global opportunities: positioning for success

GLOBAL OPPORTUNITIES:Positioning for Success

Presented by:Rob Lutts, President & CIO

Les Satlow, CFA, Portfolio ManagerDennis Wassung, CFA, Assoc. Portfolio Manager

CHINA & INDIA OPPORTUNITIES ABOUND

Presented by: Robert T. Lutts, President & Chief Investment Officer

THE CHINA OPPORTUNITY:Shanghai, China

1990 2010

Cabot Money Management, Inc. | 216 Essex Street | Salem, MA 01970 | 978.745.9233 | www.eCabot.com

By 2020, Asia is expected to have more than 1.2 billion population with a GDP per capita greater than $5,000 USD. This is five times the size of the US middle class!

CHINA:TOP SECTORS FOR GROWTH

Financial Services

Property Development and Management

Internet Applications

Education

Infrastructure Growth

Consumer Spending, Travel, Advertising

IN SUMMARY Both China and India offer excellent opportunities for

value creation in the next decade.

China – is growing faster and has better finances (less debt).

China will open up its financial markets in the next 5-10 years – RMB (Yuan) convertibility and access to stock markets in shanghai will be coming.

India is gaining momentum – India could grow faster.

Expect high volatility in these markets.

EMERGING MARKETS FINANCIAL SERVICES

Presented by: Les Satlow, CFA, Portfolio Manager

LONG RUNWAY: UNDER-BANKED

LONG RUNWAY: MORTGAGES-TO-GDP (%, 2008)

LONG RUNWAY: LOW CARD USAGEEXAMPLE-BRAZIL 2008

1-YEAR LOAN GROWTH AS OF JUNE 30, 2010:

US BANKS ARE SHRINKING THEIR BOOKS

China India Europe US-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35% 34%

23%

3%

-11%

HOW TIMES HAVE CHANGED:BREAKDOWN OF THE TOP 20 GLOBAL

FINANCIALSBy Country (# Of Banks), In $Mln

Did you know…? 5 out of the world’s Top

20 financials are Chinese

Top 2 banks are Chinese

Largest IPO ever was by Agricultural Bank of China in July 2010

Itau Unibanco (who??) is larger than Goldman Sachs and the Royal Bank of Scotland

CHINA (5) 762632.85 31%

US (6) 842920.929999

999 34%

UK (3) 347321.22 14%

OTHER (6) 503000.52 20%

WEATHERING THE STORM:What Storm?

Did you know…?

• EM Financials gained 74% since the beginning of 2006.

• The average US bank over that time period lost 37% of its value.

EMERG-ING MKTS

EUROPE US-60%

-40%

-20%

0%

20%

40%

60%

80%+74%

-45%-54%

CHINA HEALTHCARE

Presented by: Dennis Wassung, Jr., CFA, Associate Portfolio Manager

CHINESE HEALTHCARE THEME

Still A Long Way To Go

China spends only $92 per capita on health care, compared to over $6,700 spent per capita in the U.S.

Chinese healthcare spending has a long way to go to catch up with its peers.

PER CAPITA SPENDING ON HEALTHCARE (US$)

CHINA HEALTHCARE GROWTH 2010: RMB 1.7 Trillion – US$253 Billion

GROWING ACCESS TO DRUGS & MEDICINESESTIMATED US$75B MARKET IN 2010

MEDICAL DEVICES INDUSTRYESTIMATED US$55B MARKET IN 2010

INVESTMENT AREAS:China Healthcare

Medical Devices & Consumables

Drugs, Pharmaceuticals, Medicines

Advanced Treatment Services

Facilities & Hospitals

QUESTIONS