JAMES ROGER

American investor and author.

Currently based in Singapore. Chairman of Rogers Holdings

and Beeland Interests Inc.

Co-founder of the Quantum

Fund with George Soros

Creator of the Rogers

International Commodities Index (RICI).

RICI
The Rogers International Commodity Index (RICI) is a

composite, USD based, total return index, designed by James B. Rogers, Jr. in the late 1990s. The index was designed to meet the need for consistent investing in a broad-based international vehicle It represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy to metals products. The value of this basket is tracked via futures contracts on exchange-traded physical commodities, comprised of 37 commodities futures contracts, quoted in four different currencies, listed on eleven exchanges in four countries

RICI Performance compared to other Asset Classes

RICI Index Performance

Current Chart of RICI

Rogers Thesis & RICI in 1998

Jim believed in the industrialization of China and

eventually other emerging nations that would create unprecedented demand for commodities

Commodity prices were at multi decade lows.

Lack of major investment in commodity production in last

20 years

Dissatisfied with existing commodity indices as

investments

Why RICI ?
Internationally oriented, diversified, balanced index Best represents commodity asset class Broadest basket of commodities Over 10 years of actual history Out-performed all commodity indices since August 1, 1998 Similar or less volatility

Methodology
The Rogers International Commodity Indexes are

maintained by their owner, Beeland Interests Inc., who is advised by members of the Rogers International Commodity Index Committee For the sake of transparency, consistency, and stability, composition changes are infrequent The Committee members generally monitor the Indexes daily for circumstances that warrant consideration of changes. The Committee of wise people bases its discussion on world consumption patterns and liquidity.

Methodology & Comparison

Performance & Comparison August 1998 June 2011

August 1998 June 2011

Committee Members
Beeland Management Company CQG

Daiwa Asset Management Company

Diapason Commodities Management S.A Merrill Lynch

RBS
UBS AG

Index Weights

RICI Index Composition

RICI ASM
The Rogers International Commodity Index -

Agriculture (RICI - Asm ) is a composite total return index and is a sub-index of the Rogers International Commodity Index (RICI)
The RICI - Asm index represents the value of a

basket of 21 agricultural futures contracts for commodities consumed in the global economy.

 Reference Currency
USD

Index Weights
Weight of the index component in the RICI

divided by the weight of the Agriculture segment in the RICI (34.90%).

RICI -

sm E

The Rogers International Commodity Index Energy (RICI - Esm ) is a composite total return index and is a sub-index of the Rogers

International Commodity Index (RICI)

The RICI - Esm index represents the value

of a basket of 6 energy commodities consumed in the global economy.

 Reference Currency
USD

Index Weights
Weight of the index component in the RICI

divided by the weight of the Energy segment in the RICI

RICI -

SM M

is a composite total return index and is a subindex of the Rogers International Commodity Index (RICI)
The RICI - MSM index represents the value

of a basket of 10 metals commodities consumed in the global economy.

 Reference Currency

USD
Index Weights

Weight of the index component in the RICI

divided by the weight of the Metals segment in the RICI(21.10%).

Rules
General commodity Eligibility A commodity will be considered fit to be included in the index if it plays a significant role in worldwide (developed and developing economies) consumption

Contract Characteristics In order to decide whether a specific commodity contract is actually investable, the RICI Committee screens volume and liquidity data of international exchanges
The most liquid contract and the highest grade of

commodity are only included in RICI

 Two RICI index are calculated ;

Excess Return (RICI - ER)

Is an Excess Return Index .It represents uncollateralized return of the RICI

the

The return expected when for every dollar worth of

commodity bought an equivalent value of T bill issued by Govt is not purchased

Total Return (RICI - TR)

The return Assuming that any cashflow generated

during the life of the security is reinvested back. The RICI index uses the 91 days US treasury bill auction rate to calculate the daily reference rate which in turn is used to determine the interest rate return

Why invest In RICI index

The Index is designed to offer stability. as weights of commodities is known and is adjusted monthly to be consistent in composition Only highly liquid contracts are traded
One can get passive exposure without dealing in the

contract It hedges itself against inflation by way of the prices of contracts