www.feetplc.co.uk

Private & Confidential

Fundsmith Emerging Equities TrustAnnual General Meeting

May 2017

Page 2

IMPORTANT NOTICE

Fundsmith LLP (“Fundsmith”) is authorised and regulated by theFinancial Conduct Authority and only acts for the funds to whom itprovides regulated investment management and transactionarrangement services. Fundsmith does not act for or advisepotential investors in connection with acquiring shares in FundsmithEmerging Equities Trust plc and will not be responsible to potentialinvestors for providing them with protections afforded to clients ofFundsmith. Prospective investors are strongly advised to take theirown legal, investment and tax advice from independent and suitablyqualified advisers. The value of investments may go up as well asdown. Past performance is not a guide to future performance.

Page 3

Why Fundsmith Emerging Equities Trust (“FEET”)?

• Growing demand from Fundsmith Equity Fund (“FEF”) investors for directexposure to emerging markets

• Attractive demographics and growing spending power of middle classconsumers in developing countries

• Lower liquidity in emerging markets not compatible with open-ended fundstructure

Page 4

Growth in the consuming classes

1 Consuming class: Daily disposable income is ≥$10, Below consuming class: Daily disposable income is <$10Incomes adjusted for purchasing-power parity

2 Projected 3 Estimate based on 2010 private consumption’s share of GDP will remain constant

Sources: Groningen University, Brookings Institution, McKinsey

Page 5

Distribution of growth in middle class consumption 2000-2050

Source: Euromonitor; Bain Macro Trends Group analysis

Page 6

Generating superior investment returns

• Companies with a high rate of return (ROCE); and

• Growth; at

• A valuation which is reasonable or cheap

Page 7

Generating superior investment returns

• Companies with a high rate of return (ROCE); and

• Growth; at

• A valuation which is reasonable or cheap

Page 8

Multinational subsidiaries generate higher returns than their parents

0% 20% 40% 60% 80% 100% 120% 140%

Ambev

BAT Bangladesh

Colgate Palmolive India

East African Breweries

Hindustan Unilever

HM Sampoerna

Kimberly-Clark de Mexico

Nestlé Lanka

P&G Hygiene

Tanzanian Breweries

FEET subsidiary vs. parent ROCE

Subsidiary ROCE Parent ROCE

Source: Bloomberg, Fundsmith research

Page 9

Brewers ROCE: Multinationals v EM subsidiaries• Beer is low value, bulky, perishable and often packaged in glass, militating against international economies of scale

• Some of the largest beer brands – and the brewers with the highest returns – are found in the developing world

• Higher growth in the developing world has been driving consolidation amongst global brewing groups

0.1%

7.7%

8.9%

9.4%

12.4%

13.6%

23.1%

29.2%

32.2%

38.6%

44.8%

69.0%

0% 10% 20% 30% 40% 50% 60% 70%

Carlsberg

Kirin (Japan)

SAB Miller

Heineken

ABI InBev

CCU (Chile)

Nigerian Breweries

Bralirwa (Rwanda)

Ambev (Brazil)

East African Breweries (Kenya)

Tanzanian Breweries

Backus y Johnston (Peru)

International brewers' ROCE

Source: Bloomberg.

Page 10

FEET(LTM)

MSCI EM + FM(Ex-Financials)

ROCE 54% 14%

Gross margin 48% 31%

Operating margin 19% 17%

NFCFE conversion 108% 91%

Look-through metrics

Source: Bloomberg, Fundsmith research. All LTM, FX-neutral weighted average data, excluding cash, from last HY report. FEF data as at 31.12.16. FEET as at 30.04.17. MSCI as at 30.04.17 using weightings as at 30.09.16, normalised for extreme outliers.

Fundsmith Equity Fund

ROCE 27%

Gross margin 62%

Operating margin 25%

FCF conversion 99%

Page 11

Generating superior investment returns

• Companies with a high rate of return (ROCE); and

• Growth; at

• A valuation which is reasonable or cheap

Page 12

... and regularly grow faster than their parents

Source: Bloomberg

Ambev

BAT Bangladesh

Colgate Palmolive India

East African Breweries

Hindustan Unilever

HM Sampoerna

Kimberly-Clark de Mexico

Nestlé Lanka

P&G Hygiene

Tanzanian Breweries

AB Inbev

BAT

Colgate Palmolive

Diageo

Unilever

Philip Morris

Kimberly-Clark

Nestlé

P&G

SAB Miller

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

-10% -5% 0% 5% 10% 15%

3-y

r fr

ee c

ash

flo

w g

row

th

3-year revenue growth

Revenue and FCF growth

Page 13

Fundsmith Equity Fund

Examples of listed subsidiaries & franchisees in investible universe

Other investible universe firms

Fundsmith Emerging Equities Trust

Sectors we like Firms we like

Personal products

Household Products

Food products

Spirits

Master franchisors

Page 14

Some FEET brands you might have heard of

Skol(Ambev)

Since 1959

Guinness(Guinness Nigeria)

Since 1827

Rexona(Unilever Indonesia)

Since 1933

Maggi(Nestle India)

Since 1988

Colgate(Colgate India)

Since 1949

Page 15

Others you may not have

Parachute(Marico)

Since 1862

Golden Label(Foshan Haitian)

Since 1799

Good Knight(Godrej)

Since 1984

All Gold (Tiger Brands)

Since 1908

Biotonico Fontoura(Hypermarcas)

Since 1910

Indomie Noodles(IndoFood)Since 1970s

Page 16

MSCI Index composition by sector

Source: www.msci.com, as at 31.12.16. Active share as at 30.04.17

% of index in IU: 1.8%% of index in portfolio: 1.3%Active share: 98.7%

Sectors we invest inSectors we don’t invest inSectors we might invest in

Financials 24.9%

Information Technology 22.7%

Consumer Discretionary 10.1%

Consumer Staples7.3%

Energy 7.9%

Materials 7.4%

Telecommunication Services 6.1%

Industrials 5.7%

Utilites 2.9%

Real Estate 2.7% Health Care 2.5%

MSCI EM + FM sector weights

Page 17

How we differ from the index

Source: www.msci.com, as at 31.12.16. Fundsmith as at 30.04.17

China 25.9%

South Korea14.1%

Taiwan11.9%India 8.1%

Brazil 7.6%

Other emerging markets 27.2%

Frontier markets 5.3%

MSCI EM + FM country weights

India35.8%

South Africa 7.6%

Philippines 5.9%Brazil 5.6%

Indonesia5.6%

China 4.9%

Other emerging markets17.1%

Frontier markets,

15.7%

Cash 2.0%

FEET breakdown by country

Page 18

FEET portfolio: sector split

Source: Fundsmith. As at 30.04.17.

Food & Beverage

37.4%

FMCG 26.8%

Retail 12.0%

Tobacco 7.5%

Health Care6.8%

Fast Food 3.7%

Chemicals 3.0%IT 0.6% Auto 0.2% Cash 2.0%

FEET Sectors

Consumer Staples 79.9%

Consumer Discretionary

7.6%

Health Care 6.8%

Materials 3.0%

Information Technology 0.6% Industrials 0.2%

Cash 2.0%

GICS Sectors

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Good sectors vs. bad sectors

Source: Aswath Damodaran, Professor of Finance at Stern School of Business at New York University

Page 20

FEET performance overview

% Total return

2017 -30.04.17

2016 2015 2014*Since

inception

FEET NAV1 +6.0 +12.0 -7.0 +0.1 +10.7

FEET share price2 +6.3 +10.5 -10.9 +7.2 +12.2

Emerging markets 3 +8.7 +32.4 -10.0 +0.5 +30.2

UK bonds 4 +1.8 +6.5 +1.0 +7.4 +17.5

UK cash 5 +0.1 +0.5 +0.6 +0.3 +1.51 Net of fees, priced at market close (source: Fundsmith)2 At LSE close (source: Fundsmith)3 MSCI Emerging & Frontier Markets Index (£ Net) priced at close of business US EST (source: www.msci.com) 4 Bloomberg/EFFAS Bond Indices UK Govt 5-10yr (source: Bloomberg)5 3m £ LIBOR Interest Rate (source: Bloomberg)* From 25.6.14

Page 21

ETF fund flows

Source: EPFR Global. Data to 31.12.16

-80

-60

-40

-20

0

20

40

60

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16$b

n

Cumulative EM fund flows since 2012

ETF only Non-ETF

FEET IPO

-30

-20

-10

0

10

20

30

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

$b

n

Cumulative EM fund flows 2016

ETF only Non-ETF

Page 22

Main components of benchmark performance

Top 10 MSCI EM Constituents

%Wtg.

31.12.15 –

31.12.16 % change

Samsung Electronics (KR) 3.7 69.3

Tencent Holdings (CN) 3.4 48.4

Taiwan Semiconductor (TW) 3.4 53.9

Alibaba Group (CN) 2.4 29.0

China Mobile (CN) 1.6 12.1

China Construction (CN) 1.6 34.1

Naspers (ZA) 1.6 27.9

Baidu (CN) 1.1 3.8

ICBC (CN) 1.1 18.5

Hon Hai Precision Ind (TW) 1.0 39.0

MSCI EM Sector Weights

% Wtg.

31.12.15 –

31.12.16 % change

Financials 24.9 25.6

Information Tech. 22.7 29.0

Consumer Discr. 10.1 21.4

Energy 7.9 61.2

Materials 7.4 56.0

Cons Staples 7.3 18.5

Telecom Services 6.1 20.6

Industrials 5.7 20.7

Utilities 2.9 37.8

Real Estate 2.7 21.0

Health Care 2.5 5.0

Source: Weights from MSCI at 31.12.2016, returns from Bloomberg

Page 23

Top 10 FEET and MSCI holdings

Source: MSCI weightings as at 31.12.2016, pre-tax operating ROCE from Bloomberg. FEET weightings as at 30.04.2017, pre-tax operating ROCE from Fundsmith.

Top 10 FEET portfolio holdings Weight ROCETop 10 MSCI EM constituents

Weight ROCE

Godrej Consumer Products Ltd 3.8% 47% Samsung Electronics 3.7% 14%

Britannia Industries Ltd 3.8% 69% Tencent Holdings 3.4% 24%

Marico Ltd 3.7% 41%Taiwan Semiconductor Manufacturing

3.4% 23%

Philippine Seven Corp 3.6% 26% Alibaba Group Holding 2.4% 11%

Emami Ltd 3.5% 38% China Mobile 1.6% 12%

Hypermarcas Sa 3.1% 25% China Construction Bank 1.6% 8%

Asian Paints Ltd 3.0% 42% Naspers 1.6% -1%Vitasoy Intl Holdings Ltd 3.0% 26% Baidu 1.1% 12%

Vietnam Dairy Products Jsc 2.9% 41%Industrial & Commercial Bank of China

1.1% 8%

Colgate Palmolive (India) 2.9% 91% Hon Hai Precision Industry 1.0% 12%Total 33.3% Total 20.9%Average 44% Average 12%

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Good company vs. bad company

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Naspers

ROCE WACC

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Emami

ROCE WACC

Source: Bloomberg. ROCE is pre-tax operating income divided by average capital employed.

Page 25

Samsung share price

Source: Bloomberg.

Page 26

Generating superior investment returns

• Companies with a high rate of return (ROCE); and

• Growth; at

• A valuation which is reasonable or cheap

Page 27

FEET valuation metrics

As at 30.04.17 FEETMSCI EM & FM Index

(ex-Financials)

LTM NFCFE yield 3.5% 5.8%

LTM Dividend yield 2.2% 1.6%

Revenue Growth 9.9% 8.7%

NFCFE Growth 16.3% 8.1%

ROCE 54% 14%

Source: Bloomberg, Fundsmith research. All LTM FX-neutral weighted average data, excluding cash,other than EPS and revenue growth which is last full year reported as at 31.12.16. Index is weighted average as at 30.04.17, using MSCI weightings as at 30.09.16, normalised for extreme outliers. FEF data as at 31.12.16. FEET data as at 30.04.17.

As at 31.12.16Fundsmith Equity

Fund

LTM FCF yield 4.4%

LTM Dividend yield 1.8%

Revenue Growth 6.0%

2016 FCF Growth 11%

ROCE 27%

Page 28

Turnover

*FEET was still 45% cash at 31/12/2014. Turnover rate likely to fall materially.** H1 2016: 60%, H2 2016: 19.8%

Source: FEET Annual Reports to 31.12.16

FEET shares 2014 2015 2016

Value of Stocks Sold £4m £19m £43m

Portfolio Turnover Rate n/a 67%* 38%**

OCF 1.7% 1.7% 1.7%

Voluntary Dealing Costs 0.06% 0.27% 0.52%

Page 29

Tap issues

• Authority to issue up to 25% of equity granted at 2016 AGM

• Issues only done at premium to NAV and when cash is less than 10%

• Tap issue started in March 2016

• Amount raised to 30/04/2017: £44m at an average premium of 1.8%Source: Bloomberg, Fundsmith.

0

2

4

6

8

10

12

14

0

50

100

150

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250

300

Jun

-14

Au

g-1

4

Oct

-14

Dec

-14

Feb

-15

Ap

r-1

5

Jun

-15

Au

g-1

5

Oct

-15

Dec

-15

Feb

-16

Ap

r-1

6

Jun

-16

Au

g-1

6

Oct

-16

Dec

-16

Feb

-17

Ap

r-1

7

££m

FEET Market Cap

NAV/share (RHS)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0

1

2

3

4

5

6

7

03-16 04-16 05-16 06-16 07-16 08-16 09-16 10-16 11-16 12-16 01-17 02-17 03-17 04-17

Ave

rage

Pre

miu

m

£m

Funds raised

Premium to NAV (RHS)

www.feetplc.co.uk

Private & Confidential

Appendices

Same Fund ManagerSame Unique Investment ProcessSame No NonsenseSame DisciplineSame SectorsSame MethodologySame InactivitySame Total Alignment of InterestSame High Conviction

Page 31

Portfolio management details

FEET Characteristics

Typical No. Holdings 35-55

Reporting Interim & Annual

2015 OCF 1.7%

AMC 1.25%

Performance Fee No

Portfolio Turnover Low

Expenses Charged to P&L

Dividend Unlikely

Benchmark MSCI Emerging & Frontier Index

NAV Publication www.feetplc.co.uk

Risk Management

Currency HedgingNot normally but possible inextremis

Derivatives Only for currency hedging

GearingUp to 15% for max 120 days for share buybacks

Portfolio Concentration

Max 5% in one company or up to 10% for up to 40% of assets

Country Concentration

Max 40% in a single country

Counterparty Concentration

No more than 20%

Continuation Policy

At board discretion if discount >10% >1 year after 4th year

DealingVia State Street Global Markets to sub brokers in local markets

Page 32

Fund vehicle details

FEET IPO Details

Legal Structure PLC

Market LSE Main Market

Base Currency GBP

Issue Price £10

First Day of Dealings 25th June 2014

ISA Yes

Monthly Savings Yes

Manager Commitment

Terry Smith £5m Partners & Employees >£1m

AIC Member Yes, Global Emerging Mkts

Directors & Advisers

BoardMartin Bralsford – ChairmanDavid PotterJohn Spencer

Sponsor & Broker Investec Bank

Legal Adviser Travers Smith LLP

Auditor Deloitte

Administrator State Street Bank & Trust Co.

Registrar Capita Asset Services

Depositary State Street Trustees Limited

Co. Secretary Frostrow Capital LLP

Page 33

Stock attribution

Top 5Since Inception to

31st December 2016

Eastern Tobacco 1.7%

Marico 1.6%

Godrej 1.6%

Vitasoy 1.0%

Famous Brands 0.9%

Bottom 5Since Inception to

31st December 2016

Edita -1.3%

Guinness Nigeria -1.2%

Want Want -1.1%

Sun Art -1.0%

Sa Sa -0.9%

Source: Fundsmith research

Page 34

Currency attribution

Top 5Since Inception to

31st December 2016

Indian Rupee 5.4%

Hong Kong Dollar 2.0%

Philippine Peso 1.2%

Indonesian Rupiah 0.9%

Russian Ruble 0.7%

Bottom 5Since Inception to

31st December 2016

Nigerian Naira -1.4%

Brazilian Real -1.2%

Egyptian Pound -0.9%

Colombian Peso -0.3%

Mexican Peso -0.3%

Source: Fundsmith research

Page 35

FEET portfolio: geographic split

Source: Fundsmith. As at 31.03.17.

Asia63.7%EEMEA

23.0%

Latin America 11.7%

Cash, 1.6%

Breakdown by region

India34.8%

South Africa7.9%

Philippines5.9%

Indonesia5.6%

Brazil5.6%

China 4.6%

Other emerging markets18.2%

Frontier markets,

15.7%

Cash, 1.6%

Breakdown by country

Page 36

Look-through metrics

Source: Bloomberg, Fundsmith research. FEF data as at 30.04.17. FEET data as at 31.03.17. MSCI data as at 31.03.17 using weightings from 30.09.16.

FEET(LTM)

MSCI EM + FM(Ex-Financials)

Fundsmith Equity Fund

Median Mkt Cap (£m) £2,869 £4,053 £39,278

No. of holdings 53 735 29

Page 37

Liquidity

On average volumes we can liquidate:• 22.4% of the portfolio in 2 days or less• 39.9 % of the portfolio in 5 days or less• 59.6 % of the portfolio in 10 days or less

Source: Fundsmith as at 31.12.2016

0%

5%

10%

15%

20%

25%

30%

≤1 1-5 5-10 10-25 25-50 50-100 ≥100

% o

f P

ort

folio

Days to Liquidate

Page 38

Fundsmith Team

Fundsmith Partners

Terry Smith, CEO & CIO

Julian Robins, Head of Research

Mark Laurence, COO

Simon Godwin, CFO, Compliance Officer

Research

Daniel Washburn - FEF

Jonathan Imlah - FEET, Latin America

Michael O’Brien - FEET, Asia ex. India

Sandip Patodia - FEET, India

Tom Boles - FEET, EEMEA

Portfolio Implementation & Operations

Caroline Skillett - Office Manager

Eva Oroszi - Product Control & Accounts

Tom Armstrong - Product Control

Gemma Magee- Compliance Manager

Vickash Bissessur - Product Control

Client Relationships

Conrad Rey - Sales Director

Greville Ward - HNW & US

Hugo Cardale – HNW & Family Office

Joe Sacarello - Sales Director

Peter Jackson - Sales Director

Philipp von Habsburg – Sales Director

Tim Nelson- Sales Director

Page 39

Terry Smith – Fund Manager

Terry Smith graduated in History from University College Cardiff in 1974. He worked for Barclays Bank from 1974-83 andbecame an Associate of the Chartered Institute of Bankers in 1976. He obtained an MBA at The Management College,Henley in 1979. He became a stockbroker with W Greenwell & Co in 1984 and was the top-rated bank analyst in Londonfrom 1984-89. In 1990 he became head of UK Company Research at UBS Phillips & Drew, a position from which he wasdismissed in 1992 following the publication of his best selling book Accounting for Growth. He joined Collins Stewartshortly after, and became a director in 1996. In 2000 he became Chief Executive and led the management buy-out ofCollins Stewart, which was floated on the London Stock Exchange five months later. In 2003 Collins Stewart acquiredTullett Liberty and followed this in 2004 with the acquisition of Prebon Group, creating the world's second largest inter-dealer broker. Collins Stewart and Tullett Prebon were demerged in 2006 with Terry remaining CEO of Tullett Prebon untilSeptember 2014. In 2012 he was appointed a Member of the New Zealand Order of Merit for services to New Zealand-UKrelations following the success of his campaign to commemorate the New Zealander, Air Marshal Sir Keith Park.

Julian Robins started his career with the stockbroking firm EB Savory Milln in 1984. From 1987 until 1999, he worked forBZW and after their takeover of BZW’s equity business in 1998, CSFB. Between 1988 and 1993 he was BZW’s senior bankanalyst in London, from 1993 until 1999, he worked as an institutional salesman in New York. In 1999 he was one of thefounders of Collins Stewart’s New York office. He has 1st class degree in Modern History from Christ Church, Oxford andis qualified as a Series 7 Registered Representative and Series 24 General Securities Principal with FINRA.

Julian Robins – Head of Research

Page 40

Michael O’BrienMichael joined from Canaccord Genuity (formerly Collins Stewart) where he spent more than a decade as an analyst covering a wide range ofsectors and geographies. He was instrumental in the development of the company’s research product and institutional franchise. Michael beganhis career at Guinness Flight Global Asset Management (subsequently Investec Asset Management) in 1994 as an analyst before takingresponsibility for the group’s UK Small and Emerging Companies Funds in 1997, and subsequently the Recovery Fund. Michael holds an MPhil fromCambridge University.

Jonathan ImlahJonathan also joined from Canaccord Genuity, where he had been a senior technology analyst since 2010. He was previously at Altium Securitieswhere he covered technology for 6 years, latterly becoming the Head of Research. Prior to Altium, he worked at Dresdner Kleinwort coveringemerging markets equity research and subsequently pan-European IT services in the large cap technology team. Jonathan was Techmark analyst ofthe year in 2007 and was number 1 or 2 in his sector in the FT Starmine survey between 2006 and 2010. Prior to taking up a career as an analyst,Jonathan wrote country investment reports covering Mexico, Brazil, Peru, Guatemala, India, Russia, Hungary and Zimbabwe. Jonathan has an MBAfrom INSEAD and is a fluent Spanish speaker.

Sandip PatodiaSandip joined from Morgan Stanley, where he had been a Vice-President within the UK Investment Bank from 2009 to 2013, providing corporatefinance advice to UK listed companies on all aspects of their interaction with the equity markets. From 2005 to 2009, he qualified as a CharteredAccountant and worked as an M&A adviser at Ernst & Young. Sandip obtained a scholarship to Aston University and holds a first class honoursdegree in Electronics and Computer Science.

Tom BolesTom joined having completed an MSc in Economics and Finance from the University of Bristol with distinction in 2012, where his dissertation wason Persistence of Performance in the Mutual Fund Management Industry. He completed a BSc in Economics in 2011, also at Bristol University,having conducted work experience at Odey Asset Management and Neptune Investment Management. He is a CFA charterholder.

The Analysts

Page 41

Martin Bralsford - ChairmanMartin Bralsford was articled with Pannell Kerr Forster & Co, London, qualifying as a Chartered Accountant in 1970 and obtained a masters degree at theLondon Business School in 1974. Until July 2007 he was Chief Executive of C.I. Traders, taking up this role in August 2002 when it acquired Le Riche Group. C.I.Traders was an AIM listed public company with c £325 million turnover and c.3,500 employees engaged in leisure, retail (including a Marks & SpencerFranchise) and wholesale distribution and property businesses mainly in the Channel Islands. It had an enterprise value of c.£460 million. He joined Le RicheGroup as its Chief Executive in November 1992 after having previously been Group Managing Director and Chairman of Premier Brands Ltd. (now PremierFoods Ltd), part of Hillsdown Holdings. Prior to this he held a number of financial and general management appointments in Calor Gas, Rank Group, Smith KlineBeecham and Cadbury Schweppes. He has served as an independent member of the Boards of a number of commercial, banking and investment companiesincluding Gartmore Capital Strategy Fund Limited and Acorn Income Fund Limited. He is a trustee of a number of charitable trusts; a former President of theJersey Chamber of Commerce; and a former Chairman of both the Training and Employment Partnership in Jersey and the Durrell Wildlife Conservation Trust ofwhich he is a Life Trustee.

David PotterAfter 35 years in the City (CSFB, Montagu, Midland, Guinness Mahon, Investec) David has spent the last 15 years as a chairman, non-executive and trustee in awide range of companies and institutions. He is currently chairman of Gresham House Strategic and Illustrated London News and a member of the AdvisoryBoard of ALVA Capital, chairman of Spark Ventures PLC, a director of Maven Income and Growth VCT, a member of the council of The Centre for the Study ofFinancial Innovation, chairman of the Bryanston and National Film & TV School Foundations and a member of The King's College London Investment Board.

John SpencerJohn Spencer qualified as a chartered accountant in 1966 and worked with KPMG from 1966 to 1969. He joined Barclays Bank in 1969 and held a variety ofposts, including President of Barclays Bank of New York and chief executive of the USA Banking division. He returned to the UK in 1990 as deputy chiefexecutive of BZW and chief executive of the Global Markets division and was appointed a member of the Group Executive Committee. Mr. Spencer retired in1995. He was non-executive chairman of Regent Inns plc from 1995 to 1998 and served as non-executive chairman of softehhnet.com plc, a director ofNumerica Group plc and chief executive of Snell & Wilcox Limited, a private company. He was appointed director of Tullett Prebon (originally Collins Stewart) inSeptember 2000 and became the Senior Independent Non-executive Director, and a member of the Audit, Remuneration and Nominations Committees. Heresigned in June 2007. Mr. Spencer has been a non-executive director of tpSEF Inc. since August 2013.

The Board

Page 42

• First investment trust launched by Foreign & Colonial in 1868 before the first unit trust and OEIC

• It is a London Stock Exchange listed company that invests in other companies instead of making

or selling anything

• The trust issues a fixed number of shares (close-ended) to raise capital and investors can buy

and sell their shares on the stock market

• The shares can trade at a premium/discount to net asset value (NAV) as it reflects supply and

demand

What is an investment trust?

Page 43

• A permanent source of capital with which to invest

• More appropriate in emerging markets than developed because:

1. Emerging market share prices and currencies tend to be more volatile

2. Emerging market shares are often less liquid

• The investment trust structure allows us to pursue a long-term strategy without being forced to sell

holdings when investors want to cash out

• The fund can raise incremental capital by issuing primary shares in the market as long as the trust is

trading at a premium

Why an investment trust for FEET?