nma dynamic real return presentation sept 13

Threadneedle Dynamic Real Return Fund

Toby Nangle – Head of Multi-Asset

September 2013

June 2013

For institutional investors

Brighton – NMA Conference

Threadneedle Investments

Asset allocation is central to our business

Source: Threadneedle, as at 30 June 2013.

AUM includes externally managed funds under administration.

1

Assets under management

Client breakdown

An established global asset manager

Founded 1994

AUM £83.5 billion

153 investment professionals and 710 employees

£32.2 billion AUM in asset allocation fund and mandates

Sole focus is active management of client assets

Offers a broad spectrum of capabilities

Equities

Fixed Income

Commodities

Multi-asset

Property

Owned by Ameriprise Financial Inc.

Fixed

income

35.0%

Equities

55.4%

Property

6.8%Cash

2.8%

Multi-Asset

38.6%

Other

61.4%

Retail

32.6%

Institutional

67.4%

1

10

100

1,000

1870 1890 1910 1930 1950 1970 1990 2010

Real UK TRR (BarCap)

Real US Equity Prices (Shiller)

1929

Bretton

Woods/ OPEC

Crisis/ UK

Secondary

Banking Crisis

Tech

Bubble

GFCWWII

1921 UK

Depression

WWI

Why Multi-Asset?

We present a volatility-controlled approach to investing

that seeks to capture equity-like returns with less volatility

Sources: Threadneedle, Barclays Capital and Robert Shiller, (http://www.econ.yale.edu/~shiller/data/ie_data.xls), as at December 2012.

We believe that

Equities will continue to deliver attractive

long-term returns

Equities are volatile and can underperform

when investors most need good returns

Volatility is here to stay

Multi-asset investing can provide attractive

positive returns whilst helping to keep

volatility in check

40%+ equity market drawdowns

2

http://www.econ.yale.edu/~shiller/data/ie_data.xls

http://www.econ.yale.edu/~shiller/data/ie_data.xls

The World is Our Oyster! Calendar Year Returns in GBP, 2000-2012

The spread between strongest and weakest asset classes

is substantial even in ‘boring’ years

Sources: Bloomberg, December 2012.

3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Comdty UK Corp Bds Comdty EM Eq EM Eq EM Eq Euro Eq EM Eq Global Govt

Bds EM Eq Gold I/L Gilts Global HY Bds

Global Govt

Bds Gold Gold Global HY Bds Global HY Bds Japan Eq EM Eq Gold Gold Global HY Bds EM Eq Gilts UK Corp Bds

UK Corp Bds Global HY Bds UK Corp Bds Euro Eq Euro Eq Comdty UK Eq Comdty Gilts UK Eq Comdty Gold Euro Eq

Gilts Gilts Gilts Japan Eq UK Eq Gold Global HY Bds Euro Eq I/L Gilts Euro Eq Japan Eq UK Corp Bds EM Eq

I/L Gilts Global Govt

Bds I/L Gilts UK Eq I/L Gilts Euro Eq Gold

Global Govt

Bds Japan Eq UK Corp Bds US Eq

Global Govt

Bds US Eq

Gold EM Eq Global Govt

Bds US Eq Japan Eq UK Eq I/L Gilts I/L Gilts UK Corp Bds US Eq Global HY Bds Global HY Bds UK Eq

Euro Eq I/L Gilts Global HY Bds Comdty UK Corp Bds US Eq US Eq UK Eq Comdty Gold UK Eq US Eq Japan Eq

UK Eq US Eq EM Eq Gold Gilts I/L Gilts UK Corp Bds Gilts US Eq Comdty UK Corp Bds UK Eq Gilts

US Eq UK Eq Japan Eq UK Corp Bds US Eq UK Corp Bds Gilts US Eq Euro Eq I/L Gilts Global Govt

Bds Euro Eq Gold

Global HY Bds Comdty UK Eq I/L Gilts Global Govt

Bds Gilts Japan Eq Global HY Bds Global HY Bds Gilts I/L Gilts Comdty I/L Gilts

Japan Eq Euro Eq Euro Eq Global Govt

Bds Comdty Global HY Bds

Global Govt

Bds UK Corp Bds UK Eq Japan Eq Euro Eq Japan Eq

Global Govt

Bds

EM Eq Japan Eq US Eq Gilts Gold Global Govt

Bds Comdty Japan Eq EM Eq

Global Govt

Bds Gilts EM Eq Comdty

Emerging Market Equities -25% 0% -15% 41% 17% 50% 17% 38% -36% 62% 23% -18% 13%

US Equities -5% -10% -30% 16% 3% 18% 1% 5% -14% 15% 20% 2% 11%

European Equities -0% -18% -26% 25% 13% 22% 18% 13% -27% 23% 8% -10% 15%

UK Equities -4% -12% -23% 19% 11% 20% 15% 7% -30% 29% 13% -2% 10%

Japanese Equities -22% -27% -19% 23% 8% 40% -6% -5% -4% -4% 20% -14% 4%

Commodities 43% -17% 14% 12% 2% 35% -10% 15% -12% 7% 21% -13% -5%

Gold 2% 5% 13% 8% -2% 31% 8% 29% 44% 12% 34% 11% 2%

Conventional Gilts 9% 3% 9% 2% 7% 8% 0% 5% 14% -1% 7% 17% 3%

Global Government Bonds 10% 2% 8% 4% 3% 4% -7% 9% 51% -7% 9% 7% -3%

I/L Gilts 4% -1% 8% 7% 8% 10% 3% 8% 4% 6% 9% 20% 1%

UK Corporate Bonds 10% 7% 10% 7% 7% 9% 1% 1% -9% 15% 9% 7% 15%

Global HY Bonds -6% 5% 0% 31% 15% 5% 11% 2% -27% 59% 15% 3% 19%

Asset Allocation Team

Drawing on the resources of our entire investment

platform via our most experienced investors

Source: Threadneedle, as at July 2013.

1 An employee of Columbia Management.

Jim Cielinski Head of Fixed Income

30 years experience

3 years at Threadneedle

William Davies Deputy Head of Equities

28 years experience


Matthew Cobon Head of Government & FX

17 years experience


Rajeev Kapur Portfolio Construction

& Implementation

10 years experience


Portfolio Construction & Implementation Asset Allocation Strategy

Toby Nangle Asset Allocation

16 years experience


Alex Lyle Asset Allocation

33 years experience


Leigh Harrison Head of Equities

30 years experience


Mark Burgess Chief Investment Officer

27 years experience


Robert Webb Portfolio Construction

& Implementation

5 years experience


4


Drawing on the ideas of our entire investment platform via our most experienced investors

Full look-through to all positions better enables portfolio construction

No double charging

Effective governance

Targeting CPI+4% in line with long-run real return of equities

Aiming for equity-like returns with up to two-thirds of equity volatility

A volatility-controlled strategy that seeks to capture market upside in uncertain times

Real returns & lower

volatility

Dynamic & unconstrained

Long-only, unleveraged, risk-controlled, index-unconstrained

Dynamically managed asset allocation; there is no ‘neutral’

Uses direct holdings, derivatives, ETFs, and in-house funds

Key Characteristics

A collaborative and risk-oriented approach

5

Any target returns stated on these slides are internal fund manager targets and do not form part of the funds objectives.

Why target CPI+4%?

Targeting an equity-like return

6

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

15yr Annualised Real Return of UK Equities 30yr Annualised Real Return of UK Equities

Long-Run Equity Returns over Inflation

Source: Bank of England, Barclays Capital and Threadneedle, 31 December 2012. Any target returns stated on these slides are internal fund manager targets and do

not form part of the funds objectives

We expect equities to deliver positive and

attractive total returns over the medium-term

The GAA Fund aims to deliver 100% of equity

returns with up to two-thirds of ex post equity

risk, over a 3-5yr horizon

We aim to do this by actively managing the

portfolio’s asset allocation, and adding value

at the stock and sector level

On a monthly basis we:

Show the range of opportunities available to

investors investing in static asset allocations of US

and Global equities and bonds, making transparent

to clients our success in harvesting returns

Show portfolio exposures and changes, providing

the rationale for these changes

Example Historic Risk1 and Return – 3yrs

Threadneedle (Lux) Global Asset Allocation Fund

Source: Threadneedle, as at March 2013. Performance is shown on a gross basis, and expressed in

US$. Gross performance based on Global Close prices, unadjusted income reinvested, and the TER

(Total Expense Ratio). Past performance is not a guide to future returns.

1 Risk: Annualised Standard Deviation of monthly returns.

Equity-like returns with up to two-thirds equity volatility

100% UST Index

100% Global

Equity Index

GAA Performance

Target

Performance

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Annualised Volatility of Return

Annualis

ed R

etu

rn

7

Asset Allocation Strategy output – our current views (September 2013)

Where should we be invested & how much risk should we be taking?

Source: Threadneedle, as at September 2013.

Strongly Dislike Dislike Neutral Favour Strongly Favour

Asset Allocation Government I/L Cash

Credit

Equity

Commodity

Property

Equity Region EU x UK US

UK

EM

Pac x Japan

Japan

Global Equity Sector

Energy

Utilities

Telco

Fins

Materials

Industrials

Health

Staples

Technology

Consumer Cyclicals

Bond - FX Hdgd Japan

Germany

US

UK

Nordic

Australia

EM Local

Credit Corporate IG EMD

Corporate HY

Commodity Base Metals

Softs

Grains

Livestock

Precious

Energy

FX AUD JPY

Euro

GBP

Nordics USD

X

8

Current risk appetite

Threadneedle Dynamic Real Return Portfolio

Sizing risk budgets in line with asset

allocation strategy output

Source: Threadneedle, as at 30 June 2013.

1 Uses ten years of equally-weighted monthly returns to June 2013 and assumes that no risk is added or subtracted from stock-selection.

For reference, the measure of historical volatility calculated for MSCI ACWI over the same sample window was 16.7%.

9

Dev Equity

40.0%

EM Equity

5.0%

DM Govt

22.4%

I/L Bonds

1.5%

HY Credit

7.5%

Commodity

4.7%

EM Local

7.0%

IG Credit

5.0%

Cash

7.0%

JPY

8%

EM

8%

Commodity

5%

USD

13%

GBP

68%

Portfolio disaggregation of risk1

Portfolio anticipated volatility of 6.8% p.a.

-

2%

4%

6%

8%

10%

12%


Investment

Objective

To achieve a positive real rate of return from capital appreciation and income over the medium to long term, at

least above the rate of inflation (defined as the Consumer Price Index). Regardless of market conditions, it also

aims to provide a positive return over a maximum period of 3 years

Neutral Allocation Unconstrained by any index

Asset allocation

parameters

Dynamic asset allocation can vary significantly to reflect Threadneedle’s asset allocation views:

Equities range: 0-75%

Fixed income range: 0-100%

Commodities range: 0-20%

Property range: 0-20%

Alternatives range: 0-10%

Implemented via direct investments, derivatives, and internal funds.

Where internal funds are used there is no double-charging and risk management systems have full position-

level look-through

Approach Long-only, unleveraged

Legal structure NURS

Dealing Daily

Fees AMC: 75 bps (Z-class), OCF: 97bps

Base currency GBP

10

1 Any target returns stated on these slides are internal fund manager targets and do not form part of the funds objectives.

Key characteristics

Investment process in practice 3

Investment process in practice – Japanese Equities 1. Economic Research

1 Updated as at 25 April 2013.

12

Threadneedle Macro Research

Japan economic forecasts1 “After the BOJ this morning we had a meeting with

CB Richard Ellis the property guys and they are

having a great time. And all the companies I've

seen so far will need to revise up their forecasts.”

E-mail from Sarah Williams,

Head of Japanese Equities,

Tokyo 4th June

47 company meetings held in May

Threadneedle Micro Research

End-2013 End-2014

2011 2012 Current (T) (cons) (T) (cons)

GDP

(year/year) -0.5 2.0 0.7 1.5 1.0 1.3 1.5 1.3

Headline inflation

(year end) -0.3 0.0 -0.7 0.0 -0.2 0.1 2.0 1.9

Investment process in practice – Japanese Equities 2. Valuation Research

Fair valuation taking consensus estimates

13

Forward Japanese Inflation Expectations

Priced into Fixed Income Markets Cross-Asset Valuation Framework

-1.0

-0.5

-

0.5

1.0

1.5

2.0

2.5

3.0

Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17

Inte

rpo

late

d 1

2m

th C

PI D

isco

un

ted

Valuation criteria met (05/06/13) Economic criteria met (22/05/13)

UK

US

Braz

France

Japan

Spain

ACWI EM

Germany

HSI

Spain

Mexico

Germany

US Agg

France

UK

US

Japan

Italy

Ireland

EMBI

GBI - EM

y = 0.3209x + 0.0312

R 2 = 0.8505

0%

2%

4%

6%

8%

10%

12%

-5% - +5% +10% +15% +20%

(Annualised Vol of 36mth Monthly Returns X Correlation to MSCI ACWI)

YT

M o

r Im

pli

ed

Co

st

of

Eq

uit

y C

ap

ital

Equity Fixed Income

Source: Bloomberg and Threadneedle, June 2013.

Investment process in practice – Japanese Equities 3. Strategy

End of deflation transforms Japan RoE

14

Australia

USSwitz

UKCanada

Germany

JapanEM

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3% 5% 7% 9% 11% 13% 15%

Return on Equity

Pri

ce/

Bo

ok

End of Deflation transforms RoE Transformed RoE gives scope for re-rating

within equity markets

Source: Threadneedle, June 2013

-40%

-20%

0%

20%

40%

60%

80%

Jun 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Feb 13 Mar 13 Apr 13 May 13 Jun 13

3m

th r

ollin

g r

etu

rn D

eco

mp

osed

by C

han

ge t

o E

PS

& C

han

ge

in M

ult

iple

10

11

12

13

14

15

16

17

18

19

20

12m

th F

orw

ard

P/E

3mth Chg in 12mth Fw d EPS 3mth Chg in 12mth Fw d PE 3mth Return 12mth fw d PE

Investment process in practice – Japanese Equities Summary

Topix 3mth rolling return decomposed by changes to 12mth forward P/E changes and 12mth forward EPS changes

15

Threadneedle Upgraded

Macro Forecasts

Abe wins opposition leadership election

PM Noda calls General Election; Short TOPIX

vs S&P cut from absolute return funds

Threadneedle overweight

Japan initiated

Threadneedle Micro

field research


Investment process in practice – Japanese Equities Sizing the position

8% NAV Japanese Equity position

contributes 1% to portfolio risk

16

Highly correlated

volatile assets:

High barriers to entry

Negatively

correlated assets:

Low barriers to entry

AA - Broad Categories

NAV Risk Of Total

Equity Dev Equity 40.0% 4.72% 69.8%

EM Equity 5.0% 45.01% 0.89% 13.1% 83.0%

Comdty Commodity 4.7% 4.74% 0.27% 3.9%

Govt Govt Bonds 22.4% -0.09% -1.4%

I/L Bonds 1.5% 23.87% 0.03% 0.4% -1.0%

Credit Credit 12.5% 0.55% 8.2%

EM Local 7.0% 19.50% 0.19% 2.9% 11.0%

Cash & FX FX 0.0% 0.19% 2.9%

Cash 8.4% 8.40% 0.01% 0.1% 3.0%

Property Property 0.0% - - -

6.8%

Confidence Worst Mth

1mth Hist VaR 95% -3.55% -9.87%

1mth Para Var 95% -3.21%

Ex Ante StDev 6.76%

As % of MSCI AC 42%

Diversity Benefit 4.2%

Overall Portfolio Vol

-

5%

10%

15%

20%

25%

30%

35%

-1.0 -0.5 0.0 0.5 1.0

Correlation to Total Portfolio

Vo

lati

lity

of

Retu

rn

Total Portfolio 02:01

02:02 02:03

02:04 03:01

03:02 03:03

03:04 03:05

04:03 05:02

05:03

Bubble denotes size of position as % NAV

Australian Bonds

14% NAV

UK Equities

20% NAV

Energy

US HY

4.6% NAV

Japan Equity

8% NAV

EM Equities

5% NAV

Source: Threadneedle, June 2013.

-30%

-10%

10%

30%

50%

70%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Contribution of mining capex to growth in GDP over 4 quarters

Example: Australian Bonds Economic Research

Ma

cro

Res

ea

rch

17

Mic

ro R

es

earc

h

Mining capex accounted c.60% of GDP growth

over the last four quarters

“The overall tone was pretty downbeat. I think some

investors went to Barcelona intending to do some

bottom fishing, but actually it is hard to find stocks

that look cheap once you put in truly conservative

commodity price forecasts.”

E-mail from Georgina Hellyer, Commodities Analyst,

Emerging Market Equities, after meeting management

from 15 companies In Barcelona, May 2013

25

30

35

40

45

50

55

60

65

70

Dec-

05

Dec-

06

Dec-

07

Dec-

08

Dec-

09

Dec-

10

Dec-

11

Dec-

12

PM

I

-25

-20

-15

-10

-5

0

5

10

15

20

Bu

sie

nss C

on

dit

ion

s

PMI - Production NAB Business Conditions

Away from mining, the economy is

weak and has been deteriorating

Source: Bloomberg and Threadneedle, June 2013

UK

US

Braz

France

Japan

Spain

ACWIEMGermany

HSI

Spain

Mexico

Germany

US Agg

Australia

UK

US

Japan

Italy

Ireland

EMBI

GBI - EM

y = 0.3107x + 0.0323

R2 = 0.8344

0%

2%

4%

6%

8%

10%

12%

-5% - +5% +10% +15% +20%

(A nnualised Vo l o f 36mth M o nthly R eturns X C o rrelat io n to M SC I A C WI)Y

TM

or

Imp

lied

Co

st

of

Eq

uit

y C

ap

ital

Equity

Fixed Income

Example: Australian Bonds Valuation Research

One cut gently being priced in, and a yieldy negative correlator vs equities

18

90 Day Australian Bank Bill Future Curve Cross-Asset Valuation Framework

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16

Jul-30 2013

Jun-30 2013

Dec-31 2012


Example: Australian Bonds Sizing the position in the portfolio

14% NAV Australian bond position reduces

portfolio risk by 0.15%

19

Highly correlated volatile

assets:

High barriers to entry

Negatively correlated

assets:

Low barriers to entry

AA - Broad Categories

NAV Risk Of Total

Equity Dev Equity 40.0% 4.72% 69.8%

EM Equity 5.0% 45.01% 0.89% 13.1% 83.0%

Comdty Commodity 4.7% 4.74% 0.27% 3.9%

Govt Govt Bonds 22.4% -0.09% -1.4%

I/L Bonds 1.5% 23.87% 0.03% 0.4% -1.0%

Credit Credit 12.5% 0.55% 8.2%

EM Local 7.0% 19.50% 0.19% 2.9% 11.0%

Cash & FX FX 0.0% 0.19% 2.9%

Cash 8.4% 8.40% 0.01% 0.1% 3.0%

Property Property 0.0% - - -

6.8%

Confidence Worst Mth

1mth Hist VaR 95% -3.55% -9.87%

1mth Para Var 95% -3.21%

Ex Ante StDev 6.76%

As % of MSCI AC 42%

Diversity Benefit 4.2%

Overall Portfolio Vol

-

5%

10%

15%

20%

25%

30%

35%

-1.0 -0.5 0.0 0.5 1.0

Correlation to Total Portfolio

Vo

lati

lity

of

Retu

rn

Total Portfolio 02:01

02:02 02:03

02:04 03:01

03:02 03:03

03:04 03:05

04:03 05:02

05:03

Bubble denotes size of position as % NAV

Australian Bonds

14% NAV

UK Equities

20% NAV

Energy

US HY

4.6% NAV

Japan Equity

8% NAV

EM Equities

5% NAV

Source: Threadneedle, June 2013.

Historic asset allocation by asset class Historic asset allocation by currency

Actively implementing our evolving asset allocation views

Dynamic, active, index-unconstrained

Source: Threadneedle, as at 31 May 2013.

Data is shown is for the Threadneedle (Lux) Global Asset Allocation Fund.

20

0

10

20

30

40

50

60

70

80

90

100

Aug-

12

Sep-

12

Oct-

12

Nov-

12

Dec-

12

Jan-

13

Feb-

13

Mar-

13

Apr-

13

May-

13

USD AUD CAD Europe x UK GBP

JPY Commod EM MXN PLN

0

10

20

30

40

50

60

70

80

90

100

Aug-

12

Sep-

12

Oct-

12

Nov-

12

Dec-

12

Jan-

13

Feb-

13

Mar-

13

Apr-

13

May-

13

Dev Equity EM Equity HY Credit IG Credit

EM Local Commodities Dev Govt Cash

Appendix: Biographies AP3

Biography

TOBY NANGLE

Head of Multi-Asset

Toby Nangle joined Threadneedle as Head of Multi-Asset in 2012. In this role he is responsible for managing and

co-managing a range of multi-asset portfolios, as well as providing strategic and tactical input to the Threadneedle

asset allocation process.

Prior to joining Threadneedle Toby worked at Baring Asset Management, initially in the fixed income team and

subsequently as Director of the Multi-Asset Group. He holds degrees in History and International Relations from

the University of Cambridge.

Threadneedle start date: 2012

Industry start date: 1997

22

Key Risks of the Threadneedle Dynamic Real Return Fund

23

Investment risk – The value of investments can fall as well as rise and investors might not get back the sum originally invested.

Investment in funds – The Investment Policy allows the fund to invest principally in units of other collective investment schemes. Investors should consider the

investment policy and asset composition in the underlying funds when assessing their portfolio exposure.

Currency risk – Where investments are made in assets that are denominated in multiple currencies, changes in exchange rates may affect the value of the

investments.

Investor currency risk – Where investments in the fund are in currencies other than your own, changes in exchange rates may affect the value of your

investments.

No capital guarantee – Positive returns are not guaranteed and no form of capital protection applies.

Issuer risk – The fund invests in securities whose value would be significantly affected if the issuer either refused to pay or was unable to pay or perceived to be

unable to pay.

Inflation risk – Most bond and cash funds offer limited capital growth potential and an income that is not linked to inflation. Therefore, inflation can affect the real

value of capital and income over time.

Interest rate risk – Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice

versa.

Valuation risks – The fund’s assets may sometimes be difficult to value objectively and the actual value may not be recognised until assets are sold.

Investment in derivatives – The Investment Policy of the fund allows it to invest materially in derivatives.

Volatility risk – The fund may exhibit significant price volatility.

Important information

24

Information for Investment Professionals Only. Past performance is not a guide to future performance.

The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not

get back the amount invested.

The dealing price may include a dilution adjustment where the fund experiences large inflows and outflows of investment. Further details are available in the Prospectus.

Threadneedle Opportunity Investment Funds ICVC (“TOIF”) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales,

authorised and regulated in the UK by the Financial Conduct Authority (FCA) as a Non-UCITS scheme.

This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment

advice or services.

Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the

applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to inves ting in any fund and specifically this Fund. The above

documents are available in English only and may be obtained free of charge on request from Threadneedle Investments at PO Box 10033, Chelmsford, Essex CM99 2AL.

Tax treatment depends on individual circumstances. Tax concessions are not guaranteed and tax legislation may change in the future.

The mention of any specific shares or bonds should not be taken as a recommendation to deal.

The mention of any specific shares or bonds should not be taken as a recommendation to deal. Threadneedle Investments does not give any investment advice. If you are in doubt

about the suitability of any investment, you should speak to your financial adviser.

The fund characteristics described above are internal guidelines (rather than limits and controls). They do not form part of the fund’s objective and policy and are subject to change

without notice in the future.

The research and analysis included in this document has been produced by Threadneedle Investments for its own investment management activities, may have been acted upon

prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be

seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.

This document is a marketing communication. The research and analysis included in this document have not been prepared in accordance with the legal requirements designed to

promote its independence and have been produced by Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and

is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment

advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.

This presentation and its contents are confidential and proprietary. The information provided in this presentation is for the sole use of those attending the presentation. It may not be

reproduced in any form or passed on to any third party without the express written permission of Threadneedle Investments. This presentation is the property of Threadneedle

Investments and must be returned upon request.

Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, St Mary Axe, London EC3A 8JQ, United Kingdom. Authorised

and regulated in the UK by the Financial Conduct Authority.

Threadneedle Investments is a brand name and both the Threadneedle Investments name and logo are trademarks or registered trademarks of the Threadneedle group of

companies.