1) HOW MUCH CARRY DO YOU GET 10% 15% 20% 25% 30% 35% -5% 0% - PDF document

1) HOW MUCH CARRY DO YOU GET 10% 15% 20% 25% 30% 35% -5% 0% 5% Argentinian Peso Turkish Lira Ukrainian Hryvna Tunisian Dinar Egyptian Pound BONDVIGILANTES Uruguay Peso Kazakhstan Tenge Mexican Peso Sri Lankan Rupee Georgia Lari Indonesian Rupiah South African Rand Indian Rupee Brazilian Real Russian Ruble Philippine Peso Tanzanian Shilling Colombian Peso Moroccan Dirham Chinese Renminbi Iceland Krona 12 months carry (%) Pakistani Rupee Malaysian Ringgit Peruvian Sol Rial Omani Jordanian Dinar Bahraini Dinar Romanian Leu Qatari Riyal Serbian Dinar Chilean Peso Source: M&G, Bloomberg, 08 June 2018 Saudi Riyal UAE Dirham New Zeland Dollar Australian Dollar Hong Kong Dollar Canadian Dollar Kuwaiti Dinar Singapore Dollar Polish Zloty Thailand Baht Korean Won Norwegian Krone Sterling Croatian Kuna Czech Koruna Hungarian Forint Israeli Shekel Taiwanese Dollar Japanese Yen Bulgarian Lev Swedish Krona Euro Latvian Lats Lithuanian Litas Danish Krone Swiss Franc

2) VALUATIONS 10% -4% -2% 0% 2% 4% 6% 8% Argentina Vietnam Russia Egypt Turkey BONDVIGILANTES Lebanon Ukraine Brazil Mexico Pakistan China India South Africa Oman Malaysia Peru Central Banks real yield (%) Croatia Indonesia Bahrain Qatar Colombia New Zealand Chile Hong Kong Thailand South Korea Source: M&G, Bloomberg, 08 June 2018 Singapore Poland Saudi Arabia Taiwan Israel Australia Morocco Japan Denmark U.S. Canada Czech Rep. Philippines Hungary U.A.E. Switzerland Euro zone Norway U.K. Bulgaria Sweden Romania

3) FUNDAMENTALS Fragile Five Economies: current account as a % of GDP BRAZIL SOUTH AFRICA INDIA 0% 0% 0% -1% -1% -1% -2% -2% -2% -3% -3% -4% -3% -4% -5% -4% -5% -6% -6% -5% -7% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 INDONESIA TURKEY 0% 0% -1% -2% -1% -3% -2% -4% -5% -3% -6% -7% -4% -8% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Source: M&G, Bloomberg, 31 December 2016 BONDVIGILANTES