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  • 1. AVIVA INVESTORSUS EQUITY INCOME FUND 30 September 2012For investment professionals only. It is not to be viewed by or used with retail clients.
  • 2. CONTENTS – About River Road – Portfolio Overview – Investment Strategy – Aviva Investors US Equity Income Fund – Summary – Appendix 2
  • 3. ABOUT RIVER ROADINTRODUCTION AS OF 30/09/2012Value-Oriented, Institutional Equity Manager RRAM Assets by Strategy– Based in Louisville, KY SCV– Founded April 2005 with a 14+ year team history 14.72% SMID Other3 13.24%– Serves clients on four continents and in 10 countries 0.16%– Affiliate of Aviva Investors, a $400+ billion global asset manager1 Ind. Value 12.50% DAV$7.05 Billion in Managed Assets2 26.18% SEI– Small Cap Value Equity $1.04 b 13.09%– Small-Mid Cap Value Equity $933 m– Dividend All-Cap Value Equity $4.18 b DAV II 20.11% – Dividend All-Cap Value $1.85 b – Dividend All-Cap Value II $1.42 b Traditional Equity Alternative Equity – Select Equity Income $923 m– Independent Value Equity $880 m Small Cap Dividend Independent Long-Short– Long-Short Equity $8 m Value All-Cap Value Value Equity SCV | SMID DAV | DAV II | SEI Shircliff, Beck, Akin Sanders, Forsha Cinnamond Moran, JohnsonRepresentative Client ListCorporate Public Funds Foundation & EndowmentVolkswagen of America Kentucky Retirement Systems Battelle Memorial InstituteWellmark, Inc. Regional Transportation Authority Pension Trust Cornell UniversityNissan North America, Inc. City of Montgomery, AL ERS Greater Houston Community FoundationNiSource, Inc. City of Galveston, TX Police Great Lakes Protection FundFiat USA Retirement Board Oklahoma Firefighters Pension & Retirement System Sisters of St. Francis of Philadelphia Charitable Trust Taft-Hartley Sub-Advisory Local No 8, IBEW Aston Asset Management LP Cement Masons and Plasterers Pension BNP Paribas Hawaii Truckers - Teamsters Union Pension Northwest & Ethical Investments Aviva Investors UK Fund Services Limited 31As of 31/12/2011. 2 AUM does not include $62 m and $568 m in preliminary non-advisory assets in DAV and DAV II model portfolios, respectively.3Other includes the Long-Short Equity Strategy and internal account strategies.Source: River Road Asset Management, LLC.
  • 4. ABOUT RIVER ROADTEAM AS OF 30/09/2012 41 associates; 15 investment professionals No investment professional turnover since team inception Years Experience Industry Professional Investment Management * Henry W. Sanders III, CFA1,2 EVP & Senior Portfolio Manager 23 years 29 years Thomas S. Forsha, CFA2 Vice President & Portfolio Manager 14 years 14 years * James C. Shircliff, CFA1,2 Chief Investment Officer 39 years 39 years * R. Andrew Beck1,2 President & CEO, Senior Portfolio Manager 13 years 21 years * J. Justin Akin Portfolio Manager 9 years 9 years Eric K. Cinnamond, CFA Vice President & Portfolio Manager 19 years 19 years Matt W. Moran, CFA Portfolio Manager 12 years 12 years Daniel R. Johnson, CFA, CPA Portfolio Manager 6 years 8 years J. Alex Brown2 Director of Research 6 years 13 years Erik M. Keener, CFA Equity Research Analyst 4 years 8 years Andrew R. McIntosh, CFA Equity Research Analyst 8 years 8 years Ashley L. Abney, CPA Equity Research Analyst 6 years 7 years John C. Watkins III Associate Equity Research Analyst 3 years 3 years Joe Van Cavage Associate Equity Research Analyst 3 years 3 years Shane P. Connor Associate Equity Research Analyst 2 years 2 years Risk Management Greg E. Deuser, CFA2 Chief Risk Officer 28 years 30 years Operations * Thomas D. Mueller, CFA, CPA1,2 COO & Chief Compliance Officer 14 years 19 years Christopher K. Fiorito2 Director of Trading 22 years 22 years Whitney B. Conn, CPA Operations Manager 6 years 16 years Meagan N. Snyder, JD Compliance Manager 5 years 5 years Client Services L. Michele Robbins 2 Vice President of Client & Consultant Relations 28 years 28 years Katrina Howard OLeary Vice President of Client & Consultant Relations 13 years 13 years Shannon M. Burnett2 Director of Client Services 12 years 16 years 4*Founding associate; 1 Executive Committee member; 2 Management Committee member
  • 5. PORTFOLIO OVERVIEW ABSOLUTE VALUE PHILOSOPHYDeep Value Absolute Value Relative ValueThe objective of Absolute Value investing is to provide attractive, sustainable, low volatility returns over the long term. We seek excellent companies trading at compelling prices – Our objective is to invest in well-managed, financially strong companies trading at compelling prices, not mediocre businesses trading at deep discounts. We build portfolios one company at a time – We believe alpha is optimized by identifying superior fundamental business characteristics, rather than chasing market and index trends. We seek market inefficiencies – We believe inefficiencies can be found and captured in smaller capitalization and out-of-favor securities, and in securities with little or no formal Wall Street analyst coverage. We are risk averse – We employ a strategy of balanced diversification and a structured sell discipline that minimizes both portfolio volatility and the potential loss of capital. 5
  • 6. PORTFOLIO OVERVIEWPHILOSOPHY WHY DIVIDENDS?Performance: Dividend-paying stocks outperform 10,000non-dividend payers Dividend- Paying S&P 500 Stocks– Numerous studies have demonstrated that dividend- Gain/Annum: 8.75% paying stocks deliver higher returns (over the long- term) with lower risk than non-dividend payers.1 1,000 Non-Dividend- Paying S&P Growth of $100 500 StocksConviction: Paying dividends requires real earnings Gain/Annum: 1.59%– Companies that pay consistent dividends are typically financially sound and seek to maximise proper utilisation of free cash flow. 100Sentiment: Dividends currently receive favourabletax treatment– The Jobs and Growth Tax Relief Reconciliation Act of 10 2003 lowered the top rate on qualified dividend income to 15%.Demand: Demographic trends favour income-orientated investments– Retiring baby boomers will increasingly demand investments that offer current income and growth to keep up with inflation.Chart shown from 31/01/1972 through 30/09/2012. 1Source: Ned Davis Research, Inc. Past performance is no guarantee of future results. 6
  • 7. PORTFOLIO OVERVIEWTHE DIVIDEND ALL-CAP ADVANTAGE 1 # of Firms Wtd. Avg. YieldMkt. Cap < $300 m 306 5.41%$300 m < Mkt. Cap < $1 b 264 5.50%$1 b < Mkt. Cap < $2 b 164 4.72%$2 b < Mkt. Cap < $15 b 354 4.01%Mkt. Cap > $15 b 206 3.57%– The small cap asset class offers a broader universe of high income stocks and features a higher weighted average yield.– Sufficient universe remains following period of substantial dividend cuts.1Universe: U.S. listed equity; 40% > yield > 2%; mkt. cap > $1 million; data as of 09/10/2012. Source: River Road Asset Management, LLC and FactSet Research Systems Inc. 7Shown as supplemental information to the DAV and DAV II Composites.
  • 8. PORTFOLIO OVERVIEW – PHILOSOPHYPORTFOLIO OVERVIEWDividend All-Cap Value Core – 2 - 4% Yield– Launched October 1, 2003 – Larger Cap – Stable Growth– Dual objective: capital appreciation – High Liquidity plus current income High Alpha– Benchmark: Russell® 3000 Value – 3 - 6% Yield – Smaller to Mid Cap– Target yield of Russell® 3000 Value – More Inefficient plus 150 bps – Key Source of Alpha– Emphasis on diversification High Yield – 5%+ Yield – Smaller to Mid Cap – Includes Non-Traditional Equities (i.e. REITs and MLPs) – Highest Yield / Lower Appreciation PotentialSource: River Road Asset Management, LLC and FactSet Research Systems Inc.Past performance is no guarantee of future results. 8
  • 9. INVESTMENT STRATEGY – PROCESSDIVIDEND ALL-CAP VALUEStep 1 Step 2 Step 3 Step 4Idea generation Security Analysis Portfolio Construction Sell DisciplineUniverse Working Universe 60 - 80 Holdings2 Position & PortfolioMkt. Cap > $300 M1 300 - 400 stocks Risk ManagementMin 2% Yield Approach – High & Growing – Bottom-UpSystematic Research: Dividend Approach – Investment– Database Reviews – Target 3% Yield – Top-Down Risk Becomes – Value Line – Positive Growth Management Overvalued Rate – Failure to Execute – FactSet – Balanced – Stable Pay-out Diversification – Losses Develop RatioDynamic Research: – Financial Strength– Multiple Sources – Priced at a Discount – Dividend to AV Increases – Attractive Business – Insider Model Transactions – Shareholder- – SEC Filings Oriented Management – Firm Announcements – Undiscovered, Underfollowed, Misunderstood1Historically, the market cap limit reflects minimum liquidity constraint used in portfolio construction.2The target number of portfolio holdings is a working guideline. The actual number may vary depending on market conditions and other factors. 9
  • 10. INVESTMENT STRATEGY – PROCESSSTRUCTURED SELL DISCIPLINEInvestment becomes overvalued – Stock exceeds price target (100/110/120 rule) “A key difference – Holding exceeds 5% of the portfolio between a losing strategy and aFailure to execute winning strategy is – Fundamentals turn negative; dividend becomes threatened that losers make big – Warning signs emerge within company / industry mistakes and – Pay-out ratio begins to climb winners make small mistakes.”Losses develop – Do not average down; step out of losing positions – Control total unrealized losses in the portfolio – Target threshold in total unrealized losses11Threshold will vary depending on market conditions and timing of flows. 10
  • 11. AVIVA INVESTORSUS EQUITY INCOME FUNDLaunched 8 July 2011 11
  • 12. AVIVA INVESTORS US EQUITY INCOME FUNDKEY FUND FACTS Aviva Investors US Equity Income FundFund manager Henry W. Sanders III, CFA Deputy fund manager Thomas S. Forsha, CFA Launch date 8 July 2011 Yield target1 Russell® 3000 Value +1.5%Distribution frequency Quarterly Benchmark Russell® 3000 Value Index Valuation frequency Daily Settlement T+4 IMA sector North America Currency of fund GBP Fund structure UCITS compliant ICVC Ratings21 The yield target stated in the fund objective is an aspirational yield target and is not guaranteed. It is a 12-month rolling target and is gross of fees and tax. The actual yield will fluctuate from month to month.2 Source: S&P and OBSR ratings as at 30 September 2012. 12
  • 13. AVIVA INVESTORS US EQUITY INCOME FUNDTHREE DISTINCT PORTFOLIO COMPONENTS AS OF 30/09/2012Current Weighting3 Core Core – 2 - 4% yield 90.09% wtd. % of AV1 – Larger cap 3.37% yield2 60.47% – Stable growth – High Liquidity0% 25% 50% 100% High Alpha High Alpha – 3 - 6% yield 85.37% wtd. % of AV1 – Smaller to mid cap 3.68% yield2 36.15 % – More inefficient – Key source of alpha0% 20% 35% 100% High Yield High Yield 1 – 5%+ yield 88.77% wtd. % of AV – Smaller to mid cap 6.19% yield2 3.38% – Includes non-traditional equities – Highest yield / lower appreciation potential0% 25% 40% 100%1Average discount to Absolute Value as of 30.09.2012. 2 Weighted average yield as of 31.08.2012 shown gross of fees; current portfolio yield does notanticipate special dividends. 3 Data as of 30.09.2012 for the Aviva Investors US Equity Income Fund. Source: River Road Asset Management, LLC andFactSet Research Systems Inc. Past performance is no guarantee of future results. 13
  • 14. AVIVA INVESTORS US EQUITY INCOME FUNDDIVERSIFICATION CHARACTERISTICS AS OF 30/09/2012 US Equity Russell®Economic Sectors Income Fund 3000 Value Under/OverConsumer Staples 16.30 6.91 9.40 9.4%Consumer Discretionary 15.86 8.17 7.69 7.7%Industrials 15.10 9.37 5.73 5.7%[Cash] 3.82 -- 3.82 3.8%Information Technology 9.30 6.79 2.51 2.5%Telecommunication Services 5.95 3.54 2.42 2.4%Utilities 5.21 6.78 -1.57 -1.6%Materials 2.41 4.02 -1.62 -1.6%Health Care 9.05 11.18 -2.13 -2.1%Energy 3.38 16.08 -12.70 -12.7%Financials 13.62 27.15 -13.53 -13.5% -15% -10% -5% 0% 5% 10% 15% Characteristics US Equity Income Fund R3000V Market Cap breakdown1 US Equity Income Fund R3000V Number of holdings 69 2096 Large Cap > $15.0 B 56.82 67.59 US equity 93.2% 100.0% Mid-Cap $2.0-15.0 B 22.62 24.49 Non US equity4 6.8% 0.0% P/E1 14.8 14.9 Small Cap < $2.0 B 16.74 7.91 P/ Cash Flow 8.9 9.1 Cash 3.82 -- Price /Book 2.12 1.49 100.0% 100.0% ROE (5y average) 18.6% 12.6% EPS Growth (5y average) 5.9% 2.4% LT Growth (5y average)3 7.7% 8.4%Characteristics are as of 30.09.2012 for the Aviva Investors US Equity Income Fund1 Gross of fees; current portfolio yield does not anticipate special dividends; 2 the strategy is permitted to invest in up to 20% in US-listed non-US companies; 3 Excluding 14Negative Earnings; 4 I/B/E/S MediansSource: Aviva Investors / River Road Asset Management, LLC; The Bank of New York Mellon Corp.; FactSet Research Systems Inc.; and Russell® Investment Group.
  • 15. AVIVA INVESTORS US EQUITY INCOME FUND PERFORMANCE AS OF 30/09/2012 10 8 Since 1m 3m 6m inception1 6 Aviva Investors US Equity Income Fund -0.39 1.77 2.36 5.48 Share Class 1 Inc 4% Russell® 3000 Value 1.51 3.39 2.93 7.22 S&P 500 0.90 3.30 2.33 9.49 2 Out/Underperformance (vs. Russell® 3000 -1.90 -1.62 -0.57 -1.74 Value) 0 1m 3m 6m Since inception -2 Aviva Investors US Equity Income SC1 Inc Russell 3000 TR S&P 500 TR 1 Inceptiondate: 08.07.2011. Past performance is not a guide to the future. Source: Lipper Hindsight. Pricing basis: As at 30/09/12 on a mid to mid, net income re-invested, Sterling basis. Gross of initial charge & net of AMC. 15
  • 16. DAV COMPOSITE PERFORMANCE AS OF 30/09/2012 The Aviva Investors US Equity Income Fund may differ from US comparable strategy (DAV) due to structure, currency movements and effect of taxation and charges. Objectives – Long-term Total Return > Russell® 3000 Value index plus 200 - 400 bps – Target Yield > Russell® 3000 Value plus 150 bps 32.00% 24.00% DAV Composite Yield 3.74%2 16.00% Russell 3000 Value Yield 2.48% 8.00% 0.00% -8.00% Q3 2012 YTD 1 YR 3 YR 5 YR 7 YR Inception1 River Road DAV Composite 4.29% 10.91% 23.89% 15.31% 3.73% 7.46% 10.92% Russell 3000 Value 6.44% 15.64% 31.05% 11.83% -0.72% 3.32% 6.58% S&P 500 6.35% 16.44% 30.20% 13.20% 1.05% 4.48% 6.33%Out/Underperformance -2.15% -4.73% -7.16% +3.48% +4.45% +4.14% +4.34% 2011 2010 2009 2008 2007 2006 2005 2004River Road DAV Composite 6.17% 20.20% 22.07% -27.39% 1.92% 27.05% 10.50% 24.71%Russell 3000 Value -0.10% 16.23% 19.76% -36.25% -1.01% 22.34% 6.85% 16.94%Out/Underperformance +6.27% +3.97% +2.31% +8.86% +2.93% +4.71% +3.65% +7.77%The official performance is shown gross of fees for the Dividend All-Cap Value Strategy Composite as of 30/09/2012.1Inception date: 01/10/2003.2Gross 16 of fees; current portfolio yield does not anticipate special dividends. Source: River Road Asset Management, LLC; Russell Investment Group; Standard & Poor’s; andThe Bank of New York Mellon Corp. Past performance is no guarantee of future results. Please see appendix for disclosure presentation.
  • 17. PERFORMANCE DAV VS. RUSSELL® 3000 VALUE AS OF 30/09/2012Since Inception: 1 October 2003 - 30 September 2012 DAV Composite Russell 3000 Value Attribution Analysis Avg. Total Contrib. Avg. Total Contrib. Allocat. Select. Interact. TotalGICS Direct Sector Wgt. Return Return Wgt. Return Return Effect Effect Effect EffectEnergy 15.74 20.25 4.56 13.45 15.36 1.85 1.34 1.06 -0.10 2.21Financials 27.57 3.82 2.99 30.38 -1.78 0.29 0.52 1.60 -0.08 1.99Consumer Discretionary 10.06 14.46 1.79 9.13 7.19 1.07 0.26 1.26 -0.41 1.13Materials 4.32 16.09 1.53 3.96 11.26 0.63 0.32 0.75 0.03 1.07Telecommunication Services 3.71 17.53 0.92 5.18 9.54 0.62 0.14 0.94 -0.36 0.74Information Technology 3.68 8.17 0.35 5.65 4.51 0.57 0.35 0.37 -0.12 0.60Consumer Staples 10.72 14.14 1.72 7.34 12.16 0.89 0.07 0.45 0.05 0.56Industrials 8.21 8.12 1.08 9.61 8.44 0.83 0.14 0.50 -0.30 0.35Health Care 3.53 9.10 0.54 8.45 7.79 0.70 0.03 0.19 0.00 0.23Utilities 7.31 8.13 0.76 6.72 10.70 0.79 0.25 -0.26 -0.01 -0.01Cash 3.69 1.37 0.09 -- -- -- 0.33 -- -- 0.33Unassigned 1.45 1.49 0.28 0.11 13.55 0.03 0.31 0.11 -0.38 0.05Total 100.00 11.46 11.46 100.00 6.58 6.58 3.60 5.76 -1.77 7.27Official Gross Performance 10.92 6.58Attribution calculated from 01/10/2003 through 30/09/2012. Discrepancies between official RRAM reported performance and the performance values found in attribution analysis mayoccur due to the varied methodologies between RRAM and FactSet Research Systems Inc. Attribution analysis is calculated using cumulative returns which are then annualized for allperiods greater than one year.Holdings based attribution analysis is generated for all periods in which the start date is prior to 2007. Holdings based attribution is less precise; performance discrepancies may begreater for these periods. Source: River Road Asset Management, LLC; FactSet Research Systems Inc.; and Russell Investment Group.Past performance is no guarantee of future results. Shown as supplemental information to the DAV Composite. Please see appendix for disclosure presentation. 17
  • 18. AVIVA INVESTORS US EQUITY INCOME FUNDTOP 10 HOLDINGS AS OF 30/09/2012 Securities Market Value Pct. (%)Kimberly-Clark Corporation 7,630,988.80 2.46Automatic Data Processing, Inc. 7,628,146.40 2.45General Mills, Inc. 7,564,127.75 2.43Intel Corporation 7,245,408.82 2.33Vodafone Group 6,907,545.00 2.22Chevron Corporation 6,571,652.80 2.11Sysco Corporation 6,394,402.30 2.06UNS Energy Corporation 6,228,140.10 2.00Norfolk Southern Corporation 6,144,112.80 1.98United Parcel Service, Inc. Class B 6,116,014.35 1.97Total 68,430,539.12 22.02Top 10 Holdings as of 30/09/2012 in the Aviva Investors US Equity Income Fund.Source: River Road Asset Management, LLC. Shown as supplemental information to the US Equity Income Fund. Please see appendix for disclosurepresentation. 18
  • 19. INVESTMENT STRATEGYDAV II LARGEST HOLDING – AUTOMATIC DATA PROCESSING (ADP)Automatic Data Processing Inc. is one of the world’s largest providers Public Market Comps (trailing EV/EBITDA)of business outsourcing solutions primarily focused on HR solutions Paychex (PAYX) 12.2xand payroll, tax, and benefits processing for small, medium, and large Intuit (INTU) 11.5xbusinesses. ADP also provides integrated computing solutions forautomotive dealers. Carlos Rodriguez (48) succeeded Gary Butler Private Market Comps(65) as CEO in November 2011. ADP is based in Roseland, NJ. Ceridian was taken private in November 2007 at 13.7x ValuationHigh and Growing Dividend Yield:– In December 2011, ADP increased its dividend 9.7% to $1.58/share per year. ADP Revenues/Share $21.95 $10.8 b in 2013 Rev. has increased its dividend every year since 1975 at an annualized rate of 16.1%. EBITDA Margin 17.52% Over the last five years, the dividend has increased at an 11.4% annualized rate. CF/Share $3.84 CF Multiple 12.0xFinancial Strength: Business Value $46.14– ADP is one of only four companies with AAA credit ratings from both Moody’s and S&P. ADP has a net cash position of $3.36/share. Float Income/Share $0.84 $412 m in 2013 Inc. Multiple 8.0xValuation: Float Value $6.71– ADP is trading at a 5% premium to our assessed Absolute Value of $56. Business Value $46.14 Float Value $6.71 $1.7 b in cashAttractive Business Model:– ADP benefits from a stable and diverse client base with customer retention rates Net Cash/Share $3.36 $17 m in debt above 90% and no single customer accounting for more than 2% of revenues. Absolute Value $56 / Share ADP can invest its clients’ funds before remitting them to the appropriate taxing authority to earn interest that is essentially all profit to ADP. ADP Share Price Absolute Value $60Shareholder Orientation: $55– ADP accelerated the company’s dividend growth and share buybacks in 2006. Since fiscal year end 2006, the dividend per share has increased by 114% and $50 shares outstanding have been reduced by 13%. $45Undiscovered, Underfollowed, Misunderstood: $40– The market is concerned about unemployment and low interest rates, but ADP $35 grew revenues throughout the recession and is positioned to benefit from rising interest rates. $30 2008 2009 2010 2011 2012 19As of 30/09/2012, Automatic Data Processing is the largest holding in the Dividend All-Cap Value II Strategy Composite. Source: River Road Asset Management, LLC and FactSet Research Systems Inc.Past performance is no guarantee of future results. Shown as supplemental information to the DAV II Composite. Please see appendix for disclosure presentation.
  • 20. SUMMARYCOMPETITIVE ADVANTAGETeam + Process = ResultsUnique philosophy/proven process– Emphasise consistent, low volatility, high alpha returns – No black box; combination of proven fundamentals & hard work – Structured sell disciplineExperience/outstanding culture– Experienced portfolio management team dedicated to value discipline – Portfolio managers average over 19 years experience – No investment professional turnover since team inception 20
  • 21. APPENDIX 21
  • 22. APPENDIXPROCESS INTERNAL RISK MANAGEMENTWorking Policy Guidelines1:– 60 - 80 holdings– No companies with an average trading volume, at time of initial purchase, of less than $500,000 per day– No more than 5% in any one security– Maximum of 30% in any one sector2– Only securities traded on a North American exchange, including ADR’s, for new purchases– Limit of 20% in foreign companies3– No more than 5% in cash Daily Weekly Weekly Monthly Team Team Firm-Wide Firm-Wide Interaction Risk Meeting Research Meeting Risk Meeting1 Internal Risk Management Guidelines are working policies and, as such, subject to change without notification.2 As defined by GICS; Financials sector excludes REITs. 3 As defined by River Road Asset Management, LLC. 22
  • 23. PERFORMANCEDAV RISK SUMMARY- TRAILING 60 MONTHS AS OF 31/12/2010 Annualized Standard Deviation vs. Annualized Return DAV II / DAV SIMULATED VS. R3000V 01/2006 to 12/2010 Universe: eVestment (eA Universes):eA US All Cap Value Equity 1 January 2006 - 31 December 2010 15 DAV II Equity Only Simulated DAV Equity Only Simulated Russell 3000 Value 20.00 10 Annualized Return 15.00 5 0 10.00 -5 5.00 0 5 10 15 20 25 30 35 Annualized Standard Deviation 0.00 Universe Anlzd. 5 Yr. Anlzd. Tracking DAVII EQUITY ONLY SIMULATED DAV EQUITY ONLY SIMULA TED (03-06 Holdings based; 06- Transaction based) Return Std. Dev. Error Russell 3000 Value - Total Return Anlzd. 5 Yr. Anlzd. Sharpe Anlzd. Tracking Worst Best Return Std. Dev. Beta Ratio R-Squared Alpha Error Return ReturnDAV II Equity Only Simulated 6.47 14.67 0.75 0.28 94.41 5.02 5.94 -13.34 6.96DAV Equity Only Simulated 6.71 14.86 0.76 0.30 94.74 5.25 5.73 -14.18 7.53Russell 3000 Value 1.45 19.07 1.00 -0.04 100.00 -- -- -17.54 11.13 Avg. Avg. Anlzd. Max Max Treynor Downmarket Upmarket Excess Drawdown Gain Ratio Info. Ratio Cons. Pos. Cons. Neg. Return Return ReturnDAV II Equity Only Simulated -41.46 69.69 5.59 0.85 8.00 4.00 -3.65 3.09 5.02DAV Equity Only Simulated -44.09 75.51 5.82 0.92 10.00 6.00 -3.66 3.12 5.26Russell 3000 Value -55.56 82.09 -0.85 -- 8.00 5.00 -5.41 3.57 --Simulated performance is shown gross of fees for the equity only Dividend All-Cap Value II Strategy Composite and the equity only Dividend All-Cap Value Strategy Composite from01/01/2006 through 31/12/2010. Source: River Road Asset Management, LLC; eVestment Alliance; FactSet Research Systems Inc.; and Russell Investment Group. 23Past performance is no guarantee of future results. Equity only simulated performance shown as supplemental information to the DAV II and DAV Composites.Please see appendix for disclosure presentation and important information regarding the simulated performance presented.
  • 24. PERFORMANCEDAV MARKET CAP ANALYSIS AS OF 31/09/2012Historically, we have successfully added value across the capitalization spectrum 100% $24.0 > $15.0 billion $2.0 - $15.0 billion Wtd. Median Market Cap (billions) $1.0 - $2.0 billion 80% < $1.0 billion $18.0 % of DAV Composite Wtd. Median Mkt. Cap 60% $12.0 40% $6.0 20% 0% $0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Since Inception: 1 October 2003 - 30 September 2012 DAV Composite Russell 3000 Value Attribution Analysis Avg. Total Contrib. Avg. Total Contrib. Allocat. Select. Interact. Total Wgt. Return Return Wgt. Return Return Effect Effect Effect Effect Mkt Cap: > $15.0 billion 36.54 9.51 3.63 63.91 5.14 3.09 0.99 3.29 -1.68 2.86 Mkt Cap: $2.0 billion - $15.0 billion 31.07 12.02 5.45 26.79 8.49 3.25 0.39 1.32 0.38 1.99 Mkt Cap: $1.0 billion - $2.0 billion 13.13 12.00 2.70 4.65 7.93 0.65 0.47 0.43 0.61 1.45 Mkt Cap: < $1.0 billion 15.29 13.14 3.66 4.51 7.40 0.73 0.70 0.34 0.47 1.46 Cash 3.69 1.37 0.09 -- -- -- 0.43 -- -- 0.43 Merged / Acquired / Dissolved 0.28 -2.75 0.05 0.13 -10.49 -0.02 0.22 0.22 0.24 0.66 Total 100.00 11.46 11.46 100.00 6.58 6.58 3.08 5.01 0.15 7.27 Official Gross Performance 10.92 6.58Chart shows quarterly market cap data for the Dividend All-Cap Value Strategy Composite from 31/12/2003 through 30/09/2012. Attribution calculated from 01/10/2003 through 30/09/2012. Discrepancies between officialRRAM reported performance and the performance values found in attribution analysis may occur due to the varied methodologies between RRAM and FactSet Research Systems Inc. 24Attribution analysis is calculated using cumulative returns which are then annualized for all periods greater than one year. Holdings based attribution analysis is generated for all periods in which the start date is prior to2007. Holdings based attribution is less precise; performance discrepancies may be greater for these periods. Source: River Road Asset Management, LLC; FactSet Research Systems Inc.; Russell Investment Group;and The Bank of New York Mellon Corp. Past performance is no guarantee of future results. Shown as supplemental information to the DAV Composite. Please see appendix for disclosure presentation.
  • 25. PERFORMANCEDAV CORRELATION ANALYSIS AS OF 30/09/2012– Russell® 3000 Value represents the best overall fit– Low volatility and low beta Trailing 5 Yr Anlzd. Anlzd. Ret. (%)1 Std. Dev. (%) Dividend All-Cap Value 3.73 14.69 R-Squared Beta Russell 3000 Value -0.72 20.41 94.90 0.70 Russell Midcap 2.24 22.83 89.42 0.61 Russell 2000 2.21 24.54 86.56 0.56 Russell Midcap Value 1.73 23.14 92.38 0.61 Russell 2000 Value 1.35 24.80 87.18 0.55 Russell 3000 1.30 19.71 93.85 0.72 Russell 1000 1.22 19.38 93.83 0.73 MSCI NA 1.06 19.41 92.83 0.73 S&P 500 1.05 18.97 94.30 0.75 MSCI NAV -0.83 19.63 93.35 0.72 Russell 1000 Value -0.90 20.13 94.82 0.711 Trailing five year performance is shown gross of fees as of 30/09/2012. 25Source: River Road Asset Management, LLC; FactSet Research Systems Inc.; MSCI Inc.; Russell Investment Group; and Standard & Poor’s.Past performance is no guarantee of future results. Shown as supplemental information to the DAV Composite. Please see appendix for disclosure presentation.
  • 26. PERFORMANCE R3000V VS. DAV COMPOSITE FROM 01/10/2003 TO 30/09/201210% 7.38% Monthly Performance 5.57% DAV II DAV R3000V 5% October 7.99% 8.15% 11.68% 3.65% 3.00% November 1.54% 1.46% -0.49% 1.87% December 2.00% 1.81% 1.98% 1.62% January 1.92% 2.28% 4.01% February 1.56% 1.80% 3.79% 0% March 2.07% 2.08% 2.98% -0.77% -1.51% April -0.21% -0.34% -1.05% -2.30% May -3.56% -3.80% -5.88% June 4.24% 4.37% 4.95% -4.06%-5% July 1.54% 1.38% 0.88% August 1.16% 1.47% 2.24% -6.07% September 0.95% 1.38% 3.20% -8.86%-10% R3V < -5% R3V ≤ -5% to -3% R3V < -3% to 0% R3V ≥ 0% to 3% R3V > 3% to 5% R3V ≥ 5% 12 Months 6 Months 20 Months 38 Months 18 Months 14 Months 70% of Sample 30% of Sample Russell® 3000 Value DAV Composite Performance is shown gross of fees for the Dividend All-Cap Value Strategy Composite as of 30/09/2012. Monthly performance is shown gross of fees for the Dividend All-Cap Value 26 Strategy Composite and the Dividend All-Cap Value II Strategy Composite. Source: River Road Asset Management, LLC and Russell Investment Group. Past performance is no guarantee of future results. Shown as supplemental information to the DAV and DAV II Composites. Please see appendix for disclosure presentation.
  • 27. APPENDIXDAV COMPOSITE RETURNS AS OF 31/09/2012MONTHLY RETURNS 2012 2011 2010 2009 2008 2007 2006 2005 2004 Q4 2003January 2.28% 0.56% -1.94% -6.42% -0.90% 1.22% 4.09% -1.18% 0.84%February 1.80% 2.91% 2.89% -8.91% -2.95% -1.02% 0.91% 3.07% 2.92%March 2.08% 0.56% 4.98% 5.91% 0.84% 1.60% 3.33% -2.13% 1.14%April -0.34% 2.90% 3.11% 7.29% 3.62% 3.00% 2.04% 0.17% -7.19%May -3.80% 0.25% -6.07% 2.32% 1.17% 3.95% -0.49% 1.78% 3.59%June 4.37% -1.43% -3.13% 0.58% -8.07% -1.20% 0.27% 3.64% 3.25%July 1.38% -2.79% 6.65% 6.90% -0.91% -4.79% 1.26% 3.69% 1.25%August 1.47% -2.65% -2.46% 2.26% 2.65% 1.24% 2.86% -1.25% 3.32%September 1.38% -5.09% 6.74% 3.43% -5.34% 2.57% 1.54% 0.58% 3.98%October 8.15% 3.47% 0.07% -13.30% 0.07% 3.12% -2.00% 2.30% 3.99%November 1.46% -0.02% 5.24% -6.63% -3.47% 2.39% 2.80% 6.00% 2.77%December 1.81% 5.30% 2.86% -0.31% -0.89% 2.97% 1.11% 1.47% 6.23%QUARTERLY RETURNS 2012 2011 2010 2009 2008 2007 2006 2005 2004 Q4 2003First quarter 6.28% 4.06% 5.92% -9.72% -3.02% 1.79% 8.53% -0.32% 4.97%Second quarter 0.06% 1.68% -6.18% 10.40% -3.64% 5.78% 1.81% 5.66% -0.73%Third quarter 4.29% -10.18% 11.04% 13.07% -3.72% -1.13% 5.76% 2.99% 8.78%Fourth quarter 11.71% 8.94% 8.32% -19.30% -4.26% 8.72% 1.87% 10.03% 13.53%YTD / ANNUAL 2012 2011 2010 2009 2008 2007 2006 2005 2004 Q4 2003River Road DAV Composite 10.91% 6.17% 20.20% 22.07% -27.39% 1.92% 27.05% 10.50% 24.71% 13.53%Russell 3000 Value 15.64% -0.10% 16.23% 19.76% -36.25% -1.01% 22.34% 6.85% 16.94% 14.35%Russell 3000 16.13% 1.03% 16.93% 28.34% -37.31% 5.14% 15.72% 6.12% 11.95% 12.43%S&P 500 16.44% 2.11% 15.06% 26.46% -37.00% 5.49% 15.79% 4.91% 10.88% 12.18%Performance is shown gross of fees for the Dividend All-Cap Value Strategy Composite as of 30/09/2012. 27Inception date: 01/10/2003. Source: River Road Asset Management, LLC; Russell Investment Group; and Standard & Poor’s.Past performance is no guarantee of future results. Please see appendix for disclosure presentation.
  • 28. APPENDIX HISTORICAL INDICATED YIELDS AS OF 30/09/2012 7.0 6.0 5.0Indicated Annual Yield % 4.0 3.0 2.0 1.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312DAV Composite 5.11 4.76 5.48 5.70 5.34 6.08 5.51 5.56 5.35 4.68 5.03 4.79 4.54 4.45 4.36 4.44 4.88 5.01 5.03 5.04 5.76 5.60 4.87 4.09 3.99 3.85 4.10 3.79 3.44 3.64 3.84 4.32 3.87 3.63 3.74 3.74DAV II Simulated 4.14 4.19 4.33 4.06 4.32 4.92 5.46 4.34 3.83 3.76 3.44 3.69 3.49 3.49 3.29 3.47 3.81 3.98 4.19 4.27 4.85 5.26 4.52 3.76 3.54 3.35 3.58 3.38 3.29 - - - - - - -DAV II Composite - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3.66 3.81 4.05 3.81 3.53 3.58 3.60Russell 3000 Value 2.24 2.27 2.38 2.41 2.27 2.35 2.41 2.38 2.43 2.36 2.49 2.41 2.31 2.38 2.32 2.42 2.67 2.88 3.01 3.10 3.72 3.44 2.67 2.25 2.21 2.10 2.48 2.31 2.15 2.17 2.28 2.82 2.61 2.44 2.56 2.48DAV Spread +2.87 +2.49 +3.10 +3.29 +3.07 +3.73 +3.10 +3.18 +2.92 +2.32 +2.54 +2.38 +2.23 +2.07 +2.04 +2.02 +2.21 +2.13 +2.02 +1.94 +2.04 +2.16 +2.20 +1.84 +1.78 +1.75 +1.62 +1.48 +1.29 +1.47 +1.56 +1.50 +1.26 +1.19 +1.18 +1.2610 YR U.S. Treasury 4.25 3.83 4.58 4.12 4.22 4.48 3.91 4.32 4.39 4.85 5.14 4.63 4.70 4.64 5.02 4.59 4.02 3.41 3.97 3.82 2.21 2.66 3.53 3.31 3.84 3.83 2.93 2.51 3.29 3.47 3.16 1.92 1.88 2.21 1.64 1.63 Dividend yields shown gross of fees from 31/12/2003 through 30/09/2012. Indicated yields do not include special dividends. Dividend All-Cap Value Strategy Composite inception date: 01/10/2003. 28 Source: Bloomberg, FactSet Research Systems Inc., Russell Investment Group, and The Bank of New York Mellon Corp. Past performance is no guarantee of future results. Shown as supplemental information to the DAV and DAV II Composites. Please see appendix for disclosure presentation.
  • 29. APPENDIX – BIOGRAPHICAL DATAINVESTMENT MANAGEMENT AND RESEARCH Henry W. Sanders, III, CFA Executive Vice President & Senior Portfolio ManagerMain ResponsibilitiesMr. Sanders serves as Lead Portfolio Manager for River Road’s Dividend All-Cap Value Portfolios and asPortfolio Co-Manager for River Road’s Small Cap Value and Small-Mid Cap Value Portfolios. Additionally, Mr.Sanders serves as Executive Vice President of the firm. Prior to co-founding River Road, Mr. Sanders servedas Senior Vice President and Portfolio Manager for Commonwealth Trust Company (Commonwealth SMC).Additionally, Mr. Sanders served as President of Bridges Capital Management and Vice President of PRIMCOCapital Management.Experience and QualificationsMr. Sanders earned the Chartered Financial Analyst designation (CFA) in 1992 (CFA Institute). He receivedhis B.A. in Business Administration from Bellarmine University and his M.B.A. from Boston College. Mr.Sanders is a member of the CFA Institute. He is an active member and past President of the CFA Society ofLouisville and served as adjunct professor of Finance and Economics at Bellarmine University. 29
  • 30. APPENDIX – BIOGRAPHICAL DATAINVESTMENT MANAGEMENT AND RESEARCH Thomas S. Forsha, CFA Vice President & Portfolio ManagerMain ResponsibilitiesMr. Forsha serves as Vice President and Portfolio Co-Manager for River Road’s Dividend All-Cap ValuePortfolios. Prior to joining River Road, Mr. Forsha served as Equity Analyst and Portfolio Manager for ABNAMRO Asset Management, USA, where he was responsible for management of the North American equityallocation of the firm’s Global High Income Equity Fund.Experience and QualificationsMr. Forsha earned the Chartered Financial Analyst designation (CFA) in 2002 (CFA Institute). He received hisB.S. in Finance from The Ohio State University’s Fisher College of Business and his M.B.A. from TheUniversity of Chicago Booth School of Business. Mr. Forsha is a member of the CFA Institute and the CFASociety of Louisville. 30
  • 31. APPENDIX – BIOGRAPHICAL DATAINVESTMENT MANAGEMENT AND RESEARCH James C. Shircliff, CFA Chief Investment OfficerMain ResponsibilitiesMr. Shircliff serves in the role of Chief Investment Officer for River Road Asset Management. Additionally, Mr.Shircliff serves as Lead Portfolio Manager for River Road’s Small Cap Value and Small-Mid Cap ValuePortfolios and Portfolio Co-Manager for River Road’s Dividend All-Cap Value Portfolio. Prior to co-foundingRiver Road, Mr. Shircliff served as EVP, Portfolio Manager and Director of Research for SMC Capital, Inc., aRegistered Investment Advisor and affiliate of Commonwealth Trust Company (Commonwealth SMC).Experience and QualificationsMr. Shircliff has 37 years of investment management experience. He started his career in 1973 as ResearchAnalyst for First Kentucky Trust, where he later served as Director of Research. In 1983, he joinedOppenheimer Management Company as Special Situations Analyst and, later, Portfolio Manager forOppenheimer’s Target Fund. In 1986, Mr. Shircliff joined Southeastern Asset Management (Longleaf Funds)as Partner, Portfolio Manager, and Director of Research. In 1997, he joined SMC Capital, Inc., where helaunched River Roads Small Cap Value and Dividend All-Cap Value Portfolios.Mr. Shircliff earned the Chartered Financial Analyst (CFA) designation in 1978 (CFA Institute). He receivedhis B.S. in Finance from the University of Louisville and is a member of the CFA Institute and the CFA Societyof Louisville. 31
  • 32. IMPORTANT NOTESThis document is intended for institutional or professional investors and experienced advisors only. It is not to be view by or used withprivate investors. Past performance is not a guide to the future.Except where stated as otherwise, the source of all information is Aviva Investors as at 30 September 2012.Note that performance shown of the DAV strategy is not necessarily an accurate representation of how the UK Fund structure wouldhave performed and that returns to UK investor will differ because of the UK Fund structure, currency movements and the effect oftaxation and charges. When funds invest in overseas assets, the value will go up and down in line with movements in exchange rates.On 1 July 2007 the benchmark was officially changed from Russell® 3000 Index to Russell® 3000 Value Index. Russell Investment Groupis the source and owner of trademarks, service marks and copyrights related to the Russell indices. Russell® is a trademark of RussellInvestment Group.Investments in smaller companies may be less liquid than in larger companies and price swings may be greater than in largercompanies. Therefore, they are generally a higher risk investment than larger companies.Any future returns and opinions expressed are based on the internal forecasts of Aviva Investors and should not be relied upon asindicating any guarantee of return from an investment managed by Aviva Investors. No part of this document is intended to constituteadvice or recommendations of any nature.The value of an investment in the Fund can go down as well as up and can fluctuate in response to changes in exchange rates. Whereperformance has been illustrated it is not intended to be a guide to the future. The value of an investment in a fund and the income fromit can go down as well as up.Full details of the Aviva Investors products and services are available on request.Aviva Investors is a business name of Aviva Investors UK Fund Services Limited, the Authorised Fund Manager. Registered in EnglandNo. 1973412. Authorised and regulated by the Financial Services Authority. FSA Registered No. 119310. Registered address: No 1.Poultry, London EC2R 8EJ. An Aviva company. www.avivainvestors.co.ukCI061730 10/2012 32