1

NESTOR Osteuropa FondsAccess to the

Eastern European Opportunities

(as of 31 Jan, 2006)

2

+158,0%

+210,8%

+98,5%

+160,9%

-50%

+0%

+50%

+100%

+150%

+200%

+250%

MSCI EM Eastern Europe NESTOR Osteuropa (best fund) Worst fund Median fund

Performance

Performance NESTOR Osteuropa Fonds

Source: S&P Micropal Data as of 31 Dec 2005

WARBURG INVEST takes overmanagement of the fund

+69.5 %+220.5 %+282.1 %+170.8 %+18.5 %

1 year:3 years:5 years:since launch:since launch p.a.:

+11.2 %+7.3 %

+43.1 %+32.1 %+69.5 %

2001:2002:2003:2004:2005:

Rankings

A

CHART: Performance NESTOR Osteuropa Fonds, benchmark & competitors

3

Portfolio (31.12.2005)

Country allocation

Russia =61,20 %

Poland =11,00 %

Caspian Region = 6,53 %

Hungary = 4,47 %

Czech Republic = 2,38 %

Others =4,67 %

Cash = 9,75 %

Sector allocation

Oil & Gas =39,10 %

Metals =12,82 %

Telecoms = 9,92 %

Banks =11,82 %

Utilities = 5,84 %

Media = 3,71 %

Others =16,79 %

-6

4

14

24

34

44

5464

74

84

94

104

114

124

134

May 2002 Dec. 2002 Dec. 2003 Dec. 2004 Dec. 2005

Fundvolume, Mio. EUR

4

Why Eastern Europe? – Ideas

„New“ Russia

The value system of people is changing

Development process and momentum of change is being underestimated

by the west

There are a lot undiscovered opportunities

Europe is going East

Growth potential is higher than in Western Europe

Process is well known and understood

5

Fund Outlook

Priorities

Russia

Commodities

Local Gazprom Shares via a special vehicle

Utilities

Mobile telephone companies

Poland

Western Companies with main businesses in Eastern Europe

Oil companies in Caspian region

New potential EU Members: Turkey, Bulgaria, Romania, Ukraine

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Growth and Perspectives

Russia finds itself in a growth trend

Big Central European countries grow less dynamically, with problems in state finance

Country GDP, in %Current account,

in % of GDP

Budget,

in % of GDP

01 02 03 04F 05F 01 02 03 04F 05F 01 02 03 04F 05F

Russia 5.0 4.3 7.3 7.0 6.0 11.0 8.6 9.4 9.9 7.5 2.9 1.4 1.3 0.6 0.0

Poland 0.9 1.4 3.5 5.5 5.5 -3.9 -3.5 -1.6 -3.1 -1.7 -5.3 -5.1 -5.3 -7.1 -6.0

Hungary 3.8 3.3 2.7 3.6 3.8 -2.1 -4.0 -6.5 -5.2 -8.4 -3.4 -9.6 -5.5 -4.7 -3.4

Czech Republic

3.1 2.0 2.8 3.8 3.4 -5.8 -6.4 -5.7 -5.7 -6.0 -5.1 -6.7 -7.9 -8.1 -4.9

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Russia: More promising than ever

Basic background information:

Improving political stability

Democratisation process should sustain, even though the

way is not easy

Structural reforms (not dependent on Yukos affair)

Basic economic information:

Russia has investment grade from all three major

agencies

Positive trend in capital flows after all

Corporate governance is improving

„Yukos“ failure is the „one-off“

8

Poland: Taking off

Basic background information:

EU membership is a stabilising factor

Political changes are not harming economic situation

Structural reforms are being continued

Basic economic information:

Polish companies have been restructured during the economic slowdown

Monetary policy is not an obstacle anymore for economic development

Competitive advantage through cheaper but nevertheless well educates

labour force

9

Caspian Region: Oil „Bonanza“

Basic background information:

No „Yukos-like“ oligarchy

Stable and investor friendly legislation in Kazakhstan

The political system is authoritarian and might stay so

Western Countries and especially USA have big political and

economic interests in the region

Basic economic information:

Region holds 5 % of world oil and gas reserves

Low costs and high profit margins

Transportation problems will be solved in the near future

The majority of western fund managers are not familiar with the region

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Approach

Portfolio Approach

Benchmark: MSCI EM Eastern Europe (EUR)

Combination of «Top Down» and «Bottom Up» approachies

No hesitation to go into cash in case of negative market development

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Approach

Top Down Approach: countries

Political situation: sources of disturbance / social peace / ethnic peace

Economic development, business climate

GDP Growth and industrial production

Current account

Fiscal discipline

Indebtedness

Interest rates

Inflation / money supply / currency reserves / capital flows

Development of real income / trends of labor market

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Approach

Bottom up: Stock Selection

Market capitalization 200 Mio. EUR

Shareholder-Value-Orientation Leading position in it‘s sector

Financials better than in average in the sector

„Western-minded“ and well trained management

Strategical use of information technology

Accounting under western standards

Audited by well known western companies

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Valuation

P/E

28.02.2005

14

Market Capitalization (28 Feb, 2005)

0

50

100

150

200

250B

illio

n U

SD

Index 227 102 59 41 31 112

Russia Turkey PolandCzech

RepublicHungary Nestlé

Peculiarities

Russia – 58 % in oil shares

Poland – 50 % in banking and telecom shares

Czech Republic – 85 % in 6 stocks

Hungary – 90 % in 4 stocks

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Risk and Return

Admixture of Eastern European stocks to international stock portfolio30.06.1995 - 30.06.2005, in €

MSCI USA

MSCI Japan

MSCI Germany

MSCI Europe

MSCI World

MSCI Russia

MSCI Poland

MSCI Hungary

MSCI Czech Repulic

MSCI Eastern Europe70% Europe, 20% USA,

10% Japan

-5%

+0%

+5%

+10%

+15%

+20%

+25%

+30%

10% 20% 30% 40% 50% 60% 70%

Risk p.a.

Ret

urn

p.a

.

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Fund outlook

Features of the fund worth mentioning

Active management, focused portfolio

Fund manager from the region

Deep understanding of specific regional risk profile of those markets

Investment in stocks out of benchmark universe many of those not monitored by most of our competitors

Currency hedging (EUR/USD)

NESTOR Osteuropa Benchmark MSCI EM EE

Number of stocks 54 54

Bluechips 50 % 80 %

Number of stocks out of benchmark universe

34 -

Stand: 31.12.2005

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The Fund manager

Mr. Gegham Ananyan WARBURG INVEST KAG since 01.04.2005

Oct 2004 – Feb 2005 Bankworld Inc. USA USAID Securities Market Strengthening Activity in

Armenia Securities Market Expert 2002

Jan – Sep 2004 IBM Business Consulting ServicesUSAID Capital Market Development Project in Armenia

Consultant

June 1998 – Dec 2003 Central Bank of ArmeniaFinancial Market Operations Department

Head of Department – Treasurer

Jan – May 1998 HSBC London, UKTreasurySecondment

July 1995 – Oct 1997 Central Bank of ArmeniaState Reserves Management Division

Head of Division

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The Fundmanager

Key skills and achievements

Key fields: reserves managements, capital markets, macroeconomics

Analytical, languages, managerial, teamwork, communication skills and contacts

Became Head of State Reserves Management Division of the Central Bank of Armenia in 1 year after graduation

A pioneer of state foreign exchange reserves management in Armenia (Author of the number of articles on reserve management)

Became Head of Financial Market Operations Department-Treasurer of the Central Bank in 4 years after graduation

Member of the Committee for Developing of Armenian Precious Metals Industry and Gold Market under the Prime Minister of Armenia

Made headed Committee for conducting primary auctions of Government Securities

As a key negotiator of the Central Bank and the Government of Armenia, was responsible for the relations with the international private financial institutions

Seconded for work in the Capital and Emerging Markets desks of the global international bank in London

Trainings, including „on-the-job“ in the leading world financial institutions: Deutsche Bank, UBS, Citibank, HSBC, Commerzbank, Credit Suisse First Boston, Chase

Manhattan, Bundesbank, Bank England, De Nederlandsche Bank, World Bank, IMF

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Investment focus:

Investment company:

Fund manager:x

ISIN Code:

Fund currency:

Initial issue:

End of commercial year:

Dividend policy:

Calculation of the Net Asset Value:

Registered for sale in:

Eastern- and South Eastern European equities

NESTOR Investment Management S.A., Luxembourg

Gegham ANANYAN,Warburg Invest KAG mbH, Frankfurt/Main

LU0108457267

Euro

21 February, 2000

June, 30

thesaurierend

täglich

Germany, Luxembourg, Austria

Die Fondsdaten

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Depository bank:

Partner for institutional investors:

Settlement:

KassenvereinClearstream

Fundsettle

Cut-off time:

Partner for any sales matters:

M.M.Warburg & CO Luxembourg S.A.

Daniela Schiffels, Sylvia Bono Tel: +352 45 45-279Fax: +352 42 45 45-405E-Mail: depotbankstelle@mmwarburg.lu

Delivery against paymentM.M.Warburg & CO Luxembourg S.A.30493086414878

on every valuation day in Luxembourg at the latestby 16 p.m.; application shall be dealt with at thefollowing valuation day

NESTOR-Fonds-Vertriebs-GmbHTel: 0800/063 78 67E-Mail: info@nestor-fonds.de

Die Fondsdaten

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NESTOR Investment Management S.A.

2, Place Dargent, L-1413 Luxembourg

Tel. + 352/42 70 42 Fax: +352/42 74 54

E-Mail: luxinvest@mmwarburg.lu

NESTOR-Fonds-Vertriebs-GmbH

Ottostraße 5, D-80333 München

Tel. 089/54 59 03-80 Fax: 089/54 59 03-85

E-Mail: info@nestor-fonds.de

www.nestor-fonds.de

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Rechtlicher Hinweis

Diese Präsentation wurde von der NESTOR Investment Management S.A., Luxemburg publiziert und stellt kein Angebot zum Kauf von Anteilen und keine Aufforderung zur Abgabe eines Angebotes zum Kauf von Anteilen der NESTOR Osteuropa Fonds dar. Die bisherige Wertentwicklung ist keine Garantie für zukünftige Ergebnisse. Der Anteilerwerb erfolgt ausschließlich auf der Grundlage des gültigen Verkaufsprospektes in Verbindung mit dem letzten Jahresbericht des Fonds und, wenn dessen Stichtag länger als 8 Monate zurückliegt, zusätzlich mit dem letzten Halbjahresbericht. Alle Verkaufsunterlagen sind kostenlos am Sitz der Verwaltungsgesellschaft sowie bei allen Zahl- und Informationsstellen erhältlich (NESTOR Investment Management S.A. oder M.M.Warburg Bank Luxembourg S.A., beide 2, Place Dargent, L-1413 Luxembourg oder NESTOR-Fonds-Vertriebs-GmbH, Ottostraße 5, D-80333 München).

Wertpapieranlagen besitzen nicht nur die Möglichkeit zur Wertsteigerung des eingesetzten Kapitals, sondern sind auch mit erheblichen Verlustrisiken behaftet. Dies trifft insbesondere auf Anlagen in Aktien und in davon abgeleitete Wertpapiere wie Optionsscheine zu, die Eigenkapital von Aktiengesellschaften und damit Risikokapital im ureigensten Sinne darstellen.

Die in dieser Ausarbeitung enthaltenen Informationen beruhen auf Aussagen des Investmentmanagers Warburg Invest KAG mbH, Frankfurt, die aus verlässlichen Quellen stammen und ggf. die persönliche Meinung des Managers wiedergeben. Sie erheben nicht den Anspruch auf Vollständigkeit und sind daher unverbindlich. Soweit in dieser Ausarbeitung Aussagen über Preise, Zinssätze oder sonstige Indikationen getroffen werden, beziehen sich diese ausschließlich auf den Zeitpunkt der Erstellung der Ausarbeitung und enthalten keine Aussage über die zukünftige Entwicklung, insbesondere nicht hinsichtlich zukünftiger Gewinne oder Verluste.

Diese Ausarbeitung stellt ferner keinen Rat oder Empfehlung dar. Vor Abschluß eines in dieser Ausarbeitung dargestellten Geschäfts ist auf jeden Fall eine kunden- und produktgerechte Beratung durch Ihren Berater erforderlich.