Ann: Annual Report to shareholders, page-24

Hi Vic

Yes, I could certainly hold both. And it would increase diversification. The reason I don't hold REH is essentially for valuation reasons. I can see its quality, I just am not convinced it's my best investment decision.

One other thought. There are repeated warnings/signs we might get a "correction" in house prices/consumer spending (in many western markets). I don't have a view on that - if or when - but I'd be much keener to buy REH / increase HWDN after or during such an event, than before it. We have had a very extended benign period - I feel if I buy now, I may be one of the last to the party. I accept that REH, as evidenced by its long-term performance record, is not especially cyclical but i. future shocks are not always like the most recent ones; and ii. the market's valuation of REH might be more affected. Again, this seems like a reason to invest elsewhere rather than REH for the moment. If we get a decent housing market/consumer spending shock, maybe I'll get a chance to buy REH at an attractive price, and if not, I'm happy with the other opportunities I can find. GLAH