EASTSPRING INVESTMENTS - US BOND FUND
December 2020
eastspring.us/eastspring.comoffshoreadvisor EASTSPRING INVESTMENTS OVERVIEW 3 LEADING ASSET MANAGER IN ASIA LEVERAGING OUR ASIAN DNA TO CAPITALISE ON GLOBAL OPPORTUNITIES
1994 USD 248bn 300+ INVESTMENT One of the DEEP INSIGHTS Founded 1994 in Managing USD 248bn PROFESSIONALS^ LARGEST INTO ASIA Singapore (HQ) and assets on behalf of Unrivalled on-the-ground ASIAN ASSET 100% owned by institutional and individual Our investment teams' investment presence in Asia Prudential plc (UK) investors globally MANAGERS deep understanding of Asian markets, provides us and a major Asian Fixed with a unique perspective Income player for global investments
United Kingdom
Luxembourg Japan United States China* South Korea
Taiwan India* Hong Kong* Thailand* Vietnam Malaysia Singapore
Indonesia Investment and Sales & Client Service office Sales & Client Service Office Joint venture
Source: Eastspring Investments. As at 31 December 2020. ^Including joint ventures and sales offices in the US, UK and Luxembourg. AUM size by contracted sales. Note: bn = billion.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY. 4 A DIVERSIFIED AND GROWING GLOBAL ASSET MANAGER
AUM Growth (USD bn)
2% 7% 241 248
193 47% 12% CAGR 188
40% 146 131
99 121 95 81 78
51%
Fixed Income Equity Quant Others ^ Investment Solutions (IS) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Internal Life 56% Third Party 44%
AUM USD248bn
Source: Eastspring Investments as at 31 December 2020. AUM includes Joint Ventures AUM based on % of ownership *Joint ventures: India - ICICI Prudential Asset Management Co Ltd, Hong Kong - Bank of China International – Prudential Asset Management and China - CITIC-Prudential Fund Management Co Ltd. ^ Others – include Alternative assets and money market funds. Note: bn = billion.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY. PPM AMERICA OVERVIEW 6 THE PPM AMERICA ADVANTAGE PART OF ONE OF THE WORLD’S LEADING FINANCIAL ORGANIZATIONS1
$105.98 1990 124 18 yrs 5.8%
Billion in AUM2 Founded, Investment Professionals; Investment Experience, Investment Professional Based in Chicago 257 Employees on Average Turnover3
We are Small Enough to THINK BIG
• Clients are at the core of everything we do • Established as an institutional solutions provider
• Long-tenured teams and proven process focused • Network and access to one of the world’s leading on delivering results for our clients financial services organizations
• Investment-led organization focused on • Team-based culture that stimulates debate and performance values fresh ideas
As of 31 December 2020. (1) PPM America, Inc. is an indirect wholly owned subsidiary of Jackson Financial Inc., which is a subsidiary of Prudential plc (UK Parent). Our UK Parent and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 170 years and has 20 million customers. The UK Parent is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom. (2) AUM includes committed but unfunded capital for PPM’s private equity and commercial real estate businesses. (3) Based on average turnover from 2016-2020. 7 30 YEARS OF DELIVERING LONG-TERM VALUE DIVERSIFIED PRODUCT SUITE ACROSS ASSET CLASSES WITH GLOBAL REACH
AUM by Asset Class AUM by Client Region
5% 8%
Public Fixed Income 22% US 10% Public Equity
Private Fixed Income 49% Asia 12% 65% Commercial Mortgages UK and Europe 29% Private Equity
As of 31 December 2020. Due to rounding, numbers may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. AUM includes committed but unfunded capital for PPM’s private equity and commercial real estate businesses. 8 ORGANIZATIONAL STRUCTURE AN INVESTMENT LED BUSINESS MODEL
Our mission is to deliver specific client solutions and service to investors around the world with the goal of meeting clients’ unique investment objectives We provide a broad range of investment solutions including public fixed income, public equity, private equity and private debt
Craig Smith, CFA President Chief Executive Officer and Chief Investment Officer
Fixed Commercial Public Private Income1 Real Estate Equity Equity
Kent Born Kevin McCloskey, CFA Bruce Gorchow Portfolio Management, Senior Managing Director Senior Managing Director Executive Vice President Research, and Trading Head of Commercial Real Head of Public Equity Head of Private Equity Estate 76 team members 35 team members 7 team members 10 team members
As of 31 December 2020. (1) Does not include CMBS and REIT debt specialists, who report to the head of commercial real estate. INVESTMENT APPROACH 10 FIXED INCOME TEAM ORGANIZATIONAL STRUCTURE
Craig Smith, CFA President Chief Executive Officer and Chief Investment Officer
Portfolio Research Trading Management1
32 team members 34 team members 13 team members
Corporate Credit Structured Finance2 Debt Restructuring Research
7 team members 25 team members 2 team members
As of 31 December 2020. (1) Portfolio management includes the CLO management team. (2) Structured finance includes mortgage-backed (residential and commercial) and asset-backed specialists. ABS specialists report to the head of fixed income research, CMBS specialists report to the head of commercial real estate, and the RMBS specialist reports to a senior fixed income portfolio manager. 11 PORTFOLIO MANAGEMENT TEAM INVESTMENT GRADE CREDIT
Mark Redfearn, CFA1 Matthew Willey, CFA, CPA Senior Managing Director Senior Managing Director Joined PPM: 2002 Joined PPM: 2003 Investment Experience: 26 years Investment Experience: 17 years Prior Experience: Van Kampen Funds (Morgan Stanley Dean Witter) Prior Experience: Ernst and Young LLP Education: MPA, Indiana University; BA, Miami University (Ohio) Education: MS, University of Chicago; BA, Ohio University
Calvin Walker Eddie Hebert, CFA Managing Director Managing Director, Client Portfolio Manager Joined PPM: 2000 Joined PPM: 2008 Investment Experience: 15 years Investment Experience: 16 years Prior Experience: BP Amoco Prior Experience: Orchard First Source Capital Education: MBA, University of Chicago; BS, University of Illinois Education: MBA, DePaul University; BS, University of Wisconsin-La Crosse
As of 31 December 2020. Client portfolio managers are an integral team resource, but are not responsible for security selection or allocation decisions. (1) Primarily responsible for the day-to-day management of the portfolios within this strategy. 12 FIXED INCOME INVESTMENT PHILOSOPHY BOTTOM-UP APPROACH SUPPORTED BY TOP-DOWN VIEWS ENHANCES RELATIVE VALUE DISCIPLINE
We believe the volatility of market prices exceeds the volatility of asset values, creating opportunities to identify alpha potential We are strategically committed to a relative value, fundamentals-based investment style We expect credit selection and asset class/sector rotation to primarily influence any excess returns
TOP-DOWN
ASSET CLASS RELATIVE VALUE We consider the macroeconomic environment when analyzing companies' long-term fundamental potential.
PORTFOLIOS
SECURITY RELATIVE VALUE SOURCES OF VALUE-ADD We focus on each security’s underlying value, Our robust research framework provides what we so alpha is driven predominantly by bottom-up consider superior insight and helps uncover security selection. investment ideas.
BOTTOM-UP 13 FIXED INCOME PORTFOLIO INVESTMENT APPROACH COLLABORATIVE PROCESS RELIES ON EXPERTISE OF INVESTMENT PILLARS
Portfolio managers consult with each team daily to filter information, discuss new investment ideas and seek to identify the best relative value opportunities: Portfolio Management Fixed Income Research: Performs robust, independent analyses and issue ratings and relative value Trading recommendations; asset class specialists identify value across mandates’ universes in non-corporate fixed income assets Risk Management Trading: Provides critical insights and an in-depth analyses of capital market Fixed developments and the capital structure of FixedIncome Income securities ResearchResearch Risk Management: Sophisticated proprietary fixed income analytics platform provides firm-wide transparency, risk management and tools focused on generating alpha 14 A DYNAMIC, RESEARCH-BASED PROCESS FIXED INCOME INVESTMENT PROCESS AND ONGOING MONITORING
Risk Management Portfolio managers control day-to-day portfolio risk, while the risk management and quantitative research teams independently monitor risk
Evaluate Analyze Select Buy/Sell
Evaluate Investment Universe Analyze Individual Opportunities Portfolio Construction Purchase and Implementation Credit analysts, traders and portfolio Credit analysts perform in-depth, Portfolio managers monitor Portfolio managers make final managers discuss new opportunities, bottom-up research, and asset investment guidelines and consult investment decisions based on the macroeconomic environment class specialists evaluate risk tools to assess an asset’s information from credit research, and relative value across the underlying collateral and impact on the portfolio’s asset class specialists, fixed income universe structural features overall risk profile quantitative tools and traders
Ongoing Monitoring Portfolio managers review ongoing credit research and market information and incorporate macroeconomic viewpoints to make final relative value judgment 15 CREDIT RESEARCH TEAM PROCESS A CLOSER LOOK 25 Corporate Credit Analysts Team of 25 corporate credit analysts cover 1,740 bond issuers Robust team is organized by industry and covers credits across ratings spectrum and capital structure 1,305 280 155 Corporate Bond Private Ratings and relative value Bank Loans Issuers Placements recommendations are determined Communication via proprietary Credit Research Portal, a single source for key credit information, analyst opinions, internal credit ratings, commentary and Industries financial metrics Analysts continue to cover credits and adjust recommendations as valuations and company fundamentals change 700 1,040 High Yield Investment Companies Grade Companies
As of 31 December 2020. Figures provided in the illustration above are approximate and represent typical ranges. 16 COVERAGE ACROSS SPECTRUM AND STRUCTURE FOCUS ON RATINGS MIGRATION AND CROSSOVER CREDITS
Corporate bonds in BBB to BB credit rating space may create a “crossover opportunity” Coverage of credits across the ratings spectrum helps with early identification of potential ratings migration Our approach helps us better identify relative value within issuer’s capital structure Inefficiencies mitigated by our approach include: Ability to understand the nuances of inconsistent broker research and trading coverage Familiarity with different trading conventions (price vs. spread) Understanding of the varying approaches of multiple rating agencies and index nuances A longer-term fundamental view (18-36+ months) with a focus on total return potential
RISING STARS FALLEN ANGELS Identify improving BB credits Identify deteriorating BBB credits with upgrade potential CROSSOVER with downgrade potential OPPORTUNITY Core High Yield Credit Ratings Core Investment Grade Credit Ratings BB B CCC AAA/AA A BBB 17 MANAGING RISK IN FIXED INCOME PORTFOLIOS LONG-TENURED CREDIT RESEARCH TEAM SUPPORTS CREDIT MONITORING
Analysts identify credit risk via bottom-up analysis and ongoing monitoring, which is a critical component of risk analysis and control Cornerstone of our investment process is rigorous credit research and real-time dialogue Analysts evaluate the credit metrics of the company, including: Qualitative factors such as trends in operating performance, industry outlook and management’s financial risk appetite The company’s rating targets and commitment to achieve or defend those targets, especially in times of stress Potential rating agency changes to capture the outperformance (or avoid the underperformance) when a rating agency event occurs Assessment of any material ESG-related issues or risks Before an investment decision is made: Analysts present their views on our outlook for the company’s performance and whether the bonds represent fair value Portfolio managers rigorously examine and discuss any assumptions, conclusions and opinions 18 CENTRALIZED CREDIT RATING AND MONITORING PROPRIETARY PORTAL PROVIDES SHARED ACCESS TO IN-DEPTH RESEARCH
Credit Research Portal Real-time access to detailed holdings by security and account Searchable by analyst, sector and issuer; includes holdings, relative value opinion, commentary and financials summary Entire investment team has access to commentary and opinions Includes ESG ratings and equity holdings
The information presented above is for illustrative purposes only and is intended to present an example of the tools available to PPM portfolio managers in the investment decision process. 19 MANAGING RISK IN FIXED INCOME PORTFOLIOS DISCIPLINED AND TRANSPARENT PROCESS
Multidimensional approach allows portfolio managers to add alpha for our clients We don’t avoid risk; we consider the risk of an individual position relative to the portfolio Dispassionate approach leverages both forward and backward-looking metrics Closely monitor risk positioning on an effective duration, spread duration, OAS and DTS basis Tracking error and attribution are reviewed on a continual basis We monitor implicit correlations to avoid unintended over/underweights to an industry in a portfolio
Duration Times Spread (DTS) Fixed Income Analytics DTS is used to help evaluate credit risk both within a BlackRock’s Aladdin, our enterprise investment portfolio and versus the benchmark. A daily report management platform, provides robust analytics and highlights overall portfolio risk, biggest insights to efficiently and effectively manage our over/underweights. portfolios on a day-to-day basis.
Portfolio Management Reporting (PMR) Compliance Monitoring Proprietary tool provides in-depth detail of holdings Investment guidelines are coded into Aladdin’s to monitor fund risk and helps portfolio managers compliance module, Compliance Workbench. formulate alpha generating strategies. Automatic pre- and post-trade compliance checks help ensure guideline adherence.
HOW WE MONITOR RISK IN PORTFOLIOS 20 COMPREHENSIVE APPROACH TO RISK REPORTING USING DURATION TIMES SPREAD (DTS) TO MONITOR PORTFOLIOS
Daily reports include information and positions segmented Understanding Duration Times Spread by individual portfolios and credit analysts • Combines three components of portfolio risk (market weight, duration and spread) into a Utilized by portfolio managers, credit analysts, traders and single measure the risk management and quantitative research teams • Highlights the issuers and sectors generally most likely to impact performance Ensures consistent portfolio analysis and risk oversight • A portfolio with a higher DTS has a higher risk profile than a portfolio with a lower DTS
DTS Position Report Samples
DTS Score Excess Excess Market Weight Duration Spread (Relative to Return Return Index) Last 3 Mos TYD
Example Example Example Example Example
Example Example Example Example Example
Example Example Example Example Example
The information presented above is for illustrative purposes only and is intended to present an example of the tools available to PPM portfolio managers in the investment decision process. 21 INVESTMENT TEAM’S SCHEDULED MEETINGS CONTINUOUS COMMUNICATION BETWEEN INVESTMENT PROFESSIONALS
Morning briefing Attendees OUTPUT • Deals and news • Portfolio managers DAILY • Analysts comments • Traders • Portfolio management insight • Credit analysts • Trades and strategy Credit Research Portal Credit Research meetings Attendees • Analysts discuss impacting events • Credit research team Analysts publish: WEEKLY or announcements • Chaired by the Head of Fixed internal ratings, Income Research outlooks, analysis, and reviews
Strategy Committee meetings Attendees • Discuss portfolio positioning • Fixed income investment MONTHLY and strategy professionals • Chaired by the Chief Investment Officer Team Interaction
Sector portfolio reviews Attendees Portfolio managers, • Discuss investment grade and high • Portfolio managers traders and credit yield positioning • Traders analysts interact QUARTERLY • Series of individual sector meetings • Credit analysts informally on all • Analysts review sector investment issues fundamentals and outlook, recent events and impactful credits 22 STRENGTHS OF OUR FIXED INCOME APPROACH RELATIVE VALUE, FUNDAMENTALS-BASED INVESTMENT STYLE
Disciplined yet flexible processes are repeatable and strive to exceed clients’ expectations Analysts, portfolio managers and traders have the experience and continuity in seeking value Robust research and analysis supported by knowledgeable, career research team Research analysis and processes reflect our rigorous approach to measuring credit risk Significant focus on research with specialized approach Supported by 34 fixed income research analysts, including dedicated structured finance teams and debt restructuring specialists Relative value discipline focused on relative rather than absolute risk Focus on forming diversified portfolios with measured risks across multiple dimensions, leveraging input from the credit, quantitative research and trading teams Sophisticated portfolio analytics and risk management tools help identify value and manage risk
As of 31 December 2020. EASTSPRING INVESTMENTS – US BOND FUND 24 SUMMARY OF PERFORMANCE RESULTS EASTSPRING INVESTMENTS – US BOND FUND
Since As of 31 December 2020 3M 1 Year 3 Year 5 Year 10 Year Inception Fund Class A (Bid to Bid) 0.49 6.71 4.23 3.41 2.80 3.45 Bloomberg Barclays US Aggregate Bond 0.67 7.51 5.34 4.47 3.87 4.30 Index Excess Return vs. Benchmark (Bid to Bid) -0.18 -0.80 -1.11 -1.06 -1.07 -0.85
Performance
7.5 8 6.7 6 5.3 4.5 4.3 4.2 3.9 3.4 3.5 4 2.8 2 Returns (%) Returns 0.5 0.7 0 3M 1 Year 3 Year 5 Year 10 Year Since Inception
Fund Class A (Bid to Bid) Bloomberg Barclays US Aggregate Bond Index
As of 31 December 2020. Returns greater than one year are annualized. Eastspring Investments (Singapore) Limited and Bloomberg. USD; Returns are based in share class currency and computed using the NAV price on bid-bid basis with net income reinvested . The NAV price is net of all fees, expenses and withholding taxes. Calendar year returns are based on the share class performance for the year and if the share class is incepted during a particular year, the returns shown relate to the performance of the share class since its inception till end of that calendar year. Fees and expenses vary among share classes, further information is available in the Prospectus. Inception date: 30 November 2007. Benchmark: Bloomberg Barclays US Aggregate Bond Index. Benchmark returns for all periods have been computed up to one business day earlier than the performance reporting date. This is to recognize that the Net Asset Value of the fund, due to time zone difference, is determined using last available prices of the securities in the fund which can be the securities prices traded one day ago as of the performance reporting date. Past performance is no guarantee of future results. 25 OVERVIEW AND POSITIONING EASTSPRING INVESTMENTS – US BOND FUND
Key Information Portfolio Breakdown by Sector (%) Benchmark Bloomberg Barclays US Aggregate Bond Index Investment Manager Eastspring Investments (Singapore) Limited Treasuries 36.2 Sub-Manager PPM America, Inc. Fund Size ($M) 35.5 Corporates 33.5
Mortgages 22.5
CMBS 2.8
Portfolio Characteristics Portfolio Benchmark Agencies 1.8 Number of Issuers 138 2,045 Average Rating (Moody's/S&P) Aa2/AA- Aa1/AA Cash 1.5 Effective Duration (years) 6.32 6.26 ABS 1.1 OAS (bps) 50 41
Yield to Worst (%) 1.16 1.10 Sovereigns 0.6
0 10 20 30 40
As of 31 December 2020. Due to rounding, numbers may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 26 POSITIONING EASTSPRING INVESTMENTS – US BOND FUND
1,2 Top Issuers (%) Contribution to Effective Duration2,3 US TREASURY N/B 36.22 Industrial Other 0.16 FANNIE MAE 14.27 Electric 0.12 Consumer Non Cyclical 0.12 FREDDIE MAC 6.77 Communications 0.10 Banking 0.09 GNMA 5.45 Consumer Cyclical -0.04 Non-Agency CMBS -0.04 BANK OF AMERICA CORP 1.75 Capital Goods -0.05 MBS Agency -0.09 MORGAN STANLEY 1.17 Treasuries -0.27 -0.30 -0.20 -0.10 0.00 0.10 0.20 VERIZON COMMUNICATIONS 1.07 Relative CTD AT&T INC 1.06
UNITED CONTINENTAL HLDGS 0.99 Portfolio Breakdown by Credit Quality GERMANY, FEDERAL REPUBLIC OF 0.85 80 67.869.8
60
40 17.3 20 11.312.0 14.8
Market Value(%) 1.7 3.4 0.1 0.0 1.8 0.0 0 AAA AA A BBB BB Other
Portfolio Benchmark
As of 31 December 2020. Benchmark: Bloomberg Barclays US Aggregate Bond Index. (1) By Consolidation ID. (2) Does not include derivatives or the Fund’s cash positioning. (3) Reflects contribution to effective duration relative to the index. The securities presented do not represent the strategy’s entire portfolio and in the aggregate may represent only a small percentage of the strategy’s holdings. Holdings are subject to change and may not be representative of the current or future investments of the portfolio. 27 PERFORMANCE ATTRIBUTION BY SECTOR: TOP/BOTTOM 5 EASTSPRING INVESTMENTS – US BOND FUND
3 Year Attribution vs. Bloomberg Barclays US Aggregate Bond Index
MBS Agency 0.549
Consumer Non Cyclical 0.468
Consumer Cyclical 0.311
Technology 0.185
Communications 0.155
Financial Other -0.018
Agency CMBS -0.037
Non-Agency CMBS -0.046
Transportation -0.065
Treasuries -0.240
-0.300 -0.200 -0.100 0.000 0.100 0.200 0.300 0.400 0.500 0.600 Spread Effect (%)
As of 31 December 2020. Past performance is no guarantee of future results. Attribution is based on Industry Level 3 cumulative gross performance. A description of the attribution calculation methodology and full attribution report for the measurement period are available upon request. RISK MANAGEMENT 29 RISK MANAGEMENT AND QUANTITATIVE RESEARCH INDEPENDENT RISK MANAGEMENT FUNCTION
Highly credentialed teams with backgrounds rooted in quantitative methods, decision sciences, predictive analytics, new product modeling, financial reporting, and pricing 19 years average industry experience, 7 years average tenure with the firm 4 CFA® charterholders, 4 Financial Risk Managers (FRM), 1 PhD Risk management uses a sophisticated, proprietary analytics platform for risk management and firmwide transparency Quantitative research develops tools and methodologies designed to help generate alpha on behalf of our clients, working closely with the portfolio management teams as they construct their portfolios
Matt Willey, CFA, CPA Matt Elsener Portfolio Manager and Head of Chief Risk Officer Quantitative Research
Enterprise Operational Investment Guohua Xia, Risk Management Risk Management Risk Management Ben Moore, FRM Otto Miller, FRM CFA, FRM Vice President Vice President Assistant Vice Kathryn Landuyt Annette Freid, CPA Andrea Shaeffer, CFA President Vice President Vice President Vice President Shared Resource David Wallner, CFA, FRM Vice President Nina Lin Analyst
As of 31 December 2020. 30 OVERVIEW OF ANALYTICAL FRAMEWORK ROBUST RISK MEASUREMENT TOOL KIT Performance Attribution
Pre-/Post-Trade Compliance & Factor Analysis Guideline Monitoring
Risk metrics monitored daily to identify outliers and any risks outside of Ex Ante Tracking Liquidity Analysis expectations. Error Analysis
VaR Analysis Stress Testing APPENDIX 32 EASTSPRING INVESTMENTS – US BOND FUND SHARE CLASSES AVAILABLE FOR INVESTMENT Inception *Minimum *Minimum Class Currency Bloomberg ticker ISIN date initial investment subsequent investment
Class A USD IOFUBAU LX LU0326391868 30-Nov-07 USD500 USD50
Class Adm USD IOFUADM LX LU0533427448 24-Aug-10 USD500 USD50
Class R USD EAIUBRU LX LU2270665719 21-Dec-20 USD500 USD50
Initial sales Annual Annual admin Initial sales Annual Annual Ongoing Class charges% management fee% (max) charges% management admin fee% charges % (max) fee% (max) (current) fee% (current) (current)
Class A 3.000 1.250 0.250 3.000 1.250 0.250 1.820
Class Adm 3.000 1.250 0.250 3.000 1.250 0.250 1.820
Class R None 0.625 0.250 None 0.625 0.250 1.130
Ongoing charges vary from year to year and do not include portfolio transaction cost. Ongoing charges are based on annualized expenses for the year ending December 2020. Annual R-class shares are not sold directly to investors, but to financial intermediaries that serve Distribution Dividend per Class Ex-date dividend investors. The intermediary executes the purchase of the funds on behalf of the investor, as frequency share yield % well as the sale and exchange. The Sales Charge may be modified for certain financial intermediaries who submit trades on behalf of eligible investors. As allowed in the Prospectus, Eastspring and the financial intermediaries have agreed to waive the Sales Class A N.A N.A N.A N.A Charge for all purchases for the fee-based R share class. Always consult your financial adviser. For more about charges, see the Prospectus. Class Adm Monthly 01-Mar-21 0.0189365 2.50
Class R N.A N.A N.A N.A
Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower. Distribution payouts and its frequency are determined by the Board of Directors, and can be made out of (a) income; or (b) net capital gains; or (c) capital of the Fund or a combination of any of (a) and/or (b) and/or (c). The payment of distributions should not be confused with the Fund’s performance, rate of return or yield. Any payment of distributions by the Fund may result in an immediate decrease in the net asset value per share. Funds with Monthly and Quarterly Distribution Frequency: Annualised Dividend yield = (Dividend per share / Reference NAV at start of distribution period) x (No. of calendar days in a year / No. of calendar days in distribution period) x 100%. Funds with Yearly Distribution Frequency: Annualised Dividend Yield = (Dividend amount / Total Net Assets) x (No. of calendar days in a year / No. of calendar days in distribution period) x 100%. *Or their near equivalent in any major freely convertible currency of the amounts specified. "N.A.": This share class does not distribute dividends. STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY. 33 BIOGRAPHIES
Mark Redfearn, CFA Senior Managing Director, Portfolio Manager
Mark Redfearn is a senior managing director and portfolio manager on the fixed income team at PPM America, Inc. (PPM). He is responsible for investment and allocation decisions for several of the firm’s fixed income strategies, including core fixed income, investment grade credit, and credit which are managed on behalf of investors globally. Prior to joining PPM in 2002, Mark was a corporate bond portfolio manager in the institutional asset management group for Van Kampen Funds. Previously, he worked for Van Kampen Funds’ risk management group as a portfolio analyst with responsibility for assessing fixed income mutual fund risk and return relationships. Mark earned a master’s degree in public affairs from Indiana University and a bachelor’s degree in economics and political science from Miami University (Ohio). He is a CFA® charterholder. 34 INDEX DESCRIPTIONS
Bloomberg Barclays Asian Pacific Aggregate Index CBOE Volatility Index The Bloomberg Barclays Asian Pacific Aggregate Index provides a broad measure The CBOE Volatility Index provides a measure of market expectations for near-term of Asian Pacific investment grade fixed rate bonds. It includes government, credit volatility as conveyed by S&P 500 stock index option prices. and securitized securities that can be dominated in any of the following currencies: Australian Dollar, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Singapore ICE BofA US High Yield Index Dollars, South Korean Won and Thai Baht. By default, the index is denominated in The ICE BofA US High Yield Index provides a broad measure of below investment yen. grade, USD-denominated fixed rate corporate debt. It includes corporate bonds with risk exposures to countries that are members of the FX-G10, Western Europe or Bloomberg Barclays US Aggregate Bond Index territories of the US and Western Europe. The Bloomberg Barclays US Aggregate Bond Index provides a broad measure of US investment grade, USD-denominated fixed rate bonds. It includes Treasuries, FTSE All-World Index government-rated issues, corporate bonds, MBS, CMBS and ABS securities. The FTSE All-World Index provides a broad, market capitalization-weighted measure of publicly traded, developed and emerging market large and mid cap Bloomberg Barclays Global Aggregate Index stocks. The Bloomberg Barclays Global Aggregate Index provides a broad measure of global investment grade, fixed rate bonds. The three major components of this index FTSE All-World ex US Index (Global Stocks ex US) are the US Aggregate, Pan-European Aggregate and the Asian-Pacific Aggregate The FTSE All-World ex US Index provides a broad measure of large and mid cap indices. It also includes Eurodollar and Euroyen corporate bonds, Canadian stocks providing coverage of developed and emerging markets excluding the US. government, agency and corporate securities, and USD private placement The index is derived from the FTSE Global Equity Index Series (GEIS), which securities. covers 98% of the world’s investable market capitalization
Bloomberg Barclays US Credit Index FTSE Emerging Index The Bloomberg Barclays US Credit Index provides a broad measure of investment The FTSE Emerging Index provides a broad, market capitalization-weighted grade, USD-denominated credit securities. It includes publicly-issued US and SEC- measure of publicly-traded, advanced and secondary emerging markets large and registered global corporate securities, foreign debt and secured notes. mid cap stocks.
Bloomberg Barclays US Credit Most Conservative 2% Issuer Cap Index FTSE Asia Pacific Index The Bloomberg Barclays US Credit Most Conservative 2% Issuer Cap Index The FTSE Asia Pacific Index provides a broad measure of publicly-traded, provides a constrained measure of investment grade credit securities and is developed and emerging large and mid cap stocks of 14 Asian Pacific markets: constructed based on the Bloomberg Barclays US Credit Index. Additionally, it uses Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New the lowest rating among the three major ratings agencies as opposed to an average Zealand, Pakistan, Philippines, Singapore, Taiwan and Thailand. rating and imposes a 2% issuer cap. The Bloomberg Barclays US Credit Index provides a broad measure of investment grade, USD-denominated credit securities. S&P 500 Index It includes publicly-issued US and SEC-registered global corporate securities, The S&P 500 Index provides a broad, market capitalization-weighted measure of foreign debt and secured notes. US large cap stocks. It includes approximately 500 publicly-traded stocks of the largest US companies. 35 BENCHMARK
The Eastspring Investments – US Corporate Bond Fund benchmark changed from the Bloomberg Barclays US Credit Most Conservative 2% Issuer Cap Index to the Bloomberg Barclays US Credit Index For Performance reporting, the transition took effect on 15 July 2020 For Attribution and Positioning reporting, the transition took effect on 01 August 2020 36 DISCLAIMER FOR INSTITUTIONAL, WHOLESALE OR PROFESSIONAL INVESTORS ONLY. ONE ON ONE PRESENTATION.
Strictly Private and Confidential. funds managed by Eastspring Investments. An investment is subject to investment risks, including the possible loss of the principal amount invested. Where an This document is produced by Eastspring Investments (Singapore) Limited and investment is denominated in another currency, exchange rates may have an issued in : adverse effect on the value price or income of that investment. Furthermore, exposure to a single country market, specific portfolio composition or management - Singapore and United States by Eastspring Investments (Singapore) Limited techniques may potentially increase volatility. The information contained herein does (UEN: 199407631H) ; not have any regard to the specific investment objective(s), financial situation or the particular needs of any person. The afore-mentioned entities are hereinafter collectively referred to as Eastspring Investments. Where included, benchmark and index data included in this document are provided for illustrative purposes only. The portfolio and/or services mentioned do not formally This document is solely to be used for informational purposes only and is not track any such benchmarks or indices and no representation is made as to relative intended for anyone other than the recipient. This information is not an offer or future performance or tracking deviation. You should note that investing in financial solicitation to deal in shares of any securities or financial instruments and it is not instruments carries with it the possibility of losses and that a focus on above-market intended for distribution or use by anyone or entity located in any jurisdiction where returns exposes the portfolio to above-average risk. Performance aspirations are not such distribution would be unlawful or prohibited. This document may not be copied, guaranteed and are subject to market conditions. Higher yielding investments can published, circulated, reproduced or distributed without the prior written consent of produce income at the expense of capital growth or the capital value of the Eastspring Investments. investment. High volatility investments may be subject to sudden and large falls in value, and there could be a large loss on realization which could be equal to the The Fund is not registered in the U.S. under the Investment Company Act of 1940, as amount invested. amended, nor the Securities Act of 1933, as amended (1933 Act). Shares may not be offered or sold, directly or indirectly, in the U.S. or to any ‘U.S. Person,’ as defined by Gross-of-fee performance figures presented do not reflect the deduction of Regulation S of the 1933 Act. This information is not an offer or solicitation to deal in investment advisory fees. A client’s returns will be reduced by the advisory fee and shares of any securities or financial instruments and it is not intended for distribution other expenses incurred in the management of its account. For example, the or use by anyone or entity located in any jurisdiction where such distribution would be deduction of a 1% advisory fee over a 10-year period would reduce a 10% gross unlawful or prohibited. Any investment or potential transaction described or return to an 8.9% net return. Adviser’s fees are disclosed in Form ADV, Part II. contemplated in connection with the information published is subject to legal and regulatory requirements applicable in your jurisdiction and you shall be solely Supplemental information, benchmark illustrations and representative accounts were responsible for complying with such legal and regulatory requirements. all selected on best available data. The representative accounts chosen best represents guidelines, objectives and restrictions for this strategy and not based upon Information herein is believed to be reliable at time of publication but Eastspring investment performance. Illustrations shown or issuer specific examples in this Investments does not warrant its completeness or accuracy and is not responsible for presentation are not in and of itself specific recommendations and by themselves error of facts or opinion nor shall be liable for damages arising out of any person’s cannot be used to determine which securities to buy or sell or when to buy or sell. reliance upon this information. Any opinion or estimate contained in this document The illustrations are based upon those issuers and/or benchmark specific may subject to change without notice. circumstances that best represent our proprietary systematic investment process and not performance-based criteria. The securities identified and described do not Past performance and the predictions, projections, or forecasts on the economy, represent all the securities purchased, sold or recommended for client accounts. The securities markets or the economic trends of the markets are not necessarily reader should not assume that an investment in the securities identified was or will be indicative of the future or likely performance of Eastspring Investments or any of the profitable.
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The performance of the composites shown herein reflects the deduction of standardized management fees and brokerage commissions. You should note that Information provided by independent data providers (Bloomberg, Wind, Go-Goal, expenses incurred may be different in character and amount from those that will be Aladdin, Refinitiv Datastream, QUICK) herein is believed to be reliable at time of incurred by the portfolio in the future. Note also that the performance reflects the publication, Eastspring Investments utilizes independent data for illustrations, reinvestment of interest and other earnings. The performance illustrations have not representations, and modeling, but Eastspring Investments does not warrant its been audited. completeness or accuracy and is not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any Eastspring Investments (excluding JV companies) companies are ultimately wholly- opinion or estimate contained in this document may subject to change without notice. owned / indirect subsidiaries / associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV's) and Prudential plc are not Prior to investing, Investors should read the Prospectus and Key Investor Information affiliated in any manner with Prudential Financial, Inc., a company whose principal Document (“KIID”). place of business is in the United States of America or with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom. Morningstar Rating measures how funds have performed on a risk-adjusted basis against their category peers. It gives investors the ability to quickly and easily identify Eastspring Investments Inc. (“Eastspring US”) primary activity is to provide certain funds that are worthy of further research. The Morningstar Rating is calculated for marketing, sales servicing, and client support in the US on behalf of Eastspring three years, five years, and 10 years, and the overall rating is a weighted average of Investment (Singapore) Limited (“Eastspring Singapore”). Eastspring Singapore is an the time-period ratings. Morningstar Risk-Adjusted Return is calculated based on affiliated investment management entity that is domiciled and registered under, expected utility theory, a framework that recognizes that investors are risk-averse and among other regulatory bodies, the Monetary Authority of Singapore (MAS). willing to give up some portion of expected return in exchange for greater certainty of Eastspring Singapore is also registered with the US Securities Exchange return. Morningstar calculates risk-adjusted return by adjusting total return for the Commission (SEC) as a registered investment adviser. Eastspring US seeks to risk-free rate and risk. identify and introduce to Eastspring Singapore potential institutional client prospects. Such prospects, once introduced, would contract directly with Eastspring Singapore PPM is an indirect, wholly owned subsidiary of Jackson Financial Inc., which is a for any investment management or advisory services. Eastspring US does not subsidiary of Prudential plc (UK Parent), a publicly held company founded in 1848 contract directly with any prospective client, nor does it have any discretion over that, together with its affiliates, constitute one of the world's leading insurance and client assets, nor does it trade, deal or direct trading in any security, client account or financial services groups. PPM’s affiliated US insurance company client, Jackson fund. Eastspring US does not receive or retain any assets or securities, nor does it National Life Insurance Company (“Jackson”), is an indirect subsidiary of Jackson serve as a custodian or direct any custodial decisions. Additional information about Holdings. Furthermore, as a result of its ownership by the UK Parent, PPM is Eastspring Investments is also is available on the SEC’s website at affiliated and related with other entities engaged in providing investment advisory and www.adviserinfo.sec.gov other related services such as Eastspring Investments, Inc. and Eastspring Investments Limited Singapore. Atlantic Zagros Financial Partners, LLC, (“AZFP”) is a Delaware limited liability company with its principal office and place of business 1345 Avenue of the Americas, 33rd Floor, New York, NY. AZFP as selling agent provides marketing and selling services on behalf of Eastspring Investments and individuals referenced are members of the Financial Industry Regulatory Authority (“FINRA”). AZFP is not affiliated with Eastspring Investments, and additional information about those registered representatives is available at https://brokercheck.finra.org.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.