AVIVA INVESTORSINVESTING IN GLOBAL CONVERTIBLEBONDS FOR ABSOLUTE RETURNSJustin Craib-Cox, Fund ManagerDecember 2011The doc...
THE CONVERTIBLE BOND MARKET                              2
Global convertibles presentationCONVERTIBLE BOND BEHAVIOUR                                              Convertible bond  ...
Global convertibles presentationCONVERTIBLES ARE A DIVERSE $495 BILLION MARKETBreakdown by region of issue                ...
BENEFITS OF OWNING CONVERTIBLES                                  5
Global convertibles presentationASYMMETRIC RETURNS – YEARLY PROFILE (1994 TO 2010) 30%                                    ...
Global convertibles presentationCONVERTIBLE BOND ATTRIBUTES PROVIDE DIVERSIFICATION Not equities but                      ...
Global convertibles presentationKEY ELEMENTS OF CONVERTIBLE BOND RETURNS  Performance attribution from September 2000 to  ...
Global convertibles presentationHIGHER RISK-ADJUSTED RETURNSGLOBAL CONVERTIBLES VS. GLOBAL EQUITIESMore return            ...
WHY BUY CONVERTIBLES NOW?                            10
Global convertibles presentationEFFICIENT FRONTIER ANALYSISIMPROVED RISK/RETURN PROFILE OF A PORTFOLIOConvertibles expand ...
Global convertibles presentationCONVERTIBLE BONDS IN VOLATILE MARKETSVIX Index                                            ...
Global convertibles presentationOUTLOOK FOR THE CONVERTIBLE BOND MARKETWe believe that:– Convertibles are particularly att...
CONVERTIBLES: ACCESS EQUITIES EXPOSURE WITH A LOWERRISK PROFILE   Why convertible bonds now? We believe that:   – Converti...
CONVERTIBLES: ABSOLUTE RETURN APPROACH Reduce volatility of returns while capturing positive risk / reward profile of the ...
APPENDIX           16
Global convertibles presentationAVIVA INVESTORS – GLOBAL CONVERTIBLES FUNDPERFORMANCEPerformance versus benchmark to 31 Oc...
Global convertibles presentationPORTFOLIO CHARACTERISTICSAVIVA INVESTORS – GLOBAL CONVERTIBLES FUNDRegional breakdown     ...
Global convertibles presentationAVIVA INVESTORS – GLOBAL CONVERTIBLES ABSOLUTE RETURNFUNDPERFORMANCEFund performance to 31...
Global convertibles presentationPORTFOLIO CHARACTERISTICSAVIVA INVESTORS – GLOBAL CONVERTIBLES ABSOLUTE RETURN FUNDRegiona...
Global convertibles presentationFAIR VALUE OVER THE PAST 10 YEARS                           8                             ...
Global convertibles presentationWEEKLY FAIR VALUE OVER THE PAST 3 MONTHS                             6                    ...
Global convertibles presentationCONVERTIBLE NEW ISSUANCEAnnual Convertible Issuance 1998-2011          220          200   ...
Global convertibles presentationDELTA CHARACTERISTICSAVIVA INVESTORS – GLOBAL CONVERTIBLES FUNDFund delta                 ...
Global convertibles presentationKEY CHARACTERISTICS                                                                       ...
Global convertibles presentationBIOGRAPHIES                            David Clott, CFA                                   ...
Global convertibles presentationBIOGRAPHIES                            Justin Craib-Cox                                   ...
Global convertibles presentationBIOGRAPHY                            Keith Kelsall, CFA                            Client ...
Global convertibles presentationSHARE CLASSESAVIVA INVESTORS – GLOBAL CONVERTIBLES FUND Fund managers:                    ...
Global convertibles presentationSHARE CLASSES AVIVA INVESTORS – GLOBAL CONVERTIBLES ABSOLUTE RETURN FUND Fund managers:   ...
Global convertibles presentationIMPORTANT INFORMATIONExcept where stated as otherwise, the source of all information is Av...
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Aviva

  1. 1. AVIVA INVESTORSINVESTING IN GLOBAL CONVERTIBLEBONDS FOR ABSOLUTE RETURNSJustin Craib-Cox, Fund ManagerDecember 2011The document is for investment professionals only. It is not to be viewed by or used with retail clients.
  2. 2. THE CONVERTIBLE BOND MARKET 2
  3. 3. Global convertibles presentationCONVERTIBLE BOND BEHAVIOUR Convertible bond Bond Floor Equity Value Price Equity Price Bond-like Hybrid Equity-like The equity option has little The convertible has “hybrid” The equity option is “in the value. The convertible qualities. This is the interesting money” and so is valuable. behaves like an underlying point where equity and bond The convertible behaves corporate bond characteristics overlap like the equityFor illustrative purposes only 3
  4. 4. Global convertibles presentationCONVERTIBLES ARE A DIVERSE $495 BILLION MARKETBreakdown by region of issue S&P credit rating breakdown by issuer USA 47% AAA 3% Europe 27% AA 1% A 13% Asia ex-Japan 10% BBB 17% Japan 10% Sub-investment grade 22% Other markets 4% Not rated 45%Breakdown by sector of issuer 16% 14% 12% 10% 8% 6% 4% 2% 0%Source: UBS as at 13 October 2011Convertibles = UBS Global Convertible Bond Index 4
  5. 5. BENEFITS OF OWNING CONVERTIBLES 5
  6. 6. Global convertibles presentationASYMMETRIC RETURNS – YEARLY PROFILE (1994 TO 2010) 30% Historical studies of calendar year returns 70% for convertible bonds and equities have 20% shown that: 19% 15% 10% – When equity markets have risen, the convertible bond market has risen, on 0% average, by 70% of the rise in equity Average Positive Return Average Negative Return prices-10% -12% – More importantly, when equity markets-20% -23% have fallen, convertible bonds have only fallen by, on average, 48% of the drop in 48% equity prices-30% UBS Global Convertible Bond Index MSCI World TR GrossSource: Bloomberg & Aviva Investors. 31 December 1993 – 31 December 2010Stocks = MSCI AC World Daily TR Gross (USD); Convertibles = UBS Global Convertible Bond Index (USD)Past performance is not a guide to the future 6
  7. 7. Global convertibles presentationCONVERTIBLE BOND ATTRIBUTES PROVIDE DIVERSIFICATION Not equities but Optionality provides asymmetry and a different risk set equity options Population of 60-70% of the issuers in the UBS Global Convertibles index do issuers not issue conventional corporate bonds. Other Independent supply and demand, price relative to fair value are factors among other major differencesConvertible bond attributes provide a very different risk/return outcome than anequity/credit mix 7
  8. 8. Global convertibles presentationKEY ELEMENTS OF CONVERTIBLE BOND RETURNS Performance attribution from September 2000 to – Equities have driven approximately 50% July 2010 (based on monthly returns) of return, credit 30% and convertible 60% specific attributes around 20% 50% – Other factors include convertible bond 40% specific factors such as volatility and supply and demand 30% – Convertibles can be seen as a good 20% diversifier within a balanced portfolio 10% 0% Credit Equities OtherSource: Bloomberg & Aviva Investors as at 31 July 2010Credit = Barclays Capital Global Aggregate Corporate Index, Equities = MSCI AC World Daily TR Gross USD Index, Convertibles = UBS GlobalConvertible Bond Index 8
  9. 9. Global convertibles presentationHIGHER RISK-ADJUSTED RETURNSGLOBAL CONVERTIBLES VS. GLOBAL EQUITIESMore return Less risk Annualised Return Annualised Volatility (10 years) 20 % 10% 10 8% 0 UBS Global Convertible Bond Index 6% MSCI World TR Gross 4% 2% 0% 3 years p.a. 5 years p.a. 10 years p.a. -2% UBS Global Convertible Bond Index MSCI World TR GrossSource: Bloomberg & Aviva Investors, performance shown as at 30 September 2011Performance is shown for the UBS Global Convertible Bond Index (USD) and MSCI AC World Daily TR Gross USD IndexPast Performance is not a guide to the future 9
  10. 10. WHY BUY CONVERTIBLES NOW? 10
  11. 11. Global convertibles presentationEFFICIENT FRONTIER ANALYSISIMPROVED RISK/RETURN PROFILE OF A PORTFOLIOConvertibles expand the efficient frontier Portfolio mix for the efficient frontier 100% 100% 9.6% 90% 90% 9.4% 80% 80% 70% 70% 9.2% 60% 60% 9.0% 50% 50% 40% 40% 8.8% 30% 30% 8.6% 20% 20% 10%Return 8.4% 10% 0% Weight Weight 4.3% 4.5% 5.5% 7.3% 9.3% 11.5% 0% 8.2% Risk 7.28% 7.50% 8.00% 8.50% 9.00% 9.51% Converts Bonds Return 8.0% Converts Bonds 100% 100% 7.8% 90% 90% 7.6% 80% 80% 70% 70% 7.4% 60% 60% 7.2% 50% 50% 7.0% 40% 40% 3% 8% 13% 30% 30% Risk 20% 20% Including Converts Excluding Converts 10% 10% 0% Weight 0% Weight 4.5% 6.3% 10.4% 15.0% 16.8% 7.05% 7.50% 8.00% 8.50% 8.69% Risk Return Bonds Stocks Bonds StocksEfficient frontier for stocks (S&P500 index) & bonds (BoAML Corp. & Govt. Master Index B0A0), with and without convertibles (BoAML AllTraditional Convertibles V0A0) as at 31 March 2011Source: Bank of America Merrill Lynch Convertible Research (12/1989-03/2011) 11
  12. 12. Global convertibles presentationCONVERTIBLE BONDS IN VOLATILE MARKETSVIX Index – Higher trending volatility benefits convertible bonds valuations as the equity70 option takes on value6050 – Implied volatilities of convertible bonds are longer-term than the VIX index4030 – If short-term volatility is sustained at these20 higher levels over a reasonable period of time, longer-term volatility gradually rises10 benefiting convertible bond valuation 0 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10Volatile markets benefit convertible valuationsSource: Bloomberg as at 31 October 2011 12
  13. 13. Global convertibles presentationOUTLOOK FOR THE CONVERTIBLE BOND MARKETWe believe that:– Convertibles are particularly attractive given the current market volatility – The embedded option is more valuable – The short duration nature of the asset class adds strength to the defensiveness of the bond component– The convertible market is now theoretically cheap– This should all combine to produce good results for convertibles going forwardConvertibles are still an attractive asset class within a diversified portfolioSource: Aviva Investors as at 31 October 2011 13
  14. 14. CONVERTIBLES: ACCESS EQUITIES EXPOSURE WITH A LOWERRISK PROFILE Why convertible bonds now? We believe that: – Convertibles as an asset class are proven to have superior risk adjusted returns over the past 10 years. This characteristic is resilient during market stress. – Credit and equities look cheap now. Convertible bonds gives an investor a balanced means to increase exposure to both with a better risk profile – Convertible bonds are now cheap. They have cheapened by around 4% relative to their fair value over the summer and now offer the potential for excess returnsSource: Aviva Investors as at 31 October 2011 14
  15. 15. CONVERTIBLES: ABSOLUTE RETURN APPROACH Reduce volatility of returns while capturing positive risk / reward profile of the asset class – Hedging equity exposure: Can be directional or in full – Other possible hedges: Credit risk, interest rate risk, overlays – Possible to pursue this strategy via a UCITS IV framework 15
  16. 16. APPENDIX 16
  17. 17. Global convertibles presentationAVIVA INVESTORS – GLOBAL CONVERTIBLES FUNDPERFORMANCEPerformance versus benchmark to 31 October 2011 Percentage Growth Total Return 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Feb-03 May-03 Feb-04 May-04 Feb-05 May-05 Feb-06 May-06 Feb-07 May-07 Feb-08 May-08 Feb-09 May-09 Feb-10 May-10 Feb-11 May-11 Aug-03 Nov-03 Aug-04 Nov-04 Aug-05 Nov-05 Aug-06 Nov-06 Aug-07 Nov-07 Aug-08 Nov-08 Aug-09 Nov-09 Aug-10 Nov-10 Aug-11 Aviva Investors Global Convertibles I Benchmark Since 3 months 6 months YTD 1 year 3 years p.a. 5 years p.a. inception p.a.Aviva Investors Global Convertibles Fund -3.93% -7.02% -0.82% 0.79% 15.06% 3.98% 6.89%Benchmark* -4.21% -7.27% -0.87% 0.09% 14.94% 3.23% 6.10%Source: Lipper Hindsight & Aviva Investors 31 October 2011. Data is representative of share class I and is provided net of fees with gross incomereinvested in USD. Since inception figures date as of 1 February 2003, I (USD) share class launch date was 21 January 2003. Performance dataon A and B share classes is available on request. Past performance is not a guide to the future.*From 1 June 2010, UBS Global Focus Convertible Bond Index (USD) replaced the UBS Global Convertible Bond Index (USD) which had been thefunds benchmark since 1 July 2009. Prior to 1 July 2009, UBS Global Focus Convertible Bond (USD) Index and before 31 March 2008 UBS GlobalCosted Focus Convertible Bond (USD) Index.
  18. 18. Global convertibles presentationPORTFOLIO CHARACTERISTICSAVIVA INVESTORS – GLOBAL CONVERTIBLES FUNDRegional breakdown Credit rating breakdown AAA 3% AA 9% USA 39% A 21% Europe 27% BBB 28% BB 21% Asia & Other 33% B 10% CCC and below 8% Sector breakdown 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Materials Industrials Consumer Consumer Telecoms Energy Financials Health Care Information Utilities Discretionary Staples Services TechnologySource: Aviva Investors as at 31 October 2011
  19. 19. Global convertibles presentationAVIVA INVESTORS – GLOBAL CONVERTIBLES ABSOLUTE RETURNFUNDPERFORMANCEFund performance to 31 October 2011 Percentage Growth Total Return 14% 12% 10% 8% 6% 4% 2% 0% -2% Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Aviva Investors - Global Convertibles Absolute Return Fund LIBOR USD 1 month Since inception 1 month 3 months 6 months YTD 1 year p.a.*Aviva Investors - Global Convertibles Absolute Return Fund 1.38% -4.50% -6.21% -2.35% -1.41% 2.55%LIBOR USD 1 month 0.02% 0.06% 0.11% 0.19% 0.23% 0.25%Source: Aviva Investors & Lipper Hindsight as at 31 October 2011. Performance is shown net of all fees for I USD share class. Inception date 16December 2009. *Since inception figures date as of 1 January 2010, the first full month of performance.Past performance is not a guide to the future. The value of an investment and any income from it can go down as well as up and you may not getback your original investment.
  20. 20. Global convertibles presentationPORTFOLIO CHARACTERISTICSAVIVA INVESTORS – GLOBAL CONVERTIBLES ABSOLUTE RETURN FUNDRegional breakdown Currency breakdown USA 50% USD 84% Europe 6% HKD 12% Asia 39% CNY 7% Other 6% Other -3%Sector breakdown 35% 30% 25% 20% 15% 10% 5% 0% Materials Industrials Consumer Consumer Telecoms Energy Financials Health Information Utilities Basic Cash & FX Cyclical Staples Services Care Technology Industries G/LSource: Aviva Investors as at 31 October 2011
  21. 21. Global convertibles presentationFAIR VALUE OVER THE PAST 10 YEARS 8 October 2008, New All October 1998, Prior All Time Cheapness 7 Time Cheapness Percentage Discout (%) 6 2007-2008 Credit Correction 5 Demand Exceeded Supply Exceeded Supply Demand 4 3 Falling Stocks 2 Hedge Funds Outright Funds Dominant Influx 2005 1 in Convertibles Space Correction 2006 Richening 0 Dec-1998 Jun-2000 Dec-2001 Jun-2003 Dec-2004 Jun-2006 Dec-2007 Jun-2009 Dec-2010 -1 Declining spreads -2 G300 (VG00) - global indexOn a global basis convertibles now trade close to bond + option fair valueSource: Bank of America Merrill Lynch as at 30 September 2011 21
  22. 22. Global convertibles presentationWEEKLY FAIR VALUE OVER THE PAST 3 MONTHS 6 5 4 Percentage Discount (%) 3 ASIA 2 EUROPE USA 1 0 -1On a regional basis disparities in fair value existSource: Bank of America Merrill Lynch as at 06 October 2011 22
  23. 23. Global convertibles presentationCONVERTIBLE NEW ISSUANCEAnnual Convertible Issuance 1998-2011 220 200 180 160 140 120 US$bn 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Ann.) Other Japan Asia Europe USSource: UBS as at 30 September 2011 23
  24. 24. Global convertibles presentationDELTA CHARACTERISTICSAVIVA INVESTORS – GLOBAL CONVERTIBLES FUNDFund delta Relative delta 70% 12% 10% 65% 8% 60% 6% 55% 4% 50% 2% 45% 0% 40% -2% 35% -4% 30% -6% Oct-02 Apr-05 Oct-07 Apr-10 Jul-06 Jul-11 Aug-03 Nov-04 Sep-05 Dec-06 Aug-08 Nov-09 Sep-10 Mar-03 Jun-04 Feb-06 Mar-08 Jun-09 Feb-11 Jan-04 Jun-04 Jan-09 Jun-09 May-02 Aug-03 May-07 Aug-08 Jul-06 Jul-11 Oct-02 Oct-07 Sep-05 Dec-06 Sep-10 May-02 May-07 Jan-04 Apr-05 Jan-09 Apr-10 Mar-03 Feb-06 Mar-08 Feb-11 Nov-04 Nov-09Data relates to the Aviva Investors – Global Convertibles Fund and UBS Global Focus Convertible Bond IndexSource: Aviva Investors & UBS as at 31 October 2011 24
  25. 25. Global convertibles presentationKEY CHARACTERISTICS Aviva Investors – Global Convertibles Absolute Aviva Investors – Global Convertibles Fund Return Fund The fund aims to achieve a positive return under all The fund aims to achieve capital growth or market conditions by taking long positions on short- income by investing in convertible bonds and dated, high-quality global convertible bonds directly or Investment objective / policy convertible preference shares of worldwide through the use of financial derivative instruments and issuers. by taking synthetic covered short positions on equity related securities 0.75% (gross of fees) its benchmark the UBS Performance target 8% p.a. (gross of fees) Global Focus Convertible Bond Index Fund size $2,221.38 million (as at 31 October 2011) $284.60 million (as at 31 October 2011) Legal structure Luxembourg domiciled UCITS IV SICAV Luxembourg domiciled UCITS IV SICAV USD (GBP hedged and unhedged & EUR USD (all share classes are currency hedged, GBP & Currency hedged share classes available) EUR also available) Liquidity Daily Daily Leverage None Up to two times NAV Convertible bonds, long and short CFDs, with some Tools used Convertible bonds and preference shares only options and CDX/CDS Minimum investment USD 500,000 (GBP 500,000 & EUR 500,000) USD 500,000 (GBP 500,000 & EUR 500,000) (institutional share class) Fund launch date 9 April 2002 16 December 2009 Annual management charge 0.60% 0.75% + 10% performance fee (institutional share class) 25
  26. 26. Global convertibles presentationBIOGRAPHIES David Clott, CFA Shawn Mato CFA Senior Fund Manager Senior Fund Manager David joined the investment Shawn joined the investment industry in 1992 industry in 1994Main Responsibilities Main ResponsibilitiesFund manager of convertible bonds at Aviva Investors Fund manager of convertible bonds at Aviva InvestorsExperience & Qualifications Experience & QualificationsDavid joined the firm in 1999 as a US convertible bond Shawn joined Aviva Investors in July 2001 and joined Avivamanager. He co-founded the global convertibles funds in Investors Global Convertible Bond team in June 2004.April, 2002. He began his career with Phoenix Investment Previously he was responsible for the analysis of the USPartners in 1992, working initially as an Equity Analyst and technology sector. Prior to joining Aviva Investors, helater a Convertible Securities Analyst. David then joined worked at Dresdner Kleinwort Wasserstein as an EquityHSB Group in 1998 as a Portfolio Manager and Equity Research Associate where he covered US technologyAnalyst. companies with an emphasis on software. Before thisDavid holds a BSc in Business Administration and Finance Shawn worked at Deloitte and Touche LLP as a financialfrom Bryant College and is a Chartered Financial Analyst. consultant and Nomura Securities as a US GovernmentDavid is also a CFA charterholder and a member of the Bond Trader.Boston Society of Financial Analysts. Shawn holds a BSc in Business and Finance from the University of New Hampshire and an MBA in Finance with Honours from Fordham University in New York. Shawn is also a CFA charterholder and a member of the Boston Securities Analyst Society. 26
  27. 27. Global convertibles presentationBIOGRAPHIES Justin Craib-Cox Brendan Ryan, CFA Fund Manager Research Analyst Joined investment industry in 1994 Joined investment industry in 2004Main Responsibilities Main ResponsibilitiesFund manager of convertible bonds at Aviva Investors Fundamental research on companies with convertible bond exposure for the global convertibles teamExperience & Qualifications Experience & QualificationsJustin joins Aviva Investors from M&G Investments where Brendan joined Aviva in 2011. He has significant multi-assethe was an Analyst, researching and investing in class experience (6 years of high-yield, leveraged loan,convertibles across the global market. Previous to this, structured finance, and equity coverage). He also hasJustin worked at Northern Trust acting as a Financial and multiple industry coverage, including chemicals, oil & gas,Strategic Analyst for product and corporate development print media, automotives, industrials, metals & mining,activities. Before moving to London, Justin was based in business services, and technology. Prior to joining AvivaChicago where he gained experience at Morningstar as an Investors, he has held various roles at Cypress TreeEquity Analyst and Nuveen Investments as a Research Investment Management LLC focussing on debt andAnalyst. reorganized equity of distressed / bankrupt firms from 2008-Justin gained a BA in English and History from the 2010 – this included positions on steering committees andUniversity of Virginia in addition to an MSc in Finance from leading creditor groups.London Business School. Brendan holds a BS in Biology from Boston College and an MBA in Management/ Finance from the Massachusetts Institute of Technology. He is also a CFA charterholder. 27
  28. 28. Global convertibles presentationBIOGRAPHY Keith Kelsall, CFA Client Portfolio Manager Joined investment industry in 1990Main ResponsibilitiesKeith is the client portfolio manager for convertible bondsand credit strategiesExperience & QualificationsKeith joined Aviva in 2009. Prior to joining Aviva InvestorsKeith worked at Barclays Global Investors as a senior fixedincome product specialist. Prior to this position Keith was asenior fixed income portfolio manager at Daiwa SBInvestments and a fixed income portfolio manager atFiduciary Trust. Keith began his investment career as afixed income analyst at Deutsche Bank.Keith holds a BA in economics, accounting and financialmanagement from Sheffield university. Keith is also a CFAcharterholder. 28
  29. 29. Global convertibles presentationSHARE CLASSESAVIVA INVESTORS – GLOBAL CONVERTIBLES FUND Fund managers: David Clott, Shawn Mato & Justin Craib-Cox Benchmark: UBS Global Focus Convertible Bond Index Fund currency: USD Share class Annual ISIN code Bloomberg code management charge A$ 1.20% LU0274938744 AVGCFAU LX B$ 1.20% LU0144879052 PRUGLCF LX Bx$ 1.20% LU0401378400 AVGCBXU LX C$ 1.20% LU0144879219 PRIGCR1 LX I$ 0.60% LU0160787601 PRIGCI1 LX A€ hedge 1.20% LU0280566992 AVGAHEU LX B€ hedge 1.20% LU0280567701 AVABHEU LX Bx€ hedge 1.20% LU0641119903 AVGCBXH LX I€ hedge 0.60% LU0280568261 AVAIHEU LX Ax£ 1.20% LU0280567370 AVGAXGB LX Ix£ 0.60% LU0280568428 AVIXGBP LX Ax£ hedge 1.20% LU0367993077 AVGCGBH LX Ix£ hedge 0.60% LU0367993150 AVGIXHG LXSource: Aviva Investors as at 30 September 2011 29
  30. 30. Global convertibles presentationSHARE CLASSES AVIVA INVESTORS – GLOBAL CONVERTIBLES ABSOLUTE RETURN FUND Fund managers: David Clott & Shawn Mato Indicative benchmark: 1 month USD LIBOR Fund currency: USD Share class Annual management ISIN code Bloomberg code charge I$ 0.75% LU0459997697 AIGCAUI LX A€ hedge 1.50% LU0459998232 AVGCAAH LX B€ hedge 1.50% LU0459998315 AIGCABH LX I€ hedge 0.75% LU0459998588 AIGCIHE LX Ix€ hedge 0.75% LU0643905549 AVGCLXH LX I£x hedge 0.75% LU0459999123 AIGCIXH LXSource: Aviva Investors as at 30 September 2011 30
  31. 31. Global convertibles presentationIMPORTANT INFORMATIONExcept where stated as otherwise, the source of all information is Aviva Investors as at 31 October 2011.Past performance is not a guide to the future.Any opinions expressed are based on the internal forecasts of Aviva Investors and they should not be relied upon asindicating any guarantee of return from an investment managed by Aviva Investors. No part of this document is intendedto constitute advice or recommendations of any nature.Performance figures sourced from Lipper Hindsight and illustrated on a bid to bid, gross income reinvested basis in thecurrency shown. Other information sourced from Aviva Investors. The value of an investment in the funds can go down aswell as up and can fluctuate in response to changes in exchange rates.The value of an investment and any income from it can go down as well as up. Investors may not get back the originalamount invested.The distribution and offering of shares may be restricted by law in certain jurisdictions. This document should not be takenas a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person towhom it is unlawful to make such an offer or solicitation.Copies of the Full and Simplified Prospectus together with the Report and Accounts of the SICAV are available free ofcharge from Aviva Investors, No. 1 Poultry, London EC2R 8EJOn 1 April 2008 the SICAV changed its name from Aviva Morley to Aviva Investors. Please read the current Prospectus forfull details of the current fund range before investing.Aviva Investors is a business name of Aviva Investors UK Funds Limited, a distributor of the Funds. Aviva Investors GlobalServices Limited is the Authorised Fund Manager of the funds.Aviva Investors UK Funds Limited. Registered in England No. 2503054. Authorised and regulated by the FinancialServices Authority. FSA Registered No. 147088. Registered address: No. 1 Poultry, London EC2R 8EJ. An Avivacompany. www.avivainvestors.co.ukCI061857 11/2011 31

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