Man GLG Japan CoreAlpha Equity Class I EUR IE00B45R5B91

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1 Page 1 of 9 Morningstar Category Japan Large-Cap Equity Category Topix TR JPY Total Assets 4, Current Yield % Inception Date 09/05/11 Domicile/ Currency IRL/EUR Morningstar Rating QQQQ Equity Style Map Giant Large Mid Small K 20K 15K 10K Performance 31/12/17 Growth of 10,000 Annualized Value EUR Ret % Fund 21, Category 20, , Full Manager Change Partial Manager Change Deep Value People Value Blend Growth High Growth Micro Stephen J. Harker 08/10 Neil Edwards 01/10 Jeffrey M. Atherton 03/11 Total Named Managers 4 Morningstar Pillars Process p. 2-3 Performance p. 4 People p. 5 Parent p. 6 Price p. 7 Neutral Negative _ ) & ( & & ) 5K Morningstar Rating QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQ QQ Quartile Rank in Category Percentile Rank in Category % Total Return EUR /- Category / Process Equity Style Box Asset Allocation Stock Bond Cash Other Equity Supersectors m Cyclical w Sensitive x Defensive Price TER/OGC Analyst View Peter Brunt, CFA, Senior Analyst One of our highest conviction large-cap Japanese equity funds. The conduct of Morningstar's analysts is governed by Morningstar's Code of Ethics, Securities Trading and Disclosure Policy, and Morningstar Manager Research Integrity Policy. For informaton regarding conflicts of interest, please click Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Á The for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the for a fund. s are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Neutral represents funds in which our analysts don t have a strong positive or negative conviction over the long term (defined as a full market cycle or at least five years) and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term (defined as a full market cycle or at least five years). Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit 28 Dec, 2017 With a stable, experienced team and a highly consistent process, this fund remains one of our highest-conviction picks in the Japan Large-Cap Equity Morningstar Category. The fund is managed by an experienced team. Stephen Harker leads and is backed by two senior portfolio managers in Neil Edwards, with whom he has managed the U.K.-domiciled version of this fund since January 2006; and Jeffrey Atherton, who joined in All three have over 20 years of investment experience, the vast majority of it in Japanese equities. In June 2014, Adrian Edwards was hired to support the team. He is less experienced but had previously worked with Atherton. He is now fully involved with all elements of the process, which is well entrenched and based on a contrarian investment philosophy. The managers use a rigorous, repeatable process that draws on their extensive knowledge of the Japanese market. Focusing on the largest 300 listed companies in Japan, they look for those that appear to be undervalued when compared with rivals. They favour quality companies with strong management that are dominant in their sectors, but valuation tends to be the overriding factor. With the clear focus on value, long-term investment horizon and benchmark-agnostic approach, the portfolio can often exhibit sizable deviations from its peers and the Topix index. As a result, investors should be prepared for performance that can vary intermittently. Significant active stock bets and the large-cap value bias have driven the strategy s performance since There have been periods of weakness, such as in 2011, although returns have been very strong over the long term. Such performance success has seen the strategy gather considerable assets over the years, but we do not have concerns over capacity. We also note the group's willingness to close the funds in order to protect the interests of existing investors. The fund combines experienced management with a well-established process that we believe will reward long-term investors, despite a slightly above average price tag. We therefore maintain our of Gold.

2 Page 2 of 9 Process: Approach Morningstar Category Category Proxy Japan Large-Cap Equity Topix TR JPY Daiwa ETF TOPIX A long-term, value-driven process that has been consistently applied on this strategy for over a decade. Process Pillar Equity Style 30/11/17 Holdings-Based Style Map Deep Value Value Blend Growth High Growth Equity Style Box Factors Giant Large Mid Small Micro Fund Centroid: Weighted average of equity holdings Zone: 75% of fund equity holdings Category Average Proxy Market Cap Fund 3-Yr Avg Category Proxy Giant/Large Mid Small/Micro Avg Market Cap Bil EUR 2, , ,357.61,689.0 Value Measures Fund 3-Yr Avg Category Proxy Price/Prospect. Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield Growth Measures Fund 3-Yr Avg Category Proxy Long-Term Earnings % Historical Earnings % Sales % Cash Flow % Book-Value % Dec, 2017 The managers aim to outperform the Topix TR benchmark over the long term by following a contrarian, value-driven approach that focuses primarily on Japanese large-caps. They follow a relative value approach and look primarily at the largest 300 stocks in the Topix. The first step in identifying pricing anomalies is the application of various quant screens. These look at factors such as price/book and dividend yield over multicycle periods relative to the market, competitors, and the industry average. The managers then carry out a qualitative assessment on stocks that appear attractively valued to try to understand the reasons for this discount. Ideally they prefer quality companies that are dominant in their sectors and that feature strong management, but ultimately the level of pricing anomaly will be the overriding factor in investment. Asset Allocation 30/11/17 Current Allocation 3-Year Average Net Assets % Fund 3-Yr Avg Category Proxy Equity Fixed Income Cash Other Regional Exposure 30/11/17 Market Type Equity % Fund 3-Yr Avg Category Proxy Developed Emerging Top 5 Countries Equity % Fund 3-Yr Avg Category Proxy Japan Key Ratios 30/11/17 Fund 3-Yr Avg Category Proxy Net Margin % ROA % Debt/Total Capital % ROE % The trio s long experience is of notable benefit given the low turnover among corporate leaders in Japan--it has made them aware of individuals strengths, weaknesses, and credibility. The managers aim to remain fully invested, and this aids their sell discipline; they continually assess the expected value in their current holdings relative to new ideas and cut their winners to fund new purchases. The managers don t hedge their currency exposure but do monitor the fund s exposure to companies likely to be affected by changes in the yen s value, namely exporters. Sectors 30/11/17 Sector Delta Defensive Sensitive Cyclical Fund Larger sector concentrations versus the index move the investment to the corner of the triangle corresponding to that equity Super Sector. Equity Sectors Fund 3-Yr Avg Category Proxy xdefensive sconsumer Defensive dhealthcare futilities wsensitive icommunication Serv oenergy pindustrials atechnology mcyclical rbasic Materials tconsumer Cyclical yfinancial Services ureal Estate Economic Moat 30/11/17 Fund 3-Yr Avg Category Proxy Wide Moat Narrow Moat No Moat Coverage Ratio

3 Page 3 of 9 Process: Portfolio Morningstar Category Category Proxy Japan Large-Cap Equity Topix TR JPY Daiwa ETF TOPIX Significant active stock and sector positions. Process Pillar 28 Dec, 2017 The managers price-conscious approach is reflected in the fund s portfolio, which has historically placed the fund in the value column of the Morningstar Style Box. However, while valuation is key, they are not dogmatic in their approach. For example, they own Honda to have some exposure to auto companies, although Similarity to Proxy 30/11/17 they do not typically fit well with the fund's meanreversion style or offer overly attractive relative valuations. Despite market headwinds, the managers have stayed true to their style and the fund has remained invested mostly in issues at the top end of the cap scale. The portfolio was overweight in giant/large-caps as at the end of November 2017, notably so among large-caps (46% compared with the category average's 23% and the Topix's 31%). Investors should be mindful of the managers' willingness to make significant stock and sector bets that derive from their bottom-up picks. As a result, the portfolio can look quite different from its peers and is not suitable for those seeking tight constraints versus a benchmark. The fund has a long-standing overweighting to financials, primarily through a 22% allocation to banks (an overweighting since 2009). The managers have generally been shifting to a more cyclically biased portfolio in the last few years, with utilities the only defensive exposure in the portfolio at the end of November Proxy Overlap Proxy Fund Circle size represents number of holdings. Number of Equity Holdings Fund 42 Proxy 1,816 Fund Overlap With Proxy Holdings Overlap 0 Asset Overlap 0.0% Largest Common Holdings Fund % Proxy % Largest Distinct Holdings Fund % JPMorgan Chase & Co 4.99 Bank of America Corporation 4.98 Berkshire Hathaway Inc B 3.84 Citigroup Inc 3.84 Johnson & Johnson 3.15 Portfolio Holdings 30/11/17 Previous Portfolio Date Equity Holdings Bond Holdings Other Holdings Assets in Top 10 Holdings Turnover Ratio (Reported) 31/10/ % -1% Top 10 Equity Holdings Country Assets % Assets % Proxy % 30/11/17 31/10/17 30/11/17 T Toyota Motor Corp JPN /16 <1 No t Consumer Cyclical Y Honda Motor Co Ltd JPN /14 2 No t Consumer Cyclical 5.41 T Mitsubishi UFJ Financial Group Inc JPN /10 <1 No y Financial Services 6.63 T Japan Post Holdings Co Ltd JPN /16 3 y Financial Services T Sumitomo Mitsui Financial Group Inc JPN /10 <1 No y Financial Services 2.43 T Nippon Steel & Sumitomo Metal Corp JPN /12 3 No r Basic Materials 3.47 T Sumitomo Mitsui Trust Holdings Inc JPN /11 4 No y Financial Services 0.08 Y JFE Holdings Inc JPN /14 3 r Basic Materials T Mitsubishi Estate Co Ltd JPN /15 2 No u Real Estate Y Inpex Corp JPN /11 3 o Energy Change since previous portfolio: T Increase Y Decrease R New First Bought Days Trading Economic Moat Sector 1-Yr Total New Holdings Largest Purchases % Assets Sector Topix (Tokyo Price ) 4 Jan 1968] 1.43 Eliminated Holdings Largest Sales % Assets Sector TOPIX Future Dec Largest Position Changes Current % Prior % T Sumitomo Mitsui Financial Group Inc T Nippon Steel & Sumitomo Metal Corp Y JFE Holdings Inc R Topix (Tokyo Price ) Jan 1968] Y TOPIX Future Dec

4 Page 4 of 9 Morningstar Category Category Performance Japan Large-Cap Equity Topix TR JPY The managers have built a strong long-term record, but investors should be aware of higher levels of volatility. Performance Pillar 28 Dec, 2017 The managers have developed a strong and long track record on this strategy. The U.K.-domiciled version of this strategy (this Irish version s record only goes back to early 2010) has comfortably outperformed the Topix benchmark and category average from January 2006 (when the managers took over the fund) to end-november As is to be expected given the bottomup process, it is stock selection that has led to the fund s outperformance over the long term. However, strong relative performance has been achieved with some variability when compared with peers. In each calendar year between 2006 and 2010, the U.K.-domiciled fund outperformed the category average significantly (by double digits in 2008 and 2009) to finish in the top quartile in each year. In contrast, the fund underperformed in both 2011 and The U.K. and Irish versions of the strategy show similar performance characteristics. The strategy exhibits a higher volatility relative to the benchmark over three and five years, although this is to be expected given the value bias. Riskadjusted returns are strong over the long term. For much of the period since 2011, large-cap value stocks have significantly underperformed in Japan so the management style has faced a headwind. The fund strongly outperformed in 2016 as the market rotated from growth to value. This trend was reversed in 2017 however, seeing the fund underperform to the end of November. Morningstar Rating and Risk 31/12/17 Period Morningstar Ret vs Cat Morningstar Risk vs Cat Morningstar Rating 3 Years Above Avg High QQQ 5 Years High High QQQQ 10 Years Overall Rating Risk Analysis 31/12/17 3-Year Return and Risk Analysis Total Return % QQQQ Fund Category _ ) & ( & & ) History 31/12/17 12-Month Rolling Return % Fund Full Manager Change Partial Manager Change Quartile Rank in Cat Percentile Rank in Cat % Total Return EUR /- Category / Income Return Standard Deviation 3-Year Risk Measures Fund Category Standard Deviation Sharpe Ratio R-Squared Beta Alpha Maximum Drawdown Fund Category Max Drawdown (%) Peak Date 06/15 06/15 06/15 Valley Date 06/16 09/15 09/15 Max Drawdown (Months) Upside/Downside Fund Category Upside Capture Ratio Downside Capture Ratio Returns 31/12/17 Trailing Returns Total Investor Rank in Cat Cat 1 Year Years Years Years Tenure 01/ Inception 05/ Rolling-Returns Summary 61% Month Rolling Periods 44 Observations, 3 Years The shading and percentages correspond to how often the fund returns landed in each category quartile. Income and Capital Returns Return % Income Return Capital Return Year /17 Income Income % Rank in Cat Capital Capital % Rank in Cat /

5 Page 5 of 9 Morningstar Category Category People Japan Large-Cap Equity Topix TR JPY Stephen Harker is a seasoned Japanese equity manager, backed by two experienced comanagers. People Pillar 28 Dec, 2017 The management team backing this fund is one of the most experienced in the sector. Stephen Harker and Neil Edwards have managed the U.K.-domiciled version of this fund since January 2006, and their venture was strengthened by the addition of Jeffrey Atherton in early Management Team The trio boasts an average investment experience of more than 20 years. Harker s association with Japanese equities stretches back to 1983, when he ran the Prudential Japanese Trust for 10 years. He then managed private client money for 10 years at TCW London International (acquired by SGAM in 2001). His return to the retail world came in 2006 when he founded the Japan CoreAlpha franchise at SGAM, which was acquired by GLG in Edwards joined Harker in February 2005, and his 20 years of experience is split almost equally between running U.K. and Japanese equity money. Atherton, who brings another 20 years of experience in Japanese equities, was part of Harker s team at TCW. The trio leverage a long-established network of local contacts, built over 25 years, and the expertise of external consultants Robert Brooke and Alan Bell, who have strong analytical backgrounds in the region. The hire of the morejunior Adrian Edwards in June 2014 added support to the team and helps alleviate key-man risk. The team also hired two graduates in 2017, who have so far mainly undertaken project work. Experience and Asset Load Total AUM Bil EUR in Funds Managed 20+ Number of Managers Longest Tenure Years Manager Retention Rate 5-Year % Average Manager Tenure 6.46 Years Advisor Subadvisor GLG Partners LP Tenure Years Neil Edwards 01/10 to Present Years on Managed Funds Years on Fund 12 7 Fund AUM Current Funds Managed 6, Largest Funds Managed Tenure Dates Role Fund Size Bil EUR Investment Tenure Man GLG Japan CoreAlpha Equity 01/10 to Present 1 of Man GLG Japan CoreAlpha Fund 02/05 to Present 1 of Utmost Man GLG Japan CoreAlpha 09/09 to Present 1 of AEGON Intl Man GLG Jpn Core Alp 09/09 to Present 1 of Aviva GLG Japan CoreAlpha Int 08/09 to Present 1 of Stephen J. Harker 08/10 to Present Years on Managed Funds Years on Fund 20 7 Fund AUM Current Funds Managed 6, Largest Funds Managed Tenure Dates Role Fund Size Bil EUR Investment Tenure Man GLG Japan CoreAlpha Equity 08/10 to Present 1 of Man GLG Japan CoreAlpha Fund 08/02 to Present 1 of Utmost Man GLG Japan CoreAlpha 09/09 to Present 1 of AEGON Intl Man GLG Jpn Core Alp 09/09 to Present 1 of Aviva GLG Japan CoreAlpha Int 08/09 to Present 1 of Jeffrey M. Atherton 03/11 to Present Years on Managed Funds Years on Fund 17 6 Fund AUM Current Funds Managed 6, Largest Funds Managed Tenure Dates Role Fund Size Bil EUR Investment Tenure Man GLG Japan CoreAlpha Equity 03/11 to Present 1 of Man GLG Japan CoreAlpha Fund 03/11 to Present 1 of

6 Page 6 of 9 Morningstar Category Category Parent Japan Large-Cap Equity Topix TR JPY Man GLG benefits from a depth and breadth of resources, but its investment culture is still evolving. Parent Pillar Neutral Assets By Region, By Domicile Bil EUR 15 Jun, 2017 Man GLG has been through a series of corporate changes, resulting in the asset-management group we see today. It started life as GLG Partners, which was known primarily for its hedge fund strategies, until the acquisition of SGAM in April This substantially bolstered its long-only asset base. It was subsequently acquired by Man Group in GLG Partners was fined for insider trading and faced regulatory proceedings (all settled without charge) during the 2000s. Since becoming Man GLG, steps have been taken to improve its investment culture, including the hiring of Teun Johnston in Johnston joined as head of product strategy and became CEO in He has focused on ensuring that products best reflect the teams' existing areas of expertise and that there is an increased level of collaboration across teams. The portfolio managers' remuneration is Fund Family Details Europe (*) Breakdown based mainly on the commercial success of their strategies. This can result in a focus on assetgathering over investment excellence, although part of the managers' bonuses is in the form of deferred purchases of the funds that they run, providing investor alignment. We believe client communication to be above average, helped by frequent portfolio disclosures/reports and an accessible, informative website. Overall, we welcome the evolution of the group's investment culture and note its depth and breadth of resources, but believe that there is room for improvement. Morningstar Rating Breakdown Americas 0.0 Europe & Africa 13.7 Asia & Australia 0.0 Rating Assets % ˇ Ø Not Rated 80.9 Rating Assets % QQQQQ QQQQ 3.2 QQQ 19.9 QQ 1.5 Q 0.1 Not Rated 75.3 Asset Class Breakdown Europe (ex Money Mkt) Assets Bil EUR Asset Class Assets Bil EUR Assets % Equity Fixed Income Allocation Convertibles Property Alternative Commodities Fund Family Details Europe Top Performing Funds Category Name Fund Size Return % 3-Year Rank in Cat 3-Year Man GLG Japan CoreAlpha Equity Class I JPY Japan Large-Cap Equity 4, Man Newsmith Global Equity Alpha Class IX Global Large-Cap Blend Equity JPY Man AHL TargetRisk I USD Accumulating USD Moderate Allocation Largest Funds Category Name Fund Size Return % 3-Year Rank in Cat 3-Year Man GLG Japan CoreAlpha Equity Class I JPY Japan Large-Cap Equity 4, Man GLG Global Emerging Markets Debt Total Global Emerging Markets Bond 2,594.2 Return Class I USD Acc Man GLG European Equity Alternative Class IN EUR Alt - Market Neutral - Equity Recent Fund Launches Category Name Fund Size Return % Inception Inception Date Man Alternative Style Risk Premia I H EUR Alt - Multistrategy /10/17 Man GLG European Income Opportunities Class Europe Equity Income /09/17 I C EUR Man GLG Iberian Opportunities Class IMF C EUR Spain Equity /09/17 (*) All data is based on Branding name and refers to funds domiciled in Europe.

7 Page 7 of 9 Morningstar Category Category Price Japan Large-Cap Equity Topix TR JPY We consider the fund's ongoing charge expensive relative to peers TER/OGC Expense History TER/OGC Price Pillar Negative 28 Dec, 2017 The ongoing charge of the fund's post-rdr 'I' share class is 1.10%, which places it in the second most-expensive quintile of ongoing charges for clean share classes of Japanese equity funds TER/OGC Net Assets Bil EUR Net Flows Expense Breakdown Ongoing charge Ongoing charge 05/07/ Fee Level Fee Level Peer Group Selected Components Max Management Fee 0.75 Performance Fee Fee Level Breakpoints High >0.00 Above Average Average Below Average Low <0.00 Fund 1.10 Peer Median Share Class Information Share Class Identifier Morningstar Category TER/OGC Max Mgmt Fee Performance Fee Maximum Inital Charge Man GLG Jpn CoreAlpha Eq I Japan Large-Cap Equity , EUR Man GLG Jpn CoreAlpha Eq I JPY IE00B5649G90 Japan Large-Cap Equity ,000, Man GLG Jpn CoreAlpha Eq I H GBP IE00B64XDT64 Japan Equity - Currency Hedged , Man GLG Jpn CoreAlpha Eq I GBP IE00B62QF466 Japan Large-Cap Equity , Man GLG Jpn CoreAlpha Eq I H EUR IE00B578XK25 Japan Equity - Currency Hedged , Man GLG Jpn CoreAlpha Eq IXX H GBP Dist IE00BDFF1T62 Japan Equity - Currency Hedged ,000, Minimum Initial Inv Assets Bil EUR

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9 s s are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund s ability to outperform its benchmark and peers through time, within the context of the level of risk taken. Gold Represents funds that our analyst has the highest-conviction in for that given investment mandate. By giving a fund a Gold rating, we are expressing an expectation that it will outperform its relevant performance benchmark and/or peer group within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). To earn a Gold rating, a fund must distinguish itself across the five pillars that are the basis for our analysis. Silver Represents funds our analyst has high-conviction in, but not in all of the five pillars. With those fundamental strengths, we expect these funds will outperform their relevant performance benchmark and/or peer group within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Bronze Represents funds that have advantages that clearly outweigh any disadvantages across the pillars, giving analyst the conviction to award them a positive rating. We expect these funds to beat their relevant performance benchmark and/ or peer group within the context of the level of risk taken over a full market cycle (or at least five years). Neutral Represents funds in which our analysts don t have a strong positive or negative conviction. In our judgment, these funds are not likely to deliver standout returns, but they aren t likely to seriously underperform their relevant performance benchmark and/or peer group either. Limited. Morningstar Investment Adviser India Private Limited is registered with the Securities and Exchange Board of India (Registration number INA ) and provides investment advice and research. Morningstar Investment Adviser India Private Limited has not been the subject of any disciplinary action by SEBI or any other legal/regulatory body. Morningstar Investment Adviser India Private Limited is a wholly owned subsidiary of Morningstar Investment Management LLC. In India, Morningstar Investment Adviser India Private Limited has one associate, Morningstar India Private Limited, which provides data related services, financial data analysis and software development. The Research Analyst has not served as an officer, director or employee of the fund company within the last 12 months, nor has it or its associates engaged in market making activity for the fund company. Page 9 of 9 *The Conflicts of Interest disclosure above also applies to relatives and associates of Manager Research Analysts in India #The Conflicts of Interest disclosure above also applies to associates of Manager Research Analysts in IndiaThe terms and conditions on which Morningstar Investment Adviser India Private Limited offers Investment Research to clients, varies from client to client, and are detailed in the respective client agreement. For recipients in Japan: The Report is distributed by Ibbotson Associates Japan, Inc., which is regulated by Financial Services Agency. Neither Ibbotson Associates Japan, Inc., nor its representatives, are acting or will be deemed to be acting as an investment advisor to any recipients of this information. For recipients in Singapore: This Report is distributed by Morningstar Investment Adviser Singapore Pte Limited, which is licensed by the Monetary Authority of Singapore to provide financial advisory services in Singapore. Investors should consult a financial adviser regarding the suitability of any investment product, taking into account their specific investment objectives, financial situation or particular needs, before making any investment decisions. Negative Represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance, such as high fees or an unstable management team. Because of these faults, we believe these funds are inferior to most competitors and will likely underperform their relevant performance benchmark and/or peer group, within the context of the level of risk taken, over a full market cycle. Morningstar may also use two other designations in place of a rating: Under Review This designation means that a change that occurred with the fund or at the fund company requires further review to determine the impact on the rating. Not Ratable This designation is used only where we are providing a report on a new strategy or on a strategy where there are no relevant comparators, but where investors require information as to suitability. For more information about our Analyst Rating methodology please go to Morningstar Star Rating The Morningstar Star Rating is a proprietary data point that is quantitatively driven. Funds are rated from one to five stars based on how well the fund performed (after adjusting for risk and accounting for sales charges) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five-stars and the bottom 10% receives one-star. Funds are rated for up to three time periods three-, five-, and ten-years and these ratings are combined to produce an overall star rating, which is noted within the Report. Funds with less than three years of history are not rated. Morningstar Star Ratings are based entirely on a mathematical evaluation of past performance. Morningstar Star Ratings are in no way to be considered a buy or sell signal nor should be viewed as a statement of fact. Equity-Related Data Points The Report lists the fund s top ten holdings as of the dated noted. For each underlying holding, a series of data points is provided including, where applicable, that security s Economic Moat as of the date noted. Economic Moat The concept of an economic moat plays a vital role in our equity analyst s qualitative assessment of a firm s long-term investment potential, but also in the actual calculation of its fair value estimate. An economic moat is a structural feature that allows a firm to sustain excess profits over a long period of time. We define economic profits as returns on invested capital (or ROIC) over and above our estimate of a firm s cost of capital, or weighted average cost of capital (or WACC). Without a moat, profits are more susceptible to competition. We have identified five sources of economic moats: intangible assets, switching costs, network effect, cost advantage, and efficient scale. Companies with a narrow moat are those we believe are more likely than not to achieve normalized excess returns for at least the next 10 years. Wide-moat companies are those in which we have very high confidence that excess returns will remain for 10 years, with excess returns more likely than not to remain for at least 20 years. The longer a firm generates economic profits, the higher its intrinsic value. We believe low-quality, no-moat companies will see their normalized returns gravitate toward the firm s cost of capital more quickly than companies with moats. For more information about methodology in analysing stocks, please go to For Recipients in Australia: This Report has been issued and distributed in Australia by Morningstar Australasia Pty Ltd (ABN: ; ASFL: ). Morningstar Australasia Pty Ltd is the provider of the general advice ( the Service ) and takes responsibility for the production of this report. The Service is provided through the research of investment products. To the extent the Report contains general advice it has been prepared without reference to an investor s objectives, financial situation or needs. Investors should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement before making any decision to invest. Refer to our Financial Services Guide (FSG) for more information at For Recipients in Hong Kong: The Report is distributed by Morningstar Investment Management Asia Limited, which is regulated by the Hong Kong Securities and Futures Commission to provide services to professional investors only. 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