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RWC Europe Absolute Alpha Fund December 2010
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Transcript of Rwc partners

Page 1: Rwc partners

RWC Europe Absolute Alpha Fund December 2010

Page 2: Rwc partners

2

Introduction to RWC Partners

• RWC Partners is an independent investment firm

• Focus is exclusively on high-alpha asset management to institutions, professional investors and intermediaries

• Business is built around highly-talented portfolio managers, an intense focus on performance and a strong risk

management culture

• Majority of equity in RWC Partners is owned by RWC personnel – the balance is owned by Schroders

• 7 investment teams

• UK Equity John Innes

• European Equity Ajay Gambhir

• US Equity Mike Corcell

• Global Convertible Bond Davide Basile

• Global Growth Equity Priya Kodeeswaran

• Equity Income and Value Nick Purves & Ian Lance

• Macro, Rate & Currency Peter Allwright & Stuart Frost

• 63 personnel of which nearly half are investment professionals

• Product focus: UCITS III & non-UCITS high alpha & absolute return funds

Page 3: Rwc partners

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Introduction to RWC Europe Absolute Alpha

• Long / Short, pan-European equity strategy

• Strategy first launched in 2003 at JPMorgan Asset Management

• Launched strategy in offshore form at RWC Partners in October 2007

• Launched UCITS III Fund in July 2010

• Fund aims to make significant returns with a low correlation to the equity markets

• Historically has achieved over 13.9% annualised return through the life of the strategy with a volatility of 7.8%

• Over the same period MSCI Europe index has achieved 4.8% annualised returns with 15.5% volatility

• Key differentiators of the approach are:

• A unemotional approach to equity investing – avoiding:

• Market noise & crowded, thematic trades

• Emotional attachment to company stories and personalities

• A clear methodology for narrowing the universe to a small subset of opportunities

• Focuses research on money making opportunities

• Maximises the exposure to the team‟s competitive advantages

• The approach provides good diversification from traditional fundamental & thematic stock pickers

Please note that throughout the presentation data will be shown from RWC Samsara. The fund is a monthly dealing, Cayman Islands domiciled fund. The investment ideas will be virtually identical to

those that will be used in RWC Europe Absolute Alpha but investors should expect a tracking error between the two strategies resulting from different structures and terms

Page 4: Rwc partners

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European Equities: portfolio management team

Ajay Gambhir – portfolio manager

• Joined RWC Partners as a Partner in May 2007 to launch Europe Long / Short hedge

fund named RWC Samsara

• 10 years JPMorgan Asset Management – Senior Portfolio Manager

• Recruited by Peter Harrison

• Lead portfolio manager for the highly successful “Dynamic” investment funds

• £4bn under management

• Top decile performance across the range of funds

• Lipper Award for Best Fund Manager 2007 *; “Investment Week” Best Fund Manager,

UK Equity Growth 2006

• Launched & Managed JPM Europe Dynamic Long / Short fund**

• Winner of Eurohedge award for Best European Hedge Fund 2006***

• 7 years at NM Rothschild's in corporate finance, and previously private equity

• Working within the Emerging Markets team

• Responsible for a variety of projects in Eastern Europe, South Africa & Asia Pacific with a

particular focus on the telecoms, media and utilities sectors

• Graduated from the University of Cambridge in 1990: MA (Hons) Electrical and

Information Sciences; CFA Charterholder

* Ajay managed the fund from launch in Sep 2003; as joint manager until Jan 2005, and as sole manager from Feb 2005 until Mar 2007

** In the sub $500m category

*** Award given for 2006 performance

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European Equities: portfolio management team

• Ajay is responsible for portfolio management including risk positioning and risk management

• All analysts are generalists and Ajay is a key part of the analytical team

• Analysts typically have strong background in accountancy, balance sheet analysis, or economics

• Amos and Azlan sit within the broader RWC Operations team and have responsibilities on the support of the Europe Equity funds

Portfolio Management

Steve Robertson

Krishna Chokshi

Luke Vose

Analysis Execution & Analytics

Nick Daniel

Amos Dadzie

Azlan Ali

Ajay Gambhir

Note from time to time the individuals from operations dedicated to the strategy may be changed1 CASS Business School 1 year intern

Michael Kelley1

Page 6: Rwc partners

The Power of Compounding – performance since inception of strategy

6

Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – end October 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager.

Equity index used is MSCI Europe Index (TR).

Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested

-15%

5%

25%

45%

65%

85%

105%

125%

145%

165%

Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10

Cum

ula

tive R

etu

rn

Performance of Strategy since inception

versus equity index and hedge index

Cumulative Gambhir long / short Strategy Cumulative MSCI Europe TR Index EUR (monthly) Cumulative CSFB Tremont L/S Equity EUR (monthly)

Note: area relates to the period when the portfolio manager was in between companies and was not managing a strategy

% of up-

months

% of down-

monthsTotal Return

Annualised

ReturnAnnualised Vol Sharpe Ratio Correlation

Strategy 71% 29% 138.4% 13.9% 7.8% 1.5 0.55

Equity Index 60% 40% 37.1% 4.8% 15.5% n/a n/a

Page 7: Rwc partners

Positive Skew with Limited Drawdowns

7

Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – end October 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager.

Equity index used is MSCI Europe Index (TR).

Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested

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Monthly Return

Strategy - Distribution of Monthly Returns

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Monthly Return

Index - Distribution of Monthly Returns

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-2%

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Monthly Return

Index - Distribution of Monthly Returns

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-15%

-14%

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Monthly Return

Strategy - Distribution of Monthly Returns

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Performance of RWC Europe Absolute Alpha Fund (Net of Fees)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2010RWC EAA - - - - - - -0.5%** 0.1% 2.4% 2.7% 1.1%* - 5.8%

MSCI Europe - - - - - - -0.7%** -1.2% 3.4% 2.5% 0.8%* - 4.8%

Source: RWC Partners / Bloomberg. Data shown is for the period 29 July 2010 – 25 November 2010, net of fees for class B EUR. Equity index used is MSCI Europe Index (TR).

*Data shown up-to 25 November 2010 ** July performance date relates only to the last day of July ***Annualised Volatility calculated using daily returns

Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested

% of up-

months

% of down-

monthsTotal Return

Annualised

ReturnAnnualised Vol Sharpe Ratio Correlation

Strategy 80% 20% 5.8% 18.4% 6.99%*** 2.5 0.8

Equity Index 80% 20% 4.8% 15.0% 14.3%*** n/a n/a

-1%

0%

1%

2%

3%

4%

5%

6%

Jul 10 Aug 10 Sep 10 Oct 10 Nov 10

Cu

mu

lative

Re

turn

RWC Europe Absolute Alpha Fund

RWC Europe Absolute Alpha Fund

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RWC Europe Absolute Alpha

What do we do?

• Focus purely on specific financial metrics that explain a company‟s dynamics

• Management & third parties are only used to explain observations in the financial metrics

• Disciplined use of market valuations to ensure asymmetric payoffs

• Liquid names ensures investment decisions remain objective

What don‟t we do?

• Have dominant single factor, thematic or single stock risk

• Become distracted by noise – third party views, opportunistic but non-core ideas

• Have an emotional attachment to an idea or a company

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Investment Process – pragmatic, dispassionate and logical

Stock Analysis Priorities

• Business model assessment (e.g. Dupont, Porter)

• Sensitivities to change (e.g. price elasticity, operational leverage)

• Asset and earnings based valuation assessment (e.g. P/B, EV/S, P/E, Yield)

• Utilise stock valuation „ceilings‟ and „floors‟ to skew risk and reward

Exposure Analysis Priorities

• Risk positioning (e.g. options skew, implied volatility, surveys

of investor confidence)

• Other asset classes (e.g. bonds, commodities and

currencies)

• Economic Outlook (e.g. Purchasing Managers Index, lead

indicators, GDP revisions and yield curve analysis)

Clinical, objective, fundamental analysis coupled with understanding investor‟s

behavioural biases

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Three types of LONG opportunity

1. Positive turning points: companies which have suffered

operational difficulties, where analysis implies fortunes

could improve yet valuations imply neglect or bias

2. Undervalued stocks where positive change in either

margins or sales is foreseen

3. Companies where the growth is under-recognised due

to investor inertia and scepticism

Two types of SHORT opportunity

1. Negative turning points: profitable companies where

either the rate of returns is vulnerable and/or

valuations imply over optimistic future rates of return

2. Companies whose franchise is being eroded but the

valuation still appears prima facie reasonable

Investment Process

• Long and short books managed independently to generate positive returns

• Research is focused purely on five types of opportunity

• “Noise” and emotional influences are reduced to a minimum

• This focus ensures maximum efficiency of analytical resource

• Changes in sales, margins and balance sheet metrics drive investment opportunities

• Valuation provides timing indicators & risk management for positions

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Portfolio Construction & Risk Management

• Gross exposure reduced at times of performance stress

• Willing to be directional (including net short)

• Very limited or no exposure to illiquid stocks

• Typically able to liquidate 95% of portfolio within 5 days

Permitted / Maximum Range Typical Exposure

Long / short ratio Less than 2.75:1 1.5-1.75:1

Gross Range 50% to 250% 140% to 200%

Net Range -50% to +100% -20% to +60%

No of Long Positions n/a 50-90

No of Short Positions n/a 50-90

Long Max 10% (at market) Average 1.25%-1.75%

Short Max 5% (at market) Average 0.75%-1.25%

Illiquids Less than 10% in stocks less than $500m mkt cap Minimal

VaR(99% / 1 month)20% CSSF Maximum

10% Internal Maximum<12%

Counterparty Exposure 10% of NAV to any single counterparty n/a

Concentration limits Sum of position >5% cannot exceed 40% of NAV n/a

Page 13: Rwc partners

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RWC Europe Absolute Alpha – Summary

• Long / Short, pan-European equity strategy

• Strategy first launched in 2003 at JPMorgan Asset Management

• Launched strategy in offshore form at RWC Partners in October 2007

• Fund aims to make significant returns with a low correlation to the equity markets

• Historically has achieved over 13% annualised return through the life of the strategy with a volatility of 8%

• Over the same period MSCI Europe index has achieved 4% annualised returns with 16% volatility

• Key differentiators of the approach are:

• A unemotional approach to equity investing – avoiding:

• Market noise & crowded, thematic trades

• Emotional attachment to company stories and personalities

• A clear methodology for narrowing the universe to a small subset of opportunities

• Focuses research on money making opportunities

• Maximises the exposure to the team‟s competitive advantages

• The approach provides good diversification from traditional fundamental & thematic stock pickers

Page 14: Rwc partners

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Appendix

Page 15: Rwc partners

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RWC Europe Absolute Alpha – Term Sheet

• Launch Date 29th July 2010

• Liquidity Daily subscriptions & redemptions / daily NAV

• Fees A Share Class 2% AMC / 20% performance fee

• Performance Fee HWM Paid quarterly. Share class level high water mark

• Performance Fee hurdle EURIBOR (or share class currency equivalent)

• Fund structure Luxembourg SICAV (UCITS III) - sub-fund of the “RWC Funds” SICAV

• Currency EUR base currency – GBP, USD hedged share classes

• UCITS III designation “Sophisticated Fund” – VaR approach to exposure

Regulatory limit of max 20% VaR monthly with a 99% confidence level

• Administrator Banque Privée Edmond de Rothschild Europe

• Instruments used Long positions – cash equities / CFDs

Short positions – CFDs

• Local Registrations Luxembourg, Germany, UK, Switzerland, Italy*

• Tax UK Reporting Status Application will be submitted

Daily reporting available for Germany Tax Transparency

*Applications will be submitted

Page 16: Rwc partners

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Performance of RWC Samsara since launch

Source: RWC Partners. Data shown is for the period 16th September 2007 – end October 2010, net of fees.

Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10

Cum

ula

tive R

etu

rn

Performance of RWC Samsara since inception

versus equity index and hedge index

Cumulative RWC Samsara EUR Cumulative MSCI Europe TR Index EUR (since Samsara launch) Cumulative CSFB Tremont L/S Equity EUR (since Samsara launch)

Page 17: Rwc partners

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Performance of Strategy (Net of Fees)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2003JPM EDLS - - - - - - - - - 1.6% 0.5% -0.7% 1.4%

MSCI Europe - - - - - - - - - 6.9% 1.1% 2.9% 11.1%

2004JPM EDLS 5.3% 0.2% -2.3% -0.1% -0.2% 0.6% 0.8% 1.6% 3.9% -0.6% 1.7% 0.7% 12.1%

MSCI Europe 2.7% 2.9% -2.0% 1.8% -0.2% -1.7% -0.8% 1.8% 1.9% 1.2% 2.7% 1.9% 12.7%

2005JPM EDLS 4.5% 4.3% 0.5% 0.0% 3.1% 4.9% 1.6% 0.2% 2.7% -0.5% 3.5% 2.9% 31.4%

MSCI Europe 2.3% 3.1% -0.4% -1.7% 5.1% 3.5% 3.3% 0.3% 4.5% -2.5% 3.3% 3.5% 26.8%

2006JPM EDLS 5.8% 4.7% 5.1% 1.5% 0.1% 1.8% 1.6% 0.2% 2.5% 5.0% 0.4% 3.8% 37.4%

MSCI Europe 3.5% 1.9% 2.4% 1.1% -4.4% 0.8% 1.7% 2.9% 1.9% 3.5% -0.2% 3.8% 20.3%

2007JPM / RWC -0.1% 0.1% n/a n/a n/a n/a n/a n/a 0.4% 3.5% 0.1% 1.5% 5.5%

MSCI Europe 2.1% -2.0% n/a n/a n/a n/a n/a n/a 4.2% 2.9% -4.6% -1.4% 1.0%

2008RWC Samsara -1.6% -0.2% -1.1% 2.4% 0.4% -0.8% -1.7% -1.3% -5.6% -0.7% 0.8% 1.7% -7.7%

MSCI Europe -11.5% -0.9% -3.7% 6.5% 0.9% -9.9% -1.9% 1.8% -11.0% -12.8% -6.9% -3.9% -43.2%

2009RWC Samsara 1.7% 2.3% -0.9% 3.2% 0.4% -3.7% 0.9% 5.5% 2.3% -3.8% 1.0% -0.5% 8.2%

MSCI Europe -3.5% -9.3% 2.3% 14.4% 5.2% -1.0% 9.3% 5.1% 2.7% -2.1% 1.2% 6.2% 32.6%

2010RWC Samsara -1.0% 0.5% 2.7% -0.4% -2.9% -0.1% 4.8% 0.4% 2.4% 2.7% 1.1%* - 10.3%

MSCI Europe -2.9% -0.2% 7.5% -0.8% -4.6% -0.5% 5.0% -1.2% 3.4% 2.5% 0.8%* - 5.9%

Source: RWC Partners / Bloomberg. Data shown is for the period September 2003 – 25 November 2010, net of fees. Data is not included for the period December 2006-February 2007 as it is not available and the period March 2007 – August 2007 has not been included as Ajay Gambhir was not running a fund during this period. The life of the “Strategy” refers to the whole of this period excluding December 2006-August 2007. From launch until January 2005 Ajay Gambhir was co-fund manager. Equity index used is MSCI Europe Index (TR).

*Data shown up-to 25 November 2010

Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested

% of up-

months

% of down-

monthsTotal Return

Annualised

ReturnAnnualised Vol Sharpe Ratio Correlation

Strategy 71% 29% 138.4% 13.9% 7.8% 1.5 0.55

Equity Index 60% 40% 37.1% 4.8% 15.5% n/a n/a

Page 18: Rwc partners

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European Equities: portfolio management team

Steven Robertson

• Stock analyst with generalist responsibilities

• 2000-2007 – sell side analyst at Dresdner Kleinwort and Arden Stockbrokers

• 1997-2000 - UBS Warburg, ranked 1st in the Reuters rankings (1999 and 2000) for UK Software and Services

• BSc (Hons) Degree in Chemical Physics from Edinburgh University

• MSc (Hons) Degree from Cambridge University, and after his post-graduate studies he joined Coopers and Lybrand in Audit.

Krishna Chokshi

• Stock analyst with generalist responsibilities

• 2008-2009 – Societe Generale, analyst in the European financial sector

• 2004-2007 – PricewaterhouseCoopers

• Qualified as an accountant in the Banking and Capital Markets Assurance Division

• Responsible for leading parts of key client engagements such as the Money Markets business within Barclays Capital

• Graduated in 2004 from the London School of Economics with a First Class honours bachelor‟s degree in Accounting and Finance.

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European Equities: portfolio management team

Luke Vose

• Stock analyst with generalist responsibilities, CFA

• 2005-2010 – PricewaterhouseCoopers, Manager in the Valuations group

• Leading on business and intangible asset valuation

• Primary focus on valuation in mergers and acquisitions, demergers and disposals

• Broad cross-sector experience: industrial, retail, business services, real estate, automotive

and pharmaceutical

• Graduated in 2004 from Lancaster University with a First Class honours bachelor‟s degree in

Business Administration

Nick Daniel

• Portfolio assistant with dealing, stock screening and analytical responsibilities

• 2004-2010 – Senior equities & derivatives dealer, JM Finn & Co

• Dealing global equities, fixed income and foreign exchange

• Provided quantitative screening support for the firm‟s global fund

• 2000-2004 – Equities and derivatives broker, Lewis Charles Securities

• Graduated in 1999 with an honours bachelor‟s degree in Economics from University of London,

Queen Mary & Westfield College

Page 20: Rwc partners

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Risk Management

Portfolio Risk Management

• Non-thematic style avoids single factor exposure

• Portfolio risk focused at a stock level – over 50 positions on each side

• Portfolio analytics function gives output on a wide range of portfolio level risks and attribution

• Fund is highly liquid with position sizes matched to stock liquidity

Internal Risk Management & Oversight

• Separation of compliance, risk monitoring & portfolio management

• Independent review of all transactions on a daily basis.

• Dedicated risk management tools employed to monitor numerous risk factors and ad hoc analysis

• CEO monitors consistency of risk taking and style attributes and meets with portfolio manager regularly

Corporate Risk Management

• Revenue is diversified across investment teams, products and clients. Less than 50% of client assets are hedge funds.

• Business is managed to be profitable before performance fees are generated

• Independent compliance monitoring firm, IMS, complete full compliance review bi-annually

• Front end order management system (with trip wires and full audit trail), Latent Zero, being implemented

Independent Fund Monitoring

• RWC Asset Management LLP act as the fund‟s advisor

• BPERE (Rothschild) are independent administrator &

custodian

• Deutsche and UBS act as prime brokers

• AB Fund Services appointed for local Luxembourg and

UCITS oversight

• Counterparty exposure limited to 10% of NAV

• Daily production and reconciliation of NAVs

• Daily cash reconciliation

• Independent Board of Directors speak with portfolio manager

and CEO once a quarter

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Unconstrained long only funds historically managed by Ajay Gambhir

• JPM UK Dynamic

• $1.2bn (February 2007)

• AAA rated by Forsyth-OBSR

• AA rated by Standard & Poor‟s

• S&P 5 stars

• Over 5 years up until 31.12.06 the fund returned 107.1% net of fees compared to 49.9% for the FTSE-All Share benchmark,

placing it in the top 10 funds out of 214 in its peer group

• JPM Europe Dynamic (ex UK)

• $362m (February 2007)

• AAA rated by Forsyth-OBSR

• AA rated by Standard & Poor‟s

• Since inception up until 31.12.06 the fund returned 94% compared to the FTSE W.Europe benchmark return of 64.3%,

placing it 2nd out of 89 funds in its peer group

• JPM Europe Dynamic

• $2.08bn (February 2007)

• AA rated by Standard & Poor‟s

• S&P 5 stars

• Over 5 years up until 31.12.06 the fund returned 79.3% compared to the FTSE W.Europe benchmark return of 35.1%,

placing it 10th out of 235 funds in its peer group

Page 22: Rwc partners

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RWC Partners – company structure

Full biographies can be provided upon request.

Board of Directors

Chief Executive Of f icerPeter Harrison

Management Committee Investment Teams

Europe EquityAjay Gambhir

US EquityMike Corcell

UK EquityJohn Innes

Global Growth EquityPriya Kodeeswaran

Convertible BondsDavide Basile

Equity IncomeNick Purves & Ian Lance

Rate & CurrencyPeter Allwright & Stuart

Frost

FinanceChris Maude

Risk ManagementPeter Harrison

ComplianceJames Kaufmann

Business DevelopmentDan Mannix

OperationsLen Munden

Page 23: Rwc partners

RWC Partners – Investment Capabilities

Portfolio Manager Fund Name Structure Launch DateStrategy

AUMTarget

European Equity Ajay Gambhir

RWC Europe Absolute Alpha Fund UCITS III July 2010

$279.2mAbsolute returns with a high risk adjusted return

profile relative to equity marketsRWC Samsara Fund Non-UCITS September 2007

Equity Income & Value

Nick Purves

Ian Lance

John Teahan

RWC Enhanced Income Fund UCITS III October 2010 $45.9m A yield of 7% with quarterly distributions

RWC Income Opportunities Fund UCITS III September 2010 $1162.9mLong-term outperformance of the FTSE All-

Share

Global Growth Equity Priya Kodeeswaran RWC Advance Absolute Alpha Fund UCITS III February 2010 $10.6mAbsolute returns with a high risk adjusted return

profile relative to equity markets

UK Equity John Innes

RWC UK Focus Fund UCITS III December 2010 $253.0mLong-term outperformance of the FTSE All-

Share

RWC Pilgrim Fund Non-UCITS October 2000 $85.7mAbsolute returns with a high risk adjusted return

profile relative to equity markets

US Equity Mike Corcell

RWC US Absolute Alpha Fund UCITS III September 2009

$864.2mAbsolute returns with a high risk adjusted return

profile relative to equity marketsRWC Biltmore Fund Non-UCITS October 2009

Convertible Bonds Davide Basile RWC Global Convertibles Fund UCITS III December 2006 $914.0mStrong risk adjusted returns relative to the

equity and bond markets

Rate & Currency Peter Allwright

Stuart Frost

RWC Cautious Absolute Rate &

Currency FundUCITS III December 2006

$80.1m

Cash plus 3% net of fees

RWC Enhanced Absolute Rate &

Currency FundUCITS III Q1 2011 Cash plus 6% net of fees

RWC Macro Fund Non-UCITS January 2011 A return of 10-15% per annum

Firm AUM $3695.5m

Source for all data is RWC Partners Ltd.

Data reflects 26 November 2010 numbers.

23

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RWC Partners – AUM breakdown

Breakdown by Product Type

Source for all data is RWC Partners Ltd.

Data reflects end of October 2010 numbers (please note these are approximations).

Breakdown of Client Type

Non UCITS Funds13%

UCITS III Sicav44%

Segregated Accounts43%

Multi-Manager21%

Hedge Fund Advisory4%

Sub-Advised40%

HNW Individuals1%

Private Bank / Private Client Manager

19%

Pension Funds / Institutions / Insurance

10%

Platform4%

Proprietary / Corporate0.5%

Family Of f ice0.5%

Client Type - end August 2010

Page 25: Rwc partners

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RWC Partners – AUM breakdown

Source for all data is RWC Partners Ltd.

Data reflects end of October 2010 numbers (please note these are approximations).

AUM by Team AUM by Asset Class

Long only Equities, 41%

Long only Fixed Income, 27%

Absolute Return, 32%

UK Equity10%

European Equity6%

US Equity21%

Equity Income & Value34%

Convertible Bonds39%

ARC2%

Global Growth Equity1%

Page 26: Rwc partners

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This document contains information relating to RWC Partners Limited and RWC Asset Management LLP (collectively, “RWC Partners”), each of which is authorised and regulated in the United Kingdom by

the Financial Services Authority (“FSA”), and services provided by them and may also contain information relating to certain products managed or advised by RWC Partners (“RWC Funds”).

RWC Partners may act as investment manager or adviser, or otherwise provide services, to more than one product pursuing a similar investment strategy or focus to the product detailed in this document.

RWC Partners seeks to minimise any conflicts of interest, and endeavours to act at all times in accordance with its legal and regulatory obligations as well as its own policies and codes of conduct.

The services provided by RWC Partners are available only for and this document is directed only at, persons that qualify as Professional Clients or Eligible Counterparties under rules of the FSA. It is not

intended for distribution to and should not be relied on by any person who would qualify as a Retail Client.

In addition, although certain sub-funds of RWC Funds SICAV are recognised schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”), all

other RWC Funds are unregulated collective investment schemes for the purposes the FSMA, the promotion of which either in or from the United Kingdom is restricted by law. Accordingly, this document is

issued and approved by RWC Partners Limited for communication by RWC Partners only to, and is directed only at, persons reasonably believed by it to be of a kind to whom it may communicate financial

promotions relating to unregulated collective investment schemes by virtue of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as

amended (the “Order”), or the Conduct of Business Rules of the FSA. Suchpartnerships, unincorporated associations, trusts, etc. falling within Article 22 of the Order. Any unregulated collective investment

schemes described herein are available only to such persons, and persons of any other description may not rely on the information in this document.

Where this document is received outside the United Kingdom, it is the responsibility of every person reading this document to satisfy himself as to the full observance of the laws of any relevant country,

including obtaining any government or other consent which may be required or observing any other formality which needs to be observed in that country. Nothing in this document constitutes an offer or

solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Interests in RWC Funds are available only in

jurisdictions where their promotion and sale are permitted.

No person receiving this document may further distribute it, or copies of it, to any other person or publish any of its contents, in whole or in part, for any purpose.

This document is provided for informational purposes only. The information contained in it is subject to updating, completion, modification and amendment. RWC Partners does not accept any liability

(whether direct or indirect) arising from the reliance on or other use of the information contained in it. The information set out in this document is to the reasonable belief of RWC Partners, reliable and

accurate at the date hereof, but is subject to change without notice. In producing this document, RWC Partners may have relied on information obtained from third parties and no representation or guarantee

is made hereby with respect to the accuracy or completeness of such information. Performance figures and data analysis within this document are shown and calculated net of fees and expenses and

represent the reinvestment of dividends and income. Market index information shown within this document is included to show relative market performance for the periods indicated and not as standards of

comparison. Such broadly based indices are unmanaged and differ in numerous respects from the portfolio composition of RWC Funds.

This document does not constitute offer or solicitation to anyone in any jurisdiction of or to acquire interests in any RWC Fund. Investment in any RWC Fund should be considered high risk. Past performance

is not a reliable indicator of future results and may not be repeated. The value of investments in RWC Funds and the income from them may fall as well as rise and may be subject to sudden and substantial

falls. Changes in rates of exchange may cause the value of such investments to fluctuate. An investor may not be able to get back the amount invested and the loss on realisation may be very high and could

result in a substantial or complete loss of the investment. In addition, an investor who realises their investment in RWC Funds after a short period may not realise the amount originally invested as a result of

charges made on the issue and/or redemption of such investment. The value of such interests for the purposes of purchases may differ from their value for the purpose of redemptions. No representations or

warranties of any kind are intended or should be inferred with respect to the economic return from, or the tax consequences persons include: (i) persons outside the United Kingdom; (ii) persons having

professional experience of participating in unregulated collective investment schemes; and (iii) high net worth bodies corporate, of, an investment in RWC Funds. Current tax levels and reliefs may change.

Depending on individual circumstances, this may affect investment returns. There is no guarantee that the securities referred to in this document will be held by RWC Funds in the future. Nothing in this

document constitutes advice on the merits of buying or selling a particular investment. This document does not constitute investment, legal or tax advice.

This document expresses no views as to the suitability or appropriateness of the RWC Funds or any other investments described herein to the individual circumstances of any recipient. Potential investors in

the RWC Funds should refer to the latest relevant Full Prospectus, Simplified Prospectus and latest Annual and Interim Reports for more information.

A United Kingdom investor may not have the right (otherwise provided under the FSA Handbook of Rules and Guidance) to cancel any agreement constituted by acceptance by or on behalf of an RWC Fund

of an application for interests in an RWC Fund. In addition, most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in an RWC Fund. Shareholders in

an RWC Fund will not receive compensation under the Financial Services Compensation Scheme in the United Kingdom in the event that the fund is unable or likely to be unable to satisfy claims against it.

This document is issued by RWC Partners Limited, a company registered in England and Wales (No. 03517613) with its registered address at 60 Petty France, London SW1H 9EU.