Absolute return strategies

March 2011

2

Absolute return can be found in unexpected places

There are many ways of achieving absolute return

Few managers provide positive returns in all market conditions. But long term success can be achieved by sidestepping major drawdowns

Some long only managers have provided robust absolute returns through full market cycles

Successful absolute return investing and transparency are not mutually incompatible

Investors should develop a deep understanding of managers and build a portfolio of differing investment styles

3

Asset allocation decisions dwarf other inputs

Portfolio performance is determined by:

Source: ‘Determinants of Portfolio Performance II: An Update.’ Brinson, Beebower & Singer, 1991.NB. Variation in returns not the level of returns. Average of 82 large US pension funds 1977-1991.

% of variation in returns explained for average of 82 large US pension funds 1977-1987

4

Traditional funds – pitfalls

Diversification is often not enough during market dislocations

Sidestepping major drawdowns is critical in achieving absolute returns

Managers must occasionally take big relative bets to preserve capital

Traditional balanced managers tended not to stray far from benchmarks…

…remaining invested in dramatically over valued asset classes

5

Growth of alternatives

Source: WM Company

0

10

20

30

40

50

60

70

80

90

89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

%

Alternatives Total Bonds Total Equities

6

Non-traditional funds – pitfalls

Certain hedge funds have achieved outstanding returns, but many have not

Institutionalisation of hedge funds hurt risk- return profile

Largest growth of AUM when certain core strategies offered little value

Often had similar positions/strategies, so were exposed to contagion especially in illiquid investments

Compounded by leverage, often with the same counterparties

Restrictions on redemptions

7

Lessons

Diversification was a mirage:

Across asset classes

Into alternatives

Investors should be wary of “product”, especially based on back tested strategies

Hedge funds are not an asset class, and do not have a monopoly on absolute return

Success in absolute return is based on choosing the right managers, not allocating to a generic strategy

Careful due diligence is required

8

The team

Fund Manager:

Lee Manzi

Jupiter Asset Management Ltd.

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 teamand 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.

Proven, experienced investment team with award winning track record

Head of Team & Fund Manager:

Miles Geldard

Jupiter Asset Management Ltd.

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.

9

Absolute returns from a traditional fund

-40

-20

0

20

40

60

80

100

120

140

Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03

% G

row

th

JPM Pacific Balanced / JF Pacific Income Fund 122.22 MSCI AC Pacific 30.48

JPM Pacific Balanced Fund (previously named JF Pacific Income Fund)

1999 % 2000 % 2001 % 2002 % 2003 %

Fund 44.8 -1.5 9.3 2.6 30.8

MSCI Pacific 57.6 -25.8 -22.1 -8.9 39.8

Source: Bloomberg in USD. Past Performance should not be seen as a guide to the future. The JF Pacific Income fund was not a UCITS scheme, and therefore not subject to the same regulatory framework as the Jupiter Global Fund. The performance figures of these funds are shown as a representation of the fund manager’s experience and are not necessarily indicative of the potential performance of the Jupiter Strategic Total Return SICAV.

10

Low risk global multi asset absolute return fund

0

1

2

3

4

5

6

7

8

9

10

Oct 04 Dec 04 Feb 05 Apr 05 Jun 05 Aug 05 Oct 05 Dec 05 Feb 06

Re

turn

JPM Capital Preservation 8.56 EURIBOR 1mth 3.16

JPM Capital Preservation Fund

Source: Bloomberg 31.10.04 to 31.03.06 in EUR. Past Performance should not be seen as a guide to the future. The JF The performance figures of this fund is shown as a representation of the fund manager’s experience and are not necessarily indicative of the potential performance of the Jupiter Strategic Total Return SICAV.

11

Jupiter Strategic Total Return

Aiming to achieve absolute returns by investing on a global basis in a range of asset classes

Seeking to achieve cash +3% over a rolling 3 year basis with low volatility

The fund uses the full flexibility permitted within “sophisticated” UCITS III

Miles Geldard has used this unique investment approach to manage portfolios since 1998

Combines top down strategic asset allocation with bottom up security selection

Asset classes include bonds, money market instruments, convertibles, equities and foreign exchange

12

Asset class exposures and limits

Maximum equity 40% (Including CB delta)

Maximum 5 year duration

Maximum non-base currency 30%

Average implied credit quality investment grade, albeit with no credit limitation on individual issues

Target volatility <5%

Strong focus on liquidity & diversification

The above controls are internal guidelines drawn up by the fund managers as part as their investment process and are not maximum fund limits. The fund has the power to exceed the stated limits.

13

Investment process (I)

14

Investment process (II)

15

Investment philosophy

Long term, value driven investment approach

Agnostic to choice of asset class, geography and sector

Short term tactical trading to optimise entry/exit points and minimise drawdowns

Strict risk budgeting for each position and overall portfolio

Derivatives used to improve risk/return profile, hedge, gain optionality and reduce tail risk

Seeking to achieve an asymmetric return profile

16

Miles Geldard investment awards

Convertible funds Other funds

2009 Sauren Golden Awards3 gold medals for outstanding fund management in convertibles

2005/6 JPM Global Convertibles Fund5 star rated by S&P

End 2005 JF Global CB Open 95Lipper Japan – Best Global Convertibles Fund over 3 and 5 years

End 2004 JF World CB OpenMorningstar Japan “Fund of the Year 2004 – International Division”

End 2003 JF Global CB Open 95Morningstar Japan “Fund of the Year 2003 – International Division”

End 2001 JF Global CB Open 95Morningstar Japan “Fund of the Year 2001 – International Division” andNikkei Money “Best Fund Manager 2001” based on 3,2,1 years

2009 Sauren Golden Awards2 gold medals for excellent fund management in Multi Strategy2 gold medals for excellent fund management in Absolute Return

2008 Sauren Golden Awards 2 gold medals for excellent fund management in Multi Strategy2 gold medals for excellent fund management in Absolute Return

End 2004 JF Global Bond and Currency FundS&P Offshore Fund Awards 2004Best global fixed income fund (USD) over 5 years

End 2002 JF Global Bond and Currency FundBenchmark/Lipper AsiaNumber 1 global bond fund over 3 years

End 2001 JF SAR Global Bond FundS&P Micropal/SCMPNumber 1 global bond fund over 1 and 3 yearsJF SAR HKD Bond FundNumber 1 Mercer fixed income survey 1,3,5 years

End 2000 JF Pacific Income Fund (renamed JPMF Pacific Balanced Fund) S&P Micropal/SCMP – Number 1 Pacific cum-Japan equity fund

Past performance is no guide to future performance.

17

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 for business conducted 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 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 investments 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.

For your security we may record or randomly monitor all telephone calls. If. 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.

The Jupiter Strategic Total Return Fund can use derivatives to speculate as to the direction a market index, currency or share will move and can cause periods of high volatility. The Fund may incur losses greater than its initial investment into derivative contracts (although investors will not incur any liabilities beyond their initial investment). The Fund is able to gain market exposure in excess of its net asset value which can increase or decrease the value of units to a greater extent than would have occurred had no additional market exposure beyond the Fund’s net asset been in place. The Fund’s value is unlikely to mirror increases and decreases in line with the respective markets it is invested in to. Further information is contained within the simplified prospectus

This document is for information only regarding a product that has not yet launched and is not an offer to sell or an invitation to buy. In particular, it does not constitute an offer or solicitation in any jurisdiction where it is unlawful or where the person making the offer or solicitation is not qualified to do so or the recipient may not lawfully receive any such offer or solicitation. It is the responsibility of any person in possession of this document to inform themselves, and to observe, all applicable laws and regulations of relevant jurisdictions. The information and any opinions contained herein have been obtained from or are based on sources which are believed to be reliable, but the accuracy cannot be guaranteed.No responsibility can be accepted for any consequential loss from this information.

3809_SCV_STRAT TOT RET.