Why Acadian? Overview Global equity and fixed income manager headquartered in Boston Wholly owned affiliates in Singapore licensed Management (UK) Ltd.), authorized and regulated by the FinancialServices Authority. 210 employees As of December 31, 2008 Investment Philosophy t success derives from: Broad Universe –for Most Opportunity Multi-Factor Analysis –for Deepest Insight sion-making and focus on objectivity, Research Process Focus: enhance process, id Current projects include: New stock selection measures, including sentiment and growth related factors ecific stock groups includingvalue/gr owth, large/small, and long/short FX forecasting model Style forecasting and dynamic factor weighting Top/down model enhancem NOT FINAL FINAL Idea Add to Process Discuss Ideas Team led by Chief Investment Officers Assign/ Prioritize Projects John Chisholm/ Terence Burnham/ Charles Wang Decision Yes/No Team Evaluate/ Present Results Individuals Chief Investment Officers Investment Process Overview Top-Down Analysis Peer Group Forecasts: Software and Services, Japan vs. World Equity Bottom-Up Analysis Stock Forecasts: Nintendo vs. Software and Stock Forecast Growth Forecasting Example Media Effect -0.29 Earnings Trend Earnings Surprise Recommendation Change0.13 Insider Trading +0.45 Asset Quality -0.03 Cash Flow Quality Operating Quality 0.34 Technical +0.10 Price Reversal 0.02 Price Momentum 0.08 Industry Leadership -0.25 Price to Intrinsic Value -0.08 Price to Earnings -0.12 Price to Normalized Earnings -0.09 Cash Flow -0.11 Value -0.15 Operating Margin Change Growth 3 Month Recommendation 0.01 +0.02 Industrial Sensitivity Technical +0.15 2 to 7 Month Momentum Source: Acadian The selected stock is intended to be an example of the process a nd is not a recommendation to buy or sell this specific securit y. For illustrative purposes only. Stock Forecast Relative to Software and Services in Japan: +0.92% Software and Services in Japan Relative to World Equity : 0.07% World-Relative Assessment of Nintendo +0.99% Stock Factors Underlying Individual Factors Acadian Combined Factor Price/Book Price/Sales Price/Cash Earnings Price to Intrinsic Value Price/Earnings Forward Price/Earnings Dividend Change Dividend Yield Price to Earnings Normalized P/E Dividend Discount Model Enterprise Value/EBITDA Price to Normalized Earnings Cash Flow ROI Upside Potential Cash Flow Value Trend in Analyst Revision Index Change in Expected Growth Cash Flow ROI Momentum Earnings Trend FY1 Predicted Surprise 12-Month Forward Surprise Predictor Earnings Surprise Indicator Earnings Surprise Predictor 1- to 3- Month Recommendation Change Recommendation Change Insider Trading Insider Trading Capex to Depreciation Ratio Change in Capex to Sales Investment Quality Cash Flow from Operations Cash Flow to Invested Capital Cash Flow Quality Operating Quality 30-, 10- and 5-Day Return Reversal Price Reversal Short-Term Price Momentum 1-Year Momentum Price Momentum Portfolio Construction Goal is to maximize value-added relative to risk Acadian Investment Team Gary L. Bergstrom, Ph.D. Chairman over 35 years of continuous experience in global investing member of the Acadian Executive Committee started Putnam International Fund in 1971 founded Acadian in 1977 and launched State Street Bank’s International Index Fund published extensive pioneering research on global equity investing and related topics has lectured at Boston Universit and at the Boston Securit Anal sts Societ Biographies Acadian Investment Team Terence C. Burnham, Ph.D. – Portfolio Manager and Director of Economics former professor of economics at the Harvard Business School, the University of Michigan, and Harvard University author of Mean Markets and Lizard Brains , co-author of Mean Genes , published numerous academic articles previously worked for Goldman, Sachs & Co., and other financial firms Ph.D. in business economics from Harvard University, MBA in finance from MIT Sloan School, M.S. in computer science from San Diego State University, B.S. from University of Michigan former tank driver in the U.S. Marine Corps Matthew J. Cohen, CFA – Senior Vice President and Portfolio Manager specializes in quantitative equity valuation techniques manages the processes and data that drive Acadian's investment approach plays key research role and implements research-driven enhancements into the investment process joined Acadian in 1994 after working for Digital Equipment Corporation as a senior systems analyst and project manager sics from Brown Universit Michael D. McCart, CFA – Associate Director of Portfolio Analytics member of Acadian's portfolio analytics group joined Acadian after working at Citigroup on the development of the algorithmic trading infrastructure formerly a principal at Inference Group LLC, a statistical arbitrage hedge fund worked for ITG on the portfolio optimization and back-testing system CFA charterholder B.S. in engineering and economics from University of Pennsylvania Constantine P. Papageorgiou, Ph.D., CFA – Vice President and Portfolio Manager member of Acadian's portfolio management and research team joined Acadian after working for AlphaSimplex Group as a Vice President, with a focus on research, strategy development, automated trading algorithms and portfolio management Ph.D. and S.M. in Computer Science from MIT, B.S. in Mathematics/Computer Science from Carnegie Mellon University CFA charterholder Charles H. Wang, Ph.D. – Senior Vice President and Co-Director of Research Ph.D.from Harvard Universit , BAS from Stanford Universit Biographies Acadian Investment Team Bin Shi, Ph.D. Quantitative Research Analyst member of Acadian's research team Ph.D. in engineering statistics, M.S. in operations research from Georgia Institute of Technology, B.S. in mechanical engineering formerly a statistician for The MathWorks Inc. with experience in developing MATLAB toolbox in the areas of statistics and econometrics Jennifer W. Sjostedt, CFA – Vice President of Portfolio Construction and Trading responsible for the management of the portfolio construction and trading group worked in several capacities in the industry over the last 15 years, including portfolio management, quantitative research analysis, and systems design and development B.A. in economics and Russian from Middlebury College, M.S. in computer science from Boston College Biographies Acadian Investment Team Evgueni Damaskine – Portfolio Analyst member of Acadian's portfolio analytics group prior experience in developing trading strategies at Citigroup, Inc. B.S. in electrical engineering from Moscow State Institute of Transportation Paul H. Erlich – Senior Research Analyst member of Acadian's research team joined Acadian in 1995 helps develop, maintain, and revise stock selection models and aspects of their implementation in portfolio optimization contributes quantitative insight to various aspects of Acadian’s investment process B.S. in physics from Yale University Patrick J. McCafferty, CFA Associate Portfolio Manager member of Acadian’s portfolio management team formerly a member of Acadian’s portfolio construction and trading group responsible for equity and currency trading e and B.S. from Boston Universit Asha Mehta – Investment Research Analyst member of of Acadian’s research team formerly an Investment Banking professional at Goldman, Sachs & Co. with experience ury Tsitkou, Ph.D. – Portfolio Analyst specializes in market microstructure and algorithmic trading previously worked at Citigroup and Goldman Sachs as a member of algorithmic trading teams Ph.D. in mathematics from Belarus National University and M.A. in economics from Binghamton University Biographies John L. Peta, CFA Senior Vice President and Portfolio Manager -49.4 -24.4 -11.7 -5.7 -0.3 5.8 3.7 1.6 0.3 2.0 1.1 -1.3 4.9 -42.2 -19.7 -7.9 -3.6 -0.1 -0.2 -2.7 1 Year2 Years3 Years4 Years5 Years6 Years7 Years8 Years9 Years10 Years Acadian Global MSCI AC World Net -49.4 12.8 20.6 14.7 24.6 42.8 -8.1 -11.7 -10.2 19.5 -19.3 -16.2 34.0 -42.2 11.7 21.0 10.8 15.2 24.9 -13.2 2008200720062005200420032002200120001999 -36.2 -22.9 -15.3 -0.2 6.3 -4.9 6.3 -26.8 -16.8 -10.9 -2.8 0.8 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years Acadian Japan Topix -36.2 -6.8 2.3 20.6 46.3 34.9 16.4 26.1 2.2 -5.3 -26.8 38.5 2006 Important Legal Information Selector Management Fund (“Selector”), with an address at 14 Bo is organized in Luxembourg as multiple compartment investment company with variable share capi , 2002 relating to undertakings for collective investment. Selector qualifies as an undertaking for collective investment in transfer able securities (a