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Rob Burnett Head of European Equities Neptune Investment Management European Opportunities Fund

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Rob Burnett. Head of European Equities Neptune Investment Management European Opportunities Fund. Neptune: The Essentials. An independent, privately-owned boutique house with over £1bn AUM Differentiated by our global sector, team-based investment process - PowerPoint PPT Presentation

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Page 1: Rob Burnett

Rob BurnettHead of European Equities

Neptune Investment Management

European Opportunities Fund

Page 2: Rob Burnett

Rob Burnett

Neptune: The Essentials

An independent, privately-owned boutique house with over £1bn AUM

Differentiated by our global sector, team-based investment process

Incentivised culture where each member of team own Company shares

Funds to be capped given high conviction, concentrated portfolios

Winner of Specialist Group of the Year Award 2006 (Investment Week)

Page 3: Rob Burnett

Rob Burnett

Meet the Team

Robin GeffenChief Investment Officer

Shelley KuhnConsumer Sector

Rob BurnettFinancials Sector

Derek BartlettChief Economist

Felix WintleHealthcare & Biotech Sectors

Jeremy SmithOil & Gas Sectors

Chris TaylorTechnology & Telecoms

Sectors

Ewan ThompsonMining & Metals Sectors

Deputy Economist

Harriet GrieveChemicals & Utilities Sectors

Alex BreeseIndustrials Sector

Douglas TurnballFinancials Sector

Economist

Page 4: Rob Burnett

Rob Burnett

Neptune European Opportunities Fund

Launched on 29th November 2002

Managed by Rob Burnett

‘A’ rated by Forsyth-OBSR

Fund size – over £85m (as at 26.01.07)

Income class introduced in January 2005

Available via key platforms & third party distributors

Page 5: Rob Burnett

Rob Burnett

The Performance Story

0

5

10

15

20

25

30

35

40

45

2003 2004 2005 2006

Sector AverageMSCI Europe ex UKNeptune European Opps

Discrete calendar year performance (source: Lipper)

1st / 95

1st / 97

1st / 103

%

Page 6: Rob Burnett

Rob Burnett

Three Overarching Fund Themes

Cash New & Old Europe New World Order

Page 7: Rob Burnett

Rob Burnett

Cash Outperformance: Yield, M&A, Private Equity

Fund has income class, current yield c.1.5%, numerous opportunities

European FCF generation has trebled in the last 5 years

European ex financials cash balances at an all time high

Source: Morgan Stanley

Source: Morgan Stanley

Page 8: Rob Burnett

Rob Burnett

Why M&A will continue to be strong in 2007

Financial imperative is clear

Financial fire power is strengthening

We are mid-way through this cycle, but danger of protectionism

Source: Exane BNP Paribas

Page 9: Rob Burnett

Rob Burnett

New Europe

Opportunities continue to abound from the GDP per capita convergence theme

Optimal: western listed, but with emerging Europe growth profile

Greece, Turkey

Page 10: Rob Burnett

Rob Burnett

“Old Europe”: German Competitiveness & Consumption

Entered euro at a competitive disadvantage, now level playing field

Consumers unleveraged. VAT increase, but savings rate decline

Asset reflation

Page 11: Rob Burnett

Rob Burnett

German Residential Property: Downside Limited

* Federal Statistics Office

Low prices. No more subsidies

Population growth to decline from 2010 but households will continue to rise until 2018*

Today’s construction level too low

Source: VDM

Page 12: Rob Burnett

Rob Burnett

German Residential Property: Downside Limited

Low house ownership ratio to rise, particularly in cities. Privatisation

Prices turned up in 2005 in all 5 major cities. Impact on consumer confidence

BUT: high tenant protection keeps yields low

Source: Federal Statistics Office

Page 13: Rob Burnett

Rob Burnett

New World Order: Europe the Gateway to Global Growth

Basic demographic and economic implications. Strong US parallels from 20th century

Savings rate at 30% will fall. Banking sector consolidation. Welfare provision

Civil unrest

Page 14: Rob Burnett

Rob Burnett

New World Order: Opportunity and Threat

Stage 1: Infrastructure Stage 2: Consumption

Changing patterns of global trade, lengthening business cycles: industrials

Exclusive consumption and staples

Page 15: Rob Burnett

Rob Burnett

After strong growth already: Energy in 2007

2007: All about non-OPEC & Saudi Arabia

Oil Services. Liquidity. Avoid the crowd

Alternative Energy: the political imperative

Page 16: Rob Burnett

Rob Burnett

Outlook

The prime risk factors are the US: housing / consumption and yen

carry trade

Path to the next economic cycle, rocky in the summer, less so now.

US 10 year, Oil

Inflationary trends. Stability of interest rates and growth. Risk premia

Neptune European Opportunities Fund offers outperformance, yield and low absolute risk profile

Page 17: Rob Burnett

Rob Burnett

Buying Neptune Funds

Intermediaries

Most funds are available on the following Platforms / Life Links:

— CoFunds — Funds Direct — Legal & General

— FundsNetwork — Lifetime Group — Standard Life

— Selestia — Nucleus — Skandia

— Transact — James Hay — Norwich Union Int’l

— 7im — Abbey — AXA International

— Pershing — Scottish Widows — Scottish Equitable

— Vantage — SIPP Centre — Scottish Life Int’l

Page 18: Rob Burnett

Rob Burnett

Important Information

This document is issued by Neptune Investment Management Limited (“Neptune”) which is authorised and regulated by the Financial Services Authority.

Neptune Funds are available to any persons that may be marketed to under the Financial Services and Markets Act (Promotion of Collective Investment Schemes) (Exemptions) Order 2001. Private customers should consult their Independent Financial Adviser or other authorised intermediary.

Please check with your professional financial adviser as to whether such products are available in the country in which you are resident. None of our products are available to residents in the United States.

Please remember that past performance should not be seen as a guide of future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.

Any past performance data that has not been shown is due to the information not being available.Neptune is not authorised to give investment advice and only provides information on Neptune products.