FUND IN FOCUSOLD MUTUAL THREADNEEDLE HIGH YIELD BOND FUND

MULTI-ASSET ALTERNATIVESFIXED INCOMEEQUITIES

For investment professionals only. Not for distribution to retail clients.

WEALTHSELECT RANGEPART OF THE

REASONS TO RECOMMEND

ACCESS TO HIGH YIELD PERFORMANCE POTENTIAL The fund manager exploits the investment potential of non-investment grade, fixed-interest securities denominated or hedged into the British Pound. The aim of the Fund is to deliver returns throughout the credit cycle from coupon income. Another aim is to identify bonds that have the potential to increase in price

BENEFIT FROM IDENTIFYING UNDERVALUED COMPANIES The managers are bottom-up stock pickers so our analysis thoroughly examines company accounts, balance sheets and profit and loss statements with the aim of identifying undervalued companies and, most important, avoiding those that may default.

A STRONG FOCUS ON CORPORATE VIABILITY As it is generally less financially secure companies that issue high yield bonds, there is a greater risk of default. Therefore an intense focus on the downside risk facing a company is a prerequisite of success in this asset class.

A LARGE TEAM GROUPED TOGETHER TO FACILITATE GENERATING INVESTMENT IDEAS As one of the UK’s largest asset managers, Threadneedle have circa 150 investment professionals who focus on all aspects of equities, fixed income and alternatives, all working on the same investment floor in their London offices. It is this approach to investment that enables all of the fund managers to effectively share and pool investment ideas and research.

BARRIE WHITMAN DAVID BACKHOUSECO-FUND MANAGERS

WHAT YOUR CLIENTS CAN EXPECT The aim of the Fund is to achieve a higher level of monthly income. The Fund will be invested principally in higher-risk UK and international fixed interest securities. It may also be invested in equities. The Fund may be suitable for investors with a medium to long-term investment horizon seeking a high level of income that are prepared to tolerate moderate to large price fluctuations.

FUND OBJECTIVE The aim of the fund is to provide income. At least two-thirds of the fund’s assets are invested in high income paying bonds (which are similar to a loan and pay a fixed or variable interest rate) issued by companies worldwide. High income paying bonds are bonds that have received lower ratings from international agencies that provide such ratings. These bonds are considered riskier than higher-rated bonds, but typically pay a higher income.

REFERENCE INDEX: Merrill Lynch European High Yield (3%) Constrained Index ex Subordinated Financials (Hedged to £)IMA SECTOR: UK IMA – Sterling High Yield SUB-ADVISER: Threadneedle Investments

“High yield remains attractive given the continuing search for income and historically low interest rates in the developed world, and its characteristics mean that it is relatively insulated from concerns related to the recent rise in government bond yields.”

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BARRIE WHITMANHEAD OF HIGH YIELD

Source: Threadneedle as at 05/08/2013.

HIGH YIELD TEAM

DAVID DUDDINGPORTFOLIO MANAGER

CONSUMER, RETAIL

MICHAEL POOLEPORTFOLIO MANAGER

FINANCIALS, OIL & GAS

GARETH SIMMONSSENIOR INVESTMENT ANALYST

TELECOMS, MEDIA, TECHNOLOGY, FIXED INCOME ASSET ALLOCTION

DAVID BACKHOUSEPORTFOLIO MANAGER

CONSUMER, RETAIL

JENNY WONGSENIOR INVESTMENT ANALYST

CHEMICALS, PACKAGING, QUANT/PORTFOLIO ANALYSIS

Investment professionals onlyOld Mutual Threadneedle High Yield Bond Fund

INVESTMENT TEAMBarrie Whitman joined Threadneedle in 1999 as Head of High Yield. He manages the Threadneedle High Yield Bond, European High Yield Bond and Strategic Bond funds, as well as a number of institutional mandates. He is also lead manager of the Threadneedle Credit Opportunities Fund. Barrie began his investment career in 1987 at United Bank of Kuwait as a credit analyst specialising in high yield bond investment. In 1990 he became a high yield fund manager and, in 1996, CIO for High Yield Investments. He then moved to Standard Bank London in 1997 as Head of European High Yield and Distressed Debt.Barrie graduated in 1982 with a BSc in Economics and Accounting from Hull University and qualified as a Chartered Accountant in 1986. He is a member of the Institute of Chartered Accountants in England and Wales.

David Backhouse joined Threadneedle’s Fixed Income team in 2003 as an investment analyst, specialising in non-investment grade credits. Prior to Threadneedle, David worked for Gartmore as a credit analyst. He has also worked for UBK Asset Management as a senior telecommunications analyst and Ernst & Young as an auditor. He holds a BEng (Hons) degree in electrical and electronic engineering from UMIST and is a qualified chartered accountant. David is a member the Institute of Chartered Accountants in England and Wales.

PHILOSOPHYThe team at Threadneedle Investments believe that there is a better way to manage money. By bringing together a diverse and disciplined group of investment professionals in one location, they have created an environment for the very best investment ideas. They have also found that by rewarding contribution and encouraging a culture that challenges conventional thinking, they can quickly convert these ideas into powerful investment strategies. This means that clients can be sure that the manager is constantly looking to out-think peers. The fund manager believes that superior returns for clients can be delivered through the following:

• An active approach that takes advantage of market inefficiencies,

• An advantage of perspective resulting from a combination of macro and micro insights,

• The appropriate allocation of risk.

• Specialist high yield team; average 9 years’ leveraged finance experience

−strategy managed by Barrie Whitman since 1999

−portfolio management team together for 8 years

• Breadth and depth of sector knowledge

Investment professionals onlyOld Mutual Threadneedle High Yield Bond Fund

PROCESS

Fundamental company specific research is the backbone of the fund manager’s approach. However, the investment process differs from competitors in a number of ways:

Scale

• The High Yield Bond team can draw upon a wealth of investment resources in a broad range of areas.

Asset allocation

• The managers consider whether the Fund should adopt an aggressive or defensive posture,

• Asset allocation at the rating or sector level,

• Overweight or underweight in lower rated instruments,

• Exposure to cyclical sectors.

Sector allocation

• Importance of sector analysis, particularly in volatile markets when investors tend to avoid sectors deemed to be risky, regardless of the quality of the companies in those sectors.

Limiting risk is an integral part of the investment process. It reflects Threadneedle’s tradition as a manager of pension funds. Over the years, Threadneedle have developed a strong risk measurement and risk monitoring culture. Indeed, Threadneedle’s investment professionals are taught to be aware of risk from the day they join the company.

The risk team is also completely independent of the high yield team, as well as the other investment professionals at Threadneedle. Experts in the respective asset classes make up the risk team who conduct stress tests and constantly monitor the high yield portfolio for any

changes in its risk profile. The team flag any concerns directly to the fund manager. This ‘fresh pair of eyes’ can certainly alert the fund managers to pockets of risk that they might not have been aware of previously. The independence, experience and qualifications of this risk team is what Threadneedle consider set them apart from other investment managers – a particularly significant factor in the high yield sector.

PORTFOLIO CONSTRUCTIONThe managers’ consider seven sources of return in their approach to fixed income markets.

Investment ideas are generated from in depth analysis in each of these areas. The managers construct the portfolio to allocate risk wherever they see the best sources of performance.

Investment professionals onlyOld Mutual Threadneedle High Yield Bond Fund

OLD MUTUAL GLOBAL INVESTORS (UK) LTD

2 Lambeth Hill, London, EC4P 4WR, UK

ONLINEDownload fund data and read investment

updates from this fund manager atwww.omglobalinvestors.com

TELEPHONEContact your regional sales manager or

speak to our dedicated client services team on +44 (0)20 7332 7524

This communication provides information relating to a fund known as Old Mutual Threadneedle High Yield Bond Fund (the “Fund”). The information contained in this communication has been prepared by Threadneedle Investments for presentation by Old Mutual Global Investors. This communication is issued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), a member of the Old Mutual Group. Old Mutual Global Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old Mutual Global Investors is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with FCA register number 171847 and is owned by Old Mutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591 559. The Fund is also regulated by the FCA and therefore Old Mutual Global Investors may promote the Fund to the public. This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Fund. Nothing in this document constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the prospectus and the key investor information document of the Fund which can be obtained from www.omglobalinvestors.com. Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and there is no guarantee that the Fund will achieve its objective. The issuer of a bond or a similar investment within the Fund may not pay income or repay capital to the Fund when due. Bonds which are rated below investment grade are considered to have a higher degree of risk with respect to meeting their payment obligations. Investments in bonds are affected by interest rates and inflation trends which may affect the value of the Fund. Some investments may become hard to value or sell at a desired time and price. In extreme circumstances, this may affect the Fund’s ability to meet redemption requests upon demand. The Fund is denominated in British Pounds but holds assets denominated in other currencies. The value of shares may rise and fall as a result of exchange-rate movements between these currencies. The Fund may use derivatives to generate returns as well as to reduce costs and the overall risk of the Fund (i.e., Efficient Portfolio Management [EPM]). Using derivatives can involve a higher level of risk. However, for EPM they should not increase the overall riskiness of the Fund. Derivatives also involve counterparty risk where the institutions acting as a counterparty to derivatives may not meet its contractual obligations. The Fund takes its charges from the income of the portfolio. The impact of Fund charges may have a material effect on the value of any income an investor might receive from an investment. Investors should be aware that there is the potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges. Capital erosion may have the effect of reducing the level of income generated. OMGI 01/14/0044

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