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ETF, US closed-ended funds and UK investment trusts specialising in Demoland listed at bottom of market profiles

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DEMOLAND
See Notes at Right of Page				Month End:
Example of a Market Profile

Forecasts	Summary	Opinions	History	Structure	Funds

Earnings Forecasts	Since 1986	2008 a	2009 a	2010 e	2011 e
EPS (1995=100)		186.9	227.7	270.8	122.0
EPS Change (%)	10%	10%	22%	19%	-55%
Real EPS Change (%)	7%	10%	20%	15%	-56%
Relative EPS Change (%)	6%	-12%	20%	7%	-42%
PE Ratio	29.1	14.3	15.5	7.0	15.5
Relative PE Ratio	115%	81%	91%	89%	150%
Dollar / US$ Rate	-1%	1%	0%	-1%
Share Index Change ($ %)	2%	20%	9%	-47%
Relative Performance	-8%	0%	-1%	-5%
Summary	Demoland experienced the most spectacular stock market bubble, as the market rose 12 fold between 1986 and 1990. Opposition parties were legalised in February 1982 and Demoland applied to join GATT in January 1997. However the bubble came and went before
	foreigners were allowed into the stock market. That process began in 1997 and proceeded through seven stages, so the country was only given full weighting in global benchmark indices in February 2002. Restrictions on portfolio investment were finally fully
	removed in August 2004. As their scarcity value has evaporated so the premium ratings of Demoland shares has evaporated, leading to under-performance of the stock market, despite relatively good economic performance.
Investment Opinions		Local	Dollar	Global
		Investors	Investors	Investors
	Recommended Action	Add	Add	Buy

Trend Strategies	Forecast Revisions	Sell	Sell	Sell
	Liquidity Trends	Sell	Sell	Sell
	Chart Analysis	Sell	Sell	Buy
	Seasonal Patterns	Buy	Buy	Buy

Investor Sentiment	Opinion (12 Months)	Buy	Buy	Add

Valuation Ratios	PE Ratio / Bond Yield	Buy	Buy	Buy
	PE Ratio / Interest Rate	Buy	Buy	Hold
	Market Cap. / GDP	Buy	Buy	Buy
	Real Earnings Yield	Buy	Buy	Buy

Key Historical Events	October-06	$24 Bill. Stock market stabilisation fund
	September-08	US Banking Crisis
	July-08	Foreign investment curbs eased
	March-08	Rightwing coalition wins general election
	November-07	Demoland ETF listing

Political History	For investors the single most important political event was the general election of April 1983, which ended six years of Liberal rule and began 13 years of Labour rule, mainly with Hawke as PM. This government initially brought in a Prices and Incomes rather than
	adopting the deregulation policies, becoming popular in Anglo-Saxon markets.
Growth & Inflation	There was a recession in 1974/75 due to the oil crises and global economic downturn, but since then Demoland has managed to grow through the world's and most recently the region's problems. Inflation peaked at 21% in 1974.
Stock Market History	Foreign investors missed the excitement of the 1988 stock market bubble driven by retail speculators, as the first limited investments were only permitted in 1993, after the bubble had collapsed. Since then there has been a steady uptrend and share prices
	reached their old highs but this performance was no more than average by world standards, until the various emerging market currency crises caused a new decline. Heavy exposure to technology also caused under-performance since the Millennium.
Economic Structure	The economy of this country has a high exposure to manufacturing which is 33% of GDP, and employs 35% of the workforce. Electrical and electronic goods are the principal exports.
	Economic Statistics	Demoland	World	Period	Source
	Population Growth (%)	1.0%	0.5%	2000-2005	UN
	GDP Growth (%)	6.2%	2.3%	1980-2006	UN
	Rate of Inflation (%)	2.8%	3.4%	1980-2006	UN
	GDP per Head (US$)	$27,700	$34,600	2005	UN
	Agriculture / GDP (%)	3%	1%	2006	CIA
	Industry / GDP (%)	45%	24%	2006	CIA
	Services / GDP (%)	52%	74%	2006	CIA

Political System	Demoland has governed under a democratic system since 1975, when life membership of the Upper Chamber was abolished. The President is elected by the Parliament every four years.
President Election:	N/A	Govt. System:	Parliamentary	Orientation:	Rightwing
Parliament Election:	Mar/2012	Election Cycle:	4 Years	Administration:	Coalition
Market Structure	Like many regional rivals, Demoland has substantial participation by retail investors. Owing to limits on foreign ownership, that are slowly being dismantled, foreign institutions had not played an important role in the market. The country largely escaped the emerging markets
	owing to its relative isolation and traditional positive balance of payments.
Volatility of	Correlation	Market Cap Weighting		GDP Weighting
Monthly Returns	with Global Index	Region	World	Region	World
10.6%	21%	8%	1%	9%	1%

Funds Available	Sponsor	Symbol	Listing	Type	Liquidity

MSCI Demoland	iShares	0	AMEX	Index	***
Demoland Fund	Demoland Securities	XYZ	NYSE	Managed	**
Demoland Trust	ABC Bank	ABC	London	Managed	**

Copyright © 2010: Investors RouteMap Ltd., an Appointed Representative of Integral Asset Management Ltd, which is authorised and regulated by the Financial Services Authority to carry out investment business in the United Kingdom. Please read Financial Health Warning and Licence Agreement. UK laws apply exclusively. Principal sources: Consensus Economics, CFTC, FIBV, Global Financial Data, national governments and stock exchanges. Information and opinions are based on sources believed to be reliable and accurate. However the company does not guarantee this to be the case, and does not accept liability for any loss arising. These tables are for information only and do not constitute a solicitation to deal in any securities. Opinions are liable to change. Past performance is no guarantee of future success.

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