Pyrford Global Total Return (Sterling) Fund Class C Stg Accumulating IE00BZ0CQJ19

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1 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 1 of 9 27 Apr 218 :, UTC- 5 Morningstar Category GBP Moderately Cautious Category Index Total Assets 2, Mil GBP Current Yield % 2.85 Inception Date 4/11/15 Domicile/ Currency IRL/GBP Morningstar Rating Equity Style Map Giant Large Mid Small K 1K Performance 31/3/18 Growth of 1, Annualized Value GBP Ret % Fund 1, Category 11, Index Full Manager Change Partial Manager Change Deep Value People Value Blend Growth High Growth Micro Total Named Managers Morningstar Pillars Process p. 2-3 Performance p. 4 People p. 5 Parent p. 6 Price p. 7 Neutral * ) * 5K Morningstar Rating QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQQQQQQQQQQQQQQQQQ QQQQQQQQ QQ Quartile Rank in Category Percentile Rank in Category % Total Return (GBP) /- Category +/- Index Process Fixed Income Style Box Asset Stock Bond Cash Other Equity Supersectors % x Defensive % w Sensitive % m Cyclical.61 % Price TER/OGC Analyst View Randal Goldsmith, Senior Analyst Strong choice for investors seeking a multi-asset fund that emphasises stable real returns. 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 Œ 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 27 Apr, 218 Pyrford Global Total Return is managed for real return stability. It brings a highly experienced team and a sensible risk-aware approach to multi-asset investing that is transparent and understandable. The team at Pyrford is impressively stable. Tony Cousins has been with Pyrford for 29 years and leads an investment team of 14 whose three regional heads average more than 15 years tenure at the firm. This experience is used to implement a conservative fundamental value-based strategy that emphasises downside protection. Long-term value-based metrics are employed on four return drivers: asset allocation, fixed-interest duration, currency positioning, and equity country and stock selection. The firm focuses on top-quality assets and in doing so will only invest in sovereign bonds that are rated AA or higher and global equities in countries that meet its stability criteria. The fund may be vanilla by some standards, but the strategy has a long history of delivering on its stable real return objective. Pyrford s valuation discipline means that the portfolio is defensively positioned as at the end of March 218, with about two thirds of the portfolio in government bonds. High-quality government bonds have, for the most part, been an effective hedge against equity market risk over the life of the strategy and have also provided a decent return in their own right. However, with initial yields at historically low levels and much lower than at the start of the strategy, that s a challenge for Pyrford s approach. The team is mindful of this and is currently positioned in very short maturity (near cash) government bonds that are less sensitive to interest-rate changes (portfolio duration was around two years in early 218). So the strategy is positioned to continue meeting the stability part of the objective, even if that means lower average real returns in the near term. The strategy will come in and out of favour, but the team s long-term thinking has produced good capital-allocation decisions over multiple decades and has met its objective of providing stable real returns. With a sound process and long-tenured team, BMO Pyrford ticks many of the boxes we look for in a global multi-asset manager, and the fund continues to earn a Morningstar Analyst Rating of Silver. 218 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

2 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 2 of 9 27 Apr 218 :, UTC- 5 Process: Approach GBP Moderately Cautious Fundamental valuation and quality drive Pyrford s approach. Process Pillar Equity Style 31/3/218 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 Market Cap Fund 3-Yr Avg Category Giant/Large Mid Small/Micro Avg Market Cap Bil GBP Value Measures Fund 3-Yr Avg Category Price/Prospect. Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield Growth Measures Fund 3-Yr Avg Category Long-Term Earnings % Historical Earnings % Sales % Cash Flow % Book-Value % Apr, 218 The strategy aims to provide investors with returns above inflation by a significant margin, with low volatility, and without losing money in any 12-month period. Four main levers are employed to achieving these objectives: asset allocation between equities, bonds, and cash; bond duration positioning; stock selection; and currency positioning. Five-year return forecasts are generated for bonds and equities by individual country. Equity market forecasts are based on initial dividend yield and five-year earnings per share growth. Bonds forecasts are based on initial yield and price change implied by the team s yieldcurve analysis. Pyrford only invests in sovereign bonds rated AA or higher. Currencies are defensively hedged when they are 25% overvalued, and the hedge is removed when this falls to 5%. The team may also sell foreign assets when sterling is Fixed Income Style Fixed Income Style Box Ltd Mod Ext Interest Rate Sensitivity Credit Quality High Med Low Selected Fixed Income Style Box Factors History Style Bonds % Bonds % is based on portfolio data. Fund 3-Yr Avg Category Average Credit Quality BB Avg Effective Duration 2.8 Equity Region Exposure 31/3/218 Market Type Equity % Fund 3-Yr Avg Category Developed Emerging Top 5 Countries Equity % Fund 3-Yr Avg Category United Kingdom Singapore Switzerland Australia Sweden Income 31/3/18 Fund 3-Yr Avg Category Current Yield Month Yield. Average Coupon Average Coupon surveyed 31/3/18 undervalued, and vice versa. Valuation is assessed using purchasing power parity. Stock selection is driven by quality and absolute valuation over at least five years. This means that the portfolio may have nothing in any given sector or country if the team cannot find anything of value. Dividend yield is the main measure of value, and the quality leads the team to look for businesses that have a high return on equity without being overleveraged. Asset 31/3/18 Current 3-Year Average Net Assets % Fund 3-Yr Avg Category Equity Fixed Income Cash Other Sectors 31/3/218 Top 5 Equity Sectors Fund 3-Yr Avg Category sconsumer Defensive icommunication Serv pindustrials futilities yfinancial Services Fixed Income Super Sectors Assets % Fund Category Govt. Corp. Secur. Muni. Cash & Equiv. Other Top 5 Fixed Income Sectors Fund 3-Yr Avg Category Treasury Cash Government Currency Forward/Future.2 2. Cash Other Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

3 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 3 of 9 27 Apr 218 :, UTC- 5 Process: Portfolio GBP Moderately Cautious Conservatively positioned in a benchmarkunaware portfolio. Process Pillar 27 Apr, 218 Pyrford takes a conservative stance to portfolio construction to achieve the fund s goals. First, this multi-asset fund has a higherthan-average allocation to fixed interest compared with a typical balanced fund. It normally ranges between 5% and 65% across both local and global sovereign bonds. As at the end of Credit Quality Surveyed Bonds % Fund Category March 218, bonds were 66% of the portfolio and held across the UK (5% of the portfolio) and overseas (16%)--all of which are AA rated or higher. Consistent with its prevailing view that global sovereign bonds are expensive, the firm s bond position has around two years duration, meaning it has modest exposure to the threat of rising yields. With the high weighting in UK government bonds, currency exposure was naturally low and was further reduced by hedging of the USD exposure. The remaining portfolio is invested in Bond Maturity 31/3/18 Assets % Fund Category around 5 global stocks, as well as holding a small cash balance (4.5% at the end of March 218). Despite being benchmark-unaware, diversification is strong, with holdings spread across many developed markets and a few emerging markets that the firm had determined were investable largely based on local accounting standards. Typically, the equity portfolio has a slight value tilt, and Pyrford favours large- and giant-cap names across all sectors. Coupon Range 31/3/18 Assets % Fund Category AAA AA A BBB BB B <B NR % to PIK Portfolio Holdings 31/3/18 Previous Portfolio Date Equity Holdings Bond Holdings Other Holdings Assets in Top 1 Holdings Turnover Ratio (Reported) 28/2/ Top 1 Equity Holdings Country Assets % Assets % 31/3/18 28/2/18 T National Grid PLC GBR /17 <1 No f Utilities GlaxoSmithKline PLC GBR /15 <1 Wide d Healthcare T British American Tobacco PLC GBR /15 <1 Wide s Consumer Defensive T Legal & General Group PLC GBR /15 <1 y Financial Services 1.17 T Vodafone Group PLC GBR /15 <1 Narrow i Communication Serv T SSE PLC GBR /15 <1 Narrow f Utilities -7.3 T United Utilities Group PLC GBR /15 1 No f Utilities ComfortDelGro Corp Ltd SGP /15 3 p Industrials T Imperial Brands PLC GBR /17 <1 Wide s Consumer Defensive Telenor ASA NOR /15 <1 Narrow i Communication Serv Change since previous portfolio: T Increase Y Decrease R New First Bought Days Trading Economic Moat Sector 1-Yr Total Top 5 Fixed Income Holdings Country Currency Assets % Super Sector Primary Sector Secondary Sector United Kingdom of Great Britain and Northern Ireland 1.75% SNR PIDI BDS 22/ United Kingdom of Great Britain and Northern Ireland 3.75% SNR PIDI BDS 7/ United Kingdom of Great Britain and Northern Ireland 2% SNR PIDI BDS 22/7/ United States Treasury Notes 1.5% PIDI NTS 15/8/22 USD (AQ-22) United Kingdom of Great Britain and Northern Ireland 3.75% SNR PIDI BDS 7/ GBR GBP 7.99 Government Government Treasury GBR GBP 7.5 Government Government Treasury GBR GBP 6.69 Government Government Treasury USA USD 6.68 Government Government Treasury GBR GBP 6.54 Government Government Treasury 218 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

4 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 4 of 9 27 Apr 218 :, UTC- 5 Performance GBP Moderately Cautious Risk awareness holds back relative returns in elevated market conditions. Performance Pillar Neutral 27 Apr, 218 The strategy has been able to protect and generally grow investors' capital during weak equity markets. From the beginning of the millennium equity markets had three successive years of negative returns, while Pyrford was able to navigate this period with healthy positive returns in 2 and 21. In 22, when the FTSE 1 Index lost over 2%, this strategy was only down 2.1% (gross)--its only negative calendaryear return in the past 22. The year 28 is a good example of Pyrford finding opportunities to make money despite the difficult background for equities. A significant shift into long-dated sovereign bonds, taking duration of the fixed-income allocation up to 12 years, before the global financial crisis hit allowed the firm to take advantage of falling interest rates, helping the strategy to return near 12% while equity markets capitulated. This may be more difficult to repeat in a future market correction because initial yields on long-dated bonds are much lower now than in early 28, and it is dependent on correlation with equities remaining low. The fund returned 9.8% in 216, showing moderate upside capture. However, that was a decent outcome relative to most target-return multi-asset funds. The following year was more difficult because of the poor returns on government bonds. Morningstar Rating and Risk 31/3/18 Period Morningstar Ret vs Cat Morningstar Risk vs Cat 3 Years 5 Years 1 Years Overall Rating Risk Analysis 31/3/18 3-Year Return and Risk Analysis Total Return % Morningstar Rating Fund Category Index * ) * History 31/3/18 12-Month Rolling Return % Fund Full Manager Change Partial Manager Change Quartile Rank in Cat Percentile Rank in Cat % Total Return GBP /- Category +/- Index Income Return Standard Deviation 3-Year Risk Measures Fund Category Index Standard Deviation 4.43 Sharpe Ratio.54 R-Squared Beta Alpha Maximum Drawdown Fund Category Index Max Drawdown (%) Peak Date 6/17 1/18 Valley Date 3/18 3/18 Max Drawdown (Months) 1 3 Upside/Downside Fund Category Index Upside Capture Ratio Downside Capture Ratio Returns 31/3/18 Trailing Returns Total Investor Rank in Cat Cat Index 1 Year Years Years Years 4.51 Tenure Inception 11/ Rolling-Returns Summary % 36-Month Rolling Periods Observations, 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 /18 Income Income % Rank in Cat Capital Capital % Rank in Cat / Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

5 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 5 of 9 27 Apr 218 :, UTC- 5 People GBP Moderately Cautious Investment team of 14 led by the highly experienced Tony Cousins. People Pillar 27 Apr, 218 In 1991, Bruce Campbell headed the buyout of Pyrford from Elders Investment Management and led the investment team as the chief investment officer for nearly 2 years. In 211, he was succeeded by the highly experienced Tony Cousins and now plays a strategic investment advisor role, overseeing the investment Management Team team based in London. Cousins is a longtime employee, having joined the firm in 1989 as an analyst, and is chairman of the Global Stock Selection Committee and Investment Strategy Committee in addition to his CEO and CIO roles. Pyrford operates with a reasonably small investment team, which has translated to low staff turnover. There have only been two departures in the past 1 years. The current investment team numbers 14 and is organised along geographic lines. Paul Simons heads the Asia-Pac team, supported by an experienced team of four analysts. Daniel McDonagh leads the European team, and Suhail Arain manages the American equity analysts. Each team head and analyst is assigned countries to cover where they can make investment recommendations and other countries where they have discretionary authority--and can make investment decisions subject to CIO approval. Staff investment in the funds has only just begun because the fund was open only to institutional investors until recently. Experience and Asset Load Number of Managers Longest Tenure Years Manager Retention Rate 5-Year % Average Manager Tenure Years Advisor Subadvisor Pyrford International Ltd 218 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

6 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 6 of 9 27 Apr 218 :, UTC- 5 Parent GBP Moderately Cautious A stable boutique with a long-held investment approach. Parent Pillar 27 Sep, 217 Pyrford is a boutique investment manager based in London that has stuck to its knitting. It has run a long-standing global absolute return, or GAR, strategy since the late 198s with the same philosophy that exists in the fund today. Over time, it has added only four regional equity strategies carved out of the GAR fund, Assets By Region, By Domicile Bil GBP based on the same straightforward, fundamental value process applied since the beginning. In 27, Bank of Montreal, or BMO, purchased 1% of the equity in Pyrford for its differentiating strategy to include in BMO's vast stable of investment funds and exchange-traded funds. Access to BMO's resources has helped Pyrford grow assets to above GBP 7.9 billion as at July 217. To the benefit of unitholders, Pyrford retains the same boutique culture. It has maintained control over the investment decisions and staff management and has kept the number of Fund Family Details Europe (*) Breakdown strategies constant. Pleasingly, BMO Pyrford drives alignment with unitholders by rewarding staff with a threeyear delayed performance bonus in the form of phantom Pyrford stock. Commitment is further encouraged as any accrued bonus is lost should an employee leave the firm to join another. This has helped keep staff turnover very low--only two departures in the past 1 years. BMO Pyrford began running Australian dollar institutional mandates in 212 and established a wholesale investment trust in June 214. Morningstar Rating Breakdown Americas 22.3 Europe & Africa 13.7 Asia & Australia. Rating Assets % Œ 2.5 ˇ Ø Not Rated 79.5 Rating Assets % QQQQQ 4.9 QQQQ 22.5 QQQ 14.2 QQ 19.5 Q 3.5 Not Rated 35.4 Asset Class Breakdown Europe (ex Money Mkt) Assets Bil GBP Asset Class Assets Bil GBP Assets % Equity Fixed Income Convertibles.5 4. Property Alternative Commodities Fund Family Details Europe Top Performing Funds Category Name Fund Size Mil GBP Return % 3-Year Rank in Cat 3-Year F&C Traditional Funds - Real Estate Securities Property - Indirect Europe Fund B EUR Accumulating F&C Institutional Active Index Linked Fund 3 GBP Government Bond GBP Acc F&C Institutional Long Dated Corporate Bond Fund 3 GBP Acc GBP Corporate Bond Largest Funds Category Name Fund Size Mil GBP Return % 3-Year Rank in Cat 3-Year Pyrford Global Total Return (Sterling) Fund GBP Moderately Cautious 2, Class A Stg Accumulating F&C European Growth & Income 3 Acc Europe ex-uk Large-Cap Equity BMO LGM Frontier Market Fund B USD Acc Global Frontier Markets Equity Recent Fund Launches Category Name Fund Size Mil GBP Return % Inception Inception Date BMO LGM Greater India Fund F USD Acc India Equity.8. 29/3/18 F&C Portfolios Fund - BMO Responsible Euro EUR Corporate Bond /2/18 Corporate Bond F EUR Inc F&C Portfolios Fund - BMO Plus II I EUR Inc /1/18 (*) All data is based on Branding name and refers to funds domiciled in Europe. 218 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

7 Morningstar Global Fund Report Print Date: 1 May, 218 Accumulating IEBZCQJ19 Page 7 of 9 27 Apr 218 :, UTC- 5 Price GBP Moderately Cautious Very competitively priced clean share class TER/OGC.. Expense History TER/OGC Price Pillar 27 Apr, 218 The ongoing charge on the fund s clean share class is well below the GBP Moderately Cautious Morningstar Category median..61. TER/OGC Net Assets Bil GBP Net Flows Mil GBP... Expense Breakdown Ongoing charge Ongoing charge 2/2/18.61 Fee Level Fee Level Peer Group Low Selected Components Max Management Fee.55 Performance Fee Fee Level Breakpoints High >. Above Average.-. Average.-. Below Average.-. Low <. Fund.61 Peer Median 1.37 Share Class Information Share Class Identifier Morningstar Category TER/OGC Max Mgmt Fee Performance Fee Maximum Inital Charge Pyrford Glbl Tot Ret(Sterling)C IEBZCQJ19 GBP Moderately Cautious GBP Acc Pyrford Glbl Tot Ret(Sterling)A GBP IEB1XBN52 GBP Moderately Cautious Acc Pyrford Glbl Tot Ret(Sterling)DStg IEBZCQM48 GBP Moderately Cautious.33 Dis Pyrford Glbl Tot Ret(Sterling)C GBP IEBZCQK24 GBP Moderately Cautious Inc Pyrford Glbl Tot Ret(Sterling)B GBP IEBZCQG87 GBP Moderately Cautious Acc Pyrford Glbl Tot Ret(Sterling)B GBP Inc IEBZCQH94 GBP Moderately Cautious Minimum Initial Inv Assets Bil GBP 218 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and

8 Morningstar Global Fund Report Print Date: 1 May, 218 Morningstar Global Fund Report Disclosure The Morningstar Global Fund Report ( Report ) is for informational purposes, intended for financial professionals and/or qualified investors ( Users ) and should not be the sole piece of information used by such Users or their clients in making an investment decision. The analysis within this report is prepared by the person(s) noted in their capacity as an analyst for Morningstar. The opinions expressed within the Report are given in good faith, are as of the date of the Report and are subject to change without notice. Neither the analyst nor Morningstar commits themselves in advance to whether and in which intervals updates to the Report are expected to be made. The written analysis and within this Report are statements of opinions; they are not statements of fact. Morningstar believes its analysts make a reasonable effort to carefully research information contained in their analysis. 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9 Morningstar Global Fund Report Print Date: 1 May, 218 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 INA1357) 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. 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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 1% of funds receive five-stars and the bottom 1% 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 1 years. Wide-moat companies are those in which we have very high confidence that excess returns will remain for 1 years, with excess returns more likely than not to remain for at least 2 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: 24892). 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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