Threadneedle Global Select Fund

1
Threadneedle Global Select Fund

• Web conference
• 6 March 2007

2
Agenda

• Team Process
• Market Background
• Portfolio Strategy
• Outlook

3
The Global Team

• Small team - effective communication and quick
  action
• Complementary talents and skill sets
• Creative tension generating stock ideas
• Experienced and award-winning success
• Backed up by large, research-driven resource that
  is fully utilised
• Fully integrated with research process adding
  considerable experience

Idea Generation
Best Ideas The Preferred List
4
Typical Portfolio StructureSources of Alpha -
Three Elements
A typical global portfolio

• Three elements
• Best ideas
• The Preferred List
• Additional alpha and risk management
• Top 60
• Incubation and nurturing of ideas
• The Discretionary List

Source Threadneedle Investments As at January
2007
5
Market Background
MSCI World Index

• Recent correction was the result of a short-term
  reversal in risk appetite
• Economic fundamentals remain intact
• Growth opportunities abound
• Valuations are reasonable

Total return, in local currency
A positive backdrop
Source Datastream
6
Investment Themes
Most factors point to higher market levels
7
Portfolio Strategy
Overweight
Underweight
Neutral
A more efficient and focused global portfolio
Colour shadings represent positions that deviate
by 1 or more from the benchmark index Positions
shown as at 31 December 2006
8
Performance summary
Source Standard Poors, in US dollars, NAV to
NAV with income re-invested at NAV as at 31
January 2007. The fund is shown gross of charges
for fair comparison with the index. Fund is
valued as at 12 noon index is as at global
close. End of November 2003 marks the date upon
which the new global equity process was adopted
and the current team was initiated.
9
Conclusion

• A strong team with complementary skills
• A clear process
• Positive market conditions
• Excellent performance

A compelling case
10
Important Notes
Past performance is not a guide to the future.
The value of investments and the income from them
is not guaranteed and may fluctuate. Changes in
exchange rates may also cause the value of
investments to fall as well as rise. The mention
of specific shares should not be taken as a
recommendation to deal. The research or
analysis included in the report has been produced
by Threadneedle Asset Management Limited (an
associated company, regulated by the FSA) for its
own investment management activities, may have
been acted upon prior to publication of this note
and is made available here incidentally. In
some instances the information contained in this
note, other than statements of fact, may be
obtained from external sources believed to be
reliable but its accuracy or completeness cannot
be guaranteed. Any opinions expressed are as the
date of issue but are subject to change without
notice. Threadneedle Investments is a brand
name, and both the Threadneedle name and logo are
trademarks or registered trademarks of the
Threadneedle group of companies Threadneedle
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For investment professional use only. Not for
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