Global Asset Class Returns

Below is a table showing how different asset classes performed in terms of different currencies. This table shows year-to-date (December 31, 2008) returns for each asset class.

*YTD 31Dec08*	In USD	In AUD	In CAD	In EURO	In JPY	In GBP	In CHF	In INR
Asset Held
US Bonds	5.04%	25.63%	25.10%	9.96%	-18.20%	32.81%	-1.33%	24.14%
US Prop	-37.05%	-16.46%	-16.99%	-32.13%	-60.29%	-9.28%	-43.42%	-17.95%
US Equity	-37.04%	-16.45%	-16.98%	-32.12%	-60.28%	-9.27%	-43.41%	-17.94%

AUS Bonds	3.25%	23.85%	23.31%	8.18%	-19.98%	31.03%	-3.12%	22.36%
AUS Prop	-71.74%	-51.15%	-51.69%	-66.82%	-94.98%	-43.97%	-78.12%	-52.64%
AUS Equity	-48.30%	-27.71%	-28.24%	-43.38%	-71.54%	-20.53%	-54.67%	-29.20%

CAN Bonds	-11.35%	9.24%	8.70%	-6.43%	-34.59%	16.42%	-17.73%	7.75%
CAN Prop	-56.65%	-36.06%	-36.59%	-51.72%	-79.89%	-28.88%	-63.02%	-37.55%
CAN Equity	-46.39%	-25.79%	-26.33%	-41.46%	-69.62%	-18.62%	-52.76%	-27.29%

Euro Bonds	9.21%	29.80%	29.26%	14.13%	-14.03%	36.98%	2.83%	28.31%
Euro Prop.	-43.25%	-22.66%	-23.19%	-38.32%	-66.49%	-15.48%	-49.62%	-24.15%
Euro Equity	-47.79%	-27.20%	-27.74%	-42.87%	-71.03%	-20.02%	-54.17%	-28.69%

Japan Bnds	26.55%	47.14%	46.60%	31.47%	3.31%	54.32%	20.17%	45.65%
Japan Prop	-34.16%	-13.57%	-14.10%	-29.24%	-57.40%	-6.39%	-40.53%	-15.06%
Japan Eqty	-27.35%	-6.76%	-7.30%	-22.43%	-50.59%	0.42%	-33.73%	-8.25%

UK Bonds	-16.96%	3.64%	3.10%	-12.03%	-40.19%	10.81%	-23.33%	2.14%
UK Prop.	-72.96%	-52.37%	-52.91%	-68.04%	-96.20%	-45.19%	-79.34%	-53.86%
UK Equity	-47.73%	-27.14%	-27.68%	-42.81%	-70.97%	-19.96%	-54.11%	-28.63%

World Bnds	3.41%	24.00%	23.46%	8.33%	-19.83%	31.18%	-2.97%	22.51%
World Prop.	-47.61%	-27.02%	-27.55%	-42.69%	-70.85%	-19.84%	-53.98%	-28.51%
World Eqty	-40.57%	-19.98%	-20.51%	-35.65%	-63.81%	-12.80%	-46.94%	-21.47%
Commod	-37.42%	-16.83%	-17.36%	-32.49%	-60.66%	-9.65%	-43.79%	-18.32%
Timber	-18.89%	1.71%	1.17%	-13.96%	-42.12%	8.88%	-25.26%	0.21%
EqMktNtrl	-17.17%	3.43%	2.89%	-12.24%	-40.40%	10.61%	-23.54%	1.94%
Volatility	77.78%	98.37%	97.83%	82.70%	54.54%	105.55%	71.40%	96.88%
*Currency*
AUD	-20.59%	0.00%	-0.54%	-15.67%	-43.83%	7.18%	-26.97%	-1.49%
CAD	-20.06%	0.54%	0.00%	-15.13%	-43.29%	7.72%	-26.43%	-0.95%
EUR	-4.92%	15.67%	15.13%	0.00%	-28.16%	22.85%	-11.30%	14.18%
JPY	23.24%	43.83%	43.29%	28.16%	0.00%	51.01%	16.86%	42.34%
GBP	-27.77%	-7.18%	-7.72%	-22.85%	-51.01%	0.00%	-34.15%	-8.67%
USD	0.00%	20.59%	20.06%	4.92%	-23.24%	27.77%	-6.37%	19.10%
CHF	6.37%	26.97%	26.43%	11.30%	-16.86%	34.15%	0.00%	25.48%
INR	-19.10%	1.49%	0.95%	-14.18%	-42.34%	8.67%	-25.48%	0.00%

*Results are derived from the performance of Exchange Traded Funds for each country, the Pimco Commodities Fund for commodities, published indexes for country bonds, and exchange rates, and, for world equity and bonds, the performance of a mix of different index funds held in constant proportions. This methodology reflects the pre-tax returns to retail investors in actual index funds, and therefore will differ somewhat from the results published for the underlying indexes themselves.

| 2008 Year End Double Issue: Key Points | This Month's Letters to the Editor: Commodies: Supply, Demand and Equilibrium; Construct of DJAIG; Benefits of ENM in Model Portfolios; Liquidity Reserves; and the Purpose of our Monthly Asset Valuation Update | Global Asset Class Returns | Asset Class Valuation Update | What Will We Tell The Clients? | 2008 Year End Situation and Methodology Update | Product and Strategy Notes: How to Deal with Real Debt Burden; Why He Madoff with Their Money; Great Writing Not to be Missed; Interesting Data Returns; Thought Provoking Research; and New Products | 2007-2008 Benchmark Portfolios - All Currencies |