global multi-asset income drivers of total returns from here?...source: morningstar, 31 march 2020....

April 2020

Global Multi-Asset Income – Drivers of total returns from here?

2

Important information

All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. This is not a recommendation to buy, sell or hold any particular security.

The value of this investment, and any income generated from it, can go down as well as up and will be affected by changes in interest rates, exchange rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. The Fund’s investment objective will not necessarily be achieved and there is no guarantee that these investments will make profits; losses may be made. This Fund may not be appropriate for investors who plan to withdraw their money within the short to medium term. Performance shown is that of the Fund and individual investor’s performance may differ as a result of initial fees, actual investment date, date of any subsequent reinvestment and any dividend withholding tax. All the information contained in this communication is believed to be reliable but may be inaccurate or incomplete. Any opinions stated are honestly held but are not guaranteed and should not be relied upon. This is not a buy, sell or hold recommendation for any particular security. It is not an invitation to make an investment nor does it constitute an offer for sale. Before making an investment, please read the Prospectus and Key Investor Information Document, which sets out the fund specific risks and is available from Ninety One SA (Pty) Ltd (“Ninety One SA”) . The portfolio may change significantly over a short period of time. The Fund is traded at the ruling price and can engage in borrowing and scrip lending and may be closed in order to be managed in accordance with the mandate. The fund may borrow up to 10% of its market value to bridge insufficient liquidity. The Fund is a sub-fund of the Investec Global Strategy Fund, which is a UCITS organised as a Société d’Investissement à Capital Variable under the law of Luxembourg. For further information on the Fund including application forms and a schedule of fees and commissions, please contact Ninety One SA. Fund prices and English language copies of the Prospectus, Report & Accounts and Articles of Incorporation and local language copies of the Key Investor Information Documents may be obtained from our website and free of charge from the following country specific contacts: Luxembourg – Investec Global Strategy Fund, 49 avenue J.F. Kennedy, L-1855 Luxembourg. In South Africa, Ninety One SA is an authorised financial services provider. The sub-funds offered for public sale in South Africa are approved under the South African Collective Investment Schemes Control Act.

Investment Team: There is no assurance that the persons referenced herein will continue to be involved with investing for this Fund, or that other persons not identified herein will become involved with investing assets for the Manager or assets of the Fund at any time without notice.

Investment Process: Any description or information regarding investment process or strategies is provided for illustrative purposes only, may not be fully indicative of any present or future investments and may be changed at the discretion of the manager without notice. References to specific investments, strategies or investment vehicles are for illustrative purposes only and should not be relied upon as a recommendation to purchase or sell such investments or to engage in any particular strategy. Portfolio data is expected to change and there is no assurance that the actual portfolio will remain as described herein. There is no assurance that the investments presented will be available in the future at the levels presented, with the same characteristics or be available at all. Past performance is no guarantee of future results and has no bearing upon the ability of Manager to construct the illustrative portfolio and implement its investment strategy or investment objective.

In the event that specific funds are mentioned please refer to the relevant minimum disclosure document in order to obtain all the necessary information in regard to that fund.

This presentation is the copyright of Ninety One SA and its contents may not be re-used without Ninety One SA’s prior permission.

GENERIC ADVISOR DISCLAIMER OFFSHORE FUNDS ONLY Changes to Ninety One Global Strategy Fund on 2 June

3

Global Multi-Asset Income Fund

Key benefits

*Performance and volatility targets may not necessarily be achieved, losses may be made. The amount of income may rise or fall. The yield target, whilst achieved to date since inception, is dependent upon market conditions and consequently may need to be revised.These internal parameters are subject to change not necessarily with prior notification. Global Equities defined as MSCI ACWI.

Core, defensive total return fund:Aiming for attractive income with capital growth over the long term

Resilient portfolio built from the bottom up

Attractive, sustainable yield:Targets 4-6%* p.a. portfolio yield

Structurally diversified and actively managed

‘Bond-like’ volatility:Targets less than half the volatilityof global equities*

Focus on limiting downside risks

123

A defensive total return fund with sustainable income at its core

ABC

How we do itCharacteristics

4

Yield has been hurt in the crisis – within and across asset classes

Total return YTD and yield

Source: Bloomberg, Ninety One, April 2020

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Global Dividend Aristocrats4.7% Yield GMAI Equity 4.1% Yield Global Equity 2.4% Yield

-20%

-15%

-10%

-5%

0%

5%

10%

Government Bonds0.9% Yield

A+ US Corporate 2%Yield BBB US Coporate 3% US High Yield 5% Yield

-25%

-20%

-15%

-10%

-5%

0%Preference shares 5.5% Yield Infrastructure 4% Yield

Bond returns YTD and starting yield

Alternative returns YTD and starting yield

Equity returns YTD and starting yield

5

Global Multi-Asset Income Fund

Performance

USD GSF Global Multi-Asset Income Fund A Inc-2 (SA Version) F00000Q7YY

Cumulative performance in USDAnnual performance in USD

3.7

0.9

4.3

6.0

0.5

6.2

0.1 0.1 0.30.7

1.2

1.4

2014 2015 2016 2017 2018 2019Global Multi-Asset Income A Inc-2LIBOR USD Overnight Rate

18%

4%

-5%

0%

5%

10%

15%

20%

25%

30%

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19

Per

cent

age

(%)

Global Multi-Asset Income A Inc-2LIBOR USD Overnight Rate

Past performance is not a reliable indicator of future results, losses may be made.Source: Morningstar, 31 March 2020. Performance is net of fees (NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD.* Inception date 30 July 2013. Prior to 31 May 2013, the Fund was called Global Defensive Bond, and was managed to a different investment objective.Highest and lowest returns achieved during a Rolling 12 month period since inception: Aug-14: 8.7% and Feb-16: -4.6%.Quartile ranking within GIFS USD Cautious Allocation sector.The Fund is actively managed. Any index is shown for illustrative purposes only.

1 year 3 years p.a. 5 years p.a. Since Inception p.a.*Global Multi-Asset Income A Inc-2 -4.6% 1.0% 1.6% 2.5%

LIBOR USD Overnight Rate 1.3% 1.1% 0.8% 0.6%

Acti ve return -5.9% -0.2% 0.8% 1.9%

Quarti l e ranki ng 3 2 1 1

6

Market context: compelling risk-adjusted returns

Past performance should not be taken as a guide to the future, losses may be made.Source: Morningstar Direct 31 March 2020, Performance is net of fees (NAV based, including ongoing charges, excluding initial charges), gross income reinvested in USD.Inception date: 31 May 2013. The Fund is actively managed . Any index is shown for illustrative purposes only.

Cumulative performance in USD

21.224.8

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

28/11/2013 10/08/2014 22/04/2015 02/01/2016 13/09/2016 26/05/2017 05/02/2018 18/10/2018 30/06/2019 11/03/2020

Ninety One GSF Glb MltAst Inc I Acc USD MSCI ACWI NR USD

7

Outlook

Source: Ninety One March 2020. Opinions based on current market conditions; subject to change without notice and without any obligation to update.

‒ Trajectory of markets remains highly uncertain

‒ A “V-Shaped” market recovery is unlikely

‒ Compelling opportunities exist within a number of asset classes

8

Market yields

Now at the highest of the last 10 years

Source: Bloomberg and Ninety One, March 2020. Market Yield Proxy is 30% MSCI World High Dividend Yield, 30% BoAML Global Corporate Index Yield, 20% BoAML Global High Yield Constrained Index Yield, 10% JP Morgan EMBI GD Sovereign Yield, 10% JP Morgan GBI-EM GD Composite Yield, all from the inception of the latter.

0

2

4

6

8

10

12

Dec-02 Mar-04 Jun-05 Sep-06 Dec-07 Mar-09 Jun-10 Sep-11 Dec-12 Mar-14 Jun-15 Sep-16 Dec-17 Mar-19

9

Higher spreads suggested decent future returns from Credit

Past performance should not be taken as a guide to the future, losses may be made. Source: Ninety One calculations using BAML Index data, 31 December 1997 to 31 March 2020.

Excess returns vs US Treasuries improve at wider spreads

Big increase in yield pick up offered by Corporate bonds

‒ Spreads explain a higher proportion of IG excess returns and spread widening has been more pronounced for IG

10

Is the quantum of stimulus announced sufficient?

Summary of key stimulus measures to date (% of GDP)

Source: Bloomberg. Federal Reserve websites and press releases, ECB website and press releases, UK Government website, speech transcripts and March 2020 Budget. ML ‘China Economic Watch’ as at 31 March 2020.

11

Is China a reasonable proxy for post lockdown recovery?

Source: JHU, UBS, Ninety One, 3 April 2020

G7 Real GDP scenariosHow quickly is China recovering

12

Year-to-date portfolio activity and positioning

Source: Ninety One, 14 April 2020

YTD

‒ Net equity decreased from c. 20% to c. 15% by the end of Q120, although reached an intra-period low of 7%

‒ YTD (14 April 2020) exposure to investment grade and high yield bonds increased by +5.6% and +7.9% respectively, funded by the reduction in our developed market sovereign bonds

‒ Duration increased to 2.1 years

‒ Listed infrastructure holdings increased

Exposure at start of year, mid-march, currently

Asset Allocation % NAV Yield

Cash 1.4% 0.1%

DM Sovereign 12.3% 1.7%

IG Corporate 22.6% 3.0%

HY Corporate 13.7% 5.7%

EM HCD 0.7% 7.5%

EM LCD 18.1% 6.8%

Equity 27.2% 4.9%

Property 2.6% 5.7%

Infrastructure 1.3% 4.5%

Total 100.0% 4.3%

Equity Exposure Gross Net

United States 8.2% 5.6%

United Kingdom 7.3% 0.9%

Europe 9.5% 4.4%

Japan 1.1% 1.1%

Other 1.2% 0.6%

Total 27.2% 12.6%


Cash 3.5% 0.2%




EM HCD 0.8% 8.2%

EM LCD 19.3% 9.1%

Equity 27.6% 6.2%

Property 2.3% 8.0%


Total 100.0% 5.4%




Europe 9.1% 2.6%

Japan 1.2% 0.9%

Other 2.6% 1.6%

Total 27.6% 9.0%


Cash 3.5% 1.5%




EM HCD 1.3% 4.5%

EM LCD 18.4% 8.1%

Equity 29.3% 4.2%

Property 4.1% 4.6%


Total 100.0% 4.1%




Europe 9.4% 4.1%

Japan 0.8% 2.4%

Other 4.1% 4.0%

Total 29.3% 19.7%

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A: Security selection

Opportunities and changes: activity since quarter end

Purchases and sales indicated made in April 2020

Sales due to outperformance:

o Walmart de Mexico

o DBS

o Smiths Group

Sales due to deterioration in fundamentals:

o Lloyds (was 20bps of fund)

o Imperial Brands (was 40bps of fund)

Reductions based on end market cyclicality:

o Samsung, Adecco, AXA

(Re)purchases based on valuation: o Schneider Electric, CME

Purchases due to improving fundamentals:

o Home Depot

Additions to stocks that derated: o Pepsi, Enel, BAT, Iberdrola

Sale

s /

Red

uctio

nsP

urch

ases

/ A

dditi

ons

14

B: Structural diversification

Source: Ninety One, 31 March 2020. GDU exposure as a % of contribution to risk.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

APR-

16

JUN

-16

AUG

-16

OC

T-16

DEC

-16

FEB-

17

APR-

17

JUN

-17

AUG

-17

OC

T-17

DEC

-17

FEB-

18

APR-

18

JUN

-18

AUG

-18

OC

T-18

DEC

-18

FEB-

19

APR-

19

JUN

-19

AUG

-19

OC

T-19

DEC

-19

FEB-

20

% Growth % Uncorrelated % Defensive

‒ 16% equity hedges‒ 7% currency‒ 7% DM sovereign

bonds

‘GDU’

15

C: Limiting the downside

Significant and rapid reduction in risk

Source: Ninety One, 31 March 2020. Note: Where there is a large cash in/out flow for month end, chart displays next suitable period.

0%

5%

10%

15%

20%

25%

30%

35%

Jun

13

Aug

13

Oct

13

Dec

13

Feb

14

Apr 1

4

Jun

14

Aug

14

Oct

14

Dec

14

Feb

15

Apr 1

5

Jun

15

Aug

15

Oct

15

Dec

15

Feb

16

Apr 1

6

Jun

16

Aug

16

Oct

16

Dec

16

Feb

17

Apr 1

7

Jun

17

Aug

17

Oct

17

Dec

17

Feb

18

Apr 1

8

Jun

18

Aug

18

Oct

18

Dec

18

Feb

19

Apr 1

9

Jun

19

Aug

19

Oct

19

Dec

19

Feb

20

Physical equity Hedged equity

Net equity reached an intra-month low of 7% on the 18th March

16

Since Inception: Total Return, Volatility & Max Drawdown

Past performance is not a reliable indicator of future results, losses may be made.Source: Morningstar Direct 31st March 2020, Primary Share In GIFS Classification = Offshore Territories. Performance is net of fees (NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD. The Fund does not have a benchmark index or sit within a relevant peer group sector for comparison purposes. The peer group sectors above have been chosen for the similarities of their funds’ defensive investor outcomes to those of the Fund. Indices used are proxies for equities and bonds.

2019 2018 2017 2016 2015 2014Global Multi-Asset Inc I Acc USD 6.93 1.25 6.65 4.98 1.56 4.49Morningstar Category = Alt - Multistrategy 5.76 -8.14 13.54 -2.07 -5.85 -5.21Morningstar Category = Alt - Market Neutral - Equity -1.43 -7.49 13.32 -3.47 -3.82 -7.81Morningstar Category = USD Cautious Allocation 10.30 -4.15 6.78 2.75 -1.59 2.32BBgBarc Global Aggregate TR USD 6.84 -1.20 7.39 2.09 -3.15 0.59MSCI ACWI NR USD 26.60 -9.41 23.97 7.86 -2.36 4.16

2.915.01

-12.74

0.02

7.96

-19.20

0.78

5.95

-15.09

1.155.58

-14.08

1.895.90

-9.10

4.81

16.40

-33.74-40.00

-30.00

-20.00

-10.00

0.00

10.00

20.00

Total Return Volatility Max Drawdown

GMAI Mstar Alt - Multistrategy Mstar Alt - Market Neutral - EquityMstar USD Cautious Allocation BBgBarc Global Agg MSCI ACWI

17

Outlook & positioning

Source: Ninety One March 2020. Opinions based on current market conditions; subject to change without notice and without any obligation to update.

‒ Trajectory of markets remains highly uncertain

‒ A “V-Shaped” market recovery is unlikely

‒ Compelling opportunities exist within a number of asset classes

‒ Added to cheap corporate bonds and listed infrastructure selling government bonds

‒ Focused on securities with sustainable income and upside potential

‒ Net equity cautiously positioned after recent rally to protect downside

‒ Security selection designed to do the heavy lifting in terms of return generation

‒ Diversification and risk management used to navigate through volatile markets

www.ninetyone.com

Thank you

19

Biographies

For further information on investment team, please see the Important Information section.

Update: Monthly

John is Head of Multi-Asset Income at Ninety One, responsible for all multi-strategy income. He is lead portfolio manager on our multi-strategy income portfolios, as well as participating in the wider management of our multi-asset strategies. During his time at the firm John has held senior positions as Co-Head of Fixed Income & Currency, having previously been responsible for the management of our South African fixed income assets from 1998 to 2004.

John joined Guinness Flight in 1993, which was later acquired by Ninety One, and took responsibility for investments in emerging bond and currency markets. Previous to this, he worked in London and Tokyo as a specialist global bond and currency portfolio manager for Mitsui Trust Asset Management.

John graduated from the University of Oxford with an honours degree in Chemistry in 1990 and he is a CFA Charterholder.

Jason is a portfolio manager in the Multi-Asset team at Ninety One with responsibility for the Multi-Asset Income strategy.

Jason joined the firm to work on the income strategy as an analyst with responsibility for its equity exposure, prior to this he worked for Pan Asset Capital Management as an assistant fund manager on multi-asset portfolios. Previously, Jason worked for BlackRock as an analyst.

Jason studied Law at Oxford University. He holds an Investment Management Certificate and is a CFA charterholder.

John StopfordHead of Multi-Asset IncomeJoined the firm in 1998Joined the industry in 1990

Jason Borbora-SheenPortfolio ManagerJoined the firm in 2015Joined the industry in 2011

20

Important information

All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. This is not a recommendation to buy, sell or hold any particular security.

The value of this investment, and any income generated from it, can go down as well as up and will be affected by changes in interest rates, exchange rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. The Fund’s investment objective will not necessarily be achieved and there is no guarantee that these investments will make profits; losses may be made. This Fund may not be appropriate for investors who plan to withdraw their money within the short to medium term. Performance shown is that of the Fund and individual investor’s performance may differ as a result of initial fees, actual investment date, date of any subsequent reinvestment and any dividend withholding tax. All the information contained in this communication is believed to be reliable but may be inaccurate or incomplete. Any opinions stated are honestly held but are not guaranteed and should not be relied upon. This is not a buy, sell or hold recommendation for any particular security. It is not an invitation to make an investment nor does it constitute an offer for sale. Before making an investment, please read the Prospectus and Key Investor Information Document, which sets out the fund specific risks and is available from Ninety One SA (Pty) Ltd (“Ninety One SA”) . The portfolio may change significantly over a short period of time. The Fund is traded at the ruling price and can engage in borrowing and scrip lending and may be closed in order to be managed in accordance with the mandate. The fund may borrow up to 10% of its market value to bridge insufficient liquidity. The Fund is a sub-fund of the Investec Global Strategy Fund, which is a UCITS organised as a Société d’Investissement à Capital Variable under the law of Luxembourg. For further information on the Fund including application forms and a schedule of fees and commissions, please contact Ninety One SA. Fund prices and English language copies of the Prospectus, Report & Accounts and Articles of Incorporation and local language copies of the Key Investor Information Documents may be obtained from our website and free of charge from the following country specific contacts: Luxembourg – Investec Global Strategy Fund, 49 avenue J.F. Kennedy, L-1855 Luxembourg. In South Africa, Ninety One SA is an authorised financial services provider. The sub-funds offered for public sale in South Africa are approved under the South African Collective Investment Schemes Control Act.

Investment Team: There is no assurance that the persons referenced herein will continue to be involved with investing for this Fund, or that other persons not identified herein will become involved with investing assets for the Manager or assets of the Fund at any time without notice.

Investment Process: Any description or information regarding investment process or strategies is provided for illustrative purposes only, may not be fully indicative of any present or future investments and may be changed at the discretion of the manager without notice. References to specific investments, strategies or investment vehicles are for illustrative purposes only and should not be relied upon as a recommendation to purchase or sell such investments or to engage in any particular strategy. Portfolio data is expected to change and there is no assurance that the actual portfolio will remain as described herein. There is no assurance that the investments presented will be available in the future at the levels presented, with the same characteristics or be available at all. Past performance is no guarantee of future results and has no bearing upon the ability of Manager to construct the illustrative portfolio and implement its investment strategy or investment objective.

In the event that specific funds are mentioned please refer to the relevant minimum disclosure document in order to obtain all the necessary information in regard to that fund.

This presentation is the copyright of Ninety One SA and its contents may not be re-used without Ninety One SA’s prior permission.

GENERIC ADVISOR DISCLAIMER OFFSHORE FUNDS ONLY Changes to Ninety One Global Strategy Fund on 2 June