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Ignis Absolute Return Government Bond Fund Diversified returns from global government bonds and currencies

This presentation is intended for professional clients and investment professionals

only and should not be relied upon by retail investors.

Investment case

Ignis Fixed Income

Investment process

Performance

Appendix: example trade strategies

Agenda

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Ignis Absolute Return Government Bond Fund

Investment case

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Investment case

Fixed income: limited potential for long-only strategies

Source: DataStream at 29/02/2012.

Performance:

Gains have been strong and yields

are close to historic lows (with some

divergence)

Outlook:

Correction (when it comes) will lead

to capital losses

0

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G10 10 year sovereign yields

Netherlands Germany France

Italy Japan UK

US Belgium Canada

Switzerland Sweden

List header three List header four List header one List header two

Low interest rate environment

Unspectacular economic growth

No clear trends in asset markets

Highest quality and most liquid debt instruments (long and short exposure)

Foreign currency - max 25% of total risk budget (G10 only)

The Ignis Rates proposition An innovative fund:

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*The fund’s target volatility is a standard deviation level of 4-6%, it is managed to deliver stable returns regardless of market moves.

Designed to deliver: Investing in: Proven performance in:

Performance in all market conditions

Low volatility: 4-6% standard deviation*

Low correlation with other asset classes

Alpha not beta

Investment case

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Delivering performance in challenging markets

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Investment case

Ignis Absolute Return

Government Bond Fund:

Delivered steady returns

Low correlation with other asset

classes

Low volatility

Alpha rather than beta

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%

Performance*

Ignis Absolute Ret Gov Bond EUR I class (6.7%)

EONIA (0.8%)

Lipper Global Absolute Return EUR Low (0.1%)

*Source: Lipper, net of fees, since launch on 31/03/2011 to 29/02/2012. EONIA is the rate that large banks use to borrow from, and lend to, one another on the overnight market. Performance comparisons are inappropriate due to the diverse nature of the objectives of the funds populating this sector, including differing benchmarks, risk characteristics and timeframes for delivering performance. Past performance is not a guide to future performance.

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Investment case

Lowly correlated returns

Source: Lipper at 29/02/2012, correlation of daily returns in EUR based on EUR I share class since fund launch on 31/03/2011. Past performance is not a guide to future performance.

Since launch the fund has exhibited low correlation with other asset classes, and a negative correlation with equities:

Ignis Absolute Ret Govt Bond

MSCI World Barclays Capital

Global Aggregate Corporate

Citigroup WGBI ETFS Physical Gold

Ignis Absolute Ret Govt Bond 100% -37% 45% 39% 23%

MSCI World -37% 100% -26% -28% -18%

Barclays Capital Global Aggregate Corporate

45% -26% 100% 92% 34%

Citigroup WGBI 39% -28% 92% 100% 32%

ETFs Physical Gold 23% -18% 34% 32% 100%

Ignis Fixed Income

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Stable, experienced team

Flexible, innovative approach

Proprietary technology and investment tools

Led by Ignis CIO Chris Fellingham

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Ignis Fixed Income

Ignis Fixed Income: a broad range of capabilities

39%

28%

10%

23%

Direct funds under management - €60.0bn*

Sovereign and related supras, inflation linked

Liquidity

Stock lending

Credit

*Source: Internal at 30/09/2011.

Manages €23.0bn*

Specialises in government bonds

and currencies

Multi-specialist structure provides

combination of perspectives

Team includes chief economist

Stuart Thomson

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Ignis Fixed Income

Ignis rates team: complementary skill set

*Source: Internal at 30/09/2011. (Figures in brackets are number of years of investment experience).

Head of Rates

Quant Team Macro

Economics Portfolio

Management Liquidity, Repo and

Collateral Management

Russ Oxley (14)

Adam Purzitsky (7) Ross Crawford (11) Josh Heming (13)

Stuart Thomson (26)

Grant Peterkin (12) Paul Shanta (3)

Jin Wong (5) Aaron Rock (5)

Brian Jack (11) Rowan Gallagher (5) Colin Goymer (16)

CIO

Chris Fellingham (26)

Investment process

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Investment process

Investment process We believe alpha is created by well thought out macroeconomic views applied precisely in a risk controlled process

Value Clarity and

precision Control

Proprietary

model

Investment Themes Meeting

Academic research/

Think-tanks

Investment Banking Reports/ Market

Intelligence

Economic Data

Themes meeting is multi-disciplinary

Experienced team with a range of backgrounds

Asset size ensures good access to information

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Investment process

Value: generating the macro view

Key Investment Themes

Asset preferences

Academic research/

Think-tanks

Developed country carry strategies, directional bets on global policy rates

Directional bets on developed market forward rates driven by global competition for capital

Directional bets on risk free forward rates driven by structural supply and demand

Technical analysis; macroeconomic medium term view; Short term view driven by market information

Macro driven: isolate inflation risk

Opportunities between risk free and derivative curves

Volatility positions on developed market bonds or interest rate derivatives

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Investment process

Uncorrelated performance sources: the Arc of Alpha

< 2

2-15

>15

FX

Inflation

Asset

Swaps

Volatility

0.00

1.00

2.00

3.00

4.00

5.00

German Forward rate curve Forward - 02/11/2011

Forward - 04/01/2011

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1y0y 1y2y 1y4y 1y6y 1y8y 1y10y 1y12y 1y14y 1y16y 1y18y 1y20y 1y22y 1y24y 1y26y 1y28y

%

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Investment process

ClearCurve: a key proprietary tool Deconstructing the forward rate curve

Calculates forward curves for all instruments

Assists in benchmark construction and portfolio implementation

Dominated by changes in domestic structural supply and demand / regulation

Global competition for capital / global macro Expectation of base rates

Source: ClearCurve, November 2011.

Monitors portfolio risk

Scales active positions according to risk budget

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Investment process

Implementing views using ClearCurve German Forward Curve

Potential positions

Carry:

Long 1y4y fwd

- Long 5yr bund, short 4yr bund

Directional:

Long 1y9y fwd

- Long 10yr bund

Relative value:

Long 1y14y and 1y19y

short 1y16y and 1y17y

- Long 15yr, 16yr and 20yr bund, short

14yr, 18yr and 19yr bund

Source: ClearCurve, October 2011.

G10 sovereign bonds

Bond futures

Interest rate swaps

OTC options (on rates and currencies)

Swaptions

Currency forwards

Inflation swaps and options

Positions are collateralised daily

Highly liquid instruments used to implement alpha strategies:

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Investment process

Portfolio risk is controlled and managed through:

Front, UBS Delta, and ClearCurve

Fund manager parameters and oversight:

- Target volatility range: 4-6% standard deviation

- Average monthly VaR of 2.3%* since inception

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Investment process

Risk management at core of process

*VaR at 99% confidence level, source Ignis 29/02/2012. **Source: Ignis at 29/02/2012. Past performance is not a guide to future performance.

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1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

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10.0%

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Ex ante annualised volatility**

Ex Ante Volatility

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Investment process

Diversified strategies: effective in a volatile environment

Ex-a

nte

tra

ckin

g er

ror

%

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Source: UBS Delta, data since launch on 31/03/2011 to 29/02/2012. The fund takes risks by implementing different strategies. If each strategy was well correlated, the total risk of the fund would be a sum of the parts. In fact, the strategies are lowly correlated. This creates a diversification benefit, reducing the fund’s total volatility.

Performance

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Performance

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Performance

Outperformance since launch

*Source: BNY/Datastream, total return, net of fees, since launch on 31/03/2011 to 29/02/2012. EONIA is the rate that large banks use to borrow from, and lend to, one another on the overnight market. Past performance is not a guide to future performance.

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

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Performance*

Ignis ARGBF EUR Class I

EONIA^

Conclusion

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List header three List header four List header one List header two

ClearCurve – developed by Ignis in 2006

Unique in extracting forward rates from G10 government bonds

Provides a more accurate view of the path of G10 interest rates

High level of experience in both long and short investing

Chief economist part of team

Risk management embedded within process

Team have dedicated quant specialists

What sets us apart?

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Alpha not beta Diversified skill set Innovative approach

Performance in all market conditions

Non-directional (although core views taken)

Lowly correlated to credit, gilts, gold and equities

Manager not constrained by any particular biases


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^This is the rate that large banks use to borrow from, and lend to, one another on the overnight market. *Performance fee is net of fees, over compounded cash rates and subject to a high water mark.

Fund manager Russ Oxley (lead manager), Stuart Thomson (co manager)

Launch date 31 March 2011

Sector Lipper Absolute Return Euro Low

Structure UCITS III SICAV

Domiciled Luxembourg

Benchmark EONIA^

Liquidity Daily dealing

Minimum investment EUR A Class: €1,000 EUR I Class: €1,000,000

Annual management fee EUR A Class: 1% EUR I Class: 0.3%

Performance fee* Fund manager is entitled to 10% of performance generated

above EONIA^ with a high water mark

Registered for sale: Luxembourg, UK, Spain, Germany, Austria, France, Italy, Sweden,

Switzerland and Finland

Fund profile

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Appendix

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Example trade strategies

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Strategy: sell European volatility

Expectation that if interest rates remain unchanged for an extended period, in line with weak growth, then volatility should also be low

However, in October volatility at the front end of the European curve was high

Risk bucket: volatility

The fund sought to take advantage of this by using swaption strategies to sell volatility

Profit: 90bps

Theme: low growth for longer

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Entry Profit taken

No

rmal

ised

bp

s

Source: Front Arena internal system at 13/02/2012

Strategy: long 10y gilts versus 10y bunds

Expectation that growth will be lower for longer

Yet, risk that Germany will allow ECB to formally do QE

Adopted a net neutral directional view of market (in line with strategy of owning “real AAA”)

Risk bucket: 2 - 15 years

Entered at spread of 60bps at end September

Profit taken when spread went to zero

Profit: around 100bps

Theme: low growth for longer

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Entry

Profit taken

Source: Bloomberg at 17/01/12

% %

11.5

22.5

33.5

44.5

55.5

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Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

US 10y Yield German 10y Yield UK 10y Yield

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60

80

100

120

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

UK vs Germany 10y Spread

Strategy: Short bunds versus other markets

Front end of German market anchored by falling rate expectations

Expect concern over the credit quality of Germany - who will foot the bill for euro survival - to come through the 5y5y point in the curve


Fund holds long 5y5y positions in Australia and US versus short 5y5y bunds position

Profit: 40bps

Theme: eurozone concerns

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Following the failed auction in Germany the market turned on all Euro assets causing a 50bps relative sell off in bunds versus 10y UK bonds

Source: Bloomberg/ClearCurve at 17/01/2012.

%

%

Strategy: long UK

Perceived that the structural demand at the long end of the UK curve by pension funds and institutional buyers was not being priced in – mid 2011

Risk bucket: > 15 years

Entered into core strategic position of long UK forwards

Market corrected H2 2011

Profit: 70bps

Trade re-entered in February 2012 at 3.7%

Theme: structural demand for UK longs

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Re-entry

Profit taken

Entry

Source: ClearCurve at 13/02/2012.

%

Strategy: long US 10y5y

Sought to take advantage of Operation Twist

Anticipated Fed would:

- Sell short-dated bonds

- Purchase longer-dated US bonds


Fund rotated out of long 5y5y US position into long 10y5y

Profit: 45bps

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Theme: opportunistic trades (Operation Twist)

Source: Clearcurve at 13/02/2012.

%

Entry

Profit taken

Strategy: short UK 1y9y

Gilt futures at expensive levels versus bonds driven by demand from foreign investors

UK Treasury 8y21y – cheapest to deliver – reached attractive levels

Identified possible arbitrage opportunity using a negative forward yield versus the UK Treasury 3.75y21y if rate fell below 0%


Entered trade in late November at -0.25% and set 5% target

Exited in early December when target reached

Profit: 33bps

Theme: opportunistic trades (gilt futures)

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1y9y Forward

Target: 5%

Entry: 0%

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%

Entry

Profit taken

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Contact us

France and Switzerland (French)

Philip Goldsmith, Managing Director Europe

Mob: +41 (0)79 753 35 74 / +44 (0)7836 243 999

Email: [email protected] Iberia and Latin America

Mauro Loran Garcia, Regional Director

Mob: +34 (0)616 463 917

Email: [email protected]

Germany, Austria and Switzerland (German)

André Haubensack, Regional Director

Mob: +41 (0)79 373 79 13

Email: [email protected] Benelux

Ghislaine Fournigault, Regional Director

Tel: +44 (0)20 3003 3125


Italy and Ticino

Arcangelo Barletta, Regional Director

Mob: +39 (0)392 89 60 736


Nordics

Tel: +44 (0)20 3003 3153


Telephone calls may be monitored and/or recorded for the purpose of security, internal training, accurate account operation, internal customer monitoring and to improve the quality of service.

Your main contact Your regional support

European Sales Support Manager Dee Clarkin Tel: +44 (0)20 3003 3127 Email: [email protected]

Business Development Executive Riccardo Villa Mob: +39 (0)347 27 52 557 Email: [email protected]

Business Development Executive Julien Ricklin Tel: +44 (0)20 3003 3124 Email: [email protected]

Business Development Executive Johanna Pollet Tel: +44 (0)20 3003 3128 Email: [email protected]

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Disclosure This information is intended for professional clients and investment professionals only and should not be relied upon by retail investors.

The opinions expressed here represent the views of the fund manager at the time of preparation and should not be interpreted as investment advice. Distribution of this document and the offering of shares in certain jurisdictions may be restricted by law and accordingly persons into whose possession

this document comes are required to inform themselves about and to observe such restrictions. This document does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to

make such offer or solicitation.

Further detailed information regarding the Fund, its Prospectus, its latest annual reports and any subsequent half-yearly reports (including information on how to switch, buy and sell units of the Fund and other unit classes available), is available free of charge from Ignis Investment Services Ltd. You can also obtain these documents through

our website www.ignisasset.com/international

Past performance is not a guide to future performance.

The fund takes long and short positions based on the fund manager’s views of the market direction. This means the fund’s performance is unlikely to track the performance of broader bond and equity markets. While this creates the opportunity for the fund to deliver positive returns in falling markets, it also means that the fund could deliver negative returns in rising markets. The value of investments and any income from them can fall as well as rise

and is not guaranteed. Exchange rate movements may cause the value of investments to fluctuate.

The fund is a sub fund of Ignis Global Funds SICAV, an investment company organised under the laws of the Grand Duchy of Luxembourg as a Self Managed SICAV. The investment company has its registered office at Vertigo-Polaris, 2-4 Eugene Ruppert, L-2453 Luxembourg, and is authorised and

regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

The sub fund is a Recognised Scheme in the UK under Section 264 of the Financial Services & Markets Act 2000 and is promoted in the UK accordingly. The sub fund is currently registered for public distribution in the following countries: Luxembourg, UK, Spain, Germany, Austria, France, Sweden and Finland. It is

registered for institutional distribution only in Italy. Copies of all relevant scheme documentation can be obtained free of charge from the locally appointed paying agents. Austrian Paying Agent: Unicredit Bank Austria, 8398 Global Securities Sales & Services, P.O. Box 35, A-1011 Vienna; French Paying Agent: Société Générale SA, 29

Boulevard Haussmann, F-75009 Paris; German Information Agent: Société Générale SA, Neue MainzerStraße 46-50, D-60311 Frankfurt / Main; Italian Paying Agent: RBC Dexia, Via Vittor Pisani 26,20124 Milan; Luxembourg Paying Agent: Société Générale, 11 Avenue Emile Reuter, L-2420 Luxembourg; Spanish Paying Agent: RBC Dexia

Investor Services España SA, calle Fernando El Santo no20, Madrid 28010; Swedish Paying Agent: SEB Merchant Banking, Sergels Torg 2, SE-106 40 Stockholm.

This document has been issued by Ignis Investment Services on behalf of Ignis Global Funds SICAV. Ignis Investment Services is registered in Scotland Number SC101825. Registered Office: 50 Bothwell Street, Glasgow G2 6HR.

Authorised and regulated by the Financial Services Authority.

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