Alpha BRIC Plus - 38% pa return with reduced risk

Following strong investor demand for more of the same, we are launching Alpha BRIC 40 Plus - Series 2, later this month. In our annual performance report we show exactly which stocks and sectors are outperforming in these vitally important BRIC countries. Importantly - investing in the BRIC sector provides a valuable diversification away from the easy (but risky) money which is being made by investors focussing just on the Chinese market. With emerging market investing - diversification is key.

The Australian Financial Review noted in its lead article of 31 October 2007 that "Emerging markets offer richer than average rewards..." and ran with the theme that investing generally in the emerging markets was a good way to enhance returns and to diversify risk.

At Alpha, we don't buy into the argument that, just because some markets have experienced good gains in the past, investors should throw their money at them going forward. We are far more selective, and have chosen to focus our emerging market activity in the BRIC sector, which is experiencing strong gains driven specifically by the global demand for commodities, as well as from the rapid modernisation which is characteristic of these 4 fascinating economies.

And since the gains in these 4 countries are being driven by the strong economy wide growth each is experiencing, we also don't buy into the need for expensive and risky active stock picking in these markets: the Alpha BRIC 40 Plus investment has strongly outperformed the competition, with better gains than any similar multi-country emerging market managed fund available to Australian SMSF investors and advisers.

In the recent IMF World Economic Outlook the IMF states that they expect global growth to continue to be underpinned by China and India, as well as commodity rich emerging markets (such as Brazil and Russia):

"These economies will continue to draw support from benign global financial conditions and commodity prices that remain high notwithstanding recent declines. China's growth is projected to remain rapid in 2007 and 2008, albeit a little below the torrid pace in 2006, while India's economy should also continue to grow rapidly. Commodity-rich countries should continue to prosper. (IMF WEO, p xvii, at http://www.imf.org/external/index.htm.)"

The Alpha BRIC 40 Plus investment provides exposure to the BRIC 40 Index prepared by Standard & Poor's. Full details of the methodology of the BRIC 40 index is available on the homepage for the Alpha UBS BRIC 40 Plus investment, http://www.alpha-invest.com.au/products/alpha-bric.cfm. The Alpha BRIC 40 Plus investment was valued at $138.32 as at 28 October 2007, net of all fees. As the chart below shows, the S&P BRIC 40 Index has risen dramatically since the launch of the Alpha BRIC 40 Plus investment - albeit with high levels of price volatility...which supports the inclusion of the 85% capital guarantee at maturity (3 years).

Company Name	Country	15-Dec-06	19-Apr-07	31-Oct-07	% Change (15 Dec - 31 Oct)
China Shenhua Energy Co Ltd	China	17.8	19.98	49.15	176.12%
Industrial & Commercial Bank of China Ltd	China	4.15	4.33	7.32	76.39%
China Merchant Holdings International Co Ltd	China	30	35.2	54.1	80.33%
Ping An Insurance Group Co of China Ltd	China	33.05	41.75	107.2	224.36%
China Life Insurance Company Ltd	China	20.6	24.3	51.45	149.76%
Bank of Communications Co Ltd	China	7.19	8.41	14.02	94.99%
China Petroleum & Chemical Corp	China	6.63	6.7	11.66	75.87%
China Merchants Bank Co Ltd	China	14.98	18.88	39.45	163.35%
Bank of China Ltd	China	3.77	3.96	5.06	34.22%
China Telecom Corp Ltd	China	3.66	3.96	6.69	82.79%
PetroChina Ltd	China	10.36	8.9	19.4	87.26%
CNOOC Ltd	China	6.98	6.71	16.16	131.52%
China Construction Bank Corp	China	4.27	4.78	8.71	103.98%
China Mobile Ltd	China	62	72.5	157	153.23%
AmBev	Russia	48.56	59.15	81.71	68.27%
Tatneft	Russia	94.25	98	124.75	32.36%
Banco Bradesco SA	Brazil	19.595	21.46	34.15	74.28%
Cia Energetica de Minas Gerais	Brazil	15.6133	18.1933	21.6	38.34%
Empresa Brasileira de Aeronautica SA	Brazil	43.46	47.83	48.77	12.22%
Gerdau SA	Brazil	16.18	20.2	31.1	92.21%
HDFC Bank Ltd	Brazil	75.59	69.45	139	83.89%
ICICI Bank Ltd	India	40.94	42.36	69.44	69.61%
Infosys Technologies Ltd	India	54.74	53.77	50.57	-7.62%
Banco Itau Holding Financeira	Brazil	17.64	19.4	28.55	61.85%
LUKOIL	Russia	88.7	81.8	91.4	3.04%
Mobile TeleSystems OJSC	Russia	48.95	56.38	83	69.56%
MMC Norilsk Nickel	Russia	161.25	200	315	95.35%
NovaTek OAO	Russia	64.5	57.9	57.4	-11.01%
OAO Gazprom	Russia	46.5	39.45	49.8	7.10%
Petroleo Brasileiro SA	Brazil	48.82	51.485	95.63	95.88%
Reliance Industries Ltd	India	55.96	71.4	143.75	156.88%
Cia Vale do Rio Doce	Brazil	14.96	20.54	37.68	151.87%
Rosneft Oil Co	Russia	9.5	8.63	8.87	-6.63%
Satyam Computer Services Ltd	India	24.09	23.64	30.35	25.99%
Surgutneftegaz	Russia	72.8	60.1	65.5	-10.03%
Siderurgica Nacional SA	Brazil	29.39	43.4	79.9	171.86%
Tele Norte Leste Participacoes SA	Brazil	14.95	17	21.8	45.82%
Unibanco - Uniao de Bancos Brasileiros SA	Brazil	89.75	98.39	158.04	76.09%
Unified Energy System	Russia	93.8324	124.892	123	31.08%
Vimpel - Communications	Russia	15.308	19.322	33.07	116.03%

Alpha is proud of the great returns we have delivered to discerning SMSF investors and advisers from our Alpha BRIC 40 Plus product. We eagerly await the launch of Series 2 this month.