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February
2009

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February Performance Update

Performance of Elite LWM East-West Value Fund vs. Major Markets

Our Strategy Moving Forward

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Elite LWM East-West Value Fund Outperforms
All Major Markets in January

Greetings!

February Performance Update

In January there was little new year's cheer for global markets. Wave after wave of job cuts, contracting GDP figures, plummeting consumer confidence and collapsing consumer spending finally caused many to re-evaluate their view of the current situation. At last, market participants are starting to realise that a recovery in the second half of 2009 is far from guaranteed.

But ironically, the more that a pessimistic view is adopted in the marketplace, the more rapidly the circumstances will arise where sustainable recovery is possible. Just as a bull market only ends once the last bear has thrown in the towel, so the bottom is reached only when all of those who are susceptible to fear have abandoned hope and sold.

Whilst we believe that there are good reasons for markets to continue to suffer en masse, we also believe that there are a number of superb businesses around the world that, as a result of blind fear, have been marked down to prices that represent incredible opportunities.

Our classical value investment strategy is designed to uncover and exploit such opportunities; protecting against the worst of the market volatility yet enabling investors to benefit once the qualities of these companies are once again realised.

Performance of Elite LWM East-West Value Fund vs. Major Markets

The Fund invests across global markets and typically holds no more than 25-35 of the best value companies from around the world. During January, we protected our investors from the substantial losses incurred by all global markets.

Despite harrowing losses for global markets that ranged from -6.42% (FTSE 100) to -9.81% (German DAX), the Elite LWM East-West Value Fund was down only 1.36%.

Our Strategy Moving Forward

As explained in our last update (available here), substantial additional falls in equity markets were likely. We therefore adopted a defensive stock acquisition strategy designed to preserve investors' capital whilst at the same time enabling us to build positions in sustainable but tremendously undervalued companies that are likely to provide for superb returns over the medium to long term.

Although global valuations are becoming increasingly attractive, the potential for further falls remains uncomfortably high. We will therefore continue to reduce risk wherever possible, whilst at the same time positioning the Fund so that we are able to benefit from mispricing caused by broad-based fear.

Lowes Wealth Management (LWM) is the exclusive provider of investment advice to the Elite LWM East-West Value Fund. The objective of the Fund is to significantly outperform all major markets whilst maintaining a comparatively low level of investment risk.

The Fund uses a classical value investment strategy which has been employed by Lowes Wealth Management since October 2005. Over the period the strategy has outperformed all major markets with lower volatility.

We wish you a very prosperous year of the Ox!

Sincerely,

Stuart Christie
Lowes Wealth Management
www.loweswealth.com

Important Notices:

This communication constitutes neither an offer to sell nor a solicitation of an offer to purchase/subscribe to any investment. All information and attachments (the "Material") are provided by Lowes Wealth Management ("LWM") as part of its internal research activity. This Material is solely for informational purposes, and LWM makes no representations as to accuracy or completeness. LWM is not responsible for errors contained herein and shall not be liable for any consequences arising out of reliance upon same. Opinions herein constitute the present judgement of LWM, which is subject to change without notice.

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