Rob Burnett

1
Rob Burnett

• Head of European Equities
• Neptune Investment Management
• European Opportunities Fund

2
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)

3
Meet the Team
Rob Burnett Financials Sector
Felix Wintle Healthcare Biotech Sectors
Jeremy Smith Oil Gas Sectors
Derek Bartlett Chief Economist
Chris Taylor Technology Telecoms Sectors
Robin Geffen Chief Investment Officer
Shelley Kuhn Consumer Sector
Ewan Thompson Mining Metals Sectors Deputy
Economist
Alex Breese Industrials Sector
Douglas Turnball Financials Sector Economist
Harriet Grieve Chemicals Utilities Sectors
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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

5
The Performance Story
Discrete calendar year performance (source
Lipper)
1st / 97
1st / 103
1st / 95

6
Three Overarching Fund Themes
Cash
New Old Europe
New World Order
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Cash Outperformance Yield, MA, 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
8
Why MA 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
9
New Europe

• Opportunities continue to abound from the GDP per
  capita convergence theme
• Optimal western listed, but with emerging Europe
  growth profile
• Greece, Turkey

10
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

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German Residential Property Downside Limited

• Low prices. No more subsidies
• Population growth to decline from 2010 but
  households will continue to rise until 2018
• Todays construction level too low

Federal Statistics Office
Source VDM
12
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
13
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

14
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

15
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

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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
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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
  Intl
• 7im Abbey AXA International
• Pershing Scottish Widows Scottish
  Equitable
• Vantage SIPP Centre Scottish Life
  Intl

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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.