THIRD AVENUE INTERNATIONAL VALUE FUND       THIRD AVENUE MANAGEMENT LLC       622 THIRD AVENUE       NEW YORK, NY 10017   ...
A STRONG FOUNDATION FOR WEALTH CREATION AND PRESERVATION  Our History             Founded in 1986 by Martin Whitman as the...
THIRD AVENUE MANAGEMENT & VALUE INVESTING    The common view is that there is an elementary trade-off: you have to    take...
DEDICATED INTERNATIONAL TEAM                Amit Wadhwaney                               Matthew Fine                     ...
WHY THIRD AVENUE INTERNATIONAL VALUE?   A Differentiated Approach to Global Investing        Opportunistic approach yields...
THIRD AVENUE’S APPROACH TO GLOBAL INVESTING        5 Key Points             Strictly “bottom-up” approach             Buy ...
INDEPENDENT POLISH TELECOM OPERATOR   NETIA (NET PW)   Corporate Description         Netia is a leading independent fixed-...
DISCOUNTED CANADIAN GLOBAL AGRIBUSINESS PLAYER       VITERRA (TSX: VT)          Corporate Description               Viterr...
THIRD AVENUE INTERNATIONAL VALUE FUND (UCITS)         PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2012       TOP 10 HOLDINGS...
THIRD AVENUE INTERNATIONAL VALUE FUND (UCITS)   PORTFOLIO HOLDINGS AS OF APRIL 30, 2012                          NAME     ...
THIRD AVENUE INTERNATIONAL VALUE FUND     PERFORMANCE AS OF MAY 31, 2012    THIRD AVENUE INTERNATIONAL VALUE FUND (40ACT) ...
THIRD AVENUE INTERNATIONAL VALUE FUND: UP/DOWN CAPTURE   VS MSCI AC WORLD EX US INDEX   Inception through March 31, 2012  ...
THIRD AVENUE INTERNATIONAL VALUE FUND: UP/DOWN CAPTURE   VS MSCI AC WORLD INDEX   Inception through March 31, 2012        ...
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Third avenue

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Third avenue

  1. 1. THIRD AVENUE INTERNATIONAL VALUE FUND THIRD AVENUE MANAGEMENT LLC 622 THIRD AVENUE NEW YORK, NY 10017 212.888.5222 WWW.THIRDAVE.COMFor Investment Professionals Only – Not for Public Distribution
  2. 2. A STRONG FOUNDATION FOR WEALTH CREATION AND PRESERVATION Our History Founded in 1986 by Martin Whitman as the culmination of a multi-decade career in value and distress investing Overarching value philosophy derived from a creditor’s point of view and driven by a belief in the primacy of the balance sheet Evolved into a global asset management firm offering five value-oriented strategies: Global Small-Cap Real Estate International Credit/Distressed Stable, Long-Tenured Team Collaborative culture of independent thinkers – 27 investment professionals Consistent, long-standing portfolio management teams Aligned Interests Senior management and investment professionals have material ownership stakes in the firm Investment professionals have significant portions of their liquid personal wealth in Third Avenue Funds invested alongside our clients Sound Enterprise $12 billion* in assets under management Partnered with $327 billion* global asset manager Affiliated Managers Group (NYSE: AMG) since 2002 *AUM as of March 31, 2012THIRD AVENUE MANAGEMENT 2
  3. 3. THIRD AVENUE MANAGEMENT & VALUE INVESTING The common view is that there is an elementary trade-off: you have to take risks to obtain rewards. In Third Avenue Management’s view, there is no such trade-off, but rather, the cheaper you buy, the greater the potential investment reward and the cheaper you buy, the less the inherent risk.THIRD AVENUE MANAGEMENT 3
  4. 4. DEDICATED INTERNATIONAL TEAM Amit Wadhwaney Matthew Fine Jakub Rehor Portfolio Manager Portfolio Manager Sr. Research Analyst 29 Years Experience 12 Years Experience 17 Years Experience 17 With Firm 12 With Firm 8 With Firm John Mauro Michael Campagna Research Analyst Research Analyst 9 Years Experience 7 Years Experience 9 With Firm 5 With FirmTHIRD AVENUE MANAGEMENT 4
  5. 5. WHY THIRD AVENUE INTERNATIONAL VALUE? A Differentiated Approach to Global Investing Opportunistic approach yields unconstrained portfolios that offer a unique mix of securities across the globe Not benchmark focused; high active share* Willingness to hold cash in the absence of attractive opportunities Prudently Concentrated Extremely thorough research leads to high conviction portfolios Portfolio typically consists of fewer than 40 securities Global Expertise Third Avenue manages approximately $6 billion** in non-U.S. investments across multiple portfolios Investing globally since 1996 Augmented Research Capabilities The Third Avenue International team benefits from the ability to collaborate with Third Avenue’s Value, Real Estate and Credit research teams to help source and evaluate investment ideas Transparent Client Communications Informative quarterly portfolio commentaries Regularly scheduled conference calls for investment professionals *The term “active share” refers to the proportion of a portfolio’s stock holdings that is different from the composition of the portfolio’s benchmark. ** As of March 31, 2012.THIRD AVENUE MANAGEMENT 5
  6. 6. THIRD AVENUE’S APPROACH TO GLOBAL INVESTING 5 Key Points Strictly “bottom-up” approach Buy businesses at a significant discount to net asset value Risk averse Balance sheet focused Long-term investors Key Qualitative Criteria Understandable business model with a high-quality balance sheet Lies in a defensible position in the value chain – assets difficult to replicate High quality management aligned with shareholder interests Limited risks from currency exposure, political or regulatory issues Appropriate Valuations Analysis based on what is currently known. We do not pay up for “optionality” of potential cash flows Meaningfully discounted on an “as-is” basis compared to the price a private cash acquirer would pay in an arms- length, non-distressed, non-hyped transaction 6 ONTARIO TEACHERS’ PENSION PLANTHIRD AVENUE MANAGEMENT 6 6
  7. 7. INDEPENDENT POLISH TELECOM OPERATOR NETIA (NET PW) Corporate Description Netia is a leading independent fixed-line telecommunications operator in Poland. It has a nationwide fiber optic network, limited competition from cable TV, last mile access in cities and excellent opportunities for growth. Balance Sheet Strength Even after acquiring two large competitors for cash in December 2011, the company’s net debt is only 0.8x EBITDA^. Attractive Valuation Trading at about 4x EBITDA*, and at a meaningful discount to our conservative estimate of net asset value Strong Growth Potential Catalysts for growth and/or stock price appreciation include: Netia’s network Broadband penetration in Poland (which is among the lowest in EU) Favorable regulatory environment for independent telecom companies Continued expansion of EBITDA margins Margins had fallen from 35% to 15% on subscriber acquisition investment and other growth initiatives, but have since rebounded to about 27% currently*. Recently two acquisitions have confirmed Netia’s position as the prime consolidator of the Polish telecom market. Further expansion via M&A remains an option. ^2012 adjusted EBITDA guidance. *Pro forma, before integration costs and synergies from recent acquisitions. Source: TAM research, company website. TAM believes that Netia provides an illustrative example of its investment approach. This information should not be considered a recommendation to purchase or sell any particular security.THIRD AVENUE MANAGEMENT 7
  8. 8. DISCOUNTED CANADIAN GLOBAL AGRIBUSINESS PLAYER VITERRA (TSX: VT) Corporate Description Viterra, formerly Saskatchewan Wheat Pool, is a global agribusiness operator whose main assets are grain-handling infrastructure in Canada and Australia, moving grains from farm to ship. The company is also a retailer of crop inputs, grain trader, and food processor (malting barley and oats). The company originated as a Saskatchewan cooperative, with an inequitable voting structure and relative lack of access to equity markets. Third Avenue Investment Third Avenue Management (“TAM”) purchased shares at a meaningful discount to NAV and at a modest multiple of operating earnings, starting in late 2005. TAM provided financing for the hostile takeover of Viterra’s biggest Canadian competitor in 2006. TAM supported Viterra’s tender offer for its acquisition of ABB Grain in Australia in 2009. Investment Conclusion On March 20, 2012, global commodities supplier Glencore announced a takeover bid for Viterra, valuing the company at C $6.1 billion, a 48% premium to its market value prior to Viterra’s disclosure that it received expressions of interest. The deal is expected to close in Summer 2012. Source: TAM research, company website. TAM believes that Viterra provides an illustrative example of its investment approach. This information should not be considered a recommendation to purchase or sell any particular security.THIRD AVENUE MANAGEMENT THIRD AVENUE MANAGEMENT 8
  9. 9. THIRD AVENUE INTERNATIONAL VALUE FUND (UCITS) PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2012 TOP 10 HOLDINGS* INDUSTRY WEIGHTINGS1 MARKET CAPITALIZATION3 WBL Corp. 7.1% Micro (<$500 Million) 4.3% Advertising 2.3% Netia SA 5.7% Agriculture Small ($500 Million to $2 Billion) 26.1% 1.4% Automotive 2.2% Mid ($2 Billion to $7 Billion) 35.1% Taylor Wimpey 4.2% Building & Construction Products/Services 2.5% Capital Goods 2.2% Large (>$7 Billion) 34.5% Weyerhaeuser Co. 4.1% Corporate Services 0.7% ASSET CLASSES White Mountains Insurance Group 3.7% Diversified Operations 4.4% Electronics Components 7.1% Equity 90.8% Daiwa Securities 3.4% Forest Products & Paper 5.3% 12.1% Holding Companies Debt 0.0% Sanofi-Aventis 3.4% Insurance & Reinsurance 9.2% Cash, Equivalents & Other5 9.2% Leucadia National Corp. 3.3% Investment Companies 2.3% IT Services 0.5% CHARACTERISTICS Allianz 2.8% Media and Entertainment 0.2% Metals & Mining 2.9% Total Strategy Assets4 $2.12 Billion Munich Re 2.8% Oil & Gas 5.2% Other Financial Weighted Market Cap2 $15.38 Billion + Holdings subject to change without notice. 2.3% Pharmaceuticals 5.4% 11.8% Median Market Cap2 $3.28 Billion Real Estate TOP 10 COUNTRIES Securities Brokerage 3.4% TAVIXU P/B2 0.89x Telecommunications 5.7% MSCI AC World ex US Index P/B2 1.18x United States 12.6% Canada 6.0% Transportation 1.5% United 0% 2% 4% 6% 8% 10% 12% Active share vs MSCI AC World 98.4% Kingdom 11.0% Poland 5.7% Index as of 5/31/12 Active share vs MSCI AC World ex Japan 10.4% France 5.5% 97.3% US Index as of 5/31/12 Singapore 7.9% Hong Kong 4.8% SHARE CLASSES6 ISIN MANAGEMENT FEE NAV/SHARE Germany 7.7% Austria 2.6% $26.93 Class A1 USD IE00B57HGV17 1.60% Class A2 GBP IE00B57HGW24 1.60% NA1 Industry classifications provided by Third Avenue for equity holdings only. Class A3 EUR IE00B57HGX31 1.60% €25.442 Source: Thomson Portfolio Analytics; based on equity holdings only3 Informa IS definitions; based on equity holdings only4 Includes assets from all Third Avenue offerings under the International Class A4 USD Institutional IE00B6WFK593 1.10% $22.65 strategy, as of 31 March 2012.5 “Other” may consist of option investments. Class A5 EUR (Hedged) Institutional IE00B6WFK601 1.10% NA6 All classes are accumulation shares. THIRD AVENUE MANAGEMENT 9
  10. 10. THIRD AVENUE INTERNATIONAL VALUE FUND (UCITS) PORTFOLIO HOLDINGS AS OF APRIL 30, 2012 NAME WEIGHT COUNTRY INDUSTRY WBL CORP LTD 7.14% SINGAPORE ELECTRONICS COMPONENTS NETIA SA 5.72% POLAND TELECOMMUNICATIONS TAYLOR WIMPEY PLC 4.15% UNITED KINGDOM REAL ESTATE WEYERHAEUSER CO 4.10% UNITED STATES FOREST PRODUCTS & PAPER WHITE MOUNTAINS INSURANCE GROUP, LTD 3.66% UNITED STATES INSURANCE & REINSURANCE DAIWA SECURITIES 3.45% JAPAN SECURITIES BROKERAGE SANOFI-AVENTIS SA 3.36% FRANCE PHARMACEUTICALS LEUCADIA NATIONAL CORP 3.34% UNITED STATES HOLDING COMPANIES ALLIANZ SE 2.80% GERMANY INSURANCE & REINSURANCE MUENCHENER RUECKVERSICHERUNGS AG 2.76% GERMANY INSURANCE & REINSURANCE MITSUI FUDOSAN CO LTD 2.61% JAPAN REAL ESTATE HUTCHISON WHAMPOA LTD 2.59% HONG KONG DIVERSIFIED OPERATIONS ATRIUM EUROPEAN REAL ESTATE LTD 2.57% AUSTRIA REAL ESTATE LG CORP 2.56% SOUTH KOREA HOLDING COMPANIES PARGESA HOLDING SA 2.50% SWITZERLAND HOLDING COMPANIES SEGRO PLC 2.48% UNITED KINGDOM REAL ESTATE 4/30/12 Portfolio Cash Level = 9.21% ASATSU-DK INC 2.33% JAPAN ADVERTISING YUANTA FINANCIAL HOLDING CO LTD 2.33% TAIWAN OTHER FINANCIAL RESOLUTION LTD 2.30% UNITED KINGDOM INVESTMENT COMPANIES GUOCO GROUP LTD 2.20% HONG KONG HOLDING COMPANIES DAIMLER AG 2.16% GERMANY AUTOMOTIVE NEXANS SA 2.15% FRANCE CAPITAL GOODS GLAXOSMITHKLINE PLC 2.09% UNITED KINGDOM PHARMACEUTICALS TITAN CEMENT CO 2.04% GREECE BUILDING & CONSTRUCTION PRODUCTS/SERVICES PETROLEUM GEO-SERVICES 2.03% NORWAY OIL & GAS ANTARCHILE SA 1.78% CHILE DIVERSIFIED OPERATIONS ENCANA CORP 1.71% CANADA OIL & GAS NEWMONT MINING CORP 1.54% UNITED STATES METALS & MINING PRECISION DRILLING TRUST 1.48% CANADA OIL & GAS SEINO HOLDINGS CORP 1.48% JAPAN TRANSPORTATION GP INVESTMENTS 1.47% BRAZIL HOLDING COMPANIES VITERRA INC 1.43% CANADA AGRICULTURE RUBICON LTD 1.25% NEW ZEALAND FOREST PRODUCTS & PAPER KINROSS GOLD CORP 1.23% CANADA METALS & MINING BOARDROOM, LTD 0.74% SINGAPORE CORPORATE SERVICES OTSUKA CORP 0.52% JAPAN IT SERVICES TENON LTD 0.49% NEW ZEALAND BUILDING & CONSTRUCTION PRODUCTS/SERVICES ALMA MEDIA OYJ 0.15% FINLAND MEDIA AND ENTERTAINMENT DUNDEE PRECIOUS METALS INC 0.12% CANADA METALS & MININGTHIRD AVENUE MANAGEMENT 10
  11. 11. THIRD AVENUE INTERNATIONAL VALUE FUND PERFORMANCE AS OF MAY 31, 2012 THIRD AVENUE INTERNATIONAL VALUE FUND (40ACT) NET PERFORMANCE AS OF MAY 31, 2012 Annualized 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Inception* International Value Fund (40Act) -9.90% -13.03% -0.42% -20.88% 3.28% -5.31% 7.48% 7.77% MSCI AC World ex US Index -11.25% -13.73% -2.66% -20.11% 5.01% -5.12% 6.11% 6.20% MSCI AC World Index -8.88% -9.22% 0.97% -11.81% 9.38% -3.17% 5.09% 4.66% MSCI World Value Index -8.53% -9.15% -0.92% -12.65% 7.86% -5.53% 4.39% 4.18% 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 International Value Fund (40 Act) -15.28% 11.11% 35.43% -37.28% 3.36% 17.13% 18.00% 27.71% 54.68% -2.87% MSCI AC World ex US Index -13.33% 11.60% 42.14% -45.24% 17.12% 27.16% 17.11% 21.36% 41.41% -14.67% MSCI AC World Index -6.86% 13.21% 35.41% -41.85% 12.18% 21.53% 11.37% 15.75% 34.63% -18.98% MSCI World Value Index -4.92% 9.77% 27.70% -39.85% 4.09% 25.94% 10.30% 19.26% 39.00% -19.55% THIRD AVENUE INTERNATIONAL VALUE FUND (UCITS) NET PERFORMANCE AS OF MAY 31, 2012 Annualized 1 Month 3 Month YTD 1 Year 2 Year Inception^ International Value Fund (UCITS) -10.39% -13.32% -0.45% -21.31% -0.74% 6.11% MSCI AC World ex US Index -11.25% -13.73% -2.66% -20.11% 2.10% 13.58% MSCI AC World Index -8.88% -9.22% 0.97% -11.81% 6.57% 16.26% MSCI World Value Index -8.53% -9.15% -0.92% -12.65% 5.16% 15.23% *Inception for Third Avenue International Value Fund (40Act) is December 31, 2001. ^Inception for Third Avenue International Value Fund (UCITS) is March 31, 2009. The MSCI AC World ex US Index is an unmanaged index of common stocks and includes securities representative of the market structure of over 50 developed and emerging market countries (other than the United States) in North America, Europe, Latin America and the Asian Pacific Region. The MSCI AC World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI World Value Index covers the full range of MSCI Developed, Emerging and All Country Indices across large, mid and small cap size segmentations. The index is constructed using an approach that provides a precise definition of style using historical and forward-looking fundamental data for each security in order to properly capture the appropriate value (as opposed to growth) securities. Past performance is no guarantee of future results; returns include reinvestment of all distributions. Third Avenue Funds are offered by prospectus only. The prospectus contains important information, including investment objectives, risks, advisory fees and expenses. Please read the prospectus carefully before investing in the Funds. Past performance is no guarantee of future results. Investment return and principal value fluctuate so that an investors shares, when redeemed, may be worth more or less than the original cost. For updated information or a copy of the Fund’s prospectus, please call 1-800-443-1021 or go to our web site at www.thirdave.com THIRD AVENUE MANAGEMENT 11THIRD AVENUE MANAGEMENT 11
  12. 12. THIRD AVENUE INTERNATIONAL VALUE FUND: UP/DOWN CAPTURE VS MSCI AC WORLD EX US INDEX Inception through March 31, 2012 140 120 100 Third Avenue International Value Upside% 80 60 MSCI AC WORLD INDEX ex USA 40 20 0 0 20 40 60 80 100 120 140 Downside% Av erage Return (%) # of Quarters 1-Year (%) Market Benchmark (%) v s. Market Up Down Up Down Up Down Best Worst R-Squared Market Market Capture Capture Third Avenue International Value 28 13 7.29 -7.00 65.98 -43.50 87.0 75.1 87.75 MSCI AC WORLD INDEX ex USA 28 13 8.22 -9.79 61.67 -46.18 100.0 100.0 100.00 Inception for Fund is December 31, 2001. Source: Zephyr StyleADVISOR. Manager returns supplied by: Morningstar, Inc. Past performance is no indication of future results.THIRD AVENUE MANAGEMENT 12
  13. 13. THIRD AVENUE INTERNATIONAL VALUE FUND: UP/DOWN CAPTURE VS MSCI AC WORLD INDEX Inception through March 31, 2012 140 120 100 Third Avenue International Value Upside% 80 60 MSCI ACWI 40 20 0 0 20 40 60 80 100 120 140 Downside% Average Return (%) # of Quarters 1-Year (%) Market Benchmark (%) vs. Market Up Down Up Down Up Down Best Worst R-Squared Market Market Capture Capture Third Avenue International Value 28 13 7.16 -5.74 65.98 -43.50 92.7 69.7 83.14 MSCI ACWI 27 14 7.57 -8.93 56.31 -42.74 100.0 100.0 100.00 Inception for Fund is December 31, 2001. Source: Zephyr StyleADVISOR. Manager returns supplied by: Morningstar, Inc. Past performance is no indication of future results.THIRD AVENUE MANAGEMENT 13

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