1. Make space for our performance Investing for UK Income by Robin Geffen Neptune Investment Management

2. 2 The Essentials of a UK Equity Income Fund 1.‘Buy and Hold’ portfolio 2.Performance throughout the economic cycle 3.Consistent, high yield (growing dividends above inflation) 4.Alignment of manager and client interests

3. 3 Buy & Hold Low relative risk for typical long term income fund holders Plenty of good investment opportunities in the top 400 UK stocks Price targets and sell disciplines Scalability and flexibility

4. 4 Performing throughout the Economic Cycle Steady Eddies ￚ Core income stocks with 5 yr dividend growth records Hidden Fruits ￚ Recovery plays awaiting catalyst for change Tactical Plays ￚ Tactical plays reflecting top down investment views A conviction led portfolio, not dictated by benchmark

5. 5 The Search for Income Every stock MUSTcontribute to the overall yield Special dividend payments Charges taken from capital NOT income The ability to invest up to 20% of the portfolio in non-UK stocks

6. 6 Equities v. Gilts Source: Lipper since 30.11.1992 to 31.01.07, Sterling, Bid-to-Bid, Net Income Reinvested

7. 7 A Structure for Success Concentrated portfolio where only the best ideas are pursued Flexible environment to foster fund manager expertise / stockpicking Capping philosophy – putting performance first Ownership incentivisation – ideally both the company & the fund

8. 8 Important Information This document is issued by Neptune Investment Management Limited (“Neptune”) which is authorised and regulated by the Financial Services Authority. Neptune Funds are available to any persons that may be marketed to under the Financial Services and Markets Act (Promotion of Collective Investment Schemes) (Exemptions) Order 2001. Private customers should consult their Independent Financial Adviser or other authorised intermediary. Please check with your professional financial adviser as to whether such products are available in the country in which you are resident. None of our products are available to residents in the United States. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to any change of our views. This is not a solicitation or an offer to buy or sell. Neptune Investment Management Limited has produced this report for private circulation to professional and institutional clients only. The material is not intended for the use of private investors. All information and advice is given in good faith but without any warranty. Please remember that past performance should not be seen as a guide of future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Any past performance data that has not been shown is due to the information not being available. Neptune is not authorised to give investment advice and only provides information on Neptune products.