Our investment themes. Four themes reshaping the investment landscape

Transcription

1 Our investment themes Four themes reshaping the investment landscape December 2018

2 2 Our investment themes Contents Introduction 03 Themes 04 Theme 1 Disruption: opportunities & risks 06 Theme 2 Dimensions of risk 07 Theme 3 Sustainable returns 09 Theme 4 Demonstrating values, delivering value 10 Thought leadership library 12 Author Jeremy Lawson Head of ASI Research Institute Our Thinking: Thought Leadership Our thought leadership papers deliver thoughtprovoking analysis of key investment themes. Through focused and unique insights into topical issues, we aim to provide investors with a deeper understanding of the challenges and opportunities within global investment markets.

3 Our investment themes 3 Introduction These are times of rapid change. Political moderation and globalisation are in retreat. Livelihoods and business models are being threatened by new technology. Unprecedented levels of environmental degradation pose an existential threat. And expectations of ever-rising prosperity need to be reassessed. In the investment world, we may have reached an inflection point. Investment strategies that worked well before will need to evolve. Change brings both risks and opportunities, but business as usual isn t an option. We have identified four themes that will reshape the investment landscape over the coming years. The underlying issues we set out in this paper have implications for your investment decisions. These themes inform and shape: the solutions we offer; our product development; and the investment decisions we make on behalf of our clients. In this paper, we set out the key issues and pose the questions that we will look to answer in 2019; through our research agenda, our thought leadership papers and our investment seminars. These are times of rapid change. Political moderation and globalisation are in retreat. Livelihoods and business models are being threatened by new technology.

4 4 Our investment themes Four Themes 1 Investing is being reshaped by technological, regulatory and policy change Economic and polictical disruption Business disruption Disruption: opportunitites & risk Disruption of investment management Regulatory disruption 2 Dimensions of risk Managing risk requires identifying, understanding and communicating the many risks involved in investment. Understanding risk Communicating risk Integrating ESG analysis Human risks 3 Sustainable returns Delivering long-term investment returns must be consistent with supporting a sustainable society A world of low numbers? Demographics Sustainability EM-DM convergence 4 Demonstrating values, delivering value Delivering value requires aligning the interests of asset managers, asset owners and the broader society Value of stewardship Solutions for institutions Solutions for individuals Building a global profession

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6 6 Our investment themes 1. Disruption: opportunities & risks Investment is being reshaped by technological and regulatory change Economic disruption Technological change is disrupting the economy, markets and employment, with investment in intangible assets now exceeding tangible assets in the US and the UK. These investments are different, making them hard to measure in economic activity, while increasing uncertainty over the expected return on investment. We will assess the impacts on longer-term growth and asset prices. The election successes of populist parties are reshaping the economic agenda. We will analyse the implications of the protectionist turn in trade policy for globalisation. Agreeing on and implementing Eurozone reform becomes more difficult amidst increased nativism. We will look at the implications for bond yields. Business disruption Accelerating innovation brings increasing uncertainty over the sustainable competitive advantage of companies operating in many sectors of the economy. The rising proportion of intangible assets on corporate balance sheets has implications for credit investors. We will explore the implications for recovery rates from debt defaults. E-commerce is reshaping real estate, challenging many traditional retail properties and creating opportunities in logistics. Changing working patterns are driving change in business models within the office property sector. Disruption of investment management Technology provides new tools that allow the next generation of savers to manage their own affairs. They will interact with investments in a completely different way. We will examine the consequences for the investment industry. underlying knowledge also has uses in fundamental analysis, allowing asset managers to better understand idiosyncratic risks in portfolios. The fundamental rules of investment have not changed, but asset managers can add value by embracing innovation. Regulatory disruption The modernisation of regulatory regimes is leading to greater transparency on risk across the financial industry, driving changes in investment strategy. Solvency II (and similar regulations) has exposed the mismatch between assets and liabilities in a number of insurance markets around the world, necessitating new thinking on investment strategy. Providers of investment solutions to individuals must be able to demonstrate the suitability of their products and services. Mifid II regulations are reshaping both the provision of research and the trading landscape. Putting an explicit price on research is leading investment management firms to bring more research in-house. Demonstrating best execution will require greater visibility on trading venues. Technology provides new tools that allow the next generation of savers to manage their own affairs. They will interact with investments in a completely different way. Computer science is transforming investment decision-making. Advances in quantitative investment allow investors to isolate specific drivers of return, to analyse different dimensions of risk and so build better portfolios. But this does not remove the need for human judgement. We will explore how the two approaches can be blended. The growth in passive investing, smart beta and other systematic strategies is putting pressure on all investment managers to demonstrate the value they bring to their clients. The

7 Our investment themes 7 2. Dimensions of risk Understanding risk Identifying, analysing and communicating the many risks involved in investment Traditional risk measures often fail when most needed. Dimensionality provides a more robust approach to managing diversification, avoiding the weaknesses of alternative approaches; whether traditional optimisation, risk parity, minimum variance, or maximum diversification. Combining different risk mitigation strategies in a dynamically managed approach can reduce tail risk at lower cost than employing a single strategy or a static approach. Quantitative finance opens up new opportunities, but also increases the risk of over-fitting data identifying new sources of return that don t exist. Systematic approaches to investment must be based on a deeper, research-driven understanding of the fundamental drivers. This is essential in understanding their true risks. Communicating risk Investment managers and asset owners are too focused on volatility and correlations. By contrast, risk is very subjective to retail investors. We will explore a wider dashboard of measures and techniques to help investors appraise the effectiveness of an investment strategy. The broadening of financial markets means risk taking has become easier but risk assessment has become more difficult. The ongoing shift from public to private market assets by long-term savings institutions brings the need for new thinking on risk management. There are different dimensions to managing liquidity, understanding pricing and measuring performance. These differences mean investment is increasingly carried out by asset class specialists, but they need to clearly communicate the risks involved to non-experts. We will be developing our ESG analysis under five themes: environmental responsibility; climate change; employment and labour practices; human rights and community; and business ethics and governance. We incorporate the United Nations Sustainable Development Goals, which provide a widely accepted framework for analysing and measuring progress towards a more sustainable future. Climate change represents a real risk to long-term investors: from the direct threat to physical property; to possible disruptions to an increasingly global supply chain; to the risk of stranded assets in the energy sector. Financing the transition to a low carbon economy will require investment, on some estimates*, equivalent to $6 trillion per year through to Investment on this scale must be mainstream and global, but does the will exist to follow through? We will set out the issues facing investors. Human risk Our industry needs to help investors understand the behavioural biases that influence our decision-making, to help them make better choices with their savings. Individuals need to learn how to manage their emotions when managing their investments. Institutions too need to build processes to reduce human errors and avoid groupthink. Investors can be overly influenced by the emotions triggered by short-term losses and gains. We will show how long-term investors can adopt more appropriate timeframes for measuring risk and return. Artificial intelligence can help people to make more consistent, fact-based decisions but does not remove the need for human judgement it is a tool, not a solution. Artificial intelligence works best when it provides intelligence augmentation. Integrating ESG analysis How does ESG integration affect the risks and returns of investment portfolios? ESG analysis is a fundamental ingredient in understanding the risks of an investment, alongside traditional measures of risk. Combining active engagement and active management provides the potential for investors to do the right thing and make money. We will analyse the impact of engagement on investment returns. * Source: New Economy, New Finance, New Bank, speech by Mark Carney, Governor of the Bank of England, 21 June 2018

8 8 Our investment themes Sustainable returns need a sustainable planet. We will demonstrate how incorporating ESG factors into measures of relative economic strength can deliver a fairer and more nuanced way of assessing national success.

9 Our investment themes 9 3. Sustainable returns Balancing the delivery of long-term investment returns and a sustainable society A world of low numbers? The last decade has been a world of low numbers low interest rates, low bond yields, low economic growth. The maturing of the economic cycle and rise in US bond yields make it necessary to explore if this description still applies. Expectations of sustained low investment returns are driving a shift from public to private markets. The advent of inflation targeting has permanently shifted the outlook and risks for inflation, but this stability sometimes translates into greater instability elsewhere in the financial system. We will explore how monetary policy can innovate when the next global economic downturn arrives, and the implications for investors. There is a productivity puzzle, with productivity growth slowing against the backdrop of rapid technological change. We will analyse the extent to which mismeasurement, changing market and business structures, technology, demographics, policy factors and the nature of the current business cycle itself have contributed to this measured slowdown. Demographics The age profile of most countries is increasing as life expectancy continues to rise and fertility rates decline or remain low compared with long-term averages. How do these demographic trends vary across economies? What are the implications for saving rates, potential growth and inflation? How should we expect pension, retirement systems and government spending priorities to adapt? We will explore what these trends mean for long-term asset returns and investment strategy. The economic case for diversity is strong, and includes the consideration of gender, ethnicity, cognitive, and socio-experiential diversity to optimise the impact. In real estate, the combination of rising house prices and rising inequality has led to a growing demand for low-cost housing that neither the public nor private sectors have adequately met. We will show how addressing a key social need can deliver strong private return. EM-DM convergence? The emerging market label is no longer fit for purpose. Rapid progress in the developing world over the past two decades means this bipolar view of the world does not reflect reality. The wealth of the world is more evenly spread, with most of the world s population in the middle. We will explore the ingredients for future success, including the strength of institutions and management of ESG factors. The opening up of markets in the emerging world is increasing the investment universe for global investors. Emerging economies account for 60% of global activity and one third of global trade, yet their financial assets make up only 10% of the global financial system. This share could treble by 2030*. We will demonstrate how this will reshape the investment universe. China is growing and evolving, driving global economic trends and creating new investment opportunities through the opening up of local markets. We are developing a China Financial Conditions Index to help us characterise the stance of policy in a world where China has an increasing impact on the global business and financial cycles. Urban populations made up one third of the global population fifty years ago, half today and are expected to be two thirds in fifty years time. We will explore how the further rise of cities will reshape real estate markets. Sustainability Sustainable returns need a sustainable planet. We will demonstrate how incorporating ESG factors into measures of relative economic strength can deliver a fairer and more nuanced way of assessing national success. Impact investing investing in companies that generate positive social and environmental impacts is entering the mainstream. Investment managers will increasingly need to demonstrate both the returns on their investment and the impact of their activities on society. * Source: New Economy, New Finance, New Bank, speech by Mark Carney, Governor of the Bank of England, 21 June 2018

10 10 Our investment themes 4. Demonstrating values, delivering value Value of stewardship Aligning the interest of asset managers, asset owners and the broader society The investment management industry is not only responsible for the efficient allocation of capital but the ongoing stewardship of investments on behalf of end-investors. Providing effective stewardship actively engaging with companies to represent the interests of investors - will help clients to invest with confidence. We will outline how we are strengthening our role as custodians of other people s money, taking a vocal line on companies not acting in the interests of our clients. The prioritisation of ESG integration is at different stages around the world, with Europe leading and the US lagging. The growing role of private market assets in portfolios brings the need for more direct engagement. We will explore the over-reliance on a small number of auditing firms. Following accounting standards is not sufficient to give investors a true and fair view of a company s health and prospects. Solutions for institutions Finding, analysing and accessing investments in private markets requires highly specialist knowledge, creating a significant barrier for most investors. Our long history in these markets allows us to provide access to a broader range of assets. But external managers need to do more than simply provide access. They must demonstrate a genuine understanding of the needs of institutions; engage in a dialogue of equals on investment strategy; and provide support on risk management. The way the world is financed has fundamentally changed. Institutional asset managers are filling the void as banks are forced to retreat from risky lending. Institutional owners of assets need their external managers to support them in dynamically managing exposures across public and private markets. Solutions for individuals The purpose of financial services must be clearly articulated: giving people affordable access to investments and tax wrappers so they can preserve their capital, grow their wealth and generate income. Our industry needs to rebuild trust through increased transparency; on costs, risks, voting and more. Asset managers need to meet the evolving needs of individuals. There is a growing role for outcome-oriented portfolios, offering end-to-end investment solutions. Asset managers need to help investors understand the necessity to focus on the long term in assessing the performance of products designed for pensions and other long-term savings. Regulated financial advice is inaccessible for many people with small savings pots due to the disproportionate cost. Our industry must embark on a series of changes to better serve investors, including this squeezed middle. Robo-advice will complement existing advice services to make them more affordable and inclusive for those with simpler needs. Building a global profession As a leading global asset manager, Standard Life Aberdeen needs to work with regulators and policy makers to build a financial system that better serves society. A system that allows capital to more freely and efficiently around the world supports sustainable economic development. Individuals will increasingly have to take more responsibility for their own financial futures, as neither the state nor their employers will provide generous pensions. The asset management industry can help by providing the right tools, solutions and advice. A sharing of defined contribution (DC) ideas across the world will allow countries in the early stages of Pillar II pension provision (such as India and China) to learn from those with more mature DC markets (notably Australia, Canada, the UK and the US). The simple duty to do right by our clients should be at the core of everything that we do. The purpose of financial services must be clearly articulated: giving people affordable access to investments and tax wrappers so they can preserve their capital, grow their wealth and generate income.

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12 November 2018 For professional investors only. Switzerland: For Qualified Investors only. Not for use by retail investors. A study of investment strategy through one-on-one interviews with senior investment professionals - October 2018 Lessons from the pioneers of investing 12 Our investment themes Providing our clients with original insights on investment issues is an important part of our service. Thought leadership library Aberdeen Standard Investments is the largest active manager in the UK and one of the largest in Europe. * It has a significant global presence and the scale and expertise to help clients meet their investment goals. As a leading global asset manager, Aberdeen Standard Investments is dedicated to creating long-term value for our clients. Providing our clients with original insights on investment issues is an important part of our service. Below we set out the papers we have published under the Aberdeen Standard Investments brand. These include selected publications produced prior to the merger that remain relevant to informing today s investment decisions. Some of the papers featured below are suitable for professional investors only (qualified investors in Switzerland). Featured Papers Social Capitalism Taking a Wider View of National Progress Social Capitalism: Taking a Wider View of National Success, November 2018 We introduce a new indicator of national progress for 135 countries that measures the extent to which they are persistently economically dynamic and making progress on meeting UN Sustainable Development Goals on environmental, social and governance (ESG) issues. We consider the implications for investors and policy makers. North American Insurance Survey Tackling the twin forces: interest rates and technology North American Insurance Survey: tackling the twin forces interest rates and technology, November 2018 We met with senior investors representing a third of the insurance assets in North America for in-depth face-to-face interviews. We identified four themes that represent a call to action for the industry. We discuss how the industry will deal with an expected shortfall in investment returns. 200 years of asset allocation: 200 years of asset allocation: lessons from the pioneers of investing, October 2018 Today s challenges created by a prolonged fall in yields are not unique in history. We explore how investment strategy responded to the major events of history and draw conclusions for today s managers of long-term liabilities. *as at 30 Jun Source, Standard Life Aberdeen plc.

13 Suitable for multiple jurisdictions. For qualified investors only in Switzerland. October 2018 October 2018 For professional investors only Not for use by retail investors or advisers Promoting sustainability in smart beta investment strategies Exploring recent innovation in the growing space between active and passive Global research study - July 2018 For Professional Investors only, in Switzerland for Qualified Investors not for use by retail investors June 2018 April 2018 This document is intended for institutional investors and investment professionals only and should not be distributed to or relied upon by retail clients. April 2018 Kenneth G. Tropin Graham Capital Management Dr Ray Carroll Robert S. Koenigsberger Neuberger Berman Breton Hill Gramercy Funds Management Paul Sabourin Polar Asset Management Partners Dr Jane Buchan PAAMCO, PAAMCO Prisma Holdings J. Kyle Bass Hayman Capital Management David C. Haley HBK Capital Management Dr Robert C. Merton Massachusetts Institute of Technology Dr Campbell Harvey Duke University, National Bureau of Economic Research, Man Group Luke Ellis Man Group Andrew McCaffery Aberdeen Standard Investments Stuart Roden Lansdowne Partners Sir Paul Marshall Marshall Wace Sir Michael Hintze CQS Dr Leda Braga Systematica Investments Fiona Frick Unigestion Chemistry, unlike other sciences, sprang originally from delusions and superstitions, and was at its commencement exactly on a par with magic and astrology. Thomas Thomson, Scottish chemist, Seth Fischer Oasis Capital INDUSTRY LEADERS ON THE FUTURE OF THE HEDGE FUND INDUSTRY Philippe Jordan Capital Fund Management Dr Jim Liew John Hopkins Carey Business School Dr Lasse H. Pedersen New York University Stern School of Business, Copenhagen Business School, AQR Global Asset Allocation Lee S. Ainslie Maverick Capital J. Tomilson Hill Blackstone Alternative Asset Management, Blackstone Omar Kodmani EnTrustPermal Danny Yong Dymon Asia Capital Anthony Kaiser Kaiser Trading Group February 2018 This document is intended for institutional investors and investment professionals only and should not be distributed to or relied upon by retail clients. ESG and the corporate bond investor December 2017 Our investment themes 13 China s Bond Market What and Why and When China s bond market: What and Why and When, October 2018 China s onshore bond markets are too important to ignore. This paper offers a guide to newcomers. For informed investors looking for a deeper understanding, we analyse China s debt burden, decipher domestic credit ratings and explain the pros and cons of the rise in defaults. Impact Investing Embracing the UN s Sustainable Development Goals in investment Impact investing: embracing the UN s Sustainable Development Goals in investment, February 2018 Best practice in ESG integration has moved on from negative screening to targeting positive outcomes. Impact investing involves investing in companies that have the intention of generating positive social and environmental impacts alongside financial returns. The UN s SDGs incorporate key performance indicators that provide widely accepted measures of success. Five Views of China An Insider s Guide To The Forces Shaping Local Markets Five views of China: an insider s guide to the forces shaping local markets, October 2018 China s economy has reached a crucial stage of its development. We invited our experts on the ground to comment on local issues less well understood by foreign investors, in an attempt to better understand this vast country, the investment trends and the potential pitfalls. Doing 'the right thing' and making money Doing the right thing and making money: ESG and the corporate bond investor, Dec 2017 ESG analysis is a necessary tool for corporate bond investors. We define what it means to do the right thing, look at how portfolio managers can incorporate ESG analysis in their investment process, and consider how ESG integration is likely to affect investment returns. Long-term investment outlook Long-term investment outlook, October 2018 We set out the economic and asset class views that inform our strategic asset allocation work for clients. At its heart, it is a set of views on the risk premia that underlie investment returns. We provide in-depth analysis of trends in growth, interest rates and inflation, together with our detailed thinking on return drivers for nine asset classes and strategies. Evaluating Multi-Asset Strategies: published in the Journal of Portfolio Management, Dec 2017 Evaluating the performance of a multi-asset portfolio requires looking beyond simple correlation measures. We discuss the limitations of correlations and propose a range of techniques to help us appraise the effectiveness of these strategies. Smart beta and ESG Smart beta and ESG Smaller companies: big opportunities? Smart beta and ESG: Promoting sustainability in smart beta investment strategies, July 2018 We surveyed 85 investors based in 21 countries who are collectively responsible for some USD7.6trn in AUM. This paper outlines investors plans to integrate ESG and smart beta into the investment process. It demonstrates how the innovative combination of the two can influence manager selection. Smaller companies, big opportunity? April 2018 Smaller companies are too big a portion of the global investment universe to ignore. We set out their strong historic performance, the fundamental drivers of their above-market returns and the risks involved. And highlight the opportunity for active management. Additional papers Considering ESG for Emerging Market Sovereigns: the value of environmental, social, governance and political (ESGP) factors in emerging market analysis, February 2018 Forward-looking scenario analysis: preparing your portfolio for the unknown unknowns, February 2018 Bridging the return gap in asset allocation: postscript to the Asia Pacific insurance survey, January 2018 Labour relations: why do labour relations matter to investors? January 2018 Rethinking DC default design Part 1: budgeting for risk, January 2018 The elements of ESG The elements of ESG, April 2018 We examine how ESG is different from other types of stewardship, the trends driving the adoption of ESG principles and what investors should look for in an ESG-focused manager. ESG management isn t just about creating a better world, but helping to achieve investment goals. Rethinking DC default design Part 2: budgeting for behaviour, January 2018 Solving the insurance outsourcing puzzle: postscript to the Asia Pacific insurance survey, Dec 2017 Asia Pacific Insurance Survey: the twin forces reshaping the industry, Oct 2017 Dating the global business cycle, July 2017 P E R S P E C T I V E S Perspectives: industry leaders on the future of the hedge fund industry, April 2018 Published in collaboration with the Alternative Investment Management Association, this paper gazes into a crystal ball to look at product development, the challenges of reconciling profit with social responsibility, as well as the potential impact from the rise of artificial intelligence. Understanding political risks in markets, Mar 2017 China at a crossroads, Aug 2016 Optimal matching adjustment: how to construct an optimal matching adjustment asset portfolio under Solvency II, Feb 2015

14 14 Our investment themes Important information Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results. This is not a complete list or explanation of the risks involved and investors should read the relevant offering documents and consult with their own advisors before investing. Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments. The information herein should not be considered an offer, investment recommendation, or solicitation to deal in any financial instruments or engage in any investment service or activity. 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Please note that some of the investments referenced in this publication are not authorised for distribution in all of those jurisdictions in which we operate. For further information, please speak to your usual contact or visit our website Europe, Middle East and Africa United Kingdom: Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen s Terrace, Aberdeen, AB10 1XL. Standard Life Investments Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Both companies are authorised and regulated in the UK by the Financial Conduct Authority. EU, Norway, Iceland and South Africa: Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen s Terrace, Aberdeen, AB10 1XL. Standard Life Investments Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Both companies are authorised and regulated in the UK by the Financial Conduct Authority. Switzerland: Aberdeen Standard Investments (Switzerland) AG Registered in Switzerland No. CHE Registered Office: Schweizergasse 14, 8001 Zurich. Authorised by the Swiss Financial Market Supervisory Authority (FINMA). Abu Dhabi Global Market ( ADGM ): Aberdeen Asset Middle East Limited. Regulated by the ADGM Financial Services Regulatory Authority. Aberdeen Asset Middle East Limited, Al Sila Tower, 24th Floor, Abu Dhabi Global Market Square, Al Maryah Island, PO Box , Abu Dhabi, United Arab Emirates. Asia-Pacific Australia and New Zealand: Aberdeen Standard Investments Australia Limited ABN , AFSL No In New Zealand to wholesale investors only as defined in the Financial Markets Conduct Act 2013 (New Zealand). Hong Kong: Aberdeen Standard Investments (Hong Kong) Limited. This document has not been reviewed by the Securities and Futures Commission. Indonesia: PT Aberdeen Standard Investments Indonesia. PT Aberdeen Standard Investments Indonesia is an investment manager license holder, registered and supervised by the Indonesia Financial Services Authority (OJK). Japan: Aberdeen Standard Investments (Japan) Limited. Malaysia: Aberdeen Standard Investments (Malaysia) Sdn Bhd, Company Number: D. The People s Republic of China ( PRC ): Aberdeen Standard Asset Management (Shanghai) Co., Ltd in the PRC only. Taiwan: Aberdeen Standard Investments Taiwan Limited, which is operated independently, 8F, No.101, Songren Rd., Taipei City, Taiwan, Tel: Singapore: Aberdeen Standard Investments (Asia) Limited, Registration Number E. Americas Brazil: Aberdeen Standard Investments (ASI) is the marketing name in Brazil for Aberdeen do Brasil Gestão de Recursos Ltda. Aberdeen do Brasil Gestão de Recursos Ltda. is an entity duly registered with the Comissão de Valores Mobiliários (CVM) as an investment manager. Canada: Standard Life Investments (USA) Ltd, Aberdeen Asset Management Inc., Aberdeen Fund Distributors, LLC, and Aberdeen Standard Investments (Canada) Limited. Standard Life Investments (USA) Ltd. is registered as an Exempt Market Dealer and Portfolio Manager in each of the Canadian provinces and territories and an Investment Fund Manager in the Canadian provinces of Ontario, Quebec and Newfoundland and Labrador. Aberdeen Asset Management Inc. is registered as a Portfolio Manager in the Canadian provinces of Ontario, New Brunswick, and Nova Scotia and as an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador. Aberdeen Standard Investments (Canada) Limited is registered as a Portfolio Manager in the province of Ontario. Aberdeen Fund Distributors, LLC, operates as an Exempt Market Dealer in all provinces and territories of Canada. 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15 Who we are Aberdeen Standard Investments is the largest active manager in the UK and one of the largest in Europe*. It has a significant global presence and the scale and expertise to help clients meet their investment goals. The investment needs of our clients are at the heart of what we do. We offer a comprehensive range of investment solutions, as well as the very highest level of service and support. *as at 30 Jun 2018 Our thinking Visit our website to access our range of thought leadership papers, insights on current events effecting markets, our market and economic forecasts, plus tools to help you make better investment decisions. Contact us For further information, please speak to your usual contact or visit our website:

16 Visit us online aberdeenstandard.com ASI_1235_Investment_Themes_DEC_TCM GB