1. Commentary

April, again was an underperforming month with losses of 0.6% incurred on our track record account. The Greek sovereign debt crisis has obviously been making headlines globally injecting some volatility and uncertainty into the FX marketplace. We have been observing the subsequent decline in the AUD with interest which appears to be penalised as a so called risk proxy for the rest of the world's poor economic management, despite being an economy that is probably on a relatively sound footing.

We have not, as yet, seen any outstanding opportunities in high frequency mean reversion, however the volatility that is now coursing through the markets often creates opportunities. We continue to work hard observing the current inventory of systems while looking for further opportunities.

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2. Performance

	Apr 10	Mar 10
% Return	(0.6%)	(0.2%)

3. Track Record* Update

Cumulative Performance

Summary Performance Statistics

	Since Jan 04
Cumulative % return	831%
Annualised % return	42.3%
Maximum Drawdown	18.7%
Sharpe Ratio	1.3
Sortino Ratio	5.0

*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