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Credit Suisse/Aberdeen Multi-Manager June 2009

Credit Suisse/Aberdeen Multi-Manager June 2009. Corporate Bond Sector - Caveat Emptor ? What lies within the Corporate Bond Sectors?. Agenda : Corporate Bond Sector - Caveat Emptor ?. From Zurich to Aberdeen Corporate bonds – the ‘in vogue’ sector

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Credit Suisse/Aberdeen Multi-Manager June 2009

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  1. Credit Suisse/Aberdeen Multi-ManagerJune 2009 Corporate Bond Sector - Caveat Emptor ? What lies within the Corporate Bond Sectors?

  2. Agenda : Corporate Bond Sector - Caveat Emptor ? • From Zurich to Aberdeen • Corporate bonds – the ‘in vogue’ sector • The divergence in performance of corporate bond funds • What does UCITS III mean for corporate bond funds? • What type of bond funds do we buy? • Summary Asset Management

  3. Aberdeen From Zurich to Aberdeen - The Multi Manager Team at Credit Suisse • 12 multi-manager funds • FUM £700m No Change • Fund Range • Investment Process TIMELINE: 1st July Team; 1st August Funds Funds under Management at 18th June 2009 Asset Management

  4. IMA Fund Flow Statistics – Corporate Bond Fund Sector is in Vogue! Source: IMA 31/12/08 - 30/04/09 Gross sales in £ Corporate Bond Sector in 2009 is £4.8bn Asset Management

  5. IMA Sterling Bond Sector 2009 Performance–Surprising Divergence +7.7% CS MM £ Bond 4.6% IMA Sector Avg -1.6% -14.4% The difference in performance between top and bottom year to date is 22% Source: Lipper Hindsight 31/12/08 – 29/05/09 Asset Management

  6. IMA Sterling Bond Sector 2009 Performance–Surprising Divergence L&G Dynamic 16.0% Caz Strategic 11.9% Invesco Stg11.3% RWC Glb Conv 10.3% +7.7% M&G Strategic 7.5% CS MM £ Bond 4.6% Bluebay Inv Grd 7.2% Thread Abslt 2.3% IMA Sector Avg -1.6% Temp Glbl TR -2.5% Thames R Glbl -5.7% -14.4% The difference in performance between top and bottom year to date is 22% Source: Lipper Hindsight 31/12/08 – 29/05/09 Asset Management

  7. Bond Classifications Funds In Sector • IMA UK Corporate Bonds 88 • IMA £ Strategic Bonds 61 • IMA £ High Yield 21 • Lipper Global £ Corporates 24 • Lipper Global £ High Yield 8 • Lipper Global Global Corporates 28 • Lipper Global £ 164 • Lipper Global Bond Global 381 TOTAL 775 Source: Lipper Hindsight 31/12/08 – 29/05/09 Asset Management

  8. What is UCITS III? - UCITS rules framework issued in 2002 • Adapted and implemented 2007 onwards • Extends use of eligible instruments e.g. derivatives - Underlying asset must be available as direct investment - Increased risk management demands e.g. value-at-risk - Convergence of sophisticated strategies into retail world Asset Management

  9. US All Corporate Bonds Default Rate: Trailing 12 month Issuer Weighted Source: Moody’s Investors Service, Thomson Datastream & Cazenove Capital Management Asset Management

  10. Risk Reward Profile • Asymmetric Risk • Interest Rate Risk or Duration - Credit Risk and Credit Ratings - Research Process - Portfolio Construction Asset Management

  11. What funds we hold and why? SECTORKEYYIELD % • Cazenove Strategic Bond IMA £ Strat Bond Active/HY 7.5% 8% • Templeton Global Total Return LG Bond Global Resource/Global 6.5% 8% • Invesco Sterling Bond LG Bond £ Credit Beta 8.4% 16% • BlueBay Investment Grade LG Bond £ Corp Low Beta 6% 16% • L&G Dynamic Bond IMA £ Strat Conviction Mgt - 8% • Threadneedle Absolute Return Bd IMA Absolute Ret Downside protection - 8% • M&G Strategic Corporate Bond £ Corp Bond Macro Approach 3.6% 8% Includes all holdings of the Credit Suisse MM Sterling Bond Fund as at 29th May 2009 except the Thames River Global Bond Fund which is entirely sovereign debt. A number of the above funds are held in our other mandates. Asset Management

  12. BlueBay Investment Grade Fund We bought the Bluebay Investment Grade Fund September 2008 Asset Management

  13. M&G Strategic Bond vs New Star Sterling Bond vs Old Mutual Corporate Bond funds We sold the Old Mutual fund in February 2008 and sold New Star September 2008 Asset Management

  14. Our selections: look through Investment Grade High Yield Source: Credit Suisse 29.05.09 Asset Management

  15. CS Multi-Manager £ Corporate Bond Fund Source: Lipper HSW Growth TR GBP Figures 30.03.07 – 31.05.09 from the date that the new team started to manage the fund. Please note that past performance is not necessarily a guide to the future. Asset Management

  16. Disparity of returns – it’s not just the Corporate Bond Sector Source: Lipper HSW Growth TR GBP Figures 31.05.08 – 31.05.09. Please note that past performance is not necessarily a guide to the future. Asset Management

  17. CS MM Cautious Managed (19th of 53) -14% CS MM Multi Asset Growth (3rd of 54) -17% CS MM Balanced Managed (7th of 54) CS MM Equity Managed (16th of 46) -21% Key 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Disparity of Returns – also amongst multi-manager funds Source: Lipper HSW Growth TR GBP Figures 31.05.08 – 31.05.09. Please note that past performance is not necessarily a guide to the future. Asset Management

  18. Summary – Corporate Bond Sector - Caveat Emptor ? • A seamless transition from CS to Aberdeen Asset Management • Buyer beware, not only with single manager funds but also multi-manager funds • Corporate bond funds – handle with care 10 out of 12 of the Credit Suisse Multi Manager Funds are top quartile year to date Source: Lipper Hindsight 31/12/08 – 16/06/09 Asset Management

  19. Important Information • This presentation has been produced for professional advisers only and is not for circulation to or to be relied upon by retail clients in any form. • Any research included in this document is for illustrative purposes only. It was procured for the Asset Management business of Credit Suisse, One Cabot Square, London E14 4QJ, Tel: 020 7888 0134, www.credit-suisse.com/uk, for its own purposes and is no longer current. The mention of specific funds should not be construed as a recommendation to deal. For your own protection telephone conversations may be recorded. • Issued by CREDIT SUISSE ASSET MANAGEMENT LIMITED and CREDIT SUISSE ASSET MANAGEMENT FUNDS (UK) LIMITED (both authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS). • The information contained in this presentation is believed to be correct. Whilst every care has been taken in compiling this presentation, CREDIT SUISSE ASSET MANAGEMENT LIMITED and CREDIT SUISSE ASSET MANAGEMENT FUNDS (UK) LIMITED cannot be held responsible for any errors or omissions. • The price of shares and income from them may fall as well as rise. You may not get back the amount of your original investment. Please not that past performance is not a guide to future returns. Please ask your Sales Manager or visit our website at www.credit-suisse.com/uk for up to date performance information. Asset Management

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