INVESTMENT ADVISORY. Navigating the UK LDI Market KPMG LDI Survey. kpmg.com/uk/investmentadvisory

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1 INVESTMENT ADVISORY Navigating the UK LDI Market KPMG LDI Survey kpmg.com/uk/investmentadvisory

2 ExEcuTIVE SuMMARY KPMG LDI SuRVEY saw continued exponential growth in the UK Liability Driven Investment (LDI) industry with the number of mandates increasing by (%) and total pension scheme liabilities hedged breaking through the. trillion mark. years ago, even the most informed trustee, advisor or asset manager might not have known the meaning of the acronym LDI. Today, the total market exposure of the uk Liability Driven Investment industry is over half a trillion pounds at the end of, making it arguably the largest single investment exposure that uk Defined Benefit (DB) pension have. The spiralling growth in LDI has primarily been driven by the DB industry s desire (both from a trustee and sponsor perspective) to control and manage risk with. The techniques used within LDI permit significant risk mitigation without the need to tie up large amounts of capital thus freeing up assets for trustees to seek opportunities elsewhere to cheapen the long term cost of funding the pension scheme. Over the past years, asset managers have built up their LDI teams and administrative infrastructure, sharpened their LDI offerings and created platforms for pension of all sizes to access. This perfect combination of pension scheme demand and ever improving supply from hungry asset managers competing for market share, has created one of the fastest growing and innovative investment areas for pension. This year s survey builds upon our previous four annual surveys, creating a comprehensive snapshot of the LDI market as it stands today. We would like to thank all managers for their participation in the survey. We note that all data has been provided to KPMG by the asset managers participating in the survey with the exception of the bond market pricing information which is sourced from the Bank of England. KPMG has again produced the definitive snapshot of the UK LDI Market Simeon Willis, Head of Investment Strategy LDI in wider strategy context LDI has proven it is capable of sparking fierce debate at the heart of strategic decision making. Investment decisions can now be sliced in many different ways. No longer is it just How much growth exposure?, How much matching? It s now possible to have both, in plentiful measures. Put another way, given the wealth of LDI and structured products available, it is possible for to have their bond and eat it too. Greater choice demands a more considered debate, where the merits of individual risk exposures need to be assessed and addressed individually. Whatever your view, be it that any hedging at these levels would be madness or that the only madness would be not hedging, this year s LDI survey shows that these issues have never been higher up on pension risk agendas. Barry Jones, Head of LDI My take on the LDI industry Leading the LDI research at KPMG at this time is a real pleasure. The very nature of LDI means that the industry is laden with exceptionally gifted characters. I can genuinely say that the uk LDI industry should be extremely proud of itself for how far it has come and the standards of excellence that it operates at. has seen the industry grow by another %. The established players have continued to bulk out their already impressive teams and invest further into systems and infrastructure. Likewise, there continues to be a real push from the smaller players wanting to get in on the action. Whilst I fully expect the Big to retain the lion s share of business, it will be intriguing to watch who is winning the most mandates going forward there are so many quality providers, each with their own specialism and appeal.

3 ExEcuTIVE SuMMARY KPMG LDI SuRVEY Key headline trends The LDI market smashes through the. trillion barrier > witnessed further rapid growth of the LDI industry. The number of LDI mandates increased by to 8 and the total liabilities hedged increased by 7bn to 7bn. > With ongoing demand to de-risk, pension looking to bank the gains from the continued equity market rally, and with % of existing mandates having triggers in place to extend further, we expect this growth to continue into and beyond. Mandate growth split evenly between pooled and segregated > LDI was once the domain of large pension with the scale to enter into transactions directly with sell-side investment banks in segregated mandates. > Around half of the growth in number of mandates in came from pension allocating into pooled LDI funds, strongly confirming that LDI is accessible for all pension. % of mandates use triggers 8%,,, of liabilities hedged Do the Big still dominate? Yes, but > Legal and General, Insight and BlackRock, the so called Big, remain firmly in place as the dominant providers of LDI in the uk, capturing 8% of the liabilities hedged. In segregated and bespoke pooled mandates, the Big make up 8% of the market and in pooled LDI mandates accounts for 7%. > Legal and General remain the largest LDI manager in the uk. They represent % of the uk LDI market, hedging a total of 9bn of uk pension scheme liabilities. > However, in pooled LDI, competition for business is fierce. When viewed from a perspective of mandate numbers, F&c are ranked number and Schroders are only a fraction behind Insight and BlackRock. Small appear to be the slowest to adopt LDI > Only % of mandates, by number, relate to with total liabilities below m. Whilst there appears to be plenty of opportunity for small to access well structured and good value pooled vehicles, it seems that the demand from small is much less than from larger. 8 LDI mandates Growth in the use of swaption > has witnessed a significant growth in the use of swaptions, with the notional exposure increasing from 7.7bn to 7.9bn. > It appears that this is a very specialised area of the market (and primarily occupied by large ) with only pension currently utilising this approach. One manager stated that their noteworthy growth was due to significant client education efforts over the previous two years so, looking forward, this space might see a steady upwards trend. > Surprisingly, growth has been more muted in the other Return Generating approaches over and in certain approaches there has been a retraction. 7% growth in liabilities hedged Pension have equal demand for hedging inflation and interest rates in > Over, the c.% increase in liability hedging has been shared equally between inflation and interest rate protection. This bucks the trend from last year, where inflation hedging was the most in demand. The fund industry remains optimistic in its outlook > The majority of managers expect interest rates and real yields to rise in line with or above what is currently priced into the market in the next three years. However, we do know that the market has the ability to surprise even the most informed investors. > Data from our survey shows that the average asset manager at that time expected that long dated yields would rise over the next years. A combination of central policy, political intervention and market events have led to these expectations not coming to fruition. It is essential for pension who are tactically holding back from hedging to ensure it is a risk that they can genuinely afford to run. Market share of the Big only % of mandates relate to below m

4 WHAT IS LDI? KPMG LDI SuRVEY 7 LDI or Liability Driven Investment has evolved a number of definitions. It captures the ethos of investing with a view to meeting your future liabilities rather than simply delivering a positive investment return. This can be achieved using approaches ranging anywhere between simply increasing duration of a gilt portfolio, to the use of a more sophisticated overlay strategy using instruments such as swaps. LDI is a key risk tool given the impact that movements in liabilities have on scheme funding levels and deficits. For the purposes of this survey KPMG has defined an LDI mandate as one which either has some sort of liability cashflow benchmark, or uses derivatives to gain exposure to nominal interest rate, real interest rate or inflation hedging, primarily for the purpose of liability risk. Mandates simply with broad bond or gilt index benchmarks have been excluded, as have single stock funds. Liability Driven Investment is a vital risk tool, but can be susceptible to acronyms and jargon Key terms used in this report LDI can be a technical topic, so for ease, we briefly define some of the key terms used in this report below. > Notional Value This is the value of liabilities whose interest rate or inflation risk has been hedged. > PV A measure of the sensitivity of a pension scheme s asset or liability value to changes in interest rates. It is the change in present value of the asset or liability for a basis point (or.%) change in yields. It is commonly used in swap markets as a convenient measure of trade size as it captures both notional value and duration in one figure. > IE A measure of the sensitivity of a pension scheme s asset or liability value to changes in expected inflation. It is the change in present value of the asset or liability for a basis point change in inflation, and is also known as Inflation PV. > Swap A contract where two parties agree to pay the other a series of cashflows based on an agreed economic variable or interest rate. It is a way of trading different risks, for instance interest rate or inflation risks. > Derivative that are designed to replicate the performance of an underlying asset without a physical holding.

5 8 WHAT IS LDI? KPMG LDI SuRVEY 9 KPMG and LDI KPMG is a leading specialist advising pension and sponsors in relation to asset and liability risk. We have been at the forefront of helping clients understand the benefits that an LDI approach can bring, and helping our clients to understand and implement the approach that is most suitable for them. KPMG has a wealth of tools and experience advising clients in relation to all stages of LDI from: > Feasibility > Cost/benefit analysis > Hedge construction and implementation > Monitoring As with all risk, real time monitoring of progress is essential. To this end, KPMG have developed an interactive online tool, Fusion, which allows trustees and companies to observe up to date movements in their scheme s financial position. This includes observing the impact of movements in interest rates and inflation, as well as the success of hedging and exploring new possible. Visit KPMG Fusion for more information KPMG is also deeply experienced in integrating these and other investment solutions with wider risk tools including funding strategy, benefit changes, insurance products (such as buy in) and longevity hedging to determine the most appropriate arrangement. Our annual LDI Survey is just one example of KPMG s commitment to investing in high quality research to inform and underpin our specialist advice. KPMG is highly experienced in advising on all aspects of LDI. In addition, KPMG has proven capability to integrate these decisions with wider pensions risk

6 LDI TRENDS IN PENSION ScHEMES KPMG LDI SuRVEY Over the total notional value of liabilities hedged by LDI has continued to increase from bn to 7bn an increase of 7%. in pension This increase has been driven primarily by an increase in the number of mandates. > The number of LDI mandates in the industry has increased by % during the year from 8 to 8. > Both nominal and real yields have risen by around.% since their lows in April, reducing the cost of LDI implementation and providing some relief for the average pension scheme. > As can be seen from the first two charts on the right, despite only accounting for % of the number of total mandates, segregated mandates account for over 8% of the total notional value of liabilities hedged. This is because a segregated mandate is the typical approach that larger pension tend to utilise. > However, the proportion of total notional liabilities hedged attributable to segregated mandates actually fell by c.% from a base of 8% in, despite an increase in liabilities hedged of 8.bn. This was due to rises in pooled and bespoke pooled mandates. > The amount of interest rate risk hedging, measured in PV, has increased from 8m in to 8m in, which represents a % growth in this measure. > Inflation hedging, measured in IE, has also increased, moving from 9m to 8m over the year, which represents a 9% growth in this measure. Notional liabilities hedged bn bn bn bn bn bn Total mandates m bn Notional amount of liabilities hedged for uk pension spllit by type of mandate Total number of mandates under Segregated Bespoke Pooled Segregated Bespoke Pooled 8 9 Note: Bespoke pooled data captured within pooled and segregated prior to Total LDI hedging by uk pension as measured by PV and IE PV IE

7 LDI TRENDS IN PENSION ScHEMES KPMG LDI SuRVEY In contrast to previous years, we have seen that the proportion of mandates with market level triggers in place has fallen in when compared to the previous year. From a base of 9% at the end of, 9% at the end of, and % in, the proportion of mandates where the fund manager monitors and implements triggers now stands at %. With yields rising through the year, trigger are likely to have been more successful than in ; when yields remained broadly flat. Please note the proportion with triggers surveyed is likely to underestimate the true level as some managers have indicated use of triggers in general but without specific client numbers. In these instances we have assumed no triggers are in use. Market level triggers remain the most popular type of trigger strategy (compared to funding level or time based triggers). Which benchmark? A key decision for pension using LDI is which benchmark to use. Of the mandates surveyed, as at the end of, around % were using a gilts based benchmark with % using swaps. The remaining % used a combination, sometimes referred to as best of both approach. As would be expected, we have witnessed little change in these proportions since last year. Proportion of clients with triggers in place Proportion of clients with triggers in place % % % % % % % % % Mandates with triggers split by type of trigger Time based % Combination % Funding level % Yield based 8% Discretionary or Execution-only? The overall split between discretionary and execution-only/semi-passive mandates has not changed significantly since last year. Please note that not all of the managers were able to provide the data on bases for their mandates. Our results do however confirm intuitive assumptions: segregated mandates are managed on a discretion basis and the vast majority of pooled mandates are managed on an execution-only basis. Noticeably though, the growing sophistication of the product offering in pooled space means that discretionary mandates are in place to challenge and even substitute execution-only mandates. Segregated and bespoke Pooled Discretion 8 Semi-passive 7 8 Execution-only 9

8 LDI TRENDS IN FuND MANAGEMENT KPMG LDI SuRVEY Background > Most of the survey is based on the responses of LDI providers who have agreed to participate. Aberdeen Asset Management and Scottish Widows Investment Partnership have decided not to participate this year due to an ongoing merger. Following a merger between PSolve and River Mercantile, PSolve s responses are now presented under the name of River and Mercantile. > As we have seen previously in our past surveys, there continues to be a large concentration within the industry amongst the largest providers. However, we have seen that competition and innovation has meant that this concentration has reduced slightly. Number of mandates split by pension scheme size > This year we have added a new question to the survey to capture the split of mandates grouped by size of pension scheme. Not all of the managers were able to provide the data, therefore our conclusions are based solely on the responses we have received. > We are surprised to see the limited number of LDI mandates for pension smaller than m in size; where there are only 8 mandates currently in place. > The results confirmed our intuitive understanding that segregated solutions would be the solution of choice for the larger pension. > Pooled mandates have proven to be a solution for small sized. Here over % of the mandates are managed in pooled funds. > Medium size appear open to either pooled or segregated approaches. Number of mandates managed on behalf of pension 8 Number of mandates 8 Segregated and bespoke Pooled in fund scheme size < m scheme size m - m scheme size m - bn scheme size > bn

9 LDI TRENDS IN FuND MANAGEMENT KPMG LDI SuRVEY 7 Segregated LDI Insight,.7bn Key headlines > The market share of the segregated and bespoke pooled fund market is illustrated below. > The segregated mandate market share remains concentrated, with the three largest providers accounting for 8% of the market. > The number of segregated and bespoke mandates rose by % over from 79 to. > Total PV for segregated and bespoke mandates in was 77m; rising by % from m in. > Total IE for segregated and bespoke mandates in was m which rose % from 9m in. > The smallest segregated mandate was.m and the largest was c. bn, which demonstrates the wide range of mandates segregated LDI managers are able to accommodate, despite the pooled approach being the favourite for small sized. Notional amount hedged in segregated and bespoke mandates BlackRock, 77.bn Other, 8.bn Aviva,.bn Standard Life,.bn River and Mercantile, 8.bn F&C, 8.bn Schroders, 7.bn State Street, 7.bn Cardano,.bn PIMCO,.bn Goldman Sachs,.bn Ignis,.bn Notional amount hedged Number of mandates bn bn bn 7bn bn bn bn 7bn bn bn bn 8 Notional amount hedged in segregated and bespoke mandates LGIM Insight BlackRock Aviva Standard Life River and Mercantile Number of segregated / bespoke mandates LGIM Insight BlackRock Aviva Standard Life River and Mercantile F&C F&C Schroders State Street Cardano Schroders State Street Cardano PIMCO Goldman Sachs PIMCO Goldman Sachs Ignis Ignis Axa Axa Axa,.9bn PV and IE across segregated / bespoke mandates bn bn PV IE LGIM,.bn PV / IE exposures bn bn bn bn bn bn LGIM Insight BlackRock * Data not provided Aviva Standard Life River and Mercantile F&C Schroders State Street Cardano PIMCO* Goldman Sachs* Ignis Axa

10 8 LDI TRENDS IN FuND MANAGEMENT KPMG LDI SuRVEY 9 Bespoke Pooled We have defined Bespoke Pooled arrangements as client-specific segregated mandates that are contained within a pooled fund structure. These can provide ease of access for without lengthy legal setup and counterparty negotiation. We have captured bespoke pooled mandates within the segregated data given the pecific nature of the mandates and comparable skill sets required by fund managers. For completeness, we have carved out the managers that offer these structures and the number and size of the client mandates. The bespoke market remains relatively small relative to segregated. The smallest bespoke pooled mandate was m and the largest was bn. We note that the numbers in Bespoke Pooled LDI are distorted slightly due to the restructure of the LGIM Better Bonds fund range, which were previously categorised in Pooled LDI. Post restructure in September these mandates are now classified in the Bespoke Pooled section. Bespoke pooled mandate providers Manager Mandates Notional liabilities hedged LGIM.bn Insight 7.bn BlackRock 8.8bn F&c.bn State Street.bn Axa.bn PIMcO.bn Total 79 7.bn

11 LDI TRENDS IN FuND MANAGEMENT KPMG LDI SuRVEY Pooled LDI Key headlines > The market share of the pooled fund market is illustrated below. > The number of pooled mandates rose by % over from to 7. > The pooled mandate market share by notional liabilities hedged remains concentrated, but to a lesser degree compared with segregated. The three largest providers now account for 7% of the market using this measure, compared with 79% last year. This suggests that pooled is an area where the competition has been more successful at winning market share. > This is further illustrated by the number of mandates, where F&c are now the second most used provider in pooled space and Schroders are only fractionally behind BlackRock and Insight. Total PV for pooled mandates in was.8m down by 8% from.7m in. Total IE for pooled mandates increased % to.7m in from.m in. > The smallest pooled mandate was m and the largest was m. This highlights considerable overlap with use of segregated accounts, demonstrating the sophistication of the pooled funds to accommodate larger mandates even where segregated is a viable alternative. > We note that the numbers in Pooled LDI are distorted slightly due to the restructure of the LGIM Better Bonds fund range. Post restructure in September these mandates are now classified in the Bespoke Pooled section. Number of mandates Notional amount hedged bn bn 8bn bn bn bn bn 8 Notional amount hedged in pooled mandates LGIM BlackRock Insight F&C Number of pooled mandates LGIM BlackRock Insight Schroders State Street F&C Schroders State Street Standard Life Standard Life Ignis Ignis Axa Axa Notional amount hedged in pooled mandates Standard Life.bn State Street.bn Ignis.bn PV and IE for pooled mandates Schroders.bn LGIM, 8.bn m m F&C.bn PV / IE exposure m 8m m PV EI Insight.bn BlackRock.8bn m m m LGIM BlackRock Insight F&C Schroders State Street Standard Life Ignis Axa

12 LDI TRENDS IN FuND MANAGEMENT KPMG LDI SuRVEY Range of pooled funds > Building on our analysis on the range of pooled funds in the LDI market, we have again shown the growth of how many managers offer certain types of pooled LDI products. The below analysis investigates the total number of different pooled fund ranges (in each category) offered by the LDI industry to uk pension that are still running. > has seen continued sophistication in this space and, as such, there is clear growth in the number of discretionary pooled funds opening. > Please note that the chart below only includes funds that are currently running. This means that funds which were launched, for example in 7, and have since closed are not included. Number Types and number of pooled funds (that are still running) SWAP GILT DISCRETIONARY Nominal Real Inflation Pooled fund options continue to expand, especially in discretionary mandates; mirroring techniques pioneered within segregated mandates.

13 SYNTHETIc GENERATING STRATEGIES KPMG LDI SuRVEY Pension are increasingly turning toward derivatives in order to gain access to growth exposures, such as equities and credit. These are known as synthetic approaches. We have again surveyed managers on their use of return seeking derivatives to gauge the trends in this area. Over, we have seen an increase in the use of synthetic approaches by uk pension, continuing the trend we described last year. > Swaption exposure showed the biggest increase, rising by 8% over despite a slight fall in the number of pension utilising them. It appears that the swaption market is the domain of large with the average exposure per mandate being significant. > Whilst both the number of clients having synthetic equity exposure and notional exposure rose in, the trends of using different derivatives varied compared to last year. > The number of using equity futures has increased significantly over. However, in terms of notional value, the growth was much slower, indicating a larger number of mandates with smaller exposure. > In terms of notional exposures, the use of equity Total Return Swaps (TRS) and synthetic credit increased. 7 Number of clients using derivatives Number of manda tes bn Equity TRS only Equity Futures only Mixture of Equity TRS and Equity Futures Equity Options Notional exposure by instrument Swaptions Credit Return Generating Strategies Notional Exposur e bn bn bn bn bn bn Equity TRS only Equity Futures only Equity Options Swaptions Credit

14 OuTLOOK KPMG LDI SuRVEY 7 Sources of growth in the LDI industry We have gauged the LDI fund managers expectations around the source of new LDI business. We asked the managers: What is the most likely source of growth in for your LDI business? > The majority of managers still expect growth to come from new business rather than existing LDI clients either extending their mandates or reaching triggers. > In fact, no managers thought the main source of growth would be from market level triggers being reached. > This is consistent with last year s results with even more managers expecting the growth to come from new business. Most likely source of LDI risk under growth in for your business? Extensions to current LDI mandates advised by client 7%.bn New business (from current non-ldi clients and/or new clients) 9% Where do you think most new mandates will come from for your LDI business? > 7% of managers expected new LDI clients to come from untapped LDI business, with % expecting to convert existing non-ldi clients. > Only % of managers expect that most of their new business will come from competitors. This suggests there is a continuing trend of limited expectations of changes in the market share. Where do you think that most new mandates will come from for your business? New clients to your firm from other LDI managers % Converting existing non-ldi clients into LDI % New clients to your firm but first time LDI clients (not from a competitor) 7%

15 8 OuTLOOK KPMG LDI SuRVEY 9 What is the most important issue for the LDI industry in? > The majority expect legislative changes to be the most important. This is likely to include centralised clearing which relates to changes in regulations around how derivatives are traded and stricter rules governing the levels and types of security that are required. This is likely to have a significant impact on the operational side of running an LDI business, due to the reliance on derivatives. This has grown from % of managers choosing this answer last year to 7% this year. > No managers believe that counterparty default will be the most important issue for the LDI industry in. > centralised clearing may also highlight any weaknesses managers established counterparty arrangements. What is the most important issue for the LDI industry in? None of the above 7% Rising yields % Counterparty default % Collateral (e.g., SONIA discounting) 7% Legislative changes (e.g., centralised clearing) 7% Legislative changes continue to dominate thinking within uk LDI How prepared are you for central clearing? > Over 7% said they were ready to switch immediately if required, with the remainder expecting to be ready in time for the anticipated regulatory change. This number has increased from % of respondents being prepared for the switch to centralised clearing last year.

16 OuTLOOK KPMG LDI SuRVEY Bond market views Due to the magnitude of the impact on funding levels, having a clear policy on how tactical views influence long term strategy is critical. We asked all investment managers what they thought about gilt yields and inflation. We summarise the results, which include the responses from a total of fund houses. The chart on the right illustrates historical year fixed interest gilt and index-linked gilt yields. This year s results show that there is more consensus among fund managers regarding gilt yields and inflation, with the majority believing that market expectations are either correct or slightly below where yields will end up. Nominal gilt yields We asked the investment managers: Where do you expect the year fixed gilt nominal yield to be in three years time relative to what the market is implying? The vast majority of managers believe that nominal fixed gilt yields will be in line or higher than what the market is currently implying. F r equency Y ield, % Nominal and Real year gilt yields Source: Bank of England Apr Aug Oct Dec Feb Apr Aug Oct Dec Feb Apr Aug Oct Dec Real y ear gilts Nominal y ear gilts Feb Apr Relative to what is implied by the market, where do you think the year fixed gilt nominal yield will be in three years time? Real gilt yields We asked the investment managers: Where do you expect the year index-linked gilt real yield to be in three years time relative to what the market is implying? The vast majority of managers believe that the year real yield will be in line or higher than what the market is currently implying. Implied Inflation We asked the investment managers: Where do you expect the year gilt implied inflation to be in three years time relative to what the market is implying? The vast majority of respondents believe that inflation will be in line or slightly above what is currently implied by the market. F r equency F r equency Relative to what is implied by the market, where do you think the year index-linked gilt real yield will be in three years time? <-.% -.% to -% In line +% to.% >.% Relative to what is implied by the market, where do you think year gilt implied inflation will be in three years time? <-.% -.% to -% In line +% to.% >.% <-.% -.% to -% In line +% to.% >.%

17 KPMG contacts in respect of this survey Simeon Willis, CFA T: + () 79 8 E: simeon.willis@kpmg.co.uk Barry Jones, FIA T: + () E: barry.jones@kpmg.co.uk Your regional KPMG Investment Advisory contacts London Patrick McCoy T: + () 7 9 E: patrick.mccoy@kpmg.co.uk Birmingham Ben Gold T: + () 9 98 E: ben.gold@kpmg.co.uk Manchester Barry Jones T: + () E: barry.jones@kpmg.co.uk Reading Greg Wright T: + () E: greg.wright@kpmg.co.uk Leeds Nick Evans T: + () E: nick.evans@kpmg.co.uk Glasgow David O Hara T: + () E: david.ohara@kpmg.co.uk Editor: Simeon Willis Authors: Barry Jones and Simon Baker-Munton Data-Analyst: Khristina Kushniruk Last year s survey Visit KPMG Fusion KPMG Fusion Pension Risk Management Power your pensions strategy in a new way Awards The KPMG LDI survey has been conducted using information provided by third parties. KPMG does not accept responsibility for the accuracy of the data or information provided herein. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP, a uk limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative, a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. Oliver Marketing for KPMG OM88A June Printed on recycled material