Gam

This document is confidential and intended solely for the use of the person to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person.

Citywire Berlin Alpha generation with European Equity long/short investing 7-9 November 2012

Tina Söderlund-Boley Head of Institutions & Intermediaries Northern Europe

Geoff Zeven Client Manager – Northern European Institutions & Intermediaries

Daniel Durrer Head of Institutional & Fund Distribution (Continental Europe)

GAM history

● 1983: GAM founded by Gilbert de Botton – GAM begins managing absolute return strategies

● 1989: GAM begins managing fund of hedge fund strategies

● 1999: UBS buys GAM

● 2003: GAM becomes part of SBC Wealth Management, a UBS subsidiary comprising Ehinger & Armand von Ernst, Ferrier Lullin and Banco di Lugano

● 2005: Julius Baer buys SBC Wealth Management – Hans de Gier, Chairman of GAM, becomes

Chief Executive of combined group

● 2008: Independent operating unit under JB Holdings with offices in eight countries

● 2009: Julius Baer separates its private banking (Julius Baer Group) and asset management arms (GAM Holding) – Each independently listed on the SIX Swiss Exchange

● 2012: GAM acquires boutique equity hedge asset management firm, Arkos Capital SA1

2

GAM’s culture and investment approach remains unchanged

Los Angeles

New York

Dublin London

Zurich

Hong Kong

Tokyo

Bermuda

Lugano

Source: GAM. 1. For your information 74.95% of the capital of, and voting rights in, GAM Investment Management Lugano SA (formerly Arkos Capital SA) are owned by GAM Group AG, Zurich, which is a directly held 100% subsidiary of GAM Holding AG. The remaining 25.05% are currently still owned by the senior investment management of GAM IM Lugano . However, agreements have been closed with the management of GAM IM Lugano for the future purchase of this remaining 25.05% by GAM Group AG.

GAM Holding AG

● GAM Holding AG is an independent group

● Entirely dedicated to asset management

● Over 1,083 staff in nine locations globally

● USD 2.0 billion market cap company

● Listed on the SIX Swiss Exchange

● Consisting of two leading investment managers

● Each has well-established capabilities and brands

● Complementary investment offerings

● Operate autonomously, but co-operate and collaborate where it is in the best interest of clients

An independent, listed asset management group

GAM Holding AG1

USD 117.4bn

AuM USD 48.0bn2 AuM USD 87.3bn

Source: GAM as at 30 Jun 2012. 1. Group assets under management exclude double-count of funds managed by GAM and distributed by Swiss & Global Asset Management (USD 17.8 billion as at 30 June 2012) which are reported in both businesses. 2. The reported total AuM of GAM of USD 48.0 billion includes cross-holding assets of approximately USD 4.6 billion in accordance with Group accounting policy, which follows the principles of the Swiss Financial Market Supervisory Authority (FINMA). GAM’s assets under management without cross-holdings as at 30 June 2012 are approximately USD 43.4 billion.

3

About GAM

● GAM is an independent, active investment manager – Delivering investment solutions to institutions, intermediaries, private

clients and charities globally – Long history of open architecture investing attracts talented managers

● All our managers are active investors – Chosen for their specialist skills by our investment research teams – Free to invest without having to conform to a single ‘house style’ – Equipped with extensive risk management and modelling tools

● USD 48.0 billion1 in AuM across ~ 60 different investment strategies – Approximately 15 in-house and 11 external investment teams of

dedicated funds – Discretionary portfolios and FoHFs invest with ~120 external managers

● A distinctive, performance-driven investment culture – Upheld by the highest calibre of investment and client service

professionals – Focus on producing returns and managing risk for long-term success

4

GAM is an independent, active investment management firm

GAM AuM by Client Type

GAM AuM by Product Type

Wholesale fund distribution

Institutional clients

Private clients

Discretionary & advisory portfolios

Fixed income

Equity

Multi-manager

Discretionary & advisory portfolios

Abs. return single manager

10%

10%

28%

52%

10%

32%

26% 19%

13%

Source: GAM as at 30 Jun 2012. 1. GAM reports its assets under management breakdowns on a half yearly basis in line with Swiss accounting rules which apply to our parent company, GAM Holding AG. Holdings and allocations are subject to change. The reported total AuM of GAM of USD 48.0 billion includes cross-holding assets of approximately USD 4.6 billion in accordance with Group accounting policy, which follows the principles of the Swiss Financial Market Supervisory Authority (FINMA). GAM’s assets under management without cross-holdings as at 30 June 2012 are approximately USD 43.4 billion.


Alpha generation with European Equity long/short investing

Paolo Longinotti Fund Manager GAM non-directional equity

6

Non-Directional Equity

● Non-directional equity team with EUR 664.1m under management, based in Switzerland

● Formerly Arkos Capital SA, which became part of GAM Group AG in July 2012*

● A consistent approach, based on fundamental analysis and a bottom-up approach to stock selection

● Core team of seven long-standing and highly experienced investment professionals

● Managing a range of low volatility, liquid and transparent absolute return funds, both offshore and UCITS

● Significant portion of teams’ liquid assets invested in the funds

Applying a solid and consistent investment approach since 2002

Source: GAM as at 30 Sep 2012. * For your information 74.95% of the capital of, and voting rights in, GAM Investment Management Lugano SA (formerly Arkos Capital SA) are owned by GAM Group AG, Zurich, which is a directly held 100% subsidiary of GAM Holding AG. The remaining 25.05% are currently still owned by the senior investment management of GAM IM Lugano . However, agreements have been closed with the management of GAM IM Lugano for the future purchase of this remaining 25.05% by GAM Group AG.

History of the team

2002 Launch of Talentum Activedge – European non-directional Hedge Fund

2003 Launch of World Invest Absolute Return - European Equity L/S fund (UCITS)

2004 Launch of Talentum Enhanced – 2 times levered version of European non-directional Hedge Fund

2007 Spin-off of fund management activities and incorporation of Arkos Capital SA. Launch of offshore Emerging Markets Equity L/S Hedge Fund

7

2008 Launch of World Invest Absolute Strategy – Convertible Bonds Fund (UCITS)

2009 Launch of World Invest Absolute Emerging – Emerging Markets Equity L/S fund (UCITS)

2010 Launch of World Invest Absolute Financials – Global Financials Equity L/S fund (UCITS)

2012 Arkos Capital SA acquired by GAM Group AG* and in October became GAM Investment Management Lugano SA, with investment team and approach remaining unchanged

7 For your information, GAM Group AG, a wholly owned subsidiary of GAM Holding AG, completed the acquisition of 74.95% of GAM Investment Management Lugano SA on 31 July 2012 and closed agreements with the management of GAM IM Lugano for the future purchase of the remaining 25.05%. NOTE: Funds may not be registered for sale in all jurisdictions. This is not an invitation to invest in the named funds.

Overview of investment performance

Performance

Developed Europe 2011 % YTD % SI % SI % pa Inception Date Volatility (SI) Fund Size EUR m

GAM Talentum Europe Long/Short 1.7 7.5 80.3 6.0 23 Jul 2002 4.2 39.7

GAM Talentum Enhanced Europe Long/Short 2.9 16.3 118.8 10.5 30 Nov 2004 9.3 146.8

World Invest Absolute Return – C EUR1 2.0 9.3 73.7 6.0 7 Apr 2003 5.4 167.3

Emerging Markets2

GAM Talentum Emerging Long/Short 0.7 9.9 59.0 8.5 1 Feb 2007 6.8 52.7

World Invest Absolute Emerging – C EUR 0.2 5.5 20.2 5.9 10 Jul 2009 5.3 52.6

Financials

World Invest Absolute Financials – C EUR -6.6 5.4 4.0 1.6 7 May 2010 5.8 11.8

Convertibles

World Invest Absolute Strategy – C EUR -9.0 10.2 8.6 1.7 2 Jan 2008 9.3 109.9

Other 83.33

Total AuM 664.1

8 Source: GAM. Fund sizes may not sum exactly due to rounding. 1. Prior to 2009 World Invest Absolute Return was not a sophisticated UCITS fund, performance before that time may not be an accurate guide as the fund was shorting futures rather than individual stocks, whilst also retaining a net long exposure by mandate. For a more accurate guide to performance prior to 2009 a comparison with GAM Talentum Europe Long/Short is advised. 2. Up to Dec 2011 GAM Talentum Emerging Long/Short and World Invest Absolute Emerging were run pari-passu. As of Dec GAM Talentum Emerging Long/Short has 1.5x the gross exposure of World Invest Absolute Emerging. 3. Includes Long Only Fund (EUR4.3m) and Managed Accounts (EUR79.1m).

Past performance is not indicative of future performance. Performance is provided net of fees.

As at 30 Sep 2012

Overview

● Range of developed long/short equity funds – Onshore and offshore vehicles – Range of risk and return targets

● Highly experienced managers with proven track records – Extensive local networks for real insights – Long-term knowledge of markets and companies – Work collaboratively with wider

non directional investment team

● Disciplined investment approach combining – Solid quantitative idea generation framework – Alpha generation through anticipating earnings surprises – Clear focus on fundamental stock analysis

● Strong focus on risk management – Embedded throughout the investment process – Dedicated Risk Manager conducts daily monitoring – Qualitative conditioning overlay manages volatility

9 Source: GAM as at 30 Sep 2012.

Gianmarco Mondani CIO and Founding Partner of GAM Investment Lugano SA – 16 years’ investment experience – Formerly at Banca Arner and Martin Currie IM – MA Inv Analysis from Sterling University and BA (cum

laude) in Econ & Bus studies from Genoa University

Roberto Cantaluppi Senior Fund Manager – 16 years’ investment experience – Formerly at Allianz AM, San Paolo IMI

and Mediosim – MA and BA (cum laude) in Econ from Bocconi

University

Paolo Longinotti Fund Manager – 14 years’ investment experience – Formerly at Eurizon, Fidentiis and SOPAF Capital – BA in Econ & Bus Admin from Università Cattolica

del Sacro Cuore

European equity long/short team

Key characteristics – Developed Europe

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Name World Invest Absolute Return GAM Talentum Europe Long/Short GAM Talentum Enhanced Europe Long/Short

Strategy Developed Europe long / short equity fund with a low beta objective

Developed Europe long/short equity fund with a non directional objective

Developed Europe long/short equity fund with a non directional objective

Description

Same long and short positions (through swaps and single stock futures) as Flagship European Equity L/S Non Directional Hedge Fund, Beta up to 0.5, all market cap

Low vol, beta neutral, all market cap 2x leveraged version of GAM Talentum Europe Long/Short

Fund type UCITS Offshore Offshore

Fund manager Gianmarco Mondani, Roberto Cantaluppi and Paolo Longinotti

Gianmarco Mondani, Roberto Cantaluppi and Paolo Longinotti

Gianmarco Mondani, Roberto Cantaluppi and Paolo Longinotti

Inception date 7 Apr 2003 23 Jul 2002 30 Nov 2004

Typical number of positions 90-140 90-140 90-140

Target gross exposure 140-210% 120-180% 240-360%

Dealing Daily Monthly on 30 days notice

No lock-up

Monthly on 30 days notice

No lock-up

Fees 1.75% management fee

15% performance fee on a high watermark basis

1.0% management fee


1.5% management fee


Minimum investment EUR 5,000 EUR/USD 100,000 EUR/USD 100,000

ISIN (EUR/USD) LU0028583804 KYG8668M1006/ KYG8668M1188 KYG8668P1037/ KYG8668P1110

Investment philosophy

● We believe that current stock prices reflect all available market information and this is also reflected in analysts’ consensus on earnings expectations

● Therefore, in order to make money we need to anticipate changes:

We buy a stock if we believe that it will beat analysts’ expectations

We sell a stock if we believe that it will miss analysts’ expectations

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Our edge lies in our ability to identify stocks that will surprise by exceeding or falling short of analysts’ expectations

12

50

100

150

200

250

300

350

1994 1996 1998 2000 2002 2004 2006 2008 2010

LongShort

Changes in earnings expectations Earnings expectations – Developed Europe

Source: BoAML, MSCI. Data for period 31 Dec 1992 to 28 Sep 2012.

● The blue line shows the relative performance of a portfolio of stocks acquired on a monthly basis that in the previous 3 months have experienced the best positive revisions

● The orange line shows the relative performance of a portfolio of stocks acquired on a monthly basis that in the previous 3 months have experienced the worst negative revisions

Stocks with earnings upgrades outperforming the underlying MSCI Europe index

Stocks with earnings downgrades underperforming the underlying MSCI Europe index

Investment approach

● Historical evidence shows that earnings’ revisions work best if supported by valuation and price momentum

● If the valuation is supportive we can have a bigger weighting – Cheaper (more expensive) companies tend to appreciate (depreciate)

more on earnings revision than those that are more expensive (cheaper)

● If price momentum is supportive we have a higher degree of confidence – We buy on strength, we sell on weakness

● Our fundamental, alpha-generating investment approach has driven every investment decision since 2002

● Quantitative tools are used exclusively to identify investment ideas and for risk management purposes

13

A stock selection approach based on bottom-up, fundamental analysis

Investment process

14

Overview

Risk management

Investment guidelines and internal rules

1 Idea generation

Quant screen (StarMine)

Targeted consensus screen

Company meetings

2 Stock selection

Fundamental analysis

Company contacts

3 Portfolio construction

and management

Pre-trade risk analysis

Sizing of positions

Portfolio robustness continuous assessment

On going assessment of macro environment

Idea generation

Provides percentile ranking of stocks based on changes in EPS, EBITDA and revenue

estimates

15

Provides percentile ranking of stocks based on recent 6-12 months price performance

Quantitative screening – StarMine

…are candidates for long or short positions based on revisions

Valuation Price momentum

…appear to be relatively cheap or expensive…

… and have momentum for next year.

Earnings + +

Determines which stocks…

Provides reasonable stock valuation based on blend of P/E,

P/B, P/CF, dividend yield EV/Sales and EV/EBITDA

Component

Features

Benefits Earnings revisions are serially correlated

Identifies potential to make further gains when valuation is

supportive

Allows us to buy on strength and sell on weakness

Idea generation

● Constant focus on the consequence of “changes”

● Communication with brokers concentrating only on earnings expectations, not on buy/sell recommendations or price targets

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Targeted consensus screen and company meetings

Company Name Curr. Ctry.

P/E Cons. Prev Current

% change Cons.

% Diff vs.

Cons. Broker: ABC

Mediaset EUR Italy 18x 0.08 0.07 -12.5% 0.11 -30.0% Estimates updated following forecasts reviews of Mediaset Espana. Also cut Q2 advertising forecasts from -11% to -12.5% (EUR 16m)

Danone EUR France 16x 3.20 3.40 6.00% 3.40 = Estimates updated driven by improved FX transaction (weak Euro)

Teleperf. EUR France 9x 2.20 2.30 5.00% 2.20 5.00% Increases estimates by 5% for coming years mainly due to better cost control

Domicile EPS, for

consensus-2012 Targeted Broker Screen1

● Regular meetings with companies and regular contact with their management

● Analysis and cross-referencing of information with sector/ industry peers

● Attendance at relevant sector/country conferences

1. For illustrative purposes only.


Current positioning and outlook

Current environment

Background ● Distinct lack of earnings growth due to slow real growth in global GDP

● Any growth in earnings would be primarily driven by inflation, anyway marginal

● Analysts forecasted 2012 earnings growth to be 12%, have now revised expectations for 2012 earnings growth to be -2.5%

● Analysts currently forecast 2013 earnings growth to be 12%, we believe this to be unrealistic

● Opportunity for absolute re-rating of stock markets limited, as rates no longer falling and PE is 12x on 2013 optimistic assumptions

Implications for our strategy ● We don’t believe markets have much mileage, however lack of economic growth means huge distinction between companies

that can deliver growth and positive earnings surprises versus those with who deliver the opposite

● This has been the situation in Spain and Italy for the last two years and Japan in the 1990’s

● We continue to see ample opportunity for differentiation, this has been the driving factor in performance over the last 3 years

Portfolio ● Long book: Companies whose prospects are dependant on their own actions and can surprise positively

– PE’13 is 11.3x (PE ’12 is 13x): consensus expects 15% growth and can be beaten

● Short book: Companies with structural problems – PE’13 is 12.5x (PE ‘12 is 15.4x): consensus expects 23% earnings growth which is unlikely

Our view has been the same for a while

18 Source: GAM as at 31 Oct 2012.

Current positioning – Long book

Long visible growth Overall long companies with visible growth due to structural opportunities or restructuring.

Growth stocks (BIC, Diageo, Reed, Babcock, Ryanair, Easyjet, Viscofan, Capita, Dufry)

Oil capex (Seadrill, PGS)

Structural growth in tech (ASMI, Austriamicrosystems, Unit4, Atos, Micro Focus)

Price power in insurance (Prudential, RSA, Tryg, Gjensidije) and client offering in Italian asset management (Azimut, Mediolanum)

Self help restructuring in cyclcials (Prysmian, Bilfinger, TUI, Oerlikon, Smurfit)

Long book PE ’13 is 11.3x (PE ’12 is 13x)

consensus expects 15% growth, this can be beaten


Current positioning – Short book

Short structural problems Short companies with structural problems within industry or facing new challenges

Entrenched structural problems of overcapacity (Legrand, Mittal, France Telecom, TPSA, Geox, CRH, Kingfisher)

European utilities (Verbund, Fortum, Veolia, GDF)

Media disintermediation (TF1, Mediaset, Sanoma)

Spanish and Central European banks

Next shoes to drop (Straumann, Jeronimo Martins, ABB, Sandvik)

Short book PE’13 is 12.5x (PE’12 is 15.4x) consensus expects 23% growth, reversal only if you hope for strong economic growth


Developed Europe

Sector – % breakdown World Invest

Absolute Return GAM

Talentum Europe GAM Talentum

Enhanced Europe

Banks 2.7 2.6 4.6 Basic Materials -1.0 -0.9 -1.8 Consumer Cyclicals 1.1 1.0 2.1 Consumer Non-Cyclicals 1.8 1.6 3.2 Diversified Financials & REIT 2.7 2.3 4.5 Energy 3.6 3.1 6.0 Futures 0.0 0.0 0.0 Health Care -3.4 -3.1 -6.1 Industrials -2.6 -2.4 -4.6 Insurance 4.2 3.6 6.8 Media -2.2 -1.9 -3.5 Option 0.0 0.0 0.0 Services Cyclicals -0.9 -0.8 -1.6 Services Non-Cyclicals 5.8 5.1 9.7 Technology 3.1 2.8 5.4 Telecommunication Services -0.8 -0.7 -1.2 Utilities -3.0 -2.6 -4.9 Long 65.2 57.0 111.0 Short -54.1 -47.4 -92.3 Net 11.1 9.6 18.7 Gross 119.4 104.5 203.2

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Themes

Source: GAM as at 30 Sep 2012. NOTE: Index positions broken down into individual sectors. Allocations and holdings are subject to change.

30

40

50

60

70

80

200

250

300

350

2007 2008 2009 2010 2011 2012

Price (LHS) Best Standard EBIT + C A (RHS)

Example of one long investment – BIC From end of Aug 2007 to end of Aug 2012

Source: Bloomberg (as of end of August). References to any security or company are not a recommendation to buy or sell any security and are for information purposes only.

22

Stock examples

Company background ● Leading consumer staple company with leading positions in lighters, shavers and stationary

● Growing presence in emerging markets

● 20% margin helped by 37% margin in lighters

● Strong net cash position (400m)

Position history ● Analysts were expecting no growth in 2012 ebit vs 350m in 2011

● But BIC has growth opportunities in all divisions. Simply assuming some 10m help from currency and 10m growth (5%) in lighters where they are rapidly internationalising, one could see positive revisions

We added to the stock in December 2011

● After very strong q1 and q2 organic growth (10% and 6%) in consumer, consensus upgraded estimates. But still, factoring in that the APP division losses have been erased, consensus implies almost no growth in 2H and in 2013 where the special 11m bonus to employees won’t recur. We expect more than 400m EBIT

● Valuation was only 12 times PE despite more than 10% of market cap in cash. After a big rise (30% YTD) it still trades on 12 times PE adjusted for cash

We are still long the stock

23

Long example – BIC

References to any security or company are not a recommendation to buy or sell any security and are for information purposes only.

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40

50

60

70

80

90

800

1000

1200

1400

1600

1800

2007 2008 2009 2010 2011 2012

Price (LHS) Best Standard EBITDA + C A (RHS)

Example of one short investment – Vallourec From 31 Aug 2007 to 24 Aug 2012

Source: Bloomberg (as of end of August). References to any security or company are not a recommendation to buy or sell any security and are for information purposes only.

24

Stock examples

Company background ● Leading stainless steel tube manufacturer

● We saw big capacity additions in the industry in the period to 2014 bringing prices down

● Vallourec had already profit warned due to problems in ramping up their new Brazilian and US facility

Position history ● Consensus was assuming growth in ebitda from 1.1bn pre Brazilian losses despite no evidence of any improvement in Brazilian

operations, lack of additional room to increase volumes and pricing offset by raw materials. We expected a decline

● Valuation was expensive as the apparently cheap PE (10 times) on consensus earnings was offset by a premium to book value

We shorted Vallourec in August 2011 (price 57 euro)

● Through several profit warnings in the 1H of 2012 Vallourec admitted to its problems, to which the falling iron ore prices were added

● Estimates reached our level of some 830m ebitda in 2012 in mid May after an additional profit warning

We closed the short at a price of 32 euro

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Short example – Vallourec

References to any security or company are not a recommendation to buy or sell any security and are for information purposes only.

Outlook for Europe L/S

● In a market led by earnings growth (see 2004-mid 2008) a conservative approach based on earnings revisions can deliver consistent absolute returns

● In 2004 – mid 2008 our funds kept pace with rising stock markets’ despite not taking any market risk

● If anything market growth should be lower this time due to slowing macro indicators (earnings)

● We believe our funds can achieve better returns than the markets with no directional risk

● Over the last two years, in a period of low economic growth, the funds returned positive performance thanks to their focus on single stock differentiation - this is set to continue

Source: GAM as at 31 Oct 2012. The views are those of the manager at the time of publication and are subject to change.

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Why Developed Europe?

● Award winning equity long/short team with over 120 years’ combined investment experience – Team awarded AAA Alternative UCITS Manager Rating by Citywire* – Fewer than 5% managers manage to achieve this accolade

● Methodical, disciplined approach to generating investment ideas

● Bottom-up approach with qualitative conditioning overlay built for navigating market complexities – Intensive company research can find opportunities across environments – Overlay designed to dampen portfolio volatility, steadying returns

● Anticipation of earnings surprise and valuation re-ratings are a sustainable source of alpha

● Multi-faceted risk management by both investment team and dedicated risk manager using proprietary systems

● Strong risk-adjusted returns without significant beta exposure to underlying markets – Alpha from both long and short books – Significant outperformance

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Proven ability to capture alpha through strong stock selection

Source: Citywire * Citywire rating awarded July 2012 based on manager's historic performance across the funds they manage, and therefore are marketed as manager ratings rather than fund ratings.


Performance and analysis World Invest Absolute Return – C EUR

0 %

20 %

40 %

60 %

80 %

100 %

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Simple Perf. %Ann. Perf. %Ann. Std. Dev.

World Invest Absolute Return - C EUR76.2 6.1 5.4

FTSE Eurotop 100 Index in EUR 73.4 5.9 14.2

Average EUR 1 Month Deposit Rate21.7 2.1 0.4

HFRX Equity Hedge (GAM hedged) in EUR-2.5 -0.3 8.2

World Invest Absolute Return - C EUR Performance from 7 Apr 2003 (inception) to 29 Oct 2012

Statistics herein based on currency hedged indices, identified by ‘(GAM hedged)’ in their title, have been calculated by GAM with the aim of valid comparison to our currency hedged products. Details of their calculation are available on request.

Past performance is not indicative of future performance. Performance is provided net of fees. Funds do not have the security of capital which is characteristic of a bank deposit.

Source: GAM, Thomson Reuters, Bloomberg 29

1. From inception of the strategy in Apr 2003 to Nov 2008, the mandate was to have a low volatility product with a

modest beta (target beta of 0.3).

Beta for Period

World Invest Absolute Return – C EUR - 18 months rolling beta v. FTSE Eurotop 100 Index in EUR1

0.16

9.011.5

13.811.3

3.6

-10.8

0.3

9.2

2.0

10.8

17.2

10.3

25.6

16.1

5.8

-40.8

29.7

8.0

-5.9

11.311.4

3.6 3.0

6.7

1.8

-25.9

12.8

8.1

-19.0

3.3

-40 %

-20 %

0 %

20 %

2003 Part2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

13.5

7.9

1.5

6.1

13.0

6.8

-3.7

5.9

1.0

-2.4

-6.3

-0.3

-5 %

0 %

5 %

10 %

15 %

1 Year (Simple) 3 years 5 years Since Inception

Annual Performance Annualised Performance for Period %

World Invest Absolute Return - C EUR FTSE Eurotop 100 Index in EURHFRX Equity Hedge (GAM hedged) in EUR

World Invest Absolute Return - C EUR Returns from 7 Apr 2003 (inception) to 29 Oct 2012



Source: GAM, Thomson Reuters 30

5.4

14.2

8.2

0 %

5 %

10 %

15 %

nnualised Standard Deviation

The higher the number, the greater the variability of performance / risk

0.75

0.27

-0.28

-0.20

0.00

0.20

0.40

0.60

0.80

Sharpe Ratio

A ratio of reward to risk. In general, the higher the number the better

-15.6

-51.2

-30.3

-50 %

-40 %

-30 %

-20 %

-10 %

0 %

Maximum Drawdown

The largest loss, peak to trough based on monthly data

World Invest Absolute Return - C EUR

FTSE Eurotop 100 Index in EURHFRX Equity Hedge (GAM hedged) in EUR

World Invest Absolute Return - C EUR Risk characteristics from 7 Apr 2003 (inception) to 29 Oct 2012





Performance and analysis GAM Talentum Europe Long/Short - A EUR

0 %

20 %

40 %

60 %

80 %

100 %

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


GAM Talentum Europe Long/Short - A EUR81.6 6.0 4.2



HFRI/HFRX Equity Hedge Index (GAM Hedged) in EUR-5.1 -0.5 8.0

GAM Talentum Europe Long/Short - A EUR Performance from 23 Jul 2002 (inception) to 19 Oct 2012




Beta for Period

GAM Talentum Europe Long/Short - A EUR – 18 months rolling beta v. FTSE Eurotop 100 Index in EUR

0.01

0.7

4.6

11.1 10.68.6

11.2

-2.2-0.4

8.3

1.7

8.3

0.3

14.9

9.7

25.6

16.1

5.8

-40.8

29.7

8.0

-5.9

13.2

-2.9

12.1

2.8 3.0

6.7

1.8

-26.0

12.8

8.1

-19.0

3.7

-40 %

-20 %

0 %

20 %

2002 Part2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

10.8

6.6

3.5

6.0

24.1

6.7

-2.8

5.5

2.7

-2.7

-5.6

-0.5

-5 %

0 %

5 %

10 %

15 %

20 %

25 %



GAM Talentum Europe Long/Short - A EUR FTSE Eurotop 100 Index in EURHFRI/HFRX Equity Hedge Index (GAM Hedged) in EUR

GAM Talentum Europe Long/Short - A EUR Returns from 23 Jul 2002 (inception) to 19 Oct 2012




4.2

16.1

8.0

0 %

5 %

10 %

15 %



0.91

0.21

-0.33-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

Sharpe Ratio


-11.8

-51.2

-30.4

-50 %

-40 %

-30 %

-20 %

-10 %

0 %

Maximum Drawdown


GAM Talentum Europe Long/Short - A EUR

FTSE Eurotop 100 Index in EURHFRI/HFRX Equity Hedge Index (GAM Hedged) in EU

GAM Talentum Europe Long/Short - A EUR Risk characteristics from 23 Jul 2002 (inception) to 19 Oct 2012





Performance and analysis GAM Talentum Enhanced Europe Long/Short - A EUR

-20 %

0 %

20 %

40 %

60 %

80 %

100 %

120 %

2005 2006 2007 2008 2009 2010 2011 2012


GAM Talentum Enhanced Europe Long/Short - A EUR122.2 10.7 9.3



HFRX Equity Hedge (GAM hedged) in EUR-14.2 -1.9 8.6

GAM Talentum Enhanced Europe Long/Short - A EUR Performance from 30 Nov 2004 (inception) to 19 Oct 2012




Beta for Period

0.08 GAM Talentum Enhanced Europe Long/Short - A EUR – 18 months rolling beta v. FTSE Eurotop 100 Index in EUR

1.8

19.7

15.3

21.0

-8.5

-0.8

18.4

2.9

18.1

1.9

25.6

16.1

5.8

-40.8

29.7

8.0

-5.9

13.2

1.13.0

6.7

1.8

-25.9

12.8

8.1

-19.0

3.7

-40 %

-20 %

0 %

20 %

2004 Part2005 2006 2007 2008 2009 2010 2011 2012 YTD

23.6

14.1

6.3

10.7

24.1

6.7

-2.8

4.32.7

-2.7

-5.6

-1.9

-5 %

0 %

5 %

10 %

15 %

20 %

25 %



GAM Talentum Enhanced Europe Long/Short - A EUR FTSE Eurotop 100 Index in EURHFRX Equity Hedge (GAM hedged) in EUR

GAM Talentum Enhanced Europe Long/Short - A EUR Returns from 30 Nov 2004 (inception) to 19 Oct 2012




9.3

15.1

8.6

0 %

5 %

10 %

15 %



0.92

0.15

-0.46

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

Sharpe Ratio


-25.0

-51.2

-30.3

-50 %

-40 %

-30 %

-20 %

-10 %

0 %

Maximum Drawdown


GAM Talentum Enhanced Europe Long/Short - A EUR

FTSE Eurotop 100 Index in EURHFRX Equity Hedge (GAM hedged) in EUR

GAM Talentum Enhanced Europe Long/Short - A EUR Risk characteristics from 30 Nov 2004 (inception) to 19 Oct 2012





Stock selection and risk management

Stock selection

41

Determine which companies are likely to beat/miss analysts’ expectations on a 12-month view

1. Analyse stocks that quantitative and qualitative screening suggests are most likely to experience positive (negative) revisions

2. Select those most likely to produce further positive (negative) surprises and trigger further changes in estimates

3. Compare sell-side research, check assumptions directly with management and challenge consensus view

In-depth analysis of influential factors based on P&L, balance sheet and cash flow analysis

Stocks for potential inclusion in portfolio

Fundamental analysis

Approach

Goal

Factors

Results

Stock selection

42

Fundamental in-depth analysis enables team to form medium-term view

P&L Revenues: Quantity by price by currency plus acquisitions minus disposals Gross margin: Measure of value added, mostly variable costs Goodwill depreciation Operating margin: Influenced by fixed costs, prices Interest costs: Leverage can be good but it is a fixed cost Associates (a separate company) and minorities (one way to fool you) Dividends: Are they sustainable?

Cash Flow EBITDA – interest – tax – capex: Can the company support its growth? Working capital: Must grow no more than sales, can make a company bankrupt or reduce its competitiveness If negative: Can the balance sheet take it? Who is paying for this?

Balance Sheet Debt levels: What is appropriate? Provisions: What are the future cash costs? Goodwill: Impairment test - can it cause equity ratios to stretch?

Qualitative conditioning overlay

● Earnings revisions have the upper hand unless there is market turmoil – Eg economic turning points or periods of unusual market behaviour (eg extreme short-term volatility)

● Qualitative conditioning overlay seeks to protect our approach from pressure it can experience at such times through

● This ongoing process is based on the analysis of macroeconomic indicators – Such as ECRI, US ISM, EU PMI, Baltic Dry Index etc

● Reduces gross portfolio exposure and exposure to the most sensitive sectors during periods of turmoil

43

Active management of portfolio level volatility and make portfolio more robust during market turmoil

Macroeconomic assessment

Impact at sector/ industry level

Impact at stock level

Impact of decisions at portfolio level

Provides portfolio robustness during brief periods when earnings

revisions are not a good indicators of future price

movements

Portfolio construction and management

44

Build and maintain portfolios that:

1. Hold only companies satisfying our fundamental analysis criteria

2. Are in line with the qualitative conditioning process

3. Are consistently robust and liquid in accordance with investment guidelines

● Invest team constructs portfolio from bottom up using pre-trade risk analysis for each position

● Size trades according to our level of conviction, volatility and liquidity

● Maintain diversification through

– Abiding by clear maximum exposure rules for each stock

– Single stock exposures never greater than 3 days’ trading volume

– Daily controls of exposure to market as per mandate

– Actively managing correlations between positions

● No specific country exposure (ex Emerging Markets strategies) or sector limits

● No automatic lock-in of profits

● Dynamic stop-loss policy; not automatic one

Low beta, well-diversified portfolio with strict risk controls

Bottom-up approach featuring strict discipline and ongoing monitoring

Result:

Approach

Goal

Limits and

rules

Results

Risk management

45

Structure

Maintain risk proactively at each stage of the investment process (idea generation, portfolio construction and portfolio management)

● Robust risk management framework built around and integrated with investment approach

● Set of risk management tools utilised by investment team as part of ex-ante analysis

● Correlation management to avoid unwanted bets (adjusted Beta and t-Stat)

● Stress test analysis

● Liquidity/volume

● Volatility

● Long, short, gross and net exposure

● Proprietary (style) indicator of short-term overbought or oversold stocks

Goal

Maintain risk proactively at each stage of the investment process

Pre-trade risk controls

Risk management function

● Risk manager has independent supervisory function and operates at arms’ length

● Monitors adherence to: – Investment guidelines – Internal investment rules – Restrictions and risk limits

● Initiates appropriate corrective actions in case of any transgression

● In addition to the pre-trade risk analysis, the risk manager performs regular checks on: – Capacity limits – Sector and geographical exposure – Consistency between what quantitative data suggest and existing portfolio (comparison of portfolio longs and

shorts versus what quantitative indicators tell us about each position) – Dynamic stop/loss analysis – Performance attribution

46

Risk management

47

Factors correlation beta t-stat EUR-USD X-RATE 0.133 -0.007 -0.265 EUR-CHF X-RATE 0.020 -0.049 -0.295 GBP-EUR X-RATE -0.063 -0.035 -1.019 GOLD SPOT $/OZ -0.007 -0.009 -0.669 DJ UBS INDUST METALS 0.256 0.001 0.070 FTSE EUROTOP 100 INDEX 0.413 0.000 0.000 CAC 40 INDEX 0.358 -0.004 -0.388 MILAN MIB40 INDEX 0.153 -0.018 -2.579 DAX INDEX 0.430 0.006 0.537 FTSE 100 INDEX 0.504 0.021 1.490 IBEX 35 INDEX 0.037 -0.025 -3.562 SWISS MARKET INDEX 0.455 0.021 1.194 NASDAQ 100 STOCK INDX 0.295 0.006 0.436 S&P 500 INDEX 0.342 0.008 0.494 BLP European Consumer Cyclical 0.506 0.016 1.733 BLP European Consumer Non-Cyclical 0.516 0.041 2.197 DJ EURO STOXX LARGE P = 0.345 -0.007 -0.647 DJ EURO STOXX SMALL P = 0.319 -0.008 -0.782 DJ STOXX TMI VALUE P = 0.313 -0.014 -1.191 DJ = STXX TMI GRWTH P = 0.500 0.017 1.449 US 10Y BOND -0.153 0.021 0.450 S&P EUROPE 350 ENERGY IX 0.381 0.002 0.173 S&P EU 350 CON STAPLE IX 0.510 0.043 2.437 S&P EU 350 TELECM SV IDX 0.185 -0.024 -1.709

Correlation management

We want to ensure that the portfolio performance only reflects calculated bets.

Source: GAM as at 31 July 2012.

Factors correlation beta t-stat S&P EU 350 CONS DISCT IX 0.529 0.021 2.075 S&P EU 350 UTILITIES IDX 0.113 -0.034 -2.762 S&P EU 350 MATERIALS IDX 0.436 0.007 0.724 S&P EU 350 FINANCIALS IX 0.259 -0.012 -1.540 S&P EU 350 HEALTHCARE IX 0.426 0.025 1.394 S&P EU 350 INFO TECH IDX 0.477 0.019 1.878 S&P EU 350 INDUST INDEX 0.418 0.004 0.448 CYC-NCYC 0.371 0.013 0.962 LARGE-SMALL 0.031 0.016 0.528 VALUE-GROWTH -0.438 -0.150 -6.574 EURO-BUND -0.201 0.012 0.373 VIX -0.335 -0.003 -1.288 VSTOXX -0.332 0.000 -0.162 US BREAK EVEN INFL RATE 10YR 0.045 0.088 0.564 EUR-JPY X-RATE 0.240 0.009 0.458 JAPANESE JPY SPOT 0.207 0.025 0.921 RUSSELL 2000 0.325 0.008 0.699 WTI Crude Oil 0.291 0.008 0.965 DEFENSIVE vs AGGRESSIVE -0.257 -0.014 -0.647 EUR-SEK X-RATE -0.121 -0.007 -0.199 SWEDISH MARKET INDEX 0.413 0.008 0.820 MSCI Emerging Free 0.350 0.011 0.802 Dax-Ibex spread 0.363 0.052 5.773

We use a proprietary risk management tool that measures the current portfolio’s correlation to a wide variety of factors.


Appendix

Opportunities in Europe

1. Visibility and growth versus structural problems – Longs in leading growth companies with excellent cash flows and visibility of earnings will produce absolute returns – Due to weak markets last year, we are able to buy such companies on cheap multiples (BIC, Diageo, Reed,

Babcock, Ryanair, Easyjet, Viscofan, Capita, Dufry) – Many European companies have structural problems that are independent of economic growth and trade on high

multiples (Legrand, Mittal, Geox, CRH, Kingfisher)

2. Resilient energy versus structural problems in utilities – Many energy capex-dependent companies will experience a boom in demand and trade on 12 times earnings

(Seadrill, PGS) – Many European utilities will be plagued by government intervention and falling demand, and yet trade at a premium

to the market (Verbund, Fortum, GDF, Veolia)

49 Source: GAM as at 31 Oct 2012. The views are those of the manager at the time of publication and are subject to change.

Opportunities in Europe (cont)

3. Long structural growth in technology versus structural losers in media – Long structural growth in tech (ASMI, Austriamicrosystems, Unit4, Atos, Micro Focus)

leads to upgrades on cheap multiples. – Pure media peers suffer from structural decline in viewership and trade at a premium

(Sanoma, Mediaset, TF1, Schibsted)

4. Long stable growth in insurance and asset management versus struggling local banks with weak capital and high loan losses or weak underlying markets

– Cash generation is improving beyond expectations in some insurance companies (Prudential, RSA, Tryg, Gjensidije) – Strong opportunity in asset management in Italy (Mediolanum, Azimut) – Some Spanish banks (Caixa) will have to resort to dilutive capital increases and have not fully impaired

their books for loan losses – Some Central European banks suffer from structural problems and trade on similar multiples

5. Long resilient cyclicals with self help vs first problems emerging in some growth stocks – Some cyclicals can offset the slow environment with self help (Prysmian, Bilfinger, TUI, Oerlikon, Smurfit) – Some growth stocks are starting to feel more of a slowdown than their valuation suggests

(Straumann, Alfal Laval, Jeronimo Martins, ABB, Sandvik)

50 50 Source: GAM as at 31 Oct 2012. The views are those of the manager at the time of publication and are subject to change.

51

Monthly performance World Invest Absolute Return

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

2012 -0.5 2.4 2.5 0.9 -0.1 0.7 2.6 -0.1 0.6 9.3

2011 -3.2 -0.1 1.4 0.2 -0.6 2.4 0.1 -1.3 0.4 0.3 1.1 1.4 2.0

2010 0.8 1.4 2.0 0.3 -0.5 0.6 0.0 0.9 0.4 1.0 0.8 1.3 9.2

2009 0.9 0.8 -2.0 -1.9 -0.4 -0.3 -0.1 0.8 1.1 -0.3 0.9 0.8 0.3

2008 -2.4 1.3 -1.3 2.5 0.3 0.7 -3.4 0.0 -6.3 -0.7 -1.1 -0.7 -10.8

2007 2.3 -0.4 0.6 1.2 1.2 0.5 0.0 -1.4 1.6 0.6 -3.2 0.7 3.6

2006 3.9 1.6 1.7 1.6 -2.3 -0.7 -0.3 0.3 0.7 1.5 1.6 1.3 11.3

2005 2.2 2.3 -0.2 -0.9 1.9 2.4 2.6 1.6 2.3 -4.6 2.0 1.5 13.8

2004 3.1 1.6 -0.9 1.1 -0.5 0.5 0.3 0.1 1.0 -0.4 2.4 2.6 11.5

2003 -0.5 1.3 0.8 1.8 2.0 0.3 2.6 0.7 -0.3 9.0

World Invest Absolute Return – C EUR

Source: GAM


52

Monthly performance GAM Talentum Europe Long/Short - A EUR


2012 -0.4 1.7 2.1 0.7 -0.1 0.5 2.1 0.0 0.6 7.5

2011 -3.1 -0.1 1.2 0.2 -0.2 2.2 0.1 -1.3 0.4 0.6 0.8 0.9 1.7

2010 0.8 1.4 1.9 0.2 -0.3 0.3 0.1 0.8 0.3 0.8 0.8 0.8 8.3

2009 1.5 1.2 -1.7 -4.2 0.2 0.6 -0.7 0.0 0.9 0.5 1.0 0.5 -0.4

2008 0.3 1.6 0.5 1.9 0.5 2.2 -2.5 -1.1 -5.9 0.4 -0.2 0.2 -2.2

2007 1.7 0.0 0.5 0.9 0.9 1.2 0.8 -0.5 2.8 1.9 -0.6 1.3 11.2

2006 2.6 0.3 1.9 1.3 -0.9 -0.4 0.7 0.4 -0.6 0.9 0.8 1.3 8.6

2005 1.5 0.6 0.8 0.2 0.3 2.0 1.1 1.7 2.5 -1.8 0.6 0.7 10.6

2004 2.5 1.4 0.1 0.4 -0.1 -0.2 1.7 1.4 0.6 -0.1 1.6 1.3 11.1

2003 -0.6 2.5 -0.7 1.0 0.4 -0.8 0.4 0.4 0.8 0.8 0.0 0.3 4.6

2002 0.2 -0.3 1.2 -0.6 -0.2 0.4 0.7

GAM Talentum Europe Long/Short - A EUR

Source: GAM


53

Monthly performance GAM Talentum Enhanced Europe Long/Short


2012 -0.6 3.6 4.2 1.4 -0.2 1.1 4.4 0.1 1.3 16.3

2011 -6.1 -0.2 2.5 0.4 -0.8 4.5 0.3 -2.6 0.5 1.1 1.6 1.9 2.9

2010 1.7 2.9 4.3 0.8 -0.7 0.9 0.1 1.8 0.6 1.6 1.7 1.5 18.4

2009 3.0 2.6 -3.7 -8.3 0.5 1.2 -1.4 -0.1 1.9 1.0 2.1 0.8 -0.8

2008 0.4 3.4 1.0 3.6 1.0 4.0 -5.0 -2.5 -12.9 -0.1 -0.7 0.3 -8.5

2007 3.0 0.0 0.9 1.5 1.6 2.2 1.4 -1.2 5.5 3.5 -1.4 2.4 21.0

2006 5.1 0.5 3.5 2.4 -1.9 -0.8 1.3 0.6 -1.4 1.5 1.5 2.3 15.3

2005 2.8 1.2 1.5 0.3 0.3 3.9 2.1 3.2 4.9 -4.1 1.2 1.2 19.7

2004 1.8 1.8

GAM Talentum Enhanced Europe Long/Short

Source: GAM


54

-50 %

0 %

50 %

2009 2010 2011 2012

0 %

50 %

100 %

150 %

2009 2010 2011 2012

Exposure – Long and Short Exposure – Gross and Net

Long exposureShort Exposure

Net exposureGross exposure

World Invest Absolute Return Exposure history as at 30 Sep 2012

Allocations and holdings are subject to change. Source: GAM

55

-50 %

0 %

50 %

100 %

03 04 05 06 07 08 09 10 11 12

0 %

50 %

100 %

150 %

03 04 05 06 07 08 09 10 11 12




GAM Talentum Europe Long/Short - A EUR Exposure history as at 30 Sep 2012


56

-150 %

-100 %

-50 %

0 %

50 %

100 %

150 %

200 %

2005 2006 2007 2008 2009 2010 2011 2012

0 %

50 %

100 %

150 %

200 %

250 %

300 %

350 %

2005 2006 2007 2008 2009 2010 2011




GAM Talentum Enhanced Europe Long/Short Exposure history as at 30 Sep 2012


Gianmarco Mondani

Chief Investment Officer

Gianmarco Mondani is the Chief Investment Officer of the non-directional equity team and co-manages developed Europe long and long/short equity funds. In addition to his role as Chief Investment Officer, Mr Mondani is the Chief Executive Officer as well as Founding Partner of GAM Investment Management Lugano SA (formerly Arkos Capital SA). He joined GAM following its acquisition of the equity hedge specialist in July 2012. Prior to establishing Arkos in January 2007, Mr Mondani launched and co-managed the current World Invest and Talentum offering at Banca Arner in Lugano. Before this, he was an assistant director and portfolio manager within the European investment team at Martin Currie Investment Management Limited in Edinburgh. Mr Mondani holds an MA in Investment Analysis from Sterling University, United Kingdom and a BA (cum laude) in Economics and Business Studies from Genoa University, Italy. He is based in Lugano, Switzerland.

57

Roberto Cantaluppi

Senior Fund Manager

Roberto Cantaluppi is a Senior Fund Manager in the non-directional equity team, and co-manages developed Europe long and long/short equity funds. He joined GAM following its acquisition of the equity hedge specialist, GAM Investment Management Lugano SA (formerly Arkos Capital SA), in July 2012. Prior to joining Arkos in August 2007, Roberto held several posts at Allianz Asset Management, including three years as head of the sector analyst team and fund manager at RAS Asset Management SGR (a wholly owned subsidiary of Allianz). Previously, he was an analyst for San Paolo IMI in Italy, and an analyst at Mediosim in Italy. Roberto holds an MA and a BA (cum laude) in Economics from Bocconi University, Italy, and a certificate from the Italian Association of Financial Analysts. He is based in Lugano, Switzerland.

58

Paolo Longinotti

Fund Manager

Paolo Longinotti is a Fund Manager in the non-directional equity team, and co-manages developed Europe long and long/short equity funds. He joined GAM following its acquisition of the equity hedge specialist, GAM Investment Management Lugano SA (formerly Arkos Capital SA), in July 2012. He joined Arkos in June 2011. Paolo began his career in finance in 1998 where he worked for Italian investment houses in equity analysis and portfolio management with firms including Eurizon Capital SGR, Fidentiis Equities and SOPAF Capital Management SGR. Paolo holds a BA in Economics and Business Administration from Università Cattolica del Sacro Cuore, Italy. He is based in Lugano, Switzerland.

59

GAM’s acquisition of Arkos Capital*

● GAM and Arkos shared a unique cultural fit – GAM’s culture is based on allowing each investment team to follow its own investment philosophy and

process, whilst applying strict risk management checks

● The funds continued to be managed by the same team and their approach remained unchanged

● The team are free from non-investment tasks and distractions, able to concentrate even more on alpha generation

● GAM’s broad investor base offers asset diversification and enhances the long-term stability of the business

● The long-term pay out structure ensures that the team will continue to be engaged with the same dedication and incentive as an actual shareholder for at least seven years

60

Transaction benefits

Source: GAM * For your information, GAM Group AG, a wholly owned subsidiary of GAM Holding AG, completed the acquisition of 74.95% of GAM Investment Management Lugano SA on 31 July 2012 and closed agreements with the management of GAM IM Lugano SA for the future purchase of the remaining 25.05%.

GAM Investment Management Lugano SA


Board of Directors

General Management Gianmarco Mondani (CEO/CIO)

Tristan Brenner (COO)

External Auditor KPMG

Risk Management Fabio Trancanelli

Compliance Tristan Brenner

Product Support & Operations Tristan Brenner

Execution (2)

Middle Office (3)

Outsourced services (HR, IT, Accounting)

Asset Management Gianmarco Mondani Roberto Cantaluppi

Enrico Camera Jonathan Stanford Paolo Longinotti

Iain Cartmill Davide Marchesin Nico Cacciabue

Additional fund information

62

Developed Europe Prime Brokers/ Custodians Administrator Auditor

GAM Talentum Europe Long/Short Merrill Lynch, Morgan Stanley Citibank Europe PwC

GAM Talentum Enhanced Europe Long/Short Merrill Lynch, Morgan Stanley Citibank Europe PwC

World Invest Absolute Return SICAV State Street Bank Luxembourg State Street Bank Luxembourg Ernst & Young

Emerging Markets

GAM Talentum Emerging Long/Short Merrill Lynch, Morgan Stanley Citibank Europe PwC

World Invest Absolute Emerging State Street Bank Luxembourg State Street Bank Luxembourg Ernst & Young

Financials

World Invest Absolute Financials SICAV State Street Bank Luxembourg State Street Bank Luxembourg Ernst & Young

Convertibles

World Invest Absolute Strategy SICAV State Street Bank Luxembourg State Street Bank Luxembourg Ernst & Young

Source: GAM


Yours contacts at GAM

Your contacts at GAM

Tina Söderlund-Boley – Head of Institutions and Intermediaries Northern Europe Tina Söderlund-Boley is Head of Institutions & Intermediaries Northern Europe. Prior to joining GAM in May 2000, she worked for Independent Investment Group, SEB & Öhman Fondkommission in Sweden. Tina Söderlund-Boley holds a Master of Law from Uppsala University, Sweden. She is based in London. Email: [email protected]

64

Daniel Durrer – Head of Institutional and Fund Distribution (Continental Europe) Daniel Durrer is Head of Institutional and Fund Distribution (Continental Europe) responsible for continental European fund distribution. Daniel has held different positions in the marketing, product management and fund distribution units of Swiss Bank Corporation and UBS. Prior to joining GAM in December 2002, he was responsible for the business development of the investment fund unit of UBS in the Cayman Islands. Daniel was educated in Switzerland and holds a Federal PET Diploma in Marketing. He is based in Switzerland. Email: [email protected]

Geoff Zeven – Client Manager – Northern European Institutions and Intermediaries Geoff Zeven is a Client Manager responsible for Northern European institutions and intermediaries, with a focus on Belgium and the Netherlands. Prior to joining GAM in July 2010, he was a director of business development at Legg Mason. Prior to this, Geoff was at Citigroup Asset Management for nearly six years, latterly as Vice President of Business Development. He began his career at Salomon Smith Barney in 1997. Geoff holds a BA in Politics & International Relations from the University of Kent and an MBS in Business from the Canterbury Business School at the University of Kent. He is based in London. Email: [email protected]

65

Source: GAM unless otherwise stated. (Unless otherwise noted, where shown, performance is shown net of fees, on a NAV-to-NAV basis). GAM Group AG, a wholly owned subsidiary of GAM Holding AG, is a majority shareholder of GAM Investment Management Lugano SA (formely Arkos Capital SA). GAM has not independently verified the information from other sources and no assurance can be given as to whether such information is accurate, true or complete and GAM makes no warranty, expressed or implied, regarding such information. Whilst every effort has been made to ensure the accuracy of the financial information herein, you should note that some of the information may be based on unaudited or otherwise unverified information. This material is confidential and is intended solely for the use of the person or persons to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person. It is aimed at sophisticated, professional, eligible, institutional and/or qualified investors who have the knowledge and financial sophistication to understand and bear the risks associated with the investments described herein. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be solely relied on in making an investment or other decision. It is not an invitation to subscribe and is by way of information only. This document may not be used as sales literature with members of the public. None of the shares or units (‘Shares’) of the products mentioned herein have been registered under the US Securities Act of 1933, as amended (the ‘Securities Act’), and none of the products are registered under the US Investment Company Act of 1940, as amended (the ‘Company Act’). Accordingly, unless an exemption is available such Shares may not be offered, sold or distributed in the US or to US persons. However, pursuant to an exemption from registration under the Securities Act and the Company Act, such Shares may be sold or resold in the United States or to certain qualified US investors in transactions that do not constitute a public offering. In addition, certain products may be closed to all US investors. Some of the products mentioned herein may not be registered for public sale in all jurisdictions. Therefore, no public marketing must be carried out for them. Shares in GAM products are not available for sale in any state or jurisdiction in which such sale would be prohibited and are not aimed at persons in those jurisdictions and in those cases where the law prohibits this type of information from being provided. Investors in such Shares will not be eligible for the specific investor protection given under the Swiss Collective Investment Schemes Act, the German Investment Act or the Austrian Collective Investments Schemes Act, in contrast to investors in products that are regulated under said acts. The funds mentioned herein are not authorized or registered for public sale in Asia Pacific. Therefore, no public marketing must be carried out for them in Asia Pacific. In Hong Kong, this material is restricted to professional investors (as defined in the Securities and Futures Ordinance (Cap 571)) only. In other countries in Asia Pacific, this material should only be distributed in accordance with the applicable laws in the relevant jurisdiction. Subscriptions to the Talentum funds mentioned herein will only be received and shares or units (‘Shares’) issued on the basis of the current prospectus for the funds. Talentum fund documents are available at: GAM Investment Management Lugano SA, Via Marconi 1, CH-6900 Lugano, Switzerland. The World Invest funds mentioned herein are sub-funds of a Luxembourg-based umbrella SICAV World Invest and are registered for sale in Germany, Italy, Luxembourg, Norway and Switzerland. Subscriptions will only be received and shares or units (‘Shares’) issued on the basis of the current prospectus for the fund. Copies of the fund’s prospectus, key investor information documents (KIID) and financial statements can be obtained free of charge from Casa4Funds SA, 41, Boulevard Royal, L-2449 Luxembourg and from its representative in Switzerland GAM Anlagefonds AG, Klausstrasse 10, CH-8034 Zurich. Paying Agent in Switzerland is State Street Bank GmbH, Zurich Branch, Beethovenstrasse 19, CH-8027 Zurich. Shares are not available for sale in any state or jurisdiction in which such sale would be prohibited. In Japan, the products mentioned herein shall not be disclosed publicly pursuant to the Financial Instruments and Exchange Law (the ‘FIEL’) nor registered for public sale or private placement pursuant to the Law on Investment Trusts and Investment Companies. Therefore, none of the Shares of the products may be solicited in Japan or to residents in Japan. This material is intended for circulation to professional, institutional and/or qualified investors only. Any person in receipt of this material is not allowed to distribute it to residents in Japan nor communicate to residents in Japan about the products mentioned herein.

Disclaimer

66

The views expressed herein are those of the manager at the time and are subject to changes. The price of Shares may go down as well as up and the price will depend on fluctuations in financial markets outside GAM’s control, as a result an investor may not get back the amount invested. Past performance is not indicative of future performance. References to any security or company are not a recommendation to buy or sell any security and are for information purposes only. Prices quoted refer to accumulation Shares unless otherwise stated. Historic data may be subject to restatement from time to time. Holdings and allocations are subject to change. Typical portfolio characteristics and target objectives are subject to change. The objectives are based on certain assumptions (including, among other things, objectives of underlying funds and strategies, and historic performance) and market, economic and other conditions that may change and have a material impact on future results. Thus, there can be no assurance that these objectives will be realised. Objectives set over an investing cycle. Investment objectives do not represent a prediction of returns, volatility or a promise to deliver any particular investment goal. Actual performance and volatility may be greater or less than these objectives. Investment and performance objectives are subject to change. There is no guarantee that forecasts will be realised. Where funds are mentioned, complete fund information is contained in the relevant prospectus or scheme particulars. Copies of the funds’ prospectuses, scheme particulars, financial statements and constitutional documents can be obtained free of charge from GAM upon request in the UK, from GAM Fund Management Limited, George’s Court, 54–62 Townsend Street, Dublin 2, Ireland. Important information about hedge funds: Hedge fund strategies are speculative and are not suitable for all investors. GAM hedge fund products are only available to investors who are comfortable with the substantial risks associated with investing in hedge funds. An investment in hedge fund strategies includes the risks inherent in an investment in securities, as well as specific risks associated with limited liquidity, the use of leverage, short sales, options, futures, derivative instruments, investment in overseas securities, ‘junk’ bonds and illiquid investments. Investors should recognise that they will bear asset-based fees and expenses at the fund of hedge fund level, and indirectly, fees, expenses and performance-based compensation of the investment funds in which these funds of hedge funds invest. Hedge fund strategies may be leveraged and the volatility of the price of their interests may be great. The investment funds in which the fund of hedge fund strategies invest can be highly illiquid, are not required to provide periodic reporting or valuation information to investors and may involve complex tax strategies. The use of leverage may cause an underlying portfolio to liquidate positions when it may not be advantageous to do so in order to satisfy its obligations or to meet segregation requirements. Leverage, including borrowing, may cause an underlying portfolio to be more volatile than if the underlying portfolio had not been leveraged. Communication of gross only performance figures must be on a one-on-one basis, private and of a confidential nature. They may not be disseminated to the public in any print, electronic or other medium, to include a web-site or any database of general circulation. The following disclosures must be provided in writing when communicating gross only performance figures: (i) performance figures do not reflect the deduction of investment advisory fees; (ii) returns will be reduced by investment advisory fees and any other expenses that may be incurred in the management of an account; (iii) the investment advisory fees are described in the prospectus for the fund; and (iv) a representative example that shows the effect an investment advisory fee, compounded over a period of years, could have on the total value of a client’s portfolio. As an example of the effect of investment advisory fees on the total value of an account, a three year compound return of 8.83% before the deduction of investment advisory fees would be 7.74% after deduction of investment advisory fees of 1.00% accrued monthly and payable quarterly. In the United Kingdom, this material has been issued and approved by GAM London Limited, 12 St James’s Place, London SW1A 1NX, authorised and regulated by the Financial Services Authority. The funds mentioned herein are not regulated under the Financial Services and Markets Act 2000, consequently no protection is provided by the UK regulatory system. Moreover benefits available under the UK Financial Services Compensation Scheme do not apply. In Switzerland, this material has been issued and approved by GAM Anlagefonds AG, Klausstrasse 10, CH-8034 Zurich.

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