Future World (the HSBC DC Default)

Legal & General Investment Management Press Briefing

Investing for the world you want to live in

7 November 2016 Legal and General Investment Management

10:00 – 10:05 Mark Zinkula: Introduction

10:05 – 10:15 Mark Thompson, HSBC Bank UK Pension Scheme: The pension scheme perspective

10:15 – 10:25 Emma Douglas, LGIM: Overview of Future World Fund and LGIM member research

10:25 – 10:45 Meryam Omi, LGIM, and David Harris, FTSE: ESG investing and how investors can positively influence change

10:45 – 11:15 Press Q&A

Agenda

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Introduction

Mark ThompsonChief Investment OfficerHSBC Bank UK Pension Scheme

HSBC Bank (UK) Pension Scheme – Defined Contribution BenefitsOverview

EstablishedEstablished

19961996DB Closed to DB Closed to future accrualfuture accrual

Mid 2015Mid 2015

Membership

Structure

Contribution Structure

10% For the first £20,000*, 9% thereafter up to earnings cap of £136k

7%Up to 7% of employee contribution is matched

7%

Circa 24%

AMC = 0% Members only pay additional expenses, capped at 0.20%

Funds Under Management £2.6bn

Active (including hybrids) 47,500

Deferred 33,000

Total 80,500

Administration Willis Towers Watson

Investment Only Platform Fidelity

* Increases to £20,100 from 1/7/164

The Default Strategy is Key – 90% of members in the defaultLifecycle - Income

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CapitalNo default

IncomePrimary DC Default

CashHybrid Default

The Cerberus Strategy

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HSBC DC Fund Range

Fund Underlying Manager Funder Under Management (£ 000’s)

Percent of assets (%)

Global Bonds - Active H20 4.7 0.2

Emerging Markets Equities – Active Trilogy, Schroders 37.4 1.4

Global Equities – Passive Legal & General 1,638.6 63.2

Global Equities – Active MFS, M&G, RWC, Artemis, Jupiter, Trilogy, Schroders 298.4 11.5

UK Equities – Passive Legal & General 14.3 0.6

UK Equities – Active RWC, Artemis, Jupiter 66.8 2.6

Shariah Law – Passive HSBC 9.7 0.4

Sustainable and Responsible Equities– Active Jupiter 14.4 0.6

Property – Active Threadneedle and Legal & General 71.9 2.8

Diversified Assets – Active BlackRock, Investec 209.9 8.1

Fixed Income Bonds – Passive Legal & General 132.9 5.1

Index-Linked Bonds – Passive Legal & General 17.7 0.7

Cash – Active Legal & General 75.9 2.9

2,592.6 100.0

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HSBC DC Global Equities – Passive FundA Better Mouse Trap!

A Better Risk-Adjusted Return

Incorporate protection for climate change risks

Improve ESG engagement policy within a passive mandate

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What was I looking for:

Introduction

Emma DouglasHead of DC

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I would prefer my pension to be invested in responsible companies that will improve life for future generations

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Delivering a better long-term risk-adjusted returnResponsible investments are desirable, but not at any cost...

What percentage of return per annum would you be willing to sacrifice by divesting your pension from companies harming the environment?

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Investors like the idea of having their pension invested in responsible companies…

…but not if it means sacrificing a significant portion of investment returns

Agree: 81%Mean: 3%

Note: we surveyed 1,681 respondents from 25/10/2016 – 26/10/2016 with a 50/50 male/female split and a representative sample of the UK population

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Academic research shows that tilting the traditional index using core factors can add value over the long term

Low VolatilityStocks with lower volatility that have outperformed the market on a risk-adjusted basis

QualityStocks with strong, sustainable returns

characterised by high profitability and

low leverage

ValueStocks that are “cheap”, i.e. that

trade at a discount to fair value using their fundamental metrics

Low SizeSmall capitalisation stocks (small caps)

that have outperformed large capitalisation stocks

Delivering a better long-term risk-adjusted returnThe fund combines factors to target better risk-adjusted returns…

These factors have all outperformed the FTSE All World Index since 2001. But they are cyclical and difficult to time…

…balancing factors can reduce volatility and smooth returns

7.05% 16.29%

9.59% 14.79%

Index Performance p.a Volatility

FTSE All World 7.05% 16.29%

Balanced Factor Index 9.59% 14.79%

Targets better risk-adjusted returns…

Past performance is no guarantee of future performance.

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Protecting against climate change Addressing investors’ desire for pension fund managers to do more

Investors agree that pension fund managers have a role to play in making companies more responsible…

…but there is some confusion about what impact investor engagement can have on issues like climate change

Which of the following would be an effective way for you to help reduce climate change?(Please select all that apply)

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*Note: In the UK, household waste accounts for 14% of total waste, while construction accounts for 50%

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Pension fund managers should be more active helping to guide companies to be more responsible

Agree: 92%

Capture the transition over time to a Low Carbon Economy

Protecting against climate change The Fund’s climate tilt rewards companies that are likely to benefit from the transition to a low-carbon economy

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Have a meaningful climate impact without changing the risk profile of the fundFund Objectives

Carbon Reserves

Carbon Emissions

Green Revenues

Reduce overall exposure to coal, oil and gas companies that may experience reduced demand for such commodities. Protect against “stranded assets”.

Increase exposure to companies with lower emissions and decrease those with high emissions within each sector

Increase exposure to companies with green revenues

Climate change

Meryam OmiHead of Sustainabilityand Responsible Investment Strategy

Climate changeRisks to the financial system

CO2 increasing + The Earth warming

Source: WHO, Atmospheric concentration of CO2

450 ppm

Transition risks

Liability risks

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Mark Carney, Governor of Bank of England

Climate change is •a systemic risk•an emerging mega risk •subject to the Tragedy of Horizons

Physical risks

ppm

2016

Why Climate Change? Why now?Strong forces coming together

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Cheaper alternatives Cheaper renewables and storage solutions threatening fossil fuels which are getting more expensive to extract and operate

Reality of climatic changes faced almost every year Question of financing a 3-4°C world

Societal pressure

Global commitmentsIn December 2015, the world (195 countries) adopted to a legally binding global climate deal to keeping the increase in global average temperature to well below 2°C

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SEPT 2016

CalPERSCalifornia passes bill to divest from coal

AP4Decarbonising its equity portfolios

Environment AgencyAligning allinvestments to 2ºC transition

NY State Pension$2bn low carbon index investment

OPTION 1 - Business as usual•Assume no major policy/technical changes

•Head towards 3-5ºC warming for the planet

•Catastrophic consequences with no climate model to predict

•Unknown economic and societal cost

OPTION 2 - Invest towards low carbon economy•Tilt exposure to prepare for transition

•Contribute towards controlling temperature increases

•Limit exposures to energy stocks

•Invest in low carbon / green transition

Climate – fiduciary responsibilityQuestion of finance but also financing the world we would want to retire

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Green RevenuesIncrease exposure to companies with green revenues

Carbon EmissionsIncrease exposure to companies with lower emissions and decrease those with high emissions within each sector

The ‘Climate Balanced Factor’ IndexUnderweight high carbon stocks, favour low carbon / green stocks

SEPT 2016

Source: Images, the noun project:

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Have a meaningful climate impact without changing the risk profile of the fund

Capture the transition over time to a Low Carbon Economy

Carbon ReservesReduce overall exposure to coal, oil and gas companies

that may experience reduced demand for such commodities. Protect against “stranded assets”.

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Objectives:

The ‘Climate Balanced Factor’ IndexApply a tilt to the Balanced Factor Index to reflect Climate Risks

SEPT 2016

LGIM has worked with FTSE-Russell to create a new index that provides a tilt to the Balanced Factor Index, by further weighting each stock with a carbon & green factor:

‘Balanced Factor’ weight

‘Climate Balanced Factor’ weight

Each stock Carbon ReservesCoal: Pure coal players excluded, others reduced in weight by 75%.

Oil & Gas: Reduce weight by 25% for Oil & Gas producers, Oil equipment, services & distribution. Further reduce exposure to oil and gas producers with higher carbon reserve intensity.

Carbon EmissionsTilt towards companies with lower emissions on a sector neutral basis

Green RevenuesTilt towards companies with greener revenues

Source: Images, the noun project:

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The ‘Climate Balanced Factor’ IndexMinimal impact on performance

Source: FTSE. Modelled performance from 31/03/12 to 31/03/16

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FTSE All World Index

Tracking Error between Balanced factor Index & Climate Balanced Factor Index: 60bps

Climate Measures versus Market Cap

Incorporate protection for a transition to a Low Carbon Economy

Carbon Reserves Carbon Emissions36% 44%

Carbon Reserves Carbon Emissions69% 28%

Balanced Factor Index

Climate Balanced Factor Index

Green Revenue 30%

Green Revenue 105%

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Past performance is no guarantee of future performance.

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SEPT 2016

Statement re climate and energy impact Fails to acknowledgeRecognises risk and opportunities

Transparency Fails to communicateDisclosure of risks and opportunities

Board / governance structure InadequateRobust and diverse board

Strategy of resilience and innovation Inadequate level of innovation

Embracing challenges and innovation

Reputation / Public policy Negative press / contradictory stance

Strong brand and consistent messaging

Worst performersBest performers SCORING METHODOLOGY

“To engage with the world’s largest companies that are required to adapt their business models and drive innovation in order to meet the global climate change goals. LGIM commits to encourage and accelerate the transition to a low carbon economy for the long term benefit of all companies and their investors.”

LGIM identifies c.90 of the largest companies that are pivotal to shift the market to a low carbon economy. They are ranked based on a stringent scoring methodology:

LGIM’s Climate Impact PledgeEngagement to address Climate Change on behalf of all LGIM clients

IndustriesEnergy, Transport,

Finance and Agricultural

SectorsOil&Gas, Mining, Electric

Utilities, Auto, Banks, Insurance, and Food retail

c.90companies

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Legal & General Future World Fund goes one step furtherDivestment within an acceptable level of Tracking Error

SEPT 2016

The Future World Fund includes a limited tracking error budget to implement a divestment strategy

LGIM analysis of c.90

companies

Engagement: 12 month

grace period• Stock is removed (or reinstated)

at the next semi-annual index review date (March and September)

• Stocks are removed in the order of their scoring (lowest score first), up to a maximum tracking error budget of 0.30% p.a.

• Remaining stocks rebalanced to be country and sector neutral

Add to Divestment list

Future World Fund to publish findings: LGIM will publish on a semi-annual basis the list of divested companies, in addition to the best performers / market leaders

Improve company engagement22

Low scores

High scores

Changes made, score increases

Failure to

change

The Future World Fund

Stock is removed (or reinstated) at the next semi-annual index review date (March and September)

Stocks are removed in the order of their scoring (lowest score first), up to a maximum tracking error budget of 0.30% p.a.

Remaining stocks rebalanced with an objective to remain sector and country neutral

Focus group feedbackInitial response: resonates well with Millennials

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SEPT 2016

First starters22-27

Millennials27-34 35-45 46-55 56-65

8 participants 8 participants 8 participants 5 participants 5 participants

Focus Groups

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“Any fund I would invest in needs to be making money first and foremost but if the companies invested in are ethical that is a bonus.”

Female, age 29, Magazine sub editor

“In a world of increasingly bad news stories I think there's undoubtedly a market for funds that make a positive contribution and drive for change. It would be great to see my investment make a difference as well as simply grow.”

Male, age 27, Software Designer

“Given choice over pension funds, I would always opt for the product where some form of wider social benefit was evident.”

Female, 27, Housing Association Manager

Q&A

Disclaimer and important legal notice

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Capital is at risk.

Our philosophy in developing the Fund’s strategy has been to gain factor exposure and to improve its climate profile, while maintaining appropriate levels of diversification. However, we would note the following possible risks that could lead to underperformance relative to a market capitalisation-based global equity index (e.g. FTSE All-World Index): •While deviations from the market-cap index in terms of industries and countries may cause underperformance on a relative basis, constraints are applied to the index to limit the impact•For the climate component, one of the key risks is a rise in the price of oil or coal, which would benefit stocks less represented in this index than in the market-cap index. The factor component counteracts the oil & gas sector underweight in the climate component at present, but this could change in the future•While historically the factors chosen (value, quality, low volatility and small size) have demonstrated relatively low correlations, these could move higher in future which would reduce diversification and potentially increase risk

The Fund is constructed on the assumption that the market will correct its valuation of some high-carbon stocks over time, as a result of changes in government policy and consumer demand. However, the valuations of such companies are not just affected by climate polices, but also broader government policies on energy security, domestic employment, health, subsidies and wider geopolitics. If big carbon polluters, such as China and India, fail to address carbon reduction targets and continue to support fossil fuels at the expense of renewables, the climate tilt could be a cause for underperformance. The amount of underperformance should be limited, however, because the Fund's exposure to different sectors and countries is capped to avoid such an eventuality.

Legal and General Assurance (Pensions Management) Limited (“PMC”) is a life insurance company and carries on the business using a linked policy (“the Policy”), it is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The policy is divided into a number of sections (“the Funds”). Legal & General Investment Management Limited (LGIM), which provides investment and marketing services to PMC, is authorised and regulated by the Financial Conduct Authority.

Specific advice should be taken when dealing with specific situations; investment decisions should be based on a person’s own goals, time horizon and tolerance for risk.

Legal & General Investment Management, One Coleman Street, London, EC2R 5AARegistered in England and Wales no. 2091894

FTSE Russell 26

ftserussell.com

Smart Beta Meets Smart Sustainability

7th November 2016

FTSE Russell 27

Multi-Factor Climate Risk-Aware Index Framework

FTSE All-World ex Controversial Weapons

(CW) Index

FTSE All-World ex CW Climate Balanced Factor Index

FTSE All-World ex CW Climate Index(Fossil Fuel Reserves, Operational Carbon

Emissions, Green Revenues)

FTSE All-World ex CW Balanced Factor Index

(Value, Quality, Low Volatility, Size)

(Mkt Cap weight index )

(Combination of Factor tilts and Climate tilts)

(Multi-factor Index) (Climate risk-aware index)

FTSE Russell 28FTSE Russell 28

How is a Factor Index Constructed?

FTSE Russell 29

• Acknowledge that factors have different cycles & underlying drivers

• Suggests diversification across multiple factors is desirable

• How to construct indexes with consistent and meaningful exposure to the target factors?

• Consider index capacity, liquidity, diversification, and turnover

Given the Existence of Factor Premia…

FTSE Russell 30

Constituent Weighting Example

Information provided in this slide is for illustrative purposes only.

CapWeight x Value

Score x QualScore = Unadj

Wgt.FinalWgt.

x 1.00 x 0.26 = 0.09%

x 0.50 x 0.68 = 0.10%

x 0.07 x 0.42 = 0.03%

0.33%

0.29%

0.83%

0.34%

0.39%

0.10%

S-Score S-Score

FTSE Russell 31

Constructing a Balanced Multi-Factor Index

• Apply standard FTSE Factor methodology framework

• Combination of Value, Quality, Low Volatility, Size factors

• All factors are given a full tilt with the exception of size

• This provides similar levels of active exposure

Factor Tilt

Value 1.0

Quality 1.0

Low Volatility 1.0

Size 0.25


How are Climate Change Considerations Incorporated?

FTSE Russell 33

Climate Risk: An Investment IssueCarbon EmissionsRisk related to the potentially increasing costs of CO2e emissions

Fossil Fuel ReservesOil, gas, and coal reserves represent stranded asset risk for long-term investors

Low Carbon Economy

Fossil FuelsCarbon

Low Carbon EconomyOpportunities, as well as risk, arising from the industrial transition to a low carbon economy

MeasureMeasure exposure and compare to a benchmark; target reductions

ExcludeFossil fuel divestment or exclusion based on operational emissions

TiltTilt exposure to companies with lower emissions and away from those with higher emissions

EngageDialogue with investment managers and companies

TransitionIncrease exposure to companies that through their goods, products and services are enabling the transition to a low carbon economy

FTSE Russell 34

Carbon EmissionsApproach Data Set: CO2 equivalent greenhouse gas emissions (Scope 1 & 2)

Preferred factor: Data normalised by revenues: tonnes of CO2e /million dollar revenues

Preferred application: Tilt towards those companies with lower emissions whilst keeping the changes sector neutral

Methodology ObjectivesCompanies with higher levels of emissions per unit revenue (ie are less carbon efficient) will face greater costs assuming costs associated with GHG emissions rise.

In this scenario those companies within a particular sector that are more carbon efficient will be in a stronger competitive position relative to their peers.

The objective is therefore to increase exposure to carbon efficient companies and reducing exposure to carbon intense companies whilst not impacting overall sector weights.

Low Carbon Economy

Fossil FuelsCarbon

FTSE Russell 35

Fossil Fuel ReservesApproach CoalData Set: Where coal mining is (a) a company’s principle activity, ie its ICB classification, or (b) where a company has proven/probable reserves.

Metric: Use the two thresholds identified above.

Application: For companies where (a) above applies remove stocks altogether, and (b) applies then reduce weight very aggressively – by 75%

Oil & GasData Set: The expected estimated CO2 equivalent future emissions from all proven and probable oil and gas reserves.

Metric: Two measures i. ICB category and ii. as a ratio relative to market cap (carbon reserve intensity).

Application: Firstly reduce the weight by 25% of the following two ICB Sectors: Oil and Gas Producers, Oil Equipment, Services & Distribution. Secondly tilt the weights of oil and gas companies that have reserves (ICB sector Oil & Gas Producers) by carbon reserve intensity.

Methodology ObjectivesMost carbon risk is associated with what is frequently termed “stranded assets”; these are fossil fuels reserves. To achieve the targets agreed by governments at the COP 21 Summit a significant proportion of these reserves may never be usable.

Furthermore a large proportion of carbon reserves are represented by a very small number of companies.

Coal is the most carbon intense fossil fuel (highest level of CO2e per unit energy) so the objective here is to minimise portfolio exposure to coal companies.

Oil and gas are less carbon intense and although may face lower demand they will, in all future energy predictions, need to play a significant role in the mid-term. The objective is therefore to only moderately underweight, and among oil and gas companies more weight should be given to those with lower reserve carbon intensity

Low Carbon Economy

Fossil FuelsCarbon

FTSE Russell 36

Low Carbon EconomyApproach Data Set: LCE Revenues

Metric: % total revenues

Application: Add as supplemental % weight to stocks with LCE revenues. No company has its weight (directly) decreased on this basis and those with LCE revenues have weight increased by up to 100% Example: Company had at least 22% green revenues. Its weight is increased by 22% over its initial weight. To make sure that the overall impact of LCE adjustments are balanced out this is then re-scaled across the universe.

Methodology ObjectivesTo make the industrial changes to deliver a low carbon economy there would need to be huge growth in companies delivering low carbon goods products and services that provide solutions to environmental challenges.

The objective is therefore to overweight companies “green revenues” from these low carbon sectors and sub-sectors.

Low Carbon Economy

Fossil FuelsCarbon


Performance & Summary

FTSE Russell 38

Relative Performance of Indices:September 2011– October 2016 (TRI, GBP)

Source: FTSE Russell as at March 2016. Past performance is no guarantee of future results. Please see disclaimer for important legal information.

FTSE All World Index FTSE All-World ex CW Balanced Factor Index


Geo. Return p.a. (%) 15.26 15.55 15.94

Volatility p.a. (%) 12.17 11.22 11.16

Sharp Ratio 1.25 1.39 1.43

Excess Return p.a. (%) 0.29 0.67

Average Turnover p.a. (%) 50.99 51.8

FTSE Russell 39

LCE

ESG Ratings

How a company operates

ESG

LOWCII™ (green revenue exposure

factor)

Reserves footprint

Single factor

indexes

Size Value

Momentum Volatility

Yield Quality

Factors

Risk Premia

Emissions footprint

Multi-factor

Solutions

Environmental metricsSocial metrics

Governance metrics

Green Revenues

FTSE4Good FTSEex Fossil Fuels

FTSE Green RevenuesFTSE Environmental

Markets

Data Models Emissions Reserves

CO2eFossil Fuels

What a company manufactures

Building a Multi-Factor Climate Risk-Aware Index

ICB sector peersICB sector peersICB sector peers

Tilt & Exclusion Options

LCE ICS sector peers

FTSE Global Factor

Smart Beta meets Smart Sustainability Indexes

FTSE Russell 40

Thank you.

FTSE Russell 41

Appendix 1Controversial Weapons that are prohibited

Background: A number of institutional investors exclude from their investments companies involved in the production of weapons prohibited under international treaties. Typically, this involves a small number of companies globally that are involved in weapons such as cluster munitions, anti-personnel landmines, and chemical and biological weapons.

Definitions: There are three controversial weapon types being considered for this index: (i) Anti Personnel Landmines; (ii) Cluster Munitions; (iii) Biological/Chemical weapons.

Impact: Currently there are 7 stocks excluded from the FTSE-All World Climate Balanced Factor Index due to this criteria.

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Appendix 2 Climate Enhancements of IndicesSeptember 2011– October 2016 (GBP)Combining climate with factor tilting greatly enhance the climate measurements of the index.




Fossil Fuel Reserve Exposure 22% increase 67% decrease

Operational Emission Exposure 11% increase 34% decrease

Green Revenue Exposure 28% increase 99% increase

FTSE Russell 43

Appendix 3 Factor Exposures of IndicesSeptember 2011– October 2016 (GBP)

Climate & factor tilting combined index maintains the factor exposures of the factor index.


FactorsFTSE All-World ex CW Balanced Factor

IndexFTSE All-World ex CW Climate Balanced Factor

Index

(Small) Size 0.25 0.27

Value 0.26 0.24

Quality 0.46 0.45

(Low) Vol 0.33 0.34

FTSE Russell 44

Appendix 4 Tracking ErrorSeptember 2011– October 2016 (TRI, GBP)

Adding a climate tilt adds only slightly increases tracking error relative to the factor index.




Tracking error to FTSE All-world Index, p.a. (%) 1.80 1.88

FTSE All-World ex CW Climate Balanced Factor

IndexTracking error to FTSE All-World

ex CW Balanced Factor Index, p.a. (%)

0.47

FTSE Russell 45

Important information© 2016 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this document should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.

Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index.

This publication may contain forward-looking statements. These are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statements speak only as of the date they are made and no member of the LSE Group nor their licensors assume any duty to and do not undertake to update forward-looking statements.

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