Global Investments
International Limited

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ECONOMIC & MARKET COMMENTARY
January 2004

Investment Commentary

• US - Weaker Dollar Boosts Exporters' Earnings
  The US dollar continued to weaken during December, providing a boost to the earnings power of US exporters and helping to support the burgeoning US and global economic recovery. The S&P 500 and the NASDAQ ended the month 4.1% and 0.7% higher respectively in local currency terms.
  
  Economic data continued to show the growth baton switching from the consumer to the corporate sector and our funds reflect this theme, with overweights in industrial names and underweights in areas such as retail.
  
  
• UK - Market Strong Into Year-End With Currency Providing A Further Boost
  There was a positive tone in the UK market during December, with encouraging economic data and a pick-up in merger activity helping to support sentiment. The FTSE All Share ended the month 5.5% higher in dollar terms, thanks in part to a strong pound. We have upgraded our earnings forecasts for UK stocks and believe that the market will follow suit in the coming months. This will make valuations look attractive and should provide the scope for prices to move higher.
  
  
• Europe - News Flow Patchy But Weak Dollar Boosts Returns
  News flow was mixed in December, with strong economic releases, merger activity and selected earnings upgrades on the positive side and the scandal at Italian food company Parmalat on the negative.
  
  Overall, the positive news proved the bigger influence, and the FTSE World Europe ex UK Index ended the month 7.5% higher in dollar terms. We believe that the eurozone economy will continue to recover in 2004 and have upgraded our earnings forecasts accordingly. Our portfolios retain their cyclical focus.
  
  
• Japan & Far East - Moving Overweight In Japan
  The Japanese economy continues its export-led recovery, with the authorities repeatedly intervening to ensure that the recovery is not stifled by a strengthening yen. As long as the global economic recovery continues to unfold as expected and the currency situation does not deteriorate, we expect the Japanese market to perform relatively well, and have moved modestly overweight in Japan. In the rest of Asia, the strengthening global economy and recovering domestic consumption, together with attractive valuations and likely earnings upgrades, make us positive on markets.
  
  
• Bonds - Corporate Bonds Still Preferred
  Sentiment on interest rates ebbed and flowed during December, but lower than expected inflation readings in the UK and the US ultimately led investors to conclude that rate hikes were not on the short-term agenda. This helped government bonds to edge higher. Corporate bonds continued to perform well, with positive news such as the well-received new issue from GE outweighing poor news from the spectacular demise of Parmalat. Given the improving growth backdrop, we continue to favour corporate bonds over government issues.

Source: Zurich International. Dividends declared in the past are not necessarily a guide to the future. The guaranteed investment returns are the current returns available to investors holding the funds for the required term. The guaranteed investment returns are declared in the year of the investment and only apply in respect of the first 10 years of your investment or until the maturity date, if earlier. The interim and bonus dividend credited during the period from policy commencement to the 10 th policy anniversary or maturity date if earlier will not be less than the guaranteed investment returns. For full details of the terms and conditions governing the Guaranteed Accumulation funds, please refer to the 'guide to your investments' booklet, a copy of which is available on request. The guarantor is Zurich International Life Limited. Source: Zurich International. Figures based on bid prices on the 1st day of each month. Note: Past performance for all our funds is not necessarily a guide to future performance. Zurich International - Monthly Investment Bulletin to 1 January 2004 - Page 1 of 4 For further information on our funds, please see our web site at www.zurichintlife.com You can download all 4 pages of this Investment Bulletin here (Adobe Acrobat file format).
GAA AGM FUTURES FOUNDATION FUND Reporting Month December 2003
Key Benefits Short term nature of trading renders economic fundamentals and trends irrelevant. 24-hour trading ensures funds work harder. Diversified portfolio with low correlation to global equity markets. Proven track record with annualized rate of return 22.1%. Key Data Launch Price: USD 100.00 Current Price 31 December 2003: USD 91.51 Inception Date: 20 December 2002 (Weekly) Internet: www.gaafunds.com Fund Commentary The Fund followed last month's record profit with a small loss for the month of December. Trading activity was below normal levels, due to the festive period which restricted activity and caused market volumes to fall. Against the Yen the US dollar fluctuated without any clear direction over most of the month. The resultant lack of momentum was not optimal for the Fund's trading activities and as a result, Yen trading was responsible for most of the loss for the month. As the New Year begins, the trend is still clearly towards a weaker US dollar. While that overall trend remains in place, the Fund will be positioned to capture short term changes in volatility that are likely to result. The strength of the rally in US indices also provided opportunities to capture short term gains. Profits were made from the DAX, Nikkei, and S&P500 on the lead up to the Christmas break. The outlook for global stock markets remains positive for the early part of 2004. Overall stability of bond markets over the month again restricted trading activity. Going forward, increased volatility in 2004 may result in this being a key sector from which the Fund could benefit. GAA AGM Futures Foundation Fund Price Changes Week % Week % Week % Week % Launch 0.00% 31/03/03 -2.46% 30/06/03 0.13% 03/10/03 -0.97% 27/12/02 -0.11% 04/04/03 -2.29% 04/07/03 0.25% 10/10/03 0.61% 03/01/03 -0.19% 11/04/03 -0.30% 11/07/03 -0.94% 17/10/03 -1.55% 10/01/03 -0.14% 18/04/03 1.95% 18/07/03 -2.25% 24/10/03 2.97% 17/01/03 -0.29% 25/04/03 1.29% 25/07/03 0.59% 31/10/03 -3.55% 24/01/03 -2.41% 30/04/03 1.45% 01/08/03 -3.02% 07/11/03 3.90% 31/01/03 1.28% 02/05/03 0.31% 08/08/03 0.63% 14/11/03 3.56% 07/02/03 -1.04% 09/05/03 2.17% 15/08/03 -2.55% 21/11/03 0.53% 14/02/03 -0.50% 16/05/03 -2.97% 22/08/03 3.59% 28/11/03 5.74% 21/02/03 0.90% 23/05/03 0.36% 29/08/03 -1.68% 05/12/03 -3.07% 28/02/03 -0.19% 30/05/03 -1.94% 05/09/03 -0.52% 12/12/03 -0.40% 07/03/03 2.73% 06/06/03 0.21% 12/09/03 -4.65% 19/12/03 0.08% 14/03/03 -1.94% 13/06/03 -0.54% 19/09/03 4.72% 26/12/03 0.80% 21/03/03 -3.20% 20/06/03 -0.14% 26/09/03 -1.20% 31/12/03 -0.01% 28/03/03 -1.43% 27/06/03 1.39% 30/09/03 -1.31%
Corporate Strength Fund Manager: Global Asset Allocation Limited Investment Advisor: AGM Advisory Limited Custodian: Bank of Bermuda Limited Administrator: Management International Limited Auditor: PricewaterhouseCoopers Legal Council: Conyers, Dill & Pearman Regulatory Authority: Bermuda Monetary Authority	Contact Details Global Asset Allocation Limited Clarendon House, Church Street Hamilton HM 11, Bermuda www.gaafunds.com For further information contact us at info@gaafunds.com.
For more information and charts about the Fund's performance please download the Fund performance report here (Adobe Acrobat file format).
The Fund detailed in this document are class funds of GAA Investment Funds Limited (The Company), a Bermuda based mutual fund company. The company is an unregulated collective investment scheme under the UK Financial Services Act 1986, and therefore does not carry the protection provided by the UK regulatory system. This document is not an invitation to make an investment in neither the Company nor its various class funds. Applications for the shares of the various class funds issued by the Company will only be considered on the terms of the prospectus issued by the Company on 1 st march 2000 together with any supplementary prospectuses thereto (the Company Prospectus). This document is being issued by Global Asset Allocation Limited for information purposes only. Changes in foreign exchange rates may have an adverse effect on the value or price of the investment. No representation is being made by the Company or by its directors as to the accuracy of completeness of the information contained in this document. Past performance is not necessarily a guide to the future. The value of shares may fall as well as rise. Returns are paid gross and tax may be due according to the residence or domicile of the investor. Tax concessions are not guaranteed and may change at any time; their value will depend on individual circumstances. It is the investor's responsibility to ensure that the making and holding of an investment complies with any restrictions or other provisions of any relevant trust deed or any other regulations affecting the investor.
Please contact Global Investments for more information on Tel. (+66-2) 662-2009 or e-mail at info@globalinv.org.