PCM Asia Pioneer Fund

Strive for picking “RISING STARS” in Asia Sept 2008

 AGENDA

• Hedge Fund in Asia and Rising Star Concept

• Investment Philosophy, Objective, & Process
• Asset allocation & Performance Analysis
• Fund Details
• Company Overview

• Appendix
– More on Investment Process
- Biography of Key Members

For Professional Investors Only 2

 ECONOMIC CONDITIONS IN ASIA

STRONG MACRO MOMENTUM HEALTHY MICRO ENVIRONMENT-

Improving Fundamentals for Most Asian
Corporations

• Robust Corporate Earnings Growth: 14%

EPS Growth in 2007
Strong Export
High GDP Growth
Growth
• Stronger Balance Sheets: Lower Debt
Ratio, Higher Cash Level, etc…

• Increasing Understanding of Shareholder

Value, Corporate Governance &
Increasing Foreign Transparency
High FDI Inflows Exchange Reserve
• Improving Capital Utilization

• From Family Monopoly to Professional

Management
Increasing Domestic Low Inflation
Consumption Environment Broaden high quality investment
universe

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 ASIAN FINANCIAL MARKET

Rising Equity Market Capitalization In Asia Development of Asia Fixed Income Markets
(Billions US dollars) (Billions US dollars)

11,838 380
12,000
400

10,000 350
7,524
300
8,000 237
221
250
6,000
5,043 4,955
3,853 3,997 200

4,000
150

100
2,000

50
0
1996 1998 2000 2002 2004 2006
0
2000 2002 2006

Source: World Federation of Exchanges Source: Bank of International Settlements

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 ASIAN FINANCIAL MARKET

Growth of Derivative Financial Instruments Traded Notional Amounts Of Outstanding of

On Organized Exchanges - In terms of turnover value OTC Equity-linked Derivatives
(Billions US dollars) (Billions US dollars)

137,701 532
600
140,000

120,000 500

100,000 400

80,000 56,410 56,933

300

60,000
200
40,000
9 28
100
20,000

0
- 2000 2002 2006
2000 2002 2006

Source: Bank of International Settlements

Source: Bank of International Settlements

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 BOOST OF ASIAN HEDGE FUNDS

Asian Hedge Fund Growth Over the Years

Source: Eurekahedge, Key Trends in Asian Hedge Funds, March 2007

For Professional Investors Only 6

 HUGE INVESTMENT OPPORTUNITIES FOR
ASIAN HEDGE FUND MANAGERS

• Strong economic growth across Asian countries like China, India,

etc…

• Relatively inefficient compared with western markets

• Improving width and depth of Asian financial markets in recent

years
– Creating a more favorable investment environment for hedge fund managers

• Asian hedge fund is still in the early stage of development

– More and more talented traders, long-only or hedge fund managers are
entering the hedge fund business

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 “RISING STAR” CONCEPT (I)

LARGE IS BEAUTIFUL?

• Recent study concluded that smaller-sized hedge funds significantly outperformed

larger ones

USD 100 - 500

! USD 100 millions > USD 500 millions
millions

Annualized return 15.46% 12.50% 11.93%

Annualized standard
deviation 6.31% 5.89% 5.72%

Source: “Examination of Fund Age and Size and Its Impact on Hedge Fund Performance”, Derivatives Use, Trading &
Regulation, Feb 2007, PerTrac Financial Solutions

For Professional Investors Only 8

 “RISING STAR” CONCEPT (II)

LONGER HISTORY IS SUPERIOR?

Young hedge funds showed superior risk adjusted return to older funds in the
study
Annualized Return

20.00%
Young Funds
(0-2 years) Mid-age funds
16.00%
(2-4 years)

12.00%
Older funds
(4 years above)
8.00%

4.00%

Annualized
0.00% Standard Deviation

5.90% 6.10% 6.30% 6.50%

Source: “Examination of Fund Age and Size and Its Impact on Hedge Fund Performance”, Derivatives Use, Trading & Regulation, Feb
2007, PerTrac Financial Solutions

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 “RISING STAR” CONCEPT (III)

DOES A FUND’S AGE MATTER?

Sharpe ratio versus age Average monthly hedge fund returns by age &
coincident average returns of the S&P500 and
Lehman Aggregate Bond

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 PCM ASIA PIONEER FUND

INVESTMENT PHILOSOPHY

! Strong economic growth in Asia provides enormous investment opportunities,

especially in emerging markets such as China, India, Indonesia, etc…

! Talented emerging hedge fund managers can extract “Alpha” in such relatively
inefficient emerging market.

! Proper diversification and stringent risk management are of utmost importance for
success.

PCM Asia Pioneer Fund strives for picking

“RISING STARS” in Asia

“ASIA + RISING STAR”

For Professional Investors Only 11

 PCM ASIA PIONEER FUND

INVESTMENT OBJECTIVE

! PCM Asia Pioneer Fund is a fund of funds investing in Asia (ex Japan)
hedge funds. While the Fund will invest into certain conventional hedge
fund strategies, it will also include some relatively aggressive strategies to
capture growth opportunities and diversify further.

! The Fund seeks to FULLY capture Asian market upside with approximately
HALF the volatility involved and 1/3 of the downside risk.

! Target Annual Return: 14%-18%

! Target Annual Volatility: 7%-9%

For Professional Investors Only 12

 INVESTMENT PROCESS – TOP DOWN

Our investment approach is a combination of top down and bottom up approach

TOP DOWN APPROACH

MACRO ECONOMIC EVALUATION
• Economic cycle • Credit rating outlook
• Equity market valuation • Corporate earnings growth
• Liquidity • Corporate activities level
• Yield spread

STRATEGY RISK & REWARD ANALYSIS

• Evaluate Suitable Strategies with Favorable Risk/Reward
• Assess Potential Risk Via Scenario Analysis

TATICAL STRATEGY &

GEOGRAPHICAL ALLOCATION

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 INVESTMENT PROCESS – BOTTOM UP

BOTTOM UP APPROACH

Phase 1 Phase 2 Phase 3 Phase 4

Manager Quantitative Manager Selection Risk Management

Identification & Qualitative & Portfolio & Continuous
Analysis Construction Monitoring

Managers Filtering Undergo thorough Select outstanding Perform risk analysis

due diligence managers that fit into study, active
process with our investment monitoring and
potential Managers philosophy. Construct review of portfolio
optimal portfolio

No. of Funds : No. of Funds : No. of Funds :

1000 " 350 350 " 170 " 50 50 " 20+

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 PCM PROPRIETARY SCORING SYSTEM

Information Edge
&!

$
Return Profile Analysis Edge
#

"

Risk Management Decision Edge

Investment Process

Scoring Criteria
•People
-Assess CIO, Portfolio Manager, Research
Analyst’s Investment expertise
• Process
-Evaluate the soundness & repeatability of
investment methodology NO
NOINVESTMENT
INVESTMENTWILL
WILLBE
BEMADE
MADE
• Risk Management WITHOUT
WITHOUTAN AN
•Quantitative ON-SITE DUE
ON-SITE DUEDILIGENCE
DILIGENCEMEETING
MEETING
-Numerical Analysis to show Fund’s
Characteristics

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 PCM 3-Level Risk Management

INVESTMENT • On site investment due

diligence
RISK • PCM Proprietary scoring system
LEVEL 1

OPERATIONAL • Detailed operational due

diligence
LEVEL 2 RISK

• Stringent risk management

PORTFOLIO guidelines
• Statistical portfolio
RISK optimizer
LEVEL 3

For Professional Investors Only 16

 ASSET ALLOCATION – Rising Star

“Rising Star” in our portfolio is generally characterized by,

! CIO has proven track record in managing asset for other institutions.
! CIO has experienced various market cycles in own specialized area.
! Risk awareness is high which translated into rigorous risk management
commitment.
! Owned by a few key persons who put substantial personal wealth in the fund.
! Passion in investment and strong desire to succeed.
! Relatively small in scale but properly set up infrastructure.
! AUM in the fund grows rapidly.

Key
KeyFacts
Facts

!
! On
Onaverage
averageCIOCIOof
ofeach
eachfund
fundhas
hasover
over1818years
yearsof
ofexperience
experienceinin
the
theindustry.
industry.
!
! About
About11out
outof
of10
10funds
fundswe
wevisited
visitedfits
fitsin
inwith
withthis
thischaracteris tic.
characteristic.
!
! Those
Thosewith
withless
lessthan
than33years
yearstrack
trackrecord
recordandandAUM
AUMunder
underUSD
USD
100m account for around 50% of our portfolio.
100m account for around 50% of our portfolio.

For Professional Investors Only 17

 FUND DETAILS

PCM ASIA PIONEER FUND

CLASS A CLASS B CLASS C

MINIMUM SUBSCRIPTION (USD) 1,000,000 100,000 100,000

MINIMUM SUBSEQUENT 10,000 10,000 10,000

INVESTMENT (USD)

SUBSCRIPTION FREQUENCY Monthly Monthly Monthly

SUBSCRIPTION FEE UP TO 5% - -
ANNUAL MANAGEMENT FEE 1% 1.5% 1.75%
PERFORMANCE FEE 10% (High Watermark) 15% (High Watermark) 15% (High Watermark)
REDEMPTION FEE - 5% in Year 1, reduces 5% in Year 1, reduces
by 1% p.a. by 1% p.a.
DIVIDEND - - Twice a year;
4% of the NAV of Oct
& Apr
REDEMPTION FREQUENCY Monthly Monthly Monthly
(With 45 days prior written
notice)
Bloomberg Code PCMAPFA KY PCMAPFB KY PCMAPFC KY

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 FUND DETAILS

SERVICE PROVIDERS

INVESTMENT MANAGER: PCM Capital (International Group) Limited

INVESTMENT ADVISOR: PCM Capital Limited

ADMINISTRATOR: Fortis Prime Fund Solutions

CUSTODIAN: Fortis Prime Fund Solutions Bank (Ireland) Limited

AUDITOR: PricewaterhouseCoopers

LEGAL ADVISOR: Offshore: Ogier

For Professional Investors Only 19

 COMPANY BACKGROUND

• PCM Capital Limited (PCM) is duly licensed with the Securities and Futures Commission (“SFC”) and
is regulated primarily by the Securities and Futures Ordinance (“SFO”) in Hong Kong; to provide
investment advisory and asset management services for investors with focus in alternative
investment tools.

• PCM team had gained rich professional experiences and extensive knowledge in the asset
management and financial service industry, which we believe to be crucial for success for investing
in Global markets and accessing to information.

• We also dedicate to complement our strength by building up alliance with independent specialists
in specific area to ensure that solid infrastructure and quality products can be delivered.

• PCM strives to provide professional services for clientele range from high net worth individuals to
institutions who aim to diversify portfolio risk in investing in alternative asset classes targeting
absolute performance under various market cycles.

• In the future, we will further expand our team in global market with focus in Asia to ensure that
we can ride on the growth of the fast growing hedge fund industry for our investors.

For Professional Investors Only 20

 PCM ASIA PIONEER FUND

Key Benefits for investing in PCM Asia Pioneer Fund

# Generate absolute return by investing in those creating alpha

! Identify talented “RISING STARS” elites

! Dedicate to Asia with emphasis on Greater China

# Manage risk under various market environments

! Control risk through stringent risk management

! Select strategies with hedging against market cycles and those can benefit from market
volatility

! Diversify portfolio in funds and strategies

# Dividend payment (Class C) provides income alternatives for investors

For Professional Investors Only 21

 DISCLAIMERS

The fund of the PCM Capital (International Group) Limited (“Investment Manager”) and PCM Capital Limited (“Investment Advisor”) is an exempted
company incorporated with limited liability under the law of the Cayman Islands. Applications for Shares of the Fund can only be made on the
basis of the current offering memorandum of the Fund. Investing in the Shares of the Fund (“Shares”) involves certain risks, as more fully
described in the offering memorandum. There can be no assurance that the investment objective of the Fund will be met or that its investment
program will be successful. Shares have not been and will not be registered under any securities laws of any other countries or areas subject to its
jurisdiction.

This is neither an offer to sell nor a solicitation of an offer to purchase any securities. Such offer or solicitation may only be made pursuant to the
current offering memorandum of the Fund that will be provided only to qualified offerees. Any investment decision with respect to the Fund
should be based upon the information contained in the offering memorandum of the Fund. Past performance is not necessarily indicative of future
results.

The information and opinions contained in this document are for background purposes only and do not purport to be full or complete. No reliance
may be placed for any purpose on the information or opinions contained in this document or their accuracy or completeness. No representation,
warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this document
by the Investment Manager / Investment Advisor and no liability is accepted by the Investment Manager / Investment Advisor for the accuracy or
completeness of any such information or opinions.

The Investment Manager / Investment Advisor believes that the source of this information is reliable however it cannot and does not guarantee,
either expressly or implicitly, and accepts no liability for, the accuracy, validity, timeliness, merchantability or completeness of any information
or data (whether prepared by the Investment Manager / Investment Advisor or by any third party) for any particular purpose or use or that the
information or data will be free from error. The Investment Manager / Investment Advisor does not undertake any responsibility for any reliance
which is placed by any person on any statements or opinions which are expressed herein. Neither the information nor any opinions expressed
herein constitute a solicitation by the Investment Manager / Investment Advisor for the purchase or sale of any securities or other financial
instruments. Neither the Investment Manager/ Investment Advisor, nor any of its affiliates, directors, officers or employees will be liable or have
any responsibility of any kind for any loss or damage that any person may incur resulting from the use of this information.

The information contained herein is solely for information purposes, is current as of the date indicated above and is subject to change from time
to time. None of the Fund, the Investment Manager / Investment Advisor, or other persons or entities named herein are obligated to notify you of
changes to this information and none of the foregoing assume any responsibility for any loss suffered in reliance on this information. This
information may not be reproduced or distributed in whole or in part nor may its contents be disclosed to any other person under any
circumstance.

For Professional Investors Only 22

Appendix
1. More On Investment Process-
Bottom Up Approach

2. Biography of Key Members

 MORE ON INVESTMENT PROCESS - BOTTOM UP APPROACH
PHASE 1 – MANAGER INDENTIFICATION

Build up Asia Identify managers

Hedge Fund complying with our
Universe: investment
1000+ mandate:
350+

Manager identification through :

• Personal network • Financial news

• Prime brokers/ custodian • Industry journals
• Industry database • Hedge fund manager referrals

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 PHASE 2: QUANTITATIVE & QUALITATIVE
ANALYSIS

Build up Asia Select

Hedge Fund Identify managers Screen managers managers for
Universe: complying with our for due diligence portfolio
1000+ investment and analysis: construction:
mandate: 170+ 50+
350+

Quantitative Analysis Qualitative Analysis

$ Historical Performance $ Investment Due Diligence
$ Risk & Return Analysis $ Operational Due Diligence
$ Correlation Analysis
$ VAR Analysis

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 PHASE 2: QUANTITATIVE & QUALITATIVE ANALYSIS -
OPERATIONAL DUE DILIGENCE

5 KEY ASPECTS:

Background Legal & Compliance Investor Reporting

% Reference check on key % Fund structure % Information quality
personnel % Registration status of the % Responsiveness
% Check license status and fund companies % Timeliness
any complaint, litigation % Service providers % Transparency
proceedings % Documentation checking

Valuation Internal Control

% Valuation policy & process % Soft dollar & personal trading
% Independent pricing sources rules
% Timeliness
% Conflict of Interest
% Organizational structure

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 PHASE 3: MANAGER SELECTION & PORTFOLIO
CONSTRUCTION

Build up Asia Identify managers Screen Select Construct

Hedge Fund complying with our managers for managers for final
Universe: investment due diligence portfolio Portfolio:
1000+ mandate: and analysis: construction: 20+
350+ 170+ 50+

Portfolio Construction
• Around 50+ potential Asian Hedge Funds are selected into our
“Prime-List” after PHASE 2

• PCM’s investment committee will then construct the

portfolio

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 PHASE 3: MANAGER SELECTION & PORTFOLIO
CONSTRUCTION

PORTFOLIO CONSTRUCTION

Final Portfolio
TACTICAL ASSET OPERATIONAL DUE About 20-50 Funds
ALLOCATION DILIGENCE
50+
Focus
PCM SCORING RISK MANAGEMENT
Fund SYSTEM GUIDELINES
Portfolio
PCM PROPRIETARY STATISTICAL PORTFOLIO
OPTIMIZER - ARBITRAGIS

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 PHASE 4: RISK MANAGEMENT &
CONTINUOUS MONITORING

PCM Risk Management Guidelines

PCM Risk Management Guidelines

Diversification Investment Limits Stop Loss Policy

•Investment team will have an drawdown
forecast for each underlying fund under
•No. of Sub Hedge Funds: •Manager Weighting Limit ! 15% normal market situation
-Minimum: 12
-Maximum: 60 •Strategy Limit •If actual drawndown"75% of
-Equity Long-Short: ! 75% Estimated drawdown "Review
•If actual drawdown "100% of
•3-10 Strategies -Other Strategies:! 25% each Estimated drawdown "Stop-loss

Liquidity & Turnover Market Limits Operational Due Diligence

(ODD)
•Target Liquidity: •Individual Asian Markets ! 33%
-50% liquid in 3-month •Greater China ! 60% •All the underlying funds
-90% liquid in 6-month •Pre-IPO and/or Private Equity must pass the ODD test
! 10%
•Target Turnover Range:
-10-30%p.a

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 PHASE 4: RISK MANAGEMENT &
CONTINUOUS MONITORING

Review performance of
existing managers ( Risk &
CONTINUOUS MONITORING
Weekly~
Return, Investment strategy,
Monthly Inter-strategies/ market RISK
correlation) MANAGEMENT

Monthly~ Formal Conference Call to

keep updates of investment
Quarterly views & market comments
PCM ASIA
BOTTOM UP PIONEER FUND TOP DOWN
PORTFOLIO

Yearly Onsite due diligence visits

Communications with the CONTINUOUS

On-going
service providers MONITORING

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 KEY MEMBERS

Norman Chan, Chief Investment Officer

• Norman Chan is the Chief Investment Officer of PCM and is responsible for daily portfolio
management for Fund of Hedge Funds. He leads the investment research team in macro
research, asset and strategy allocation, and fund manager selection. Mr. Chan has 14 years of
professional experience and has been conducting research work on hedge fund including
performing due diligence on global hedge funds since 1998.

• Prior to PCM, Norman was the Investment Director and Responsible Officer for Altruist Financial
Group, leading the investment team to perform macro economic research and asset allocation
for the group. During the four years he was with the company, he was responsible for the
strategic allocation and portfolio management of its clients’ assets and proprietary assets
totalling approximately USD 270 million.

• Prior to Altruist Financial Group, Norman was the Head of Investment Research at Allen Perkins
Ltd., and was responsible for building up its hedge-fund research division in 1998. During the six
years with Allen Perkins Ltd., Mr. Chan personally performed on-site due diligence on over 150
hedge funds in the United Kingdom and the United States.

• Norman graduated from Golden Gate University in San Francisco, California, U.S. with a
Bachelor of Art Degree in Business Economics. Norman has been serving as part-time lecturer
for financial related professional courses for associations and academic institutions in Hong
Kong such as Hong Kong Polytechnic University since years ago.

For Professional Investors Only 31

 KEY MEMBERS

Ivy Chow Wing, Chief Operating Officer

• Chow Wing (Ivy) is the Chief Operation Officer of PCM, oversees the compliance, operation
and finance functions of the PCM. Ms. Chow gained extensive and rich professional
experiences in fund management and investment advisory service in the last fifteen years,
covering mutual fund, unit trust, fund of funds/hedge funds, hedge fund and alternative
investment.

• Prior to joining the PCM Capital Ltd., Ivy was the Head of Operation & Compliance of a
leading hedge fund company, MCP Asset Management Co., Ltd. until the beginning of August
2006, the company managed the assets of funds of hedge funds and hedge funds over USD 4
billion.

• She also worked at a number of international corporations including Yamatane Investment

Management (HK) Co. Ltd., Dean Witter Reynolds (HK) Ltd. and Standard Chartered Bank HK
Trustee Ltd. where she was principally involved in accounting, finance, operation, business &
budgetary planning, compliance, trading of financial instruments, financial asset management,
investment adviser and fund administration.

• Ivy holds a Master degree in Finance and a Bachelor degree in Commerce Accounting. She is a
qualified CPA.

For Professional Investors Only 32

 KEY MEMBERS

Florence Lo, Senior Hedge Fund Analyst

• Florence Lo is the Senior Hedge Fund Analyst in PCM and is responsible for executing hedge fund due diligence
and research process. Florence has over 9 years of experience in financial industry and has been involved in
many research roles including hedge funds, alternative investments and equity markets in her careers.

• Prior to PCM, Florence worked as a Hedge Funds Research Manager in the Alternative Investment Division in SHK
Fund Management Limited, responsible for identifying potential hedge fund managers, conducting manager due
diligence and generating specialized fund of hedge funds research.

• Florence graduated from University of Toronto, Canada and holds a Bachelor of Commerce and Finance,
specialist in Commerce and Finance, major in Economics and minor in East Asian Studies.

Andrew Li, Research Analyst

• Andrew Li is the Research Analyst in PCM and is responsible for executing hedge fund due diligence and research
process. Andrew has 3 years of experience in the financial industry in research roles, portfolio management
and business development.

• Prior to PCM, Andrew was an Equity Research Associate with Lightyear Capital, a Canadian small-caps brokerage
company, supporting the analyst team in research by building financial models and writing earnings
notes. Subsequently, he became an Associate Portfolio Manager with Hemisphere Capital Management, a
Canadian investment counselor, where he conducted due diligence on companies.

• Andrew graduated from the University of Toronto, Canada and holds a Bachelor of Applied Science (electrical
engineering) and graduated from INSEAD, France with a MBA. He is a FRM, CAIA and CFA Charter holder.

For Professional Investors Only 33