SGI-Management Announces Investment Performanceof its Smoothed Growth Range of Funds

SGI-Management Announces Investment Performanceof its Smoothed Growth Range of Funds

December 19, 2006

-- Solid Track Record Continues
-- New MD Appointed
-- Unique Product in Asia and Europe


    Investment Performance

    SHANGHAI, Dec. 19 /Xinhua-PRNewswire/ -- SGI-Management
reported last 
week the investment performance results of its smoothed
growth range of funds 
for the period to the end of October 2006. The Diversified
Smooth Growth 
Fund, which was launched in October 2003 and now has a
three year track 
record, has returned between 13.2% and 16.6% in different
currencies in the 
period to date with no negative return months. The Smoothed
Growth Plus Fund, 
the US dollar and Euro versions of which were launched in
January 2003, has 
returned 15% and 25.1% in the respective currencies in the
period to date 
with 97.83% of months reporting positive performance.

    "This continues the solid track record of
consistent performance of our 
funds," said Paul Thompson, Managing Director,
SGI-Management. "Smoothed 
growth is an asset class in its own right that offers
diversification and 
exposure to traditional asset classes but with a lower
level of volatility, 
and while it has a long heritage in the UK, we expect to
see it gain 
acceptance in other markets. We see appetite for smoothed
growth assets 
increasing in Asia and continental Europe, driven by
demographic trends such 
as ageing populations and private pension provision."

    Appointment of New Managing Director

    At the same time, SGI-Management also announced the
appointment of Paul 
Thompson as Managing Director. Paul has more than 15 years
experience in 
asset management and an in-depth knowledge of the global
investment funds 
business, in particular mutual funds. He led the
development of the 
international investment funds business at Goldman Sachs,
has served as a 
director of numerous fund entities and has advised many
asset management 
businesses and regulators across the world, including the
Institutional Money 
Market Funds Association, Fidelity and Prudential
Financial's asset 
management joint venture in China.

    Further appointments are expected in due course as the
company expands 
into Asian and European markets.

    Commenting on this expansion, Paul Thompson said,
"SGI's Smoothed 
Growth Funds are a unique product, using a managed approach
to selecting best 
in class smoothed growth investments. At present, this
asset class is little 
known in Asia and continental Europe, which are the main
regions for our 
expansion. Assets managed in our smoothed growth funds
currently stand at 
US$250 million and we have received strong signs of
interest from new 
potential investors. We expect this asset class to become
increasingly 
popular as its merits become better known and
understood."

    About SGI-Management

    SGI-Management is a fund management company with
unparalleled expertise 
in the area of smoothed growth products. We serve
institutional clients in a 
number of Asian and European markets, where we are unique
in providing 
managed best in class smoothed growth investments.

    About smoothed growth funds

    Smoothed growth funds are an ideal solution for
investors seeking to 
diversify their asset allocation and generate more
consistent returns, and 
offer distributors of investments a class of product that
has the attraction 
of meeting the market timing concerns of their customer
base. Investment 
returns are "smoothed" through building reserves
and applying them over 
time to smooth out the fluctuations in the markets.

    New to Europe and Asia, it is a large and highly
regulated market that 
has been operating in the UK for over 100 years and
involves assets of some 
US$600 billion worldwide. The main sources of smoothed
growth assets are 
major UK based life insurance companies. The assets held by
these investments 
typically include equities, bonds, physical commercial real
estate and 
alternative asset classes.


    For more information, please contact:

    Issued on behalf of SGI-Management by: 

    Asia -- Connatus Ltd

     Nick Bradbury
     Tel:   [phone]
     Email: [e-mail] 

    Europe -- Kinlan

     David Hothersall
     Tel:   [phone]
     Email: [e-mail]


SOURCE  SGI-Management