Monthly Update

Month ending March 2008

1.  Commentary

March saw the significant volatility of recent months continue in global financial markets with currency markets being no exception. Client accounts posted very small losses of around 0.3% after what was another frustrating month. After being down by as much as 2% intra-month, strong trading performance mid-month took us comfortably into the black only to under perform in the last two days.

It is interesting to note that commentators are pointing out that all asset classes have underperformed significantly in the first quarter of 2008. While Zone Capital's first quarter performance was only 2.4%, it bares mentioning that total returns (including dividends) from US and Australian equities have been -9.4% and -14.5% respectively over the same period. Clearly investors that shifted investment capital to cash or uncorrelated assets classes prior to this period have been well rewarded for their timing.

With this context in mind, we remain somewhat satisfied with our performance and very pleased with our risk management. Trading systematic foreign exchange inevitably involves some flat spots, however if risk is managed correctly there is still significant upside to the strategy as proven by periods such as our September - November performance last year. That said, our fascination with uncovering and designing new and better trading systems continues with great energy and we look forward to producing some significantly positive results in the months ahead

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

Results presented are after fees

2.  Fund Performance

3.  Track Record* Update

Cumulative Performance

Summary Performance Statistics