buy list update UK EQUITIES Invesco Perpetual Income & Growth Invesco Perpetual Income & Invesco Perpetual High Income November 2017 SELL:

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1 buy list update November 2017 The clarity investment committee regularly reviews the funds on our buy list and has recently made some changes, mainly in relation to UK and AsiaPacific funds, as summarised in this update. Source for all data: FE Analytics, November 2017 UK EQUITIES Invesco Perpetual Income & Growth The same considerations apply to this fund, which also has large weightings in many client portfolios. Invesco Perpetual Income & Growth Invesco Perpetual Income & Invesco Perpetual High Income These funds returns have been relatively weak over the last couple of years, pushing down the longer-term performance. We are also mindful that many clients have very full weightings in these funds. We have therefore taken the decision to move both funds from a HOLD to a SELL. Invesco Perpetual Income mths yrs -0.9% 0.6% 7.9% 22.11% 67.50%.0% 6.05% 17.7% 2.99% 67.0% -.11% -5.6% -8.12% -8.18% 0.28% 276/ / /27 20/ /22 mths yrs 1.81% 2.7% 12.59% 27.99% 65.26% 2.27%.6% 1.18% 29.1% 6.96% -0.5% -2.01% -1.9% -1.10% 0.18% 59/98 80/96 61/9 58/8 8/79 Cumulative Performance (GBX). : UK Equity Income We are not specifically replacing any of these three funds on the buy list. Please contact your usual adviser or enquiries@clarityglobal.com if you wish to discuss your options. Invesco Perpetual High Income mths yrs -0.56% 0.2% 8.1% 2.9% 69.89%.0% 6.05% 17.7% 2.99% 67.0% -.7% -5.9% -7.9% -6.7% 1.72% 275/ / /27 226/258 11/22 2 1

2 New UK equity funds The investment committee has decided to add the following funds to the buy list. BUY: Lindsell Train UK Equity This fund s objective is to deliver capital and income growth, and provide a total return in excess of that of the FTSE All-Share Index, by investing primarily in shares quoted on any of the markets of the London Stock Exchange, including the Alternative Investment Market (AIM). Whilst the primary focus will be the UK, the fund may also invest in other global markets. One of Lindsell Train s business principles is to manage investors money as they would their own. manager Nick Train began his investment management career at GT Management in 1981 after graduation from Oxford University. In 1999 he was appointed Head of Global Equities at M&G, leaving in 2000 to co-found Lindsell Train Limited. Lindsell Train UK Equity.99% 8.66% 19.2% 56.56% %.0% 6.05% 17.7% 2.99% 67.0% 0.66% 2.6% 1.58% 17.7% 0.8% 77/279 /277 79/27 1/258 12/ clarity verdict: Nick Train is a very experienced manager who buys stocks on a 10- to 20-year view. This is a highly concentrated fund with very low turnover, which invests in some of the great companies of the UK and the world. BUY: Marlborough Multi-Cap Income This fund seeks to generate an attractive and growing level of dividend income in addition to long-term capital growth by investing in a diversified portfolio of equities, predominantly listed in the UK. The fund invests primarily in the shares of small to medium sized companies where both capital and dividend growth are anticipated. This investment philosophy is premised on the fact that smaller companies have tended to outperform their larger counterparts over the longer term. The fund has been managed by Siddarth Chand Lall of Hargreave Hale since launch in Lall was a pan- European small- and mid-cap equity analyst with DSL before joining Hargreave Hale as a UK analyst in He holds an economics degree from Edinburgh University. Marlborough Multi-Cap Income.5% 5.56% 18.69%.0% 99.77% 2.27%.6% 1.18% 29.1% 6.96% 2.0% 1.05%.95%.58% 21.11% 11/98 0/96 1/9 26/8 / Cumulative Performance (GBX). : UK Equity Income clarity verdict: As a result of its focus on small and midcap companies this fund has relatively low correlation with most other income funds. To counterbalance the additional risk inherent in smaller companies the fund holds a large number of securities that are rigorously researched. There is usually a comparatively small overlap between this fund and Marlborough UK Micro- Cap Growth fund. 2

3 ASIA-PACIFIC REGION Investec Asia ex Japan Investec has taken the decision to radically change this fund s investment objective and appoint a new fund manager. We have therefore removed the fund from our buy list. Investec Asia ex Japan 8.6% 20.82% 2.25% 65.9% % 6.75% 1.0% 2.01% 52.78% 78.62% 1.77% 6.89% 7.52% 8.2% 1.0% 1/59 6/59 8/59 1/55 9/ Cumulative Performance (GBX). : Asia-Pacific ex Japan REPLACEMENT (BUY): Old Mutual Asia Pacific This fund aims to achieve long-term capital growth through the active management of a diversified portfolio of securities. There will be no geographic or economic restrictions but, principally, investment will be in securities traded on Asian and Australasian stock markets. The fund is managed on a quantitative strategies basis by Old Mutual s Global Equity Team, which runs over US $7bn under a number of different mandates. The team is headed by fund managers Dr Ian Heslop, Dr Amadeo Alentorn and Mike Servent. They also have access to a range of well-qualified academics in order to enhance their research capabilities. The fund s investment process aims to provide diversified sources of outperformance and is based on five criteria of stock selection: dynamic valuation, sustainable growth, analyst sentiment, company management and market dynamics. The team weights these criteria based on expected returns in the prevailing market environment. Portfolio construction then takes into account volatility, correlation and downside risk. Old Mutual Asia Pacific 10.% 21.21% 5.71% 80.51% 10.91% 6.75% 1.0% 2.01% 52.78% 78.62%.6% 7.2% 10.2% 18.16% 29.27% 6/59 5/59 /59 /55 1/ Cumulative Performance (GBX). : Asia-Pacific ex Japan clarity verdict: This quant-driven fund is managed by a highly experienced and stable team using a wide variety of variables leading to stock selection. As with most quantitative strategies, these techniques are likely to work best during markets with a clear trend and can be unsettled in periods of heightened volatility. First State Greater China Growth This fund was soft-closed a number of years ago and we have retained it as a Hold until now. Despite the reputation of the lead manager, Martin Lau, who has been in place since 200, the fund s cumulative performance has been relatively poor, as shown in the table below. First State Greater China Growth 11.58% 18.68% 27.50% 70.2% 108.0% 11.75% 2.19% 2.1% 70.69% 107.9% -0.16% -.66% -.71% -0.21% 0.27% 7/12 11/12 10/11 7/11 6/10 Cumulative Performance (GBX). : China/Greater China

4 BUY: Invesco Perpetual Hong Kong & China This fund aims to achieve capital growth through a portfolio of investments with an exposure to the economies of Hong Kong and China. Exposure to China will be largely obtained through indirect investment in securities traded on other markets. This fund has been run by lead manager Mike Shiao and deputy Lorraine Kuo since June Shiao was promoted to Invesco Chief Investment Officer, Greater China in 2015 and has managed the offshore Invesco Greater China Equity fund since He has spent his investment career involved in the greater China region, initially at Grand Regent Investment Ltd in 1992, before moving on to Overseas Credit & Securities Inc. He also worked at Taiwan International Investment Management Co as a fund manager. Shiao gained a degree from National Chung Hsing University, Taiwan and holds an MSc in Finance from Drexel University, Philadelphia. Kuo joined Invesco in 2011 as a fund manager on the offshore Invesco Greater China Equity fund and is responsible for stock research and analysis in the region. Her experience is entirely within the region, including two spells as an analyst at Deutsche Bank either side of a similar role at Manulife Asset Management (HK) Ltd. ALTERNATIVES HOLD: JP Morgan Natural Resources Our investment committee has decided to make this fund a HOLD. In the many years it has been on the buy list, the fund has attracted little interest, although it has some committed devotees. The construction boom in China has largely ended and, with it, the prospect of rapidly growing demand for hard commodities. We still regard the manager and team as highly experienced and well resourced and will regularly monitor the fund for the benefit of our clients who continue to hold this investment. JP Morgan Natural Resources 9.1% 1.8% 16.72% 22.96% % 2.90%.57% 9.22% 25.58%.82% 6.% 9.82% 6.87% -2.08% -8.82% 6/115 /11 21/110 69/105 80/ Cumulative Performance (GBX). : Specialist Invesco Perpetual Hong Kong & China 11.66% 2.9% 2.0% 71.12% 1.29% 11.75% 2.19% 2.1% 70.69% 107.9% -0.08% 0.97% -0.01% 0.25% 12.91% 6/12 5/12 8/11 6/11 / Cumulative Performance (GBX). : China/Greater China clarity verdict: We believe this fund is suitable for investors who require focused exposure to equities of the Greater China region and are prepared to take a very high level of risk. Because of the considerable volatility in the region the target investment period for this fund should be at least 10 years.

5 OTHER FUND CHANGES Kames Sterling Corporate Bond Co-manager David Roberts recently left Kames Capital and has been replaced by Rory Sandilands. Kames has told us that this will have no effect on the way in which the fund is managed. Iain Buckle was the lead manager and remains so under the new structure. Kames has 26 fixed interest investment professionals, and the team approach and investment philosophy will not change. Baillie Gifford Japanese Baillie Gifford has announced that long-term manager Sarah Whitley is to retire on 0 April Matthew Brett, who has been co-manager since 2008, will remain as manager. Baillie Gifford Corporate Bond Stephen Rodger, manager since 2000, is also to retire on 0 April Torcail Stewart has been co-manager since 2010 and will continue to manage the fund. For more information For those clients already using our clarityportfolio or clarityportfolio+ investment management services, you will benefit from an annual or quarterly (respectively) review of all investment funds and a rebalance of your asset allocation back to the agreed benchmark. This review will take into account any buy list changes and recommendations will be made accordingly. For those clients who do not use clarityportfolio or clarityportfolio+, you will fall under our clarityinvest service. This provides for self-selection of funds and you are therefore responsible for your own asset allocation and fund choices and will need to make any fund changes yourself. To discuss any of these changes, or review your current investment strategy, please contact your usual clarity adviser or get in touch using the following details: Tel: enquiries@clarityglobal.com Baillie Gifford adopts a team-based approach to idea generation, research and debate, so they do not anticipate any change to the philosophy or process used in the management of the Japanese or Corporate Bond. This being the case, we do not envisage making any change to the Buy status of each fund, but will keep the subject under review. Risk warning: The past is not necessarily a guide to future performance. The value of your investment and the income from it can fall as well as rise and is not guaranteed. You may not get back the full amount invested. Our views are based upon our understanding of current legislation in England and Wales. Levels and bases of, and reliefs from, taxation are subject to change and their value to you will depend upon your personal circumstances. You should not act on any of the information without seeking professional advice. clarity Ltd is authorised and regulated by the Financial Conduct Authority (FCA). The FCA does not regulate all types of pension, mortgage or taxation advice. clarityglobal.com clarity Ltd