Monthly Market Roundup May 2020 (covering April 2020) This marketing document is for consumer use in the UK and for Professional Clients, Financial Advisers and Qualified Investors as specified in the important information section.

Overview

– Global equity and credit markets stage a rebound

– Central bank stimulus lends support, while antiviral drug provides hope

– Global economic outlook remains uncertain

Despite the continuing global spread of Covid-19, April saw both equity and credit markets stage a rebound from the severe market shock witnessed in March, which has led to some of the biggest monthly gains certain sectors and regions have seen in years. Central bank stimulus designed to provide relief from the pandemic has provided some support, while an experimental antiviral drug that appears to be effective in reducing recovery times has provided much-needed hope: the drug could perhaps help countries emerge from the lockdown measures that are severely impacting economic activity worldwide. All of this has led to a wide disconnect between the unprecedented economic pain felt by many and the seemingly broad optimism of the financial markets. More and more workers are losing their jobs, while many small businesses are asking for loans to keep afloat, and yet, the financial markets are reporting gains. Central bank stimulus is of course shoring up asset markets, but are the financial markets also pricing in a smooth recovery that is far from guaranteed? Should this be the case, more volatility could well be lying ahead.

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US

– Biggest monthly gain for US equity markets since January 1987

– Advance achieved despite grim economic data as job losses mount

– US economy contracts by annualised rate of 4.8% in Q1 2020

Monthly Market Roundup May 2020 (covering April 2020)

The economic data may have been grim with millions more American filing for unemployment benefits but US equity markets recorded their best monthly gain since January 1987. The rally was supported once more by technology stocks, with Apple and Amazon reporting higher sales as consumers increasingly turned to home delivery and streaming entertainment as most of the country remained on lockdown. The effect of trillions of dollars being pumped into the economy and financial markets by the Federal government and central bank, along with signs that the lockdown measures may be having some success in reducing the rates of infection added to the optimism. A medical trial by Gilead Sciences that found its antiviral drug Remdesivir quickened patients’ recovery from coronavirus provided further impetus to the rally. While the rollout of an effective Covid-19 vaccine remains the holy grail, the US economy is facing a massive contraction, leading to significant corporate earnings downgrades for many companies. For the first three months of this year the US economy shrank by an annualised rate of 4.8%, its steepest decline since the last recession and ending a decade of near constant economic growth. Although the pace of layoffs appears to be slowing, over the past six weeks an unprecedented 30 million Americans have lost their jobs. The rate of losses means US unemployment is on track to reach levels not seen since the Great Depression of the 1930s. With so many workers losing their jobs, consumer spending, the main engine of the US economy, nosedived to record its steepest monthly decline since records began in 1959. By contrast, the US personal savings rate jumped to its highest level since 1981. Households cut back on purchases of big-ticket items, such as cars, as well as on services, for example, restaurant, hotels and sporting events. While it was an extremely volatile month for oil prices - West Texas Intermediate, the benchmark for US oil, turned negative for the first time in history as May futures contracts came up for expiry - it was a better month for investors in oil and gas companies, as energy was the best performing sector in the S&P 500 index in April. However, year-to-date, the energy sector remains rooted to the bottom still. In company news, Exxon Mobil posted its first quarterly loss in over 30 years. With demand for air travel severely hit by the coronavirus pandemic, American Airlines reported a loss of more than $2.2 billion for the first three months of 2020. As consumers found other ways to spend their money, Apple and Amazon reported higher sales.

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Europe

– Markets buoyed by central bank stimulus and potential easing of lockdown measures

– Euro area contracts by record 3.8% in Q1 2020

– Survey data pointing to an even sharper contraction for Q2 2020

European equity markets witnessed one of their strongest ever rallies over the month, despite record level contractions in several economic data points. The market appeared to be willing to look through the short-term data and was boosted by the prospect of a gradual easing in lockdown measures and a hoped for bounce back in economic activity, along with accommodative central bank policies. Against this backdrop, all sectors aside from energy returned positively. The strongest performing areas were information technology, materials, health care, and consumer discretionary – all comfortably beating the broad market average. Meanwhile, energy was the only sector to detract, as weaker oil prices – fuelled by fears of an oversupply in the market – saw oil producers come under pressure. The euro area contracted sharply in the first quarter of 2020, shrinking by 3.8%. To many people’s surprise, France’s economy (-5.8%) contracted more than either Spain (-5.2%) or Italy (-4.7%), despite the latter two having been the most severely impacted by Covid-19. Germany, the largest member of the bloc, are yet to publish their GDP figure, although it appears likely that they will have fared but much better than the afore mentioned countries. However, we note that all data at this point looks noisy with lockdown measures complicating data collection – it is likely that we will see some revisions in time. Meanwhile, data published by the European Commission showed that the Economic Sentiment Indicator (ESI) for the Euro Area plummeted to 67.0 (94.2 in March), its lowest level since records began in 1985. The fall resulted from a remarkably strong hit to confidence across all business sectors and amongst consumers. In addition, the Employment Expectations Indicator (EEI) also crashed to a record low – 63.7 in the euro area (93.8 in March). The European Central Bank announced more support for banks by a reduction in the TLTRO3 (Targeted longer-term refinancing operations) by 25 basis points. TLTRO is an operation that provides long-term financing to banks at attractive conditions with the aim of trying to stimulate bank lending to the real economy. Meanwhile, after nearly 20 hours of negotiations spread over three days, the eurozone finance ministers agreed to €500bn in additional financing to fight Covid-19. While the agreement is focused on immediate firefighting, the Eurogroup also included a recommendation to create a Recovery Fund to kickstart the economy once things start to normalise.

Monthly Market Roundup May 2020 (covering April 2020)

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UK

– Following a period of extreme weakness, the UK equity market started to recover in April

– UK equity market volatility remained high

– The payment of dividends continued to be a key area of focus

Following a period of extreme weakness, the UK equity market started to recover in recent weeks to end the month in positive territory. Supported by the policy measures implemented by the Government and the Bank of England, UK stocks briefly entered a bull market at the end of April, defined as a rise of more than 20% from recent lows. More broadly, sentiment was boosted by timely and large-scale inventions from central banks across the world, the apparent success of lockdown measures, and progress with experimental drugs to treat Covid-19. However, volatility within the UK equity market remains high. The restrictions put in place in recent weeks to limit the spread of Covid-19 are having a large impact on a wide range of economic indicators. With around half of UK private sector output currently subject to severe disruption, and the exit path out of lockdown yet to be determined, the range of possible outcomes for economic activity over the balance of 2020 is much wider than normal. Consensus estimates as of 1 May are for real GDP decline in 2020 of -5.2%, with growth in 2021 of 4.3%. Consensus expectations for Q2 2020 are for a GDP decline of -11.2% in 2020, Q3 -6.0%, before stabilizing towards the year end. Meanwhile, the payment of dividends continues to be a key area of focus for markets in general. From a corporate standpoint, some businesses faced with substantial disruption to operations will simply not have the resources to pay dividends as previously expected. Others have chosen to cancel, suspend or at least defer dividends as a matter of prudence, until there is greater clarity over the duration and extent of disruption from the pandemic, and therefore of the demands on liquidity. At the end of the month, Royal Dutch Shell announced that it would cut its dividend for the first time since the second world war. The energy company cut its interim dividend by two thirds after interim revenue in the company fell by more than 28% in the first quarter. Oil prices have collapsed and demand has flatlined during the pandemic. BP, the UK’s largest dividend payer, however, said that it would maintain its dividend, despite a two-thirds fall in profits. Even companies that posted profits over the quarter, such as retailer J Sainsbury, announced cuts to dividends in April, citing the uncertain economic outlook and the aim of shoring up their balance sheets. Marks and Spencer said that it too was unlikely to pay a dividend this year. Elsewhere, IAG announced a redundancy programme for up to 12,000 employees. Demand for flights has dropped substantially, and IAG thinks it will take "several years" for demand to recover to 2019 levels.

Monthly Market Roundup May 2020 (covering April 2020)

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Asia

– Asian equity markets were strong amid the flattening of Covid-19 curves

– A global policy response helped markets

– China’s equity market rose with a renewal of economic activity

Asian equity markets rose over the month as investor sentiment improved on the back of a stabilization in the Covid-19 global infection rate, a partial lifting of lockdowns in various countries and central banks’ expanded stimulus plans. Furthermore, market sentiment was buoyed by Gilead’s announcement of positive data from Phase-3 trials of the antiviral drug, Remdesivir. Against this backdrop, China and some other Asian countries appear to be gradually getting back to work and have put in place measures to mitigate the risk of a second wave. In particular, China has been ahead of the curve in terms of epidemic control. The supply side in China is mostly back to capacity, while consumer demand is lagging. As consumption remains a key concern, policy support continued in April, which included further interest rate cuts. In South Korea, the equity market saw a second consecutive strong month of market recovery after the Covid-19-related drop. Although the first quarter corporate earnings results were largely positive with most companies reporting figures ahead of expectations, share prices did not move in tandem with results as investors focused mainly on the ongoing disruption caused by the pandemic. Elsewhere, India’s equity market outperformed the region as the central bank announced a number of measures in mid-April to counter the ensuing economic downturn from the virus. Finally, during the month, the Brent crude oil price declined on increasing concerns about storage capacity constraints at oil terminals. Japan’s equity market ended the month higher as investor sentiment was supported by rising expectations for the resumption of economic activity overseas and for Covid-19 treatments, as well as the additional easing from the Bank of Japan on April 27. The spread of Covid-19 in Japan has been relatively slow and the number of deaths low for a population the size and density of Japan’s. Despite this, the Prime Minister Shinzo Abe indicated at the end of the month that he is likely to extend the state of emergency. During April, there was a stream of corporate earnings reports by March fiscal year-end companies among which there were more negative surprises than positive surprises and market expectations for corporate earnings going forward have moved down considerably.

Monthly Market Roundup May 2020 (covering April 2020)

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Emerging Markets

– Equity markets rebound, inspired by official stimulus measures

– A flattening of the Covid-19 new cases curve provides further support

– Oil prices briefly turn negative for the first time ever

Global emerging equity markets registered healthy gains as governments and central banks continued to provide fiscal and monetary support to economies weakened by lockdowns linked to the coronavirus pandemic. A flattening of the Covid-19 new cases curve in some regions and news that a medical trial by Gilead Sciences had found its antiviral drug Remdesivir quickened patients’ recovery from coronavirus provided further impetus to the rally. The best performing region was EMEA (Europe, Middle East and Africa), followed by Asia with Latin America being the laggard. All emerging market sectors participated in the rally with economically sensitive sectors such as materials and energy coming out top. The latter achieved gains despite oil prices - West Texas Intermediate, the benchmark for US oil – turning negative for the first time in history as May futures contracts came up for expiry. Economic news was generally downbeat with factory output slumping across several countries including Asia, although encouragingly, China has started reopening factories and is ramping up infrastructure spending to support the domestic economy. How the management of the Covid-19 crisis is perceived by investors arguably contributed towards the divergence of performance in Latin American equity markets. Chile led the advance in the region as the government unveiled two new programmes – credit for firms and a fund aimed at protecting the income of the most vulnerable households. By contrast, equity strength in Brazil was diluted by the resignation of two government ministers after disagreements with President Bolsonaro regarding Covid-19 measures. At odds with his advisers and scientists, the leader continues to downplay the pandemic. The Brazilian real lost more than 5% of its value against the US dollar. Mexico’s equity market advanced higher despite disappointing news on the economy – Q1 2020 GDP showed output down 6.1% (quarter-on-quarter). On the political front, a poll tracking the popularity of President Andres Manuel Lopez Obrador fell to its lowest on record as his government introduced austerity measures, including a hiring freeze, a 25% cut in government salaries and the elimination of Christmas bonuses. While the South African economy is forecast to shrink by 6.1% this year due to the coronavirus (according to the country’s central bank), investors welcomed the government’s 500 billion rand rescue package, equivalent to 10% of GDP, and the phased partial reopening of the economy starting 1 May. In an unscheduled meeting, the South African Reserve Bank cut interest rates to 4.25% from 5.25%. Equity markets in Russia also generated healthy gains despite the prospect of the economy falling into recession, as lockdown measures dampened activity in restaurants, non-foods stores and fitness centres. A gauge of Russian manufacturing fell to the lowest level since records began in 1997.

Monthly Market Roundup May 2020 (covering April 2020)

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Investment risks The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Fixed Interest

– Economic data was some of the worst on record

– Central Banks ramped up their asset purchase programmes

– Some corporate bond markets delivered their best monthly return in decades

The economic impact of closing the world economy became increasingly apparent in April. Some of the data released covering the previous month was the worst ever recorded. In the UK, the services Purchasing Managers Index (PMI), (a respected indicator of the economic health of a country) declined to 12.3. This is its lowest ever level and, with a figure below 50 indicating contraction, the current reading suggests a severe shrinking of the UK economy for the second quarter. And yet, against this backdrop, financial markets bounced back from their March lows with many parts of the market delivering their best return in decades. Sterling investment grade corporate bonds had their highest return since the launch of the ICE BofAML Sterling Corporate index in January 1997. European high yield bonds had their best month since January 2012. Helping to drive these returns were signs of the virus easing and central bank policy. Having written the playbook after the global financial crisis in 2008, central banks have been able to implement what were once thought extraordinary policies much more rapidly than a decade ago. The US Federal Reserve’s (Fed’s) announcement of unlimited and open ended Quantitative Easing (QE) in late March had helped to turn market sentiment. It then looked to push the bar further with an announcement in April that asset purchases would include high yield bonds helping to give further strength to the rally. In Europe, the European Central Bank continued its own QE programme, but stopped short of following the Fed to include high yield bonds in its asset purchases. High yield bonds will be accepted as collateral for loans it provides to banks – a move that it hopes will help the Eurozone more vulnerable economies in the event of a downgrade. The failure to agree a fiscal rescue package, however, weighed on peripheral government bonds with Italian sovereign bonds coming under particular pressure. There was some respite after rating agency S&P did not, as had been expected, downgrade Italy to high yield. Any rally was however short lived after rival rating agency Fitch’s decision to downgrade the sovereign – albeit to BBB (which is still investment grade).

Monthly Market Roundup May 2020 (covering April 2020)

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Global currency movements – figures to 30 April 2020 Current 1 month 3 months 6 months YTD 2019 2018 2017 2016 2015 2014 2013 2012 value (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)

Euro/US Dollar 1.10 -0.7 -1.2 -1.7 -2.3 -2.3 -4.4 14.1 -3.2 -10.2 -12.0 4.2 1.9

Euro/GB Sterling 0.87 -2.0 3.5 1.0 3.0 3.0 1.3 4.2 15.7 -5.1 -6.4 2.1 -2.4

Euro/Swiss Franc 1.06 -0.2 -1.0 -3.8 -2.5 -2.5 -3.7 9.2 -1.6 -9.5 -2.0 1.6 -0.5

Euro/Swedish Krona 10.69 -2.2 0.1 -0.7 1.8 1.8 3.2 2.7 4.4 -2.7 6.6 3.2 -3.9

Euro/Norwegian Krone 11.22 -2.2 10.0 9.5 14.0 14.0 0.6 8.4 -5.4 6.2 8.4 13.7 -5.4

Euro/Danish Krone 7.46 0.0 -0.1 -0.1 -0.1 -0.1 0.3 0.2 -0.5 0.2 -0.2 0.0 0.4

Euro/Polish Zloty 4.55 -0.2 5.9 6.7 7.0 7.0 2.7 -5.1 3.3 -0.6 3.2 1.8 -8.6

Euro/Hungarian Forint 352.96 -2.2 4.6 7.4 6.6 6.6 3.3 0.5 -2.0 -0.3 6.5 2.1 -7.6

US Dollar/Yen 107.19 -0.3 -1.1 -0.8 -1.3 -1.3 -2.8 -3.6 -2.8 0.5 13.7 21.4 12.7

US Dollar/Canadian Dollar 1.39 -0.8 5.4 6.0 7.4 7.4 8.4 -6.4 -2.9 19.1 9.4 7.1 -2.7

US Dollar/South African Rand 18.53 3.8 23.4 22.7 32.4 32.4 16.1 -9.9 -11.2 33.8 10.2 24.1 4.5

US Dollar/Brazilian Real 5.49 5.4 28.1 36.6 36.5 36.5 17.2 1.8 -17.8 49.0 12.5 15.3 9.9

US Dollar/South Korean Won 1213.94 -0.4 1.5 3.7 5.1 5.1 4.4 -11.6 2.7 7.5 4.1 -0.7 -8.2

US Dollar/Taiwan Dollar 29.79 -1.6 -1.9 -2.3 -0.4 -0.4 3.1 -8.6 -1.2 3.8 6.1 2.7 -4.1

US Dollar/Thai Baht 32.46 -0.9 4.0 7.5 9.0 9.0 -0.7 -9.2 -0.5 9.5 0.6 6.9 -3.1

US Dollar/Singapore Dollar 1.41 -0.8 3.4 3.7 4.9 4.9 1.9 -7.7 2.2 6.9 4.9 3.4 -5.8

US Dollar/GB Sterling 0.79 -1.7 4.5 2.6 5.0 5.0 6.2 -8.7 19.3 5.8 -5.9 1.9 4.6

GB Sterling/South African Rand 23.34 5.2 17.8 19.4 25.6 25.6 9.6 -1.4 -25.7 26.6 3.7 26.6 9.2

Australian Dollar/US Dollar 0.65 6.1 -2.7 -5.6 -7.3 -7.3 -9.6 8.1 -0.9 -10.9 -8.4 -14.2 1.6

New Zealand Dollar/US Dollar 0.61 2.8 -5.2 -4.5 -9.1 -9.1 -5.2 2.0 1.7 -12.4 -5.0 -0.9 6.4 Source: Thomson Reuters Datastream, all figures subject to rounding.

Corporate Bonds Yield to maturity1 (%)/Spread2 (bps)

30.04.20 31.03.20 31.01.20 31.10.19 30.04.19

£ AAA 1.30 93 1.97 143 1.32 55 1.49 67 2.03 65

£ AA 1.54 129 2.23 184 1.26 63 1.40 73 1.87 72

£ A 2.09 177 2.80 235 1.76 108 1.97 123 2.52 127

£ BBB 2.82 250 3.51 311 2.25 154 2.54 178 3.04 180

€ AAA 0.28 82 0.81 128 0.09 53 0.14 56 0.46 56

€ AA 0.42 111 0.98 159 -0.03 57 0.03 62 0.24 61

€ A 0.91 155 1.51 209 0.28 80 0.35 85 0.58 87

€ BBB 1.61 222 2.24 281 0.72 115 0.84 126 1.16 139

European High Yield (inc € + £) 6.10 660 7.35 779 3.53 348 3.96 386 4.08 381 Source: Bloomberg LP, Merrill Lynch data. Data as at 30 April 2020. The yield is not guaranteed and may go down as well as up.1 Yield to maturity – is the total return anticipated on a bond if the bond is held until it matures.2 Credit spread – difference in yields offered by corporate bonds over government bonds, that have similar maturity but different credit quality.

Government Bonds Yield to maturity1 (%)

30.04.20 31.03.20 31.01.20 31.10.19 30.04.19

US Treasuries 2 year 0.20 0.25 1.31 1.52 2.27

US Treasuries 10 year 0.64 0.67 1.51 1.69 2.50

US Treasuries 30 year 1.28 1.32 2.00 2.18 2.93

UK Gilts 2 year 0.02 0.14 0.50 0.50 0.76

UK Gilts 10 year 0.23 0.36 0.52 0.63 1.19

UK Gilts 30 year 0.57 0.83 1.04 1.14 1.69

German Bund 2 year -0.76 -0.69 -0.67 -0.66 -0.58

German Bund 10 year -0.59 -0.47 -0.43 -0.41 0.01

German Bund 30 year -0.18 0.03 0.07 0.11 0.66 Source: Bloomberg LP, Merrill Lynch data. Data as at 30 April 2020. The yield is not guaranteed and may go down as well as up.

An investment cannot be made into an index directly. The performance data shown relates to a past period. Past performance is not a guide to future returns.

Change over:

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Global equity and commodity index performance – figures to 30 May 2020 (%)

1 month 3 months 6 months YTD 2019 2018 2017 2016 2015 2014 2013 2012

Global US & Canada

MSCI World (US$) 11.0 -11.7 -7.0 -12.3 28.4 -8.2 23.1 8.2 -0.3 5.5 24.7 16.5

MSCI World Value (US$) 8.8 -18.0 -16.1 -20.3 22.7 -10.1 18.0 13.2 -4.1 4.4 27.5 16.4

MSCI World Growth (US$) 12.8 -5.9 2.1 -4.3 34.1 -6.4 28.5 3.2 3.5 6.6 27.2 16.6

MSCI World Small Cap (US$) 13.5 -18.3 -15.1 -20.5 26.8 -13.5 23.2 13.3 0.1 2.3 32.9 18.1

MSCI Emerging Markets (US$) 9.2 -12.5 -10.4 -16.6 18.9 -14.2 37.8 11.6 -14.6 -1.8 -2.3 18.6

FTSE World (US$) 10.9 -12.2 -7.7 -13.0 27.7 -8.8 24.1 8.7 -1.4 4.8 24.7 17.0

Dow Jones Industrials 11.2 -13.3 -8.9 -14.1 25.3 -3.5 28.1 16.5 0.2 10.0 29.7 10.2

S&P 500 12.8 -9.3 -3.2 -9.3 31.5 -4.4 21.8 12.0 1.4 13.7 32.4 16.0

NASDAQ 15.5 -2.6 7.8 -0.6 36.7 -2.8 29.6 8.9 7.0 14.8 40.1 17.5

Russell 2000 13.7 -18.5 -15.5 -21.1 25.5 -11.0 14.6 21.3 -4.4 4.9 38.8 16.4

S&P/ TSX Composite 10.8 -13.9 -8.8 -12.4 22.9 -8.9 9.1 21.1 -8.3 10.6 13.0 7.2

Europe & Africa

FTSE World Europe ex-UK € 6.6 -15.1 -12.1 -15.8 27.6 -10.5 13.0 3.4 10.9 0.2 25.2 17.8

MSCI Europe 6.3 -16.6 -13.6 -17.6 26.9 -10.0 10.9 3.2 8.8 7.4 20.5 18.1

CAC 40 4.1 -21.0 -19.7 -23.1 30.5 -8.0 12.7 8.9 11.9 2.7 22.2 20.4

DAX 9.3 -16.3 -15.6 -18.0 25.5 -18.3 12.5 6.9 9.6 2.7 25.5 29.1

Ibex 35 2.5 -25.2 -23.5 -26.3 16.8 -11.4 11.4 -4.8 -3.8 8.0 30.0 1.8

FTSEMIB 3.8 -23.8 -21.5 -24.4 33.8 -13.2 17.3 -6.5 15.8 3.0 20.5 12.2

Swiss Market Index (capital returns) 3.4 -9.4 -5.8 -9.3 26.0 -10.2 14.1 -6.8 -1.8 9.5 20.2 14.9

Amsterdam Exchanges 6.7 -12.2 -10.0 -14.4 28.5 -7.4 16.5 13.6 7.4 8.7 20.7 14.1

HSBC European Smaller Cos ex-UK 10.4 -16.1 -11.1 -17.3 27.8 -13.6 18.6 6.4 23.5 5.2 34.0 20.4

MSCI Russia (US$) 11.5 -26.8 -23.6 -29.0 52.7 0.2 6.1 55.9 5.0 -45.9 1.4 14.4

MSCI EM Europe, Middle East 10.0 -21.7 -19.6 -24.1 20.0 -7.5 16.5 22.8 -14.7 -28.4 -3.9 25.1 and Africa (US$)

FTSE/JSE Africa All-Share (SA) 14.0 -8.9 -9.1 -10.4 12.1 -8.5 21.0 2.6 5.1 10.9 21.4 26.7

UK

FTSE All-Share 4.9 -18.8 -17.0 -21.5 19.2 -9.5 13.1 16.8 1.0 1.2 20.8 12.3

FTSE 100 3.9 -18.1 -17.2 -20.9 17.3 -8.7 12.0 19.1 -1.3 0.7 18.7 10.0

FTSE 250 9.2 -21.8 -17.0 -24.3 28.9 -13.3 17.8 6.7 11.2 3.7 32.3 26.1

FTSE Small Cap ex Investment Trusts 9.5 -26.1 -17.4 -26.0 17.7 -13.8 15.6 12.5 13.0 -2.7 43.9 36.3

FTSE TechMARK 100 8.0 -15.3 -6.1 -15.1 39.3 -4.9 9.8 10.0 16.6 12.3 31.7 23.0

Asia Pacific & Japan

Hong Kong Hang Seng 4.1 -6.2 -8.2 -12.5 13.0 -10.5 41.3 4.3 -3.9 5.5 6.6 27.5

China SE Shanghai Composite 4.0 -3.9 -2.4 -6.2 22.3 -24.6 6.6 -12.3 9.4 52.9 -6.7 3.2 (capital returns)

Singapore Times 5.8 -16.4 -17.9 -18.1 9.4 -6.5 22.1 3.8 -11.2 9.6 3.0 23.4

Taiwan Weighted (capital returns) 13.2 -4.4 -3.2 -8.4 23.3 -8.6 15.0 11.0 -10.4 8.1 11.9 8.9

Korean Composite (capital returns) 11.0 -8.1 -6.5 -11.4 7.7 -17.3 21.8 3.3 2.4 -4.8 0.7 9.4

Jakarta Composite (capital returns) 3.9 -20.6 -24.3 -25.1 1.7 -2.5 20.0 15.3 -12.1 22.3 -1.0 12.9

Philippines Composite (capital returns) 7.1 -20.8 -28.5 -27.1 4.7 -12.8 25.1 -1.6 -3.9 22.8 1.3 33.0

Thai Stock Exchange 16.9 -12.2 -16.7 -15.8 4.3 -8.1 17.3 23.9 -11.2 19.1 -3.6 41.3

Mumbai Sensex 30 14.6 -16.9 -15.4 -17.9 15.9 7.5 29.8 3.7 -3.5 32.4 10.9 27.8

Hang Seng China Enterprises index 4.7 -2.0 -4.7 -10.1 14.5 -9.9 29.6 1.5 -16.9 15.6 -1.5 19.8

ASX 200 8.8 -20.3 -15.5 -16.4 23.4 -2.8 11.8 11.8 2.6 5.6 20.2 20.3

Topix 4.4 -12.0 -10.9 -13.9 18.1 -16.0 22.2 0.3 12.1 10.3 54.4 20.9

Nikkei 225 (capital returns) 6.8 -13.0 -11.9 -14.6 18.2 -12.1 19.1 0.4 9.1 7.1 56.7 22.9

MSCI Asia Pac ex Japan (US$) 9.8 -9.6 -7.4 -12.9 19.5 -13.7 37.3 7.1 -9.1 3.1 3.7 22.6

Latin America

MSCI EM Latin America (US$) 6.3 -38.7 -38.7 -42.1 17.9 -6.2 24.2 31.5 -30.8 -12.0 -13.2 8.9

MSCI Mexico (US$) 4.3 -33.6 -30.8 -32.6 11.8 -15.3 16.3 -9.0 -14.2 -9.2 0.2 29.1

MSCI Brazil (US$) 5.4 -43.3 -43.6 -47.5 26.7 -0.2 24.5 66.7 -41.2 -13.7 -15.8 0.3

MSCI Argentina (US$) 11.1 -30.7 -18.2 -32.6 -20.7 -50.7 73.6 5.1 -0.4 19.2 66.2 -37.1

MSCI Chile (US$) 16.2 -16.2 -24.1 -22.6 -16.0 -18.9 43.6 16.8 -16.8 -12.2 -21.4 8.3

Commodities

Oil - Brent Crude Spot (US$/BBL) 22.0 -68.7 -69.5 -73.3 34.0 -24.2 20.9 51.6 -33.5 -49.4 0.2 3.2

Oil - West Texas Intermediate (US$/BBL) -8.0 -63.5 -65.1 -69.2 35.1 -25.3 12.5 44.8 -30.5 -45.8 6.9 -7.1

Reuters CRB index -3.8 -31.1 -33.4 -36.7 11.8 -10.7 1.7 9.7 -23.4 -17.9 -5.0 -3.3

Gold Bullion LBM (US$/Troy Ounce) 5.8 7.4 12.9 12.1 18.7 -1.7 12.6 9.0 -10.5 -1.8 -27.3 5.6

Baltic Dry index 1.4 30.4 -63.3 -41.7 -14.2 -7.0 42.1 101.0 -38.9 -65.7 225.8 -59.8

Source: Thomson Reuters Datastream, total returns in local currency unless otherwise stated.

An investment cannot be made into an index directly. The performance data shown relates to a past period. Past performance is not a guide to future returns.

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

This marketing document is for consumer use in the UK, Professional Clients and Financial Advisers in Continental Europe as defined below, Qualified Investors in Switzerland and Professional Clients in Cyprus, Dubai, Ireland, Isle of Man, Jersey, Guernsey and Malta. It is not intended for and should not be distributed to, or relied upon, by the public anywhere other than the UK. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities. For the distribution of this document, Continental Europe is defined as Belgium, Finland, France, Italy, Luxembourg, The Netherlands, Norway, Spain, Sweden, Liechtenstein, Germany and Austria.

Issued in Austria by Invesco Asset Management Österreich – Zweigniederlassung der Invesco Asset Management Deutschland GmbH, Rotenturmstrasse 16-18, 1010 Wien, Austria

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Issued in the Isle of Man by Invesco Management S.A. 37A Avenue JF Kennedy, L-1855 Luxembourg

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Issued in the UK by Invesco Asset Management Limited Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK Authorised and regulated by the Financial Conduct Authority

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