1

Tina Söderlund-Boley Head of Institutions

& Intermediaries

Northern Europe

Citywire Berlin 16 -18 November 2011

Daniel Durrer Head of Fund Distribution

Intermediary Clients

Continental Europe

2

Convertible bonds

Abundant opportunities for absolute returns

3

Introduction to GAM Fixed Income

4

GAM Holding AG

GAM Holding AG is an independent group,

entirely dedicated to asset management

— Over 1,000 staff in 13 countries

worldwide

Consists of two leading investment managers:

GAM and Swiss & Global Asset Management

— Each have well-established capabilities

and brands

— Complementary investment offerings

— Operate autonomously, but co-operate

and collaborate where it is in the best

interest of clients

An independent, diversified asset management business

GAM Holding AG1

USD 134.8bn

AuM USD 60.2bn AuM USD 94.5bn

Source: GAM as at 30 Jun 2011 1 Group AuM excludes USD19.9 billion of funds advised by GAM and distributed by Swiss & Global Asset Management.

5

GAM overview

GAM is an independent, active investment

manager

USD 60.2 billion in AuM across ~ 60 different

strategies

GAM AuM by Client Type GAM AuM by Strategy

Private clients

Institutional clients

Wholesale fund distribution

Managed portfolios

& composites

Equity Fixed income

Abs. return single manager Multi-manager

Managed portfolios

& composites

54%

54%

24%

11% 11% 11%

29% 23%

23%

14%

Source: GAM

Assets under management breakdowns are as at 30 Jun 2011. GAM reports its assets under management breakdowns on a half yearly basis in line with Swiss accounting rules which

apply to our parent company, GAM Holding AG. Holdings and allocations are subject to change.

6

GAM Fixed Income Investment team Expertise and experience spanning all fixed income and currency sectors globally

Source: GAM

As at 31 Oct 2011

Dealers

Specialist

Investment

Teams

Co-Managers

Robert Champion

Tim Haywood and Daniel Sheard

Investment

Grade and

Asset-Backed

Securities

Darren Reece

Haroon Shaikh

Amy Kam

Jack Flaherty

Casey Derbyshire

Developed

Markets and

Interest Rates

Philip Mann

Tom O’Shea

High

Yield

Johannes Wagner

Emerging Mkts

& Foreign

Exchange

Paul McNamara

Caroline Gorman

Denise Prime

Ben Helm

Alex McKnight

Convertible

Bonds

Foreign

Exchange

Mark Dragten

Chris Jarman Paul Ferrier

7

Fixed Income strategies

USD 26.6bn in assets for institutional and wholesale clients globally

Source: GAM as at 30 Jun 2011

Holding and allocations are subject to change. Latest data available. Assets under management are released on a six-monthly basis in line with GAM Holding AG policy.

Long only strategies

● Global

● International

● US Core Plus

● Local Emerging Bonds

● Convertible Bonds

Absolute return strategies

● AR Bond

● AR Bond – Plus

● AR Bond – Defender

● Global Rates

● Discretionary FX

● Emerging Market Rates

● Convertible Bonds

USD

10.6bn USD

16.0bn

8

Convertible bond team

Global, absolute return approach to investing in convertibles

— Flexibility in trading styles enables performance in most macro environments

Two highly experienced convertibles managers

— Combined 35 years experience analysing, selecting and structuring convertibles trades

— Backed by the full resources of an established fixed income team

Demonstrated skill both in managing the risks and extracting value from convertible bonds

Six year track record of delivering consistent returns via their offshore fund

Asymmetric asset class with low correlation with other fixed income strategies, equity indices and traditional bond benchmarks

Source: GAM

9

Ben Helm Investment Manager

Convertible Bonds

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Asymmetric return profile gives convertibles

significant benefits over other structures:

— Are effectively corporate bonds with an

embedded call option on the stock,

providing upside potential

— Incorporate the security of a floor on the

corporate bond, protecting the downside

Different trading strategies work in each part

of the curve allowing investors to profit from all

of them

Structural support for convertibles segment:

— Larger and more diversified investor

base following the stresses of 2008

The case for investing in convertible bonds Attractive features embedded in convertibles are being recognised by a growing set of market participants

Source: GAM

0

20

40

60

80

100

120

140

160

0 20 40 60 80 100 120 140 Stock price (USD)

CB

va

lue

(U

SD

)

Parity CB Price Bond floor 'Soft' bond floor

Example: A typical convertible bond payoff

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Why convertibles?

Asymmetry

— Bond protection

— Equity upside

— Optionality

Superior risk return profile to credit or equities

Source: GAM

0

20

40

60

80

100

120

140

160

0 20 40 60 80 100 120 140

Stock price (USD)

CB

va

lue

(U

SD

)

Parity CB Price Bond floor 'Soft' bond floor

Example: A typical convertible bond payoff

12

Why UCITS III?

Don’t follow the index!

Don’t take risks you don’t like

— Rate, credit, equity…

Do selectively hedge broad

market risks

Do structure positions to profit

during market falls

Bond Equity

Cheap/mispriced

Expensive

The fair value line

Source: GAM

UCITS III: Why actively manage and hedge?

0

20

40

60

80

100

120

140

160

0 20 40 60 80 100 120 140

Stock price (USD)

CB

va

lue

(U

SD

)

Parity CB Price Bond floor 'Soft' bond floor

Example: A typical convertible bond payoff

13

How do we manage convertibles?

The index doesn’t work

CB Arbitrage as a hedge fund doesn’t fit within a UCITS framework

Portfolio of bonds targeting credit and equity themes while hedging

specific and broader risks does work

— Since 2005 in JB Absolute Return funds and since 2010 in UCITS

form via GAM Star Global Convertible Bond

Background

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Historical performance of convertibles vs other asset classes Convertible bonds have outperformed both equities and high yield bonds over time

Source: Bloomberg, Thomson Reuters

Performance from 31 Dec 1997 to 30 Sep 2011

15

Investment philosophy and process

Convertible bond markets are ultimately driven by economic fundamentals

— Understanding the macro backdrop is key to making money from convertibles

Structural mis-pricing occurs due to imperfect information available in equity and bond markets

— Non-economic decision-making

— Variation of macroeconomic influences over time

— Influence of market backdrop, sentiment and geography on behaviour

Dominance of traditional, constrained investors perpetuate these inefficiencies

— Greed, fear and forced selling provide ongoing opportunities

Issuer

filtration

and analysis

Sectoral

analysis

Portfolio

construction

Macro:

Global outlook

for local selection

1. 2. 3. 4.

Three types of trading

strategy create a

diversified portfolio

First and foremost

a macro house

Opportunities emerge

through sectoral and

regional filters

Financial, structural,

strategic analysis; not

just number crunching

Structural mispricings are frequent and can be exploited

Investment process

So we seek to use the

full set of tools

available to profit from

these inefficiencies

16

Portfolio construction – Investment strategies across the curve

Growth

(Upswing)

Recessionary

(Towards the

trough)

Mispriced

0

20

40

60

80

100

120

140

160

0 20 40 60 80 100 120 140 Stock price (USD)

CB

va

lue

(U

SD

)

Directional Trades

(Long)

Directional Trades

(short) Different trade types work

across different parts of the

curve

The weight of the portfolio to

any trade type at a given point

in time is aligned with overall

market conditions

Broad market conditions most

supportive of each type of trade

are shown in the lower graph

Economic cycle – Recovery

Parity

Convertible Bond Price

Bond floor

'Soft' bond floor

Economic cycle – Growth

Economic cycle –Recessionary

Each strategy works in a different part of the curve

Source: GAM

Weig

ht o

f

po

rtfo

lio a

sse

ts

Focus on trade type

Recovery

(Turning point)

Bond Mispriced Equity Balanced

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How does our hedging work?

Long Only Convertible Portfolio

The Gap Risk Protection

Fund V

alu

e

Equity Market

Source: GAM

18

Appendix

19

GAM Star Global Convertible Bond – USD Performance from 17 Dec 2010 (inception) to 31 Oct 2011

Past performance is not indicative of future performance. Performance is provided net of fees.

Source: GAM, Bloomberg

20

GAM Convertible Bond Hedge - USD Performance from 1 Jul 2009 (inception) to 31 Oct 2011

Past performance is not indicative of future performance. Performance is provided net of fees.

Source: JP Morgan Hedge Fund Services (Ireland) Ltd, Bloomberg

21

Convertible Bond Portfolio of JB ARBF in EUR Performance from 29 Dec 2006 (inception) to 31 Dec 2010

Source: GAM

Past performance is not indicative of future performance. Performance is provided net of fees. NOTE: this track record represents a carve-out of the actual convertible bonds portfolio of

the Julius Baer Multibond - Absolute Return Bond fund and is not available for direct investment.

FOR ILLUSTRATIVE PURPOSES ONLY

22

KFW convertible versus straight bonds Mean reversion plus free optionality

Source: Bloomberg

BP

S

23

Bulgari – Pays for itself, and then some more ...

Bulgari 5 3/8% 2014

100

140

180

220

260

300

4.0 4.6 5.2 5.8 6.4 7.0 7.6 8.2 8.8 9.4 10.0 10.6 11.2 11.8

Source: Bloomberg

Fair Bond Price Actual Price

Stock Price

Equity Parity Value

Bo

nd

Price

24

Autonomy – Takeover ratchet pays off again

Source: Bloomberg

Bo

nd

Price

25

Source: Bloomberg

Cap Gemini – A loss making position, but the bond behaved as it should B

on

d P

rice

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Cap Gemini – A loss making position, but the bond behaved as it should

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Shire Pharmaceuticals – Cheap bond eventually noticed...

Fair Bond Price Actual Price

Shire 2 3/4% 2014

100

105

110

115

120

125

130

14 15 16 17 18 19 20 21 22 23 24

Stock Price

Source: Bloomberg

BP

S

28

Contacts at GAM

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Contacts at GAM

Daniel Durrer - Head of Fund Distribution Intermediary Clients Continental Europe

Daniel Durrer is Head of Fund Distribution Intermediary Clients Continental Europe. He has over 20 years'

experience in the investment fund industry and has held different positions in the marketing, product management

and fund distribution units of the Swiss Bank Corporation and UBS. Prior to joining GAM, Daniel was responsible

for the business development of the investment fund unit of UBS in the Cayman Islands. He was educated in

Switzerland and holds a degree in Marketing Planning. He is based in Switzerland.

Email: daniel.durrer@gam.com

Tine Söderlund-Boley - Head of Institutions & Intermediaries Northern Europe

Tina Söderlund-Boley is Head of Institutions & Intermediaries Northern Europe. Prior to joining GAM in May 2000,

she worked for Independent Investment Group, SEB & Öhman Fondkommission in Sweden. Tina Söderlund-Boley

holds a Master of Law from Uppsala University, Sweden. She is based in London.

Email: tina.soderlundboley@gam.com

30

Disclaimer

Source: GAM unless otherwise stated (Unless otherwise noted, where shown, performance is shown net of fees, on a NAV to NAV basis).

The material herein is confidential and is intended solely for the use of the person or persons to whom it is given or sent and may not be reproduced, copied or given, in

whole or in part, to any, other person. It is aimed at sophisticated, professional, eligible, institutional and/or qualified investors who have the knowledge and financial

sophistication to understand and bear the risks associated with the investments described herein. GAM has not independently verified information from other sources

and no assurance can be given as to whether such information is accurate, true or complete and GAM makes no warranty, expressed or implied, regarding such

information. The views expressed herein are those of the speakers at the time of the conference (3 October 2011) and may not reflect their views at any time thereafter.

The views of external speakers may differ from those of GAM.

Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be solely relied on in making an investment or other decision. It is not an invitation

to subscribe and is by way of information only. Subscriptions will only be received and shares or units (‘Shares’) issued on the basis of the current prospectus for the

relevant fund. Copies of funds’ prospectuses and financial statements can be obtained free of charge from GAM Fund Management Ltd, George's Court, 54-62

Townsend Street, Dublin 2. Shares in the funds are not available for sale in any state or jurisdiction in which such sale would be prohibited.

Some of the funds mentioned herein are not subject to approval or regulation by the Central Bank of Ireland and are not subject to the benefit of any compensation

arrangements. Moreover, these funds are not regulated under the Financial Services and Markets Act 2000 and consequently no protection is provided by the UK

regulatory system and benefits available under the UK Financial Services Compensation Scheme do not apply.

GAM Star Fund plc is authorised as a UCITS pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations,

2003 (S.I. No.211 of 2003) and is a recognised scheme under the Financial Services and Markets Act 2000. The fund is managed by GAM Fund Management Limited

which is regulated by the Central Bank of Ireland.

In the United Kingdom, this material has been issued and approved by GAM London Ltd, 12 St. James' Place, London SW1A 1NX, authorised and regulated by the

Financial Services Authority.