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Aviva Investors: Public

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Taking responsibility to new levels

Aviva Investors ESG Capabilities & AIMS Multi-Strategy Target Return Fund

Aviva Investors: Public

Combining our expertise for your outcomes

Source: Aviva Investors and Aviva plc as at 30 September 2019. Aviva Investors is the name under which a number of globally integrated asset management businesses operate. Aviva Investors Global Services Limited is our main investment arm ultimately 100% owned by Aviva plc (a multinational financial services company). ). The AUM figures shown above are for the group of companies, trading as Aviva Investors, the fund management arm of the Aviva Group. Please note individual componentry of Real Assets may not reflect the overall Real Assets AUM which reflects components managed within Fixed Income across Multi-Asset & Macro and Credit, and methodical treatment of nominal versus market value in illiquid assets.

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countries

£356bn

managed across asset classes Asset class £bn Credit 119.7 Equities 36.2 Multi-asset and macro 80.4 Real assets 46.1 Solutions 73.7 Total 356.1

1500+

people

Life insurance General insurance Investments, savings and retirement

320 years in business | 33m customers

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Aviva Investors: Public

The value of low volatility

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Source: Aviva Investors, for illustrative purposes only

High volatility Low volatility Panic Time Value

Lower volatility due to enhanced diversification reduces:

• Sequencing risk – early poor

returns can lower the value of a portfolio in the long term

• Problematic behavioural traits –

“time in the market not timing the market” Downside protection is key in maximising compounding of returns

Aviva Investors: Public 4

Key strengths

Source: Aviva Investors

Responsibility built in Robust portfolio construction Connected thinking Environmental, Social and Governance considerations improve outcomes Focus on protecting capital through difficult periods Collaborative, firm-wide investment approach

Aviva Investors: Public

Aiming to meet your clients’ needs

• 1. Cash is defined as the European Central Bank Deposit Facility Rate, which banks may use to make overnight deposits with the Eurosystem. Prior to 28 February 2019 the ECB Rate used for comparative purposes may have been the European

Central Bank Re-Financing Rate, when it should have been the European Central Bank Deposit Facility Rate. This did not have any impact on fund performance and was used for illustrative, relative return purposes only. Objective is measured

• ver a 3-year rolling period. For the Australian domiciled $AUD Hedged AIMS Target Return Fund Cash is defined as the RBA Cash Rate and for the AIMS Target Return Fund $NZD Hedged SICAV sub-fund Cash is defined as the RBNZ Cash Rate.
• 2. Global equities benchmarked by MSCI All Country World index.

The value of an investment may go down as well as up and the investor may not get back the original amount invested.

Your clients’ needs AIMS Target Return

Capital growth over the long term Minimise volatility Performance objective: cash + 5% p.a.1 Less than 50%

• f the volatility of global equities2

Low correlation with equities Enhanced diversification

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Aviva Investors: Public 6

AIMS investment process

Source: Aviva Investors, * Global Responsible Investment Team. Please note there is no specific ESG restriction on the Investment Manager’s decision.

Idea Generation Portfolio Construction & Risk

Creating an inventory of approved ideas Constructing a robust diversified portfolio

House View Idea Selection Implementation

Global collaboration in idea generation Dedicated AIMS team managing portfolio

Idea Evaluation

GRI* Team participation in quarterly meetings & House View Thematic research & generation of ESG-related ideas Evaluation of ideas against ESG considerations at SIG meetings Voting on all holdings – active & passive Active engagement on behalf of investors; exclusions where necessary

Responsibility built-in

Position monitoring

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Robust portfolio construction: building blocks

What we aim to provide

Source: Aviva Investors

MARKET RETURNS

• Bespoke risk premia strategies
• 35-65% risk

OPPORTUNISTIC RETURNS

• Idiosyncratic investment themes
• 10-45% risk

RISK-REDUCING RETURNS

• Protect the portfolio in times of market stress
• 10-45% risk

Aviva Investors: Public

Connected Thinking

Aviva Investors: Public 9

Connected thinking maximises our resources

Source: Aviva Investors as at 31 December 2019. Equities headcount includes the REITs and Japan equities teams as well as 1 outstanding hire in each of the US and Global equities teams. Poland equities excluded.

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Multi-asset and Macro

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Equities

183

Real Assets

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Credit AIMS Rates EMD Implemen- tation team Strategy & Economics Long-only Multi-Asset

AIMS 7 Portfolio managers 19 years average industry experience Economists & strategists

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Solutions

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ESG

Aviva Investors: Public

Connected thinking & responsibility built-in in action: Building Efficiency

Source: Aviva Investors as at 6th January 2020. Position example for illustrative purposes only, not intended to be an investment recommendation.

Building Efficiency - Style Skyline

• Building efficiency is a key mechanism in addressing

climate change

• Long basket
• 10 stocks - Average AHA score: 6.7
• LED producers
• Heating, Ventilation & Air Conditioning
• Building materials
• Energy management & industrial

automation

• Short basket
• 20 stocks - Average AHA score: 4.7
• Electronic components
• Industrial machinery
• Aerospace & Defence
• Building products

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Aviva Investors: Public 11

Connected thinking in action: 5G

Source: Aviva Investors as at 6th January 2020. Position example for illustrative purposes only, not intended to be an investment recommendation.

Investment case:

• Capex to reach $26bn in 2022

(vs $528 in 2018)

• New product cycle requiring new

components, software and services

Equities Real Assets Solutions REITS Global Credit ESG

Connected research platform What led us to the idea:

• Numerous industry

management meetings

• Extensive analysis of impact new

capex cycle will have on market shares and pricing / margin profiles Telecom Telecom equipment Semiconductors Smartphones

MA&M

Aviva Investors: Public

Harnessing quantitative tools with qualitative research

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ESG Insight

Source: Aviva Investors.

Environmental

• Environmental performance
• Natural hazards

Social

• Human capital
• Stakeholder relations
• Supply chain
• Inequality
• Human development
• Gender inequality
• Infrastructure

Governance

• Corporate governance
• Corporate behaviour
• Accounting
• Ease of doing business
• Institutions
• State fragility
• Press freedom

Aviva Investors proprietary ESG model indicators

Corporate Sovereign

• Climate change
• Biodiversity
• Pollution & waste

Aviva Investors: Public

Responsibility built-in

Our heritage: holding companies to account since 1970

Founding member of the Corporate Human Rights Benchmark, Sustainable Stock Exchange and World Benchmarking Alliance Founding signatories of UK Corporate Governance code (1994) & UN Principles for Responsible Investment (2006) Shaping sustainable capital markets roadmap via FSB Task Force for Climate-related Financial Disclosures (TCFD) & EU High Level Expert Group on Sustainable Finance (HLEG)

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Aviva Investors: Public

Responsibility built-in

Voted on 54,335 resolutions at 4,173 shareholder meetings; voted against 27% of management resolutions, including 49% of pay proposals in 2018 Engaged 1,854 companies as part of our stewardship responsibilities in 2018 Case study: proposed and co-led resolution for greater disclosure on BP’s climate change policy

Recent highlights

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Aviva Investors: Public

Our recent awards

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Winner of International Corporate Governance Network Global Stewardship Disclosure Award

Winner of UN Foundation Global Leadership Award RI Award for Innovation and Industry Leadership

Source: Aviva Investors

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Aviva Investors: Public

Portfolio Construction

Aviva Investors: Public

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Robust portfolio construction: protecting capital

Past performance is not a guide to future performance. Source: Aviva Investors as at 31 December 2019. Performance contribution is shown gross of all fees, share class I, mid-to-mid, in EUR, for AIMS Target Return SICAV. Inception date 1 July 2014. Global equities represented by the MSCI All Country World Equity Index (local currency). 10 worst equity months since Fund inception The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

• 8%
• 7%
• 6%
• 5%
• 4%
• 3%
• 2%
• 1%

0% 1% 2% 3% Dec-18 Oct-18 Aug-15 May-19 Jan-16 Feb-18 Sep-15 Jun-15 Mar-18 Aug-19 AIMS Target Return SICAV (gross returns) Global equities

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Aviva Investors: Public

2019 key performance drivers (+9.8%)

Past performance is not a guide to future performance. Source: Aviva Investors as at 31st December 2019. Performance contribution is shown gross of all fees, share class I, mid-to-mid, in EUR, for AIMS Target Return SICAV. Inception date 1 July 2014. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

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• 0.5

0.0 0.5 1.0 1.5 2.0 2.5 3.0 Forward Variance JPY Swaption Short UK Long End Rates US Rates Volatility US Steepener US Data Infrastructure Global Equity Emerging Market Hard Currency US Equities US Rates Per cent

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Macro drivers Investment ideas

2020 themes & investment ideas

Source: Aviva Investors, 31st December 2019. * Implementation for AIMS Target Return. ** Not yet in portfolio

Global growth recovery Supportive monetary policy Geopolitical risks remain

• Supportive for risk assets
• Selective emerging markets
• Carry opportunities
• Lower for longer
• Sustainable investing
• 5G
• Trade war turns to tech
• Populism remains

Implementation*

• Electric Vehicles

Supply Chain**

• Long Semi-Conductors
• 5 Year China Rates
• US Real Yields
• Long US Inflation
• Global Equities
• Brazil – Equities & Rates
• High vs Low Yield Currencies
• Short Asian Currencies
• Long US Government Bonds

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Idiosyncratic drivers Investment ideas

2020 themes & investment ideas – idiosyncratic positions

Source: Aviva Investors, 31st December 2019. * Implementation for AIMS Target Return. ** Not yet in portfolio

Tech developments US election ESG grows in importance

• Supply discipline in memory semiconductors and 5G capex cycle driving growth
• Credit bureaus and insurance brokers becoming data analytics companies
• Shift to services and cloud connectivity improves profitability for industrial

services companies

• Fears over changes to US healthcare regulation have led to a de-coupling

with fundamentals

• Battery and power semiconductor technology progress creates inflection point

in auto and renewables battery demand

• Stocks perceived to be at risk of recession have de-rated significantly, while

defensive characteristics have led consumer staples valuations to diverge from fundamentals

• Record levels of US corporate debt have been overlooked. Significant

divergence of balance sheet strength within the Russell 2000

Implementation*

• Electric Vehicles Supply Chain**
• US Healthcare vs Market
• Semiconductor Oligopoly
• Data Analytics vs MSCI World
• Industrial Services
• Value Yield vs Consumer Staples
• Good Balance Sheet vs Russell 2000

Sector / factor rotation

Aviva Investors: Public

Read our Responsible Investment Annual Review Go to our website Contact us

www.avivainvestors.com

Brett Jackson Managing Director Aviva Investors Pacific Pty Ltd Level 30 Collins Place, 35 Collins Street, Melbourne VIC 3000 Phone: +613 9900 6272 Mobile: +61 (0) 408 124 276 brett.jackson@avivainvestors.com

Other information

Aviva Investors: Public

Fund Performance as of 31 January 2020

2020

Source: Aviva Investors, Lipper, a Thomson Reuters company as 31 January 2020.

• 1. 2014 returns are provided from 1 July 2014 to 31 December 2014.

*Performance is shown net of all fees, Mid to mid, in EUR, unless indicated otherwise. Inception date 1 July 2014. **Performance is shown net of Investment Manager Fees, in AUD. Inception date 1 July 2015. Australian Financial year: 1st July 2019 to 30 June 2020 ***Performance is shown net of Investment Manager Fees, in NZD. Inception date 08 March 2017. New Zealand Financial year: 1st July 2019 to 30 June 2020 Performance is not a guide to future returns. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Fund performance 20141 2015 2016 2017 2018 2019 S.I. Cumulative AIMS Target Return SICAV (gross of fees) 5.0% 5.0% 1.3%

• 2.1%
• 6.3%

9.8% 13.7% ECB Deposit Rate 0.0%

• 0.2%
• 0.4%
• 0.4%
• 0.4%
• 0.4%
• 1.9%

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The Underlying fund EUR SICAV performance* Australian domiciled Feeder Fund $AUD Hedged performance**

Fund performance 3yr 2yr 1yr 6m 3m S.I. AIMS Target Return $AUD (gross of fees) 2.5% 2.59% 8.5% 2.63% 2.5% 2.3% RBA Cash Rate 1.4% 1.3% 1.1% 0.4% 0.2% 1.5%

AIMS Target Return $NZD SICAV*** performance

Fund performance 2yr 1yr 6m 3m S.I. AIMS Target Return (gross of fees) 2.8% 9.6% 5.4% 2.7% 3.4% RBNZ Cash Rate 3.1% 1.3% 0.5% 0.3% 1.6%

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Key strengths

Source: Aviva Investors. Please note there is no specific ESG restriction on the Investment Manager’s decision.

Responsibility built in Robust portfolio construction Connected thinking

• ESG embedded in every stage of the investment process
• ESG thematic investment ideas
• Diversification across broad range of macro and idiosyncratic ideas
• Robust downside protection due to targeted risk reducers
• AIMS at centre of Aviva Investors’ investment platform. All teams

incentivised to contribute investment ideas

Aviva Investors: Public

Investment risk

Key Risk Disclosures

• The value of an investment and any income from it can go down as well as up and can

fluctuate in response to changes in currency exchange rates. Investors may not get back the

• riginal amount invested.

Derivatives risk

• Investment that involves the use of derivatives can be complex and highly volatile.

Derivatives may not perform as expected, which means the investment may suffer significant losses.

Aviva Investors: Public

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The name “Aviva Investors” as used here refers to the global organisation of affiliated asset management businesses operating under the Aviva Investors name. Each Aviva Investors affiliate is a subsidiary of Aviva plc, a publicly‐traded financial services company headquartered in the United Kingdom. Except where stated as otherwise, the source of all information is Aviva Investors as at 31 January 2019. The information in this document is general in nature and has not been designed to take into account the particular circumstances of any investor or class of investors, their investment objectives or needs. Before making any investment based on any information in this document, recipients should consider the appropriateness of the information having regard to their financial situation, objectives, and needs. Investing in the financial products and or services described in this document is not without significant risk, including the risk of delays in the ability to redeem any investment, the risk of loss of capital invested or income expected to be derived, and share, unit or market price fluctuations. Prospective investors are strongly advised to seek their own financial advice about the merits of any investment. Any opinions expressed are based on the internal forecasts of Aviva Investors and should not be relied upon as indicating any guarantee or assurance of return from an investment or strategy managed by Aviva Investors. No part of this document is intended to constitute advice or a recommendation of any nature. The value of an investment can go down as well as up and can fluctuate in response to changes in the foreign exchange rates of the currencies in which underlying investments are denominated. Past performance is not a guide to future performance. Performance figures shown are sourced from Aviva Investors unless indicated otherwise, on the pricing and income reinvestment basis stated. The distribution and offering of shares may be restricted by law in certain jurisdictions. This document is not and should not be taken or construed as a recommendation, solicitation or offer either (i) by anyone in any jurisdiction in which such an offer, recommendation or solicitation is not authorised or (ii) to any person in any jurisdiction to whom it is unlawful to make such an offer, recommendation or solicitation. You are not authorised to redistribute this document nor qualified to make any offer, representation or contract on behalf of Aviva Investors on the basis of this document. Telephone calls to Aviva Investors may be recorded for training or monitoring purposes.

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Aviva Investors: Public

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Aviva Investors Pacific Pty Ltd, a company incorporated under the laws of Australia and holds an Australian Financial Services License number 411458. Its principal place of business is Level 30, 35 Collins St, Melbourne VIC 3000, Australia. IMPORTANT INFORMATION AUSTRALIA: Aviva Investors Pacific Pty Ltd (‘AIPP’, ‘we’, ‘us’, or ‘our’) (ABN 87 153 200 278, AFSL 411458) is the issuer of this document and is wholly responsible for its contents. This document is not a product disclosure statement or a prospectus as these terms are defined in the Corporations Act 2001 (Cth), and is not required to be, and has not been, lodged with or registered by the Australian Securities and Investments Commission. Consequently ASIC does not take any responsibility for its contents. This document is not directed to, and should not be considered by, 'retail clients' (as defined in section 761G of the Corporations Act 2001 (Cth) and applicable regulations). Accordingly, investments in the financial products and services described in this document may only be arranged by AIPP in Australia in circumstances that do not require disclosure to investors under Part 6D.2 or Part 7.9 of the Corporations Act, whether because the recipients of this document are 'wholesale clients’ (as defined in section 761G of the Corporations Act and applicable regulations), or otherwise. The strategies in each fund may invest a significant proportion of its assets in derivatives contracts with the aim of gaining exposure to an underlying asset class at lower cost than owning the asset class outright, and or of gearing the strategies exposure to that asset class. The risk involved in this approach may be considerable and may not be suitable for some investors. No part of this document is intended to constitute advice other than general advice (as defined in section 766B(4) of the Corporations Act), or make a recommendation of any nature. The distribution and offering of financial products and services is restricted by law in many jurisdictions. This document is intended only for use in Australia and New Zealand and should not be relied on in any other jurisdiction. IMPORTANT INFORMATION NEW ZEALAND: This document is not a product disclosure statement for the purposes of the Financial Markets Conduct Act 2013 (the FMCA) and does not contain all the information typically included in such offering documentation. This document does not constitute a “regulated offer” for the purposes of the FMCA and, accordingly, there is neither a product disclosure statement nor a register entry available in respect of the offer. Interests in the Funds may only be offered in New Zealand in accordance with the FMCA and the Financial Markets Conduct Regulations 2014.

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