Aviva Irl Protected Growth Fund Protection, growth and diversification April 2011 For Financial Adviser Use Only FOR FINANCIAL ADVISER USE ONLY

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1 Aviva Irl Protected Growth Fund Protection, growth and diversification April 2011 For Financial Adviser Use Only

2 Agenda Aviva Irl Protected Growth Fund Your opportunity 5 reasons your clients will want to invest How the fund works Strong investment stories Current performance/positioning Place in a portfolio Summary

3 Your opportunity Aviva Irl Protected Growth Fund Increasingly clients are seeking prosperity and peace of mind The Irish retail market is heavily biased towards cash yet interest rates are falling Cash deposits Cash funds Aviva Irl Protected Growth Fund Conventional Equity/ Property Funds Your opportunity to offer your clients more: Security + Growth

4 At a glance Security 80% of highest daily unit price locked in Unlimited Growth Potential No cap on growth potential of the fund High growth asset classes Total return of corporate bonds and eurozone equities High Diversification CPPI Mechanism 1. Commodities 2. Eurozone large cap companies 3. Corporate bonds 4. Cash Growth component (initially 80% exposure) Secure component Rising market more exposure to growth component Falling market more exposure to secure component

5 At a glance Term Open ended flexibility to get in and out of the fund at any time. Availability Available through all our actively managed investment, savings and pensions products Can be used as part of a diversified portfolio Risk-reward rating Low to medium risk Counterparty

6 How the fund works The components Initial asset allocation Dynamic allocation thereafter Protected price in action Back-testing of strategy

7 The Aviva Irl Protected Growth Fund

8 Initial asset allocation Aviva Irl Protected Growth Fund The Growth Component Secure Component Growth Component 33% Commodities 20% 80% 33% Euro denominated Corporate Bonds 33% Eurozone Large Cap Companies

9 Dynamic allocation thereafter Aviva Irl Protected Growth Fund *The target maximum allocation to the growth component is 80%, however, actual maximum allocation can reach 88%. The target minimum allocation to the secure component is 20%, however, actual minimum can be 12%.

10 The Protected Price Promise Aviva Irl Protected Growth Fund Protected price is set at 80% of the highest ever daily unit price of the fund since launch, regardless of investment date As the fund s unit price increases so does the funds protected price 80% Please see brochure for further details

11 Backtesting through rising market April 2003 April 2007 Protected Growth Growth Component Cum 30.84% 52.93% Return Volatility 5.50% 8.08% Best Month Worst Month Protected Price 2.19% 5.23% -3.35% -3.81% % Source of back testing Aviva Investors February Please see Basis of backtesting at the end of the presentation for further details on the basis of calculation.

12 Backtesting through falling market July 2007 March 2009 Protected Growth Growth Component Cum % % Return Volatility 6.2% 15.31% Best Month Worst Month Protected Price 2.6% 2.82% -5% -9.03% 80.92% Source of back testing Aviva Investors February Please see Basis of backtesting at the end of the presentation for further details on the basis of calculation.

13 Backtesting falling then rising January 2001 January 2006 Protected Growth Growth Component Cum 6.41% 20.08% Return Volatility 5.1% 10.75% Best Month Worst Month Protected Price 4.64% 5.23% -3.51% -7.14% 85.19% Source of back testing Aviva Investors February Please see Basis of backtesting at the end of the presentation for further details on the basis of calculation.

14 Backtesting rising then falling April 03 March 09 Protected Growth Growth Component Cum 15.59% 15.24% Return Volatility 5.8% 10.52% Best Month Worst Month Protected Price 3.1% 5.23% -4.8% -9.03% % Source of back testing Aviva Investors February Please see Basis of backtesting at the end of the presentation for further details on the basis of calculation.

15 Strong investment stories Secure component - cash funds and cash instruments Diversified exposure to three uncorrelated asset classes with strong growth stories: Commodities: DJ UBS Commodities Index Eurozone Large Cap Companies: DJ Euro Stoxx 50 Index Total Return Euro Denominated Investment Grade Corporate Bonds: Iboxx Liquid Corporates Equal weighting of indices in growth component Rebalanced at least quarterly

16 Asset classes spanning the risk reward spectrum

17 Asset classes with low correlations Growth component Asset class correlations hugging 0 Correlation coefficient 04 Jan Dec Perfect positive correlation: Returns both positive and negative of two asset classes move in tandem No correlation Commodities vs. large cap Eurozone companies Corporate bonds and commodities Eurozone corporate bonds vs. large cap Eurozone companies 0.23 Source: Aviva Investors January Perfect negative correlation: returns of two asset classes move by an equal amount in the opposite direction

18 Story 1 Commodities

19 Diversified exposure 5 sectors,19 sub-sectors Source: Dow Jones 31 Jan 2011

20 Story 1: Commodities DJ UBS Commodities Index Strong performance of commodities market Corn Oil Wheat Silver Copper % -2.97% % % % % % % % % % % % -24.1% % % % % % % % % % +83% +33.3% Source: Feb

21 Long-term performance of DJ UBS Commodities Index Source: Aviva Investors to 31 Jan 2011

22 It s all about demand and supply Strong demand: Emerging markets particularly India and China are demanding commodities to: o Fuel Infrastructure and manufacturing growth o Feed and cloth their rising and wealthier populations. Inflation protection Gold and other precious metals seen as safe havens during uncertainty Limited supply: Hard commodities are a finite resource Some metals and fossil fuels are becoming much more difficult, and expensive, to extract Regulations due to environmental concerns are slowing the pace of development in other areas Certain commodities subject to geopolitical risk and weather risk Agricultural commodities - agricultural land being depleted due to long-term global trends such as urbanisation and climate change Strong demand + Limited supply = rising prices

23 Story 2: Eurozone large caps DJ Euro Stoxx 50 Index TR Investment universe covers 50 largest companies in the eurozone by stockmarket capitalisation 23

24 Enhancing upside 20 years = 194% Cushioning against downside 5 years =14% DJ EuroStoxx 50 TR Index constituent of the Secure Plus Fund For Financial Adviser Use Only Source: AIB Feb 2011

25 Top ten holdings cost of leaving dividends behind Dividend yield 5.21% 2.87% 7.93% 4.1% 5.03% Dividend yield 3.76% 2.87% 6.33% 3.62% 4.39% Source: FT 28 Feb

26 Story 3 Euro denominated corporate bonds Iboxx Liquid Corporates TR The iboxx Liquid Corporates Index offers exposure to the 40 largest and most liquid Euro denominated corporate bonds with investment grade rating. Only bonds with a minimum remaining time to maturity of 1.5 years and a minimum amount outstanding of 750 million are included in the index

27 Story 3 Euro denominated blue chip corporate bonds Investment vehicle: instruments that track the Iboxx Liquid Corporates Medium risk element of growth basket Corporate bond yields attractive versus government bonds Underlying conditions remain supportive low interest rates and subdued inflation Source of diversification Lower risk than equities Higher returns than government bonds

28 Story 3 Euro denominated blue chip corporate bonds Source: BlackRock Advisers (UK) Limited 13 April 2011

29 Top holdings of well known companies 13 April 2011 Source: BlackRock Advisers (UK) Limited 15 April 2011

30 Less volatile than equities, higher returns than government bonds Index performance rebased to Feb 2004 = 100 Source: Aviva Investors Feb 2011

31 Positioning the Aviva Irl Protected Growth Fund Provides more certain return outcomes than unprotected exposure to riskier assets Low risk core that can be combined with other asset classes Diversified exposure to uncorrelated asset classes Eliminates fund manager risk Offers more sustainable exposure to riskier areas of the market such as commodities Aviva plc 2009

32 Current positioning and performance

33 Performance of the Protected Growth Fund to 31 March 2011 Source: Aviva Investors 31 March 2011

34 Protected growth strongly outperforming cash since launch March April 2011 A: Protected Growth 4.08% B:: Cash 0.76% Source: Financial Express 15 April 2011

35 Current positioning Source: Aviva Investors 31 March 2011

36 5 reasons to invest Aviva Irl Protected Growth Fund 1. Price promise aims to provide a downside protection of 80% of the highest ever daily unit price 2. Growth: No cap on the growth potential of the fund 3. Diversification: access to four asset classes with low correlations and different risk-reward characteristics 4. Flexibility: freedom to switch in and out of the fund 5. Availability: available through all actively marketed single and regular investment and pension products and ARFs/AMRFs Diversified portfolio providing unlimited upside with the comfort of downside protection

37 Important information WARNING: PAST PERFORMANCE IS NOT A RELIABLE GUIDE TO FUTURE PERFORMANCE. WARNING: THE VALUE OF YOUR INVESTMENT MAY GO DOWN AS WELL AS UP. WARNING: THIS PRODUCT MAY BE AFFECTED BY CHANGES IN CURRENCY EXCHANGE RATES. WARNING: WITHDRAWALS AND SWITCHES FROM FUNDS INVESTING DIRECTLY OR INDIRECTLY IN PROPERTY MAY BE DEFERRED FOR UP TO 6 MONTHS. WARNING: WITHDRAWALS AND SWITCHES FROM ALL OTHER FUNDS MAY BE DEFERRED FOR UP TO 3 MONTHS. Aviva Life & Pensions Ireland Limited, A private company limited by shares. Registered in Ireland No Registered Office One Park Place, Hatch Street, Dublin 2. Member of the Irish Insurance Federation. Aviva Life & Pensions Ireland Limited is regulated by the Financial Regulator. Aviva Life & Pensions Ireland Limited is a subsidiary of Aviva Life Holdings Limited, a joint venture company between Aviva Group plc and Allied Irish Banks, p.l.c. Telephone calls may be recorded for quality assurance purposes. The information and views contained here in is from Aviva Life & Pensions Limited and mentioned fund managers except where otherwise stated. These views are subject to change at any time based on market and other conditions and there can be no assurances that countries, markets or sectors will perform as expected.