Bailard Institutional

Flash Report November 2013 Country Indices

COMMENTARY*

The nal communique of Chinas plenum pointed to some priorities critical to Chinas long-term growth: relaxation of the one child policy, establishment of deposit insurance, easing of IPO restrictions, allowing the creation of privately-owned medium/small banks, and an opening of the nations capital account. The ECB surprised markets with its decision to cut its ofcial rate to 0.25%. It is a late recognition that the Bank had been too restrictive in the face of deation and slowing growth. Renewed asset purchases may follow. Typhoon Haiyan wreaked destruction in the Philippines. From an economic perspective it may amount to 5% of the nations GDP. Unfortunately, compared to recent experiences in Japan and the U.S., the amount covered by insurance appears much lower. In Venezuela, Nicolas Im waging a war against private business Maduro is turning out to be Hugo Chavezs perfect successor. Where do they nd these guys? Visit the International Strategy section on Bailards Web site for more information.
COU NTRY/REGIONAL SNAPSHOT november 2013 total return (msci indices)* us$ terms with net dividends
-6% -4% -2% 0% 2% 4%

TOTAL RETU RN FOR SELECTED MSCI I N DICES, US$ TERMS WITH N ET DIVI DEN DS* (for periods ended 11/29/2013) USA ALL COUNTRY WORLD EX-USA (ACWI X-US) Canada EAFE (Europe, Aus, Far East) Japan UK PACIFIC EX-JAPAN Australia Hong Kong Singapore EUROPE EX-UK France Germany Netherlands Belgium Finland Austria Portugal Italy Greece Spain Denmark Norway Sweden Switzerland Israel EMERGING MARKETS South Africa EMERGING EUROPE Poland Russia Turkey LATIN AMERICA Brazil Chile Mexico EMERGING ASIA China India Indonesia Korea Malaysia Taiwan Thailand Australian Dollar Canadian Dollar Euro Yen Swiss Franc British Pound

COUNTRY/REGION

1 MONTH

2.8% 0.2% -0.9% 0.8% 1.5% 1.0% -2.8% -4.4% 1.1% -1.5% 1.3% 0.2% 4.3% 1.4% -0.7% 3.6% 2.5% 3.3% -1.8% -6.3% -0.3% 4.7% -2.6% 1.1% 0.6% 6.2% -1.5% -3.8% -3.7% 1.5% -5.1% -3.9% -4.4% -6.7% -6.3% 2.8% 0.2% 4.9% -3.4% -12.2% 1.2% -1.8% -1.5% -8.8% -3.5% -1.5% 0.2% -4.2% 0.2% 2.0%

3 MOS. 2013 YTD

10.8% 11.1% 6.3% 11.9% 10.0% 10.4% 8.6% 8.2% 9.3% 8.9% 14.5% 12.9% 19.8% 12.4% 11.2% 29.1% 12.8% 8.9% 18.1% 24.5% 24.5% 11.2% 6.9% 8.2% 10.2% 10.6% 10.0% 8.8% 10.8% 14.5% 8.8% 14.2% 8.7% 11.3% 0.0% 10.4% 10.5% 13.1% 16.6% -7.6% 12.9% 7.9% 5.7% 6.8% 2.6% -0.4% 3.3% -4.2% 3.2% 5.9%

28.4% 14.3% 4.0% 21.0% 26.2% 17.5% 6.8% 6.0% 10.9% 3.0% 25.1% 24.3% 27.8% 28.4% 23.0% 44.1% 16.7% 13.9% 19.6% 49.5% 28.4% 20.9% 7.7% 19.9% 25.3% 11.2% -1.2% -7.3% -1.9% 7.5% -0.8% -13.7% -11.2% -12.0% -20.7% -1.0% 3.3% 7.3% -6.9% -22.9% 5.7% 6.1% 7.5% -7.4% -12.0% -6.0% 3.3% -15.5% 1.3% 0.8%

12 MOS. CAL 2012

29.5% 18.2% 5.5% 24.8% 32.8% 19.9% 9.5% 9.1% 11.9% 6.1% 29.2% 28.7% 32.9% 32.0% 25.5% 50.4% 23.5% 24.7% 23.9% 53.3% 34.2% 23.9% 9.4% 25.0% 26.9% 4.3% 3.7% 2.0% 4.4% 16.6% 5.3% -7.7% -5.4% -5.2% -17.3% 3.1% 6.9% 12.5% -6.9% -21.6% 11.1% 10.4% 8.5% -1.8% -12.4% -6.2% 4.7% -19.4% 2.5% 2.2%

15.3% 16.8% 9.1% 17.3% 8.2% 15.3% 24.6% 22.1% 28.3% 31.0% 21.3% 21.3% 30.9% 20.6% 39.6% 14.6% 25.9% 3.5% 12.5% 4.5% 3.0% 31.3% 18.7% 22.0% 20.4% -4.7% 18.2% 18.7% 24.3% 39.2% 13.7% 64.2% 8.7% 0.0% 7.8% 29.1% 20.8% 22.7% 26.0% 4.6% 21.2% 14.3% 16.7% 34.5%

CURRENCY RETURN VS. USD

1 MONTH

3 MOS. 2013 YTD

12 MOS. CAL 2012

USA JAPAN EUROPE X-UK UK EAFE ACWI X-US EMG ASIA CANADA EMG MKTS PAC X-JPN EMG EUR LATIN AM

1.3% 2.3% 1.6% -11.0% 2.2% 4.6%

Sources: Bailard, MSCI/Datastream. * Past performance is no indication of future results. All investments involve the risk of loss. Please see reverse for important disclosures.

Sources: Bailard, MSCI/Datastream.

Bailard Institutional

DI S CLO S U R E S

The MSCI indices presented in this publication are free oat-adjusted market capitalization indexes that are designed to measure equity market performance of the geographic areas described. These indexes are presented with net dividends reinvested, in U.S. dollars. They are unmanaged and uninvestable and do not reect any transaction costs. The information in this publication is based primarily on data available as of November 29, 2013 and has been obtained from sources believed to be reliable, but its accuracy, completeness and interpretation are not guaranteed. In addition, this publication contains the opinions of the authors as of that date and such opinions are subject to change without notice. We do not think this publication should necessarily be relied on as a sole source of information and opinion. This publication has been distributed for informational purposes only and is not a recommendation of, or an offer to sell or solicitation of an offer to buy any particular security, strategy or investment product. It does not

take into account the particular investment objectives, nancial situations or needs of individual clients. Any references to specic securities are included solely as general market commentary and were selected based on criteria unrelated to Bailards portfolio recommendations or past performance of any security held in any Bailard account or fund. Investing in international stocks is riskier than investing in U.S. stocks. In addition to market risk and the risk of losing money, international stocks may be affected by uctuations in currency exchange rates, different accounting and nancial standards, social upheavals and political actions. Emerging market securities may be more susceptible to these risks. Charts and performance information portrayed in this publication are not indicative of the past or future performance of the Bailard International Equity Strategy or any other Bailard product. Past performance is no indication of future results. Bailard cannot provide investment advice in any jurisdiction where it is prohibited from doing so.

Published November 29, 2013 For more information, please call 800.BAILARD (800.224.5273) or visit www.bailard.com. Bailard Institutional 950 Tower Lane, Suite 1900 Foster City, California 94404