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					July 2008




RMB Asset Management International Limited is authorised and regulated by the Financial Services Authority in the United Kingdom, and is an authorised Financial Services
                                Provider pursuant to the Financial Advisory and Intermediary Services Act 37 of 2002 in South Africa.
     Bank’s have had huge credit losses / capital raisings



                           Bank                             Credit Loss                   Capital Raising
                                                             (USDbn)                         (USDbn)
             Citigroup                                         40.9                            44.1
             UBS                                                   38.2                        28.0
             Merrill Lynch                                         31.7                        16.1
             Bank of America                                       14.8                        17.0
             RBS                                                   14.6                        23.4
             Morgan Stanley                                        12.6                         5.6
             HSBC                                                  12.5                         2.0
             JP Morgan                                              9.8                         6.0
             Credit Suisse                                          9.4                         1.5
             IKB Deutsche                                           8.9                        13.0
             Total*                                               318.5                       238.1

2   Total inclusive of all banks and financial institution. Source: Bloomberg, May 2008
    Markets down across the globe


                Markets              From        Trough      Depth
    US (S&P 500)                   10/10/2007   15/07/2008   -22.4%

    Germany (DAX)                  17/07/2007   15/07/2008   -25.0%

    France (CAC)                   04/06/2007   15/07/2008   -34.2%

    UK (FTSE)                      18/06/2007   16/07/2008   -23.5%

    Japan (Topix)                  27/02/2007   17/03/2008   -36.7%

    China (Shanghai)               17/10/2007   1/07/2008    -56.5%

    India (Nifty 50)               09/01/2008   16/07/2008   -39.3%

    DJ Eurostoxx                   17/07/2007   15/07/2008   -31.0%

    Hong Kong (Hang Seng)          31/10/2007   17/03/2008   -33.4%

    MSCI Pacific ex Japan          30/10/2007   16/07/2008   -31.5%


    Source: Bloomberg, July 2008
3
          US house prices fall off a cliff…



                 20.0

                 15.0
    %            10.0
    YoY
                  5.0

                  0.0

                  -5.0

                -10.0

                -15.0
                    Jan-01 Nov-01 Sep-02   Jul-03 May-04 Mar-05 Jan-06 Nov-06 Sep-07

                                               US House Prices




4   Source: Bloomberg, May 2008
                                                                                     Level




5
                                                      -100
                                                             -80
                                                                   -60
                                                                         -40
                                                                               -20
                                                                                                                 100




                                                                                      0
                                                                                             20
                                                                                                  40
                                                                                                       60
                                                                                                            80
                                             Feb 78

                                             Feb 79

                                             Feb 80

                                             Feb 81

                                             Feb 82

                                             Feb 83

                                             Feb 84




Source: Bloomberg, May 2008.
                                             Feb 85

                                             Feb 86

                                             Feb 87

                                             Feb 88

                                             Feb 89

                                             Feb 90
                                                                                                                       … Followed by the UK!




                                             Feb 91

                                             Feb 92

                                             Feb 93

                                             Feb 94




                               RICS Survey
                                             Feb 95

                                             Feb 96

                                             Feb 97

                                             Feb 98

                                             Feb 99

                                             Feb 00

                                             Feb 01

                                             Feb 02

                                             Feb 03

                                             Feb 04

                                             Feb 05

                                             Feb 06

                                             Feb 07

                                             Feb 08
        While US foreclosures indicate there’s further to fall


                                         Foreclosure Prime and Subprime

          3

        2.5

          2
    %




        1.5

          1

        0.5

          0
              Jun-79

                       Jun-81

                                Jun-83

                                         Jun-85

                                                  Jun-87

                                                           Jun-89

                                                                    Jun-91

                                                                             Jun-93

                                                                                      Jun-95

                                                                                               Jun-97

                                                                                                        Jun-99

                                                                                                                 Jun-01

                                                                                                                          Jun-03

                                                                                                                                   Jun-05

                                                                                                                                            Jun-07
                                                                             Date

         17.0% return in 9 months


        Source: Bloomberg, June 2008.
6
Banks’ margins increase on US jumbo mortgages



                           8.0

                                                                                  Fed Rate: 2%
                           7.5
       Mortgage Rate (%)




                                     Fed Rate: 5.25%
                           7.0


                           6.5


                           6.0


                           5.5
                            Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08
                                                            Date




    Source: Bloomberg, July 2008.
7
8
                                                                            Percent




                                                          -4
                                                               -2
                                                                    0
                                                                        2
                                                                            4
                                                                                  6
                                                                                      8
                                                                                          10
                                                                                               12
                                                                                                    14
                                                 Jan 80

                                                 Jan 81

                                                 Jan 82

                                                 Jan 83

                                                 Jan 84

                                                 Jan 85

                                                 Jan 86




Source: Bloomberg, May 2008.
                                                 Jan 87
                                                                                                         US savings rate




                                                 Jan 88

                                                 Jan 89

                                                 Jan 90

                                                 Jan 91

                                                 Jan 92

                                                 Jan 93

                                                 Jan 94

                                                 Jan 95




                               US Savings Rate
                                                 Jan 96

                                                 Jan 97

                                                 Jan 98

                                                 Jan 99

                                                 Jan 00

                                                 Jan 01

                                                 Jan 02

                                                 Jan 03

                                                 Jan 04

                                                 Jan 05

                                                 Jan 06

                                                 Jan 07

                                                 Jan 08
        Chinese inflation


                                   China inflation, % change YoY
    25.0


    20.0


    15.0


    10.0


      5.0


      0.0
         Jan-05        Jun-05           Nov-05   Apr-06    Sep-06   Feb-07   Jul-07         Dec-07
                                  CPI                     Food                        Non-food


9   Source: Bloomberg, May 2008
     Agriculture: The next bubble or a lot further to go?


           700

           600

           500

           400
     Bps




           300

           200

           100

             0
                 Dec        Dec      Dec   Dec   Dec   Dec    Dec     Dec   Dec
                  99         00       01    02    03    04     05      06    07

                             Agriculture
      17.0% return in 9 months                     Energy    Metals


     Source: Bloomberg, June 2008.
10
     Emerging market inflation vs. nominal interest rates


     10.0%

     9.0%

     8.0%

     7.0%

     6.0%

     5.0%

     4.0%

     3.0%

     2.0%
        Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08
                                                Time


      17.0% return in 9 months Inflation               Nominal Interest Rates


     Source: RMB Asset Management, June 2008.
11
     US Yield Curve- Inflation expectations increase
               5
               4
      Yield
               3
               2




                                                                             16-Jun   17-Mar
 %
               1




                     3m   1   2   3   4   5   6   7   8   9   10   15   20                     30
               150
      Spread
               100
               50




              1 2 3 9 5 6 7
      17.0% return in 4 months8
          3m                                              9   10   15   20                     30




     Source: Bloomberg, June 2008.
12
                             Global Equity valuations – Where’s the bubble?

                             35.0

                             30.0

                             25.0
     Price/ earnings ratio




                             20.0

                             15.0

                             10.0

                               5.0

                               0.0
                                      88        90         92    94   96   98   00   02   04   06
                                              Global PE


13                           Source: Bloomberg, Style Research
      Harmony portfolios’ recent performance


                                                June-08   3 mths   6 mths   12 mths
Harmony Portfolios US Dollar Growth Fund         -2.6%      .3%     -3.9%    -5.3%

Harmony Portfolios US Dollar Balanced Fund       -1.0%    -0.5%    -2.8%     -2.5%

Harmony Portfolios Euro Balanced Fund            -3.0%    -1.3%    -6.1%    -10.1%

Harmony Portfolios Sterling Growth Fund          -2.7%    -1.0%    -5.4%     -7.2%

Harmony Portfolios Sterling Balanced Fund        -1.8%    -1.3%    -4.0%     -4.6%

Harmony Asian Growth Portfolio*                  -2.5%    -1.2%    -4.4%     0.2%

Harmony Asian Balanced Portfolio*                -1.9%    -2.4%    -4.3%     -1.9%




 14   Source: RMB Asset Management, June 2008
     Asian Balanced asset allocation changes


     120%


     100%                                        Commodities 5%
                   Alternative Investments                                  Commodities 8%
                             16%
                                              Alternative Investments
                                                                         Alternative Investments
                                                        21%
     80%                                                                           21%
                        Property 15%

                                                   Property 13%               Property 11%
     60%
                                                                          Alt Fixed Income 8%
                     Fixed Income 32%

                                                Fixed Income 37%
     40%
                                                                           Fixed Income 31%
                   International Equity 17%

     20%                                      International Equity 11%
                                                                         International Equity 10%
                    Domestic Equity 20%
                                               Domestic Equity 13%        Domestic Equity 11%
       0%
                       March 2007              September 2007                March 2008




15   Source: RMB Asset Management, May 2008
     Asian Growth asset allocation changes


     120%


     100%                                         Commodities 5%             Commodities 8%
                     Alternative Investments
                               20%
                                               Alternative Investments
      80%                                                                 Alternative Investments
                                                         29%
                         Property 12%                                               29%

                       Fixed Income 10%             Property 10%
      60%                                                                      Property 8%
                                                                           Alt Fixed Income 6%
                                                 Fixed Income 15%
                    International Equity 23%
                                                                            Fixed Income 13%
      40%
                                               International Equity 17%
                                                                          International Equity 15%

      20%             Domestic Equity 35%
                                                Domestic Equity 24%        Domestic Equity 21%

        0%
                         March 2007              September 2007                March 2008



16   Source: RMB Asset Management, May 2008

				
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