TB Wise Multi-Asset Income 2017 AGM 1 Investment Team Profiles - PowerPoint PPT Presentation

For Professional Investors Only TB Wise Multi-Asset Income 2017 AGM 1

Investment Team Profiles 22 years average fund management experience Philip Matthews • Joined Wise Funds in 2018 • Previously managing UK equities funds at Schroders and Jupiter Asset Management • 20 years of fund management experience Team Picture Tony Yarrow • Founded Wise Funds (formerly Wise Investment) in 1992 • Previously a financial adviser • 31 years of fund management experience Vincent Ropers • Joined Wise Funds in 2017 • Previously managing multi-asset strategies at Standard Life Investments and Fidelity Intl. • 15 years of fund management experience 2

Wise Funds Org Chart Portfolio Managers John Newton Business Development Manager Nicole Harrington Compliance Philip Matthews Vincent Ropers Tony Yarrow Manager Co-portfolio Manager CEO & Co-portfolio Manager Co-portfolio Manager Joanna Scavuzzo-Blake Office Manager Rick Ashworth Analyst 3

Wise Multi-Asset Income is a Unique Solution for Investors’ Income Needs • We aim to provide investors access to the best-in-class third party investment managers • We also invest directly in attractive individual UK stocks • We are fully flexible, allowing us to invest only into asset classes we consider most attractive We aim to provide a sustainable, growing level of income whilst delivering long term capital growth 4

Investment Philosophy • We invest primarily in people: we only entrust our investors’ money with managers who take their fiduciary duties with the greatest of care • We invest directly in UK equities and in funds for specialist sectors and overseas • We believe strongly that these differing areas of investment focus complement each other • We seek to diversify the portfolio across value themes globally • Valuations are critical : overpaying for assets, no matter how good they are, is a recipe for disaster • We have been committed ethical investors for many years, and do not invest in unacceptable sectors including gambling and tobacco 5

The Value Clock 12 WATCH SELL 3 9 HOLD BUY 6 Buying Low, Selling High – It’s much harder than you think! 6

How Do We Choose Which Asset Class To Invest In? UK & UK & Overseas Overseas Equities Gov Bonds Private EMD Equity UK & UK & 21 st Century Overseas Overseas Commercial Corporate Multi-Asset Property Bond Income Fund Infrastructure Alternatives Investment Cash Trusts Clean Energy The investable universe providing income for Multi-Asset funds has become increasingly diverse 7

We Consider Each Asset Class in Relation to the Value Cycle US The tools we use to assess the current Equities positions in the cycle: • In-house macro analysis Eurozone Equities 1 21 st Century 2 • Conversations with third-party fund WATCH Multi-Asset SELL 3 managers 9 Income Fund Emerging Markets HOLD BUY • Conversations with companies Equities 6 • Valuation screening Japan China Equities UK Equities Equities Source: Wise Funds Investment View – 31 st December 2019. 8

Where Do We See the Other Asset Classes in the Value Cycle? Infrastructure UK & Overseas Clean Bonds Energy Cash 1 2 WATCH Emerging SELL 3 Private 9 Market Equity Debt HOLD BUY UK & 6 Overseas Commercial Property Source: Wise Funds Investment View – 31 st December 2019. 9

We Currently Have a High Exposure to Equities 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.0% 1.5% 1.4% 1.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 World Dividend Yield World Gov Bond Yield Current Equity Yields Appear More Attractive Than Those Available From Bonds 10 Source: Factset - 31 st December 2019; world yields are a weighted blended average

Valuation Dispersion Within Equities is at Extreme Levels Global Value at 20 Year Lows vs Growth Increased Selectivity Necessary When Considering Equity Allocation 11 Source: Peel Hunt – 31 st December 2019.

Developed Market Bond Yields Either Negative or Below Inflation Turkey 10.30% Colombia 5.98% Nigeria India 10.81% 10 Year 10 ar 6.59% Gov overnment yield lds 60% of Global 10 Brazil Peru Year Government 6.96% 4.40% Real Yields are Negative 1 S.A. 8.98% Positive EM Real Yields But With Higher Historic Defaults Source: Factset 31 st January 2020, worldgovernmentbonds.com; (1) Factset 31 st 12 December 2019, by number of countries (sample size of 53 major countries)

Lower Yields & Higher Duration are Increasingly Putting Your Income at Risk Duration is now c. 4.6x the yield – i.e. 4.6 years of lost income for a 100bp shift in yields in the Multiverse Index 13 Source: Factset - 31 st January 2020

How Do We Choose Which Stocks To Invest In? The stocks selected are thoroughly researched and compared against our Systematic valuation screen of investment criteria the market, targeting undervalued companies Our key criteria are: ✓ Sustainable Business Reasons companies can be out of favour: ✓ Cyclicality Understood • Cyclical weakness ✓ Strong Management Team • Market weakness ✓ Robust Balance Sheet • Structural headwinds  Value Trap • Unappreciated quality Attractive stocks that fit our criteria are selected and considered for inclusion to the portfolio We try to identify Value whilst avoiding Value Traps 14

How We Invest in Value: Questions We Ask Has the company grown in the past? Do we believe it can sustainably grow? Do we understand the reasons for the share price weakness? Can we quantify the upside to Fair Value? Do we believe it’s a good quality business? Do we trust the management? Stock Price Our Price Rebound Return Fair Value 15

XP Power – High Quality Growth Cyclical REDUCED £40 XP Power engage in the manufacture and provision £35 of power supply solutions through Europe, North America and Asia £30 SOLD Has the company grown in the past? £25 Do we believe it can sustainably grow? £20 Do we understand the reasons for the share price weakness? £15 BOUGHT Can we quantify the upside to Fair Value? BOUGHT BOUGHT £10 Do we believe it’s a good quality business? £5 Do we trust the management? Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Bought on Cyclical Fears Around Semiconductors 16 Source: Factset - 31 st December 2019.

Chesnara – Long Term Dividend Compounder Chesnara Share Price vs Economic Value (ex. Dividend) Interim 2019 Chesnara Dividend History (pence per share) 20.67 20.07 19.49 18.94 18.4 17.88 17.35 16.85 16.4 15.95 15.55 15.1 13.1 12.45 11.85 7.43 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Interim 2019 Bought on Share Price Deviation from Economic Value Source: FactSet; Chesnara – 2019 Half Year Results presentation; Chesnara measures Value based on Embedded Value principles up until 2015, thereafter it is based on Economic Value; Economic Value is derived from Solvency II Own Funds and recognises the impact of 17 future profit expectations from existing business.

Recent Stock Additions 18

Performance 19

Initial invest ​ment of £100,000 has grown over 10 years to £154,164 Whilst delivering cumulative dividends of £69,515​ over that time £9,000 £170,000 £8,485 £160,000 £8,000 £8,207 £150,000 £7,000 £8,002 £6,829 Income Received £140,000 £6,636 Capital Growth £6,000 £7,011 £6,286 £6,177 £6,044 £5,838 £130,000 £5,000 £120,000 £4,000 £110,000 £3,000 £100,000 £2,000 £90,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Lump sum Performance Source: Wise Funds - 31 st December 2019. TB Wise Multi-Asset Income 10 year Income 20 earned & lump sum performance.

The Yield on the Fund Looks Attractive Compared to Other Global Asset Classes Asset Yield Comparison 6.0% Equity Fixed Income 5.0% Alternatives 4.0% 3.0% Average UK Inflation 1.9% 2.0% 1.0% 0.0% 21 Source: JP Morgan Asset Management – 31 st December 2019.

Performance Cumulative 5 2015 2016 2017 2018 2019 Year Return TB Wise Multi-Asset Income 2.5% 23.46% 15.77% -12.03% 21.44% 56.55% IA Flexible Sector 2.01% 12.84% 9.88% -6.14% 15.83% 36.52% CBOE UK All Companies 0.86% 16.49% 14.01% -9.83% 19.28% 44.07% Consumer Price Index 0.20% 1.60% 2.94% 2.10% 1.31% 8.39% Quartile Rank 1 1 1 4 1 1 Annual Yield 5.48% 6.00% 5.00% 5.90% 5.10% 5.40% Active Share OCF Yield 92% 0.88% 5.10% Source: FE 31st December 2019, total return. 5 year data from 1 Jan 2015 to 31 December 2019

Strong Risk-Adjusted Returns Delivered Over 5 Years Source: FE - 31 st January 2020. 23