1. Strategies for volatile times The Aviva name and logo are used under licence from the Aviva plc group July 2010 Stuart Fechner Distribution Development Manager

2. Agenda investing: with your head or your heart? market perspective: what is really ‘normal’? solutions: strategies for market volatility

3. Investing with your head or your heart - the cycle of market emotions Buy high? Sell low?

4. Market perspective - what’s normal? s Normal?

5. Source: JP Morgan 2008 - 43.0% 2009 39.6% All Ordinaries Index (from 1900 to 2008) Rebounding from negative markets Market perspective - what’s normal?

6. You can’t participate if you’re not invested (S&P/ASX All Ordinaries Index) Participating in the rebound

7. Missing the best days (Average annualised return over 15 years) Source: Datastream and Investment Solutions as at 31 December 2008. If you’re out of the market, what might you miss?  some negative days or months  some very positive days There are more positive days/months than negative ones on the strength of market rebounds. Timing the market is risky

8. 1. cash 2. diversification 3. dollar cost averaging 4. regular rebalancing to benchmark Solutions – strategies for volatility

9. 1. Cash The highest asset class returns by year The best asset class is hard to pick

10. 1. Cash  rarely the best performer, but also rarely the worst  a greater consistency of returns  does not provide a negative return  can be a short term parking bay  allows investors to sleep at night

11. Feb 2009: $100,000 invested provides $2,800 of income May 2010:$100,000 invested provides $5,950 of income Note – term deposit rates as provided by St George Bank and offered via the Navigator platform 1. Cash Interest rate rises - positive for cash

12. A broad range of term deposits including major banks Innovative high yield CMT A range of cash and defensive funds Capital protected funds and fixed rate annuities 1. Cash A choice of defensive investment options

13. . 1. Cash - options on the Navigator platform

14. Strategies The parking bay to meet a designated need at a point in time (e.g. house purchase) Dollar-cost averaging dollar cost averaging by investing some now and holding the remainder in cash to invest at regular intervals Make investors comfortable actively manage their investment strategy, risk tolerance and help them sleep well at night Product solutions The parking bay term deposits and CMTs* Dollar-cost averaging CMTs and growth funds/shares/ capital protected funds Make investors comfortable term deposits, CMTs, capital protected funds, fixed rate annuities *CMTs – cash management trusts 1. Cash - considerations and strategies

15. Why? not enough to retire on (still require some capital growth) a long term life expectancy (growth investment horizon) Most people cannot afford to totally avoid equity markets! 1. Cash - short term help not a long term solution

16. Use cash as a base, but… spread investments across a range of asset classes Benefits 1. diversify your single sector risk and reduce the potential downside 2. increase your opportunity of having exposure to the best performing asset class 3. smooth the ride and level of shorter term ‘ups and downs’ achieving more consistent returns 2. Diversification

17. Dive in Possible great rewards, but potential high risks! Dip your toe and test the water A more gradual and measured approach. Reduced risks but with patience rewards can still be delivered. The strategy – dollar cost averaging 3. Dollar cost averaging

18. We don’t know what the market will do, so why try to time it? How it works Average cost of 1,150 units = $8.70 (1,150 x $8.70 = $10,000) Real average unit price = $9.20 3. Dollar cost averaging - regular and gradual investment

19. Progressive Switching Facility Invest fixed amounts on a monthly basis from a range of seven cash funds into nominated funds (monthly) Progressive Investment Facility Invest fixed amounts on a regular basis from your cash account into nominated funds (monthly or quarterly basis) Regular Investment Facility Direct debit from a nominated bank account (minimum $200 per deposit) Provides the flexibility to suit needs 3. Dollar cost averaging - choice of strategies

20. Easy platform implementation through re-weighting A fundamental & consistent approach Buy low Sell high 4. Regular re-balancing back to benchmark

21. market volatility and economic conditions are making some clients nervous cash investments can assist in the short term access a range of cash options for your various clients’ needs a flexible range of options exist to move from cash and re-enter investment markets when ready Conclusion

22. Disclaimer NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465, Navigator Australia Limited ABN 45 006 302 987, AFSL 236466 and Norwich Union Life Australia Limited ABN 34 006 783 295, AFSL 241686, form part of the Aviva Australia group and are ultimately owned by the National Australia Bank group (‘NAB’). This presentation is issued by Aviva Australia group. The information is believed to be current as at date of publication and while every attempt has been made to ensure the accuracy and reliability of the information, it is not guaranteed in any way. The information is general in nature and does not take into account any particular person’s situation. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice. Before making an investment decision on the basis of the information, a prospective investor needs to consider, with or without the assistance of a financial adviser, whether the product is appropriate for their particular needs, objectives and financial circumstances. Applications to invest in a financial product or service must be made by completing the application form attached to the applicable Product Disclosure Statement or Investor Directed Portfolio Service Guide. The Aviva name and logo are used under licence from the Aviva plc group.

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