.

If you are jnterested in our stock picks please e-mailus.

William Cray

10'" Anniversary

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Is Caribbaan Property Under Valued?We Say Buy Bahamas!

\A,rhenthe Bahamas:decided early on to comply withthe OECD's wishes to rlrui* tax information, severalbanks and trust companies immediately closed upshop and left. This caused an exodus of both peopleand money from the banks-and many clients whohad set up residence in Bahamas went with them.(Jtrst to be clear, this exchange of tai and accountinformation is not currently underway. fhe Bahamasonly changed banking lawi to accommodaie thepossibilitv of such an exchange. They have agreed toimplement changes onlv when the rules are acceptedby-and applied to.-all OECD member countries andtax har ens).

.\s a resuit, there was a glut in the condo market, sincemanl tenrporary residents who were offshore bankingclient: had purchased condos and then rented themoul much of the yeii. i spoke with one Bahamiancorrdo o\\'ner who used to enjoy a good occupancyrate at 51,500 per month. Now he has to lorver ihereul to $900 to get a tenant. This drop in rental processwas follorved by a drop in sa-les prices,

Rieht now for exampie. a nice serni-furnished one-b"iroorn, one-bath rancir-sryle condo il Nassau Eastcosts $73,000. A one-bedroom condo jn Nassau'sfamous Cable Beach (but not on the beach), lists for$99,000. And a fully furnished two-bedroomtor,r'nhouse in a gated community u-ith a pool offVillage Road costs $125,000.

On the consiruction is the l'irst phase of developmentai the 75}-airerTobago Plantations resott in thesotrtlrrvestern iornei,of this idyllic tropical island,

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r,vhose rain-forest shelters some f00 species of exoticbirds. Described as Tobago's 'first-impressive $E0mjoint venture betu'een Trinidad's corporate giantsAngostura and Guardian Holding-ivith theparticipation of the Trinidadian gor.ernnrent and theHilton Hotel group, r,t'hose sftelr.piece 200-r'oon-r beacl-r

front hotel is alreadr trp and rtrrrrrirrg.

Most of the grand villas linirrg the seashore are or,vnedby oii-rich Trinidadians, for r,r.,hom crime andhurricane-fee Tobago has tradiiionallv been theirexclusive holiday island. ln recent vears, hor,r'er,'er,fluctuations in the international oil n-rarkets haveopened official e,ves to the benefits of residentialtourism, although residence fol foreign o\^rners cancount on an income from their inr.estment in theirabsence bv letting their properties through the resort'sestablished holidar rentals protram.

Apartments priced from US$ 230,000 upr.r'alds; a housewith a plunge pool in one of the 'Villa Clusters'scattered round tlre re-ort, rr'here price- rarrge f rornUS$ 235,000 for tr,vo bedrooms to US$ 425,000 for threebedrooms; or a custom-built villa in one of six designson one of a number of lalge plots; 1ot ptices varv fromUS$ 245,500 to US$ 440,700 dependir-Lg on size and

r .llocatiory and the construction costs from US$ 373,700up to US$ 583,100.

Having just returned from nrv third trip to thls -L-egior-r.

I have secured several investment opportunities.

We sre cttrrently ptttting together an inaestntentpackage with holdings here.

1C'n Anniversarv

Recent Trades Executed for:RIO Wortd Wide Opportunities & RIOPortfolioCurrency trade executed on 25th March 2004

RIO World Wide opportunities our regular investmentfund sold USD to Sterling at 1.8087 selling 80% otUSD cash held. I feel there is a lot of support forSterling at this level.

For RIO Portfolio, the club's lump sum fund alsoacquired Sterling at 1.8087 selling 20% of its USD cash

position duplicating the same trade.

The above trades rn'ill produce a positive gain for bothfunds, I predict the US Dollar to move to 1.845 in aweek or less. The reason for the percentage allocationvariation within both funds is because the risk profileof each fund is different.

Currency trade 2.73% profit in two months

We are huppy to report that we soid Dollars to Yen on07 November 2003 and then reversed this position on08 January 2004. These dates are the high and lowover the period and r,r,'e were therefore able to see a

good proiit of 2.73' ,

This trade *as,p]aiei1,.,for.,,th. -:'WoildwideOpportunities Fund confirmation of which is reflectedin the performance of the fund. This is available ono.r, *"b site, www.therioclub.com

sirrgupor" i*tt"", toi i, tr d,ags

This trade does not relate to both functs, just the RIOPortfolio, because this fund was launched to takeadvantage of direct stock holdings from time to time.

On 28 lanuary 2004 we sold 5%of the US Dollar cashheld within the fund and purchased Singapore Airlinesstock at a price of 11.3015. This purchase was actuallymade whilst I was in Dubai on my way back to Jakarta,I am always looking for investment opportunities.Had I waited until my reburn this oppoitunity maywell have been lost.

It also ensured that the upward trend of the RIOPortfolio Fund is mainLained.

William Gray

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10'n Anniversary

RIO Club UpdateNo Increases, no matter what!

I nsli hr tiorra I investment house, Ha nsard Interna tionalLtci., has increasecl their charges by 0.25'/n. Like manyirrr e.tment companies, the order of the day seems toL.e ino.easirrg charges yel. again.

1\-e are proud to be among the few that have keptour fees at the same level of 0.75% p.a., since ourhumble beginning in 1995. When I founded the RIOCiub, one of my goals was to keep the charges to theinvestor low Unfortunately, this is becoming sadlyunique in this industry today.

I promised investors no increase in managementfees in 2004, and there will be none! A man, in myopinion, is judged on his word and I will not breakmine to the investors who have put their trust in me.Many of you who know me will bare witness to "myword is my bond" attitude. The extra cost will befunded from the Rio Club fund ma;ragement fee, and

Many members have asked for our option trades lobe featured irr our RIO News. And as such please seeIrades placed on 25,h March 2004, which are still inplace at the time of writirrg lhe article. We solcl USDto Yen @' 106.002 for a move to 104.70 or below r,r hichI anr confident u,e will see before 2nd April 2004.

And sold US Dollar to Sterling @1.8069 move to@1.8400 or above before 11th April. Both trades areLrtilizing our gearing facili$ at X 10. The above tradesaccount for 40% of the total cash held within account.The remainder (60'.7,) is held within the account as USDoliars cash. I am very confident in the success oIboth trades.

Option Account Update

I have already instructed Hansard to deduct theirincreased charge from us, not the investor, periocl!Hence we have effectivelr. gii"'en Hansard 0.25!.i, ofour management fee reducing our fee for mar-Lagingboth the R.LO World Wide Opportunities and RicrPortfolio t y one third ef l'ectir e irnmediaiell.

We intend to keep the fees as they are through 2005,the club's ten year anniversary. I am howeverannoyed to see Hansard International increasing thecost of the facility provided by them to house bothI{IO Portfolio and Worldwide Opportunities Fund.

We mav have to consider closing these funds, shouldthis continue to be the order of Lhe clar.

Both these funds continue to perform, having neverentered negative territory since their launch nearlvthree years ago.

William Grav

Below a Closed position

Currency Trade 4.70% profit in 22 days!

We are huppy to report that rve sold Dollars to Sterlingon 3rd September 2003 and then resen,ed this positionon 24 September 2003. These dates are the high andlow over the period and r,r,'e were therefore able to seea good profit of 4.70,!t, in less than a Month.

William Gray.

10"'Anniversary

l

I met William Gray three years ago, not long after icompany Out Of Obscurity Inc. had launched the MPortfolio Fund. With our own background in finance

Sare-Feb Zmms

A Letter from the Director ofr"Out c

Dear Members of

apparent and our goals have .otl*t"tgud..la little n

The MPF is a good fit for the RIO Group;,ir,it i, u gr1

the movie industry, my partner and I had ietliigd.ithere existed a perfect niche in the investmen!:iri.dlifor a product that would give investors accesi to the m

business. Not only could individuals themse'l1es get cl

to the magic of tie movies, but there are fantastic n

to be made in applying a shrewd investment stratl

this underrated sector, and there was no compiproduct available to investors , ,,

l

:

In searching for partners to market the fund with i

was recommended to me by a friend in"the invetindustry and when we met i realised at once that he,

an unusual individual. I was interested in Bills mar,"e

views on the investment industry, ,ana t it f,

management track record seemed particularly irl

actually is to invest in the movie business;,rSince Imet, I have observed that Bill launched and succe

marketed two groundbreaking funds of his own,funds in the world of their type, and in that t

similarities in our innovative approaches lary€1

breaking financial product giving investors so

different and exciting. Indeed the MPF is t

investment fund in the world to offer in,re,stors:

access to the potential returns of the movie,businean investor in the fund, Bill did voice.'qQme colover the fund's charging structure. At thai,stage wiinherited a standard set of charges via our initial Ia Japanese financial institution, and we',,wereIooking for ways to improve the product for clients.

to that goal was to establish a parbnership with one c

most sriccessful Hollywood produc"tt oi,alt ti-ejosephson, and his company Pacific MeEntertainment. The PME team i, t"sponsibl.e for so:

the biggest movie hits ever including Men In BIa'

Force One and the recent box-office No' t hit, Hit.::r,:r::li:,:t::::::li:liiltllillliiilr

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L0'" Anniversary

RIO Prestige Performance (UK) LtdPromotion at Isle of Man TT.

RIO Prestige tests the market for high performancecar hire at Iile of Man TT the largest M"ot& Cycle RoadRace in the world. Miss UK 2004 representing RIOonce agaih hosts the draw at the everri where th"e firstprize was a Honda 1000cc Fire Blade donated by RIOPrestige Performarrce (UK) Ltd. This gained Missivepublicity for RIO from locai radio, press and TV.

The event attracted 50,000 spectator's and was an idealtest market for the launch of RIO Prestige PerformanceUK Ltd, Picfured below a Honda Fire blade the Starprize.

The 8 RIO,staff who attended the event wereinundated:with enquiries about vehicle hire. Also seen

YBT! GI}IIIEWITthis lnazing 2004 l000ccHOM*FIftEBt$IlE

TIGITTSPRlGElr S2B tlctl0l{$1tr" t0W!

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-M.o/d Iol4itltt aurrtnti{iss tiK,r:ourt$J' of'Th{

iliss UN will &es $e wiRlti[g iiElst 8F fritla! t'ltt !ilns ?004 al ftG 0nndstand lrigr i0 theSenaor r[ $Gre tie sresBmadon pill hlc rlses.

rrri ,!:r::;:i.i - 3{104180$cm Xomda Fire&laderr:.ii-l - fil&lm&rc & l$Alngf$ tro fte uatus 0t €S0t! trorn TA leonanu

i1: !,i ::3irr -[100 0Esh

Bssbt's BssrTent, B0xglas' Tomny lesfiard H0torcyclts. 00uglas "

ThB sidiflqs.Gas$8l0wn.paxl llGflman Psrlsrman€G, frait|sBy.ou8snsllotel, larey.

fsrfullnrrinlonnatino firran fo rnnooorrrtts 0n ffadi0 fi 0t leleEh0ne any 0fli8s3 r$mDsrs: {!7S?4 478}4? 0?634 4igg$$ ' {176?4 485286 ' 876?4 4!t5315

below a Lamborghini Gallardo brought over by RIOwhich attracted further attention to the tvpe of vehicleavailable for hire from RIO Prestise Performance UKLtd. The event was a great succesJand reaffirmed ourresearch carried out eariier in the year that there is astrong demand for performance car hire in the UK.We will take advantage of this demand when we openour new UK office later this year.

We plan to either acquire an established company inEngland with a proven track record in the induitryor simply open a second office in England in the nearfuture.

?lqfi r$ ruEl xl0it$ $inm|t!-8l! rx!!t'l:

4r\tn a .IU ANNIVCTSArV

RIO British Formula 3 & GTChampionship 2Ll22"d May 2005RIO Prestige Performance (UK) Ltd. is proud to be

the Sponsor of the Scottish 1eg of the British Formula3 & GT Championship, being the largest motor sportevent in Scotland'lr'ith 250 competitors meeting onMay 21 and 22nd. Over 6.5 Million viewers are expected

to rt,atch the event on TV

Many Formula 1 drivers have cut their teeth in thisevent, for example Jenson Button and Nelson Piquet.Indeed many of the drivers will be competing at Le

Mans.

The current Miss Scotland continues to represent RIOand is to present the r,r,inners prizes at this eventpromoting RIO Prestige Performance UK Ltd live onTV

Members who have already invested in the RIO

1,,

Rt0

Prestige Performance Fund should note that this eventwould have a positive effect on our already successfulr ehicle hire marketing campaign no,^ running inScotland. We continue to see an increase in ourperformance vehicle rental as summer approaches.Bookings are already coming in for ]uly, and August'This trend u'ill almost certainlv be enhanced bysponsoring this event.

We also have sponsored Scuderia Ecosse who havetwo Ferrari 360's entered and favourite to win.

For those members interested in the RIO PrestigePerformance Fund, please contacttherioclub@cbn.net.id immediately for moreinformation and the necessary subscriptiondocumentation.

.."='F=l.=

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General N{anager of Rio Prestige and Str-rart Roden the Director of Scuderia Ecosse

10'n Anniversary

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RIO Club goes Asia \Mide

For the past ten years, the RIO Club has been forgingthrough ihe quagmire of the "Offshore Inr.estmentCompanies" world, challenging and indeed changingthe way that clients invest their hard earned cash.William Gray sent a message to the average Brokersin Asi4 almost all the products offered in the offshoremarket are over charging the investor.

Bill started to design and build his own cost effectiveproducts for his clients. It was a massive task - atfirst other Companies did not take him seriously,but he made enough noise and soon he was buildinga solid and dependable reputation for himself. Now,ten years later, he is the director of the RIOInternational Investments Ltd. and Fund Managerof more than six RIO funds which are among themost innovative and cost effective investment fundsin the world.

I believe that Bill has fulfilled his desire to introducegood, honestly priced investment opportunities to hisClub members and ultimately the rest of the offshorelr.orld. I met Bill in Florida in2002 at the International

inr.estment performance ar,r,ards conrrention, j askeclBill if i could assist him distributc the RIO Group'sProduct range Asia u.ide. I realisecl that thrs r.r,as a

fantastic opportunit,v to belong to something that l.asgoing to be enormous. In fact I have recentiy i-.ecomea\rare of some of RIO's ciients r,vho reaffilrned this.

The market in Asia has enormous potentiirl forinvestment gror'r'th. RIO has alreadl. designed three"niche products" as Bill shon's an exceptional sl<ill todesign cost effective, special boutique. products forhis investors, the Asian Market is ripe for thosc tvpcsof investment products.

Remember the RIO Motto. Many people tnlkabout success.We prefer to be successfiil and let other peopletalk about us....

Andrew PeateTokyo

posite

-l r\lnI U ANN IVCTSA T\

A Portfolio Manager:Is Worth his weight in Gold!RIC Clr-rb Fund manager, lVilliam Grav manages myinvest portfolio, and has done for the past seven vears.I have benefitecl from his innovatir.e ideas and hishard

"vork putting ihose ideas ir-rto practice, and from

his trpenness ..rnd friendship during this time. Likernarrl'RTO Club members, mv initial inrrestment r.vithBill reiated to Hansard Intemational Ltd. r.r'hich),ieldedlittle better than average results, as do most investmentopportunities marketed to expatriates. Bill, in hisdefense was correct; it is much more cost effectiveto invest directly into RIO's own funds.

Bill has alr,r'avs spoken out about the high charges ofmost corrrpanies and has constantly been trving to getthen-r reduced. I understand that his job as a portfoliolnanager is tLr l'etuflr a profit, so high charges are a bigrres,rlir e [,rr him Bp:rirro in min,-] thrt rvhen heincorporated the RiO Propertv group I was skeptical;rs it rn,as less than one vear old and I didn't knolveither Bill or tire RIO club rvell. After rvatching Bill fora lrg3r-, I realized that r.r.hat he said to me at the outset11 .1r .1[.1rI Lrtelr c.rrrect.

In tire fall of 1998, Bill's advice led me to invest intothe ItlO Propert,v Group Ltd which did verv well,palticulariv in light of the market developments atthe start of the decade. I have since mo'u'ed my capitalinto other proven RiO funds, u,hich har.e also done1ig11' 1ygll. In fact recentlrt RIO has put together the\\/or:ld's First Mutual Fund to offer the investor theopportunitv to inr-est into the extrernely lucrativePrestige Performance Car Hire Market. The fund r,t'as

laurrched h August 200,1, and I am pleased to say thatI have just invested into this fund.

RIO's work with the Property portfolio proved thevalue of pooling investors'assets into a soundinvestment vehicle. They did excellent groundworksetting up and pushing though the program, and inpromoting and selling it. I have seen Bill at work inthe same manner with all the RIO direct funds.

I have truly benefited from investing in RIO Funds.The future of RIO International Investments Ltd islooking secure with the addition of the new Isle ofMan office, and RIO looks set to provide an evenhigher level of service to their membership.

I trust RIO to not only keep up the good work, butmore importantly I trust them with my wealth, andmy financial future.

Dr. John Armon.

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and foresightFor those of you who have been with RIO for some

time might aiready know what I am commenting on

in the flllowing article. But for those of you who

haven't, or you iceptics out there, the facts speak for

themselves.

William Gray the founder of The RIO Club has been

managing ciients funds for over 10 years now' and

durn[ thit time, Bill has made, no eamed, a big boast'

"No RtO fund has lost money since their inception'

That is some boast' But can he substantiate it? Yes he

can." Not only can he substantiate it, but also he has

been able to iorecast some of the most remarkable

investment opportunities of this decade, which many

investors havb benefited from, some enormously'

For instance, in the February of 2002 issue of RlO

Quarterly News the advice that RIO predicted that

Gold was a"bestbuy" l It was trading then at US$ 281

an ounce he also warned that the US Dollar would

lose value against all major currencies his

recommendation "buy Sterling and Gold"' Those ofyou who bought have a lot to thank Bill for' Many

Lembers solJ Gold when he recommended to at

around US$ 400 an ounce before the herd watching

CNBC finally bought in to the trade' Those of you

who didn't take hii advice must be asking yourself

why? Another example of this might be seen in the

October of 2003's issue titled Opportunitv Realised'

that gold will breach the US$ 400 mark when there

*o.rii be an overwhelming short term influx of gold

buyers, and there wasl

Bill was perhaps the first to predict that the mighty

US Dollar *o.ttd decline against not only gold but

against all major currencies except those which were

p[gg"d. RIO bombarded the membership within .litment warnings that the US Dollar was to decline'

And how it has declinedl I doubt if there is a man'

woman or even child in the US that does NOT know

this. But for the Members of RIO, Bill also gave the

reasons for that imminent decline as well, quantifying

the recommendations; this is not just a flash in the

pan stt'le of fund management, but also a ProvenicientiJic approach, whicircan be attributed to a sound

investment management comPany'

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FHe predicted the UK property market boom in Januarl'1.997 incorporating The RIO Property Group l-id' totake advantage of this putting together a remarkabie

commercial pioperty portfolio offering those members

a guarantee of capital in Sterling' This investment

offered a fixed return far in excess ot anythrng seen

in the market at that time; even todav one would be

lucky indeed to find anything that couid compare to

what rt'as offered.

Another RIO first was theg% fixed income opportunitv

in Sterling ihat has again underlined RIO's pro\-en

track reco"rd. The RIOFixed Income Bond launched

in April ol2002 is arguablv the best-fixed income

product in the offshore market and u''as fullvsubscribed by july 2002 in a11but a few months a

testament to market knor'r'ledge right product, right

time.

Bill told the Membership about theg% Fixed Income

Bond product in RIO's FebruarY 2002 Ner'r's Letter'

Members often ask us if it is possible to get in now'

From time to time members have to liquidate their

assets for various reasons. On the 15th of March I bore

witness to one member who asked to liquidate his

holdings as he was repatriated and needed to purchase

a property in his home country. And asked, was iteasy to re-sell his investment in the fixed income bond?

Our arrswer was yes! It was sold to another member

within 5 days of his instruction to put it on sale' The

client was free to buy his new home with the proceeds'

Our flexibility is yet another reason that sets RIO apart

from the othbr lnvestment Companies we care about

our members.

Andrew Peate - TokYo

J.

10'n Anniversarr