1. Slide 0 Ingenious Asset Managementwww.ingeniousmedia.co.uk Economic Overview & Portfolio Positioning Philip Todd 9th September 2014

2. Slide 1 Ingenious Asset Managementwww.ingeniousmedia.co.uk Economic Outlook - Period of Transition Economic recovery in the US and UK gaining traction High debt levels will continue to restrict growth. Central bank policy divergence between UK & US and Europe & Japan. Global downward debt/deflation spiral avoided – for now. Short-term rates will rise but remain below inflation.

3. Slide 2 Ingenious Asset Managementwww.ingeniousmedia.co.uk Market Outlook Transition from ultra-loose monetary policy could lead to increased market volatility Bond yields can be expected to rise. Higher bond yields may undermine highly rated equities. Focus on a medium term strategy – ignore the short term noise: −No conventional bonds −Concentrated portfolio of high quality equity −Reduce volatility with non-correlated assets

4. Slide 3 Ingenious Asset Managementwww.ingeniousmedia.co.uk DEBT REMAINS A MAJOR ISSUE… Source: FactSet Government Debt: General government gross financial liabilities as a percentage of GDP Economic Outlook Is Still Challenging Source: FactSet, Ingenious Asset Management …AND REAL WAGES HAVE CONSISTENTLY FALLEN SINCE THE FINANCIAL CRISIS… UK General Election

5. Slide 4 Ingenious Asset Managementwww.ingeniousmedia.co.uk …THE COMBINATION OF WHICH CONTINUES TO RESTRICT GROWTH RATES. Growth Remains Subdued Source: FactSet, IMF World Economic Outlook Report WE EXPECT NEGATIVE REAL INTEREST RATES WHILST GROWTH IS SLOW AND UNEMPLOYMENT REMAINS HIGH. Source: FactSet, IMF World Economic Outlook Database

6. Slide 5 Ingenious Asset Managementwww.ingeniousmedia.co.uk QE AND LOW INTEREST RATES SUGGEST INFLATION IS A “REAL” THREAT… Source: FactSet Debt Reduction Will Be Aided By Inflation Inflation Rate 01%2%3%4%5%6%7%8%9%10% Years 1100.099.098.097.196.295.294.393.592.691.790.9 2100.098.096.194.392.590.789.087.385.784.282.6 3100.097.194.291.588.986.484.081.679.477.275.1 4100.096.192.488.885.582.379.276.373.570.868.3 5100.095.190.686.382.278.474.771.368.165.062.1 6100.094.288.883.779.074.670.566.663.059.656.4 7100.093.387.181.376.071.166.562.358.354.751.3 8100.092.385.378.973.167.762.758.254.050.246.7 9100.091.483.776.670.364.559.254.450.046.042.4 10100.090.582.074.467.661.455.850.846.342.238.6 25100.078.061.047.837.529.523.318.414.611.69.2 50100.060.837.222.814.18.75.43.42.11.30.9 100100.037.013.85.22.00.80.30.10.0 …EVEN MODEST INFLATION ERODES WEALTH AND DEBT OVER TIME Source: Ingenious Asset Management - Loss greater than 25% of original capital - Loss greater than 50% of original capital GROW DEFAULT DEBASE

7. Slide 6 Ingenious Asset Managementwww.ingeniousmedia.co.uk Market Outlook - Bonds UK 10 Yr Avg Yield (prior 2008): 6.7% US 10 Yr Avg Yield (prior 2008): 5.9% Source: Bloomberg YIELDS HAVE BEGUN RISING FROM HISTORICAL LOWS… …WHICH COULD LEAD TO A REVERSE OF FLOWS FROM BONDS

8. Slide 7 Ingenious Asset Managementwww.ingeniousmedia.co.uk Equities Have Performed Relatively Well THE SEARCH FOR RETURN HAS SUPPORTED EQUITY INDICES… 1 year returns 01/08/2013 – 31/07/2014 Source: Morningstar Direct, Ingenious Asset Management

9. Slide 8 Ingenious Asset Managementwww.ingeniousmedia.co.uk An Increase In Valuation Not Value …WHICH HAVE RISEN ALONGSIDE INCREASES OF QE… Source: Bloomberg, St Louis Fed, Ingenious Asset Management QE Federal Reserve expands balance sheet Source: FactSet … BUT HAVE DISPROPORTIONATELY LAGGED EARNINGS

10. Slide 9 Ingenious Asset Managementwww.ingeniousmedia.co.uk Caution Still Required VALUATION RATINGS NOW SUGGEST CAUTION IS REQUIRED… … AND PROFIT MARGINS MAY NOT BE SUSTAINABLE. Source: Robert Shiller Source: FactSet Wages Depreciation Interest costs Taxation

11. Slide 10 Ingenious Asset Managementwww.ingeniousmedia.co.uk Portfolio Construction - Bonds NO CONVENTIONAL BOND HOLDINGS Bond returns were boosted by QE yield compression Limited capital protection as yields normalise. Limited protection from inflation Concerns over credit quality Concerns over liquidity Low duration index-linked bonds the exception

12. Slide 11 Ingenious Asset Managementwww.ingeniousmedia.co.uk ABSOLUTE RETURN FUNDS PROVIDE AN ALTERNATIVE TO BONDS Targeted returns in excess of cash and inflation Protection from bond and equity market volatility Low correlation with other asset classes Source: Morningstar Direct Absolute Return Funds & UK Commercial Property UK COMMERCIAL PROPERTY Returns lag economic recovery Pockets of rental increases outside London Sound income return

13. Slide 12 Ingenious Asset Managementwww.ingeniousmedia.co.uk M&G Global Dividend Fund −Dividend yield = 3.5% −Dividend growth since launch = 9% −Long term return can be expected to be 3.5% + 9% = 12.5% No guarantees that dividends will be increased, however manager’s philosophy and track record provide a high degree of comfort. Protection from inflation Protection from normalisation of bond yield Risk of long-term permanent loss of capital low Risk of short-term quotational loss high Source: Morningstar Direct LONG-TERM RETURN FROM EQUITIES = DIVIDEND YIELD + DIVIDEND GROWTH Portfolio Construction - Equities

14. Slide 13 Ingenious Asset Managementwww.ingeniousmedia.co.uk Important Information This presentation relates to the various services (the Services) offered by Ingenious Asset Management Limited (Ingenious Asset Management) and is issued by Ingenious Asset Management, which is authorised and regulated in the UK by the Financial Conduct Authority under the Financial Services and Markets Act 2000 (FSMA). Nothing in this presentation constitutes investment, tax, legal or other advice by Ingenious Asset Management. If you have any doubts as to the content of this presentation and/or any action you should take, you are strongly recommended to seek independent financial advice from an independent financial adviser authorised under the FSMA with the requisite knowledge of the Services mentioned. Decisions to invest should be made on the basis of the relevant Terms and Conditions which are available from Ingenious Asset Management, and on the basis of any advice you may choose to receive from your independent financial advisor. No representation is made or warranty given as to the accuracy, completeness or achievability of any projections, views, statements or forecasts, which are illustrative. The projections, views, statements and forecasts herein are based upon various assumptions and estimates which involve elements of subjective judgment and analysis and which are subject to uncertainties and contingencies; actual results could differ materially from those set forth in such projections, views, statements and forecasts. Past performance is not a guide to future performance and may not be repeated. You may not get back the full amount you invest. This document may not be copied or communicated to any other person without the prior written consent of Ingenious Asset Management. Telephone calls may be recorded.