REPUBLIC EQUITY TAX INCENTIVE SAVINGS PLAN 31st December 2008: Issue #10

INVESTMENT OBJECTIVE PLAN’S FACTS as at December 31, 2008 To achieve long-term growth primarily through capital Portfolio Manager : Trust & Asset Management appreciation in order to provide investors with returns Division that will assist in meeting their retirement goals. Inception Date : October 31, 2000 INVESTMENT STRATEGY Currency : TT Dollars The Plan invests in a diversified portfolio of equity and Minimum Annual : TT$1,200 fixed income securities that are considered attractive, Contribution which should enhance the overall return of the investment portfolio. Minimum Monthly : TT$100 Contribution To diversify and reduce the overall risk of the portfolio, the Plan invests in those economies and sectors with Plan Size : TT$37.60M good prospects. The Investment Manager adopts an Net Asset Value: TT$1.9783 active investment strategy and continually monitors the performance of the Plan, seeking at all times to ensure that the best possible asset allocation is attained in EQUITY SECTOR ALLOCATION as at December 31, 2008 accordance with prevailing economic and market conditions. Miscellaneous Manuf act uring 3.02% 9.48% PORTFOLIO PERFORMANCE Conglomerat es Average Annualised Returns to December 31, 20081 29.06%

Period 2H ‘08 1-yr. 3-yr. 5-yr. Inception Banking & Financial Returns (%) (19.44) (2.78) (2.87) 1.14 8.71 58.44%

Calendar Year Returns SCHEDULE OF EQUITY INVESTMENTS Period 2008 2007 2006 2005

Returns (%) (2.78) 0.66 (6.37) (6.30) Trinidad & Tobago ANSA Mc AL Ltd Praetorian Property Fund ANSA Merchant Bank Ltd Prestige Holdings Ltd PRICE TREND FROM INCEPTION Ltd Republic Bank Ltd Guardian Holdings Ltd RBTT Financial Holdings Ltd Unilever Caribbean Ltd T&T Ltd National Enterprises Ltd Trinidad Cement Ltd $2.5000 Neal & Massy Holdings Ltd Trinidad Publishing Co Ltd PLIPDECO West Indian Tobacco Co Ltd $2.2500

$2.0000 $1.9783 $1.7500 Scotia Group Jamaica Ltd GraceKennedy Ltd

$1.5000 National Commercial Bank Jamaica Ltd

$1.2500 $1.0000 Barbados National Bank Inc Fortress Caribbean Property Fund Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 First Caribbean International Bank Ltd Sagicor Financial Corporation

International Citigroup Inc PLC BP plc 1 st This assumes that the investor invested on December 31 of the Eastern Caribbean Financial Holding Co Ltd relevant year.

Disclaimer Notice: This investment is neither insured with the Deposit Insurance Corporation in nor is it guaranteed by any of the parties involved. This investment is at the sole risk of the investor. The value of this investment and any income from it may fluctuate and the investor may not receive the amount originally invested. Past performance is not necessarily a guide to future performance.

REPUBLIC EQUITY TAX INCENTIVE SAVINGS PLAN 31st December 2008: Issue #10

MARKET REVIEW reliance on the tourism sector and remittances from abroad. While the government has announced measures to The 2nd half of the year saw a change in investor sentiment, minimize the slowdown’s impact, 2009 is likely to be driven in part by the bailout of a number of financial difficult. institutions in the United States of America and Europe and a marked slowdown in global economic activity. As a result, In Trinidad and Tobago, official projections suggest that real the local equity markets recorded major declines. The GDP growth should slow to 3.5% in 2008, down from 5.5% Composite and All T & T Indices closed down 26.72% and in 2007. The slowdown is attributable to a decline in oil 23.12% respectively. production from oil fields and relatively stagnant output from the petrochemical sub-sector. For the year, the local equity market was down 14.16% and 3.83% as measured by the Composite and All T&T Indices The Central Bank of Trinidad and Tobago has forecasted a respectively. The gains recorded in the first half of the year further slowdown in economic growth in 2009 to about 2%. gave way to the negative market sentiment seen in the The slowdown would come largely from the energy sector, second half of the year. reflecting the impact of a global recession on output of oil, gas and petrochemicals. The non-energy sector is The regional equity markets were not immune from the projected to show only a modest increase in activity as events happening in the international markets. declines in manufacturing and construction are partly offset In Jamaica, the Composite and All Jamaica Indices closed by expansion in agricultural production. the 2 nd half of the year down 26.97% and 32.90% Twice since the budget presentation last year, the respectively and the year down 25.76% and 30.71% government has announced cuts in expenditure so as to respectively. Given its dependence on tourism and bring expenditure more in line with lower revenues. This will remittances, Jamaica was greatly affected, more than most have a spillover effect on economic activity. As the Trinidad other regional markets and this was reflected in the equity and Tobago economy slows down, companies will be market performance. challenged by the new operating environment. As a tourist-based economy, Barbados was also not spared Given that the local economy cannot be decoupled from as the Local Index closed down 15.89% and 11.90% for the what is happening internationally, the outlook for the equity second half of the year and the year respectively. market in the short term is for continued declines. Over the PORTFOLIO REVIEW medium term the outlook is more positive. There remain selected companies which are better placed to weather the During the 2nd half of the year, net contributions received storm and the Manager intends to concentrate the portfolio were invested in short-term fixed income securities. on these companies. Given the economic outlook going forward, the Manager has sort to position the Fund defensively. For further information or to enquire about our other MARKET OUTLOOK investment & retirement products, please contact us at:

The global slowdown affected the Barbados economy as Tel : (868) 625-4411 Ext. 3307/3302/3064/3316 or real GDP growth of 1.7% was achieved during the period Visit : republictt.com or January to September 2008 as against 3.5% for the same Email : [email protected] period in 2007. Republic Bank’s Investment Products: Recession in the UK and some European economies would Republic Caribbean Equity Fund : -22.45% (2008) impact adversely on tourism prospects and investment Republic TTD Money Market Fund : 6.10% (December 2008) flows. The effects of the global turmoil are likely to continue to be felt in the short to medium term. As such, growth in Republic Bank’s Individual Retirement Plans: 2009 is likely to be lower than that achieved in 2008. Republic Tax Incentive Savings Plan (TISP) : 3.50% (2008) Republic 134(6) Tax Incentive Savings Plan: 3.50% (2008) Amongst the major regional economies, Jamaica is most Republic 134(6) Equity TISP: 2.18% (2008) exposed to the global economic slowdown, given its

Disclaimer Notice: This investment is neither insured with the Deposit Insurance Corporation in Trinidad and Tobago nor is it guaranteed by any of the parties involved. This investment is at the sole risk of the investor. The value of this investment and any income from it may fluctuate and the investor may not receive the amount originally invested. Past performance is not necessarily a guide to future performance.