Ignis asset management

Ignis Absolute Return Government Bond Fund Diversified returns from global government bonds and currencies

This presentation is intended for professional clients and investment professionals

only and should not be relied upon by retail investors.

Ignis capabilities**

Ignis

Fixed Income €65.3bn

Equities €12.9bn

Real Estate €3.6bn

Advisors (FoF/Alts) €2.2bn

Solutions (LDI/ALM) €39.2bn^

Key facts

Founded in 1899

Part of the Phoenix Group

AuM: €84.2bn*

140 investment professionals

Pragmatic: outcome-focused and innovative

Talent driven: creative and passionate people who look at

the world differently

Building on our heritage: evolving to address client needs

in a changing world

Aligned with clients: we are co-investors

1 *Source: Ignis at 31/12/2012 (including €11.4bn of stock-lending collateral). **AuM by business unit/investment capability (31/12/2012). ^Ignis Solutions is responsible for €39.2bn of liabilities under management.

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Ignis Absolute Return Government Bond Fund

Stable, experienced team

Flexible, innovative approach

Proprietary technology and investment tools

Led by Ignis CIO Chris Fellingham

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Ignis Fixed Income: a broad range of capabilities

*Source: Ignis at 31/12/2012.

37%

28%

3%

29%

3%

Direct funds under management - €65.3bn*

Rates Credit

Stock Lending Liquidity

Other

0

2

4

6

8

10

12

14G10 10 year sovereign yields

Germany

Japan

UK

US

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Bonds have done well, but limited potential for long-only strategies

Source: Datastream at 29/03/2013.

Performance:

Gains have been strong and yields are

close to historic lows (with some

divergence)

Outlook:

Correction (when it comes) will lead to

capital losses

3

We believe:

It is vital to separate alpha and beta

Management of downside is critical

Investors’ requirements for liquidity must be matched with the instruments invested in

Ignis absolute return philosophy

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Designed to deliver:

Performance in all market conditions

Low volatility: 4-6% standard deviation*

Low correlation with other asset classes

Alpha not beta

Investing in:

Highest quality and most liquid debt instruments (long and short exposure)

Foreign currency - max 25% of total risk budget (G10 only)

Ignis Absolute Return Government Bond Fund An innovative fund:

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*The fund’s target volatility is a standard deviation level of 4-6%, it is managed with the aim of delivering stable returns regardless of market moves.

Broad universe; highly liquid instruments

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Instruments traded

G10 sovereign bonds

Bond futures

Interest rate swaps

OTC options (on rates and currencies)

Swaptions

Currency forwards (currency restricted to 25% of risk)

Inflation swaps and options

Derivatives management at Ignis

Derivatives excellence programme

€127bn* notional derivatives traded in 2012

Independent counterparty risk committee

Positions collateralised daily for cash or government

bonds

*Source: Ignis at 31/12/2012.

Delivering performance in challenging markets

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-5%

0%

5%

10%

15%

Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12 Apr 12 Jun 12 Aug 12 Oct 12 Dec 12 Feb 13 Apr 13

Performance* Ignis Absolute Ret Gov Bond EUR I2 class (10.8%)

EONIA (1.0%)

Lipper Global Absolute Return EUR Low (2.0%)

*Source: Lipper, NAV to NAV, gross income reinvested since launch on 31/03/2011 to 28/03/2013. EONIA is the rate that large banks use to borrow from, and lend to, one another on the overnight market. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares (including the initial charge). Performance comparisons are inappropriate due to the diverse nature of the objectives of the funds populating this sector, including differing benchmarks, risk characteristics and timeframes for delivering performance. The Euro I2 Hdgd share class is closed to new investors. The Euro I Hdgd share class was launched on 02/01/2013 and has a limited past performance. **Source: Ignis, ex post volatility daily over one month since inception to 28/03/2013 based on Euro I2 Hdgd share class. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and is not guaranteed.

0%

5%

10%

15%

Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12 Apr 12 Jun 12 Aug 12 Oct 12 Dec 12 Feb 13 Apr 13

Volatility** Ex Ante volatility

Ex Post volatility

0

5

10

15

20

25

30

-1.6% -1.4% -1.2% -1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6%

Freq

uen

cy

Histogram showing distribution of weekly returns*

Normal distribution at 5%volatility

37 67

8

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Positive skew of returns Performance (since launch): 10.78%**

Average weekly return: 0.10%*

Information ratio: 1.43

Realised tracking error: 3.34%

Source: Ignis, information since inception 31/03/2011 to 28/03/2013, based on EUR I2 Hdgd share class and net of fees.*Source: Lipper, based on weekly data from 01/04/2011 to 29/03/2013. **Source: Lipper, NAV to NAV, gross income reinvested since inception to 28/03/2013 based on EUR I2 Hdgd share class. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and is not guaranteed.

1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% -1.0% -0.8% -1.2% -1.4% -1.6%

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Lowly correlated returns

Source: Morningstar Direct, correlation of daily returns in local currency based on EUR I2 Hdgd share class since fund launch on 31/03/2011 to 28/03/2013. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and is not guaranteed.

Since launch the fund has exhibited low correlation with other asset classes, and a negative correlation with equities:

Ignis Absolute Return Govt Bond Fund

MSCI World Citigroup WGBI Barclays Capital

Global Agg Corporate

ETFS Physical Gold

Ignis Absolute Ret Govt Bond Fund

100%

MSCI World -31% 100%

Citigroup WGBI

23% -52% 100%

Barclays Capital Global Agg Corporate

-7% 9% 31% 100%

ETFS Physical Gold -8% 10% 6% 39% 100%

Correlation, %

100

80

60

40

20

0

-20

-40

-60

-80

-100

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

-1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5%

Weekly returns of Ignis Absolute Return Government Bond Fund versus Citigroup G7 Government Bond Index

Source: Ignis, Lipper; ARGBF data based on EUR I2 Hdgd share class net, Citigroup G7 data shown in local currency; all information based on weekly data from 01/04/2011 to 29/03/2013. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and is not guaranteed.

Strong performance in all market conditions

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43% 22%

14% 21%

Citigroup G7 GBI weekly returns

ARGBF weekly returns

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Manages €24.4bn*

Specialises in government bonds

and currencies

Multi-specialist structure provides

combination of perspectives

Team includes chief economist

Stuart Thomson

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Ignis rates team: complementary skill set

*Source: Ignis at 31/12/2012 (Figures in brackets are number of years of investment experience)

Head of Rates

Quant Team Macro

Economics Portfolio

Management Liquidity, Repo and

Collateral Management

Russ Oxley (15)

Adam Purzitsky (8) Josh Heming (14)

Stuart Thomson (28)

Paul Shanta (4) Ross Crawford (12)

Jin Wong (6) Aaron Rock (7)

Brian Jack (12) Colin Goymer (20)

CIO

Chris Fellingham (27)

Product Specialists

Helen Farrow (26) Joanna Howley (15)

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Ignis rates team: complementary skill set

Idea generation Opportunity set

Macroeconomic strategy

Quantitative research

Market timing

Russ Oxley

Stuart Thomson

Paul Shanta

Jin Wong Aaron Rock

Ross Crawford

Josh Heming

Adam Purzitsky

Inflation

Nominal

FX

Volatility Russ Oxley

Paul Shanta

Ross Crawford

Adam Purzitsky

Aaron Rock

Jin Wong

Stuart Thomson

Investment process

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Identify key macro-

economic themes

Analysis of forward curves in clearcurve to

find optimal expression of

view

Express each key view through

multiple positions to

increase diversification

and reduce idiosyncratic risk

Allocate risk to key themes

depending on short term conviction

Monitor intraday P&L and

dynamically hedge as needed

Portfolio 5 key themes

expressed through 15-20 different

positions

Our proprietary ClearCurve system:

Breaks average yields into individual one

year forward rates:

- magnifies opportunities unseen by most

- ensures optimal portfolio positioning

Shows profit/loss the position would have

made historically:

- helps size positions according to clients’

risk budget

Translates desired forward rate exposure

into tradable investments

The benefits of ClearCurve

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14 Source: Ignis, ClearCurve; all data for illustrative purposes only

-1.0

-0.5

0.0

0.5

1.0

1y0y 1y2y 1y4y 1y6y 1y8y 1y10y 1y12y 1y14y 1y16y 1y18y 1y20y 1y22y 1y24y 1y26y 1y28y

%

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

1Y0Y 1Y2Y 1Y4Y 1Y6Y 1Y8Y 1Y10Y 1Y12Y 1Y14Y 1Y16Y 1Y18Y 1Y20Y 1Y22Y 1Y24Y 1Y26Y 1Y28Y

%

Forward - 04/01/2012

Forward - 30/04/2012

15

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ClearCurve: a key proprietary tool Deconstructing the forward rate curve

Dominated by changes in domestic structural supply and demand/regulation

Global competition for capital/global macro Expectation

of base rates

Source: ClearCurve, all data for illustrative purposes only

German forward rate curve

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Implementing views using ClearCurve German Forward Curve

Potential positions

Carry:

Long 1y4y fwd

- Long 5yr bund, short 4yr bund

Directional:

Long 1y9y fwd

- Long 10yr bund, short 9y bund

Relative value:

Long 1y14y and 1y19y

short 1y16y and 1y17y

- Long 15yr, 16yr and 20yr bund, short

14yr, 18yr and 19yr bund

Source: ClearCurve, all data for illustrative purposes only

0

1

2

3

4

51 year forward versus average yields

Average 20y DBR yield October 2011: 3.09%

Carry opportunity

Directional opportunity

Relative value opportunity

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ClearCurve: insight from forward rates

Source: Ignis, ClearCurve; all data for illustrative purposes only

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

0y 5y 10y 15y 20y 25y

Nominal spot rates (US)

Change (%, RHS) 20/09/2011 30/09/2011

Operation Twist in September 2011 caused long-dated spot rates to fall slightly while short-dated rates rose…

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0y 5y 10y 15y 20y 25y

Nominal forward rates (US)

Change (%, RHS) 20/09/2011 30/09/2011

…our forward analysis enabled us to anticipate which rates would fall most, allowing us to implement positions precisely to capture value

Seven uncorrelated sources of alpha in our universe

Allows macro themes to be implemented in multiple ways

Reduces idiosyncratic risk

Result: efficient portfolio with better risk adjusted returns

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Diversification by design: the Arc of Alpha

< 2 years

2-15 years

> 15 years

FX

Asset Swaps

Inflation

Volatility strategies

22.6

-17.0

5.6

-22

-18

-14

-10

-6

-2

2

6

10

14

18

22

26

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Using diversification to control risk

Ex-a

nte

tra

ckin

g er

ror

%

Source: UBS Delta, data at 28/03/2013. The fund takes risks by implementing different strategies. If each strategy was well correlated, the total risk of the fund would be a sum of the parts. In fact, the strategies are lowly correlated. This creates a diversification benefit, reducing the fund’s total volatility.

Risk taken by independent risk buckets

Ex-a

nte

tra

ckin

g er

ror

%

3.2 1.9 2.0 3.0 3.0 2.4

5.9

-22

-18

-14

-10

-6

-2

2

6

10

14

18

22

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Risk mitigated by diversification

Portfolio risk is controlled and managed through:

Front, Barclays POINT, and ClearCurve

Fund manager parameters and oversight:

- Target volatility range: 4-6% standard deviation

- Average monthly VaR of 3.1%* since inception

Ex post volatility historically lower than ex ante due to dynamic hedging

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Risk management at core of process

*VaR at 99% confidence level, source Ignis at 28/03/2013. **Source: Ignis at 28/03/2013. Ex post volatility daily over one month since launch based on EUR I2 Hdgd share class. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and is not guaranteed.

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13

Volatility**

Ex ante volatility

Ex post volatility

Performance driven by a range of strategies

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Source: Ignis, internal trading systems, indicative only, base currency, data since launch on 31/03/2011 to 28/02/2013. The fund generates performance by implementing different strategies. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise and is not guaranteed.

71

451

5

165

93

58

325

0

50

100

150

200

250

300

350

400

450

500

Rates < 2y Rates 2-15y Rates 15y+ Asset Swap Global Inflation FX: Active Volatility

Bp

s

Contribution by strategy: cumulative since launch

Theme: China in growth recession

Short US 5y inflation

Long US ultra-long forwards

Theme: political and regulatory change Short yen vs USD and GBP

Short inflation in UK

Long UK gilts versus swaps

Theme: US and UK growth to accelerate

Short US and UK front-dated forwards

Short volatility in long-dated rates

Long volatility in short-dated rates

Theme: Crisis, Response, Anticipation, Improvement, Complacency

Short euro vs GBP Short French 5y5y inflation Long German short-dated real yields

Positioning at end March 2013

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Volatility

strategies

List header three List header four List header one List header two

ClearCurve – developed by Ignis in 2005

Unique in extracting forward rates from government bonds

Provides a more accurate view of the path of interest rates

High level of experience in both long and short investing

Chief economist part of team

Risk management embedded within process

Team have dedicated quant specialists

What sets us apart?

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Alpha not beta Diversified skill set Innovative approach

Designed to deliver performance in all market conditions

Non-directional (although core views taken)

Lowly correlated to credit, gilts, gold and equities

Manager not constrained by any particular biases


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^This is the rate that large banks use to borrow from, and lend to, one another on the overnight market. In Europe this is EONIA (Euro Over Night Index Average). *Performance fee is net of fees, over compounded cash rates and subject to a high water mark.

Fund manager Russ Oxley (lead manager), Stuart Thomson, Adam Purzitsky and Paul Shanta (co managers)

Launch date 31 March 2011

Sector Lipper Absolute Return Euro Low

Structure UCITS IV SICAV

Domiciled Luxembourg

Benchmark EONIA^

Liquidity Daily dealing

Minimum investment EUR A Class: €1,000 EUR I Class: €1,000,000

Annual management fee EUR A Class: 1% EUR I Class: 0.5%

Performance fee* Fund manager is entitled to 10% of performance generated above EONIA^ with a high water mark

Registered for sale: Luxembourg, UK, Spain, Germany, Austria, France, Italy, Sweden, Switzerland, Finland, Belgium and the Netherlands

Fund profile

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Contact us

Roger de Passe

Regional Director - Benelux

Mob: +32 (0) 470 99 16 68 Email: [email protected]

Philip Goldsmith

Managing Director Europe

Mob: +41 (0)79 753 35 74 / +44 (0)7836 243 999

Email: [email protected]

Telephone calls may be monitored and/or recorded for the purpose of security, internal training, accurate account operation, internal customer monitoring and to improve the quality of service.

Your main contact Your regional support

Dee Clarkin European Sales Support Manager Tel: +44 (0)20 3003 3127 Email: [email protected]

Christina Kniep Sales Support Executive Tel: +44 (0)20 3003 3124 Email: [email protected]

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Disclosure

This information is intended for professional clients and investment professionals only and should not be relied upon by retail investors.

The opinions expressed here represent the views of the fund manager at the time of preparation and should not be interpreted as investment advice.

Distribution of this document and the offering of shares in certain jurisdictions may be restricted by law and accordingly persons into whose possession this document comes are required to inform themselves about and to observe such restrictions. This document does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such offer or solicitation.

Further detailed information regarding the Fund, its Prospectus, its Key Investor Information Document (KIID), its latest annual reports and any subsequent half-yearly reports (including information on how to switch, buy and sell units of the Fund and other unit classes available), is available free of charge from Ignis Investment Services Ltd. You can also obtain these documents through our website www.ignisasset.com/international.

Past performance is not a guide to future performance.

The fund takes long and short positions based on the fund manager’s views of the market direction. This means the fund’s performance is unlikely to track the performance of broader bond and equity markets. While this creates the opportunity for the fund to deliver positive returns in falling markets, it also means that the fund could deliver negative returns in rising markets. The value of investments and any income from them can fall as well as rise and is not guaranteed. Exchange rate movements may cause the value of investments to fluctuate. Please note the Euro I2 share class is closed to new investors.

The fund is a sub fund of Ignis Global Funds SICAV, an investment company organised under the laws of the Grand Duchy of Luxembourg as a Self Managed SICAV. The investment company has its registered office at Vertigo-Polaris, 2-4 Eugene Ruppert, L-2453 Luxembourg, and is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

The sub fund is currently registered for public distribution in the following countries: Luxembourg, UK, Spain, Germany, Austria, France, Netherlands, Belgium, Sweden, Switzerland, Finland and Italy. Copies of all relevant scheme documentation can be obtained free of charge from the locally appointed paying agents. Austrian Paying Agent: Unicredit Bank Austria, 8398 Global Securities Sales & Services, P.O. Box 35, A-1011 Vienna; Belgium Paying Agent: Fastnet Belgium SA, B-1000 Brussels, Avenue de Port 86C, b320; French Paying Agent: Société Générale SA, 29 Boulevard Haussmann, F-75009 Paris; German Information Agent: Société Générale SA, Neue MainzerStraße 46-50, D-60311 Frankfurt / Main; Italian Paying Agent: RBC Dexia, via Vittor Pisano 26, 20124 Milan; Luxembourg Paying Agent: Société Générale, 11 Avenue Emile Reuter, L-2420 Luxembourg; Netherlands Paying Agent: ING Bank NV, Van Heenvlietlaan 220, Location Code BV.06.01, NL-1083 CN Amsterdam; Spanish Paying Agent: RBC Dexia Investor Services España SA, calle Fernando El Santo no20, Madrid 28010; Swedish Paying Agent: SEB Merchant Banking, Sergels Torg 2, SE-106 40 Stockholm; Swiss Paying Agent: NPB Neue Privat Bank AG, Limmatquai 1, P.O. Box, CH-8022 Zurich.

This document has been issued by Ignis Investment Services on behalf of Ignis Global Funds SICAV. Ignis Investment Services is registered in Scotland Number SC101825. Registered Office: 50 Bothwell Street, Glasgow G2 6HR. Authorised and regulated by the Financial Conduct Authority.

Ignis asset management

Economy & Finance

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