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The Riyad Capital Natural Resources Fund

The Riyad Capital Natural Resources Fund. Cormac Sheedy – Director of Sales, Fidelity, Middle East Brian Boyd - Business Development Director, Fidelity MultiManager March 2008. 1. Natural Resources: Why invest now?. 2. Natural Resources: How to invest?. 3.

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The Riyad Capital Natural Resources Fund

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  1. The Riyad Capital Natural Resources Fund Cormac Sheedy – Director of Sales, Fidelity, Middle East Brian Boyd - Business Development Director, Fidelity MultiManager March 2008

  2. 1 Natural Resources: Why invest now? 2 Natural Resources: How to invest? 3 The Riyad Capital Natural Resources Fund 4 The Riyad Capital Product Offering Contents

  3. Natural Resources Why invest now?

  4. Natural Resources: why invest now?Economic growth of emerging countries 100,000 Norway Sweden Denmark Japan Ireland USA Canada Australia France Belgium UK Spain Italy Germany 10,000 Portugal Per Capita GDP (2003 US$) 1,000 China India 100 -100 -50 0 50 100 150 200 250 300 350 Years of Economic Development Natural Resources should remain a strong sector, driven by demand from India & China, which are at the beginning of their economic growth cycle Source: A. Gary Shilling & Co. Bubbles depict population (2003); Fidelity. This slide is provided for illustrative purposes only and may not be representative of the current position.

  5. Natural Resources: why invest now?Urbanization • Natural Resource requirements change as populations migrate to cities for higher wages • No longer self sufficient, these migrants must compete in the world markets for natural resources • Consumers in these regions are creating demands on agriculture commodities and soft commodities RURAL LIFESTYLE URBAN LIFESTYLE Wages in China have nearly doubled over the past four years, outpacing the rate of growth of the economy* Source: *Forbes, 7th February 2007.

  6. Natural Resources: why invest now?Infrastructure demands Emerging market demand is driving investment in large scale infrastructure projects including spending on roads… …construction… …railways… …transportation… …pipelines… …and electricity $21,700,000,000,000 of investment is estimated to go into emerging market infrastructure* Source: Morgan Stanley Research Report - research estimates 2008-2017.*

  7. Natural Resources How to invest?

  8. 600 GLOBAL EQUITIES 500 COMMODITIES NATURAL RESOURCE COMPANIES 400 300 200 100 0 2000 2002 2004 2006 2008 Investing in Natural Resources:Past investment performance Global Equity vs. Commodities and Natural Resources Companies US$ Commodities and Natural Resources Companies have outperformed Global Equities Source: Datastream as at 31.01.08, MSCI WORLD U$ - PRICE INDEX; DJ AIG-Spot Commodity Index – PRICE Index; 1/3 MSCI WORLD ENERGY + 2/3 HSBC GLOBAL MINING.

  9. Natural resource companies are involved in the exploration and procurement and refinement of raw materials. How to invest in Natural Resources:Natural Resources Companies • These companies have benefited from an increase in global demand of raw materials. • Good investment opportunities continue to exist for these companies as commodity prices remain high. Was buying oil or investing in oil refinery equipment makers most profitable over the last 3 years?

  10. 110 100 Oil Oil refinery equipment makers 90 80 USD / Bbl 70 60 50 40 30 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 How to invest in Natural Resources:Which performed better? …oil refinery equipment makers! Source: Datastream from 31.12.04 –31.12.07; Msci Acwi Oil,Gas&C.Fuel$ - Tot Return Ind (rebased to oil price); Msci Acwi En Eq & Svs $ - Tot Return Ind (rebased to oil price); Crude Oil-Brent Dated Fob U$/Bbl.

  11. How to invest in Natural Resources:Physical commodities ENERGY METALS Industrial metals / Precious metals SOFT COMMODITIES AGRICULTURE

  12. An estimated 2 power stations are being built in China a week** China and India together account for 72 percent of the projected increase in world coal consumption from 2004 to 2030.+ Over the past year, we have paid an average of about 20% more for our steel… we've been able to pass most…price rises on to ourcustomers.^ China's leadership have planned construction of 300,000km of new rural roads between 2006 and 2010, an increase of nearly 50%.^^ Investing in physical commodities:Which should you own? China imported a total of 1.49 million tons of refined copper in 2007, soaring 80.6 percent from the previous year* Source: *Chinamining.org, 23.01.2008. **BBC, 19 June 2007. +EIA – International Energy Outlook 2007, May 2007. ^FT, 26 February 2008. ^^Economist, “New Socialist Countryside”, 14 February 2008.

  13. Corn Ethanol Investing in physical commodities:Future opportunities • The fund provides exposure to the long-term growth of alternative energy • Is food the new fuel? • Price of corn, wheat and soy are increasing. Biofuels take off^ Price of Corn vs. Ethanol 500 4 Corn Ethanol 3.5 400 300 3 Cents/Bushel $/GAL 2.5 200 Ethanol a long-term fuel, not a passing fad* 2 100 1.5 0 2000 2002 2004 2006 2008 Year Source: Corn No.2 Yellow Cents/Bushel [L H S] vs Ethanol,USG Contract Del. 200 $/GAL [R H S]. Datastream from 01.01.00 to 31.12.07. *FT, 04.02.2008. ^San Francisco Chronicle, 27 February 2008.

  14. Commodity • Ethanol • Increased global demand • Government subsidies • 100% increases in price in 2007 • Farmers unwilling to rotate crops due to corn prices • China • Biofuels • Prices highest in 34 years • Feed price increase and shortage • Countries stockpiling • Inventories at lowest level in 30 years • Export bands and tariffs • Prices are forecast to rise sharply • Increased global demand • Cost of feed (corn & grain) Investing in physical commodities:The increasing cost of the food chain Result Demand Drivers Supply Constraints

  15. The Riyad Capital Natural Resources Fund Fund highlights

  16. How to capture the best opportunities?The Natural Resources Fund • 50/50 blend • Combines natural resources companies with physical commodities • Actively managed – always looking for the next opportunity • Benefits • Reduce the volatility of a ‘pure’ commodities fund • Effective hedge against inflation • Effective hedge against a weakening US Dollar • Profit from new/green energy exploration

  17. Fund composition Energy Companies 17% Physical Commodities 50% Mining Companies 33% The Riyad Capital Natural Resources Fund:Fund composition – positioned for growth • Fund’s Benchmark • 50% Dow Jones Commodity Index • 50% Natural Resource Equities • 2/3 HSBC Global Mining, • 1/3 MSCI World Energy • Only 33% of the fund’s target allocation is energy (Oil and Gas) • The fund is actively managed so you are invested in commodities and stocks that have the best outlooks Source: Fidelity. Figures correct as at 31.12.07

  18. The Riyad Capital Natural Resources Fund:Physical commodities – focused on emerging demands Metals exposure 30% Energy companies 17% Physical Commodities 50% Silver Energy exposure 33% Natural Gas Gold Nickel Mining Companies 33% Zinc Crude Oil Copper Aluminium Gasoline Heating Oil Coffee Cotton Sugar Soft commodity exposure 9% Agriculture exposure 28% Livestock Soybean Oil Wheat Soybeans Corn Source: http://www.djindexes.com/mdsidx/index.cfm?event=showAigWeightings, Dow Jones - AIG Commodity IndexSM 2008 Commodity Index Percentages, 31.01.08.

  19. The Riyad Capital Natural Resources Fund:Searching for the best companies Energy companies 17% Physical Commodities 50% Mining Companies 33%

  20. The Riyad Capital Natural Resources Fund:Accessing experts around the world • Fidelity selects the specialist natural resource investment managers • You benefit from a variety of investment approaches from the different managers • 3 focused managers for natural resources companies; 3 focused managers for physical commodities • Access to leading commodity traders and investment managers from around the world The best managers…blended by experts

  21. 41.3% cumulative growth since inception The Riyad Capital Natural Resources Fund:Performance of the Fidelity Fund Fidelity’s Natural Resources Fund Performance since inception 50 40 30 % 20 10 0 -10 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Sector: Morningstar Commodity and Natural Resources. Index: FF MM Natural Resources Composite. Figures quoted are from Fidelity and Morningstar for the period ending 31.12.07 You should be aware the past performance is not a reliable indicator of future results. The value of a fund can go down as well as up so you may get back less than you invested. Performance is quoted in US Dollar terms on a NAV to NAV basis with gross income reinvested. you may get back more or less than this as a result of currency fluctuations.

  22. The Riyad CapitalProduct Offering

  23. The Riyad Capital Product Offering:The global options available to you Overseas (mature) US / Europe / Japan / UK / Global / Telecoms / Technology Overseas (emerging) Future Fund / South East Asia Local Saudi Equity / Gulf Fund / Riyad Money Fund Other asset classes Global Property / Natural Resources / International Bond International Fund Global exposure

  24. Compliance information This presentation is for Investment Professionals only and should not be relied upon by private investors. This presentation must not be reproduced or circulated without prior permission. This communication is not directed at, and must not be acted upon by persons inside the United Kingdom or the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required. Fidelity/Fidelity International means FIL Limited (FIL), established in Bermuda, and its subsidiary companies. Unless otherwise stated, all views are those of the Fidelity organisation. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. The research and analysis used in this documentation is gathered by Fidelity for its use as an investment manager and may have already been acted upon for its own purposes. Fidelity only offers information on its own products and services and does not provide investment advice based on individual circumstances. Fidelity, Fidelity International and the Pyramid Logo are trademarks of FIL Limited. No statements or representations made in this document are legally binding on Fidelity or the recipient. Any proposal is subject to contract terms being agreed. Past performance is not a reliable indicator of future results. The value of investments and the income from them can go down as well as up and investors may not get back the amount invested. For funds that invest in overseas markets, changes in currency exchange rates may affect the value of an investment. Foreign exchange transactions may be effected on an arms length basis by or through Fidelity companies from which a benefit may be derived by such companies. Investments in small and emerging markets can be more volatile than other more developed markets. Due to the lack of liquidity in many smaller stock markets, certain Country Select Funds may be volatile and redemption rights may be restricted in extreme circumstances. In certain countries, and for certain types of investments, transaction costs are higher and liquidity is lower than elsewhere. There may also be limited opportunities to find alternative ways of managing cash flows especially where the focus of investment is on small and medium sized firms. For funds specializing in such countries and investment types, transactions, particularly those large in size, are likely to have a greater impact on the costs of running a fund than similar transactions in larger funds. Prospective investors should bear this in mind in selecting funds. Fidelity MultiManager SICAV is an open-ended investment company established in Luxembourg with different classes of shares. We recommend that you obtain detailed information before taking any investment decision. Investments should be made on the basis of the current prospectus, which is available along with the current annual and semi-annual reports free of charge from our distributors. Issued by Fidelity Investments International (registered in England and Wales), authorised and regulated in the UK by the Financial Services Authority. CO16892 05

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