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Ahmed Fahour CEO, Citigroup Alternative Investments

A MESSAGE FROM AHMED FAHOUR separately managed accounts. Each Figure 1* EXPECTED GROWTH Citigroup Alternative Investments category offers a variety of investments. Citigroup Alternative Investments consolidates the long history of alter- They are diversified by style or invest- expects the alternative investment native investment management by ment strategy, and can be tailored to market to exceed $4 trillion in assets Citigroup, dating back to the 1980s when clients’ unique needs and tolerance under management by 2005. the group pioneered some of the first for risk. structured credit products. Alternative We’ve established consistency—in Managed Futures $4.13T investments afford investors unique our investment processes, research, Credit Structures Hedge Funds opportunities to reduce portfolio volatility performance and client service—as the Private Equity through diversification, enhancing their cornerstone of our excellence. Recent Real Estate Equity risk-adjusted returns. As a result, they’re co-investments by Citigroup affiliates especially attractive in economic envi- in new funds attest to the quality and $2.23T ronments in which more traditional stock rigor of our investment management

and bond investments are producing abilities. Clients acknowledge that few $1.14T uneven returns. Indeed, we expect the financial organizations can offer our market for alternative investments market access, intellectual leadership $0.50T to nearly double by 2005, exceeding and global reach. $4 trillion in assets under management Our products and services are available 1995 1998 2001 2005(E) (see Figure 1). At Citigroup Alternative directly to our institutional clients and T: trillion Investments, our goal is to build a high net worth individuals through our 1995-2001 2001-2005 research-based suite of products that will strategic relationships with The Citigroup CAGR CAGR (E) enable us to become the premier provider Private Bank, Salomon Smith Barney, Total Market 24% 17% of alternative investments worldwide. Citigroup Asset Management, Citibank Managed Futures 5% 7% We offer a comprehensive suite of and the Global Relationship Bank. alternative investment products. Among We believe our strong relationships Credit Structures 20% 14% them are hedge funds, credit structures, provide opportunities for high net worth Hedge Funds 17% 26% real estate, private equity, managed individuals and institutional clients to Private Equity 27% 16% futures, exchange funds and strategic satisfy a broad range of alternative Real Estate 30% 11% investment portfolios. We also offer investment needs. * See page 20.

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ALTERNATIVE INVESTMENTS HAVE BECOME A CRITICAL PART OF MANY WELL- DIVERSIFIED WEALTH MANAGEMENT STRATEGIES.

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Why Alternative Investments

CREATING STRATEGIES WITH Figure 2** BOOSTING TRADITIONAL PORTFOLIOS’ RISK ADJUSTED RETURNS ALTERNATIVE INVESTMENTS Adding alternatives moves the range of potential risk and reward points up and to Increasingly, alternative investments the left along the efficient frontier of a traditional stock and bond portfolio. are capturing the attention of sophis- ticated investors. 16 Unlike listed stocks and bonds, many 15 alternative investments produced strong returns in 2001, causing demand 14

for these products to increase. Asset 13 flows into alternative investments 12 accelerated throughout the first half of 2002 as investors sought non-traditional 11

ways to address their concerns about 10

performance volatility and the preser- % Annualized Return 9 vation of capital.1 8 Stocks & Bonds with In fact, studies show that among high Alternatives net worth and institutional investors, 7 Stocks & Bonds Only allocations to alternative investments 6 have increased steadily over the last 0 2 4 6 8 10 12 14 16 decade, especially in the last few years.2 ** See page 20. % Standard Deviation (Risk) What benefits do alternative investments bring to the table that traditional portfolio performance over a wide investment strategies that work in investments do not? For one thing, range of conditions by reducing volatility, conjunction with other assets in their returns on alternative investments thereby improving a portfolio’s risk- portfolios to attempt to produce the typically show low correlations to adjusted return. greatest possible return consistent those of traditional equity and fixed At Citigroup Alternative Investments, with prudent management of risk income investments. Low correlations our goal is to provide qualified individual (see Figure 2). can potentially help improve overall and institutional clients with alternative

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Why Citigroup Alternative Investments

CITIGROUP’S ACCESS THE SPECTRUM due diligence and have met our product Citigroup Alternative Investments approval committee’s demanding MARKET ACCESS, offers research-based alternative standards. investments to suit a broad range DEPTH OF of investment objectives. Products PARTNER WITH EXPERTS RESOURCES, include credit structures, hedge funds, Citigroup Alternative Investments’ real estate, private equity, managed goal is to provide strong investment RESEARCH AND futures and other special investments management, backed by extensive (see Figure 3). Within each category, we research and delivered with profes- GLOBAL FOCUS provide diversified investments as well sionalism. Our team of investment CREATE UNIQUE as style- or strategy-specific products professionals is seasoned, bringing that give clients the flexibility to more years of industry experience to the CLIENT BENEFITS. effectively manage their portfolios. management process. Few financial organizations can offer Our expertise has resulted in sizable the breadth of market access, depth increases in our client base over the of resources, research, economies of years. Citigroup Alternative Investments scale and global reach of Citigroup. now manages almost $60 billion in At Citigroup Alternative Investments, alternative investment assets.3 Our we leverage these strengths to create staff of 300 investment managers, unique benefits for each of our clients. research analysts and other profes- Citigroup Alternative Investments is sionals operates out of our main committed to bringing what we think offices in New York, London, Hong Kong are the best products to our clients. and Tokyo. Since beginning operations, That means clients may choose from we have gained the trust of pension Citigroup’s proprietary and non-pro- funds, endowments, foundations, prietary offerings and know that, governments, insurance companies, whichever they select, the products banks and high net worth families have all been subjected to intense and individuals.

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INNOVATE WITH CITIGROUP the preeminent financial services Our history in alternative investment company worldwide, recognized and management is long. Citigroup pioneered respected as a financial services some of the first structured credit market leader with over 200 million products in the late ‘80s, and introduced customer accounts in over 100 countries our funds of hedge funds in the early around the world. ‘90s. As a firm, we have set the goal of We remain committed to our clients, becoming the world’s premier provider the industry and our reputation, and of alternative investment strategies. we back them by co-investing in our Citigroup, the parent company of own products alongside our clients Citigroup Alternative Investments, is when we judge it to be appropriate.

Figure 3 OUR BROAD RANGE OF ALTERNATIVE INVESTMENT OFFERINGS As alternative investments increase their importance as a part of a fully diversified investment strategy, Citigroup Alternative Investments is responding with offerings across the full range of alternative asset classes.

Private Equity/ Credit Structures Hedge Funds Real Estate Exchange Funds Managed Futures Special Investments Investment Grade Debt Single-Manager Fund Offerings Single-Manager Funds Multi-Advisor Municipal Arbitrage Investment Grade Multi-Manager Direct Equity Concentrated and Single Advisor Funds Arbitrage Vehicles Multi-Strategy Co-Investment Fully Diversified Funds Separately Managed Credit Enhancement of Funds Products/ Market Value Style-Specific Opportunities with Accounts Leveraged Loan Fund Citigroup Principal Protected Repackaging Vehicle Sector-Specific High Yield Debt Investments Synthetic CDOs Strategic Investment Direct Co-Investment High Yield and Portfolios Emerging Market Opportunities with Cash Flow Principal Protected Citigroup Notes Hybrid Products Exchange Funds

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DUE DILIGENCE AND RISK MANAGEMENT ARE AT THE FOREFRONT OF OUR DISCIPLINED INVESTMENT PROCESS.

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Investment Approach

Citigroup Alternative Investments is a investment types. We carefully consider TAILORING leader in both the theory and practice historical returns within varying of alternative investments. Our team economic environments. STRATEGIES TO of seasoned investment professionals brings years of experience and extensive RISK MANAGEMENT FIT CONSERVATIVE knowledge of the industry to bear on Our efforts don’t stop with an initial AS WELL AS our research, our portfolio management allocation of assets to a manager, processes and our commitment to whether internal or external. MORE AGGRESSIVE seeing our portfolios thrive. Throughout the life of all our third- INVESTMENT party investments, we scrutinize each INTENSIVE RESEARCH third-party manager’s performance, OBJECTIVES. The intensive research efforts that go using sophisticated, dynamic risk into developing proprietary alternative management practices that draw on investment strategies, as well as the Citigroup’s resources and years of selection of third-party managers experience in monitoring risk. who are highly regarded within their respective categories, offer our clients ONGOING RESEARCH a distinct strategic and tactical edge. Ongoing research has enabled Citigroup Alternative Investments to build a suite DUE DILIGENCE of carefully selected alternative products, Our due diligence efforts include a both proprietary as well as managed, thorough analysis of each manager’s by complementary third parties. leadership, security selection process Our diverse product offerings span and risk management practices. In the risk/reward spectrum and enable addition, we maintain specialized in- us to tailor strategies to fit conservative depth due diligence efforts specifically as well as more aggressive investment tailored for particular alternative objectives.

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Credit Structures

OUR DEPTH OF Citigroup has a long history of creating are managed in Citigroup Alternative innovative credit structures to meet Investments’ New York office as well EXPERIENCE IN our clients’ diverse needs. Having as by carefully selected third-party pioneered a number of investment- specialist portfolio managers. Portfolios STRUCTURED and non-investment grade structures are composed of either collateralized INVESTMENT in the course of our operations, we loans or high yield bonds, or oppor- bring expertise to a wide range of tunistic combinations of both. VEHICLES IS BACKED alternative strategies. We actively manage each of our in-house The structured credit strategies we BY LONG-STANDING portfolios to ensure compliance with offer may be managed by Citigroup all appropriate limits. Some portfolios Alternative Investments or by third- RELATIONSHIPS employ derivatives technology, while party portfolio managers. Portfolios others are structured as special purpose WITH INVESTORS, can comprise collateralized loans, RATING AGENCIES municipal bonds, investment grade vehicles that are either leveraged or and high yield corporate bonds, or a take on the form of traditional collat- AND THE INVEST- combination of loans and bonds. eralized debt obligations. MENT COMMUNITY. Credit Structures London is the invest- At the center of our portfolio manage- ment manager for several investment ment process is disciplined, thorough THIS HELPS grade structured investment companies. credit evaluation. We define each Limited to buying investment grade product with a specific risk profile in POSITION US AS securities, these companies manage mind, while identifying and addressing INNOVATORS AT market risk by hedging interest rate risks throughout the structure’s life. and currency risk. Their earnings are We support our intensive fundamental THE FOREFRONT OF derived primarily from the spread research by quantitative tools, including CAPITAL MARKETS between security portfolios and their proprietary pricing and risk management corresponding cost of funds. models, and augment our research by DEVELOPMENT. Non-investment grade credit structures a top-down macroeconomic overlay.

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STRATEGIES CAN INCLUDE • Investment Grade Credit Structures • Structured Investment Vehicles • Collateralized Debt Obligations • Hybrid Investments • High Yield Investments • Leveraged Structures

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HEDGE FUNDS Hedge funds may offer diversification allocating capital among hedge fund benefits to traditional portfolios because strategies and provide investment CAN BENEFIT hedge fund strategies in general are oversight by means of rigorous, ongoing not highly correlated to equity and fixed due diligence and risk management. FROM MARKET income markets. Regardless of the We choose managers based not only direction of securities prices, therefore, on their ability to generate consistent INEFFICIENCIES hedge funds possess the potential to outperformance over their peers, but benefit from market inefficiencies and AND TRENDS, also on such variables as fidelity to their emerging trends. As a result, demand chosen investment style, expertise in the REGARDLESS for them has grown significantly in use of leverage and a sound under- recent years. OF MARKET standing of trading risk management. At Citigroup Alternative Investments, we We maintain a sophisticated, proprietary DIRECTION. offer clients multi-strategy and single- strategy funds that can be accessed risk management platform that provides through a multi-manager portfolio processes and tools designed specifically (a fund of hedge funds) or by means for the breadth of complex strategies of a single manager. within the hedge fund universe. Our multi-manager portfolios seek to FUNDS OF HEDGE FUNDS reduce risk by allowing investors to Citigroup Alternative Investments offers diversify across investment strategies, a full range of actively managed fund asset classes, sectors and geographic of hedge fund portfolios (see Figure 4). markets. They enable clients to gain From equity market neutral to event- access to a broad portfolio of hedge driven strategies, our portfolios span the funds that would require a significantly risk/return spectrum, offering tailored higher minimum investment if invested strategies to fit individual investment in directly and permit them to draw objectives. We utilize a proprietary, on their investments without the systematic investment discipline for longer lock-up periods of other funds.

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Hedge Funds

SINGLE-MANAGER FUNDS These managers employ a combination Investors interested in targeted of investment strategies such as sta- strategies can choose from a variety of tistical arbitrage, convertible arbitrage single-manager funds. Because these and high yield arbitrage, among others. funds focus on one specific manager, We also offer these funds externally one specific investment strategy or both, in special circumstances as separately they can offer the greatest potential managed portfolios, providing cus- for growth, although they also generally tomized strategies, or co-investments carry a higher degree of risk than with Citigroup through the Special fund of hedge funds portfolios. Investment Opportunities group.

Figure 4*** HISTORICAL PERFORMANCE Investment Style Risk/Return (January 1990-September 2002)

25 Long/Short Equity [1.5] 20 Distressed Securities [1.5] Convertible Global Arbitrage 15 Merger Macro [2.0] Arbitrage [1.5] [1.4]

10 Equity Market

% Annualized Return Neutral Statistical [1.8] Arbitrage Fixed [1.3] Income Arbitrage 5 [0.8]

0 012345678910 % Annualized Risk *** See page 20. ( ) Sharpe Ratio

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Real Estate

Citigroup Alternative Investments is gain access to investment vehicles WE JOIN pleased to be able to share Citigroup’s that would normally require a much THE POWER OF long tradition of real estate investments higher minimum investment if invested with our clients. Our real estate in directly. CITIGROUP’S investment centers give investors Like our other investments, real estate CAPITAL WITH access to proprietary deal flow in opportunities are filtered through our residential, office, industrial, retail rigorous due diligence process. We EXPERIENCED and land properties in growing and thoroughly analyze each operating established markets around the world. partner’s financial soundness, its skill REAL ESTATE For optimal diversification, clients can and consistent execution of a chosen OPERATORS, co-invest in commingled funds, which investment strategy and its ability to are generally built around a common provide a high level of after-sale client INVESTING focus on a geographical region, invest- support. We carefully examine each ment strategy or investment objective. operator’s existing investments as ALONGSIDE Alternatively, opportunities exist to well as their underwriting, taking into OUR CLIENTS. invest in individual real estate assets account detailed market fundamentals, with a small number of other investors. physical characteristics and cash flows. Our seasoned group of real estate We monitor our partners throughout experts is skilled in acquisitions, finance the investment holding period. and asset management. We bring Our due diligence carries through to years of experience to the selection each individual investment. We conduct and monitoring of real estate operators, a rigorous top-down/bottom-up review and continually evaluate economic of the macro market as well as the local and market conditions on an ongoing markets we target for investment. basis across a range of property sectors We perform extensive financial analysis and geographic regions in order to on all prospective investments: if we do identify opportunities. Important to not co-invest, we do not offer a real note, when clients invest with us, they estate product.

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REAL ESTATE OPPORTUNITIES CAN INCLUDE

EQUITY Private • Structured Direct Equity Co-Investments • Real Estate Funds Public • REIT Stocks • Publicly Traded Real Estate Property Companies • Master Limited Partnerships (MLP’s)

DEBT Private • Senior Loans • Bank Syndicated Debt • Mezzanine Debt • Non-Performing Loans Public • CMBS—Investment Grade • CMBS—Below Investment Grade

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OUR UNRIVALED GLOBAL PRESENCE TRANSLATES INTO ACCESS TO GREATER DEAL FLOW—A SIGNIFI- CANT ADVANTAGE.

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Private Equity

Our clients benefit from an uncom- Our private equity offerings provide REALIZING monly broad and deep private equity diversification across many dimensions, network. Our unrivaled global presence including investment strategy, stage THE FULL gives us far-reaching insight on of the enterprise, industry sector and market conditions, helping us identify geographic region. We also can provide POTENTIAL OF new investment opportunities in certain features (such as principal PRIVATE EQUITY advance of the marketplace. All of protection or liquidity) that investors these capabilities enable us to deliver may require. We offer both single- OPPORTUNITIES some of the most promising private manager funds that invest in a specific REQUIRES equity opportunities to our clients. sector and multi-manager funds By nature, private equity is a long- focusing on the mix of styles, strategies BUSINESS ACCESS, term asset. Hence, the skills required and sectors that our oversight board BROAD-BASED for investing successfully in private deems appropriate. equity differ from those needed to Clients will find a spectrum of RESEARCH evaluate other kinds of investments. investments ranging from early-stage Realizing the full potential of private AND THE GLOBAL venture capital investments, which equity opportunities requires long-range vision, significant business expertise, have a higher return/higher risk STRATEGIC broad-based research, extensive due profile, to leveraged buyouts or PARTNERSHIPS diligence, innovative structuring and mezzanine financings, as well as the global strategic relationships that the ability to invest directly in a THAT CITIGROUP Citigroup brings to the table. business opportunity side-by-side with Citigroup’s own capital. BRINGS TO Citigroup’s skill in selecting over 150 separate private equity funds in which Clients can achieve access to private THE TABLE. to invest our capital means we have equity opportunities at lower investment deep experience in evaluating the minimums than would typically be private equity investment community. required for direct investment.

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Managed Futures

Our Managed Futures programs multi-advisor diversified funds, single- MANAGED provide access to global futures and advisor funds and equity overlay FUTURES HAVE commodities markets by employing strategies. We may consult with professional money managers called institutional and ultra high net worth THE POTENTIAL Commodity Trading Advisors (CTAs). clients to customize managed futures CTAs use proprietary trading methods products to correspond to their TO ENHANCE and money management techniques to risk/reward preferences. OVERALL establish long or short market positions We select Commodity Trading Advisors in commodity, financial futures and from the entire universe of CTAs and PORTFOLIO RETURN foreign currency markets around the interact regularly with them. Our actively world. This broad geographic exposure managed portfolios are the result of WHILE REDUCING allows for participation in global market both qualitative and quantitative due trends and economic events. As a diver- diligence and are subjected to daily, OVERALL sification strategy, a managed futures weekly and monthly monitoring as well program has the potential to enhance as ongoing rebalancing and reallocation. PORTFOLIO RISK. overall portfolio return and, at the same time, reduce overall portfolio risk. Overseeing more than $1.4 billion3 in assets, our Managed Futures group has more than 20 years’ experience and is the product of the merger of three Commodity Pool Operators that date back to 1971. It was the first Commodity Pool Operator to create a managed account program (1971), an open-ended fund (1993) and a capital protected fund (1995). Our Managed Futures products span the risk/return spectrum and include

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WE CREATE SPECIAL INVESTMENT OPPORTUNITIES investors. Where appropriate, we Our Special Investment Opportunities will provide customized funds and OPPORTUNISTIC (SIO) group develops, manages and enhanced structures through the use administers a range of structured of leverage and by offering principal AND INNOVATIVE alternative investments. SIO has an preservation strategies. integrated product development and Underlying assets for SIO products STRUCTURED management platform that draws span the range of fixed income FUNDS AND upon professionals with extensive assets, including investment grade experience in research, product and high yield bonds, bank loans INVESTMENT development and structuring, liability and tax-exempt securities. They can management, risk analytics, client potentially include equities, project STRATEGIES THAT servicing, operations and process finance, private equity and other USE OUR development, systems and technology, emerging asset classes. legal and accounting. Working closely Products can be managed either DISCIPLINED with affiliated and third-party portfolio in-house, by third-party managers managers allows us to screen innova- selected after extensive due diligence PLATFORM AND tive market opportunities for new for their overall investment and structured funds and arbitrage strate- strategic asset class expertise or PROCESSES. gies. We take pride in our independent by a combination of both. research and proprietary strategy validation processes. STRATEGIES CAN INCLUDE Products may take the form of single- • Credit Spread Arbitrage manager hedge funds or special purpose vehicles that can be accessed • Municipal Arbitrage through managed accounts, closed • Capital Structure Arbitrage or open-ended funds, or they can be • Credit Enhancements/Repackaging customized, on a case by case basis, to meet the investment needs of • Third-Party Guaranteed Funds institutions and ultra high net worth • Structured Notes

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Research and Development

RESEARCH investments. Using proprietary quan- WE DELIVER Citigroup Alternative Investments titative models, we develop products considers intellectual leadership to tailor investments to meet clients’ NEW WAYS OF critical to its mission. Underlying our individual objectives for return, risk, research team’s efforts are three liquidity and tax management. THINKING ABOUT principles: innovation, value creation Second, we share new and useful ways and integrated strategies. of thinking about alternative investments ALTERNATIVE with our clients, enabling them to make INVESTING Innovation more informed investment choices, Our research focuses not just on including ways of incorporating illiquid AS A WHOLE. providing innovative research on alter- alternative investments into their native products, but on creating new overall investment strategy; and how ways of thinking about alternative to appropriately value private-market investing as a whole. To this end, we investments like leveraged buy-outs, call on Citigroup’s impressive array real estate and venture capital. of internal resources as well as some of the foremost specialists at leading Integrated Strategies academic institutions for advanced Citigroup Alternative Investments’ quantitative and qualitative research. research is integrated with that of other Citigroup research teams located in Value Creation various product centers, enabling us Our research process focuses on to draw on the company’s overall providing practical insight on alternative wealth of knowledge and expertise investments in two ways. of specific markets. First, it provides disciplined research to support our investment process and product development—for example, innovations on how to include alternative assets in a portfolio of traditional

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Notes This document has been prepared by Citigroup Alternative Investments for the personal use of * Source: Venture Economics, TASS Hedge Fund clients of Citigroup Alternative Investments, Citigroup Private Bank, Salomon Smith Barney, the Database, Rosen Consulting Group, Lend Lease Global Relationship Bank and Citigroup Asset Management. Real Estate Investments; Citigroup AI analysis. ** Source: Citigroup Alternative Investments analysis All expressions of opinion are subject to change without notice and are not intended to be a based on PerTrac’s analytical models. U.S. Equity: guarantee of future events. This document is for information purposes only, does not constitute Barra S&P 500 Index (1/75-12/01). World Equity: a solicitation to buy or sell securities or provide services and does not replace any confidential MSCI The World Index (1/70-12/01). U.S. Bonds: Private Placement Memorandum. Opinions expressed herein may differ from the opinions Lehman Bros. Aggregate Bond Index (1/76-12/01). expressed by other businesses of Citigroup. Although information in this document has been World Bonds: SSB World Gov’t Bond Index (1/85- 12/01). Hedge Funds: HFRI Fund of Funds Index obtained from sources believed to be reliable, Citigroup and its affiliates do not warrant the accuracy (1/90-12/01). Private Equity: Venture Economics or completeness and accept no liability for any direct or consequential losses arising from its use. Private Equity Universe (Pooled Average) (1/90-9/01). Real Estate: NCREIF Property Index (1/78-12/01). The investments described herein contain risks at varying levels depending on the investment Leveraged Loans: CSFB Leveraged Loan Index selected, including lack of liquidity and the potential for loss of all or a part of the amount invested. (1/92-12/01). Please note that investing in alternative investments is not suitable for all clients. They are intended Performance statistics based on compounded for high net worth, sophisticated investors who can bear the economic risks involved. Risk factors quarterly returns that have been annualized. are described in more detail in the offering materials, which should be carefully reviewed prior to Correlations based on quarterly returns. Because making a decision to invest. Where appropriate, potential investors should consult with their correlation is measured between asset classes, we have used 1/92-9/01, the common timeframe, professional advisers. between all of the asset classes. “The Citigroup Private Bank” provides private banking clients access to a broad array of products and ***Source: Citigroup Alternative Investments’ analysis based on: Hedge Funds: HFRI Convertible Arbitrage services available through bank and non-bank affiliates of Citigroup. Not all products and services Index (1/90–9/02), HFRI Distressed Securities are provided by all affiliates or are available in all locations, and not all investments are suitable for Index (1/90–9/02), HFRI, HFRI Equity Hedge Index all investors. (1/90–9/02), HFRI Equity Market Neutral Index (1/90–9/02), HFRI Fixed Income: Arbitrage Index Before making an investment, all clients should carefully read the applicable confidential Private (1/90–9/02), HFRI Macro Index (1/90–9/02), HFRI Placement Memorandum and other offering material and discuss the suitability of such investment Merger Arbitrage Index (1/90–9/02), HFRI Statistical with their legal, tax, accounting and financial advisers. In the U.S. Region of The Citigroup Private Bank, Arbitrage Index (1/90–9/02). relationship managers and private bankers are registered representatives of Citicorp Investment Annualized performance statistics based on com- Services (“CIS”), member NASD/SIPC and an affiliate of Citibank N.A. (“Citibank”). In the United Kingdom, pounded monthly returns. Sharpe ratio is based on a risk-free rate of 5%. this document is approved by Citibank. Citibank and Citibank International plc, 41 Berkeley Square, Past performance is not necessarily indicative of London W1J 5AN, are regulated by the Financial Services Authority, and clients that have any doubt future results of any particular investment. Investors about the suitability of an investment should contact Citibank for advice. Clients of Salomon Smith Barney cannot invest in an index. should contact their Financial Consultant. 1 Source: TASS Research Investments are not bank deposits, are not insured by the FDIC or any other government entity, 2 Source: The Citigroup Private Bank, Commonfund Benchmark Study of portfolio allocations at endow- are not obligations of or guaranteed by Citibank or Citigroup or any of their respective affiliates, ments and foundations. and involve investment risk, including possible loss of the principal amount invested. 3 As of January, 2003.

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Printer to add vertical pocket glue glue flap Contact us to find out how Citigroup Alternative Investments can become an integral part of your overall portfolio strategy.

≥ NEW YORK Citigroup Alternative Investments 399 Park Avenue, 7th floor New York, NY 10043, USA t. 212-559-5254

≥ LONDON Citigroup Alternative Investments P.O. Box 242, 336 Strand London WC2R 1HB United Kingdom t. 44-207-500-0711

≥ HONG KONG Citigroup Alternative Investments 43F Citibank Tower Citibank Plaza 3 Garden Road, Central Hong Kong t. 852-2868-8776

≥ TOKYO Citigroup Alternative Investments c/o Citigroup Securities (Japan) Ltd. Tokyo Ginko Kyokai Building 1-3-1 Marunouchi Chiyoda-ku, Tokyo 100-0005 Japan t. 813-5220-8200

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