FOR PROFESSIONAL ADVISERS ONLY Baring Asset Management Barings at a glance Sterling version March 2015 Baring Asset Management Limited 155 Bishopsgate, London, EC2M 3XY Tel +44 (0)20 7628 6000 Fax +44 (0)20 7638 7928 www.barings.com Authorised and regulated by the Financial Conduct Authority Baring Asset Management • An international investment management company with a history dating back to 1762 • Operating in 11 countries with professionals from 35 different nations • Providing investment management services in emerging and inefficient markets, asset allocation and specialist fixed income to investors worldwide • Working in partnership with many of the world’s largest financial institutions • Owned by Massachusetts Mutual Life Insurance Company (MassMutual) • Current assets under management £26.9 billion • 123 investment professionals • Winner of the Queen’s Award for Enterprise: International Trade 2010 London, Boston, Dubai, Frankfurt, Geneva, Hong Kong, Kaohsiung, Paris, San Francisco, Seoul, Taipei, Tokyo, Toronto Assets as at 28 February 2015, Investment Professionals as at 28 February 2015 2 Examples of our clients and partners around the world North America UK Korea • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • California PERS City of Dallas Colorado PERA Excel Funds Management Inc. Houston Municipal Employees’ Pension System Kansas PERS Kentucky TRS Miami University Foundation MassMutual New York State Common Fund PERSIdaho Teacher Retirement System of Texas Tennessee Consolidated Retirement System Europe and Middle East • • • • • • • • • • • • • Allfunds Bank Allianz BAWAG BNP Citi Commerzbank Cortal Consors Deutsche Bank Generali Julius Baer Pictet Standard Chartered UBS Aberdeen City Council Aberystwyth University Devon County Council Doosan Babcock Energy Pension Scheme Dorset County Council Friends Provident Fuller Smith & Turner Pension Plan Hargreaves Lansdown Highlands & Islands Airports Pension Scheme Sharp Old Mutual Wiltshire County Council Zurich International Asia • • • • • • • • • • • • Bank of China Bank of China Investment Management (PRC) Cathay Life Citi Chinatrust First Commercial Bank Hang Seng Bank HSBC National Council for Social Security Fund (PRC) Standard Chartered Bank Sun Life Asia Zurich Life Hana Financial Group Hanwha Life Hi Asset Management Hyundai Securities KB Financial Group Korea Post Korea Teachers Credit Union Korea Teachers Pension Kyobo Life MetLife Insurance of Korea Mirae Asset Securities National Pension Service Samsung Life Samsung Securities Shinhan Financial Group Japan • • • • • • • • • • Bridgestone Pension Fund Hiroshima Bank Hitachi Pension Fund Ichiyoshi Securities ING Life Japan Panasonic Pension Fund Sanyo Rengo Pension Fund Shinsei Bank Sumitomo Rubber Rengo Pension Fund Taisho Pharmaceutical Group Pension Fund • Tokyo Electron Pension Fund • Toyota Motor Pension Fund Clients named are those who consent solely to disclosure of their name for the purposes of marketing to other existing and potential institutional clients. By disclosure of their names, such clients neither approve nor disapprove nor endorse our services, products or performance. March 2015. 3 Diversity of assets under management Total assets – £26.9 billion Clients by Type 42% 18% Pension Funds Distributor Platforms & IFAs Clients Assets by Origin 4.9 16% Corporates & Insurance 4.4 11% Sovereign Wealth 3.0 7% Private Banks & Fund of Funds 1.8 4% 2% Charities Investment Companies 1.0 0.5 100% Assets as at 28 February 2015 Total 35% Asia ex Japan 9.5 11% Europe ex UK 3.0 9% Japan 2.4 2% MEAC 0.5 18% North America 4.9 25% United Kingdom 6.6 100% Total 11.3 26.9 26.9 4 Diversity of assets under management Total assets – £26.9 billion Clients by Product 53% 29% 18% Equities Fixed Income Multi Asset Clients Assets Invested 42% Equities 11.3 29% Fixed Income 7.7 18% Multi Asset 4.9 10% Active Passive Cash 2.7 14.3 7.7 4.9 1% Assets as at 28 February 2015 0.3 5 Diversity of assets under management Specialist assets – £19.0 billion Clients Assets Invested Equities – £11.3 billion Japan 6% Clients Assets Invested Fixed income – £7.7 billion North America 5% Japan 1% Asia 48% North America 30% Asia 31% Europe 27% EMEA 4% Latin America 2% Assets as at 28 February 2015 EMEA 12% Europe 31% Latin America 3% 6 Equity investment process Sourcing ideas • High conviction ideas generated from Barings’ diverse pool of global investors Researching companies • Finding unrecognised growth on a three to five year horizon Constructing portfolios • Quality, Growth, Upside • High conviction, high active share • Integrated risk analysis Monitoring portfolios • Ongoing monitoring to ensure consistency with our philosophy and process 7 Fixed income investment process Research Scenarios Reaction functions and trend growth Scenario Forecasts (1) Identification of what theme is discounted by market Scenario Forecasts (2) Political surprises to the discounted economic environment Scenario Forecasts (3) Portfolio Construction & Implementation Fixed Income Portfolio We use scenarios to avoid the risks inherent in single point forecasting 8 Multi Asset investment process Identify best asset classes 10 year optimal strategy RISK MANAGEMENT Start with blank sheet of paper Anticipate and respond to events: Dynamic Allocation Choose the best investments 9 Investment Management Platform KEN LAMBDEN* Chief Investment Officer INVESTMENT PROCESS James Ross* EQUITIES Jean-Louis Scandella* HEAD OF IMA (INVESTMENT MANAGER ASSISTANT) Tony Flaherty GLOBAL FIXED INCOME Alan Wilde* CIO ASIA EQUITIES | FIXED INCOME | MULTI ASSET Wilfred Sit* SPECIALIST FIXED INCOME Ece Ugurtas* MULTI ASSET Marino Valensise* CIO Korea EQUITIES | FIXED INCOME John Park* 123 Investment Professionals** *Members of the Investment Committee ** Investment Professionals as at 28 February 2015 10 Baring Asset Management’s Investment resources Portfolio Construction Groups Multi Asset & Active/Passive World/International Equity Global Bonds ASSET ALLOCATION RESEARCH European Equity Small Cap Equity EMD & Credit EQUITY RESEARCH Korea Bonds FIXED INCOME & CURRENCY RESEARCH Global Emerging Market Equity Korea Equities Asia & China Equity EMEA & Frontiers Equity Natural Resources Structured by research and portfolio construction groups 11 Baring Asset Management Group staff Staff by role Staff by location Investment professionals 123 Investment 106 Operations 14 Infrastructure 3 Other professionals 456 Investment 21 Operations 106 London 372 Asia 167 Hong Kong 67 Seoul 53 Taipei 24 Kaohsiung Tokyo 2 21 EMEA 22 Infrastructure 98 Frankfurt IT and Change Management 89 Paris 4 Marketing & Communications 38 Dubai 2 Geneva 2 Sales/Client Service Internal Audit TOTAL As at 28 February 2015 104 5 584 14 North America Boston 23 20 San Francisco 2 Toronto 1 TOTAL 58412 Recent awards 2015 Korea Fund Award by KG Zeroin Baring Hanaro Bond Fund (Best Fixed Income Fund) Taipei Foundation of Finance/Bloomberg Baring Asia Balanced Fund (Best Fund over 10 years Lipper Awards 2015 Baring Europe Select Trust GBP Inc (Best Fund over 10 years, Equity Europe Small and Mid Caps) Taiwan 2014 Korea Fund Awards (Best Asset Management Company) Domestic Small Cap Equity Lipper Awards 2014 Baring European Equity Fund (Best Fund over 5 years, Equity Europe) 2014 Best Korea equities manager, mid-small cap Baring Asset Management Korea Baring Europe Select Trust GBP Inc (Best Fund over 10 years, Equity Europe Small and Mid Caps) Austria, Europe, France, Germany , Hong Kong, Switzerland, Taiwan, UK Baring German Growth Trust GBP Acc (Best Fund over 10 years, Equity Germany) Austria, Europe, France, Germany, Switzerland Baring German Growth Trust GBP Acc (Best Fund over 5 years, Equity Germany) Austria, Europe, France, Germany, Switzerland Baring German Growth Trust GBP Acc (Best Fund over 3 years, Equity Germany) UK Baring Korea Trust GBP Acc (Best Fund over 5 years, Equity Korea) Austria, Europe, France, Germany, Switzerland, UK 13 Morningstar ratings Morningstar Rating™ MULTI ASSET PRODUCTS Baring RP Div 40 Fdr Bd Bal (1) EQUITY PRODUCTS Baring Asia Balanced Fund (Class A USD) Baring Europe Select Trust (Class A GBP) Baring German Growth Trust (Class A GBP) Baring Global Agriculture Fund (Class I GBP) Baring MENA Fund (Class A USD) Baring Value Equity (A1) Baring Value Style Equity (C) BOND PRODUCTS Baring Hanaro Bond Baring High Yield Bond Fund (Class A USD) Baring High Yield Bond Fund (Class I USD) Baring Strategic Bond Fund (Class I GBP) BAM World Bond & Currency Fund (Monthly distribution) Four Star = in top 32.5% of all UK and Offshore funds Baring Dynamic Asset Allocation Fund (Class I GBP) Baring Dynamic Capital Growth Fund (Class I GBP) Baring High Dividend Bal 60 Eq Bal (A) Baring Targeted Return Fund (Class GBP) EQUITY PRODUCTS Five Star = in top 10% of all UK and Offshore funds EQUITY PRODUCTS EQUITY PRODUCTS Baring Europe Select Trust Baring European Equity Fund Baring Europe Select Trust (Class I GBP) Baring German Growth Trust (Class I GBP) Baring High Dividend Equity (A) Baring Korea Trust (Class I GBP) Baring Value Style Equity (A) MULTI ASSET PRODUCTS MULTI ASSET PRODUCTS Morningstar OBSR Analyst Rating™ Baring ASEAN Frontiers Fund (Class A USD) Baring Asia Growth (Class A USD) Baring Asia Manufacturing Fund Baring China A-Share Fund Plc (Class A USD) Baring China Select Fund (Class A USD) Baring China Select Fund (Class I USD) Baring Eastern Europe Fund (Class A USD) Baring Eastern Trust (Class A GBP) Baring Eastern Trust (Class I GBP) Baring Educare Tuition Equity Baring European Growth (Class A GBP) Baring European Growth (Class I GBP) Baring Global Growth Trust (Class A GBP) Baring Global Growth Trust (Class I GBP) Baring Global Resources (Class A USD) Baring Global Select Fund (Class A USD) Baring Hong Kong China Fund (Class A USD) Baring Japan Growth Trust (Class A GBP) Baring Japan Growth Trust (Class I GBP) Baring Korea Trust (Class A GBP) Baring Latin America Fund (Class A USD) Baring Russia Fund (Class A USD) Baring UK Growth Trust (Class I GBP) BOND PRODUCTS Baring Emerging Markets Debt Local Currency Fund (Class I USD) Baring Global Aggregate Bond Fund (Class A USD) Baring International Bond Fund (Class A USD) Baring Strategic Bond Fund (Class A GBP) BAM World Bond Active Open EQUITY PRODUCTS Baring Eastern Europe Fund Baring Russia Fund Copyright © Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. As at 28 February 2015. Three Star = in top 67.5% of all UK and Offshore funds 14 About MassMutual An overview • Founded in 1851 • Active commitment to the mutual ownership structure – Advantage of a long term investment horizon • Worldwide insurance in force of £372.7bn (US$579.0bn) • Assets Under Management £418.8bn (US$650.6bn*) – Includes institutional, mutual funds and alternative assets • Large network of employees and sales representatives around the world Source: MassMutual Financial Group as at 31 December 2014 *Assets Under Management include assets and certain external investment funds managed by MassMutual subsidiaries, including OppenheimerFunds Inc., Babson Capital Management LLC, Baring Asset Management Limited, and Cornerstone Real Estate Advisers LLC. 15 MassMutual and Baring Asset Management Strong ownership • Complementary product specialisation – MassMutual strengths are in US equity, fixed income and alternatives – Barings strengths are in emerging and inefficient markets, asset allocation & specialist fixed income • Opportunity for enhanced distribution of products – MassMutual offers extensive US distribution – Baring Asset Management offers international multi channel options • Access to product innovation – Access to product development opportunities of the broader organisation 16 250 years of open minds and uncommon perspectives. The global nature of today’s economy means the intelligent and active asset manager needs to look across frontiers and make more connections than ever before. This requires a particular type of investor and a particular corporate culture. One that places a premium on working across borders; that values great insight and foresight; and one that rewards innovation. At Barings we have a 250 year history of considering complex but potentially rewarding opportunities. We put this thoughtfulness into understanding and delivering sustainable returns for our clients outside of the tried and tested or obvious options. The challenge of working in markets where information is hard to find and interpretation and forethought can add real value is one that we relish. 17 Follow Barings Twitter: http://twitter.com/Barings YouTube: http://www.youtube.com/user/baringAM LinkedIn: Emerging Markets: Investment community for global investors http://bit.ly/Barings Internet: www.barings.com On our mobile App: Search “Barings” Email: uk.wholesale@barings.com | institutional.sales@barings.com | asia.sales@barings.com germany.sales@barings.com | middle.east@barings.com | korea.sales@barings.com 18 Important Information For Professional Investors/Advisers only. It should not be distributed to or relied on by Retail Investors. This document is approved and issued by Baring Asset Management Limited, authorised and regulated by the Financial Conduct Authority. The information in this document does not constitute investment, tax, legal or other advice or recommendation. It is not an invitation to subscribe and is for information only. Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance. Changes in rates of exchange may have an adverse effect on the value, price or income of an investment. There are additional risks associated with investments (made directly or through investment vehicles which invest) in emerging or developing markets. Investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth. We reasonably believe that the information contained herein from 3rd party sources, as quoted, is accurate as at the date of publication. The information and any opinions expressed herein may change at any time. Companies and employees of the Baring Asset Management group may hold positions in the investment(s) concerned. Lists of locations, or location indicators on maps, are non-exhaustive. They may include locations where Barings has an office and/or where Barings has appointed a local organisation or individual to act on its behalf for certain aspects of its business. Version 11/SD Complied (London) March 2015 (M0315/42) 19