ariel bezalel montreux

Citywire Pan European Investment Conference

May 2012

Fairmont Le Montreux Palace, 9th – 11th May 2012

Jupiter Dynamic Bond SICAV

FOR PROFESSIONAL INVESTORS ONLY. NOT FOR RETAIL INVESTORS.

Presented by:

Ariel Bezalel, Fund Manager Fixed Interest Team & Fund Management Director

Evelyn Lederle, Senior Sales Manager, Switzerland

Daniel Blum, Sales Manager, Europe

Agenda

Jupiter

People

Investment philosophy

Process

Performance

Manager’s current thinking

Valuations – Credit Still Appealing

Stock Examples

1

Mutual Funds, £18,351m

Segregated Mandates, £3,493m

Private Clients, £1,757m

Investment Trusts, £576m

Introduction to Jupiter

Assets under management Established in 1985

424 employees including

65 Investment Professionals

One of Europe’s most successful and

respected fund management houses,

managing assets of £24.2bn

Market cap £1.1bn*

Source: Jupiter 31.03.12. *Source: Bloomberg as at 31.03.12.

2

Industry recognition

Jupiter’s range of awards –

over 100 in the last 5 years alone –

is a testament to our company-wide

performance record*

Jupiter’s asset management success…

Talented team


Fundamental investment approach

*Source: Jupiter, Includes Jupiter Unit Trust Managers Limited and Jupiter Asset Management Limited. Past performance is no guide to the future.

3

Our core investment beliefs

Individual accountability and information sharing

Leads to high conviction ideas

Avoids biases of committees

Freedom to invest

Not restricted by house views or model portfolios

Able to back individual judgements

Portfolio risk controls

Independent, in-house monitoring – Performance and Portfolio Analytics team

Quarterly Portfolio Review committees, Monthly Investment Risk committees

and quarterly Compliance Monitoring committees

Focused on performance

4

Agenda

Jupiter

People


Process

Performance


Valuations – Credit Still Appealing

Stock Examples

5

Fund manager biography

Proven, experienced manager with award-winning track record

Over 15 years experience in sovereign and credit markets. He joined Jupiter

Asset Management in June 1997 as a member of the Fixed Interest team.

Has managed a Unit Trust within the IMA Sterling Strategic Bond sector

since launch in 2008, and also manages the fixed interest component of two

UK-domiciled bond / equity funds.

Qualified in Economics at Middlesex University

Ariel Bezalel Fund Manager, Fixed Interest Team

Fund Management Director

6

Supported by the Fixed Income and Multi Asset Team

John Hamilton Head of Fixed Income Interest Team

31 years market experience

Rhys Petheram Fund Manager / Credit Analyst


Miles Geldard Head of Convertibles and Multi Asset Team


Lee Manzi Senior Portfolio Manager


Nicole Weiss Credit Analyst


Agenda

Jupiter

People


Process

Performance


Valuations – credit still appealing

Stock examples

7

Investment style

Combines top-down macroeconomic views with

bottom-up fundamental company research

Seeks situations offering value and favourable risk /

reward profile

Emphasis on individual security selection, drawing on

the expertise of Jupiter's fixed interest and equity teams

Invests for medium to long-term

Flexible strategy and a broad investment mandate can

drive returns

8

Jupiter Dynamic Bond

Aims to achieve a high income with prospect of capital growth

Combines top-down strategic asset allocation with bottom-up security selection

‘Go anywhere’ strategy: Global investment universe

Is able to invest across a range of fixed income securities i.e.:

Government bonds

Investment grade bonds

High yield bonds

Preference shares

Convertible bonds

and other bonds

Flexible duration approach

Can invest in all parts of the ratings spectrum from investment grade to high yield

At least 80 % of the currency is either denominated in the base currency

or hedged back to the base currency

Typically 60-80 securities

9

10

Fund details

Luxembourg-domiciled UCITS SICAV, unsophisticated

Institutional and retail share classes – (minimum investment

€10m and €1,000 respectively)

Daily dealing and pricing; cut-off at 1pm* (LUX time)

Settlement period: T+3

EUR-based fund with USD, GBP and CHF share classes (passive currency hedging)

Custodian – HSBC Securities Services (Luxembourg) S.A.

Benchmark: Barclays Capital Euro – Aggregate Corporate Index

Management fees:

L Class 1.25%

I Class 0.50%

*We recommend that you submit orders before 12.45 in order to ensure that it is processed in time for the cut-off.

11

Class name and class currency Class L Euro

Class L US

Dollar

Class L

Sterling

Class L Swiss

Franc Class I Euro

Class I US

Dollar

Class I

Sterling

Class I Swiss

Franc

ISIN LU0459992896 LU0459992979 LU0459993191 LU0750223447 LU0750223520 LU0750223876 LU0750223959 LU0750224098

WKN A0YC40 A0YC41 A0YC42 A1JUF3 A1JUF4 A1JUF5 A1JUF6 A1JUF7

Clearstream common code

45999289 45999297 45999319 000075022344 000075022352 000075022387 000075022395 000075022409

SEDOL B58YQ00 B56LFY0 B56LCL6 B7NFNX4 B7NFPD8 B7NM443 B7NM4P4 B7NM8G3

Benchmark

ticker code .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR .BCPEACOR

Passive currency

hedging No Yes Yes Yes No Yes Yes Yes

Source: Jupiter, 2012.

Jupiter Dynamic Bond Fund (SICAV)

Agenda

Jupiter

People


Process

Performance



Stock examples

12

Investment process

13

Macro View

Sector

Allocation Portfolio

Issuer

Selection

Credit

Analysis

Idea generation

Existing holdings

Other bonds in our universe

Company specific

General market news, sector related company news

Yield curve analysis, interest rate / inflation

outlook, data flow etc.

Supply / demand, flows, sentiment,

CDS / share price behaviour

Company specific / credit analysis

General market

Valuation

News Flow

Macro Analysis

Market Forces

Knowledge

Team involvement; active discussion

Sources of investment ideas:

14

Portfolio features

Effective yield: 6.45% (net basis)

Duration of portfolio*: 3.52 years

Invest in all parts of the ratings spectrum

Credit rating: BBB+**

Fund manager tends to have a 10% limit in

convertibles

80% of assets must be in sterling or hedged back

to sterling***

Based on UK-domiciled bond fund

Source: HSBC 29.02.12, Institutional class. Yields quoted are not guaranteed and may change in the future. *Source : Jupiter 29.02.12. **Source: Jupiter as at 31.03.12. ***Sector requirement

15

16

Portfolio features of the UK-domiciled bond fund

Source: Jupiter, 2012.

2

3

4

5

6

Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12

Ye

ars

AverageDuration

Change in duration since launch

Source: Jupiter as at 29.02.12. The fund manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes.

17

Portfolio features – Exploiting opportunities across the ratings spectrum

Strategic asset allocation since launch Credit rating split


-40%

-20%

0%

20%

40%

60%

80%

100%

120%

Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11

Sovereign (long) Sovereign (short) High Yield Investment Grade Cash

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11

AAA AA A BBB BB B CCC CC D NR cash

18

UK-domiciled portfolio breakdown

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

High Yield InvestmentGrade

Sovereign long Cash Sovereign short


Average rating BBB

– 0.9% exposure to GIPSI nations

-20%

-10%

0%

10%

20%

30%

40%

Fin

an

cia

ls

Ind

us

tria

ls

Rig

Fin

an

cin

g

Co

ns

um

er

Dis

cre

tio

na

ry

Ca

sh

Med

ia

Tele

co

ms

Pac

ka

gin

g

He

alt

hc

are

Tec

hn

olo

gy

Co

ns

um

er

No

n-

Dis

cre

tio

na

ry

Uti

liti

es

To

bac

co

Su

pra

nati

on

al

Pro

pert

y

So

vere

ign

-20%

-10%

0%

10%

20%

30%

40%

Bri

tain

Au

str

alia

No

rway

Ca

sh

Ge

rma

ny

Fra

nc

e

Mex

ico

Po

lan

d

SN

AT

Irela

nd

Ne

therl

an

ds

De

nm

ark

Sw

itze

rla

nd

Cze

ch

Oth

er*

Source: Jupiter as at 29.02.12. The fund manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes.

Agenda

Jupiter

People


Process

Performance



Stock examples

19

Track record – UK-domiciled bond fund

Ranked 2nd in sector since launch (02.06.08)

Source: FE, GBP, bid to bid, net income reinvested to 31.03.12. Fund launched 02.06.08. Ranked 2 / 55 in IMA Sterling Strategic Bond sector since launch. Past performance is no guide to the future.

20

-30

-20

-10

0

10

20

30

40

50

60

Jun 08 May 09 Apr 10 Mar 11 Mar 12

% G

row

th

UK-domiciled bond fund GB 53.35 IMA Sterling Strategic Bond TR in GB 23.71

Track record: UK-domiciled bond / equity fund – fixed income component

Source: Jupiter, offer to offer to 31.12.11. Assumes TER of 1.75%. Past performance is no guide to the future.

21

80

90

100

110

120

130

140

Nov 06 Jun 07 Jan 08 Aug 08 Mar 09 Oct 09 May 10 Dec 10 Jul 11

UK-domiciled bond / equity fund 127.9 Iboxx Non Gilt Index 124.0


Performance

Source: FE, bid to bid, net income reinvested to 31.03.12. Fund launched 02.06.08. Past performance is no guide to the future.

Cumulative 1 year % Since launch %

UK-domiciled bond fund 6.4 53.4

IBOXX Stg Non Gilts All Maturities 8.8 30.5

IMA Sterling Strategic Bond sector average 5.1 23.7

Sector ranking 21 / 68 2 / 55

Discrete years 2009 % 2010 % 2011 %

UK-domiciled bond fund 42.5 11.2 4.5

IBOXX Stg Non Gilts All Maturities 10.8 8.4 6.9

IMA Sterling Strategic Bond sector average 20.8 8.1 2.7

Sector ranking 3 / 57 11 / 63 21 / 68

22


Monthly returns since launch

Source: FE, bid to bid, net income reinvested 30.06.08 to 31.03.12. Fund launched 02.06.08. The fund manager has the power to use derivatives but it is intended that these will only be used for efficient portfolio management and not for investment purposes

23

-10

-8

-6

-4

-2

0

2

4

6

8

Jun 08 Nov 08 Apr 09 Sep 09 Feb 10 Jul 10 Dec 10 May 11 Oct 11 Mar 12

% G

row

th

UK-domiciled bond fund IMA Sterling Strategic Bond TR in GB

Appendix

Portfolio thoughts – where are we now: the debt-equity clock

25

Source: Morgan Stanley Equity & Credit Strategy.

0

500

1000

1500

2000

2500

Dec 99 Dec 01 Dec 03 Dec 05 Dec 07 Dec 09 Dec 11

US High Yield European High Yield

EUR & USD HY benchmark spreads

Portfolio thoughts – high yield pricing in decent downturn in economic growth

Source: Bloomberg, JP Morgan as at 16.03.12. The above commentary represents the views of the Fund Manager at the time of the presentation and may be subject to change in the future, particularly during periods of rapidly changing market circumstances.

High yield still pricing

in a slowdown

Geographic exposure still

important here. Top down

macro fundamentals for

much of Europe still poor

Subordination continues

to be important. Still have

preference for secured

debt but parts of this

market now look rich

900bps is the magic number

26

Jupiter’s fixed income team

John Hamilton Fund Management Director,

Jupiter Asset Management Ltd.

Current role Head, Fixed Interest Team

Current

responsibilities

Manager of two UK-domiciled bond funds and

institutional assets

1991 – Jupiter Asset Management

Head, Fixed Interest Team

1987 – 1 991 Tyndall Investment Management Ltd.

Director and Fund Manager, Fixed Interest

1981 – 1987 London Life Association

Manager, Fixed Interest

1979 – 1981 Laurie Millbank

Gilt-edged department

Qualifications Mathematics (London University)

Ariel Bezalel Fund Manager, Fixed Interest

Team

Fund Management Director

Current role Fund Manager

Current

responsibilities

Manager of UK-domiciled bond fund and fixed interest

component of two UK-domiciled bond/equity funds


Fund Manager, Fixed Interest Team

1998 – 1999 Jupiter Asset Management

Assistant Fund Manager, Fixed Interest Team

Qualifications Economics (Middlesex University)

27

Jupiter’s fixed income team

Rhys Petheram Fund Manager,


Nicole Weiss Credit Analyst,


Current role Fund Manager / Credit Analyst

Current

responsibilities

Co-Manager of UK-domiciled bond fund and Manager

of the Fixed Income portion of UK-domiciled

bond/equity fund


Fund Manager


Assistant Fund Manager

2004 – 2006 Moody’s Investor Services

Credit Analyst, Utilities

2001 – 2004 Towers Perrin Australia (acquired by Frank Russell)

Analyst

Qualifications Bachelor of Commerce Finance

(University of Melbourne)

Diploma in Modern Languages (Indonesian)

(University of Melbourne)

Chartered Financial Analyst

Current role Credit Analyst

Current

responsibilities

Credit Analysis

2011 - Jupiter Asset Management - Credit Analyst

2010 - 2011 Jupiter Asset Management - Assistant Credit Analyst


Fixed Interest Administrator, additional dealing

function from 2008 – 2010

2006 – 2007 Fidelity International, UK, Associate Bank of America

Liaison & Clearstream Settlement Department

2004 – 2006 Landeskrankenhilfe VVaG in Germany,

Associate Insurance Contract Department

2000 – 2004 Deutsche Bank AG in Germany,

Customer Consultant Retail Banking

Qualifications Graduate in Business Economics

(VWA Lüneburg, Germany)

28

Jupiter’s convertibles and multi asset team

Fund Manager:

Lee Manzi


Lee started his fund management career at JP Morgan Asset Management (formerly

Flemings) in 1998, working in the fixed income team. After spells working on the European

fixed income team and UK desk, he took over the management of the firm’s UK Sterling

accounts before joining the Global Portfolios Group in 2001 where he managed the fixed

income portion of the balanced funds

He then worked in the Global Multi Asset Group with Miles, focusing primarily on fixed

interest and convertibles

In 2006 he moved to MPC / RWC to work with Miles as a portfolio manager

In the 13 years prior to his appointment Miles built and managed global convertibles, fixed

income and multi asset franchises. In 2009, he was recognised in the Sauren Awards with

three gold medals in the convertibles category, two gold medals in the absolute return

category and two gold medals in the multi strategy international category

Having spent much of his early career managing derivative teams in the Far East, Miles

became an adviser on fixed income portfolio management and foreign exchange to the

Central Bank of Botswana in 1994. In 1997 he joined JP Morgan Asset Management

(formerly Jardine Fleming) in Hong Kong and became Head of Fixed Income, Currencies,

Convertibles and Balanced

In 2004 Miles moved to London and became Chief Investment Officer and Head of the

Global Multi Asset Group and Global Strategy Team at JP Morgan Asset Management. In

addition to building the convertibles business, he also built and managed the JPM Capital

Preservation Fund, a global multi asset absolute return fund. Miles left JP Morgan in 2006

to join RWC Partners (previously MPC Investors), where he founded and headed the multi

asset and convertibles team

Head of Team

& Fund Manager:

Miles Geldard


29

Disclosure

Jupiter Asset Management Limited (‘JAM’) is registered in England and Wales (no. 2036243).

The registered office is 1 Grosvenor Place, London SW1X 7JJ. JAM is authorised and regulated by

the Financial Services Authority in the UK whose address is 25 The North Colonnade, Canary Wharf,

London E14 5HS.

This presentation is intended for investment professionals and not for the benefit of private retail

investors. However any one attending the presentation or who has the opportunity to view the

accompanying slides should bear in mind that the value of an investment in a unit trust and the

income from it can go down as well as up. It may be affected by exchange rate variations and you

may not get back the amount invested. Initial charges are likely to have a greater proportionate effect

on returns if investments are liquidated in the shorter term. Quoted yields are not guaranteed.

Current tax levels and reliefs will depend on the nature of the holding and details are contained in the

key features documents. Past performance should not be seen as a guide to future performance.

A significant proportion of the portfolio may be held in higher yielding bonds. These have an

increased risk of capital erosion due to a higher possibility of default by the bond issuer. Changing

market conditions and interest rate levels can also have a larger impact on the values of high yielding

bonds than on other bonds. Due to the overall structure of the portfolio, the level of quarterly income

payments will not be constant and will fluctuate. Quoted yields are not guaranteed.

For your security we may record or randomly monitor all telephone calls. If you are unsure of the

suitability of an investment please contact your financial advisor. Any data or views given should not

be construed as investment advice. Every effort is made to ensure the accuracy of the information

but no assurance or warranties are given.

30

ariel bezalel montreux

Economy & Finance