Global

1
Global EAFE equities at Newton

• Paul Markham, Director of Investment Management -
  Global Equities
• 26 February 2008

2
Idea generation - Themes efficiently focus our
research
DVD Also update - XYZ inst slide library- PIM
slide library

• Themes are our interpretation of key forces that
  drive change
• Themes provide a stimulus for debate at the
  widest level
• Themes continually evolve prompting a stream of
  new ideas

Themes make us better stock pickers
3
Credit crisis so what happens next?
Tangible Equity to Assets ratio European Banks

• Regulators will insist that banks hold more
  CAPITAL Implications dividend cuts, capital
  raisings in 2008
• The cost of borrowing is going up for
  EVERYONE!More foreclosures, more bankruptcies,
  more bad debts
• Attention will shift to the investors in
  structured credit products. Were these
  mis-sold?Expect LITIGATION
• NEWTON VIEW Continue to avoid U.S. and
  Investment Banks

Source Citi Investment Research analysis
4
Portfolio construction EAFE Plus representative
account vs MSCI EAFE (as of 31 Jan 2008)
DVD Updated by Eleanor Perks Date Monthly
Key sector positions compared to MSCI EAFE()
Relative position to benchmark ()
underweight
overweight
Source Newton as at 31 Jan 2008Portfolio
holdings are subject to change at any time
without notice and should not be construed as
investment recommendations
5
Newtons appeal - Our process delivers
Newton EAFE Plus Equity Composite Versus MSCI
EAFE NDR Index
Newton Global Equity Institutional Composite
Versus MSCI World NDR Index
Performance relative to the Index()
Performance relative to the Index()

• Stock picking with conviction
• Strong performance regardless of investment
  environment
• High information ratios strong risk adjusted
  returns
• The process has worked for nearly 30 years

Underperformance
Outperformance
Underperformance
Outperformance
Please see appendix for full disclosure
information Source Internal Composite, U.S.
Dollars, periods to 12/31/07
6
Newton EAFE (Global Equity ex U.S.) Plus
Composite Annual Disclosure Presentation
DVD NIM Version Signed of by Steph Cregg
N.A. - Information is not statistically
meaningful due to an insufficient number of
portfolios in the composite for the entire
year. Part period return Composite inception
1st November 1997.

• Newton EAFE (Global Equity ex US) Plus Composite
  contains fully discretionary segregated
  portfolios that invest in global equity markets
  with the exception of North America and for
  comparison purposes is measured against the MSCI
  EAFE Index. This composite comprises portfolios
  that invest in global equities including emerging
  markets, which may include stocks that do not
  form part of the benchmark. Returns include the
  effect of foreign currency exchange rates.  
• Newton has prepared and presented this report in
  compliance with the Global Investment Performance
  Standards (GIPS).  
• Newton refers to the following group of
  affiliated companies Newton Investment
  Management Limited, Newton Capital Management
  Limited, Newton International Investment
  Management Limited, Newton Capital Management LLC
  and Newton Fund Managers (CI) Limited. Assets
  under management include assets managed by all of
  these companies except Newton Capital Management
  LLC, which provides marketing services in the
  U.S. for Newton Capital Management Limited Except
  for Newton Capital Management LLC and Newton
  Capital Management Limited, none of the other
  Newton companies offer services in the U.S. The
  firm maintains a complete list and description of
  composites, which is available upon request.  
• Results are based on fully discretionary accounts
  under management, including those accounts no
  longer with the firm. Non-fee-paying accounts are
  not included in this composite. Capital gains,
  dividend and interest received may be subject to
  withholding tax imposed by the country of origin
  and such taxes may not be recoverable. The MSCI
  Index range is calculated gross of withholding
  taxes. Past performance is not indicative of
  future results.  
• The U.S. Dollar is the currency used to express
  performance. Further information regarding the
  exchange rates used is available upon request.
  Returns are presented gross of management fees
  and include the reinvestment of all income.
  Actual returns will be reduced by investment
  advisory fees and other expenses that may be
  incurred in the management of the account. The
  fee schedule appropriate for this presentation
  starts at 0.25 per annum subject to a minimum of
  100,000, however, individual fees are negotiated
  on an account by account basis. 
• The Newton Global Equity (ex US) Composite was
  created 4Q04. 
• Newton has prepared and presented this report in
  compliance with the Global Investment Performance
  Standards (GIPS ). For each of the years from
  1996 to 2005, Newton has been verified by an
  independent verifier. Copies of the verification
  reports are available upon request. Additional
  information regarding the firms policies and
  procedures for calculating and reporting
  performance results is available upon request.

7
Newton Global Equity Institutional Composite -
Annual Disclosure Presentation
DVD Signed off by Steph Cregg
N.A. - Information is not statistically
meaningful due to an insufficient number of
portfolios in the composite for the entire year.

• Newton Global Equity Institutional Composite
  contains fully discretionary equity portfolios
  that invest in global equities including emerging
  markets, which may include stocks that do not
  form part of the benchmark and for comparison
  purposes is measured against the FTSE World and
  MSCI World indices. Returns include the effect of
  foreign currency exchange rates. 
• Newton has prepared and presented this report in
  compliance with the Global Investment Performance
  Standards (GIPS).  
• Newton refers to the following group of
  affiliated companies Newton Investment
  Management Limited, Newton Capital Management
  Limited, Newton International Investment
  Management Limited, Newton Capital Management LLC
  and Newton Fund Managers (CI) Limited. Assets
  under management include assets managed by all of
  these companies except Newton Capital Management
  LLC, which provides marketing services in the
  U.S. for Newton Capital Management Limited Except
  for Newton Capital Management LLC and Newton
  Capital Management Limited, none of the other
  Newton companies offer services in the U.S. The
  firm maintains a complete list and description of
  composites, which is available upon request.
• Results are based on fully discretionary accounts
  under management, including those accounts no
  longer with the firm. Non-fee-paying accounts are
  not included in this composite. Capital gains,
  dividend and interest received may be subject to
  withholding tax imposed by the country of origin
  and such taxes may not be recoverable. The FTSE
  and MSCI Index ranges are calculated gross of
  withholding taxes. Past performance is not
  indicative of future results 
• The Pound Sterling is the currency used to
  express performance. Further information
  regarding the exchange rates used is available
  upon request. Returns are presented gross of
  management fees and include the reinvestment of
  all income. Actual returns will be reduced by
  investment advisory fees and other expenses that
  may be incurred in the management of the account.
  The fee schedule appropriate for this
  presentation starts at 0.25 per annum subject to
  a minimum of 100,000, however, individual fees
  are negotiated on an account by account basis.
  The annual composite dispersion presented is an
  equal-weighted standard deviation calculated for
  the accounts in the composite the entire year. 
• Carve-outs are included in this composite and
  performance reflects required total segment plus
  cash returns using a pro-rated cash allocation.
  Carve-outs from composite 720001 comprise 2.8 of
  this composite at the end of 2006.  
• The Newton Global Equity Institutional Composite
  was created 3Q00. 
• Newton has prepared and presented this report in
  compliance with the Global Investment Performance
  Standards (GIPS ). For each of the years from
  1996 to 2005, Newton has been verified by an
  independent verifier. Copies of the verification
  reports are available upon request. Additional
  information regarding the firms policies and
  procedures for calculating and reporting
  performance results is available upon request.

8
Important information

• Newton Investment Management Limited
• Past performance is not a guide to future
  returns. The value of investments and the income
  from them can fall as well as rise and investors
  may not get back the original amount invested.
  The value of overseas securities will be
  influenced by fluctuations in exchange rates. If
  part of the portfolio is invested in
  sub-investment grade bonds, which typically have
  a low credit rating and carry a high degree of
  default risk, then please be aware that this can
  affect the capital value of your investment. If
  the portfolio has exposure to hedge funds, gold,
  private equity and property via publicly quoted
  transferable securities, then there are
  additional risks associated with these sectors.
  The information contained within this document
  should not be construed as a recommendation to
  buy or sell a security. It should not be assumed
  that a security has been - or will be -
  profitable. There is no assurance that a
  security will remain in the portfolio.
• This presentation is for professional investors
  only. The opinions expressed in this
  presentation are those of Newton Investment
  Management and should not be construed as
  investment advice. In addition the information
  contained in this presentation should not be
  construed as a recommendation to buy or sell a
  security.
• Newton Investment Management Limited Mellon
  Fund Managers Limited
• The Bank of New York Mellon Centre The Bank of
  New York Mellon Centre
• 160 Queen Victoria Street 160 Queen Victoria
  Street
• London EC4V 4LA London EC4V 4LA
• Registered in England No. 1371973 Registered
  in England No. 1998251
• Tel [phone]
• www.newton.co.uk
• Registered office As above
• Authorised and regulated by the Financial
  Services AuthorityThe Bank of New York Mellon
  CorporationSM