FOR PROFESSIONAL ADVISERS ONLY                                  Baring Multi Asset Fund                                  N...
Multi Asset Fund                         The Baring Multi Asset Team                                                    • ...
Multi Asset Fund              Our approach•   We target RPI +4% absolute returns within 70% of equity risk•   Focus on dyn...
Multi Asset Fund                           Why RPI +4% 10,000,000                                                         ...
Multi Asset Fund                         Does our solution work?  Composite Return & Risk – Annualised  1st January 2003 –...
Multi Asset Fund                       Avoiding a disastrous year is key! Total Return Bid-Bid performance vs. volatility ...
Multi Asset Fund                       Avoiding a disastrous year is key! Dynamic Asset Allocation Fund vs. IMA OE Mixed I...
Multi Asset Fund            Rise of Baring Multi Asset Service• 2009 Year End AUM £9.6m• 2010 Year End AUM £25.0m• 2011 Ye...
Master ClassNew Model Advisers ConferenceAndrew Cole                                9
Philosophy & ApproachSeeking equity like returns with less risk than equities• Active Management of asset allocation – The...
Investment Process                                           Start with blank sheet of paper                              ...
Strategic Asset Allocation                          Forecast Returns & Risk 10 year Asset Class Forecasts (GBP)           ...
Tactical Asset Allocation                                            Economic                                     Risk    ...
Current Portfolio & Themes (as at 31st December 2012)  Concern                                          Implication  U.S. ...
Current Portfolio & Themes (as at 31st December 2012)                          Baring Multi Asset Fund                    ...
Changes to asset allocation since inception    Dynamic Asset Allocation Fund                                              ...
What are you being paid to own an asset class?                      USA Risk Premia – December 2012        Government Bond...
What are you being paid to own an asset class?                      USA Risk Premia – December 2012                       ...
What are you being paid to own an asset class?                      UK Risk Premia – December 2012  Government Bonds      ...
What are you being paid to own an asset class?                      UK Risk Premia – December 2012                        ...
Appendix and Biographies                           21
Baring Multi Asset Targeted Return                    Supplemental notes as of 30th Sept 2012                             ...
Composite performance                                  as of 31st December 2011                           Composite:      ...
Composite notes as of 31st December 2011                               Composite                                    Multi ...
BiographiesAndrew Cole           Investment Director                                                                      ...
Important                       Information For Professional Investors/Advisers only. It should not be distributed to or r...
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Baring asset management

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Baring asset management

  1. 1. FOR PROFESSIONAL ADVISERS ONLY Baring Multi Asset Fund New Model Advisers Conference January 2013Baring Asset Matthew FinchManagement Limited155 Bishopsgate, Andrew ColeLondon, EC2M 3XYTel +44 (0)20 7628 6000Fax +44 (0)20 7638 7928www.barings.comAuthorised and regulated by theFinancial Services Authority
  2. 2. Multi Asset Fund The Baring Multi Asset Team • Team formed in 2002 • Drawing on circa 98 investment professionals* • 2007 launched Dynamic Asset Allocation Fund for DB pension schemes • 2009 launched Multi Asset Fund for DC schemes • £7.2bn assets under management in the strategy as at 30th November 2012Source: Barings as at 30th November 2012 2* Investment Professionals as at 1st January 2013
  3. 3. Multi Asset Fund Our approach• We target RPI +4% absolute returns within 70% of equity risk• Focus on dynamic asset allocation• Recognise that one disastrous year destroys several years’ growth• Diversify in different ways at different times, using external managers where appropriate 3
  4. 4. Multi Asset Fund Why RPI +4% 10,000,000 140 120 1,000,000 100 100,000 80 10,000 60 40 1,000 20 100 0 -20 10 -40 1 -60 1934 1944 1954 1964 1974 1984 1899 1904 1909 1914 1919 1924 1929 1939 1949 1959 1969 1979 1989 1994 1999 2004 2009 UK Equity returns % (RHS)~ Gilt returns % (RHS)~ UK Equity Nominal TR Index (LHS) UK Cash + 4% Index (LHS) UK Cost of Living + 5% Index (LHS) RPI + 4% = Equity like returns with less riskSource: Barclays Equity Gilt Study 2012, 1899 – 2011 4* Cumulative ~ Annual
  5. 5. Multi Asset Fund Does our solution work? Composite Return & Risk – Annualised 1st January 2003 – 30th November 2012* Return (%) Risk (%)** 14.2 14.5 9.7 8.7 8.8 7.9 7.5 0.5 Baring Composite RPI +4.5% FTSE All Share FTSE All World Past performance is no indication of current or future performanceSource: Barings & Morningstar as at 30th November 2012 * Provisional figures only, subject to change. Net of fees. Reference to the index is for comparative purposes only.The composite returns should be considered as supplemental information which complements the Multi Asset GBP Inflation/Cash Targeted Solutions: High Return Composite 5presentation as provided in appendix. **Risk = Standard deviation of monthly returns over the stated period (annualised)
  6. 6. Multi Asset Fund Avoiding a disastrous year is key! Total Return Bid-Bid performance vs. volatility scatter chart over 12 months (from 31 Dec 2010 to 31 Dec 2011) from UK IMA UT and OEICs universe. Rebased in Pounds Sterling (GB) Ann. Performance (%) Key Name Perf. Mean Vol.8.0 A Baring – Multi Asset A Acc 4.61 4.877.0 D B Cazenove – Multi-Manager Diversity A Acc 5.66 4.64 C Henderson – Multi-Manager Income & Growth A 4.57 7.436.0 I G F Mean D Thames River – Distribution A Acc TR 7.07 7.36 B H E Fidelity Multi Asset Strategic NT 4.90 6.835.0 E A C F Aberdeen Multi-Manager Cautious Managed Acc 5.74 7.244.0 G Standard Life Global Abs Ret Strat Ret 5.88 4.70 H Newton Real Return GBP 5.21 5.583.0 4.0 5.0 6.0 7.0 8.0 I IMA OE Mixed Investment 20-60% Shares 5.58 6.14 Annualised Volatility Past performance is no indication of current or future performanceSource: Morningstar, 7th December 2012 6
  7. 7. Multi Asset Fund Avoiding a disastrous year is key! Dynamic Asset Allocation Fund vs. IMA OE Mixed Investment 20-60% Share Sector 17th Jan 07 1st Jan 08 1st Jan 09 1st Jan 10 1st Jan 11 1st Jan 12 1st Jan 08 to to to to to to to 31st Dec 07 31st Dec 08 31st Dec 09 31st Dec 10 31st Dec 11 30th Nov 12 30th Nov 12 Group / Investment Return Return Return Return Return Return Return DAAF vs. IMA Cautious Managed Baring Dynamic Asset 8.86 -5.44 20.23 10.29 1.47 5.13 45.60 Allocation I GBP IMA OE Mixed Investment 20-60% Shares 1.57 -15.68 16.32 9.08 -1.84 7.58 15.31 (Cautious Managed Sector) Past performance is no indication of current or future performanceSource: Morningstar, 7th December 2012 7
  8. 8. Multi Asset Fund Rise of Baring Multi Asset Service• 2009 Year End AUM £9.6m• 2010 Year End AUM £25.0m• 2011 Year End AUM £95.8m• 2012 Year End AUM £287.0m• £7.2bn in our inflation plus strategy (incl. Multi Asset Funds & Dynamic Asset Allocation) 8
  9. 9. Master ClassNew Model Advisers ConferenceAndrew Cole 9
  10. 10. Philosophy & ApproachSeeking equity like returns with less risk than equities• Active Management of asset allocation – The most important generator of returns• Understanding Risk & Diversification – Recognising changing correlations & risk characteristics• Simple building blocks – Clear and transparent implementation Disciplined process with strong risk controls 10
  11. 11. Investment Process Start with blank sheet of paper RISK MANAGEMENT Identify best asset classes 10 year optimal strategy Anticipate and respond to events: Dynamic Allocation Choose the best investmentsSource: Barings, as at 4th January 2013 11
  12. 12. Strategic Asset Allocation Forecast Returns & Risk 10 year Asset Class Forecasts (GBP) UK Equity Corporate Credit 28% Return (% per annum) 20% 14.0 Emerging Equities 12.0 LATAM Equities Emerging Index Linked Bonds 10.0 Emerging Asia Equities 12% Hong Kong Equities Property 8.0 UK Equities 7% European Equities EM Bonds US Equities Alternatives Intl Equity 4% 29% 6.0 Japan Equities UK Corporate Credit Predicted Risk* 10.8% 4.0 Hedge Funds Property Gold UK Cash UK Index Linked 2.0 UK Gilts Risk (% per annum) 0.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0Source: Barings as at 23rd March 2012 12* Risk (standard deviation of annualised returns)
  13. 13. Tactical Asset Allocation Economic Risk Country & Sector Sub Group (8) Sub Group (7) Sub Group (7) Growth, inflation, interest rates, Risk / Valuation measurements Relative attractiveness across Research economic policy countries & sectors Are we being paid to own an Where are economies in their cycle? asset class Where are the opportunities & risks? Strategic Policy Group (8) Collation & Interpretation Ranking asset classes and identifying themes Multi Asset Team (12) Portfolio Construction Setting risk budget Allocating the risk budget, based on SPG scoresImplementation Choosing the best investmentsSource: Barings as at 4th January 2013 13Brackets = number of people in that team
  14. 14. Current Portfolio & Themes (as at 31st December 2012) Concern Implication U.S. budget process on-going. Monetary U.S. the major uncertainty for 2013 policy clearer Chinese economy troughed but Abandoned and now cheap China / Asia acceleration slow and rebalancing still growth themes of interest required European Central Bank has toolbox to Markets sense Governments doing the prevent financial market failure of the right thing. Will the electorates think the Euro same? Earnings expectations still vulnerable wary Global growth still slow of expensive defensives Corporate sector hording cash; nervous Supportive of credit still; but high yield about investment favoured over investment gradeSource: Barings as at 31st December 2012 14
  15. 15. Current Portfolio & Themes (as at 31st December 2012) Baring Multi Asset Fund Fixed Income 41.1 International Equity 18.8 Cash Emerging Market Debt Emerging Equity Alternatives 6% In house 1.8 Third party 7.4 10% Corporate Bond Global Equity UK Equities In house 4.8 In house 11.4 24% Third party 16.2 Alternatives 9.7 Convertible Bonds Commodities Third party 5.4 Gold 5.5 Australian Bonds Property Direct 4.6 In house 3.0 U.S Gov’t Third party 1.2 Direct 5.0 Cash 6.0 UK Gov’tFixed Income Intl Equities 41% 19% Direct 3.3 In house 39% UK Equity 24.4 Third party 37% In house 17.4 Direct 18% Third party 7.0 Cash 6% Total 100%Source: Barings as at 31st December 2012.The ‘Cash’ weight, where applicable, may include cash on deposit, holdings in cash funds, short dated T-Bills (or equivalent), forward FX, income receivable and futures 15initial, margin and cash backing deposits. Futures are allocated on an economic exposure basis.
  16. 16. Changes to asset allocation since inception Dynamic Asset Allocation Fund Multi Asset Fund (%)100 80 60 40 20 0 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-07 28-Sep-07 30-Sep-08 30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 21-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Jan-07 30-Jun-07 30-Jun-08 30-Jun-09 30-Jun-10 30-Jun-11 30-Jun-09 30-Jun-10 30-Jun-11 30-Jun-12 30-Jun-12 UK Equity Overseas Equity UK Gilts Overseas Govt Bonds Corporate/Convertible Bonds Themed Fixed Fund* Property Alternatives Cash/Near CashSource: Barings, as at 31st December 2012, Gross ExposureDAA Inception date: 16th January 2007; MAF Inception date: 20th March 2009 16*Themed Fixed Fund composition: Aug ’07-Feb ’08: 0-3yr Ster bonds. Mar ’09-June ’10: Overseas ILGovt; Aug 10-to date: EMD
  17. 17. What are you being paid to own an asset class? USA Risk Premia – December 2012 Government Bonds Inflation Linked Bonds Breakeven Inflation Rates Credit Spreads 3.3 672 5.2 622 2.8 2.5 572 4.7 522 2.3 472 4.2 2.0 1.8 422 3.7 372 1.3 1.5 322 3.2 272 0.8 222 1.0 2.7 0.3 172 122 2.2 -0.2 0.5 72 Max Current Average 10 year Market expectations of Inflation are high, index linked bonds unattractive…Source: Barings, December 2012 17
  18. 18. What are you being paid to own an asset class? USA Risk Premia – December 2012 ERP Trade-off Equities 6.25% 5.75% 5.25% 5% 4.75% 4.25% 3.75% 4% 3.25% 2.75% 2.25% 3% 1.75% 1.25% -60% -40% -20% 0% 20% 40% 60% 2% Current Consensus Consensus - 1 Year(s) Ago Consensus - 5 Year(s) Ago Current Trade-off Trade-off - 1 Year(s) Ago Trade-off - 5 Year(s) Ago Earnings expectations down slightly from last yearSource: Barings, December 2012 18
  19. 19. What are you being paid to own an asset class? UK Risk Premia – December 2012 Government Bonds Inflation Linked Bonds Breakeven Inflation Rates Credit Spreads 4.15.0 2.3 614 3.9 5644.5 3.7 1.8 514 3.5 4644.0 414 1.3 3.3 364 3.1 3143.5 0.8 2.9 264 214 2.73.0 0.3 164 2.5 1142.5 -0.2 2.3 64 Max Current Average 10 year Room for inflation expectation to move higher. Credit spreads no longer cheapSource: Barings, December 2012 19
  20. 20. What are you being paid to own an asset class? UK Risk Premia – December 2012 ERP Trade-off Equities 12.25% 8% 10.25% 8.25% 7% 6.25% 6% 4.25% 2.25% 5% 0.25% -60% -40% -20% 0% 20% 40% 60% 4% Current Consensus Consensus - 1 Year(s) Ago Consensus - 5 Year(s) Ago Current Trade-off Trade-off - 1 Year(s) Ago Trade-off - 5 Year(s) Ago Earnings expectations negative, room for upward revisions ?Source: Barings, December 2012 20
  21. 21. Appendix and Biographies 21
  22. 22. Baring Multi Asset Targeted Return Supplemental notes as of 30th Sept 2012 INFORMATION This data is supplemental information for the purpose of the GIPS standards, and MUST be used in conjunction with the accompanying fully Compliant GIPS Presentation Composite: Multi Asset: GBP Inflation/ Cash Targeted Solutions: High Return Primary Benchmark: RPI + 4.5% Reporting Currency: Pound Sterling (GBP) Composite Inception: 30th June 1999 Date: 30th September 2012 Composite Mnemonic: SUP20 Returns (period over 1 year annualised) End of Period Assets Composite Composite Assets Benchmark Period Composite Accounts (Millions) Period Gross of Management Fees 1 2 3 Latest Qtr. 13 6,576.64 1 Quarter 1.75 1.83 1.83 1.18 YTD 4.64 5.86 5.91 3.72 Benchmarks Description 1 year 7.20 8.38 8.45 5.01 1. RPI +4.5% UK Retail Price Index +4.5% 3 years 6.83 8.81 8.64 4.87 2. UK CPI +5% UK Consumer Price Index +5% 5 years 5.75 7.98 8.40 6.25 3. 3 Month LIBOR +4%p.a. 3 Month London Inter Bank Offer Rate +4%p.a 7 years 7.70 8.04 8.12 7.16 10 years 10.02 7.89 7.67 5.78 This data is preliminary, not finalised and subject to changeThe firm as defined herein claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliancewith the GIPS standards. The firm as defined herein has been independently verified for the periods from July 1st 1999 to 31st December 2010. The verification reportsare available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firmwide basis and (2) the firms policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does notensure the accuracy of any specific composite presentation. Inception of the Firm is July 1st , 1999. A complete list and description of all composites is available onrequest by sending an e-mail to gips@barings.com. 22
  23. 23. Composite performance as of 31st December 2011 Composite: Multi Asset: GBP Inflation/ Cash Targeted Solutions: High Return Returns: Gross Performance Reporting Currency: Pound Sterling Primary Benchmark: RPI + 4.5% (UK Retail Price Index Plus 4.5%) Date: 31st December 2011 Benchmark 2: UK CPI + 5% (UK Consumer Price Index Plus 5%) Composite Inception: 30th June 1999 Benchmark 3: 3 Month LIBOR +4% (3 Month London Inter Bank Offer Rate +4%p.a) Composite Mnemonic: SUP20 Comparative Returns Dispersion 3 Year Standard Deviation (Ann.) Benchmark Returns “Firm” Composite Composite % of Year Accounts (at Assets Assets “Firm” Composite Benchmark year end) (Millions) (Millions) Assets Benchmark 2 3 High Median Low Composite Gross 1 2 3 2011 1.79 9.97 9.76 4.92 22 5,089.58 2.62 -2.00 -3.64 28,784.00 17.68 7.12 0.76 0.30 0.11 2010 11.03 9.33 8.45 4.77 48 3,881.25 15.28 12.71 10.06 32,185.76 12.06 9.55 0.70 0.26 0.64 2009 21.30 3.95 7.28 5.29 32 2,627.00 25.91 22.26 17.74 28,810.04 9.12 9.34 0.67 0.27 0.64 2008 -8.81 8.67 8.79 9.89 18 1,679.66 -4.86 -15.72 -21.81 22,547.75 7.45 8.23 0.24 0.24 0.22 2007 8.85 8.99 7.44 10.41 22 1,071.38 12.09 6.36 1.29 27,547.21 3.89 6.20 0.21 0.10 0.20 2006 12.18 7.83 7.45 9.10 21 595.57 12.85 10.73 9.01 21,318.72 2.79 5.83 0.13 0.14 0.10 2005 20.31 7.46 7.15 9.00 19 428.54 22.04 19.82 16.30 20,322.07 2.11 7.55 0.08 0.11 0.16 2004 10.53 7.59 6.41 8.89 13 340.57 12.00 10.28 6.05 18,041.04 1.89 11.41 0.21 0.07 0.14 Please use this report in conjunction with the following disclosure 2003 16.62 7.55 6.43 7.90 10 294.01 17.61 16.43 13.72 19,688.47 1.49 13.66 0.21 0.08 0.20 The highest, lowest and median annual return of all portfolios that were included in the composite for the entire year are presented as a measure of dispersion. If dispersion displays N/A, no single constituent in the composite for full calendar year 2002 -14.96 6.21 6.32 8.25 7 255.75 -12.23 -13.56 -15.67 19,611.52 1.30 N/A N/A N/A N/A 2001 -11.65 6.41 6.30 9.34 3 19.08 -10.73 -11.01 -11.28 23,848.99 0.08 N/A N/A N/A N/A Returns (period over 1 year annualised) End of Period Assets 3 Year Standard Deviation (Ann.) Composite Benchmark Benchmark Period Period Composite Accounts Composite Assets (Millions) “Firm” Assets (Millions) % of “Firm” Assets Composite Gross 1 2 3 1 2 3 Latest Qtr. 3.56 2.04 2.10 1.26 Latest Qtr. 22 5,089.58 28,784.00 17.68 7.12 0.76 0.30 0.11 YTD 3.56 2.04 2.10 1.26 *The highest, lowest and median annual return if all portfolios that were included in the composite for the entire year are presented as a measure of dispersion. If Dispersion 1 year 4.89 9.53 9.54 4.99 displays N/A, no single constituent in the composite for full calendar year. ** If 3 year annualised ex post Standard Deviation is not shown, there are not 36 monthly Composite returns available since the inception of the Composite, or the inception of the firm. 3 years 13.41 8.04 8.52 4.91 The firm as defined herein claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the 5 years 6.68 8.11 8.36 6.79 GIPS standards. The firm as defined herein has been independently verified for the periods from 1 July 1999 to 31 December 2010. The verification reports are available upon 7 years 9.22 8.03 8.10 7.46 request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm wide basis and (2) the firms policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific 10 years 7.40 7.81 7.59 7.75 composite presentation. Inception of the Firm is 1 July 1999. A complete list and description of all composites is available on request by sending an e-mail to gips@barings.com.Past performance is not a guide to future performancePlease use this report in conjunction with the following disclosure 23
  24. 24. Composite notes as of 31st December 2011 Composite Multi Asset: GBP Inflation/ Cash Targeted Solutions: High Return• The Firm, as defined herein, has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).• For the purpose of GIPS compliance, the “Firm” is defined as the investment firm Baring Asset Management Limited (and its relevant subsidiaries which are registered with the appropriate regulatory authorities to undertake investment business in those jurisdictions in which they operate) and Baring Asset Management LLC from 31st December 2010, Baring Asset Management Inc. prior to 31st December 2010, (together hereinafter referred to as “the Firm”).• At 27th May 2011 the Private Client Business, comprising both Onshore and Offshore private clients was sold to SG Hambros. From this date all Private Client portfolios that were transferred to SG Hambros (or are in the process of being transferred to SG Hambros) and those Private Client portfolios that have terminated (or are in the process of being terminated) were excluded from the “Firm” as defined herein. This is disclosed as a significant event for the purposes of the GIPS Standard.• Performance results are total, time-weighted and calculated monthly. Gross-of-fee performance results are presented before management and custody fees but after transaction costs and non-reclaimable foreign withholding taxes. Net-of-fee performance results are presented after management fees, transaction costs and non-reclaimable foreign withholding taxes but before custody fees with the exception of North American commingled funds which include custody fees within the management fee. The actual returns will be reduced by the investment management (advisory) fees and other expenses.• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.• The Baring Asset Management pricing policy (or the relevant Fund Administrator pricing policy) is applied to funds in this Composite. These policies include provision that where markets are closed due to holidays or political events, the prices of securities in that market may be adjusted. This may on occasion cause differences to the valuation sources used by the benchmark, and to other funds in the Composite.• The Composite is comprised of multi asset accounts managed for Sterling based clients, which can invest across a broad spectrum of assets with an absolute return target. The investments strategy is to take an extended degree of risk in order to seek to achieve a return in line with the accounts investment objectives. The individual portfolios within the composite have the following current target objectives: 3mth LIBOR +2.5%; 3mth LIBOR +3%; 3mth LIBOR +4%; CPI +4.5%; CPI +5%; Produce Income; RPI +4% (net of fees), RPI +4.5%; RPI +5%; RPI +6%; RPI +7%; To protect Capital & Produce Income; Total Return 7.5%, Total Return 8%, FTSE UK Govt > 15 yr Index. With effect from 1st April 2007 the Composite was renamed from Multi Asset Targeted Solutions GBP RPI +4.5% to + 5.5%. Prior to 1st July 2006 the Composite was named Extended Risk Solutions GBP’. To be included in the composite, each account must be managed with a similar mandate for at least one full month. 2006 the composite was named Extended Risk Solutions GBP.• To be included in the composite, each account must be managed with a similar mandate for at least one full month.• Net-of-fee performance for the Firm is calculated at the constituent account level and deducted monthly using actual client fee schedules. Investment Trusts, Mutual Funds, other Common Investment Funds apply the equivalent standard Institutional Fee scale, which is the maximum fee that institutional clients would be charged for this product. Rebates apply to any Institutional clients invested in Common Investment Funds, thereby the fee that would be charged to Institutional clients would not exceed that deducted. Where performance fee arrangements exist the actual fee paid is applied. Where performance fees are billed annually, in between billing dates the base fee is applied, applying the performance fee for the entire period at the point that it becomes due.• The Composite includes a Commingled Vehicle. The Commingled Vehicle Net of fees performance for inclusion in the Composite Net of Fees performance reflects the deduction of the highest applicable management fee ("Model Net Fee") that would be charged based on the fee schedule appropriate to you for this mandate. Please be advised that the Commingled Vehicle may include other participants that are subject to management fees that are inapplicable to you but are in excess of the Model Net Fee. Therefore, the actual performance of all the participants in the Commingled Vehicle on a net-of-fees basis will be different, and may be lower, than the Model Net Fee performance. However, such Model Net Fee performance is intended to provide the most appropriate example of the impact management fees would have by applying management fees relevant to you to the gross performance of the Commingled Vehicle. Composite net-of-fee performance reflects the weighted average of constituent account net-of-fee returns. Based on the above and taking into account individual client fee arrangements the fee deducted over the last 12 months to the stated reporting date for the composite was 0.49%.• On January 1st 2003 the investment business of Barings (Guernsey) Limited was re-contracted to Baring Asset Management (C.I.) Limited, a legal subsidiary of Baring Asset Management Limited. The Barings (Guernsey) Limited portfolios included in this composite were therefore not contracted legally to Baring Asset Management Ltd before January 1st 2003, the track record however is portable for GIPS purposes. This performance is representative of Baring Asset Management’s fully discretionary management capabilities. All similar mandates would be managed by the same team following the same philosophy and process.• The Composite contains at least one fund valued using midday GMT prices and exchange rates calculated by the Fund Administrator. This may on occasion cause differences to the valuation and exchange rate sources used by the benchmark, and to other funds in the Composite. At 31st March 2011, the valuation basis for midday valued funds changed to a close of business price in each market, using the 4pm WM/Reuters exchange rate. The valuation was calculated by the Fund Administrator. From 1st April 2011 the valuations will be continue to be valued on a close of business basis, using Barings internal valuation system.• For Private Client portfolios the minimum portfolio size for inclusion in the composite is GBP250,000• Each monthly return for the CPI/RPI is calculated on an average of the monthly rate over the prior 12 months.• As at the reporting date two portfolios reinvest capital gains and part of income is paid away and the remainder is reinvested, 11 portfolios reinvests capital gains and but not income and 9 portfolios reinvest capital gains and income, (including dividends and other earnings).• In accordance with Barings error correction policy, the annualised since inception return to 31st March 2011 has been restated. The incorrect numbers were; 5.31% gross, 4.87% net, 7.46% RPI +4.5%, 7.12 UK CPI +5% & 8.39% £3 month LIBOR +4% . The corrected figures are, 6.88% gross, 6.42% net, 7.39% RPI +4.5%, 7.08% UKCPI +5% & 8.46% £3 month LIBOR +4%. The inception date of the composite is 30th June 1999.• In accordance with Barings error correction policy, 3 year ex post annualised standard deviation numbers have been restated for the 3 year period to the year ends at 2002 & 2003. The amendments are: 2002 composite originally 14.93 now N/A, benchmark originally 0.17 now N/A & 2003 composite originally 13.66, benchmark originally 0.22 now 0.21. Prior to Jan 2001 return data for accounts in the composite was not produced on a monthly basis. As a result there are not 36 monthly observations available for year end 2002 & therefore 3 year annualised standard deviation is not available.• This composite may include performance from certain funds that are not offered in the US and not available to US residents.• Some portfolios run according to Baring Asset Management’s Multi Asset: GBP Inflation / Cash Targeted Solutions: High Return strategy, have on occasion, used equity index futures for the purpose of adjusting asset exposure and liquidity. Since Q1 2011, on occasion short positions have been taken in some futures for efficient portfolio management purposes. Leveraged strategies have not been employed. 24
  25. 25. BiographiesAndrew Cole Investment Director Last updated: 4 January 2012 Global Multi Asset Group Location: London Investment Experience: 33 YearsAndrew is a member of the Global Multi Asset Group responsible for the management of Multi Asset portfolios. He is lead manager of the Baring MultiAsset Fund and a number of segregated portfolios. Andrew was appointed to the Strategic Policy Group (SPG), the company’s global macro researchand Asset Allocation Team in 2005. He is chair of the SPG Risk Sub Group and a member of the Economic Group. Both groups provide key inputs tothe debate of the monthly SPG meetings. Andrew joined the Fixed Income department at Baring Asset Management in 1986. He was appointed aDirector in 1994 and joined the Multi Asset Portfolio Group in 1995.Matthew Finch Sales Director - Platforms/IFAs Last updated: 4th January 2012 Location: London Industry Experience: 23 YearsMatthew joined the Barings UK Retail Sales Team in 2009 and is responsible for our third party and intermediary clients, including UK platforms andinternational life companies. Prior to joining Barings, Matthew spent eight years at Credit Suisse Asset Management, most recently as Southern UKSales Manager, responsible for third party accounts. 25
  26. 26. 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 Services Authority and in jurisdictions other than the UK it is provided by the appropriate Baring Asset Management company/affiliate whose name(s) and contact details are specified herein. 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. Where yields have been quoted they are not guaranteed. 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. This document may include internal portfolio construction guidelines. As guidelines the fund is not required to and may not always be within these limits. These guidelines are subject to change without prior notice and are provided for information purposes only. This document may include forward looking statements which are based on our current opinions, expectations and projections. We undertake no obligation to update or revise any forward looking statements. Actual results could differ materially from those anticipated in the forward looking statements. This document must not be used, or relied on, for purposes of any investment decisions. Before investing in any product, we recommend that appropriate financial advice should be sought. The Key Investor Information Document (KIID) must be received and read. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. Compensation arrangements under the Financial Services and Markets Act 2000 of the United Kingdom will not be available in respect to any Offshore Fund. Research Material Baring Asset Management only produces research for its own internal use. Where details of research are provided in this document it is provided as an example of research undertaken by Baring Asset Management and must not be used, or relied upon, for the purposes of any investment decisions. The information and opinions expressed herein may change at anytime. For data sourced from Morningstar: © Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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. An S&P Capital IQ fund grading represents an opinion only and should not be relied on when making an investment decision. Past performance is not indicative of future results. Currency exchange rates may affect the value of investments. Copyright @ 2012 by McGraw-Hill International (UK) Limited (S&P), a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. Version 09/SD 26Compliance (London): 7th January 2013

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