Threadneedle Global Select Fund

Web conference6 March 2007

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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

Dominic Rossi

21 years’ experience

Jeremy Podger

20 years’ experience

Stephen Thornber

19 years’ experience

Andrew Holliman

9 years’ experience

Idea Generation

Best Ideas –

The Preferred List

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Typical Portfolio StructureSources of Alpha - Three Elements

Three elements:

1. Best ideas

– The Preferred List

2. Additional alpha and risk management

– Top 60

3. Incubation and nurturing of ideas

– The Discretionary List

4% 3%

28%

65%

56%

25%

0%

19%

0%

25%

50%

75%

PreferredList

Disc List Top 60 Not Held

Index Weights Portfolio Weights

A typical global portfolio

Source: Threadneedle InvestmentsAs at January 2007

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Market Background

• Recent correction was the result of a short-term reversal in risk appetite

• Economic fundamentals remain intact

• Growth opportunities abound

• Valuations are reasonable

A positive backdrop

Total return, in local currency

MSCI World Index

Source: Datastream

2200

2400

2600

2800

3000

3200

3400

3600

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

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Investment Themes

Emerging market development

sustains world growth

High corporate profitability globally

Sustained corporate investment cycle

Slowing earnings growth

Strong corporate cash flow

Mergers & Acquisitions

Most factors point to higher market levels

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Asia Pacific Europe Japan North America Emerging

Consumer Discretionary

Consumer Staples

Energy

Financials Real Estate

Healthcare

Industrials

Information Technology

Materials

Telecoms

Utilities

Colour shadings represent positions that deviate by 1% or more from the benchmark index Positions shown as at 31 December 2006

A more efficient and focused global portfolio

Portfolio Strategy

Overweight Underweight Neutral

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Performance summary

3 mths 6 mths 1 year 3 yearsSince

end Nov 2003*

To 31 January 2007

Threadneedle Global Select Fund

7.5% 14.7% 14.6% 77.0% 92.2%

MSCI AC World Free Index

6.3% 14.5% 17.0% 55.6% 68.3%

Source Standard & Poor’s, 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.

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Conclusion

• A strong team with complementary skills

• A clear process

• Positive market conditions

• Excellent performance

A compelling case

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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

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For investment professional use only.

Not for onward distribution to, or to be relied upon by, private investors.