Global Equity High Alpha

2nd Quarter 2008

Four Embarcadero Center, San Francisco, CA 94111 T:(415) 954-5400

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Overview

The RCM Global Equity High Alpha strategy aims to achieve capital growth principally through investment in global equity markets. To achieve this objective the strategy consists of diversified portfolios of companies selected from a cross-section of both geographical areas and economic sectors.

Investment Process

• Our philosophy and process aims to add value in three key areas, namely stock selection, portfolio construction, and implementation.
• The Global Equity team draws upon the insights of RCM’s Global Dual Research Platform to identify attractive companies that exhibit greater than market growth prospects, realistic valuations relative to their peers and high quality business models.
• Global cross-border sectoral analysis is an integral step in the portfolio construction process.
• The team’s goal is to build integrated portfolios on a bottom-up basis, comprising the best companies in the world.
• Working in a team-oriented meritocracy, our investment professionals focus on constructing portfolios offering attractive risk-adjusted returns.

The RCM Advantage

• Innovative dual research platform – producing bottom-up stock selection:
  • Fundamental research analysts specialize in their sector of expertise
  • Proprietary Grassroots^SM Research* network with 50,000 industry contacts and approximately 300 independent reporters and field force investigators
• Institutionalized investment culture
• Consultative client relationships

Performance**

Representative Account Characteristics^† - Supplemental Information

Beta 1.0 P/E (Next 12 Mo. EPS) 13.8x Earnings Growth (Next 3-5 yrs) 14.5% P/E (Next 12 Mo.) to Growth (Next 3-5 yrs) 1.0x Wgtd Avg Market Cap US$75.5 billion Number of Holdings 70

Top Ten Holdings Nestle SA 2.4% East Japan Railway Co 2.4% Shoppers Drug Mart Corp 2.3% Exxon Mobil Corp 2.1% Bayer AG 2.0% FPL Group Inc 2.0% Inmarsat PLC 1.9% Transocean Inc 1.9% Total SA 1.9% Apple Inc 1.8%

Sector Composition (% of Portfolio and Benchmark)^† - Supplemental Information

Regional Allocation (% of Portfolio and Benchmark)^† - Supplemental Information

Performance Composite Statistics

Global Equity High Alpha – UK Sterling
Period	Composite Gross Return (%)	Composite Net Return (%)	MSCI World Index Return (%)	No. of Accounts	Composite Dispersion (%)	Period-End Total Assets (£ M)	Total Firm Assets (£ M)
2007	18.9	17.9	7.2	8	1.122	1,150.8	114,212
2006	7.0	5.6	5.3	5	1.086	674.5	84,243
2005	31.8	30.1	22.5	3	N/A♦	405.7	85,934
2004	4.5	3.8	7.0	4	N/A♦	355.4	66,895

Global Equity High Alpha – USD*
Period	Composite Gross Return (%)	Composite Net Return (%)	MSCI World Index Return (%)	No. of Accounts	Period-End Total Assets (USD M)	Total Firm Assets (USD M)
2007	20.95	19.91	9.04	8	2,290.69	168,131
2006	22.0	20.4	20.1	5	1,320.15	164,876
2005	17.9	16.3	9.5	3	696.45	147,527
2004	12.1	11.4	14.7	4	682.42	128,432

*Grassroots^SM Research is a division of RCM.  Research data, used by Grassroots^SM Research to generate recommendations, are received from reporters and field force investigators who work as independent contractors for broker-dealers. These broker-dealers supply research to RCM and certain of its affiliates in connection with brokerage services that is paid for by commissions generated by orders executed on behalf of RCM's clients.

 

** Past performance is no guarantee of future results. Individual performance will vary. RCM (the “Firm”) is a global investment advisory organization, consisting of separate affiliated firms, which operates under the brand name RCM. The affiliated firms that comprise the Firm include RCM Capital Management LLC (“RCM Capital”), an investment advisory firm registered with the Securities and Exchange Commission, which has been in operation since 1970, either directly or through its predecessors. RCM Capital presents the Global Equity High Alpha strategy in the United States. RCM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). To obtain a list and description of all of the Firm’s composites, please call 415-954-5400 or write to RCM, Four Embarcadero Center, Suite 3000, San Francisco, CA 94111.

 

^†   The Representative Account information is for illustrative purposes only and reflects one account within the composite.  Rounding may cause figures to vary from 100%.  Portfolio holdings and sector composition are subject to change without notice and should not be considered a recommendation of any particular securities or investment strategy. The representative account characteristics and sector composition data are supplemental to the composite returns in the GIPS compliant presentation shown above and are not covered by the report of the independent accountant.

 

♦ Standard deviation is not considered statistically meaningful when there are fewer than five accounts in the composite during the period.

 

*The returns in this presentation were obtained by converting the currency for the composite returns from the UK Sterling to US Dollars and therefore include the effect of the currency rate of exchange.

 

The composite was created in December 2004 and contains all actual fee-paying, discretionary Global Equity High Alpha portfolios. Gross returns were calculated on a total return basis, including all dividends and interest, accrued income, realized and unrealized gains or losses, are net of all brokerage commissions and execution costs, and do not give effect to investment advisory fees which would reduce such returns. Net returns were calculated on a total return basis, including all dividends and interest, accrued income, realized and unrealized gains or losses, and are net of all brokerage commissions, execution cost, and investment advisory fees. Some of our composites may contain single asset segments that are carved out of multiple-asset portfolios. Multiple asset portfolio cash flows are allocated to the carve-out segments pro-rata. Unless otherwise noted, performance results and valuation presented are in UK sterling. Stock markets performed exceptionally well in 2005, and the accounts in the composite benefited from that performance. Currency hedging may be effected as a normal part of the discretionary investment management process if it is considered beneficial in order to minimize exposures to fluctuations in exchange rates prevailing between the different country currencies and the portfolio base currency. Composite returns include any benefits or costs of such currency hedging transactions. Composite performance is net of any applicable withholding taxes on dividends, interest income and capital gains. Returns include the effect of foreign currency exchange rates. Unless otherwise noted, index returns are presented as total returns, which reflect both price performance and income from dividend payments, if any, but do not reflect fees, brokerage commissions or other expenses of investing. The MSCI World Index is a global index of equity prices based on 1,375 shares from 19 countries and covering roughly 60% of the market capitalization of world stock exchanges. It is not possible to invest directly in an index. The dispersion of annual returns is measured by the standard deviation across equal-weighted account returns represented within the composite for the full year. The standard fee for this product is as follows: 1.00% on the first $30 million (USD), 0.60% on the next $70 million, 0.40% on the next $100 million and 0.35% on the balance of assets. Actual fees may vary depending on, among other things, the type of client and the amounts of assets under management.

 

 

All data as of June 30, 2008, unless otherwise noted.