1. Commentary

Trading was mixed during April, with several periods of performance being closely followed by underperformance. After hanging onto modest gains for most of the month, the last few days of the month were uninspiring, bringing most accounts to finish with losses of up to 1%

Market conditions continued to be rather erratic and our current portfolio of systems were unable to gain an edge in this environment in the final days of the month, especially with the rebound in the US dollar. We continue to be optimistic about our high frequency mean reversion systems returning to favour and have introduced a new currency pair to this strategy which has started to bare fruit.

In the mean time significant time is also being invested into better pricing via an electronic exchange that provides feeds from several banks. Testing with Directors' funds should be underway this month, with a view to assessing whether there are pricing advantages by moving away from our current liquidity provider.

Malcolm Morley and Russel Morris are both representatives on discussion panels at the upcoming HFW Asian Manager Showcase Conference in Singapore at the end of May. Please contact us if you might be attending and would like to catch up in person.

For more information please visit our website: www.zonecapital.com.au

Results presented are after fees

2. Fund Performance

	Apr 08	Mar 08
% Return	(0.6%)	(0.1)%

3. Track Record* Update

Cumulative Performance

Summary Performance Statistics

	Since Jan 04
Cumulative % return	723%
Annualised % return	63%
Maximum Drawdown	18.7%
Sharpe Ratio	1.6
Sortino Ratio	5.9

*Track Record, as presented, is based on the trading account of FuturesTech Pty Ltd (an entity wholly owned by Malcolm Morley, a director of Zone Capital) for the period January 2004 – December 2006 and for the Zone Trading Trust 1 thereafter. The returns above are after deducting pro-forma fees, consisting of a 2% pa management fee plus a 25% high water marked performance fee. Zone Capital does not represent in any way that the past performance of the Track Record is any indication of likely future performance.

www.zonecapital.com.au