active viewpoint · diversified portfolio of listed real assets can serve as a creative solution...

These are challenging times for income investors. Stable and growing income streams are more essential than ever in a world of low interest rates, ongoing quantitative easing (QE) and increased risk.

In this environment, a diversified portfolio of global listed Real Assets, with growth driven by the mega-trend of urbanisation, offer a compelling income solution.

www.martincurrie.com

GLOBAL REAL INCOME

JULY 2020 FOR INSTITUTIONAL, PROFESSIONAL AND WHOLESALE INVESTORS ONLY

ACTIVEVIEWPOINT

Daniel FitzgeraldPortfolio ManagerMartin Currie Australia

The Martin Currie Global Real Income strategy invests across the globe, in high-quality Real Assets that operate in regions that are experiencing population and urbanisation growth.

Ashton ReidPortfolio ManagerMartin Currie Australia

INVESTING TO IMPROVE LIVES™

Future defining demographic mega trends deliver a unique income solution

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The Martin Currie Global Real Income strategy has been specifically designed for investors looking for a high, stable and growing income stream, with lower volatility than the broader equity market.

Investors seeking a dependable income stream face many challenges. Low economic growth, high debt burdens, share market volatility and low interest rates have left few sound income options. Many of these challenges have been compounded by the far-reaching impacts of the COVID-19 crisis.

We know that the higher capital volatility of equity markets and the concentrated nature of equity benchmarks, can make investors feel uncomfortable about an exposure to ‘growth’ assets.

Passive or smart-beta high yield equity approaches may offer a high headline yield, but they do not consider the risk of impaired income, concentration issues, nor do they offer inflation protection to maintain a standard of living.

Traditional unlisted infrastructure or property strategies may be less volatile, but can have poor diversification, liquidity and lack pricing transparency.

Derivatives strategies for income enhancements or capital protection can often be costly and thus inefficient.

For income investors, we believe that an investment in a diversified portfolio of listed Real Assets can serve as a creative solution that addresses the above issues, providing investors with a growing, liquid, transparent income stream with volatility typically sitting between Fixed Income and Equities on the risk/return spectrum.

The Martin Currie Global Real Income strategy invests across the globe, specifically in high-quality Real Assets that operate in developed and emerging regions that exhibit strong population and urbanisation growth.

In the following paper we look at Global Real Assets as an asset class, and discuss why a strategy that is focused on the everyday assets driven by demographic mega trends, is a compelling solution for your income needs:

Real Assets: an essential part of a growing population 3

Why global and why now? 4

What has COVID-19 meant for Real Assets? 8

Navigating the market to identify the best Real Assets 9

Martin Currie’s Real Asset expertise 12

Global Real Income strategy key facts 13

Summary 14

HOW THE MARTIN CURRIE GLOBAL REAL INCOME STRATEGY FITS IN AN INCOME PORTFOLIOThe strategy adds to the suite of our award-winning Australian and Asia Pacific Real Income strategies that also invest in this unique blend of listed Real Assets.

We see this capability as being appropriate for any investors looking for:

• a lower-risk global/international equities exposure with a focus on income; or

• global Real Asset exposure across infrastructure and property.

Unique blend of listed Real Assets

• Lower risk income exposure that sits between equities and bonds;

• Less volatility than wider market or sector strategies;

• Population and urbanisation driven growth avoids business cycle risk;

• Established brownfield assets provide high recurring cash flows.

REAL ASSETS: AN ESSENTIAL PART OF A GROWING POPULATION High-quality Real Assets, such as REITs, utilities and other essential infrastructure, are the tangible building blocks of the economy that most of us use every day. You may not realise that:

• when you wake up and turn on the lights and other appliances, they are typically powered by listed electricity utilities and network providers.

• the water in your shower may be heated by gas, delivered to your house by pipe owners and distribution utilities.

• your daily commute is on listed transport infrastructure, and a visit to that office building is possibly owned by a REIT – as is the shopping centre you visit on the way home.

• logistics assets like ports, rail and distribution sheds play a critical role in delivering everyday needs for your convenience.

ACTIVE VIEWPOINT: GLOBAL REAL INCOME 03

Companies like these are an integral part of everyday life. As such, our long-standing belief is that the growth of high-quality listed Real Asset securities is driven mainly by demographic themes. Their everyday use nature means that their demand profile is relatively inelastic, they are therefore not pegged to the business or economic cycle.

Quite simply, the more a population grows, the higher the volume of demand for Real Assets serving their everyday needs. There will be more people driving on established toll roads, using airports, visiting shopping malls and consuming gas and electricity – to name a few of the increased demands. Importantly, asset owners typically have the option to grow supply when it is most opportune for them.

As a result, high-quality, established (brownfield) listed Real Asset securities can sustain dividends, grow distributions, often above inflation, and are likely to be less volatile than the wider equity market or sector specific strategies.

Real Assets have a unique connection to these demographic themes, and we believe that a diversified portfolio of high-quality global listed Real Assets can provide investors with a stable and dependable income that few other asset classes can match.

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WHY GLOBAL AND WHY NOW?An investment into global Real Assets taps into the future defining, mega trend of population growth and urbanisation. Focused on high growth target cities and regions, a large investment universe with a deep pool of high-quality companies serves as a foundation to create a unique and diversified blend of global listed REITs, infrastructure and utilities in the Martin Currie Global Real Income strategy.

The COVID-19-induced broad market falls provide an attractive entry point to high-quality Real Assets exposed to these themes. Going forward, while the COVID-19 fallout has created significant economic uncertainty, select Real Assets can continue to deliver.

Population and urbanisation mega trends are global, but selective

Rapid growth in urban-based populations is translating into significant demand for Real Asset services. This global population and urbanisation mega trend is enduring and is expected to hold well into the future.

Urbanisation growth in the last several decades has been significant and we expect this to remain the case. Globally, the UN forecast an urban growth rate of 1.4% p.a. from 2020-2050, which is approximately twice that of the overall growth. This will add an extra 2.5 billion people to city-based populations in that period1.

This will undoubtedly provide a strong tailwind and attractive demand profile for Real Assets in those areas and cities.

1Source: United Nations, Department of Economic and Social Affairs, Population Division (2018); World Urbanization Prospects: The 2018 Revision, Online Edition.

*Annual growth rate for US states calculated from 2010 to 2020.

Urban population

0

1

2

3

4

5

6

7

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Rural population

Number of people living in urban and rural areas:1

Billio

n

While the world urbanisation growth trend is promising, not all countries and cities are growing. We have looked at the demographics across cities in all countries where the Real Assets in our investment universe operate, and those without urban population growth are less favourable.

While we have seen strong examples in Australia and Asia of urban population growth, as captured by our exisiting Australia Real Income and Asia Pacific Real Income strategies, city-based population growth is also prominently exhibited in other regions, particularly in North America, select parts of Europe as well as Latin America.

We have identified exciting high-quality Real Asset opportunities based in cities with attractive population growth rates such as Atlanta, London, Calgary and Toronto, and we specifically avoid Real Asset companies exposed to low growth cities such as Tokyo and Detroit.

Bangalore (IN)

Beijing (CN)

Guangzhou (CN)

Calgary (CA)

Melbourne (AU)

Texas* (US)

Florida* (US)Toronto (CA)

London (UK)

Mumbai (IN)

Tokyo (JP)

Osaka (JP)

Genova (IT)

Detroit (US)

Historical annual growth rates of select globalcities/regions (2005) to (2015)1

(1) 0 1 2(%)

3 4 5

4.1%

3.6%

2.6%

2.6%

2.2%

1.6%

1.6%

1.5%

1.4%

1.1%

0.4%

0.3%

(0.3%)

(0.4%)

Target cities

05ACTIVE VIEWPOINT: GLOBAL REAL INCOME

High-quality Real Assets can be found in growing markets

Globally, we can access a deep pool of attractive opportunities represented by over 500 companies with a market capitalisation that is approximately seven times the size of equivalent assets in the Asia Pacific region5.

We also gain access to an appealing mix of Real Asset sub-sectors not readily available in local markets, with sizeable opportunities in renewable energy, ports and rail and diversifying REIT sectors like multi-family, healthcare and student accommodation.

The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.2Source: Statistics Canada (2017); Focus on Geography Series, 2016 Census.

3Source: United Nations, Department of Economic and Social Affairs, Population Division (2018). The World’s Cities in 2018—Data Booklet (ST/ESA/ SER.A/417).

4Source: Enbridge (2020); Investment Community Presentation, March 2020.

5Source: FactSet; as at 30 June 2020.

RISING DEMAND FOR GAS FROM A GROWING URBAN POPULATION Enbridge Inc. is the largest pipeline company in North America, with monopoly-like assets and the longest crude oil and liquid hydrocarbons transportation system extending from Canada down to the US Gulf Coast. Their natural gas distribution assets in Toronto, Canada have benefited from strong population growth in action.

2002 2018

Here we show an area where Enbridge’s gas network has expanded within the city of Vaughan, Ontario, 41 kilometres northwest of the Toronto city centre. The left image shows the vast area of farmland during the 2000s. Between 2011 and 2016, dwellings in Vaughan increased by more than 94,000, or 1.8% p.a.2

Toronto’s population grew by 1.5% p.a. from 2000 to 2018 – an increase of 2.1 million people3. Enbridge is expected to add 50,000+ new gas connections per year, representing approximately 1.3% growth p.a. for the foreseeable future4.

Globally, we can access a deep pool of attractive opportunities represented by over 500 companies with a market capitalisation that is approximately seven times the size of equivalent assets in the Asia Pacific region5.

ACCESS TO DIVERSIFIED REAL ASSET SUB SECTORS Mid-America Apartment Communities REIT is the largest owner of apartments in the US, headquartered in Memphis, Tennessee. Founded in 1994, the Multi-family REIT has a massive footprint in the southern states of the US which are facing the largest amount of population growth going forward, providing a notable amount of demand for their apartments and assets.

As of 31 January 2020, the company owns 301 apartment communities across 16 states, containing more than 100,000 apartment units and four office buildings, totalling more than 260,000 square feet. Their focus on the Sunbelt region is a key differentiator versus peers.6

Asset: MAA Centennial Park, Atlanta, US

A broader global universe gives us access to not only these different types of Real Assets, but a much deeper pool of appealing natural monopolies. For example, in Australia we have only one high-quality pipeline group (APA Group), but when we look globally we can identify more than a dozen pipeline companies of a similar size and quality, each with their own geographical natural monopoly.

The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.6Source: Martin Currie Australia & company reports; as at 30 June 2020.

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A broader global universe gives us access to not only these different types of Real Assets, but a much deeper pool of appealing natural monopolies.

NATURAL MONOPOLIES APPEAR GLOBALLY National Grid is a regulated multinational electricity and gas utility company as well as one of the largest investor owned utility companies in the world. Founded in 1989 and headquartered in London, their assets are geographically exposed to the United Kingdom and the United States (New York, Massachusetts and Rhode Island). As a natural monopoly, National Grid has strong pricing power and defensiveness, with very high barriers to entry.7

Asset: Grain LNG Terminal, UK

Our analysis of the global Real Asset universe reveals more large and liquid companies, with long histories of consistently growing dividends. This not only highlights the high-quality traits of Real Asset companies we see on a global basis, but also the power of a strong Real Asset franchise.

HIGH QUALITY REAL ASSETS AVAILABLE GLOBALLYSouthern Company, with a 72-year track record of paying quarterly dividends, has never cut its dividend over that time. It is a large US utility operating across transmission, distribution and generation, with interests in a range of southern states, and serves more than nine million customers. Southern Company is a regulated business, with a strong market position in its key markets and a monopoly position in Georgia and Alabama.7

Asset: Plant Vogtle, Georgia, US



WHAT HAS COVID-19 MEANT FOR REAL ASSETS?As the COVID-19 crisis has unfolded, it is no understatement to say that some Real Assets were in the eye of the storm, as the Government’s enforced social distancing rules saw a breakdown in everyday behaviours, enforced lockdowns to all but essential services and significant uncertainty around the time needed to return to a normal world. Real Assets as a whole, including those held in our portfolios, saw unprecedented GFC-like market falls in March, and were unusually one of the weakest sectors in the broad market sell-off during that time.

But equally, it is important to stress that not all Real Assets are the same. Lock-down rules have significantly affected some Real Assets in the short term, such as shopping centres, airports and toll roads, while we have seen less impact to pipelines & networks, utilities, regulated rail, data centres and supermarket anchored retail. The differences have been profound.

While liquidity issues for the unlisted worlds of property, infrastructure and over the counter credit have been under the spotlight, we saw listed Real Asset liquidity hold firm and, in many cases, increase. We would reflect that it is in times of crisis, that listed markets offer transparency of pricing and liquidity when you need it most.

We are cognisant that COVID-19 presents some short-term dividend risks, but in some cases Real Assets are being priced for a permanent reduction in income. In our view, a lasting fall in income is unlikely given the artificial nature of enforced social distancing and we continue to move portfolios towards Real Assets that continue to prosper in this environment.

As COVID-19 lockdown restrictions have eased, we are encouraged by the recovery in everyday activity levels, as indicators like foot traffic and road movements have moved back quickly towards pre-crisis levels; this does emphasise the artificial nature of lockdowns. We have also seen rent collection improvements in those areas most affected. Therefore, our expectation is that Real Assets cash flows, dividends and ultimately pricing will snap back faster than the broader economy.

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REITS

• Shopping centres

• Office & industrial sheds

• Data centres

• Residential REITs

• Healthcare REITs

Infrastructure

• Toll roads

• Airports

• Railroads and ports

• Telco towers & fibre networks

Utilities

• Water utilities

• Gas and electricity grids

• Multi-utilities & pipelines

• Solar and Wind Farms

NAVIGATING THE MARKET TO IDENTIFY THE BEST REAL ASSETSIt is important to note that not all Real Assets are equal for investors seeking a high, stable and growing income stream with lower risk.

We avoid volatile Real Assets with low income

In their definition of Real Assets, some other Fund Managers include esoteric investments such as:

We deem these other sectors, combined or on their own, to be not appropriate for a low risk income solution as they are volatile, more tied to the business cycle and in many cases do not pay a stable distribution.

We look for ‘Everyday’ assets designed for income growth

Through our extensive research and experience in this space, we have observed that a specific blend of listed securities from REITs, utilities and infrastructure, best suit the needs of income investors; offering better risk-adjusted returns than a concentrated exposure to any one sector on its own.

We uniquely define Real Assets by their everyday use nature; they form the tangible building blocks of the economy and this makes them inherently low risk.

Listed commodities,gold or resource securities

Property developers

Timber/agriculture Inflation-linked bonds

Unlisted investmentsin property, utilities,infrastructure

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We focus on high-quality Real Assets

When analysing each Real Asset security, our analysts look for what we call the ‘essential ingredients’. These are key attributes that identify a security as being appropriate for income investors.

Once a stock is deemed to have these key ingredients, it is then researched using Martin Currie Australia's (MCA) multi-lensed disciplined and repeatable four pillars of Value, Quality, Direction and Sustainable Dividend.

Essentialingredients

Growthdynamic

Pricingpower

ESG

Strong balancesheet

Recurring cashflows with low

volatility

Dominantassets

The 'essential ingredients' of quality assets

Growth dynamic As we look for a population growth dynamic, we are attracted to Real Assets that are in growing cities or regions, which means more demand for the services these companies provide. We also look at a company’s strategy for growth and assess their capital expenditure needs.

Pricing power This is the ability for a company to raise prices without losing business to competitors. Pricing power can be assessed by looking at the overall market structure, market share, concentration of tenant/customer base, a company’s competitive advantage, as well as how big the profitability buffer is from pricing power it has compared to competitors.

ESG We believe that ESG factors can impact normalised earnings and long-term intrinsic value of companies, and therefore their long-term performance. Integrating ESG analysis provides us valuable insight into the quality of management at the companies we invest in. It helps us identify good management teams, understand their motivation, and determine whether their strategies and interests are aligned with minority investors.

Strong balance sheet A company’s strong balance sheet is demonstrated through various metrics, including but not limited to gearing level, debt maturity profile and liquidity, in conjunction with credit ratings. We want to ensure that a company is resilient through various cycles.

Recurring cash flows with low volatility

This ingredient strengthens our confidence in a company’s operations across business or economic cycles, as well as in its ability to give back to shareholders. By focussing on established brownfield assets that provide high recurring cash flows, we can avoid inappropriate development risk inherent in ‘greenfield’ Real Asset projects.

Dominant assets We assess how competitive and well-located a company’s assets are in their catchment. Dominant assets will have a greater degree of pricing power and stability in cash flows.


AN ATTRACTIVE RENEWABLES EXPOSUREEngie Brasil Energia is the largest private power producer in Brazil, founded in 1899 and headquartered in Florianópolis. Brazil has one of the largest hydro power industries in the world as well as significant hydro potential. They own centralised generation with installed capacity of approximately 10 gigawatts in 61 power plants (about 6% of the country’s capacity), power transmission of 2,800 kilometres of power lines in southern and central Brazil, the largest natural gas transportation network in the country transecting ten states and 191 cities, as well as distributed solar generation in 17 states.8

Engie Brasil is a sizeable and liquid company as the largest independent power producer in Brazil, with a well-diversified customer base, reasonable gearing and a credit rating one notch above sovereign bonds. They are also well down the pathway to a sustainable future with clean, renewable generation with minimal thermal exposure.

Asset: Jaguara Hydroelectric Power Plant, Brazil

These essential ingredients give us a solid framework to identify the best Real Assets, and they are all interlinked. The dominant industry positions that quality Real Assets typically have in their key catchments gives them an in-built ability to raise their prices over time. This pricing structure, inelastic demand, high recurring cash flows and less exposure to business cycle risk, helps to protect income against inflation and provide income growth.

Our non-traditional approach puts income at the heart of the product design

The Global Real Income strategy is completely benchmark unaware. For income investors, we don’t think it is appropriate to include any particular security in our portfolio just because it has a large weight in an arbitrary index.

The portfolio is constructed on a bottom-up basis, taking into consideration the research outputs from the MCA team's four pillars of Value, Quality, Direction and Sustainable Dividend, using strict security limits as well as geographic and sectorial diversification rules. This benchmark unaware portfolio construction ensures the quality and diversification to help avoid the adverse impact of an income shock to any individual holding.

The result is a well-diversified portfolio of the high-quality listed Real Assets that is designed to provide investors with a high, stable and growing income stream, with lower volatility than the broader equity market.


MARTIN CURRIE’S REAL ASSET EXPERTISE Our Real Assets franchise builds on MCA's proven multi-lensed process and long-term experience in investing in listed Australian Real Assets since 2010 and Asia Pacific Real Assets since 2016.

Martin Currie’s suite of Real Income strategies are managed by the experienced MCA Real Asset team, comprising of portfolio managers Daniel Fitzgerald, Ashton Reid, Andrew Chambers, and Raven Vi, each with specialised research expertise.

The Martin Currie Global Real Income strategy is co-managed by Portfolio Managers Daniel Fitzgerald, and Ashton Reid.

Team member Investment experience Firm tenure Role in Global Real Income strategy

Daniel Fitzgerald, CFA Portfolio Manager

20 years 8 yearsLead Portfolio Manager

Research: Global Real Assets

Ashton Reid, CFA Portfolio Manager

28 years 23 yearsCo-Portfolio Manager

Research: Australian REITs

Andrew Chambers Portfolio Manager

25 years 8 yearsResearch: Australian and New Zealand listed property, utilities, infrastructure

Raven Vi Junior Analyst

4 years 1 year Research: Global Real Assets

Insights also gained from: MCA investment team Martin Currie Global investment floor

Our Real Asset specialists gain significant benefit from close collaboration within the broader, well-resourced and experienced MCA investment team as well as the broader Martin Currie Global investment floor9.

Significant investment expertise and rigour gained through our peer investment thesis review, quantitative research effort and common execution across our MCA product platform. This is facilitated by a shared tool set and common investment focus on four pillars of Value, Quality, Direction and Sustainable Dividend.

9Source: : Martin Currie Australia, as at 30 June 2020.

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GLOBAL REAL INCOME STRATEGY KEY FACTS

Our differentiated approach

• Income focused: True to label, client-objective-oriented strategy with incomeat heart

• Unique investment universe:Blend of global listed REITs, infrastructure and utilities

• Differentiated approach:MCA's unique multi-lensed approach

• Benchmark unaware:Identifies the best Real Assets to avoid income shocks

• Specialist team:Exceptional breadth and depth within our Real Asset capability

Our diversified portfolio

By placing client income needs at the heart of the benchmark unaware product design, the Martin Currie Global Real Income strategy can deliver

• Attractive uncorrelated total return

• Above average dividend yield

• Lower-than-market total risk outcome

• Higher quality portfolio than the broader market

Key facts Long-term objectives Earn a pre-tax yield income yield above the MSCI AC World Index yield

Earn an after-fee return in excess of the Performance Benchmark which consists of 50% FTSE EPRA/NAREIT Global Real Estate Index and 50% FTSE Global Core Infrastructure 50/50 Index in Australian dollars over rolling three-year periods

Investment universe Global listed Real Asset securities/All-cap

Benchmark Benchmark unaware

Market capitalisation All-Cap

Regional limits Max country weight 40%

Sector limits Unconstrained

Security limits Absolute 8% and Max 40% in securities >5%

Number of securities 30-50

Portfolio turnover

Forecast tracking error

Inception date

How to access

Typically 25% p.a.

We do not target tracking error but total risk outcome is typically 80% of the market

July 2020

Segregated mandate Legg Mason Martin Currie Global Real Income Fund (an Australian Unit Trust)

Investment vehicles only available in certain jurisdictions. The characteristics shown are guidelines only and are not hard risks limits.

ESG analysis fully integrated

All Martin Currie portfolios focus on Stewardship

ESG

SUMMARY Our unique blend of global listed REITs, infrastructure and utilities is designed to capture the upside from the global megatrend of urbanisation, whilst avoiding growth driven by the business cycle. We believe that the longer-term nature and breadth of the Real Assets that the Global Real Income strategy invests in will continue to be integral in continuing to satisfy every day needs of the ever-growing global population today and tomorrow.

The current environment continues to be challenging for income investors, with low bond yields and equity market volatility. Global listed Real Assets offer an attractive alternative source of income with less volatility than wider market or sector strategies. We would also highlight the benefits of listed markets where transparency on pricing and liquidity is available when you need it most.

With a clear investment philosophy, MCA's proven multi-lensed approach, and an experienced Real Asset team, we believe that the Global Real Income strategy offers a compelling liquid, transparent and low volatility income solution.

ABOUT MARTIN CURRIE

INDEPENDENTAFFILIATE OFLEGG MASON INC.

TOTAL ASSETS UNDERMANAGEMENT US$14 BILLION

ACTIVE EQUITYEXPERTISE AVERAGE 20YEARS’ INDUSTRYKNOWLEDGE

PRI A+ RATING ACROSS STRATEGY& GOVERNANCE,INCORPORATIONAND ACTIVEOWNERSHIP

OFFICES LOCATEDIN EDINBURGH,LONDON,NEW YORK,MELBOURNE &SINGAPORE

CONTACT US

Mel Bucher

Co-Head of Global Distribution

T + 44 (0) 131 479 4748M +44 (0) 758 414 7720E [email protected]

Kimon Kouryialas

Co-Head of Global Distribution

T + 61 (0) 3 9017 8640M +61 (0) 4 1737 7431E [email protected]

Source: Martin Currie and PRI as at 30 June 2020. PRI ratings are for activity for the period 1 January 2017 – 31 December 2018. A copy of the PRI’s assessment of Martin Currie and methodology is available on request. Martin Currie ranks in the top 7% for ownership in the Listed Equity – Investment manager peer group.

IMPORTANT INFORMATION

This information is issued and approved by Martin Currie Investment Management Limited (‘MCIM’). It does not constitute investment advice. Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.The information contained in this presentation has been compiled with considerable care to ensure its accuracy. But no representation or warranty, express or implied, is made to its accuracy or completeness. This document has been prepared for professional investors, it is intended for the recipient only and may not be distributed to third parties. The document does not form the basis of, nor should it be relied upon in connection with, any subsequent contract or agreement. It does not constitute, and may not be used for the purpose of, an offer or invitation to subscribe for or otherwise acquire shares in any of the products mentioned.Past performance is not a guide to future returns.The distribution of specific products is restricted in certain jurisdictions, investors should be aware of these restrictions before requesting further specific information.Martin Currie has procured any research or analysis contained in this presentation for its own use. It is provided to you only incidentally, and any opinions expressed are subject to change without notice. The views expressed are opinions of the portfolio managers as of the date of this document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.Please note the information within this report has been produced internally using unaudited data and has not been independently verified. Whilst every effort has been made to ensure its accuracy, no guarantee can be given.Some of the information provided in this document has been compiled using data from a representative account. This account has been chosen on the basis it is an existing account managed by Martin Currie, within the strategy referred to in this document. Representative accounts for each strategy have been chosen on the basis that they are the longest running account for the strategy. This data has been provided as an illustration only, the figures should not be relied upon as an indication of future performance. The data provided for this account may be different to other accounts following the same strategy. The information should not be considered as comprehensive and additional information and disclosure should be sought.

The information provided should not be considered a recommendation to purchase or sell any particular strategy / fund / security. It should not be assumed that any of the security transactions discussed here were or will prove to be profitable.Risk warnings – Investors should also be aware of the following risk factors which may be applicable to the strategy shown in this document.• Investing in foreign markets introduces a risk where

adverse movements in currency exchange rates could result in a decrease in the value of your investment.

• This strategy may hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the strategy’s value than if it held a larger number of investments.

• Smaller companies may be riskier and their shares may be less liquid than larger companies, meaning that their share price may be more volatile.

• Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. Accordingly, investment in emerging markets is generally characterised by higher levels of risk than investment in fully developed markets.

• Income strategy charges are deducted from capital. Because of this, the level of income may be higher but the growth potential of the capital value of the investment may be reduced.

For wholesale investors in Australia:Any distribution of this material in Australia is by Martin Currie Australia (‘MCA’). Martin Currie Australia is a division of Legg Mason Asset Management Australia Limited (ABN 76 004 835 849). Legg Mason Asset Management Australia Limited holds an Australian Financial Services Licence (AFSL No. AFSL240827) issued pursuant to the Corporations Act 2001.

For institutional investors in the USA: The information contained within this [presentation] is for Institutional Investors only who meet the definition of Accredited Investor as defined in Rule 501 of the United States Securities Act of 1933, as amended (‘The 1933 Act’) and the definition of Qualified Purchasers as defined in section 2 (a) (51) (A) of the United States Investment Company Act of 1940, as amended (‘the 1940 Act’). It is not for intended for use by members of the general public.

Martin Currie Investment Management Limited, registered in Scotland (no SC066107) Martin Currie Inc, incorporated in New York and having a UK branch registered in Scotland (no SF000300), Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES

Tel: (44) 131 229 5252 Fax: (44) 131 222 2532 www.martincurrie.com

Both companies are authorised and regulated by the Financial Conduct Authority. Martin Currie Inc, 620 Eighth Avenue, 49th Floor New York, NY 10018 is also registered with the Securities Exchange Commission. Please note that calls to the above number may be recorded.

© 2020 Martin Currie Investment Management Limited.

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